20120227-NEWS--0001-NAT-CCI-CD_-- 2/24/2012 6:35 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 9 FEBRUARY 27 – MARCH 4, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Business leaders in running Talmer gets for university board seats What biz thinks MOCAD plans new look Execs favor right-to-work state, Snyder-backed bridge backers for with Midtown in mind BY MIKE TURNER Jim Reb, owner of Reb Construction Services SPECIAL TO CRAIN’S DETROIT BUSINESS Inc. in Auburn Hills, said he supports Sny- der’s position. Finance Extra LANSING — Business owners and man- “It would suck all the wind out of pushing agers came out strongly in favor of making the state forward,” Reb said, and “disrupt our Michigan a right-to-work state and the pro- $174M plan Ads and Steady Eddie governor.” posed New International Trade Crossing in a re- While Reb said he supports right- attitudes cent poll commissioned by Crain’s De- to-work in theory, he doesn’t troit Business and Honigman Miller think that such a law would boost credit Schwartz and Cohn LLP. have much impact on unions’ The poll, conducted by Michigan’s economy. He to expand Lansing-based Epic-MRA, cites surveys that show membership, sought the opinions of 300 right to work ranks BY TOM HENDERSON area business managers in the middle of the Page 11 CRAIN’S DETROIT BUSINESS and owners in mid-Feb- pack in terms of ruary. Troy-based Talmer Bank and Trust will an- The survey also See Survey, nounce today that it has commitments from pre- Crain’s list: Largest credit found support for a Page 24 vious investors, including Wilbur Ross, to raise bus rapid transit sys- unions, Page 13 an additional $174 million in equity to finance tem for Southeast expansion plans, including having an operation Michigan, providing in downtown Chicago by the end of the year. mandatory health care David Provost, president, chairman and CEO, coverage for autism and This Just In said the bank has received $21 million of that eliminating the personal commitment to finance short- property tax while replacing term expansion and will it with revenue from other Reliance One buys offices, make further capital calls as sources. needed. taking jobs to Auburn Hills Seventy-three percent of those “Getting into the Chicago surveyed favored making Michigan a The Clarkston-based staf- market is important to us,” right-to-work state. Support fing company Reliance One Inc. Provost said. He said he has dropped to 68 percent when it was has acquired the offices of hired a group of experienced Global Sales & Marketing LLC explained that workers who Chicago lenders who are from the company in a move chose not to pay union dues working at Talmer opera- to relocate its headquarters would earn the same tions in Wisconsin, “and we’d and bring 85 new jobs to wages, health and re- Provost love to have them in down- Auburn Hills. tirement benefits as town Chicago by the end of the year, even if it’s President and co-founder the pay and perks that just a loan production office.” Jim Beath said the full-service have been negotiated The bank is the fastest-growing in Michigan staffing company will occupy by a bargaining unit. since it launched a growth campaign in April 12,000 of the 22,000 square feet Some Republican leg- 2010, when it was a one-branch bank with $100 on Harmon Road starting Fri- islators are vowing to million in assets. Today, the bank has 52 day. Global Sales & Market- push for legislation that branches, about 850 employees and $2.1 billion ing, a wholesale auto parts would make Michigan a in assets. seller, will occupy an addi- right-to-work state, where Provost said the $21 million gives Talmer $300 tional 5,000 square feet as a employees would not have to million of capital on hand. “That will allow us tenant of Reliance One, which pay union dues as a condition to go to about $3 billion in assets,” he said. A seeks another tenant to occu- of employment. rule of thumb is for banks to try to leverage py the remaining space. Gov. Rick Snyder and some their equity capital at a 10-1 ratio when acquir- The company will move business groups have said they about 35 employees from don’t want such a measure because See Talmer, Page 25 Clarkston and Bingham the issue is too divisive. Farms. In a statement Fri- JEFF JOHNSTON/CDB day, Reliance One said it plans to hire more than 50 employees in the next five years because an improving Fraud settlement has DMC pursuing doctors for paybacks economy. Reliance One also said BY JAY GREENE that the DMC says is part of a 2010 be identified for fear of losing