20121008-NEWS--0001-NAT-CCI-CD_-- 10/5/2012 6:18 PM Page 1

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www.crainsdetroit.com Vol. 28, No. 42 OCTOBER 8 – 14, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved

Page 3 DTE green spending drive Posco hunts joint ventures energizes state business CRAIN’S Steelmaker wants access to new markets

MICHIGAN BUSINESS BY DUSTIN WALSH It’s interested in creating ven- taining our core competencies CRAIN’S DETROIT BUSINESS tures with auto suppliers, includ- and matching up with the tech- ing metal stampers for doors and nology know-how we just don’t To capitalize on the growing chassis as well as motor manufac- have.” global automotive market, the turers, said Steven Bigatti, execu- Posco plans to announce the South Korean steel conglomerate tive director of business develop- plan today in South Korea. Posco Ltd. is opening its wallet to ment at Posco’s North America Bigatti said each of the 200 joint spend at least $2 billion to create business group in Troy. ventures would have a bench- up to 200 joint ventures — many “We feel in the future of the mark of reaching $50 million in DUANE BURLESON/THE ASSOCIATED PRESS with suppliers headquartered in supply business, companies will revenue by 2020, contributing $10 Detroit Tigers Miguel Cabrera and Wading in Southeast Michigan. have more vertical integration,” billion in revenue overall. Prince Fielder celebrate a Cabrera Posco, along with its interna- he said. “We have the raw materi- Posco is interested in access to home run Aug. 24 at Comerica Park. Michigan tests waters tional trading subsidiary Daewoo al, and this is a way to participate new markets and technology of ‘blue economy,’ International, looks to own up to 20 in this trend of reverticalization Page 11 percent of these joint ventures. of the supply base while main- See Posco, Page 32 New TV deals World Watch: Michigan biz in Spain, Portugal, Page 17 should cover Serving Detroit’s Cheesecake Bistro takes the Crain’s Lists place of the former Sweet Prince-ly Largest Michigan off the Georgia Brown on Brush Street manufacturers, Page 14 next to Largest group health Greektown paychecks Casino. providers, Page 27 ANDREW TEMPLETON menu BY BILL SHEA CRAIN’S DETROIT BUSINESS

This Just In Major League Baseball’s three Bistro opens with new television contracts will cover St. Joseph Mercy plans much of the premium that the De- $29.3 million addition troit Tigers are paying for slugger La-Van Hawkins, Prince Fielder and his nine-year, St. Joseph Mercy Hospital Ann $214 million contract. Arbor has submitted plans to questions, but Baseball analysts expect the the state for a $29.3 million, new TV deals to give the Tigers an two-story hospital addition. additional $26 million in shared The hospital said in a let- no liquor license revenue from MLB’s Central Fund ter of intent last month to the starting in 2014. That means the Michigan Department of Com- team will receive almost $90 mil- munity Health that it wants to BY NATHAN SKID CRAIN’S DETROIT BUSINESS lion collectively from its local ca- replace nine outpatient oper- ble deal with Fox Sports Detroit and ating rooms with new rooms Detroit’s Cheesecake Bistro the shared national broadcast con- that are double the size to ac- opened with a Sept. 27 party, con- tracts. commodate robotic equip- troversial entrepreneur La-Van Fans and pundits have worried ment. The plans are subject Hawkins and a lot of questions. that Tigers owner Mike Ilitch was to certificate-of-need ap- What it didn’t open with was a mortgaging the future by signing proval. liquor license, health department NATHAN SKID/CRAIN’S DETROIT BUSINESS Fielder in January to a free-agent The existing hospital oper- La-Van Hawkins says the liquor license for Detroit’s Cheesecake Bistro should signoff or business license — come through this week. deal that pays him $23 million this ating rooms are outdated and something not known to its VIP year and in 2013, before increasing too small, said Suzette guests that included the Detroit ing it following a stint in prison. to restaurant owners Chicago to $24 million annually. Bouchard-Isackson, vice presi- mayoral trio of Dave Bing, Dennis The Tigers already were on the dent of surgical services as St. Hawkins doesn’t own the restaurateur Jerry “Magic Man” Archer and Kwame Kilpatrick. restaurant — he’s a convicted Kleiner and anesthesiologist Dr. hook for mega-deals with Miguel Joseph Mercy Health System. One, and maybe two, of those Cabrera (eight years, $152.3 mil- The second story of the ad- felon and can’t hold a liquor li- David Tomkin, who hold the requirements have since been sat- cense in Michigan — but he’s a restaurant under Cheesecake lion through 2015) and Justin Ver- dition would be turned into isfied, but the restaurant as of lander (five years, $80 million two spaces for hybridoperat- consistent presence there, some- Bistro LLC, incorporated in Friday wasn’t able to legally times chatting with guests, and Delaware. through 2014). ing rooms that can be used serve alcohol to the general pub- The influx of new TV money for surgery or radiology. on one occasion at least, sipping In an earlier interview, Kleiner lic. sparkling wine while being at- denied involvement with the should assuage payroll worry. St. Joseph plans to have It’s the latest episode in the “The Tigers have the treasury to the rooms fully operational tended by a waiter. restaurant. controversial career of Hawkins, Who does own it isn’t entirely “I am not involved in any form afford that kind of contract. More- by spring 2014. who entered the Detroit market over, the club is looking at a rev- — Ryan Kelly clear. in the 1990s, and now is re-enter- Hawkins said he’s a consultant See Bistro, Page 30 See Tigers, Page 33

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Page 2 CRAIN’S DETROIT BUSINESS October 8, 2012

MICHIGAN BRIEFS CEO offers employees a bonus Neogen makes food and animal safety products. The price of the with added bonus: Voting advice Trails bring 2-wheel tourism to N. Mich. businesses all-cash purchase won’t be dis- MLive.com’s Jim Harger report- closed until Neogen’s next quarter- ed last week that the 2,300 employ- Before Nick Wierzba and his wife moved to Michi- Briggs, director of marketing at the winery. ly filing, the company said. Napa Val- ees at Grand Rapids-based Lacks En- gan in mid-March, he spent seven years at “Along the Old Mission Peninsula, bikers will of- ley Bike Tours terprises got something extra in a leading thousands of people on treks ten stop for a sample and return after the ride to pur- Find business news from letter telling them they would be through California’s wine country — without a path chase because they don’t have any place to store the around the state at crainsdetroit getting a bonus — their sixth in the specifically for bicycles. wine on their bikes,” Briggs said. “At our Suttons .com/crainsmichiganbusiness. past three years. That added value So when Wierzba and wife Kasey heard that more Bay location, we have seen a big increase of bikers Sign up for Crain’s Michigan was this passage from the letter bike trails were being paved in Michigan’s own ver- on tours arranged and facilitated by Grand Tra- Business e-newsletter at crainsde- from President Richard Lacks: sion of Napa Valley — the Leelanau Peninsula — verse Bike Tours.” troit.com/emailsignup. “The talk of additional tax in- “that was kind of the kick in the pants to say hey, if The network of paved trails has been in the works creases by the administration, if re- we don’t open a bike shop, somebody’s going to open for two decades, when planning began on a 15.5-mile elected, will have an additional neg- a bike shop,” Wierzba said. paved alley, built on a former railroad corridor and CORRECTIONS ative impact on the organization. … In June, they set up Suttons Bay Bikes-Grand Tra- connecting Traverse City with Suttons Bay. Last sum- The 40 under 40 profile story It is important that in November verse Bike Tours in Suttons Bay. mer, the final 6.2 miles of the Leelanau Trail was paved. on Jeffrey Laethem on Page 19 of you vote to improve your standard “If this were in Napa, California, many, many This past summer also saw the ribbon-cutting on the Oct. 1 edition included an in- of living, and that will be through more people would ride their bikes to and from the the first four miles of the Sleeping Bear Heritage Trail, correct revenue figure for Ray smaller government and less gov- wineries,” Wierzba said. which promises eventually to take bicyclists from Laethem Buick-GMC and Ray ernment.” One of those wineries, Black Star Farms, has seen the southern edge of Leelanau County through Sleep- Laethem Motor Village. The dealer- The suggestion being: Voting for more customers on two wheels at its locations in ing Bear Dunes National Lakeshore to Good Harbor Bay. — Howard Lovy ships report annual revenue of President Barack Obama may not Suttons Bay and Old Mission Peninsula, said Coryn about $90 million. be the best option. The 40 under 40 profile on Jim Green, executive director of entity got closer to tapping into of sales, Crain’s Michigan Business pedics business, as the new presi- Bernard Fuhs, on Page 17, should human resources, said Lacks En- Lake Huron and, in the process, reported in January. dent and CEO of the Kalamazoo- have said he was a basketball terprises survived the auto indus- perhaps snatching a customer from A Karegnondi study claims that based medical device maker, effec- commentator for high school try downturn not because of the the Detroit system. The state ap- continuing to buy water from De- tive immediately. Lobo, 47, playoff games held at Michigan U.S. government’s bailout but “be- proved a permit allowing the Kareg- troit would cost the region $2.1 bil- replaces Stephen MacMillan, who State University. cause of our business model and nondi Water Authority to tap into Lake lion in the next 25 years. By build- resigned in February for “family A story on Page 11 of the Sept. the money we have in the bank to Huron with a 1.5-mile underground ing a pipeline, that would be $1.9 reasons.” 24 issue incorrectly stated that survive these downturns.” intake, MLive.com reported. billion. After the initial 25-year pe- Walker-based Meijer Inc. said Health Alliance Plan CEO William The authority — comprising riod, water would cost less than 25 it plans to hire 12,000 employees to Alvin received a 21 percent in- Genesee, Lapeer and Sanilac coun- percent of the projected cost of De- prepare for the holiday season and crease in base pay in 2010. Com- Rival to Detroit water system is ties and the cities of Lapeer and troit water, Karegnondi said. handle growth. Besides Michigan, pensation reported for Alvin for Flint — has said it would build the the retailer has stores in Ohio, In- step closer to Lake Huron pipeline 2009 was for only 10 months, giv- pipeline so the communities could diana, Illinois and Kentucky. en that he joined HAP in March While workers at the Detroit Water become independent of the Detroit MICH-CELLANEOUS Lansing-based Neogen Corp. and Sewerage Department walked the of that year. His base pay did not system. Flint is Detroit’s largest Stryker Corp. last week named has acquired Fort Collins, Colo.- picket line last week, another water increase in 2010. customer, representing 5 percent Kevin Lobo, president of its ortho- based Macleod Pharmaceuticals.

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October 8, 2012 CRAIN’S DETROIT BUSINESS Page 3 Physician group to be area’s largest Health Care Extra

and physicians to work more close- Beaumont PO plans to join United; 2,600 doctors ly together to improve quality and reduce costs. BY JAY GREENE cess in the changing health care cian organization, Beaumont United “We are look- CRAIN’S DETROIT BUSINESS environment,” Williams said. Physician Organization, that spun off ing forward to The two physician organizations to become United Physicians. In working with a The Troy-based Beaumont Physi- are expected to combine operations 2009, some members of United stronger, unified cian Organization plans to join Bing- by year’s end. At that time, the Physicians left to form the Beau- physician orga- ham Farms-based United Physicians Beaumont Physician Organization mont Physician Organization. nization to re- Inc. to create the largest physician no longer will be managed with “A reunited United Physicians, spond to health organization in Southeast Michi- East Lansing-based Medical Advan- working closely with Beaumont care changes gan, with more than 2,600 physi- tage Group. Five BPO physicians Health System, is the winning for- and challenges,” cians, said Michael Williams, M.D., will join the 21-member United mula for these complex times,” Michalski said. Michalski State’s health info exchanges CEO of United Physicians. Physicians board. Marc Weisman, D.O., medical di- “As we work “We can immediately begin Both physician organizations rector of the Beaumont Physician with the merged physician organi- don’t exchange data, Page 19 working on combining our have historical ties to Beaumont Organization, said in a statement. zation, we will continue to develop strengths and best practices to Health System. Gene Michalski, CEO of Beau- the Beaumont Medical Group, made work more closely with Beaumont In 2000, Beaumont Hospital in mont Health System, said health Health System on strategies for suc- Royal Oak had an exclusive physi- care reform is driving hospitals See Doctors, Page 31 Company index

These companies have significant mention in this week’s Crain’s Detroit Business: Aetna ...... 24 Altair Engineering ...... 17 Amway ...... 17 Rockbridge Arts, Beats & Eats ...... 31 DTE brings energy to state biz Bank of America ...... 4 Barton Malow ...... 32 Beaumont Health System ...... 21 Spending push strives to meet renewables goal gets $100M Beaumont Physician Organization ...... 3 Blue Cross Blue Shield of Michigan ...... 24 Chase Bank ...... 4 BY JAY GREENE Chrysler Group ...... 17 CRAIN’S DETROIT BUSINESS Comerica Bank ...... 4 commitment Detroit Medical Center ...... 7 DTE Energy Co. is on schedule Detroit Tigers ...... 1, 33 with its pledge to increase its Detroit’s Cheesecake Bistro ...... 1 spending with Michigan compa- Domino’s Pizza ...... 17 nies by $750 million over five Downtown Market ...... 15 years through 2016 as it takes to fuel deals DTE Energy ...... 3 steps to meet the state’s 10 per- Dwelling Place ...... 15 cent renewable-energy standard Engineering Society of Detroit ...... 12 and move more work to Michigan 2 investment Federal-Mogul ...... 17 from out-of-state companies. Flagstar Bank ...... 4 Fox Sports Detroit ...... 1 The spending, targeted toward vets recruited General Motors ...... 17 areas such as solar energy plants, Grand Action ...... 15 information technology improve- Great Lakes HIE ...... 19 BY TOM HENDERSON ments and staffing contracts, also Greater Detroit Area Health Council ...... 26 CRAIN’S DETROIT BUSINESS enables the company to fulfill its Guardian Industries ...... 29 commitment to the Pure Michigan Buoyed by a financing commit- Haworth ...... 17 Howard & Howard ...... 30 Business Connect initiative to pro- ment that should total at least $100 Huntington Bank ...... 4 mote in-state procurement. million from a major East Coast “Whenever Hutzel Women’s Hospital ...... 7 private equity firm, Detroit-based Hydra Professionals ...... 32 we go to bid, we Rockbridge Growth Equity LLC is Jewish Senior Life Foundation ...... 22 include at least gearing up to invest an additional Kelly Services ...... 17 two Michigan $200 million of its own funds as it Key Plastics ...... 17 companies and adds to its portfolio of companies. Michigan Economic Development ...... 3, 12 two diverse To help with that deal flow, Rock- Michigan Health and Hospital Association ...... 20 companies, and bridge has recruited two veteran Michigan Health Connect ...... 19 MSX International ...... 17 we have seen investment professionals from Oakwood Healthcare ...... 21 some bumps in much larger private equity firms: new business Plante Moran ...... 7 Scott Elkins from Quadrangle Part- Posco ...... 1 with Michigan ners in New York City, a private eq- Tomczak Rockbridge Growth Equity ...... 3 companies,” uity firm with $3 billion under The Roostertail ...... 30 said Tony Tomczak, DTE’s direc- management, as Strategic Staffing Solutions ...... 32 tor of supply chain management. vice president; TI Automotive ...... 17 Through August, DTE (NYSE: and Michael TriMas ...... 17 DTE) has increased spending Kaczmarek from TRW Automotive ...... 17 UAW Retiree Medical Benefits Trust ...... 28 with Michigan companies to $498 Pamlico Partners United Physicians ...... 3 million, including $100 million in in Charlotte, Southeast Michigan, up 49 per- University of Michigan Health System ...... 21 N.C., a firm with Visteon ...... 17 cent from $334 million for the $2.1 billion un- Wayne State University ...... 7 same eight-month period in 2011, der manage- Tomczak said. ment, as a senior About $70 million has been COURTESY OF BARTON MALOW CO. associate. Department index spent this year on renewable en- One beneficiary of DTE Energy Co. pledging to spend more with Michigan “We’re calling Prokop ergy, he said. companies is Southfield construction firm Barton Malow Co., which is doing it Rockbridge 2.0,” said partner BANKRUPTCIES ...... 6 DTE projects spending $575 wind farm work for DTE in the Thumb. Kevin Prokop. Rockbridge was co- BRIEFLY ...... 6 million this year in Michigan and founded in 2007 by Prokop, Dan BUSINESS DIARY ...... 18 plans to spend $700 million in Corp., which administers the Pure son, DTE’s chairman, president Gilbert and Brian Hermelin and Michigan in 2012, Tomczak said. Michigan Business initiative. and CEO, said in a statement. has invested about $200 million CALENDAR ...... 10 Since 2011, DTE’s $1.3 billion of “DTE Energy’s commitment to “This has been a tremendous thus far. It has completed eight CLASSIFIED ADS ...... 29 Michigan purchasing is estimat- the Pure Michigan procurement contribution to the emerging deals and currently has seven port- JOB FRONT ...... 28 ed to have created more than 6,800 initiative continues to be an en- market of suppliers that have im- folio companies. KEITH CRAIN...... 8 full-time jobs, according to the gine for growth in the communi- LETTERS...... 8 Michigan Economic Development ties that we serve,” Gerry Ander- See DTE, Page 32 See Rockbridge, Page 31 MARY KRAMER ...... 11 OPINION ...... 8 Crain’s on Twitter Miss the show? OTHER VOICES ...... 9 THIS WEEK @ Follow Crain’s staffers by On Monday mornings, Crain’s Publisher Mary Kramer speaks PEOPLE ...... 28 grabbing their handles at with Paul W. Smith on WJR AM 760. The segments are also WWW.CRAINSDETROIT.COM crainsdetroit.com/twitter. posted at crainsdetroit.com/marykrameraudio. RUMBLINGS ...... 34 WEEK ON THE WEB ...... 34 20121008-NEWS--0004-NAT-CCI-CD_-- 10/5/2012 4:37 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 8, 2012 Tierney, Campanelli discuss leadership change at Flagstar

The news last week that Michael So, what are the proverbial “other Tierney was replacing Joseph opportunities?” Campanelli as president and CEO Campanelli: We’ll see what hap- of both Troy-based Flagstar Bank pens. My wife has a few things and its holding lined up. I’m afraid she’s doing company, some planning right now. Flagstar Ban- corp Inc., was Flagstar is scheduled to go on trial the latest chap- in New York on Oct. 9 in a suit seeking ter in what has at last $82.4 million in damages over insurance on securities backed by Michael Tierney been a long ca- Campanelli Tierney and Joseph reer in local home equity loans made in 2005 and Campanelli, banking. now that the bank is profitable again 2006. Joe’s departure had nothing to Flagstar The last two and no longer in danger of being do with the lawsuit? Bancorp Inc. and a half delisted by the New York Stock Ex- Campanelli: None. It was all lega- years have change, his mission was done. True? cy stuff that happened well before I been particularly interesting for Campanelli: It is. This is part of a got here. We’ll get through it. Tierney, 57, who had spent 28 long, thought-out strategy. It’s The commercial loan portfolio that years at Comerica Bank in a variety great having a CEO who lives ultimately took down Peoples was put of roles, most notably as senior here, who lives and breathes together before you joined the bank. vice president of personal finan- Michigan. We were lucky Mike You had gone from one big bank, Com- cial services, overseeing the joined us. It was never in the cards erica, to a bigger bank, Chase, then bank’s 256 branches. for me to relocate here. I have a 12- decided to take the entrepreneurial At the beginning of March 2010, year-old son and an 18-year-old plunge by becoming a community Tierney was president and CEO at son, and my daughter is a senior at banker. That didn’t exactly work out Madison Heights-based PSB Group Boston College. the way you hoped. Inc., the bank holding company for Tierney: Joe and I hit it off right Peoples State Bank, one of the state’s away. The first night I met, I Tierney: I certainly got there at oldest community banks, having thought, “This is a guy with a great the absolutely wrong time in the been founded in Hamtramck in vision.” He’d put together a great economic cycle. I took over as 1909. The bank was then beginning team. What attracted both Joe and president and CEO on Jan. 1, 2007, to have serious trouble in its com- me to this company was that it was and started bringing in my own mercial loan portfolio and would be a company that was big enough to team. I recruited a chief lending of- shut down by state and federal regu- really matter. If we turned this ficer and a chief credit officer from lators in February 2011. around, we could be part of Michi- Comerica, and they began going But Tierney avoided that spiral gan’s turnaround. Flagstar had through the portfolio. After two downward, leaving the bank on been focused on raising some de- months, we know we had prob- March 16 to become president and posits to support the mortgage busi- lems. Right about then, our first CEO of Bluewater Bank Group, which ness, but it hadn’t been doing com- developer just stopped paying us. was formed to try to buy struggling mercial at all. Joe asked me to come The firm worth Citizens First Bank in Port Huron. in and grow retail, and we’ve You left in March 2010 to join Blue- On April 30, First Michigan Bank of grown it quite a bit. water. By then, you’d been working listening to Troy, now known as Talmer Bank for many months with regulators on Did you know from the start that and Trust, beat out Bluewater’s bid. People’s troubles. They must not have is the firm that you’d replace Joe as president and In February 2011, Tierney was held you to account for what was go- SM CEO? hired by Campanelli to head up listens to you. Tierney: We had a succession ing wrong there, because they invited Michigan operations and jump- plan. you to join the bid process for Citi- start Flagstar’s commercial lend- zens. SM Campanelli: But we tried not to ing operations. Last Wednesday, Talk to Foley. We’re listening. make it public. It was clear from Tierney: Without the blessing of Tierney and Campanelli, 56, who day one: Mike was Mr. Michigan. regulators, we wouldn’t have been had been brought in to turn the He had a wealth of knowledge and able to do Bluewater. We went to bank around in September 2009 by it would make for an orderly tran- New York and hit every private eq- its biggest investors, New York- For 170 years, Foley has made it our mission to sition. uity firm in town. We raised $240 based MatlinPatterson Thrift Invest- million and were able to make a find out exactly what our clients want and deliver ments LP, talked with Crain’s re- You’ve commuted here all along, bid for Citizens, but we lost out to porter Tom Henderson about the it. So when our Detroit clients asked for local haven’t you? Flying back to the First Michigan. And then we were change at the helm. access to the strength of a national law firm, Foley Boston area on Friday, flying back going to make a bid on another bank when I met Joe and joined recruited the city’s top talent to establish our Detroit The press release said Joe will re- here on Monday? sign on Oct. 31 to pursue “other inter- Campanelli: Three years on Delta Flagstar. office and provide trusted local advisors who could ests.” That often is code for “got is a long time. But it’s bittersweet. Tom Henderson: (313) 446-0337, leverage our national resources. It’s one more fired.” My guess is in this case, Joe re- I became a very big fan of Michi- [email protected]. Twitter: ally is pursuing other interests, that gan. @tomhenderson2 reason Foley received a top five ranking nationally for delivering exceptional client service in a recent survey of Fortune 1000 corporate counsel. Chase, Comerica deposit market shares rise; BOA’s falls Learn more about how Foley can add value to your business. Contact Chase Bank and Comerica Bank in- Comerica kept its No. 2 ranking ington Bank, which acquired the as- Detroit Office Managing Partner Daljit S. Doogal at [email protected]. creased their deposit market shares locally and in the state, with its sets of Dearborn-based Fidelity both in metro Detroit and Michigan shares rising from 21.09 percent to Bank after it was shut down by reg- Foley.com for the fiscal year that ended June 21.29 percent and from 13.8 percent ulators in March. Huntington 30, while Bank of America continued to 14.21 percent, respectively. grew its market share from 4.17 to see an erosion of market share BOA retained its No. 3 ranking percent to 4.54 percent and that began after it bought LaSalle in metro Detroit, although its mar- climbed two spots to rank No. 6 in Bank in October 2007. ket share fell from 12.77 percent to Metro Detroit. The Federal Deposit Insurance 11.36 percent. It retained its No. 4 Here are the other top 10 rank- Corp., which compiles the data, post- ranking statewide, with its share ings for metro Detroit as of June 
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Page 6 CRAIN’S DETROIT BUSINESS October 8, 2012

