Did Heat After Snyder Win Burn Gaffney?

20110912-NEWS--0001-NAT-CCI-CD_-- 9/9/20115:58PMPage1 ©Entire contentscopyright2011byCrainCommunicationsInc.Allrightsreserved Southeast Michigan’stop- academic andclinicalaffairs will becomevicepresidentof takes shotsatBeaumont Cardiologist movestoDMC, Grines businesses, Page23 Largest woman-owned companies, Page19 Largest statewidepublic Page 25 2011 HealthCareHeroes, time, thankVCfirm,Page11 If thisgetsyoutothebuson at aratethatsurprises Birmingham buildingfillsup tackle videogameincentives Courts,Senate Next level: NEWSPAPER www.crainsdetroit.com Vol.27,No.38 This JustIn Crain’s Crain’s Health CareExtra Page 3 MICHIGAN BUSINESS Cindy Grines See ThisJustIn,Page2 Lists CRAIN’S H , M.D.,oneof where she Center Medical Detroit a jobatthe al Oakfor tal mont Hospi- left gists, has cardiolo- producing in Roy- Beau- , state director.ShealsoisaformerconsultanttoWayne Bing twiceaboutpossiblelocations,whichinclude chairman, saidhehasmetwithDetroitMayorDave cluding atleastathirdnewbranchinthecity. add 30branchesintheareaovernextfiveyears,in- two inDetroit,andfivemore2013.Inall,itwantsto pansion inSoutheastMichigan. Bank Flagstar in GeorgiaandIndiana,thelong-troubledTroy-based thing: There’sawargoingon. Detroit mayDetroit get 2in’12 branches in5years Flagstar plans30 Gaffney person tolead AFL-CIO UAW picksitsown burn Gaffney? Snyder win Did heatafter Page 11 middle ground, represents Column: M Joseph Campanelli,Flagstar’spresident,CEOand It planstoopenfivebranchesnextyear,including Having recentlyannouncedthesaleofitsbranches Michigan’s politicalrightandleftagreeonone ARY K Gaffney RAMER is abouttoembarkonanaggressiveex- CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B B Y serves as its Oct.3-4convention.Swiftnow in 2008,asGaffney’sreplacementat an organizingdirectorfortheUAW to backKarlaSwift,whoretiredas the year’s gubernatorialelection. candidate VirgBerneroinlast landslide victoryoverDemocratic as ascapegoatafterRickSnyder’s ry isthatthe Gaffney’s exit—theprevailingtheo- zation’s conventioninOctober. the Michigan not seekre-electionaspresidentof ty. Heannouncedlastweekhewill Y T D The union,the800-poundgorillaof Controversy swirlsaround Mark Gaffneyisthelatestcasual- OM USTIN Michigan DemocraticParty H ENDERSON eAeTePol Michigan We AreThePeople W ALSH UAW AFL-CIO SEPTEMBER 12–18,2011 See Flagstar,Page43 See Gaffney,Page45 is usingGaffney at theorgani- , plans more than1,500victims. that helpedofficialsidentify sulting servicesinNewYork velopment, supervisionandcon- company providedsoftwarede- to supplythoseIDservices.The Identification Systemsoftware and launcheditsMassFatality sidiary million, GeneCodesformedsub- which grewtomorethan$13 missing people. tacks witharosterofabout2,700 of theWorldTradeCenterat- human remainsfromtherubble 22,000 samplesofunidentified examiner tomatchmorethan York officeofthechiefmedical ceived acontractfromtheNew dent-CEO HowardCash,re- assignment inhistory. largest DNAforensicanalysis had 16employeestotacklethe Arbor-based the companygrewindecadesinceSept.11,2001. shifted fromtraditionaldefensetohomelandsecurityas surveillance systems.CEOEricSieczkasaysthefocus Pixel VelocityInc.ofAnnArbordevelopssmart Gene Codesisoneofseveral To completethecontract, The company,ledbyPresi- In lateSeptember2001,Ann CRAIN’S DETROITBUSINESS B Y Gene CodesForensicsInc. C HAD Gene CodesCorp. H ALCOM predominantly touristsvisiting al countriesinDecember2004— more than200,000livesinsever- Ocean tsunamithatclaimed remains ofvictimstheIndian ny hadbegunhelpingidentify in early2005;bythenthecompa- Trade Centereffortwrappedup Arbor. CEO of Eric Sieczka,co-founderand need todoprotectthem,”said in thecountryandwhatpeople critical assetswithtargetvalue create alotmoreawarenessof tractors growimportantniches. or helpedexistingdefensecon- years spawnednewcompanies 11 attacksandoverseveral was createdinresponsetothe9- partment ofHomelandSecurity lives adecadeago.The from thedisasterthattook2,996 ment contractingmarketborn grew tofillanall-newgovern- that builtanationalprofileor Southeast Michiganbusinesses For GeneCodes,theWorld “What (9-11has)reallydoneis Pixel VelocityInc See Adapt,Page44 . inAnn U.S. De- $2 acopy;$59year ON .com crainsdetroit Snyder, capitalist Rick venture for then- costly debacle averted a from 9-11 blog: Henderson’s Page 44 coordination, is education, Detroit: ties, metro Detroit victims with Six 9-11 memoriam: O M THE N ORE Tom Defending In 9-11 Page 44 Fallout Focus W EB ®

BOB CHASE 20110912-NEWS--0001-NAT-CCI-CD_-- 9/9/2011 6:13 PM Page 1

CRAIN’S MICHIGAN BUSINESS A special edition of

Inside Michigan Pixel Velocity Inc. of Ann Arbor develops smart Did heat after surveillance systems. CEO Eric Sieczka says the focus BOB CHASE shifted from traditional defense to homeland security as Snyder win the company grew in the decade since Sept. 11, 2001.

If this gets you to the bus on time, thank VC firm, Page 11 burn Gaffney? ULI Michigan: Urban Land UAW picks its own Institute goes statewide, Page 15 person to lead AFL-CIO BY DUSTIN WALSH Success is in the cards CRAIN’S DETROIT BUSINESS Michigan’s political right and left agree on one for nonprofit that employs thing: There’s a war going on. the disabled, Page 18 Mark Gaffney is the latest casual- ty. He announced last week he will not seek re-election as president of World Watch: the Michigan AFL-CIO at the organization’s convention in October. Spotlight on Controversy swirls around Michigan Gaffney’s exit — the prevailing theory is that the UAW is using Gaffney business in India, Page 21 as a scapegoat after Rick Snyder’s landslide victory over Democratic candidate Virg Bernero in last Gaffney Health Care Extra year’s gubernatorial election. 2011 Health Care Heroes, The union, the 800-pound gorilla of MARY KRAMER the Michigan Democratic Party, plans Page 25 to back Karla Swift, who retired as Column: Gaffney an organizing director for the UAW represents middle ground, in 2008, as Gaffney’s replacement at Crain’s Lists Page 11 its Oct. 3-4 convention. Swift now Largest statewide public serves as We Are The People Michigan state director. She also is a former consultant to Wayne BY CHAD HALCOM Southeast Michigan businesses companies, Page 19 See Gaffney, Page 45 CRAIN’S DETROIT BUSINESS that built a national profile or MORE grew to fill an all-new govern- In late September 2001, Ann ment contracting market born ON 9-11 Largest woman-owned Arbor-based Gene Codes Corp. from the disaster that took 2,996 In businesses, Page 23 had 16 employees to tackle the lives a decade ago. The U.S. De- memoriam: largest DNA forensic analysis partment of Homeland Security Six 9-11 Flagstar plans 30 assignment in history. was created in response to the 9- victims with The company, led by Presi- 11 attacks and over several metro Detroit This Just In dent-CEO Howard Cash, re- years spawned new companies ties, Page 44 ceived a contract from the New or helped existing defense con- Defending Cardiologist moves to DMC, branches in 5 years York office of the chief medical tractors grow important niches. Detroit: Focus examiner to match more than “What (9-11 has) really done is is education, takes shots at Beaumont 22,000 samples of unidentified create a lot more awareness of coordination, Page 44 Cindy Grines, M.D., one of Detroit may get 2 in ’12 human remains from the rubble critical assets with target value Southeast Michigan’s top- of the World Trade Center at- in the country and what people producing BY TOM HENDERSON tacks with a roster of about 2,700 need to do to protect them,” said ON THE WEB missing people. Eric Sieczka, co-founder and cardiolo- CRAIN’S DETROIT BUSINESS Tom To complete the contract, CEO of Pixel Velocity Inc. in Ann gists, has Henderson’s left Beau- Having recently announced the sale of its branches which grew to more than $13 Arbor. blog: Fallout mont Hospi- in Georgia and Indiana, the long-troubled Troy-based million, Gene Codes formed sub- For Gene Codes, the World from 9-11 tal in Roy- Flagstar Bank is about to embark on an aggressive ex- sidiary Gene Codes Forensics Inc. Trade Center effort wrapped up averted a al Oak for pansion in Southeast Michigan. and launched its Mass Fatality in early 2005; by then the compa- costly debacle a job at the It plans to open five branches next year, including Identification System software ny had begun helping identify for then- Detroit two in Detroit, and five more in 2013. In all, it wants to to supply those ID services. The remains of victims of the Indian venture Medical add 30 branches in the area over the next five years, in- company provided software de- Ocean tsunami that claimed capitalist Rick cluding at least a third new branch in the city. velopment, supervision and con- more than 200,000 lives in sever- Snyder, Center, crainsdetroit Grines Joseph Campanelli, Flagstar’s president, CEO and sulting services in New York al countries in December 2004 — where she .com will become vice president of chairman, said he has met with Detroit Mayor Dave that helped officials identify predominantly tourists visiting academic and clinical affairs Bing twice about possible locations, which include more than 1,500 victims. Gene Codes is one of several See Adapt, Page 44 See This Just In, Page 2 See Flagstar, Page 43 1 NEWSPAPER 71486 02858 0 20110912-NEWS--0002-NAT-CCI-CD_-- 9/9/2011 5:49 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 12, 2011

mont. She was instrumental in panies in the fourth year of a sim- thony said. Under IRS require- rant’s aim is to train workers for THIS JUST IN bringing Beaumont to the fore- ilar five-year, $100 million con- ments, each hospital must con- living-wage jobs, promote access front for heart attack treatment,” tract awarded by a contract at duct an assessment as part of to fresh and healthy foods, and in- ■ From Page 1 Dixon said. Fort Jackson, South Carolina, for Form 990 annual financial filings. cubate worker-owned food busi- Grines, who was Beaumont’s bases across the Southeast. GDAHC includes hospitals, nesses. at the DMC Cardiovascular academic affairs vice chief of car- President and CEO Perry Mehta physicians and large businesses. — Nancy Kaffer Institute. diovascular medicine, said in the said he expects some work to get The council discusses and issues Upon leaving Beaumont, article another reason she moved under way by early October in reports on health care quality, ac- Garden Fresh buys building Grines leveled some illuminating to DMC is because Vanguard the Fort Bragg contract, and Fu- cess and costs in Southeast parting shots at her old employer, Health Systems, DMC’s for-profit tureNet could capture more than Michigan. Ferndale-based Garden Fresh where she practiced for 21 years. parent, is building a new cardio- $20 million worth of the projects. — Jay Greene Gourmet LLC has purchased a “When I first went (to Beau- vascular heart hospital. She also — Chad Halcom 20,000-square-foot industrial mont), it was cutting-edge, and will conduct more research Restaurant opens building in Ferndale for $440,000, innovative, and wild, and fun, but through Wayne State University Health care council drafts new according to the Washington, it’s a bit slower-paced, extremely Medical School. Former World Trade Center D.C.-based CoStar Group. conservative, and very bureau- She will be working with sever- plan to go with new CEO restaurant workers are joining The building, at 1220 E. Nine with Detroit restaurant workers Mile Road, is less than a half-mile cratic,” Grines said in a state- al former Beaumont cardiologists, The Greater Detroit Area Health ment to TheHeart.Org, an online including Joel Kahn, M.D., and Ted to promote job opportunities at a from the company’s current Council is developing a strategic training center in the city. headquarters at 1505 Bonner. publication by WebMD. Schreiber, M.D., president of the plan that it hopes will be in place “It’s all about corporate com- DMC Cardiovascular Institute. Both sets of workers were dis- Two messages left by Crain’s by next January, giving its new placed by crisis, the former by for CEO Jack Aronson were not re- pliance now. Meanwhile, DMC, — Jay Greene CEO time to implement a work which was having a bunch of fi- the terrorist attacks of 9-11, the turned. plan by the end of the year. latter by the economic crisis. Birmingham-based Core Part- nancial difficulties, has made FutureNet wins Army work Last month, Vernice Davis Antho- some major headway in the last The Restaurant Opportunities ners LLC was broker in the deal. ny, GDAHC’s CEO the past 10 Center of Michigan is opening COL- The building was last owned by years,” Grines said. Detroit-based FutureNet Group years, announced she will retire At Beaumont, Grines earned Inc. will share up to $100 million ORS-Detroit today, a locally Ferndale-based EPG Properties by the end of the year. GDAHC LLC, $743,151 in total compensation in of work with six other companies sourced restaurant on Grand Riv- though the sale was coordi- has been interviewing candidates er in downtown Detroit. The nated by Bloomfield Hills-based 2009 as director of cardiac cather- for construction and mainte- and is expected to hire someone restaurant is an affiliate of O’Keefe and Associates LLC as ization services, according to nance at military bases across by the end of September, she said. Restaurant Opportunities Centers court-appointed receiver for the Beaumont’s IRS 990 report. It is North Carolina, under a contract The GDAHC board is sched- United. lender, Comerica Bank. unknown what salary DMC of- awarded last week by the U.S. uled to vote on the new plan in its The worker-owned restau- — Daniel Duggan fered her. Army Mission Contracting Office at January meeting. In a statement from Simon Fort Bragg. In planning meetings, GDAHC Dixon, M.D., Beaumont’s chair of The seven companies were se- executive committee members CORRECTIONS cardiovascular medicine, Beau- lected among 55 competitive bids have discussed adding programs Ⅲ In a Sept. 5 story on Page 6, Altair ProductDesign Inc.’s hydraulic hy- mont has hired six of the seven submitted for work at up to half a to help providers and businesses brid bus was incorrectly described as a hybrid electric bus. cardiologists in the Royal Oak- prepare for changes coming under dozen bases, including Fort Ⅲ A story on Page 25 of the Sept. 5 issue, “Speculators may use auc- based Academic Heart & Vascular health care reform, Anthony said. Bragg, through August 2016. tions to tie up land essential to Bing plan,” said University of Michigan Another new program will help Group, except for Grines. FutureNet, a construction com- professor Margaret Dewar was an author of a report on tax-reverted hospitals develop a regional com- “We thank Dr. Grines for her pany that caters to government properties in Detroit. Dewar was not an author; she was one of the fac- munity health assessment, An- many years of service to Beau- clients, is also one of three com- ulty members who oversaw the report’s creation. 20110912-NEWS--0003-NAT-CCI-CD_-- 9/9/2011 5:27 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 3

Inside Video game developers Heat assistance freeze sends chill through agencies, Page 6 on brink of film credit win House OKs new rules on teen workers’ hours. Capitol Legislation, court ruling may score incentives Briefings, Page 41

BY NATHAN SKID video game developers were shut out unless CRAIN’S DETROIT BUSINESS they owned the intellectual property and distribution rights. Company index A win in court and friendly legislation soon Senate Majority Leader Randy Richardville, These organizations appear in this week’s Crain’s may make it easier for video game developers R-Monroe, has introduced Senate Bill 569, Detroit Business: to become eligible for film incentives. which would drop the requirement. And a Ajax Paving Industries ...... 10 Most of the at- game developer, Scientifically Proven Entertain- Association of Businesses Advocating Tariff Equity . . . 6 tention surround- ET GAMES BEGIN ment LLC, has won a court order against the re- Bailey Schmidt ...... 3 ing film incentives L quirement, although the decision is being ap- Barbara Ann Karmanos Cancer Institute ...... 27 has focused on Video: Behind the pealed by the state. Beaumont Hospitals ...... 29 movies, but video scenes at game maker, crainsdetroit.com/video “Michigan needs to be competitive with oth- Center for Michigan ...... 45 game production er states in retaining and attracting new indus- Coalition to Keep Michigan Warm ...... 6 was among the in- try,” Richardville wrote in an email to Crain’s. Consumers Energy ...... 6 NATHAN SKID/CRAIN’S DETROIT BUSINESS dustries Michigan wanted to draw when the in- “It is important that we work to attract and re- Crittenton Hospital Medical Center ...... 37 Nathaniel McClure moved Scientifically Proven centives were created in 2008. tain new and technologically focused industry DeNovo Sciences ...... 7 Entertainment LLC from California to Farmington But when the Michigan Department of Treasury Detroit Department of Homeland Security ...... 44 Hills, hoping to make use of Michigan tax credits. drew up rules to implement the incentives, See Games, Page 42 Detroit Department of Transportation ...... 4 Detroit Edison ...... 6 Federal-Mogul ...... 21 Flagstar Bank ...... 1 Ford Motor ...... 21 Fuller Central Park Properties ...... 42 Gene Codes ...... 1 General Motors ...... 21 Greenleaf Trust ...... 3 Henry Ford Center for Integrative Wellness ...... 34 Huron River Ventures ...... 11 International Automotive Components Group . . . . . 21 Kellogg ...... 21 Mercy Place Clinic ...... 28 Michigan Accelerator Fund I ...... 11 Michigan AFL-CIO ...... 1 Michigan Department of Transportation ...... 10 Michigan Film Office ...... 42 Michigan Hematology Oncology ...... 29 Team Detroit CEO Satish Korde expects to apply to Ford lessons he Michigan Infrastructure & Transportation Assoc. . . 10 learned in the real and virtual worlds. Michigan Public Service Commission ...... 6 Michigan Restaurant Association ...... 41 Napoleon B. Jordan Center for Health Care ...... 34 National Network of Depression Centers ...... 26 Adman has Patriot Services ...... 45 Perrigo ...... 21 Pixel Velocity ...... 44 Pixofactor Entertainment ...... 42 RPM Ventures ...... 13 Ford’s world Scientifically Proven Entertainment ...... 3 Shepherd Intelligent Systems ...... 11 St. Joseph Mercy Health System ...... 32 St. Joseph Mercy Oakland ...... 28 in his hands Strive Recreational Therapy Services ...... 31 Stryker ...... 21 JOHN SOBCZAK Drew Schmidt (left) and Peter Noonan of Bailey Schmidt Inc. handled leasing at the Greenleaf Trust Building in BY JAMIE LAREAU Surnow ...... 42 Birmingham, now fully leased at rental rates near $36 a square foot — double the average for metro Detroit. CRAIN NEWS SERVICE Synova ...... 21 Team Detroit ...... 3 Satish Korde is a Renaissance The Heath and Warmth Fund ...... 6 man charged with helping Ford Mo- TI Automotive ...... 21 tor Co. complete a renaissance of UAW Retiree Medical Benefit Trust ...... 30 Greenleaf fills quickly at top rates its own. UM Comprehensive Depression Center ...... 26, 31 Korde, 61, the new CEO of Team United Auto Workers ...... 1 Detroit, Ford’s advertising agency, University of Michigan-Dearborn ...... 45 Birmingham success gives hope for similar projects is a chemical engineer by training. Urban Land Institute ...... 15 Yet he has spent 30 years in the ad- Visteon ...... 21 BY DANIEL DUGGAN “It sends a message that there’s demand for high- vertising world, mainly in re- Warm Training Center ...... 6 CRAIN’S DETROIT BUSINESS quality office space, and tenants will pay a premium search and marketing. He has Whirlpool ...... 21 for it.” traveled the world and is at home Just over one year after the Greenleaf Trust Greenville, S.C.-based Ogletree, Deakins, Nash, in the virtual world of social me- Building in Birmingham was completed, the office Smoak & Stewart PC and Finnea Group LLC have dia. and retail space is completely leased. signed leases for office space in the building, joining Ford needs all areas of Korde’s Department index And not only does the building hold the honor as the building’s anchor tenant, Greenleaf Trust, to fully expertise. The automaker has re- the only speculative office building developed dur- occupy the 27,000 square feet. bounded in the United States from BUSINESS DIARY ...... 40 ing the recession, it also has set the bar for rental With an asking rental rate of $36 per square foot, financial trials of the past decade, CALENDAR ...... 38 rates — commanding double the average rate for the according to Washington, D.C.-based CoStar Group, but it trails rivals in China and CAPITOL BRIEFINGS...... 41 region. the building is among the most expensive office several other markets. Ford will CAREERWORKS ...... 39 “This is something that will give some hope for spaces in metro Detroit. seek to draw on Korde’s knowl- CLASSIFIED ADS ...... 41 the idea of new construction in the region,” said Pe- CoStar lists the average rental rate for Class A of- edge of mature markets and key ter Noonan, vice president of brokerage services for fice space in metro Detroit at $21 a square foot, and growth markets in the Asia-Pacific KEITH CRAIN...... 8 Birmingham-based Bailey Schmidt Inc., the real estate LETTERS...... 8 firm representing the landlord in the leasing work. See Greenleaf, Page 42 See Korde, Page 43 MARY KRAMER ...... 11 OPINION ...... 8 Cool Places online Small-business webinars OTHER VOICES ...... 8 See profiles of 10 winners of Crain’s Cool Places Part one of a Comcast-sponsored series is THIS WEEK @ PEOPLE ...... 39 to Work 2011 and info about the November Sept. 27, focusing on disaster preparedness, WWW.CRAINSDETROIT.COM awards ceremony, crainsdetroit.com/cool crainsdetroit.com/smallbizwebinars RUMBLINGS ...... 46 WEEK ON THE WEB ...... 46 20110912-NEWS--0004-NAT-CCI-CD_-- 9/9/2011 3:28 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 12, 2011 Feds push for regional transit authority to run light rail FTA: Funding could start before an agency does DDOT federal funding BY BILL SHEA Wayne, Oakland and Macomb volved early in the process,” Ro- CRAIN’S DETROIT BUSINESS counties. goff said. “That said, we all recog- Federal officials have had RTA nize we can’t just click our fingers The head of the Federal Transit discussions with city and subur- and have a new governance struc- source could get axed Administration wants Detroit’s ban leaders, including with the ture in place.” Woodward Avenue light rail pro- suburban bus system and with State Rep. Bert Johnson, D-De- Detroit isn’t expected to submit pected to extend beyond that. ject to be operated by a regional Gov. Rick Snyder’s office. troit, introduced RTA legislation a request for federal money to About $1.6 billion was ap- transit authority — a governance Snyder earlier this year appoint- in 2010, but the bills got no trac- build a $528 million light-rail line proved in New Starts spending system that’s proved elusive here ed Dennis Schornack, a former se- tion in Lansing because of what on Woodward Avenue until next last year. — but he won’t say the lack of an nior policy adviser to Gov. John insiders say was over-emphasis year — if Washington doesn’t Under the New Starts program, RTA will jeopardize the proposed Engler, to be his special adviser on on labor protection and prohibi- eliminate the funding program federal funding wouldn’t be pro- line. regional transit. tions on private-sector involve- before then. vided until the project is ready “Many people have viewed an Hanging over the effort to create ment. The Detroit Department of Trans- for construction, when the FTA RTA as the ideal operator for the a regional authority is a history of No new or replacement bills portation needs an estimated $318 and the project organizer would system,” FTA Administrator Peter high-profile past failures and city- have been introduced. million in capital funding from sign what’s called a Full Funding Rogoff said, adding that it isn’t in suburb squabbling over funding The man who spearheaded cre- the Federal Transit Administration’s Grant Agreement. Detroit Department of Transporta- formulas and labor issues. ation of the Woodward project New Starts program that’s aimed DDOT’s project is just entering tion’s best interest to have the The most recent effort was the and a proposed regional transit at new surface transportation the preliminary engineering “added burden” of operating a rail Detroit Area Regional Transportation system, John Hertel, now runs the projects, such as commuter and phase of the project. This fall, it’s line. Authority, which died at the 11th Suburban Mobility Authority for Re- light rail. expected to move into the next The $528 million, nine-mile hour after legal challenges by lo- gional Transportation bus system. However, New Starts has been phase, called final design. route from downtown to the city cal transit unions. The Michigan “There can be no major targeted by some for the budget If the first two phases meet limit at Eight Mile Supreme Court progress on anything without a chopping block, including Rep. FTA approval — they’re expected Road is currently a in May 2006 regional transit authority,” he John Mica, R-Fla., chairman of to because the FTA has staff on- DDOT project, and it The strongest declined to said, adding that Wayne County the House Transportation Com- site in Detroit working with needs $318 million of “ hear an ap- Executive Robert Ficano, Oak- mittee. DDOT to expedite the process — that cost to peal of a 2005 land County Executive L. Brooks Mica has said he wants to cut then the project moves to the full operating surface transportation project come from Michigan Patterson and Macomb County funding agreement. spending by 35 percent as part of the FTA. plans are Court of Ap- Executive Mark Hackel, Snyder If Washington and Detroit the next transportation bill. “(An RTA) peals ruling and lawmakers are prepared to reach an agreement, it then House GOP members in Janu- has to happen those that that found support an RTA. would be included in the FTA ary proposed eliminating New for the pro- DARTA was Hertel blames the city on the budget that the president submits Starts as part of a larger $2.5 tril- ject to have a not legally es- lack of action. to Congress. achieve its lion set of cuts across the entire tablished. “There’s been one thing miss- New Starts is a 60-40 match pro- federal budget. broader utili- designated, The re- ing: Activity on the part of the Also, a 12-member bipartisan gram. ty,” Rogoff gion’s history Bing administration to get this congressional deficit reduction The federally required $210 mil- said. Wash- consistent of transit fail- done.” committee by November will pro- lion local funding match is com- ington typically ure isn’t lost Messages were left seeking and reliable pose at least $1.2 trillion in deficit ing from several sources, includ- funds large or region- on Rogoff, comment from Mayor Dave Bing cuts over the next decade, and it’s ing $74 million from the sale of al transit projects which is why and Norm White, who is oversee- funding source. unknown if the panel will target $125 million in Capital Grant Re- rather than small, not having an ing the Woodward project for ” New Starts. ceipts Revenue Bonds by DDOT; one-off efforts RTA in place DDOT. Peter Rogoff, The FTA currently is seeking $12 million from previously re- through the FTA pro- isn’t a deal- White has said the city prefers Federal Transit Administration $3.2 billion in funding for 28 tran- ceived federal transportation gram that DDOT is breaker for to build the Woodward line first, sit construction projects in the grants; $25 million from a federal working through. federal fund- then establish an RTA once other fiscal 2012 federal budget. Transportation Investment Gen- If approved for the money, ing. communities see the value of the DDOT would commence construc- The New Starts funding is part erating Economic Recovery “Folks generally recognize es- system. tion in the spring, and the line tablishing an RTA is going to take of the president’s $3.7 trillion 2012 grant; and $100 million in cash do- Marie Donigan, a former Royal could be running by 2015. It ex- time,” he said. “It can be a multi- budget request to Congress, nations and tax breaks (such as Oak state representative who does pects to apply later this year or step process.” which remains under debate as federal New Markets Tax Credits) private-sector transit advocacy early in 2012 for the federal money. That doesn’t mean the feds don’t part of the wider government assembled by a consortium of lo- and consulting, said a way can be (See story, right.) want it to happen as soon as possi- debt crisis. cal private backers and founda- found to make an RTA work, but In the meantime, there has been ble. The federal budget year begins tions, called M1 Rail. there is a lack of leadership and closed-door discussion of reviving “It’s always a good business Oct. 1, but the budget debate is ex- — Bill Shea will to get it done. efforts to establish a regional practice when establishing a new “There isn’t an overriding (po- transit authority that would gov- transit system that the agency current discussion of putting a re- feds appear to look favorably on litical) demand to have a regional ern the rail and bus systems in that’s going to operate it is in- gional transportation tax on a bal- the Woodward project. transit system,” she said. “Some- lot, but the FTA is helping DDOT Transportation Secretary Ray body has to be in charge. Nobody and regional leaders discuss fund- LaHood — Rogoff’s boss — has here is in charge — which is why ing mechanisms, Rogoff said. been to Detroit to announce plan- we don’t have one.” “Was Detroit’s initial operating ning grants for it, and the Obama funding plan (the most ideal) that administration has made the city Other worries we’ve seen? No,” he said. “We’re part of its “Strong Cities, Strong working with them to strengthen Communities” initiative aimed at The missing RTA isn’t Rogoff’s it. They have to show realistic helping distressed cities make bet- only concern about the light rail plans at each stage (of the federal ter use of federal funding and ex- proposal. funding process).” pertise. He has expressed skepticism The only current regional trans- Also, the FTA last week said the about DDOT’s plan to fund the portation levy is a .059 mills prop- project satisfies the requirements system’s operational costs erty tax in Wayne, Oakland and of the National Environmental through a $17.5 million annual Macomb counties that supports Protection Act. mishmash of state and federal the SMART bus system. It was re- The decision doesn’t mean grants along with city general newed in August 2010, but allows the project is green-lighted for funds and rider fares. communities to opt out of partici- funding, but that it has met the “The strongest operating plans pating — something regional sys- smell test of major regulatory con- are those that have a designated, tem backers say cannot be allowed cerns. consistent and reliable funding for a new system. “We’re making good progress. source,” he said. Rogoff also has About 40,000 people in Wayne, said that there is concern that Oakland and Macomb counties use This, like others across the coun- DDOT could end up cannibalizing the system’s 640 buses serving try, will have stutter steps and bus funding for the rail project, 1,200 square miles daily. The sys- naysayers along the way. After the which is forbidden under FTA’s tem connects to Detroit’s bus sys- first segment is built, even some of funding rules. tem, which is funded through the the naysayers want to know when A dedicated funding source for a city’s budget and federal grants. the next one is coming to their multi-jurisdiction transit system is community,” Rogoff said. typically some type of regional tax Bill Shea: (313) 446-1626, — something often administered Making progress [email protected]. Twitter: by a regional authority. There is no Even without an authority, the @bill_shea19 DBpageAD.qxp 8/26/2011 10:35 AM Page 1 20110912-NEWS--0006-NAT-CCI-CD_-- 9/9/2011 5:03 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 12, 2011 Heat assistance freeze sends chills through agencies

