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NEWSPAPER www.crainsdetroit.com Vol.28,No.19 Crain’s Crain’s This JustIn Inside Page 3 The She’ll succeed Song, 30,currentlyamem- The DSOnowhas77musi- Including Song,theDSO The concertmastersetsthe has hired SymphonyOrches- in Minnesota,isex- Lists St. PaulChamberOr- Yoonshin Song New owner — says there’s promise in Sherri Welch Kimberly Ann left theDSO , whohas . Em- as agement employees.Anadditional several supportstaffersandman- examiners byFebruary,alongwith could beinplacebyAugustand100 opening date. weeks beforetheofficialJuly16 cessing patentapplicationsafew some supportstaffcouldbeginpro- the first25patentexaminersand States PatentandTrademarkOffice to openthe schedule onitsmid-Julytimetable will createdirectly. the 120governmentpositionsit much morelocaljobgrowththan fice 55 percentofthenewventure. Andra Rush,CEOofRushGroupLtd.,whichowns on $700millioninbusinessfromFordMotorCo.is Leading aDetroit-basedjointventurethatwilltake job growth spur broad expected to Patent office /video crainsdetroit.com official, Trademark Office U.S. Patentand Detroit),” saysa jealous (of cities ...arevery The Another 25patentexaminers The agencyisslightlyaheadof in Detroitprobablywillspur CRAIN’S DETROITBUSINESS V U.S. PatentandTrademarkOf- B IDEO “A lotof Y C HAD Elijah J.McCoyUnited See Patent,Page23 H ALCOM ters intime, its headquar- nection with network con- establishes a manager. troit regional Evans asDe- with Robin downtown, Place eastof Stroh River If theoffice KEVIN MIYAZAKI/REDUX at presence inthecity. Detroit, sayssomethingneedstobedoneaboutthelackofpolice Jason Kassab,athisHandySpotMarketonEightMileRoadin FREE e-mail newsletters. Areyouoneofthem? FREE e-mailnewsletters. MAY 7–13,2012 19,800 challenge —yet. her biggestaccomplishment—and auto supplier plier joint venturewithCanadiansup- eration tocreatinganinteriors credit cardsintoa$115millionop- ing companyfundedbypersonal opportunities —fromgrowingameagertruck- Ford-driven interiorsventurewithFaureciaisnextbigtest But anewventurewithFrench Andra Rushhasahistoryofcapitalizingon New challenge for Rush Magna InternationalInc. Crain’s CRAIN’S DETROITBUSINESS B Faurecia SA Y subscribers getoneofour subscribers D USTIN W could be ALSH crainsdetroit.com/video weekly onlinenewscast, See morein JOHN SOBCZAK Crain’s Crain’s Faurecia andWayne-based business fromAuburnHills.Aspartofthedeal, Faurecia, whichoperatesitsNorthAmerican ness atitsSalineinteriorsplantlastweekto Ford MotorCo. crainsdetroit.com/getemail Sign upnowat way andI-96inDetroit. trial CenterofftheSouthfieldFree- is basedoutoftheGatewayIndus- facturing SystemsLLC ated thejointventure joint venture,withFaureciaown- ers ed FoodandPetroleumDeal- chairman ofthe troit. business inandnearDe- sometimes facedoing owners ofsmallstores once againthedanger brought totheforefront Faraj “Fred”Dally chess,” saidJasonKassab, say. ever come,storeowners incredibly long—ifthey ing neighborhoodsare times inDetroit’soutly- know policeresponse bolder becausethey since the1970s. on thecity’swestside liquor storehe’doperated the early May1asheopened h R o a Rush owns55percentofthe Dally, 63,theformer Last week’smurderof “It’s likeagameof Criminals aregetting w i g CRAIN’S DETROITBUSINESS , e B sold its$1.1billionbookofbusi- g

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Page 2 CRAIN’S DETROIT BUSINESS May 7, 2012

MICHIGAN BRIEFS Did weather hurt state farmers? profits fund fresh water wells in de- veloping countries. Does Poland grow tart cherries? Wolverine World Wide set to expand its footprint Ⅲ The Department of Envi- Last October, Crain’s Michigan ronmental Quality has approved the Business profiled self-styled “am- A consortium of companies including Rockford- the wholesale and retail operations of the Sperry Top- plans of Orvana Resources U.S. Corp. bassador for cherries” Bob Suther- based Wolverine World Wide Inc. announced last week Sider, Saucony, Stride Rite and Keds brands. for a copper and silver mine in the land of Glen Arbor-based Cherry Re- that it plans to acquire Collective Brands Inc. for near- and will jointly far western Upper Peninsula. Or- public. His growing business ly $2 billion, including the assumption of debt. acquire the operations of Payless ShoeSource and vana hopes to mine 798 million statewide weathered a recession. Known for its casual-footwear brands Hush Pup- Collective Licensing International. Combined, the pounds of copper and 3.5 million Now it has to weather the weather. pies and Merrell, Wolverine joined with private eq- two divisions had annual revenue of about $2.4 bil- ounces of silver in an underground March’s summerlike tempera- uity firms Golden Gate Capital and Blum Capital Part- lion in the past fiscal year. deposit near Ironwood, AP reported. tures, followed by summerlike ners to acquire Topeka, Kan.-based Collective Wolverine CEO Blake Krueger said the deal cata- Ⅲ Whirlpool Corp. officially cherry blossoms, followed by April Brands, maker of Keds, Sperry Top-Sider and other pults his company from annual revenue of $1.4 bil- opened its new office campus in frosts, have devastated many footwear. Collective Brands also owns the 4,300- lion to projected annual revenue of more than $2.5 Benton Harbor. The appliance Michigan farmers. Up north, farm- store Payless ShoeSource retail business, as well as a billion. He told analysts the deal will help Wolverine maker said the $70 million project ers and extension agents say the global licensing business. plug some openings in its lineup, including in ath- is part of a plan to consolidate 15 fa- tart cherry crop is all but wiped Upon close of the deal, Wolverine will acquire Col- letic and kids shoes. Of the brands in the acquisi- cilities into three office campuses. out, The Associated Press reported. lective Brands’ Performance + Lifestyle Group for tion, he said the most potential comes from Sperry Ⅲ Florida-based Pratt Industries Sweet cherries, apples, pears and about $1.23 billion. PLG had annual revenue of $1 bil- Top-Sider. Inc. will open a plant in Berrien peaches have suffered extensive lion in the fiscal year that ended Jan. 31 and includes — Joe Boomgaard, MiBiz County about 80 miles south of damage. Same with juice grapes. Grand Rapids, AP reported. By the end of the year, up to 400 people So just in case, Sutherland said, expansion plans last week in Ohio-based Huntington Bancshares the first three recipients of initial are expected to be employed there. he ordered 150,000 pounds of cher- Grand Rapids. Inc., had bought the 15 branches $5,000 investments. Start Garden se- ries from Poland. And if things get Grand Rapids-based Steelcase Inc. and $818.2 million in assets of Dear- lected Click Plow, which allows con- Find business news from really dire, Sutherland told will design the in-store branches. born-based Fidelity Bank after state sumers to schedule snow removal around the state at crainsdetroit AnnArbor.com, some of Cherry Huntington will open 22 branch- and federal regulators shut it down. online only when they need it; and .com/crainsmichiganbusiness. Republic’s dried-cherry and choco- es in the state this year, the first According to the Federal Deposit NxtMile Sport Insoles. Visitors to the Sign up for Crain’s Michigan late-covered products would in- May 17 in Bath, near Lansing. The Corp., as of last June 30, Start Garden website picked the Business e-newsletter at crains clude (dramatic pause) dried cran- deal will expand Huntington’s Huntington was eighth in the state third idea — Dirty Water Beer, whose detroit.com/emailsignup. berries from Wisconsin. footprint into Lansing, Ann Arbor, with 129 branches. Ninety-five Flint, Jackson, Battle Creek, Gay- more would boost it to No. 4. Huntington Bank to open lord and Cadillac. — Tom Henderson Most of the branches, which will CORRECTION 80-plus branches in Meijer stores be open for extended hours seven Ⅲ In the April 30 issue, Crain’s was given incorrect information that Huntington National Bank will ex- days a week, are to be open by 2016, MICH-CELLANEOUS the agenda for a joint Michigan Senate and House health policy com- pand significantly in Michigan by although a few may not open until Ⅲ The Michigan Briefs of April 30 mittee hearing on certificate-of-need rules would include a hospital opening more than 80 branches in- as late as 2019, bank officials said. reported the plans of ArtPrize proposed by Flint-based McLaren Health Care Corp. in Oakland County’s side Meijer Inc. stores across the The deal with Walker-based Mei- founder Rick DeVos to launch a Independence Township. Crain’s did incorrectly report that state Sen. state and adding more than 500 jer follows news March 30 that the fund called Start Gar- Jim Marleau, R-Orion Township, confirmed the agenda item. jobs. Huntington announced the bank’s parent company, Columbus, den. Last week, the fund announced

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May 7, 2012 CRAIN’S DETROIT BUSINESS Page 3 Does bridge ballot threaten tunnel? Focus: Real Estate

Wording could trigger vote on Canada plan BALLOT LANGUAGE “The people should decide BY BILL SHEA Michigan is murky enough that it aire. whether state government should CRAIN’S DETROIT BUSINESS theoretically could trigger a refer- Moroun has spent millions construct or finance new endum on the effort to drill a new fighting the bridge because he sees international bridges or tunnels A $400 million Canadian effort railroad tunnel between Detroit it as unfair and unneeded govern- for motor vehicles. Consistent to build a larger commercial train and Windsor. ment competition to his bridge, with this policy, and to shield the tunnel underneath the Detroit Riv- The ballot initiative is the brain- which has been stymied by Cana- people from unnecessary er could become a casualty in the child of the Detroit International da from building a new adjacent burdens, the state shall not ongoing war swirling around con- Bridge Co., which is owned by span to the Ambassador Bridge. undertake ownership and the development of or use of state struction of a public bridge over Manuel “Matty” Moroun, and is However, his bridge company funds or resources for new the waterway. aimed at stopping a proposed com- says that the ballot measure isn’t international bridges or tunnels The wording on a proposed peting bridge over the Detroit Riv- supposed to ensnare the railroad for motor vehicles unless first statewide ballot measure that er, the $3.2 billion New International tunnel. determined to be necessary and Hotel projects sprout would require a public vote on Trade Crossing that would be jointly “There is no intent to impact a appropriate by majority vote of the construction of any new interna- built by Michigan and Canada but people.” as economy thaws, Page 11 tional bridge or tunnel funded by operated by a private concession- See Ballot, Page 23 Company index

These companies have significant mention in this week’s Crain’s Detroit Business: Silverdome owner AMC Forum 30 ...... 4 Associated Food and Petroleum Dealers ...... 1 Beaumont Health System ...... 3 Blue Cross Blue Shield of Michigan ...... 6 buys Penobscot Brinks Hofer Gilson & Lione ...... 23 CBRE Group ...... 24 Push for tenants includes Chaldean American Chamber of Commerce ...... 25 Cherry Republic ...... 2 building updates, low rates Conway Mackenzie ...... 22 Crime Stoppers ...... 25 BY DANIEL DUGGAN Dakkota Integrated Systems ...... 22 CRAIN’S DETROIT BUSINESS Detroit International Bridge Co...... 3 Detroit Manufacturing Systems ...... 1 The Toronto-based investor who bought the Detroit Regional Chamber ...... 21 Pontiac Silverdome in 2010 has purchased the his- Ducker Worldwide ...... 22 toric Penobscot Building in Detroit. Energy Conversion Services ...... 7 Taking a building that’s just over half full, ETC Capital ...... 23 Andreas Apostolopoulos plans an aggressive Faurecia ...... 1, 22 marketing campaign to find new office tenants Ford Motor Co...... 1, 22 and retailers for the building. Friedman Integrated Real Estate Solutions ...... 24 “I’m here to invest,” said Apostolopoulos, president and CEO Handy Spot Market ...... 25 of Triple Properties. Henry Ford Health System ...... 3, 21 “I like Detroit. It Honigman Miller Schwartz and Cohn ...... 7, 23 might be down a Huntington National Bank ...... 2 Johnson Controls ...... 22 little right now, JOHN SOBCZAK but I see it coming CFO Nick Vitale says the volatile stock market is behind Beaumont Health System’s drop in net income Jones Lang LaSalle ...... 24 up again, very this year compared with last year. Lawrence Technological University ...... 20 soon.” Lear Corp...... 22 The purchase Luxor Liquor ...... 25 price was $5 mil- MayfieldGentry ...... 22 lion in cash. And Medicine Chest ...... 1 Apostolopoulos Ailing at the bottom line Michigan Association of Home Builders ...... 13 plans to invest Michigan Manufacturers Association ...... 13 more money in the Oakwood Health Care ...... 3 building, while Hospital-based systems see net income drop Portfolio Property Management Global ...... 22 also offering a Quarton Partners ...... 7 rental rate as low nization in Royal Oak, saw its net income drop Rush Group Ltd...... 1, 22 as $10 per square BY JAY GREENE CRAIN’S DETROIT BUSINESS 54 percent to $35.5 million in 2011 from $78 mil- St. John Providence Health System ...... 3 foot, well below lion in 2010, said CFO Nick Vitale. Total rev- Security Central Protection ...... 25 COSTAR GROUP the city’s average Poor stock market performance, rising ex- enue increased 2.7 percent to $2.176 billion Council of Governments . . . . . 23 Andreas Apostolopoulos paid $16 per square foot penses and the cost of charity care led to drops from $2.118 billion the year before. Southwest Detroit Business Association ...... 25 $5 million cash for the for Class B and Penobscot Building. in net income for five of Southeast Michigan’s Vitale said non-operating revenue, which Total Health Care ...... 26 Class C office six hospital-based systems in 2011. includes investment income, derivatives and space in the city, according to Washington, Trans Inns Management ...... 11 While income from pa- securities, dropped to $9.4 million in 2011 com- D.C.-based CoStar Group Inc. Trinity Health-Michigan ...... 3, 6 tient care operations pared with $48.8 million in 2010. Operating in- “There’s a lot of work to do,” Apostolopoulos Truscott Rossman ...... 23 dropped for four systems CLOSER LOOK come slipped, but only to $26.1 million last said. “We’re going to put some money into the U.S. Patent and Trademark Office ...... 1 and increased for two sys- year from $29 million in 2010. building and try to attract more tenants.” Hospital University of Michigan Health System ...... 24 tems, losses or declines systems’ “The stock market moves up and down, The sale marks a new chapter in the build- Wolverine World Wide ...... 2 from the performance of performance by but we still generated $9.5 million in addi- ing’s long story of owners, managers and in- stocks and bonds hit bottom the numbers, tional earnings,” Vitale said. “2010 was much vestors. lines especially hard — ex- Page 24 better. But you look back a couple years, and Built in 1928, the 1.2 million-square-foot cept for the University of we had losses of $184 million in 2008 when we Department index structure has been one of the most well-known Michigan Health System. had auction rate hits. We came completely buildings in Detroit, particularly with its high- BANKRUPTCIES ...... 4 Over the past three years, most health sys- out of that in 2009 with $90 million in gains.” ly visible red globe at the top. BUSINESS DIARY ...... 18 tems have had moderate increases in revenue Net income also dipped last year for Henry It was repossessed by the lender, Capmark Fi- through growing patient admissions, outpa- Ford Health System, Oakwood Healthcare Inc., St. CALENDAR ...... 17 nancial Group, after a long foreclosure process tient visits and diagnostic testing. John Providence Health System and Trinity Health. JOB FRONT ...... 20 But because of the volatile stock market, CLASSIFIED ADS ...... 21 See Penobscot, Page 24 Beaumont Health System, a three-hospital orga- See Hospitals, Page 24 KEITH CRAIN...... 8 OPINION ...... 8 Holding a business event? Crain's Advisory Board OTHER VOICES ...... 9 Help us shape our news coverage and get the chance for THIS WEEK @ Go to crainsdetroit.com and click the "Events" PEOPLE ...... 20 tab at the top of the page to enter your business discounts on Crain's products all at the same time by taking WWW.CRAINSDETROIT.COM event into our online Local Events Calendar. a survey, available at crainsdetroit.com/readerpanel. RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20120507-NEWS--0004-NAT-CCI-CD_-- 5/4/2012 4:47 PM Page 1

CRAIN’S DETROIT BUSINESS AMC seeks to sell alcohol in Sterling Heights Council delays vote

BY MEGHANA KESHAVAN SPECIAL TO CRAIN’S DETROIT BUSINESS

In an effort to attract more cus- tomers 21 and older, AMC Inc. is seeking a liquor license for its Sterling Heights movie theater. If successful, the AMC Forum 30 would join the list of local theaters offering adult beverages. This week, the Sterling Heights City Council postponed a decision whether to approve a liquor li- cense for the theater at Mound Continuity Road and M-59. Trusted for 70 years. We’ll be here for generations. Kansas City, Mo.-based AMC wants to add alcohol to its stan- dard soda-and-popcorn menu, but Sterling Heights City Manager We work with our clients and their advisors to: Mark Vanderpool said council Reduce estate and income tax Enhance fixed income members want to ensure there are safeguards in place. yields Solve family and business issues Improve Vanderpool said those could in- existing life insurance policies. clude the use of fluorescent bands and cups to distinguish minors from adults and plans to limit the hours alcohol is served to between 4 p.m. and 15 minutes after the last show begins. Attorneys for AMC and Sterling Heights have been asked to draw BIRMINGHAM, MICHIGAN 248.731.9500 up a letter of agreement. The City WWW.SCHECHTERWEALTH.COM Council will discuss the issue May 15. Driving up adult audience num- bers is a major concern for the- aters as attendance rates slip, AMC said Tuesday in its presenta- tion to the Sterling Heights coun- Why Should cil. It said its patron base is mostly younger than 21. “By offering adult beverages in a They Trust YOU? year ago Varnum committed relaxing, casual atmosphere, AMC hopes to drive a more mature guest One back to the theater,” the company said in a written statement to coun- cil members. $1 Million in free legal services to help The multiplexes of Troy-based BBB Accredited Businesses entrepreneurs and growing businesses in Michigan. Emagine Entertainment are the only theaters in Michigan that allow al- are committed to honest, ethical cohol. Emagine has theaters in Since then we have worked with referral organizations, Novi, Canton Township, Wood- haven, Birch Run, Clio, Rochester and fair business practices. Hills and Royal Oak. 21 AMC is trying to secure a liquor counseled growing businesses in license for its Livonia location as well and estimates approval within Show Your Customers What 24 the next 30 days. In Sterling Heights, cities across Michigan. AMC also wants to open a lobby bar YOU Stand For and lounge called MacGuffins, with 34 food offerings of appetizers and It is gratifying to work with the manyentrepreneurs — desserts. Drinks would range from $5 to $9.75. The theater is taking over the and the individuals who support them — to keep liquor license of Ping On of Sterling Heights Inc., a Chinese restaurant no longer in business. Of its 341 locations nationwide, Michigan’s economy 28 AMC theaters serve alcohol and growing. ® 20 are pending approval.