BANKRUPTCIES BRIEFLY The following businesses filed for Ⅲ Affiliated Medical of Dearborn building’s ground floor with the sociates, speaking on behalf of the PLLC, 2200 Monroe, Dearborn, vol- Retail tenants nearly fill ground Chapter 7 or 11 protection in U.S. addition of five retailers and a developers, Invest Detroit, Midtown Bankruptcy Court in Detroit Sept. untary Chapter 11. Assets and liabil- 28-Oct. 4. Under Chapter 11, a com- ities not available. floor of Midtown development restaurant. Detroit Inc. and The Roxbury Group. pany files for reorganization. Chap- Ⅲ Vendor Managed Solutions Inc., Developers of The Auburn, a A second restaurant is planned, Ground-floor tenants include ter 7 involves total liquidation. 850 Stephenson Highway, Suite 600, $12 million mixed-use develop- but the lease has not yet been final- Center City Properties, the manage- Ⅲ Lupo Stone & Cement Inc., 5848 Troy, involuntary Chapter 7. Assets ment in Detroit’s Midtown neigh- ized for that 800 square feet of ment company for the property; Bonn Court, Shelby Township, vol- and liabilities not available. borhood, said last week they had space, said Peter VanDyke, vice Royal Oak-based GoCycle Studios; untary Chapter 7. Assets: $1,700; lia- — Ryan Kelly president of Berg Muirhead and As- Hugh, a housewares and personal bilities: $7,744.99. nearly filled retail space on the accessories store; Nora, a design- oriented lifestyle store; Source Booksellers; and Top Soil, a vegetari- an restaurant. Developers last week opened leasing for 54 one-bedroom apart- ments and four studio apartments, which will be ready for move-in by Nov. 1, as part of the 56,000-square- foot building. Prices range from $920 to $995 for the one-bedroom units and from $780 to $830 for the studios. Want to grow Start with bankers who The Auburn, at Cass Avenue and Canfield Street, also includes your business? grew up in business. a 97-space, gated parking court- yard behind the residential and re- tail building. Don’t let our local, community focus — Sherri Welch fool you. We offer the sophisticated commercial lending products and experienced senior lenders the big 3 Southeast Michigan hospitals banks do, along with something honored for quality of heart care they don’t – the personal service and responsiveness only a community- Three hospitals in Southeast based bank can deliver. Michigan have been selected for Truven Health Analytics’ 50 Top Car- diovascular Hospitals for 2012. They are Providence Hospital and Medical Center, Southfield; St. Joseph Mercy Oakland, Pontiac; and Headquarters: 2301 West Big Beaver Road | Suite 525 | Troy, MI 48084 | 800.456.1500 | www.talmerbank.com St. Joseph Hospital, Ann Arbor. Providence Hospital is owned by Warren-based St. John Providence Health System. St. Joseph Mercy Oakland and St. Joseph Hospital are part of Ann Arbor-based St. Joseph Mercy Health System and Trin- ity Health in Novi. The hospitals are recognized for lower rates of mortality and com- plications and higher quality than comparable hospitals. The survey previously was conducted by Thom- son Reuters, which was acquired by Truven in July. Patients in the study were diag- nosed with heart failure and heart attacks and received coronary by- pass surgery or percutaneous car- diovascular interventions (PCI), including angioplasties. — Jay Greene UM project aims to boost advanced materials design A $12.3 million project led by a University of Michigan professor aims to boost the design of ad- vanced materials. UM announced the effort, led by John Allison, a professor of mate- rials science and engineering, last week. The project is funded by an $11 million, five-year grant from the U.S. Department of Energy and $1.3 million from the university. It aims to cut the time it takes to de- velop such materials. The grants establish a DoE Software Innovation Center called the Predictive Integrated Structural Materials Science Center, or PRISMS. The federal funding comes from the Materials Genome Initiative, which aims to speed up the ways scientists and engineers discover, develop and manufacture new ma- terials. — The Associated Press 20121008-NEWS--0007-NAT-CCI-CD_-- 10/5/2012 4:52 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 7 Wayne State looks to renew NIH funds for perinatology program

Walter and Marilyn Wolpin Comprehensive BY CHAD HALCOM Breast Care Center CRAIN’S DETROIT BUSINESS NIH FUNDING TO WAYNE STATE Funding awarded by the National Institutes Wayne State University is at a record level of Coleman and Shirley Mopper of Health to Wayne State University is now Pancreatic Cancer Fund research funding for various programs at more than a 15-year high. The fiscal year through the National Institutes of Health — but ended Sept. 30. that could be in jeopardy if a 10-year con- R&D Total NIH tract to fund the Perinatology Research Awards contracts funding Branch at Hutzel Women’s Hospital is not re- 1997 225 $7.96M $51.93M newed by Oct. 31. 1998 232 $6.76M $51.03M Wayne’s largest single NIH-funded pro- 1999 250 $5.61M $53.4M gram is the perinatology program, staffed by 2000 249 $8.05M $61.82M Wayne State physicians at Hutzel in the De- 2001 263 $64.06M $65.48M Amber K. and David B. Flint Breast and Rose Family Adaptive Oncology Imaging Suite troit Medical Center and funded under a $167 Prostate Cancer Research Fund 2002 269 $0 $66.97M million contract that began in 2002 but laps- 2003 261 $71.84M $88.25M es at the end of this month. The Perinatology Research Branch con- 2004 239 $17.32M $87.58M tract supports more than 120 jobs at the 2005 234 $68.54M $76.92M DMC. 2006 215 $4.89M $68.99M Nearly all the NIH-funded Wayne State 2007 206 $18.26M $81.35M programs, such as perinatology, are through 2008 197 $12.2M $73.73M the School of Medicine. 2009 174 $54.91M $66.82M In the federal government’s fiscal year, 2010 179 $56.85M $79.98M which ended Sept. 30, Wayne State received 2011 194 $11.56M $76.6M nearly 200 awards totaling $64.9 million for 2012 218 $23.63M $64.92M* research grants, training grants and fellow- ships, according to NIH program data. The * Based on incomplete NIH tabulation. Including R&D contract obligations, figures from USAspending.gov 2012 NIH data do not yet include the catego- puts the total at $88,553,459. The Cunnington Family ry of research and development contracts, Comprehensive Lung Cancer Center Source: NIH.gov Rose Assarian Radiation which officials said the agency is still com- Sylvia and Edward Hagenlocker Cancer Genetics Research and Program Support Fund Oncology Waiting Room piling. However, the Web database USAspend- Plante Moran Financial Advisors in Southfield. ing.gov, maintained by the federal Office of DMC was purchased by Nashville for- How can people Management and Budget, reports 21 separate profit health giant Vanguard Health Systems R&D contract and delivery order awards to Inc. in a 2010 transaction Wayne State during fiscal 2012 — for an valued at nearly $1.5 bil- who never went to overall funding total of more than $88.5 mil- lion, including $365 mil- lion in 218 awards. lion cash. Colarossi would That’s up from $76.6 million in fiscal 2011 not discuss the DMC’s val- and just under $80 million in total funding in uation but said as a gener- medical school 2010 across all spending categories. In fact, al rule, grant- and con- it’s more than any of the past 20 budget tract-funded research years, according to NIH data. The previous programs contribute to a find a cure for cancer? high was $88.2 million in fiscal 2003. hospital’s value — some The perinatology branch alone accounted more so than others. Colarossi Behind the innovation and lifesaving research, the for $16.2 million of the $23.6 million R&D “For research, it comes contracting total for the past year, according down more to whether the research con- renowned cancer doctors, and the leading-edge to the university and federal data. tributes to the core mission. If so, that can technology at Beaumont are some very special people. It conducts clinical and basic research in have a low contribution to value,” he said. perinatology medicine and related fields to “It’s very possible that the hospital as a whole Community and business leaders who inspire us by develop diagnostic and preventive tools to funds research in terms of its cost, as opposed their very commitment to us. By their energy and their help reduce premature delivery, infant mor- to the other way around, so it’s not necessari- generosity. By their desire to help people they’ll tality and birth defects. ly a profit center. But sometimes for-profit The Eunice Kennedy Shriver National Institute corporations are spun off from other kinds of never meet. of Child Health & Human Development solicited research (such as commercialized technolo- bids for a new perinatology research con- gy) that then go back into the investment port- Their gifts have allowed Beaumont to become a tract in June and expects to reach a decision folio. That can be more of a value contribu- national leader in the early detection and accelerated by Nov. 1, said Bob Bock, press officer at the tor.” treatment of breast, lung and prostate cancers. To fund institute. Perinatology would likely be a more mis- Wayne State, which has maintained the sion-focused research program for Hutzel, research that enables us to predict a patient’s risk for contract funding for perinatology for 20 since it helps train future physicians and cancer based upon genetics. And to offer every patient years, applied for the new contract Aug. 8 scientists and helps Wayne State offer moth- the very best chance to beat cancer, which means more and is awaiting word from the NIH on or be- ers and their children in Southeast Michi- hope than ever before. fore Nov. 1. Previously, the federal agency gan cutting-edge patient care. has passed over such competitors as Yale Uni- Behind the perinatology program at Wayne Most of all, these people prove that it doesn’t take a versity, the University of Pittsburgh and the Uni- State, the second largest is the SEER (Surveil- versity of Miami to fund the program at lance, Epidemiology and End Results) pro- medical degree to fight cancer. Hutzel, and the new contract has received gram funded by the National Cancer Institute, other bidders, according to federal contract also an NIH agency, at about $4.6 million per All it takes is a heart. data. year. Matt Lockwood, director of communica- That program dates back to 1973, said Ann tions for Wayne State, said the university Schwartz, professor of oncology at the uni- will not discuss the Perinatology Research versity’s School of Medicine and a deputy di- Branch program while the application re- rector and executive vice president for re- view is pending. search and academic affairs at the Karmanos Silvia Zoma, a public relations manager Cancer Institute, and administrator of the A Not-for-Profi t Provider for Hutzel at DMC, also said the company SEER grant program. management would not comment on perina- “But we do have other contracts and tology funding. grants with NIH,” she said. “There are also Well-respected research programs within times the NIH changes the mechanism un- a hospital system can contribute to its value der which this program is funded. They for prospective buyers, since a portion of have changed the method used, although the Find out how you can save lives, too. If you would funding for most research programs is set funding and the purpose of it are pretty con- like to make a gift, please go to our website at aside for overhead costs that can contribute sistent over time.” foundation.beaumont.edu or click on the code to the hospital’s profitability, said Tony Co- Chad Halcom: (313) 446-6796, with your phone. larossi, partner for health care consulting at [email protected]. Twitter: @chadhalcom 20121008-NEWS--0008-NAT-CCI-CD_-- 10/5/2012 4:37 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS October 8, 2012 OPINION Biz has campaign work cut out for it n Michigan, “ballotmania” clearly is more front-and-center in terms of political advertising than the presidential race I itself. Political groups are doing their best to scare state voters into voting yes (or no) on six ballot questions Nov. 6. Many of the pro- posals usurp traditional legislative approaches to lawmaking. Unions are battling business groups on Proposals 1, 2 and 4 (emergency manager law, collective bargaining guarantees and forced unionization of home health care workers). Busi- ness and Gov. Rick Snyder are battling a wealthy monopoly on Proposals 4 and 6 (the two-thirds majority vote requirement on legislative tax proposals and the new international bridge crossing), and battle lines are fuzzy on Proposal 3, which would more than double the amount of renewable energy that utilities must offer to customers. Crain’s will publish a complete “business guide” to the election on Oct. 22. But in general, business groups are pro- moting this mantra: “Vote ‘Yes’ on Proposal 1, and ‘No’ on the rest,” reserving dollars to defeat the labor-leaning proposals. And though business groups are almost uniformly opposed to Proposal 6 and in favor of a second crossing, relentless ad- vertising from interests tied to the owner of the Ambassador Bridge are drowning those voices out. Business won big in the “free speech” decision that has un- LETTERS TALK ON THE leashed the power of super PACs. So where is the money to promote a sensible investment in Michigan’s position as an in- ternational trade center? Moroun’s actions taint legacy WEB Editor: Although I agree with Keith Crain’s Detroit Business From www.crainsdetroit.com When biz connects, it wins Crain’s column (“Now it’s time to welcomes letters to the editor. sell the bridge, Matty,” Oct. 1) that All letters will be considered for Re: Gunfire in Detroit park Buy local. publication, provided they are it’s time for the polarizing figure of I am relieved that no one was That phrase has guided Michigan consumers to look for lo- Matty Moroun to leave the bridge signed and do not defame individuals or organizations. hurt. Welcome to the “D,” little battle and possibly focus on his, and cally grown or produced food and other products. But when Letters may be edited for length brother. Eventually it will be our, greatest eyesore, the train sta- businesses buy from one another, jobs can really grow. and clarity. rolling off your back and you will That’s the theory behind one of Gov. Rick Snyder’s most ef- tion, I’d like to suggest we consider be cracking jokes, too. Detroit is the Moroun contribution to our Write: Editor, Crain’s Detroit fective programs, Pure Michigan Business Connect. Business, 1155 Gratiot Ave., like a rose. And like every rose, it community as it compares to our has thorns. The sad thing is that Announced nearly 18 months ago, the project encourages Detroit, MI 48207-2997. other prominent families in Detroit. while that was happening, the Email: [email protected] Michigan companies to increase the dollars spent with Michi- Could any of us possibly imag- media were instigating a lynch gan-based vendors and contractors. ine if Mike Ilitch, Peter Karmanos mob over who the police chief is As Jay Greene reports on Page 3, DTE Energy pledged to in- or Dan Gilbert behaved like Matty lions he’s spent on misleading ads, dating and sending him home to crease spending by $750 million through 2016. Its policy now Moroun? I’m not sure I’ll ever un- paid stooges and politicians being not do his job. Can anyone focus derstand how someone so fortu- requires at least two Michigan companies and two minority offered instead as a bridge to help on what’s important for just a nate could have so little regard for shape our city’s future. few minutes, please? vendors to be part of any bid process. DTE buys everything helping others or for shaping his Ultimately, we would all have Niki Brown from construction to maintenance services, staffing to technol- lasting legacy to be dramatically been so much better served, espe- ogy consulting. different to what it is now. cially Matty. I’m not sure how long Re: Red Wings arena still in plans One Detroit company, Strategic Staffing Solutions, landed Matty will probably, and hope- it will take Moroun to finally re- Build the new arena at the old a third contract with DTE for customer service consulting, fully, finally lose his bridge battle. shape his family’s legacy in our The campaign of deceit is trans- town, or if he will even want, or be corner. I think it would be great to adding 100 new employees. parent enough for most anyone able to. see a modern arena with refer- If more companies followed DTE’s lead, it could take a bite who pays attention. It would just Michael Doyle ence to the history of Tiger Stadi- out of Michigan’s jobless rate. be nice to envision the tens of mil- Grosse Pointe Farms See Letters, Page 9 KEITH CRAIN: Detroit needs a winner; Tigers step up The economy is lousy. The auto- lies ahead for the see the Red Wings play could win just about every award nomic draw for development, just mobile industry seems to be recov- Tigers. at all this season — this year; Prince Fielder, who’s fol- like advanced education and cul- ering, but Europe could drag the But we had an excit- hockey is in its fourth lowing in his father’s footsteps in ture. It gives our city a great ap- Detroit automakers down. Unem- ing finish to the season, labor dispute since Detroit; and our much-loved pitch- peal for economic development. ployment, despite Friday’s report, and we’re battling to 1990. And the Lions ers, starting with Justin Verlander. I can only hope that we do well is still too high. stay in the playoffs for haven’t exactly been The Tigers have given this city in our baseball playoffs. The city We’ve got a political mess in as long as possible. producing the results plenty to cheer about. It’s great for needs a boost, and there is no Southeast Michigan that doesn’t We’d all love to see that we had hoped for morale as well as the economy. A doubt that the Tigers can supply look like it will be solved any time our Tigers head for the when the football sea- lot of money will be spent down- the excitement we need right now. soon. World Series, but there son began. It’s too early town as long as we’re in the race, There are a lot of dollars-and- But our baseball team is in the are a lot of mountains to to think about the Pis- which everybody hopes will go cents reasons to hope that our playoffs, and that’s a wonderful climb before that hap- tons, and even our col- right into the World Series. baseball team does well, but the thing. pens. lege teams seem to be Our town, in spite of all its prob- most important reason is that This was written before the Yet the excitement for our city struggling this year. lems, is blessed with a great selec- we’re all fans. We want to see our weekend games. I couldn’t predict and the entire state is unmatched. So let’s celebrate the Tigers — a tion of professional and college team do well. their outcomes, much less what Especially since we’ll be lucky to team led by Miguel Cabrera, who sports teams. This is a great eco- Go, Tigers! 20121008-NEWS--0009-NAT-CCI-CD_-- 10/5/2012 10:42 AM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: 3 more signs show state biz is recovering

More evidence is sup- ter significantly trailing business conditions. Companies percent, compared to a 56.4 percent nificantly, rising from an average porting the case that the U.S. from 2002 such as Lear, Pulte, Masco and return for the U.S. Merrill Lynch of 382 in 2008 to 251 in 2012. In- Michigan business condi- through 2009, Michigan’s CMS Energy, to name a few, are High Yield index, for the three- deed, Borg Warner, one of the tions are growing faster combination of job and in- rated below investment grade or year period ending June 30, 2012. most profitable auto companies, than the national aver- come has exceeded U.S. high yield by the credit rating Ⅲ Michigan’s corporate rank- was ranked 19th in 2012 — the ages. What is perhaps growth for the past eight agencies. A portfolio of 14 Michi- ing in the most recent Barron’s first time a Michigan company most encouraging is the quarters. The state has gan corporate high-yield bonds top 500 publicly traded companies has cracked the top 25 since the argument that the faster not witnessed that advan- had a total return (yield and price — based on corporate cash flow survey began. growth is not simply a tage versus the U.S. since appreciation) of 8.5 percent in the return on investment and rev- These three diverse measures mediocre rebound from the mid-1990s. first half of 2012, compared to a 7 enue growth — has meaningfully further confirm the more recent the depressed levels of the Ⅲ The performance of percent return for the Merrill improved in the past three years. improvement in Michigan’s busi- Great Recession, but David Sowerby Michigan’s corporate Lynch U.S. High Yield Bond index. In the May 2012 Barron’s top 500 ness conditions and, importantly, rather stems from structural im- headquartered, high-yield bond The favorable performance for U.S. companies, 16 Michigan pub- suggest the longer-term prospects provements that should help en- market has exceeded the national Michigan’s high yield corporate licly traded companies made the for Michigan to compete have hance the opportunity for Michi- indexes. The high-yield bond mar- bonds in 2012 has prevailed now list, a comparable number from meaningfully increased. gan to compete in the long run. ket is a gauge of economic sensitiv- for the past three years. The same their annual rankings in 2008 and David Sowerby is portfolio man- Three critical data measure- ity and often leads even the stock portfolio of Michigan’s high-yield 2009. However, the rank of Michi- ager in the Bloomfield Hills office of ments reinforce the improved market as a barometer of future corporate bonds has returned 69 gan companies has improved sig- Loomis Sayles & Co. LP. business conditions. They are: Ⅲ Michigan vs. U.S. prosperity growth: I define prosperity as sim- ply the combination of job growth plus personal income growth. Af-

TALK CONTINUED ■ From Page 8 um by incorporating the existing fence and flag pole. BrandonP

Re: Other Voices: Cut city income tax Taxes don’t determine where young talent lives. Services do. If you can show you can cut taxes and im- prove mass transit, cut the grass in city parks, have better police and fire protection, put on public concerts, keep museums and zoos open and flourishing, etc., with lower taxes, then by all means. But so far, cutting state taxes has meant cutting state support for cities, and the result seems to be that we have to cut services. Young talent moves to high-cost and -tax Chicago, Minneapolis, New York far more often than Jackson, Miss., a low-tax location that should be winning the war for talent if that’s what matters. It doesn’t. MWAC

Re: Impact of Duggan-Bing race on biz Bing will not run for re-election. His experience as mayor has been his version of hell on earth. Tom Barrow and Hansen Clarke will run. As of today, Benny Napoleon, Clarke or Barrow would get through the primary to the gener- al. As would/will Mike Duggan. Duggan would be the presumed fa- vorite based on funding, brains, organizational skills and tenacity. But the result would be uncertain. YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. Curtis Blessing You get to know your customers, treat them fairly, and build relationships. Don’t you deserve that same kind Re: Keith Crain on selling the bridge of treatment from your bank? With Citizens Bank, you’ll get the right solutions and All of us have wondered how much money one man needs ... and products from people with the experience to know what’s right. After all, we’ve been how much damage can one man do around over 140 years, helping businesses just like yours grow. So if you want a bank to a neighborhood or a city by such BECAUSE WITH US, IT’S PERSONAL. a divisive campaign. Time to go do that shares your passion, call us. something else. Thanks for saying what so many of us have been thinking. $)&$,*/(  4"7*/(4 r -0"/4  -*/&4 0' $3&%*5 r .&3$)"/5 4&37*$&4 Keith 53&"463: ."/"(&.&/5 r 41&$*"-5: '*/"/$*/( r 8&"-5) ."/"(&.&/5

It is about time that someone in this town convinces Matty it is 1-800-946-2264 time to move forward. Matty is worth millions. He should help the CITIZENSBANKING.COM/BUSINESS citizens of Michigan and throw his money at the city of Detroit. Denny Zimmer 20121008-NEWS--0010-NAT-CCI-CD_-- 10/5/2012 11:12 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS October 8, 2012