BY SHERRI WELCH from them and eight hard-hit cities that rates,” said Robert Strong, member, Clark The nonprofit is soliciting donations to CRAIN’S DETROIT BUSINESS were midstream in energy efficiency retro- Hill PLC and general counsel for ABATE, try to make up the gap, she said. fits to municipal buildings, among others. which counts the automakers, chemical and Warm Training Center expects the state Cuts of more than $200 million in state The cuts are “very concerning for the steel companies among its members. cuts to decrease its $2.3 million budget for and federal funding to emergency energy as- agencies (and) very concerning for Con- Following the appeals court’s ruling, the this year by $500,000, Chapman said. sistance and energy efficiency programs — sumers Energy,” said Whitney Skeans, cus- PSC directed Consumers Energy to continue “We partner with THAW, the Salvation Army and to the nonprofits that administer them tomer assistance coordinator for the Jack- collecting money for the state fund in rates and the City of Detroit Department of Human Ser- — are expected beginning in October, just as son-based utility, who is co-chair of the but to hold it in escrow. vices so that people who received crisis fuel the cold weather begins. Coalition to Keep Michigan Warm, a group of Detroit Edison and MichCon are continu- assistance also got some solutions-based help At the state level, the cuts stem from a late energy providers, nonprofit assistance ing to collect the money and escrow it as so they could immediately do something to July decision by the Michigan Court of Appeals, agencies, state departments and others. well, said Judy Palnau, media and public in- bring their bills down,” he said. which ruled the Michigan Public Service Com- More than 615,000 people in Michigan re- formation specialist at the PSC. Chapman said he expects the organiza- mission does not have the authority to collect ceived assistance through the federal fund- The PSC submitted a request to appeal the tion will have to lay off four to six of its 24 roughly $90 million from customers of Detroit ing last year, according to the coalition. Michigan Appeals Court decision to the employees. Edison Co., Consumers Energy Co. and Michigan About 100,000 received energy assistance Michigan Supreme Court on Sept. 1. Cuts to the Clean Energy Coalition’s funding Consolidated Gas Co. to fund energy assistance and weatherization services through the But for now, $90 million sits with the utili- will mean the loss of $2.5 million of its and efficiency programs through the Low-In- state fund, said Bob Chapman, executive di- ties, which were to transfer it to the state $4.4 million grant for the Cities of Promise come and Energy Efficiency Fund. rector of the Warm Training Center, one of the fund as of Oct. 1, Palnau said. program and another $5 million grant to ex- That decision has frozen about $90 million coalition’s members. Of that amount, $72 million was awarded pand its work with more cities. while the PSC figures out what to do with Skeans said there are discussions at the by the PSC, with $35 million to go to the In its third year, the program was funding funds collected previously by utilities to PSC and in the Legislature on how the state Michigan Department of Human Services and energy efficiency audits and retrofits to mu- fund assistance programs through the De- situation can be remedied in the short term the remainder to agencies nicipal buildings, said Sean Reed, founder partment of Human Services and nonprofits. for the upcoming heating season. around the state. and executive director of the coalition, At the federal level, President Obama is At Consumers, the state charge is built For nonprofits like The which expects to close out this year with a calling for a 50 percent cut in the $5.1 billion into the rates for all customer classes: com- Heat and Warmth Fund, a total budget of about $3 million. Low-Income Home Energy Assistance Pro- mercial, industrial and residential. decision by the Michigan Those projects were expected to save up to gram fund. In Michigan, that fund supports Skeans said the charge is about $7 a year Supreme Court — or a $1 million over the next decade, in each of state emergency energy assistance, home for an average electric residential customer legislative solution to re- eight initial cities: Benton Harbor, Detroit, energy conservation services for low-in- and about $10 a year for an average natural assert PSC’s authority to Flint, Hamtramck, Highland Park, come residents, energy-efficiency projects gas customer, but she did not have figures collect and distribute the Muskegon Heights, Pontiac and Saginaw. and the Home Heating Credit. for commercial and industrial customers. money — can’t come soon The original eight cities expected to each The cuts would decrease Michigan’s allo- The Association of Businesses Advocating enough. save up to $1 million over the next decade Sherer cation by 46 percent to a projected $106 mil- Tariff Equity, a group of large industrial ener- CEO Susan Sherer said and to reinvest those savings back into a lion in the coming fiscal year, down from gy users, and former attorney general THAW’s budget for fiscal 2012, which began city-managed fund that would fund similar $227 million in fiscal 2011. Michael Cox filed separate appeals of a PSC July 1, will plummet 63 percent from $24 mil- efforts in the future in each of the cities, The reductions are expected to hurt the ruling on a Michigan Consolidated Gas rate lion to $9 million as of Oct. 1. Reed said. budgets and staff levels at nonprofits that case with the Michigan Court of Appeals The nonprofit has tabled its plans to hire Sherri Welch: (313) 446-1694, provide those programs, hundreds of thou- last summer, which led to the July decision. more employees but doesn’t immediately ex- [email protected]. Twitter: @sherriwelch sands of low-income residents who benefit “This is not something that belongs in pect layoffs of any of its 17 employees. Amy Lane contributed to this report.

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September 12, 2011 CRAIN’S DETROIT BUSINESS Page 7 Newton, Handique raise profile of med device startup

BY TOM HENDERSON end of July and recently agreed to “This is a great story, a perfect of $140 million. CRAIN’S DETROIT BUSINESS join DeNovo after helping advise example of a successful entrepre- The firm had been seeking $125 the co-founders for much of the neur with a very good reputation million, but based on returns from DeNovo Sciences LLC, a tiny med- past year. taking his talents to help another the sales of HandyLab, HealthMedia ical device startup in Plymouth “At big companies, things move company grow,” Kinnear said. Inc. and Accuri Cytometers Inc., the Township, has joined forces with so slowly. I am really enjoying be- And Jan Garfinkle, managing fund was oversubscribed. two big names: Roger Newton and ing back at a startup,” said Hand- director of Ann Arbor-based Ar- Mahendra Ramsinghani, man- Kalyan Handique. ique. His first mission is to make boretum Ventures, a HandyLab in- aging director of the First Step Handique, co-founder of Handy- the rounds of the local angel investor, looks forward to hearing Fund, a $5 million Detroit-based Lab Inc., will serve as CEO and vestor community. from Handique. fund that typically invests $50,000 Newton, founder of Esperion Thera- Newton Handique Tom Kinnear — executive direc- “I’m excited to hear the news,” in new companies, met with Hand- peutics Inc., as scientific adviser. tor of the Zell Lurie Institute for Entre- Garfinkle said. “His strength is ique and DeNovo’s founders last Both men also will be investors. In October 2009, HandyLab was preneurial Studies at the Ross School building a team and a culture.” week. DeNovo, which rents literally sold for $275 million to New Jer- of Business at UM, chairman and The timing of a pitch to Garfin- He said he will recommend an just a few square feet of lab space sey-based Becton, Dickinson & Co. president of the state’s Venture kle is particularly fortunate for investment in the company. at the Michigan Life Science and In- Handique, known as Handy, Michigan Fund and an avid local an- Handique because Arboretum an- Tom Henderson: (313) 446-0337, novation Center, was founded by joined Becton, Dickinson & Co. gel investor — will be happy to nounced last Thursday that it has [email protected]. Twitter: Chris Siemer, Saedeh Sepehri and He left Becton Dickinson at the hear Handique’s pitch. closed on its third and largest fund @tomhenderson2 Priya Gogoi, young biologists whose biggest accomplishment to date was their business plan win at the Great Lakes Entrepreneurs Quest in June. “HealthPlus takes care of my employees Their product is a small microfluidic chip about an inch square that they hope will analyze so I can take care of business. That’s a blood samples to detect a wide range of very early-stage cancers. The company has a prototype that has passed early tests at the big Plus.” Karmanos Cancer Institute to see if the design works to capture cells. Blood flows in one end and out the other, with 10,000 tiny chambers in between to, in theory, capture cancer cells circulating from very early-stage tumors. The company hopes to start human trials soon and applied in Au- gust for a broad-based patent. It also is trying to raise a seed round of up to $1 million this year and a Series A venture capital round of $7 million next year. The technology, if it works as planned, could also be used by researchers to see how well drugs attack cancer cells. The market is huge, the need great. Such a chip could save tens of thousands of lives a year and many millions of dollars in biopsy costs, said Ramzi Mohammad, the director of gastrointestinal cancer research in the Department of On- cology at Karmanos. But good ideas and big markets are par for the course for entrepreneurs. What’s not par for the course is landing the likes of Hand- ique and Newton. Newton founded Esperion in 1998 to make a drug to treat high cholesterol. He raised $200 million to fund drug development, took the company public in a $54 million offering in 2000, then sold it to Pfizer Inc. in 2002 for $1.3 billion. In 2008, backed by nearly $23 million in venture capital, Newton HealthPlus goes above and beyond for employers. relaunched Esperion, buying back from Pfizer the rights to a cholesterol-fighting molecule. It is cur- ǆƚĞŶƐŝǀĞƐƚĂƚĞǁŝĚĞĂŶĚŶĂƟŽŶĂůƉƌŽǀŝĚĞƌŶĞƚǁŽƌŬƐ rently in trials. Siemer and Gogoi were interns Worldwide emergency coverage at Esperion before deciding to found DeNovo last year. WĞƌƐŽŶĂůĂƩĞŶƟŽŶďǇĂĚĞĚŝĐĂƚĞĚƵƐƚŽŵĞƌ^ĞƌǀŝĐĞƚĞĂŵ “Their flexibility in taking on projects impressed me,” said New- ĂƐǇƚƌĂŶƐŝƟŽŶĨƌŽŵŽƚŚĞƌŚĞĂůƚŚƉůĂŶƐ ton. “And their technology is fasci- nating. It has legs.” Customizable HMO, PPO and self-funded health plans In 2000, Handique and Sun- daresh Brahmasandra, engineer- To enroll, contact your independent agent or call: ing students at the University of Michigan, founded HandyLab, 1-800-530-9071 which used microfluidic technology to quickly and cheaply diagnose www.healthplus.org diseases. The company raised more than $46 million over the HealthPlus HMO is a product of HealthPlus of Michigan, Inc. HealthPlus PPO is a product of HealthPlus Insurance Company. © 2011 HealthPlus of Michigan next nine years. 20110912-NEWS--0008-NAT-CCI-CD_-- 9/9/2011 3:26 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 12, 2011 OPINION OTHER VOICES Give game developers Extend region to Windsor-Essex Why is a new bridge be- with Tourism Windsor- gan’s film industry, Windsor-Es- tween Detroit and Wind- Essex-Pelee Island to pro- sex may just become Hollywood’s sor so important? What mote. next big thing as Ontario has a per- access to incentives does it really mean for Just 45 minutes from manent film and television tax Michigan? the border in Harrow, On- credit, with an additional 10 per- It is time we consider tario, the Canadian gov- cent for productions outside of the hen Michigan’s film incentives were created in 2008, Windsor-Essex part of our ernment created the greater Toronto area. Regardless video game developers largely were left out in the region, recognizing our Greenhouse and Process- of what happens with film credits W cold. (See story, Page 3.) neighbors as our business ing Crops Research Cen- in Michigan, we should promote The Michigan Department of Treasury’s interpretation of partners and welcome tre where new technolo- Detroit and Windsor-Essex to the them into our community. gies are created affecting entertainment industry and con- incentive eligibility required developers to own intellectual Despite the collapse of Daniel Cherrin the agricultural industry. tinue to build upon the existing property and distribution rights — something not common in the auto industry, the Windsor-Es- Why can’t we link that with all the film industry in Detroit while alan industry where games are often based on movies, toys and sex region remains strong in man- food technologies being created in lowing it to expand into Windsor- other copyrighted products. ufacturing, renewable energy, lo- and around Battle Creek? We Essex. That may be about to change. gistics/warehousing and can’t, in part, because we are not The University of Windsor is agribusiness. It has the longest taking the time to develop partner- working with TechTown and has Senate Majority Leader Randy Richardville, R-Monroe, has growing season in Canada, averag- ships across the border to benefit joint programs with the Universi- introduced legislation that would drop the requirement for ing 212 days, and the largest green- both economies and both nations. ty of Detroit, the University of video game developers, and a court also has ruled in develop- house industry in North America We are too focused on ourselves. Michigan-Dearborn and Wayne ers’ favor, although that is being appealed by the state. for vegetables and exotic flowers. Windsor-Essex is investing in State University. (The University Game developers often set up deeper roots and offer more Why can’t we move quicker on ur- the creative industries including of Windsor is a client of mine). ban farm initiatives or build just digital media and working with Windsor Regional Hospital and long-term employment in a community than the nomadic as many greenhouses on this side their universities and colleges to Hôtel-Dieu Grace Hospital have a movie industry. They should not have unreasonable barriers of the border? keep rising talent in the region. strong partnership with Henry to be eligible for incentives. There are 14 commercial winer- Why can’t we work together to Ford Hospital in Detroit for pa- ies with internationally recog- keep rising talent in the region? Solution needed to heating aid hit nized wine that we could work Given the uncertainty of Michi- See Voices, Page 9 Funding for heating assistance for low-income residents is taking a hit. As Sherri Welch reports on Page 6, funding is getting re- LETTERS TALK ON THE WEB duced on two fronts. President Obama is calling for a 50 per- From www.crainsdetroit.com cent cut in the Low-Income Home Energy Assistance Program. Bogus suits hurt biz And, at the state level, the Michigan Court of Appeals has Editor: Re: Kilpatrick at Philander Smith Reader responses to stories and ruled that it is illegal for the Michigan Public Service Commis- I could not agree with Michael When I saw your blog, the first blogs that appeared on Crain’s sion to distribute roughly $90 million collected by state utili- Bates more (“No windfall from thing I did was check to make Web site. Comments may be sure it wasn’t a college we have ties for various energy assistance and efficiency programs. Irene,” Sept. 5 Letters). As a busi- edited for length and clarity. ness owner going on 20 years of under consideration for my son. The decision is being appealed. growth, I find my defense of a friv- Is white-collar crime now accept- The need for heating assistance as we head into the cold- olous lawsuit highly detrimental able? Perhaps the college should Re: Pure Michigan marketing shifted weather months is critical. to my growth. invite him to speak on ethics as The Michigan Economic Devel- Gov. Rick Snyder in early August sent a letter to the leader- Although the funds paid to well. This is just what we need — opment Corp. uses money confis- Kilpatrick teaching our young ship of a key congressional committee urging for sustained lawyers, expert witness and my cated from citizens in the form of own employees (who still get paid people that crime pays. funding through the federal energy-assistance/weatherization higher taxes. Gov. Snyder and his by me while being deposed) can go Compass Commerical political friends at MEDC social- program. And, the Coalition to Keep Michigan Warm, a group toward new cars, clothing and wid- ize capital and privatize profit. of energy providers, nonprofit assistance agencies, state de- gets, it chokes my funding for new Re: No-fault insurance proposals P. Lester Diddy partments and others, also is lobbying Michigan’s congres- employees, IT, telecom, equip- There is nothing in these bills sional delegation. ment, etc. that states I can continue my un- Pure Michigan is simply state The creator of wealth is pun- limited coverage at the same welfare for chamber of com- And, Rep. Ken Horn, R-Frankenmuth, chair of the House ished while the system effectively merce types who would rather Energy and Technology Committee, said he plans to find a leg- price I pay now. The fact of the redistributes the wealth to the matter is that the insurance com- buy lobbyists and corrupt politi- islative solution to get money already collected and being held sycophants. panies will not be required to pass cians instead of paying their own in escrow to people in need as winter approaches. This is no way to serve as a cata- any savings on to their customers. advertising and promotions. It is Sen. Michael Nofs, R-Battle Creek, chair of the Senate En- lyst of economic growth. This is a The only ones I can see who are time for chamber of commerce much broader expansion of the ex- sure to gain will be the insurance members to pay for their own adver- ergy and Technology Committee, also plans to hold hearings ample, but the same principal ap- tising, just as our Michigan busi- on both state and federal funding issues in the coming weeks, companies. Even taxpayers will plies. lose on this deal because the un- ness has done successfully for his legislative director, Greg Moore, said. Michael T. Kulka covered injuries will end up in over 25 years. Co-founder and CEO Accommodator Hopefully, their combined efforts will yield results at both PM Environmental Inc. the Medicaid system. the state and federal levels. Berkley Mynsbem See Talk, Page 9 KEITH CRAIN: Sept. 11: A day that no one will ever forget Anyone who is old enough well Ten years ago I was in er tower. ed, we really didn’t expect anyone. when you simply were not able to remembers where they were when Frankfurt for the bien- I found a friend at the To our surprise, we had hun- return to Detroit. It took several they heard about the assassination nial auto show, and Mercedes stand and we dreds of people show up for our re- more days before the airlines got of John F. Kennedy. around three in the af- went into his office and ception. Everyone wanted to be to- back to something resembling nor- I had just taken off on a plane ternoon Germany time watched the event un- gether and, for many, they said malcy. from Denver heading for Chicago, had just left an inter- fold on CNN in the Ger- that they had come to support the I can only imagine that after Pearl and 20 minutes after takeoff the pi- view with the head of man language for a cou- United States. Harbor, everyone knew what to do. lot clicked on the intercom and an- Renault. I stopped in the ple of hours. It didn’t For several days we were all After 9-11, no one had any idea as nounced that the president of the middle of their stand to matter what language locked out of returning to the Unit- to what to do. There was no clearly United States had been assassinat- call the office in Detroit. was on the television, it ed States. No flights were allowed defined enemy, and there still isn’t. ed. That was it. For the next two It was then that I was simply horrifying. to fly inside our country, and most It made traveling more difficult hours we were left to our imagina- learned about a plane We had plans for a re- of us in Frankfurt just hung than ever. tions as to what had happened. that had flown into one ception where we around waiting to get home. A few terrorists changed the way Many of us were afraid that there of the towers of the World Trade would be announcing the intro- Eventually some of us flew to we all lived then and now. Perhaps would be no O’Hare airport when Center. While I was on the phone, duction of a new German-language Canada and Windsor and then forever. So on 9-11 a decade later, I we got there. It was a very strange my secretary told me that she just trade paper we were launching. Al- drove over the bridge into Detroit. am in Germany once again. Let’s experience. saw another plane fly into the oth- though hundreds had been invit- It was a very strange feeling hope the week is peaceful. 20110912-NEWS--0009-NAT-CCI-CD_-- 9/9/2011 10:18 AM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Small biz can help lure young talent to state

It is important for recognize that the young growth over security, excitement a richer ecosystem than our lead- discuss college options. Talk to col- Michigan to retain and at- talent we are trying to re- over consistency. They won’t ers normally portray. Point out lege students in your field. Ask tract young talent, espe- cruit has different ideas spend their career with a single not just our own companies, but who is staying in Michigan. Ask cially in technical fields. about what makes a great company. They want to change the the many other opportunities for who is leaving. Ask why. Press the Companies locate where career in a great place. The world and create new enterprises. those who locate here. People can MEDC to produce a Pure Michigan there is a strong talent Pure Michigan campaign, People say: “Go to Silicon Val- continue their education at our campaign for young talent that is pool, and business growth in particular, focuses on ley, or Route 128.” Those regions graduate schools. Even the exodus every bit as inspiring as the cam- is dependent on it. We the desires of an older gen- have multiple opportunities. The can be an advantage. Young people paigns for our tourism industry. need talent to migrate to eration. Small businesses strength of the overall economy making a difference here are spe- If everyone does small, simple Michigan. Companies can extend Pure Michigan, minimizes the risk of any one job. cial: Even the governor mentions things, Michigan will become a will follow and put the highlighting the assets If your first Silicon Valley startup young people in almost every destination for talented young peo- economy on a growth Bill Wagner that attract the younger fails, just join another one. There’s speech. In Silicon Valley, or on ple. Once it starts, it will drive fur- track. generation: nightlife, a large com- always more opportunity. Route 128, you are just another ther change. Small businesses don’t have the munity of people their age, career We must tell this audience that nameless face in the crowd. Young Bill Wagner is CEO of Ann Ar- resources to implement high-speed opportunities with many different life in Michigan is much better people here have an amplified bor-based SRT Solutions, which rail, shrink Detroit to its urban companies, and the chance to than the perception. Washtenaw voice by choosing to be here. writes software for mobile, tablets, core, or hire by the thousands. But make a real mark on the future. County has more than 100 software Talk to people making life deci- web, desktop, and enterprise sys- when we do something, we can do The target audience values companies. That statistic points to sions. Go to area high schools and tems. it quickly. From that perspective, small businesses can play an effective role in attracting and retaining the young talent that’s critical to growth and prosperity. The people who promote our state are not the target audience of their promotion efforts. They don’t

VOICES CONTINUED ■ From Page 8 tients in need of emergency cardiac care. To enrich our region with culture and business acumen on both sides of the border, more partnerships around culture and business must matriculate. Our relationship is more than just a border crossing, an annual freedom festival, air races or a visit to Erie Street. It is about jobs and commerce, history and culture and the unique geography we share with each other. While Detroit and Southeast Michigan’s population may have declined over the past 10 years, if we include Windsor and southwestern Ontario, we have a much stronger story to tell. We should build a bridge between our cities that will be used to enhance one regional economy. Daniel Cherrin is an attorney, mediator, public relations executive and lobbyist with Fraser Trebil- cock in Detroit and Lansing.

TALK CONTINUED ■ From Page 8 Re: Jim Hiller’s grocery gospel I love his passion, but I have to wonder why his stores are supplied by a grocery wholesaler that is based in Minneapolis, rather than buying from Spartan Stores, which is If you have an opportunity, we’re ready. This is no time to wait. And based here in Michigan. we’re not. In fact, so far this year, we’ve extended nearly 10 billion dollars in SayYesToMich credit to business customers, and we plan to lend another 28 billion dollars If Mr. Hiller wants his children to stay in Michigan, he needs to in the year to come. In addition to lending, we will keep supporting local think about how we can all work businesses with ﬁnancial solutions and services that can improve productivity together to make our urban areas work again. and, ultimately, help them succeed. Find out how we can help you drive results David Waymire at 53.com/drivingresults or call 1-877-804-2091. Hiller’s approach to servicing customers and providing quality products is a breath of fresh air in an industry that continues to reduce cost to drive their bottom line. mlarue

Not many stories about busi- Loans subject to credit review and approval. Rates may vary based on credit qualiﬁcations. Fifth Third Bank, Member FDIC. Equal Housing Lender. nesses make me smile. I smiled through this entire article. … Can we clone Jim? Healthcare consultant 20110912-NEWS--0010-NAT-CCI-CD_-- 9/9/2011 11:07 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS September 12, 2011 Road projects at risk if Congress misses funding date

BY AMY LANE thorization, the lapse in funding highway projects moving forward tension through January. Then the CAPITOL CORRESPONDENT could affect road projects statewide. for about a month. task is for them to sit down and de- I’m pretty hopeful The extent of the impact is un- The department would likely velop a reauthorization bill, and LANSING — Around Michigan, “ clear: Some projects may already have to delay putting out in Octo- that’s a more difficult task.” road builders are pushing to com- that they will do the be paid for or may wrap up before ber bids for some $22 million in President Barack Obama has plete more than a thousand high- a federal funding lapse would be- new work, and it also would not called for an extension of existing way projects before Michigan’s right thing. come an issue, and the Michigan De- award any new contracts until fed- law, and a four-month extension construction season ends and un- ” partment of Transportation says it eral funding reauthorization is ex- for highway spending has started favorable weather sets in. Polly Kent, MDOT would do all it could to avoid ulti- tended. There are currently nearly to move in the Democrat-led U.S. But some of those projects could mately shutting down highway $100 million in contracts ready to Senate. The Republican-controlled be put at risk if Congress doesn’t Authorization for most of the projects. be awarded by MDOT. U.S. House has indicated support act on key highway funding mea- 18.4-cent per gallon federal gas tax, MDOT hasn’t determined what Polly Kent, intermodal policy for some form of extension. sures by Sept. 30. and for spending from the federal projects could be affected and is administrator at MDOT, said “if If an extension is not approved Riding on Washington over the Highway Trust Fund, expires Sept. optimistic that at least an exten- there’s not at least an extension, and road projects start to be affect- next few weeks is the federal gov- 30. If Congress fails to act either on sion will be made. that would be devastating.” ed, even short delays in construc- ernment’s authority to spend mon- an extension or on a compromise If federal funding is not extend- “I don’t want to be too Pollyanna, tion can cause problems, said ey on highways and transit and to between House and Senate proposed by Sept. 30, MDOT would have but I’m pretty hopeful that they will Mark Johnston, president of Ajax collect federal fuel taxes. als for transportation funding reau- enough money to keep current do the right thing and do a clean ex- Paving Industries Inc. in Troy. “Michigan is a short construction season. Our paving season ba- sically ends around Thanksgiving, if not sooner, and any type of delay, a week, two weeks, could put us into paving weather we’re not supposed to be in.” Beyond the question of a short- term extension lies the bigger issue of future federal road funding. A six-year, $230 billion proposal unveiled by U.S. Rep. John Mica, R-Fla., would reduce federal transportation funding by about 30 percent, setting a level of spending from the Highway Trust Fund that is in line with the amount of taxes the fund receives. MDOT estimates the House plan would mean a $175 million to $365 million annual reduction in Michigan’s federal funding. In the Senate, a $109 billion proposal from U.S. Sen. Barbara Box- er, D-Calif., would authorize transportation funding at approximately current levels plus inflation for two years. But the proposal would allocate more money than is available in the trust fund and $12 billion would need to be found elsewhere. Ajax Paving’s Johnston said Charlotte such uncertainty over future fund- Motown Expands to ing makes it difficult to plan capital investments, such as in equipment that is both costly and requires employee training. “It’s tough to make capital investment decisions on the long term,” he said. Dykema is pleased to announce the opening of our 11th Mike Nystrom, executive vice president of the Michigan Infrastruc- office, in Charlotte, North Carolina. ture and Transportation Association, said that “with a questionable fu- As a leading law firm for banks and financial institutions, ture, construction firms are not doing any additional hiring, there’s no better place to expand our national footprint they’re doing very little training; than Charlotte, a top U.S. banking center. they don’t want to invest in employees that they aren’t going to have eight to 12 months from now. Dykema’s automotive practice — which has existed since They aren’t buying any new equipment because of questions with re- 1926 — also has reason to celebrate our Charlotte office gards to the future. opening: a host of auto and truck manufacturers have “Uncertainty equates to inaction on planning, because you can’t significant operations in North Carolina or one of its plan on expansion when there’s no adjoining states. revenue to expand with.” But it’s also a picture that’s not new. The federal surface trans- Throughout the years, Dykema’s expansion into new markets Michigan portation law known as SAFETE- has been focused and purposeful, designed to meet the California LU originally expired in Novem- Illinois ber 2009 and is on its seventh needs of our clients while staying true to those values that North Carolina extension; its predecessor was also extended more than a dozen times, distinguish us from other law firms: Outstanding results. Texas Nystrom said. Unparalleled service. And exceptional value. Washington, D.C. “It has become almost a routine way of doing business, expecting www.dykema.com Congress to not actually do their To learn more, we invite you to visit www.dykema.com. duty until they debate it for far too

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at [email protected] CRAIN’S MICHIGAN BUSINESS Mary Kramer Middle ground in Michigan

