20151012-NEWS--0001-NAT-CCI-CD_-- 10/9/2015 6:08 PM Page 1 Readers first for 30 Years Michigan Business Although the grape harvest is unpredictable CRAIN’S due to the weather, Michigan tasting rooms DETROIT BUSINESS are trying new tactics PAGE 35 OCTOBER 12-18, 2015 Focus: Hope loses funds, idles training By Sherri Welch [email protected] Focus: Hope is suspending new en- rollment in its workforce training pro- grams until it secures funding for them, following employee pay cuts and reduced workweeks instituted over the summer. Nearly $3.2 million total in work- force training and related grants from William Jones: the Michigan Economic Development As- CEO says funds not sociation and Detroit Employment Solu- secured for new tions Corp. were not renewed or ex- classes. pired this year. Sources with knowledge of the situation say Focus: Hope did not hit the metrics for at least one state grant that it was awarded through the MEDC’s Community Ventures program for 2014 but lost this year. However, the program’s director, James Durian, said Focus: Hope hit the minimum metrics for the program. But that grant was awarded to two other groups deemed more capable for those programs. The Detroit nonprofit also received extensions on two other grants, one from the MEDC and the other from DESC, to complete the requirements of the grants, those agencies said. “If extensions were granted, both parties agreed exten- sions were appropriate,” Focus: Hope CEO William Jones SEE FOCUS: HOPE, PAGE 53 State may pull plug on renewable energy mandates wind power. Rather, they believe “There are some who believe that Green groups, some businesses opposed A look at DTE Energy and new rules from the federal Environ- we won’t do it unless we’re forced to By Lindsay VanHulle largest utilities, which are required Consumers Energy solar, wind mental Protection Agency requiring do it. I don’t agree,” said Irene Dim- Crain’s Detroit Business/Bridge Magazine under state law to generate electric- projects. Page 51 utilities to reduce their carbon itry, DTE’s business planning and LANSING — Since Michigan’s ity from renewable sources, nearly emissions by 32 percent by 2030 will development vice president. “It’s energy law was adopted in 2008, bil- $3 billion has been invested on mandates that governed the ensure further investments in alter- the right thing to do.” lions of dollars have been spent in wind, solar, biomass and other amount of electricity they produce native energy. Not everyone is convinced. the state’s emerging renewable en- clean power sources across the from renewable sources. Their position has changed in Groups from the Sierra Club to some ergy industry — building infrastruc- state. Detroit’s DTE Energy Co. and Jack- seven years: Both companies sup- large industrial corporations — led ture, adding jobs and lowering Now, the utilities want state law- son-based Consumers Energy say ported including renewable stan- by Benton Harbor-based appliance costs. makers to end the standards that they don’t need mandates to ex- dards when the Legislature ap- With the help of the state’s two contributed to those results — pand their investment in solar and proved the first energy law. SEE ENERGY, PAGE 51 © Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 31 No 41 $2 a copy. $59 a year. Merging of the Minds We make M&A manageable NEWSPAPER 20151012-NEWS--0002-NAT-CCI-CD_-- 10/9/2015 2:40 PM Page 1 2 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 vice president of supply chain and ster the area’s workforce, the Times MICHIGAN manufacturing since 2006, was Herald of Port Huron reported. INSIDE named to head the Walker-based Ⅲ How’s this for a taste of home? THIS ISSUE retailer two days after J.K. Symancyk Galesburg-based Bell’s Brewery Inc. BANKRUPTCIES . 6 CALENDAR . 46 left to become CEO at Academy has released the first beer ferment- CAPITOL BRIEFINGS . 7 Sports + Outdoor , a Texas-based ed in wooden tanks once used by CLASSIFIED ADS . 49 sporting and outdoor goods retailer. Stroh Brewing Co. in Detroit, DEALS & DETAILS . 45 BRIEFS Ⅲ Spectrum Health plans to move MLive.com reported. Bell’s acquired MARY KRAMER . 35 up to 500 employees to a six-story the tanks in 2012 from Stroh after OPINION . 8 PNC survey: State biz owners for Flint to switch back to Detroit’s office building being renovated in they had been sitting in a Detroit OTHER VOICES . 9 optimistic for short term water system to address a public downtown Grand Rapids’ Arena warehouse for more than 50 years. PEOPLE . 48 health emergency and grapple with South neighborhood, MiBiz report- They were transported to Bell’s in RUMBLINGS . 54 Michigan owners of small and broader concerns about the effects ed. According to a memo filed with pieces and reassembled. The tanks WEEK ON THE WEB . 