CALENDAR TUESDAY its global presence. Michigan First member, $175 nonmember, $100 able for DEC members. Website: CRAIN’S PAYS TRIBUTE Credit Union, Lathrup Village. $35. board-ready participants. Contact: www.econclub.org. OCT. 9 Contact: Tonya McNeal-Weary, (866) (313) 578-3846; email: cthompson@ 490-6233; email: [email protected]; TO NDER inforummichigan; website: Successful Marketing via Facebook. DEC Luncheon. 11:30 a.m.-1:30 p.m. De- 40 U 40 website: www.mafedetroit.org. www.inforummichigan.org. troit Economic Club. With John 11:30 a.m.-1:30 p.m. Oct. 18. Inforum. Join Crain’s Detroit Business in With Carolyn Everson, Facebook’s vice Zogby, managing director, JZ Analyt- celebrating the accomplishments ics. Detroit Athletic Club, Detroit. $75 Business Breakfast. 8-9:30 a.m. Livo- president of glob- of 40 of Southeast Michigan’s THURSDAY nia Chamber and Greater Farmington al marketing solu- nonmembers, ticket discounts avail- brightest stars younger than 40, able for DEC members. Contact: Mag- OCT. 11 Area Chamber of Commerce. With tions, and Scott 5:30-9 p.m. Oct. 24 at Shriners Michigan Economic Development Monty, head of gie Sisco, (248) 626-0006; email: Veterans Doing Business with the [email protected]; web- Silver Garden Event Center, Corp. President and CEO Mike Finney global social me- State. 2-4 p.m. Michigan Department site: www.econclub.org. Southfield. The winners of Crain’s addressing Michigan’s economic dia, Ford Motor 40 Under 40 were highlighted in the of Technology, Management & Bud- progress and the success of the Pure Co. Cobo Center Oct. 1-7 issue of Crain’s Detroit get, VetBizCentral. Business-owner Michigan campaign. Farmington Riverview Ball- Marketing Roundtable — The Innova- Business and at veterans can learn the elements need- Hills Manor, Farmington Hills. $20 room, Detroit. $50 tor’s Dilemma. 5-7 p.m. Ann Arbor www.crainsdetroit.com. ed for a quality proposal to do busi- member, $30 nonmember. Contact: Inforum mem- Spark. With Diane Durance, Great ness with the state of Michigan. Con- Tickets are $40 for 40 Under 40 Laura Sweeney, (734) 427-2122; email: bers, $70 non- Lakes Entrepreneur’s Quest. Spark stitution Hall, Lansing. Free. Contact: [email protected]; website: members. Con- Central, Ann Arbor. Free. Contact: alumni, $45 for guests in groups of Jenni Riehle, (517) 335-6633; e-mail: www.livonia.org. Everson tact: (877) (734) 761-9317; website: www. 10 or more, $50 for CDB [email protected]; website: 633-3500; website: annarborusa.org. subscribers, $75 with a special Michigan.gov/micontractconnect. www.inforummichigan.org. CDB subscription offer and $90 for nonsubscribers. SATURDAY APACC Salute to Excellence Award Din- OCT. 13 The Art of Wine. Vintner’s private re- WEDNESDAY For more information, call (313) ner. 5:30-9 p.m. Asian Pacific American ception 6-7:30 p.m., silent auction re- OCT. 10 446-0300 or visit Chamber of Commerce. With Tony Tom- New Venture for Veterans. 8:30 a.m.- ception 6:30-8 p.m., gala dinner and www.crainsdetroit.com/events. czak, director of supply chain manage- noon. Michigan Small Business & auction, 8-10:30 p.m. Oct. 20. General Coffee & Capital. 8-9 a.m. TechTown. ment, DTE Energy. Celebrate success- Technology Development Center, Motors Co., Cadillac division. Wines, Casual discussion on microloans field Chamber. Discover opportuni- ful Asian business professionals and Eastern Michigan University, VetBiz- automobiles and art converge in an available to Detroit retailers. Café con ties to partner with nonprofits and Asian-owned companies. The Henry, Central. Program targets aspiring event benefiting the College for Cre- Leche, Detroit. Free. Contact: Diane make a difference in the community. Dearborn. $60 APACC and strategic and early-stage entrepreneurs ative Studies. GM Design Center. Love-Suvada, (313) 483-1302; email: With Mark Hollis, Michigan State Uni- partner level-one members or $450 through a 10-week business develop- $5,000 benefactor level includes admis- [email protected]; website: versity athletic director, and Tony table of eight; $75 nonmembers or $600 ment class featuring the New Venture sion for two to all events; $1,500 pa- www.techtowndetroit.org. Michaels, president and CEO, The Pa- table of eight. Contact: Sarah Lalone, curriculum. EMU Livonia campus. tron, single admission to all; $500 sup- rade Co. Moderated by Jackie Paige, (248) 844-4100; email: [email protected]; Free to U.S. veterans. Contact: Paul porter, single admission to dinner, 5 Keys to Achieving Fiscal Fitness. 9 WJBK-TV2. Radisson Hotel, Bloom- website: www.apacc.net. Nucci, (734) 487-0902; email: auction. Contact: (313) 664-7464; email: a.m.-noon. Michigan Small Business field Hills. $40. Contact: Andrea [email protected]; website: www. [email protected]; & Technology Development Center, Kaczmarek, (248) 644-1700, ext. 24; vetbizcentral.org. website: www.collegeforcreativestud- Macomb County Department of Plan- email: [email protected]; website: FRIDAY ies.edu/diwa. ning & Economic Development. Veloc- www.bbcc.com. OCT. 12 ity, Sterling Heights. $25. Contact: COMING EVENTS Driving Real Estate. 11 a.m.-1:30 p.m. Jamie Judson, (586) 469-5118; email: Export Opportunities for Women En- Become a Boardroom Insider. 7:30- Detroit Economic Club Luncheon. Oct. 19. Commercial Real Estate [email protected]; web- trepreneurs. 9-11 a.m. Michigan Asso- 11:30 a.m. Inforum. With Lisa Pick, 11:30 a.m.-1:30 p.m. Oct. 15. Detroit Women. With Donna Inch, chairman site: www.misbtdc.net. ciation for Female Entrepreneurs. principal, Miller, Canfield, Paddock Economic Club. With former Gov. and CEO, Ford Motor Land Develop- Learn about government agencies and and Stone PLC; and Laurene Horiszny, John Engler. Westin Book Cadillac, ment Corp. Dearborn Inn, Dearborn. Community Leadership Luncheon. 11 services that can help a company en- chief compliance officer, BorgWarner Detroit. $55 guests of members, $75 $45 CREW member, $65 nonmember. a.m.-1:30 p.m. Birmingham Bloom- ter global export markets and expand Inc. Miller Canfield, Troy. $125 nonmembers. Ticket discounts avail- Register by Oct. 16 at crewdetroit.org.

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October 8, 2012 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Fletcher made much more than a dime’s worth of difference

This week, thousands of Michigan shoppers will lug bags or boxes of returnable cans and bottles to grocery stores to reclaim deposit money. Michigan’s bottle law, which took effect in 1978, was a citizen referendum. A powerful lobby of soft drink and beer makers and distributors blocked legislation, so conservationists gathered 400,000 petition signatures and asked voters in 1976 to approve it. The first PHOTO: MARGE BEAVER signature was that of Gov. William Milliken — who had, in 1973, appointed Ypsilanti’s Peter Fletcher to the highway board. By 1975, he chaired the commission, which endorsed the bottle bill. Fletcher became a leading advocate of the drive, telling Stroh Brewery Co. Chairman Peter Stroh in a public meeting, “Nothing is more Great Lakes neighbors frustrating to this department than having to go out and clean up after your industry.” Fletcher, who died late last month in his beloved hometown of Ypsilanti, was proud of his support for that bill. Michigan wades in to catch “I’m just a broken-down bill collector from Ypsilanti, Michigan,” he would say by way of introduction. The ‘blue economy’ wave bill collector part was right; he owned bet on wet the Credit Bureau of Ypsilanti. The “vanity” license plate on his Cadillac Muskegon’s read: PAY NOW. BY ROD KACKLEY SPECIAL TO CRAIN’S MICHIGAN BUSINESS deep-water “He was one of those renaissance channel and guys who knew history and language harbor (top and cared a lot about both. He was ichigan’s more than 3,000 photo and at always polite, but devastating in his miles of Great Lakes shore- left) off Lake sallies,” said longtime friend Mary line — combined with all Lukens, who knew Fletcher for 40 M Michigan can years. of its rivers, streams and inland accommodate oceangoing Many accolades have been paid for lakes — hold the potential to freighters. his political acumen as an adviser to wash the rust off the state. four Michigan Republican governors. And remembered, too, was his role in In neighboring Wisconsin and printing a “special” edition of Ontario, that potential is starting Michigan’s official, foldable maps to be realized for this “blue econ- that listed two tiny Ohio towns near the Michigan border: Goblu and omy,” where water is the fuel for ARN BOEZAART/MICHIGAN ALTERNATIVE AND RENEWABLE ENERGY CENTER Beatosu. economic development. Muskegon He was generous — always For now, Michigan trails both. son, president of the privately — to people and causes he Lakeshore Chamber of Commerce, believed in. He mentored many young Leading the initial efforts in people in their political careers. And the state are Muskegon County hope to realize the promise of Brookings Institution he had an ethical core that could on the west side and Macomb what a 2012 spot a phony — or a crook — a mile report on the Great Lakes de- away. County on the east — without scribed as a “$500 billion-and- Which made him the perfect choice much help from Washington or to chair the audit committee at the Lansing and relatively little coor- growing global water technology Bank of Ann Arbor, the bank created business sector.” in 1996 by three Ann Arbor dination between the counties, COURTESY OF GRAND VALLEY STATE UNIVERSITY luminaries: Bill Martin, the late This new economic model in- which are separated by a three- Grand Valley State’s Annis Water political pollster Bob Teeter and cludes everything from the con- hour trip on I-96. Resources Institute is one of eight Borders Books co-founder Tom troversial notion of selling water Borders. Fletcher was a director of “However, by raising the level university-based water research facilities the bank from 1996 until he went to of what we are doing, we are in Michigan. to thirsty states and even over- emeritus status this year. hoping the state agencies as well manager at the Macomb County De- seas, to repairing aging water and The best phrase I can summon is sewer systems, to finding new one I heard him speak on rare as the coordinating federal agen- partment of Planning & Economic De- occasions. Peter was truly sui cies will start to take notice,” velopment. sources of energy in the water generis, one of a kind. said Gerry Santoro, program Both Santoro and Cindy Lar- See Wave, Page 12 20121008-NEWS--0012,0013-NAT-CCI-CD_-- 10/5/2012 10:35 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 8, 2012 CRAIN’S MICHIGAN BUSINESS Wave: Betting on wet ■ From Page 11 and algae of lakes and rivers, to erator, scheduled to open along building new tourism and recre- Lake Michigan in early 2013. ation centers — along with the re- Milwaukee economic developers search needed to tap these revenue saw the opportunity several years streams. ago, said Dean Amhaus, executive While Macomb County’s efforts director of the water council. focus on recreation and tourism, Milwaukee, Amhaus said, had Muskegon offers, among other two things going for it: lots of heavy things, the only major commercial manufacturing and plenty of com- port on the east panies making side of Lake beer. That meant Michigan. We ... recognized they already had No one is pre- “ manufacturers dicting how that this is a $400 making the me- many jobs the ters, valves and blue economy billion global devices that are Reliable, modernized grid could create, be- part of the water- cause it is still so technology market related indus- fractionalized. tries. Energy is essential to the way we live, work and play. But it appears and decided that Along with poised to take on heavy manufac- greater impor- Ontario needed to be turers came pol- ITC operates, builds and maintains the region’s electric tance, given U.S. lution, so anoth- government pre- a player. er industry was transmission infrastructure. We’re a Michigan-based company dictions that 36 ” spawned to “help states could suf- Brad Duguid, Ontario minister of those companies working hard to improve electric reliability and increase electric fer water short- economic development and innovation clean up their ages next year, act,” he said. transmission capacity throughout the Midwest. following this year’s drought. “It is only in the last six years “Water scarcity is a huge driver, that we turned the picture 90 de- and it is not getting better,” said grees and saw it differently,” Chris Webb, co-director of the Engi- Amhaus said. “We saw that there neering Society of Detroit. “Major was a connection between these www.itctransco.com companies making semiconduc- companies, all around water.” tors in Spain, India and Asia are The Milwaukee Water Council now facing community competi- has blended that private-sector tion for potable water.” commitment with the Great Lakes Said Santoro: “The rest of the Water Institute — the largest fresh- nation still refers to us as the Rust water research institute on the Belt. But 10 years from now, when Great Lakes. It includes the Univer- they have no water supply because sity of Wisconsin-Milwaukee School they have built out so much there of Freshwater Sciences is no water table left, who are they Ontario’s minister of economic going to come crying to?” development and innovation, Brad On the east side of the state, the Duguid, said the move toward a Michigan Economic Development blue economy in his province fol- Corp. is involved in developing wa- lowed a similar path. ter technologies, pumping $4 mil- “Over the course of time, we had lion each into a project in Flint to developed a great deal of domestic develop biogas from municipal expertise on clean-water technolo- wastewater and another project in gy,” Duguid said. “So we took that Alpena that involves the biorefin- strength, recognized that this is a ery conversion of industrial waste- $400 billion global technology mar- water from a hardwood processing ket and decided that Ontario need- plant into ethanol and other chemi- ed to be a player.” cals that can be reused. Is the strategy to launch busi- An additional $1 million in nesses, grow second-stage compa- MEDC money has gone to H2Oppor- nies or attract businesses from tunities in Oakland County. Anoth- outside Ontario? er key facilitator in the state is Sus- “It is all of the above,” Duguid tainable Water Works, a water said. technology incubator in Wayne The MEDC’s Pezza said his State University’s TechTown. agency is working “directly and But the MEDC’s director of wa- indirectly with numerous compa- ter technologies, Gil Pezza, admits nies” including Miya, an Israeli- that “many technologies never based company that recently reach the market (in Michigan) for opened an office in Michigan lack of financing for demonstra- through its Canadian company, tion projects.” Veritec. In Ontario, in contrast, the provincial government has invest- ed more than $49 million in more Washington’s response than 100 water-related projects Democratic Sen. Carl Levin and over the past several years. The his Republican colleague from Illi- province claims more than 900 nois, Mark Kirk, cited the impor- businesses and 22,000 employees tance of the Great Lakes to the re- in its water industry. gion’s economy when, just before Ontario also has invested $8.9 Congress recessed for the Novem- million in four projects, including ber elections, they introduced legis- one involving new water treat- lation that would formally autho- ment technologies that are less ex- rize the Great Lakes Restoration pensive and time-consuming than Initiative, which includes a federal current cleanup procedures. inter-agency program designed to And the Wisconsin Economic De- address the most significant prob- velopment Corp. has committed lems in the Great Lakes ecosystem, $750,000 over three years to help The bill also would reauthorize startups pay their rent in the Mil- the Great Lakes Legacy program, waukee Water Council’s Water Tech- which supports the removal of nology Research and Business Accel- See Next Page 20121008-NEWS--0012,0013-NAT-CCI-CD_-- 10/5/2012 10:35 AM Page 2

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS

From Previous Page wind turbine farms on Lake Michigan er walk and boat launch in Heritage ter remains in exploratory talks as kegon and Macomb counties, Tra- contaminated sediments, and the as well as doing more to publicize Park. Several more boat launches the two schools and Macomb verse City and Detroit, all with sig- Great Lakes National Program Office, Muskegon’s deep-water port, which could be opened soon in that city County clarify its function. nificant waterfronts, and then which handles Great Lakes mat- can handle oceangoing vessels. and Sterling Heights, Santoro said. Macomb County Executive “clean up the water and the water- ters for the U.S. Environmental Pro- Another facet of Muskegon He also said Mt. Clemens offi- Mark Hackel has said he envisions fronts. Redevelop them and con- tection Agency. County’s blue economy effort is the cials are reopening the old down- the center as part of a regional eco- serve them.” Macomb and Muskegon county Grand Valley State University Annis Wa- town boathouse at the city’s public nomic development strategy for “This is expensive work,” Austin officials are pushing forward — ter Resources Institute. It is involved marina and could contract with a Lake St. Clair. said. “Local communities usually with or without Lansing and Wash- in a number of research programs, canoe livery for day trips out of the can’t do it alone. It helps to have ington. including the possible use of algae city’s downtown district. Movement in Michigan some sources of state and federal Muskegon officials are focusing to create biofuels. The institute is New Baltimore, with its two infrastructure support.” efforts on Lake Michigan and one of eight university-based water public beaches along Lake St. John Austin, a member of the While public sector support has Muskegon Lake research, in addi- research facilities in Michigan. Clair and historic downtown dis- Michigan State Board of Education been important to Ontario’s effort tion to recruiting manufacturers In Macomb County, Santoro is trict, could see the addition of art and a co-author of a Brookings In- to foster more water-centric inno- that depend on a ready source of focused on enhancing recreation, galleries, specialty shops, bed-and- stitution study of the Great Lakes vation, Duguid said, government clean water. Food processing is at tourism and all the business op- breakfasts or small hotels, along region, said even more could be ac- officials have not led the effort. the top of that list, but every manu- portunities that are part of Ma- with a marina now under con- complished with an increase in That has been up to the private sec- facturer depends on clean water. comb’s blue economy initiative. struction. state government support. Last tor, while the government is there “Classic auto assembly plants His team works with the govern- Santoro’s team is also looking month, Austin was appointed to “to stimulate growth in the sector use the equivalent of two Detroit ments of six communities that are at creating a walkable marina dis- head the new Michigan Economic and provide some incentive.” Zoo water towers or over 2 million on the main branch of the Clinton trict — “maybe not on the scale of Center, part of the nonprofit Prima Duguid holds out the possibility gallons of water each day,” said River — Sterling Heights; Shelby, Navy Pier, but something of signifi- Civitas Foundation, an economic de- of partnering with Michigan to the Engineering Society’s Webb. Clinton and Harrison townships; cance where there could be other velopment organization with ties bring more water-technology-re- Because so many manufacturers Mt. Clemens; and Utica — to clean recreational activities, restau- to Michigan State University. lated businesses to the Great need so much water, Webb thinks debris out of the main branch of rants, maybe a small museum or He is working to form a Lakes region. History has shown they are going to be drawn to the Clinton River. an aquarium,” he said. “We are statewide coalition to prompt the the benefits of that cross-border Michigan. “We want to open up the river also looking to land a major hotel Snyder administration “to see the partnership, Duguid argued, “Water,” he said, “is the next oil.” completely for recreational pad- on the shoreline of Lake St. blue economy opportunity and put pointing to the auto industry. Over in Muskegon, Larsen said, dleboarding, one of the fastest- Clair.” some additional energy into sup- “It is almost like there is no bor- “We have started to rebrand our growing recreational sports in the In addition, Macomb Community port for communities that are try- der between us, from a business community so that every time you U.S.,” Santoro said. “Our local out- College and Wayne State University ing to grow their blue economy perspective,” he said. “I think the hear the name ‘Muskegon,’ you fitters can’t keep kayaks and have been talking about creating a footprint.” world sees us as a cluster and one of will associate it with water.” stand-up paddleboards in stock.” research laboratory and education Austin thinks Michigan has to the most desirable clusters for busi- They are also looking at erecting Utica officials have put in a riv- center on Lake St. Clair. The cen- find communities such as Mus- ness, commerce and industry.”

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Page 14 CRAIN’S DETROIT BUSINESS October 8, 2012 CRAIN’S MICHIGAN BUSINESS CRAIN'S LIST: LARGEST MICHIGAN MANUFACTURERS Ranked by 2011 revenue

Employees Company Revenue Jan. 2012 Address ($000,000) Revenue % Michigan/ Number of plants Rank Phone; website Top executive(s) 2011/2010 change worldwide in Michigan Michigan plant locations Clients/industries served General Motors Co. Daniel Akerson $150,300.0/ 10.8% 39,943/ 14 Bay City, Detroit/Hamtramck, Grand Rapids, Automotive 1. 300 Renaissance Center, Detroit 48265 chairman and CEO $135,600.0 209,000 Lansing, Livonia, Milford, Orion, Pontiac, (313) 556-5000; www.gm.com Romulus, Saginaw, Swartz Creek, Warren, Ypsilanti Ford Motor Co. Alan Mulally 136,264.0/ 5.7 NA/ 14 Dearborn, Flat Rock, Wayne, Woodhaven, Automotive 2. 1 American Road, Dearborn 48126 president and CEO 128,954.0 224,000 Romeo, Sterling Heights, Livonia (313) 322-3000; www.ford.com Dow Chemical Co. Andrew Liveris 59,985.0/ 11.8 6,080/ 2 Harbor Beach, Hillsdale Automotive, agriculture, home care, 3. 2030 Dow Center, Midland 48674 president, chairman and 53,674.0 52,246 health care, construction (989) 636-1000; www.dow.com CEO Chrysler Group LLC Sergio Marchionne 54,981.0/ 31.2 24,491/ 11 Detroit, Sterling Heights, Trenton, Warren Automotive 4. 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO 41,900.0 54,232 (248) 576-5741; www.chryslergroupllc.com Johnson Controls - Automotive Beda Bolzenius 20,065.0/ 20.8 10,000/ 18 Battle Creek, Detroit, Grand Rapids, Automakers president, Automotive 16,610.0 162,000 Highland Park, Holland, Lansing, Monroe, 5. Experience Experience Port Huron, Romulus, Warren, Plymouth 49200 Halyard Drive, Plymouth 48170 (734) 254-5000; www.johnsoncontrols.com Whirlpool Corp. Jeff Fettig 18,666.0/ 1.6 NA/ 0 NA Household appliances 6. 2000 North M-63, Benton Harbor 49022 chairman and CEO 18,366.0 68,231 (269) 923-5000; whirlpool.com TRW Automotive Holdings Corp. John Plant 16,244.0/ 12.8 3,365/ 5 Fenton, Fowlerville, Portland, Saginaw, Automotive 7. 12001 Tech Center Drive, Livonia 48150 chairman, president and 14,400.0 63,200 Sterling Heights (734) 855-2600; www.trwauto.com CEO Delphi Automotive plc Rodney O'Neal 16,041.0/ 16.1 1,436/ 0 NA Automotive 8. 5725 Delphi Drive, Troy 48098 president and CEO 13,817.0 118,000 (248) 813-2000; www.delphi.com Lear Corp. Matthew Simoncini 14,156.5/ 18.4 3,149/ 9 Traverse City, Roscommon, Farwell, Mason, Automotive 9. 21557 Telegraph Road, Southfield 48033 president and CEO 11,954.6 97,830 Rochester Hills, Detroit, Taylor, Brownstown (248) 447-1500; www.lear.com Kellogg Co. John Bryant 13,198.0/ 6.5 NA/ 3 Battle Creek, Grand Rapids, Wyoming Food products 10. 1 Kellogg Square, Battle Creek 49016 president and CEO 12,397.0 30,700 (269) 961-2000; www.kelloggcompany.com Robert Bosch LLC Werner Struth 9,800.0/ 11.4 2,100/ 2 St. Joseph, Kentwood Automotive, industrial, consumer goods, 11. 38000 Hills Tech Drive, Farmington Hills 48331 chairman 8,800.0 303,200 building technology (248) 876-1000; www.boschusa.com Continental Automotive Systems US Samir Salman 8,800.0 B/ 13.7 1,500/ 0 NA Automotive OEM CEO, Continental North 7,740.0 B 163,788 12. Inc. America 1 Continental Drive, Auburn Hills 48326 (248) 393-5300; www.conti-online.com Stryker Corp. Kevin Lobo 8,307.0/ 13.5 2,247/ 2 Kalamazoo, Portage Health care 13. 2825 Airview Blvd., Kalamazoo 49002 president and CEO 7,320.0 21,000 (269) 385-2600; www.stryker.com Visteon Corp. Timothy Leuliette 8,047.0/ 7.8 1,100/ 1 Warren Automotive 14. 1 Village Center Drive, Van Buren Township president and CEO 7,466.0 27,000 48111 (734) 710-5000; www.visteon.com Masco Corp. Richard Manoogian 7,467.0/ -0.3 1,286/ 5 Ann Arbor, Adrian, Novi, Brownstown, Home improvement, construction 15. 21001 Van Born Road, Taylor 48180 chairman 7,486.0 31,000 Lapeer, Taylor (313) 274-7400; www.masco.com BorgWarner Inc. Timothy Manganello 7,114.7/ 25.9 900/ 2 Cadillac, Livonia Automotive 16. 3850 Hamlin Road, Auburn Hills 48326 chairman and CEO 5,652.8 19,250 (248) 754-9200; www.borgwarner.com Federal-Mogul Corp. Rainer Jueckstock 6,910.0/ 11.1 1,530/ 2 Greenville, Sparta Automotive OEM and aftermarket 26555 Northwestern Highway, Southfield 48033 co-CEO, Federal-Mogul and 6,219.0 45,000 (248) 354-7700; www.federalmogul.com CEO, powertrain segment 17. Michael Broderick co-CEO, Federal-Mogul and CEO, vehicle components segment Dow Corning Corp. Robert Hansen 6,430.0/ 7.2 4,000/ 5 Auburn, Freeland, Hemlock Semiconductor - Electronics, construction, automotive, 18. 2200 W. Salzburg Road, Midland 48640 president and CEO 6,000.0 12,000 Hemlock, Midland energy, personal care (989) 496-4000; www.dowcorning.com Denso International America Inc. Hikaru "Howard" Sugi 6,200.0 B/ 1.8 NA/ 1 Battle Creek Automotive 19. 24777 Denso Drive, Southfield 48033 president and CEO 6,090.0 B NA (248) 350-7500; www.densocorp-na.com Guardian Industries Corp. Charles Croskey 5,000.0 B/ 0.0 NA/ 2 Albion, Carleton Automotive, home, lighting, electronics, 20. 2300 Harmon Road, Auburn Hills 48326-1714 chairman 5,000.0 B 18,000 construction (248) 340-1800; www.guardian.com