Our country (read: Washington, D.C.) seems so politically polarized that it’s Filling the VC void hard to find the middle. Two exceptions are worth noting. On the left, it’s Michigan AFL-CIO Small funds President Mark Gaffney, who said last week he would meet big need not run for re- election. If you read the political for startups tea leaves, he is taking the fall for BY MATTHEW GRYCZAN the election last CRAIN’S MICHIGAN BUSINESS Gaffney fall of Republican Rick Snyder as governor over the drian Fortino counts him- anointed UAW candidate, Virg Bernero. self lucky he didn’t have to (So why wouldn’t the state Democratic A scrounge for money from Party chairman fall on his sword first, family and friends to launch Shep- inquiring minds might ask?) herd Intelligent Systems LLC in Ann On the right, it’s Paul Hillegonds, Arbor. And so far he hasn’t had to senior vice deal with the third traditional president of “F” source of funds for a startup corporate affairs company: fools. for DTE Energy. On On the contrary, Fortino Oct. 13, speaks highly of the advice he Hillegonds will has received from the principals receive one of of Huron River Ventures — who, four regional with a syndicate of other in- “Shining Light” vestors, closed on an agreement awards, sponsored by the with his company three weeks Hillegonds LON HORWEDEL Metropolitan ago to provide $1.25 million in exchange for an equity stake. A cellphone can check on University of Michigan bus arrival times through Shepherd Intelligent Systems’ tracking Affairs Coalition and the Detroit Free system. Adrian Fortino is Shepherd’s CEO and co-founder. Press. (For information, check The commitment “means the www.shininglightawards.com.) world to us,” said Fortino, 34, Hillegonds was a Republican state who with partner Jahan Khanna lawmaker from Holland for 18 years co-founded a business that al- Shepherd leads riders to buses on time when he made a dramatic decision to lows cellphone users to time move from the largely nonunion West their arrival at bus stations to With an infusion of $1.25 mil- Shepherd, created two years port in Boston. Michigan area to Detroit as CEO of meet the bus. lion, Shepherd Intelligent Systems ago from research at the Univer- About 85 percent of UM bus Detroit Renaissance Inc., the council That sort of funding can mean LLC in Ann Arbor is aggressive- sity of Michigan, posted about riders have used the Shepherd of CEOs (now the statewide Business the world to perhaps two dozen ly rolling out its proprietary $250,000 in revenue last year Intelligent system in some form Leaders for Michigan). DTE Chairman other startup companies in software system that uses GPS- from fixed fees it charges busi- over the past year, Fortino said. Tony Earley recruited him to his Michigan as well. enabled smartphones as track- nesses based on their fleet sizes. Riders do not need smartphones company from there. The recently capitalized Huron ing devices for bus systems, lim- The company to access the system — arrival Hillegonds understands the dominant River in Ann Arbor and Michigan ousine services and taxicab and has seven full- times can be sent by text mes- political, social and business cultures Accelerator Fund I in Grand shuttle service companies time employ- sage to any cellphone automati- that exist in our state better than Rapids invest in Michigan com- across the country. ees including cally. most. He dove into knotty problems panies only, providing cash com- Shepherd’s software allows Fortino’s An average of about 16,000 — including how best to fix Detroit’s mitments that they say can reach riders using any type of cell- partner and text messages have been sent ailing schools. He has created strong $1.5 million — the no man’s land phone to get predictions as ac- the compa- weekly at UM, Fortino said. relationships with people of all between the “three F’s” and the curate as 30 seconds from the ny’s chief He said his company’s system ethnicities, races and political stripes. more established venture funds actual arrival time of the bus or technology of- differs significantly from fleet I think the word for what he has that usually consider deals in the earned is “trust.” taxi. ficer, Jahan management such as C.J. Hood tens of millions of dollars. Transportation services can Khanna. Co. Inc.’s automatic vehicle loca- Gaffney has done the same. As a Khanna If all goes according to plan, use smartphones as inexpensive Fortino ex- tion system, because Shepherd’s member of the MAC board that is Huron River and Michigan Ac- giving out the leadership awards, tracking systems for their pects to hire this year to expand does not rely on dedicated hard- celerator each will raise about fleets, updating vehicle location the sales and marketing force. ware to track vehicles. Shep- Gaffney had a platform to represent $15 million by the end of 2012 to union views to a group of business data every two seconds to help Shepherd’s software is used herd uses GPS-enabled smart- invest in startups over the next leaders who might not always hear plan routes better and train dri- by customers including UM and phones running the Google few years. But both funds have them straight from the union mouth. vers how to conserve fuel, said Golden Limousine in Ann Arbor, Android platform as the track- sufficient capital now to make a Shepherd CEO and co-founder Indiana University-Purdue Universi- ing mechanisms. Plenty of knowledgeable politicos in difference for companies such as the “Michigan middle” mourned the Adrian Fortino. ty Indianapolis and Crystal Trans- — Matthew Gryczan Shepherd. loss of his pragmatic voice and The duo hope to spawn more perspective. You may not have always agreed with Gaffney on big issues, but small VC firms in Michigan as that have proved their business commitment — to market its pro- tiny funds can be very important you would respect his solid they themselves mature into concepts using money from in- prietary software aggressively to to a state like Michigan,” said representation of organized labor and midsize funds. vestors who know the company university bus systems, limou- Erik Gordon, a professor of entre- not feel polarized from it. “It’s the most important type founders personally but that now sine services, taxicab companies preneurial studies at the Universi- So even though it’s a year from now, I of funding that we need in Michi- need additional capital to com- and shuttle service companies ty of Michigan and associate direc- nominate Gaffney today for next gan,” Fortino said. “We have all pete in bigger leagues or tackle across the country. tor of the Zell-Lurie Institute at the year’s Shining Light awards. We need kinds of good companies out the next milestone. university’s Stephen M. Ross to celebrate more often integrity, there that are looking for growth For instance, Fortino said, The farm club system School of Business. “There’s a real dignity and thoughtfulness — and the capital money right now.” Shepherd will use its first need for relatively small ability to find the elusive middle. Huron River and Michigan Ac- “tranche” — VC-speak for draw- Huron River and Michigan Ac- celerator fill a need for startups ing some funds from the overall celerator “are tiny funds, but See Funds, Page 12 20110912-NEWS--0012-NAT-CCI-CD_-- 9/9/2011 10:15 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 12, 2011 CRAIN’S MICHIGAN BUSINESS Funds: Filling a VC void ■ From Page 11 amounts of money going to early- stage companies to help them develop their idea to the point they can attract bigger money.” To some extent, Gordon, 58, oversees his own tiny fiefdom as adviser to the university’s Wolver- ine Venture Fund, a $5.5 million fund that serves as a laboratory for MBA students learning to be to- morrow’s venture capitalists. But where Wolverine Venture can invest in a startup regardless of its location, Huron River and Michigan Accelerator can invest only in Michigan companies because of a patron investor: the Michigan Economic Development Corp. The MEDC has committed $6 million to each fund, with some stipulations that essentially try to JON BROUWER foster job creation in the state, Dale Grogan (left) and John Kerschen Gordon said. manage Michigan Accelerator Fund 1 in Grand Rapids. Michigan is far from unique in using taxpayer money for venture to crawl before it can run the capital. Florida and Maryland are marathon of the business world.” just two examples of states that Definitions in the venture capi- Gordon said are active in venture tal industry are somewhat loose at funding. the first stage, A venture capi- but pre-seed tal firm won’t all of A startup needs money usually a sudden “move “ comes from here or just to crawl those who are spring up,” well-acquainted Gordon said. before it can with company “The typical founders, and way it works run the seed money usu- is a venture ally comes from capitalist or marathon of high-net-worth group of ven- individuals who ture capital- the business serve as angel ists start investors. In with a very world. both cases, the small fund, and ” investors put up they create a track Erik Gordon, University of Michigan their own mon- record.” ey. At the same time, when first- After founders have reached time entrepreneurs need startup proof-of-concept with the initial capital, they need to understand funding, they usually seek early- they are entering a VC farm club stage VC funds such as Huron Riv- system. er and Michigan Accelerator, “You can’t start with, ‘Well, I’ve which are managed by profession- got this great idea from the Uni- als who handle money from other versity of Michigan laboratories investors. or Michigan State lab or Grand “Hopefully, the company needs Valley lab, and you just give me more money yet: It’s at a stage $20 million and I will get going on it,’ ” Gordon said. “A startup needs See Next Page 20110912-NEWS--0013-NAT-CCI-CD_-- 9/9/2011 10:14 AM Page 1

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From Previous Page fund’s other managing director, January, Grogan said, ranging where they have a more advanced Ryan Waddington, 40. from ideas that don’t stand a story to tell,” Gordon said. “Now chance to well-developed business they will need between $2 million The law of averages plans “that almost immediately and $5 million, and someone like they have everyone circling around Huron River will get together with Like other small firms trying to them.” a bigger VC firm to syndicate the establish themselves, Huron River For instance, Michigan Accelera- next round of funding.” and Michigan Accelerator have to tor has made two investments in Fortino said he has gotten much break into the VC industry by tak- Metabolic Solutions Development Co. more than just cash from Huron ing on deals that are too small for in Kalamazoo (featured in the Aug. River and another VC firm, RPM more established funds to consider. 8 issue of Crain’s Michigan Busi- Ventures in Ann Arbor, which “If you’re a midsized venture ness) in what was considered a later started in 2000 as Waypoint Ventures capital fund managing $400 mil- and more mature round of financ- and has invested in more than 20 lion to $500 million, you can’t ing. Grogan said the Metabolic So- companies. Huron River and RPM make investments of $250,000,” lutions investment isn’t typical for share offices in Ann Arbor and Gordon said. “You’d have to make Michigan Accelerator, but he is collaborate closely on opportuni- hundreds of investments that size elated to have been part of the syn- ties. just to deploy your fund.” dicate — a result of relationships in “My partner and I were intro- Michigan Accelerator already DAVID EGGERICHS duced to one another by RPM,” has assessed at least 150 deals since See Next Page Tim Streit (left) and Ryan Waddington of Huron River Ventures in Ann Arbor. Fortino said. “Jahan was a math graduate student working on the Magic Bus system — the precursor to our system — and he knew there was something there, but he needed help on the business side.” Khanna, 24, is chief technology of- Business & Warner ficer of Shepherd, and Fortino is CEO. Early VC firms have relationships with larger funds that become essential as a startup needs more capital, Gordon said. “A fund like Huron River will use its credibility and connections to syndicate the next deal,” he said. That syndication can occur at an early stage, said Tim Streit, a managing director of Huron River. The fund’s first investment was in Ambiq Micro Inc. late last year as part of a $2.4 million syndication that included investments from Draper Fisher Jurvetson and Cisco Inc. Ambiq Micro is a UM spinoff that claims to have created the world’s most energy-efficient mi- crocontrollers, which operate for long periods on very small batter- ies. Ambiq Micro was based in Michigan when it received its funding. The company has since moved its headquarters to Austin, Texas, because that city is home to a number of computer companies. But several Ambiq principals still live in Michigan. Streit, 33, said his fund usually expects to take an equity stake of one-third to one-half of the value of the company, either by itself or as part of a syndicate. One of the most difficult tasks that all the parties face during negotiations is to determine a reasonable value for the company before the cash investment. Dale Grogan, who manages Michigan Accelerator along with his partner, John Kerschen, said his fund expects to take similar equity stakes in the companies it ® backs. A Better Partnership That scale of investment provides enough capital for the startup to grow and keep the entrepreneurs motivated to persevere, but also gives the VC investors a significant say in how the company is run. “I don’t look at it as if I am losing a slice of the pie,” said Fortino, who would not disclose the percentage stake sold. “I look at it as I may have a smaller slice, but they SOUTHFIELD | STERLING HEIGHTS | GRAND RAPIDS | MUSKEGON | LANSING | HOLLAND will help create a much, much bigger pie. On an absolute basis, I’m going to have a much greater overall equity in the venture.” wnj.com With its investment, Huron Riv- er was given a seat on Shepherd’s board that will be filled by the 20110912-NEWS--0014-NAT-CCI-CD_-- 9/9/2011 10:13 AM Page 1

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From Previous Page to be zero for the funds, but the re- versities to instruct them on how to the West Michigan monied commu- turn for the state of Michigan will build businesses from their ideas. nity. not be zero,” he said. “About five The fund’s investment advisory where the Waddington said he and Streit (of 10 investments) may be worth committee consists of Marc Weiser probably have reviewed more than nothing — it’ll be a great idea, but and Tony Grover from RPM Ven- Party when you scale it up, it will fail. tures, Jim Adox from Venture In- Red Wings play! 250 proposals during the past two years. But the people who launched the vestors and Peter Mills from @Ven- Both funds say they see good deal companies have learned a lot tures. flow — the term assigned to propos- along the way, and they may go on Starting with a $6 million com- als being brought to them for in- to create other companies in mitment from the state, Michigan vestment. Out of the raft of propos- Michigan that succeed.” Accelerator has reached its initial als, each fund aims to select three goal of $10 million and hopes to to four deals a year for investment. Staying with what you know reach perhaps $15 million, Grogan The funds apply standard aver- said. ages in the industry for failure and Starting with a $6 million com- Michigan Accelerator has a close success rates. Probably one-third mitment from the Michigan Strate- relationship with Grand Valley State of the deals will be entire losses, gic Economic Investment & Commer- University and Hopen Life Science Ven- the second third may preserve the cialization Board, Huron River has tures, a Grand Rapids-based ven- initial investment with a loss or attracted an addi- ture capital firm gain of perhaps 20 percent, and the tional $3 million to- that recently last third will provide a return of ward its goal of man- For us to be launched its second at least five times the original in- aging a fund that it “ fund with a target of Õ'LQQHU *DPH*URXS3DFNDJHV$YDLODEOH vestments. The funds typically hopes will top $15 successful, we amassing $50 mil- Õ%RRN\RXU3ULYDWH3DUW\DWÐ7KH-RHÑ hold their equity stakes more than million by the end of lion by the begin- Õ&RUSRUDWH 6RFLDO3ULYDWH,FH6NDWLQJ(YHQWV five years before selling. next year. need to be very ning of next year for Even in a case of the failures, Both Shepherd investment in early 313.471.3333 the state gets something for its in- and Ambiq Micro capital-efficient to midstage life sci- vestment, said Gordon, the UM are sweet spots for ence businesses in- professor who oversees the Wol- Huron River, which and have a volving pharmaceu- verine Venture Fund. looks to invest in ticals, medical “The investment may turn out technology compa- relatively short devices and diagnos- nies that conserve or tics. extend energy and cycle time. Besides life sci- natural resources. ” ences, Michigan Ac- But Waddington said Ryan Waddington, celerator looks to in- the fund’s emphasis Huron River Ventures vest in homeland on clean technology security, informa- with a positive environmental im- tion technology, advanced manu- pact doesn’t include development facturing, agriculture and biofuels, of alternative-energy devices such and possibly alternative energy, as photovoltaic cells, wind turbines “although we don’t claim expertise Working Capital and battery storage. Commercial- in that space,” Grogan said. ization of those technologies takes Grogan said he gained some of investments of hundreds of mil- his experience in finance as presi- lions of dollars and years of work. dent of Leapfrog Smart Products Inc., To be successful, a fledgling a Florida company that developed fund such as Huron River must se- and marketed smart cards — wal- IN ACTION lect a few companies that are high- let-size plastic cards with embed- ly efficient with capital and can ded integrated circuits for identifi- bring a moneymaking product to cation and authentication. market in a few years. About three years ago, Grogan Waddington cut his teeth on as- joined Kerschen at The Charter sessing energy technology while Group, originally a business bro- he worked in the late 1990s in the kerage in Grand Rapids that corporate business development evolved into an adviser on merg- office of DTE Energy Co., where he ers and acquisitions with a sub- was involved in about 19 venture sidiary, Charter Capital Partners, capital transactions. He also did that invests in businesses and stints as director of venture ser- forms syndicates. Charter has vices with NEXTEnergy, a Detroit- been involved in investments in Al- based nonprofit that channels fed- liant Health Care Products in Rich- eral grants to energy companies land, Intervention Insights in Grand and incubates emerging clean-tech Rapids and Grand River Aseptic Man- companies, and as a director of ZBI ufacturing in Grand Rapids. Ker- Ventures, the venture capital group schen, 44, is managing director of within New York City-based Ziff The Charter Group. Bros. Investments. The investment review board of “The energy industry is very Michigan Accelerator is Ker- capital-intensive and very slow- schen; Mark Olesnavage, chair- moving,” Waddington said. “For man of Hopen; Mahendra Rams- us to be successful, we need to be inghani, who is managing director very capital-efficient and have a of the First Step Fund in Detroit; relatively short cycle time — yet and serial entrepreneur Craig We partner with business owners across Michigan to help their second stage still have technology that has a Hall in Grand Rapids. Hall also ad- positive environmental impact. As vises Huron River on day-to-day companies succeed beyond expectations. Our working capital options increase it turns out, companies like Shep- activities. herd are a very good fit for us.” The hope is that the state will cash ﬂow and our network capital connects entrepreneurs with the Streit said he owes some of his continue backing first-round ven- venture capital connections to ture funds such as Huron River people and resources they need to expand. stints at Hongkong and Shanghai and Michigan Accelerator. Banking Corp. in Chicago and JP- “We have a lot of smart people in Morgan Chase & Co. in New York Michigan,” Gordon said. “We have City. He holds a bachelor’s degree lots of engineering people, we have Let us put our growth capital and financial in mechanical engineering from lots of life science people — we are UM and an MBA from the Universi- a state that is rich in potential new wisdom to work for your business! ty of Chicago. companies. To make that happen, One of Huron River’s strategies is we have to be rich in sort of a ven- to commercialize research being ture capital ecology. done at UM, Michigan State University “The reason that these little and other state institutions. Last guys, even though they’re little, month, Huron River and other orga- are important is they become the 248.658.1100 HennesseyCap.com nizations sponsored a five-day big guys.” course in Grand Rapids that drew 21 Matthew Gryczan: (616) 916-8158, researchers from 10 Michigan uni- [email protected] 20110912-NEWS--0015-NAT-CCI-CD_-- 9/9/2011 10:12 AM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 15

CRAIN’S MICHIGAN BUSINESS Advertisement

Name change makes ULI “ Neighborhoods, cities and regions are awakening to statewide focus official the importance of ‘place’ BY DANIEL DUGGAN in economic development. CRAIN’S DETROIT BUSINESS ULI REAL ESTATE FORUM The University of Michigan/Urban They are planning for a future that recognizes The Urban Land Institute is mov- Land Institute Real Estate ing toward a statewide presence. Forum’s 25th annual event will be the critical importance of quality of life to attracting After founding a Detroit chapter Nov. 9-10 in Cobo Center in talent, entrepreneurship and encouraging local businesses. … A community in 1999, the Washington, D.C.-based Detroit. This year’s theme is urban planning and real estate edu- “Forged by Innovation.” Crain’s without place amenities will have a difﬁcult time attracting and retaining talented cation group is expanding and re- Detroit Business is a sponsor. workers and entrepreneurs, or being attractive to business.” – Gov. Rick Snyder branding to become ULI Michigan in- For information: umuliforum.com stead of ULI Detroit. The move comes after the group Grand Rapids. It’s expected that the statewide move will boost member- spent several years building a base We understand the importance of “place” in Michigan. in Grand Rapids, Lansing, Kalama- ship, which has been roughly 250 zoo and Flint, said William Watch, people, said Shannon Sclafani, The Michigan State Housing Development Authority (MSHDA) and the Small manager of ULI Michigan. chairman of ULI Michigan. Business Association of Michigan (SBAM) believe that in order to restore Michigan “It’s going to be a great opportu- ULI’s move is also recognition nity for our membership to have for the west side, said Rick Chapla, to a prosperous state, we must focus on what really matters: creating dynamic, the option of looking vice president of walkable, sustainable communities and regions where people want to live. at, and studying, the business attrac- That’s why we celebrate the release of “The Economics of urban areas around We’ll be sharing tion for The Right the state,” said “ Place, a Grand Place: The Value of Building Communities Around People,” Watch, who the best Rapids-based a new book published by the Michigan Municipal League is also presi- economic devel- that examines the importance of “place” as an economic dent of practices of opment group fo- development strategy that will create a positive, dynamic Southfield- cused on the future for Michigan. based First the west side west side. “It Commercial symbolizes that Lavishly illustrated with scenes of some of our state’s best Realty & De- with the east West Michigan placemaking triumphs, “The Economics of Place” includes is a strong play- velopment essays from urbanists, researchers, practitioners and Co. “We’ll be side and the er in the overall sharing the economic health entrepreneurs as they share their stories and unique perspectives best prac- east side with of Michigan,” he on the importance of “place” and its vital role as an economic spur. tices of the west side said. with the east side the west side. The expanded You will not only read about speciﬁc Michigan challenges and the state’s and the east side ” ULI works to- potential, but you will also discover lessons learned in other places around with the west side.” William Watch, ULI Michigan ward a larger A rebranding will goal of market- the country. occur in the next month as the ing the state’s to companies around name is changed on the group’s the country, said Eric “Dusty” Some of the highlights include: website, letterhead and emails. A Duistermars, a member of the na- series of real estate events will be tional attraction unit of the Michi- tThe importance of our young people and what it will take to keep them here held in cities around the state, gan Economic Development Corp. who tHow the changing demographics are driving a different path to economic viability starting in March in Lansing, and works on projects around the state. tWhat economics of place means in the New Economy vs. the Old Economy a West Michigan committee will be “The more we can do to identify formed to oversee future events. the entire state as one area, as a tTo design around people changes the way we look at a community Discussions have been in the larger region, the more it will help tCitizen engagement is a key component in building sustainable, vibrant works since ULI’s flagship event, us to tell its story to the rest of the communities country,” said Duistermars, based the University of Michigan/ULI Real tHow “social entrepreneurs” are driving change in Detroit Estate Forum, was held in Grand in Holland. “Regional collabora- Rapids in 2008. tion will do nothing but help the tHow federal policy has affected Michigan This year’s event will be Nov. 9- entire state.” 10 at Cobo Center in downtown De- Daniel Duggan: (313) 446-0414, Contributing authors include: troit. 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Page 16 CRAIN’S DETROIT BUSINESS September 12, 2011 CRAIN’S MICHIGAN BUSINESS MICHIGAN BRIEFS Truck suppliers seek boost from Emphasis on fuel performance in largest auto and home owner’s in- months of last year. to purchase energy from a wind the industry, even before the new surer in the U.S. The index dropped to 90.9 points farm in Michigan’s Thumb area. new fuel, emissions standards standards were announced, had — Matthew Gryczan from 94.4 in the fourth quarter of The contract is with Tuscola Bay DETROIT — Suppliers to the prompted increased sales for CK 2010. The dip still puts the index Wind LLC, a subsidiary of NextEra commercial truck and bus indus- Technologies, which is building a Business Leaders for Michigan well above the third quarter of Energy Inc., which will own the try throughout Michigan are wait- $20 million plant to handle new 2010, when it was 85.3. The index 9,000-acre wind farm in Tuscola, ing to see how new fuel and emis- business in Brownsville, Texas. plans CEO Summit for March also is above the 2010 first-quarter Bay and Saginaw counties. Juno sions standards in the U.S. will — Plastics News reading of 89. Beach, Fla.-based NextEra Energy The nonprofit Business Leaders The index uses six indicators to is the largest wind energy develop- affect them. for Michigan will host its first New rules announced last month measure innovation in the state: er in the country. Farmers Insurance to open Michigan CEO Summit next filings for incorporations and lim- The wind farm is expected to be- by the U.S. Department of Transporta- spring in Detroit. tion and the Environmental Protection new service center in Caledonia ited-liability companies, trade- gin operating late next year and “Attendees will be able to hear mark applications, percentage of will produce enough power for Agency should lead to lighter- Farmers Insurance Group is hold- firsthand how industry leaders are weight parts and more parts that innovation workers, venture capi- more than 30,000 homes. It is cur- ing an opening celebration this paving the path toward a new tal funding, gross job creation and improve aerodynamics, said Mark rently in the engineering phase, month for its $84 million training Michigan,” Business Leaders Pres- loans from the U.S. Small Business Miller, president of plastics injec- with construction expected to start and service center in the Grand ident and CEO Doug Rothwell said Administration. tion molder CK Technologies LLC. late next year and take six to nine Rapids suburb of Caledonia — its in a statement. Lee Redding, associate dean of The thing Miller said he does months. largest business campus in North The event is scheduled for academic affairs and an associate not know is how specific cus- The 20-year renewable-energy America — in preparation to ex- March 15 at the Westin Book Cadillac professor of business economics at tomers will approach the stan- contract, for 120 megawatts of pand the insurer’s business in the Hotel in Detroit. Registration will UM-Dearborn’s College of Busi- dards. “Here’s the difficulty,” wind-generated electricity, was ap- eastern section of the country. begin this fall through the Busi- ness, said the Small Business Jobs Miller said last month in an inter- proved by the Michigan Public Ser- Farmers Insurance said it ex- ness Leaders website, www. Act of 2010 contributed to 2010’s view. “There are a whole spectrum vice Commission. pects to add about 1,600 employees businessleadersformichigan.com. fourth-quarter spike in SBA loans. of issues and ways that they could DTE also announced it has se- over the next five years at the CEOs at the event will discuss A total of 720 SBA loans were is- approach this.” lected Southfield-based Barton Mal- 365,000-square-foot center, which issues facing Michigan’s economy, sued in the fourth quarter, com- An emphasis on engines or trail- ow Co. to build three wind farms in has been under construction since including private sector invest- pared with 437 in the first quarter ers, for instance, would not neces- Huron and Sanilac counties next 2009. The project is at the compa- ment and innovation. The public of this year. Without this unusually sarily be the same boon for CK year. General Electric Co. will pro- ny’s 600-acre Kraft Lake Office Park will be invited to attend for a fee high number, the overall reading Technologies — part of Grand vide the nearly 70 turbines for campus. that has not been set. would have been up slightly, Red- Rapids-based Cascade Engineering those wind farms, which will pro- Farmers said it hired more than Business Leaders’ vice presi- ding said. Inc. — as would be decisions to reduce about 110 megawatts of elec- 25 companies to build the project, dent of marketing and communi- Venture capital funding fell place metal parts with plastics, he tricity. with about 95 percent of the sub- cations, Kelly Chesney, said the from $25 million to $4 million. This said. — Amy Lane contracting work performed by event is expected to draw 300 peo- continues a trend of declining ven- The commercial truck industry West Michigan businesses. ple or more. ture capital funding in the state. In has had generally positive response Farmers facilities manager Pete — Michelle Muñoz the second quarter of 2010, fun ding Grand Haven injection molder to the standards. The rules cover Murray said one of the reasons for totaled $70 million. It fell to $40 mil- expands for ‘growth spurt’ everything from delivery vans and selecting the site was the availabil- lion in the third quarter. school buses to large semitrailer ity and skill level of workers in UM-Dearborn Innovation Index The percentage of innovation GRAND HAVEN — An injection- trucks, with improvement targets Kent County. The company em- slips in 1st quarter workers in the state fell from 4.9 molding company plans $4 million of 10 percent to 15 percent. ploys more than 2,250 on the cam- percent to 4.5 percent, lowering worth of new equipment for a “sig- The federal government esti- pus, making Farmers one of West The Innovation Index compiled the index 0.6 points. nificant growth spurt” it expects in mates improvements on fuel effi- Michigan’s top employers. by the Center for Innovation Re- The index’s gross job creation the second half of the year. ciency for those vehicles could Farmers Insurance, a sub- search at the University of Michigan- numbers are always one quarter Grand Haven Custom Molding LLC lead to $50 billion in fuel cost sav- sidiary of the Zurich Financial Ser- Dearborn fell in the first quarter of behind. The third quarter of 2010 opened in 2010 in the West Michi- ings for fleet operators. vices Group in Zurich, is the third- the year from the final three saw 217,000 gross jobs created, gan city. Owner Karl Chapel is the compared with fourth-quarter son of Al Chapel, who founded in- gross job creation of 207,000. jection molder Grand Haven Plastics The two indicators that boosted in 1983. Karl Chapel was vice presi- the index were incorporation and dent and general manager of that filings for limited-liability compa- company before launching the new nies and trademark applications. business in an industrial building. — Michelle Muñoz In paperwork filed with the city requesting a tax break, Chapel said the company expects to grow from DTE to buy $485 million worth annual sales of $4.5 million to a $30 of energy from Thumb wind farm million operation by 2013. Grand Haven Custom Molding also ex- State regulators have approved a pects to have 65 full-time employ- $485 million DTE Energy Co. contract See Next Page

