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www.crainsdetroit.com Vol. 27, No. 42 OCTOBER 10 – 16, 2011 $2 a copy; $59 a year

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Page 3 Bing, banks, business New horizons and $1 billion of clout The bid Beer buzz: Nonprofit for D’s stars biergarten Huge deals possible for Verlander, Stafford draws a from Brazil crowd, raises BY BILL SHEA funds CRAIN’S DETROIT BUSINESS PITCHMEN Justin Verlander is on the cusp Current paid endorsement deals $725M deal for Hayes Lemmerz of national superstardom. for Justin Verlander and Matthew Stafford, as listed by their agents: Matthew Stafford is a few paces CRAIN’S behind but on the same path. Verlander comes from unexpected source MICHIGAN BUSINESS The successes of their teams and Ⅲ Phiten: Japanese maker of BY DUSTIN WALSH M&A experts are targeting Brazil their personal accomplishments titanium jewelry for athletes CRAIN’S DETROIT BUSINESS as an emerging market for invest- on the field this season have raised Ⅲ Reebok of Canton, Mass. ment deals — not the other way Grand Rapids plants the profiles of both athletes, and Ⅲ Rawlings of St. Louis When a Brazilian maker of around. their agents told Crain’s that en- seeds to Ⅲ 2k Sports: New York City- wheels and chassis announced a “Admittedly, Iochpe has been dorsement deals and corporate re- based video game developer deal last week to purchase the under the radar screen from an further quests for them are at an all-time Ⅲ PLB Sports: Pittsburgh-based Northville Township- M&A standpoint, un- high. downtown maker of athlete-endorsed foods based supplier Hayes til now,” said Cliff The attention from marketers, Ⅲ Tuff Toe: Orange, Calif.-based Lemmerz International Roesler, managing media and fans soon could in- Iochpe has growth, Page 11 maker of cleat toe protectors Inc., it took merger director of the Birm- crease further. “ Ⅲ Waldron GMC of Davison and acquisition ex- been under the ingham-based M&A Verlander, the ace pitcher for perts by surprise. advisory firm Angle Crain’s Lists the Detroit Tigers, is expected to be Stafford The North Ameri- radar. Advisors LLC. “Despite the American League’s Cy Young Ⅲ Nike of Beaverton, Ore. can automotive in- Brazil taking a cen- Award winner — the question now ” Ⅲ Power Balance: Lake Forest, dustry’s growth po- Cliff Roesler, ter-stage position in Michigan’s largest is whether the ballot will be a Calif.-based maker of wristbands tential has Chinese, the burgeoning unanimous vote Angle Advisors LLC manufacturers, Page 22 Ⅲ Blue Cross French, German and South American by sportswrit- Blue Shield of Italian companies, among others, markets, we still see the over- ers — and is a Michigan in hunting for stateside investments. whelming direction of investment Largest group health serious con- Detroit But Brazilian buyer Iochpe-Max- to be flowing into Brazil, not out tender for ion SA’s plan to pay $725 million, from Brazil.” providers, Page 33 the AL Most Valuable including $23 million in debt, for But Brazil will be the world’s Player award. the world’s largest wheel maker Stafford has led the De- was an unexpected play. Most See Brazil, Page 39 This Just In See Stars, Page 40 Detroit-area wages edge up There’s good news for De- troit in the latest data from Realcomp asks Supreme Pay Scale Index, an interna- tional salary tracking firm. Wages in the metro area have suffered in recent years, growing slowly in 2007 and Court to hear listing case 2008 before dropping in 2009. By the third quarter of 2011, BY DANIEL DUGGAN the high court to take the case, al- wages had grown 0.5 percent, CRAIN’S DETROIT BUSINESS though the court so far as not re- meaning Detroit-area pay is sponded. back at mid-2007 levels, ac- When Realcomp II Ltd. set up its “I know the chances are slim, cording to the firm. policy in 2001 on how it handles but we’ve gone so far with this Though manufacturing real estate listings from nontradi- case, we have to try to take this fi- earnings haven’t grown na- tional real estate companies, the nal step,” she said. “It’s a matter of tionally, Detroit has experi- multiple listing service expected seeing this through to the end.” enced some rebound, thanks some controversy. At issue is how a multiple list- in part to the automotive But the organization’s leaders ing service should handle the new bailout and corporate re- had no idea that after 10 years — breeds of real estate listings. structuring by Chrysler Group and $2 million in legal fees — the Under a traditional brokerage LLC and General Motors Co. fight still would be going on. contract, called an “exclusive See the data: www.payscale And after losing a fight with the right to sell,” a real estate agent is .com/payscale-index. Federal Trade Commission and los- the exclusive agent for selling a — Nancy Kaffer ing in the U.S. Court of Appeals in home. When that broker sells the April, Realcomp CEO Karen Kage home, he or she keeps a portion of Michigan Briefs: Weekly wants to continue the fight before feature debuts, Page 2 the U.S. Supreme Court, petitioning See MLS, Page 41 ASSOCIATED PRESS PHOTOS | ILLUSTRATION BY JEFF JOHNSTON/CDB NEWSPAPER 20111010-NEWS--0002-NAT-CCI-CD_-- 10/7/2011 5:15 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 10, 2011

MICHIGAN BRIEFS WHAT HAPPENED TO ‘THIS JUST IN’? New Amway service center Starting this week, we replace includes technology that talks East-west rapport: From pitching insults to pitching for … Olympics? the bulk of our traditional week- ly late-breaking news feature Amway North America will launch When Thom Connors stepped off a bus in Grand Connors and others say the two sides are well be- with a roundup of Michigan a $9.9 million Midwest regional ser- Rapids as part of a delegation aiming to forge yond introductions. The visit was an outcome of dis- business news. vice center in Ada that features stronger ties among executives cussions by officials at the Detroit and Grand Rapids The reason: We’re already some of the latest technology in or- from the Detroit area and West chambers during the Detroit chamber’s Mackinac breaking 10 stories a day on av- der fulfillment. Among the fea- Michigan, his visit was far from a Policy Conference on Mackinac Island in early June. erage at crainsdetroit.com. In tures: A system that tells employ- courtesy call. As the nearly 35 visitors from Detroit mixed with fact, items in Week on the Web, ees wearing headsets the number of The regional vice president for West Michigan executives, the group came up with on Page 42, come directly from items in orders and allows them to SMG in Detroit and general manag- ideas that suggested little semblance of turf wars of our website. “Late breaking confirm orders by voice and track er of Cobo Center has worked close- years past. David Frey, chairman of the Frey Founda- news” on Friday is posted im- inventory with fingertip scanners ly with Richard MacKeigan, the tion in Grand Rapids and co-chairman of community mediately on our site, making it and mini-terminals on their wrists. SMG regional general manager organization Grand Action, floated the idea that De- a bit stale for Monday print The 214,000-square-foot center, who oversees management of Van troit should try to become the host city of the 2020 readers. opening midmonth at the head- Andel Arena, DeVos Performance Hall Summer Olympics, primarily as a way for the state At the same time, Crain’s has quarters of Ada-based Amway Corp., Connors and DeVos Place in Grand Rapids. to rally around Motown. ventured outside its traditional is expected to service about half of Connors sees the future of Detroit and Grand When Detroit civic leader and retired auto dealer Southeast Michigan footprint to Amway North America’s cus- Rapids being intimately linked with SMG’s Tarik Daoud informed the group that such a propos- create a monthly Crain’s Michi- tomers, company spokesperson statewide strategy: Attract associations and large al was found to be too expensive, Grand Rapids de- gan Business section (this week Clare Wade said. Amway moved corporations that alternate between the east and veloper Sam Cummings said he thought West Michi- starting on Page 11) and a free its distribution center in Ada to a west sides for their annual gatherings to select Cobo gan could help fund the proposal. weekly e-newsletter by the same renovated building at its head- and DeVos Place. And after hearing that the U.S. Olympic Committee name. quarters. Although the Sept. 30 bus visit, sponsored by the already has decided not to bid on the 2020 summer The interests of many busi- The company would not disclose Detroit Regional Chamber and Grand Rapids Area Cham- games, Frey flatly stated, “Then let’s try for 2024.” nesses crisscross the state. employment at individual loca- ber of Commerce, was tagged “East Meeting West,” — Matthew Gryczan These three features, including tions but said it employs 4,500 full- the weekly roundup, will help time people in the U.S. Amway par- connect the dots. Bob Allen, edi- ent Alticor Inc. posted revenue of nent efforts to turn the conversa- officials have been upset that the .com/crainsmichiganbusiness. tor of all three Crain’s Michigan about $9.2 billion last year in sales, tion about government consolida- coalition has been pushing the Sign up for Crain’s Michigan Business reports, can be reached distribution and packaging of con- tion into reality has decided to merger without hearing what they Business e-newsletter at crains at [email protected]. sumer products in more than 80 take a break for a period of what it have to say. detroit.com/crainsemails. countries and territories. calls “listening carefully.” A statement from One Kent said — Matthew Gryczan Business leaders behind the One the group hoped its campaign Kent Coalition said they will not would lead to “community conver- draft legislation allowing the merg- sation and movement towards CORRECTION Grand Rapids, Kent County er of Kent County and Grand Rapids. greater collaboration and consoli- Ⅲ A People item in the Oct. 3 issue should have said David Jaffe has been merger backers stop to listen The Grand Rapids Press said dation.” named vice president of Guardian Industries Corp., Auburn Hills, and re- Grand Rapids Mayor George Find business news from mains general counsel and secretary. One of the state’s most promi- Heartwell and Kent County elected around the state at crainsdetroit

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October 10, 2011 CRAIN’S DETROIT BUSINESS Page 3 Bing: Banks in city get city’s biz Inside “I don’t have a target in my mind Detroit uses its $1B clout to leverage more lending for the amount of accounts (we should have), BY NANCY KAFFER business loans to Detroiters. And has 156 bank accounts at six but I’m going to AND TOM HENDERSON he’s using the city’s banking busi- banks, down from 300 accounts in continue to look CRAIN’S DETROIT BUSINESS ness as leverage to make it happen. 13 banks in 2009. at that, and I’m The city had deposits and invest- When picking which banks to going to try to re- The message delivered by De- ments of roughly $1 billion with fi- cut, Bing said he considered duce where it troit Mayor Dave Bing to banks is nancial institutions, according to whether they did business in the makes business simple: If its comprehensive annual financial city. sense,” he said. EX-MAYOR’S TALE you want report filed at the end of the 2009-10 “That played a role,” he said. “The same is to do busi- fiscal year, the most recent year for “They weren’t doing that much, true for the Kilpatrick: Bank switch ness with which such a report is available. but yet it took the same kind of amount of lend- made enemies, Page 38 Detroit, The city spent $1 million in time, energy and effort to reconcile ing institutions Bing Chasing green dreams you’d bet- banking fees last year, said Dan Li- some of those accounts.” we should be doing business with. I ter do business in Detroit. jana, a communications manager And Bing, interviewed by want to make sure we get maxi- at Focus: Hope incubator, Bing says he’d like to see more in Bing’s office. Detroit uses 11 fi- Crain’s on Wednesday, said he’s banks making home and small- nancial institutions and currently not done. See Banks, Page 38 Pages 30-31

Company index Survey aims to These organizations appear in this week’s Crain’s Detroit Business: Advocate Commercial Advisors of Michigan ...... 6 Asterand ...... 21 match volunteers Bank of America ...... 4, 38 Beaumont Hospital ...... 23 CB Richard Ellis ...... 6 Chase Bank ...... 4 Clean Emission Fluids ...... 30 with opportunities Cobo Center ...... 16 Comerica ...... 4 Conway Mackenzie ...... 39 Nonprofit collaborative Crittenton Hospital Medical Center ...... 25, 27 Deloitte ...... 41 Detroit Lions ...... 40 sees centralized resource Detroit Regional Chamber ...... 20 Detroit Tigers ...... 1 BY SHERRI WELCH Edwards Bros...... 21 CRAIN’S DETROIT BUSINESS Flagstar Bank ...... 4, 38 Focus: Hope ...... 30 Nonprofit leaders in the region have set a Ford Motor ...... 21, 41 course to address a rising area of interest in Foster Swift Collins & Smith ...... 41 philanthropy: volunteerism. FSBO Michigan ...... 41 Fusion Coolant Systems ...... 30 With an eye on broadening volunteer en- General Motors ...... 6, 21 gagement in the region and strengthening George P. Johnson ...... 21 the volunteer structure, the Southeast Michi- Hantz Bank ...... 38 gan Volunteer Collaborative is surveying hun- Hayes Lemmerz International ...... 1 Health Plan of Michigan ...... 32 dreds of volunteers to find out when, how MARVIN SHAOUNI Henry Ford Health System ...... 24 and why they volunteer. Crowds of 700 to 1,000-plus have flocked to Tashmoo Biergarten in Detroit’s West Village on Sundays, far Henry Ford Hospital ...... 23 The group, led by the Michigan Nonprofit As- beyond planners’ expectations of about 300 a day. HoMedics ...... 21 sociation, hopes to use that data to identify International Automotive Components Group . . . . . 21 ways to engage more volunteers and find ge- Issue Media Group ...... 41 ographical and other gaps in volunteering Joyce Julius & Associates ...... 40 and funding to develop a centralized re- Lippitt O’Keefe ...... 41 McGraw Wentworth ...... 28 source matching volunteers with nonprofits Biergarten tastes success Meritor ...... 21 looking for help. Michigan Municipal League ...... 29 “Alignment is very powerful, but we under- Michigan Nonprofit Association ...... 3 stand there may be com- Michigan State University Extension ...... 31 peting agendas around the Founders toast volunteers, eye expansion MSX International ...... 21 table,” said Donna Mur- Oakwood Healthcare ...... 25 BY NATHAN SKID Prestolite Electric Holding ...... 21 ray-Brown, senior director CRAIN’S DETROIT BUSINESS Priority Health ...... 28, 32 of capacity building and di- There were a Realcomp II ...... 1 rector of the metro Detroit When Aaron Wagner and Suzanne Vier de- “ Southeast Michigan Volunteer Collaborative ...... 3 partnership for the Michi- cided to open Tashmoo Biergarten in Detroit’s lot of people that St. John Hospital & Medical Center ...... 23 gan Nonprofit Association. Talmer Bank ...... 4 West Village this month, they had a simple Tashmoo Biergarten ...... 3 “Collaborating offers idea. said this could The Power Alternative ...... 31 networking and a chance Provide an outdoor venue for fall fun, sell The Villages Community Development ...... 39 to share best practices — Michigan beer and raise some funds to support University of Detroit Mercy ...... 31 Murray-Brown not be done. elements of capacity economic development in one pocket of Detroit. ” University of Michigan Hospitals ...... 23 building,” she said. The community response? Overflowing sup- Suzanne Vier, “But the main, overarching goal is to con- port. Tashmoo Biergarten nect volunteers to volunteer opportunities.” Fifty volunteers helped prepare the site, and Department index Several individual organizations try to more than 1,000 people showed up at the bier- was an example of a Detroit do-it-yourself match volunteers with nonprofit volunteer garten on its first day. grassroots project. BANKRUPTCIES ...... 6 opportunities and needs, including Arise De- Vier and Wagner first got the idea for the Wagner’s experience as a team member for BRIEFLY ...... 37 troit Inc., the “I’m a Believer” campaign Tashmoo Biergarten from a New York Times ar- the event marketing and promotions group at BUSINESS DIARY ...... 36 about Detroit and United Way for Southeastern ticle on the popularity of biergartens in New Warren-based Campbell-Ewald Co., coupled with CALENDAR ...... 36 Michigan, Murray-Brown said. York. So they decided to bring the idea to De- Vier’s knowledge of running Detroit-based Sim- “We feel we can be so much stronger if we troit ply Suzanne LLC, a growing granola company, CAPITOL BRIEFINGS...... 29 align in addressing the region’s challenges,” “I literally asked why we aren’t doing this helped the duo overcome obstacles they faced CAREERWORKS ...... 35 such as illiteracy or public safety concerns, here,” Vier said. in opening the city’s first pop-up biergarten. CLASSIFIED ADS ...... 37 she said. Five months later, their vision became a real- In all, Vier said she and Wagner spent only KEITH CRAIN...... 8 With a portion of a $206,000 grant from the ity on Van Dyke between Agnes and Coe LETTERS...... 8 See Volunteers, Page 41 streets. When it opened Sept. 25, the biergarten See Biergarten, Page 39 MARY KRAMER ...... 11 OPINION ...... 8 House partiers The daily OTHER VOICES ...... 9 Crain's delivers news every THIS WEEK @ Scenes from this year's Crain's PEOPLE ...... 35 House Party can be viewed at weekday to email inboxes. Sign up WWW.CRAINSDETROIT.COM www.crainsdetroit.com/video at www.crainsdetroit.com/getemail RUMBLINGS ...... 42 WEEK ON THE WEB ...... 42 20111010-NEWS--0004-NAT-CCI-CD_-- 10/7/2011 5:16 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 10, 2011

Friendly Chase Bank passes Comerica for and Familiar. top spot in deposit market share

Scan this QR code to visit BY TOM HENDERSON our website and see how CRAIN’S DETROIT BUSINESS DEPOSIT MARKET SHARE, SOUTHEAST MICHIGAN Kosch can work for you. Chase Bank has surpassed Comer- 2011 ica as the top bank for deposit mar- Bank Branches Deposits (billions) Market share ket share in Southeast Michigan, 1. Chase 176 $20.8 22.24% according to figures compiled by 2. Comerica 163 19.8 21.09% the Federal Deposit Insurance Corp. 3. Bank of America 140 12 12.77% for the year that ended June 30, Call (248) 608-0690 or Email 4. PNC 112 10.5 11.24% while Bank of America continued its 5. Flagstar 70 5.6 5.97% downward slide. [email protected] 6. Charter One 101 4.5 4.79% Bankers and analysts expect 7. Fifth Third 73 4.2 4.46% Bank of America’s share to contin- 324 East Street ue to decline in light of the recent 8. Huntington 52 3.9 4.17% Rochester, MI announcement that the bank 9. TCF 54 2.2 2.36% 48307 would begin charging most debit 10. Citizens 37 1.4 1.46% (248) 608-0690 card customers a monthly fee of $5 beginning in 2012. 2010 The bank announced the fee after 1. Comerica 163 $18.9 21.06% the federal Durbin Interchange 2. Chase 176 16.9 18.84% Amendment took effect Oct. 1, cut- 3. Bank of America 150 11.8 13.23% ting the fee banks with more than 4. PNC 112 10.6 11.86% $10 billion in assets can charge mer- 5. Flagstar 70 5.8 6.48% chants for debit-card transactions from about 42 cents to 21 cents. 6. Charter One 101 4.6 5.18% Banks with less than $10 billion in 7. Fifth Third 74 4.4 4.95% assets can continue to charge the 8. Huntington 49 3.6 4.03% higher fee. Bank of America has 9. TCF 54 2.0 2.24% about $2.3 trillion in assets. 10. Citizens 37 1.4 1.56% Chase had $20.8 billion in de- Source: Federal Deposit Insurance Corp. posits in Livingston, Macomb, Oak- land, Washtenaw and Wayne coun- ties, for a market share of 22.24 Web troubles had nothing to do charge the fees. percent. Comerica had $19.8 billion with hackers or the volume of re- The Lansing-based Michigan and a share of 21.09 percent. Bank of sponse from debit card users. Credit Union League has begun America was third, with $12 billion “For customers who don’t use a trumpeting debit card and other and 12.77 percent. debit card, there won’t be a fee. If bank fees as reasons for con- Two years ago, Bank of America you use it and find it valuable, sumers to shift their deposits, and had a market share of 20.9 percent, there’s a cost,” he said. some credit unions are expected to ranking just behind Comerica Cockrell stressed that Michigan launch similar promotions. (22.3) and ahead of Chase (15.2). will remain an important market David Provost, president and Bank of America’s share dropped for the bank. CEO of Troy-based Talmer Bank, the to 13.2 percent last year. Terry McEvoy, an analyst with state’s fastest-growing bank — in Chase also is No. 1 statewide, New York-based Oppenheimer & Co. 2009, it was the 136th-largest bank with $25.6 billion in deposits and a Inc. who covers regional and com- with $64.3 million in deposits and a market share of 16.2 percent, with munity banks, said he expects market share of 0.04 percent, and Comerica second at $21.8 billion Bank of America to lose market as of June, it was 14th-largest, with and 13.8 percent. PNC Bank is third share because of the debit fees. deposits of $1.4 billion and a share at $15 billion and 9.6 percent, and “Now is a great opportunity for of 0.88 percent — said he will not Bank of America is fourth at small community banks to not do any marketing based on Bank $14.3 billion and 8.3 percent. only highlight local decision-mak- of America’s fee announcement. Two years ago, Bank of America ing, but to play into the anti-big He said it was unfair for the fed- was second at 14.1 percent, with bank theme out there,” he said. eral government to let small banks Comerica first at 14.5 percent and McEvoy said the bank, which charge higher fees than large banks Chase third at 11.8 percent. Bank has been under enormous finan- and expects the law will be modi- of America fell to fourth last year. cial strain since it bought the fail- fied, either to hit small banks, too, Kieth Cockrell, Bank of Ameri- ing mortgage giant Countrywide — or to let the big banks charge more. ca’s president of Michigan banking, which lost $8.8 billion for the quar- “We’re not going to do any mar- said some of the decline stems from ter that ended June 30 and has keting until we know how it plays a decision not to match competi- seen its share price fall by nearly out,” he said. tors’ prices for CDs. “Michigan is a two-thirds from its 12-month high Matt Davis, senior vice president very rate-sensitive environment, of $15.31 — needs to make its con- of consumer banking for Chase’s and some of our competition has sumer deposits profitable, even at Southeast Michigan region, credit- been more aggressive,” he said. the cost of losing market share. ed his bank’s branch presence for The bank closed 17 branches in The issue of market share in in- the market share gain. the state in the last year and plans dividual regions is almost irrele- He said as other banks have to close two more by year’s end. As vant for the nation’s largest bank, closed branches or been shut down of June 30, it had 221 branches, he said. It and other large banks by regulators, having a visible down from 258 two years ago. “are flush with liquidity. With brand has helped attract business. As for the fee, Cockrell said: “We loan demand down, they don’t “We added two branches this have a responsibility to our share- need deposits like they used to.” year in East Lansing and one on TAKE YOUR EVENT TO A holders. Because of some of the re- Michael Tierney, Michigan mar- the Eastern Michigan University cam- cent changes in the economics of ket president for Troy-based pus,” he said. “We’re focused on Championship debit cards, we had to modify our Flagstar Bank, which recently maintaining our growth.” policies. ... We couldn’t afford to launched a marketing campaign, Another factor is that troubled keep offering free transactions.” said the bank will not mention area banks have needed to shrink He said Bank of America Bank of America by name in any their asset bases to improve a key Level bankers are encouraging cus- advertising, but said: “We expect metric eyed by regulators, the Tier tomers who are unhappy with the consumers to switch to Flagstar as 1 ratio, which compares assets to fee to either use paper checks or to they become less satisfied with liquidity. As they have called in Meeting & Event Spaces at Olympia Entertainment Venues take advantage of the bank’s many their current bank.” loans and cut customers loose, Call For Details 313-471-3333 ATM machines to avoid the fees. He said Flagstar, which has Chase, which had no liquidity is- Special.Events@Olympia Entertainment.com The announcement drew loud more than $13 billion in assets, sues, has picked some of them up. protests from customers, and soon does not plan to charge debit fees. Tom Henderson: (313) 446-0337, after the bank’s website went down. Huntington Bank, Comerica, PNC [email protected] Twitter: Bank of America officials said its and Chase also said they will not @tomhenderson2 DBpageAD.qxp 9/26/2011 2:03 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 10, 2011 GM changes to CB Richard Ellis to lease, manage RenCen

BY DANIEL DUGGAN place Houston-based Hines Interests interior structure making the mas- environmentally friendly,” he said. Richard Ellis office. CRAIN’S DETROIT BUSINESS LP at the end of 2011, taking over sive complex easier to navigate. Shannahan also pointed to the Latessa worked for Newport the leasing and management of the Hines is proud of its work on the complex’s current 93 percent occu- Beach, Calif.-based Koll Co. when it After using the same real estate 5.5 million-square-foot complex building, said C. Kevin Shanna- pancy, bolstered by deals such as managed the Renaissance Center company since it purchased the that includes six office towers and han, Hines CEO for the Midwest the downtown relocation of Blue before GM’s acquisition. When Renaissance Center in 1996, Gener- a hotel. region. Cross Blue Shield of Michigan, expan- GM bought the complex in 1996, al Motors Co. has changed up its It was the Hines group that assist- “We have enjoyed being good sion of Urban Science and retention Hines became manager of the real estate team for the iconic De- ed GM in purchasing the buildings stewards of the RenCen and work- of Deloitte LLP. building and hired Latessa. He troit office complex. and then led the $500 million rede- ing hand in hand with GM to mod- It’s an assignment on familiar then worked as the director of leas- The Southfield office of Los An- velopment, creating a winter gar- ernize their tenancy and make territory for John Latessa, manag- ing for the building until 2000. geles-based CB Richard Ellis will re- den that faces the river as well as an their real estate more workable and ing director of the Southfield CB “I considered it good fortune to be at the Renaissance Center and to be involved with it when GM first redeveloped it,” he said. “You don’t really get a crack at things like this more than once in life, so I’m thrilled to be involved with it again.” Latessa, however, won’t have a hands-on role with the complex, rather the property managers and brokers in the office will oversee operations. General Motors has been consid- ering Hines and other firms for al- most a year, though many expect- ed Hines to remain. Claudia Killeen, a GM employee who is manager of the Renaissance Center, said the move is about finding ways to be more efficient. “We are extremely proud of the transformation that our global cor- porate headquarters has under- gone since GM acquired the prop- erty,” she said in an email. “However, GM continues to re- evaluate all parts of our business as we look for more effective and efficient ways to conduct our glob- al operations.” It’s hard to ignore the results from Hines, especially recently, said Sam Munaco, president of Southfield-based Advocate Commer- cial Advisors of Michigan. “I was surprised GM made this change, in light of Hines’ past per- formance and ability to keep these We Know Complex Litigation companies in the Renaissance Center,” he said. CB Richard Ellis brokers will now spend a lot of time acquaint- ing themselves with the tenants in Big problems the building and getting them com- fortable with a new management are often synonymous team, Munaco said. However, he said, there is very little to do on the leasing side as with big litigation there aren’t many significant leas- es coming due until 2014 and the Class actions, drug and medical device cases, and building is largely occupied. multidistrict litigation involve unique challenges for courts “This is a very big deal for CB Richard Ellis,” Munaco said. and lawyers. Our experienced attorneys and professionals Latessa said it’s also a good are regularly appointed as lead counsel in such cases. chance to be part of Detroit’s re- We represent businesses, individuals, and government vival. entities in courts throughout the country. “This is an opportunity for us to be a more active participant in the emergence of the central business If you are facing the prospect of complex litigation, district and downtown,” he said. we can help you decide what to do next. “It’s something that’s going to be exciting for our professionals and our clients.” Call attorneys Jason Thompson or Daniel Duggan: (313) 446-0414, Lance Young for a free case evaluation. [email protected]. Twitter: @d_duggan