This list of manufacturing companies is an approximate compilation of the largest such companies in Michigan. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available. B Crain's estimate. LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists

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October 8, 2012 CRAIN’S DETROIT BUSINESS Page 15

CRAIN’S MICHIGAN BUSINESS Stock in the market WEEKEND INVESTMENT LIFELONG RETURNS Downtown GR project gives developers confidence to invest MSU Executive-style Weekend MBA BY MATTHEW GRYCZAN ed by the Grand Action organization CRAIN’S MICHIGAN BUSINESS to add a shining amenity to the city. No other MBA offers a comprehensive, Now about halfway through com- team-based program that truly fits your life. Downtown Grand Rapids seems pletion, the project calls for an out- to have burst at the seams and side seasonal space for 45 vendors, Michigan State University’s Weekend MBA is an spilled a few streets south, the re- inside space for 22 vendors, a com- investment in yourself that offers great returns. sult, some say, of confidence that mercial kitchen for culinary entre- an anchor project — the $30 million preneurs, and children’s kitchens You’ll join a powerful network of high-caliber Downtown Market — has brought to with equipment that adjusts to the professionals in a program that’s intensely a neglected part of the city. varying heights of kids — all challenging and rewarding. Become the Crews working on the Downtown topped by lighted greenhouses that Market — the name officially given will act as a beacon for motorists high-performing leader you were meant to be. to the project last month — and oth- driving along the U.S. 131 freeway. er projects near the intersection of The 130,000-square-foot market — Interested? Join us to learn more: Wealthy Street and Division Av- about one-twelfth the acreage of De- Sat, Sept 22 – St. Joseph enue Southwest almost trip over troit’s Eastern Market — is expected each other as they scurry to close to be a source for local fresh-grown Thu, Sept 27 – Novi up space before winter sets in. foods for adjacent neighborhoods, Tue, Oct 9 – Midland or Royal Oak The frenzy only promises to pick as well as a drawing card for subur- up more steam nearby as Dwelling ban Grand Rapids residents and Sat, Oct 20 – East Lansing or Troy Place plans to break ground this visitors. Tue, Oct 23 – Grand Rapids month on a $30 million package of Grand Action — a not-for-profit affordable housing and office space, organization co-chaired by Dick De- Details and registration at Brookstone Capital LLC and expects Vos, David Frey and John Canepa weekendmba.broad.msu.edu/learn-more. to launch construction on three — played a critical role in launching apartment complexes carrying a to- the Downtown Market. The organi- tal price tag of $36 million. zation has led or supported major “There was a time when Grand projects that have transformed Rapids didn’t include anything downtown Grand Rapids in the past south of Fulton Street. Now we are decade, including Van Andel Arena, weekendmba.broad.msu.edu seven streets down, south of the DeVos Place convention center, Wealthy Street,” said Dennis Sturte- the Michigan State University College of vant, CEO of Dwelling Place, a non- Human Medicine and the Grand Rapids profit community development cor- Civic Theatre. poration that owns and manages Jon Nunn, executive director of more than 1,000 apartments and Grand Action, said those projects homes in 21 housing communities represent a total investment of throughout West Michigan. $338 million, of which $109 million He said his organization will was raised privately. break ground this month on work Local observers say the Down- that includes renovation of apart- town Market provided tangible ments in the historic Herkimer proof of confidence in the area — a Hotel building and construction of confidence that, in turn, may have two multistory buildings for of- accelerated projects that were in a fices and retail. holding pattern. SAVE THE DATE There wasn’t this sort of activity The market boosted the enthusi- in the area a year ago — only plans asm of father-son development team that had been in discussion for Michael and Bob Jacobson “for de- years. That changed with demoli- veloping in the area a great deal,” tion of six neglected buildings to said Suzanne Schulz, planning di- Michigan Tax make way for the Downtown Mar- ket, an urban food market promot- See Market, Page 16 Conference 5VFTEBZ

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Page 16 CRAIN’S DETROIT BUSINESS October 8, 2012 CRAIN’S MICHIGAN BUSINESS Market: Grand Rapids project gives developers confidence ■ From Page 15 rector for the city of Grand Rapids. Christian Federation completed con- in the neighborhood and wouldn’t “I believe that the Downtown Mar- struction on phase one of several compete with the urban market. ket has given developers greater phases to bring additional housing Brookstone Capital, a Midland confidence in the projects that they and retail space to the area — in- real estate development firm that are doing and, perhaps most impor- cluding a much-needed supermar- has been involved in downtown tantly, will start to spur market-rate ket, said the organization’s presi- Grand Rapids housing for years, housing developments.” dent and CEO, Jonathan Bradford. plans to begin construction soon The Downtown Market “made it a The ICCF develops nonprofit af- on a six-story apartment building lot easier for projects to go forward,” fordable housing in Kent County just north of the Downtown Mar- said Sturtevant of Dwelling Place. and provides of housing counseling ket and two six-story apartment There’s much more heavy-equip- services for communities through- buildings on adjacent lots. ment traffic at the Downtown Mar- out West Michigan. The apartment building will be ket now that construction crews Phase one is an $8.5 million pro- about 75,000 square feet with 48 from Baker Lofts have arrived. The ject that consists of two mixed-use, apartments, with affordable-hous- Jacobsons broke ground ceremoni- MATT GRYCZAN/CRAIN’S MICHIGAN BUSINESS three-story buildings that have re- ing rates of about $340 to $815 a ally on their project two weeks ago The $30 million Downtown Market is under construction in Grand Rapids. tail on the ground floor and 32 month and market rates of $900 to to renovate a 125,000-square-foot va- apartments above. $1,400 a month. The three new cant building diagonally across school, which will house about 500 owns the former Klingman Furniture “We were amazed at the amount apartment buildings will add 131 from Downtown Market into 87 students in grades six through 12. Co. warehouse, has listed the prop- of interest in these units,” Brad- housing units to downtown. apartments and about 12,500 square The Grand Rapids Public Schools erty for $1.5 million for more than ford said. “The buildings were ful- Much of the housing demand feet of office and retail space. broke ground in June on the 53,000- a year, Sturtevant said. The num- ly occupied in 11 weeks.” can be traced to the influx of stu- The site, formerly known as the square-foot building, with an ex- ber of prospective buyers going The ICCF is in discussions to dents locating downtown. Schulz Century Furniture Building, will pected completion date next fall for through the property has been ris- arrange financing for four four- pointed to the fact that a number of become an affordable-housing pro- all grades. The school, modeled af- ing over the past several months, a unit buildings that would cost colleges and universities now have ject, with rents for low- and moder- ter University Preparatory Academy in rate that leads Sturtevant to think about $2.4 million next to phase one a significant presence downtown: ate-income residents ranging from Detroit, is a public-private partner- it will be sold in six months. block, he said. The buildings would the MSU medical school, Grand Val- $450 to $800 a month. The $28 mil- ship with a lead donation of $3 mil- Sturtevant said his organization be constructed as townhomes, orga- ley State University, Western Michi- lion project should have its first lion from the Steve and Cindy Van An- plans to break down walls and reno- nized through a condominium as- gan University, Thomas M. Cooley Law unit available by April 1, with the del Foundation and significant vate about 122 small studio apart- sociation. After those are sold, the School, Grand Rapids Community Col- entire building open for business contributions from the Steelcase ments in the Herkimer building to next phase would be five more four- lege, Ferris State University and its by July, Michael Jacobson said. Foundation, Wege Foundation and create 55 larger affordable-housing unit buildings of a similar design. Kendall College of Art and Design. About a 100 yards directly east of Dan and Pam DeVos Foundation. apartments. Another part of the Future phases directly west Grand Rapids has a population Baker Lofts, construction crews One huge question mark in the project will construct a four-story would emphasize retail, with a of more than 40,000 pursuing col- have narrowed street lanes to make area is the fate of a 127,000-square- building of 67 apartments and an of- full-service supermarket as its lege studies, Schulz said. way for cranes and equipment foot warehouse just across the fice building. centerpiece, Bradford said. The Matthew Gryczan: (616) 916.8158, working on the $9.2 million Grand street from the open stalls of the About one block east of the supermarket would provide the [email protected]. Twitter: Rapids University Preparatory Academy market. Dwelling Place, which Downtown Market, the Inner City necessities of life for those living @mattgryczan 20121008-NEWS--0017-NAT-CCI-CD_-- 10/4/2012 2:48 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 17

Monthly Spain/Portugal WHERE MICHIGAN DOES BUSINESS

ment, mystery shopper programs, warranty Altair Engineering Inc. pain and Portugal share a 750-mile border — and technical assistance, dealer training but Spain is the much bigger economic engine. Crain’s monthly World Watch Based: Troy and coaching programs S Spain’s economy is the 13th largest in the report showcases companies Spain operations: Madrid Top executives: Markus Klaus, managing world, according to the CIA World Factbook. It had leading the way in international Employees: 6 business, as well as those ex- director Products: Computer simulation projects the 14th-largest GDP in 2011 at $1.4 trillion. Portu- gal’s GDP was $237.5 billion. panding their global operations. Top executives: Stefano Deiana, managing Each World Watch Monthly director Both countries have struggled with high unem- TI Automotive Inc. ployment. Efforts to improve Spain’s economy are features a different country. If More information: The office, opened in Based: Auburn Hills important to watch; Portugal received a bailout you know of a Michigan compa- March 2011, is staffed with simulation ex- Spain operations: Barcelona, Montornes de from the European Union. Market analysts have ny that exports, manufactures perts to support the region’s advanced man- Segarra, Palencia, Pamplona, O Porriño, been watching to see if Spain would call for euro- abroad or has facilities abroad, ufacturing industry. email Jennette Smith, managing Tauste zone help to stabilize public finances, but as of press editor, at [email protected]. Employees: 650 time for this page that had not occurred. Products: Fuel tank systems, pump and Amway Corp. Spain’s top exports include cars and car parts, module systems, HVAC systems, fluid car- machinery, metals, vegetable products, chemicals, COMING UP Based: Ada. Spain/Portugal operations: rying systems, powertrain components mineral products and textiles. Portugal exports November: Russia Main office in Barcelona. Top executives: Oscar Bercedo, general products such as clothing and footwear, machinery, December: Saudi Arabia/Qatar/ Employees: 30 Jordan manager, Spain Products: Home care products, durables, cars, plastics, rubber and wood pulp. cosmetics Top executives: Gerrado Vallejo, general TriMas Corp. manager; Luis Cardoso, sales manager, A Coruna FRANCE Based: Bloomfield Hills Portugal, and Susana Alonso, manager, O Porrino, Salceda Pamplona Spain operations: manufacturing facility in Spain. de Caselas Medina de Tauste, Figueruelas Tarragona Rioseco Palencia Ponte de Lima P Montornes de Segarra Employees: 10 ORTUGAL Valladolid Barcelona, Igualada Products: Metallic and nonmetallic gas- Porto kets, various types of bolts, industrial fas- Águeda Tarragona Madrid, Coslada teners and specialty products Leiria Top executives: Valentin Gutierrez, gener- al manager Valencia Vendas Novas SPAIN Palmela Lisbon, Amadora, Paco de Arcos, Queluz Seville

Kelly Services Inc. A Chrysler dealership in Lisbon, Portugal Based: Troy TRW plant in Ponte de Lima, Portugal Portugal operations: 14 offices and 29 onsite locations in Portugal. TRW Automotive Inc. Chrysler Group LLC Employees: 129 permanent employees and Based: Livonia Based: Auburn Hills more than 5,000 temporary employees. Spain/Portugal operations: In Portugal, Portugal operations: 12 dealers, 14 sales lo- Products: Temporary staffing, search and TRW has operations in Ponte de Lima, Vi- cations and 16 service locations selection, onsite services, outsourcing, hu- lanova de Cerveira and Lisbon. In Spain, Employees: 14 Federal-Mogul aftermarket distribution center in man resources consulting TRW has operations in Palau-solitá i Plega- Products: Jeep Wrangler, Jeep Wrangler Coslada, Spain Top executives: Afonso Carvalho, country mans, Alfaro, Arganda del Rey, Barcelona, Unlimited, Jeep Grand Cherokee general manager; Rui Barroso, finance and Top executives: David Zapata, general Corella, Egüés, Olvega, Pozuelo de Alar- Top executives: Jorge Navea, CEO of administration director manager con, Madrid, O Porriño, Valladolid, Vigo, Bergé Automoción; Francisco Geraldes, Las Palmas de Gran Canaria and Pam- managing director of Jeep Key Plastics LLC plona More information: Chrysler Voyager and General Motors Co. Employees: TRW has 2,784 employees in Jeep Grand Cherokee led sales in Portugal Based: Northville Based: Detroit Spain and 1,261 in Portugal. over the last decade. Portugal operations: Leiria and Vendas Spain/Portugal operations: In Spain, GM Novas Products: Steering wheel and driver has a manufacturing plant in Figueruelas Employees: 715 airbag modules, aftermarket, instrument Domino’s Pizza LLC and sales, marketing and aftermarket sales Products: Radio and navigation products, clusters and panel switch, sales, purchas- offices in Madrid. In Portugal, it has a sales, lighting and window controls, air vents, cup ing and finance services, magnesium, Based: Ann Arbor after-sales and marketing operation for the holders, assist handles, armrests frames production, electric power steering Spain operations: 117 Domino’s Pizza Opel brand in Paco de Arcos. Top executives: Rui Filinto Fernandes, column drives, hydraulic racks and pinion stores throughout Spain, owned by Grupo Employees: 6,054 president; Gilberto Landim, Leiria plant steering gears, mechanical racks and pin- Zena, master franchisee, in Madrid Products: Manufactures the Opel Corsa manager; Carlos Mano, Vendas Novas plant ion steering gears Employees: 250 and Opel Meriva; sells the Opel model manager Top executives: In Portugal, the top execu- Products: Pizza, chicken, breadsticks, range, passenger cars like the Agila, Corsa, tive is Javier Rodrigo Almazán, general desserts, soft drinks Meriva, Astra, Zafira Tourer and Insignia, manager of Lisbon aftermarket; and in Top executives: Miguel Ibarro, CEO of and commercial vehicles like the Corsa, Spain, the top executive is Pedro Lopez, di- Grupo Zena Combo, Astra, Vivaro and Movano rector and general manager for Friction More information: Domino’s Pizza began Top executives: Antonio Cobo, managing Materials Group. operating in Spain in 2009 when Grupo Zena director in Spain; Guillermo Sarmiento, converted 90 Pizza Hut units to Domino’s managing director in Portugal Pizza. The master franchise has since Visteon Corp. opened 27 stores under the Domino’s brand Based: Van Buren Township name. Haworth Inc. Spain/Portugal operations: Palmela in Por- Based: Holland tugal and in Spain, Medina de Rioseco, Sal- Federal-Mogul Corp. Spain/Portugal operations: In Portugal, Ha- ceda de Caselas, Igualada, Barcelona worth has operations in Águeda, Leiria, MSX International’s headquarters in Madrid Employees: In Spain, 800; and in Portugal, Based: Southfield Porto, and Queluz. In Spain, it has opera- 1,160 Spain operations: A manufacturing site in tions in Madrid, Barcelona, Bilbao and Products: Electronics, climate and other Barcelona, two warehouses in A Coruna Seville. MSX International Inc. interior systems and Seville, and a distribution center in Employees: More than 300 Based: Warren Top executives: Michel Serre, managing Coslada Products: office furniture and workspaces Spain operations: Madrid director of interiors, in Spain and in Portu- Employees: 200 Top executives: José Amaral, vice presi- Employees: 215 gal, Joao-Paulo Ribeiro, director of elec- Products: Friction products dent of European operations Products: Customer relationship manage- tronics 20121008-NEWS--0018-NAT-CCI-CD_-- 10/4/2012 4:25 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS October 8, 2012

BUSINESS DIARY

ACQUISITIONS provider of Plex Online cloud enter- Telephone: (248) 878-2081. Website: prise resource planning software for www.fcdcorp.com. The Farmington Downtown Develop- manufacturers, announced that Ac- ment Authority finalized a transaction Warren Strategies Inc., a marketing curide Corp., Evansville, Ind., a sup- to purchase the property at 33200 firm, moved from Troy to 2000 Town plier of components to the commercial Grand River Ave. from Basile Anasta- Center, Suite 140, Southfield. Tele- vehicle industry, will deploy Plex Sys- siou. phone: (248) 358-1818. Website: tems’ software-as-a-service/cloud en- www.warrenstrategies.com. terprise resource-planning software World Wide Tax Services PC, an ac- CONTRACTS across its core operations. counting and tax preparation Hyundai America Technical Center Emergency Physicians Medical Group, provider, moved from Fraser to 28250 Inc., Superior Township, has selected Ann Arbor, and Emergency Medicine Southfield Road, Suite 220, Southfield. Magnum Quality Resources, Sterling Business Intelligence, Parsippany, Telephone: (734) 945-0205. Website: Heights, for training and consulting N.J., announced a new partnership www.worldwidetaxonline.com. services to assist in achieving its ISO that will allow EPMG to offer an emer- Rochester Center for Healthy Living 17025:2005 laboratory accreditation gency department performance dash- moved from 725 Barclay Circle to 1854 goals and objectives. board and analytics software to its W. Auburn Road, Rochester Hills, and hospital partners. Automotive Industry Action Group, changed its name to The Waller Well- Southfield, announced that Norfolk MWW Automotive Group, Howell, a ness Center. Telephone: (248) 844-1414. Southern Corp., Norfolk, Va., a trans- global design, engineering and manu- Website: www.wallerwellness.com. What’s that portation company, has joined the facturing firm, was awarded the con- Capture A Moment Photography LLC not-for-profit, member-supported or- tinuation of production for painting moved from Harrison Township to 117 ganization. and fulfillment of interior parts for Cass Ave., Suite 308, Mount Clemens. ticking sound? UHY LLP, Sterling Heights, a financial the Ford F-150 series line of trucks Telephone: (586) 646-8189. Website: through 2013, from Ford Motor Co., services company, announced a new www.captureamomentphoto.com. Given the changes in the financial member, UHY Botello & Marquez S.A., Dearborn. to the UHY global accountancy net- ForeSee Results Inc., Ann Arbor, a NEW PRODUCTS marketplace, your life insurance policies work. customer experience analytics compa- H.B. Stubbs Co., Warren, a global ex- ny, was chosen by HSN Inc., a multi- Carhartt Inc., Dearborn, a work-wear may not be performing as intended. hibit and event marketing company, channel retailer in St. Petersburg, brand, launched a line of flame-resis- announced it has added nine new Fla., to measure and analyze the cus- tant work apparel including a shirt, a A periodic analysis and review can: clients: Affinia Group, Ann Arbor, an tomer experience of its mobile-opti- relaxed-fit pant and a coverall, and an- automotive supplier; Cassidian, Un- mized site and mobile apps with Fore- nounced the availability of the Weath- See’s new Mobile On-Exit technology. ered Duck, the newest member of the • Save premium dollars terschleissheim, Germany, a global security solutions and systems com- Clark Construction Co., Southfield, Carhartt pant line. Website: • Improve, extend or guarantee pany; Dana Holding Corp., Maumee, was selected by Beaumont Hospital, www.carhartt.com. Ohio, an automotive supplier; Data- your coverage Troy, as construction manager for a $3 Asahi Kasei Plastics N.A. Inc., mars Inc., Woburn, Mass., a radio-fre- million, two-phase project to relocate Fowlerville, is working with Unified • Generate cash quency identification company for the the central processing department to Energies International Inc., Carson animal and textile identification mar- the second floor on 5West. City, Nev., in the development of the • Make sure your plan is on track kets; Holcim, Jona, Switzerland, a sup- Windstrument wind turbine to mass- plier of cement and aggregates, and EXPANSIONS produce affordable renewable energy. ready-mix concrete and asphalt; Website: www.windstrument.com. Horstman Inc., Sterling Heights, a de- Starr Commonwealth, Albion, a child TRW Automotive Holdings Corp., Livo- signer and manufacturer of defense and family services organization, nia, announced its next-generation Call for a complimentary analysis and review. products; Hyundai Motor America, opened Starr Detroit Academy, an Pedestrian Protection System, which Fountain Valley, Calif., a subsidiary open admissions charter school, at uses a combination of acceleration of Hyundai Motor Co., Korea; LivingSo- 19360 Harper Ave., Harper Woods. and pressure-sensing technologies to cial Inc., Washington, D.C., an elec- Telephone: (313) 638-2730. Website: detect a pedestrian impact. Website: tronic commerce company; and Novar- www.starracademy.org. www.trwauto.com. tis International AG, Basel, Wigs 4 Kids of Michigan Inc., St. Clair BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM BrassCraft Manufacturing, Novi, a Switzerland, a healthcare company. Shores, opened an ancillary support Plex Systems Inc., Auburn Hills, manufacturer of plumbing supplies, services office at 31235 Harper Ave., added two new water stops to its push- St. Clair Shores. Telephone: (586) 218- connect technology line of products. 1144. Website: www.wigs4kids.org. Website: www.brasscraft.com. Chez-Zara LLC, Detroit, an espresso Stardock Entertainment Inc., Ply- bar, opened a second location at 1555 mouth, announced the 2012 edition of Broadway St., Detroit. Website: its political strategy game, The Politi- www.chez-zara.com. cal Machine. Website: www.political Dickey’s Barbecue Restaurants Inc., machine.com. Dallas, opened a Dickey’s Barbecue Pit, a quick-serve barbecue restau- NEW SERVICES rant, at 4825 Carroll Lake Road, Com- Valassis Communications Inc., Livo- merce Township. Telephone: (248) 360- nia, launched RedPlum Social 4055. Website: www.dickeys.com. Savings, a coupon app built on the Facebook platform. Website: MOVES www.redplum.com. Finsilver Construction & Development Summit Sports Inc., Bloomfield Town- Corp. moved from 2075 W. Big Beaver, ship, launched an online storefront for Suite 250, to 2011 Austin Drive, Troy. snowboarders, www.snowboards.com. 20121008-NEWS--0019-NAT-CCI-CD_-- 10/4/2012 4:21 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 19 Extra