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September 12, 2011 CRAIN’S DETROIT BUSINESS Page 17 CRAIN’S MICHIGAN BUSINESS MICHIGAN BRIEFS Presented by From Previous Page sued official notice that the current tegrated photovoltaic application. ees with the expansion, compared funding system must be changed. Ⅲ UM was awarded $1.5 million with 15 now. The City Council ap- Said Kurt Weiss, public informa- for an organic photovoltaic tech- proved an industrial facility tax ex- tion officer for the state budget of- nology. 4FQUFNCFS emption, which will reduce the fice: “While we have not received The SunShot Initiative has dis- QNoQN company’s taxes for 12 years. any formal notice in writing, we bursed $59 million since 2007 to en- .46,FMMPHH)PUFM$POGFSFODF — Plastics News have had verbal conversations courage a widespread adoption of with the federal government indi- solar energy systems. This year $FOUFS &BTU-BOTJOH Legislature passes cating that we can expect a formal Michigan received the third-largest notice.” dollar amount out of 50 states. health care claims tax — Amy Lane The goal of the SunShot Initia- Michigan in 2050 A new 1 percent tax on paid tive is to make solar energy more Joel Kotkin health care claims, designed to 3 state firms, UM get solar economical. It seeks to lower the Author of THE NEXT HUNDRED MILLION: generate about $1.2 billion in fund- costs of solar energy systems 75 America in 2050 ing for the state Medicaid pro- energy grants totaling $16.5M percent by the end of the decade. gram, is on its way for Gov. Rick Three Michigan businesses and — Michelle Muñoz Internationally-recognized speaker and writer Joel Kotkin Snyder’s expected signature. the University of Michigan in Ann will examine Michigan’s future economy and demography The Legislature last month gave Arbor have been awarded grants Whirlpool loses bid for U.S. including changes to our state’s population, its cities and small final approval to the tax, the biggest totaling more than $16.5 million communities, and the opportunities for new jobs and industries unfinished piece of the state budget from the U.S. Department of Energy’s duties on Korean refrigerators as America reaches new heights in the coming decades. that starts Oct. 1. It would be paid Office of Energy Efficiency and Renew- The U.S. Department of Commerce by health insurers, including self- able Energy. rejected a bid by Benton Harbor- funded employer plans, and third The projects included in the de- based Whirlpool Corp. for counter- party administrators. Annual Dinner partment’s SunShot Initiative must vailing duties on imports of cer- It is targeted to generate about Al Sharpton and Pat Buchanan improve the materials, manufac- tain refrigerators from South $400 million, which would lever- turing processes and supply chains Korea, saying the Asian producers Debate the Big Issues age an additional $800 million in received minimal subsidies. federal matching funds. of solar energy systems. Political analysts and former Presidential Candidates Sharpton Countervailing duties are meant The new tax in Senate Bill 348 The following received SunShot to offset government subsidies pro- and Buchanan share their thoughts on national issues and their replaces a 6 percent use tax on grants: vided to a manufacturer. impact on Michigan. Topics include an outlook on the 2012 Medicaid health maintenance or- Ⅲ Cascade Engineering Inc. of Samsung Electronics Co., LG Elec- national elections and Michigan’s congressional candidates. ganizations. Federal officials are Grand Rapids, $602,623 for a rack- tronics Inc. and Seoul-based Daewoo expected to no longer allow the use ing system for commercial roof- Electronics Corp. received aid worth tax as a mechanism to receive fed- tops that uses polymers. “below 1 percent overall” of the Register at www.michamber.com/futureforum eral Medicaid matching dollars. Ⅲ Raymond Tinnerman Manufactur- But in a statement, House Demo- ing of Rochester Hills, $1.67 mil- product’s price, below the thresh- .JDIJHBO$IBNCFS'PVOEBUJPOt48BMOVU4U -BOTJOH .* cratic Leader Richard Hammel, D- lion for a bracket system for com- old for the imposition of tariffs, the tXXXNJDIBNCFSDPN Mt. Morris Township, said the mercial rooftop installations. International Trade Administration claims tax was not needed because Ⅲ Midland-based Dow Chemical said last month. the federal government has not is- Co., $12.8 million for a building-in- The ruling is a preliminary determination, and the Commerce Department is to make its final decision by Jan. 9. South Korean companies sent refrigerators val- ued at $881 million to the U.S. in 2010, according to the department. Whirlpool said it wasn’t sur- prised because the Asian nation’s producers resisted answering U.S. investigators’ questions. — Bloomberg News July brings higher jobless rates, but nothing like years past LANSING — It used to be that July brought significant layoffs be- “Clarkston State Bank is one of cause of shutdowns and retooling in the first banks in Michigan to the auto industry. But for a second year, revamped automaker produc- recapitalize on its own. tion has meant fewer July layoffs in Michigan manufacturing. Their local board members stayed committed to Seasonally unadjusted manufac- their community and mission in the toughest of turing jobs dropped 11,000 from June to July, but that was well be- economic times.” low the retooling-related layoffs of MICHIGAN REPRESENTATIVE MARTY KNOLLENBERG (R) nearly 35,000 that occurred in past Standing Committee Chair for Banking and Financial Services Julys at automakers and suppliers. Overall, seasonally unadjusted unemployment rates rose in 14 of eadership is exactly what’s behind Clarkston State Bank’s success Michigan’s 17 major labor market L in the face of a crushing economic climate and bailouts. CEO Grant areas in July. The largest increases Smith and the bank’s board made some tough calls. The bank survived were in the Detroit metropolitan and will be here to serve the community for many years to come. statistical area, up 1.6 percentage points; the Flint MSA, up 1 percentage point; and the Battle Creek and Monroe MSAs, each up 0.7 points. Minor rate declines of 0.1 percentage point occurred in the Holland MSA, northwest lower Michigan That’s strength. That’s leadership. and the Upper Peninsula MSA. And that’s why more people are banking on Clarkston State Bank. Compared with a year ago, un- Main Ofﬁce Clarkston Waterford Sashabaw employment rates in most regions 15 S. Main St. 5800 S. Main St. 6600 Highland Rd. 6461 Sashabaw Rd. throughout the state remained sig- Clarkston 48346 Clarkston 48346 Suite 2 Clarkston 48346 (248) 625-8585 (248) 922-6970 Waterford 48327 (248) 625-0887 nificantly lower. Sixteen of the 17 (248) 886-0086 regions posted year-over-year rate declines of 1.6 percentage points or www.clarkstonstatebank.com more, with a median reduction of 2.1 percentage points. — Amy Lane 20110912-NEWS--0018-NAT-CCI-CD_-- 9/8/2011 4:01 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS September 12, 2011 CRAIN’S MICHIGAN BUSINESS Success is in the cards for nonprofit that employs disabled

BY HOWARD LOVY can see what we do, they fall in really green.” State Farm, plus Paperworks has SPECIAL TO CRAIN’S MICHIGAN BUSINESS love with us,” Lewis said. “Social Initially, Burns said, she was seen “big growth in retail and in- Social media is an media is an integral part of our unsure what baabaazuzu’s cus- dividual orders,” Lewis said. In a nondescript commercial “ ‘falling in love strategy.’ ” tomers would think about the com- Lauren Lawson, media rela- park near Cherry Capital Airport in integral part of our What does Lee get out of the pany’s hawking Paperworks’ tions manager at the national of- otherwise scenic Traverse City, partnership? cards. But her customers expect fice of Goodwill Industries Interna- workers with disabilities trans- ‘falling in love First, it’s a great way to build re- products that are handmade, tional, said revenue from local form bits of flowers, blue jeans — lationships with customers and unique and recycled, so Paper- Goodwill initiatives such as Pa- even hops for beer and coffee strategy.’ partners using social media, said works appears to perworks is key grounds — into handcrafted sta- ” Nancy White, Lee’s manager of be a good fit. to the organiza- tionery. Brian Lewis, marketing communications. So far, word tion’s survival. Scrap by scrap, the employees at Paperworks Studio Second, it helps Lee maintain its has spread via “Unlike oth- Paperworks Studio also are building sustainability goals by eliminat- social media, er nonprofits, a livelihood in a job market that is sales from last year. Next year, he ing waste and finding creative and we don’t have to tough even for someone without a said, the company forecasts 300,000 ways to reuse its denim scraps. baabaazuzu’s fundraise be- disability. cards sold at the same price, “When we first heard about it, customers cause our busi- Brian Lewis, Paperworks’ di- “though it wouldn’t surprise us if we thought it was a great way to seem eager to ness model is rector of sales and business devel- we grew faster,” he said. recycle the denim,” White said. get their cards. based on online opment, thinks they are building Lewis pointed to Paperworks “But then when we heard that Pa- “We’re real- sales and unique what will become a multimillion- Studio’s first national partner: Lee perworks Studio employs special- ly excited to business models dollar company as it partners Jeans. Kansas-based Lee supplies needs employees, we were really be working like Paperworks,” with major corporations world- scraps of denim that the workers inspired by that.” with these Lawson said. “So wide. turn into cards. Another natural partnership guys, and I’m revenue is key, In the past seven months, this The partnership with Lee is a Lewis points to is one with really excit- and it’s really 180-worker nonprofit — which be- testament to the strength of social baabaazuzu, based in Lake Lee- ed about what funds our job- came a program run by Goodwill In- media. Lee found out about Paper- lanau on the pinkie of Michigan’s where it training and sup- dustries of Northern Michigan three work’s plans for blue jean cards mitten. Baabaazuzu supplies cloth- might take port programs. years ago — has pursued an ag- when the Traverse City company ing to around 900 retailers across us,” Burns said. “Goodwill wants gressive plan to go national “friended” Lee on Facebook. the country. The clothing itself is Lewis said the to be unique and through partnerships with corpo- Lewis launched the social media made from scraps of larger items most popular cards A Facebook friendship find different ways rations and businesses that share campaign shortly after he began at that ordinarily would just be are holiday cards helped Paperworks Studio in to fund the mission, Paperworks’ vision of creating Paperworks, to spread the news tossed out. and cards made Traverse City partner with Lee and Paperworks is jobs for people with disabilities by about what it is doing and to at- “A lot of our product is byprod- from scraps of blue Jeans get denim scraps to just one example of crafting green products from tract potential partners. Paper- uct of larger pieces in our line,” jeans and coffee use in making cards like this. being able to do scraps that otherwise would be works has a social media coordina- said baabaazuzu founder and lead grounds, followed that. They’re mak- thrown away. tor who also puts together videos designer Sue Burns. So giving the by tie-dyed patterns and the ing products and they’re making a Lewis said Paperworks sold to post on YouTube. smallest scraps to Paperworks baabaazuzu cards. Companies difference in someone’s life at the more than 150,000 cards in the past “We knew from the experience “is really getting down there as that have ordered the cards in- same time.” year at around $2 per card, double of giving tours that when people far as using our scraps, so it’s clude Merrill Lynch, Yoplait and As for those employees, Kim Henderson, who is in charge of hiring at Paperworks, said she looks for somebody who can come in, have a sense of humor and “just love what they’re doing.” “Just because they’re disadvan- Make an Executive Decision. taged and disabled doesn’t mean that they can get away with any and everything,” Henderson said. “This is a place of employment. Choose Sommers Schwartz This is your job. You are treated here just like you would be in a fac- To Protect your career tory, in a grocery store. We expect the same things.” Lawson at the national office and your Family said that Goodwill International perhaps will want to expand the Paperworks concept, “but I don’t know if we’re at that point yet.” Decisions… decisions. This does not deter Lewis from making big plans. He said he Choosing the right law firm to handle your wants other production opera- employment law dispute can be difficult. Fortunately, tions around the country to do we at Sommers Schwartz can make your choice much easier. what the Traverse City workshop Why? Simple. We offer you our vast experience with both does. business and individual cases, handle a diverse clientele, The goal is to “be a multimillion- dollar greeting card company, ab- resolve cases quickly, customize fee arrangements and offer solutely,” Lewis said. you the clout of a big law firm combined with highly Paperworks began with Tra- personalized service. verse City teacher Tim Coffey, who started it to help children So make an executive decision. Choose Sommers Schwartz with special needs build self- for all your employment law needs. esteem and become more independent after they left school. The big push to go national can be traced to Lewis’ involvement. The former owner of Sleeping Bear Press in Chelsea sold the publish- ing company in 2002 and decided to move north and try something new. “Many entrepreneurial aspects of business have applied here,” yhd/s ^WZd/KE /^Whd^ ͻ /^Z/D/Ed/KE ͻ ,Z^^DEd ͻ KsZd/D >/D^ ͻ t,/^d>ͳ>KtZ Lewis said. “I also believe that if you are passionate about what you SOMMERS SCHWARTZ | 248-415-3205 | 1-800-285-0048 | 2000 Town Center, Suite 900, Southfield, MI 48075 do, it has a big impact on your suc- www.sommerspc.com cess. It is impossible not to be passionate about Paperworks Studio and the talented people who make our beautiful cards.” 20110912-NEWS--0019-NAT-CCI-CD_-- 9/8/2011 4:05 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 19

CRAIN'S LIST: LARGEST OUTSTATE PUBLICLY HELD COMPANIES Ranked by 2010 revenue

Company; fiscal year end Revenue Revenue Net income Exchange/ Stock price Phone; website ($000,000) ($000,000) Percent ($000,000) Ticker 52-week Rank Location Top executive 2010 2009 change 2010/2009 symbol high/low Type of industry Dow Chemical Co., (12/2010) Andrew Liveris $53,674.0 $44,875.0 19.6% $2,321.0 NYSE 26.95 Chemical manufacturer 1. (989) 636-1000; www.dow.com chairman, president and CEO $648.0 DOW 26.53 Midland Whirlpool Corp., (12/2010) Jeff Fettig 18,366.0 17,099.0 7.4 619.0 NYSE 56.60 Home appliance 2. (269) 923-5000; whirlpool.com chairman and CEO 328.0 WHR 54.94 manufacturer and sales Benton Harbor Kellogg Co., (01/2011) John Bryant 12,397.0 12,575.0 -1.4 1,247.0 NYSE 54.50 Food processing 3. (269) 961-2000; www.kelloggcompany.com president and CEO 1,212.0 K 54.01 Battle Creek Stryker Corp., (12/2010) Stephen MacMillan 7,320.0 6,723.1 8.9 1,273.4 NYSE 49.44 Medical technology 4. (269) 385-2600; www.stryker.com chairman of the board, president 1,107.4 SYK 48.73 Kalamazoo and CEO CMS Energy Corp., (12/2010) John Russell 6,432.0 6,205.0 3.7 340.0 NYSE 19.41 Utility 5. (517) 788-0550; www.cmsenergy.com president and CEO 229.0 CMS 19.14 Jackson Perrigo Co., (06/2011) Joseph Papa 2,755.0 2,268.2 21.5 339.2 Nasdaq 92.79 Pharmaceuticals 6. (269) 673-8451; www.perrigo.com chairman, president and CEO 223.8 PRGO 91.66 Allegan Spartan Stores Inc., (03/2011) Dennis Eidson 2,533.1 2,552.0 -0.7 32.3 NASDAQ 15.84 Grocery retail 7. (616) 878-2000; www.spartanstores.com president and CEO 25.6 SPTN 15.74 Grand Rapids Steelcase Inc., (02/2011) James Hackett 2,437.1 2,291.7 6.3 20.4 NYSE 7.53 Office furniture 8. (616) 247-2710; www.steelcase.com president and CEO (13.6) SCS 7.40 Grand Rapids Universal Forest Products Inc., (12/2010) Matthew Missad 1,890.9 1,673.0 13.0 17.4 NASDAQ 28.99 Wood and wood-alternative 9. (800) 598-9663; www.ufpi.com CEO 24.3 UFPI 28.03 products Grand Rapids Herman Miller Inc., (05/2011) Brian Walker 1,649.2 1,630.0 1.2 70.8 NASDAQ 19.34 Furniture manufacturing and 10. (616) 654-3000; www.hermanmiller.com president and CEO 68.0 MLHR 18.84 interior systems design Zeeland Wolverine World Wide Inc., (01/2011) Blake Krueger 1,248.5 1,101.1 13.4 104.5 NYSE 36.01 Footwear manufacturer 11. (616) 866-5500; www.wolverineworldwide.com chairman, president and CEO 61.9 WWW 35.44 Rockford La-Z-Boy Inc., (04/2011) Kurt Darrow 1,187.1 1,179.2 0.7 24.0 NYSE 8.43 Home furniture 12. (734) 242-1444; www.la-z-boy.com president and CEO 32.7 LZB 8.13 manufacturer Monroe

This is a list of publicly held companies outside of Wayne, Oakland, Macomb, Washtenaw and Livingston counties. 52-week highs and lows for period ending Aug. 31, 2011. LIST RESEARCHED BY BRIANNA REILLY

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Page 20 CRAIN’S DETROIT BUSINESS September 12, 2011

CRAIN’S HOSTS WORKSHOP ABOUT PURE MICHIGAN CONNECT Companies interested in learning hear from leading private-sector more about the Pure Michigan purchasing managers on how to get Meet with Connect plan to create more into their vendor systems and procurement participate in opportunities for in- roundtables with buyers companies all state businesses will from the companies or have access to top industries they choose. purchasing managers at The event will feature over the world an upcoming Crain’s speakers Jeff Brownlee, event. purchasing director for the state of Crain’s is hosting Buy Michigan, Michigan; John Eley Jr., senior before your a Second Stage workshop, on Sept. supply chain manager for DTE 22. The event is planned in Energy Co.; Mike Finney, president partnership with the Small Business and CEO of MEDC; Brian Smith, competition Association of Michigan and the president of the Institute for Supply Michigan Economic Development Management; and Cynthia Kay, Corp. Huntington Bank is the title owner and president of Cynthia Kay boards the plane. sponsor. and Co. Participants at the 7:30-11:30 Tickets purchased in advance a.m. session at the MSU are $35 each, $30 for groups of 10 Management Education Center in or more, or $40 at the door. Troy can learn how the Pure For more information, visit Michigan Connect program works, www.crainsdetroit.com/events.

To learn how Automation Alley CRAIN’S HOSTS ANNUAL HOUSE PARTY SEPT. 28 can help you expand your Those interested in residential apartments, followed by a living in Detroit can get a taste later combined afterglow party. The business globally, contact us this month with the Crain’s House afterglow will be held at The at www.automationalley.com Party. Roostertail. Last Crain’s Detroit year’s party attracted or call 1-800-427-5100. Business and more than 1,000 sponsors including the attendees.Tickets to Michigan State the Sept. 28 event are Housing and $60 each, $50 for Development Authority throw the groups of 20 or more. annual event consisting of 29 See www.crainsdetroit.com cocktail parties at historic Detroit /events for more information or to homes, lofts, condominiums and register. 20110912-NEWS--0021-NAT-CCI-CD_-- 9/8/2011 4:55 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 21

Monthly India WHERE MICHIGAN DOES BUSINESS

Federal-Mogul Corp. elcome to the fourth when accounting for pur- Based: Southfield edition of Crain’s chasing power parity — is ex- AROUND THE WORLD W monthly World pected to cross the $4 trillion India operations: A corporate office in Each World Watch Watch report, which exam- mark this year. New Delhi New Delhi, four regional aftermarket of- Monthly will feature a Manesar Gurgaon NEPAL fices, 17 aftermarket distribution centers ines how Michigan compa- India has 10 of the 30 different country. If you Bhiwadi across India and seven manufacturing facil- nies are going global with fastest-growing urban areas know of a Michigan ities including two in Bangalore, two in Bhi- manufacturing, research and in the world and is growing company that exports, INDIA wadi, one in Parwanoo, one in Patiala and other operations. the high-tech and industrial manufactures abroad Vadodara Kolkata one in Uttarakhand. World Watch showcases portions of its economy, or has facilities abroad, Ankleshwar email Jennette Smith, Mumbai BANGLADESH Employees: 6,660 Michigan companies that are which traditionally has been Talegaon deputy managing Chakan Products: Pistons and piston rings, already international busi- dominated by agriculture. Dabhade Pune editor, at Hyderabad ness leaders in growing glob- Examples of major indus- spark plugs, engine bearings, valve seats [email protected]. and guides. al markets — and those that tries include telecommunica- Upcoming reports: are expanding operations. tions, textiles, chemicals, Bangalore Industries served: Automotive, heavy- October: Great Chennai duty vehicles, motorcycles, railway, indus- This month’s report cen- food processing, pharmaceu- Britain Maraimalai Nagar ters on India, a big world ticals steel, transportation Puducherry trial, energy and power generation. November: Israel economy growing at hyper equipment, mining, petrole- Top executive: Jean de Montlaur, presi- December: Canada dent and managing director of India opera- speed. The GDP for 2010 was um, machinery, and IT - tions. $1.53 trillion, but GDP — based services. More information: Building a brake ma- India operations: TI India operates as two terial manufacturing plant in Chennai legal entities, Bundy India Ltd. and Hanil Tube and Tavera for sale nationwide. More information: Kellogg India prod- scheduled to begin operations by the end of India Private Ltd., and has a corporate office Top executive: Karl Slym, president and ucts are exported to Sri Lanka, Nepal, this year. and facility in Manesar and facilities in managing director, GM India. Bangladesh, Bhutan and Maldives. Chennai, Vadodara and Bangalore. More information: GM and its Chinese Employees: 641 Ford Motor Co. partner Shanghai Automotive Industry Corp. Products: Brake and fuel components, are expected to begin selling minivans un- Perrigo Co. Based: Dearborn high pressure diesel components, com- der the Chevrolet brand in India by 2012. Based: Allegan India operations: Ford India Private Ltd. pressed natural gas and liquefied petrole- India operations: The over-the-counter has an assembly plant and an engine plant um gas parts and plastic fuel tanks and pharmaceutical producer acquired an 85 per- in Maraimalai Nagar and 190 sales and ser- tubes. cent stake in Mumbai-based Vedants Drugs vice offices in 109 cities. Top executive: T. Ravi Babu, managing and Fine Chemicals in August 2009. Perrigo Employees: More than 10,000 director. plans to make India a major global produc- Products: The Ford Fusion, Ikon, Figo, More information: Plans to open a facili- tion base for the company and is converting Fiesta, Endeavour and diesel engines. ty in Chennai to support Nissan India plat- the Vedants facility in Hyderabad to be on- Top executive: Michael Boneham, presi- forms and set up operations for supply of One of IAC India’s two plants in Chakan. line and begin production by the end of 2011. dent and managing director, Ford India. engine parts. Employees:50 More information: Ford India is invest- Products: Certain specialty active phar- ing about $1 billion to build two new manu- International Automotive maceutical ingredients as well as prescrip- Visteon Corp. facturing fa- Components Group tion and future prescription to over-the- cilities in Based: Van Buren Township counter products. western In- Based: Southfield India operations: One manufacturing Top executive: Joseph Papa, chief execu- dia in Gu- India operations: IAC India engineers and plant in Bhiwadi, one in Chennai and two tive and chairman, Perrigo Co. jarat for manufactures interior and exterior compo- in Pune; operates a technical and services stamping, nents for passenger vehicles and heavy center in Chennai and a major engineer- body, paint trucks around the globe. Its engineering Stryker Corp. ing center in Pune. Visteon offers products and vehicle and regional headquarters is in Pune; two to India-based and global vehicle manufac- assembly plants are in Chakan and one in Manesar, Based: Kalamazoo turers and engineering support and soft- and machin- New Delhi. India operations: Medical technology ware for domestic and global product pro- Checkpoint at the end of the line company Stryker India Private Ltd. has a sales grams. in Ford India’s assembly plant. ing and en- Employees: About 500 gine assem- Products: Components including instru- and marketing presence in India, with sales Employees: 3,000 bly. The facilities will employ close to 5,000 ment panel assemblies, glove box assem- offices in New Delhi, Mumbai, Chennai and Products: Heating, ventilation and air people. Ford India also will invest $72 mil- blies, front grills, doors, door trim, floor Kolkata. Stryker established the Stryker conditioning systems, powertrain cooling lion to expand its engine plant in Chennai consoles, mud guards, wiper panels, aero Global Technology Centre in Gurgaon in systems and controls, air induction sys- to support its sales and export growth plans corners, wheel liners, foot steps and wind- 2006 to help accelerate global innovation. tems, exhaust gas recirculation coolers, au- in India. shield access handles. The company’s presence in India is in re- dio and infotainment, control panels, in- Industries served: Automotive search and development and sales. strument panels, cockpit modules, and front Top executive: Gajanan Gandhe, senior Employees: 400 and rear lighting products. General Motors Co. vice president of Asia. Industries served: Medical Customers: Hyundai Motor Co., Maruti Based: Detroit More information: In January, IAC ac- Top executive: Yashdeep Kumar, manag- Suzuki, Ford Motor Co., Tata Motors Ltd., Mahin- India operations: General Motors India has quired Manesar-based Multivac India Private ing director, India dra & Mahindra Ltd., General Motors Co. and Ltd., a supplier of vehicle headliners, instru- Volkswagen. 209 sales points and 205 service outlets in 178 cities across India. It has a vehicle man- ment panels, interior trim and door panels Synova Inc. Top executive: A. “Vish” Viswanathan, ufacturing facility in Talegaon Dabhade for to vehicle manufacturers. In March, IAC managing director, India operations. Group opened its second manufacturing fa- Based: Southfield the Chevrolet Spark and Beat, cility in Chakan. India operations: Headquartered in Elec- Whirlpool Corp. a vehicle manu- tronic City, Bangalore, Synova Innovative facturing facili- Kellogg Co. Technologies Private Ltd. provides informa- Based: Benton Harbor ty in Halol, and tion technology and software services with India operations: Three plants, including a powertrain Based: Battle Creek offices in Chennai, Gurgaon, Hyderabad, a washer plant in Puducherry and a refrig- plant in Tale- India operations: Kellogg India produces Noida, Pune and Kolkata. erator plant in Faridabad, a corporate office gaon Dabhade and markets several cereal products in In- Employees: 750 in Gurgaon, 21 sales offices and one global Installing glass at GM dia with one manufacturing facility in Talo- Services: Staff augmentation, resource technology center. that produces India’s Talegaon Dabhade ja, an office in Mumbai and sales offices in requirement fulfillment, virtual staffing, Employees: 2,350 engines for plant. small passenger New Delhi, Kolkata and Chennai. multiple location fulfillment and project Products: Refrigerators, washing ma- cars. GM India also has a technical center Employees: 2,500 employees in all of management. chines, air conditioners, microwaves and in Bangalore that houses engineering, de- Asia Pacific region. Industries served: Finance, government, water purifiers. sign and R&D activities, a corporate office Products: Special K, All-Bran Wheat technology, automotive and health care. Top executive: Arvind Uppal, president, in Gurgaon and regional offices in Gurgaon, Flakes, Corn Flakes, Extra Muesli and Hon- Top executive: Tim Manney, president. Asia South and Asia Pacific and chairman Mumbai, Chennai and Kolkata. ey Loops. and managing director, India. Employees: 4,000 Top executive: Paul Norman, president, TI Automotive Ltd. More information: Exports about 200,000 Products: The Chevrolet Spark, Beat, Kellogg International; and Sangeeta Pen- units from India annually. Captiva, Optra, Cruze, Aveo, Aveo U-VA, durkar, managing director, India. Based: Auburn Hills — Ellen Mitchell DBpageAD.qxp 3/17/2011 10:31 AM Page 1 20110912-NEWS--0023-NAT-CCI-CD_-- 9/8/2011 3:58 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 23

CRAIN'S LIST: LARGEST WOMAN-OWNED BUSINESSES Ranked by 2010 revenue

Company Revenue Revenue Local Local Percent Address ($000,000) ($000,000) Percent employees employees woman- Rank Phone; website Majority owner 2010 2009 change Jan. 2011 Jan. 2010 owned Type of business RKA Petroleum Cos. Inc. Kay Albertie $492.6 $406.7 21% 83 82 100% Petroleum wholesaler, biodiesel, ethanol, E-85, jet A and 28340 Wick Road, Romulus 48174 majority jet A1 products 1. (734) 946-2199; www.rkapetroleum.com shareholder

Detroit Entertainment LLC (MotorCity Casino- Marian Ilitch 446.4 445.8 0 2,040 2,087 100 Casino, hotel, dining and theater Hotel) owner 2. 2901 Grand River Ave., Detroit 48201 (313) 237-1589; www.motorcitycasino.com

Troy Motors Inc. (Elder Automotive Group) Irma Elder 376.6 296.7 27 300 247 100 Automobile dealerships 777 John R Road, Troy 48084 CEO 3. (248) 585-4000; www.elderautomotivegroup.com

Strategic Staffing Solutions Inc. Cynthia Pasky 205.0 171.0 20 497 250 74 Pprovides consulting and staff augmentation services, 645 Griswold St., Suite 2900, Detroit 48226 president and vendor management programs, executive search 4. (313) 596-6900; www.strategicstaff.com CEO services, call center technology and a Detroit-based IT development center

Rush Trucking Corp. Andra Rush 100.0 90.0 11 311 316 100 Motor carrier 38500 Van Born Road, Wayne 48184 chairman and 5. (734) 641-4354; www.rushtrucking.com CEO

Vendor Managed Solutions Inc. Rumia Ambrose- 89.5 85.0 5 65 NA 100 Integrated maintenance, repair, and operations and 850 Stephenson Highway, Suite 600, Troy 48083 Burbank vendor management services, procurement, supply chain 6. (248) 658-4600; www.vmsglobal.com president

Iconma LLC. Claudine George 88.6 53.2 67 28 NA 100 Professional staffing and project-based services 850 Stephenson Highway, Troy 48083 managing 7. (888) 451-2519 member and CEO

Technical Training Inc. (TTi Global) Shirley Brzezinski 63.5 45.0 41 163 120 100 Staffing, outsourcing and training 2750 Product Drive, Rochester Hills 48309 shareholder 8. (248) 853-5550; www.ttinao.com

Unibar Services Inc. G. Jean Davis 60.0 55.0 9 400 NA 81 Utility support and meter services, damage prevention, 4325 Concourse Drive, Ann Arbor 48108 president and facilities locating and asset protection 9. (734) 769-2600; www.unibarinc.com CEO

Rodgers Chevrolet Inc. Pamela Rodgers 54.2 40.0 35 62 57 85 Automobile dealership 23755 Allen Road, Woodhaven 48183 president 10. (734) 676-9600; www.rodgerschevrolet.com

Motor City Stampings Inc. Judy Kucway 49.0 32.0 53 260 175 NA Stamping plant; automotive welding, assembly, dies and 47783 N. Gratiot Ave., Chesterfield Township 48051 CEO and CFO prototypes 11. (586) 949-8420; www.mcstamp.com

G-Tech Services Inc. Mara Ghafari 43.4 31.6 37 435 340 100 Recruitment and placement of engineers, technical 17101 Michigan Ave., Dearborn 48126 chairman and support, information technology, and finance and 12. (313) 441-3600; www.gogtech.com corporate counsel accounting professionals on a contract and direct-hire basis

Wolverine Truck Sales Inc. Lynn Terry 40.4 36.0 12 99 97 100 Truck sales, parts and service 3550 Wyoming Ave., Dearborn 48120 president 13. (313) 849-0800; www.wolverinetruckgroup.com

Systrand Manufacturing Corp. Sharon Cannarsa 40.0 27.5 45 113 163 100 Precision machining and assembly of automotive 19050 Allen Road, Brownstown Township 48183 president and products 14. (734) 479-8100; www.systrand.com CEO

Mars Advertising Inc. Marilyn Barnett 35.5 34.3 4 348 335 50 Advertising agency 25200 Telegraph Road, Fifth Floor, Southfield 48033-7496 president and 15. (248) 936-2267; www.marsusa.com chairman of the board

Rapid Global Business Solutions Inc. Bati Devi 35.5 18.5 92 624 295 80 Engineering design, staff augmentation, vendor 31791 Sherman Drive, Madison Heights 48071 chairman management services, payroll 15. (248) 589-1135; www.rgbsi.com