BANKRUPTCIES The following business filed for Chap- >^^ d/KE^ͻ &>^ K>>d/s d/KE^ͻ Dh>d//^dZ/d >/d/'d/KE ΈD>Ή ͻ D^^ dKZd^ͻ KE^hDZ >/D^ ter 7 protection in U.S. Bankruptcy Court in Detroit Sept. 30-Oct. 6. Chap- ter 7 involves total liquidation. www.sommerspc.com | 248-415-2234 | 1-888-884-3878 | 2000 Town Center, Suite 900, Southfield, MI 48075 Waypoint Telecommunications LLC, 24275 Northwestern Highway, Suite ADVERTISING MATERIAL 100, Southfield, voluntary Chapter 7. Assets: none; liabilities: $379,897. — Michelle Muñoz DBpageAD.qxp 4/20/2011 4:11 PM Page 1 20111010-NEWS--0008-NAT-CCI-CD_-- 10/7/2011 6:00 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS October 10, 2011 OPINION Don’t forget to bless Ilitch and Ford, too less you, boys. In 1984, sportscaster Al Ackerman of WDIV-Chan- B nel 4 coined that phrase to cheer on the Tigers to the World Series. It stuck. Google shows more than 11,000 refer- ences on a simple search. A new phrase or cheer is bound to carry the 2011 Tigers through their own championship odyssey. Meanwhile, Detroit is basking in the success of both the Tigers and the Detroit Lions, who were going into tonight’s game against the Chicago Bears with a 4-0 record. So maybe “bless you, boys” applies to our teams’ octoge- narian owners — the Tigers’ Mike Ilitch and the Lions’ William Clay Ford Sr. (See story, Page 40.) This year, their investments in their teams have been a blessing for fans — and for Detroit. Crain’s adds more state biz news Michigan’s history and geography have produced distinct regional economies and cultures. Southeast Michigan is a global automotive center; West Michigan has built its economy in part on making office furni- LETTERS ture and pharmaceuticals. Metro Detroit’s workforce is more heavily unionized and tilts Democratic; the Grand Rapids area tilts Republican. But regional rivalries seem to be waning — at least among Elderly need housing choices business and civic leaders. A Sept. 30 “east meets west” event convened by the Grand Editor: ing home for extended periods be- The article that ran on crainsde- Crain’s Detroit Business cause they were unaware or un- Rapids and Detroit chambers of commerce produced a surpris- welcomes letters to the editor. troit.com Sept. 19 on a study con- able to access HCBS. ing result: Grand Rapids business leaders volunteered to help All letters will be considered for ducted by the Health Care Associa- Finally, the HCAM study con- publication, provided they are raise money for Detroit to submit an Olympic bid to reduce the tion of Michigan highlights how cludes we need to build more signed and do not defame objection that hosting a summer Olympics in 2020 would cost Medicaid could save millions of nursing homes to respond to a individuals or organizations. too much. (Could it be that Grand Rapids leaders have more dollars if elderly and disabled Letters may be edited for length shortage of family caregivers. confidence in Detroit than some Detroit leaders do?) adults were allowed access to and clarity. While this is a concern, there is a home or community-based care be- growing continuum of options to Write: Editor, Crain’s Detroit With business groups working more closely on joint advo- fore being forced to seek care in a help, including technological so- Business, 1155 Gratiot Ave., cacy efforts — such as building the New International Trade nursing home. lutions, assisted living, adult fos- Detroit, MI 48207-2997. Crossing and Gov. Snyder’s Pure Connect initiative to encour- This has been a mantra for ter care, and “Greenhouses,” E-mail: [email protected] age more business-to-business purchasing among companies home and community-based ser- which deliver care in a more based in the state — we think it’s time for Crain’s to offer read- vices (HCBS) and aging and dis- homelike setting. ability advocates for decades. The port an individual in the commu- Michigan needs a two-pronged ers more ways to keep up with business news from around the study looked at 35,378 Medicaid re- nity is about $64 a day versus $172 approach to Medicaid savings: pre- state. cipients residing in Michigan a day for a nursing home. venting individuals from entering So in this issue, we begin a weekly roundup of significant nursing homes. Nearly 6,000 were While the study highlights the nursing homes unless needed, in- business news from around the state. (See Page 2.) This com- transitioned from the nursing benefits of HCBS, it erroneously cluding eliminating the MI Choice plements our free weekly e-newsletter, Crain’s Michigan Busi- home back to the community last states that programs like MFP are wait list, and a strong MFP pro- year, with approximately 10 per- not needed. The HCAM study also gram that helps long-term nursing ness, and our monthly Crain’s Michigan Business print sec- cent going home with help from mixes individuals returning home home residents return to commu- tion, which starts on Page 11. Medicaid HCBS programs like between those in a nursing home nity living whenever possible. In a globally competitive economy, Michigan’s future de- Money Follows the Person (MFP) for planned “short-term rehabili- Tina Abbate Marzolf mands that we be neighbors, not rivals. administered by Area Agencies on tation services” and those targeted CEO, Area Agency on Aging Aging. The Medicaid cost to sup- for MFP who have lived in a nurs- Southfield KEITH CRAIN: I wish someone would use common sense Every four years about this for a Saturday to make across the country. The the presidential candidates from buffs and pundits to cover on what time, states all over the country it easier for everyone to need for getting to each their party. really went on during a campaign. jockey for the ability to hold a participate? state personally is long It is an old and very obsolete Let’s change the process on pri- presidential primary election be- During the last presi- gone. With mass media process and certainly not very de- maries to allow us all to partici- fore any other state. dential primary cycle, and a dozen debates on mocratic. We could get the whole pate at the same time. It’s time to have a national pri- Michigan got into trou- radio and television, thing done on a Saturday in the The system as it stands today mary so no one can claim bragging ble for moving its pri- voters have lots of op- middle of February. doesn’t do Michigan any favors. rights and all states participate on mary ahead of some oth- portunities to check out Remember, most of these pri- And I am sure that there are plenty a level playing field. er states. That dustup the potential nominees maries only commit a delegate to of other states that feel disenfran- We have national general elec- threatened Michigan’s and decide whom they vote for a particular candidate on chised as well. tions on the same day, so what is ability to seat delegates want as their candidate. the party’s first ballot at the nation- There should be a single day for so important in having 20 pri- at a national political Maybe there are too al convention. After that it’s any- all primary elections for candi- maries that simply confuse and convention. The whole many state party bosses one’s guess as to what will happen. dates of a given party. It makes corrupt the process? issue was ridiculous and should who want their 15 minutes of fame The days of the smoke-filled sense; the political parties should And while we’re at it, why don’t never have happened. and don’t want to pass up the op- rooms may be over, but there’s do whatever it takes to make it we schedule the national primary Let all the candidates campaign portunity to share the stage with still plenty of intrigue for political happen. 20111010-NEWS--0009-NAT-CCI-CD_-- 10/7/2011 10:00 AM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Tax credits can help revive communities

What if Michigan had a program munity collect more taxes. An base. That makes the choice be- trial district. By making it tax-free that locked in the property tax empty building or lot will surely tween maintaining a vacant facility to move new property into Michi- base for local governments — and decline in value, lowering the tax- or bringing in new business with gan, the city “locked in” its cur- then turned it into an economic de- es that can be collected on the new jobs a no-brainer. rent property tax base from Key velopment tool? property. In addition, abandoned A perfect example is in the re- Plastics — which would have dis- It does. They’re called local buildings and vacant lots have a cent decision by the city of Howell appeared if the company had de- property tax credits. negative effect on surrounding to grant a property tax break to cided to consolidate operations The debate about Michigan’s tax properties. Renovating property Key Plastics, a Michigan-based outside of Michigan. incentives has focused on those as- and bringing in new jobs means supplier of plastic automotive For many governments, granti- sociated with the former Michigan more direct tax dollars and has a components. ng these credits means that in both Business Tax — notably the positive impact on adjacent areas. Early this year, Key Plastics was the short and the long term, their MEGA jobs credits. But there are a F. Thomas Lewand Kelly Burnell In essence, communities consid- faced with consolidating opera- treasurer will collect more tax rev- large number of other programs izing an existing building (or ering these credits are buying an in- tions to cut costs. The city under- enue. That may be counterintu- still in place to help reuse obsolete building in an existing business surance policy; they give up some stood that by offering these incen- itive, but it’s a deal worth taking — or contaminated property in com- district) is a better bet. possible additional tax dollars (that tives, it ensured that the factory for both sides. munities by creating a credit This not only “locks in” the could easily fail to materialize with- stayed on the tax rolls — and F. Thomas Lewand and Kelly against real and personal property property base the community is al- out the credit) in exchange for lock- would continue to pay water bills Burnell are members at Bodman taxes. ready taxing, it can help the com- ing in their current property tax and maintain jobs in a key indus- PLC in Detroit. These credits, often known best by their number or acronym (OPRA, CRA, IFT, 328), work as in- surance policies for local commu- nities by “locking in” the current property tax base while prevent- ing blight. How? First, the property tax credits apply only to improvements made “Turns out we’d been under-forecasting.” to a property or to new personal property purchased, not to the to- tal value of all property. This People who know Manufacturing, know BDO. means that any property being taxed before the credit will be taxed after the credit at the same rate as any other property not sub- ject to a tax credit. It also helps convince a business owner weigh- ing new construction that revital-

TALK ON THE WEB From www.crainsdetroit.com

Reader responses to stories and blogs that appeared on Crain’s Web site. Comments may be edited for length and clarity.

Re: Mullin to return $200K severance Why should a severance pay- ment be made to an at-will employee of a governmental entity? Bloomfielder

Is there any question about the leadership of Wayne County? That’s the place to work; stay for a few months and walk away with a year’s severance. Richard Cooper

A public relations debacle, a bad day for Wayne County politicians and hopefully the end of this sor- did affair. Just do a great job as air- port administrator, Ms. Mullin. Timothy Dinan

I would like to vote out of office the idiot who would sign such a contract. Turkia Mullin is not the one to be vilified. Robert Slattery The Manufacturing Practice at BDO. Re: New security at Metro airport One of the United States’ largest industries is supported by BDO’s largest This invasion of our personal industry group. The Manufacturing & Distribution practice combines accounting, rights is completely out of control. … tax, and business advisory with industry prowess. Whether you’re looking to leverage I just want more balance in our se- international operations, grow through acquisition, or optimize inventory management curity procedures. Walt systems, BDO stands ready with proactive information and guidance wherever in the world you do business. Re: Joe Muer’s Accountants and Consultants Had dinner during first week of www.bdo.com/manufacturing business and it would be fair to say things need to settle down before a © 2011 BDO USA, LLP. All rights reserved. true experience worthy of compli- ment or critique can be offered. Timetocomment DBpageAD.qxp 10/3/2011 2:23 PM Page 1

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October 10, 2011 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Health care talk should be lively Employers are huge consumers of health care services. General Motors Planting seeds Co. spent something like $1.3 billion on health care in 2010. Yet many employers — large and small — don’t always manage health care as they would any other vendor: demanding the best product at the lowest cost. And even though the tab for health care is big, many CEOs to spread revival delegate decisions to benefits THE SUMMIT managers without Ⅲ What: really Crain’s understanding To feed downtown boom, Grand Rapids plans market Health Care what’s driving their Leadership underlying health BY MATTHEW GRYCZAN trict since Van Andel Arena was Summit care costs. CRAIN ’S MICHIGAN BUSINESS built 15 years ago and what Ⅲ When: may take place if the farmers That may be mid peeling paint and graf- 7:30 a.m.- changing. market is built. The 12,000-seat 2 p.m. fiti-splashed walls, six ne- multipurpose arena — ranked Employers around Thursday, A glected buildings at the by Billboard magazine in Au- Michigan are Oct. 20 northwest corner of Ionia and gust as the highest-grossing forming groups to Ⅲ Where: Logan streets seem an unlike- midsize arena in North Ameri- use their MotorCity ly location for the next big ca for the past half year — is Casino-Hotel purchasing clout to thing to hit downtown Grand buy health care credited for infusing life into Ⅲ Cost: $99 Rapids. vacant buildings south of Ful- for individual services at lower Framed by nearby vacant prices with more ton Street — so much so that tickets structures and a lot overgrown value. One is in the area is now called the are- Ⅲ Details: For with weeds, the 3.5-arce parcel Battle Creek. na district. agenda and shows a glimmer of how life in Another, the While the urban market car- registration that section of the city teemed Michigan ries a price tag less than half information, decades ago with the furniture visit Purchasers Health that of the arena and pales in a trade and food distribution. crainsdetroit. Alliance, has comparison of enclosed square com/events employer members Many people think that lost footage, it lies at the epicenter in the Ann Arbor- connection with food will be of an eclectic mix of activity Jackson area. the key to igniting redevelop- within a half-mile radius. ment through construction of Oddly, the Detroit area has no large Throw a stone southeast a $30 million urban market- employer purchasing group. But some from the property and hit the Southeast Michigan companies, place — a public-private pro- Century Building, which may be including major tier-one auto ject that will celebrate all going through an $18 million suppliers, are starting to talk about things food-related. renovation next year to create forming such an organization. Demolition of a collection of retail and commercial space ramshackle buildings on the At the same time, employers also and 87 apartments. Continue property may start as early as are wrestling with a big decision: Do east a block to view a project November, with a targeted they keep or drop the health care proposed by the Inner City Chris- plans they currently offer employees? startup date of spring 2013 for tian Federation to turn vacant the approximately 130,000- The new federal health care reform land into townhouses, apart- square-foot market. act sets Jan. 1, 2014, as the ments and retail space that No one seems to take or give deadline for that decision. If the U.S. would represent an invest- credit for coming up with the Supreme Court upholds the law’s key ment of up to $17 million. idea. For years it has been dis- provision — requiring all Americans to Stroll northeast three blocks carry health insurance — Michigan cussed that the city ought to to survey properties for an up employers that now offer health care have a downtown market like to $18 million condo project coverage will have a big decision to Detroit’s renowned Eastern proposed by the Dwelling Place Market make. , said Jay Fowler, execu- MATTHEW GRYCZAN/CRAIN’S MICHIGAN BUSINESS that would update a venerable tive director of the Grand Both topics — employer-led Jay Fowler, executive director of the Grand Rapids Downtown apartment building and fill Rapids Downtown Development purchasing coalitions and how to Development Authority, sees a green future for decaying parts of the what appears to be a missing Authority. city center as plans shape up for an urban farm market. make that big decision by 2014 — tooth among buildings along a are the focus of the 2011 Crain’s The two markets will be main thoroughfare. Health Care Summit on Oct. 20 at the quite different. The ur- structures, as Eastern Market farmers market where you set To the west of the market MotorCity Casino-Hotel in downtown ban market in Grand has done. up card tables in a parking soon may be a new Amtrak pas- Detroit. (The agenda and registration Rapids will be only Plans call for an outside sea- lot,” Fowler said. “We think of senger station and spur line details can be found at one-twelfth the acreage sonal space for 45 vendors, in- this as an economic develop- for the Pere Marquette route, crainsdetroit.com/events.) of Eastern Market. And side space for 22 vendors, a ment tool that will spur devel- which provides daily train ser- the project’s parcel will commercial kitchen for culi- opment, create several hun- Two speakers from southeast vice between Grand Rapids Wisconsin will describe the be scraped clean to nary entrepreneurs and chil- dred jobs and have an and Chicago. Plans call for the successful employer-led purchasing make way for new dren’s kitchens with equip- incubator function that will al- station to be integrated with group in that state. The Business construction, ment that adjusts to the height low people to start new busi- the central station of The Rapid, Health Care Group is a self-funded rather than ren- of the kid — all topped by nesses.” the mass transit authority that collection of 1,000 employers whose ovate some lighted greenhouses that will The project’s backers draw provides fixed-route bus ser- mission is to “change the way health tell motorists driving along comparisons between the ex- vice to metro Grand Rapids. care is used, managed and the busy U.S. 131 freeway that plosive growth of businesses “Of anyplace downtown, this is the place for food. on the southern side of Grand See Mary Kramer, Page 12 “This is more than just a Rapids’ central business dis- See Farm market, Page 13 20111010-NEWS--0012-NAT-CCI-CD_-- 10/7/2011 10:52 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 10, 2011 CRAIN’S MICHIGAN BUSINESS Mary Kramer: Health care talk should be lively ■ From Page 11 delivered.” The issues related to health care Employer coalitions aren’t just vary by the size of companies, pushing for cheaper costs. They their industries, whether they are are pushing to reward perfor- multistate and/or global and mance rather than simply pay doc- whether they have collective bar- tors and hospitals gaining agreements. for procedures. But the average When employ- per-employee cost ers get together for health care is and push for When employers probably about change, big things $10,000 per work- can happen. In get together and er. 2005, the Detroit 3 In 2014, employ- The Seidman College of Business Part-Time automakers, the push for change, ers that drop their or Full-Time Integrated M.B.A. Programs UAW union, Blue coverage and send Cross Blue Shield big things can their employees and Health Alliance to a new state-cre- Plan started push- happen. ated health insur- ing doctors to ance exchange to adopt e-prescribing to cut down on buy coverage will pay penalties of medical errors. $2,000 per worker. If an employer Today, largely because Henry thinks only of the dollars, the Ford Health System led the way, choice may be obvious: Drop the Michigan ranks No. 2 in the na- coverage. tion for e-prescribing. Physicians But many employers will con- use laptop computers or wireless sider the impact of such radical ac- devices to send prescriptions di- tion on their employees’ morale Whether you have recently graduated from college or are seeking new professional opportunities, rectly to pharmacists, cutting and the company’s reputation as adding a Grand Valley State University M.B.A. degree to your resume makes you a better-prepared down chances for errors and re- an “employer of choice.” ducing the chances that patients I suspect the roundtable discus- and more desirable job candidate. Apply now to set yourself apart from the competition. will suffer from drug interactions sions at our summit will be lively Call (616) 331-7400 or visit gvsu.edu/grad/mba to learn more. because the medications are all as employers and health care in- part of an electronic medical dustry folks try to figure out how record. this will all play out in Michigan.

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“What I learned from the DeVos program is how to take real life problems and find good solutions that meet the business objectives and our customers’ needs. Because of my DeVos experience I am able to contribute a lot more than just the legal perspective.” Lynn Krauss, Associate General Counsel, Dow Corning Corporation 20111010-NEWS--0013,0014,0015-NAT-CCI-CD_-- 10/7/2011 11:20 AM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS Farm market: Project seen as seed for downtown Grand Rapids ■ From Page 11 this is the spot to make changes at,” Patience and due diligence also As part of the vetting, the con- Suzanne Schulz, planning director seem to be hallmarks of the urban sultants conducted more than 300 for the city of Grand Rapids, said of The scale of the wealth in market. private interviews and focus the urban market site. “You know “ Noted food court architect Hugh groups that totaled an additional it will have a catalytic effect — it relation to size of the A. Boyd in Montclair, N.J., was re- 100 individuals, Nunn said. will transform the entire area.” tained to do design work with local Frey added, “We now know more metropolitan area is very collaborators Design + and Fish- about urban markets than any city beck, Thompson, Carr & Huber Inc. in America that doesn’t have one.” Playing well together substantial. Grand Action also retained as a Enthusiasm is building not only ” consultant Theodore Spitzer, pres- because it would be the next accou- David Frey, Frey Foundation ident of Market Ventures Inc. in A many-layered cake trement for the city’s growing list tion projects. The initial donor is- ty Foundation, Steelcase Foundation Portland, Maine. Spitzer has done “This is going to be a complex fi- of amenities but also because of n’t a wealthy patron, as it has been and DeVos Foundation. With Grand work for food markets in New nancing package,” Fowler conced- the group behind the project: Grand in the past, but, rather, the Frey Action, they raised about $750,000 York City, Salt Lake City, Pitts- Action. The not-for-profit organiza- Foundation, Grand Rapids Communi- to conduct preliminary studies. burgh and other cities. See Next Page tion — co-chaired by Dick DeVos, David Frey and John Canepa — has played a lead or supporting role in major projects that have transformed downtown Grand Rapids during the past decade. They include Van Andel Arena, DeVos Place, the Michigan State Uni- Business & Warner versity College of Human Medicine and the Grand Rapids Civic Theatre. Jon Nunn, executive director of Grand Action, said those projects represent a total investment of $338 million, of which $109 mil- lion was raised privately. Canepa and Frey said they think the spirit of philanthropy in the metropol- itan area hasn’t flagged yet, and Nunn they will find backers for the urban market. “The scale of the wealth in rela- tion to size of the metropolitan area is very substantial,” said Frey, who also is chairman of the Frey Founda- tion in Grand Rapids, a nonprofit established by his parents, Edward and Frances. That wealth arose from the success of several locally established public and private cor- porations, such as Amway Corp., Mei- jer Inc. and Steelcase Inc. Canepa said founders of those companies instilled the culture of philanthropy in their children, many of whom still live in the area and want to play an integral part in the growth of the city. “Plan colle- gially” is part of Grand Action’s slogan, and “col- laboration” comes up often in conversation Canepa with Frey, Canepa, Fowler, Schulz and oth- ® ers. All say the willingness of pri- A Better Partnership vate sector executives and public officials to listen, compromise and unite is the main reason that the market will become reality. “Not that everyone agrees with everything — you have to negoti- ate a lot of stuff — but our interests are aligned,” Frey said. “It’s all about the future of this city.” Fowler added: “Sometimes the DDA or the city takes the initiative and private folks come along. Of- SOUTHFIELD | STERLING HEIGHTS | GRAND RAPIDS | MUSKEGON | LANSING | HOLLAND ten it is the private sector that takes the initiative, and we are in a great position of being able to re- spond and support.” wnj.com The urban market already has taken on a character of its own when compared to other Grand Ac- 20111010-NEWS--0013,0014,0015-NAT-CCI-CD_-- 10/7/2011 11:21 AM Page 2

Page 14 CRAIN’S DETROIT BUSINESS October 10, 2011 CRAIN’S MICHIGAN BUSINESS

From Page 13 way this is viewed as a threat or ed, “a layered cake of financing competition.” where a number of different com- The Fulton Street market al- ponents come into play.” ready has 60-80 vendors whom it The DDA will continue to own can’t accommodate because of the the property but lease it for $1 for huge demand for space now, he 99 years to Urban Market Holdings. said. The for-profit subsidiary will de- The urban market also will velop and operate the site for Grand serve its adjacent neighborhoods, Rapids Urban Market, a nonprofit which Nunn likened to a “food created by Grand desert” for fresh Action. and assorted food- While the parcel stuffs. has a fair market We know that Plans for the ur- value of more than “ ban market call $2 million, the people come from for a basement leasing arrange- Holland and and three floors. ment allows Besides the first Grand Action to Muskegon. ... This floor with indoor skip land acquisi- and outdoor ven- tion costs. The will expand the dor stalls, the up- DDA also has per level will have agreed to pay $4.7 opportunities a meeting room million for off-site and reception improvements further. space that can seat such as roadways, ” 200, with a profes- water, sewerage Jay Fowler, Grand Rapids sional demonstra- and streetlights. Downtown Development Authority tion kitchen. Or- Part of those im- ganizers think the provements will be to extend the market will be one of the first in red-bricked portion of Ionia Av- the country to feature children’s enue, creating a graphic element kitchens, with equipment that can that shows the market is intimate- be raised and lowered depending ly tied to the arena area. on a person’s height. Fowler said it appears that a The market also will feature a substantial portion of the project commercially certified kitchen. will be taxable property “because The nearest one to Grand Rapids the main enterprise here is com- currently is more than 75 miles mercial development, with people away in Hart, Nunn said. selling items.” Municipal farmers Fowler said: “It will be the kind markets in other cities sometimes of place where, if you have compa- are tax-exempt. ny for the weekend, you may take Nunn said Grand Action hopes them there for something to do on to raise $12 million in private do- a Saturday. We know that people nations from foundations, individ- come from Holland and Muskegon uals and corporations, money that for trips to the opera or a night on will be leveraged to raise about the town in Grand Rapids. This $15 million in public funding. The will expand the opportunities fur- project was awarded $5.4 million ther.” in state brownfield tax credits that would be sold on the secondary Recipe for redevelopment market to investors for about 80 cents on the dollar and used to The urban market’s promise to decrease state tax liabilities. The spark redevelopment on the south- organization looks to obtain feder- ern border of downtown Grand al New Markets Tax Credits that Rapids is what makes the project would be used in a similar fashion particularly compelling to execu- to pay for the project. tives and city officials alike. Grand Action is looking for a Bob Jacobson and his father, lead donation of perhaps $5 mil- Michael, owners of Leelanau Wine lion to $7 million. Cellars in the northern Michigan town of Omena, have plans on the drawing board for an $18 million Another market? renovation of a 125,000-square-foot When the urban market was vacant building, known as the proposed, observers asked what its Century Building, diagonally effect would be on Fulton Street across from the urban market. The Farmers Market, which has been op- project would create 87 apart- erating on the east side of Grand ments and up to 15,000 square feet Rapids since 1922. The last of the of commercial space on the ground four outdoor food markets that floor, depending on how much of once served the city, Fulton Street the space can be used, Bob Jacob- has embarked on a $2.6 million son said. fundraising campaign to build a If his project can obtain a his- roof over its more than 120 market toric-building designation at the stalls, improve traffic flow and ex- local and federal levels to qualify pand the permanent building on for historic tax credits and re- site to house year-round vending. ceives backing from the Michigan Work has begun, with the project State Housing Development Authority, to be concluded next spring. it’s possible that construction will Frey said Grand Action sees the commence in May, Jacobson said. two markets as complementing He said he has been working on each other. Fulton Street will con- the project for several years, be- tinue as a largely neighborhood fore Grand Action announced the market for the Midtown district of location of the urban market. Grand Rapids, and the urban mar- Plans call for renovation of the ket will act as a regional draw for building into one-, two- and three- residents and visitors to West bedroom apartments renting for Michigan. $450 to $925 a month, prices that “Before we started this, we had a fall in line with at-market as well discussion with the Fulton Street as affordable-housing rates. farmers market,” Nunn said. “We Schulz, Grand Rapids’ planning have participated in their capital director, said her department is campaign to make sure that in no See Page 15 20111010-NEWS--0013,0014,0015-NAT-CCI-CD_-- 10/7/2011 11:21 AM Page 3

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS

From Page 14 ments and 24 two-story owner-oc- Michigan Department of Transporta- than anything else,” she said. dents for janitorial services and “very bullish” about apartments at cupied townhouses. Phases two tion to determine whether 5-foot- The character of the neighbor- other positions, allowing them to those rates and in the urban mar- and three may cost up to $7 mil- wide sidewalks on both sides of hood will continue to change as get back on their feet. ket’s neighborhood. She said an lion. Wealthy Street as its crosses over projects like the urban market get When asked what the chances updated study by Zimmerman/Volk City planner Schulz said she is U.S. 131 can be widened to 12 feet to completed. “You see people of all are that the urban market will be Associates Inc. of Clinton, N.J., in- excited about the possibilities of improve foot travel. walks of life in the area already — built, no one offered odds, but sev- dicated that there is an approxi- moving the Amtrak station as ear- middle- and higher-income people eral offered knowing glances. mately 300-unit demand for apart- ly as next June to create a multi- The soft benefits are now entering the neighbor- Canepa said much work needs to ments annually in that price modal transportation hub that hood — and that is a good thing for be done. But the Facebook page range. connects passenger trains with The corridor of South Division the entire neighborhood,” Schulz dedicated to the project already Much of that The Rapid central bus station, near the urban market probably said. has 8,000 postings, many asking demand can be which serves the city, and the Indi- has the highest concentration of Those with adequate income de- when groundbreaking will start. traced to the in- an Trails terminal, which operates missions, food pantries and shel- mand products and services that It’s clear that the interests of many flux of students bus routes to other Michigan ters in the city. Schulz said she previously weren’t available — are, indeed, aligned. to downtown cities. doesn’t see indications that the which, along with projects like the “Sometimes,” Fowler said, “peo- Grand Rapids. One of the kinks that has to be charitable organizations will urban market, will in turn spur ple work in mysterious ways in Schulz pointed ironed out is how pedestrians can move as redevelopment happens. growth of entry-level jobs for resi- this town.” out that a num- reach The Rapid Central Station “It is much more an issue of regu- dents of the neighborhood. Schulz Matthew Gryczan: (616) 916.8158, ber of colleges from the urban market. Schulz lating behavior — such as panhan- said Van Andel Arena makes an ef- [email protected]. Twitter: and universities said the city is working with the dling or alcohol or drug addiction — fort to hire neighborhood resi- @mattgryczan now have a sig- Schulz nificant pres- ence downtown: Grand Valley State University, Western Michigan Univer- sity, Cooley Law School, Grand Rapids Community College, the MSU med- ical school, Ferris State University and its Kendall College of Art and De- sign. Grand Rapids, Schulz said, now has a population of more than 40,000 pursuing college studies. While plans to renovate the Cen- tury Building are well under way, the fate of a 127,000-square-foot warehouse formerly used by Kling- man Furniture Co. is uncertain. The former owner, Jonathan Victor, donated the building and 1.2-acre site to Dwelling Place, a nonprofit community develop- ment corporation that owns and manages more than 1,000 apart- ments and homes in 21 housing communities throughout West Michigan. Dwelling Place CEO Dennis Sturtevant said development plans for the Klingman property have been mothballed until his organi- Smart entrepreneurs are zation finishes an ambitious pro- ject on properties north of the ur- ban market. risk-takers. Except when it Schulz said the Klingman has structural issues “that may be comes to health coverage. hard for a developer to get past. It may be a case where they would have to demolish all or part of the building to properly reuse it. There is a grade difference of per- haps two feet on the building. That doesn’t mean it’s impossible to save, but it is a barrier.” Sturtevant said his organization Get exceptional value with small business health coverage from the Blues has listed the property for sale at Choosing health coverage comes down to one thing: value. The perfect mix of $1.5 million and would entertain comprehensive coverage at an affordable price. With Blue Cross Blue Shield proposals from developers “that of Michigan, you get real value and the flexibility to choose exactly the right would really complement the ur- coverage for your business. ban market.” About one block east of the ur- Healthy Blue LivingSM from Blue Care Network ban market, the Inner City Christ- CELEBRATING ian Federation has started con- A revolutionary HMO product that, for five years, has been rewarding struction on phase one of what employees for adopting healthier lifestyles by working with their doctors to YEARS may become a five-phase project improve their health. Real rewards, like lower copays and lower deductibles. that would bring additional hous- ing and retail space to the vicinity SM Simply Blue from Blue Cross Blue Shield OVER — including a much-needed super- A PPO product, with over 120,000 members in just a year, that offers 120,000 market, said the organization’s employees a comprehensive health plan at a competitive price. It’s the President and CEO, Jonathan MEMBERS coverage you’ve always wanted, that’s now more affordable. Bradford. The federation, founded in 1974, is a nonprofit developer of affordable housing in Kent County Healthy employees are good for business and provides housing counseling And by offering first-rate coverage that you and your employees can afford, services for communities through- your business can thrive. out West Michigan. Phase one is an $8.5 million pro- Learn more today. Call toll-free, 1-877-547-BLUE (2583), ject that consists of two mixed-use, contact your Blues Agent for a quote or free brochure. three-story buildings that will Or visit us online at bcbsm.com/grow. have retail on the ground floor and

32 apartments above. Phases two SM and three may be launched in the Leading Michigan to a healthier future. same block as early as July next Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. year, with construction of a three- story building for up to 24 apart- 20111010-NEWS--0016-NAT-CCI-CD_-- 10/7/2011 10:20 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS October 10, 2011 CRAIN’S MICHIGAN BUSINESS Chamber forum: Support minorities, immigrants; fix roads

BY AMY LANE and immigrants and the need for Antonio Lück, portfolio manag- those holding graduate degrees in its transportation infrastructure. CAPITOL CORRESPONDENT engagement by business leaders. er at the Michigan Economic Develop- engineering, computer science Kotkin, author of The Next Hun- Ken Harris, president and CEO ment Corp., said business leaders and physics. dred Million: America in 2050, said LANSING — They were diverse of the newly formed Michigan Black need to engage people and high- He said Gov. Rick Snyder’s Michigan has a great advantage in in their message for Michigan’s fu- Chamber of Commerce, said the light Michigan’s attributes, in- Global Michigan initiative to en- its water resources, which will be ture: Appreciate the importance of state needs to help entrepreneurs cluding qualify of life and business courage immigrants with ad- a significant factor in economic minorities, immigrants and entre- connect and stitch together seg- opportunities, he said. vanced degrees to come to the state growth. He said “water and land preneurs — and attract and sup- ments of Michigan’s business fab- Hayg Oshagan, director of New to work and live is something equals food,” and agriculture will port them. ric. Michigan Media, a network of eth- “very much in the right direc- be a critical strategic industry. The business representatives on Harris said Michigan has more nic and minority media organiza- tion.” But federal regulations need But manufacturing’s resur- an entrepreneurial opportunity than 80,000 black-owned business- tions across Michigan, said that to be addressed, too, he said. gence also bodes well, he said. panel, part of the Michigan Chamber es, including more than 39,000 in the number of immigrant busi- Bookending the panel at the con- Kotkin cited the state’s “tremen- of Commerce Future Forum last Detroit. The chamber aims to give nesses in Michigan is going to con- ference were two sessions: A fore- dous skill base, all this embedded month in East Lansing, discussed the state’s black businesses a lead- tinue to rise and that immigrants cast by author and futurist Joel knowledge,” and said Michigan challenges and opportunities faced ership seat in political arenas and are “the kind of resource the state Kotkin and a discussion of the oft- needs to concentrate on its skilled by companies led by minorities the statewide economy. needs” — from migrant workers to cited need for Michigan to improve workers. However, he also said the state and national educational system is “too far oriented” toward four- year degrees and not focused enough on vocational, certificate and community college programs. Michigan’s near-term and long- term future also revolves around the need for good roads, bridges and public transportation. And while a panel of industry and leg- islative officials shared the priori- ty on improvement and the frus- tration over long-running state discussion and no fix, they di- verged on ultimate solutions. Asked what advice panelists would give Snyder for his upcom- ing legislative message, Peter Var- ga, CEO of The Rapid, the public bus system in the Grand Rapids area, said: “Solve the problem. No more punting the problem, no more one-time fixes.” Amy Lane: (517) 371-5355, [email protected]. Twitter: @alanecdb Liquor quicker: Seen that? Panel to speed approvals on 92% of clients say the CPAs and some permits

Advisors of Plante Moran understand The Michigan Liquor Control Com- mission is speeding up approvals their business and industry. Sharing for some liquor permits. Changes to the process affect fresh insights on those issues so several types of permits and in- clude no longer requiring an in- you don’t get burned is vestigation by the commission’s enforcement division or local law a higher return on experience. enforcement agency. The affected permits include re- quests for additional serving bars within an establishment, beer and wine samplings, adding living quarters to a licensed establish- ment, Sunday sales permits, cater- ing permits and permits that allow a licensee to remain open when it is not serving alcohol, for specific reasons or activities. All completed permit applica- tions will be placed on the next day’s docket for approval at the commission’s administrative meetings, held every weekday. “I have made it clear, as chair of this commission, that revamping Contact: Gordon Krater, firm managing partner [email protected] the liquor licensing process is a top priority,” LCC Chairman plantemoran.com Andy Deloney said in a news re- lease. — Amy Lane 20111010-NEWS--0017-NAT-CCI-CD_-- 10/6/2011 3:41 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 17 CRAIN’S MICHIGAN BUSINESS Summer successes don’t ease golf course owners’ worries

BY JASON DEEGAN provide specifics. in and make a profit for a while — SPECIAL TO CRAIN’S MICHIGAN BUSINESS The profitability of the automo- meaning the oversupply of courses tive industry, Bylen said, “trickles in Michigan remains a problem. The summer was kind to many down to us. The number of outings Two major Michigan resorts — golf course owners and operators we’ve had have been more than the Manistee National Golf & Resort in in Michigan. But they remain cau- last couple years. Not by a wide Manistee and the Otsego Club & Re- tious in pronouncing a brighter fu- margin, but some of them were peo- sort in Gaylord, along with the ture, knowing that some of the in- ple that had outings with us in the nearby Black Forest at Wilderness Treetops Resort dustry’s biggest problems still past and stopped in 2008 and 2009. Valley courses in Gaylord — were made the must sort themselves out. “Those outings, even if they are scheduled to be auctioned off by biggest Most golf leaders credit the re- just 30 or 50 or 80 people, they add Brighton-based Osprey Recreational turnaround, bounding automotive industry driven by a new up.” Properties this past Wednesday. management and great weather from June Bylen said a major concern in “Long term, something has to through August for any minor suc- team that the industry continues to be dis- give in order for it to be a healthy emphasized cesses this season. tressed properties that sell so industry going forward,” Bylen Internet sales Yet those lingering issues — a cheaply that new owners can come said. “It still can be.” COURTESY OF TREETOPS and marketing. glut of courses, an inability to at- tract new players and tighter prof- it margins because of sharply dis- counted greens fees — don’t appear to be going away. “Golf is still very much cut- throat. It is by no means on the mend,” said Chris Hale, vice presi- dent of sales and marketing at Shanty Creek Resorts in Bellaire in northern Michigan. “It is oversup- ply and under demand. “Some of the things we did this year, it was to secure whatever we can get. If it means other places have to survive on a lesser share or couldn’t measure up, so be it. It is dog-eat-dog and no-holds-barred on some levels.” Florida-based Golf Datatech, which tracks the industry, report- ed that compared with 2010, rounds in Michigan were up 3.4 percent in July and 4.5 percent in August — and up 5.8 percent in July and 1.2 percent in August at metro Detroit courses. Michigan was one of just seven states in July Healthy smiles are good for business. and 13 in August with improve- ments above 2 percent for those two months. But reported rounds were still down 7.5 percent for the state and 7.9 percent in metro Detroit over- all, a figure attributed to a wet, cold spring. At Shanty Creek, Hale said Total body health for your employees rounds on the resort’s four courses were up 5 percent to 6 percent, and Did you know that there’s a connection between a healthy mouth and a healthy body? There is. revenue rose 2 percent to 3 percent Dentists can identify signs of serious health conditions, like diabetes, during routine checkups. from a year ago. Nobody made a bigger turn- At Blue Cross Blue Shield of Michigan, we take that connection very seriously. Which is why we around than Treetops Resort in encourage you to complete your health plan with Blue Dental.SM Gaylord. A new management team emphasized Internet sales and Here’s why: marketing, which paid big divi- UÊÊ1˜“>ÌV i`Ê>VViÃÃÊ̜ʫ>À̈Vˆ«>̈˜}Ê`i˜ÌˆÃÌÃÊ̜ÊÃ>Ûiʜ˜ÊVœÃÌÃÊvœÀÊޜÕÊ>˜`ÊޜÕÀÊi“«œÞiià dends, said new General Manager Barry Owens. He said golf rounds UÊÊ Õi i˜Ì> œ˜˜iV̈œ˜]SM a free dental wellness program that includes online resources and targeted improved 60 percent and room member education for improved health nights 24 percent this summer compared with last. UÊÊA wide variety of traditional, PPO and voluntary plans to suit changing coverage needs Owens attributed the turn- Keep your employees healthy and smiling with Blue Dental.SM It’s good for business. around to “a whole combination of things. We did do some aggressive things with rates. There were ar- eas where rates went down and others where rates went up. We did a lot more social media and more electronic (marketing).” To celebrate the 25th anniversary of The Masterpiece, the first of the resort’s five courses to open, Tree- tops created tee times on the 25th of each month for $25 per player, a sig- nificant savings from the rack rate. Every date sold out by April. For more information, contact your Blues Mike Bylen, managing partner sales representative or contracted agent at Shepherd’s Hollow Golf Club in bcbsm.com/bluedental SM Clarkston and Pine Trace Golf Club or visit Leading Michigan to a healthier future. in Rochester Hills, said every facet of his operation — rounds, group outings, food and beverage and Blue Cross Blue Shield of Michigan is a nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association. range and merchandise sales — was up, although he declined to 20111010-NEWS--0018-NAT-CCI-CD_-- 10/6/2011 3:40 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS October 10, 2011 CRAIN’S MICHIGAN BUSINESS Infrastructure seen as road to state’s economic future

BY AMY LANE the conference with the Northern Rep. Rick Olson, R-Saline, out- initiative in Wayne County near fective way, the providers of jobs CAPITOL CORRESPONDENT Michigan Regional Chamber Alliance. lined those needs to conferees. Ol- Detroit Metropolitan Airport, a plan to are going to look for areas (where) Director Kirk Steudle of the son and Rep. Roy Schmidt, D-Grand form a Southeast Michigan global they can,” DeYoung said. TRAVERSE CITY — This month Michigan Department of Transporta- Rapids, led a House transportation freight gateway to and from the Other conference presentations Gov. Rick Snyder will present his tion said the state has great poten- funding work group that recently Midwest, an I-69 international cor- highlighted railroads, public-pri- plan for Michigan infrastructure, tial to be recognized as a trade and released a study that found that ridor and a new freight rail tunnel vate partnerships and ports. Ro- including transportation. logistics hub, strategically located Michigan needs nearly $1.4 billion between Detroit and Windsor. driguez said the West Michigan Pol- Forming a backdrop to Snyder’s to handle increases in trade and more annually for roads and Doug DeYoung, director of gov- icy Forum will share feedback from message were the obstacles and op- with highway, rail, marine and air bridges — roughly double its cur- ernment relations at the Traverse the session with legislative leaders portunities related to key elements infrastructure as the backbone. rent funding — if it is to keep the in- City Area Chamber of Commerce, said and the governor and will incorpo- of that infrastructure, discussed “One single mode can’t do this frastructure from getting worse connecting all transportation rate elements into the forum’s main last week at a conference. alone. All modes have to work to- and more expensive to fix. modes to move goods and services conference, scheduled for Sept. 13- “It’s about economic competi- gether,” Steudle said. Many Michigan infrastructure is important. And in northern 14, 2012, in Grand Rapids. tiveness for the state,” said Jared But challenges include finding pieces and investments are mov- Michigan, it’s a challenge, he said. Amy Lane: (517) 371-5355, Rodriguez, president of the West adequate and reliable funding, ing forward, including the aero- “If we can’t move goods and ser- [email protected]. Twitter: Michigan Policy Forum, which held both on the state and federal levels. tropolis economic development vices across our area in a cost-ef- @alanecdb

Gordon Food Service to build new HQ, hire 300 over five years

BY MATTHEW GRYCZAN CRAIN’S MICHIGAN BUSINESS

Gordon Food Service is con- structing a $56.5 million head- quarters in metro Grand Rapids that is positioning the food ser- vice company for future growth. Construction of the 384,000- square-foot building in Wyoming is expected to be completed in late summer next year, company spokeswoman Deb Abraham said. With the additional space, Gordon Food Service expects to hire about 300 employees in the next five years. It currently em- ploys about 1,800 full- and part- time workers in the Grand Rapids area and about 12,000 in North America. Integrated Architecture in Grand Rapids is the architect and Dan Vos Construction Co. in Ada the general contractor for the new headquarters. Last year, Gordon Food Ser- vice posted revenue of about $7.7 billion in sales and distribution of food and nonfood products that are used at restaurants, hospi- If you have an opportunity, we’re ready. We’re ready to help tals, hotels, schools, universities and nursing homes and through you achieve that next level of success, just like all the businesses direct sales of products at its 144 we’ve extended nearly 10 billion dollars to so far this year. And GFS Marketplace stores in Michi- gan, Illinois, Indiana, Ohio, Penn- we plan to lend another 28 billion dollars in the year to come. sylvania, Wisconsin, Tennessee, We also support local businesses with financial solutions and Kentucky and Florida. Gordon Food Service is the services that can improve productivity and, ultimately, help them fourth-largest U.S. broadline food achieve success. Find out how we can help you drive results at service distributor in that ap- proximately $200 billion-a-year 53.com/drivingresults or call 1-877-804-2091. industry, behind Sysco Corp., US Foods and Performance Food Group, according to the trade industry information source ID Access. Gordon Food Service, founded in 1897 by Dutch immigrants, is the largest family-owned and -op- erated broadline food service dis- tributor in North America, Abra- Loans subject to credit review and approval. Rates may vary based on credit qualifications. Fifth Third Bank, Member FDIC. Equal Housing Lender. ham said. Matthew Gryczan: (616) 916- 8158, [email protected]. Twit- ter: @mattgryczan 20111010-NEWS--0019-NAT-CCI-CD_-- 10/6/2011 3:39 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 19 CRAIN’S MICHIGAN BUSINESS Schechterize it Pie in the sky – or at least Ann Arbor Cherry Republic ‘ambassador’ touts products, vision

BY HOWARD LOVY ploys the equivalent of 80 full-time turing of cherry products. SPECIAL TO CRAIN’S MICHIGAN BUSINESS employees, growing to 230 during And, maybe most of all, Car- the holidays. ruthers objects to Sutherland’s One day recently, Bob Suther- Cherry Republic sends about coming into town and declaring land of Glen Arbor was walking 80,000 packages a year based on that he can put Traverse City on down a gravel road in the middle catalog orders from the 800,000 the map as the Cherry Capital. of nowhere on the Leelanau Penin- booklets that go out. Sutherland “That’s a bit ambitious of him to sula when Don Riegle drove by. itches to sell his products and vi- be saying,” Carruthers said. “He Riegle hit the brakes, backed up, sion for northern Michigan to a sells jams and T-shirts. So does The jumped out of his car and excitedly much larger crowd. Cherry Stop, so does American Spoon shook Sutherland’s hand, saying: And that’s where he is running Foods. They’re all basically the “Bob, I got your Orchard Report. I into some trouble. same type of store.” {before} {after} get it every week. You’re my con- Sutherland has ambitions to Traverse City, Carruthers said, nection to northern Michigan for move Cherry Republic’s headquar- needs to retain its small-town at- the nine or 10 months that I’m ters from Glen Arbor to Traverse mosphere. It’s why people come up away.” City. He also wants to build his here. Our experts are the difference. And so the former U.S. senator new digs in prime downtown Despite Carruthers’ objections, paid tribute to the man deter- Front Street real estate — a 40,000- city commissioners, by a 5-2 vote We have big thinkers that understand the complicated issues that mined to be “an ambassador for square-foot, four-story building— on Oct. 3, approved a development wealthy families and business owners face. Our team of CPAs, JDs, cherries” and northern Michigan. a skyscraper compared to the agreement for a four-story, mixed- MBAs, CLUs, design life insurance strategies that have been coined Every week, the 50-year-old small-town two-stories that fill the use complex. Grand Traverse “Schechterized” – a robust analysis and application of financial Sutherland sends about 50,000 rest of the main drag. County’s Brownfield Redevelop- tools that solve complex wealth transfer situations and can simply copies of his Or- The project would raze buildings, ment Authority still must approve chard Report including one deemed historic by the agreement. That body will re- save money with existing life insurance policies. email newslet- the Traverse City Historic Districts Com- view it on Oct. 26. 75 years of sophisticated planning with 100s of wealthy families ter. It contains mission, and use $3.8 million in state Although commissioners ap- has made us a national leader in the life insurance arena. news on the funds and $2.3 million in local proved the agreement, building health of the lo- matching funds to realize Suther- plans still must be approved by cal cherry crop, land’s vision: Something more than various city bodies. amusing anec- just a new headquarters but a kind Sutherland predicts it will all dotes from of capitol building for the Cherry come together, and the building Sutherland’s life Capital. will be finished by 2013. in Glen Arbor Visitors could look through win- To Mike Norton, media rela- and, of course, Sutherland dows to see workers jarring jams tions director for the Traverse City the latest products — cherry jams, and jellies, creating pound cakes Convention & Visitors’ Bureau, the BIRMINGHAM, MICHIGAN 248.731.9500 salsas, cookies and chocolates — at and baking the company’s popular proposed Cherry Republic head- WWW.SCHECHTERWEALTH.COM Sutherland’s growing business, “Boomchunka” cookies. There quarters would bring some needed Cherry Republic. would be a demonstration kitchen change. His company slogan — “Life, and other attractions where visi- “If you look at most of what is in Liberty, Beaches and Pie” — sells tors could see how Michigan work- downtown right now, it is geared not only his products but also his ers “get things done.” toward folks who are either with- ethos for northern Michigan. And Well, thanks but no thanks, says out children, whose children are it appears to be working, with one local city official: Jim Car- grown or who simply don’t have Cherry Republic revenue growing ruthers, a member of the Traverse children,” Norton said. “And about 12 percent a year for the past City Commission and an outspoken adding something that’s a little bit 800-292-3831 five years, Sutherland said. critic of the project. more family-friendly — whether indiantrails.com And Cherry Republic has been Carruthers objects to just about it’s this or something else — would spreading across the state — start- every aspect of the plan. He has a be a good addition to the mix. ing six years ago with a store in problem with tearing down a his- “Look at the kind of job Bob has Traverse City, then Charlevoix in toric building; with having such a done in Glen Arbor. Cherry Re- 2009 and then, this spring, down- large, looming structure blocking public is a popular destination. He state in Ann Arbor. Not bad for a the sun on Front Street; with the has done a lot for that very small

guy who, 20 years ago, was selling site swallowing a prime location community there without making ONE HU G ND IN R T E nothing but T-shirts with the Cher- downtown when just a few blocks it into a different kind of place A D R Y B E E ry Republic slogan to tourists out down the street are some underde- than it is.” A L R

E S of the trunk of his car. Now he em- veloped areas with light manufac- And what’s after Traverse City? C 100 Cherry Republic is evaluating that. The Ann Arbor store, which Sutherland said is performing well beyond expectations, is a bit of insurance in case the northern Michigan tourism industry slumps. “I’m a speech and English ma- jor,” Sutherland said, “so I’ve nev- er had a business class. And it’s been a plus because, I think, if I’d have had a business class, there are probably two or more times in this company’s life that, if I looked at it from a business perspective, I would have shut its doors. But I Comfort and was too innocent to know.” From the time he was 7 years old selling Petoskey stones to tourists t
$IBSUFST in front of his house, to his open- Luxury ing last spring of a Cherry Repub- t
5PVST lic store in downtown Ann Arbor, he life has been the story of what t
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one person can do to represent a 00 region that he loves. t
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4FSWJDF promotional code at time of booking: 2011CDB-OCT piece of what they really felt north- ern Michigan is all about.” 20111010-NEWS--0020-NAT-CCI-CD_-- 10/6/2011 3:38 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS October 10, 2011 CRAIN’S MICHIGAN BUSINESS Promotion, cooperation key to rebuilding auto industry, speakers say

BY ELLEN MITCHELL help nurture Michigan’s supply of and attract talent, incentives used we can use those dollars very effec- age would have to be improved by SPECIAL TO CRAIN’S DETROIT BUSINESS auto jobs to stronger health. to draw international companies, tively to attract those companies building up amenities and support- That was the consensus among how to promote the auto industry to and jobs.” ing efforts to bring Detroit back to A more strategic approach to speakers at Crain’s “Can Michigan the world and cooperation among In order to attract jobs and stop its former glory. An already posi- image-building for the region and Grow Auto Jobs?” policy discus- auto manufacturers in the region. the decline of the industry, public tive image of the auto industry as industry and the right kinds of sion. The event Tuesday included “We are the mecca of engineer- and private sectors need to work seen by overseas companies also business attraction efforts could panel discussions on how to retain ing in the country, and we’re sim- together and in- could potentially ply not doing enough,” said Sandy dustry leaders in help attract new Baruah, president of the Detroit Re- Michigan, Illinois, We are the mecca business and gional Chamber. Ohio, In- “ jobs. Doug Smith, senior vice presi- diana and of engineering “The auto in- dent and strategic partner of the Canada dustry in the Michigan Economic Development need to in the rest of the world Corp., said supporting the existing communi- is very positive- supply base in the region is critical. cate with country, and ly received,” FULL SERVICE ASSEMBLY “We treat the auto industry today each oth- said Neil De as though it’s gone away,” said er, speak- we’re simply Koker, presi- TOOLING SYSTEMS Smith, who just returned from a ers said. dent and CEO of trip to Southeast Asia with Gov. “Are we not doing Original Equip- Rick Snyder to attract Chinese com- trying to enough. ment Suppliers panies to the state. “If we can’t build get auto jobs or are ” Association. CONTINGENT WORKFORCE from what we have here, we have we trying specifi- “We’ve seen Sandy Baruah, Detroit Regional no one to blame but ourselves.” cally to get domes- eroding in mar- Chamber SERVICES Smith predicted 2012 would be a tic auto jobs?” ket shares forev- better year for suppliers and said asked Micki Maynard, senior edi- er, but no where else in the world that recovery is beginning to tor, Changing Gears. “I think you has that been happening.” bloom thanks to diversification need to first have to define your In addition to the push to have and foreign interest in the automo- terms and go from there.” overseas companies bring jobs to tive industry. Baruah said lack of cooperation Michigan, Baruah recommended 29401 Stephenson Highway “Most of the companies we met in the region may keep companies more attention to local companies. Madison Heights, MI 48071 with in China, half of those compa- from choosing Detroit, despite in- “Eighty percent of job growth nies were automotive or automo- centives the government offers. comes from existing companies,” 248 548 6010 tive-related — and they recognized “We still have trouble getting our he said “It’s making sure our exist- www.gonzalez-group.com they needed to be invested in or en- counties to work together,” he said. ing companies are happy and do- ter the marketplace here,” he said. “It’s not just about incentives.” ing well and have what they need “We have $100 million in which to To attract and retain talent, the to grow and expand. It’s not about AEROSPACE | DEFENSE | AUTOMOTIVE incent those companies. We think speakers agreed that Detroit’s im- writing a big check.” 20111010-NEWS--0021-NAT-CCI-CD_-- 10/6/2011 5:50 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 21