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® ygpotential we see in Michigan appears unlimited. BANKRUPTCIES Start With Trust The following business filed for Chap- ter 7 protection in U.S. Bankruptcy Court in Detroit April 27-May 3. Chap- Join the Better Business Bureau ter 7 involves total liquidation. Serving Eastern Michigan and the Upper Peninsula Tom Moss & Associates Inc., 1893 For more information: Birchwood Drive, Troy, voluntary Chapter 7. Assets: $9,176; liabilities: bbb.org or 248-223-9400 www.mispringboard.com Legal Experience In Your Corner. $403,785. — Meghana Keshavan DBpageAD.qxp 4/27/2012 12:27 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS May 7, 2012 Trinity Health, Blue Cross contract ties reimbursements to higher-quality care

BY JAY GREENE contract once the quality measure- CRAIN’S DETROIT BUSINESS ments and information system are put into place. Novi-based Trinity Health-Michigan Barkell said Blue Cross is dis- has signed a 3½-year contract with cussing similar pacts with many Blue Cross Blue Shield of Michigan to hospitals and their physicians. develop a coordinated approach to “We expect several more hospi- managing patient care and create tal systems to sign similar value- quality measurements that will based contracts with us by end of lead to a performance-based reim- … 2012, when we expect to have 50 bursement contract by 2016. Barkell Carter percent of our overall hospital dol- As in similar contracts with the lars subject to these arrange- five-hospital St. John Providence “We think it aligns our inter- ments,” Barkell said. Health System and three-hospital ests,” Trinity CFO Ben Carter Carter declined to state the Beaumont Health System, Blue Cross said. “We will jointly develop per- amount of funding Blue Cross will has pledged to fund improvements formance measures on patient sat- provide Trinity to help develop ad- in information systems at Trini- isfaction and quality. It is a ditional capabilities for its clinical ty’s 12 Michigan hospitals and oth- shared-savings approach.” information system. er facilities. Carter said the ultimate goal “We have been working for Under the agreement — Blue will be to drive down costs for pa- some time to clinically integrate Cross’ first statewide contract — tients and employers while raising our IT systems across a broad span Trinity will work closely over the the quality of care. of providers (physicians, home next several years with its physi- Susan Barkell, Blue Cross senior health agencies, laboratories and cians and Blue Cross to tie higher vice president for health care val- hospitals),” Carter said. reimbursement payments to high- ue, said the agreement is expected “We need the technology to link er-quality outcomes for patients. to discourage high-volume services us all together, so as patients move and promote more effective care by across the network, information Trinity and its physicians. follows with them and allows “This population-based approach providers to measure outcomes.” addresses many of the issues dri- Implementation of the new con- ving up health care costs and pro- tract will be overseen by Garry motes integrated services and Faja, CEO of St. Joseph Mercy Health smoother transitions for the pa- System in Ann Arbor, and Roger tients as they move across care set- Spoelman, CEO of Mercy Health tings,” Barkell said in a statement. Partners in Muskegon. In January, Trinity signed a 5½- Jay Greene: (313) 446-0325, year reimbursement contract that [email protected]. Twitter: will become a performance-based @jaybgreene Is Your Commercial Real Estate Upside Down? we can help.

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May 7, 2012 CRAIN’S DETROIT BUSINESS Page 7 Court to hear shareholder’s bid to halt sale of ECD’s assets

BY TOM HENDERSON or bonds of companies in bankruptcy. CRAIN’S DETROIT BUSINESS “The fund is a little over $1 million, basi- cally friends and family,” said Wagoner, A hearing will be held Wednesday in U.S. who is also managing director of Source Cap- Bankruptcy Court in Detroit on a brief filed by ital Group, a broker dealer in Westport. a former Energy Conversion Devices Inc. share- Wagoner said his fund bought ECD bonds holder to halt the sale of ECD’s assets and to after the bankruptcy filing for 50 cents on the appoint an attorney to represent dollar. He said he has the interests of those who heard that a Chinese owned company stock on Feb. I made a profit, photovoltaic firm has 13, the day before it filed “ made a bid for ECD’s for Chapter 11 bank- but I should assets, particularly its ruptcy protection. United Solar Ovonic LLC The company’s stock have made a subsidiary, which traded as high as $1.46 makes flexible solar the day before the an- larger roofing materials. nouncement that the “I’ve heard there are company had filed for profit. three or four serious bankruptcy, fell to 29 ” bidders. GE is suppos- cents on Feb. 14 and John Murphy, Oakland edly interested, but you opened Friday at 6 cents. University never know,” he said. Bids in the auction of Wagoner expects company assets, managed by the Birming- that the assets will be ham-based investment capital firm of Quar- sold for enough to allow bondholders to get ton Partners LLC, are scheduled to be un- their bonds redeemed at face value or close Rose Family Adaptive Oncology Imaging Suite veiled Tuesday in the offices of ECD’s to it, once proceeds are combined with the bankruptcy attorney, Detroit-based Honig- $140 million in cash ECD holds. man Miller Schwartz and Cohn LLP. Even though he might make 100 percent A second hearing will be held in bank- return on his investment in February, Wag- ruptcy court May 16 on a motion by a Hous- oner said the timing of the bankruptcy filing ton-based law firm, McKool Smith PC, that was extremely odd. asks Judge Thomas Tucker to appoint an eq- “I’ve been doing bankruptcy workouts uity committee to protect the rights of cur- and restructuring a long time,” said Wag- For three generations, rent owners of common stock. oner. “I’ve been on 23 creditor committees Auburn Hills-based ECD was delisted and I’ve liquidated two companies. Compa- from Nasdaq upon filing for bankruptcy and nies file bankruptcy only when they have to, the Rose family has been trades on the Pink Sheets under enerq.pk. because it’s so expensive. You only file if The hearing Wednesday will be on a mo- there are debts you can’t pay. tion filed by John Murphy, a finance profes- “Companies file because they need to be helping Beaumont sor at Oakland University who bought ECD reorganized or need debtor-in-possession fi- nancing to continue in business. That’s not stock in December when it was trading at 20 the case here. ECD has $140 million in cash cents. He sold most of his stock on Feb. 14, fi ght cancer. and didn’t have to pay its bondholders for a when it was trading at 29 cents. year. The bondholders had no real teeth. It “I made a profit, but I should have made a was unsecured debt. So you just work some- larger profit,” said Murphy. “I’m not a Behind all of our innovations and life-saving cancer thing out. ... It just doesn’t add up.” lawyer, so I don’t expect to prevail Wednes- Jay Knoll, ECD’s chief restructuring offi- treatments are people like the Rose family. day, but I think I’m laying a pretty good ba- cer, declined to comment. sis for a class-action lawsuit.” Michael Matvieshen, president and CEO of More than 20 years ago, their generosity allowed us He said he and other shareholders are Modesto, Calif.-based Salamon Group Inc., a looking to engage a firm to file a lawsuit to establish the Rose Cancer Center that helped put builder and manager of renewable energy against ECD management. projects that made an offer in April to buy Beaumont at the forefront of cancer care. Murphy said he was upset that ECD offi- shares of ECD’s stock to take advantage of cials filed for bankruptcy over $263 million in $1 billion in previous losses he could apply to And since then, they have funded groundbreaking unsecured debt that wasn’t owed to bondhold- his company’s profits, agreed with Wagoner. research and advanced technology at our state-of-the- ers for more than a year. He said the compa- “Why would a company with no secured ny’s board trampled on the rights of share- debt and $140 million in cash file bankruptcy? art Rose Family Adaptive Oncology Imaging Suite. holders to please New York hedge funds. It looks like the board got steamrolled by the ECD’s three largest bondholders are hedge funds. ... I wouldn’t be surprised, at all, The Roses also allowed Beaumont to develop the Houston-based Sanders Morris Harris Group if there was a class-action suit by sharehold- first linear accelerator equipped with online image Inc., New York-based Angelo Gordon and Co. ers who were left holding the bag,” he said. and Stamford, Conn.-based Diamondback Wagoner said that while he sympathizes guidance and to become a world leader in cancer Capital Management LLC. with shareholders — he is one, himself, radiation treatment. Instead of filing bankruptcy, the company haven taking a flyer on ECD stock when it fell should have negotiated a reduced payment below 20 cents — he doubted there will be a Families like the Roses inspire us by their very for its bondholders, who were unsecured class-action suit by shareholders. debtors, Murphy said. After bondholders, other creditors and commitment to us. And they remind us that it That’s an opinion shared even by one of bankruptcy attorneys are paid, there will be doesn’t take a medical degree to save a life. ECD’s bondholders who stands to make a nothing left, he said. profit on his investment when results of the “The only way you’d prevail is to prove All it takes is a heart. auction are revealed: Eric Wagoner, general fraud by management, and how would you partner of Compass Point Partners LP of West- do that?” Wagoner said. port, Conn., a small fund that does dis- Tom Henderson: (313) 446-0337, thender- tressed investing, including buying shares [email protected]. Twitter: @tomhenderson2

A Not-for-Profi t Provider KNOW A HIGH-TECH HERO? CIO NOMINATIONS CLOSE SOON Crain’s Detroit Business is launching the mitigating risk. CIO Awards, a recognition of the top Go to www.crainsdetroit.com/nominate to technology executives in . fill out a nomination form by May 11. It is open to the top corporate executive Winners will be honored in the Aug. 6 who provides strategy related to technology Find out how you can save lives, too. If you would at any company, or an outside contractor edition and at a September event. like to make a gift, please go to our website at acting as CIO for a corporation. For more information, contact Daniel foundation.beaumont.edu or click on the code with Winners will be chosen on the criteria of Duggan, deputy managing editor, at your phone. reducing costs, driving revenue and [email protected] or (313) 446-1622. 20120507-NEWS--0008-NAT-CCI-CD_-- 5/4/2012 6:10 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS May 7, 2012 OPINION Public safety must become high priority uccessful business leaders know it: To succeed, the leader must create the vision the entire enterprise be- S lieves and can get behind. In Detroit, that vision has to begin with public safety. In community forums, like the post-consent decree event Crain’s convened on April 23, and in conversations across the city and region, violent crime emerges as Public Enemy No. 1. Attacking crime should be at the top of the priority list even as the city grapples with financial instability. As Sherri Welch reports on Page 1, there are many tools Detroit can use: technology and data to pinpoint the city’s trouble spots, putting more police on the streets, creating effective anti- crime community programs, and engaging church and com- munity leaders to combat an anti-snitch culture. But almost as important are programs that can help ex-offenders make a suc- cessful re-entry in the community to avoid a return to crime. High-profile tragedies — from the murder of two young women from Hamtramck who were abducted allegedly to pre- vent their testimony against violent predators, to the murder of store owner Faraj Dally last week — can spur momentum and public will to attack crime. But residents and business owners can’t take this on alone. State and city leaders need to quickly prioritize crime-fighting TALK ON THE WEB as a top community priority. From www.crainsdetroit.com quite a few ways that I am sure you Remove politics from judge selection Re: commits $3M to M1 Rail Reader responses to stories and would find most distasteful. The 3.3-mile stretch being pro- blogs that appeared on Crain’s Freedom Trinity Remember the “sleeping judge” ad in 2008? Former Michi- posed for light rail transit only website. Comments may be edited for length and clarity. gan Supreme Court Justice Clifford Taylor lost his bid for re- contributes to this project becom- Re: CCS grads forgo usual locations election in a vicious campaign that included an ad alleging he ing the next white elephant in De- Re: Gun sales clog as fears rise Where there are young cre- fell asleep on the bench. troit’s history. Hanker In 2000, Michigan spent 9.49 atives, there will always be innova- Taylor said the ad was a lie, but more importantly the cam- cents of every dollar of income on tion. As part of the generation that paign showcased the polarizing — and elaborate — nature of I am missing the vision. Whom state government; today it’s down was said to be the laziest ever, I judicial-race politics. will this be transporting? Locals? to about 6.76 cents, and it’s going would have to disagree: We are down. So you got a tax cut but have to making do with what’s available and There’s a push under way to reform how Michigan Maybe, hopefully, Wayne State students? There are a lot of well-re- buy a gun — and hope like hell you making things work on our own terms. The economic environment Supreme Court justices are selected for the bench. spected and successful contribu- know how to use it, use it right, is not ideal. Detroit’s condition is Justice Marilyn Kelly and retired U.S. Court of Appeals tors in this group, so hopefully they and don’t screw up and shoot your definitely not ideal. The building is are envisioning items I am not seeing own kid coming home late — be- Judge James Ryan — and a large group of lawyers and non- not ideal ... but we have to keep on. at this point. Hopefully. Maybe cause you’ve laid off cops instead. lawyers with varied political and nonpartisan backgrounds — Playground Detroit there is hope with that three-mile Paranoia strikes deep; into your convened a task force and came up with some common sense stretch. heart it will creep. ideas. Wayne OakWashMacomb MWAC Re: Roostertail’s dress code for prom One of the chief recommendations: Stop the practice of It is a shame it has to come to is- partisan nominations. Michigan is the only state in the union When the Constitution was writ- suing a formal dress code. I have to Re: Dime Building now ten, “well-regulated” meant “to put with partisan ballots. An open primary would reduce the influ- wonder where the graduates’ com- A nice bit of gladhanding by titans in good order,” not that the feds get mon sense is, but more important- ence of Republican and Democrat political plays. of the industry. Before the build- to regulate. The first 10 amendments ly, where is their parents’ common How to replace that process is still something to debate, but ing was fixed up, some counter- are a list of things the federal gov- sense? we support taking the first step to reduce the influence of party culturalists referred to the build- ernment cannot do. … Canada does RobertArch ing as the “Dime Bag Building.” not have a Second Amendment. politics on judge selection. Timothy Dinan They also restrict press freedom in See Talk, Page 9 KEITH CRAIN: I sure hope Detroiters don’t get a camel I was listening to Paul W. Smith many of Wayne Coun- cil and in the mayor’s of- group can get anything accom- make the decisions, and it sure on the radio the other morning. He ty’s politicians, he un- fice. Now we’re adding plished. looks like this structure is going to was talking to L. Brooks Patterson, derstands and appreci- more to the mix to help My guess is that they’ll be drop- be testing democracy to its limits. Oakland County’s executive, who ates the importance of a run the city. The steps to ping like flies after a bit when I have to admit that I have not announced that he’s running for strong and healthy city fix the city will need all they, the newly appointed folks, re- read the consent agreement reso- yet another term. Oakland is well of Detroit. He wants De- kinds of approvals. alize how impossible it will be to lution the City Council and mayor served by him, and I don’t envy the troit to be a great city. When you get all get anything done in the city. approved. But without a single, Democrat who runs against him. He started to tick off through, Brooks noted, Although I say it tongue in strong leader, it’s going to be near- Brooks, who certainly is one of the folks who are going it means about 20 peo- cheek, I have always believed that ly impossible to accomplish much. the most astute politicians in to have a piece of con- ple are going to be run- a benevolent dictator is the most ef- There is a big difference be- Southeastern Michigan, and per- trol for the new struc- ning the city of Detroit. fective form of government. Partic- tween a democracy and a represen- haps the state, had some very in- ture of the city of De- What a mess. ularly if I happen to be the dictator. tative democracy. teresting comments about the troit, and it’s nothing As much as a lot of But one of the most important is- We are going to have to keep our structure at the city of Detroit. but a potential nightmare. people didn’t like the idea of an sues facing the city of Detroit is fingers crossed that somehow this It should be noted that although We already have some very emergency manager, it seems like simply going to be who’s in charge? all works. But a lot of us are ner- Patterson has never been pals with strong personalities on City Coun- nothing short of a miracle if this Someone has to be the boss and vous. 20120507-NEWS--0009-NAT-CCI-CD_-- 5/3/2012 3:06 PM Page 1

May 7, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Legislature should approve transit authority