Jawood Holding Inc. Lynn Mustazza 35.5 30.7 16 344 204 70 Information-technology consulting and staffing 32270 Telegraph Road, Suite 200, Bingham Farms 48025 president and 15. (248) 833-8000; www.jawood.com CEO

Seko Worldwide Detroit Tanya Bartelo 31.0 28.1 10 22 25 51 Global logistics provider, including air, ocean and 6800 S. Cypress, Romulus 48174 owner and domestic transportation, as well as customs brokerage 18. (734) 641-2100; www.sekologistics.com/detroit managing director services and export crating

The WW Group Inc. (Weight Watchers) Florine Mark 25.0 25.0 0 850 850 60 Weight-loss products and services 28555 Orchard Lake Road, Farmington Hills 48334 chairman and 19. (248) 553-8555; www.8883florine.com president www.florineonline.com

ASG Renaissance LLC Lizabeth Ardisana 22.9 21.3 8 227 205 51 Marketing communications, public relations, staffing, 22226 Garrison, Dearborn 48124 CEO performance management and diversity services 20. (313) 565-4700; www.asgren.com

This list of woman-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, the companies provided the information. Percentage of the company that is woman-owned may not be solely held by the leading shareholder. NA = not available. LIST RESEARCHED BY BRIANNA REILLY DBpageAD.qxp 9/7/2011 12:15 PM Page 1

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September 12, 2011 CRAIN’S DETROIT BUSINESS Page 25 Extra

People

Ashok Sarnaik, M.D., F.C.C.M., F.C.C.P, F.A.A.P., professor of pediatrics in the Wayne State University School of Medicine, has been appointed interim chair of the CRAIN’S Health Care department of Sarnaik pediatrics and specialist-in-chief of pediatrics for HEROES Detroit Medical Center. He replaces Bonita Stanton, M.D., who recently was appointed vice dean of research. Sarnaik, who is co-chief of critical care medicine at Children’s Hospital of Michigan, has been an instructor with the School of Medicine since 1973. Bonita Stanton, Top-notch health care relies on treatment innovations and M.D., the Elizabeth relentless devotion to patient care. Schotanus professor This year’s Health Care Heroes demonstrate both. and chair of pediatrics for the Winners from area health care organizations were chosen in five Wayne State categories in Crain’s 10th annual awards: Advancements in Health University School of Medicine, has been Care, Allied Health, Corporate Achievement in Health Care, named vice dean of Outstanding Physician Achievement and Trustee. research for the school. Stanton is Stories on the winners and honorable Stanton pediatrician-in-chief mention recipients begin on at Children’s Hospital of Michigan. Page 26 and continue John Boltri, through M.D., has been Page 37. appointed chair of the Wayne State University School of Medicine department of family medicine and public health sciences. Boltri, who will join the department Oct. 1, is Boltri the associate director of the family medicine residency program at the ISTOCKPHOTO.COM Medical Center of Central Georgia and professor and vice chair of faculty Advancements Outstanding Physician Trustee, Allied Health, Corporate Achievement development for the Mercer University School of Medicine department of family in Health Care, Page 26 Achievement, Page 28 Page 30 Page 31 in Health Care, Page 34 medicine in Macon, Ga. Georgia Michalopoulou, assistant professor in the Wayne State University School of Medicine’s department of psychiatry and behavioral neurosciences, has been appointed to the executive board of Michigan Women Psychologists. Michalopoulou, who is also chief of staff of child psychiatry and psychology at Children’s Hospital of Michigan, has been appointed for one year and her term can be extended at the recommendation of the executive board. She will chair the research and liaison committees. Winner: John Greden, Winner: Steven Bolton, Winner: Robert Naftaly, Winner: Stella Husch, Winner: Robert Levine, Carla Sledge, M.D., University of M.D., St. Joseph Mercy UAW Retiree Medical Strive Recreational Therapy Henry Ford Health System Wayne County CFO, Michigan Comprehensive Oakland Benefit Trust Services Center for Integrative has been named to Depression Center Honorable mention: Honorable mention: Honorable mention: Wellness the board of Honorable mention: Farid Fata, M.D., Michigan Waltraud "Wally" Prechter, Lisa McDowell, St. Joseph Honorable mention: directors for Rose Voravit Ratanatharathorn, Hematology Oncology Heinz C. Prechter Bipolar Mercy Health System Lynn Orfgen, Crittenton Hill Center, a M.D., Karmanos Cancer Honorable mention: Research Fund Honorable mention: Hospital Medical Center psychiatric Institute Sam Flanders, M.D., Jonnie Hamilton, Napoleon treatment and Beaumont Hospitals B. Jordan Center rehabilitation facility. Responsible for the county’s $2.1 billion THIS YEAR’S JUDGES CRAIN’S HEALTH CARE SUMMIT Sledge annual budget, Chris Allen, CEO, Detroit Wayne County Health Authority The 2011 Health Care Heroes will be honored at the Crain’s Health Care Sledge has experience in finance, Leadership Summit. The Oct. 20 event features a roster of speakers on what the strategic planning and interaction with Mary Beth Bolton, M.D. consultant, former chief medical officer, Health Alliance Plan future of employer-sponsored health care will look like. It will be held 7:30 a.m.- federal and state government agencies. 2 p.m. at MotorCity Casino. Tickets are $99 for the full day, $50 for the Health She was a 2011 recipient of Crain’s Fred Brown, managing director, Ducker Worldwide Care Heroes luncheon only and $110 on-site. For more information or to register, CFO of the Year award. Dorothy Deremo, president and CEO, Hospice of Michigan go to www.crainsdetroit.com/events 20110912-NEWS--0026-NAT-CCI-CD_-- 9/8/2011 4:26 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 12, 2011 Health Care Extra

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IF IT’S HEALTH CARE, WE WILL BE THERE.

BOB CHASE John Greden, executive director of the University of Michigan Comprehensive Depression Center, said he’ll push ahead despite the cancellation of expected federal support. 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | 248.740.7505 ZZZKDOOUHQGHUFRP UM center director raises awareness of depression

John Greden, M.D. authorized $1.2 billion in funding Executive director for 30 depression centers national- ly over the next 10 years, the U.S. University of Michigan Comprehensive Depression Department of Health and Human Ser- Center vices did not fund the program. Founding chairman “It is not promising that it will be funded in the near future,” Gre- Weekend investment. Lifelong returns. National Network of Depression Centers den said. “We will continue our pursuit of federal support but in Ann Arbor the meantime will look for other A pioneer in the creation of a na- funding sources to start our prima- tional network of academic depres- ry care projects on a smaller sion centers in 2007, John Greden, scale.” M.D., executive director of the Uni- As the nation’s second most versity of Michigan Comprehensive costly chronic disease, depression Depression Center, afflicts one in five always has led by people in Michi- example. We have done gan, Greden said. In 2001, Gre- “ In Michigan, 1,000 den, a psychia- well, but we have people commit trist, persuaded suicide each year. UM to fund the much more to do. Most suicide is at- depression cen- ” tributable to deter. He also is the John Greden, pression, he said. founding chair- UM Depression Center Over the past man of the Nation- several years, al Network of De- UM’s depression pression Centers, which includes 21 center, which treats 50,000 people It’s closer than you think other academic depression cen- annually, has been developing ters. strategies to work with primary Just 19 months to an Executive-style Learn more about our Troy or In 2009, Greden wrote a white care providers to help their pa- East Lansing options at an paper that pointed out serious tients deal with depression or Weekend MBA in East Lansing or Troy bipolar disease, Greden said. upcoming information event: gaps in psychiatric care. That led to bipartisan support in early 2010 Under the original plan, Greden No other MBA offers a comprehensive, team-based Sat Oct. 8 Troy for a federal initiative to fund de- said, UM would have created an program that truly ﬁts your life. outreach strategy to develop Tue Oct. 11 Novi pression centers of excellence. Michigan State University’s Weekend MBA is an But Greden said UM will have to provider networks and satellite fa- Sat Nov 19 Troy cilities to train a variety of prima- investment in yourself that offers great returns. scale down its plans to work with Details and registration online at: primary care providers in Michi- ry care providers, including physi- You’ll join a powerful network of high-caliber cians and nurses. broad.msu.edu/mba/weekend/learnmore gan on depression care because professionals in a program that’s intensely $5 million in federal funding ex- “We will start out in Flint and challenging and rewarding. pected this year has been canceled Hillsdale and work with pediatri- cians in northern Michigan using due to the political battle in Wash- Become the high-performing leader you Broad College telemedicine,” he said. ington over the federal budget were meant to be. Weekend MBA Greden is working on two pro- deficit. While the Affordable Care Act See Next Page 20110912-NEWS--0027-NAT-CCI-CD_-- 9/8/2011 4:23 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 27 Health Care Extra

From Previous Page jects that could increase the de- Honorable Mention: Advancements in Health Care pression center’s revenue. One is working with the National Football League Players Association and re- Stem cell pioneer leads Karmanos transplant program, cell bank tired players who need mental health evaluations. The other is Voravit Ratanatharathorn, M.D. When he first arrived in De- and often hears from patients long Detroit,” he said. with the Veterans Administration Ann troit, he worked under Vainutis after their transplants. He’s proud “I think we surprise everyone. Arbor Healthcare System, the U.S. De- Co-director, blood and marrow stem cell transplant program Vaitkevicius, M.D., a 2007 Crain’s of the local leadership in cancer There’s something good to talk partment of Defense and the Michi- Health Care Hero. treatment. about.” gan National Guard for returning Director, J.P. McCarthy Cord Stem Cell Bank Ratanatharathorn believed “People don’t want to talk about — Michelle Muñoz veterans from Iraq and that stem cell transplantation Afghanistan. Barbara Ann Karamanos Cancer Institute would be vital to helping Kara- “We have Eric Hipple, the re- Professor of medicine manos, then called the Michigan tired Detroit Lions quarterback, Cancer Foundation, become a working with us with the NFL Wayne State University School of Medicine world-class cancer institution. In players association and with the Detroit 1976, he traveled to Seattle to military,” Greden said. learn about the procedure. Four When he came to the U.S. from So far, the center has evaluated years later, he performed the Thailand in 1971 at the age of 24, five former NFL players, he said. first stem cell transplant Voravit “Michigan has 10,000 National in the state. Ratanatharathorn, Guard veterans, many with multi- In the first year of the M.D., had no idea that it ple deployments. There is a real stem cell transplant pro- would be a permanent need for coordinated mental gram, there were 10 move. health care.” transplants performed. Now he’s 64 and head- Greden also is preparing a pro- Now there are over 280 ing up the longest-run- annual transplants at posal to celebrate the center’s 10th ning stem cell trans- Karmanos. anniversary starting in Novem- plant program in the The J.P. McCarthy ber. A number of special events state at the Barbara Ann will be planned over the next year, Cord Stem Cell Bank is Karmanos Cancer Institute Ratanatharathorn he said. in Detroit. the first public cord In its 10 years, the center has Ratanatharathorn, M.D., is co- blood bank in the state. raised $47 million in development director of the blood and marrow Ratanatharathorn helped to get funds. Research funding has dou- stem cell transplant program the bank accreditation with The bled over the past six years to with Joseph Uberti and director Foundation for the Accreditation of $40 million for the 22-center net- of the J.P. McCarthy Cord Stem Cellular Therapy. It is one of just work, he said. Cell Bank at Karmanos. He is nine cord blood banks in the “We have done well, but we have also a professor of medicine at country with the accreditation. much more to do,” Greden said. Wayne State University’s School of Ratanatharathorn has treated — Jay Greene Medicine. patients from far-flung places

SERIES 2

HEALTH CARE TRANSFORMATION An Educational Series on Optimizing Health Care Value

Breaking the cycle has also steadily decreased. Patients It not only lowers costs for everyone, are now routed to their first follow-up it provides better care and a better of repeated hospital stays. doctor’s appointment within five days quality of life for our patients. Every health care system has them— action. We found that the “handoff” of leaving the hospital. To ensure that After all, our Passion for Healing patients who are hospitalized again from inpatient to outpatient care needed this happens, we make phone calls is really about a passion for health. and again for a chronic condition that to be strengthened. Outpatients were to the patient and to the doctor’s office becomes an acute episode every few missing their first doctor appointments to schedule that all-important first visit, months. After hospitalization, they are and were not getting the follow up care and we help remove any barriers to happy to be home, they feel better and necessary for their long-term health. keeping the appointment. If a patient too often don’t arrange for the follow We developed an aggressive program doesn’t have a physician, we find the Read the full Health Care up care they need to maintain their to help patients discharged with a primary care doctor or specialist they Transformation Series here. health. Before you know it, they could chronic condition take that next step need and make the appointment. end up back in the hospital, or in for their continued health maintenance. Afterwards, we call again to make the emergency room. sure the appointment was kept. facebook.com/StJohnProvidence Today, we have reduced the follow-up With chronically ill patients accounting failure rate from more than 28 percent In the era of health care reform, twitter.com/stjohnprov for 75% of health care costs, St. John to 19 percent, and the number continues coordinating a patient’s care from youtube.com/stjohnprovidence Providence decided it was time to take to decrease. The number of readmissions one step to the next is our mandate.

PATRICIA A. MARYLAND, Dr.PH Dr. Maryland would be happy to hear your thoughts and questions President and CEO of St. John Providence Health System about health care reform. Write her at [email protected]. and Ministry Market Leader, Ascension Health Michigan 20110912-NEWS--0028-NAT-CCI-CD_-- 9/8/2011 4:22 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS September 12, 2011 Health Care Extra Winner: Outstanding Physician Achievement

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Steven Bolton, M.D. to volunteer. General surgeon “It is somewhat disappointing,” he said. “Most of my colleagues are St. Joseph Mercy Oakland not as interested in helping out the Founder poor. I try not to overburden the Mercy Place Clinic ones who volunteer. But the doc- Pontiac tors change once they see patients Twenty years ago, Steven who are so appreciative for their Bolton, M.D. a general surgeon at help.” St. Joseph Mercy Oakland in Pontiac, Services provided to adult pa- opened Mercy Place Clinic to offer tients include wellness exams and free health care services to the physicals, health screening, dis- uninsured in Oakland County. ease prevention, pregnancy test- “My practice had settled in pretty ing, surgical evaluation services, well, and I wanted to give back and pharmacy, ophthalmology and help the poor and indigent,” said health care management for Bolton, 67, the clinic’s founder and chronic diseases. medical director. “I started with a “We see a tremendous amount of nurse and myself and we just got diabetes and hypertension,” busier and busier. We got running Bolton said. water and paper towels, and I re- The clinic, at 55 Clinton St., is cruited other doctors (now eight).” open 8 a.m.-4:30 p.m. Monday-Fri- With financial support from St. day It also will be open 8 a.m.-noon Joseph Mercy Oakland for its some Saturdays this fall. $524,000 annual budget, Mercy Bolton said he expects to be very Clinic serves about 200 to 300 pa- busy until 2014, when health care tients each month. Later this year, reform expands Medicaid and pri- the 2,700-square-foot clinic is ex- vate insurance coverage. pected to double the number of pa- “I would like to see Mercy Place tients it treats in its five examina- be put out of business,” he said. tion rooms. “Health care reform will help. In “The last three to six months we the meantime, people carry their are seeing a lot more people. It is Medicaid cards into the office and the economy, and people realize have to spend down $1,000 first. We we are here,” said Bolton, who will get busier and busier” until practices two half-days each week the economy improves and the and spends as much time as he can health care reform bill covers on clinical administration tasks. more of the uninsured in 2014. With eight volunteer physi- For more information, call (248) cians, a full-time medical assis- 333-0840 or visit www.stjoes tant, nurse practitioner and secre- oakland.org and click on commu- tary, Bolton said it is somewhat nity benefit and then Mercy Place. difficult to find enough physicians — Jay Greene 20110912-NEWS--0029-NAT-CCI-CD_-- 9/8/2011 4:21 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 29 Health Care Extra Honorable Mention: Honorable Mention: Outstanding Physician Achievement Outstanding Physician Achievement Oncology center founder goes outside the loop on treatment Farid Fata, M.D., F.A.C.P. dent of Michigan years of treating cancer patients, tients outside the practice join the President Hematology Oncol- medicine is only one part of the on- program. ogy P.C. in cology process,” he said. “Cancer Fata and the two other doctors of Michigan Hematology Oncology PC Beaumont doctor Rochester Hills, patients are very distressed by the Michigan Hematology Oncology PC Rochester Hills began the Swan diagnoses and the nature of the see 400 patients a week. Within six Half of all men and one-third of all for Life Cancer treatment. They need to go outside years, the practice has grown to focuses on safety, women in the United States will de- Foundation in the loop of just treatment with four offices: Clarkston, Lapeer, velop cancer during their lifetimes, 2009 to provide chemotherapy.” Bloomfield Hills and the Karmanos- according to the American Cancer So- wellness pro- The foundation provides 10 spe- Crittenton Cancer Center in communication ciety. grams and free cialists for more than 300 members, Rochester. Of those affected, roughly one in educational Fata including oncology social workers, “We started the practice with no four men and one in five women workshops and support services to nutritionists, an oncology massage patients, and now we have patients Sam Flanders, M.D. will succumb to the disease. cancer patients in Oakland and therapist and an acupuncturist. that come from all over the state,” Chief quality and safety officer, Farid Fata, M.D., seeks to change Lapeer counties. Fata said the foundation has be- Fata said. interim executive vice president of that. Fata, the founder and presi- “It became clear to us in the past come so popular that cancer pa- — Ellen Mitchell operations Beaumont Hospitals Royal Oak Sam Flanders, M.D., arrived in Royal Oak in 2008 and was drawn to Michigan for one reason — to work for a health system he ad- mired. “It was really a chance to work at Beau- ENVISIONARIES WANTED mont, which I think is an ex- cellent leading health system,” FOUR YEARS AGO, HENRY FORD HEALTH SYSTEM HAD A VISION – he said. raise $250 million to transform the way we provide care by expanding Flanders, from the Chica- our facilities and enhancing our clinical programs. go area, earned a bachelor’s de- The commitment and generosity of our 23,000 employees and thousands Teams gree in comput- “ er science from of loyal friends have resulted in more than $176 million being raised to all around the University of date – including nearly $15 million donated by Henry Ford physicians and Michigan. He the organ- came to Beau- employees. By investing in the future of Henry Ford, these ENVISIONARIES mont Hospitals fuel our progress. ization after building a career at Clari- are seeing an Health Part- And, we are just getting started. With the help of ENVISIONARIES like you, ners, now Indi- we can realize the rest of our $250 million goal. Envision what can be done some very ana University Health, that with your support. Envision a life saved because of you. exciting spanned a results. decade. ” Now that he is with Beau- Learn more about how you Sam Flanders, mont, Flanders Beaumont can become an ENVISIONARY is focused on ef- Hospitals ficiency and at henryford.com/giving or call safety as the chief quality and safety officer. He is also the interim ex- (313) 876-1031. ecutive vice president of operations. One of the steps Flanders has taken is implementing the Univer- sity Health Consortium’s bench- marking system. Using core quality measures such as mortality and patient length of stay, Beaumont can see how it stacks up against other hospitals around the country. Among Beaumont’s accolades: Thomson Reuters’ 2011 Top 100 Hos- pitals, U.S. News and World Report’s Best Hospitals and Crain’s 2011 Cool Places to Work. His favorite program that he in- stalled at Beaumont since his arrival is the Toyota Production Sys- tem. It is a quality improvement method of communication in the hospital system. Flanders said the system is an alternative to sitting in meetings ENVISIONARIES Bob Riney, president to discuss problem solving that in- and COO, Henry Ford Health System, and volves hands-on observation. Cheryl Larry-Osman, Perinatal Clinical “It involves management work- Nurse Specialist, Henry Ford Hospital. ing directly with a frontline staff,” Flanders said. “Teams all around the organization are seeing some very exciting results.” — Michelle Muñoz 20110912-NEWS--0030-NAT-CCI-CD_-- 9/8/2011 4:14 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS September 12, 2011 Health Care Extra Winner: Trustee

Robert Naftaly is chairman of the trust that provides health care benefits to 875,000 UAW retirees. “We started with a blank piece of paper and first had to develop a process,” he said of taking on the position in 2008. GLENN TRIEST Executive’s experience boosts benefits trust Robert Naftaly Chairman Bob Naftaly UAW Retiree Medical Benefit Trust “ Detroit consistently calls Robert Naftaly had a long career in health care as CEO of Blue Care things as he sees Network, CFO of Blue Cross Blue Shield of Michigan and as an inde- them. He somehow Our candidates have specific training. pendent CPA before retiring in Have a specific need? 2001. always finds a But in 2008, Naftaly, 73, was chosen by former UAW President Ron common ground. Gettelfinger to be an independent ” chairman on the newly formed 11- Bob King, UAW member board of the UAW Retiree Medical Benefit Trust. The board, Early on, the board made a lot of which includes six independent initial decisions, Naftaly said. But trustees and five UAW appointees, as staff was added, including Park- voted Naftaly chairman. er, the board began to delegate au- The trust is responsible for pro- thority and “interfaced” with staff viding health care benefits for or independent contractors, he said. 875,000 UAW retirees and their de- “We had a successful launch (in pendents of Ford Motor Co., General January 2010) and we are provid- Motors Co. and Chrysler Group LLC. ing the care. The board should feel During a 12-month period, a Naf- proud of what we have done. I hope taly-led board helped to hire top the members feel the same way,” executives of the trust, including Naftaly said. Francine Parker as executive di- UAW President Bob King said rector, Mary Beth Kuderik as CFO Naftaly’s experience in health care and Eric Henry as chief invest- and in the needs of retirees led to ment officer. the successful launch of the trust. “My best decision was to hire “Bob’s ongoing leadership is When you have a position to fill, you want someone Fran,” he said. Parker was former- critical in guiding the trust as it who’s qualified and ready to hit the ground running. ly the CEO of Health Alliance Plan of provides retiree health care coverage for its members,” King said in Baker College’s HireQualified® can help. Our candidates Michigan. With an annual budget of nearly a statement to Crain’s. are highly trained in very specific areas by instructors $5 billion, the board had to create “Bob Naftaly consistently calls who are working professionals. They know what’s from scratch a system by which things as he sees them. He some- needed in their industries and teach practical experience the trust could govern, manage how always finds a common over theory. The service is free—the result is just the and invest three separate trusts ground. These are qualities that person you are looking for. with assets of more than $50 bil- make him a great chair for the lion, Naftaly said. trust.” To learn more about how we can help you find the best “We started with a blank piece Naftaly also serves on a variety candidate for your needs, or to schedule a meeting at of paper and first had to develop a of boards, such as Meadowbrook In- your place of business, visit HireQualified.com. Free recruiting services from process,” he said. “The first thing surance Group, Sun Communities Inc., America’s leading career college. we did was set up three commit- Talmer Bancorp Inc., and Metropoli- tees: audit, investment and opera- tan Realty Corp. LLC. T6376HQ tions.” — Jay Greene 20110912-NEWS--0031-NAT-CCI-CD_-- 9/8/2011 4:12 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 31 Focus: Health Care Honorable Mention: Trustee Seeking cures for adult bipolar disorder Waltraud “Wally” Prechter 1,500 genetic der after her husband, Heinz President and founder samples from Prechter, former chairman and those with bipo- CEO of ASC Inc., committed suicide Heinz C. Prechter Bipolar Research Fund at the University of lar disorder. UM after battling bipolar disorder for Michigan Comprehensive is collaborating most of his adult life. Depression Center with Johns Hop- The illness affects more than 5.7 Ann Arbor kins University in million adult Americans, accord- Baltimore, Stan- ing to the fund’s website, and Wal- Adults with bipolar disorder ford University in ly Prechter has helped raise more suffer from chemical imbalances Palo Alto, Calif., than $10 million from private do- in the brain marked by significant Prechter Cornell University nations for the fund, which have changes in mood, thought, energy in Ithica, N.Y., been leveraged to obtain more and behavior. Their moods can al- and Pennsylvania State University in than $10 million from federal agen- ternate between mania and depres- State College, Pa., to study the DNA cies for ongoing projects. sion, lasting for hours or months. samples. The samples are stored in Prechter also sits on the board But only 40 percent of those suf- a genetic repository, and Prechter for the American Foundation for Sui- fering from bipolar disorder can said they are compared to genetic cide Prevention, the advisory board be helped with medication or psy- samples from those who do not have for the National Depression Center, chotherapy. bipolar disorder to determine how and the behavioral health Waltraud “Wally” Prechter, to recognize the disease at a cellular board for Henry Ford Health Sys- president and founder of the Heinz level and how the disease works. tem. She also is working on a docu- C. Prechter Bipolar Research Fund at “There’s very little research out mentary on bipolar disorder and the University of Michigan Compre- there, and we need to decipher the an exhibit on depression at the De- hensive Depression Center in Ann genetics of people who have the ill- troit Science Center. Arbor helped begin a study that ness to understand how it’s caused “My life was pushed in this di- follows more than 700 participants and how to cure it,” Prechter said. rection, and I believe it needs to be over 10 years to better understand “It’s a tremendously insidious dis- done,” she said. “We’re not done, the illness over time. Prechter ease, deadly in nature.” but we’re very hopeful and we’re Experience the difference. chairs the fund’s advisory board. Prechter began the fund in 2001 on the right track.” The center also has collected to help find cures for bipolar disor- — Ellen Mitchell Now offering 1/4 share partnership opportunities in the following aircraft. GULFSTREAM III, pictured • HAWKER 800

Winner: Allied Health Strive helps injured adjust to new life Stella Husch President, director Strive RTS Inc., Strive Inc. Director Michigan Victory Games Clarkston Stella Husch wants to be the final piece of the recovery puzzle for those who have suffered cata- strophic injuries. After working for the Communi- ty Connection program at Beau- www.skywayavjets.com mont Hospital for nearly three Call Geoff Sherman today, 1.248.568.0979 years, Husch decided to start Strive Recreational Therapy Services Inc. and the nonprofit Strive Inc. in 2003. When she started, Husch said she had just one client. Her client roster has increased by more than 100 percent each year; she’s had Exceptional Leadership. 300 patients already this year. JOHN SOBCZAK The two Strive entities differ, Stella Husch meets with client Rafael Ortiz at Zumba Mexican Grille in but both offer the same recreation- Birmingham. She says therapy includes helping people get back into the Delivered. al therapy methods. Patients to community and doing the things they enjoy. Strive RTS have individual therapy sessions covered through a nity, Husch said. use a wheelchair, we teach you third party. Strive’s nonprofit enti- Her background includes a how to golf using a wheelchair.” ty works with patients who do not Master of Science degree in public Husch noticed that many of her have insurance or means to pay administration and certifications patients flew to Florida for the for services. Husch said the non- as a therapeutic recreation spe- winter months and missed out on Michigan’s profit does group outings for any- cialist, park and recreation pro- therapy. She decided to bring Premier one with disabilities, not just those fessional, and brain injury spe- Strive to them by starting Strive TS rehabilitating after injuries. cialist. in Florida, which sends therapists Retained Husch got involved in recre- Husch and her staff help pa- to patients’ homes. ational therapy before she started tients reintegrate the activities Husch said the past six months Executive Strive and even before joining they enjoyed before their injuries. has been spent spreading the word Beaumont. In 1998, she began “We saw a great need. … Once on recreational therapy. Nearly Search Firm working for the Michigan Victory people are injured, they get home Games, designed for athletes with and (physical therapy) teaches everyone who has heard about it, disabilities. She took over as direc- them to walk and (occupational though, has agreed that it is a vital tor of the games in 2007. therapy) focuses on cooking and piece in the recovery process. The goal of the Strive services how to get back to daily life. But no “You can go out there and do the

is to “bridge the gap” between one focuses on connecting you things that make you happy and LLC what physical therapy and occu- with the world you used to enjoy,” make you successful,” Husch said. pational therapy patients learn in Husch said. “We kind of put that drive into International Executive Search the hospital and what they need “If you golfed everyday and now people.” Tel: +1.248.645.1551 • www.huntergroup.com once they are back in the commu- all of sudden you are injured and — Michelle Muñoz 20110912-NEWS--0032-NAT-CCI-CD_-- 9/8/2011 4:11 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS September 12, 2011 Health Care Extra Honorable Mention: Allied Health A love of fresh food produces a career in clinical nutrition at St. Joseph Mercy Lisa McDowell the extreme number of patients McDowell said that awareness Registered dietitian and certified with profound obesity that are of the benefits of proper nutrition “Your operation is standing head and shoulders above all operators in nutrition support dietitian, malnourished,” she said. “What is becoming more pervasive. Ac- the Detroit area” – Aviation Analyst for Fortune 500 Companies manager of clinical nutrition, we try to do is educate our patients cording to the Centers for Disease pharmacy department on what a proper diet Control and Experience, Safety and Service you can Count on. St. Joseph Mercy Health System looks like.” Prevention, Ann Arbor In light of this real- about one Locally Based. Serving All Detroit Area Airports Since 2003 ization, Mc- We have the third of Throughout her life, Lisa Mc- Dowell and “ adults in the Dowell has been a gardener. Her David Ray- opportunity United States parents and grandparents always mond, director are obese. HANTZ AIR had a garden, and McDowell said ... to talk of planning Of all the fresh food was always at the fore- and design at patients ad- ͹͵ͶǦͺͻ͵Ǧ͸͸ͳͳ front. about what a Ǥ Ǥ She turned a love of fresh pro- St. Joseph, mitted to St. duce and healthy eating habits into came up with healthy plate Joseph, a career. McDowell is the manager the idea to con- about 40 per- of clinical nutrition in the pharma- vert 15 acres of looks like. cent will cy department at St. Joseph Mercy St. Joseph’s ” meet with a Crain’s 2012 Book of Lists Health System in Ann Arbor. Mc- land into a farm. Lisa McDowell, St. Joseph Mercy nutrition Dowell also consults independently The food grown at consultant with athletes from the Detroit Lions, the farm, such as broc- because they goes statewide! the Detroit Red Wings and Olympic coli, lettuce and peppers, is used to fail nutrition screening when ad- swimmers and skiers about sports feed patients and hospital staff. mitted. McDowell said statistics For exclusive ad placement next to your industry performance enhancement through The first seeds were planted in like this are why nutrition educa- or client lists, contact Marla Wise today at nutrition. McDowell said the obese April 2010. Now McDowell prefers tion is so important. 313-446-6032 or email [email protected] patients at St. Joseph often eat pri- to call the pharmacy department “We have the opportunity while marily boxed meals that do not pro- the “farmacy” department. they are here and a captive audi- AD CLOSE: Oct. 28 • ISSUE DATE: Dec. 26 vide the same nutrients that fresh A semiweekly farmers market ence to talk about what a healthy produce can. in the lobby of the hospital also plate looks like,” she said. “What we have noticed here is was started this year. — Michelle Muñoz DBpageAD.qxp 8/1/2011 3:51 PM Page 1