People

St. John Providence Health System, Warren, and Data disconnect the Michigan market of Ascension Health, St. Louis, Mo., have named Frederick Competition among health information exchanges slows development of statewide system Brown their first chief innovation and BY JAY GREENE new venture officer. CRAIN’S DETROIT BUSINESS Brown, 53, had been plan intended to foster in- Brown managing director of Ducker Worldwide, terconnected health infor- Troy. He graduated magna cum laude A mation exchanges across with a Bachelor of Science degree in the state has gone awry as biology and genealogy from Tufts companies providing the ser- University, Medford, Mass., and an MBA vices compete for hospitals, from Harvard Business School. physicians and market share. Brenda The health information ex- Bohnsack, M.D., changes — not to be confused assistant professor with the health insurance ex- of ophthalmology changes under health care re- and visual sciences form — are intended to help at the University of Michigan, received make it easier for hospitals and the Research to physicians to exchange patient Prevent Blindness information, thereby achieving Career Development lower costs and higher quality Award. The award by better coordinating care and Bohnsack helps support young reducing service duplication. researchers of The problem is the two ex- ophthalmology with $250,000 in changes with the biggest mar- funding over four years. ket share, Okemos-based Great David Lakes HIE and Grand Rapids- Ginsburg, M.D., the based Michigan Health Connect, James V. Neel distinguished use different information sys- university professor tems that cannot of internal medicine, exchange data $36 BILLION REX LARSEN human genetics and with providers Executive Director Doug Dietzman works with his staff at Michigan Health Connect in Grand Rapids, one of the two pediatrics at the that select other Federal funds leading health information exchanges in Michigan. University of fuel hospital exchanges. Michigan Medical tech spending, The executive When they start saying that, School, will receive Page 20 directors of the then maybe we will move the 2012 Henry M. Ginsburg two HIEs, Carol faster,” he said. Stratton Medal for From a public health, quality and his accomplishments in the fields of Parker of Great Lakes and “ thrombosis and blood cell immunology. Doug Dietzman of Michigan cost standpoint, it doesn’t make sense Connection problem Health, say the goals of their Mohammed Arsiwala, M.D., the In 2006, Gov. Jennifer president and medical director of organizations are to become not to share data. Granholm approved a plan to Michigan Urgent Care, a system of 10 statewide exchanges. ” urgent care facilities, has been But while each HIE is highly Carol Parker, Great Lakes HIE create nine substate health in- appointed by Gov. Rick Synder to the competitive in seeking to add formation exchanges — online Controlled Substance Advisory hospitals and physicians, Park- Lakes’ master patient index health, quality and cost stand- databases that allow compet- Commission and will serve a one-year er and Dietzman say they have with several other HIEs in point, it doesn’t make sense ing medical providers to in- term. Arsiwala represents the Board of been talking the past several Michigan, including two in not to share data.” stantly share patient informa- Medicine — to which he was appointed months over ways to share data. metropolitan Detroit: South- Dietzman said he believes tion in a secure format — and in January — and will serve a one-year east Michigan HIE and Ingenium ultimately there will be infor- encourage the HIEs over the term. An agreement between the two HIEs could be reached LLC, formerly My1HIE. mation exchange among all next five years to grow. As it J. Michael within a year to integrate their “We are working with our the HIEs in Michigan. The turned out, there are six. Kramer, M.D., has Many experts say that ini- been named senior patient data systems, the two vendor on this now,” Parker question is just when, he said. tial plan is partially success- vice president and executives say. said. “A lot of hospitals and “I don’t have any providers chief quality officer Parker said she also has dis- physicians indicate to me they coming to me and saying that ful. But Granholm’s plan of Spectrum Health cussed patient data sharing us- would like to see the (regional) this is something I need you to called for the regional HIEs to System in Grand ing patient queries and Great HIEs share data. From a public do. That is part of the issue. See Data, Page 20 Rapids. Kramer has been with Spectrum Health since 2011 as vice president WHERE THE EXCHANGES ARE Kramer and chief medical There are six health information exchanges in Michigan, with two of them — Michigan Health Connect and Great Lakes HIE — having the most information officer. market share. David Dull, Michigan Health Connect, Grand University, Sparrow Health and employers participate. communication services. The M.D., became the Rapids: The largest HIE in the System and Garden City Hospital. Ingenium LLC, Bingham Farms: portals have been developed by new chief medical state, with 54 of the state’s 134 Southeast Michigan HIE, Detroit: Network of several hundred Covisint, a division of Detroit- officer of Providence medical-surgical hospitals as Chaired by Robert Jackson, M.D., physicians and other providers based Compuware Corp. and Providence Park members, including Beaumont and administered by Helen Hill. In developed by United Physicians. Upper Peninsula Health Network, Hospitals in August. Health System, St. John July, it completed a $3 million Led by John Visvara, United’s COO Marquette: Includes Dickinson Dull served Providence Health System, contract with the Social Security and senior vice president. Uses County Healthcare System, Bell previously as director McLaren Health Care, Trinity Administration to develop an AT&T’s Amagine portals, which Memorial Hospital and War of operations for Health and Botsford Hospital. electronic disability claims system allow physicians to connect with Memorial Hospital. Secure HealthHub, a Great Lakes HIE, Okemos: The that Hill said will speed applications insurers to check insurance Jackson Community Medical Vermont-based second-largest HIE. Among its from an average of 457 days to less eligibility, medical claims, patient Records, Jackson: A joint venture health care IT Dull members are the University of than a day. A number of health registries, electronic prescribing, of Allegiance Health and Jackson company and vice Michigan, Michigan State systems, insurers, provider groups claims management and Physicians Alliance. president for quality at Spectrum Health Butterworth Hospital. Source: Michigan Health Information Network, HIE websites 20121008-NEWS--0020-NAT-CCI-CD_-- 10/4/2012 4:20 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS October 8, 2012 SEVENTH Health Care Extra ANNUAL INSTITUTE FOR TAX PRACTITIONERS

Thursday, October 25, 2012 at The Inn at St. John’s in Plymouth

For details go to www.varnumlaw.com/tax2012

AL GOLDIS Carol Parker is executive director of the state’s other leading health information exchange, Great Lakes HIE in Okemos. Data: Health info exchanges at odds ■ From Page 19 become interconnected by this year through the Michigan Health Information Network. Federal funds fuel hospitals’ Now some believe it could take Legal Experience In Your Corner. several more years for that goal to be reached. In the meantime, the six surviv- high-tech spending spree ing substate HIEs in Michigan are signing up dozens of hospitals and BY JAY GREENE Health System will spend $350 mil- physicians, developing different CRAIN’S DETROIT BUSINESS lion, with $59 million coming information technology approach- home in incentive payments. es and starting to exchange patient Since the federal government’s All the systems are using data within their own organiza- HITECH Act in 2009 provided EMRs developed by Epic Systems, tions. $34 billion in funding for hospi- a Verona-Wis.-based information But last year, a study by Harvard tals, physicians and other technology company. University researchers in the An- providers to develop electronic The HITECH Act also provided nals of Internal Medicine found medical record systems and an- millions of dollars to help states states that have promoted the use other $2 billion to states for establish health information ex- of a single HIE, including Indiana, health information exchanges, changes. Michigan received Maryland and Massachusetts, health care organizations in $15 million in 2010 to develop the have not only moved more quick- Southeast Michigan have gone on Michigan Health Information Net- ly ahead in the goal of exchanging an electronic spending splurge. work, a coordinating agency for patient information, but those The HITECH (formally the the state’s six sub-state HIEs. HIEs also are more financially Health Information Technology MiHIN is a collaboration of the stable. for Economic and Clinical Health) Michigan Department of Community Dietzman said states that have Act, was part of the $787 billion Health, the state Department of set up single HIEs are smaller and stimulus bill, or the American Re- Technology, Management and Bud- less complicated than Michigan covery and Reinvestment Act, get and private organizations. and have state financial support. which was designed to provide a Managed by a regional health Nationally there are more than boost to the economy following information organization, an HIE 250 HIEs, including 160 private the economic meltdown of 2008 is a computer technology that al- HIEs, but less than 60 are ex- and 2009. lows providers, pharmacies, changing data, and only 40 per- So far, hospitals in Southeast health insurers, imaging centers cent of those receive sufficient Michigan have received millions and the like to share patient infor- revenue to cover expenses, stud- of dollars from the federal gov- mation contained in EMRs and ies show. ernment to help defray their other health care databases. costs to develop electronic med- Most experts believe care coor- Solution: One for all ical record systems. Physicians dination will lead to improved and other eligible providers also quality, lower costs and less po- To address patient data frag- investing in EMR systems can tential for adverse medication mentation by having separate re- also receive thousands of dollars and allergy reactions. gional HIEs, the Michigan Health to defray their average cost of In a 2010 survey of hospitals and Hospital Association’s HIE task $40,000 per physician. and physicians by KLAS Enterpris- force concluded in June that the For example, the University of es of Orem, Utah, the most com- best solution for Michigan is to Michigan Health System is spend- mon data elements exchanged by have a single, statewide HIE, said ing $250 million on its EMR and 93 percent of HIEs are medication Jim Lee, the association’s vice billing system over the next 10 (83 percent), radiology results president for data policy. years and expects to receive $30 (81 percent) and patient allergies “As the state moves forward with million to $40 million back in fed- (74 percent). HIEs, we are asking if it makes eral incentive payments; Oakwood But only 48 percent could share sense to continue doing what we Healthcare is spending $80 million complete patient records, which are doing” or if a new approach is and expects to receive $31 million are called continuity-of-care doc- needed, Lee said. “We have asyn- back; Beaumont Health System has uments. chronous growth with some HIEs spent $100 million the past five Jay Greene: (313) 446-0325, doing well and the others not show- years and has received $24 mil- [email protected]. Twitter: lion in payments; and Henry Ford @jaybgreene See Next Page 20121008-NEWS--0021-NAT-CCI-CD_-- 10/4/2012 4:19 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 21 Health Care Extra

From Previous Page private HIEs are expected to con- get there.” ing any sustainability.” nect with the Michigan Health In- But Dietzman said he believes Lee said the hospital associa- As the state moves forward formation Network, said Execu- natural market forces will lead to a tion board voted in September to “ tive Director Tim Pletcher. consolidation of HIEs and greater encourage hospitals to select ei- with HIEs, we are asking if it MiHIN, the statewide organizer collaboration to exchange data be- ther Great Lakes or Michigan of the regional networks, also tween Great Lakes and Michigan Connect as their HIE, which could makes sense to continue doing could connect into a nationwide Health. reduce data exchange fragmenta- HIE network, he said. “There is nothing in place to tion. what we are doing. Pletcher views the multiple HIE structurally force everything into But he added that the MHA ” projects under way in Michigan a single exchange,” he said. “The board decided not to lobby the Jim Lee, Michigan Health and Hospital Association like the work done in the early problem is you have two indepen- state to fund or push for a years of the Internet. dent boards that do not feel overly statewide HIE, although it be- vate practice physicians that are involved. I believe there will be “We had lots of innovation, cre- compelled to give up what they are lieves that is the best long-term not on its Epic EMR. more urgency when health care re- ativity, experimenting and techie doing. Both are progressing. We goal. But Sripada said a single HIE form kicks in because we need to work to form the computer net- know we have to interact eventual- “The hospital association is eventually is needed in Michigan. exchange information” to improve works. It all came together to ly in Michigan and with northern clearly trying to broker better co- “There is lots of fragmentation, quality and lower costs. what we have now as the Inter- Ohio and Indiana.” ordination with the HIEs and, with some HIEs doing a good job Over the next several years, net,” he said. “Like where we are Jay Greene: (313) 446-0325, where feasible, more collabora- and the others not so,” Sripada Michigan Health, Great Lakes and now with the HIEs, it wasn’t pret- [email protected]. Twitter: tion,” said Andrew Rosenberg, said. “The state needs to get more Southeast Michigan HIE and other ty in the beginning. We will @jaybgreene M.D., chief medical information of- ficer with the University of Michigan Health System in Ann Arbor. “The debate is a single HIE or in- terrelated HIEs. I argue that a sin- gle HIE is a better model,” said Rosenberg. Parker and Dietzman said their organizations are not contemplat- ing a merger. They say collabora- Expected tion to share data is a more realistic goal, at least for now. Wireless network Brian Connol- ly, CEO of Dear- born-based Oak- not found. wood Healthcare, said the four- hospital system, which is in- Unexpected Connolly stalling an Epic Systems electronic medical record system, is one of a few health care organizations in Southeast Michi- Easy-to-use gan that have not selected an HIE. He said Oakwood prefers to wait until there is a single, statewide online tools. HIE. “I would like to see it structured so all hospitals, doctors and sys- tems are in (one HIE) so we don’t For insight into your employee’s health needs, we’ve got a tool that’s need to have interfaces and com- Health ® pete” with each other, Connolly surprisingly, well, cool. It’s called InSite and it helps you identify said. “We don’t want to invest in health trends that impact your bottom line, and even benchmark your an HIE that gets absorbed or dis- company’s health against others like yours. Think of it as the crystal ball of continued. We can wait for a single health care. Now, if you see something that needs fixing, you can address it. one.” Oakwood, like all hospital-based systems and most physicians in The right tools for the health of your employees—It’s one Southeast Michigan, is spending more way Priority Health is meeting your unexpectations. millions of dollars on internal elec- tronic medical record systems to connect its hospitals and affiliated physicians. Parker said she understands concerns like those expressed by Oakwood. But she said she would prefer more hospitals to be the table to help push the HIEs to col- laborate and develop internal sys- tems. “Last year we decided to expand statewide to be (financially) sus- tainable. We don’t want to over- whelm participants with costs be- cause it is expensive to develop the infrastructure for an HIE,” Parker said. State input needed Subra Sripa- da, chief admin- istrative and in- formation officer for Beau- mont Health Sys- tem, said Michi- gan Health will eventually help Beaumont elec- tronically con- nect with pri- Sripada 20121008-NEWS--0022-NAT-CCI-CD_-- 10/4/2012 2:48 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 8, 2012 Health Care Extra Movement to cut hospital visits by seniors: Exercise for the mind and body

BY JAY GREENE Rosenberg said. CRAIN’S DETROIT BUSINESS The 198-unit Hechtman Apart- ments is part of Jewish Senior Erwin “Itsy” Lieberman stands Life, which operates seven inde- at the forefront of a movement pendent living and assisted living within senior living and health facilities for more than 900 resi- Health Law Is Complex care facilities that offers residents dents ages 62 and older. Some resi- mind-body exercise programs that dents are eligible for low-income have the potential to cut costs by assistance programs offered by the Understanding It Can Be Simple reducing unneces- federal gov- sary emergency de- ernment. partment visits and I try to slow the Research hospitalizations. “ has demon- Says Direc- aging process strated that tor Carol exercise pro- Rosenberg of with exercise. grams geared the Jewish Se- toward older nior Life Foun- ... People adults im- dation — who prove physi- has known come to long- cal and mental Itsy for 30 functions and years: “Itsy term care reduce disabil- Gain insight and understanding has the abili- ity, says the at hallrender.com. ty not only to facilities to federal Centers bring out exercise (in for Disease Con- 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | (248) 740-7505 people) but the spirit die. I say they trol and Preven- of the human being. tion. … This is a holistic should come here to “I tell (the wellness approach to class) it is all aging that we encour- live. about putting age.” ” a smile on Each Wednesday ‘Itsy’ Lieberman, your face, for the past five years, Sunrise Chi exercise leader having fun, Lieberman, 69, has gaining flexi- taught a Sunrise Chi exercise class bility and ability,” Lieberman to eight to 16 residents of the Lil- said. “When you get older, you lian and Samuel Hechtman Apart- can’t do the exercises they have ments in West Bloomfield Town- on cable TV. I make sure they ship. Their ages range from early have the right exercise for their 60s to the oldest student at 102. The ages.” Jewish foundation helps support Lieberman, who played football the apartments and its owner, Jew- and threw the javelin on the track Advocating For Hospitals ish Senior Life of Metropolitan Detroit. team at Wayne State University, said “ ‘Chi’ means life’s energy,” aging leads to decline in strength, And The Patients They Serve. said Lieberman, a former auto endurance, flexibility and balance. company marketing executive “I try to slow the aging process with a black belt in karate. with exercise. I make them move, Compassion has always been a core value at Advomas®. We strive to “I know when I do my exercises and every muscle is worked,” that I am helping them. We had a Lieberman said.

eading with Results improve the financial health of our clients and their uninsured and 90-year-old woman who got up “People come to long-term care L underinsured patients by delivering our services with empathy, from her chair and danced with facilities to die. I say they should me. Seniors love music. When you come here to live.” dignity, and respect. play it, they move.” CDC-funded studies show that Lieberman — who ends his class seniors involved in a one-hour Our team endears patients to your facility through thoughtful and in a line dance to the song “Oh, class featuring strength, aerobic What a Beautiful Morning” — said and flexibility exercises see a vari- empathetic interaction. Whether it is at the bedside, over the phone, he has helped hundreds of stu- ety of improvements to their dents improve their health over health. For example, seniors who or in the home, Advomas is always sensitive to your patients’ needs. his 39 years as a Sunrise Chi in- participated in a one-hour class structor. three times a week improved phys- Innovative, Compassionate, and Effective … that is how Advomas A form of tai chi, Lieberman’s ical, emotional and social health Sunrise Chi classes focus on scores by up to 30 percent. Those finds you and your patients the highest payer source. stretching and exercises that stim- seniors in a control group who did ulate the mind and increase blood not exercise deteriorated in these Find out how we can improve the financial health of you and your flow. measures, the CDC said. “One person in my class used a Lieberman also teaches classes patients at advomas.com or call 248.989.4200. respirator (medical ventilator), at the Red Run Golf Club in Royal and she improved (lung capacity) Oak and Chester Street Residence by 50 percent,” Lieberman said. Assisted Living Community and to 335 East Big Beaver “Another one with polio, we special-needs students at Suite 100 helped gain muscle strength. And Rochester High School. He also Troy, MI 48083 people with Lyme disease, we can has a book out about his career help give them more energy.” and a 30-minute television show, Rosenberg said participation in “60 Years Young With Itsy,” start- the class is voluntary. ing at 7 a.m. on public access sta- “We have physicians who pre- tion CMNtv-Channel 18. scribe occupational and physical For information on Jewish Se- therapists to come here, but people nior Life, see www.jsmli.org. like Itsy who volunteer their time Jay Greene: (313) 446-0325, help us keep our residents active [email protected]. Twitter: because our dollars are limited,” @jaybgreene 20121008-NEWS--0023-NAT-CCI-CD_-- 10/5/2012 10:41 AM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 23 Health Care Extra Health economist to discuss the state of health care at summit

BY JAY GREENE an equal measure of higher taxes what is going on,” he said. “We insurance policies. to fix it. This is what the Afford- CRAIN’S DETROIT BUSINESS and Medicare payment reductions. spend 18 percent of our gross do- In Switzerland, people are re- able Care Act does: provides the However, from 2011 to 2021, the mestic product on health care, and quired to buy insurance from pri- tools you need to fix the health Noted Princeton University health U.S. health care system will spend nobody knows the prices or the vate companies, but the companies care system,” Reinhardt said. economist Uwe Reinhardt will give more than $33 trillion, which in- costs. Every provider charges a are not allowed to earn profits For example, the health care bill the keynote address at Crain’s cludes spending on Medicare, bill, and the bills are so complicat- from mandated benefits. They provides $1 billion for “compara- fourth annual health summit at the Medicaid, commercial insurance ed you can’t figure them out.” may sell additional benefits at a tive effectiveness” studies. This San Marino Club in Troy on Oct. 30. and the uninsured. Reinhardt said he favors the profit for supplementary policies. will enable academic researchers Reinhardt — “Health care reform is an exam- German and Swiss health care sys- But Reinhardt said the Afford- and providers to come up with known as an ex- ple of (the axiom) that there is no tems, which have universal cover- able Care Act has provisions that ideas on how to provide more effi- pert on hospital simple idea that Americans won’t age using a public-private delivery could help improve quality and cient, effective and lower-cost clin- pricing, complicate beyond belief,” Rein- and financing approach. lower costs. ical practices, procedures and Medicare re- For example, some 85 percent of “You have a fence in your yard medical technology. form and com- hardt said. Germans opt for basic public that is broken. Your spouse gives “It is a small donkey to carry a paring the U.S. “The health care industry will health coverage, and 15 percent you the tools to fix it. The tools do heavy load, but it is better than health care sys- continue to be fragmented, overly purchase higher-benefit private nothing,” he said. tem to other complicated, with no one knowing not fix the fence. You use the tools countries — said there are a Reinhardt number of forces buffeting health care, and some of them are beyond the con- trol of the health care system. “We have a growing number of baby boomers who will cost Medicare more over the next few years,” he said. “We have the fi- nancial crisis that has destroyed imagined wealth. When the finan- MY BUSINESS CARD cial markets screw up, the econo- my gets hurt. We are still in the middle of that, and now we have DOESN’T READ health care reform.” Reinhardt said U.S. health care reform was “driven by politics and written by people with law de- grees” who do not understand the “BRAIN TUMOR.” best way to drive efficiencies. Reinhardt said health care must be reformed because defense, health care and education are com- peting for funding within state and David Schowalter is not defined by his diagnosis. national budgets. He just wants to keep his customers smiling. While he says he supported ap- proval of the Patient Protection and Affordable Care Act of 2010, Fortunately for David, he has the experts at Henry Ford making the ultimate success of health care reform depends on how well costs sure he’s tumor-free and back running his business. With more are contained. than 500,000 patient visits, 3,000 brain tumor surgeries and Reinhardt noted that the cost of health care reform over 10 years is 330 advanced clinical trials over the last 16 years, the Hermelin $1.1 trillion, which is paid for by Brain Tumor Center not only gave David a second opinion unlike any other, but proved that with a national leader so close to home, TTEND EALTH ARE UMMIT A H C S he didn’t have to go out of state for world-renowned care. As the health care industry looks at changes in 2013 and 2014 from the Affordable Care Act, the struggle remains to provide better care at a lower cost. Finding a common ground on that debate is the focus of this year’s Crain’s Health Care Summit. Following keynote speaker Uwe To learn more or to schedule an Reinhardt will be a panel of corporate executives and health appointment, visit henryford.com care experts discussing the differences. or call 1-800-HENRYFORD. Tom LaSorda, former CEO of Chrysler Group LLC, will moderate the panel, joined by Nancy Schlichting, CEO, Henry Ford Health System; Keith Pitts, vice chairman, Vanguard Health Systems Inc.; Scott Eathorne, CEO, St. John Partners in Care; Rick Popp, director of employee benefits, Ford Motor Co.; and Thomas Simmer, senior vice president of Blue Cross Blue Shield of Michigan. Blue Cross is presenting sponsor. A kickoff event that day will focus on corporate wellness with speaker Dee Edington, director of the University of Michigan Health Management Research Center and a wellness consultant. Sponsor of the breakfast is Priority Health. The summit will be from 7:30 a.m.- 2 p.m. at the San Marino Club in Troy. To register, go to www.crainsdetroit.com/events. 20121008-NEWS--0024-NAT-CCI-CD_-- 10/5/2012 11:51 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 8, 2012 Health Care Extra Judge in Aetna suit tells Blues to provide methods for setting execs’ pay