a The doctor said the DMC is wor- market demand for skilled CRAIN’S DETROIT BUSINESS settlement over fraud allegations lease at a DMC-owned medical of- ried that the computers might be workers in Southeast Michi- with the U.S. Department of Justice. fice building said she received an construed by the federal govern- gan has the company expect- Vanguard Health System’s Detroit Over the past initial bill for $13,000 for two com- ment as improper inducements to ing to grow to $50 million in Medical Center has been seeking six weeks, at puters, two monitors and a printer refer patients, which could violate revenue. hundreds of thousands of dollars least 29 physi- DMC LEGACY that is now 14 years old. physician anti-kickback laws. — Chad Halcom in repayments from more than 300 cians have re- Assets moved: Later, after the physician’s “I think it is extortion,” she said. DMC-affiliated physicians for be- ceived letters Board acts, lawyer contacted Farbman and the Tiffany Jones, the DMC’s press low-market rent, free computers from Vanguard three members DMC, the bill for the computers secretary, confirmed that the med- and other professional services and the South- quit, Page 7 was lowered to $8,700, she said. Part ical center is seeking payment for field-based Farb- of the bill included charges for In- used computer equipment. Howev- man Group, which manages DMC ternet access that amounted to $105 er, she said it is “inaccurate and properties. The letters ask the doc- a month. exaggerated” to contend DMC is tors to pay $10,000 to $14,000 for “They were given to us with no seeking $10,000 to $14,000 each computer equipment that the DMC obligation to pay back so we could from 29 doctors. gave the physicians as long as six access the database at the hospi- Officials from Farbman declined years ago, said two DMC-affiliated tal,” the physician said. “DMC comment. physicians who requested purchased it, depreciated it and As part of an agreement that al- NEWSPAPER anonymity. they were sitting in storage rooms One doctor, who did not want to until they were given to us.” See DMC, Page 25 20120227-NEWS--0002-NAT-CCI-CD_-- 2/24/2012 4:36 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 27, 2012 MICHIGAN BRIEFS Report: Green energy industry Grand Rapids mayor peeved has price advantage over coal Businesses ride out winter seeing more red than white after plan for ex-school changes Last month, Crain’s reported on This month, the city of Grand the formation of the Energy Innova- That you might have had demand: the ability to make Rapids sold four former Grand tion Business Council, a trade group to dig out over the weekend snow. For Detroit’s recent Mo- Rapids Public Schools buildings to to state the case for Michigan’s doesn’t change the fact that town Winter Blast, Shanty Berkley-based Ojibway Development emerging renewable energy indus- snowfall has been hit-and- Creek snow machines made for $1.6 million, on the assurance try — encompassing solar, wind, miss this winter. enough to cover two city that the buildings would be con- advanced energy storage (batter- In northern Michigan, blocks. The resort also has verted into apartments. ies), biomass and energy efficien- businesses have adapted hosted snowmobile races can- But last week, Ojibway owner cy. A new report from the Michigan and, while still losing mon- celed in other parts of the Bruce Michael sold one of the Public Service Commission said that ey, at least are surviving. state because of a lack of buildings to National Heritage Acad- industry now produces energy For Tim Brick, owner of snow. emies for a charter school — which that’s cheaper than coal. Brick Wheels, a Traverse City Michael Norton, media re- would compete with the city’s pub- The PSC report said the state’s ski and bike shop, business HOWARD LOVY lations director for the Tra- lic schools for students and state requirement that 10 percent of util- was down 40 percent in De- “Snow bikes” take some adventurers out on the verse City Convention & Visitors funding. ities’ electricity come from renew- cember and 20 percent in trails when snow is too light for skiing. Bureau, said that the area is And how did Mayor George able sources by 2015 has generated January compared with the used to the occasional mild Heartwell react to the change? $100 million in investments. The previous year. winter and that “we weren’t caught with our snow- “We were deceived. … I would full report is at michigan But many customers have become intrigued by pants down.” never vote for any other project that .gov/mpsc.