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Page 34 CRAIN’S DETROIT BUSINESS September 12, 2011 Your Bank’s Health Care Extra Honorable Mention: Allied Health Not Lending? Clinic director committed to children’s care Jonnie Hamilton vides care for people from birth to “They know they can call me Director 26 years old who have no insur- and I will provide anything for ance or are underinsured. More them that I can within reason.” Napoleon B. Jordan Center for Health Care than 700 children are enrolled at She is currently mentoring 10 at Marcus Garvey Academy the southeast Detroit school, locat- students and has mentored more Detroit ed in one of the poorest neighbor- than 500 in her nursing career. hoods in the city. Hamilton also began a traveling An estimated 8 million children “Caring for children has always immunization clinic in 1987 while are uninsured in the U.S., risking been my passion,” said Hamilton, president of the Detroit Black Nurses disease and en- a pediatric nurse practitioner for Association. The volunteer-run dangering a 34 years, who works at St. John clinic gives more than 300 free im- healthy adult Providence Community Health. munizations a year to children at life because of a Hamilton also mentors high shelters, preschools and day care lack of access to school and college students, partic- or Head Start centers, and also of- proper care. ularly those looking for a career in fers blood pressure and glucose Jonnie Hamil- nursing or health care, from 40 screening. ours are ton is working schools in the Detroit Public Schools “The Detroit immunization rate to change that. system and charter schools. was so low and we thought this . The director “I try to bond with the students, was a way to bring that number Call for a free consultation. of the Napoleon and I give them information on how up,” she said. “It’s a big help to Hamilton Loan amounts: $1,000,000.00 and above. B. Jordan Center to study, how to take tests or just families and the community, and for Health Care at Marcus Garvey call them every now and then and I’m happy to do it.” s Investment Real Estate s Equipment Academy in Detroit, Hamilton pro- see how they’re doing,” she said. — Ellen Mitchell s Owner Occupied Real Estate s Turnaround Consulting s Lines of Credit s Loan Modiﬁcations s Accounts Receivable s Bank Workouts Winner: Corporate Achievement in Health Care Wellness programs go on the road 800.509.3552 Robert Levine www.eclipsecapitalgroup.com Director 2207 Orchard Lake Road, Sylvan Lake, MI 48320 Henry Ford Health System Center “Since 1997” for Integrative Wellness Southfield Robert Levine, a brain re- searcher and holistic health practitioner at Henry Ford Health System in Detroit, knew in the mid-1990s from his own experience that chronic pain could be eliminated by using a variety of complemen- Transportation Services tary and alternative medicine treatments, saving patients costly physical therapy, surgery or joint replacement. While he has worked on back pain relief for specific corporate projects, he specializes in all kinds of pain relief. After playing college football GLENN TRIEST and other sports and suffering Robert Levine’s own experience with chronic pain led him to create a program from back and hip pain, Levine ex- that taught wellness and pain relief to corporate employees in group settings. Your Nationwide Provider plored alternative therapies until he found the right combination to of Chauffeured Sedan, alleviate his own pain. Limousine and All he needed to do was prove his theory to others that therapies Group Transportation not used in conventional medicine Mission 24/7! could be successfully used in Are your attorneys We’re Everywhere You Need To Be group settings to reduce or eliminate chronic pain and stress and available 24/7? cut health care costs to payers. While co-director of the Novi- It could happen. -"tDetroit based Henry Ford Center for Integra- The attorneys at tive Medicine, Levine completed a McDonald Hopkins are pilot project in 2007 with about 100 #PTUPOt5BNQB on a mission to provide Chrysler Corp. employees that /F/FX:PSLt$IJDBHP helped 55 percent of participants exceptional responsiveness eliminate lower back pain. to every client. -B-BT7FHBTt0SMBOEPT That successful project led Attorneys on a Mission® Levine to expand his alternative BOBOZXIFSFDPBTUUPDPBTUZX wellness program as director of Your mission is our mission. We never lose sight of it. Southfield-based Henry Ford Center for Integrative Wellness, which was Just One Call created in 2008 to conduct research and group wellness programs. ® 800-456-1701 From 2008 to 2010, Levine led A business advisory and advocacy law firm successful corporate group alter- 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 www.metrocars.com native wellness programs with Carl J. Grassi Stephen M. Gross hundreds of employees from Dow President Detroit Managing Member Chemical Co. in Midland and Henry Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach Ford Health System. www.mcdonaldhopkins.com See Levine, Page 37 DBpageAD.qxp 8/1/2011 10:21 AM Page 1

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SPEAKERS Sandy Baruah, Peter Brown, Neil De Koker, Micki Maynard Doug Smith, president, publisher and president and CEO, senior editor, senior vice president, Detroit Regional editorial director, Original Equipment Changing Gears strategic partnerships, Chamber Automotive News Suppliers Association Michigan Economic Development Corporation

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To register, please visit www.regonline.com/2011septss Brian Smith, president and CEO, Registration, Breakfast Registration: $35 each ISM of Southeast Michigan Networking: 7:30 a.m. Groups of 10 or more: $30 each* Panel presenters: 8:15 a.m. At the door: $40 each Roundtables: 9:30 a.m. *For group rates please call 313.446.0300. Adjourn: 11:30 a.m.

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September 12, 2011 CRAIN’S DETROIT BUSINESS Page 37 Health Care Extra Honorable Mention: Corporate Achievement in Health Care CEO makes sure Crittenton maintains its independence, services Lynn Orfgen undergone significant changes un- “There’s a huge need in our care tower, which will consist of been designated by robotics com- President and CEO der Orfgen’s leadership, adding country, in our state, for physi- six stories and 87 new rooms and is pany Intuitive Surgical Inc. as a new services in- cians, and we’re looking to fix expected to be completed in 2013. training center for the technolo- Crittenton Hospital Medical Center cluding cardiol- that,” Orfgen said. In the past 15 months, Critten- gy, one of the few training sites in Rochester ogists from the In the past four months, Critten- ton has been using robotics for gy- the country. Although the changing face of University of ton’s chest pain center became ac- necological oncology and has — Ellen Mitchell health care has caused many hospi- Michigan and a credited, and its primary stroke tals to consolidate into larger residency pro- care center received a gold seal of health systems, the CEO and presi- gram through approval from the Joint Commission, dent of Crittenton Hospital Medical the Wayne State an independent, nonprofit organi- Center, Lynn Orfgen, has made sure University School zation that evaluates and accredits his hospital remains independent. of Medicine. health care organizations. He works to maintain that inde- In 2007, the “I think there have been a lot of pendence without sacrificing ser- Orfgen hospital opened folks that have been saved as a re- vices — and while creating partner- a 39-student internal medicine res- sult of us being able to provide ships with other health systems. idency program in conjunction these services,” Orfgen said. The Rochester-based hospital, with Wayne State. Crittenton The hospital also is in the early which serves many in Oakland, started with 13 students and added stages of constructing a $65 mil- Macomb and Lapeer counties, has 13 every year over three years. lion, 175,000-square-foot patient Levine: Taking wellness on the road ■ From Page 34 Earlier this year, the Center for medications by the end of their ter,” he said. Integrative Wellness in Southfield treatment. For example, Levine said, an un- received $400,000 from Blue Cross In the fall, the center will begin named company spent $1.25 mil- Blue Shield of a marketing campaign to sell the lion one year in physical therapy Michigan for wellness program to companies costs for its employees. another pilot that provide health care coverage “Because those employees need The project to pro- to their employees. less drugs, see the doctor less, “ vide group “We have a pretty good track avoid failed physical therapy, we program wellness ser- record, and there is demand out have inferential cost savings that saves vices to 600 there because the program saves can be achieved,” Levine said. members who money and helps people get bet- — Jay Greene money and have pain and stress-related helps ailments. “The reason people get we developed the group pro- better. grams is so we ” could treat Robert Levine, large numbers Henry Ford Health of patients,” System Center said Levine. for Integrative “We have You Deserve Unbiased Tenant Representation Wellness proven we can do this just as effectively and efficiently in group settings as one at a time.” Using alternative medicine therapies, including guided relaxation and somatic movement therapy, patients attend two-hour sessions each week for 10 weeks, Levine said. The classes range from 50 to 200 people. Both guided relaxation and somatic movement therapy use a combination of deep breathing, music, aromatherapy and stretch- ing exercises to relax muscle groups. “The program includes lots of accelerated learning techniques that people learn in a theater setting,” Levine said. “It is not a ‘do me’ approach, it is a ‘me do’ approach.” Real Estate Strategy Levine said patients are taught to relax and breathe properly to re- Tenant Representation duce stress. “Stress and pain are linked. Buyer Representation Most people who have pain also have stress, and intervention can Project Feasibility help to relieve stress and that can help with the pain,” he said. Whether leasing, buying or building, users of space have the Construction Oversight In the Dow project, the 224 par- upper hand in today’s real estate market. Let our experienced ticipants reported that 38 percent Incentives of all chronic pain conditions, in- team of real estate professionals uncover every option. cluding in the back, neck, hip, feet Lease Administration and shoulder, were eliminated. Some 60 percent of patients said pmcresa.com 248.223.3500 they reduced or eliminated pain 20110912-NEWS--0038-NAT-CCI-CD_-- 9/9/2011 11:18 AM Page 1

Page 38 CRAIN’S DETROIT BUSINESS September 12, 2011

CALENDAR WEDNESDAY Detroit Economic Club. 11:30 a.m.-1:30 DETROIT DESIGN FESTIVAL p.m. Sept. 20. With Jim Young, chair- 800-292-3831 SEPT. 14 man, president and CEO, Union Pacif- TO HIT 65 VENUES IN THE CITY ic Corp. Dearborn Inn Marriott. $45 indiantrails.com Detroit Economic Club. 11:30 a.m.-1:30 DEC members, $55 guests, $75 p.m. With James Mulva, chairman and The first Detroit Design Festival is nonmembers. Contact: (313) 963-8547; CEO, ConocoPhillips. Detroit Mar- scheduled for Sept. 21-28 in website: www.econclub.org. riott Renaissance Center. $45 DEC various locations in Detroit. Some members, $55 guests, $75 nonmem- events include: B2B Social Marketing: A Deep Dive for bers. Contact: (313) 963-8547; website: Ⅲ Three Design Stars in Three Acts: Business Owners and Marketers. 11:30 www.econclub.org. What’s Your Latest Obsession? a.m.-1 p.m. Sept. 21. Automation Al- ONE HU Sept. 22, 6 p.m., The Fillmore G ND ley. With Brenda Meller, marketing IN R T E A D Brushstrokes of Detroit: Rich Silverstein, Keith R manager, Walsh College; and Lauren Y B E Anderson and Christin Haas from E A Knowledge. 5-9 L R Ziskie, president, Social Lift Inc. Au-

E S Goodby, Silverstein and Partners C p.m. Executive tomation Alley, Troy. $20 members, 100 will discuss their latest interests in Women Interna- $40 nonmembers, add $10 after Sept. design. tional of Detroit- 19. Contact: (800) 427-5100; email: Windsor, Com- Ⅲ Art Battle, Sept. 28, 3-8 p.m., [email protected]; website: puware Corp. The Alley Project Gallery: Three www.automationalley.com. With Terry Bar- rounds of competition, painting, clay, CEO, Info- graffiti and a live musical rum. Compuware, performance. Facility Management Education Semi- Detroit. $65. Con- nar. 4-8:30 p.m. Sept. 22. Southeast Ⅲ D’s Creatures, Sept. 24, 6 p.m., tact: (734) 462- Dalgleish Cadillac Building: A Michigan Chapter of the International Barclay 8557; email: collection of sculptures Facilities Management Association. [email protected]; website: With Suzanne Zabowski, national ac- representing aspects of Detroit www.ewidetroitwindsor.org. counts manager, Structure Tec; Dayne life, history and culture. Haight, director of business, RTI Ⅲ SHOUT: Student Showcase, Sept. Straylight; John Garcia, president, 27, 5-7 p.m., Henry Ford Academy BHHG Consulting; others. Fanuc Ro- THURSDAY School for Creative Studies: High botics, Rochester Hills. $20 members, school students from the graphic SEPT. 15 $30 nonmembers, $10 college students Comfort and design SHOUT program will display with ID. Contact: (810) 229-8973; email: Business Gardening Summit. 8:30 a.m.- work. [email protected]; website: noon. Macomb County Chamber of Ⅲ Center for Abandoned www.ifmasemichigan.org. Commerce. With Marcie Brogan, Letterhead, Sept. 24, noon-6 p.m., t$IBSUFST founder and CEO, Brogan and Part- Sept. 25, 7-9 p.m. Franklin Luxury Impact Awards Luncheon. 11 a.m.-1:30 ners, others. Mac and Ray’s, Harrison Furniture: Documents on defunct p.m. Sept. 22. Commercial Real Estate Township. $30. Contact: (586) 493-7600; letterhead will be on display. t5PVST Women-Detroit. Honoring one new email: grace@macombcounty Most events are free; those with real estate development, one redevel- chamber.com; website: www. t4IVUUMFT an admission fee have that posted opment and one special impact project macombcountychamber.com 00 on the event’s website, (new or redevelopment) that signifi- t$POWFOUJPO4FSWJDFT SAVE $100 OFF www.detroitdesignfestival.com. cantly improved their surrounding Deal Structures: Term Sheets, Alterna- Major sponsors include Quicken communities. Oakland Hills Country t$PSQPSBUF&WFOUT tive Deal Structures and Non-nego- Loans Inc., Fathead LLC and Left Club, Bloomfield Hills. $65 or $600 for tiable Terms. 5-8 p.m. New Enterprise Bank Creative LLC. a table of eight. Contact: (248) 427-8400; Contact Indian Trails for details. Must use this Forum, others. With Ganesh “Ananth” t4DIFEVMFE4FSWJDF promotional code at time of booking: 2011CDB-SEP The festival kickoff party will be at website: www.crewdetroit.org. Ananthasubramaniam, director, New Center Park Sept. 21, 6-9 p.m. board, DTE Energy Ventures; others. Spark Central, Ann Arbor. NEF mem- Detroit Economic Club. 11:30 a.m.-1:30 bers free, $20 nonmembers, $5 students. Contact: (734) 761-9317; p.m. Sept. 26. With U.S. Reps. Sander website: www.annarborusa.org. Levin, Fred Upton, and Candice Miller. Westin Book Cadillac, Detroit. $45 DEC members, $55 guests, $75 nonmembers. Contact: (313) 963-8547; COMING EVENTS website: www.econclub.org. Homeland to Hometown: The Next 10 Years. 8 a.m.-7 p.m. Sept. 19; 7 a.m.-7 Extreme Change 2011: Remaking De- p.m. Sept. 20; 7 a.m.-1 p.m. Sept. 21 troit’s Midtown. 11:30 a.m.-1:30 p.m. National Defense Industrial Associa- Sept. 28. Inforum. With Michael Dug- tion Michigan Chapter. With Col. Don gan, president and CEO, Detroit Med- Potchman, president, NDIAMC; Maj. ical Center; Allan Gilmour, president, Gen. Kurt Stein, commanding general, Wayne State University; and Nancy U.S. Army TACOM Life Cycle Man- Schlichting, CEO, Henry Ford Health agement Command; others. Troy Mar- System. MGM Grand Detroit. $55 riott. $350. Contact: (248) 613-1102; members, $65 nonmembers, $480 table email: [email protected]; of eight. Contact: (877) 633-3500; website: www.ndia-mich.org. website: www.inforummichigan.org.

29 cocktail parties. 29 homes. All in or around downtown Detroit. Then meet up at the party of the year at the Roostertail on Detroit’s riverfront. You’ll meet business owners, executives, professionals, community and municipal leaders. $60 each: includes pre-party, afterglow and one-year subscription to Crain’s Detroit Business To register, please visit www.regonline.com/2011houseparty $50 each for groups of 20 plus For group discount, please call 313.446.0300 20110912-NEWS--0039-NAT-CCI-CD_-- 9/9/2011 10:07 AM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 39

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE Schwartz PC, Detroit. WaterhouseCoopers LLP, Detroit. ment manager, Racer Trust, Birming- IN THE SPOTLIGHT Southfield, from Tina Kozak to senior vice president, ham, from chief of the office of legal attorney, Turner MARKETING Franco Public Relations Group, De- Dennis services, Michigan Department of and Turner PC, troit, from vice president. Also, Tina Mannion, Anthony Pratt to Natural Resources, Lansing. Southfield. Benvenuti Sullivan to account manag- former director of fore- president and Michelle Thurber casting, Americ- er, from manager of corporate com- RETAIL COO of the Los Czapski to mem- as, Polk business munications, Chrysler LLC, Auburn Brian Juszak to director of retail mar- Angeles ber, Bodman PLC, unit, R.L. Polk & Hills. Dodgers, has Detroit, from Co., Southfield, keting, Carhartt Inc., Dearborn, from been hired as member, Dicken- from leader of REAL ESTATE marketing planning manager, Kmart president of Turner son Wright PLLC, Czapski auto facts, Price- Patricia Spitzley to deputy redevelop- Corp., Hoffman Estates, Ill. the Detroit Pistons and Palace Sports Mannion & Entertainment Inc. in Auburn Hills. Mannion, 52, replaces Alan Ostfield, who was fired June 30 amid management changes by new owners Tom Gores and his Beverly Hills-based Platinum Equity LLC. He will oversee all Pistons and Palace Sports business operations, including sales, marketing, finance and administration, the team said in a statement. Joe Dumars will continue to oversee all basketball operations of the Pistons. Palace Sports is the umbrella corporation for the Pistons, the 22,076-seat Palace of Auburn Hills and DTE Energy Music Theatre and holder of the contract to manage Meadow Brook Music Festival for Oakland University. Mannion left the Dodgers in October as the team’s president and COO amid an ownership divorce dispute that subsequently has led the team into a financial crisis, bankruptcy and takeover by Major League Baseball. EDUCATION Betty Youngblood to associate vice president for out- Providing working capital reach and executive director of OU-Macomb, Ma- to help GHAFARI reshape skylines comb-Oakland University Incuba- tor, Sterling from the Midwest to the Middle East. Heights, from OU

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Errol Hau to vice president of strategic growth and development, Freedom One Financial Group, Clarkston, from vice president of the financial services division, Market Strategies International, Livonia. Also John Caldwell to chief investment officer from chief investment strategist and managing director of The Marvin I. Danto Engineering Development Center, designed by Ghafari, is located on Wayne State University’s campus in Midtown Detroit. portfolio strategy, McDonald Invest- ments, Cleveland, Ohio. “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 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 Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker LAW dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insuredy May Lose Value y Are Not Bank Guaranteed. Matthew Turner to shareholder, per- ©2011 Bank of America Corporation. ARM1N4G5 sonal injury department, Sommers 20110912-NEWS--0040-NAT-CCI-CD_-- 9/9/2011 11:14 AM Page 1

Page 40 CRAIN’S DETROIT BUSINESS September 12, 2011 Corporate Governance Experience In Your Corner. BUSINESS DIARY ACQUISITIONS vehicle, defense, marine, consumer Cooper-Standard Automotive Inc., and industrial markets, is expanding Novi, a global supplier of systems and ZipLogix, Fraser, a real estate technol- its closure systems operations in ogy company, acquired Realfast Inc., components for the automotive Brazil with the opening of a new plant Frisco, Colo., a real estate forms com- industry, announced plans to in Cordeiropolis. Website: www. pany. establish a manufacturing plant in intevaproducts.com. Craiova, Romania. Website: O2 Investment Partners LLC, Bloom- Volunteers of America Michigan, www.cooperstandard.com. field Hills, a private equity investment group, announced the comple- Southfield, an affiliate of Volunteers of tion of two new add-on acquisitions to America, Alexandria, Va., a nonprofit JOINT VENTURES its portfolio company NH United LLC, provider of affordable housing for se- The Magni Group Inc., Birmingham, New York, N.Y., a technology training niors and disabled people, has com- announced the establishment of Xia- and education business. NH United pleted construction and opened a new men Magni Inc., Xiamen, Fujian acquired New Horizons of Central and 10-unit apartment building in Detroit. Province, China, a joint venture com- Northern New Jersey Inc., Iselin, N.J., Oak Village Independence House of pany of Magni China, Suzhou, China, and United Training Inc., Salem, N.H. Detroit now provides one-bedroom Boltun Corp., Taiwan, and A-Okay In- Taubman Centers Inc., Bloomfield apartments to low-income physically dustries, Taiwan. Xiamen Magni pro- Hills, a real estate investment trust, disabled people in Detroit. Website: vides metal finishing services to and TCBL Consulting Limited, Beijing, www.voami.org. southeast China and to global and do- China, a retail real estate consultan- Henry Ford Health System, Detroit, mestic automotive OEMs in China. cy, announced a definitive agreement opened an outpatient medical center Also, Magni announced the creation whereby Taubman Asia is acquiring a at 8391 Commerce Road, Commerce of Guangzhou Mei Li Technology Co. 90 percent controlling interest in Township. The center will offer adult Ltd., Guangzhou, Guangdong TCBL. The new company will be internal medicine, family medicine, Province, China, a new venture called Taubman TCBL. urgent care, laboratory and radiology. formed from the combined business of Blue Cross Blue Shield of Michigan, Website: www.henryford.com. Magni’s Olier Tech and Shenzhen Detroit, has invested $135 million into Dykema Gossett PLLC, Detroit, Tebolon, a former Magni customer. the acquisition of AmeriHealth Mercy, opened a new office in Charlotte, N.C., Website: www.themagnigroup.com. Philadelphia, Pa., a national Medicaid which becomes the headquarters for health plan co-owned by Indepen- its national financial services regula- MOVES dence Blue Cross, a nonprofit Blues tory and compliance practice. Web- plan also based in Philadelphia. When 118id LLC, a digital marketing data site: www.dykema.com. the transaction is complete, pending services company, moved from 101 W. regulatory review, Blue Cross of Morpace Inc., Farmington Hills, a Big Beaver Road, Suite 1400 to 3331 Mike Wooldridge Michigan will own a 40 percent stake market research company, opened an West Big Beaver Road, Suite 310, in the company and Independence Asia-Pacific office in Shanghai, Chi- Troy. Telephone: (248) 420-9272. Web- will own 60 percent. na. Website: www.morpace.com. site: www.118id.com. CONTRACTS Jervis B. Webb Co., Farmington Hills, a subsidiary of Daifuku Webb Holding Co., Farmington Hills, a provider of material handling systems for industry, announced a contract with South- Contact Mike at [email protected] west Airlines Co., Dallas, Texas, to design, manufacture and install a I Novi I Grand Rapids I Kalamazoo I Grand Haven I Lansing checked baggage inspection system at FULL SERVICE ASSEMBLY Love Field Airport in Dallas. Oshkosh Defense, a subsidiary of Wis- consin-based Oshkosh Corp. that TOOLING SYSTEMS opened a new technical center in War- ren, has been contracted by the U.S. Army Tacom Life Cycle Management Command, Warren, to produce 6,963 CONTINGENT WORKFORCE new vehicles by June 2013 under a new $904 million Family of Medium Tactical Vehicles contract. SERVICES Freedom One Financial Group, Clark- ston, a 401(k) plan record-keeping and administrative service provider, announced that Freedom One Invest- ment Advisors Inc. will provide 401(k) plan advisory services for Controlled Power Co., Troy, a manufacturer of 29401 Stephenson Highway commercial, industrial and medical- grade electrical power systems and Madison Heights, MI 48071 Helm Inc., Highland Park, a provider of branded merchandise, fulfillment 248 548 6010 and e-commerce. www.gonzalez-group.com ForeSee Results Inc., Ann Arbor, a customer experience analytics firm, was chosen by Keystone Solutions, Las Vegas, a digital measurement consulting group, to continuously measure satisfaction for Keystone clients and deliver insights on where to make Work smarter for your business. improvements. CareTech Solutions Inc., Troy, an information-technology and Web products and services provider, was chosen by St. Joseph Hospital Health Center, Syracuse, N.Y., to provide its content-management system, Care- Uncommon Works, as the foundation for the hos- Creative, Conservative Thinking. Remarkable Solutions. pital’s new public website, mobile website and Intranet. Siding World, Detroit, has selected The Berline Group Inc., Bloomfield Hills, We work with our clients and their advisors to: as its advertising agency of record. Identity Marketing & Public Relations, Reduce estate and income tax Enhance fixed income Bingham Farms, added MSX Interna- tional, Warren, Creative Break- yields Solve family and business issues Improve throughs Inc., Troy, and Lighthouse existing life insurance policies. Molding Inc., Sterling Heights, a low pressure molding company, to its client roster. Size, comfort, value and versatility that drives your potential. EXPANSIONS The 2011 Sprinter Van — exclusively at Mercedes Benz of Novi. Visit us today to see the area’s largest Sprinter inventory. EPrize LLC, Pleasant Ridge, an online digital marketing company, opened a Seattle-area office at 411 108th Ave. Mercedes Benz of Novi NE, Suite 1920, Bellevue, Wash. Web- 39500 Grand River Ave. Novi, MI 48375 BIRMINGHAM, MICHIGAN 248.731.9500 site: www.eprize.com. Ph: 248-426-9600 (Sales & Service) WWW.SCHECHTERWEALTH.COM Inteva Products LLC, Troy, a supplier www.mercedesbenzofnovi.com to the automotive, commercial 20110912-NEWS--0041-NAT-CCI-CD_-- 9/9/2011 5:23 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 41 MARKET CAREER MOVES House OKs new PLACE TECHNICAL DELIVERY SERVICES