BY CHAD HALCOM more than $550 million in alleged “Detailed compensation and CRAIN’S DETROIT BUSINESS lost profits, future profits and di- benefit information sought in (Aet- minished business value. Asking for the ... formulas concerning ... na’s discovery requests) is not rel- Blue Cross Blue Shield of Michigan Magistrate Judge Mona Maj- “ evant to whether (Blue Cross) op- will not have to disclose compensa- zoub at U.S. District Court on Sept. compensation for identified officers ... of erated as a nonprofit, charitable tion data for 17 past and present se- 24 ordered Aetna to provide up-to- and benevolent institution,” Maj- nior executives to competitor Aet- date documentation to support Blue Cross ... is relevant . zoub’s ruling states. “However … na Inc. but will have to disclose its such a figure — which, if awarded ” asking for the targets, goals, or for- methods of setting that compensa- at a trial, would more than triple Mona Majzoub, magistrate judge mulas concerning any form of tion, a judge has ruled. any other known Michigan civil compensation for identified offi- It’s the latest in a few unusual lawsuit judgment in recent histo- past data furnished to Crain’s. goals, or formulas concerning any cers or senior executives of Blue turns during the discovery process ry. Blue Cross insured more than 4.3 form of compensation for” Blue Cross … is relevant.” for a December 2011 federal law- Aetna insured about 300,000 million in the state that same year. Cross CEO Dan Loepp, CFO Mark At issue in the lawsuit are so- suit in Detroit by Aetna, which Michigan residents in 2010 Majzoub also ordered in a sepa- Bartlett and 15 other top execu- called “most favored nation” and claims up to $2 billion in treble through either individual or large rate ruling on Sept. 26 that Blue tives between 2005 and 2011, but nation-plus agreements, two sets damages against Blue Cross on group enrollments, according to Cross must disclose “all targets, not their compensation totals. of billing arrangements Blue Cross allegedly began making with Michigan hospitals in 2007. Those are also the basis of a 2010 joint civil action against the Blues by the U.S. Department of Justice and the Michigan attorney general’s office. Several related civil law- suits followed, including Aetna’s n ho ants a own suit late last year. ͞ LJKǁ ǁ The more conventional most-fa- vored-nation agreements required only that Blue Cross get a billing healthie o fo ce shoul rate at least equal to any other in- ƌǁ ƌŬ ƌ Ě surer. The plus agreements caused hospitals to charge the competi- tors more. consi e HealthPlus. Helen Stojic, director of corpo- Ě ƌ ͟ rate affairs at Blue Cross, said the insurer was pleased with Maj- zoub’s findings on compensation and does not plan an appeal. Scot Roskelley, communications direc- tor for Aetna’s mid-America re- gion, said he was still awaiting word on whether Aetna will ap- tĞǁĂŶƚĞĚĂŵŽƌĞŝŶƚĞƌĂĐƟǀĞŚĞĂůƚŚĐĂƌĞ peal. Roskelley did, however, say that ƉĂƌƚŶĞƌĨŽĐƵƐĞĚŽŶůŽŶŐͲƚĞƌŵǁĞůůŶĞƐƐ͕ Aetna still expects to be able to ĂŶĚ ,ĞĂůƚŚWůƵƐ Įƚ ƚŚĞ ďŝůů͘ support its $2 billion damages claim, after Majzoub granted Blue In aĚĚiƟon to oīeƌing coŵƉeƟƟǀe Ɖƌicing anĚ a stƌong Cross’ request to provide up-to- date damage computations and ac- netǁoƌŬ of ƉƌoǀiĚeƌs, HealthPlus ďecaŵe ouƌǁellness cess to records that back up its chaŵƉion. dhe HealthPlus teaŵǁoƌŬs closelLJǁith us damages totals by Nov. 1. Blue Cross claims Aetna made a com- to ĚeǀeloƉ tools anĚƌesouƌces that helƉƉƌoŵote a parison of projected versus actual profits in Michigan using only “24 healthLJ lifestLJle foƌ ouƌ eŵƉloLJees anĚ theiƌ faŵilies. pages of stale, 2005 documents” then ƌeǀieǁing LJouƌ oƉƟons, consiĚeƌ HealthPlus. speculating on future profits to support its large sums. “We are confident the evidence zŽƵ ĐŽƵůĚ ĂĚĚ Ă ďŝŐ ƉůƵƐ ĨŽƌ LJŽƵƌ ĞŵƉůŽLJĞĞƐ͘ will establish that Blue Cross Blue Shield of Michigan’s misconduct resulted in significant impairment to our ability to fairly compete in Michigan and resulted in harm to Aetna and Michigan consumers,” he said in an email to Crain’s. “We will continue to provide support- ing evidence for our case through- out the discovery and with sup- ported expert testimony.” Stojic, however, suggested Aet- na may have a distorted sense of the scale of its $2 billion claim due to its comparative size. “For a rich company like Aetna that just spent more than $7 billion to buy Coventry Health, $2 billion probably does not seem like much. But it does to us,” she said in a statement. “In this lawsuit, Aetna sued us, a smaller (and nonprofit) health plan, because they claimed finan- cial hardship. In fact, they pulled Isn͛t it Ɵŵe LJou got the Plus͍ Cathy Nash out of Michigan because they did- 1-800-530-9071 n’t want to invest to compete ǁǁǁ.healthƉlus.oƌg WƌĞsŝĚĞŶt aŶĚ CK͕ CŝƟnjĞŶs ZĞƉƵďůŝĐ aŶĐŽƌƉ here.” Chad Halcom: (313) 446-6796, [email protected]. Twitter: ©2012 HealthPlus of Michigan, Inc. @chadhalcom DBpageAD.qxp 10/3/2012 2:00 PM Page 1 20121008-NEWS--0026-NAT-CCI-CD_-- 10/5/2012 10:42 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS October 8, 2012 Health Care Extra GDAHC narrows its focus to policy issues, collaboration

BY JAY GREENE going to focus 1944, has a multistakeholder mem- and Controversy” breakfast meet- day meetings on a hot topic, then CRAIN’S DETROIT BUSINESS on a few vital bership group that includes hospi- ings to delve into more provoca- take a position on it. things we can tals, employers, health plans, tive health care community topics, “We would present both sides of The Greater Detroit Area Health get done and col- provider organizations, physi- Kohn-Parrott said. the issue, debate it and ultimately Council is going back to its roots laborate with cians, labor organizations and gov- “We want to be the thought would write an opinion about the with a new, more focused strategic other organiza- ernmental bodies. leader on difficult topics — the ele- issue,” she said. “GDAHC used to plan that calls for the council to tions on areas of Like most membership organi- phant-in-the-room-type issues,” be the go-to organization on health take positions on topical health mutual inter- zations, the council needs to find she said. “We might have a forum issues of the day.” care issues, continue to conduct est,” said Kate more revenue sources over the about McLaren Health Care’s new Of the council’s annual $1.7 mil- cost reduction and quality im- Kohn-Parrott, next two years to fund operations hospital proposal for Clarkston or lion budget, 38 percent comes from provement initiatives and work Kohn-Parrott who has been as member contributions for pro- (legislation to change) Blue Cross grants from the Robert Wood John- more directly with employers on working on the jects have dwindled over the past Blue Shield of Michigan into a non- son Foundation, 28 percent from health and wellness issues. plan since she was named CEO of several years, Kohn-Parrott said. profit mutual.” member dues, 28 percent from “GDAHC has tried in the past to the health council in January. To address topical health issues, Kohn-Parrott said the health member contributions for cost and be all things to all people. We are The health council, founded in the council will expand its “Coffee council could host half-day or full- quality programs and the remain- der from fundraisers, conference fees and other sources. But member contributions for cost and quality projects have dropped from $1.4 million in 2006 to $316,000 in 2011, primarily be- cause of member budgets. “Our mission is to help South- “Turns out we’d been under-forecasting.” east Michigan deliver on the promise of a high-value health care system that focuses on quality People who know Manufacturing, know BDO. improvement and cost contain- ment,” Kohn-Parrott said. For example, she said, the coun- cil will focus on improving car- diac care in a project with the Michigan chapter of the American College of Cardiology, MPRO and 12 hospitals. Another key to continue this ef- fort is to extend another round of grant funding — estimated to be worth $1 million for two years — from the Robert Wood Johnson Foundation’s Aligning Forces for Quality project, Kohn-Parrott said. “We have to focus on access to appropriate care and health litera- cy more so with the employer be- cause they, like consumers, need to know how to use the health sys- tem better,” she said.

CON Roundup

The following are selected fil- ings and decisions Sept. 1-30: Letters of intent: Ⅲ St. Joseph Mercy Hospital, Ann Arbor: Build a new surgical pavil- ion and replace nine operating rooms, $29.3 million. Ⅲ St. Anthony Nursing Healthcare, Warren: Add 104 beds and lease a new, 33,000-square-foot building for 15 years, $7.8 million. Ⅲ Lourdes Nursing Home, Water- ford Township: Construct new space, renovate a current space, and move 50 of its 108 beds to the new space, $15 million. Ⅲ Special Tree Macomb Center, Clinton Township: Build a 39-bed, 45,000-square-foot nursing and re- habilitation center for traumatic The Manufacturing Practice at BDO brain and spinal cord injuries, $9.8 million. One of the United States’ largest industries is supported by BDO’s largest Ⅲ Regency on the Lake-Novi LLC: industry group. The Manufacturing & Distribution practice combines accounting, Build a 145-bed nursing home and lease for 15 years, $10.9 million. tax, and business advisory with industry prowess. Whether you’re looking to leverage Ⅲ Regency at Waterford: Add 30 international operations, grow through acquisition, or optimize inventory management nursing home beds to the 120-bed systems, BDO stands ready with proactive information and guidance wherever in the facility and lease a newly con- world you do business. structed, 30-bed wing for 15 years, $2.4 million. Accountants and Consultants Filings waived/not reviewable: Ⅲ McLaren Medical Group, Inde- www.bdo.com/manufacturing pendence Township: Build 400,000-

© 2012 BDO USA, LLP. All rights reserved. square-foot medical office build- ing, $303.7 million. (See Rumblings, Page 34.) — Ryan Kelly 20121008-NEWS--0027-NAT-CCI-CD_-- 10/5/2012 10:45 AM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 27

CRAIN'S LIST: LARGEST GROUP HEALTH CARE PLANS Ranked by 2011 revenue

Enrolled Enrolled Enrolled Enrolled Company Revenue members members in members members in Enrolled Address ($000,000) Percent year-end HMO/DHMO in PPO POS members in Rank Phone; website Top local executive(s) 2011/ 2010 change 2011/2010 plan plan plan other plans Name of group health care plans/types Blue Cross Blue Shield of Michigan/ Daniel Loepp $20,400.0 B 6.3% 4,414,620 C 695,391 D 3,382,789 0 336,440 Simply Blue PPO, Healthy Blue Outcomes PPO, Community 1. Blue Care Network president and CEO $19,200.0 B 4,351,928 C Blue PPO, Healthy Blue Incentives PPO, Blue Care Network of 600 E. Lafayette Blvd., Detroit 48226 Michigan HMO, BCN Healthy Blue Living, others (313) 225-9000; www.bcbsm.com Priority Health Michael Freed 2,246.0 13.6 622,298 362,290 53,954 3,137 202,917 PriorityPPO, PriorityPOS, PriorityHMO/PriorityEPO, 2. 34505 12 Mile Road, Farmington Hills 48331 president and CEO 1,977.2 610,000 PriorityValue, PriorityHSA, PriorityHRA, HealthbyChoice (800) 942-0954; www.priorityhealth.com Incentives, others Health Alliance Plan of Michigan William Alvin 1,791.3 3.3 420,965 301,299 12,289 1,200 227,778 HMO, PPO, POS, EPO, Medicare, Wayne County Four Star, 3. 2850 W. Grand Blvd., Detroit 48202 president and CEO 1,733.4 475,559 self-funded, Alliance Rx, Leased Network (313) 872-8100; www.hap.org Delta Dental of Michigan Inc. Laura Czelada 1,309.3 1.8 5,288,681 NA NA NA NA Delta Dental Premier, Delta Dental PPO, DeltaCare 4. Farmington Hills and Lansing president and CEO 1,286.5 5,245,361 (517) 349-6000; www.deltadentalmi.com Meridian Health Plan of Michigan Inc. Jon Cotton 960.6 10.0 290,587 290,587 0 0 0 Medicaid, Medicare HMO 5. 777 Woodward Ave., Suite 600, Detroit 48226 president and COO 873.2 281,078 (313) 324-3700; www.mhplan.com HealthPlus of Michigan Inc. Bruce Hill 772.5 E 11.0 212,616 151,422 36,232 0 24,962 HMO, PPO, consumer-driven health plans 6. 101 W. Big Beaver Road, Suite 1400, Troy 48084 president and CEO 695.7 E 215,477 (248) 687-1420; www.healthplus.org Molina Healthcare of Michigan Inc. Stephen Harris 662.1 5.1 222,000 222,000 0 0 0 Medicaid, Medicare 7. 100 W. Big Beaver Road, Suite 600, Troy 48084 president 630.1 227,000 (248) 925-1700; www.molinahealthcare.com UnitedHealthcare Jelka Petrovic 366.0 31.7 284,000 NA NA NA NA Co-pay, HSA, high-deductible, short-term, student, Dental 8. 26957 Northwestern Hwy., Suite 400, Southfield 48034 CEO, UnitedHealthcare in 278.0 269,000 Premier, Dental Value, Medicare Advantage, Medicare HMO, (800) 842-3585; uhc.com Michigan Medicaid McLaren Health Plan Inc. Kathy Kendall 311.1 3.2 93,427 NA NA NA NA HMO, POS, Medicaid 9. G-3245 Beecher Road, Suite 200, Flint 48532 president and CEO 301.4 91,918 (888) 327-0671; www.mclarenhealthplan.org Midwest Health Plan Inc. F Mark Saffer 265.7 6.9 75,040 75,040 0 0 0 HMO 10. 4700 Schaefer, Suite 340, Dearborn 48126 president and CEO 248.5 70,630 (313) 581-3700; www.midwesthealthplan.com

This list of leading Detroit-area group health care plans encompasses medical, dental, optical and other health care organizations. It is not a complete listing but the most comprehensive available. Humana Michigan, No. 8 on last year's list, which Crain's believes would make the list, declined to provide figures, and a reliable estimate could not be made. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies or the Michigan Office of Financial and Insurance Regulation. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. B Total of premiums and premium equivalents that include both fully insured and self-funded business. C Does not include members that are part of Michigan-based groups but reside outside of Michigan. D Includes members belonging to Blue Care Network subsidiaries. ■ E Figures include subsidiaries HealthPlus Insurance Co. (PPO), HealthPlus Partners (Medicaid) and HealthPlus Options (TPA). An expanded version of this list can be purchased at crainsdetroit.com/lists. F Midwest Health Plan Inc. became a subsidiary of Health Alliance Plan of Michigan on Nov. 1, 2011. LIST RESEARCHED BY BRIANNA REILLY

Presented by YOU’RE INVITED 1 Ad Delivers CONSTRUCTION Benefi ts in 3 Formats OUTLOOK 2013 PRINT EDITION Readers refer to it ALL YEAR • 77% of readers reference THURSDAY OCTOBER 25 2012 the Book of Lists at least 4 times a year. Join us at UHY’s Farmington Hills office INTERACTIVE DIGITAL EDITION Link customers directly to you 7:00AM – 10:30AM EDT • Distributed to 150,000 7:00AM—7:30AM Breakfast and Networking Web readers 7:30AM—7:40AM Opening Commentary EXCEL® SPREADSHEET 7:40AM—8:10AM Legislative Construction Update 1,400 high-quality business 8:10AM—8:25AM Michigan Update Thomas Callan, CPA Kurt Siebenaller, CPA development leads 8:25AM—8:40AM Joint Ventures: Accounting Issues Managing Partner & National Principal • Titles include CEO, Owner, 8:40AM—9:00AM Joint Ventures: Legal Issues Construction Practice Leader President, Chairman, CFO, 9:00AM—9:15AM Joint Ventures: Bonding Issues COO, CIO, HR, Marketing 9:15AM—9:25AM Break Vice President, and more! 9:25AM—9:50AM Doing Business Outside the U.S. • Includes names and titles 9:50AM—10:20AM Tax Update The construction industry has seen some not published in the print 10:20AM—10:30AM Panel Discussion “ positive developments out of Lansing lately and digital versions REGISTRATION regarding taxation and infrastructure but CLOSE: Oct. 31 Pre-registration for this complimentary program is required. Breakfast will be provided. Space is limited. Multiple we are concerned about the direction of CONTACT: registrations are welcome. To RSVP contact Courtney Gray Marla Wise via email [email protected] or phone 586 843 2633. tax policy in Washington. 313-446-6032 [email protected]. CPE credit will be offered. ” 20121008-NEWS--0028-NAT-CCI-CD_-- 10/5/2012 10:36 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS October 8, 2012

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE DISTRIBUTION EDUCATION IN THE SPOTLIGHT James Fiene to ex- Bahman Mirshab to dean, College of The UAW Retiree Medical Benefits Trust, Frier earned a Bachelor of Science degree in ecutive vice presi- Management, Lawrence Technologi- Detroit, has named Kenneth Frier CIO. He had mathematical science with a computer dent of retail op- cal University, Southfield, from dean, been CIO of the Stanford Management Co., science emphasis from The University of North erations, Atlas Oil Cameron School of Business, Univer- which invests and manages the endowment Carolina at Chapel Hill and an MBA from the Co., Taylor, from sity of St. Thomas, Houston. Also, Jim and other financial assets for Stanford Stanford Graduate School of Business. COO, Open Jolly to director of leadership pro- University, Stanford, Calif. The benefits trust provides access to health Pantry Food grams, remaining adjunct professor. Frier, 54, succeeds Eric Henry, who now is benefits for 840,000 General Motors Co., Marts of Wiscon- CEO and CIO of the Milton Hershey School Chrysler Group LLC and Ford Motor Co. hourly sin Inc., Pleasant FINANCE Prairie, Wis. Frier Trust, Hershey, Pa. retirees. Fiene William Brickey to partner, Plante Moran PLLC, Southfield, from associ- ate. Also, Nathan Buchalski to part- ner, Ann Arbor, from associate; Mark Corombos to partner, Auburn Hills, from associate; and Scott Eiler to part- ner, Southfield, from associate. HEALTH CARE Lisa Mason to vice president of cost quality, Greater Detroit Area Health Council, Detroit, from director of cost quality. Michael Smith, D.O., to chief medical officer and vice president of medical af- fairs, St. Joseph Mercy Oakland, Ponti- ac, from vice president of medical af- fairs and chief medical officer, Mount Clemens Regional Medical Center. Also, Wilbur Smith Jr., M.D., to director A. B. of medical education, from professor and chair of the department of diagnos- tic radiology, Wayne State University CAN YOUR BANK School of Medicine, Detroit. SPOT THE DIFFERENCE? INFORMATION TECHNOLOGY Susan Lines to vice president of operations, Picture A represents a home improvement Saphran Inc., Franklin, from se- retailer, picture B a garden center. nior manager, T- Systems North Each has its own challenges and America Inc., Rochester Hills. banking needs. Just like your business. LAW So why treat them the same? Lines Harvey Weingar- den to partner, Lippitt O’Keefe PLLC, Birmingham, At Fifth Third Bank, we look – and think – harder. from attorney, Cohen Lerner and Ra- Because we’re curious to find the right ideas to binovitz PC, Royal Oak. Jason Mathers to shareholder, Harvey help you run your business better. Kruse PC, Troy, from associate. Also, Stephanie Marino Anderson to share- holder, from associate. Ideas that enable you to collect payments on-site or online. Or solutions that may MARKETING Patricia Adanti- turn cash into working capital, fast. Joy to account manager, Franco Public Relations It’s an approach that’s as different as, Group, Detroit, from public rela- say, an adjustable wrench and a tions manager, Lycoris squamigera. Walter P. Chrysler Muse- um, Auburn Hills. And you’ll find it at Fifth Third Bank. Allison Hurt to di- rector of social Adanti-Joy media, The Learn more at 53.com/BusinessIdeas Berline Group Inc., Bloomfield Township, from so- cial media account executive. Joshua Williams to president, Warren Strategies Inc., Southfield, from sales manager, Weldaloy Products Co., The curious bank. Warren. NONPROFITS David Newman to legislative director, The Economic Alliance for Michigan, Novi, from director of government af- fairs, Michigan Department of Technol- ogy, Management & Budget, Lansing. STEEL James Gray to general manager, Great Deposit and credit products provided through Fifth Third Bank. Member FDIC. Equal Housing Lender. © Fifth Third Bank 2012. Lakes Works, United States Steel Corp., Ecorse and River Rouge, from plant manager, primary operations, Gary Works, United States Steel Corp., Gary, Ind. 20121008-NEWS--0029-NAT-CCI-CD_-- 10/5/2012 6:01 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 29 Is state business Koch buys stake Wixom asked to split Ford plant friendly? Survey in Guardian