54 midsize businesses are optimistic of the aging pipes distributing the the city, Spectrum will consolidate were used because wood was used about the next few months, accord- city’s water supply, The Associated employees from two nearby offices. to make the bitter English beers that ing to the annual fall survey con- Press reported. Ⅲ Grand Rapids-based Fox Motors inspired Bell’s new Andrews’ Ale. COMPANY INDEX: ducted by Pittsburgh-based PNC Fi- Flint stopped using water from Group LLC opened the doors to its Ⅲ The National Wildlife Federation SEE PAGE 53 nancial Services Group Inc. the Detroit system last year as a new Fox Ford Lincoln of Chicago deal- sued the federal government, con- Eighty-eight percent of respon- cost-cutting measure, opting in- ership, MiBiz reported. The compa- tending it gives pipeline owners and they pose no threat. dents say they are optimistic about stead for a supply direct from the ny invested about $57 million into operators — such as the company How could northern Michi- their company’s prospects, up a tick Flint River. Residents have since the 145,000-square-foot dealership. that runs twin lines under the gan’s tourist industry not benefit from 87 percent in the spring. Other complained of the water’s bad Ⅲ Charlevoix Area Hospital will Straits of Mackinac — a free pass on from a recent travel story in The positive results: 33 percent expect to smell, taste and appearance, as well soon be known as Munson Healthcare developing legally required plans New York Times headlined “When increase employees’ pay, up from 26 as adverse health reactions. Charlevoix Hospital, after two health for dealing with oil spills into lakes Hemingway Was a Young Fisher- percent in the spring; 31 percent are Snyder said he would ask state care systems reached an agreement and other inland waterways, The man in Michigan”? In traversing the planning to charge higher prices, lawmakers for $9.3 million of the last week, the Petoskey News-Review Associated Press reported. The law- Petoskey and Walloon Lake areas compared to 36 percent; and 77 $12 million needed to reconnect reported. The arrangement will suit accuses the U.S. Department of where the author Ernest Heming- percent expected consumer prices Flint to Detroit’s system through bring the Charlevoix hospital under Transportation of failing to issue reg- way fished a century ago, Times to rise, from 89 percent. next summer. Then the city would the umbrella of the Munson Health- ulations on crafting spill strategies writer John O’Connor gushes over However, only 46 percent of the transition to a new regional water care network, which includes hos- and of allowing companies to oper- what Hemingway called “absolutely owners said they expected an in- authority drawing water from Lake pitals in Traverse City, Cadillac, ate without them. Houston-based the best trout fishing in the country crease in sales, 39 percent expected Huron. He said Flint would provide Grayling and Frankfort. Enbridge Energy Partners LP, which … and the best place in the world to no change, and 13 percent foresaw a $2 million, and the Flint-based Ⅲ The nonprofit Community Foun- operates the lines linking Lake do nothing.” O’Connor is a native decrease; the spring numbers were Charles Stewart Mott Foundation has dation of St. Clair County hopes offer- Huron and Lake Michigan, has said Michiganian, so he ought to know. Ⅲ 53, 43 and 4 percent, respectively. committed $4 million. ing financial incentives will attract Tom Henderson college graduates who have moved CORRECTION MICH-CELLANEOUS out of the area, The Associated Press Snyder wants Flint’s water reported. The foundation plans to Ⅲ On Page 13 of the Sept. 28 issue, Marjorie M. Fisher was incorrectly from Detroit – for now Ⅲ Meijer Inc. named Rick Keyes as offer three $10,000 “reverse scholar- listed as co-chair of the Max M. and Marjorie S. Fisher Foundation. She is a the seventh president in its 81-year ships” early next year to help gradu- vice chair. Gov. Rick Snyder last week called history, MiBiz reported. Keyes, 46, ates with college loan debt and bol- ELECTRONIC ASSEMBLY WITH ADVANCED TRACEABILITY Experience Our Impeccable Quality Today! WWW.LECTRONICS.NET AS9100:2009 ISO13485:2003 ISO9001:2008 ITAR Registered Cogiscan’s TTC System 20151012-NEWS--0003-NAT-CCI-CD_-- 10/9/2015 5:14 PM Page 1 CRAIN’S DETROIT BUSINESS // OCTOBER 12, 2015 3 Analysts: No Going for the green supplier windfall With economy improved, LPGA shoots for success in Michigan; could men’s golf tour follow? in trade accord By Bill Shea and new sponsors,” he said. “Say there’s a 30 per- [email protected] cent increase (in corporate hospitality sales), that Trans-Pacific Partnership seen as mild plus ast week’s announcement that the might be something that shakes up or speeds up Ladies Professional Golf Association would somebody’s thought process.” By Dustin Walsh changed.