Local Trucking/Warehousing rules on teen 1 Pallet - Truck Loads “Where You Get Your Buck$ Worth” Same Day - Next Day Canadian Consolidations Storage Trailers Wayne State University is seeking an Associate Vice President, Technology Management. Trailer Parking This individual will serve as the University’s officer responsible for leading and managing the protection www.mrtransportation.com and commercialization of intellectual property for all of Wayne State University ("WSU") and for leading [email protected] and managing WSU’s Technology Management Office (TMO). The position’s responsibilities include the workers’ hours 734-946-7031 implementation of WSU’s goal of achieving high levels of transfer of intellectual property and technologies developed at WSU ("WSU IP") to the broader community to maximize returns to the LANSING — Business- The governor’s mes- University and society as a whole. The position reports to the Vice President for Research. Job Posting es that employ minors sage will be in a written FRANCHISE OPPORTUNITIES #038034. who are in school will Capitol format that will be e- MINIMUM QUALIFICATIONS see altered standards on mailed to lawmakers Existing Big Apple Bagels Franchise Education: Master’s degree Briefings Genessee County Additional Education Information: Minimum of master’s degree or equivalent in business, how many hours they Wednesday morning and life science, engineering or related field. Broad industry knowledge in major sector such can work, under a bill Motivated Seller as life science, energy, and manufacturing is desirable. Knowledge of university/industry posted online, at intellectual property issues is highly desirable. passed last week by the www.michigan.gov/sny- Reduced Price: $68K/OBO state House. The incumbent would be responsible for: der. Priced for Quick Sale 1. Engaging the "engine of free enterprise," through licensing of WSU IP. House Bill 4732, spon- Snyder will hold a 1-800-251-6101 ext. 319 2. Assisting the start-up of new companies. sored by Jim Stamas, R- 3. Advancing the knowledge, understanding, and respect for WSU’s technology morning press confer- management goals and operations by the University community and beyond. Midland, specifies 16- ence at Heart of the City 4. Contributing to fostering an entrepreneurial culture at WSU. and 17-year-olds can 5. Supporting activities that will build connections between WSU and business Health Center in Grand work up to 24 hours a communities of Detroit and the State of Michigan. Rapids, a new federally week during any week Amy Lane Experience: qualified health center 10+ years of experience in a sophisticated technology transfer organization, including school is in session. They Call Call significant personal participation in the leadership and senior management (including at that will provide physical, mental can also work up to an average of the board level) of one or more technology-based start-up businesses. Five years of and dental care to low-income pa- experience in management of licensing personnel, either in industry or in a university eight hours a day, per week. yy setting. 10+ years of experience in managing technology and IP developed in an Current law combines the num- tients. odaoda advanced medical center or institution. ber of hours students are in school t t Resumes will only be accepted at http://jobs.wayne.edu. Wayne State University is a and the amount of hours they can premier institution of higher education offering more than 350 undergraduate and Committee to study inspections, graduate academic programs through 12 schools and colleges to more than 33,000 work into a total 48-hour cap. for a custom advertising students in Metropolitan Detroit. It’s a system that’s been un- permitting processes program • 313.446.6068 WSU is an equal opportunity/affirmative action employer. wieldy for employers as they’ve The Snyder administration is needed to keep track of varying forming another committee to ex- school hours for school-aged em- amine state rules, this time involv- ployees and schedule accordingly ing the state’s inspection and per- to ensure they don’t exceed the 48- mitting processes. hour limit, said Brian DeBano, The state Office of Regulatory REAL ESTATE president and CEO of the Michigan Reinvention is taking applications Restaurant Association. for the 10-15 members who will be ANNOUNCEMENTS APARTMENT BUILDINGS MISCELLANEOUS “Scheduling for restaurateurs on the advisory committee. A ré- was very complicated, to say the sumé and a short purpose state- least,” he said. ment that includes reasons for STOP COMMERCIAL REAL ESTATE DeBano said the bill, which wanting to serve on the committee FORECLOSURE amends the 1978 Michigan youth can be sent to [email protected]. employment standards act, could • All property types Statements should be no longer • Southeast Michigan area Marina for Sale increase the number of hours a 16- than 250 words and are due by • Low interest rates NFTA Boat Harbor -- Buffalo, NY • 30-year amortization or 17-year-old can work during an Sept. 30. 204 acres with a 1,001 slip marina owned average school week. The 1978 law The inspection and permitting IVY PRIVATE CAPITAL Michigan Apartment Management by the Niagara Frontier Transportation 800 N. Old Woodward Avenue Authority (NFTA) which is seeking Requests applies only to people under the Birmingham, MI 48009 advisory committee joins six other Specialists. We deliver results. for Proposals (RFP) for the purchase of this age of 18. advisory rules committees in the Visit www.ivyprivatecapital.com to complete property. The entire RFP (RFP No. 4126) DeBano said the House bill’s im- areas of insurance and finance, en- our quick form today! Call Joseph Brophy for info... can be found on the NFTA’s web site at pact is not limited to restaurants, vironment, workplace safety, oc- 248-430-4858 248-246-7203 NFTA.com . but with the industry employing a cupational licensing, liquor con- AUCTIONS lot of young workers the change in trol and natural resources. OFFICE SPACE law has been a priority. The bill passed the House unan- BANK OWNED INDUSTRIAL PROPERTY Medical Space for Lease -- Troy imously and was referred to the Comings & goings • 2,934 Square Feet Senate Committee on Regulatory AVAILABLE NOW • Large Waiting Room Ⅲ James Barrett, former presi- • Built-In Reception Area Reform. DeBano said he hopes the dent and CEO of the Michigan AUCTIONS • 6 Exam Rooms with Sink & Cabinet measure will be approved this 4,000 to 100,000 sq. ft. • 4 Office Rooms Chamber of Com- ONSITE WITH LIVE WEBCAST • 1 Janitorial Room fall. merce and Also 10,000 & 25,000 sq. ft. • Built-In Kitchen Area founder of Man- Located in the Sunset Plaza Shopping Free Standing Bldgs w/truckwells. Center. Anchored by Kroger, CVS, Snyder to speak on health agement and Mar- #209 #345 #401 Oakland Medical Center, Castleman Eye keting Advisory MANY SELL ABSOLUTE, 1 Mile from Metro Airport Center, Primary EyeCare, Redwood Dental initiatives Wednesday Services LLC, has and many other tenants. REGARDLESS OF PRICE Please contact Martin Zide or Paul Chosid Gov. Rick Snyder next Wednes- been appointed REA CONSTRUCTION (248) 879-5100 day will lay out his vision and ac- to the Michigan 35 COMMERCIAL AND LAND (734) 946-8730 ASSETS in Michigan plus 7,600+/- tion plan for health initiatives, in a Civil Service Com- WATERFRONT PROPERTY message to the Legislature. mission by Gov. SF HOME in Bloomfield Hills Also Heavy Industrial Barrett The legislative message, one of a Rick Snyder. Tuesday, September 20, 2011 Land Available series Snyder is employing to He’ll fill a spot vacated by Andrew Dowagiac, Bale Creek, Plainwell, Grand move forward his agenda, is ex- Abood, who resigned from the four- Rapids Office, Commercial, Industrial & www.reaconstruction.net Former Bank Branch pected to discuss the importance of member commission in late July. Wednesday, September 21, 2011 tackling issues like obesity, smok- Barrett will serve a term expiring Waterfront Property For Sale Lansing, Holly Township, Grand Blanc ing, and high blood pressure. Dec. 31, 2012. Buffalo, NY Industrial, Retail, & Lots Snyder will also touch on a state Ⅲ Karla Garcia, previously leg- Call Us For Personalized 60 acres with approximately 1,580 feet of islative aide to state Rep. Bob Thursday, September 22, 2011 shoreline property and 650,000 square feet health care exchange that is being Port Huron, Detroit Metro, Brighton, Shelby of warehousing/office/manufacturing space Genetski II, R-Saugatuck, has been Service: (313) 446-6068 developed, said press secretary Township, Taylor, etc - 19 Properes - Former owned by the Niagara Frontier Sara Wurfel. The statewide ex- named legislative liaison for the Bank Branches, Industrial, Commercial, Lots, FAX: (313) 446-1757 Transportation Authority (NFTA) which is change will serve individuals and Michigan Department of Community seeking Requests for Proposals (RFP) for Land, & Home in Bloomfield Hills E-MAIL: [email protected] the purchase of this property. The entire small businesses and is mandated Health. She replaces Tony Stamas, Friday, September 23, 2011 RFP (RFP No. 4127) can be found on the by national health care reform. who is now chief of staff to Senate Former Bank Branch in Adrian INTERNET: NFTA’s web site at NFTA.com . Some of the items Snyder will Majority Leader Randy Online at www.auconEbid.com or www.crainsdetroit.com/section/classifieds discuss will require legislative ac- Richardville, R-Monroe. www.pamelaroseaucon.com Quesons? Call Toll Free Call or email today for information tion, others will not, Wurfel said. Amy Lane: (517) 371-5355, See on a custom advertising plan! [email protected]. Twitter: 877-462-7673 or 877-980-9565 Details of the message are still be- ©2011 Crainsdetroit.com/Section/Classifieds @alanecdb [email protected] ing finalized. Aucon Management Corporaon for more classified advertisements Pamela K. Rose Aucon Co LLC, MI Broker 313.446.6068 20110912-NEWS--0042-NAT-CCI-CD_-- 9/9/2011 6:02 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS September 12, 2011 Games: Legislation, court ruling could score state incentives ■ From Page 3 in order to attract and retain our said. “That’s the only way to devel- tional Detroit hotel called the Gar- million to develop the game, the traditional economy. This is a way highly educated residents.” op a game and is put in as a quality rick Arms, was recently approved mobile application and the website to get them to stay.” Carrie Jones, director of the check to ensure the video games for $411,650 in credits. and required 30 full and part-time Louisiana introduced its digital Michigan Film Office, said the pro- meet all of the specifications.” “We created and wrote the en- employees. interactive development tax credit posed bill will help grow the digi- McClure also said it is unusual tire storyline,” McClure said. “So Hurwitz said he hopes the pro- program in 2005, which offers tal production industry while giv- for a production company to own we own all of the intellectual prop- posed legislation will clear up video game and interactive pro- ing college graduates an intellectual property rights, in erty rights.” some of the confusion. duction companies a 25 percent tax opportunity to find work in Michi- part because video games are often McClure said there will be 25 “Nothing is black and white that credit on production work and an gan. based on movies, toys and other employees working on “Ghost says, ‘if you meet these criteria additional 10 percent credit for la- “Video game production is an copyrighted products. Game,” which is expected to hit you will be approved for the cred- bor. industry we want to attract to the “Michael Bay does not own all stores in October 2012. its,’ ” Hurwitz said “But right “There is no cap on the amount state,” Jones said. “Those types of of the intellectual property rights Another video game production now, I am optimistic.” of an incentive and they are good jobs match perfectly with what we to ‘Transformers’ ... but he was company found a way around the One idea to help grow the video throughout the life of the project,” want to see in Michigan.” given approval to produce the need to fully own intellectual prop- game industry is to separate the Stelly said. “There is not an Jones said the Michigan Film film,” McClure said. “In the same erty rights. incentives for live-action film pro- amount of money we can’t give Office is working closely with leg- way, we don’t own the intellectual It took several duction and digital production. back.” islators to draft a new program for property rights to ‘Man vs. Wild,’ rejected applica- Chris Stelly, executive director Louisiana spent about $12.8 mil- handing out the credits but said but we were given approval by the tions before for Louisiana’s Office of Entertain- lion on entertainment industry tax the office has to abide by the cur- Discovery Channel to develop the Sean Hurwitz, ment Industry Development, a divi- credits in 2010. rent set of rules. video game.” CEO of Royal sion of the Louisiana Economic De- Seyburn said it would be benefi- When Nathaniel McClure, The regulations show “a lack of Oak-based Pixo- velopment Corp., said the two cial for Michigan to think about founder of Farmington Hills-based knowledge about how the industry factor Entertain- industries are so different they separating live-action film produc- Scientifically Proven, moved to works,” McClure said. ment LLC, and need separate incentive pro- tion and digital production. Michigan in September 2009 from McClure said he spent about his team of grams. “Live-action producers are no- California, he hoped to be one of $1.5 million developing the game, lawyers found a One difference, Stelly said, is mads,” Seyburn said. “They follow the first video game developers to but things soured when he was de- way to get not that films usually finish shooting cheap money, but video game pro- take advantage of the credits. nied nearly $400,000 worth of cred- Hurwitz only a Ben in four to six months whereas ductions are bigger full-time pro- McClure said he wanted to get in its by the film office and the Trea- Hogan video game approved for video games take longer to projects.” on the ground floor of video game sury Department. tax credits, but also a related mo- duce and create more long- term Hurwitz said he is on the fence production here and had an idea to McClure filed a lawsuit in Oak- bile application and an interactive jobs. about separating the two indus- develop a game centered on the land County Circuit Court last July. website as well. “We recognized early on that tries and does not want to alienate popular Discovery Channel televi- In June, Judge James Alexander By creating a Michigan-based each industry is distinct and sepa- anyone in Michigan’s fledgling en- sion show “Man vs. Wild,” which sided with McClure in a summary company called Ben Hogan Golfing rate,” Stelly said. “Video games tertainment industry. finds host Bear Grylls fighting the judgment order that found the law Game Productions LLC, Hurwitz and have more of a drive toward per- Yet he too said dividing the two elements in extreme terrain with did not require video game pro- a team of investors were able to ne- manence, which means more per- groups could provide much-need- little more than a pocket knife. ducers to own intellectual proper- gotiate the rights from the famous manent jobs and a longer commit- ed stability to the video game pro- McClure pitched his idea to the ty and distribution rights. golfer’s estate to use his name, film ment by the company.” duction industry, even if that Discovery Channel and received Terry Stanton, public informa- footage and the book Five Lessons: In addition to creating perma- meant divvying up the $25 million the go-ahead to develop the game. tion officer for the Michigan De- The Modern Fundamentals of Golf, nent jobs, Stelly said, the video pot. He entered into a contract with partment of Treasury, declined to leaving Pixofactor as a vendor on game industry is creating an op- “I could see the advantages to Newport Beach, Calif.-based Crave comment on the ruling, which has the project. portunity for college graduates to having certain amounts allocated Entertainment Inc., a boutique video been appealed. “We only needed enough of the find employment in Louisiana. for video games,” Hurwitz said. game publisher, to help pay for the Meanwhile, the “Man vs. Wild” intellectual property to create the “The interactive industry is cre- “One major film can easily use development, but waived distribu- video game hit store shelves in digital product,” said Marc Sey- ating something new for our that entire $25 million, but $25 mil- tion rights in doing so. May. burn, president of Birmingham- young people,” he said. “We are ex- lion could make a lot of video “You are required to use a first- There is good news on the hori- based Seyburn Knox Law Group PLLC. periencing brain drain in our games.” party publisher in order to develop zon for McClure. “Having that gave us preap- state. Recent graduates would Nathan Skid: (313) 446-1654, a game for Playstation 3, Xbox 360 Scientifically Proven’s latest proval.” have to go out of the state to work [email protected]. Twitter: or the Nintendo Wii,” McClure project, “Ghost Game,” set in a fic- Hurwitz said it cost about $2.5 in fields that were not part of our @nateskid Greenleaf: Birmingham building fills quickly at top rates ■ From Page 3 $18.25 per square foot for all types limited,” he said. “More specifical- Kalamazoo-based Greenleaf Trust, Achour. He said the restaurant, of office space. TENANT DEALS ly, there is a tangible lack of avail- a money management firm. Cata- which seats 220 people, has annual The office space on Old Wood- able medium-to-large blocks of lyst Development Co., the real estate sales of roughly $3 million. In the 12-month lease-up for the ward Avenue is ranked as the 31st Greenleaf Trust Building, just three space in these environments, holding arm of Greenleaf, is devel- “But we’re seeing a strong up- most-expensive corridor of office deals filled the office space, which opens up the opportunity oper and owner of the building. turn for the fall, based on parties space in the United States, accord- setting a market-high level of $36 for new development.” Development costs have never being booked, and we’re already ing to an analysis by Chicago- per square foot. Gantner is listing an office pro- been released, but estimates based seeing a lot of requests for holiday based Jones Lang LaSalle, with an South Carolina-based Ogletree, ject slated to be built just to the on the building’s size and current parties,” he said. average of $26 per square foot and Deakins, Nash, Smoak & Stewart south of the Greenleaf Building construction rates put the cost in On the top of the five-story a top of $36. PC leased 12,000 square feet, and Peabody’s Dining & Spirits, called the $20 million to $25 million building are two floors of residen- At $36 per square foot, the taking the entire third floor. Randy The Balmoral, which would have range. tial space still being built out. Greenleaf space was a bargain, Book, a broker in the Southfield 80,000 square feet of office and re- The space is high-end by any That space will set a high bar as said Ted Fuller, president of Fuller office of Colliers International, tail space and be developed by Roy- measure. Floors are covered with well. represented the tenant. Central Park Properties, which owns al Oak-based US Equity Capital LLC. imported Japanese stone. Molding Rent for the five units will range 1 million square feet of real estate Finnea Group LLC signed a Approved by the Birmingham around the doors is solid walnut. from $11,000 to $17,500 per month. lease for 4,000 square feet on the in Birmingham. City Council, the building could Office floors have balcony space Drew Schmidt, a principal in the second floor. Brendan George, a “For that building, for that qual- broker in the Southfield office of break ground as early as this fall, equipped for meetings amid the Bailey Schmidt firm, said there is ity, I’d say that’s a bargain,” he CB Richard Ellis, represented the said Gantner. plants making up the green roof. strong interest for the units, which said. “It’s brand new, high quality, tenant. The Balmoral would be one of the Natural light is designed to enter will soon be under construction. and it’s in a great location.” Greenleaf Trust uses 9,000 only speculative office develop- most office areas, and the ceilings One person is interested in two of With the space fully leased, he square feet on the second floor. ments built in recent history. Other are 9 feet tall, much higher than the units, he said. said he doesn’t expect a boost to his The next step is leasing the five than the Greenleaf Building, Birm- normal. Skepticism about the project is portfolio because the office space apartments in the building, with ingham-based Surnow Co. redevel- The building is also seeking cer- something that never entered his he owns is 100 percent occupied. monthly rental rates ranging from oped the 19,000-square-foot former tification under the U.S. Green mind. That scarcity of space in Birm- $11,000 to as much as $17,500. post office building at 320 Martin Building Council’s LEED program. “From the beginning, I knew ingham helped drive the high rent St. and leased the entire building. Retail space on the first floor this would be a success,” he said. at the Greenleaf building, Noonan other than Detroit’s central busi- After announcement of the was leased by Greenleaf’s hospital- “A great building, great location said. In fact, he said, there were in- ness district, with a walkable, ur- Greenleaf Building project, some ity division with its restaurant, and an unbelievable owner; we terested tenants in line behind both ban environment, said Ron Gant- in the real estate community were Zazios. were able to find the right tenants Ogletree and Finnea, ready to take ner, executive vice president in the quietly skeptical about develop- While the restaurant had a because it was a recipe for suc- the space if those deals fell through. Detroit office of Jones Lang LaSalle. ment of a speculative project in the strong start, it had a summer that cess.” Driving demand in Birmingham “In general, opportunities in middle of the recession. showed a 25 percent decrease in Daniel Duggan: (313) 446-0414, is it’s uniqueness in being the only this region for office space in a The building was completed in sales compared to last summer, [email protected]. Twitter: sizeable office market in the region, walkable, urban environment are June 2010. It was developed for said General Manager Fadi @d_duggan 20110912-NEWS--0043-NAT-CCI-CD_-- 9/9/2011 3:29 PM Page 1

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 43 Flagstar: Detroit may get two branches in 2012 expansion ■ From Page 1 Midtown, New Center and the of middle market lending of Fifth for and is routinely granted. Gateway project at Eight Mile Third Bank’s eastern Michigan re- The bank did a 1-for-10 reverse Road and Woodward. Thin market share spurred branches sale gion and has 31 years of experience stock split in May 2010 to shore up “We’re trying to build a very in Southeast Michigan. its share price, but Campanelli It was a lack of meaningful tions, it hadn’t intended to sell constructive partnership,” Cam- Terry McEvoy, an analyst for said no split is planned this time. market share and the cost and its Indiana operation but was ap- panelli said. New York-based Oppenheimer & Co. While not laying out a timetable, time that would be necessary to proached with an offer by “We want to be Inc., revised his projection for he said he expects a return to prof- improve its share that caused Cincinnati-based First Financial part of the resur- Flagstar earnings after its second- itability will raise the share price. Flagstar to announce in August Bancorp (Nasdaq: FFBC) that gence in Detroit, quarter earnings report and now “We need to make money, exe- that it would sell its 27 Georgia Campanelli said was too good to and we want to says it will be profitable in the cur- cute on the plan and the share branches. It subsequently an- turn down. lend to business- rent quarter and for 2012. He didn’t price will follow,” he said. nounced it would sell its 22 First Financial paid book value es in the city.” issue a target price for the bank in Tierney said the new branches branches in Indiana. for all real estate and fixed assets Campanelli a report he released Aug. 17, but will likely be a combination of new Both deals are expected to close at a time when Flagstar is trading said he hopes revised his third-quarter projec- construction and buying existing by the end of the year. at 38 percent of book value. It also that opening De- tions from a loss of 3 cents a share branches from either large nation- “Flagstar got into the Georgia agreed to pay a premium of 4.4 troit branches to net income of 1 cent and projects al and regional banks reducing market in 2004 and never got any percent on about $526 million in Campanelli and expanding net income for 2012 of 7 cents. their presences in Michigan or density,” said Joseph Campanel- deposits, resulting in a one-time its commercial lending in the city He rated the bank as a market from area community banks look- li, Flagstar’s president, CEO and net gain of about $23 million. might help it win some of the city’s perform, meaning the stock would ing to close branches as they try to chairman. “We were never a ma- Pittsburgh-based PNC Financial banking business. perform in line with Standard & reduce assets. jor player. We were losing $10 Services Group Inc. paid book value The expansion into Detroit may Poor’s S&P 500 over the next 12-18 For example, last week Bank of million a year there and couldn’t of $42 million for the real estate be part of an emerging trend. Hunt- months. America announced it was closing see how to turn that profitable in and fixed assets in Georgia. It ington Bank plans to open two McEvoy said that while a brick- two area banks by the end of the the next five years.” will assume about $240 million in branches in the city by the end of and-mortar expansion might seem year, one in Detroit at Gratiot and He said that while the bank ac- assets. the year, and John Hantz, presi- counterintuitive for a bank that has Eight Mile Road, one in Pontiac. tively shopped its Georgia opera- — Tom Henderson dent of Southfield-based Hantz been hemorrhaging money, it Reducing assets has become a Group Inc., told Crain’s that Hantz makes sense given both the bank’s survival tactic for troubled banks Bank, a two-branch bank, will open “We’re putting our eggs into the Shortly after Campanelli joined determination to diversify into com- as they try to improve a key metric a branch in Detroit as part of its Michigan basket,” said Michael Flagstar as its chairman, presi- mercial lending and its decision to for state and federal regulators plan to add 10 branches or so in the Tierney, Flagstar’s Midwest mar- dent and CEO in October 2009, he pull out of Georgia and Indiana. known as the Tier 1 ratio, which state over the next year and a half. ket president. announced that he would revamp “Management has decided to re- compares assets to liquidity. Flagstar (NYSE: FBC) also will Flagstar has the bank’s revenue mix by launch- focus on commercial banking, “I always wish the best to my embark on a somewhat smaller ex- 113 bank ing a commercial lending arm. which takes time and is a long- competitors. Good competition is pansion in west Michigan, primar- branches in Campanelli was brought in by term growth strategy, so more good for the marketplace and good ily in the Grand Rapids area, as it Michigan and the New York-based private-equity branches makes sense.” for consumers,” said David Giro- continues to beef up its fledgling also has 30 home firm of MatlinPatterson Thrift Invest- Bose George, an analyst with New dat, president and CEO of Fifth commercial lending business after loan centers in ments LP to replace President and York-based Keefe, Bruyette & Woods, Third Bank’s eastern Michigan re- focusing almost exclusively on 15 states and CEO Mark Hammond and his fa- issued a report Sept. 6 that also region. “If Flagstar can open two mortgage lending. four commercial ther, chairman Thomas Ham- vised projections. He now says the more branches in the city, that’s Although its mortgage business banking offices mond, the bank’s founder. Matlin- company will lose 22 cents a share good for everyone.” led to years of red ink when the in Massachu- Patterson made an initial this year, compared with his previ- Fifth Third was the last area Tierney housing market imploded — after setts, Connecti- investment of $100 million early in ous projection of 29 cents, and pre- bank to do a significant expansion posting net income of $75.2 million cut and Rhode Island. 2009 and followed that up later that dicts it will lose 3 cents a share next in the city of Detroit, starting with in 2006, it lost $39.2 million in 2007, Flagstar is fifth in deposit mar- year with an investment of year, compared with his previous the opening of the East Jefferson $275.4 million in 2008, $496.7 mil- ket share in Southeast Michigan at $250 million and an investment projection of a loss of 7 cents. The branch in December 2004 and cul- lion in 2009 and $374.8 million last 6.5 percent, despite having far few- last November of $400 million. company lost $2.62 a share in 2010. minating with a fifth new branch year — a refinancing boom as a re- er branches, 71, than its competi- According to Tierney, the bank Perhaps more important, opened in Midtown in October 2008. sult of record low interest rates tors. Chase has the most, 176; Char- will do about $1 billion in commer- George projects a 12-month target “You have to have a strong ur- could have the company back in ter One, which ranks just behind cial lending combined for this year for share price of $1; the stock was ban core. We want to support the the black by the end of this quarter. Flagstar in market share with and next, about half of that in trading Thursday at about 59 cents people in the city, and we want to Flagstar remains the largest 5.2 percent, has 101 branches. Michigan. a share. The New York Stock Ex- support city businesses. We bank headquartered in Michigan, “We need to add another 30 Today, it is expected to an- change requires members to have a opened a branch on Woodward with assets of more than $13 bil- branches to get the footprint we nounce the hiring of the 10th mem- share price of $1. across from Wayne State (University) lion. Last year, it did about want,” said Tierney. ber of its commercial lending team, In August, the exchange told the and it’s a great location, in a fully $26.6 billion in loan originations, The branches are part of veteran local banker Tom Kuslits, bank that its price needs to get leased retail facility,” Girodat said. ranking it No. 2 in the state behind Flagstar’s strategy to become a ma- who will be director of middle mar- above the $1 threshold by Feb. 18 Tom Henderson: (313) 446-0337, Detroit-based Quicken Loans Inc., jor commercial lender, a space it ket lending. Previously, he was a or it will face delisting. A six- [email protected]. Twitter: which did about $30 billion. had avoided before the recession. senior vice president and manager month extension can be applied @tomhenderson2 Korde: Experienced adman has Ford’s world in his hands ■ From Page 3 region and on his knowledge of so- calendar, flew to Los Angeles to who can do that,” Korde said of the Fiesta Movement, a social me- cial media. SATISH KORDE welcome Farley to Ford. Farley. dia campaign. More than a year “He’s had literally decades of ex- Korde had never met Farley. Their mutual backgrounds as before the subcompact went on Title: CEO of Team Detroit, perience in supporting a client like Ford’s agency They hit it off. engineers give them an under- sale, Ford brought 100 Fiestas from Procter & Gamble in India, for ex- “It was a stunning meeting,” Ko- standing of product, as well as the Europe, where it was on sale, and Age: 61 ample,” said Jim Farley, Ford’s rde said. “We talked for four importance of research and devis- gave them to consumers to drive, Education: Bachelor’s degree in group vice president of global mar- hours. It was all about Ford and ing a long-range marketing strate- with the understanding that con- chemical engineering, Indian keting, sales and service. “So he Institute of Technology-Bombay; what we need to do and how we gy. The two men realized that bor- sumers would blog about their im- knows how mobile marketing MBA, University of Minnesota should do it.” rowing from WPP’s research and pressions. works in India.” Previous positions: Vice Added Farley: “Satish was the experience in global markets could Farley said the things Ford learns And Farley said it’s only “a mat- chairman of Y&R (1997-2003), third person I met at the company. help Ford in the United States. from marketing in other regions ter of time” before Ford takes what WPP Ford group president (2002- I knew the number one priority Farley also is counting on will be applied to the United States. it learns about mobile phone mar- 07), WPP global client director was to get Ford, the brand, on peo- Korde’s international experience Ford has a marketing template for keting in India and applies it to the (2007-present) ple’s shopping list. We laid out the with WPP Group clients to guide Europe and the United States, he United States. process for the Drive One brand Ford’s efforts abroad. Ford has said, but the automaker needs to re- Korde agreed. “The applications Team Detroit’s parent. campaign.” said it expects about one-third of fine that template so it can spend its that will be developed in India will Korde still holds the title of That campaign started in 2008 its annual global sales to be in the marketing dollars efficiently. come here,” he said, gesturing WPP’s global client director, a job with employee testimonials about Asia-Pacific region by 2020, up In contrast, the template isn’t with his mobile handset. “This he took in 2007. Before that, he was the virtues of Ford vehicles. A from 15 percent last year. set yet in developing markets. “In smartphone is an incredible mar- WPP Ford group president. year later it morphed into cus- About three years ago, Korde, Asia, we have to put the plumbing keting machine.” In October 2007, he had a career- tomers talking about what they Farley and other Ford leaders in,” Farley said. “That’s where In July, Korde was named Team defining meeting. Farley had just liked about their Ford vehicles. turned to WPP’s research and so- Satish can help us. He has the ex- Detroit’s CEO. George Rogers, who agreed to leave Toyota Motor Sales Farley, like Korde, is a self-pro- cial media outlets in China to re- perience to build an office from had held that job for six years, was U.S.A. to head Ford’s global mar- fessed gearhead. Farley can build a search creative ways to use social scratch and know how many re- promoted to global business devel- keting. Korde, taking a chance on car from scratch. media for the U.S. launch of the Fi- search people we’ll need.” opment director at WPP Group, whether he could get on Farley’s “I’ve known only three people esta subcompact. The result was From Automotive News 20110912-NEWS--0044,0045-NAT-CCI-CD_-- 9/9/2011 6:01 PM Page 1

Page 44 CRAIN’S DETROIT BUSINESS September 12, 2011 Born from crisis: Business 10 years after 9-11