United Monthly U.K. Kingdom WHERE MICHIGAN DOES BUSINESS

The Kellogg Co. of Great Britain Ltd. has one of- rain’s monthly World Watch re- the sixth-largest economy in the world. fice and one factory in Manchester and two port examines Michigan compa- Besides London serving as one of the AROUND THE WORLD factories in Wrexham, one that produces ce- C nies going global with manufac- financial epicenters of the world, the Each World Watch Monthly features a different real and one that produces cereal snacks. turing, research and other operations. U.K. is a leader or major player in many country. If you know of a Michigan company that The factory in Manchester produces food for World Watch showcases Michigan other industries. Among them: aero- exports, manufactures abroad or has facilities the United Kingdom, Europe and parts of the companies that are already internation- space, automotive, professional ser- abroad, email Jennette Smith, deputy managing Middle East. al business leaders in growing global vices, chemicals, construction, con- editor, at [email protected]. Ⅲ Employees: 2,000 Upcoming reports: markets — and those that are expand- sumer goods, defense equipment, Ⅲ Products: Corn Flakes, Rice Krispies, ing operations. education and energy. Ⅲ November: Israel Ⅲ January: Japan Special K and products unique to Europe This month’s report centers on the The U.K.’s economy has been in a Ⅲ December: Canada Ⅲ February: South Africa such as Kellogg’s Krave. United Kingdom: England, Scotland, slow growth mode since the global eco- Ⅲ Top executive: Flemming Sundo, regional Wales and Northern Ireland. With a nomic downturn. Unemployment re- vice president, Kellogg’s U.K. and Ireland op- GDP in 2010 of $2.25 trillion, the U.K. is mains around 7.9 percent. erations Ⅲ More information: Kellogg’s U.K. is Kel- Asterand Inc. seven locations and more than 550 dealer- P. Johnson Europe, Middle East and Africa logg’s second-largest market in sales with 67 ships. It has a commercial vehicle assem- and CEO of Project: WorldWide EMEA million packs of Corn Flakes produced every Ⅲ Based: Detroit Ⅲ Ⅲ bly plant in Southampton; a stamping More information: GPJ is preparing for year at the Manchester factory for the U.K. U.K. operations: Facility in Royston plant and engine plant in Dagenham; a brand marketing at the 2012 Olympics in The Manchester factory is the world’s that provides pharmaceutical companies transmission plant in Halewood; an engine London and recently launched ExCel — largest cereal factory. with human tissue-based services, includ- plant in Bridgend, Wales; and a research London’s international convention center. ing scientific expertise in human tissue re- and development facility in Dunton. Head- search and outsourced drug discovery ser- quarters for Ford of Britian are in Brent- Meritor Inc. vices. wood, Essex. Ⅲ Ⅲ Based: Employees: 29 Ⅲ Employees: More than 15,000 Troy Ⅲ Services: Delivers human tissue-based Ⅲ Products: Ford Transit, panels, sub- Ⅲ U.K. oper- data. Its studies can be custom designed assemblies, wheels, engines, transaxles ations: Tech- and are conducted on a fee-for-service ba- and transmissions. nical center sis in which clients own and retain all re- Ⅲ Top executive: Joe Greenwell, chair- and produc- sulting intellectual property and data. Ⅲ man, Ford of Britain. tion facility Top executive: Amanda Woodrooffe, in Cwmbran, general manager, U.K. operations General Motors Co. Wales. Ⅲ Employ- A Meritor Inc. brake housing Ⅲ Based: Detroit A HoMedics Inc. showroom in the U.K. Bissell Homecare Inc. ees: 450 line in Cwmbran, Wales. Ⅲ U.K. operations: Vauxhall Motors Ltd. of Ⅲ Products: Ⅲ Based: Grand Rapids Ⅲ General Motors. Products from the Euro- HoMedics Inc. Heavy vehicle braking U.K. operations: Subsidiary Bissell U.K. pean division are uniquely sold in the U.K. systems. distributes globally produced products; op- GM has two automotive manufacturing Ⅲ Based: Commerce Township Ⅲ Top executive: Dietrich Zaps, general erations in Berkshire include sales and plants, in Luton and Ellesmere Port, one Ⅲ U.K. operations: Europe, Middle East manager marketing. warehouse in Toddington, one engineering and Africa headquarters in Tonbridge, Ⅲ Employees: 19 center in Millbrook and a headquarters in with areas including sales, marketing, Ⅲ Products: Distributes Luton that includes the R&D, finance and operations. MSX International Inc. upright and cylinder vacu- company’s sales and mar- Ⅲ Employees: 75 Ⅲ Based: Warren um cleaners, carpet wash- keting operations. Ⅲ Products: Almost all of HoMedics’ Ⅲ U.K. operations: Operations for the com- ers, sweepers, steam clean- Ⅲ Employees: 4,500 product lines are handled in Great Britain, pany’s Retail Network Solutions and Human ers and hard-floor units. COTLAND Ⅲ Products: Vauxhall including Salter personal scales and Capital Solutions divisions. Offices are in Ⅲ Top executive: Alistair S manufactures the Astra kitchen products, Marley lifestyle products Colchester, and members of the HCS team Roberts, managing direc- NORTHERN five-door hatchback, Astra and RFA Brands. are in customer locations throughout the tor, U.K. IRELAND Sports Tourer, Astravan Ⅲ Top executive: Simon Bluring, vice country. The RNS operation serves cus- Ⅲ More information: Bis- and light commercial ve- president, Europe, Middle East, Africa tomers in Great Britain, Ireland, Europe, the sell is the fastest-growing hicles including the Vaux- Middle East and South Africa. The HCS oper- floor care brand in the U.K. ENGLAND hall Vivaro, Opel Vivaro, International Automotive ation provides back-office support to cus- IRELAND Manchester Royston Renault Trafic and Nissan tomers in Germany and Sweden. Edwards Bros. Inc. Primastar. Components Group Ⅲ Employees: 290 WALES Ⅲ Top executives: Bill Ⅲ Top executives: Felix Serrano, RNS man- Ⅲ Based: Ann Arbor Southampton Ⅲ Based: Southfield Parfitt, chairman and aging director, U.K., Iberia and South Ameri- Ⅲ U.K. operations: Digital Ⅲ U.K. operations: IAC Group Ltd. supplies Plymouth CEO, GM U.K., Vauxhall ca and David Ballew, director, HCS Europe book manufacturing center interior and exterior systems and compo- and Opel Ireland, and within a customer’s warehouse in Ply- nents for passenger vehicles and heavy Duncan Aldred, managing director, Vaux- mouth. The customer is NBN International, trucks around the globe. It has five manu- hall Motors Prestolite Electric Holding Inc. owned by the Rowman & Littlefield Publishing facturing plants, in Coleshill, Elmdonand, Ⅲ More information: To keep up with de- Ⅲ Group. Halewood, Scunthorpe and Sunderland, Based: Plymouth mand, Vauxhall this year added 268 em- Ⅲ Ⅲ Employees: Two permanent employees and one customer center in Basildon. U.K. operations: One plant in Greenford ployees to support higher line speed and 39 and numerous on-call employees. Ⅲ Employees: 1,200 (near London) that manufactures starters apprentices to train at U.K.Vauxhall sites. Ⅲ Products: Soft-cover books for NBNi, Ⅲ Products: Trunk liners and trim, inte- and alternators primarily sold in the U.K. mostly trade publishing and for several rior parts and trim, tailgates, pillars, frame and Europe for heavy-duty vehicles. Fewer than 100,000 units are shipped to the U.S. university presses and education publish- George P. Johnson Co. finishers, cockpit modules and bonnet lin- Ⅲ ers in the U.K. ers. Employees: 150 Ⅲ Based: Auburn Hills Ⅲ Ⅲ Products: Starters and alternators Ⅲ Industries served: Trade, scholarly and Customers: The Land Rover brand of Ⅲ education market publishers. Ⅲ U.K. operations: A full-service creative Tata Motors Ltd., Jaguar, Nissan Motor Co., Industries served: Automotive, agricul- Ⅲ studio and event operations hub in Toyota Motor Co., Honda ture Top executive: Steve Smith, director for Ⅲ digital operations Kingston upon Thames. Events include fes- Motor Co. and Vauxhall Top executive: Bev- Ⅲ More information: Recently formed a tivals, sponsorship and B2B events ranging Motors Ltd. erley Hounslow, man- global distributed print partnership, Glob- from trade shows and conferences to brief- Ⅲ Top executive: aging director, U.K. op- al Print Solutions, with three other leading ing centers and road shows. Jens Hoehnel, global erations book and journal manufacturers, including Ⅲ Employees: 85 co-CEO and president Ⅲ More information: CPI Group. Ⅲ Services: Account management and an of Europe for IAC U.K. operations event operations team that creates public Group account for about and B2B marketing campaigns. 5 percent of the compa- Ford Motor Co. Ⅲ Industries served: Consumer packaged ny’s total global rev- Ⅲ Based: Dearborn goods, automotive, technology, financial Kellogg Co. enue, with about $1.09 Ⅲ U.K. operations: Ford of Britain, the services, life sciences and more. Ⅲ Based: Battle million earned annual- British subsidiary of Ford of Europe, is the Ⅲ Top executives: Kim Myhre, senior vice Creek ly. biggest motor company in the U.K., with president and managing director of George Ⅲ U.K. operations: Inside Prestolite’s Greenford plant. — Ellen Mitchell 20111010-NEWS--0022-NAT-CCI-CD_-- 10/6/2011 4:35 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 10, 2011

CRAIN'S LIST: LARGEST OUTSTATE MANUFACTURERS Ranked by 2010 revenue

Company Revenue Address ($000,000) Revenue % Employees Jan. 2011 Number of plants Rank Phone, website Top executive 2010/2009 change Michigan/worldwide in Michigan Michigan plant locations Products/industry Dow Chemical Co. Andrew Liveris $53,674.0 19.6% 6,080 2 Harbor Beach, Hillsdale Chemicals, plastics, and 1. 2030 Dow Center, Midland 48674 chairman, president $44,875.0 50,154 agricultural products (989) 636-1000; www.dow.com and CEO Whirlpool Corp. Jeff Fettig 18,366.0 7.4 NA 0 NA Household appliances 2. 2000 North, M-63, Benton Harbor 49022 chairman and CEO 17,099.0 17,000 (269) 923-5000; whirlpool.com Kellogg Co. John Bryant 12,397.0 -1.4 NA 3 Battle Creek, Grand Rapids, Wyoming Food processor 3. 1 Kellogg Square, Battle Creek 49016 president and CEO 12,575.0 30,600 (269) 961-2000; www.kelloggcompany.com Stryker Corp. Stephen MacMillan 7,320.0 8.9 NA 2 Kalamazoo, Portage Medical devices 4. 2825 Airview Blvd., Kalamazoo 49002 chairman, president 6,723.1 18,293 (269) 385-2600; www.stryker.com and CEO Perrigo Co. Joseph Papa 2,755.0 21.5 3,700 6 Allegan, Holland Pharmaceuticals 5. 515 Eastern Ave., Allegan 49010 chairman, president 2,268.2 7,667 (269) 673-8451; www.perrigo.com and CEO Steelcase Inc. James Hackett 2,437.1 6.3 NA 4 Kentwood, Grand Rapids Office furniture 6. 901 44th St. SE, Grand Rapids 49508 president and CEO 2,291.7 13,000 (616) 247-2710; www.steelcase.com Universal Forest Products Inc. Matthew Missad 1,890.9 13.0 NA 1 Lansing Wood and wood-alternative 7. 2801 E. Beltline NE, Grand Rapids 48525 CEO 1,673.0 5,000 products (800) 598-9663; www.ufpi.com Herman Miller Inc. Brian Walker 1,649.2 1.2 NA 3 Zeeland, Holland, Office furniture 8. 855 E. Main Ave., Zeeland 49464 president and CEO 1,630.0 5,800 Spring Lake (616) 654-3000; www.hermanmiller.com Dart Container Corp. Kenneth Dart 1,500.0 B NA NA 1 Mason Foam cups and containers 9. 500 Hogsback Road, Mason 48854 CEO NA 5,800 B (517) 676-3800; www.dartcontainer.com Wolverine World Wide Inc. Blake Krueger 1,248.5 13.4 NA NA NA Footwear, apparel and 10. 9341 Courtland Drive NE, Rockford 49351 chairman, president 1,101.1 4,139 accessories (616) 866-5500; www.wolverineworldwide.com and CEO Haworth Inc. Franco Bianchi 1,200.0 9.1 NA 4 Holland, Kentwood, Office furniture 11. 1 Haworth Center, Holland 49423 president and CEO 1,100.0 6,000 Ludington, Big Rapids (616) 393-3000; www.haworth.com La-Z-Boy Inc. Kurt Darrow 1,187.1 0.7 NA 0 NA Home furniture 12. 1284 N. Telegraph Road, Monroe 48162 president and CEO 1,179.2 7,910 C (734) 242-1444; www.la-z-boy.com Alro Steel Corp. Alvin Glick 1,100.0 D 34.1 NA 16 Alpena, Ann Arbor, Battle Creek, Metal servicing 13. 3100 E. High St., Jackson 49204 chairman and CEO 820.0 D 1,300 B Bay City, Cadillac, Clare, Detroit, Flint, (517) 787-5500; www.alro.com Grand Rapids, Grayling, Jackson, Kalamazoo, Lansing, Livonia, Niles, Potterville Gentex Corp. Fred Bauer 816.3 49.9 NA 5 Holland, Zeeland Auto-dimming mirrors and 14. 600 N. Centennial St., Zeeland 49464 executive chairman 544.5 3,006 aircraft windows, fire (616) 772-1800; www.gentex.com and CEO protection products Hart and Cooley Co. Inc. Mike Winn 500.0 NA 200 1 Grand Rapids Heating, air-conditioning and 15. 5030 Corporate Exchange Blvd., Grand Rapids president NA 1,000 roofing 49512 (616) 656-8200; www.hartandcooley.com Mill Steel Co. David Samrick 330.0 D 88.6 NA 2 Melvindale, Grand Rapids Steel processor 16. 5116 36th St., Grand Rapids 49512 chairman 175.0 D NA (616) 949-6700; www.millsteel.com Lacks Enterprises Inc. Dick Lacks Jr. 325.0 16.1 2,300 17 Kentwood, Grand Rapids Injection molding 17. 5460 Cascade Road SE, Grand Rapids 49546 president and CEO 280.0 2,305 (616) 949-6570; lacksenterprises.com JSJ Corp. Nelson Jacobson 270.0 8.0 900 6 Grand Haven, Grand Rapids, Hart, Durable goods and services 18. 700 Robbins Road, Grand Haven 49417 chairman, president 250.0 1,980 Madison Heights, Spring Lake (616) 842-6350; www.jsjcorp.com and CEO Magic Steel Sales LLC Joseph Maggini 270.0 D NA NA 1 Grand Rapids Steel servicing 18. 4242 Clay Avenue SW, Grand Rapids 49548 president NA 150 D (616) 532-4071; www.magicsteelsales.com Fabri-Kal Corp. Mike Roeder 260.0 E NA NA 1 Kalamazoo Thermoformer 20. 600 Plastics Place, Kalamazoo 49001 president and CEO NA 800 (800) 888-5054; www.f-k.com Cascade Engineering Inc. Fred Keller 255.0 F -8.9 500 1 Grand Rapids Plastics systems and 21. 3400 Innovation Court SE, Grand Rapids 49512 chairman and CEO 280.0 F 1,000 components, wind turbines (616) 975-4800; www.cascadeng.com ADAC Automotive Inc. Jim Teets 162.0 E 35.0 NA 5 Grand Rapids, Saranac, Muskegon Automotive parts 22. 5920 Tahoe Drive SE, Grand Rapids 49588-8375 president and CEO 120.0 E NA (616) 957-0311; www.adacplastics.com Summit Polymers Inc. James Haas 143.0 E 38.8 NA 5 Portage, Vicksburg, Sturgis Thermoplastic automotive 23. 6715 S. Sprinkle Road, Portage 49002 president 103.0 E NA products (269) 324-9330; www.summitpolymers.com Irwin Seating Co. Earle Irwin 125.0 B 0.0 350 1 Walker Fixed-seating products 24. 3251 Fruit Ridge NW, Grand Rapids 49544 president and CEO 125.0 B 500 (616) 574-7400; www.irwinseating.com Genova Products Inc. Dwight Van 115.0 G NA NA 1 Davison Plumbing and vinyl products 25. 7034 E. Court St., Davison 48423-0309 Steenkiste NA NA (810) 744-4500; www.genovaproducts.com president

This list of manufacturing companies is an approximate compilation of the largest companies with headquarters and operating centers outside of Wayne, Oakland, Macomb, Washtenaw, and Livingston counties. Companies with headquarters elsewhere are listed with the address and top executive of their main outstate office. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Crain's estimate. C As of April 2011. D Metal Center News. E Plastics News. F Plastics News, fiscal year end 8/2010. G Plastics News estimate. LIST RESEARCHED BY BRIANNA REILLY 20111010-NEWS--0023-NAT-CCI-CD_-- 10/6/2011 4:55 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 23 Extra

People Study: Patient Care Costs

Sonia Hassan, M.D., has been appointed associate dean for maternal, perinatal and Checking vital signs child health at the Wayne State University School Cost-cutting hospitals target labor expenses, patient stays and more of Medicine. She Hassan has served as BY JAY GREENE the director of the Center for CRAIN’S DETROIT BUSINESS Advanced Obstetrical Care and Research at the Perinatology n analysis of Medicare Research Branch of the Eunice data for Crain’s shows Kennedy Shriver National Institute of A some hospitals in South- Child Health and Human east Michigan have done better Development. The National Institutes than others in cutting average of Health center is housed at the patient care costs per discharge. school and the Detroit Medical Beaumont Hospital in Royal Oak Center. cut patient-care costs 11.1 per- Gregory Washington, M.D., is cent, the most of any of the 10 now medical director for psychiatric hospitals in the study, over four and health services at Detroit Central years from 2007 to 2010, said Cost City Community Mental Health Inc. Report Data Inc., the Louisville, He joined the organization in 2008. Ky.-based consulting firm that He is also on staff at the Detroit conducted Receiving Hospital psychiatric crisis the study for center. INSIDE Crain’s. Eva St. John Feldman, M.D., Method: How the study was Hospital and Ph.D., director of done, Page 24 Medical Cen- the A. Alfred ter in Detroit Taubman Medical Early bird: Quickest to cut cut average Research costs avoids the patient care Institute and worst pain, expense the professor of Page 26 second most: JOHN SOBCZAK neurology at the Nick Vitale, CFO of Beaumont Health System, says the Royal Oak hospital’s trash that used to be thrown out is now Case study: 8.6 percent compacted and sold to a recycler — one way Beaumont has cut costs recently. University of Crittenton’s from 2007 to Michigan, has strategy, Page 27 2009. Like Feldman been named penses in any short time frame ational efficiencies, Klett said. bad debt from operating expenses seven other president of the can have short-term cost in- While some hospitals show pa- and adjusts admissions by divid- hospitals in the study, St. John’s American Neurological Association crease implications. tient care cost increases, nation- ing a ratio of inpatient revenue to Medicare cost report for 2010 was of Minneapolis. She will serve a two- For example, refinancing al data show that Michigan hos- total gross patient revenue. year term. unavailable. bonds for long-term savings can pitals are more efficient than Nationally, from 2007 to 2009, On the other hand, Henry Ford increase costs that year because hospitals in 25 states, primarily expense per adjusted admission Sundeep Kalantry, Ph.D., has Hospital had a 7.1 percent in- been given a 2011 New Innovator bond expenses are incurred in because low reimbursement increased 7.1 percent, from crease in patient care costs, pri- Award by the National Institutes of the year the bonds are sold, said rates and quality improvement $9,377 to $10,045, the AHA said. marily because the hospital com- Health. Kalantry is an assistant Mike Klett, Beaumont’s vice programs have created incen- The 10 hospitals in this study pleted a major construction professor at the University of president of reimbursement. tives to cut costs. averaged a 0.7 percent increase Michigan Medical School. He is also project and assumed costs for And cutting workforce costs In 2009, Michigan hospitals in patient expenses — as ex- a faculty member in UM’s opening a $360 million hospital can save salary expenditures but ranked 25th in expense per adjust- pressed by case-mix adjusted op- Department of Human Genetics. in West Bloomfield Township. increase unemployment insur- ed admission, $10,525, compared erating expense per adjusted dis- As the largest teaching hospi- Michelle ance costs, accrued sick and va- with $10,149 in 2008, a 3.7 percent charge — during that three-year tal in the state, with more than Schreiber, M.D., cation pay, retiree buyouts or increase, according to the Ameri- period (see chart below). 850 resident physicians, Ann Ar- has been named severance payments, Klett said. can Hospital Association. Alabama bor-based University of Michigan Henry Ford Hospitals also can incur higher was lowest in 2009 at $7,239 and Looking at expenses Health System’s Hospitals and Health Centers also patient care costs in one year by Alaska highest at $15,030. senior vice had a 2.2 percent patient care ex- embarking on expensive con- The AHA calculates expense Thomas Schuhmann, Cost Re- president of pense increase over three years. struction or capital improvement per adjusted admission differently port Data’s senior vice president Clinical But those numbers sometimes projects, although the improve- than most hospitals and the analy- Transformation can be deceiving, as cutting ex- ments can boost quality and oper- sis in this article. AHA subtracts See Cost cutting, Page 24 and Clinical IT Integration. She Schreiber worked for Henry COST-CUTTING CHALLENGE Ford from 1989 to 2007 before The chart below shows how 10 area hospitals fared in trying to cut patient care costs per discharge moving to Detroit Medical Center as since 2007. For more detail about why costs went up or down, see Page 25. $11,848 $12,111 a senior vice president, chief quality $9,390 and safety officer. Just before $8,838 $9,320 $9,240 $8,921 $8,328 rejoining Henry Ford, she was at $7,462 $7,089 $7,382 $7,322 $6,896 $7,256 Trinity Health as a senior vice $6,304 $6,749 $6,302 $6,487 president and chief medical officer. $5,737 $5,728 Maureen Bowman, R.N., has been appointed vice president and chief nursing officer for Beaumont 2007 2010 2007 2009* 2007 2010 2007 2009* 2007 2010 2007 2009* 2007 2009* 2007 2009* 2007 2009* 2007 2009* Hospital in Royal Oak. She has been with Beaumont as a nurse for 32 Beaumont St. John DMC Detroit DMC Harper Oakwood St. Joseph Crittenton University St. Joseph Henry Ford Hospital, Hospital Receiving University Hospital Mercy Hospital of Michigan Mercy Hospital years. Her most recent position was Royal Oak and Medical Hospital Hospital and Medical Oakland Medical Hospitals Hospital as interim vice president of nursing Center Center Center and Health operations. * Most recent year available. Centers 20111010-NEWS--0024-NAT-CCI-CD_-- 10/6/2011 4:34 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 10, 2011 Health Care Extra Cost cutting: Vital signs ä7KHODUJHVWKHDOWKFDUHIRFXVHG ■ ODZĆUPLQWKHQDWLRQ From Page 23 of finance, said the study showed ä2YHU\HDUVLQWKHKHDOWK that Southeast Michigan hospitals HOW THE STUDY WAS DONE ODZEXVLQHVV are doing a fairly effective job of Using Medicare cost reports, which reducing costs. ä0RUHWKDQDWWRUQH\VVHUYLQJ hospitals must file annually using “Nationally, expenses have been generally accepted accounting KHDOWKFDUHFOLHQWV increasing 7 to 10 percent per year principles, Louisville, Ky.-based over the last several years,” Cost Report Data LLC analyzed ä5HSUHVHQWLQJRYHUKHDOWKFDUH Schuhmann said. “These hospitals financial reports for seven hospitals RUJDQL]DWLRQVQDWLRQZLGH are doing a good job at reducing from 2007 to 2009 and data for costs and keeping cost increases three others from 2007 to 2010. below 5 percent a year.” The study, which looked at average Most hospitals have been scruti- patient expenses as expressed as nizing labor expenses and replac- case-mix adjusted operating ing staff only if it is justified by re- expense per adjusted discharge, turn-on-investment or quality showed that five hospitals cut patient care costs and five factors. Hospitals also have been hospitals raised costs during the renegotiating supply and surgical review period. instrument and implant contracts. Case mix refers to the average And they have been shortening in- severity of illness of patients, with patient stays by improving quality higher numbers reflecting sicker IF IT’S HEALTH CARE, and reducing infection rates. patients. The study used Medicare “Before 2008, the industry saw claims to compute the case-mix consistent growth year after year. index, although Medicare accounted WE WILL BE THERE. If the hospital cost structure went for only 30 percent to 50 percent of up, (hospitals) could generate patients at the hospitals. more revenue” from payers or in- The costs refer only to the creased patient volume to main- hospitals’ own costs and don’t tain margins, said Nick Vitale, account for outside physician CFO of Beaumont Health System. charges. The data also are much different than hospital charges to Since 2008, however, patient patients. Patients are billed full volume has flattened or declined charges for their stays at hospitals, while costs have continued to rise but they rarely pay full charges. If a and health insurers have been re- patient is covered by insurance, luctant to pay higher reimburse- including Medicare or Medicaid, the ment rates, Vitale said. charges are heavily discounted. 201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | 248.740.7505 ZZZKDOOUHQGHUFRP “Providers have had to work hard on the expense side, which been flat for the past five years. is difficult in health care because “We identify those employees most of the expense — 60 percent who have the highest percentage plus — is fixed: buildings equip- of costs and work with them ment and other costs not related through coaching to make sure to volume,” Vitale said. they are taking their medications, Vitale said the 989-bed hospital see their primary care doctor to cut costs by a combination of decrease ER visits and keep them renegotiating hospital supply and healthy,” McGuire said. purchased services contracts, Over the next few months, nonpatient care program elimi- McGuire said, St. Louis-based Ascen- nation, clinical resource manage- sion Health — St. John’s parent com- ment and employee attrition. pany — will roll out the health bene- “We had a lot of fixed costs that fit cost reduction program to all of went up in 2009” when Beaumont the company’s 120,000 associates. began its expense reduction pro- Other initiatives that have cut medical Systems gram, Vitale said. “The variable Helping doctors be doctors (employee) costs went down a lot patient care costs include reduc- in 2010, which is when we started ing hospital infection rates and to see improvement.” medical errors, McGuire said. Like many local hospital groups, three-hospital Beaumont Health Sys- Some expenses rising tem lost money in the downturn. After posting a $30 million operat- But other hospitals experienced ing loss and a $217 million total patient care expense increases, de- loss in 2008, Beaumont began a spite cost containment programs. cost containment and revenue en- Detroit-based Henry Ford Hospi- hancement program in 2009 to end tal’s expenses increased 7.1 per- the year with a $14 million profit. cent to $8,921 in 2009 from $8,328 in “On the expense side, we focused 2007, Cost Report Data said. on supply chain costs, which are Dwight Angell, Henry Ford’s di- $400 million per year,” Vitale said. rector of media relations, said in “Through pricing standardization addition to more than $500 million and contract pricing, we reduced in capital projects, Henry Ford $40 million in ongoing savings.” also spent money on acquiring ex- Among the measures: By reduc- pensive medical technology and ing the number of heart implant paying for cancer treatment drugs. vendors to five from 13, Beaumont After Henry Ford Health System’s cut $2.75 million in costs, said net income declined to $8.5 million Mike Langlois, director of supply from $105 million in 2007, the six- chain management. hospital system, which does not re- port out individual hospitals, has Patient care costs slowly improved profitability over the past three years. St. John CFO Patrick McGuire For example, Henry Ford moved said the 777-bed hospital cut costs quickly in 2009 to reduce expenses by paying attention to a variety of with productivity and clinical expenses since 2007 that included process improvements, freezing consolidating services, renegotiat- salaries, reducing staff in nonclin- ing supply contracts and holding ical areas, delaying capital spend- down employee health plan costs. ing and reducing supply costs. With medical insurance costs It also has adopted lean process rising nationally at an 8 percent engineering to reduce costs in its clip, McGuire said St. John’s em- ployee health plan expenses have See Next Page 20111010-NEWS--0025-NAT-CCI-CD_-- 10/6/2011 4:34 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 25 Health Care Extra From Previous Page $5 million annually, starting in UM Hospitals operating rooms, outpatient clin- 2007, by implementing a federal WHAT HAPPENED? ics, cardiac surgery and behav- program that requires drug manu- Ann Arbor-based University of ioral services. facturers to give discounts on Michigan Hospitals and Health At hospitals that cut patient care expenses: Centers had a 2.2 percent patient But Schuhmann said another pharmaceuticals to hospitals that Ⅲ Beaumont Hospital, Royal Oak, employee health plan cost reason Henry Ford’s expenses serve a disproportionate share of care expense increase over three took out the most costs of any increases flat for the past five have increased is because its pa- low-income patients, Owen said. years, to $12,111 per adjusted dis- hospital in Southeast Michigan years. The hospital also reduced tients are sicker than in the past. In 2009 and 2010, patient costs in- charge in 2009 from $11,848 in 2007. over four years by reducing hospital infection rates and medical After posting a net loss of creased because Oakwood granted Kara Gavin, UM health system’s variable costs — or employee and errors that helped to cut length of merit pay increases of 2 percent director of public relations, said la- supply costs —and improving stays and malpractice insurance $76 million on revenue of $1.1 bil- clinical care efficiency by using premiums. and 2.25 percent, respectively, bor and supply costs increased lion in 2008, four-hospital Oakwood best practices to treat several Owen said. Most hospitals locally 3 percent annually, or $355 per case Ⅲ DMC Detroit Receiving Hospital Healthcare Inc. in Dearborn has cut chronic disease conditions, and DMC Harper University Hospital patient care expenses by reducing have given only bonus pay awards. per year, from 2007 to 2009. The hos- including patients with congestive pital also invested millions in a new reduced patient care expenses employee pension contributions, The hospital also is treating sick- heart failure. from 2007 to 2009 by renegotiating centralizing some patient care and er patients because it became a lev- cardiovascular center and electron- Ⅲ St. John Hospital and Medical supply contracts, improving clinical corporate services and negotiating el-two trauma center, Owen said. ic medical record system. Center in Detroit cut average care efficiencies and reducing more favorable orthopedic implant Patient care expenses at Critten- “So, to achieve only a 2.2 percent patient care expenses by keeping unnecessary labor costs. prices through standardization. ton Hospital Medical Center in cost-per-case increase … is impres- But an 8 percent annual in- Rochester Hills increased 1.9 per- sive when compared to national At hospitals with increasing patient care expenses: crease in its employee health plan cent over three years, to $7,462 in cost-per-case trends over 4 per- Ⅲ Dearborn-based Oakwood expenses increased because it expenses has led to higher overall 2009 from $7,322 in 2007. cent,” Gavin said. Hospital and Medical Center’s built a new cardiovascular center patient care expenses the past four Crittenton CFO Donna Kopinski Over the past several years, the patient care expenses increased and installed an electronic medical years at its flagship Oakwood Hospi- said patient care costs rose pri- university hospital has cut costs primarily because of rising record system. In early 2009, the marily because Medicare refused with lean process engineering that employee health plan expenses. hospital also began cost tal and Medical Center, said corpo- containment that included a hiring to pay for the hospital’s new fami- has improved clinical care quality. Oakwood cut expenses by rate Controller Matt Elsey. centralizing observation and freeze, targeted layoffs and supply ly medicine program. “We were investing heavily in Elsey said the system is cutting recovery patients into a single unit cost reductions. patient care quality and safety, in- health plan costs by wellness pro- Starting in 2006, the hospital had and by negotiating more favorable Ⅲ Henry Ford Hospital in Detroit had grams and hiring only nonsmokers. absorbed $12 million to $15 million cluding the patient experience, orthopedic implant prices through the largest increase in patient care Kyle Owen, the system’s corpo- of the program’s costs until it and these investments continue to standardization. expenses, primarily because the rate director of budget and finance, struck a deal this summer with pay off,” said Doug Strong, UM Ⅲ Patient care expenses at hospital completed a major said Oakwood Healthcare has taken Doctors’ Hospital of Michigan to take hospital CEO. “We have shifted Crittenton Hospital Medical Center construction project and assumed out about $10 million in corporate over 18 of the federally funded resi- somewhat since then and are fo- in Rochester Hills increased, costs for opening a $360 million overhead costs the past several dency slots at Doctors’ Hospital. cused on productivity while we almost exclusively due to Medicare hospital in West Bloomfield continue to improve quality.” refusing to pay for the hospital’s Township. Costs also rose because years by moving to centralize some Over the past several years, Crit- it acquired expensive medical In early 2009, the hospital also family medicine program that began hospital services at the system level. tenton has cut expenses by using a in 2006. The hospital spent up to technology. Henry Ford has adopted began cost containment that in- For example, Oakwood Hospital labor productivity program to re- $15 million over four years to train lean process engineering to reduce centralized all observation and re- duce staff through attrition and re- cluded a hiring freeze, targeted about 20 young physicians. costs in its operating rooms, layoffs and supply cost reductions. covery patients into a short-stay ducing supply costs by working Ⅲ University of Michigan Hospitals outpatient clinics, cardiac surgery unit in 2009 where it can be ensured with surgeons to standardize ortho- Jay Greene: (313) 446-0325, and Health Centers’ patient care and behavioral services. [email protected]. Twitter: timely discharges, Owen said. pedic and heart implants, Kopinski Sources: Interviews with hospitals, Crain’s research The hospital also saved about said. (See story, Page 27.) @jaybgreene

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Page 26 CRAIN’S DETROIT BUSINESS October 10, 2011 Health Care Extra Study: Patient Care Costs Early cuts may lessen the pain for hospitals

BY JAY GREENE tomatic 2 percent Medicare cut is CRAIN’S DETROIT BUSINESS expected to go into effect in 2013. Other cuts, including to the mili- Hospitals in Southeast Michigan tary and the federal-state Medicaid have cut patient care expenses for program, also are expected. the past four years, starting before By using labor productivity re- the economy tanked in 2008 and af- views for targeted layoffs or down- ter patients began delaying elec- sizing; lean process engineering to tive surgeries and competition streamline patient care, laborato- with physicians became more ry and diagnostic services; and in- heated. formation technology to reduce Hospitals that have taken the duplicative services and identify most aggressive steps to reduce patients who need preventive care; costs and improve quality are ex- hospital executives say they are pected to fare better under health preparing for health care reform care reform and expected reduc- and value-based payments. tions in Medicare payments over At the same time, nonprofit hos- the next several years, hospital ex- pitals, which account for 80 per- ecutives told Crain’s. cent of all acute-care facilities, are As part of the Affordable Care experiencing sharp revenue de- Act of 2010, Medicare is cutting clines, hitting a two-decade low, $155 billion from hospital pay- according to a report by Moody’s In- ments over the next 10 years by re- vestor Service. ducing planned updates and refus- Moody’s said 20 percent of non- ing to pay for some hospital profit hospitals lost money in 2010 readmissions. and 63 percent barely broke even. Starting in October 2012, hospi- Hospital revenue growth dipped to tals will be paid based on a new 4 percent in 2010, the lowest in a value-based purchasing reim- decade, after reaching a high of bursement model. Medicare will 9.2 percent in 2002, Moody’s said. withhold 1 percent of its payments Michigan’s revenue growth was to hospitals and dole it out as even lower, said Moody’s, ranging bonuses to hospitals that meet var- from 2 percent to 4 percent. ious quality measures, including Hospitals should expect further patient satisfaction. financial problems over the next There may be more Medicare and several years as patient volumes Medicaid reimbursement cuts be- continue to decline and additional cause Republicans and Democrats Medicare and Medicaid cuts hit in Washington are having large dis- bottom lines, said Moody’s. agreements on how to address the “Hospital downgrades will like- growing federal budget deficit. ly increase in the short term un- If the government further cuts less expense reductions and pro- payments, private payers are also ductivity gains compensate for expected to ratchet down rates to stagnant or weak revenue growth” keep pace, leading to a double- and hospitals “make fundamental whammy in revenue, hospital ex- changes to their business model,” ecutives said. said the Moody’s report. And if the so-called bipartisan Jay Greene: (313) 446-0325, supercommittee cannot agree on [email protected]. Twitter: $1.2 trillion in budget cuts, an au- @jaybgreene

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October 10, 2011 CRAIN’S DETROIT BUSINESS Page 27 Health Care Extra Work smarter for your business. Study: Patient Care Costs Crittenton’s strategy: Leave some jobs unfilled

BY JAY GREENE Coran said patient care expens- are rejected and are not filled. CRAIN’S DETROIT BUSINESS es have remained flat for the past “Our leadership understands two years by the process and only asks for re- Crittenton Hospital Medical Center cutting supply placements if they think they are in Rochester Hills has been cutting costs and in- necessary,” said Coran. “We have patient care costs since 2006 by us- creasing work- decreased turnover and increased ing a labor productivity analysis force productiv- physician, employee and patient system. ity using the satisfaction.” Using a specialized program de- Premier ap- Coran said the labor productivi- vised by Charlotte, N.C.-based Pre- proach. ty review also has significantly re- mier Inc. called LaborConnect, Crit- “When some- duced overtime and eliminated the Size, comfort, value and versatility that drives your potential. tenton has saved more than one leaves, if not need for expensive agency nurses. The 2011 Sprinter Van — exclusively at Mercedes Benz of Novi. Visit us today $4 million. More than 500 hospitals a critical posi- The productivity review also ex- Coran to see the area’s largest Sprinter inventory. in the U.S. use LaborConnect, in- tion, the job re- tends to departments, including cluding six-hospital Henry Ford sponsibilities are reviewed careful- emergency and obstetrics. Mercedes Benz of Novi Health System. ly to make sure we provide value to “We saw significant savings and 39500 Grand River Ave. Many other hospitals in South- patients,” Coran said. “We use at- changes in our mother-baby de- Novi, MI 48375 Ph: 248-426-9600 (Sales & Service) east Michigan have used similar trition to the best of our ability.” partment by changing the process www.mercedesbenzofnovi.com approaches to reduce labor costs, For example, Coran develops re- how we care for patients,” Coran including three-hospital Beaumont ports on every open position that said. “It has improved satisfaction Health System in Royal Oak and De- are then scrutinized by a labor and lowered our unit costs.” troit Medical Center, officials said. productivity committee. Most clin- For example, nurses spend more With more than 60 percent of ical positions like nurses are ex- time with patients now that rou- hospital expenses tied up in labor, empt from the review. tine supplies have been relocated Crain’s 2012 Book of Lists Crittenton decided to take a close “When managers have open- to the department and made more look at open positions and over- ings, they come with questions to available. time to determine if replacing peo- discuss with me why the person is “Nurses don’t have to spend goes statewide! ple makes financial and opera- required,” Coran said. “We talk time looking for supplies,” Coran tional sense. with them about return on invest- said. “We also standardized docu- For exclusive ad placement next to your industry “We didn’t cut staff, but to keep ment and whether the expense is mentation to reduce time spent on or client lists, contact Marla Wise today at the resources we have we have a justified.” administration and provide more 313-446-6032 or email [email protected] process where we look at return on Each year, Crittenton has education to help patients know investment and generate cost sav- turnover of about 250 of its 1,600 em- what to do when they go home.” ings mostly from cost avoidance,” ployees, although only 100 positions Jay Greene: (313) 446-0325, AD CLOSE: Oct. 28 • ISSUE DATE: Dec. 26 said Kerry Coran, Crittenton’s la- go through the productivity review. [email protected]. Twitter: bor productivity engineer. About 10 percent of those positions @jaybgreene RECESSION THIS.

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Page 28 CRAIN’S DETROIT BUSINESS October 10, 2011 Health Care Extra HMO Priority Health goes up against large insurers, launches online cost analysis BY JAY GREENE “Human resource directors are Grand Rapids-based Atomic Object, CRAIN’S DETROIT BUSINESS buying and making purchasing de- saves Priority administrative costs. cisions without a lot of knowledge “Every year, we give PowerPoint Priority Health has launched a about what drives health care presentations to our 20 employers Web-based product to help employ- costs,” said VanEck. “We felt we (who are up for contract renewals),” ers with 51 or more full-time work- could give them certain data to VanEck said. “It takes us six to eight ers analyze their health benefit ex- help them understand what is go- hours of a person’s time to pull up penses and suggest how to ing on with the health of their the data and create the presenta- improve employee health and re- group and why they are spending tion. Now, we take the laptop and duce costs. so much.” make the presentation.” While large health insurers like Rebecca McLaughlan, managing VanEck also said he hopes Aetna Inc., Cigna, Humana and Blue director with McGraw Wentworth, HealthInSite will give Priority a Cross Blue Shield of Michigan offer said the Troy-based benefit consult- competitive edge in gaining new similar health cost and utilization ing firm uses insurance company members and increasing the reten- programs for employers, Priority claims data programs like Priority tion rate of clients. It may also help Health is one of the first HMOs in Health’s to help advise its clients in sell some of Priority’s wellness pro- Michigan to offer one, says Rick how to modify its benefit designs grams that could help cut costs. Murdock, executive director of the and reduce health care costs. HealthInSite works like this: Lansing-based Michigan Association “Most of the other insurers that Each participating employer of Health Plans. have these types of tools use it for client logs in to HealthInSite web- “While other plans or carriers employers with 300 or more em- site to pull up aggregate health may have such a program, Priority ployees, the self-funded plans,” data. Categories of data include has taken this a light year ahead,” McLaughlan said. “The whole idea the company’s top five cost cate- Murdock said. is to pull up current data and iden- gories, prescriptions, prevention Bob VanEck, Priority’s vice tify where the costs are increasing and chronic diseases. president of quality improvement, and what can be done.” For example, the top five cost said the 431-member HMO with of- For example, Blue Cross has an categories will tell employers the fices in Grand Rapids and Farm- analytic tool for employers and per-member monthly costs for em- ington Hills is offering the health clients called Online Customer Re- ployees. It also provides compari- benefit analysis tool to about 2,000 ports, said Gary Gavin, Blues’ vice sions for planning and industry of its eligible employer clients. president of key and large group averages. Most of Priority’s 11,500 employ- business. Blue Care Network, the “Employers are given cus- er clients are small businesses Blues’ HMO, offers the tool for tomized information on what they with fewer than 51 workers that do large self-funded employers. can do to improve,” VanEck said. not qualify for the free service be- VanEck also said the HealthIn- Jay Greene: (313) 446-0325, cause the tool is less effective for Site software program, developed by [email protected]. Twitter: @jay- smaller risk groups, VanEck said. Priority’s IT staff with assistance of bgreene Detroit Receiving plans $15.9M renovation Detroit Receiving Hospital and Uni- bilitation Center, Sterling Heights, versity Health Center in Detroit has CON Roundup construct a new 99-bed nursing fa- filed a letter of intent to renovate cility, $9.9 million. patient rooms on the fourth and vices by replacing one existing op- Ⅲ Lutheran Social Services of fifth floors of the hospital in a erating room with two new operat- Michigan Inc. Midtown Health Center, $15.9 million project. ing rooms and one procedure Detroit, construct a new 60-bed If approved by the Michigan De- room, $8.3 million. nursing home, $3.1 million. partment of Community Health, the Letters of intent: Ⅲ Shelby Township Care Center project will include renovation of Ⅲ Riverview Health and Rehab Cen- LLC, Shelby Township, lease a 120- 11 pods of existing patient rooms, ter North, Detroit, add 40 behav- bed newly constructed nursing fa- five on the fourth floor and six on ioral beds, $4.6 million. cility, $8.4 million. the fifth floor, with 99 rooms total. Ⅲ Lakeside Manor Nursing & Reha- — Ellen Mitchell Each pod has 15 beds. The renovation is designed to upgrade patient rooms as well as convert them to have private toi- THE MILLER LAW FIRM lets and showers. Currently, toi- lets are shared between patient a professional corporation rooms and showers are common to each floor. The total renovated construc- tion project is 38,000 square feet. 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October 10, 2011 CRAIN’S DETROIT BUSINESS Page 29 Senate bill would spare new purchases from personal property tax

LANSING — The services. It’s just not pos- chairman of the state sible.” Senate Finance Commit- Capitol By the latest Michigan tee is adding to the de- Briefings Department of Treasury es- bate over Michigan’s timates, the tax on indus- personal property tax trial personal property and sponsoring legisla- generated about $412 mil- tion that would exempt lion in 2010, although a new equipment purchas- 35 percent credit that es. was part of the Michigan The bill, to be intro- Business Tax reduced duced this week or next, that total to about $268 is an approach that will million. Taxes on com- Amy Lane YOUR BUSINESS give relief to manufac- mercial personal proper- turers and other busi- ty were $399 million, and nesses while still providing tax utility personal property taxes revenue to local units of govern- were about $397 million. ment and others from existing per- Brandenburg’s bill comes as the FUTURE IS BUILT sonal property, which would re- Snyder administration readies its main on tax rolls until it fully proposal for eliminating the per- depreciates, said Sen. Jack Bran- sonal property tax. The adminis- denburg, R-Harrison Township. tration is likely to phase out the ON BORROWING He sees the tax phasing out com- tax but has not specified exactly pletely in 10 to 12 years. Like oth- how that would occur nor has it de- ers pushing for elimination of the tailed pieces of its proposal. Lt. tax on personal property, Bran- Gov. Brian Calley in August indi- denburg said the tax deters busi- cated to Crain’s that the tax on in- DECISIONS YOU ness investment. dustrial and commercial property Brandenburg said exempting might be phased out first, with fu- new purchases would reduce rev- ture changes in store for the utility enue to those who receive it by portion. MAKE RIGHT about $80 million in the first year; One option the administration he did not have estimates beyond and others have been looking at is that. Brandenburg is not propos- how the state’s expiring business ing any replacement revenue and tax credits might free up replace- said he would like to see more con- ment revenue. ABOUT…NOW. solidation of some local units of The idea is that as the so-called government and services and cost “certificated” credits that were savings. previously awarded — like those “I would like to see the locals for general Michigan Economic make up this money themselves. Growth Authority projects and for ad- That would be my first prefer- vanced battery manufacturing ence,” Brandenburg said. “But I’m projects — phase out, the money all ears. that the state would no longer be “I think we have to do every- paying on the credits might have As a business owner, you face tough decisions every day. thing in our power to make Michi- potential as a funding source for gan more business friendly. Every- local units. Like deciding if and when you should borrow. A Huntington body also has to realize … that Brandenburg said he thinks his cash flow is not an open spigot. approach “is the most simple way Business Banker can help. And if we’re going to get this done to go about” eliminating the tax. right, then these sacrifices are go- But, he said, “I’m all ears to other ing to have to be made.” approaches, as long as at the end of He said he has not talked to local the day, we have personal proper- Now is the time to reach out. At Huntington Business government groups about his pro- ty tax reform.” posal. Banking, we take the time to understand your specifi c And it wins no favor with the Michigan Municipal League, which Comings & goings business needs and help you make borrowing decisions has been spearheading efforts to Ⅲ Frederick Hoffman, a former di- raise awareness of the importance rector of state relations for Chrysler that are right for you. In 2010, we committed to lending of the approximately $1.2 billion in Group LLC and former adviser to $4 billion to local businesses over a three-year period, tax revenue to local governments. Gov. Jennifer Granholm, has The league says local units can’t joined the Detroit office of Clark Hill so if you decide you’re ready, we’ll be there to support afford to lose a source of funds that PLC. He will be of counsel to the is stable and that in some commu- law firm’s government and public you every step of the way. It’s what you’d expect from nities supports more than 50 per- affairs group. cent of budgets. Ⅲ David Bertram, legislative team the #1 SBA lender.1 The league has joined with oth- leader at the Michigan Townships As- ers, including county and school sociation, has become assistant officials, to campaign for full, vice president for government af- guaranteed replacement funding fairs at Michigan State University. To learn more or speak with a Business Banker, stop by for any personal property tax Ⅲ Wendy Larner, who was chief of that’s eliminated. staff to then-state Rep. Tim Melton, your local Huntington branch, visit huntington.com/borrow Summer Minnick, the league’s D-Auburn Hills, has become exec- director of state affairs, said Bran- utive assistant to the CEO at com- or call 1-866-808-8913. denburg’s proposal “would be ab- munications firm Truscott Rossman solutely devastating” and repre- LLC. sents a total $1.2 billion loss of Ⅲ Cana Garrison, previous chief revenue. of staff to state Sen. Rick Jones, R- “It may start out at $80 million, Grand Ledge, has been named di- but it is a $1.2 billion reduction in rector of government relations at 1Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia local revenues without a replace- the Michigan Funeral Directors Asso- and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2011. ment,” she said. “Whether it takes ciation. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares two years or 10 years, you can’t re- Amy Lane: (517) 371-5355, Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. place 20, 30, 40 percent of a commu- [email protected]. Twitter: ©2011 Huntington Bancshares Incorporated. nity’s revenue by consolidating @alanecdb 20111010-NEWS--0030-NAT-CCI-CD_-- 10/7/2011 9:43 AM Page 1

Page 30 CRAIN’S DETROIT BUSINESS October 10, 2011 Green companies chase their dreams at Focus: Hope incubator

BY SHERRI WELCH create the infrastructure to take metal containers typically used for Fusion CEO Tom Gross. CRAIN’S DETROIT BUSINESS TWO WITH ONE STONE clean diesels and biofuels to market shipping with pumps, tanks, a Many customers shut down man- with portable fuel mixing stations. computer controller and software ufacturing research operations and Focus: Hope has turned a vacant Urban farming: Cultivating biofuels Another is Fusion Coolant Sys- to create an instant truck stop that equipment during the recession, and brownfield cleanup, Page 31 building on its campus into a tems Inc., which has developed a is currently providing clean Gross said. With production at full “green” incubator and is leasing dry coolant for cooling industrial diesels to Meijer’s fleet vehicles in capacity, they can’t disrupt it to space to biofuel, clean diesel and er headed by Jim Padilla Jr., son of machines and is in final negotia- Lansing and Newport, said Presi- evaluate Fusion’s technology on dry-coolant companies. former Ford Motor Co. President tions to move to Focus: Hope’s dent and co-founder Oliver Baer. their machines, Gross said. Among the companies in the Jim Padilla. (See story, Page 31.) campus in mid-October from the The systems could also support The availability of CNC ma- new incubator is TPA Inc., dba The Also leasing space is Clean Emis- Spark East incubator in Ypsilanti. biofuels, he said. chines and other equipment at Fo- Power Alternative, a biofuel produc- sion Fluids Inc., which is working to “We’d noodled around the idea … “As we have more and more of cus: Hope removes the hurdle of of an incubator-type business for our stations operating in South- not having machines of their own that building to bring upstart com- east Michigan, we’re going to need to test Fusion’s product, he said. panies to Focus: Hope … (as) a way more biofuels than what is cur- Most local incubators tend to be to put people back to work,” for rently available,” he said. for very early stage companies and many years, said Arnold Pirtle, di- And Clean Emissions assembly cater toward information-technol- rector of facilities at Focus: Hope. is also something Focus: Hope ogy companies, said Chris Rizik, The concept was also in line could train people to do, Pirtle said. CEO of the Renaissance Venture with Focus: Hope’s interest of go- Former Focus: Hope CEO Keith Fund and chairman of NextEnergy. ing green on its campus, he said. Cooley invited the third company, There could be a need for “grad- “As our economy changes, we’re Fusion Coolant Systems, when he uation space for companies,” par- looking to change with it … to pro- heard it was looking for a facility ticularly where there is equipment vide new, 21st century jobs and … with equipment available for or services that could be shared, to make the neighborhood a nicer demonstrating its dry coolant sys- he said. place to live.” tem for machinery to customers The Focus hope incubator has Focus: Hope, which is operating and vendors, Pirtle said. attracted two of the First Step on a $34 million budget this year, “It was reuse of the machining Fund’s portfolio companies, Clean is initially charging the new ten- that was sitting there, and they paid Emission Fluids and Fusion ants just enough rent to cover an hourly rate to use the equip- Coolant, said Managing Director overhead for the 63,000-square-foot ment,” with Focus: Hope supplying Mahendra Ramsinghani, who building, which sits next to its labor to run the machine, he said. oversees the $5 million fund Center for Automotive Manufac- Fusion, which was spun off from launched by the New Economy Initia- turing, where Android Industries LLC the University of Michigan in 2010, is tive to back startups. recently leased 70,000 square feet in final negotiations to move its “The equipment and the train- of space and 18 employees to as- operations from Ypsilanti to about ing at Focus: Hope makes it a great semble headliners and suspension 6,000 square feet in the new green launch pad for startups — these modules for the Chevrolet Volt. incubator in mid-October. startups would have a longer run- Clean Emission, which moved Chrysler Group LLC, Kalamazoo- way but for this facility.” its operations from Detroit’s Tech- based Stryker Corp., General Dynam- Sherri Welch: (313) 446-1694, Town to the Focus: Hope campus ics Land Systems Inc. and Boeing Co. [email protected]. Twitter: last December, is equipping solid are reviewing the dry coolant, said @sherriwelch

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October 10, 2011 CRAIN’S DETROIT BUSINESS Page 31 Family Law Experience Investors have faith in mustard seed In Your Corner. farming for biofuel, brownfield cleanup

BY SHERRI WELCH Instead of a property owner CRAIN’S DETROIT BUSINESS spending about $250,000 per acre to dig it up and haul the contaminat- Jim Padilla Jr. and investors in ed soil away, “you could spend TPA Inc. are looking to propagate a $10,000 over 10 years per acre to new crop for biofuels in Detroit clean it up,” Padilla said. and Michigan. Traditional, food-grade oil-pro- Padilla and three other in- cessing companies won’t squeeze vestors launched The Power Alterna- nonfood grade seeds because the tive in December 2006 to make crops absorb some of the soil cont- biodiesel fuel competitive with the aminants, he said. So Padilla es- pricing of regular diesel fuel with- tablished another for-profit com- out government subsidies. The in- pany, Metro Ag Services Inc. to vestors: his father, former Ford Mo- process them. tor Co. President James Padilla; At Focus: Hope’s incubator, he’s Dan Angell, COO and chief techni- set up a demonstration process for cal officer of TPA, whom Padilla crushing the mustard seeds har- met at Visteon Corp. in the late 1990s vested from the Detroit plot and and who later worked at Energy other demonstration sites and for Conversion Devices Inc. (Nasdaq: GLENN TRIEST converting the oil from them into ENER); and Lance Stokes, presi- biofuel for diesel, jet and other dent and CEO of Farmington Hills- uses. based ECI Environmental Consultants That’s kind of the TPA joined with Focus: Hope, & Engineers LLC. “ Michigan State University Extension, The Michigan Economic Develop- model for the whole University of Detroit Mercy and ECI Rebecca Decoster ment Corp. this year made a $95,000 Environmental to create the non- grant to TPA to fund planting and project. ... We’re not profit Start Detroit to share ideas, a demonstration-scale crushing/ conduct studies and to work to- oil production operation at Focus: talking about gether on creating a biofuel supply Hope. farming vast tracts system from field to pump, includ- “We were in biodiesel fuel pro- ing identifying job opportunities duction and figured out pretty of land. down the road. quickly there were some links in ” UDM is studying the phytoreme- the chain missing for the industry Jim Padilla Jr., TPA Inc. diation effects, Padilla said. Al- — the principal one being to get ready, it’s clear the mustard crops Contact Rebecca at [email protected] enough feedstock,” Padilla said. can produce much higher yields of I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing TPA has developed a process to “That’s kind of the model for the oil than soybean or corn, while convert the oil from mustard seeds whole project. …We’re not talking serving as a nutrient-protecting, to a biofuel, but it needs more about farming vast tracts of land,” ground cover crop during the win- plants to make the fuel. he said. ter. Focus: Hope pointed to a 3.5-acre The idea, he said, is to clean up “But in order to convince a site on Linwood, just north of Oak- parcels of land and then turn them farmer, you have to show him,” man Boulevard and the nonprof- back over to the city or other own- Padilla said. it’s campus. The city-owned land is ers. TPA is in conversations with a Superfund site, which also pro- Biofuel crop farming isn’t yet at farmers in the Lansing and Grand vides an opportunity for the mus- the stage where it would be prof- Rapids areas about doing pilot tard plants, which have phytore- itable, Padilla said. plantings of the hardier penny- mediation properties, to lift He believes that subsidies on cress mustard seed crops over the contaminants such as heavy met- the order of about $1,000 per acre winter to provide them with extra als from the soil. would be needed to make farming revenue, Padilla said. TPA gained permission from the biofuel crops in an urban environ- And MSU Extension, which has city to plant the site last fall with ment economically viable. That “a lot more street credibility with pennycress, a type of mustard seed subsidy would help cover the costs the farming community,” has mus- that survives over the winter. It of farming the land, harvesting the tard crops planted at Detroit Metro- harvested that crop in the spring crops, equipment and training politan Airport, Muskegon Airport and and has since planted another, workers to farm contaminated Gerald R. Ford Airport in Grand Padilla said. land. Rapids as it studies the potential for farming marginal land that is On the Job in contaminated or can’t profitably grow traditional crops due to size Exceptional Leadership. or location. Lansing So You “MSU is interested in this pro- ject to help develop the crops, the Can Keep Delivered. feedstock to supply green indus- tries,” such as diesel fuel, jet fuel and other products, said Dennis Doing Yours Pennington, bio-energy educator at MSU. As Michigan’s leading statewide business “We’re looking at this ... (to) re- advocacy organization, the Michigan Michigan’s duce our energy dependence on foreign oil and increase renewable Chamber is getting the job done to pass Premier energy production in Michigan bold tax reform, cut red tape and create and the U.S., which will create jobs Business Advocacy an atmosphere that helps Michigan Retained and help reduce our carbon foot- print.” Political Action businesses grow. Executive It’s going to take a few years to Member Services get the mustard seed biofuel pro- Join the Michigan Chamber of Commerce Search Firm duction up to scale where it starts to increase demand and profitabil- and help reinvent Michigan. Call (517) ity for Metro Ag and TPA, and to 371-2100 or visit www.michamber.com provide a return to its investors, Padilla said. “We want this to help all the Leading Businesses. Moving Michigan Forward. LLC companies associated with it … Local: (517) 371-2100, Toll Free (800) 748-0266 International Executive Search the farmers and ultimately, TPA.” www.michamber.com Sherri Welch: (313) 446-1694, Tel: +1.248.645.1551 • www.huntergroup.com [email protected]. Twitter: @sherriwelch 20111010-NEWS--0032-NAT-CCI-CD_-- 10/7/2011 12:04 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 10, 2011 HMO: Ranking organization unfairly favors those it accredits

BY JAY GREENE ports. including 390 commercial, 341 CRAIN’S DETROIT BUSINESS Andy Reynolds, NCQA’s media Medicare and 99 Medicaid organi- It is our firm conviction that relations director, who has seen zations. Plans were awarded up to Health Plan of Michigan has fired off “ Health Plan’s letter, said NCQA 100 points for enrollee satisfaction a letter to the nation’s largest HMO NCQA’s recent rankings are stands by its ranking methodology. and experience (25 percent), pre- accrediting organization to com- He acknowledged NCQA does not vention and treatment (60 percent) plain that the Detroit-based Medic- based on flawed methodology. grant points to health plans accred- and accreditation (15 percent). aid HMO — the largest in the state ” ited by other organizations — pri- Health Plan of Michigan scored with nearly 500,000 members — Sean Cotton, Health Plan of Michigan marily because it does not have a 71 points in 2011, compared with 86 dropped to 83rd on the National Com- method for rating the other bodies. points in 2010 when it had NCQA mittee on Quality Assurance’s health time in the November issue of Con- to health plans that are accredited “We feel NCQA has more con- accreditation. plan list in 2011, from 17th in 2010. sumer Reports magazine. The by NCQA. sumer protections and its standards Cotton said NCQA downgraded Over the past several years, rankings had been published in “It is our firm conviction that are more rigorous than other ac- Health Plan, which routinely has Michigan has had one of the high- U.S. News and World Report. NCQA’s recent rankings are based creditation bodies,” said Reynolds. one of the highest quality scores in est percentages in the nation of But Sean Cotton, Health Plan’s on flawed methodology and do a “We are better. … We believe NCQA Michigan, because it chose to be commercial and Medicaid HMOs general counsel, has a major com- great disservice to Medicaid bene- accreditation is one of the must accredited by URAC (formerly the in the top 25 of NCQA’s best HMOs. plaint with NCQA’s quality rank- ficiaries nationwide,” said Cotton haves for HMOs” that want to Utilization Review Accreditation Com- NCQA’s 2011 health plan rank- ing methodology that gives up to in a letter to James Guest, CEO of demonstrate quality to employers. mission) instead of NCQA. ings will be published for the first 15 points out of a maximum of 100 Yonkers, N.Y.-based Consumer Re- In 2011, NCQA ranked 830 HMOs, “Despite earning a top ranking for prevention and high scores for treatment, we have dropped to 83rd,” said Cotton. “This is ex- tremely troubling to us, as we con- tinue to provide the same excellent quality of care and hallmark cus- tomer service to all of our mem- bers, achieving results that meet or exceed our past performance.” Cotton, who said in the letter to Consumer Reports that NCQA has damaged Health Plan’s reputation, wants the magazine to take out the accreditation points awarded to health plans and recalculate the rankings. Reynolds said it is possible that HMOs can improve their own quality scores but still drop in the rankings. “One plan may be improving, but if others improve faster it is possible they could drop” in the rankings, Reynolds said. Another possible reason that commercial HMOs could be pushed down in the rankings is that NCQA this year added pre- ferred-provider organizations. This meant that a PPO could score higher than an HMO, forcing the HMO down in the rankings. Bob VanEck, Priority Health’s vice president of quality improve- ment, said Priority also dropped this year in NCQA’s rankings, to 41st from 13th for its commercial plan. Priority also ranks 9th this year for its Medicaid HMO. “We understand (that) the influ- ence of the PPOs being included could drop down some HMOs to a lower ranking,” VanEck said. “We know there are other clinical areas where our performance dropped. We aren’t blaming anyone. We need to do better.” VanEck said he is not bothered that NCQA does not include points in its ranking if an HMO chooses a different accrediting body. Priori- ty is NCQA accredited, with 87 points both for its Medicaid plan and commercial plan. “They can do what they want. It is their survey,” he said. “They are being as objective as they can.” Cotton said Health Plan decided to drop NCQA accreditation be- cause it believes URAC focuses more on nursing, membership and quality care than NCQA. “We have to be in NCQA in Illi- nois because it is a state require- ment, as it is for the third state we are looking at,” Cotton said. “We may have to go back to NCQA (in Michigan), because the ranking is like J.D. Power for cars. It is widely used by consumers, Medicare and some states.” Jay Greene: (313) 446-0325, [email protected]. Twitter: @jaybgreene 20111010-NEWS--0033-NAT-CCI-CD_-- 10/7/2011 9:41 AM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 33

CRAIN'S LIST: LARGEST GROUP HEALTH CARE PLANS Ranked by 2010 revenue

Total No. of No. of No. of enrolled enrolled enrolled enrolled No. of 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 2010/ 2009 change 2010/2009 plan plan plan other plans Name of group health care plans/types Blue Cross Blue Shield of Michigan/ Daniel Loepp $19,200.0 B -11.1% 4,351,928 C 647,048 D 3,168,321 0 536,559 Simply Blue PPO, Healthy Blue Outcomes Blue Care Network president and CEO $21,600.0 4,455,080 PPO, Community Blue PPO, Healthy Blue 600 E. Lafayette Blvd., Detroit 48226 Incentives PPO, Flexible Blue PPO plans (313) 225-9000; www.bcbsm.com compatible with health savings accounts, Blue Preferred PPO, Blue Care Network of 1. Michigan (BCN) HMO, BCN Healthy Blue Living, BCN PCP Focus, BCN Blue Elect Plus, BCN Healthy Blue Living Rewards, BCN Blue Essentials, Traditional Blue Cross Blue Shield, MyBlue products in under-65 individual market, Medicare Advantage/ Part D prescription drug plans Priority Health Kimberly Horn 1,997.2 22.8 610,000 308,000 59,680 75,900 166,000 HMO, PPO, POS, EPO, HRA, HSA, dental, 34505 12 Mile Road, Farmington Hills president and CEO 1,626.9 531,736 vision, HealthbyChoice, Wellness, 2. 48331 MyPriority for individuals, Medicare (800) 942-0954; www.priorityhealth.com Advantage, Medigap, Part D prescription drug plans

Health Alliance Plan of Michigan William Alvin 1,733.2 0.9 475,559 302,993 12,388 1,522 158,656 HMO, PPO, EPO, Health Engagement, 2850 W. Grand Blvd., Detroit 48202 president and CEO 1,718.1 476,350 high deductible health plans, HSA/HRA, 3. (313) 872-8100; www.hap.org Small Business Solutions, Power Package for Chamber Members; also Medicare plans and SOLO for individuals and families Delta Dental of Michigan Inc. Thomas Fleszar 1,286.5 -2.0 5,245,361 NA NA NA NA Delta Dental Premier, Delta Dental PPO, Farmington Hills and Lansing CEO 1,312.4 4,765,379 DeltaCare, DeltaVision 4. (517) 349-6000; www.deltadentalmi.com

Health Plan of Michigan Inc. David Cotton 873.2 32.2 281,078 281,078 NA NA NA Medicaid, Medicare HMO 777 Woodward Ave., Detroit 48226 president and CEO 660.3 236,770 5. (313) 324-3700; www.hpmich.com

HealthPlus of Michigan Inc. Bruce Hill 695.7 E 50.3 215,477 153,228 30,260 1,507 30,482 HealthPlus of Michigan - HMO, POS; 101 W. Big Beaver Road, Troy 48084 president and CEO 462.8 207,946 HealthPlus Insurance Co. - PPO; 6. (810) 230-2000; www.healthplus.org HealthPlus Options - TPA; HealthPlus Partners - HMO Medicaid

Molina Healthcare of Michigan Inc. Craig Bass 630.1 13.0 227,000 227,000 NA NA NA Medicaid, Medicare 100 W Big Beaver Road, Suite 600, Troy president 557.4 222,905 7. 48084 (248) 925-1700; www.molinahealthcare.com

Humana Michigan Denise Christy 580.0 F 9.4 NA NA NA NA NA NA 2800 Livernois, Building E, Suite 150, Troy 48083 president Humana's 530.0 F N/A 8. (248) 452-9230; www.humana.com Michigan and Indiana markets

UnitedHealthcare Jelka Petrovic 278.0 13.9 269,000 NA 28,000 154,000 87,000 Co-pay, HSA, high-deductible, short-term, 26957 Northwestern Highway, Suite 400, Southfield CEO of United 244.0 N/A student, Dental Premier, Dental Value, 9. 48034 Healthcare in Medicare Advantage, Medicare HMO, (800) 842-3585; Michigan Medicaid www.unitedhealthcare.com

Midwest Health Plan Inc. G Mark Saffer 248.5 10.8 70,630 70,630 NA NA NA HMO 4700 Schaefer, Suite 340, Dearborn 48126 president and CEO 224.2 69,271 10. (313) 581-3700; www.midwesthealthplan.com

OmniCare Health Plan Inc. Beverly Allen 187.8 0.8 50,923 50,923 NA NA NA Medicaid 1333 Gratiot Ave., Suite 400, Detroit 48207 CEO 186.4 53,912 11. (866) 316-3784; www.ochp.com

Total Health Care Inc. Randy Narowitz 180.4 0.2 52,710 52,710 NA NA NA Medicaid, HMO, HMO deductible, PPN, 3011 W. Grand Blvd., Suite 1600, Detroit 48202 CEO 180.0 54,862 POS 12. (313) 871-2000; www.totalhealthcareonline.com

Vision Service Plan VSP M. Scott Mitchell and 93.5 120.5 NA NA NA NA NA Vision 2000 Town Center, Suite 725, Southfield Barbara Aikman 42.4 N/A 13. 48075 senior account (248) 350-2082; www.vsp.com executives

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. 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 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 residing 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). F Crain's estimate. G Midwest Health Plan Inc. will become a subsidiary of Health Alliance Plan of Michigan on Nov. 1, 2011. LIST RESEARCHED BY BRIANNA REILLY DBpageAD.qxp 9/15/2011 2:13 PM Page 1

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October 10, 2011 CRAIN’S DETROIT BUSINESS Page 35

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent. PEOPLE NONPROFITS ager; and Grant Thornley to business Ventures Corp., Detroit, from vice development director, water systems IN THE SPOTLIGHT Richard Austin to director of finance president and general manager, Im- division, from principal consultant, and administration, pact Network Inc., Detroit. The Detroit-based Girl Scouts of Catholic Archdio- 101 Water Consulting Group, Toronto, cese of Detroit, Detroit, from adjunct Southeastern Michigan has named Ontario. SUPPLIERS Susan McGraw to the moderator of the curia. its first COO. Pierre Sbabo to vice president, water SERVICES Pedro Ferro to vice president and pres- systems division, NSF International, McGraw, 55, ident, industrial, and executive offi- Ann Arbor, from managing director, Kimberly Hamelin to director, sales cer, Meritor Inc., Troy, from vice pres- had been Asia-Pacific operations, Bangkok, and client services, Professional Ben- ident, strategic business performance. owner and Thailand. Also, Rick Andrew to gener- efits Services Inc., Novi, from senior Also, Tim Bowes to vice president and principal of al manager, drinking water treatment account executive. president, commercial truck, from Susan McGraw units program, from operations man- Terry Arnold to president, Digagogo vice president, industrial. Ferro Bowes Consulting in Whitmore Lake and Los Angeles. McGraw She earned a Bachelor of Science in education from the University of Michigan. Girl Scouts of Southeastern Michigan was formed in 2008 by the merger of four Girl Scouts councils and serves girls in nine counties. EDUCATION Dave Molnar to senior director of ad- missions, The Art Institute of Michi- gan Inc., Novi, from director of admis- sions. FINANCE

Smith Lamb Collyer Smith to vice president and wholesale mortgage manag- er, Bank of Ann Arbor, Plymouth, from licensed in- Providing working capital surance agent, Aflac, Ann Arbor. Also, Margaret Lamb to vice pres- to help GHAFARI reshape skylines ident and con- Foxworth troller, from CFO, Marine Credit from the Midwest to the Middle East. Union, LaCrosse, Wis.; and Rhonda Foxworth to vice president and mar- keting department manager, from as- ™ sistant vice president and marketing Opportunity at every step. department manager. Mike Whiting to audit senior man- A comprehensive export financing solution helped GHAFARI Associates grow in key expanding markets. As a ager, Grant Thorn- ton LLP, South- leading architecture and engineering organization, GHAFARI operates worldwide. To help them, we coordinated field, from manager. a full breadth of global credit, trade services and foreign exchange solutions. Structuring a groundbreaking Andy McKeever to director of chan- Export-Import Bank solution to expand working capital availability and reduce risks helped them continue nel partner devel- opment, Automat- to build their business from Detroit to Abu Dhabi. ed Payment Whiting Highway Inc., dba Billhighway, Troy, from vice president Visit bankofamerica.com/businesssolutions1 of business development and market- ing, Core3 Solutions LLC, Troy. Also, Bob Anzivino to director of IT opera- tions and infrastructure, from senior technology consultant. MARKETING Jennifer McMaster-Reid to senior art director, J.R. Thompson Co., Farming- ton Hills, from senior art director, BBDO Detroit LLC, Detroit. The Marvin I. Danto Engineering Development Center, designed by Ghafari, is located on Wayne State University’s campus in Midtown Detroit. Robert Anderson to executive vice “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally president, managing director, Big by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates Fuel Communications LLC, Detroit, of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered from executive creative director, broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insuredy May Lose Value y Are Not Bank Rapp Collins Worldwide, Dallas, Guaranteed. ©2011 Bank of America Corporation ARM1N4G5 Texas. 20111010-NEWS--0036-NAT-CCI-CD_-- 10/7/2011 9:38 AM Page 1

Page 36 CRAIN’S DETROIT BUSINESS October 10, 2011

CALENDAR TUESDAY al human resources, General Motors CRAIN’S FINANCIAL LITERACY Co.; Meredith Miller, chief corporate OCT. 11 governance officer, UAW Retiree Med- ical Benefits Trust; Donald Parfet, Rebooting the Living City. Noon-6 p.m. WORKSHOP OCT. 27 IN DEARBORN lead director, Kelly Services; founder International Council of Shopping Crain’s Detroit Business and Centers, Michigan Alliance. With and general partner, Apjohn Group; University of Michigan-Dearborn Holly Van Deursen, independent direc- Megan Owens, executive director, present Financial Literacy-A Transportation Riders United; others. tor, angel investor, former group vice General Economic Outlook on Oct. president of BP; and Rebecca Blumen- Wayne State University, Detroit. $50 27 at Fairlane Center North-Quad E ICSC members, $65 nonmembers. stein, deputy managing editor, inter- on the UM-Dearborn campus Contact: (248) 758-2358; email: national editor, Wall Street Journal. [email protected]; website: Panelists include state Treasurer Westin Hotel, Southfield. $50 Inforum www.icsg.org. Andy Dillon; members, $65 nonmembers, $575 table James of 10. Contact: (877) 633-3500; website: The Michigan Economy and its Impact FitzGerald, www.inforummichigan.org. on the Nonprofit Sector. 8-10 a.m. Unit- president and COO, Munder ed Way for Southeastern Michigan, Detroit: Creating Our Own Future. 6-9 Michigan Nonprofit Association, oth- Capital p.m. Oct. 20. Bizdom U; others. ers. With Michael Finney, president and Management; With Josh Linkner, CEO and managing chief executive, Michigan Economic Ellen Hughes- partner, Detroit Venture Partners; Development Corp. Lawrence Techno- Cromwick, others. Detroit Marriott Renaissance logical University, Southfield. $25. Con- chief Center. $55. Contact: (313) 493-0001; tact: (248) 204-3095; email: nonprofitcen economist, email: stephanieljones@ [email protected]; website: www.ltu.edu. Ford Motor Co.; Dillon creatingourownfuture.com; website: and Lee www.creatingourownfuture.com. Redding, associate dean of THURSDAY academic affairs at UM-Dearborn. OCT. 13 The 7:30-10 a.m. breakfast Walsh Institute BusinessLive 2011. 8 a.m.-2 p.m. Oct. 20. With Paul Cham- meeting, part of the Sustainability bers, CEO, Core3 Solutions; Aaron Detroit Economic Club. 11:30 a.m.-1:30 Series, will explore sound financial Opalewski, founder and CEO, S&A p.m. With T. Boone Pickens, chairman decision-making and personal and CEO, BP Capital. Detroit Marriott Staffing Solutions; others. Walsh Col- accountability for business and lege, Troy. $50 Crain’s members, $98 at the Renaissance Center. $45 DEC personal finances. members, $55 guests of members, $75 all others. Contact: (248) 823-1392; nonmembers. Contact: (313) 963-8547; Advance tickets are $35 each, email: [email protected]; email: [email protected]; website: $30 for UM-Dearborn website: www.thewalshinstitute.com. www.econclub.org. students/faculty and groups of 10 or more. For discounted rates, call Crain’s Health Care Leadership Summit (313) 446-0300. Tickets will be and Health Care Heroes Awards. 7:30 FRIDAY $50 at the door. a.m.-2 p.m. Oct. 20. Crain’s Detroit Busi- OCT. 14 For more information, visit ness. With Ken Dallafior, senior vice www.crainsdetroit.com/events. president of group business and corpo- Automation Alley 2011 Annual Awards rate marketing, Blue Cross Blue Shield Gala. 6-11 p.m. With Detroit Mayor Dave chairman, Ogilvy & Mather World- of Michigan; Steve Hilfinger, director, Bing; Wayne County Executive Robert wide. Troy Marriott. $45 DEC mem- Michigan Department of Licensing and Ficano; Macomb County Executive bers, $55 guests of members, $75 non- Regulatory Affairs; Dianne Kiehl, exec- Mark Hackel; and Oakland County Ex- members. Contact: (313) 963-8547; utive director, Business Health Care ecutive L. Brooks Patterson. MGM email: [email protected]; website: Group, Franklin, Wis.; Scott McFar- Grand Detroit. $150 members, $200 non- www.econclub.org. land, former president, wellness, Cleve- members. Contact: (800) 427-5100; email: land Clinic; and Craig Reynolds, corpo- [email protected]; website: rate director of employee benefits, www.automationalley.com. Michigan Women’s Leadership Index Briggs & Stratton Corp., Wauwatosa, and the Future of Our State. 11:30 a.m.- Wis. MotorCity Casino, Detroit. $99 full 1:30 p.m. Oct. 17. Inforum. With Den- day, $50 Health Care Heroes luncheon COMING EVENTS nis Archer, independent corporate di- only, $110 on-site. Contact: (313) 446- Detroit Economic Club. 11:30 a.m.-1:30 rector, former mayor of Detroit; 0300; website: www.crainsdetroit. p.m. Oct. 17. With Shelly Lazarus, Cynthia Brinkley, vice president, glob- com/events.

BUSINESS DIARY CONTRACTS vices for the automotive and military Hills, announced the release of Sys- industries, opened an office at 33653 Track v6 incorporating support for Spalding DeDecker Associates Inc., Dequindre, Troy. Telephone: (248) 577- the PCoIP protocol. Website: Rochester Hills, a civil engineering, 5001. Website: www.mgaresearch. www.lakesidesoftware.com. landscape architecture and surveying com. firm, was selected as one of the new Primeway Inc., Madison Heights, a city engineers for the city of Auto-Lab Franchise Management maker of office furniture, has released Rochester Hills. Corp., dba Auto-Lab Complete Car Flex, a new series for its WorkSite Care Centers, Farmington Hills, line. Website: www.primewayinc. DTE Energy Co., Detroit, signed a opened a store at 1100 S. Rochester com. $485 million contract to purchase 120 Road, Rochester Hills, inside a Kmart megawatts from a wind farm in Tusco- store. la, Bay and Saginaw counties from NEW SERVICES Fitness Therapy Unlimited, Southfield, Tuscola Bay Wind LLC, a subsidiary of Kelly Services Inc., Troy, a provider of now offers mobile fitness therapy ser- NextEra Energy Resources, Juno outsourcing, consulting and staffing vices in Grand Rapids, Kalamazoo and Beach, Fla. services, released The Talent Project surrounding West Michigan communi- iPad mobile app. Website: kelly ALTe Powertrain Technologies, ties. Website: www.ftunlimited.com. Auburn Hills, announced a supply services.com/ipad. L And L Gold Associates Inc., dba agreement with A123 Systems Inc., The Huffmaster Cos., Troy, a provider Waltham, Mass., for complete lithium- American Jewelry & Loan, opened American Jewelry & Loan of Pontiac of security technologies and services, ion battery packs to be integrated into announced the launch of its newest di- ALTe’s range-extended hybrid elec- LLC, a pawn shop at 29 Telegraph Road, Pontiac. Telephone: (248) 409- vision, VirSec, which provides virtual tric powertrain systems. 5626. Website: www.pawndetroit.com. security, including remote video mon- Azure Dynamics Corp., Oak Park, a de- itoring, remote access management, Verizon Wireless opened a store at veloper and producer of hybrid elec- and hosted security services. Website: 29024 Gratiot Ave., Roseville. Tele- tric and electric components and pow- www.virsec.huffmaster.com. phone: (586) 771-5669. Website: ertrain systems for commercial www.verizonwireless.com. Harrington Communications LLC, vehicles, announced that its Norwe- Grosse Pointe Woods, a strategic com- gian Ford dealership, RohneSelmer, MOVES munications and design firm, an- has ordered an additional 100 Transit nounced a new website for Grosse Connect electric vans. Asset Property Management Inc. from Pointe Woods-based Russell Building Creative Services Co., Madison 2299 W. Maple Road to 2887 Dorchester Co., www.russellbuildingcompany. Heights, a marketing and promotions Road, Birmingham. Telephone: (248) com. 702-8675. firm, was contracted by Agro-Culture WADL-Channel 38, Mt. Clemens, has Liquid Fertilizers, St. Johns, an inter- UHY Advisors MI Inc., a public ac- launched Antenna TV on its 38.2 sub- national commercial agriculture busi- counting firm, moved from Southfield channel. Website: www.wadldetroit. ness supplier, to create a business-to- to 27725 Stansbury Blvd., Suite 200, com. business marketing video. Farmington Hills. Telephone: (248) Gaypon LLC, West Bloomfield Town- 355-1040. Website: www.uhy-us.com. ship, an online source for coupons and EXPANSIONS discounts provided by gay-friendly MGA Research Corp., a provider of NEW PRODUCTS businesses, announced the launch of technical equipment and testing ser- Lakeside Software Inc., Bloomfield its website www.dailygaypon.com. 20111010-NEWS--0037-NAT-CCI-CD_-- 10/7/2011 5:37 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 37

BRIEFLY LA Fitness site sold in $12M deal will be a growing priority for him Panelists will discuss and growth. For example, pan- Ⅲ Yogendra Rahangdale, presi- and his apartment development elists will discuss how reducing dent and CEO, Whitehall Industries to California investment group firm. job creation in health care health care costs at construction Ⅲ James Safran, president, A group of Southern California The company took an owner- companies, municipalities and Jones Lang LaSalle, Beaumont Ser- The Engineering Society of De- other organizations can help. investors has purchased the LA ship stake in the 29-story apart- vices Co. troit, Engineering Society of Detroit Panelists include: Fitness in Royal Oak for $12.4 mil- ment complex at 1431 Washington The green zone seeks for the Institute and the Skyline Club will Ⅲ Keith Cooley, CEO, Principia lion. Blvd. and changed the name from state to foster long-term pre- host a panel to discuss Michi- LLC The deal is considered a posi- Washington Square Apartments dictability in areas like labor, pub- gan’s economic sustainability, Ⅲ Robert Ficano, Wayne County tive for the local market as it rep- to Detroit City Apartments. The particularly in health care deliv- executive, Wayne County lic debt and policy. resents interest from out-of-state property is now in the midst of a ery. Ⅲ Rick Hall, Healthcare Studio The event, called “State of investors. renovation. ESDI has created the Michigan director, Harley Ellis Devereaux Michigan: Job Eliminator or Job Selling the building was Livo- Holtzman has been involved Creator?” will be held at the Skyline with high profile Detroit develop- Green Enterprise Zone to address Ⅲ Anthony Lott, vice president nia-based Schostak Bros. & Co., Club in Southfield. ments such as Riverfront Apart- issues related to investment and of investments, UBS Financial Ser- the company which developed the Tickets are $25. Registration and ments, Elmwood Park Plaza, Vir- jobs in the state. vices building in 2009. The property is information can be found at ginia Park subdivision and the Discussion at the Oct. 18 event Ⅲ Thomas Mittelbrun, adminis- at 25352 Woodward Ave. www.esd.org. redevelopment of the historic will relate to how health care trator, Electrical Workers Insur- Encino, Calif-.based Marcus & spending can affect job creation ance Fund — Michelle Muñoz Millichap represented the buyers Fyfe Building apartments. The and West Bloomfield-based Mid- company has devoted resources America Real Estate-Michigan rep- to the suburbs and to other cities resented Schostak. in the United States since leaving — Daniel Duggan Detroit. It now owns and operates 40,000 apartment units. REAL ESTATE “And now I see it as a time for Arts, Beats & Eats raises companies like Village Green to over $260,000 for local groups jump back in,” he said. “And the APARTMENT BUILDINGS AUCTIONS inspiring part is that it’s a busi- A four-day festival has brought ness reason. An economic reason. Apartment Mgmt Specialists     in more than $260,000 for local It’s time to invest in Detroit as a We deliver results for Owners $$  % & ' charities, businesses and the city business decision.” of Royal Oak. — Daniel Duggan www.silversidemanagement.com Ford Arts, Beats & Eats an- nounced last week that $262,185 248-246-7203 was raised from the festival in downtown Royal Oak for more Venture Michigan Fund II invests than 60 organizations. More than AUCTIONS $96,000 was shared between Royal in fund of Ann Arbor VC firm Oak community organizations The Venture Michigan Fund II is WATERFRONT and nonprofits. expected to announce today that  , 0 + *  1  About 335,000 people attended it has made its third investment,             the Citizens Bank-sponsored event. an undisclosed amount, in the $41 AUCTION        !  " #"  Arts, Beats & Eats is estimated million Plymouth Venture Partners to have brought in more than $29 II LP, the second venture capital                     million to the area, based on the                    fund of Ann Arbor-based Plymouth       !     "         Michigan tourism spending and Management Co.      #  a %             economic impact model developed The VMF II is a $120 million  &'() *+% ,   - .%& /  - 0 /    / 1    for Travel Michigan and the tourism fund managed by Credit Suisse’s             2  a  b      X industry within the state.   -  a        /        New York-based Customized Fund    a      ! 5 X        Money raised through the festi- Investment Group. It targets invest- 4292 TERRA RIDGE DRIVE     +     !,  /  6 b    val was divided among organiza-          a             ments in venture capital firms MILFORD, MICHIGAN 48381 tions including the American Red that do early stage investing. 7    /            Cross, Boys & Girls Club of South SAT, OCTOBER 15, 2011 at 11 am    8   9              Mark Horne, managing partner  %      : Oakland County, Volunteers of Amer- of PVP II, said the fund will invest SUGGESTED OPENING BID ica and the South Oakland Shelter, in about 20 companies in the Mid- $1,000,000. &   ( (  ( * + ,,- among others. (*  ( !  . /"/ /"" 232 "24 west and has closed on three in- All sports private lake, 5 year old estate — Ellen Mitchell vestments so far. home, first me offered. Panoramic views Kelly Williams, who manages and peaceful surroundings, 1.5+/- acre COMMERCIAL PROPERTIES DEVELOPMENT PROPERTY the Customized Fund Investment Village Green jumps back into cul-de-sac lot, 2 story brick and stone, 5 Group, was recently named one of Prime Commercial Property -- ready Garland Golf Resort lot for sale; bedrooms, 6.5 baths, 7,508+/- sq. . plus located on Swampfire golf course hole #6 Detroit apartment market the top 25 most powerful women for leasing. 7,400 sq. ft. includes free parking. Excellent location in with views of pond and green. 300 feet Village Green CEO Jonathan in finance by American Banker. 4,100+/- sq. . lower level with walkout, downtown Plymouth. of frontage on the course, with 3 acres of Holtzman said last week Detroit — Tom Henderson 4+ car garage. Close to Huron Valley and land. This is a $50,000 lot for the sale Providence Park Hospitals. price of $19,000. Call 517-548-5390 - Julie or View More Online at 248-554-6809 - Harry Cohn Lifetime golf membership included in sale. Call Mark at 734-476-9847 www.pamelaroseaucon.com Need A Brochure? INDUSTRIAL PROPERTY Call 1-877-462-7673 ©2011 AVAILABLE NOW Pamela Rose, Broker Auconeer AARE CAI The Crain’s reader: Michael Murray, Auconeer CAI GRI 26.5% influence the Taylor/Romulus Area — 4,000 to 80,000 sq. ft. PAMELA K. ROSE AUCTION CO LLC purchase of office/industrial Ideal for logistics company, and commercial space. manufacturing or warehousing. Help them find you by Yvon Rea 734-946-8730 CAREER advertising in Crain’s Real Estate section. Call Us For Personalized MOVES 313.446.6068 • FAX: 313.446.1757 Service: (313) 446-6068 E-Mail: [email protected] CLOSING TIMES: Monday 3 p.m., GENERAL one week prior to publication date. Please call us for holiday closing times. Property Manager FAX: (313) 446-1757 1300 Lafayette East Cooperative E-MAIL: [email protected] INTERNET: Luxury, high-rise cooperative seeking www.crainsdetroit.com/section/classifieds experienced property manager. Responsibilities include the day-to-day Confidential Reply Boxes Available operations of onsite office and staff. Candidate must have at least two years PAYMENT: All classified ads must be experience managing a high-rise, prepaid. Checks, money order or multi-family community. Must also have Crain’s credit approval accepted. superior writing skills. Experience with Credit cards accepted. Yardi or similar property management See software a plus. 4-year college degree required. Please email resume to Crainsdetroit.com/Section/Classifieds [email protected] for more classified advertisements 20111010-NEWS--0038-NAT-CCI-CD_-- 10/7/2011 5:56 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS October 10, 2011 Banks: Detroit uses its $1 billion clout to leverage more lending ■ From Page 3 mum return for the amount of dol- change for opening new branches lars we’re investing in these never came up in talks with De- banks.” Kilpatrick says banking switch made enemies troit officials. Bing said his team is establish- Bank on Detroit, a nonprofit coali- ing a database to track small-busi- Using the city’s banking busi- charges. troit could get a better deal at a tion, estimates that the city has ness and mortgage lending in the ness to spur financial activity isn’t But in 2007, Kilpatrick, like different bank. Kilpatrick moved some 50,000 households in the city city. a new strategy. Former Mayors Bing, was trying to streamline the about $90 million from Comerica that don’t use traditional banks, “I can’t tell you I’m satisfied Coleman Young and Dennis city’s banking to First Independence, still the only and an analysis by Rob Linn, a geo- with any of them just yet until I Archer both used the tactic, said business, the bank based in Detroit. graphic information systems spe- collect all of this data, until I ana- Freman Hendrix, a member of the former mayor Kilpatrick says that move cialist at Data Driven Detroit, found lyze that,” he said. “That’s going to board of directors for Greektown Su- wrote in Sur- chafed Comerica board members, that the city is dotted with payday be somewhere in the next 30 to 60 perholdings Inc., the parent compa- rendered: The including then-DTE Energy Co. lenders. days, and we’re going to be meet- ny of Greektown Casino-Hotel, who Rise, Fall and CEO Tony Earley, who was on the Using the city’s business ing with all of those banks.” served as Archer’s deputy mayor. Revelation of Comerica Inc. board from 2000 to as leverage makes good sense, But it’s not all about cutting. And in his recently published Kwame Kil- 2009, and was a director of Comer- said Freman Hendrix, a member Bing takes some credit for a flur- memoir, former Mayor Kwame patrick. ica Bank for two years prior. Ear- of the board of directors for ry of recent bank activity in De- Kilpatrick claims his decision to As of now, ley, Kilpatrick writes, “drafted” Greektown Superholdings Inc., the troit — Flagstar Bank is opening move some city funds to a small, Comerica Bank current Detroit Mayor Dave Bing parent company of Greektown Casi- two branches in Detroit, Bank of Kilpatrick black-owned bank played a role in holds the city’s — then a member of DTE’s execu- no Hotel. Hendrix served as deputy America has opened two mortgage his downfall. largest deposits. That year, the tive board — to run in 2009. mayor to former Mayor Dennis servicing centers in the city, J.P. Kilpatrick resigned from office bank moved its headquarters to “Their move on me paid off, but Archer. Morgan Chase Foundation is offering in 2008 as part of a plea deal in a Texas, and Kilpatrick wrote that not for the city,” Kilpatrick “The idea of using banking ca- down payment assistance to some criminal perjury case and is fac- he started shopping the city’s wrote. pacity, not only does it make city employees, Hantz Bank is eye- ing a host of federal corruption business around, convinced De- — Nancy Kaffer sense, but from a leadership stand- ing a Detroit location, and Hunt- point, it’s the right thing to do,” ington Bank announced last week Hendrix said. that it is opening a branch in the with the communities where “We approached them,” said and lofts along Woodward and But the success of such a pro- Compuware Building on Oct. 31 — they’re located,” he said. “Large Tierney, speaking of city officials. would welcome the opportunity to gram — whether the financial in- and a branch on West Outer Drive banks, and I’m not negative to- “We want to do business in the city fund new construction. stitutions make a lasting invest- in December. ward them, in a lot of cases you and be part of the city’s revitaliza- David Lamb, president of Hantz ment or simply offer lip service — Bank of America and Hunting- get referred to their home offices. tion. I told them we can make our Bank, currently based in Davison depends on the mayor’s office, he ton also will support Bing’s Pro- Detroit has been looked upon branches profitable quicker if the but about to move its headquarters said. ject 14, an effort aimed at getting maybe as a city city helps us by giving us some de- to Southfield, said he is in the final “At the end of the day, it’s about police officers to move into the you don’t have posits, but we’ll be profitable ei- stages of site selection and has yet the mayor’s will and discipline city. to pay a lot of at- ther way. to meet with city officials. and focus to stay on a policy like “I am in direct conversations tention to.” “We’re going to do the branches He said opening a branch is not that, and having his administra- and meetings with leaders of those Michael Tier- with or without deposits from the contingent on whether or not the tion do follow-through, with the fi- banks … as well as others,” Bing ney, president of city.” city gives it some of its banking nance department, and the CFO said. Michigan opera- Tierney said what clinched his business and is unrelated to Hantz having some checks and balance to The mayor said the bulk of the tions for and Flagstar Chairman and CEO Farms, which, like the bank, is a ensure that something is occur- city’s banking business is with Flagstar, said Joseph Campanelli’s decision to subsidiary of the Southfield-based Comerica, but he said there’s op- the bank cur- open at least two branches in the Hantz Group Inc. ring … there’s got to be coordina- portunity for smaller banks. rently has none city were meetings with Detroit Med- tion within the city of Detroit,” he Tierney Lamb said an expansion into “Some of the more regional of the city’s ical Center officials and Sue Mosey, the city is being driven by com- said. banks, the smaller banks, as they banking business and hopes to get president of Midtown Detroit Inc. mercial lending opportunities — “There has to be some thought come back into the city, I think some after it opens its branches, He said they were impressed by “there’s a market for small-busi- so the left hand knows what the they’re much better connected but that there was no quid pro quo. the waiting lists for apartments ness lending there” — and the right hand is doing as far as the ability to offer other Hantz Group business relationship is con- services, such as estate planning cerned. And there has to be a traf- and insurance. fic cop, probably an executive as- Mike Fezzey, regional president sistant to the mayor, who has authority on the 11th floor (where  for Huntington, said one driver for   the bank’s decision to open two the mayor’s office is located) to be new branches in the city was the able to reach down to the depart- potential for small-business lend- ment director level to make sure      ing. one department is being coordinat- “We’re the state’s No. 1 small- ed with the other, so there’s some- business lender. We have an ap- body on the other end receiving petite for it, and we’re very good at the givebacks.” it,” he said. Nancy Kaffer: (313) 446-0412, “This has been in the works for [email protected]. Twitter:  some time. We’re excited about the @nancykaffer energy in the city,” said Fezzey, Tom Henderson: (313) 446-0337, who said the topic of getting de- [email protected]. Twitter:     posit business from the city in ex- @tomhenderson2

   T     Grant could cut Amtrak’s Detroit-Chicago travel time Rail travel time between Chica- The grant will create 800 jobs, go and Detroit should improve according to the U.S. Transporta-       next year thanks to a federal tion Department. grant that will allow trains to run Construction is slated to start in     faster. the second quarter of 2012. The Michigan Department of Also Wednesday, the state said          Transportation last week was it has agreed to buy the tracks be- awarded a $196.5 million grant tween the two cities from Norfolk         from the U.S. Department of Trans- Southern Railway for $140 mil- portation to make track and signal lion.         improvements to 135 miles of According to the Michigan De- track between Dearborn and Kala- partment of Transportation, its          mazoo. acquisition of the rail line, com- The upgrades will allow the ma- bined with Amtrak’s ownership of jority of Amtrak trains operating the segment from Porter, Ind., to on the Wolverine and Blue Water Kalamazoo, puts about 80 percent routes to reach speeds of 110 mph of the Detroit-Chicago track un-      ! and cut travel time between Chica- der “passenger-friendly owner- go and Detroit by 30 minutes. The ship.” trip currently takes five hours and — Crain’s Chicago Business, 30 minutes. The Associated Press 20111010-NEWS--0039-NAT-CCI-CD_-- 10/7/2011 6:01 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 39 Brazil: $725M Hayes Lemmerz deal comes as surprise to some ■ From Page 1 third-largest auto market by 2015, annually when it starts operating Moraw declined to identify the Passenger vehicle sales make up one saw this coming.” overtaking Japan. China and the in the first half of 2014. lenders. 25 percent to 40 percent of its sales, The deal is expected to close in U.S. will continue to hold the first Chinese automaker Chery Auto- Late last year, reports began cir- said Richard Hilgert, an automo- the second half of 2012 upon regu- and second slots, respectively, ac- mobile Co. Ltd. also said Friday it culating that Hayes Lemmerz was tive equity analyst at Chicago- latory and board approval, Iochpe- cording to a report last month by plans to invest $675 million, to in discussions with financial ad- based Morningstar Inc. Maxion said in a release. Roland Berger Strategy Consultants. build a plant in São Paolo. visers regarding strategic options “Acquiring Hayes will more Iochpe-Maxion did not return “Brazil has been strong, no Aleks Miziolek, director of Dyke- including a sale of the company. than double Iochpe’s revenue on calls for comment. question, and the economy is ma Gossett PLLC’s automotive in- Moraw confirmed that its private the wheel side of the business,” he Dustin Walsh: (313) 446-6042, largely fixed from what it used to dustry group in Detroit, said the investors are looking to cash in said. “It’s like the cookie swallow- [email protected]. Twitter: be. This still came as a surprise,” Hayes Lemmerz acquisition is just their investment. ing the elephant. That’s why no @dustinpwalsh said Fred Hubacker, executive the first of many to come as Brazil’s The company, through its in- managing director at Birming- auto industry contin- vestors, was able ham-based Conway Mackenzie Inc. ues to grow. to cut debt by “We’ve seen more European and “It’s just part of the It’s just part of $720 million, to The verdict is in. Chinese investors, and I would natural progression “ $240 million, and have expected one of them to make as Brazilian the natural reduce health care a deal like this.” companies and pension costs Jeffrey S. Grasl An unidentified source con- see the val- progression for retirees in the firmed that a China-based supplier ue of the in- U.S. to $75 million was also bidding on privately held dustry,” she as from more than Rising Star Hayes Lemmerz. Company Trea- said. “We’re $250 million. surer Eric Moraw would not com- starting to Brazilian The Hayes Lem- ment on the bidding. see foreign merz acquisition Congratulations to our Chinese wheel makers became purchasers companies will double the colleague, Jeffrey S. Grasl, interested in U.S. plants after the very active size of Iochpe-Max- selected as a 2011 Rising Star U.S. Department of Commerce set pre- in the (U.S.) see the value ion’s footprint, by Super Lawyers. liminary duties this year on im- market, and the in- adding 17 plants in ports of Chinese steel wire and steel dustry in Brazil, of the industry. 12 countries with wheels, citing unfair subsidies by quite frankly, is on ” the capacity for the Chinese government, according the way up, and we’ll Aleks Miziolek, 63.5 million to a Market Watch report. see more deals as Dykema Gossett PLLC wheels. It will give The strength of the Brazilian cur- they become a larger the supplier a mas- rency — the real — against the dol- part of the global economy.” sive market share in the passenger lar could have played a role in the The 101-year-old Hayes Lem- vehicle market. Hayes Lemmerz Hayes Lemmerz deal. The real merz — which got its start making customers include Daimler AG, Ford McDonald Hopkins PLC grew nearly 6 percent against the wooden wheels for Henry Ford’s Motor Co., General Motors Co., 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 dollar last week — the largest gain Model T — became an easy target Chrysler Group LLC, BMW and Honda Carl J. Grassi Stephen M. Gross since November 2008, Bloomberg after going through Chapter 11 Motor Co. Ltd. President Detroit Managing Member reported — after a report showed bankruptcy twice in just seven Iochpe-Maxion’s wheels and Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach U.S. employers added more jobs years, in 2003 and 2009. Hayes went frames division produces wheels www.mcdonaldhopkins.com than forecast in September, affect- on the market after it emerged for buses, commercial trucks and ing Brazilian interest rates. from bankruptcy in December 2009 agriculture machinery. It also sup- Brazil is already South Ameri- after more than seven months un- plies wheels for passenger cars ca’s largest economy, showing a 7.5 der court protection. through its Maxion-Fumagalli unit, percent gross domestic product in Upon exiting bankruptcy, the which has a sales office in Troy. 2010, led by a strong manufactur- company’s equity was divided Iochpe-Maxion employs about ing sector, according to a Goldman among secured lenders, bondhold- 6,500 and generated revenue of $1.3 Sachs Group analysis this month. ers and the Pension Benefit Guaranty billion in 2010. Hayes Lemmerz Your Bank’s Nissan Motor Co. Ltd. announced Corp., the government agency that employs 6,100 and generated global Friday it would invest $1.5 billion takes over failed pension plans. revenue of $1.5 billion in 2010, up to build a plant in Rio de Janeiro It’s unclear which secured from $1.3 billion in 2009, according that will produce 200,000 vehicles lenders still own Hayes Lemmerz. to Automotive News. Not Lending? Biergarten: Founders toast volunteers ■ From Page 3 $7,000 to $10,000 in startup costs. two weeks of the Tashmoo Bier- to the fountain in Campus Martius But with the help of some well- garten but admitted weather is Park. connected friends, they rounded key. “On a nice up volunteers to help with every- Wagner and Vier said they cre- day, 90 percent thing from building 14 tables, 28 ated the biergarten as a 501(c)3 of people will sit benches and a large perimeter nonprofit to quicken the approval outside before fence (90 by 65 feet) to publicizing process but also because they they sit inside,” the venue. were uncertain whether the bier- Lambrecht said. “There were a lot of people that garten could succeed as a business “People just said this could not be done, that model. want to be out- it’s too much too quickly and will “The main reason was to see if it side, relax and cost a lot of money,” Vier said. “To was a viable project and/or long- embrace the ours are be honest, we knew we could make term business opportunity that nice weather as . Lambrecht this happen.” the community wanted to have,” long as they Call for a free consultation. Still, Wagner said he was sur- Wagner said. “It’s never been can, especially being in a park en- Loan amounts: $1,000,000.00 and above. prised at how many people with done before, and we wanted to use vironment.”

various skills asked to volunteer. phase one as a learning process.” If the Tashmoo Biergarten s Investment Real Estate s Equipment “I am just overwhelmed at how The proceeds from the bier- proves to be a success, Wagner s Owner Occupied Real Estate s Turnaround Consulting people came forward and want to garten will go to The Villages Com- said, he would like to open three- s Lines of Credit s Loan Modifications be part of it,” Wagner said. “They munity Development Corp., which season, permanent, European- s Accounts Receivable s Bank Workouts want to see it succeed. It’s truly supports economic development, style biergartens over the next something people have taken own- community advocacy, and design couple of years in Detroit. ership of.” and planning efforts in the Vil- “As to how difficult has this pro- Wagner said they expected an lages. ject has been? My answer is: It is average turnout of about 300 per John “Jay” Lambrecht, owner of not difficult when it is something Sunday but were surprised to see Bookies Bar and Grille and The Foun- you love doing.” more than 1,000 people drinking tain Bistro, both in Detroit, said of- The Tashmoo Biergarten is open the $4 and $6 Michigan craft beers fering the chance to drink outside noon-9 p.m. Sundays. Its last day of 800.509.3552 on its first day. The second week is popular — in fact it has been a operation is Oct. 23. www.eclipsecapitalgroup.com drew 700 guests. boost for his businesses. Fountain Nathan Skid: (313) 446-1654, 2207 Orchard Lake Road, Sylvan Lake, MI 48320 Vier said she expects even larg- Bistro is a French restaurant with [email protected]. Twitter: “Since 1997” er crowds to show up for the last 80 indoor and 80 outdoor seats next @nateskid 20111010-NEWS--0040-NAT-CCI-CD_-- 10/7/2011 5:18 PM Page 1

Page 40 CRAIN’S DETROIT BUSINESS October 10, 2011 Stars: Huge endorsement deals possible for Stafford, Verlander ■ From Page 1 troit Lions to their first 4-0 start cally, hold on until after the season. day was the “most dramatic” play- since 1980, and the third-year quar- “We haven’t flat out turned er mike-up and footage he’d wit- terback is among the National Foot- Longtime owners’ patience pays off them down. We’re going to wait nessed in 30 years. ball League’s leaders in nearly and see,” Stahlberger said. “We’ll That sort of performance is the every passing statistic heading Just three times since William probably expand the roster of building block of a great career, into a Monday Night Football Clay Ford Sr. bought the team in things we’ll support.” one that entices corporate Ameri- showdown with the Chicago Bears 1964 have the Detroit Lions begun In the offseason, Stafford and ca’s endorsement dollars and ele- tonight at Ford Field. a season 4-0. IMG are going to work on his char- vates an athlete into a megastar. National sports media have tak- There was a 5-0 start in 1970 itable efforts, including the possi- So is lifting a moribund fran- en notice of the Detroit stars, and and a 4-0 beginning in 1980. And bility of establishing a foundation. chise into a contender. at least one thinks they have seri- this season. “He wants to do it and have “The Lions are such a feel-good ous endorsement potential. The Lions are 4-0 heading into some meaning behind it,” story. You want to see them come “If (Verlander is) representing tonight’s Monday Night Football Stahlberger said. up, they’ve been down so long,” my company, I’d feel really good game against the rival Chicago Stafford made SI.com’s “Fortu- Galatioto said. “They’ve made Ford Ilitch about that guy not screwing up,” Bears at sold-out Ford Field. nate 50” list in 2010 that tracks the tremendous strides.” franchise into a powerhouse and said ESPN announcer and Ann Ar- Across Brush Street, Detroit top compensated pro athletes in Bill Shea: (313) 446-1626, feel-good story in the first quar- bor native Mike Tirico. “In a sport Tigers owner Mike Ilitch is watch- terms of contracts and endorse- [email protected]. Twitter: ter of the 2011 NFL season. desperate for national stars, ing his team play this week for ments. Stafford was 11th on the @bill_shea19 Ilitch is 82. He bought the there’s a guy I’d glom onto pretty the American League pennant list, thanks to a $27 million pay- Tigers for $82 million from Domi- quickly if I’m looking for a base- for only the second time since he check that season and another no’s Pizza Inc. founder Tom Mon- STATEMENT REQUIRED BY THE ACT OF ball star to represent my product.” bought the team in 1992. $750,000 from endorsements. AUGUST 24, 1912, AS AMENDED BY THE aghan in the final weeks of the He’s also been impressed with Both men are well into their He wasn’t on the list for 2011, ACTS OF MARCH 3, 1933, JULY 2, 1946 1992 season. Adjusted for infla- Stafford and his on- and off-field golden years as they enjoy their however. He had deals with Sprint AND JUNE 11, 1960 (74 STAT. 208) SHOW- tion, Ilitch’s purchase price ING THE OWNERSHIP, MANAGEMENT potential. teams’ concurrent success in and men’s hair care product mak- would be the equivalent of about AND CIRCULATION OF: “He has all the qualities to be the 2011. er Axe Hair, endorsements that are Crain’s Detroit Business, Publication No. $130 million in 2011 dollars. face of the franchise, a decade-long Ford is 86. He bought the Lions now idle. 743370, published weekly except 3rd week of Forbes estimates the Tigers value quarterback,” said Tirico, who’s for $4.5 million in January 1964 January, no issue the 3rd week of December and as a team at $385 million. special issue 4th week of August at Detroit, doing the play-by-play for the Li- after a power struggle between The team made the playoffs Michigan, for September 30, 2011. ons-Bears game on Monday. “All former owners D. Lyle Fife, own- Work to do 7. Complete mailing address of known office of just one other time under Ilitch, the ingredients are there. He’s not er of an electrical products firm, Industry insiders say Stafford publication: Crain Communications Inc.,1155 when the team lost the 2006 too far away (from getting corpo- and Goebel Brewing Co. President still has work to do before reaching Gratiot Avenue, Detroit, Wayne County, MI World Series. 48207-2997. rate interest). You’ll start to see lo- Edwin Anderson. Adjusted for Verlander’s level of fame — and The Lions have 12 games left, 8. Complete mailing address of the headquarters cal endorsements building soon.” inflation, Ford’s investment ability to command endorsements. or general business office of the publisher: Crain starting with tonight’s contest, The players were unavailable would be $31.2 million in 2010 dol- “Verlander has been on the na- Communications, Inc., 1155 Gratiot Avenue, but the odds heavily favor them for one-on-one interviews last lars, and Forbes values the team tional stage a lot longer. He’s on a Detroit, Wayne County, MI 48207-2997. making the playoffs: Since 1990, 50 9. Full names and complete mailing address of week because of their game sched- at $844 million. contender. He’s been consistently of the 61 teams to win their first Publisher, Editor, and Managing Editor: ules, but their agents and sports Under Ford’s ownership, the good for a long period of time,” Publisher: Mary Kramer, Crain Communica- four games have gone on to the marketing experts weighed in on Lions have made the playoffs just said Sal Galatioto, president of tions Inc.,1155 Gratiot Avenue, Detroit, MI postseason, according to the NFL. their value and potential. five times, and won only a single New York City-based Galatioto 48207-2997. The last time Detroit’s football Editor: Cindy Goodaker, Crain Communica- playoff game — 38-6 over the Dal- Sports Partners, which brokers and baseball teams made the tions Inc.,1155 Gratiot Avenue, Detroit, MI las Cowboys on Jan. 5, 1992. sales of pro sports franchises. “His 48207-2997. postseason in the same season? It The MVP After reaching a historic 0-16 name recognition among anyone Managing Editor: Jennette Smith, Crain Com- was 1935: The Lions won the NFL Verlander is 27 and has been nadir in 2008, a new coaching that knows anything about base- munications Inc., 1155 Gratiot Avenue, Detroit, championship, and the Tigers MI 48207-2997. crafting a résumé as one of base- staff, reorganized front office and ball is extremely high.” won the World Series. 10. Owner (Do not leave blank. If the publica- ball’s best pitchers since being several wise player acquisitions Stafford is starting a long road. tion is owned by a corporation, give the name — Bill Shea drafted by Detroit in 2004. He have transformed the moribund “He’s been hurt a lot. It’s going to and address of the corporation immediately fol- reached elite status this season, take a lot more. Stafford and his lowed by the names and addresses of all stock from just a few thousand dollars for holders owning or holding 1 percent or more of and one of the expected payoffs is teammates still have a lot to prove. the total amount of stock. If not owned by a cor- lucrative endorsement deals local- TALE OF THE TAPE a local appearance to several mil- If the Lions lose their next three poration give the names and addresses of the in- ly and nationally. lion annually for global contracts. games, he could fade pretty fast,” dividual owners. If owned by a partnership or “Verlander’s national profile Matthew Stafford, 23 Galatioto said. “He might get there. other unincorporated firm, give its name and ad- dress as well as those of each individual owner. and endorsement potential obvi- Size: 6-3, 232 pounds The prospect He could be where Verlander is.” If the publication is published by a nonprofit or- ously has a great chance of in- 2011 performance: 100-of-161 Slowing Stafford’s progress has ganization, give its name and address.) creasing should he win the Ameri- passing (62.1 percent) for 1,217 Corporations are seeking out been shoulder and knee injuries Crain Communications Inc., 1155 Gratiot Av- can League MVP and/or have a yards, 11 touchdowns, 3 Stafford for endorsements or ap- that sidelined him for 19 games his enue Detroit, MI 48207-2997. K.E. Crain, 1155 Gratiot Avenue Detroit, MI heroic-type playoff, to go along interceptions, 100.3 quarterback pearances more in the past four first two seasons. Staying healthy is 48207-2997. R.E. Crain, 711 Third Avenue with a Cy Young Award,” said Eric rating (through 4 games). weeks than any time since he was critical to staying in the spotlight. New York, NY 10017-4036. Wright, vice president of research Contract: Six years through the top draft choice in 2009, said “So many players don’t get there 11. Known bondholders, mortgagees, and other and product development at Ann 2014 for $78 million (if all his marketing agent. because they get banged up,” Gala- security holders owning or holding 1 percent or more of total amount of bonds, mortgages or Arbor-based Joyce Julius & Associ- incentives are met, with only $17 “The Lions are on the cover of tioto said. “It’s a tough position to million fully guaranteed). Base other securities: ates Inc., which specializes in mea- Sports Illustrated. Their visibility play.” None. salary of $525,000 in 2011, plus 15. Average number of copies of each issue of suring the impact of sponsorships $8.475 million bonus. has increased dramatically since Stafford also shares the lime- across all forms of media. the start of the season, and that in- light with two teammates: wide re- this publication sold or distributed through the Fact: First overall draft pick out mails or otherwise during the 12 months preced- “I think looking back at San of the University of Georgia by the cludes Matthew,” Ira Stahlberger ceiver Calvin Johnson, whose ing the date shown above was: Total number of Francisco’s Brian Wilson and what Lions in April 2009. said. “There’s definitely been an eight touchdown catches leads the copies: 27,751; Paid distribution outside the he was able to do following his play- increase in requests for his time.” NFL, and defensive tackle mails including sales through dealers, carriers, off performance last year might be Justin Verlander, 27 Stahlberger handles endorse- Ndamukong Suh, who has a repu- street vendors and counter sales and other paid distribution outside USPS: 404; Mailed outside a good indication of what Verlan- Size: 6-5, 225 pounds ments, paid appearances and all tation as one of the league’s most county paid subscriptions stated on PS Form der could achieve, at least in the 2011 performance: 24-5, 2.40 other off-field business for Stafford, dominant quarterback terrorizers. 3541: 24,580; Paid distribtuion by other classes short term following some notewor- ERA and he said the quarterback’s plan “When I think about the Lions, I of mail through the USPS: 0; total paid distribu- thy successes. His hook would has been to concentrate on football think of Ndamukong Suh before I tion: 24,984; Free or nominal rate outside-coun- Contract: Five years, $80 million ty copies included on PS Form 3541: 1,026; have to be pitching dominance, and signed in December 2010. Base and deal with business interests af- think of Stafford,” Galatioto said. Free or nominal rate distribution outside the not look or personality.” salary of $12.75 million in 2011. ter establishing himself. “When I think of the Tigers, the mail: 313; Free or nominal rate copies mailed at Wilson, the dominating closer Fact: Second overall pick, out of “He made clear when hiring us first guy I think of is Verlander.” other clases through the USPS: 0; Total free or for the Giants, became a celebrity Old Dominion University, by the that it’s football first,” said nominal rate distribution: 1,339; total distribu- tion: 26,323; Copies not distributed: 1,428; personality and picked up endorse- Tigers in the 2004 baseball draft. Stahlberger, who is senior vice Total: 27,751, Percent Paid: 94.91%. Actual ment deals after San Francisco won president of talent marketing in Game-changing moments number of single issue published nearest to fil- the World Series in 2010, including to get more involved with helping the Chicago office of Cleveland- Stafford got a leg up on a bigger ing date (Sept. 30, 2011); Total number of new commercials for Taco Bell. veterans in the Detroit metro area. based IMG, which has 60 offices in presence when he threw the last-sec- copies: 26,055; Paid distribution outside the mails including sales through dealers, carriers, Verlander’s agents at Chicago- He’s going to get more involved 30 countries and is one of the huge ond, game-winning touchdown after street vendors, counter sales and other paid dis- based SFX Baseball Group have new with social media in the offseason.” talent and marketing agencies for separating his shoulder in a game in tribution outside USPS: 370; Mailed outside- deals in the works and expect to Feinstein declined to say what sports, entertainment and media. which he wore a microphone for NFL county paid subscriptions stated on PS Form announce one in coming weeks. sort of endorsements Verlander is Right now, Stafford has deals Films in November 2009. 3541: 26,055; Paid distribution by other clsses of mail through the USPS: 0; Total paid distrib- They also intend to work on lifting being offered. only with Nike and Blue Cross Blue Team doctors urged him to stay ution: 24,469; free or nominal rate outside-coun- his profile in the offseason. The pitcher was expected to take Shield of Michigan. on the sidelines, but Stafford in- ty copies included on PS Form 3541: 199; Free “One thing we are going to ex- the mound for the Tigers this past “He’s been very measured in sisted on playing. The touchdown or nominal rate copies mailed at other classes plore for him is the opportunity to weekend at Texas in the American what he’s done. It’s been very lim- was his fifth that day, and the through the USPS: 0; Free or nominal rate dis- tribution outside the mail: 129; Total free or play in pro-am golf tournaments League Championship Series, and ited. This has been a conscious de- footage made NFL highlight shows nominal rate distribution: 328; Total distribu- this offseason. He’s almost a may once more this week. cision.” and newscasts that week. tion: 24,797; Copies not distributed: 1,258; scratch handicap,” said Jeff Fein- Reaching the World Series could That doesn’t mean Stafford and Steve Sabol, NFL Films presi- Total: 26,055; Percent Paid: 98.68%. stein, director of marketing at SFX. help him reach the rarified air of IMG are rejecting overtures from dent and co-founder, said 17. I certify that all information on this form is true and correct: Keith E. Crain. “On the charity front, he’s hoping elite endorsements. Deals can range brands. They’re just saying, basi- Stafford’s late-game heroics that 20111010-NEWS--0041-NAT-CCI-CD_-- 10/7/2011 5:18 PM Page 1

October 10, 2011 CRAIN’S DETROIT BUSINESS Page 41 MLS: Realcomp wants Supreme Court to decide www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or the commission, which is usually 6 explicitly limiting the publication “The Supreme Court has very needs to go through the broker [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- percent to 7 percent. and marketing of nontraditional specific rules on what it will hear,” that listed the property, and it sup- 0460 or [email protected] Particularly with the rise of the listings, thereby eliminating cer- he said. “Typically, it is to settle a ports the original intent of an DEPUTY MANAGING EDITOR Jennette Smith, Internet, business models have tain forms of competition without significant issue of law.” MLS, being a tool for licensed real (313) 446-1622 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or emerged where an agent charges a cognizable and plausible efficiency A topic of whether the workings estate agents. [email protected] flat fee to list the home on the MLS, justifications.” of an MLS harms competition is the “The FTC hasn’t told us that we WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- then gives the seller the option to In October 2006, the FTC made kind of case the Supreme Court can use this policy,” he said. “But 8158 or [email protected] sell the home on his or her own — that argument in going after seven would not likely hear, Ettinger said. they are aware of it and they COPY DESK CHIEF Gary Piatek, (313) 446-0357 or [email protected] with no commission given to a bro- MLS boards across the country It’s a last-ditch effort, ending a haven’t told us to stop either.” ASSISTANT NEWS EDITOR Jeff Johnston, (313) ker. over their policies on handling costly fight with legal bills near The ongoing case is just part of 446-1608 or [email protected] The company is called an “ex- listings from exclusive agency $2 million, Kage said. Norman Lip- the tense relationship between tra- DATA EDITOR Brianna Reilly, (313) 446-0418, [email protected] clusive agency” listing. contracts. pitt of Birming- ditional real estate agents and new WEB DEVELOPER Steve Williams, (313) 446- Realcomp’s policy has always al- Six of them, including Troy- ham-based Lip- business models. 6059, [email protected] lowed exclusive agency listings on based MiRealSource, later settled pitt O’Keefe PLLC Ian Wylie, owner of FSBO Michi- WEB EDITOR Gary Anglebrandt, (313) 446-1621, its MLS. But when Realcomp feeds with the FTC, agreeing to change is representing gan LLC, said limited service real [email protected] EDITORIAL SUPPORT Robertta Reiff (313) 446- public websites such as their policies. Realcomp, however, Realcomp in the estate firms like his draw fear 0419, YahNica Crawford, (313) 446-0329 realestate.com or trulia.com with appealed the complaint. Supreme Court from traditional real estate agents NEWSROOM (313) 446-0329, FAX (313) 446- homes for sale, Realcomp tried to In 2007, the FTC’s administra- attempt. Farm- because people realize it’s not as 1687 TIP LINE (313) 446-6766 exclude the exclusive listing agen- tive law judge dismissed the com- ington Hills- hard as they think to sell their own REPORTERS Daniel Duggan, senior reporter: Covers retail, real cies’ clients. plaint. based Foster house. estate and hospitality. (313) 446-0414 or The worry is that consumers However, the FTC reversed its Swift Collins & “They try to scare people, telling [email protected] Jay Greene, senior reporter: Covers health care, will use the MLS, through web- opinion in 2009 when the initial de- Smith PC repre- them how hard it can be,” he said. insurance and the environment. (313) 446-0325 or sites, to complete deals without the cision was appealed to a different Kage sented Real- “Just go to a title company, they’ll [email protected]. Chad Halcom: Covers law, non-automotive use of real estate agents. FTC administrative law judge. comp in the FTC and Court of Ap- walk you through the whole trans- manufacturing, defense contracting and Oakland Another worry is that a buyer, The next step was the Court of peals cases. action, and might actually appreci- and Macomb counties. (313) 446-6796 or [email protected]. who is represented by a real estate Appeals, which also denied Real- While much of the cost has been ate not having the real estate agent Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or agent, will find such a listing and comp’s claim. In April, the court covered by an insurance policy Re- in the way.” [email protected]. strike a deal directly with the sell- refused to overturn the FTC rul- alcomp took out with the National Wylie’s Vanderbilt-based com- Nancy Kaffer: Covers small business, the city of Detroit, Wayne County government. (313) 446- er. In that case, the buyer repre- ings. It found that there was a drop Association of Realtors, the Chicago- pany offers services in metro De- 0412 or [email protected]. sentative gets cut out of the deal, in exclusive agent listings in the based advocacy group also has troit and around the state. Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, said Douglas Hardy, president of MLS during the time period when supplemented the insurance poli- “I understand the anger; the real and transportation. (313) 446-1626 or Farmington Hills-based Century 21 the policy was in place. cy payout with contributions to estate agents developed the system [email protected]. Nathan Skid: Multimedia reporter. Also covers the Today Inc., chairman of the Birm- “Realcomp’s website policy un- the defense. that we have,” he said. “But it’s a food industry and entertainment. (313) 446-1654, ingham office of SKBK Sotheby’s In- reasonably restrained competition Ralph Homen, associate general system that costs people a lot of [email protected]. Sherri Welch: Covers nonprofits and services. ternational Inc. and president of Re- in the market for the provision of counsel for NAR, said the policy money that they don’t need to (313) 446-1694 or [email protected] alcomp. residential real estate brokerage that Realcomp had been using was spend.” Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw “When we promote a listing, and services in Southeastern Michigan one that was supported by NAR at Kage said the case has brought counties. (313) 446-6042 or [email protected] an agent shows that house, there is and the Realcomp MLS,” Judge the time. He said the national her a lot of attention in the indus- LANSING BUREAU Amy Lane: Covers business issues at the Capitol, a guarantee of compensation,” he Karen Nelson Moore wrote in the group isn’t interested in support- try and is a hot topic at real estate telecommunications and utilities. (517) 371-5355, said. “If a buyer’s agent sends the decision. ing any one group of real estate events. But Realcomp remains the FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. listing to their client and the client It is extremely rare for the agents over another, but is inter- only firm involved in the fight. ADVERTISING knocks on the door, they get cut Supreme Court to pick up any ested in clarifying the policies. “I won’t say people call me ADVERTISING DIRECTOR Marla Wise, (313) 446- out of the deal. That’s just not a case, and would be unlikely for Homen said that a small change crazy, but they give me the ‘God 6032 or [email protected] core tenet of what an MLS is sup- this case, said David Ettinger, in the controversial policy has bless you, thanks for fighting’ SALES INQUIRIES: (313) 446-6052; FAX (313) posed to do.” chairman of the antitrust and since been made: The physical ad- speech,” she said. 393-0997 ADVERTISING SALES Christine Galasso, Matthew But the Federal Trade Commis- trade regulation practice group at dress of the exclusive agency list- Daniel Duggan: (313) 446-0414, J. Langan, Lori Tournay Liggett, Tamara Rokowski, sion found that the exclusion is a Detroit-based Honigman Miller ings is restricted from listings. [email protected]. Twitter: Cheryl Rothe, Dale Smolinski CLASSIFIED SALES (313)-446-0351 policy that “injured consumers by Schwartz and Cohn LLP. In that circumstance, a buyer @d_duggan EVENTS DIRECTOR Nicole LaPointe MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford AUDIENCE DEVELOPMENT MANAGER Candice Yopp MARKETING COORDINATOR Jenny Griffith Volunteers: Centralized resource in the works PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams ■ From Page 3 CUSTOMER SERVICE Battle Creek-based W.K. Kellogg unteer coordinating system that But as a whole, businesses are MAIN NUMBER: Call (877) 824-9374 or write [email protected] Foundation, the Michigan Nonprof- includes high levels of safety “all on the quest (to find) that SUBSCRIPTIONS $59 one year, $98 two years. it Association spent the first half check-offs for both volunteers and matchmaking capability to match Out of state, $79 one year, $138 for two years. (As a region), Outside U.S.A., add $48 per year to out-of-state of this year working with its Michi- “ nonprofits engaging them, said opportunities and the volunteers.” rate for surface mail. Call (313) 446-0450 or gan Campus Compact, the Volunteer we’re missing an Janet Lawson, director of Ford The nonprofit community has (877) 824-9374. SINGLE COPIES: (877) 824-9374. Centers for Michigan and the Michi- Volunteers Corps and a member of spent many years trying to figure REPRINTS: (800) 290-5460, ext. 125; gan Community Service Commission opportunity. the Michigan Community Service out the leverage point that gets the (717) 505-9701, ext. 136; or rosie.hassell ” @theygsgroup.com. to assess which nonprofits use vol- Commission board. highest and best values out of a TO FIND A DATE A STORY WAS PUBLISHED: unteers and which organizations Mark Davidoff, Deloitte LLP “An open source database that sustainable volunteer base, said (313) 446-0367 or e-mail [email protected].

currently connect volunteers to would be available to everybody Davidoff, who spent 20 years work- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY those agencies. to broad-based volunteering, Mur- would not be helpful to me because I ing in nonprofits and served as ex- CRAIN COMMUNICATIONS INC. The partnership soon broadened ray-Brown said. am the guardian for the risk in- ecutive director of the Jewish Feder- CHAIRMAN Keith E. Crain PRESIDENT Rance Crain to include the Corporation for Nation- The collaborative contracted volved for our employees,” she said. ation of Metropolitan Detroit until SECRETARY Merrilee Crain al and Community Service’s state of- with Issue Media Group to promote But any time there’s a survey of 2005 when he joined Deloitte. TREASURER Mary Kay Crain Executive Vice President/Operations fice in Detroit, United Way and the the “Serve the D” survey and to lift residents in Michigan, that infor- It’s a very challenging topic — William A. Morrow City of Detroit’s “Cities of Service” up current volunteers through fol- mation is helpful, Lawson said. but worth getting into, he said. Group Vice President/Technology, Manufacturing, Circulation program. low-up features. “That kind of information in- As a region, “we’re missing an Robert C. Adams The collaborative contracted The Southeast Michigan Volun- forms us on the focus areas we are opportunity. There’s extraordi- Vice President/Production & Manufacturing Dave Kamis with a consultant to study the vol- teer Collaborative is discussing funding and sending volunteers to nary value in the skills-based vol- Chief Information Officer unteerism landscape and paint a how it could connect volunteers to and is always helpful to us to make unteering mechanism,” Davidoff Paul Dalpiaz Director of Audience Development Operations picture of which nonprofits need opportunities, including the possi- sure we’re heading in the right di- said. Michelle Roth and use volunteers, which for-prof- bility of a centralized website, rection.” Companies and their employee G.D. Crain Jr. Founder (1885-1973) it companies deploy large num- Murray-Brown said. For one day in June each of the volunteers are on the same quest, Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: bers of employee volunteers and “We can’t continue to do busi- past 12 years, Deloitte LLP has de- he said. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) which agencies match the two up. ness as usual — we have to look at ployed over 50,000 of its employees “How do we get the greatest re- 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET Between August and November, this data to say what it is we need across the U.S. to volunteer in turn in nonprofits investing in vol- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 it is surveying hundreds of local to do differently to attract more their communities as part of the unteer mechanisms and the volun- is published weekly, except for a special issue the third week of January, a special issue the fourth volunteers through a page on Peo- volunteers.” company’s “Impact Day.” teer wanting to have a return on week of August, and no issue the third week of pleMovers.com to get a sense of Several corporate leaders have Locally, 1,200 of Deloitte’s em- the investment ... of time and intel- December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals when, how, how much and why made promoting volunteerism a ployees volunteered this year, said lectual capacity?” postage paid at Detroit, MI and additional mailing they volunteer. priority. Mark Davidoff, Michigan manag- “Unless they get a good return offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation It also hopes to identify gaps, Given the vast numbers of Ford ing partner. on that investment, they’re not go- Department, P.O. Box 07925, Detroit, MI 48207- such as geographical areas that Motor Co. employees, retirees and “We don’t have any problems ac- ing to reinvest,” Davidoff said. 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2011 by Crain lack volunteers or in types of vol- dealers who volunteer through its complishing our goals on Impact Sherri Welch: (313) 446-1694, Communications Inc. All rights reserved. unteering, such as certain types of Volunteer Corps, the automaker Day because it’s a limited window [email protected]. Twitter: @sher- Reproduction or use of editorial content in any skills-based positions, as opposed has developed its own internal vol- of commitment,” he said. riwelch manner without permission is strictly prohibited. 20111010-NEWS--0042-NAT-CCI-CD_-- 10/7/2011 5:59 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS October 10, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 1-7

Care at Henry Ford Wyandotte er for former Detroit Mayor million to $3 million annu- Hospital. General Kwame Kilpatrick, has plead- ally. The Mustang was created ed guilty to tax evasion and Detroit’s 2-year-old, Taubman for the event and donated agreed to testify against $23 million system to by Ford. Dynamics lands her former client, AP re- streamline payroll cost A $2,500 “Shelby Ticket” ported. about 10 times more than buys special access to $243M contract Deborah D’Anna, former expected to put in place and tops locals on Ford’s Dearborn test track, medical director of Palmer doesn’t work properly, AP including rides, racing and Health Center in Detroit, has reported. The Detroit News he U.S. Army Tacom an afterglow event. Those been found guilty in Ingham reported that some workers tickets are limited to 250. Life Cycle Manage- County Circuit Court of 25 T ment Command has said they have had to wait Tickets for just the after- counts of Medicaid fraud awarded Sterling Heights- several weeks to get paid, list of richest glow are $250. and one count of racketeer- and others complained that based General Dynamics Land To buy tickets and for ing. She is expected to be they’re paid the wrong ith a personal Sr. ($1.1 billion), owner of event details, go to GetY- Systems a $243 million con- sentenced Oct. 27 and could worth estimated at the Detroit Lions and retired tract to produce another amount. ourHeartRacing.org. receive a maximum sen- The University of Michi- W $2.5 billion, shop- chairman of Ford Motor Co., 115 Stryker combat vehi- tence of 20 years. gan Tech Transfer depart- ping mall developer A. Alfred which was founded by his cles. U.S. District Court Judge ment, the organization re- Taubman is the wealthiest grandfather. Upload pothole photos to Paul Borman ruled against sponsible for the transfer of metro Detroit resident, ac- Michigan’s wealthiest major cuts in Michigan’s new app, maybe win $500 ON THE MOVE university technology to cording to Forbes maga- residents (tied for No. 60) welfare program, saying the marketplace, recorded zine’s newest annual list of are Fred Meijer, scion of the Courtesy of the folks seek- Former UAW organizer that the state did a poor job the 400 richest Americans. supermarket chain’s ing more funding for Michi- Karla Swift has been elected of notifying people they no a record 101 licenses and Taubman, 87, is ranked founder, and Richard De- gan’s roads and bridges: A president of the Michigan longer would receive cash options involving UM tech- as the 159th-richest Ameri- Vos, co-founder of Ada- pothole mobile app. AFL-CIO. She replaces long- benefits and ordered Michi- nologies in the 2011 fiscal can. He founded Taubman based Amway and owner of The mobile application time President Mark gan to send another round year. Also, UM said that for Centers Inc. in 1950, and that the Orlando Magic. They’re launched by the Michigan Gaffney, who last month an- of notices, AP reported. the first time it will direct- company today owns 26 worth $5 billion. Transportation Team, a group nounced he would not seek ly invest up to $25 million malls. Two are linked to Kalama- of business, labor, local gov- re-election. over the next 10 years in Not on the list this year: zoo-based Stryker Corp.: Ronda ernment interests and oth- Tom O’Brien has been OTHER NEWS businesses spun out from ers, allows people to upload Roger Penske, founder of Stryker ($2.3 billion, No. 171) promoted to the new posi- Republicans intro- research conducted at the Bloomfield Hills-based and Jon Stryker ($1.1 billion, photos of dangerous pot- tion of vice president/mar- school. holes and roads or bridges duced into the Senate a bill Penske Corp. Forbes ex- No. 375). John Brown, also of ket manager for Cumulus that would not allow public Four major U.S. air- plained he was not on the list Stryker, fell off the list. in disrepair. Media Inc.’s three Detroit ports, including Detroit Met- Submissions selected as schools to require employ- because of “new informa- To estimate billionaires’ radio stations, WJR AM 760, ropolitan Airport, have begun finalists in the “Danger on ees to pay union dues or tion” but provided no other net worths, Forbes said it WDVD 96.3 FM and WDRQ a test of whether passen- our Roads” contest will be fees as a condition of em- details. values individuals’ assets, FM 93.1. He previously was ployment, AP reported. It gers who disclose more per- In March, Forbes listed his including stakes in public placed on a Facebook page general manager of WJR. for voting, and the coalition appears the bill would af- sonal information to the worth at $1.4 billion. The and private companies, real fect only the Michigan Edu- U.S. Transportation Security threshold for the Forbes 400 estate, yachts, art and cash, will award the winner $500 for vehicle repairs or up- COMPANY NEWS cation Association because it Administration can get was $1.05 billion. and it accounts for debt. would apply only to unions through security lines in Among the nine other The financial news pub- grades. The app is designed to Retailer Leon & Lulu that represent at least less time with fewer has- state residents on the list lisher acknowledges that it plans to expand its down- 50,000 workers. sles, AP reported. are five from metro Detroit: doesn’t have all the infor- highlight the state’s need for town Clawson presence A committee in the A contract indicates No. 212: Mike and Marian mation about those on the increased investment in transportation and infra- with a $1 million redevelop- Michigan Senate is expect- that the University of Michi- Ilitch ($2 billion), who own list and that not all on the structure, and it comes amid ment of the historic Claw- ed to vote next week on leg- gan’s 2012 football season the Little Caesars pizza chain list cooperate with vetting. a continuing push for politi- son Theatre. islation to create an author- opener against the Universi- and the Detroit Red Wings. cal attention to the issue. Ford Motor Co. said it ity to oversee a proposed ty of Alabama in Arlington, He owns the Detroit Tigers Custom Mustang auction Gov. Rick Snyder is slated will add or retain 12,000 new bridge that would link Texas, is expected to pay and she owns MotorCity Casi- to present his vision and ac- U.S. jobs as part of $16 bil- Detroit and Canada. the school $4.7 million, AP no-Hotel. to benefit heart centers tion plan for Michigan in- lion in planned invest- The legislation is con- reported. No. 293 (tie): Dan Gilbert Auto racing fans will get frastructure, including ments under its new labor nected to the proposed New Irving Nusbaum and ($1.5 billion), founder of De- agreement with the UAW, a chance this month to see transportation, later this International Trade Cross- William Berlin, former own- troit-based Quicken Loans, including $500 million in their sport put to work for a month. ing. The Senate Economic ers of New York Carpet World, owner of several downtown new investment at the Flat charitable cause. The administration is Development Committee have donated the defunct Detroit buildings and the Rock plant and production plans a vote on the proposal A custom-made 2012 Mus- looking at the week of Oct. company’s 92,000-square- Cleveland Cavaliers. He also of the C-Max crossover in Wednesday, Associated tang Boss 302 Laguna Seca 24 to send that message to foot headquarters at Eight has two Ohio casinos under Wayne, reports said. Press reported. — a 444-horsepower, 5.0- the Legislature. Mile and Southfield roads construction. Ann Arbor-based Bor- Wayne liter V8 beast signed by rac- Those who want the to Gleaners Community Food No. 293 (tie): Manuel “Mat- ders Group Inc. said it will County Ex- ing icon Parnelli Jones — will iPhone app can go to Apple’s Bank of Southeastern Michi- ty” Moroun ($1.5 billion), the be auctioned during “Get distribute remaining assets ecutive app store and search “Dan- gan. Grosse Pointe trucking in- Your Heart Racing” on Sat- ger on our Roads” or go to through a liquidating trust, Robert Fi- Presidents Allan dustrialist well known for urday to raise money for dangeronourroads.com. leaving former sharehold- cano said Gilmour of Wayne State Uni- his ownership of the Am- the Edith and Benson Ford Those without an iPhone ers with nothing, he will versity, Mary Sue Coleman of bassador Bridge. Heart and Vascular Institute can send pictures to info@ Bloomberg News reported. launch an University of Michigan and No. 375: William Clay Ford and the Center for Cardiac dangeronourroads.com. internal in- vestigation Lou Anna Simon of Michigan COURTS into a State University told the De- Ficano Operators of a Mt. $200,000 troit Economic Club that gov- Pleasant medical marijua- severance payment made to ernment involvement in na dispensary that was former Chief Development the operations of state uni- shut down in August has Officer Turkia Awada Mullin. versities would be counter- BEST FROM THE BLOGS productive. asked the Michigan Supreme Louisiana authorities READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Court to decide whether the dropped a bid to extradite Beaumont Health Sys- sale of medical marijuana former Detroit Tigers star tem has received a $1.5 mil- More on personal property tax I have questions on no-fault at the dispensaries is legal, Denny McLain for trial in a lion gift from Henrietta and AP reported. dispute over a scrap metal Alvin Weisberg to establish a A lot of Michigan I have some Edward May, president sale, AP reported. center for elderly care and voters“ think totally of Lake Orion-based E-M The Los Angeles-based an endowed fund for geri- eliminating Michigan’s questions“ ... about Management Co. LLC and the sports marketing and tal- personal property tax some of the charges atric education and re- is a bad idea, and and counter-charges perpetrator of a Ponzi ent management firm search at its Royal Oak they also think leveled by supporters scheme that involved in- Wasserman Media Group has campus. businesses will and opponents of the vestments of more than been hired to broker a nam- pocket the savings legislation to overhaul $350 million in more than ing-rights deal for The rather than invest in Michigan's no-fault 250 phony limited-liability Palace of Auburn Hills, ac- OBITUARIES auto insurance. new equipment companies, was sentenced cording to an online story William Panny, former and create jobs. ” to 16 years in federal prison from the trade magazine vice chairman and COO at Reporter Amy Lane’s blog on utilities and state” Reporter Jay Greene’s blog about health care, by Judge Arthur Tarnow of Sports Business Journal Bendix Corp. and presi- government issues affecting business can be found insurance and the environment can be found at U.S. District Court. Daily. The outlet estimated dent/CEO of MLX Corp., at www.crainsdetroit.com/lane www.crainsdetroit.com/greene Emma Bell, a fundrais- a deal could be worth $2.5 died Sept. 18. He was 83. DBpageAD.qxp 10/5/2011 11:30 AM Page 1

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