Good mass transit puts people approval in the developers and government offi- starts, conflicting messages and first by planning with them and Legislature, can cials eagerly take credit for them. repeated failures have kept people for them, connecting people to hos- move the con- These systems are built by govern- from believing that those at the top pitals, colleges, jobs and shopping. versation from ing bodies that all are different; can break through the barriers Good transit systems come from the political and some oversee the planning and op- that have always kept good transit sound plans based on shared vi- technical level eration of multi-modal systems from them. It’s been nearly three sions and built with community to the customer with one operator, others oversee years since we tried to organize a support. The typical top-down ap- level. The au- systems with multiple operators Regional Transit Authority, and proach leaves people largely in the thority will es- that are public and private, union transit service has only gotten dark about how good transit would tablish a process and nonunion. worse. improve their daily lives. The that asks ordi- Do they argue about the compo- We urge the Legislature to plan many failed attempts to build good Marie Donigan Scott Anderson Neil Greenberg nary people to sition of their governing bodies? a system that works for the people. transit in the region have confused people will use it and be willing to become stakeholders in a system Maybe, but while they’re doing it, Enact the legislation, and get the people and caused them to stop be- pay for it. that meets their needs and im- they’re getting the job done. job done right this time. lieving it’s even possible in metro No organization that currently proves their lives. Successful transit planning gar- Marie Donigan is a former state Detroit. exists in metro Detroit can make Dozens of communities around ners a broad coalition of support, representative, Scott Anderson is a Our failures have sustained our transit system better. The Re- the country are improving their but the public in metro Detroit transit consultant and Neil Green- many indignities. Job fairs are gional Transit Authority, awaiting transit systems. Elected officials, hasn’t yet signed on. Stops and berg is a transit mapper. held in places that don’t have tran- sit, excluding thousands who want to improve their lives but don’t have a car, and hospitals are built outside transit regions, denying many people access to health care that’s usually taken for granted. Transit customers in metro De- troit get rained on while waiting for a bus and are left to gaze anxiously down the street, sometimes for hours, to see if their bus is coming. What’s the We should be horrified about this. Good transit utilizes modern, people-centered technology that builds a culture of inclusion, re- spect and responsibility so that connection TALK CONTINUED ■ From Page 8 Re: Smartphones, dumb people between I’ll admit I’m addicted to Face- book and Twitter, but I know enough to close either when the oc- casion calls for it. It really is com- mon sense and courtesy — not age. I’m “old” but realize that when you go to hear a speaker, you need to at the very least look engaged. My fa- Norway vorite, however, is still the cell- phone ringing and being answered in church. drmolly13 Re: Bing’s budget plan: 2,500 layoffs, and $250 million in cuts What a great idea ... ’cause the city services are so extensive and overly generous (end sarcasm). I moved out 10 years ago because of the lack of responsiveness by public safety departments and have no Michigan? plans to move back soon. Alex Hardesty

Re: Great Indoors to close Classic example of survival of the fittest. Oakland Community College. Yes, OCC. In the last year, OCC has worked with five Linda in West Bloomfield different companies – one from as far away as Norway – to help bring 529 new jobs to Re: Will dollars decide bridge battle? the region. By collaborating with the county and state, OCC secured $7.75 million in Will someone explain to that old training incentives – funding that gave Oakland County a decided advantage over other man that Canada will never permit regions. OCC will even provide the technical training needed to prepare workers for these his second span to cross the river. new jobs. Why place so much emphasis on the economic growth of our community? Hanker Because at OCC, community is our middle name. Small nonprofit attracts financial support from high-profile funders Congratulations to the Women’s Caring Program on making a posi- tive impact. It’s great to see how a www.oaklandcc.edu small foundation can be so influen- tial by doing the right thing. C PITTS DBpageAD.qxp 4/27/2012 11:50 AM Page 1

for those who make, sell,build,support, create, service, supply, repair, give, design, deliver, produce and contribute to our economy, we say thank you.

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PNC Bank is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Banking products and services offered by PNC Bank, National Association, a wholly owned subsidiary of PNC and Member FDIC. © 2012 The PNC Financial Services Group, Inc. All rights reserved. 20120507-NEWS--0011-NAT-CCI-CD_-- 5/3/2012 3:04 PM Page 1

May 7, 2012 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Daniel Duggan TIMES A-CHANGIN’ ON CODE UPDATES? covers real estate. Business split on legislation, Page 13 Call (313) 446-0414 or write dduggan @crain.com. real estate

Daniel Duggan Building up to the middle After so many years at the bottom of the pile, Michigan’s construction industry is now in a happy place: the middle. The state showed a drop of 0.1 percent in construction employment from March 2011 to March 2012 — putting us at a mediocre 27th in year- over-year growth. Metro Detroit is sitting at No. 94 out of 337 markets and posted a 4 percent year-over-year improvement in the number of jobs. Yep, the region is right in the middle. People can celebrate that we’re no longer the most rotten construction market in the country. Whether the region and state’s growth of construction continues, however, is a question mark. Ken Simonson, the Washington, D.C.-based chief economist for the Associated General Contractors of America, said the outlook is positive for the U.S. construction industry. He predicts increases in residential and nonresidential construction in the range of 5 percent to 15 percent. KENNY CORBIN Mike Damitio, a senior vice president with Bloomfield Hills developer Trans Inns Management, says the Whitney Building will be “classically “For Michigan, for Southeast restored with a contemporary amenity package.” Michigan, it remains to be seen whether the upswing we’ve seen in the last year will continue,” he said. “It might have hit the pause button.” That being said, Simonson added that there are hot spots in construction: market-rate apartment buildings, logistics-related industries and the power and energy sector — including Rooms to grow wind and other new-energy projects. Driving the next year of construction projects in the will be the commercial sector. The days of public projects are gone, he said. Hotel projects sprout as economy and lending thaw The AGC did a study with 1,300 BY JOHN HALL contractors responding across the country. They were asked if they have SPECIAL TO CRAIN’S DETROIT BUSINESS done a project related to the stimulus he Detroit-area hotel market contin- funding, and if they think they will do ues to show steady improvement, with stimulus projects in the near future. T new hotels under construction or Fifty-one percent said they have planned. Projects in Detroit, Novi and worked on a stimulus project, but just Ann Arbor — and a possible development 12 percent think they’ll do another one. in Birmingham — highlight the trend. Taking it further, he said, private An improvement in the climate for fi- higher education institutions have been nancing new projects, and the overall building, while public ones have not. trend of growing hotel room revenue, are “Private higher education projects helping the local hotel construction are up 48 percent from February of pipeline. 2011 to February 2012,” Simonson said. “Public higher education projects are down 4 percent.” Construction in the D Anything tied to a public budget, In Detroit, the like a $50 million building, is likely to The Suburban Collection Showplace in Novi plans to add an attached 94,000-square-foot hotel is planned as a mixed-use development to the convention center, depicted in this artist’s rendering. get the axe for now. including a hotel. The building on Wood- While there aren’t many office ward Avenue at Grand Circus Park in De- dents. sented the fourth-largest RevPAR in- buildings, and industrial construction troit is being redeveloped, with comple- “This is a complete revitalization of crease among the top 25 U.S. markets in is slow, there are positive signs in tion planned for 2013. The project, one of the city’s architectural treasures,” 2011. These trends have continued into homebuilding. pending financing, will contain ground- he said. 2012 as RevPAR has grown another 6.5 There were more new homebuilding floor retail, a 136-room Aloft hotel and 108 Damitio said an increase in companies percent though February compared with permits taken out in the first quarter apartments. adding staff or moving operations to the same period in 2011. of 2012 than in any first quarter in the Mike Damitio, senior vice president of is good news for the The Detroit occupancy rate stands at past five years, according to a report acquisitions and development for Bloom- corporate hotel market. 58.6 percent, up from 56.6 percent a year by Clarkston-based Housing field Hills-based Trans Inns Management According to Nashville-based Smith ago. For the region, the rate is 58.8, com- Consultants Inc. Inc., the developer of the project, said the Travel Research, metro Detroit’s lodging pared with 57.3 percent. So, a market is starting to emerge building will be “classically restored with market in 2011 showed year-over-year The average room rate is $77.09 a night, that’s not dead and not roaring. Right a contemporary amenity package tailored growth in revenue per available room in the middle — not at the bottom. to today’s hotel guest and Detroit resi- (RevPAR) of 13.4 percent, which repre- See Hotels, Page 12 20120507-NEWS--0012-NAT-CCI-CD_-- 5/3/2012 5:37 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS May 7, 2012 Focus: Real Estate Hotels: Economy thaws, plans sprout ■ From Page 11 compared with $75.73 a year ago, for the city of Detroit; and $77.67, PLANS AND POSSIBILITIES up from $76.12, for the region. Hotel projects planned in Southeast Michigan: Corporate Fleet Services. The construction growth is also detailed in March 2012 data report- Ⅲ David Whitney Building, Detroit: region includes these projects, ed by STR that counts Aloft plus Mixed-use development with totaling 703 rooms: Any other eet leasing service planned 136-room Aloft hotel. Á seven other hotel projects under Ⅲ Troy: Holiday Inn Express Ⅲ Suburban Collection Showplace, construction or in planning in & Suites would be total vanity. Novi: 94,000-square-foot hotel. Southeast Michigan, including Ⅲ Southfield: Staybridge Suites Ⅲ TownePlace Suites by Marriott, Monroe and St. Clair counties, Detroit • Experts since 1963 in managing and À nancing Ann Arbor; Hilton Garden Inn, Ann automobile, truck, and specialty equipment Á eets with another three in pre-plan- Arbor: A combined 227 rooms. Ⅲ Southgate: Hampton Inn Detroit ning. Ⅲ throughout the United States and Canada, with Ⅲ Birmingham: There is Port Huron: Holiday Inn Express speculation that a hotel & Suites international services available through our global Suburban building development is planned at Maple Ⅲ Detroit: Value Place and Woodward. business partners. There are plans for additional Ⅲ Monroe: Holiday Inn Express hotel rooms in the suburbs, as well. Other projects & Suites Monroe East • CertiÀed by GM, Ford, Chrysler and the import In Novi, the Suburban Collection A March 2012 Smith Travel Ⅲ Rochester Hills: Holiday Inn manufacturers Showplace plans to add an attached Research report on the Detroit Express & Suites 94,000-square-foot hotel to the con- vention center, on Grand River held in check for the past three Adam McGaughy, executive • All available Áeet discounts, rebates, and incentives east of Beck Road. years by the lack of financing,” he vice president of Chicago-based provided by the manufacturers are incorporated into Blair Bow- said. “It appears that financing is Jones Lang LaSalle Hotels, said De- our nationally competitive rates man, owner of starting to become available for troit’s recovering economy should the center, said hotel developers, which could lead help when it comes to financing his business al- to more hotel projects in the new projects. He said he expects • And the “no fees” tagline? We mean it. You get expert ways planned to pipeline — provided the demand strong improvement in operating Áeet management for one rate with no hidden fees. add an on-site generators exist.” fundamentals. hotel when the None. time was right, to accommodate 313-868-5000 :: corporate- eet.com the needs of Á meeting, conven- Bowman tion and confer- ence users. The hotel is planned for completion in spring/summer 2013. “We are encouraged by the im- proving, albeit slow, economy, and our construction of an attached ho- tel and additional meeting space is to attract new major convention and conference users that will cur- rently not consider our facility due to the lack of an on-site headquar- ter hotel,” he said. Three miles south of downtown Ann Arbor, excavation for two new hotels began in November 2011 near , north of I-94. The Ray- mond Group of Middleton, Wis., is de- veloping the TownePlace Suites by Marriott and the Hilton Garden Inn on 8 acres. The hotels will add a com- bined 227 rooms to the Ann Arbor hotel market, which currently has 3,484 rooms in 30 properties. Chris Cheng, city planner for Ann Arbor Planning and Development At the heart of Here you will enjoy casual or Services, said both hotels are cur- the are fine dining, annual club events rently under construction and the two Donald Ross designed and many fun activities for specific completion date is not championship courses. The your family and guests. known. golf facilities are complete In Birmingham, there is specu- lation that a hotel development is with a well stocked pro Our promise is to deliver the planned at Maple and Woodward. shop, practice utmost in Currently Birmingham has two range and an satisfaction hotels, with a combined total of 214 outstanding with an rooms. Birmingham Planning Di- CATERING group of outstanding rector Jana Ecker confirmed the sale of the property, saying she has teaching golf “Providing something special for the only “heard talk of a hotel develop- tournament was getting hard. We professionals. experience ment.” contacted Kosch and were very happy while Ken Koza of Group 10 Manage- with the staff & service. The Pig Roast The rambling building ment Co. Inc., the purchaser of the was a big hit and great end to the day. Old English camaraderie building, said plans for the site are Nothing but smiles from ear to ear. not yet determined. Way beyond our expectations.” Style clubhouse designed by in a family friendly is remarkable environment. At DGC you - Philip Shelton - Tournament Director with its sweeping wings and can have it all. Contact us to Cautious optimism U.S. Amateur Disc Golf Championship numerous terraces and patios. inquire about joining today. The small wave of construction in metro Detroit is partly due to an improvement in financing options. Catering  Food Service Management 'HWURLW*ROI&OXE Jeff Higley, vice president of dig- Detroit’s First — Detroit’s Only — You Belong at DGC ital media and communications for STR Global, said financing is be- 30 years of exceeding expectations. 17911 Hamilton Road — Detroit, MI 48203 ginning to loosen up across the Contact Carol Koehn, Membership Director, country, including in Detroit. 248.608.0690 at (313) 927-2457 or [email protected], “Like most areas of the country, or visit www.detroitgolfclub.org. hotel development (here) has been 20120507-NEWS--0013-NAT-CCI-CD_-- 5/3/2012 3:04 PM Page 1

May 7, 2012 CRAIN’S DETROIT BUSINESS Page 13 Focus: Real Estate Biz split on bill to alter Back-To-Business Loan building code updates Timing could go from 3 years to 6

BY MIKE TURNER ing costs associated with new code SPECIAL TO CRAIN’S DETROIT BUSINESS requirements and providing them stability by lengthening the time LANSING — Business groups construction rules stay on the 10-Year Fixed Rate disagree over the financial and books. regulatory impact of legislation He said that although the ICC Owner Occupied Commercial Real Estate that proposes to change how often operates on a three-year cycle, the state updates its construction there is no national standard on 5.75% Promotional Rate code. how often states update their Those lobbying for the bill, in- codes, and most states are on flexi- Contact Jenny Meier, EVP at 248.283.6461 or [email protected] cluding the Michigan Association of ble schedules. Home Builders, say lengthening the Charles schedule from the current three Owens, Michi- years to as many as six would save gan state direc- Who said banks aren’t making loans? money and provide more regulato- tor for the Na- Our bank is ry stability. tional Federation — with favorable rates and longer terms. Others, such as the Michigan of Independent So let’s get back to business! Manufacturers Association, say the Business, which longer time frame would actually also supports make it harder for companies that the legislation, make building materials to sell said a flexible new products. Owens code cycle Building inspectors and fire offi- would ease the banking built around you cials oppose the bill, citing safety regulatory burden on businesses. concerns and possible higher in- “We think this is part of the www.bankofbirmingham.net surance costs. whole process of looking at regula- The Senate Regulatory Reform tions and how they impact small Loan Program is subject to Bank’s funding availability, underwriting and approval. Rate may vary depending on amortization. Promotional Rate is determined weekly. Loan subject to Bank’s prepayment penalty. Loans must close on or before 7-31-12. Committee held an initial hearing businesses,” he said. Thursday on House Bill 4561, But Mike Johnston, vice presi- which the GOP-controlled House dent of government affairs for the passed 68-39 on Dec. 1 mostly along Michigan Manufacturers Associa- party lines. tion, said Michigan’s three-year The legislation, sponsored by cycle is working well and there’s Rep. Joe Haveman, R-Holland, no compelling reason to change it. would lengthen the time in which A longer gap between code up- the Department of Licensing and Reg- dates would ulatory Affairs must update the make it difficult codes governing building con- for manufactur- struction and use. ers that install Since 1980, the state has been on new technology a three-year cycle for updating its in their plants to codes. The state bases its stan- know if the pro- dards on national ones set by the ject will meet re- International Code Council, the as- quirements sociation that develops codes when new rules adopted by most states. Typically, are issued. Johnston states adopt most of the standards “It gets in the with a few amendments. way of doing something innova- But instead of going with a tive,” he said. three-year review, Haveman’s bill In addition, many code changes would allow LARA to go as long as are safety improvements or energy six years between reviews. savers that, while perhaps raising That’s a reasonable length, con- initial building costs, save home- sidering that most updated code owners money in the long run, books contain only minor changes Johnston said. from previous Also, many Michigan compa- years, said Lee nies make building materials, and Schwartz, exec- builders might not use their latest utive vice presi- products if they’re not reflected in dent for govern- the code, he said. ment relations Schwartz said provisions in the at the home- bill allow for the use of new prod- builders’ associ- ucts and technology. ation. Michael O’Brian, chief of the “We get about Brighton Area Fire Authority and presi- six substantive dent of the Michigan Fire Inspectors Schwartz changes in the Society, said Michigan fire depart- code every three years,” he said. ments’ Insurance Service Office rat- “None of these are immediate life- ings could suffer if construction safety changes.” codes are deemed out of date. Schwartz said Michigan govern- The ratings, which gauge a fire mental building departments and department’s ability to limit the businesses involved in home con- costs of fires, are a consideration struction paid a total of $13 million property insurers use when set- in 2009 on new code books pub- ting rates. lished by the ICC. The House Fiscal Agency’s Schwartz said the proposed leg- analysis of the bill determined that islation would give LARA more LARA’s would save the state a leeway to revise Michigan’s code modest amount in administrative only when substantial changes are costs, stemming from less-frequent necessary, saving builders train- updates. 20120507-NEWS--0014-NAT-CCI-CD_-- 5/3/2012 3:53 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS May 7, 2012

CRAIN'S LIST: LARGEST RESIDENTIAL BROKERS Ranked by 2011 gross sales No. of offices/ Company Gross sales Gross sales No. of residential No. licensed brokers Average sales Address ($000,000) ($000,000) transactions and registered per office Rank Phone; website Top executive 2011 2010 closed in 2011 sales representatives ($000,000) Real Estate One Inc. Richard Elsea $2,183.1 $2,117.1 17,252 32 $68.2 1. 25800 Northwestern Highway, Suite 100, Southfield 48075 chairman 1,356 (248) 208-2900; www.realestateone.com Coldwell Banker Weir Manuel Kelly Sweeney 738.2 746.6 4,709 15 49.2 2. 2565 W. Maple Road, Suite 100, Troy 48084 CEO 398 (248) 644-6300; www.cbwm.com Charles Reinhart Co. David Lutton 518.9 468.5 2,267 7 74.1 3. 2200 Green Road, Suite E, Ann Arbor 48105 president 170 (734) 747-7888; www.reinhartrealtors.com Century 21 Town & Country John Kersten 372.8 408.9 2,809 6 62.1 4. 48680 Van Dyke Ave., Shelby Township 48317 president 293 (248) 608-5000; www.century21town-country.com Edward Surovell Realtors Edward Surovell 359.9 378.9 2,841 10 36.0 5. 1884 W. Stadium Blvd., Ann Arbor 48103 president 160 (734) 665-9800; www.surovell.com Re/Max Classic Carlina Boji 323.1 326.1 2,863 4 80.8 6. 29630 Orchard Lake Road, Farmington Hills 48334 broker and owner 104 (248) 737-6800; www.detroitmetrorealestate.com Hall & Hunter Realtors Dennis Wolf 282.2 233.3 915 1 282.2 7. 442 S. Old Woodward, Birmingham 48009 owner and CEO 76 (248) 644-3500; hallandhunter.com SKBK Sotheby's International Realty Douglas Hardy 282.0 274.0 576 1 282.0 8. 348 E. Maple Road, Birmingham 48009 chairman 92 (248) 644-7000; skbk.com Re/Max Platinum Joseph DeKroub Jr. 272.5 231.4 2,054 5 54.5 9. 6870 Grand River Ave., Brighton 48114 CEO 156 (810) 227-4600; www.only-remax.com Real Estate Affiliates Keller Williams David Botsford 217.8 193.6 1,718 2 108.9 West Bloomfield & Commerce broker and CEO 211 10. 30500 Northwestern Highway, Suite 300, Farmington Hills 48334 (248) 626-2100; kellerwilliamswb.com Century 21 Today Inc. Douglas Hardy 201.4 247.7 1,174 4 50.3 11. 28544 Orchard Lake Road, Farmington Hills 48334 president 216 (734) 462-9838; www.century21today.com Keller Williams Realty Novi/Northville Peter Costa 183.0 165.9 1,369 2 91.5 12. 39500 Orchard Hill Place, Suite 100, Novi 48375 broker and operating 180 (248) 380-8800; www.kwnorthville.com principal

This list of leading residential brokers is an approximate compilation of the leading brokers in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Unless otherwise noted, information was provided by the companies. NA = not available.

LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists

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May 7, 2012 CRAIN’S DETROIT BUSINESS Page 15 CRAIN'S LIST: LARGEST NONRESIDENTIAL PROPERTY MANAGERS By square feet under management in metro Detroit Total square feet Total square feet nonresidential nonresidential property under Total square feet property under management nonresidential Company management in outside metro property under Address metro Detroit Detroit management Rank Phone; website Top local executive(s) Jan. 2012/2011 Jan. 2012 Jan. 2012 Major properties under management Jones Lang LaSalle Inc. Ronald Gantner 28,807,000 79,245,000 108,052,000 General Motors, Whirlpool, Bank of America, Continental Automotive 600 , Suite 1260, Detroit 48243 executive vice president 17,470,000 Systems, Beaumont Hospital 1. (313) 961-6650; www.jll.com

Farbman Group/NAI Farbman Andrew Farbman 25,500,000 7,000,000 32,500,000 Bingham Office Center, New Center One, , Sheffield Office 28400 Northwestern Highway, fourth Floor, Southfield 48034 president and CEO 24,500,000 Park, Metro Commerce Center, Clark Street Technology Park, Oakland 2. (248) 353-0500; www.farbman.com Commons, 205 W. Randolph, 216 W. Jackson, 79 W. Monroe

CBRE Group Inc. John Latessa 20,517,227 21,258,079 41,775,306 Renaissance Center, Lear, Dow Chemical, Volkswagen 2000 Town Center, Suite 500, Southfield 48075 managing director 16,992,219 3. (248) 353-5400; www.cbre.com

Redico LLC Dale Watchowski 16,372,523 3,966,882 20,339,405 One Towne Square, Independence Marketplace, Waterside Marketplace, One Towne Square, Suite 1600, Southfield 48076 president, CEO, COO 11,545,686 4. (248) 827-1700; www.redico.com

Ford Motor Land Development Corp. Donna Inch 13,236,922 0 13,236,922 Ford world headquarters, Regent Court, Corporate Crossings, Fairlane Plaza, 330 Town Center Drive, Suite 1100, Dearborn 48126 chairman and CEO 13,921,204 Fairlane Office Centre, Fairlane Business Park 5. (313) 323-3100; www.fordland.com

Ashley Capital LLC Susan Harvey 13,125,000 4,000,000 17,125,000 Brownstown Business Center, Romulus Business Center, Livonia Corporate 2575 S. Haggerty Road, Suite 500, Canton Township 48111 senior vice president 13,000,000 Center 6. (734) 394-1900; www.ashleycapital.com

Friedman Integrated Real Estate Solutions LLC David Friedman 11,101,545 5,219,687 16,321,232 Penobscot Building, Mars Corporate Center, Franklin Place, North Valley, 34975 W. 12 Mile Road, Farmington Hills 48331 president and CEO 11,381,217 Novi Research Park, Laurel Office Park I & III, Wilshire North & West, 7. (248) 324-2000; www.friedmanrealestate.com Pinnacle, Commerce Center, Forum at Gateways, Arborland Mall, Valley View, Bay Valley Grubb & Ellis Management Services Frederick Liesveld 9,833,763 6,274,477 16,108,240 PNC Center, General Motors, Earhart Corporate Center, Farmington Hills 26555 Evergreen, Suite 500, Southfield 48076 executive vice president, regional 10,237,659 Corporate Campus, Seven Mile Crossing, Victor Corporate Center, Allied 8. (248) 357-5756; www.grubb-ellis.com/detroit director of management services Commerce Center

McKinley Inc. Albert M. Berriz 6,617,675 7,945,882 14,563,557 McKinley Towne Centre/Liberty Square, Northeast Corporate Center, Huron 320 N. Main St., Suite 200, Ann Arbor 48104 CEO 2,845,675 Village Shopping Center, Bridgewater Place, Crowne Pointe 9. (734) 769-8520; www.mckinley.com Albert L. Berriz vice president and managing director, residential real estate Signature Associates Inc., A Cushman & Steve Gordon 6,508,033 2,633,255 9,141,288 Automation Alley, Troy; 45000 Helm St., Plymouth; Dana Corp., 6938 Elm president 7,178,749 Valley, Kalamazoo; Fairfield Drive, Northwood, Ohio; Maple Research, Troy; Wakefield Alliance Member John Salsberry Civic Plaza, Southfield; First Center Office Plaza, Southfield; Four SeaGate, 10. 1 Towne Square, Suite 1200, Southfield 48076 director of property management Toledo, Ohio; Providence MOB, Novi; UnaSource; Majestic Plaza, Warren; (248) 948-9000; www.signatureassociates.com Airport Square, Toledo, Ohio; Knoll Crest Shopping Center, Port Clinton, Ohio Broder & Sachse Real Estate Services Inc. Richard Broder 6,371,201 675,825 7,047,026 Lyon Town Square, CTP Newco, South Flint Plaza, Logan Square, Burlington 260 E. Brown St., Suite 200, Birmingham 48009 CEO 6,208,846 Square 11. (248) 647-4100; www.brodersachse.com

Ramco-Gershenson Properties Trust Dennis Gershenson 6,200,000 13,800,000 20,000,000 Tel-Twelve, Southfield; West Oaks I and II, Novi; Auburn Mile, Auburn Hills; 31500 Northwestern Highway, Suite 300, Farmington Hills president and CEO 6,200,000 Hunter's Square, Farmington Hills 12. 48334 (248) 350-9900; www.rgpt.com Taubman Centers Inc. Robert Taubman 4,861,000 22,040,000 26,901,000 , Dearborn; The Mall at Partridge Creek, Clinton 200 E. Long Lake Road, Suite 300, Bloomfield Hills chairman, president and CEO 4,851,000 Township; Great Lakes Crossing Outlets, Auburn Hills; , 13. 48304-2324 Novi (248) 258-6800; www.taubman.com First Industrial Realty Trust Inc. John Strabel 4,156,530 582,090 4,738,620 Airport Park, Romulus (658,578 sf); Rochester Hills Executive Park (297,711 23042 Commerce Drive, Farmington Hills 48335 regional director 4,965,726 sf); Farmington Freeway Industrial Park (227,709 sf) 14. (248) 357-4050; www.firstindustrial.com Thomas Civitanova operations director Kirco Management Services LLC A. Mathew Kiriluk II 3,980,758 2,189,671 6,170,429 Brewery Park, Columbia Center I and II, Oak Hollow, Baldwin Commons, 101 W. Big Beaver Road, Suite 200, Troy 48084 president 3,979,300 Village Lakes 15. (248) 680-7180; www.kirco.com

Burton-Share Management Co. Peter Burton 3,320,796 560,072 3,880,868 Arboretum Office Park, Farmington Hills; Bingham Office Park, Bingham 30100 Telegraph Road, Suite 366, Bingham Farms 48025 president 3,507,348 Farms; 325 N. Old Woodward, Birmingham 16. (248) 647-8811; www.burton-katzman.com

Nemer Property Group Inc. Larry Nemer 2,600,000 0 2,600,000 Galleria Officentre, Troy Place, Omni Officentre 26877 Northwestern Highway, Suite 101, Southfield 48033 president 2,600,000 17. (248) 352-2080

Hines Interests LP John Wood 2,568,000 120,000,000 122,568,000 Compuware world headquarters, Coleman A. Young Municipal Center, , Detroit 48226 managing director 7,018,000 Detroit Public Safety headquarters, One Northwestern Plaza 18. (313) 568-5600; www.hines.com

Pogoda Management Co. Maurice Pogoda 2,325,000 625,000 2,950,000 National Storage Centers 30301 Northwestern Highway, Suite 400, Farmington Hills president 2,385,000 19. 48334 (248) 855-9676; www.pogodaco.com Schostak Bros. & Co. Inc. Robert Schostak, co-CEO 2,290,941 1,726,219 4,017,160 Wonderland Village, Laurel Park Office, Maccabees Center, Shelby Corners, 17800 Laurel Park Drive North, Suite 200C, Livonia 48152 David Schostak, co-CEO 2,299,970 Northpointe Shopping Center 20. (248) 262-1000; www.schostak.com Mark Schostak, president and COO Blackstone Property Management Kimberly Heslep 2,153,804 0 2,153,804 of Michigan LLC property manager 2,153,804 21. 2000 Town Center, Suite 350, Southfield 48075 (248) 350-2222; southfieldtowncenter.com Bedrock Real Estate Services LLC Jim Ketai 2,030,566 0 2,030,566 , Chase Tower, Madison Building, Dime Building, 1092 Woodward Ave., Detroit 48226 managing partner NA 1500 Woodward Ave., 1520 Woodward Ave., 1528 Woodward Ave., 22. (888) 300-9833; http://bedrockmgt.com 1550 Woodward Ave., 160 Fort St. partner

A property manager oversees all financial, administrative, contractual, maintenance and daily operations for the interior and exterior of properties. This list is an approximate compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies with headquarters in the Detroit area are listed with their total property under management. Companies outside the area are ranked by property managed by their Detroit offices only. This is not a complete list but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. LIST RESEARCHED BY BRIANNA REILLY DBpageAD.qxp 4/30/2012 11:33 AM Page 1

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May 7, 2012 CRAIN’S DETROIT BUSINESS Page 17

CALENDAR Make July TUESDAY recognition and four tickets to VIP re- CRAIN’S TO HONOR EXEMPLARY ception). Contact: (877) 633-3500; web- MAY 8 site: www.inforummichigan.org. extra suite Marketing Roundtable — Return on CFOSATJUNE 12 EVENT WBE Certification Orientation. 9-11 Marketing Investment. 5-7 p.m. Ann Crain’s Detroit Business,in Arbor Spark. With Kim Kachadoorian, a.m. May 23. Learn about the benefits Special savings partnership with FEI Co., will host and process of becoming a Women’s Geeky Marketer; and others. Spark its sixth CFO of the Year awards Central, Ann Arbor. Free. Contact: Business Enterprise. Oakland County on Party and Legends Suites July 2 - 6 (734) 761-9317; website: www.annar 1:30-9 p.m. June 12 at The Inn at Business Center, Waterford Town- borusa.org. St. John’s, ship. $25. Contact: Karen Deaver-Lear, Plymouth. Title (248) 858-0783; email: smallbus sponsor is [email protected]; website: www.oak WEDNESDAY Rehmann LLC. The gov.com. 2011 event MAY 9 attracted more EISEM Entrepreneur’s Forum. 8-10 a.m. Meet the Purchasers. 8-11:30 a.m. De- than 400 May 24. Entrepreneurial Initiative of troit Regional Chamber. With repre- attendees. Southeast Michigan. With Brian West, sentatives from city of Detroit, Com- Finalists will be featured in the May CEO, Concept Factory, and others. cast, Ford Motor Co. and Wayne 28 issue of Crain’s and online. Automation Alley headquarters, County Airport Authority. Renais- Troy. Free. Contact: (800) 427-5100; sance Conference Center, Detroit. $30 Tickets are $60 for current CDB email: [email protected]; chamber members, $70 nonmembers. subscribers, $55 for people in website: www.automationalley.com. Contact: Marianne Alabastro, (313) groups of 10 or more, and $85 for nonsubscribers; an $84.50 ticket 596-0479; email: malabast@detroit Mackinac Policy Conference. 11 a.m.-10 Taste the “suite” life — chamber.com; website: www.detroit includes a one-year CDB p.m. May 29; 8:30 a.m.-11 p.m. bring your group to enjoy a chamber.com. subscription. May 30; 8 a.m.-8 p.m. May 31. Detroit Tigers game in a specially-priced For more information, call Regional Chamber. With Detroit May- luxury suite. Includes great ESD Fundraising Breakfast. 8-9 a.m. (313) 446-0300, email or Dave Bing; Wayne County Executive Engineering Society of Detroit. With [email protected] or visit Robert Ficano; and others. Grand Ho- amenities like indoor and outdoor Christopher Webb, co-founder, ESD In- www.crainsdetroit.com/events. tel, Mackinac Island. $1,700 member, seating, private restrooms and more. stitute; Darlene Trudell, executive vice $600 spouse, $2,575 nonmember, $700 president, ESD; and others. Shriners Detroit. Tango’s at the Westin, South- nonmember spouse. Contact: Mari- Silver Garden Events Center, South- field. Free; register on-site. Contact: anne Alabastro, (313) 596-0479; email: field. Free; donations requested. Con- Tim Walker, (248) 353-0735, ext. 115; [email protected]; web- tact: Lori Birman, (248) 353-0735, ext. email: [email protected]; website: site: mpc.detroitchamber.com. 120; email: [email protected]; website: www.esd.org. www.esd.org. National Veterans Small Business Con- Inforum Annual Meeting. 11:30 a.m.- ference and Expo. All day, June 26-29. Crain’s 20 in their 20s. 5:30-9 p.m. 1:30 p.m. May 17. Will announce in- Department of Veterans Affairs. With Crain’s Detroit Business. The recogni- coming boards of directors for Info- John Gingrich, chief of staff, U.S. De- tion program celebrates the best and rum and Inforum Center for partment of Veterans Affairs; Eric brightest under 30 whose creativity Leadership. With Charlotte Beers, ad- Shinseki, secretary, U.S. Department of and entrepreneurial spirit are con- vertising pioneer and longtime Veterans Affairs; and others. Cobo SELECT FROM FIVE DIFFERENT GAMES tributing to a new energy in Southeast agency CEO. Ford Motor Co. Confer- Center, Detroit. $375-$400 by June 20; +6-:t5*(&347458*/4 Michigan. Colony Club, Detroit. $45 ence and Event Center, Dearborn. $55 $450-$475 onsite. Contact: (202) 505-4838; current CDB subscriber, $40 groups of members, $70 nonmembers, $700 table email: info@nationalveteransconfer +6-:t5*(&347430:"-4 10 or more, $70 nonsubscriber, $60 spe- of 10 (reserved seating), $900 premier ence.com; website: www.nationalvet For more info, call or visit our website. 313.471.BALL cial CDB subscription offer. Contact: table sponsor (reserved seating, logo eransconference.com. Kacey Anderson, (313) 446-0300; email: [email protected]; website: www.crainsdetroit.com/events. THURSDAY MAY 10 An Evening With Bob Lutz. 6:30-9:30 p.m. Eastern Michigan University, Detroit-Windsor Chapter of the Amer- ican Foundry Society, others. With Bob Lutz, former General Motors vice chairman for product development. $50, includes dinner and a copy of Lutz’s book Car Guys vs. Bean Coun- ters. Contact Natalie Simms, (734) 481- 2320; email: [email protected]. coming events; website: www.afsde You Deserve More Thought Per Square Foot troit.com.

Good Jobs, Green Jobs Midwest. 8 a.m.-8 p.m. May 10; 8 a.m.-5 p.m. May 11. Sheet Metal and Air Conditioning Contractors National Association, Metropolitan Detroit Chapter. With David Foster, president, BlueGreen Alliance Foundation; Michael Brune, executive director, Sierra Club; and others. Detroit Marriott Renaissance Center. $195. Website: www.greenjob sconference.org. COMING EVENTS SE Discover Inforum. 7:30-9:30 a.m. May 15. An overview of Inforum, in- cluding events, seminars, leadership development, committees and affini- ty/networking groups. Art Van Furni- ture, Warren. $10 Inforum members, $20 nonmembers. Contact: (877) 633- 3500; website: www.inforummichi Real Estate Strategy gan.org. Tenant Representation Detroit Economic Club. 11:30 a.m.-1:30 p.m. May 16. With Dan Varner, CEO, Buyer Representation Excellent Schools Detroit; and Barry Schuler, former CEO, America Online and current board member, Knowl- Project Feasibility edge Works. Westin Book Cadillac, Good real estate deals are at lower lease rates; great ones are Detroit. $45 DEC members, $55 guests Construction Oversight of members, $75 nonmembers. Con- aligned to the needs of your organization. Let our experienced tact: (313) 963-8547; email: info@econ club.org; website: www.econclub.org. real estate department for hire show you what to ask for. Incentives Lease Administration Third Thursday Networking. 4-6 p.m. May 17. Southfield Area Chamber of pmcresa.com 248.223.3500 Commerce; Engineering Society of 20120507-NEWS--0018-NAT-CCI-CD_-- 5/3/2012 3:33 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS May 7, 2012

BUSINESS DIARY ACQUISITIONS Cooper-Standard Automotive Inc., Novi, acquired EDC Automotive LLC, Auburn Hills. Kyocera Corp., Japan, acquired Optrex America Inc., Plymouth, an automo- tive liquid-crystal display maker, as part of the larger acquisition of Optrex Corp. CONTRACTS Business on Need ? When businesses Creative Services Co., Madison face the up-and-down demands of Heights, a marketing and promotions the rise? growth, purchasing goods, or even to make firm, was contracted by Xcentric Mold & Engineering, Chesterfield Town- KNOW A HIGH- payroll, Crestmark’s service and ship, a custom injection-molding com- innovative solutions can be the answer. pany, for informational videos target- ing engineers and suppliers TECH HERO? Providing accounts receivable financing and nationwide. CSC also was contracted asset-based lending to small- and mid-sized by EDP Manufacturing Co., Livonia, businesses nationwide for over 15 years. an electrical contract manufacturer, in association with Miller Media, Crain’s Detroit Business is launching the CIO Call me today for more information. Troy, to produce marketing videos targeting buyers, purchasers and elec- Awards, a recognition of the top technology trical engineers; Eastman Outdoor executives in metro Detroit. It is open to the brand subsidiaries Gorilla Treestands Scott Frederick G-30 Harness and the Carbon Express top corporate executive at any company providing 248.267.1630 | [email protected] SLS Crossbow, Flushing, in associa- tion with Forest Creative Group, Com- strategy related to technology, or an outside merce Township, to complete produc- contractor acting as CIO for a corporation. tion on two 30-second television commercials; Southeast Michigan Surgical Hospital, Warren, in associa- Nominations close: May 11, 2012 tion with Miller Media, to rebuild the website and produce videos highlight- ing departments; and Southeast Michigan Beacon Community, Detroit, For more information or to nominate, to produce the 2011 annual report. visit www.crainsdetroit.com/nominate Atlas Oil Co., Taylor, signed an agree- ment with Burlingame Industries Inc., Ada, to distribute a device intended to reduce oil tank theft from businesses. Atlas will market the product, TankShield, in Michigan, Illinois, In- diana and Ohio. EXPANSIONS Davenport University, Warren, opened a nursing simulation and fundamen- tals skill lab at 27650 Dequindre Road, Warren. Website: www.davenport.edu. Bring morale up. Twitter Inc., , opened an office at 1555 Broadway, Detroit. Web- About thirty stories. site: www.twitter.com. MOVES Greendale Screw Products Inc., an af- ter-manufacturing auto parts suppli- er, moved from Detroit to 11500 Hupp Ave., Warren. Telephone: (586) 759- 8100. Website: www.greendalescrew products.com. NEW PRODUCTS

ONE HU Freudenberg-NOK Sealing Technolo- G ND IN R T E gies, Plymouth, introduced a line of A D R Y B E E micro-seals in North America. Web- A L R

E S site: www.freudenberg.com. C 100 Resort Advantage LLC, Royal Oak, a gaming industry software provider, announced Incident Report Accelera- tor, a real-time incident-reporting software suite for casinos. Website: www.resort-advantage.com. TRW Automotive Holdings Corp., Livonia, unveiled its capacitive touch- pad sensor that incorporates ad- vanced handwriting-recognition soft- ware to help drivers and passengers coordinate and operate a variety of functions within a vehicle. Website: www.trw.com. NEW SERVICES Thrills bring every group together. MotorCity Casino-Hotel, Detroit, un- veiled a program that allows cus- Your employees will all feel the tomers to redeem rewards toward exhilarating g-forces. The excitement lease or purchase of a new Chrysler, of the water rides. And the powdered Ford or GM vehicle, among other amenities, through a re-engineered sugar of the funnel cakes. The very Club Metro loyalty card program. things that make a group outing to Website: www.motorcitymiles.com. Cedar Point in Sandusky, Ohio unlike Masco Corp., Taylor, launched a any other one. Visit cedarpoint.com/ streamlined website for the company’s brands. Website: www.masco.com. group-sales or call 1-800-448-2428 00 SAVE $100 OFF to get your discounted tickets for STARTUPS your corporate group outing today. DreamWorks Capital Management LLC, an investment management firm at 330 E. Maple Road, Suite 267, Birm- ingham. Telephone: (248) 860-2279. THRILLS CONNECT Website: www.dwcmllc.com. DBpageAD.qxp 3/8/2012 2:53 PM Page 1

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To book your corporate meeting or for more information, please call 313.223.2999, ext. 3221. 20120507-NEWS--0020-NAT-CCI-CD_-- 5/3/2012 3:53 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS May 7, 2012

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front Thank You PEOPLE ARCHITECTURE N THE SPOTLIGHT Abdul Brinjikji to shareholder and ex- I ecutive vice president, Nordstrom Lawrence Samson & Associates Inc., Farming- Technological ton Hills, from executive vice presi- University has dent, URS Corp., Southfield. named Virinder Matt Taylor to associate and share- Moudgil, holder, Rossetti Associates Inc., senior vice Southfield, from design leader. president and provost at CONSTRUCTION Oakland Danya Mallad to sales manager, University, its Robertson Brothers Co., Bloomfield seventh Hills, from senior account develop- Moudgil president, Sponsors ment, PepsiCo Inc., Plymouth. succeeding Lewis Walker, who will serve a DISTRIBUTION one-year term as LTU chancellor. Moudgil, 66, succeeds him as LTU Dean Behrendt to new business devel- president on July 1. opment manager, Chase Plastic Ser- vices Inc., Clarkston, from commer- At OU, Moudgil oversaw cial manager. Also, Doug Goik to operations of six schools, the commercial manager from senior cus- library, 16 administrative units, tomer service representative. grants, sponsored research and other areas. He also co-chaired FINANCE the steering committee for the Oakland University William Tim Carless to partner, risk assurance Sponsored by the Beaumont Medical School. He Metro Detroit Buick and GMC Dealers practice, PricewaterhouseCoopers LLP, Detroit, from vice president of joined the staff of Oakland corporate audit and business process University in 1976 as an assistant management, TD Auto Finance, professor of biological sciences. Farmington Hills. Moudgil earned a doctorate in zoology and biochemistry from HEALTH CARE Banaras Hindu University, Cindy Harrison to Varanasi, Uttar Pradesh, India. Detroit’s Place to Be on Opening Day! director of human resources, Henry ner, Jaffe Raitt Heuer & Weiss PC, This sold out event at the benefits the Ford West Bloom- Southfield, from member. field Hospital, Winning Futures Mentoring and Scholarship Program. from vice presi- MANUFACTURING dent, chief human To save your company’s spot for 2013, resources officer Scott Kushion to and patient experi- director of com- visit www.WinningFutures.org or call 586.294.8449 ence officer, Trini- mercial services ty Health Corp. and industrial seg- Chelsea Commu- ments, Asahi Ka- Harrison nity Hospital. sei Plastics North America Inc., Three BIG features, all in Crain’s June 4 issue HOSPITALITY Fowlerville, from industrial electro Silviya Stankova to general manager, and electronics Courtyard Detroit Pontiac/Bloom- segment director. field, White Lodging Services Corp., Jason Bailey to Pontiac, from assistant general man- Kushion manufacturing Special Delivery! ager, Hilton Garden Inn, Novi. manager, Relume Technologies, Ox- ford, from project manager, opera- Detroit Regional Chamber Mackinac Policy Conference May 29 - 31 LAW tions and continuous improvement Jonathan Myers, Sarah Weston, manager, United Solar Ovonic LLC, No one covers the Mackinac Policy Conference like Michael Weil and Ingrid Szura to part- Auburn Hills. Crain’s Detroit Business. Crain’s special edition lands on Mackinac Island on Thursday, May 31 – days ahead of office and home delivery on June 4.

This special edition includes two other powerful features. Women: Profiles in Power

I Game-changing women tell what it took to move off the bench. Also: Tales from the boardroom and what it really takes to be a female entrepreneur. LIST: Largest Woman-Owned Companies. Trends In Business Education I Crain’s examines performance-based funding models, faculty pay and other critical issues facing universities, including the higher education funding puzzle. LIST: Largest Graduate Degree Programs LIST: New Education Programs Directory Plus: Largest Privately Held Companies List

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May 7, 2012 CRAIN’S DETROIT BUSINESS Page 21 Mackinac agenda: Collaboration, Detroit’s global competitiveness

BY NANCY KAFFER growth, she said, will help Michi- risk officer at Pittsburgh-based PNC — the chamber moved the confer- Supreme Court, she said. CRAIN’S DETROIT BUSINESS gan move forward. Financial Services Group Inc. ence dates to accommodate the Another feature will be a panel Baruah said Detroit also would The conference will host the Belle Isle Grand Prix — state law- on the 2012 presidential election, The Detroit Regional Chamber’s be a topic at the conference, to be “Fab Five” rather than the “Big makers will be unable to attend featuring Democratic strategist 2012 Mackinac Policy Conference held May 29-31 on Mackinac Island. Four” — the traditional panel of this year, as Crain’s reported last Donna Brazile and Republican will focus on collaboration, revi- “We’re going to have a real dis- regional leaders, consisting of the week. But Gov. Rick Snyder is ex- strategist Tucker Eskew. talization and making Detroit cussion about the city itself,” he mayor of Detroit and the execu- pected to be an active part of the The final event will be a debate globally competitive, according to said. “We’re going to have a panel tives of Wayne, Oakland and Ma- conference, Schlichting said. about the big issues in Michigan, details about the conference agen- focused on what’s happening in comb counties. Last year, the “The governor has been in- such as the renewable portfolio da released last week. Detroit, focusing on some of the chamber included Conan Smith, volved in planning the agenda,” standard for alternative energy, Chamber President and CEO challenges that are obvious, like chairman of the Washtenaw Coun- she said. “The conference agenda right-to-work and the emergency Sandy Baruah and Henry Ford city infrastructure and the chal- ty Board of Commissioners. speaks to the governor’s mantra of manager law. The audience will be Health System President and CEO lenges the government faces finan- Smith will join the four again ‘relentless positive action.’ ” able to cast votes in real time Nancy Schlichting, who chairs the cially. We’re also focusing on all of this year. Health care also will be a part of through handheld devices. conference, held a conference call the incredible happenings in the Baruah said the chamber also the conversation, Schlichting said. Also scheduled to headline are with reporters to discuss the con- city on an entrepreneurial level.” will address Michigan’s auto in- Michael Leavitt, former secretary Ford Motor Co. Executive Chairman ference agenda. A panel called “Detroit: A Tale of dustry as a “platform for diversifi- of the U.S. Department of Health and William Clay Ford Jr.,New York Another theme is working to Two Cities” will address city con- cation in the state.” Also part of Human Services and a former Utah Times columnist Thomas Friedman, rekindle the state’s entrepreneur- cerns, as will a panel called “Mov- the conversation will be the cham- governor, will be talking about 21st and columnist and international ial spirit. ing Urban Areas Forward,” with ber’s MICHAuto program, an orga- century health care and how the pri- correspondent Fareed Zakaria. “There’s evidence of that in Roger Penske, Penske Corp. founder nization devoted to retaining and vate sector can manage it, especially Nancy Kaffer: (313) 446-0412, terms of some of our speakers,” and chairman, and Joseph Guyaux, growing the state’s auto industry. in light of health care reform and [email protected]. Twitter: @nan- Schlichting said. Entrepreneurial senior vice chairman and senior Because of a scheduling conflict any upcoming actions by the U.S. cykaffer REAL ESTATE JOB FRONT

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Page 22 CRAIN’S DETROIT BUSINESS May 7, 2012 Pension board for Detroit police, fire to sue over Calif. purchases

BY NANCY KAFFER ciates, which declined to comment. PPM’s management contract, properties, we will use whatever those existing assets and conduct CRAIN’S DETROIT BUSINESS MayfieldGentry President and “We’re going to see what’s happen- means necessary to get that money an audit.” CEO Chauncey Mayfield is the ing with the larger picture.” back, along with interest earned Peter Zeidenberg, an attorney The Detroit Police and Fire Retire- “primary visionary, strategist, After the MGRA SBCA pur- on that money that should have for MayfieldGentry, told the board ment System plans to file suit and architect” of the company, ac- chased the two retail centers in been earned if it hadn’t left our that the purchases were discov- against Detroit-based realty firm cording to its website, which was 2008, title for the properties was system.” ered internally. MayfieldGentry LLC to recoup funds disabled late last week. The web- never transferred to the pension In addition to advising the board Ackman’s letter has also been the firm used to buy properties in site says the company has about $1 fund, according to the Ackman let- on real estate investments, May- delivered to the SEC and the office . billion in assets under manage- ter. Until recently, MayfieldGen- fieldGentry also managed several of U.S. Attorney Barbara Mc- The board learned last week that ment, including, locally, Grand Park try was listed as the owner of both properties for the ; Quade. a subsidiary of MayfieldGentry, Centre, Luxury Apart- properties. One, in Carmichael, that relationship was terminated Neary said that the pension MGRA SBCA LLC, used pension board ments and One Detroit Center. Calif., was sold to Woodland, at the board’s Thursday meeting. board is committed to reform. funds to bankroll the $3 million The pension fund purchased a 10 Calif.-based investor Roger Dorris The board voted to freeze all “Once we were made aware of purchase of two multi-tenant retail percent share of One Detroit Center on March 22 for $4 million; the sec- payments to MayfieldGentry and the situation, we weren’t a reac- properties in California, after May- in 2007 for $20 million. A different ond, in Santa Rosa, Calif., is listed is transitioning other holdings to tive board,” he said. “We institut- fieldGentry CFO Blair Ackman sent MayfieldGentry subsidiary, De- for sale for $2.1 million. different property managers. ed a team, between our lawyers a letter to the pension board. troit-based Portfolio Property Manage- The letter said the two purchas- “It’s close to $300 million worth and our real estate advisers, and Board Chairman Sean Neary ment Global LLC, is the property es had proven unprofitable; Ack- of property that they take care of moved … very quickly — some said it remains unclear how May- manager for the building, said Greg man wrote that “losses have oc- for us,” Neary said. “As of yester- people would be shocked at how fieldGentry or its subsidiary were Camia, a senior vice president at curred.” day, a unanimous decision was fast that happened — to terminate able to access the funds. New York-based iStar Financial Inc., He wrote that MayfieldGentry is reached through extensive deal- that relationship. A team is in “I don’t think the paper trail has majority owner of the building. “developing a plan to accumulate ings with our legal team as well as place as we protect the system’s as- even begun to start yet,” Neary said. Camia said that neither May- sufficient funds” to make the pen- our real estate advisers to termi- sets.” Mayfield Gentry referred media field nor PPM have an ownership sion fund whole. nate that relationship with May- Nancy Kaffer: (313) 446-0412, calls to its public relations firm, stake or decision-making role in Of the suit, Neary said: “If board fieldGentry. We have since put a [email protected]. Twitter: California-based Gallen Neilly Asso- the building and that as far as money was used to purchase those transition team in place to protect @nancykaffer

Rush: Ford-driven venture with Faurecia may be biggest test ■ From Page 1 ing the rest. The deal is the result of Rush’s estimated retrofit costs to be $2 The deal, expected to close June previous work experience with million. 1, will make Detroit Manufactur- Faurecia expansion raises company’s Ford, said Todd Nissen, Ford’s Later that month, the Michigan ing Systems one of the largest mi- manager of corporate and supplier Economic Growth Authority approved nority-owned suppliers in South- communications. $4.2 million in property tax abate- east Michigan. Rush descends national stature in interior systems Both Wayne-based Rush Trucking ments over 12 years for DMS’ from the Mohawk tribe in Ontario. Inc. and Holt-based Dakkota Inte- space in the Gateway Industrial Rush, CEO and president of the Faurecia North America, the $4.8 billion in North America in grated Systems LLC — a joint ven- Center. new joint venture, said DMS plans Auburn Hills-based arm of 2011. It’s not yet disclosed how ture with Magna International — to hire 500 employees over the next French supplier Faurecia SA, the financial reporting will work have contracts with Ford. two years. As of last week, none of claims after its acquisition of a on the joint venture. But even if Dakkota, formed in 2001, assem- Faurecia’s gains the Saline plant’s 1,100 remaining $1.1 billion book of business from only a minority stake were in- bles and manufactures cockpits, Under the deal, Faurecia will UAW employees had accepted an of- Detroit last week that it now cluded, the company’s 2012 rev- door panel assemblies, overhead supply parts to the joint venture as fer to relocate to DMS’ plant in De- ranks as the largest interior sys- enue would well surpass the $5 systems, complete floor consoles well as expand and eventually con- troit. tems supplier in North America. billion mark, including its seat- and cargo systems in Lansing. It solidate its interiors operations DMS will take over 60 percent, While a ranking is difficult to ing, interior systems, emissions also supplies General Motors Co.’s across the state into the leased or nearly $700 million, of the Ford document because competitors controls and exteriors units. Lansing-Grand River plant. Saline plant, said Mike Heneka, business. Its first contract with report total earnings on units Competitor Johnson Controls “Ford and Rush have an excel- president of Faurecia North America. Ford will be to assemble interior that supply more parts than inte- Inc.’s interiors unit, based in Ply- lent working relationship from According to its annual report, parts for the Ford Mustang, Ford rior systems, such as seats, Fau- mouth, generated revenue of $7.4 both Rush Trucking and Andra’s Faurecia saw its North American Expedition and Lincoln Navigator. recia’s expansion from the new billion in North America in 2011. Dakkota joint venture,” Nissen sales climb 32.6 percent in 2011 — DMS purchases molding equip- Ford business is significant. JCI’s interior unit supplies seats, said. “Rush’s commitment to qual- during a time when total auto pro- ment from the Saline plant and ex- Last week, the unit completed interior systems and electronics. ity and efficiency were also rea- duction grew by 11 percent. pects to manufacture parts for the acquisition of the book of Southfield-based Lear Corp. gen- sons.” Faurecia turned revenue of $3.3 Ford, Rush said. business from Ford Motor Co.’s erated revenue of $5 billion in Ford was the key player in the billion in 2010, up from $1.6 billion “This is our chance to be com- Saline interiors plant. North America last year. Lear deal, not only because it owns the in 2009. petitive (in automotive) and create While a bulk of the business supplies seats and electronics. Saline plant but through an inter- North America and auto interi- sustainable and meaningful jobs will go to a newly created joint Canada-based Magna Internation- est in continuing its support of mi- ors have become increasingly im- in Detroit,” she said. venture between Faurecia and al Inc. generated revenue of $13.4 nority-owned businesses. Ford portant markets for Faurecia Wayne-based Rush Group Ltd., the billion in North America last year. does $17 billion in business each since it obtained its first foothold $1.1 billion will be reported under Magna supplies seats, electronics, year with minority suppliers, said through the purchase of Sommer Challenges ahead Faurecia. safety systems and other parts. Tony Brown, group vice president, Allibert SA in 2000. In 2003, Faure- However, it won’t be an easy Faurecia generated revenue of — Dustin Walsh Ford global purchasing. cia boosted its presence with a road. Deals orchestrated by au- “With this announcement, Fau- deal to supply more than $1 billion tomakers have a history of floun- it’s easy to see it as a great thing America,” he said. “Ford is sensi- recia is not only serving a critical in parts to Chrysler Group LLC, and dering, said Fred Hubacker, execu- for Detroit; but now that Ford has tive to some of the failures in the business need for Ford, they are it has steadily increased its capac- tive managing director of got it out of their Saline plant, past, and they were careful in this helping to provide leadership in ity through new facilities since Birmingham-based turnaround they’ll be looking for price reduc- deal. Faurecia is a strong operat- our effort to build a financially then, including a $20 million in- firm Conway Mackenzie Inc., citing tions.” ing partner and experienced play- healthy, diverse supply base,” vestment at its Fraser plant last Detroit-based Bing Group and Dear- Ford opened the Saline plant un- er in this market.” Brown said. year. born-based Plastech Engineered der its own name, then spun it off Rush said she welcomes the Rush said DMS will be forced to Rush said her friendship with Products Inc. into the Visteon Corp. supplier com- challenge. invest in the Gateway Industrial Detroit Mayor Dave Bing and a Bing Group generated revenue pany in 2000. It took it back over in “I know that this is a huge op- Center before beginning opera- commitment to the city caused her of $130 million in 2007, down from 2005 when it created Automotive portunity and big challenge, but tions in August. She declined to to look for plant space only in De- $463 million in 2005; it was sold in Component Holdings Inc. to oversee that’s nothing new for me and my disclose the cost of retrofitting the troit for the new joint venture. 2010. Plastech generated revenue 17 struggling former Visteon team,” she said. “I’ve started gath- 320,000-square-foot space. “Mayor Bing has been a col- of $1.5 billion in 2007 before filing plants. ering a great leadership team for The joint venture began looking league and person I’ve admired for bankruptcy in 2008 with $488 mil- Rush said Ford will be DMS’ DMS, full of people who’ve got for a home last year. At that time, a long time, and when he was vot- lion in debt. only customer for its first 18 decades of experience in the indus- the joint venture was between ed in I vowed to support him in Both suppliers were overlever- months, but that DMS plans to se- try.” Rush and an unidentified partner. any way possible,” she said. aged and relied heavily on Ford cure contracts with other cus- Rush declined to reveal the In December, DMS sought to lease “When I was learning about this and other Detroit 3 contracts. The tomers. names of the leadership team. 300,000 square feet of space at Amer- opportunity, Detroit was the obvi- lack of a diverse customer base Edgar Faler, director of the fi- ican Axle & Manufacturing Holdings ous choice.” crippled the suppliers, Hubacker nancial advisory group for Ducker Inc.’s newly vacant Detroit-Ham- Dustin Walsh: (313) 446-6042, said. Worldwide Inc. in Troy, said DMS is The heart of the deal tramck plant on Holbrook Street. [email protected]. Twitter: “These deals don’t have a great as strong as its minority partner. Ford approached Rush and Fau- DMS shortly abandoned the ef- @dustinpwalsh history,” he said. “On paper, it “Faurecia is a leader in Europe recia last summer about a poten- fort, citing high costs to retrofit Plastics News reporter Rhoda (DMS) looks like a win-win, and and has rapid growth in North tial joint venture, Rush said. the plant to its specifications. Axle Miel contributed to this report. 20120507-NEWS--0023-NAT-CCI-CD_-- 5/4/2012 6:31 PM Page 1

May 7, 2012 CRAIN’S DETROIT BUSINESS Page 23 Patent: New office expected to drive broad growth in jobs ■ From Page 1 eight or more administrative talent pool from Detroit wouldn’t get used to the job first (before He also said the Detroit office ness development and other em- patent judges will hear challenges necessarily be interested in relo- telecommuting).” will benefit both automotive and ployment, and that some out-of- to patent appeals as part of the cating to D.C.,” The administrative patent judge non-automotive industries, but state law firms may add a metro Board of Patent Appeals and Inter- Rea said. positions pay $134,498 to $165,300 a that the region will become more Detroit office or expand an exist- ferences. “There’s a lot of year, and applicants should have appealing for non-automotive ing one to help handle local ap- Evans will move from USPTO talent in De- a law degree and active state bar technology companies with appli- peals and post-petition reviews of headquarters in Alexandria, Va., troit, and if we membership, plus a four-year de- cations in medical devices, IT and patent applications. to become Detroit’s site executive, reach out to gree in an electrical, communica- other industries. Steven Oberholtzer, managing and the agency hopes this month them in that tions, computing or engineering Gocha and Rea both took part in partner of the Ann Arbor office of to submit a short list of applicants area, we can ac- field. The Board of Patent Appeals panels at Crain’s General & In- Chicago-based Brinks Hofer Gilson & from among more than 50 metro- tually build a and Interferences also prefers House Counsel Summit on April Lione PC, said he expects the firm politan areas vying to house one of team that candidates with 10-15 years of legal 25 at the Inn at St. John’s in Livonia. will expand for that reason but two other planned patent office wouldn’t need experience for Detroit. The patent office is “a fantastic won’t immediately hire. Rea satellites. as much assis- The new Detroit office should opportunity to help grow startups The local office of 18 attorneys Teresa Stanek Rea, deputy di- tance and training.” help attract technology-based star- in the region,” Gocha said. “Tech- expects to add at least three attor- rector of the office in Virginia, Patent examiners will need at tups and second-stage companies nology company owners that have neys shortly with specialties in said the Elijah McCoy office has least an undergraduate degree in looking to commercialize intellec- traditionally thought ‘you have to biotechnology, electrical engineer- already heard from enough quali- an applied sciences field, typically tual property, said Alan Gocha, be in Silicon Valley or in research ing and mechanical engineering, fied applicants that it could fill all engineering, and the Detroit staff general counsel for 5-Hour Energy corridors’ can (already) be sold on but Oberholtzer said that is tied to 100 positions immediately — should also have at least a year of and for Farmington Hills-based the lower cost of doing business the growing economy and not re- largely from Michigan, although some IP job experience, such as ETC Capital LLC. here,” he said. “But this is one lated to the Detroit office. the office also has a mix of appli- corporate patent research, claim “The people the USPTO is more asset that makes Detroit a fea- “Within the next one to two cants from Chicago and elsewhere writing or serving as a patent putting in charge to launch and sible place to build your company.” years, it’s very likely we’ll increase in the Midwest. The agency is list- agent to a law firm. run that office are top-notch, so ex- Michael Huget, head of the IP lit- the number of hires because of post- ing the Detroit positions through The local office may also include isting businesses are also excited igation practice at Detroit-based petition work that will be based May 31. shared space for examiners who to have the opportunity to work Honigman Miller Schwartz and Cohn here,” he said. “Some Asian and in- Current USPTO listings offer a telecommute, but Rea said the with them here,” he said. LLP, said he expects the local office ternational companies like to see higher wage scale for Detroit ex- agency currently plans to hire ex- ETC is a private investment will mean more locally based firms located wherever a patent of- aminers than for some equivalent aminers who live in Michigan or fund established by 5-Hour Energy patent prosecution work for attor- fice is, because it creates a sense of positions in the Washington, D.C., are willing to relocate. drink king Manoj Bhargava with a neys in the law firm, which has better access to that agency. So it area — $69,899-$90,866, compared “We’re expanding our tele-work focus on middle market companies grown to 37 IP attorneys from 10 creates an opportunity for local with $51,988-$78,881 there. But the initiative over time, but when you and a range of industries. just three years ago. “We don’t see firms to seek opportunities in repre- agency is also looking for prior first start at the U.S. Patent and Gocha said ETC will likely use any downside to this,” he said. senting companies outside the Unit- experience here. Trademark Office, it’s important the local office more than the ener- “It’s just a question of how much of ed States who value that.” “We have very high standards to be able to meet and get acquaint- gy drink company itself, Living Es- an upside will it be?” Chad Halcom: (313) 446-6796, on who we hire, and some of the ed with the resources and your co- sential LLC, since its IP portfolio is Huget also said he could see an [email protected]. Twitter: people who are at that level in the workers,” she said. “You have to fairly settled. indirect benefit to startup busi- @chadhalcom Ballot: Wording could trigger vote on Canada tunnel plan ■ From Page 3 private rail tunnel,” said Mickey terpretation. For example, could a transportation planning for the nicipal Employees Retirement Currently, only the $200 million Blashfield, the bridge company’s state official answering questions Southeast Michigan Council of Gov- System. Borealis has more than $55 freight and passenger train tunnel, director of governmental rela- from tunnel organizers, or simply ernments, said billion in assets and is expected to built in 1994 underneath the St. tions. “The language is carefully providing permits, be considered a his organization finance most of the tunnel work. It Clair River between Port Huron crafted for bridge or tunnel for “resource”? supports a new, increased its stake in the tunnel and Sarnia, Ontario, by Canadian government projects, not private The Michigan Department of Trans- bigger rail tun- and the project from 50 percent to National Railway Corp., can handle entities that are taking the risk/in- portation isn’t involved in the tun- nel, and he 83.5 percent in an $87.7 million the largest rail freight trains. CN vestment. Domestic supporting nel project but said it would be wouldn’t be sur- deal in 2009. maintains that tunnel almost ex- construction or rail improvements willing to help if asked. prised if the pro- David Cree, president and CEO clusively for its own trains. are not implicated.” “MDOT has made no commit- ject was viewed of the port authority, deferred The new tunnel is endorsed by The rail tunnel would be affect- ment to financially assist in con- as necessitating comment to Byington. Messages many in Michigan’s business com- ed only if got subsidies or re- struction of the new tunnel. But a statewide vote also were left for Canadian Pacific. munity that overwhelmingly back sources from the state govern- we are committed to aiding the under the ballot The project is expected to seek the proposed $3.1 billion public Palombo ment, Blashfield said. flow of commerce between the U.S. language as some level of U.S. and/or Canadi- bridge linking I-75 and Highway The tunnel “as a private initia- and our most important trading written. an public funding for the capital 401 between Detroit and Windsor. tive proper wouldn’t have a wor- partner so we would, of course, “We need to have a legislation costs, but no specific plans have On April 26, the Board of State ry,” he said. consider with open minds any- solution to this” rather than a ref- been publicly discussed. Canvassers approved the petition But proponents of the tunnel ef- thing the state can do to help,” Jeff erendum, he said. There are no Michigan entities format that Moroun’s group, The fort may be worried. Cranson, MDOT’s director of com- Ambiguous ballot language has listed as members of the tunnel People Should Decide, will use to The ballot language (see box) munications, said in an email. a history of causing headaches: project on its website at crgate- collect signatures for the ballot ini- mentions “motor vehicles” — Joy Yearout, deputy director of Michigan’s medical marijuana law way.com. The effort has said it is tiative. which are defined in a way under communications for Michigan At- has been widely criticized as too working to add Michigan-based in- It won’t be clear until July 9 if Michigan law that can be inter- torney General Bill Schuette, de- vague, leading to disparate inter- vestors to the project, but has de- the measure qualifies for the No- preted to include trains. The state clined to comment on the ballot is- pretations and enforcement. The clined to disclose who or what vember ballot. Groups aiming to exempts certain equipment and sue. law was born after voters in 2008 those could be. place a constitutional amendment vehicles as not being motor vehi- Kelly Rossman-McKinney, CEO approved a ballot issue that legal- The current Detroit tunnel — its before voters must collect 322,609 cles, but doesn’t exempt trains. and principal at Lansing-based po- ized licensed pot growth for cer- entrance is within the square cre- valid signatures by then. To pro- “Although, in common par- litical public relations firm Tr- tain approved medical conditions. ated by 12th and 16th streets, vide a cushion against signatures lance, you might not consider a lo- uscott Rossman, said she believes The tunnel effort, called the Con- Bagley Street and West Lafayette being disqualified, petition drive comotive to be a motor vehicle, the the fuzzy ballot language that tinental Rail Gateway, is aimed at Boulevard — was built in 1909 and organizers likely need to collect Michigan Motor Vehicle Code has could entangle constructing a larger rail tunnel enlarged in 1994. The tunnel, along about 400,000. a very expansive definition of mo- the tunnel is in- that could accommodate double- with the nearby land needed for a If nothing else, questions aris- tor vehicle,” Marge Byington Pot- tentional. stacked, 9-foot-6 containers and new tube, is owned by Borealis ing from questions about the ballot ter, executive director of corporate “I have no some new generations of multi- and Canadian Pacific. wording likely will birth lengthy affairs for the tunnel effort, said doubt that that level rail cars used by shippers In Windsor, the tunnel portal is court battles, said Bill Ballenger, via email. language in and auto manufacturers. just south of the intersection of editor of the Lansing-based Inside “A railroad train is excluded very deliberate, The century-old current tunnel Wyandotte Street and Wellington Michigan Politics newsletter. from the definition of a vehicle, both in terms of isn’t big enough to handle the new Avenue. It handles about 350,000 “It’s going to be litigated for but not from the definition of mo- its obvious con- train cars, even after a previous rail cars annually. years” if voters approve it, he said. tor vehicle, and therefore is a ‘mo- sequences and expansion. The tunnel consortium has “As long as this thing is being tor vehicle’ for the purposes of the its unintended Participants in the tunnel pro- spent between $75 million and $100 fought over in court, it delays Rossman- act.” consequences,” ject are Toronto-based Borealis In- million in engineering and envi- building a second bridge.” McKinney The other language on the ballot she said. “Noth- frastructure Management Inc., Cal- ronmental studies since it was And likely delays a tunnel, as proposal that could affect the tun- ing is done (by Moroun and his gary-based Canadian Pacific Railway launched in 2001. The goal is to well. nel is a reference to state re- staff) without understanding all of Ltd. and the Windsor Port Authority. open the tube by 2015. The Wind- Bill Shea: (313) 446-1626, sources. The word “resources” is the implications.” Messages were left for Borealis, sor Port Authority joined the tun- [email protected]. Twitter: undefined and could be open to in- Carmine Palombo, director of investment arm of the Ontario Mu- nel effort in 2010. @bill_shea19 20120507-NEWS--0024-NAT-CCI-CD_-- 5/4/2012 6:41 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS May 7, 2012 Hospitals: Systems see decline in year-over-year net income ■ From Page 3 On the other hand, the University months of 2011, but Trinity Health, health reform allows Michigan to of Michigan Health System posted UPS AND DOWNS its Novi-based parent organization expand Medicaid in 2014 by 500,000 net income gains of 67 percent to Here’s a look at hospital systems’ income from the most recent data with 49 hospitals, reported finan- people, Henry Ford could have $249.3 million in fiscal 2011, ended available, compared with the same periods in the previous year: cial information as part of a recent lower charity care numbers. June 30, from $149.1 million ’s net revenue did Type of income bond offering. year before. For the first six months of fiscal increase 2.5 percent to $4.2 bil- Net Investment Operating For UM Health System, invest- 2012, ending Dec. 31, Trinity lion. ment income increased 130 per- 2010 2011 2010 2011 2010 2011 Health reported a net loss of $63 Connelly said growth from pa- cent to $212.2 million in fiscal 2011 Beaumont million compared with net income tient services and premiums from $92 million the prior year. Health System $78M $35.5M $48.8M $9.5M $29M $26M of $463 million in the same period through Health Alliance Plan of Most health system investments Henry Ford the year prior, said CFO Ben Michigan drove revenue increases. are held in university investment Health System $60.1M $21.5M $65M $26.5M $62.5M $46.5M Carter. Total investment income HAP acquired Dearborn-based pools that performed well last Oakwood dropped to a loss of $161 million in Midwest Health Plan last year for $70 year, according to the health sys- Healthcare $50.1M $16.8M $40.5M $9.3M $31.3M $29.1M the same period of 2012 from gains million to expand into the growing tem’s financial statement. University of $354 million in that first six- Medicaid market. UM says it mitigates short-term of Michigan* $149.1M $249.3M $92M $212.2M $59.8M $53M month period of 2011. CEO Nancy Schlichting said fluctuations in the financial mar- The following systems’ numbers are for the first six months of their fiscal However, Carter said, operating Henry Ford continues to increase kets by maintaining a diverse port- years 2011 and 2012, which cover the period of July 1-Dec. 31. income for Trinity increased to market share above that of its com- folio and being conservative in its FY ’11 FY ’12 FY ’11 FY ’12 FY ’11 FY ’12 $128 million for the first six petitors. disbursements. A report from the St. John months of fiscal 2012 from $96 mil- “Last year our admissions grew University of Michigan Office of Providence $69.7M $24.9M $75.7M ($34.4M) ($6M) $59.3M lion in the same period in 2011. by 1.7 percent to 101,336 total ad- Investments said its policy pro- Trinity Health $463M ($63M) $354M ($161M) $96M $128M “The first six months of (calen- missions, the highest of any health vides for annual distributions of * Fiscal year ended June 30. dar year) 2011, the stock market system in Southeast Michigan,” 4.5 percent of the average seven- Note: All hospital systems’ fiscal years ended Dec. 31 except as noted. Detroit Medical was good,” he said. “It was the last Schlichting said. year market value of endowment Center does not break out financials from parent Vanguard Health Systems. six months of the year when the fi- in Detroit shares. The rule is designed to Source: Hospital systems nancial markets dropped off quite also has seen complex medical help the university budget and a bit.” case admission growth from out- plan more consistently. 77 percent to $9.3 million in 2011 creased 2.1 percent, 7 percent and 7 At Beaumont, Vitale said, the side of Southeast Michigan, he Detroit Medical Center, acquired from $40.5 million the prior year, percent, respectively. system had a 1 percent increase in said. by for-profit Vanguard Health Sys- said Matt Elsey, Oakwood’s corpo- For the first six months of fiscal admissions, a 4 percent increase in “As we look at a future with tems Inc. in 2011, does not break out rate controller. 2012, ending Dec. 31, St. John Prov- emergency department visits, and (fewer hospital) readmissions and its financials from the Nashville, But Oakwood’s expenses rose idence, a five-hospital system strong outpatient volume and di- technology, we do expect a level- Tenn.-based chain. last year by 5.8 percent, primarily based in Warren, reported net in- agnostic testing with magnetic res- ing-off of inpatient demand and Detroit-based Henry Ford re- because it spent millions of dollars come of $24.9 million compared onance imaging and computed to- more ambulatory development,” ported a 64 percent decrease in net to bolster its information systems with $69.7 million during the same mography scans. Riney said. income in 2011 to $21.5 million and on physician integration ef- period the year before, said CFO “We are continuing our finan- Because the Affordable Care Act from $60.1 million in 2010, said forts. Total pension costs also in- Patrick McGuire. Total investment cial improvement program and of 2010 included $500 billion in CFO James Connelly. Investment creased $9 million. income dropped to a loss of $34.4 had a good year, not a great year,” Medicare hospital payment reduc- income for the five-hospital sys- As a result, Oakwood’s operat- million from a gain of $75.7 million. Vitale said. “Margins in Southeast tions over the next 10 years, hospi- tem declined 59 percent to ing income before interest ex- Tight expense control and a $10 Michigan are not great in health tals have been grappling with low- $26.5 million in 2011 from $65 mil- penses dropped to $29.1 million in million net payment from care.” er reimbursement. lion the prior year, he said. 2011 from $31.3 million the year Medicare for successful electronic While Beaumont, like most sys- “We haven’t had our rates cut, Contributing to Henry Ford’s before. medical record implementation tems, have improved bill collec- but we got a lower rate of increase net income drop was a $19 million, However, Oakwood’s total rev- helped St. John’s operating in- tion practices and reduced bad- in reimbursement from one-time write-off taken last year enue increased 5.5 percent to come grow to $59.3 million from a debt expenses, cash on hand went Medicare,” Vitale said. “Typically as it is converting Henry Ford Ma- $1.12 billion from $1.06 billion, de- loss of $6 million in the same peri- down to $130 million last year from we get a 3.5 percent (increase), but comb Hospital–Warren to a rehabili- spite a 1.1 percent drop in admis- od in fiscal 2011. $161 million. That’s primarily be- last year we got just over 1 per- tation center. sions. Total revenue also grew during cause Beaumont had to contribute cent and will get less than 1 per- “Overall we feel really good “We had strong outpatient the six-month period last year to more to its pension fund, Vitale cent in 2013, and it will be worse about 2011, given the investment growth and (a 3 percent increase) $1.04 billion compared with $1.03 said. Henry Ford’s bottom line in 2014.” income challenges and the impair- in patient case mix (more complex billion for the same period in fiscal continues to be challenged by But Vitale said Beaumont’s ment (write-off) charges,” said Bob cases that generate higher rev- 2011. higher-than-usual levels of uncom- Medicare business is booming and Riney, Henry Ford’s president and enue),” Elsey said. “We have tight controls on pensated care. In 2011, Henry Ford profitable. COO. “We continued to move mar- For example, nephrology cases adding personnel, we are constant- increased uncompensated care by “We make money on ket share and revenue.” grew 19.4 percent and infectious ly looking at supply costs and (we) 5.5 percent to $210 million, which Medicare,” he said. “We have in- At Oakwood, the four-hospital, disease cases increased 9 percent, are very focused on our cost struc- includes $57.5 million in charity creased efficiencies and leaned Dearborn-based system’s net in- driving up Oakwood’s average ture,” McGuire said. care. our organization out.” come declined 66 percent to $16.8 case complexity. In addition, or- Ann Arbor-based St. Joseph “You go back five years, and Jay Greene: (313) 446-0325, million from $50.1 million in 2010. thopedic surgery, neurosurgery Health System did not disclose oper- that number has doubled,” said [email protected]. Twitter: Total investment income dropped and spine surgery cases have in- ating results for the last six Connelly, who noted that if federal @jaybgreene Penobscot: Push for new tenants includes updates, low rates ■ From Page 3 with the New York-based Northern tolopoulos in the deal. Weiner said the leasing will Group investors. It’s one deal in a long line for the need to focus on the smaller com- Several anchor tenants make up building. panies that make up the core of the 12 buyers eyed Penobscot Building the building’s 55 percent occupan- Northern Group purchased it in downtown market, but the build- cy. Most notably, it’s the headquar- 2005 as part of a two-building port- ing needs to balance that against The Penobscot Building drew 12 ing in Detroit and were interest- ters for Strategic Staffing Solutions folio with the First National Build- larger deals. interested buyers as part of its re- ed in this building,” he said. “We Inc. and Wayne County’s Friend of ing for a total of $34 million. “The question is whether the cent sale process. saw a lot of the excitement for De- the Court office. From 2002 to 2005, the buildings Penobscot can go out and capitalize Potential buyers came from troit.” Acting as receiver for the 47-sto- were owned by Miami Beach, Fla.- on those smaller deals, but then around the country, said David Friedman’s firm led the sale ry building, and then manager of based LNR Property Corp. create a bigger block of space, or Friedman, process, representing Capmark Fi- the building after it was foreclosed, LNR wound up with the build- two, for larger deals,” he said. president and nancial Group — the third client has been Farmington Hills-based ings after San Diego-based Capstone The Penobscot deal is an oppor- CEO of Farm- Friedman has represented for Friedman Integrated Real Estate Solu- Advisors defaulted on its loan. Cap- tunistic one for Apostolopoulos, ington Hills- the Penobscot in 10 years. tions Inc. stone paid $70 million in 1998 for similar to his buying the Pontiac based Friedman He represented LNR Property Friedman brokered the sale on both buildings. Silverdome for $585,000. Since then, Integrated Real Corp. in 2002 until the building behalf of Capmark, the Horsham, The idea of a new, stable owner he’s operated the building as a con- Estate Solutions was purchased in 2005, and then Pa.-based financial firm that loaned could be helpful in leasing the cert and sports venue. Inc., which led he represented the next buyers, the Northern Group $25 million building, said A.J. Weiner, senior “If I can come in and buy that the sales and The Northern Group, for several against the building in 2007. vice president in the Detroit office building for $4 a square foot, then marketing years after they purchased it. Leading the new leasing efforts of Jones Lang LaSalle. lease it for $10 a square foot or more, process. The new owner, Triple Proper- Friedman on the office building will be Bob “The stability of a new owner, that’s just good business,” he said. “There were ties of Toronto, will manage the Mihelich, first vice president in free of any loan or debt obligations, Daniel Duggan: (313) 446-0414, folks from all over the country buildings. the Southfield office of CBRE Group can breathe new life to the market- [email protected]. Twitter: who heard about what’s happen- — Daniel Duggan Inc., which represented Apos- ing efforts,” he said. @d_duggan 20120507-NEWS--0025-NAT-CCI-CD_-- 5/4/2012 6:43 PM Page 1

May 7, 2012 CRAIN’S DETROIT BUSINESS Page 25 Crime: Slaying highlights store owners’ battle www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] who with his family owns and money to pair with $10,000 from Southwest Detroit, he said. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- manages Handy Spot Market on the Chaldean American Chamber 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- Eight Mile Road between Hayes Businesses (are) of Commerce and $2,500 from Crime Watch efforts pay off 1622 or [email protected] Street and Kelly Road in Detroit “ Stoppers of Michigan. DEPUTY MANAGING EDITOR Daniel Duggan, (313) and Handy Mart in Garden City. looking out for one Long-term, the association is A business watch launched 446-0414 or [email protected] about three years ago in South- SENIOR EDITOR Bob Allen, (313) 446-0344 or “(Criminals) make a move; we working with local and state law [email protected] west Detroit is seeing a good re- find a way to counter that move. another. enforcement to educate its mem- EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] And they figure out another ” bers on prevention tips, such as turn on its efforts, said Kathleen Wendler, president of the South- COPY DESK CHIEF Gary Piatek, (313) 446-0357 or move.” Kathleen Wendler, limiting the number of signs in [email protected] Everything comes back to police Southwest Detroit store windows to keep lines of west Detroit Business Association. ASSISTANT NEWS EDITOR Jeff Johnston, (313) The West Vernor and Spring- 446-1608 or [email protected] presence, he said. Business Association sight clear for store owners and DATA EDITOR Brianna Reilly, (313) 446-0418, “Whether it’s in the city or sub- passersby. wells Business Improvement Dis- [email protected] urbs, you are dealing with the trict shares the cost of regular WEB EDITOR Gary Anglebrandt, (313) 446-1621, A legacy of larceny maintenance of a portion of West [email protected] same type of people. But what you Anonymous tips help EDITORIAL SUPPORT Robertta Reiff (313) 446- have is more police presence” in Criminal activity, both in terms Vernor Highway and Springwells 0419, YahNica Crawford, (313) 446-0329 There’s a growing sentiment Street, graffiti removal and some NEWSROOM (313) 446-0329, FAX (313) 446- the suburbs, Kassab said. of armed robberies and burglaries, 1687 TIP LINE (313) 446-6766 has plagued small-store owners op- that enough is enough, said Broad, public safety initiatives, including “It’s almost like a lawless land REPORTERS erating in and near the city for head of Crime Stoppers, which the part-time hiring of off-duty De- in Detroit … something has got to Daniel Duggan, deputy managing editor: Covers be done.” decades. gets about 80 percent of its annual troit police officers to patrol in real estate. (313) 446-0414 or [email protected] The Chaldean American Chamber budget from business member- uniform on the street in the busi- Jay Greene, senior reporter: Covers health care, While the city’s downtown and insurance and the environment. (313) 446-0325 or Midtown areas are heavily pa- of Commerce can name more than ships and sponsorships of its annu- ness district, Wendler said. [email protected] al fundraising dinner. The De- The business improvement dis- Chad Halcom: Covers law, non-automotive trolled and safer with the growing 200 local store owners in its cultur- manufacturing, defense contracting and Oakland number of people traversing them, al community alone who were troit-based agency reported trict contracts with the association and Macomb counties. (313) 446-6796 or contributions and grants totaling to work on crime prevention [email protected] store owners in outlying neighbor- killed at their businesses in and Tom Henderson: Covers banking, finance, hoods talk about criminals driving near Detroit since the 1970s, when just under $682,000 in 2010, the through the efforts of a dedicated technology and biotechnology. (313) 446-0337 or [email protected] vehicles into their stores in the a large number of Chaldeans mi- year of its latest tax filing. staff member who has direct rela- Nancy Kaffer: Covers small business, the city of middle of the night or taking grated here from Iraq. Calls to the nonprofit’s anony- tionships with the police depart- Detroit and Wayne County government. (313) 446- 0412 or [email protected] sledge hammers to store exteriors “We’ve seen acceleration, unfor- mous tip line increased 44 percent ment, the Wayne County Sheriff, the Bill Shea, enterprise editor: Covers media, to gain access. tunately, (with) four incidents in to more than 5,900 calls last year, Bureau of Alcohol, Tobacco, Firearms advertising and marketing, the business of sports, and transportation. (313) 446-1626 or Video surveillance isn’t much just a year,” said Martin Manna, and they are already up 20 percent and Explosives and the Michigan [email protected] help. president of the chamber and the so far in 2012. Liquor Control Commission, Wendler Nathan Skid, multimedia editor. Also covers the food industry and entertainment. (313) 446-1654, “We do have video surveillance Chaldean Community Foundation. A desire to claim reward money said. [email protected] … but it’s not that big of a deter- Three of those four murders of could be a motivator, but it doesn’t “We do email blasts if some par- Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw rent,” Kassab said. Chaldean business owners over appear to be, Broad said. Less than ticular technique is being used to counties. (313) 446-6042 or [email protected] “We know who is doing what the last year to 18 months took a third of tipsters have claimed re- break into stores, if someone is Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or when it happens,” which is at least place in suburbs: Ferndale, River ward money for reporting crimes caught on a video camera doing [email protected] twice a year. But the family does- Rouge and Southfield. over each of the past three years. something illegal,” she said. ADVERTISING n’t report it because they fear “We knew most of our cus- Local churches have also en- The group has “eyes and ears on ADVERTISING DIRECTOR Marla Wise, (313) 446- property insurance companies tomers by a first name,” said Can- gaged Crime Stoppers in helping the street,” who can report crime 6032 or [email protected] dace Khamarko, whose father, decrease crime in their neighbor- anonymously and get a reward for SALES INQUIRIES: (313) 446-6052; FAX (313) will drop them, he said. 393-0997 Luxor Liquor on West McNichols Karim Khamarko, was killed at hoods. They’re now preaching doing it, Wendler said. SENIOR ACCOUNT EXECUTIVES: Matthew J. Road in Detroit also has surveil- the family’s Ferndale store, Dollar from the pulpit about the moral “Businesses (are) looking out Langan, Tamara Rokowski ADVERTISING SALES Christine Galasso, Lori lance cameras in place. Club Plus, on Hilton near Wood- obligation congregation members for one another because crime low- Tournay Liggett, Dale Smolinski “When we have our break-ins ward Avenue the day after have to report crimes they know ers the dollars in the cash regis- CLASSIFIED SALES (313)-446-0351 and look at our cameras, you’ll see Thanksgiving in 2010. of, Broad said. ter,” she said. EVENTS DIRECTOR Nicole LaPointe Local business communities are The business watch group is EVENTS COORDINATOR Kacey Anderson cars passing up and down, but no- The family had operated a video SENIOR PRODUCER FOR DIGITAL/ONLINE body stops, calls the cops or does store at the same location for 10 taking matters into their own also in regular communication PRODUCTS Pierrette Dagg anything,” said manager Clint years before converting it to a dol- hands as public safety protection with law enforcement, sharing MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford Kassab, who is a distant relative of lar store five years before dwindles. Business groups in ar- video and information about crim- AUDIENCE DEVELOPMENT MANAGER Jason Kassab. Khamarko was killed by what eas such as Midtown, Southwest inal or suspicious activity. Candice Yopp “We have bullet-proof glass, nearby store surveillance cameras Detroit, Highland Park and South- “That kind of information shar- MARKETING COORDINATOR Jenny Griffith PRODUCTION MANAGER Wendy Kobylarz double steel doors, steel plates on appear to show was a lone gun- field have put in place or are ex- ing is helping us to do crime pre- PRODUCTION SUPERVISOR Larry Williams the inside of the walls in case they man. ploring business watch groups. vention, along with Crime Stop- try to break the bricks on the out- “We were just very comfortable Business watch groups engage pers as a means of everyone in the CUSTOMER SERVICE side of the building,” he said. there … very safe, and (we) didn’t and train business owners to com- neighborhood being able to report MAIN NUMBER: Call (877) 824-9374 or write [email protected] But many times, criminals come feel a need to have surveillance municate with one another, to ob- crime anonymously,” Wendler SUBSCRIPTIONS $59 one year, $98 two years. right through the front door de- video,” said Candace Khamarko, serve what’s happening near their said. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state spite those measures, he said, not- 24, an account executive for the businesses and to collect and re- It’s hard to measure the exact ef- rate for surface mail. Call (313) 446-0450 or ing they’d done the same at about Chaldean News in Southfield. port criminal and suspicious activ- fect those efforts have had on (877) 824-9374. The family installed exterior ity to local law enforcement offi- crime in the area, she said, “but we SINGLE COPIES: (877) 824-9374 20 stores in his neighborhood dur- REPRINTS: (800) 290-5460, ext. 125; ing a one-month period. and interior video cameras follow- cials in a coordinated fashion, do know we catch stuff in the bud.” (717) 505-9701, ext. 125; or lindsay.wilson ing his death, but they closed the similar to the approach of neigh- At one point, a group of crimi- @theygsgroup.com The only thing that is helping TO FIND A DATE A STORY WAS PUBLISHED: the store stave off criminals is the store less than a year later, finding borhood watch groups. nals drove a truck through the (313) 446-0367 or e-mail [email protected]

live visual monitoring he pays it too difficult to operate in the They’re not a new strategy in walls of a local supermarket and CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Oak Park-based Security Central same place Khamarko had died. Detroit. Between 1975 and 1987, the carried off the store’s safe, CRAIN COMMUNICATIONS INC. has also been a city created nearly 5,000 neighbor- Wendler said. CHAIRMAN Keith E. Crain Protection to provide, Clint Kassab PRESIDENT Rance Crain said. target of armed robberies at gas hood watch groups and 150 busi- By the time they attempted to rob SECRETARY Merrilee Crain “It’s been about a year or two stations on Mack Avenue, said ness watch groups as part of a larg- another supermarket in the same TREASURER Mary Kay Crain Executive Vice President/Operations years. I haven’t had any break-ins, John Broad, president of Detroit- er plan to decrease crime, way, “we were already on top of it William A. Morrow thank God,” he said. based Crime Stoppers, formally according to a study posted on the with the police,” who responded Group Vice President/Technology, Manufacturing, Circulation Dally had internal and external known as the Alliance for a Safer National Criminal Justice Reference and caught the criminals in process Robert C. Adams Greater Detroit. Service website. because they’d been in contact with Vice President/Production & Manufacturing video surveil- Dave Kamis lance, but was “It’s everywhere; it’s not just a Those groups helped reduce in- the local group, she said. Chief Information Officer gunned down Detroit problem,” he said. cidences of violent crimes such as “It’s about putting a system in Paul Dalpiaz Chief Human Resources Officer and robbed as “In fact, many of the businesses murder, forcible rape, robbery and place to make crime prevention Margee Kaczmarek he got out of his in Detroit maybe have more pre- aggravated assault by 40 percent work. … You have to be incredibly Director of Audience Development Operations car about 9 a.m. cautions in terms of heavy glass in a 155-block area and residential aggressive and organized as a com- Michelle Roth G.D. Crain Jr. Founder (1885-1973) to open his store than what you’ll see in the sub- burglaries by 60 percent, in an ap- munity to make it stick; it’s not Mrs. G.D. Crain Jr. Chairman (1911-1996) on Dexter Av- urbs. In some ways, the suburbs proach lauded by the Arlington, 1975 or 1955.” EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) enue near West are more vulnerable today.” Va.-based National Crime Prevention Communities where businesses 446-6000 Chicago Boule- In Detroit, there’s a no-snitch Council. are organized are less likely to be- Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 vard. rule, said Auday Arabo, president “Business watches were very come victimized by crime, Crime is published weekly, except for a special issue the He was carry- Dally and CEO of the West Bloomfield popular at one time,” but they’ve Stoppers’ Broad said. third week of August, and no issue the third week of December by Crain Communications Inc. at ing more cash than usual to have Township-based Associated Food trailed off as the precinct’s staff of “The overall thing is to look out 1155 Gratiot Ave., Detroit MI 48207-2732. and Petroleum Dealers. community relations staff has for each other — if we see some- Periodicals postage paid at Detroit, MI and available to cash checks because it additional mailing offices. POSTMASTER: Send was the beginning of the month. “If you know what happened, been reduced, said Lt. Terry Her- thing in a neighboring business address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, “A store owner does not (ordi- it’s not your business. Keep your bert in the Detroit Police Depart- that looks out of place, we need to MI 48207-9732. GST # 136760444. Printed in narily) walk into the store with mouth shut or there’s street jus- ment’s Police Community Service report that … (and) go back to be- U.S.A. Entire contents copyright 2012 by Crain large amounts of money,” Jason tice,” Arabo said in describing the Department. ing a community, not silos.” Communications Inc. All rights reserved. Kassab said. “Someone knew he rule. There are still some business Sherri Welch: (313) 446-1694, Reproduction or use of editorial content in any had money on him because it was That’s why the association watch groups in pockets of the city [email protected]. Twitter: manner without permission is strictly prohibited. the first of the month.” stepped up with $40,000 in reward in places such as Midtown and @sherriwelch 20120507-NEWS--0026-NAT-CCI-CD_-- 5/4/2012 6:09 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS May 7, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 28-MAY 4

Detroit-themed T-shirts and ranked among the top 50 tions Inc., the company that sells them in Eastern Mar- PWC to move fastest-growing companies leases and manages it, re- ket. Joining Stanzler in owned or led by women, ac- solved a dispute with Ma- Calls can be opening Detroit Mercantile comb County. cording to an annual list re- is Robert Jameson, who co- 650 workers leased by the New York- Ⅲ Federal authorities owns (with his wife, Sherri based Women Presidents’ charged 22 people in De- Lawton) Jameson Hard Goods, Organization and American troit, including four li- a vintage merchandise busi- to One Detroit censed social workers, with hazardous to Express OPEN. They are: ness that sells from The Rust Iconma LLC, Troy (9); TTi cheating Medicare of $58 Belt Market in Ferndale. Global Inc., Rochester Hills million in false claims for medically unnecessary ser- Everything in the shop is Center (13); Strategic Staffing Solu- vices. A total of 107 were for sale, including the an- tions Inc., Detroit (30); and ricewaterhouseCoop- charged in the multistate your health tique cash register the shop Preferred Solutions Inc., ers LLP said it has operation that allegedly in- will use to ring up sales and Northville (40). ore than 1 million P signed a letter of in- volved about $452 million Virtual community planning the rotary phone that once Ⅲ After acquiring people in Michi- sat on a Detroit Police Depart- tent to take over 70,000 in false billing. Delphos, Ohio-based I&K M gan have received game has gone online ment desk and will be in use square feet of space in One Ⅲ The National Baptist Distributors Inc. in April, Congress plans to bring its robocalls this year from a Detroiters have a chance at the shop’s front counter. Detroit Center and that in food distributor Lipari Foods annual conference and an California company that to participate in virtual The shop also plans to December it will move its Inc. is shuttering the plant estimated 5,000 people to says it’s selling discount community planning via a carry new goods, such as more than 650 workers out and consolidating its opera- Cobo Center June 10-15. health policies on behalf of new online game. custom bicycles made by of its current location in tions in Lipari’s Warren Ⅲ The John D. Dingell Vet- Detroit-based HMO Total “Detroit 24/7,” on Commu- Sweet Bikes in Canton the Madison Office Build- headquarters. erans Administration Medical Health Care. nityPlanIt.org, lets players Township. ing at 1900 St. Antoine St. Ⅲ Bloomfield Hills-based Center in Detroit has Problem is, the calls are a participate through sharing near Greektown. TriMas Corp. put 4 million opened the Veterans Commu- scam. Detroit trivia, community PWS said the move is be- Gilbert drops a Dime in shares for sale to raise $83 nity Resource & Referral Cen- “We have filed two com- mapping and role-playing ing driven by the firm’s em- plaints with the FCC to stop million for possible acqui- ter at Piquette Square. exercises. naming new Chrysler digs phasis nationally on more Ⅲ Detroit says it is nego- them, and nothing has hap- The game begins today sitions, debt retirement or The Dime Building is dead. open work spaces, a lower tiating with a charter carri- pened,” said Total’s CEO, and ends Sunday. working capital. Long live Chrysler House. lease rate and because of the er that wants to return Randy Narowitz. “They are hit- It’s offered through an ef- Ⅲ The ’ The 23-story Neoclassic building of a new Wayne commercial passenger ser- ting our own employees.” fort of the Detroit Works Pro- average Sunday circulation building in downtown De- County jail directly across vice to Coleman A. Young In- Help isn’t forthcoming ject, Emerson College’s En- for the past six months was troit got the name last week the street from PWC’s cur- ternational Airport, the De- from the state, however. gagement Game Lab and 662,987, up from 614,226 a after Chrysler Group LLC tout- rent headquarters. troit Free Press reported. Narowitz said Michigan’s the John S. and James L. year ago and 639,350 six ed in a press conference its Ⅲ Entrepreneurial de- Office of Insurance and Finan- Knight Foundation. months ago, according to lease of 33,000 square feet of grees, classes, clubs and cial Regulation told his staff Input will be used by the the Audit Bureau of Circula- executive space on the top ON THE MOVE competitions are on the it is powerless to stop the Detroit Works Project to de- tions, which revised its ac- two floors from building Ⅲ Detroit’s historic Pe- rise at all 15 Michigan pub- calls because the California velop its strategic plan, counting rules to allow on- owner Dan Gilbert. wabic Pottery named Barbara lic universities, says a sur- company is not licensed in scheduled to be completed line-only subscribers and Just 70 of Chrysler’s Sido its new vey released by the Michi- Michigan. this fall. Players can also free advertising products. 57,200 employees will move executive gan Sense of Place Council, a Over the last several win prizes; the top point- The Freep’s total weekday downtown from the au- director, public-private collabora- months, Total Health has earner will win an HD Flip tomaker’s Auburn Hills succeeding average circulation for the tive that supports develop- received dozens of com- video camera. Other play- headquarters, but that was Terese Ire- past six months, including ment of places with a quali- plaints from people who ers will win gift cards. enough for Gilbert to drop land, who is digital, was 230,739. The De- ty of life that attracts were told they could get up talented people and entre- the Dime Building moniker retiring. troit News, which does not to a 65 percent discount, preneurs. that had been on the 320,000- Sido most have a Sunday edition, Narowitz said. T-shirt maker tries on retro Ⅲ More than 30 compa- square-foot building since it recently posted an average weekday The pre-recorded calls give nies — representing every shop in Eastern Market was built in 1912. was execu- total, including digital, of a sales pitch and then ask Sido link in the resin supply “There hasn’t been a Dime tive director 125,639, down from 141,670 a people to hit a number on Robert Stanzler, the founder chain as well as automak- at the Michigan Society of Ar- year ago. their phone that directs them of apparel maker Made in De- Bank branch in Detroit for ers — worked with the Auto- chitects in Detroit. Ⅲ Detroit-based DTE Ener- to a live operator — presum- troit who later sold the busi- 80 or 90 years,” Gilbert told motive Industry Action Group gy Co. announced it will ably where they are hit up ness to Kid Rock, plans to reporters. “I don’t know to set up a system to test award up to $250,000 for one for financial information. open a Michigan- and De- that you really need to have COMPANY NEWS possible replacements for “We want people to know troit-centric shop in Eastern that name on this building.” or more ideas in its Chal- nylon 12, which will speed it is not us,” Narowitz said. Market May 19. During the press confer- Ⅲ General Motors Co. lenge for Innovation in En- development of parts using On its website, Total- The shop, The Detroit Mer- ence, friendly banter be- plans to cut about 100, or a ergy Efficiency. For details other materials and reduce HealthCareOnline.com, To- cantile Co. Inc., will carry an- tween Gilbert and Chrysler quarter, of the workers at and to register: the potential for auto pro- tal is warning people of the tiques and new products CEO Sergio Marchionne its research and develop- http://ww2.esd.org/echal- duction slowdowns. unsolicited phone calls with with a retro or vintage look. about supporting each oth- ment facility at the Warren lenge/index.htm. Ⅲ A measure to allow this alert: “If the caller ID is It will open in the northern- er’s civic efforts led to Technical Center as part of a Ⅲ Southeast Michigan more online charter not (313) 871-2000, the call is most corner of the FD Lofts Chrysler promising $3 mil- broader reorganization of defense contractors attend- schools in Michigan has not from Total Health Care. building on the east side of lion over five years to the its R&D operation. ing an industry day in Ster- moved to the Senate for These calls are not initiated Russell Street. private $137 million M1 Rail Ⅲ Chicago-based Urban ling Heights heard they likely final passage. or endorsed by Total Health Stanzler owns Detroit Man- streetcar project led by Partnership Bank opened its could get a lifeline if the Care.” ufacturing Co., which makes Gilbert. Midtown branch Tuesday, U.S. Army Tacom Life Cycle the same day Comerica Management Command goes OBITUARIES Bank held the grand open- forward with a $3 billion Ⅲ Margaret Barnes, who ing of its new Michigan plan to replace thousands helped her husband, Don- headquarters, at 411 W. of M113 armored personnel ald, turn Allen Park-based Lafayette. Comerica had carriers. The Army expects Belle Tire from one store been in nearby One Detroit to make a formal request into a chain, died April 23 BEST FROM THE BLOGS Center. for proposals between late of congestive heart failure. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ Asterand plc, the long- 2012 and spring 2013. She was 90. time anchor tenant at De- Ⅲ McLaren Health Care Ⅲ Dan Knott, who as Stem cell line makes registry Small nonprofit gets big help troit’s TechTown, has signed Corp. is changing the name Chrysler Group LLC’s pur- letters of intent to sell its of the former Cheboygan chasing boss restored the automaker’s reputation University of A small but two businesses in separate Memorial Hospital to with suppliers, died of can- Michigan researchers influential local deals. It declined to name McLaren-Northern Michigan, “ “ cer April 30. He was 51. are celebrating the nonprofit is attracting potential buyers. Cheboygan Campus after the Ⅲ news that their second financial support and Ⅲ Bella Marshall, former The Great Indoors, an purchase was completed Wayne County COO and line of human attention from several anchor tenant at Twelve Mile last week. embryonic stem cells high-profile widow of the late Don Bar- has been placed on the funders. Crossing at Fountain Walk in den, died May 1. She was 62. U.S. National Institutes Novi, will close June 16 and THER NEWS Ⅲ Donald McMillan, long- of Health’s registry. ” lay off 81 employees as part O time Detroit attorney who of a plan by Hoffman Es- Ⅲ Freedom Hill Amphithe- served as executive assis- ” tates, Ill.-based Sears Hold- atre in Sterling Heights tant to Detroit Mayor David Reporter Tom Henderson’s blog about accounting, Reporter Sherri Begin Welch’s blog ing Corp. to retire the chain. plans to host its first sum- Bing, died April 29 from banking, venture capital and high tech can be found about Southeast Michigan nonprofits can be found at www.crainsdetroit.com/henderson at www.crainsdetroit.com/welch Ⅲ Four Southeast Michi- mer concert season since complications related to gan businesses were 2009 after Hillside Produc- Leukemia. He was 63. DBpageAD.qxp 5/4/2012 9:19 AM Page 1

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Activation/upgrade fee/line: Up to $35. IMPORTANT CONSUMER INFORMATION: Subject to Cust. Agmt, Calling Plan, rebate form & credit approval. Up to $175 ($350 for advanced devices) early termination fee/line & add’l charges apply to device capabilities. Offers & coverage, varying by svc, not available everywhere; see vzw.com. Limited-time offer. Restocking fee may apply. Rebate debit card takes up to 6 weeks & expires in 12 months. While supplies last. LTE is a trademark of ETSI. MiFi is a trademark of Novatel Wireless, Inc. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. 4G LTE is available in more than 200 cities in the U.S. © 2012 Verizon Wireless. E9113 DBpageAD.qxp 4/26/2012 11:20 AM Page 1