IN MEMORIAM You can’t just put more con- Up until 9-11, forensics The 9-11 attacks took the lives of several young business executives with “ “ metro Detroit roots: ventional cameras on a problem was a tiny portion of what Gene Terence E. Adderley Jr. Darya Lin and tie down more bodies trying Codes did. We were primarily Adderley, 22, originally from Lin, 32, originally from Ann Arbor, Bloomfield Hills, worked for Fred earned bachelor’s and master’s to watch TV sets. You have to dealing with pharmaceuticals Alger Management Inc. on the 93rd degrees in industrial and engineering floor of the World Trade Center operations from the University of north tower. He previously worked Michigan and was working as a have smarter systems. and biomedical research. at Kelly Services Inc. in Troy. His senior manager for Keane Consulting ” ” grandfather, William Russell Kelly, Group out of Chicago. Lin was Eric Sieczka, Pixel Velocity Inc. Michael Hennessey, Gene Codes Corp. founded the firm, and his father, attending a meeting on the 92nd Terence E. Adderley, remains floor of the south tower and was chairman. reported to have made it down to the 78th floor after the attacks but chose Frank Doyle to stay there to care for others. Adapt: Post 9-11 world changes biz Doyle, 39, originally from Huron Lisa Marie Terry ■ From Page 1 Township, worked in the south Terry, 42, was vice president with tower and was head of equity New York City-based Marsh & southern Thailand. trading for New York City-based McLennan Cos. in Rochester. She Later came a humanitarian ef- Keefe, Bruyette & Woods Inc. presumably was killed when one of fort in Guatemala in 2008 to iden- the towers collapsed. tify the remains of people killed Suzanne Kondratenko during civil war in that country, Kondratenko, 27, originally from Joshua Rosenthal and the current DNA Shoah Pro- Romeo, a senior consultant at Rosenthal, 44, originally from ject to identify Holocaust victims’ Chicago-based Keane Consulting Livonia and a graduate of the remains and reconnect them with University of Michigan, was a senior Group, commuted weekly to the Aon their families. Corp. offices in the south tower and vice president with New York City- was in a meeting with six Aon based Fiduciary Trust International Cash said he thought the 9-11 insurance executives on the 92nd and was working at the company’s job might be too large for his or floor when the first plane struck the offices in the World Trade Center. any other gene testing company north tower. — Ellen Mitchell at first. But the project took on personal significance as weeks wore on and he visited the collection of biological remains at ground zero and attended the fu- neral of Dana Hannon, a missing Detroit department focuses firefighter presumed dead. His company software would later identify Hannon’s remains. “As much as I know this is not on communication, education rational fact, I always had the feeling there were people there wanti- BY NANCY KAFFER Michigan, “communications has ng to be found and returned to CRAIN’S DETROIT BUSINESS been key,” Lundy said. The depart- their families. People saying in ment has worked to install sys- some way to us, ‘please don’t give Security forces have gotten tems that can communicate but up,’ ” Cash said. “I always prize smarter, but so have terrorists. also has acquired devices to make being completely scientifically ob- And that’s what keeps Detroit De- “unlike” radios talk to each other. jective, but it’s hard not to get in- partment of Homeland Security Direc- That’s one of the functional is- volved personally in some cases.” tor Daryl Lundy up at night. sues the departments practice at Michael Hennessey, director of “There’s a constant update of training exercises like the Detroit disaster response services for plans,” said Lundy, a retired U.S. River Readiness drill held last Gene Codes Forensics, said that Army colonel who has headed the month. The drill, Lundy said, is a until 9-11 “forensics was a tiny por- department since 2006. “Every day, valuable test run for the more than tion of what Gene Codes did. We BOB CHASE terrorists are coming up with a new 60 federal, state, local and Canadian were primarily dealing with phar- Gene Codes Corp. in Ann Arbor helped identify the remains of emergency responders and other 9-11 attack victims. President and CEO Howard Cash plan, and we have to be one step be- maceuticals and biomedical re- agencies that participated in the ex- says the project went from seeming too big to feeling deeply personal. hind them to make that next chess ercise on the Detroit River. search. The armed forces had move to get ahead of them. Every While coordinating response to asked us once (in the 1990s) to mod- video surveillance systems, incor- al Mall in Washington. day, we learn of a new disaster a theoretical disaster is an obvious ify that original program to help porated two months before 9-11 “You can’t just put more con- Mother Nature is responsible for, responsibility for the department, identify mitochondrial DNA from and originally focused on tradi- ventional cameras on a problem and we have to tweak those plans.” almost as important is planning soldiers killed in combat. And it’s tional defense contracting. It was- and tie down more bodies trying The department Lundy heads for continuing operations after the kept rolling on from there.” n’t until the Department of Home- to watch TV sets. You have to has existed since the 1960s, but first crisis has passed. Lundy’s de- Gene Codes has received more land Security made some grant have smarter systems,” Sieczka back in those days, the emergency partment is charged with coordi- than $1 million in other federal funding available to help the Uni- said. response department’s job was to nating city departments’ plans to government spending, including versity of Michigan install a version Homeland security will become coordinate with the Federal Emer- become operational after a crisis. software purchase orders, from of the company’s Pixel Video Fu- a new focus area for courting eco- gency Management Agency to han- Another priority for the depart- such agencies as the Centers for sion system at its football stadium nomic development and drawing dle natural disasters. ment is educating residents. Re- Disease Control and Prevention, the that the company shifted focus to- new contract dollars to Michigan, “Plans … for response to acts of cently, the city distributed emer- FBI, the U.S. Department of Justice, ward a new contracting market. which accounts for just $68 mil- terrorism didn’t exist much before gency preparedness handbooks to the National Institutes of Health and The Michigan stadium system lion of the department’s $42 bil- 9-11,” Lundy said. residents and is upgrading the the U.S. Army at Fort Belvoir, Va., became operational in late 2007. lion budget for fiscal 2011, accord- The department is funded pri- warning sirens throughout the city. according to records from the Fed- By 2009, Pixel’s annual revenue ing to Director Ron Moffett of the marily through federal grants. The The new system will allow emer- eral Procurement Data System. was nearly $1 million, and it grew Michigan Defense Center, an department’s budget for the 2011- gency officials to trigger sirens in Founded in 1988, Gene Codes 400 percent in 2010 as various gov- agency of the Michigan Economic 12 fiscal year is about $2.3 million; specific neighborhoods as needed. grew to nearly 40 employees after ernment agencies funded securi- Development Corp. about $355,000 is taxpayer-funded. “We’ve come a long way in 10 9-11. The company now has about ty system projects out of the The agency has been collabo- One of the department’s biggest years, but so have the terrorists,” 20 employees, and forensics is American Recovery and Rein- rating with the nonprofit Michi- post-9-11 challenges has been coor- he said. “It’s a challenge. I don’t once again a small share of busi- vestment Act. It is on pace to gan Homeland Security Consortium, dination, both of emergency re- want to give anyone any false sense ness, but Cash said its visibility grow again in 2011, Sieczka said, a business development organiza- sponse agencies and the devices that nothing will ever take place changed permanently. meaning revenue could top tion for technology businesses they use to communicate. here. … Our concern is not the na- Many other homeland security $5 million this year. and other companies with home- That the police and fire depart- tionwide concern of an al Qaeda- specialists also have Michigan Pixel Velocity in late 2010 be- land security applications, and ment radios can’t talk to each oth- based entity, but the lone wolf, the roots and may become more im- gan installing smart surveillance the Michigan State Police to identi- er was something first responders individual being radicalized via the portant to long-term jobs and eco- systems at the $22 million De- fy grants or contract opportuni- to the attacks on the Twin Towers Web. It’s hard to track those indi- nomic development in the region troit/Wayne County Port Authority ties with the Federal Emergency discovered at great cost, and fixing viduals … and they can act at a mo- as post-Sept. 11 conventional de- passenger terminal building on Management Agency and other that problem has been a top priori- ment’s notice. We saw that with the fense spending starts to decline. the riverfront, as well as the au- Homeland Security agencies that ty for local governments. Christmas Day bomber. We saw thority’s previous cargo terminal could benefit the state. Radio systems that don’t use the that at Fort Hood. That’s the part building. This year, the company “It (government spending) is same bandwidth are incompatible, that scares me.” Protecting public spaces also delivered new security soft- much smaller on the homeland and radios made by different manu- Nancy Kaffer: (313) 446-0412, Pixel Velocity, which makes ware to Fort Knox in Kentucky security side. We have a long way facturers often can’t communicate. [email protected]. Twitter: image processing hardware and and the Martin Luther King Jr. With 70 agencies in Southeast @nancykaffer software and high-definition National Memorial on the Nation- See Next Page 20110912-NEWS--0044,0045-NAT-CCI-CD_-- 9/9/2011 6:01 PM Page 2

September 12, 2011 CRAIN’S DETROIT BUSINESS Page 45 Gaffney: What’s behind www.crainsdetroit.com Sept. 11 showed you the need EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or “ [email protected] to invest not only in new labor leader’s exit? EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] ■ From Page 1 DEPUTY MANAGING EDITOR Jennette Smith, security systems, but also in a (313) 446-1622 or [email protected] County. the Legislature that are really SENIOR EDITOR Bob Allen, (313) 446-0344 or whole culture of security and Michigan Information & Re- pushing at nerves, seemingly [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- search Services reported last more about 8158 or [email protected] readiness. week that an unnamed source poking labor COPY DESK CHIEF Gary Piatek, (313) 446-0357 or ” confirmed that UAW President than moving [email protected] Bob King asked Gaffney to step Michigan for- ASSISTANT NEWS EDITOR Jeff Johnston, (313) Stephen Potter, Patriot Services Corp. 446-1608 or [email protected] down in a face-to-face meeting ward,” he said. DATA EDITOR Brianna Reilly, (313) 446-0418, about a month ago. “If this is retal- [email protected] Unable to unseat party Chair- iation to that, WEB DEVELOPER Steve Williams, (313) 446- From Previous Page Potter and fellow Plante & Moran 6059, [email protected] man Mark Brewer despite re- PLLC alumnus Thomas Quisenber- we’re moving WEB EDITOR Gary Anglebrandt, (313) 446-1621, to go there, but we have a great cruitment efforts following the [email protected] ry launched Patriot Services in in the wrong deal of opportunity,” he said. “So gubernatorial election, those fa- direction. EDITORIAL SUPPORT Robertta Reiff (313) 446- 2004 after Homeland Security be- 0419, YahNica Crawford, (313) 446-0329 we’re looking to increase Michi- miliar with the matter believe “Partisan- gan making grants available for lo- Bebow NEWSROOM (313) 446-0329, FAX (313) 446- gan’s share, which is much lower the UAW targeted Gaffney. cal governments and schools to im- ship didn’t 1687 TIP LINE (313) 446-6766 than in traditional defense, even if “He (Gaffney) and Bob King prove emergency preparedness. It help Washington this summer REPORTERS the total government spend goes were not on the same wave- has since grown to 11 employees and didn’t help the economy,” he Daniel Duggan, senior reporter: Covers retail, real down. length, but Mark (Gaffney) repre- estate and hospitality. (313) 446-0414 or and 20 contractors. Revenue said. “It’s really dangerous to be [email protected] “And technology plays a big role sented a lot more than just the Jay Greene, senior reporter: Covers health care, topped $1.2 million in 2007. recreating that war at the state in those contracts. We have a num- UAW point of view,” said Ed insurance and the environment. (313) 446-0325 or Patriot Services is a new subcon- level.” [email protected]. ber of those companies that either Bagale, vice chancellor for gov- Chad Halcom: Covers law, non-automotive tractor to McLean, Va.-based Booz Union workers in the state are have software capability or border ernment relations at University of manufacturing, defense contracting and Oakland Allen Hamilton Inc. on a national losing ground, as membership and Macomb counties. (313) 446-6796 or surveillance systems that the Michigan-Dearborn. “Labor unions [email protected]. planning grant project for FEMA, fell 11.7 percent last year to the Tom Henderson: Covers banking, finance, agency can use.” are under a lot of fire right now, and work resumes this month on a lowest membership figure in technology and biotechnology. (313) 446-0337 or and he was a person able to sort [email protected]. contract with the School Building Au- more than 20 years. There were Nancy Kaffer: Covers small business, the city of of bridge that gap as opposed to Detroit, Wayne County government. (313) 446- thority of West Virginia. 627,000 Michigan union members Defense funding the ideologues on the right and 0412 or [email protected]. The Michigan State Police, the in 2010, down from 710,000 in Bill Shea, enterprise editor: Covers media, The attacks in New York and left that seem to be taking no advertising and marketing, the business of sports, appointed state administrative 2009, according to the U.S. Bureau Washington and the subsequent prisoners.” and transportation. (313) 446-1626 or agency that has allocated more of Labor Statistics. [email protected]. global “War on Terror” generated Gaffney, 55, serves on the uni- Nathan Skid: Multimedia reporter. Also covers the than $500 million in various Home- UAW’s King believes unions food industry and entertainment. (313) 446-1654, more than a $24 billion bump in de- versity’s Citizens Advisory Com- land Security grants since 2002, are under attack by state and na- [email protected]. fense contract dollars awarded to mittee. Sherri Welch: Covers nonprofits and services. saw a pressing need after 9-11 for tional Republicans. Michigan companies since 2001, The UAW declined to com- (313) 446-1694 or [email protected] various first responders on differ- “You don’t take from workers, Dustin Walsh: Covers auto suppliers, steel, higher compared with pre-9-11 defense ment. Brewer referred inquiries education and Livingston and Washtenaw ent radio systems to communicate you don’t take from pensioners, counties. (313) 446-6042 or [email protected] spending. to a statement he issued, compli- with each other in a future crisis. you don’t take from kids to try to LANSING BUREAU But the peak in that spending menting Gaffney on his service Amy Lane: Covers business issues at the Capitol, give more and more to the telecommunications and utilities. (517) 371-5355, roughly coincided with the surge to the labor movement. wealthy,” King said at a Saginaw FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. of troop deployments in Iraq dur- Cross-agency coordination Hours after Gaffney’s an- County Democratic Party fundrais- ing 2007-2008, making homeland nouncement, Tina Abbot, AFL- ADVERTISING At the time, the $187 million er. “They are destroying Ameri- security more important as de- CIO secretary-treasurer and vice ADVERTISING DIRECTOR Marla Wise, (313) 446- statewide Michigan Public Safety ca. That sounds extreme, but I be- 6032 or [email protected] fense wanes, according to Moffett chair of the Michigan Democrat- Communication System was a year lieve the facts are overwhelming. SALES INQUIRIES: (313) 446-6052; FAX (313) and federal data. ic Party, announced she would 393-0997 from completion and the state ex- If we don’t demand fairness and Defense contracting in the state also not seek re-election. ADVERTISING SALES Christine Galasso, Matthew justice in America, they are go- J. Langan, Lori Tournay Liggett, Tamara Rokowski, panded it to become accessible for Cheryl Rothe, Dale Smolinski receded from $6.3 billion in 2008 to Gaffney, who has led the ing to destroy America.” any first responder or public safe- 400,000-member federation of CLASSIFIED SALES (313)-446-0351 $5.9 billion in 2009 and $4.4 billion Snyder’s emergency financial in 2010 — still well above the ty agency, said Brad Stoddard, di- unions since 1999, denied being MARKETING MANAGER manager rule, allowing a state- EVENTS DIRECTOR Nicole LaPointe $1.6 billion spent in 2000 but ex- rector of the MPSCS system. forced to step down. “Whether you were a federal, placed manager to cancel union MARKETING ARTIST Sylvia Kolaski pected to recede further as the “I’ve been thinking about this SALES SUPPORT Suzanne Janik, YahNica Crawford contracts and cut costs in finan- armed forces wind down opera- state, local or private public safety for months, and there’s been no AUDIENCE DEVELOPMENT MANAGER cially troubled cities and school Candice Yopp tions in Iraq and Afghanistan and provider, it didn’t matter,” Stod- pressure from anyone to leave,” dard said. “It provided the means districts, has been hotly contest- MARKETING COORDINATOR Jenny Griffith Congress looks for further cuts. he said. “My talents are bringing PRODUCTION MANAGER Wendy Kobylarz ed by unions. Annual defense spending has to connect everyone.” people together, but the ap- PRODUCTION SUPERVISOR Larry Williams UAW’s King has also been crit- grown steadily from $270 billion in Participation in the system is proach by conservative politi- CUSTOMER SERVICE ical of Snyder’s sweeping tax 1998 to $690 billion in 2010. But the not mandatory, though, and not all cians has brought a battle to the MAIN NUMBER: Call (877) 824-9374 or write changes. [email protected] legislation signed into law last communities use it. Of approxi- working people, and poor people, Bagale said Michigan’s left SUBSCRIPTIONS $59 one year, $98 two years. month to raise the federal debt mately 57,000 radios currently be- of Michigan. Out of state, $79 one year, $138 for two years. ing used on the system, nearly 80 and right are caught in an “ideo- Outside U.S.A., add $48 per year to out-of-state ceiling also calls for an estimated “The unions aren’t going to rate for surface mail. Call (313) 446-0450 or logical war,” and the loss of a (877) 824-9374. $350 billion in defense cuts by 2021, percent are used by local agencies. give up but will continue with a moderate like Gaffney is a blow SINGLE COPIES: (877) 824-9374. or up to $850 billion if a 12-member Most of those who use the system different approach,” he said. “We to patching that disconnect. REPRINTS: (800) 290-5460, ext. 125; congressional committee cannot pay an annual membership fee of have to fight by fighting back, (717) 505-9701, ext. 136; or rosie.hassell @theygsgroup.com. finalize a full set of spending cuts $200 per radio. and I’m just more interested in “There’s a war going on, and what we absolutely need on both TO FIND A DATE A STORY WAS PUBLISHED: by late November. Homeland secu- Local participation in the sys- finding solutions without the (313) 446-0367 or e-mail [email protected]. tem increased after a federal pub- sides are people like Mark who rity is expected to have more sta- battle.” CRAIN’S DETROIT BUSINESS IS PUBLISHED BY ble demand for contractor services lic safety interoperable communi- However, people familiar with can be moderates when needed,” CRAIN COMMUNICATIONS INC. in the next several years, local cations grant program made funds Gaffney’s position are unsure he said. “We need people who can CHAIRMAN Keith E. Crain available for investments like ra- transcend the rhetoric and pos- PRESIDENT Rance Crain business leaders said, although it whether he was left with a SECRETARY Merrilee Crain too faces possible cuts under the dio purchases or improvements to choice without UAW backing. As tured outrage. His departure is a TREASURER Mary Kay Crain community radio infrastructure. huge loss for moderates and a Executive Vice President/Operations debt ceiling deal. And not every- a former Teamsters organizer, William A. Morrow one tapping the domestic security (See story on Detroit homeland se- Gaffney was the first president huge loss for the future of the De- Group Vice President/Technology, mocratic party.” Manufacturing, Circulation market is focused on technology. curity efforts, Page 44.) of the union federation without a Robert C. Adams As use of the system has grown, But Gaffney, who doesn’t have Vice President/Production & Manufacturing “There’s a lot of work to still be UAW affiliation in more than 20 Dave Kamis done. What has really happened af- the state in some instances has years when he was elected in another position lined up, said Chief Information Officer ter 9-11 is that homeland security used funds available from Home- 1999. he supports the UAW’s play for Paul Dalpiaz land Security to add capacity on the AFL-CIO position because of Director of Audience Development Operations is not a one-shot, one-kill scenario Former UAW organizers Michelle Roth where once you have a plan in parts of the system, and local agen- Frank Garrison and Sam Fish- the attack on unions. G.D. Crain Jr. Founder (1885-1973) place you’re good to go,” said cies also at times make invest- man served as president of the “The tea party is wrong to cut Mrs. G.D. Crain Jr. Chairman (1911-1996) ments as part of their decision to people’s pay and benefits, and we EDITORIAL & BUSINESS OFFICES: Stephen Potter, president and CEO AFL-CIO prior to Gaffney. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) of Commerce Township-based Pa- join the system. The UAW holds enough votes have to address that,” he said. “I 446-6000 Some $70.8 million in state up- think they (UAW) are exactly the Cable address: TWX 248-221-5122 AUTNEW DET triot Services Corp. and past chair- at the AFL-CIO convention that a CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 man of the Michigan Homeland Se- grades include a $15 million up- candidate without UAW backing team that the AFL-CIO needs go- is published weekly, except for a special issue the grade completed this year that al- ing forward because of the fight third week of January, a special issue the fourth curity Consortium. has no chance of winning, Bagale week of August, and no issue the third week of “The DHS is facing the same lowed more radios to come onto said. the other side has brought to the December by Crain Communications Inc. at 1155 the system, after it had reached ra- working people of Michigan. I’m Gratiot Ave., Detroit MI 48207-2732. Periodicals challenges as every federal agency John Bebow, executive direc- postage paid at Detroit, MI and additional mailing with budget pressure. But its need dio ID capacity. tor for the Ann Arbor-based non- going to continue to take on that offices. POSTMASTER: Send address changes to fight wherever I land, but indi- CRAIN’S DETROIT BUSINESS, Circulation is still there. Sept. 11 showed you Chad Halcom: (313) 446-6796, partisan think tank Center for Department, P.O. Box 07925, Detroit, MI 48207- the need to invest not only in new [email protected]. Twitter: Michigan, said he fears Gaffney’s rectly.” 9732. GST # 136760444. Printed in U.S.A. @chadhalcom Entire contents copyright 2011 by Crain security systems, but also in a departure is a sign of deeper par- Dustin Walsh: (313) 446-6042, Communications Inc. All rights reserved. whole culture of security and Amy Lane contributed to this re- tisan warfare. [email protected]. Twitter: Reproduction or use of editorial content in any readiness.” port. “We’ve seen some elements in @dustinpwalsh manner without permission is strictly prohibited. 20110912-NEWS--0046-NAT-CCI-CD_-- 9/9/2011 5:05 PM Page 1

Page 46 CRAIN’S DETROIT BUSINESS September 12, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 3-9

Placement. dustry Association of South- The nonprofit, which fo- the park. east Michigan. That’s up cuses on career counseling PulteGroup Novi-based Trinity Hatch Detroit Health is in merger talks from June’s 221 permits and planning, recruitment with Chicago’s Mercy Hospi- and from 195 in July 2010. and professional develop- named in probe ment for law school stu- tal & Medical Center, Crain’s Individual tickets for dents and attorneys, found Chicago Business reported. potential American League contest draws that the median pay in Mo- of pay practices Mercy CEO Sister Sheila Division Series games in- town placed it near the bot- Lyne confirmed that the volving the Detroit Tigers at Comerica Park go on sale at tom at $100,000, along with loomfield Hills- hospital is in a “friendly” 10 a.m. today. the local law firm markets based PulteGroup Inc. stage of discussions with Tickets will be available in Indianapolis and B is among home- Trinity. Trinity Health de- 200 retail ideas clined to comment. only by calling (866) 668- Raleigh-Durham, N.C. builders under investiga- 4437 or through That’s compared with a tion by the U.S. Department A new company, Digital etroit’s venture in tioned for the past 104 www.tigers.com but not at national median salary of of Labor for its pay prac- First Media, has been creat- “crowd entrepre- years, since Pewabic moved the Comerica Park box of- $115,000, unchanged from tices, according to media ed by Alden Global Capital, a D neurialism” is off to to the building after its 1903 fice. Tickets are limited to 2010, and a median of reports. New York City-based inter- a strong start with 200 ideas founding. While the chim- $125,000 among firms with The department is look- national hedge fund, to op- six per customer per game for retail businesses. ney’s interior brick struc- 251-500 attorneys — the cating for violations of the erate a number of newspa- and range from $35 for up- Hatch Detroit aims to back ture needs only minor fixes, egory that includes De- Fair Labor Standards Act, pers across the country it per-level “skyline” seats to a new retail concept in De- its exterior tile and con- troit’s four largest firms. which governs matters owns or is invested in. $135 for seats near the on- troit with a contest for a crete are damaged and bad- such as overtime pay and They include The Oakland deck circles. $50,000 prize, free business ly in need of repair. limits on using teen work- Press, the Daily Tribune in The U.S. Department of consulting and tons of at- Arts Beats & Eats ers, confirmed the Labor Royal Oak, The Macomb Energy says the University of tention in the process. expects to be in the black Department, according to Daily in Mt. Clemens, the Michigan is expected to get With the Sept. 1 deadline Detroit Lions honor fallen The Associated Press. Heritage Newspapers Down- more than $1 million to for ideas passed, the Hatch Rain, wind and other un- longtime beat writer PulteGroup did not re- river, and weekly newspa- help spur offshore wind en- Detroit team wound up with favorable weather battered ergy development, AP re- To honor the memory of attendance and spending at spond to a request for com- pers around the state. The 200 ideas — and plenty of ported. The funding is sub- longtime beat writer Tom the 14th annual Ford Arts ment from Crain’s. fund also has a large, non- procrastinators: 160 of the ject to congressional Kowalski, the Detroit Lions Beats & Eats Presented by controlling stake in Den- submissions came in dur- approval. last week named the media Citizens Bank, but the festi- ver-based MediaNews Group ing the last 48 hours. ON THE MOVE The Detroit Lions posted rooms at their Allen Park val still covered its operat- Inc., owner of The Detroit The ideas, apparently, in- an National Football League- practice facility for him. ing costs and should raise Nancy Morrison, youth News. Because the advertis- cluded coffee shops, skate worst $7.7 million operating Kowalski, 51, died sud- six figures for nonprofits, director for the Troy Commu- ing, printing and distribu- shops, hot dog joints, cafés, income loss for the 2010 sea- denly of a heart ailment on its organizer said. nity Coalition for the Preven- tion functions of The News flower shops, men’s acces- son, on revenue of $228 mil- Aug. 29. He covered the The Sept. 2-5 festival in tion of Drug and Alcohol are handled by the Detroit sories, and “everything in lion, according to new annu- team first for The Oakland downtown Royal Oak drew Abuse, has been named ex- Media Partnership under a between,” organizers said. al revenue estimates issued Press in the early 1980s — about 335,000 people, com- ecutive director, succeed- joint operating agreement The nonprofit, an idea of by www.forbes.com. The before quarterback pared with 423,000 last year, ing Ann Comiskey, who re- with McLean, Va.-based Nick Gorga and Ted Balowski, only other team in the red Matthew Stafford and other and could raise $150,000 to tired in May. Gannett Co. Inc., it’s unclear will continue with a Sept. 29 was the Cleveland Browns, at Lions were born — and for $200,000 for the dozens of The Community House in what role Digital First will event to announce 16 semi- minus $2.9 million. Booth Newspapers and nonprofits and cultural or- Birmingham has appointed have in Detroit. finalists. From there, a pub- Investment rating MLive.com since 1997. ganizations that collect a Camille Jayne president and lic online voting process agency Moody’s last week The team also said it share of its gate admissions, CEO, succeeding CEO will winnow the field to cut its outlook for auto sup- would donate some of the beverage proceeds, parking Shelly Roberts, who retired LANSING eight and another vote will pliers from “positive” to concession sales from the fees, sponsorships and Arts in February. reduce it to four. Sept. 18 home opener at Scores of seniors upset “stable” as materials costs Du Jour charity preview Revstone Industries LLC The finalist will be decid- Ford Field to “Killer” that the state wants to tax continue to rise and pro- event, said Jonathan Witz, of Southfield has named ed in front of a panel of Kowalski’s favorite chari- some of their public pen- duction forecasts continue president of Jonathan Witz Kevin Cramton CEO and judges and will receive the ties and would start a sions for the first time to fall. and Associates Inc. and the Kevin Bagby CFO. Previous- prize to launch a Detroit scholarship in his name. packed into the Michigan The University of Michi- festival producer. ly, Cramton was a manag- business. Details are at Supreme Court as lawyers gan Law School will launch a The festival raised a ing director at Belgium- hatchdetroit.com. based RHJ International SA, argued whether the new new legal clinic this fall to Survey: Rookie lawyer pay record $351,213 for 90 non- charge is legal, AP report- profit and cultural organi- and he has 20 years of expe- coach student entrepre- in Detroit among lowest rience at Ford Motor Co. Bag- ed. neurs and help train law Pewabic seeks donations zations in 2010, its inaugur- The case is a major test First-year associate al year in Royal Oak. by was vice president of fi- students in counseling to repair historic chimney nance and CFO of Valley of tax changes put in place startup companies and lawyers with offers to start Witz called this year’s fes- earlier this year by Gov. Detroit’s Pewabic Pottery City, Ohio-based Shiloh In- their owners, under a $5 at Detroit-area law firms tival estimate preliminary, Rick Snyder. He wants a has launched a campaign to this fall can expect to trail but said the show still ex- dustries Inc. million seed funding gift Supreme Court advisory raise $125,000 to restore the their counterparts in more ceeded the 225,000 attendees Warren city executive from Equity Group Invest- opinion that would effec- historic chimney atop its than 25 cities nationwide at the festival’s last year in administrator Louis “Bud” ments Chairman Samuel tively pre-empt any court Tudor Revival building on for salary, according to a Pontiac and the turnout it Schimmel starts today as the Zell. challenge on the law. East Jefferson Avenue. new report by the National previously has needed to third state-appointed emer- The chimney has func- Association for Law break even. gency manager for Pontiac, OBITUARIES after Michael Stampfler re- OTHER NEWS signed last week. Ruslan Salei, 36, a de- Oakland County says fenseman for the Detroit Red it is approaching a bench- Wings last season, was COMPANY NEWS mark of 25,000 jobs created among 43 people killed in a Borders Group Inc.’s flag- or expected to be created plane crash in Russia on ship store in downtown since the launch of its 7- Sept. 7. BEST FROM THE BLOGS Ann Arbor is expected to year-old Emerging Sectors Also killed was Brad Mc- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS close today as the book- program to court business Crimmon, 52, a former seller works to wrap up attraction and expansion in Wings player and an assis- Calls grow for tax replacement Moody’s cuts supplier outlook hundreds of store closings. high-growth industries. tant coach with the Wings Detroit-based Quicken Chris Brown, city of De- for the past three seasons troit COO, said the city The push is heating Since July 27, stock Loans Inc. confirmed that it until leaving to coach Loko- could lose $54 million a up“ to urge lawmakers for“ Southeast Michigan’s has signed a multiyear motiv Yaroslavl of Russia’s and the Snyder public (auto) suppliers health services contract year in federal funds to Kontinental Hockey League. administration to has been declining, with Blue Cross Blue Shield help poor people unless of- Mac McElmurry, a long- guarantee replacement underperforming against of Michigan, effective Jan. 1. ficials reel in corruption at time area golf pro, died funds if Michigan’s the S&P and Dow Jones. Quicken also announced it the Human Services Depart- Aug. 23. He was 85. personal property tax is The suppliers are down is sponsoring a free game ment, AP reported. Aldo Ottaviani, who had eliminated. more than 18 percent pavilion in Campus Mar- A total of 223 single- owned Aldo’s restaurant in since the end of family home permits were Detroit and also served as ” July. tius Park that will feature bocce ball, chess, checkers, issued across Macomb, executive chef for the Andi- Reporter Amy Lane’s blog on utilities and state Reporter Dustin Walsh’s blog ”on auto suppliers, steel, backgammon, table tennis, Oakland, St. Clair and amo Restaurant Group, died government issues affecting business can be found higher ed and Livingston and Washtenaw counties can and bean bag and washer Wayne counties in July, ac- of kidney failure Sept. 5. He at www.crainsdetroit.com/lane be found at www.crainsdetroit.com/walsh toss to encourage visits to cording to the Building In- was 89. 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