BY RHODA MIEL seeks to find out CRAIN NEWS SERVICE land to make space for Menard Guardian Industries Corp., the BY TOM HENDERSON The Wixom City Council is ex- agreement with Ford to purchase Typically, the chain establish- parent company of injection CRAIN’S DETROIT BUSINESS pected Tuesday to consider a re- 45 acres,” Wixom Mayor Kevin es a footprint for its stores and molder SRG Global Inc., has quest from Ford Motor Co. to split Hinkley told Crain’s late last sells adjacent outlots to gas sta- agreed to sell a minority interest A statewide survey of some 70 the Wixom Assembly Plant land to week. tions, restaurants and other re- to a subsidiary of Koch Industries business organizations, nonprofit enable the sale of a portion of it Menard has asked Ford to try tailers to bring more customers Inc. organizations and municipal to Menard Inc., the home im- to have the demolition on the 280- to the site. Guardian, based in Auburn groups by the Baker Strategy Group provement and home goods acre site completed by March, he Menard is not seeking any tax Hills, would sell part of its shares of Ann Arbor, quantifying percep- store. said. relief from the city at this time, to KGCI LLC, a Wichita, Kan.-based tions of Michigan as a business- Approval from the council Menard is expected to submit Hinkley said. unit of Koch. friendly state, will be unveiled in would enable an agreement a site plan to the city for a The company has said the Koch’s other investments in- early January. between Ford and the Eau Claire, store on 15 acres of the land it store, which it would like to have clude ownership of Georgia-Pacific Organizations agreeing to partic- Wis.-based chain to go forward. purchases, once the council ap- open by January 2014, could cre- Corp. of Atlanta, which makes ipate include the Detroit Economic “Menard has communicated to proves the land split, Hinkley ate 65 to 110 jobs, he said. wood products used extensively Club, the Detroit Regional Chamber, the city that they’ve entered an said. — Sherri Welch the Grand Rapids Area Chamber, in the construction industry. Michigan Manufacturers Association, Guardian’s major business is the West Michigan Policy Forum, the in glass used in the construction Traverse City Area Chamber and Lake and auto industries. Superior Community Partnership. SRG is a subsidiary that spe- The survey will begin on Nov. cializes in plated plastics for auto GM bringing fuel cell research, jobs to Michigan from NY 12, timed to follow the fall election. trim. General Motors said Friday it focus on electric vehicles and fuel on hydrogen with no harmful “This post-election start date is The deal is scheduled to close will close its hydrogen fuel-cell cell development. GM has been emissions by the end of this year, Guardian important because all federal, research operation near testing fuel-cell vehicles that run — Associated Press said in an Oct. 4 news release. state and local races will be over Rochester, N.Y., and move it to Ratings analysts with both and we will know where we stand Michigan, along with most of Moody’s Investors Service and Stan- on the six ballot proposals,” said the 220 salaried jobs currently dard & Poor’s Financial Services LLC David Baker, managing partner at in New York. placed Guardian on ratings REAL MARKET the Baker Strategy Group. The company said most “Regardless of the outcome of watch for review with negative implications following the an- of the 220 salaried workers the election, the question for us all in Honeoye Falls, N.Y., will be ESTATE PLACE will be, ‘What can we do going for- nouncement. offered the chance to move ward to build a better Michigan Moody’s said its review will fo- to GM’s engine and economy?’ The Michigan 2013 cus on the potential for capital OFFICE SPACE BUSINESSES FOR SALE transmission research unit in Economic Outlook Survey will structure changes, potential Pontiac. Great Business Opportunity: Successful Restaurant/Bar in help turn our attention to the com- strategic changes and Guardian’s BINGHAM FARMS Macomb County looking for serious buyers that want to step Spokeswoman Kimberly mon goal of strengthening the liquidity profile. Moody’s cur- ACCOUNTING FIRM-TELEGRAPH AT into a thriving business & location. Confidentiality agreement Carpenter said the move will 13 MILE WINDOW OFFICE AVAILABLE required prior to any business information released. Inquire Michigan economy,” he said. rently rates Guardian as Baa 1/P- at [email protected] for more information. 2, noting its historically low debt- pull together all of its experts INCLUDING RECEPTIONIST, CONFER- “This highly collaborative effort ENCE ROOM, KITCHEN, FAX & COPIER Call Us For Personalized to-capitalization ratio, on ways to move vehicles. The will generate a wealth of insight on CALL SUE AT (248) 540-0250 PAIGE & Service: (313) 446-6068 company will save some mon- Michigan’s outlook. We will be conservative financial policies, COMPANY P.C global diversification and strong ey by not renewing a building FAX: (313) 446-1757 capturing real-world opinions E-MAIL: [email protected] lease in New York. from more than 5,000 people in market placement. VACANT LAND INTERNET: businesses, nonprofits and munic- From Plastics News She says GM will continue to www.crainsdetroit.com/section/classifieds "Forestville" - 700 Ft. Lake Huron, 20 acres lakeside 20 See ipal government throughout the acres behind. Majestic overlook very private, secluded. Crainsdetroit.com/Section/Classifieds state. Beautiful ravine @ N. End. Treed throughout property, natu- for more classified advertisements “Michigan can really benefit ral walk down to untouched shoreline. Call 248-645-5340. from a survey of this breadth, and conducting it after the election is Brazil supplier buys majority stake perfect timing,” said Sandy Baru- ah, president and CEO of the De- JOB FRONT troit Regional Chamber. in Shelby Twp.’s Century Plastics Associations throughout Michi- gan will send surveys to their BY RHODA MIEL ity ownership in Century Plastics GENERAL Call or email today for information on a custom advertising plan! members on Nov 12. The survey CRAIN NEWS SERVICE Inc., a Shelby Township-based CBS Radio Detroit seeks Account Executives. Must will remain open through Dec. 7, supplier of injection- and com- have prior success selling, willingness to prospect and [email protected] Brazilian auto supplier Au- pression-molded auto parts. strong closing skills. Please visit: cbsradio.com 313.446.6068 with a final report distributed pub- to apply. EOE. licly on Jan. 7, 2013. tometal SA has purchased a major- CPI is becoming part of a plas- tics auto supply firm, with four POSITIONS AVAILABLE factories in Brazil and one in Mexico. The company sold a 65 percent stake, according to Lincoln Interna- REFERRERS: EARN A tional LLC, a Chicago-based con- sulting firm that assisted CPI with the deal. Autometal, of Diadema, Brazil, is itself a subsidiary of Spain’s CIE Automotive SA, which has addi- tional plastics operations in CASH BONUS Spain, Portugal, the Czech Repub- lic, Russia and China. The global company, with headquarters in up to $4,000 when a hire is made Bilbao, has an engineering office in Livonia, but CPI will be its first production site in the United States. In addition to plastics, CIE Au- tomotive and Autometal supply metal and painted automotive parts. Their plastics operations sup- ply a variety of interior and exte- |JOB FRONT rior trim using injection molding, vacuum forming, multishot mold- ing and gas-assist molding. crainsdetroit.com/jobfront From Plastics News 20121008-NEWS--0030-NAT-CCI-CD_-- 10/5/2012 6:14 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS October 8, 2012 Bistro: Restaurant opens with Hawkins, no liquor license ■ From Page 1 with the restaurant,” Kleiner said. ly a full-service restaurant with a fore then was there by invitation filet mignon and a martini. Tonya Van Dyke and her hus- “Initially, they were using my name diverse menu. It’s been open spo- and did not pay for meals. “I thought it was very nice, both band, Darnell Johnson, co-owners to put the concept together, but I am radically since the VIP party, giv- “I have been having taste test- times I was there,” Schoenith said. of Chicago-based VFJ Enterprises officially not on any paper.” ing away two complimentary ings,” Hawkins said. “Our concept “The service was great.” Inc. d.b.a. Chicago’s Home of Chicken However, Hawkins said Kleiner drinks with the purchase of an ap- was, from the standpoint of who we Schoenith said his great-nephew and Waffles, filed a lawsuit in No- is the lease holder for Detroit’s petizer or entrée. had in the restaurant for the tast- picked up the $100 tab. vember against Hawkins and Cheesecake Bistro and said the As long as those drinks are be- ings, as long as you are not selling Kleiner for two counts of breach of build-out for the restaurant cost ing given away to invited guests, the alcohol, it’s OK to give it away.” contract, tortuous interference Kleiner and Tomkin about $2 mil- that’s legal, but alcohol can’t be The bistro serves moderately License not issued? with prospective economic advan- lion. The landlord is Greektown sold or given away to the general priced American fare such as An employee for the city of De- tage, and breach of fiduciary duty. Casino; Greektown representatives public without a license. lumb crap and shrimp cakes and troit’s Business License Center said They are asking the court to set didn’t return calls. “There is no prohibition about honey cajun roasted chicken. that as of Friday, there has not damages on the two counts of Hawkins said he and Kleiner furnishing alcohol at a private Hawkins said he expects the been a business license issued for breach of contract and are seeking own three restaurants together, in- function like a wedding or a private restaurant to get a liquor license, the restaurant’s address and said damages of $21 million for the oth- cluding the popular Carnivale in reception at a restaurant where an which according to state records it was illegal for a restaurant to be er charges. Chicago. Hawkins said he and invite is required,” said Patrick has been in escrow since 2009, operating there. The lawsuit alleges that Hawkins Kleiner are also co-owners of a Howe, liquor license and hospitali- sometime this week. But Hawkins said that’s another approached Van Dyke and Johnson restaurant management company ty attorney with Royal Oak-based And he said he understands how misunderstanding. with promises of turning their called Global Hospitality Group LLC. Howard & Howard Attorneys PLC. people could be confused. “What happened was the health restaurant into a national chain “He calls himself the Magic “But the minute the event is “People would think we were department looked at this as if it that would eventually become pub- Man, but I am the Magic Man open to the public and there is a open because they would see 50 or was a brand-new restaurant and it licly traded and valued at $1 billion. now,” Hawkins said. cost associated, like a cover charge 60 people here, but no one was pay- was not because the facility was The suit alleges that Hawkins or a charge for food where alcohol ing for food,” he said. still here,” Hawkins said. “We got said he would withhold $20 million is included, it violates the Michi- Tom Schoenith, owner of The a letter of acceptance so we didn’t in funding unless Van Dyke and Giving away … or selling? gan Liquor Control Code, which is Roostertail, said he has been to De- need a certificate of occupancy.” Johnson gave him their recipe for The restaurant, located in the a felony offense.” troit’s Cheesecake Bistro twice: He said the health department waffle mix and syrup to use in De- former Sweet Georgia Brown at Hawkins said the restaurant once for the VIP event and again the signed off on the restaurant Thurs- troit’s Cheesecake Bistro, which 1045 Brush St. next to Greektown wasn’t officially open until Thurs- next evening with his great-nephew. day. then had the working name of L’s Casino, is, despite its name, actual- day at 5 p.m. and anyone served be- Schoenith said he ordered the Cheesecake Bistro. The lawsuit also alleges Hawkins, A food-filled past after learning from Johnson about a Hawkins was a founding owner potential new site for another Chica- of Sweet Georgia Brown until a go’s Home of Chicken and Waffles 2006 ownership change and the location, began negotiating for the restaurant’s closure in 2009. site for his own development. Already established as a fast- Hawkins and Kleiner deny the food franchise owner, Hawkins allegations and the lawsuit is first emerged on the Detroit pending. restaurant scene in 1998 when he The second lawsuit, filed in bought 89 Detroit-area Pizza Hut lo- June by Ohio-based Cadlerock Joint cations. He sold the restaurants, Venture LP, alleges Hawkins has de- operated under Wolverine Pizza LLC, faulted on $5.85 million in promis- for more than $95 million. sory notes to J.P. Morgan Chase Hawkins sued Burger King in 2000 Bank. The suit is pending. for backing out of a commitment to allow him to develop 125 restau- rants in urban areas; that case was Beyond the Bistro settled for about $30 million. In the meantime, Hawkins has Hawkins Food Group had been a fran- plans. chisee of Pizza Hut, Burger King He said Detroit’s Cheesecake and Perkins Family restaurants. Bistro will serve as a training While he was preparing to sell ground for the management team of Sweet Georgia Brown, Hawkins Global Hospitality Group, which he was convicted by a jury in Philadel- says will run the 12 restaurants he phia on wire fraud stemming from has planned for downtown Detroit. a pay-for-play scandal in that city. Those restaurants include: Carni- He was sentenced to 33 months. vale, based on the Chicago restau- In a separate 2008 case in De- rant; Soul Daddy, a white-tablecloth troit, U.S. District Judge Denise restaurant in Paradise Valley; a re- Page Hood ordered Hawkins to pay ported Michael Jordan’s Steak House restitution of up to $5.7 million and and an Italian restaurant called serve 10 months concurrent with Tucci Milan in Greektown; and The his federal prison sentence. That Cotton Club, named for the Harlem was over a charge of failing to pay jazz club, at 1541 Griswold St. federal withholding and Federal “Detroit is a city that has a spirit Insurance Contributions Act taxes. that won’t die and specializes in comebacks,” Hawkins said. “There is a huge opportunity in Court fights ahead Detroit right now.” Hawkins is currently fighting Nathan Skid: (313) 446-1654, two lawsuits in Cook County Cir- [email protected]. Twitter: cuit Court of Illinois. @nateskid

JOIN CRAIN’S IN HONORING 40 UNDER 40 WINNERS Meet Crain’s 2012 class of 40 for groups of 10 or more; $40 for Under 40 at an upcoming Oct. 24 alumni and $90 for nonsubscribers. awards event. See www.crainsdetroit.com/events This year’s for details or awards event to buy will be from tickets. 5:30-9 p.m. To read at Shriners profile Silver Garden stories, view Events photos and Center in Southfield. videos of this year’s winners, see Hundreds of alumni have been www.crainsdetroit.com/40s. invited. Tickets are $50 per person Crain’s has presented the awards for Crain’s subscribers; $45 each since 1991. 20121008-NEWS--0031-NAT-CCI-CD_-- 10/5/2012 5:15 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 31 Arts, Beats & Eats raises more for nonprofits Ford Arts, Beats & Eats raised preview event, parking revenue The presenting sponsor was Citi- about $1.9 million this year, with and special festival-sponsored zens Bank. more than $337,000 of that going to community ini- Operating on a $1.8 million bud- benefit 60 local charitable and cul- tiatives such as get, the festival met costs with an tural groups. radiothons, a excess of approximately $100,000, The amount raised for nonprof- food drive and a Witz said. its was up more than 28 percent 5K run/walk. The 2012 event had a total esti- over last year. About 390,000 mated economic impact of about It was the second-highest people attended $35.1 million, organizers said, amount raised for nonprofits over this year’s based on the Michigan tourism the festival’s 15 years of operation, event, which spending and economic impact ONE HU said festival producer Jon Witz of took place over G ND IN R T E model developed for Travel Michi- A D Arts, Beats and Eats Inc. The money Labor Day R Y B E E Witz A gan and the state’s tourism indus- L to support those organizations weekend. That R

E S came from gate admissions, bever- was up from 335,000 in 2011, ac- try. C 100 age sales, the Arts Du Jour charity cording to organizers. — Sherri Welch

Rockbridge: $100M committed for deals ■ From Page 3 Unlike many private equity has 13 employees, including 10 in- companies, Rockbridge does not ROCKBRIDGE PORTFOLIO vestment professionals. have a dedicated investment fund Elkins said that while colleagues Rockbridge Growth Equity LLC has but raises money on a deal-by-deal seven portfolio companies: in New York warned him he would basis from wealthy individuals be hurting his career by taking a job Ⅲ One Reverse Mortgage LLC, San and families. Diego, which employs about 150 in Detroit, “I’d rather be in a place Boston-based Falcon Investment locally where I’m not just a guy writing Advisors LLC, which is reported to Ⅲ Northcentral University, a checks. Here, I’ll have the chance to be raising a fourth fund of $850 Prescott Valley, Ariz.-based provider be a lot more operational. And, cul- million, is in the midst of codifying of online graduate degrees turally, Rockbridge is different from a relationship with Rockbridge to Ⅲ AccountNow Inc., San Ramon, anything I’d seen in New York.” let Falcon have first crack at co-in- Calif., which offers prepaid credit Kaczmarek grew up on Grosse vesting in its deals, according to cards Ile, and he and his wife were look- John Schnabel, a managing direc- Ⅲ Protect America Inc., a home ing to move back to the Midwest. 00 tor at Falcon. Falcon has invested security and monitoring company He said he had job offers in Chica- SAVE $100 OFF in five of Rockbridge’s deals. in Austin, Texas go and Minneapolis but after a vis- “We like these guys a lot,” said Ⅲ One on One Marketing LLC, Lehi, it to the Rockbridge offices, “I said Schnabel. “They know their niche Utah, an interactive marketing to my wife, ‘Let’s not choose Chica- of direct-to-consumer businesses, company go, let’s move to Detroit.’ There and they can tap into a top manage- Ⅲ Connect America LLC, Broomall, was an energy here.” ment network to bring into their Pa., which sells medical-alert Tom Henderson: (313) 446-0337, companies unlike anyone else.” devices [email protected]. Twitter: Typically, Rockbridge invests Ⅲ Purchasing Power LLC, Atlanta, @tomhenderson2 $15 million to $35 million in well- which manages employee- run companies that have between purchase programs. $5 million and $25 million in EBIT- DA (earnings before interest, tax- take a first look at their deals. es, depreciation and amortiza- They’ll show us a deal first, and tion), need capital to grow, and we’ll give them a quick ‘yes’ or ‘no’ often need help rounding out their on whether or not we want to do it.” management teams. U.S. Securities and Exchange Com- The first deal Falcon invested in mission rules prohibit Schnabel was Rockbridge’s second: Arizona- from disclosing the new fund’s based Northcentral University Inc., targeted size during fundraising, which offers online graduate de- but Buyouts, an online publica- grees. The deal closed on Dec. 31, tion of Thomson Reuters, wrote on 2008. Sept. 17 that according to the “In our last fund, we did five Louisiana Teachers Retirement Sys- deals with them. So it’s safe to say tem, which has agreed to invest we would do another five or six $50 million in the new fund, it is deals with them out of a larger targeting $850 million. fund,” said Schnabel, who said that Falcon raised almost $1.4 billion Falcon typically invests a mini- in its first three funds. mum of $20 million in each deal, Rockbridge, which is headquar- and up to $60 million. “We want to tered in the Compuware Building, Doctors: Largest group ■ From Page 3 up of more than 700 Beaumont em- resents physicians in managed ployed physicians, and maintain care negotiations. our efforts to engage and align When the merger is complete, with our private practice physi- United Physicians is expected to cians.” become Southeast Michigan’s United Physicians offers support largest physician organization and management services to its with more than 2,600 physicians, 1,800 physician members who are Williams said. on the medical staffs of Beaumont St. John Providence HealthPartners, hospitals and other competing hos- Warren, is the largest physician or- pitals that include Detroit Medical ganization with 2,211 physicians, Center, Oakwood Healthcare System according to Crain’s 2012 physician Wake up to Michigan business news in your inbox each morning. and Henry Ford Health System. organization survey. STARTING OCT. 15 | Learn more at crainsdetroit.com/morning United Physicians also has an Jay Greene: (313) 446-0325, HMO contracting company called [email protected]. Twitter: Premier Physicians Network that rep- @jaybgreene 20121008-NEWS--0032-NAT-CCI-CD_-- 10/5/2012 5:01 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 8, 2012 Posco: Steelmaker wants a piece of up to 200 auto suppliers ■ From Page 1 through the joint ventures — mostly upstream (mining and which the majority stakeholder A SEOUL PROPRIETOR scrap recycling) for raw materials, would operate, Bigatti said. not downstream into the end mar- Name: Posco Ltd. (formerly He said Posco’s remaining a mi- Pohang Iron and Steel Co.) kets,” Freas wrote in an email. nority stakeholder would keep “But I can’t imagine too many Headquarters: Seoul, South day-to-day operations in the hands Korea structural JVs will be formed be- of the partner company and elimi- cause automakers (and other Employees: 34,936 nate an added burden to Posco OEMs) likely won’t want to tie CEO: Chung Joon-Yang management. themselves to only one” overarch- “We want to be enablers, not 2011 revenue: $62.2 billion ing supplier. running the company,” Bigatti 2011 net income: $3.3 billion Posco supplies engine and trans- said. “A larger stake requires Local presence: Posco/Daewoo mission parts to General Motors Co. more capital and inhibits our abil- International office in Troy and Chrysler Group LLC; seating ity to create more ventures.” components and aluminum and Posco is already negotiating POSCO’S PLANS steel wheels to Ford Motor Co. and with suppliers in Southeast Michi- Chrysler; and textiles to GM. gan and Indiana, including an elec- Facts about Posco Ltd.’s joint It also operates an aftermarket venture initiative: tric vehicle motor manufacturer business selling wiper blades, and a battery supplier, he said. Plans to spend minimum of commercial-vehicle tires, steering $2 billion to create up to 200 joint The estimated 200 joint ventures and suspension components and ventures. are projected to employ a mini- batteries, among other products. Seeks no more than 20 percent GLENN TRIEST mum total of 2,000 and would sup- Posco operates one wholly stake in each. ply large parts makers and au- owned plant in the U.S. — a steel- Seeks JV partners with motor, We want to be enablers, not running tomakers, among other original processing plant in McCalla, Ala. chassis and other component “ equipment manufacturers. suppliers, as well as other the company. — and two in Mexico. It also oper- The steelmaker also seeks com- industries. ” ates a 50-50 joint venture in Pitts- panies looking to bring production Many auto partners will be Steven Bigatti, Posco Ltd. burg, Calif., with U.S. Steel Corp. — back to North America as based in Southeast Michigan. USS-Posco Industries — that sup- “reshoring” continues, Bigatti JVs will create a minimum of gion’s strong automotive concen- stakes in several companies, in- plies the oil and gas industry. said. 2,000 jobs total. tration. Bill Wildern, CEO of the cluding Aichi Steel Corp., supplier Posco employs 23 at its Troy of- “We’re finding that the incre- Plan is part of growth initiative to Farmington Hills-based financial Aisin Seiki Co. Ltd. and Denso Corp. fice and 70 in North America, ex- mental benefit of overseas produc- raise global revenue to $200 advisory firm Hydra Professionals “The keiretsu system is well-es- cluding USS-Posco and its process- tion is offset with complications billion by 2020. LLC, said creating joint ventures to tablished in Japan,” Wildern said, ing plant. from freight and logistics costs,” North American nonsteel access technology is a safe move “and for a large conglomerate like Under Daewoo International, he said. “More and more manufac- automotive revenue projected to for Posco. this (Posco), it really opens up Posco also exports coal from the turers are wanting to come back to reach $500 million by 2015 from “If they’re really good at produc- channels for their product. This U.S. to Russia, Bigatti said. North America, and we can offer $200 million in 2012. ing a commodity, providing anoth- type of strategy can lead to an ex- Globally, Posco employs 34,936 them the best of both worlds: to be er supplier with the commodity in pansion in their revenues and not and is the 146th-largest company back manufacturing in North pects North America nonsteel au- exchange for the technology, creat- a bad way to go after an expan- based on revenue, according to America and very direct access up- tomotive revenue to reach $500 ing joint ventures makes sense — sion.” Fortune’s Global 500 list. stream to the supplier of their raw million by 2015 from $200 million instead of swallowing up entire Bridget Freas, a senior equity Posco completed seven similar material and access to capital as a this year. Total North American companies and creating a compa- analyst covering the metals mar- joint ventures in Asia over the partner.” revenue is projected to rise to $5 ny outside of your core competen- kets for Chicago-based Morningstar past year and plans to add two The aggressive joint venture billion by 2020 from $1 billion in cies,” Wildern said. Inc., said vertical integration is more in China this month, Bigatti strategy is designed to increase 2012, he said. Owning portions of your supply emerging as a trend among steel- said. The ventures manufacture Posco’s revenue by 220 percent to Posco is not limiting the joint base is a strategy — called keiretsu makers. Posco is going in a differ- chassis, wiring and high-perfor- $200 billion globally by 2020 from ventures to just automotive or — that has been used for centuries ent direction by acquiring assets mance components. $62.2 billion with net income of Southeast Michigan, Bigatti said. in Japan. For instance, Toyota on the end-product side. Dustin Walsh: (313) 446-6042, $3.3 billion in 2011. But many would be organized with Group, the conglomerate tied to Toy- “Vertical integration has been a [email protected]. Twitter: Bigatti said the company ex- suppliers here because of the re- ota Motor Corp., owns majority hot topic in steel, but that has been @dustinpwalsh

DTE: Spending push strives to meet renewable energy goal ■ From Page 3 proved their processes and are solar photovoltaic facilities that Hamtramck Assembly Plant, Ford Mo- helping to revitalize this state’s range in size from 500 kilowatts to tor Co.’s Wayne Assembly Plant economy,” Anderson said. (DTE has) asked us, ‘What 2 megawatts for its utility-owned and Blue Cross Blue Shield of Michi- DTE’s Michigan-based suppliers “ SolarCurrents program, said Tom gan’s downtown Detroit parking include companies in a variety of else do you do for customers in Komjathy, DTE renewables pro- garage. industries, including construc- gram manager. Komjathy said next month DTE tion, maintenance, staffing, engi- Michigan that we should know The first round of bids is to iden- plans to open an 80-kilowatt solar neering, energy optimization, re- tify sites. Bids are due Dec. 21, array at its parking lot for its newable energy, natural gas about?’ with preference given for locations downtown Detroit offices. storage and information technolo- ” in Detroit, Komjathy said. Tomczak said DTE is also hiring gy consulting. Cynthia Pasky, Strategic Staffing Solutions Inc. He said DTE doesn’t have an es- Michigan companies for work out- Two companies reaping the ben- timate on how much it plans to side of Michigan. He said several efits of DTE’s new purchasing spend on the SolarCurrents pro- Michigan companies, which he strategy are Southfield-based Bar- ness with them,” said Pasky, For example, Barton Malow is jects, but there will be Michigan would not name, are helping DTE ton Malow Co. and Detroit-based adding that the company has one finishing an office renovation on companies bidding for the con- build gas pipelines in Pennsylva- Strategic Staffing Solutions Inc. outstanding bid with DTE for a the ninth floor of DTE’s corporate tracts. nia. “Our relationship has grown completely new service line. She headquarters in Detroit. So far, DTE has eight solar pro- Binkowski said Barton Malow and developed over the past 21 said the bid is confidential. Over the last five years, jects generating clean energy with has bid for some contracts outside years with DTE, especially the last Chuck Binkowski, Barton Mal- Binkowski said, the revenue value another five or six with 100 to 500 of Michigan in its engineering ser- year,” said Cynthia Pasky, Strate- ow’s vice president of project de- of DTE’s contracts with Barton kilowatts coming online this year. vices division, but he could not gic Staffing’s CEO. “They have livery in the central region, said Malow has increased by 40 percent. Those projects will generate about provide further information be- asked us, ‘What else do you do for the construction company has had The extra work has generated sev- 3 megawatts toward its goal of 15 cause of a confidentiality agree- customers in Michigan that we a long history of working with eral hundred union jobs, he said. megawatts by 2015. Another 5 ment. should know about?’ ” DTE on heavy concrete and civil “When our work slowed at Mon- megawatts is generated from cus- “There is a strong desire and Pasky said that last year Strate- engineering projects, including en- roe, we rotated over to doing the tomer-owned solar plants, he said. commitment to do more in Michi- gic Staffing signed a third contract vironmental work at the Monroe wind farms DTE is developing in “About 90 percent of our renew- gan, and our suppliers here — new with DTE for customer service Power Plant. the Michigan Thumb,” said able energy will come from wind, or older ones — are beginning to consulting services that led to the “We have been able to show Binkowski, adding that the compa- with about 2 percent coming from branch out in areas they didn’t company hiring another 100 em- them the diversity of capabilities ny is constructing roads, concrete solar,” Komjathy said. have before and are wanting to sell ployees, 70 percent of whom are in that Barton Malow has to offer foundations and erecting wind tur- DTE owns and operates several to us,” Tomczak said. Detroit. She declined to reveal the them,” Binkowski said. “DTE real- bines for the DTE project. large solar installations, including Jay Greene: (313) 446-0325, value of the contract. ized we have a strong interior Last week, DTE issued a request projects at Monroe County Communi- [email protected]. Twitter: “We anticipate even more busi- build-out division.” for proposals to purchase larger ty College, General Motors’ Detroit- @jaybgreene 20121008-NEWS--0033-NAT-CCI-CD_-- 10/5/2012 5:00 PM Page 1

October 8, 2012 CRAIN’S DETROIT BUSINESS Page 33 Tigers: New TV deals should cover paychecks www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] enue stream that will allow it to ASSOCIATE PUBLISHER Marla Wise, (313) 446- pay for several huge contracts on 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- the order of Verlander, Cabrera Cabrera may not be such a heavy hitter in marketing 0460 or [email protected] and Fielder’s,” said Gary Gillette, MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] the Detroit-based author, co-editor Miguel Cabrera may have won the Tigers, will earn at least a cou- A drag on Cabrera’s marketing MANAGER, DIGITAL CONTENT STRATEGY Nancy of the ESPN Baseball Encyclopedia Hanus, (313) 446-1621 or [email protected] the first baseball Triple Crown in ple million more from endorse- potential is his personal history DEPUTY MANAGING EDITOR Daniel Duggan, (313) and board member of the Society 45 years, but that doesn’t neces- ments and deals with autograph — and his demeanor. 446-0414 or [email protected] for American Baseball Research. SENIOR EDITOR Bob Allen, (313) 446-0344 or sarily mean you’ll see his face be- and merchandise dealers. “He has to overcome his off- [email protected] “The Tigers also can afford to come ubiquitous on cereal boxes Also hurting Cabrera from po- field problems with alcohol and WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- round out the club with well-paid or TV commercials. tentially earning more is a lack of his low-key personality. Advertis- 8158 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or veterans at other positions when it The Venezuela-born Cabrera — hype surrounding the Triple ers look for the charisma, that X [email protected] makes sense. That is, they don’t SENIOR DESIGNER Jeff Johnston, (313) 446-1608 the slugging De- Crown, David said. factor, which is hard to describe, or [email protected] have to load up with minimum- troit Tigers third “It’s not getting the media play but you know it when you see it, DATA EDITOR Brianna Reilly, (313) 446-0418, wage rookies or low-paid players baseman — for it probably deserves,” he said. and it is present in all top sports [email protected] WEB PRODUCER Norman Witte III, (313) 446- with only a little big-league experi- years has been “Maybe the Triple Crown is such endorsers,” Williams said. 6059, [email protected] ence in order to afford the big pay- one of baseball’s an achievement that we’ve not Cabrera underwent three EDITORIAL SUPPORT Robertta Reiff, (313) 446- 0419; YahNica Crawford, (313) 446-0329 checks that their superstars earn.” premier hitters, seen in so many years, fans don’t months of alcohol treatment be- NEWSROOM (313) 446-0329, FAX (313) 446- Detroit committed $134.4 million but that’s never have a grasp of it.” fore the 2010 season after an Octo- 1687 TIP LINE (313) 446-6766 to player contracts by Opening Day translated into While the Spanish-speaking ber 2009 incident in which he end- REPORTERS (which includes salaries and sign- mass-market Cabrera can be difficult to under- ed up in police custody after a Daniel Duggan, deputy managing editor: (313) 446-0414 or [email protected] ing bonuses, according to tracking merchandising stand when speaking English dur- night of drinking at the Townsend Jay Greene, senior reporter: Covers health care, done by BaseballProspectus.com). appeal. ing post-game interviews, there is Hotel in Birmingham and an ar- insurance, energy utilities and the environment. Cabrera (313) 446-0325 or [email protected] Payroll concerns were largely Sports indus- money to be made in endorse- gument with his wife. Chad Halcom: Covers litigation, higher education, theoretical since there has been no try marketers theorize that Cabr- ments for products targeting In January, he pleaded no con- non-automotive manufacturing, defense contracting and Oakland and Macomb counties. evidence ownership cannot afford era’s recent history of questionable Spanish-language audiences, test to a drunken driving charge (313) 446-6796 or [email protected] to sustain its spending. Ilitch- personal behavior and his limited David said. after a February 2011 arrest in St. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or owned companies generate more command of spoken English may Cabrera has an endorsement Lucie County, Fla. [email protected] than $2.4 billion in annual revenue, Maltin Polar Bill Shea, enterprise editor: Covers media, have limited his attractiveness to deal now for , a nonal- He’s had no subsequent inci- advertising and marketing, the business of sports, and some of that cash is believed to brands — or that he just may not coholic malt beer brewed and sold dents. The Tigers hired a handler and transportation. (313) 446-1626 or subsidize Tigers operating losses [email protected] have been interested in such deals. in his native Venezuela. to keep him company when away Nathan Skid, multimedia editor. Also covers the reported by Forbes.com. The Ilitch Cabrera, 29, is expected to earn Cabrera also has deals to en- from the field; and when the team food industry and entertainment. (313) 446-1654, fortune stems largely from the fam- [email protected] a tidy sum as the first winner in dorse Franklin batting gloves and earned a playoff berth the past Dustin Walsh: Covers the business of law, auto ily’s Little Caesars pizza chain. almost two generations of the New Balance baseball cleats, ac- two seasons, players celebrated suppliers and steel. (313) 446-6042 or Financial specifics on the TV [email protected] Triple Crown — which he won by cording to ESPN’s Darren Rovell. by spraying non-alcoholic cham- Sherri Welch: Covers nonprofits, services, retail deals haven’t been disclosed by leading the American League in He also has done advertising for pagne in the locker room out of re- and hospitality. (313) 446-1694 or baseball or the networks, but de- batting average (.330), home runs Metro PCS and Venezuela’s state- spect for his treatment. [email protected] tails have been leaked to media (44) and runs batted in (139). owned Citgo Petroleum Corp., Cabrera is represented by ADVERTISING outlets and baseball insiders. “From a memorabilia stand- which operates Citgo gas stations Northbrook, Ill.-based SFX Base- SALES INQUIRIES: (313) 446-6052; FAX (313) point, he’s going to cash in imme- in the U.S., said Bob Williams, ball Group, also the agents for his 393-0997 diately,” said Darin David, a se- CEO of Evanston, Ill.-based Burns high-profile teammate, pitcher SENIOR ACCOUNT EXECUTIVES: Matthew J. Revenue gains Langan, Tamara Rokowski nior director in the sports Entertainment & Sports Marketing Justin Verlander, the reigning ADVERTISING SALES Christine Galasso, Lori “With MLB’s national media marketing group at The Marketing Inc., which represents companies American League MVP and Cy Tournay Liggett, Dale Smolinski rights revenues part of the league’s Arm, a Dallas-based marketing that want to hire athletes to en- Young Award winner. CLASSIFIED SALES (313)-446-0351 EVENTS DIRECTOR Nicole LaPointe central funds that are distributed agency. “It remains to be seen on dorse products. In the past, Burns Cabrera’s Triple Crown is only evenly to all 30 clubs, each one will DIRECTOR, INTEGRATED MARKETING Eric Cedo how brands pursue him. He’s not has brokered deals involving De- the 16th time in the history of SALES PROMOTION MANAGER Karin Pitrone see $50 million annually, or an ad- one of the more recognizable play- troit stars such as Barry Sanders, baseball a player has accom- EVENTS COORDINATOR Kacey Anderson ditional $26.28 million each year ers in baseball. This will certainly Isiah Thomas and Kirk Gibson. plished the feat. Hall of Fame out- SENIOR PRODUCER FOR DIGITAL/ONLINE over the $23.72 million they now raise him a big level.” Forbes.com estimated in June fielder Carl Yastrzemski was the PRODUCTS Pierrette Dagg see,” wrote Maury Brown, presi- MARKETING ARTIST Sylvia Kolaski Marketing giants will take a that Cabrera made $150,000 in en- last. In 1967, he hit .326 with 44 SALES SUPPORT Suzanne Janik, YahNica Crawford dent of Portland, Ore.-based Busi- hard look at Cabrera. dorsements last year. home runs and 121 RBI with the PRODUCTION MANAGER Wendy Kobylarz ness of Sports Network. “He’ll certainly have more of- Cabrera winning the Triple Boston Red Sox and won the PRODUCTION SUPERVISOR Larry Williams A source familiar with the deals fers,” David said. “The premier Crown “will take him up a level American League MVP. CUSTOMER SERVICE told Crain’s on the condition of brands with the biggest budgets, with advertisers setting the stage The only other Tiger to do it MAIN NUMBER: Call (877) 824-9374 or write anonymity that the contracts basi- like Nike and Pepsi? They may be for national endorsement oppor- was Ty Cobb in 1909, when he hit [email protected] SUBSCRIPTIONS $59 one year, $98 two years. cally ramp up payments immedi- willing to invest in him and capi- tunities,” Williams said. “The .377 with nine home runs and 107 Out of state, $79 one year, $138 for two years. ately in 2014 rather than gradually. Outside U.S.A., add $48 per year to out-of-state talize on it, but it’s hard to say at Tigers winning the World Series RBI. Detroit lost the World Series rate for surface mail. Call (313) 446-0450 or Last week, baseball announced this point.” would help significantly as adver- to the Pittsburgh Pirates that year (877) 824-9374. new eight-year broadcast rights He estimated that Cabrera, tisers love to associate their prod- in seven games. SINGLE COPIES: (877) 824-9374 REPRINTS: (800) 290-5460, ext. 125; deals with Atlanta-based Turner whose salary is $21 million with uct or service with winners.” — Bill Shea (717) 505-9701, ext. 125; or lindsay.wilson Broadcasting System Inc. and Los @theygsgroup.com TO FIND A DATE A STORY WAS PUBLISHED: Angeles-based Fox Sports Media (313) 446-0406 or e-mail [email protected] Group that run through 2021. about $35.5 million annually. Ⅲ The Tigers get back their por- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Under the new deal, TBS will SHARED MONEY CRAIN COMMUNICATIONS INC. tion of the Central Fund TV money. pay an estimated $325 million an- Major League Baseball’s Central Fund is a pool of revenue from several CHAIRMAN Keith E. Crain nually, up from its current yearly sources that is apportioned equally among the 30 teams. It’s separate Based on last year’s $400 million PRESIDENT Rance Crain pool, that refund would be between SECRETARY Merrilee Crain $148.6 million rights fee. That’s a from MLB’s revenue sharing system, which transfers payments from high- TREASURER Mary Kay Crain total of $2.6 billion for the contract. revenue teams to low-revenue franchises. Baseball doesn’t disclose the $13 million and $14 million. Executive Vice President/Operations financial details of either system. These are the revenue sources that fuel Baseball teams also see local rev- William A. Morrow Fox will up its average annual Group Vice President/Technology, The New the Central Fund: enue from ticket sales, concessions, Manufacturing, Circulation rights fee to $495 million, Robert C. Adams York Times reported, for a total of Ⅲ National media rights deals Ⅲ Internet rights (exploding in value merchandise, parking and other Vice President/Production & Manufacturing $3.9 billion over eight years. The (mostly TV, but a little extra comes due to video consumption on streams, such as from the Central Dave Kamis from radio) mobile devices) Chief Information Officer current contract has the News Corp.- Fund. Estimates on that total Cen- Paul Dalpiaz owned network paying $306 million. Ⅲ International media rights Ⅲ National sponsorship deals tral Fund share were unavailable. Chief Human Resources Officer Ⅲ Ⅲ The Tigers had $8.2 million in Margee Kaczmarek Baseball inked an eight-year re- MLB Properties merchandise Miscellaneous licensing revenue Director of Audience Development Operations newal with ESPN in August that profits (from souvenirs like jerseys, (via MLB Properties) operating income last season on Michelle Roth more than doubled the old deal caps and other memorabilia) revenue of $217 million, G.D. Crain Jr. Founder (1885-1973) Forbes.com estimated this year. Mrs. G.D. Crain Jr. Chairman (1911-1996) ($306 million) to $700 million. The Source: Gary Gillette, the Detroit-based author, co-editor of the ESPN Baseball EDITORIAL & BUSINESS OFFICES: contract, worth $5.6 billion, also Encyclopedia and board member of the Society for American Baseball Research. That was after three straight sea- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 runs through 2021. sons of operating losses, the finan- Cable address: TWX 248-221-5122 AUTNEW DET All three deals begin in 2014. tract signed with Fox Sports De- 10-year contract signed with Fox cial website said. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the The combined annual rights fees troit in March 2008 — a deal that Sports Detroit in March 2008 to “With the club going to the post- third week of August, and no issue the third week will increase to $1.5 billion annual- blossomed this year as the network broadcast 148 of the team’s 162 season in 2012, Detroit will profit of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. ly from the current $711 million. saw record-setting ratings that led games. handsomely in 2013 and 2014. And, Periodicals postage paid at Detroit, MI and unless the Tigers get blown out additional mailing offices. POSTMASTER: Send Baseball will collect $12.1 billion all of baseball for local viewership. Ⅲ However, Detroit doesn’t get address changes to CRAIN’S DETROIT BUSINESS, over the life of the deals, up from Here’s how the Tigers’ estimat- to keep all of its local TV money: A early in October this year, the 2012 Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in the current $5.6 billion. ed TV revenue is calculated: portion of local broadcast rights postseason will provide a nice lit- U.S.A. Ⅲ $50 million from the national fees — believed to be about 31 per- tle windfall at the end of a prof- Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. baseball deals. cent — goes into baseball’s rev- itable year,” Gillette said. Reproduction or use of editorial content in any Tigers TV money pot Ⅲ Sources familiar with the deal enue-sharing pool, which was re- Bill Shea: (313) 446-1626, manner without permission is strictly prohibited. The Tigers also get about $50 have told Crain’s that the team re- portedly $400 million in 2011. So [email protected]. Twitter: million a year from a 10-year con- ceives $50 million annually from a that drops Detroit’s FSD money to @bill_shea19 20121008-NEWS--0034-NAT-CCI-CD_-- 10/5/2012 4:51 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 8, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 29-OCT. 5

beds eight miles from Permanente’s Mid-Atlantic named among the top 20 in McLaren’s Pontiac hospital, St. Joseph Ann region. sales of Major League Base- but state regs limit the ball jerseys from Easton, Debate’s transfer of beds to two miles. Pa.-based Majestic since the Timmer said McLaren Arbor plans COMPANY NEWS All-Star break. Pitcher could appeal the state’s TRW Automotive Hold- Justin Verlander is ninth, CON decision, and it could ings Corp. stock rose 7.6 per- first baseman Prince Fielder file a lawsuit. It also has re- $29M addition 15th and third baseman impact on cent to $47.02 — the largest cruited Sen. Mike Kowall, R- intra-day gain in more than Miguel Cabrera 19th. The Hamburg Township, to per- t. Joseph Mercy Hospi- seven months — after the New York Yankees and Texas suade legislators to approve tal, Ann Arbor, sub- Livonia-based company au- Rangers were the only other the new hospital. S mitted plans to the thorized a $1 billion share teams with three players state up in air Michigan Department of Com- repurchase program. on the list. Macomb to honor muniity Health for a $29.3 Vehicle Production The 2012 Cattle Baron’s undits were just political spending. million addition to replace Group LLC, producer of the Ball at Joe Louis Arena netted about unanimous in Romney and Obama will pie baron, others nine outpatient operating MV-1 wheelchair-accessi- $1.2 million for the American P their belief that Mitt debate next at 9 p.m. Thurs- rooms with larger, updated Cancer Society Great Lakes The Macomb Foundation is ble vehicle, plans to relo- Romney outdueled President day at Centre College in rooms that would accom- cate its Fort Lauderdale, Division, maintaining the Barack Obama in last week’s Danville, Ky. hosting its annual Macomb modate robotic equipment. event’s spot as one of the top Hall of Fame event Oct. 11, Fla., headquarters to Allen presidential debate. The next step is submis- Park and will move about one-night fundraisers in Whether that means the honoring county business sion of a formal certificate metro Detroit. Hospital system and community leaders. 10 people there. The compa- needle moves at all for Rom- of need application to the ny employs about 200 in A pollster hired to ney among voters in his na- symbolically fights city hall This year’s 2012 in- state. question Detroit residents ductees include Wendy Michigan. tive state remains to be seen. General Motors said it in 2001 about Kwame Kil- Poll after poll has shown McLaren Health Care still Achatz, co-owner of Chester- plans to build a $303.7 mil- will close its hydrogen fuel- patrick’s first run for mayor the president with a sharp field Township-based Achatz ON THE MOVE testified that his firm was lion hospital in Indepen- Handmade Pie Co.; Robert cell research operation near lead over the Republican Visteon Corp. an- paid by Kilpatrick’s pur- dence Township despite Cannon, Clinton Township Rochester, N.Y., and move it challenger, although no nounced the involuntary ported charity, The Detroit having its certificate of need supervisor; Mike Chirco, to Michigan, the AP report- statewide post-debate resignation of Executive News reported. Daniel application rejected June 25 president of Macomb Town- ed. Most of the 220 salaried polling data had been pub- Vice President and CFO Gotoff said his firm’s bills by the Michigan Department ship-based MJC Cos.; Steve workers in Honeoye Falls, lished as of Friday. Martin Welch. He will be re- were paid by the Kilpatrick of Community Health. Harrington, member of Clin- N.Y., will be offered the The Sept. 27 “We Ask placed in the interim by Civic Fund; prosecutors al- But in the meantime, it ton Township-based Ad- chance to move to GM’s en- America” national tele- Michael Widgren, vice presi- lege the expense was illegal decided to make a point by vanced Cardiothoracic Sur- gine and transmission re- phone poll of 1,064 likely vot- dent, corporate controller because IRS laws barred filing an application for a geons PLLC and medical search unit in Pontiac. ers had the president lead- and chief accounting offi- the fund from paying mon- medical office building of director of cardiothoracic ing 52 percent to 40 percent. cer of the Van Buren Town- ey to a political campaign. the same 400,000-square-foot surgery at Henry Ford Ma- Seven percent were undecid- ship-based supplier. Vis- OTHER NEWS Detroit Mayor Dave size at the same price on the comb Hospitals in Clinton ed, and slightly more than 1 teon earlier named Tim Bing suspended Police Chief same site. Township; and the Wujek The union represent- percent intend to vote for Leuliette its permanent Ralph Godbee Jr. for 30 days Jeff Timmer, a spokesman and Calcaterra families, ing Detroit Water and Sewer- Libertarian Party candidate president and CEO. amid allegations that the for McLaren with Lansing- owners of Wujek-Calcaterra & age workers said a five-day Gary Johnson. The error mar- Clayton & McKervey PC married chief had a sexual based Sterling Corp., ac- Sons Inc. funeral homes in strike has ended and that gin was 3.1 percent. named Kevin McKervey man- relationship with a subor- knowledged that McLaren Sterling Heights and Shelby 36 employees fired for walk- Neither candidate is aging di- dinate. doesn’t intend to construct Township. ing out will get their jobs spending on Michigan TV rector, The Michigan Film Of- the building. The event, from 5:30 to back. Talks with manage- advertising, but they’re replac- fice has $58 million in in- “It was done to illustrate ment were to resume. sending their backup quar- 9:30 p.m. at Mirage Banquets ing Don centives available for quali- terbacks into the state: Vice the irony that while (com- & Catering on 18 Mile Road in The Southeast Michigan Clayton, Purchasing Managers Index fying film and digital media President Joe Biden was in munity health) denied Clinton Township, will fea- who as- projects during the just- Detroit in August, and GOP McLaren’s request to build ture an arts and culture rose to 50.6 points in Sep- sumes tember from 45.7 in August, started fiscal year, the De- vice president candidate a hospital, this (same de- theme with displays from the new troit Free Press reported. Paul Ryan is expected to partment) granted a waiver the Detroit Institute of Arts and ending a three-month de- position cline. A figure above 50 in- Grand Rapids-based campaign here this month. for the same exact specs and Mt. Clemens’ Anton Art Cen- of chair- Priority Health, the state’s The lack of TV ad spend- costs” just because it is a ter. The foundation, the non- dicates economic growth. man at Comerica Bank chief second-largest health main- ing is a sign that Michigan medical office building, profit arm of the Macomb McKervey the economist Robert Dye said tenance organization, has isn’t a swing state, and it Timmer said. County Chamber of Commerce, Southfield tax and account- that primarily due to politi- been selected by the Michi- would take a significant Unlike a hospital, though, has inducted 53 leaders ing firm. cal uncertainty, his forecast gan Office of Financial and In- post-debate shift in the polls an office building — even since the Macomb Hall of Novi-based Cooper- for the first six months of surance Regulation as the to change that. one for doctors — is not a Fame was founded in 2000. Standard Holdings Inc. 2013 is actually three: one, benchmark HMO for the “I think you’ll know health facility under state Tickets for the event, named Johnson Controls Inc. decent growth in gross do- state’s health insurance ex- (Michigan is in play) if you regulations, and so Commu- which includes a reception, executive Jeffrey Edwards mestic product of 3 percent; change. The U.S. Depart- see some advertising on the nity Health ruled that a cer- silent auction and dinner, president and CEO, effec- two, a “growth recession,” ment of Health and Human Obama side,” said Rich tificate of need was not need- are $175 each and can be tive Oct. 15. He succeeds with growth of 1.5 percent to Services is expected to give Robinson of the Lansing- ed. The department rejected bought by calling (586) 493- John McElya. Edwards also 2 percent; and, three, a re- final approval. based Michigan Campaign Fi- the hospital plan because it 7600 or online at macomb- has been elected to the cession with a GDP decline The Ilitch family still nance Network, which tracks called for transferring 200 countychamber.com. board of directors. of about 2 percent. intends to build a hockey Auburn Hills-based A financial consultant arena for their Detroit Red RGIS LLC announced that hired by businessman Wings but won’t disclose John Ling will replace CEO Manuel “Matty” Moroun, the preferred location, and Bruce Barkus, who is retir- owner of the Ambassador there are no formal talks ing from the inventory, Bridge, said Michigan is about the Detroit Pistons supply chain and store- likely to lose about $325 joining them in a new facil- BEST FROM THE BLOGS mapping company. Ling million in expected tax rev- ity. So said Ilitch Holdings had been COO. enue over the next 20 years Inc. President Chris Ilitch READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Naomi Patton, who re- as traffic diverts from exist- during a sports-event orga- cently resigned as Detroit ing border crossings with nizer expo at Cobo Center. Sound of gunfire a reminder Blues’ conversion good or bad? Mayor Dave Bing’s press Canada to the New Interna- Troy-based Flagstar secretary, was named se- tional Trade Crossing. Bancorp Inc. has signed a It’s one thing to Is Blue Cross a nior director of public rela- The Fox Sports Detroit digital marketing deal with write“ about Detroit and monopoly?“ ... Should the tions for Auburn Hills- cable network set a viewer- the University of Michigan’s all its failings from the insurance code be based Palace Sports & ship record for its 148 De- athletics department. Fi- comfort of a newsroom. tweaked because of Blue Entertainment LLC. troit Tigers game broadcasts nancial terms were not dis- It’s quite another to Cross' proposed closed. hear gunshots ring out conversion (into a Mike Freed has been this season, thanks to a 41 as dusk settles on the nonprofit mutual)? named president and CEO percent ratings increase far east side of the of Grand Rapids-based Pri- compared with last year. BITUARIES city. ” ority Health, moving up It’s believed that Detroit O from interim. He replaced led all of Major League Base- Peter Fletcher, a promi- ” Kim Horn, who resigned ball in local TV ratings in nent Republican supporter Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Jay Greene’s blog about health care, May 1 and will this month 2012, according to industry and owner of the Credit Bu- can be found at www.crainsdetroit.com/skid insurance and the environment can be found at take over as head of Oak- reports. In a separate re- reau of Ypsilanti Inc., died www.crainsdetroit.com/greene land, Calif.-based Kaiser port, three Tigers were Sept. 29. He was 80. DBpageAD.qxp 10/1/2012 8:58 AM Page 1 DBpageAD.qxp 8/27/2012 11:22 AM Page 1

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All loans are subject to credit approval and may require automatic payment deduction from a PNC Bank Business Checking account. Origination and/or other fees may apply. PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Cash Flow Options is a service mark of The PNC Financial Services Group, Inc. © 2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC