NEI Focus: City Creatives Economy Initiative, Round Two

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Page 3 ROUND-TWO FUNDERS OF NEI Here are the 10 funders of the New Budget cuts put defense NEI focus: City creatives Economy Initiative, round two. Ⅲ The John S. and James L. Knight contracts in line of fire Foundation (Miami): $5 million “Entrepreneurship and innova- Ⅲ Ford Foundation (New York): $5 million 2nd funding round tion, as stand-alones, are valuable Ⅲ The Kresge Foundation (Detroit): in growing the economy,” said $5 million

LARRY PEPLIN NEI Executive Director Dave Eg- Ⅲ W.K. Kellogg Foundation (Battle to target innovation, ner. “But the more we can con- Creek): $5 million nect them, the greater we can ac- Ⅲ The William Davidson Foundation celerate each. (Troy): $5 million entrepreneurism “In the end, without innova- Ⅲ Hudson-Webber Foundation tion, there are no new ideas to (Detroit): $2.5 million Amid financial emergency, BY SHERRI WELCH commercialize. And without en- Ⅲ Charles Stewart Mott Foundation CRAIN’S DETROIT BUSINESS Egner trepreneurs at the ready, there’s (Flint): $2 million Highland Park’s hopeful no one to commercialize them.” Ⅲ Community Foundation for After seven years and nearly $100 million in invest- NEI’s initial funders and one new foundation have Southeast Michigan (Detroit): Calif. firm poised to buy ment, the New Economy Initiative has figured out the committed a second-round investment of $33 million $1.5 million types of projects that will give it the most bang for its toward a $40 million target, Egner told Crain’s last Ⅲ The Max M. and Marjorie S. Fisher vacant American Axle land buck. week. Foundation (Southfield): $1.5 million In its second round, NEI plans to direct new fund- NEI spent two years studying different approach- Ⅲ McGregor Foundation (Detroit): ing primarily to agencies providing supportive ser- es to building the regional economy before focusing $750,000 Inside vices to spur innovation and entrepreneurism in the Ⅲ Skillman Foundation (Detroit): TBD city of Detroit — areas it honed in on two years ago. See NEI, Page 18 Horse tracks bet future on thoroughbreds, Page 4 Belle Isle hotel? Canadians For budget, float boat club plan, Page 5 Geared This Just In Snyder must Priority Health to move local office to American Center Priority Health is renovating for play resell plan 20,000 square feet on the 13th floor of the American Center in Southfield to prepare for a Olympics, soccer help mid-May move from the Ar- on Medicaid boretum II office complex in Farmington Hills. Warrior build global brand BY CHRIS GAUTZ The Grand Rapids-based CAPITOL CORRESPONDENT nonprofit insurer opened a BY BILL SHEA LANSING — When Gov. Rick customer service center at CRAIN’S DETROIT BUSINESS Snyder unveiled his state budget the American Center last fall. proposal last year, it included two Priority Health currently hen the men’s ice hockey competi- big-ticket items employs about 130 and ex- tion begins at the Winter Olympics — a $1.2 billion pects to hire 25 additional W next week in Russia, nearly a hun- increase to im- customer service employees dred players — including Detroit Red Wings prove the state’s and other staff in Southeast Henrik Zetterberg, playing for Sweden, and roads and Michigan over the next sev- Jimmy Howard, playing for the United bridges and the eral years, said Don Whit- States — will be using equipment from War- expansion of ford, senior vice president of ren-based Warrior Sports Inc. Medicaid. Priority’s east region. Outfitting pro athletes The trans- Priority Health has occu- and teams is the latest step portation pro- pied space in Arboretum II RUSH IN? the sporting goods manu- posal never hap- since 2007, when it acquired facturer is taking to be- As Games Snyder pened. And the former Care Choices come a global brand. begin, suppliers while Medicaid expansion was ap- health maintenance organi- consider The company — proved, it will be of significant in- zation from Livonia-based investing in launched in founder David terest in the new budget that Sny- Trinity Health, Whitford said. Russia, Morrow’s Princeton Univer- Page 15 der will present to the state The 25-floor American Cen- sity dorm room in 1992 as a Legislature on Wednesday. ter, at 27777 Franklin Road, is manufacturer of hand- One of Snyder’s selling points for a 508,000-square- foot Class A made titanium lacrosse sticks — has grown Medicaid expansion was that it office building managed by into a retailer of equipment, footwear and ap- would save the state $206 million Southfield-based Redico Real parel for lacrosse, soccer, ice hockey and gen- this fiscal year, and Snyder planned Estate Development. It was the eral lifestyle wear. to put half of that amount in a spe- headquarters of the now-de- At the Olympics, players on 12 national JOHN SOBCZAK cial savings account. That money funct American Motors Corp. teams will use Warrior sticks, gloves, hel- Warrior Sports Inc. began in the dorm room of David Morrow, who — Jay Greene played lacrosse at Princeton University. Morrow’s company now is See Warrior, Page 16 making a global push, using the English soccer team Liverpool FC. See Budget, Page 17

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Page 2 CRAIN’S DETROIT BUSINESS February 3, 2014

MICHIGAN BRIEFS ConAgra to close snack food plant Grand Rapids office and 41 more offices of Wells Fargo Insurance, part near Grand Rapids, idle about 260 Amid heat from investor to split up, Dow posts profit of San Francisco-based Wells Fargo ConAgra Foods Inc. will close its & Co., the Grand Rapids Business plant in the Grand Rapids suburb Midland-based Dow Chemical Co., facing pressure Third Point, founded by billionaire Dan Loeb, Journal reported. of Kentwood next year, costing from the New York City-based investment fund Third said last month that Dow is its top holding and Ⅲ Randy Thelen, who has run about 260 people their jobs, MiBiz Point LLC to break itself in two, tripled a share buy- could add billions of dollars to earnings by spinning the economic development organi- reported. The Omaha, Neb.-based back program to $4.5 billion and raised its dividend off commodity chemicals and plastics. Liveris said zation Lakeshore Advantage for the food processor will wind down pro- while posting better-than-expected fourth-quarter Dow can realize more from the commodity business past decade, is leaving to take an duction starting in April and end earnings and sales last week. with projects such as its $4 billion plan for U.S. Gulf economic development job in Om- Chairman and CEO Andrew Liveris defend- Coast plants to take advantage of cheap natural gas. aha, Neb., MLive.com reported. most operations by summer. Dow ed his strategy of integrating commodity chemicals While Dow has plans to divest as much as $4 bil- The resignation comes less than a Products made at Kentwood in- with specialty products after Third Point called for lion worth of subsidiaries to concentrate on more- week after Lakeshore Advantage clude cereal and nutrition snack the company to spin off its petrochemicals assets. profitable operations, Argus Research Co. said the said it would merge with the Ot- bars. In a Sept. 9, 2013, story in only makes commodity chemicals, such as eth- chemical producer should consider a full breakup. tawa County Economic Development Crain’s on Grand Rapids’ growing Dow ylene and propylene, to provide ingredients for its Dow’s disparate businesses, from plastics to geneti- Office, the other major economic snack food industry, ConAgra said higher-value products in agriculture, electronics cally modified seeds, make it difficult for sharehold- development agency in the county. it intended to spend $73 million on and plastics, Liveris said last week during the com- ers to value the company, according to Barclays plc. Ⅲ Mott Community College Presi- new equipment, relocate a re- pany’s earnings conference call. dent Richard Shaink plans to retire search and development lab and — Bloomberg this year, he wrote last week in an improve efficiencies on produc- email. Shaink has been president of tion lines in the plant. Also last week, Meijer an- the Flint-based school since 2000. The company has received state Ⅲ Jackson-based Consumers Ener- Ⅲ Passenger traffic continued to nounced that it planned to start a Ⅲ Grand Rapids ranks No. 7 on and local tax breaks at the plant. gy Co. plans to purchase a power rebound at Flint’s Bishop Interna- $100 million dairy production plant Amtrak’s list of “10 Best Places to Kentwood has given breaks worth plant on the east side of the city for tional Airport in November and De- in Tipp City, Ohio, north of Dayton, Visit in 2014,” the Grand Rapids about $40 million, Rich Houtteman, $155 million — a move that would cember, increasing 8 percent com- the Grand Rapids Business Journal Business Journal reported. Kentwood’s deputy city administra- move to the back burner plans to pared with the same two months reported. Meijer already has a dis- tor, told MLive.com. The city is like- build a $700 million natural-gas one year earlier, MLive.com re- tribution center there and has 42 Find business news from ly to get some of that back. plant in Genesee County, ported. In Grand Rapids, more stores in Ohio. The plant is expect- MLive.com reported. Construction than 2 million people flew through around the state at crainsdetroit ed to employ 103. of the 750-megawatt Genesee plant Gerald R. Ford International Airport in .com/crainsmichiganbusiness. Wi-Fi pay more? Meijer stores was expected to create an estimated 2013, its second-best year ever. Sign up for Crain's Michigan offer connection to their coupons ICH CELLANEOUS 600 jobs along with 30 permanent Ⅲ Valhalla, N.Y.-based USI Insur- Business e-newsletter at crains M - jobs once the plant was running. ance Services will acquire the detroit.com/emailsignup. All 204 of Meijer Inc.’s stores in the Ⅲ FireKeepers Casino Hotel plans to Ⅲ Gov. Rick Snyder said he will Midwest now have free Wi-Fi, host a new women’s golf event June continue exempting motor carri- MLive.com reported. Wi-Fi is 3-8 at the Battle Creek Country Club, ers and drivers hauling propane expected to make it easier for shop- The Associated Press reported. Or- from hours-of-service regulations CORRECTION pers to access the Walker-based ganizers said the FireKeepers Casi- to help ease a shortage of the heat- Ⅲ A story on Page 9 of the Jan. 20 issue should not have implied that retailer’s mPerks coupon redemp- no Hotel Championship will be a ing fuel brought on by heavy de- all nurse midwives working at the Detroit Medical Center are staff; tion mobile app while shopping and competition on the Symetra Tour, mand during an abnormally cold some are employed by the Wayne State University Physician Group save them from depleting their whose top players get to play on the winter. The shortage is particular- and are still practicing at DMC hospitals. smartphone data plans. LPGA Tour. ly acute in northern Michigan.

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February 3, 2014 CRAIN’S DETROIT BUSINESS Page 3

Focus: Executive Education

A FAREWELL TO ARMS? Defense contracts in Michigan took a major ROBERT CHASE hit during the last recession. Budget cuts put defense

2012 $4,676 9,569 2011 $4,581 10,484 2010 $4,503 contract jobs in jeopardy 11,744 2009 $6,050 11,528 after funding was slashed by nearly $500 million to 2008 $6,529 Ground Combat Vehicle, $100 million. 11,031 Hundreds of local engineering, logistics, program 2007 $5,513 150 workers in peril management and other defense contracting jobs are With recession over, firms 10,610 connected to Ground Combat Vehicle. The two con- 2006 $4,220 BY CHAD HALCOM tractors could mitigate their losses this year with head back to school, Page 9 7,981 CRAIN’S DETROIT BUSINESS other contract opportunities, like the Armored Mul- 2005 $4,128 ti-Purpose Vehicle, where contractors expect to sub- 8,434 More than 150 contracting jobs in Southeast mit proposals to the U.S. Army by Feb. 24. Michigan could be on the chopping block in the But analysts also expect elevated competition 2004 $2,749 4,293 next few months now that a last-minute slash in for AMPV and other new con- Company index budget funding has all but eliminated the Ground tracts as federal budgets tighten, 2003 Contract dollar These companies have significant mention in this $2,616 Combat Vehicle program. 3,460 amount making that prospect more of a week’s Crain’s Detroit Business: Sterling Heights-based General Dynamics Land Sys- long shot. 2002 Number of American Axle & Manufacturing Holdings ...... 3 $2,273 tems and the nearby offices of BAE Systems Inc. are “We will be making some deci- 2,577 contracts Automotive Industry Action Group ...... 11 wrapping up pre-production development on the sions over the next 30 days about 2001 BAE Systems ...... 3 $2,340 GCV under contract extensions of $180.5 million and how to go forward (with job 1,984 Becharas Brothers Coffee ...... 18 $159.4 million, respectively, which expire in June. cuts). This was all a huge sur- Budco Holdings ...... 18 2000 $1,567 An evaluation of their work would have fol- prise to us, and kind of a curve- 1,984 Colliers International ...... 16 lowed this year with initial production orders to ball,” said Mark Signorelli, vice Curis Enterprises ...... 18 follow, but a new budget reduction will relegate president and general manager Detroit Boat Club ...... 5 Source: governmentcontractswon.com Signorelli the program to a back-burner study project instead Detroit Economic Growth ...... 5, 18 See Defense, Page 17 DialogDirect ...... 18 Dialogue Marketing ...... 18 DTE Energy ...... 9 Eastern Michigan University ...... 9, 10 Federal-Mogul ...... 15 Calif. company General Dynamics Land Systems ...... 3 Glencoe Capital Michigan ...... 18 Great Lakes Employee Benefit Services ...... 15 HMS Manufacturing ...... 11 near deal on Hartman and Tyner ...... 4 Highland Park Business Association ...... 18 Integrated Manufacturing and Assembly ...... 18 Keystone Commercial Real Estate Services ...... 18 American Axle KPMG ...... 15 Kresge Foundation ...... 18 Magna Seating of North America ...... 18 Marsh & McLennan Agency ...... 15 vacant land Max M. and Marjorie S. Fisher Foundation ...... 18 McGraw Wentworth ...... 15 BY KIRK PINHO Michigan Harness Horsemen’s Association ...... 4 CRAIN’S DETROIT BUSINESS Michigan Horsemen’s Benevolent & Protection Assn. 4 Michigan Human Resources Development ...... 18 Two years ago, American Axle & Michigan Manufacturers Association ...... 18 Manufacturing Holdings Inc. decided Michigan State University ...... 10 to close most of its 2.5 million- New Economy Initiative ...... 1 square-foot Detroit Manufacturing Newmark Grubb Knight Frank ...... 16 Complex after a collapse in labor Oakland University ...... 9, 10 negotiations with the UAW. Then Presidents Council, State Universities of Michigan 17 last June, the company announced LARRY PEPLIN PricewaterhouseCoopers ...... 15 Mark Hackshaw, chairman of Highland Park’s Tax Increment Finance Authority, said the TIFA will be issuing requests Priority Health ...... 1 that almost all the complex was go- for proposals on TIFA-owned sites on Woodward Avenue, such as the vacant Highland Appliance store. ing to be demolished. Recycling Depot ...... 18 Now, after the last 300 jobs at the TI Automotive ...... 15 complex were terminated and 1.9 TRW Automotive ...... 15 million square feet of it were razed University of Michigan ...... 9, 10 Visteon ...... 15 last year, an out-of-state buyer is A city ‘ready to rise’ Walsh College ...... 10, 11 close to purchasing about 72 acres Warrior Sports ...... 1 of vacant land at the 111-acre site Wayne State University ...... 9, 11 at I-75 and Holbrook Street. Stuart Lichter, president and With state control looming, Highland Park sees signs of hope chairman of the board for Califor- nia-based Industrial Realty Group LLC, BY GARY ANGLEBRANDT The Michigan Department of Treasury on Jan. 24 de- Department index confirmed to Crain’s he expects to SPECIAL TO CRAIN’S DETROIT BUSINESS clared the Detroit enclave city to be in a financial BANKRUPTCIES ...... 4 close on the purchase this week and emergency, putting Highland Park one step closer to plans build-to-suit industrial pro- Portions of the lettering on the distinctive High- having a state-imposed emergency manager in BUSINESS DIARY ...... 13 jects there. Lichter said he has at land Appliance sign along Woodward Avenue are charge. This followed a review last October by the CALENDAR ...... 14 least one tenant lined up for a missing, and the red words have faded to pink. Treasury’s Local Emergency Financial Assistance CLASSIFIED ADS ...... 15 build-to-suit building but would not Memorable to many metro Detroiters from the Loan Board. KEITH CRAIN...... 6 identify who it is. store’s TV commercials, the Highland Park store Gov. Rick Snyder reaffirmed the decision last week. MARY KRAMER ...... 7 Lichter’s company website says closed its doors after the 1993 bankruptcy of Highland Industrial Realty has developed Superstores Inc. The sign still hangs, but in a way But upon closer inspection, Highland Park mir- OPINION ...... 6 more than $1 billion in corporate that does little to kindle nostalgia about the store, or rors Detroit in more ways than deeply troubled city OTHER VOICES ...... 6 and governmental properties and Highland Park, the city. finances. At the same time the city faces deep finan- PEOPLE ...... 12 has more than 80 million square A drive by the now-vacant site, at first glance, cial distresses, there are private and public invest- RUMBLINGS ...... 19 could cause assumptions about the state of things in ments and development emerging at a steady clip. WEEK ON THE WEB ...... 19 See Axle, Page 16 Highland Park. See Highland Park, Page 18

We put the log in blog THIS WEEK @ When a tree falls on Belle Isle, you can bet that Tom Henderson hears it. Read Tom’s blog and others from WWW.CRAINSDETROIT.COM Crain’s staffers at crainsdetroit.com/blogs.

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Page 4 CRAIN’S DETROIT BUSINESS February 3, 2014 TheGO TO Hazel Park, Northville mount national advisors for thoroughbreds to escape closure data privacy and cybersecurity BY SHERRI WELCH simulcast agreements with live an offer that was better for the long- The stakes are high. When you face a data breach or need a plan CRAIN’S DETROIT BUSINESS broadcasts of its races at tracks term survivability of the track, said to minimize risk, we are your national GO TO team. around the country, given less com- John Carlo, director of operations. The return of thoroughbred rac- Hotline: Call 855.MH.DATA1 or petition in that market, he said. In the short term, the new con- ing to Hazel Park Raceway and its visit www.mybreachcoach.com According to a Michigan Gaming tract will shore up a lot of the advent at Northville Downs, the Control Board report, Hazel Park track’s losses, he said. tracks say, is a desperation move Raceway received $9.7 million of Northville Downs received $7.2 aimed at staving off closure. the $67 million wagered on simul- million of the $52.3 million bet at Without it, both say it’s just a cast and live races at the track in the track in 2012, according to its matter of time. 2012. But the track has lost close to state reporting. That was down The Michigan Gaming Control Board’s $1 million a year for the past 10 from $8 million in revenue on $56 executive director, Rick Kalm, on McDonald Hopkins PLC years, Adkins said, noting revenue million in wagers the year before. Jan. 21 autho- last year fell 18 percent from the Operations Manager Michael 8PPEXBSE"WFOVF 4VJUF #MPPNmFME)JMMT .*t rized the tracks’ Stephen M. Gross, year before. Carlo said the track had a net loss of Detroit Managing Member request for the James J. Giszczak, Co-Chair, Data Privacy and Cybersecurity $92,000 in 2012. He’s projecting rev- shift from stan- enue for 2013 was down about 10 $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI dardbred — or Harness talks break down percent, and the track’s net loss will mcdonaldhopkins.com Carl J. Grassi, President harness — racing The new deal with the thorough- have widened to nearly $300,000 under a tentative bred association follows a break- when the numbers are final. five-year con- down in negotiations last summer “We’re running on a real short tract agreement between the tracks and the Michigan rope at this point,” John Carlo said. with the associa- Harness Horsemen’s Association. At is- “We had to take a new approach to tion representing Kalm sue was the tracks’ desire to restruc- keep Northville Downs open.” thoroughbred ture the simulcast purse pool, said Based on the simulcast business horsemen, the Michigan Horsemen’s Executive Director Phil Stommen. the track does, it’s clear fans wa- Benevolent and Protective Association. The simulcast purse pool is the 40 ger more on thoroughbred races Rethink your Harness racing will see a shorter percent of the net commission that’s than standardbred, he said. season this spring before the tracks deposited by the tracks into a pool The track plans to hire another environmental convert fully to thoroughbred. shared by the standardbred, thor- 15-20 employees to care for and The shift will mark the return of oughbred and quarter-horse horse- handle the horses and to invest strategy. thoroughbred racing to Hazel Park men racing at the state’s tracks. more than $250,000 to convert its Raceway for the first time in 30 EĞĞĚĂWŚĂƐĞ/^͍ The tracks take a gross commis- racing surface. years and its arrival for the first ƚǁĞůůƉĞƌĨŽƌŵƐWŚĂƐĞ/ sion of 20 percent to 22 percent on Northville Downs expects an time ever at Northville Downs, ŶǀŝƌŽŶŵĞŶƚĂů^ŝƚĞƐƐĞƐƐŵĞŶƚƐŝŶ average on the simulcast wagering initial spike in interest from local which has operated as a harness ƚŚĞďĞƐƚŝŶƚĞƌĞƐƚƐŽĨŽƵƌĐůŝĞŶƚƐ͘ at their track, according to the fans. But to survive, it will need to racing track since its 1944 opening. Michigan Gaming Control Board. keep them coming back, John Car- Operators are hoping the move &ƵůůͲ^ĞƌǀŝĐĞ Out of that comes a host fee for the lo said, so it’s brought in a new will buy time in the face of declin- ŶǀŝƌŽŶŵĞŶƚĂůŽŶƐƵůƟŶŐ tracks hosting the live races being concessionaire with a new menu ing interest in the sport and com- ͻ dƌĂŶƐĂĐƟŽŶĂů^ƚƵĚŝĞƐ simulcast and a state tax amounting and dining room. petition from casinos, Internet bet- to 3.5 cents on every dollar wagered. Thoroughbred is a higher-cost ͻ /ŶĚƵƐƚƌŝĂůŽŵƉůŝĂŶĐĞ ting and racinos in nearby states. ͻ ^ŝƚĞZĞŵĞĚŝĂƟŽŶ The remaining net commission proposition, Adkins said, with “Call it a Hail Mary,” said Dan is split, with tracks retaining 60 more people needed to care for, ͻ dĂŶŬŽŶƐƵůƟŶŐ Adkins, vice president of Hartman ͻ tĞƚůĂŶĚǀĂůƵĂƟŽŶ percent and 40 percent going to the lead and line up the horses at the and Tyner Inc., whose principals own horsemen’s pool, which is then starting gates. the Hazel Park Raceway. “The posi- split between thoroughbred, stan- Hazel Park Raceway, which cur- tive impact of this is the fact that dardbred and quarter-horse racing rently employs about 80, plans to we’re not closing the track.” at Michigan tracks. hire another 20-40 employees to ATWELL Pari-mutuel betting has been de- 866.850.4200 Thoroughbred horsemen, how- help care for and handle the hors- www.atwell-group.com clining nationwide for years, he ever, pay an entry fee that stan- es. It also plans to invest between said. And the industry has been un- dardbreds do not, Stommen said. $600,000 and $1 million this year to Äò®ÙÊÄÃÄã½Ä¦®ÄÙ®Ä¦Ö½ÄÄ®Ä¦ÝçÙòù®Ä¦ÊÄÝãÙçã®ÊÄÃÄ¦ÃÄã successful in legalizing in Michigan convert the track from a limestone other options such as instant gam- base to a sand track, and to more ing or instant online or smartphone Offer for survival than double its local advertising wagering where bettors get certain The thoroughbred association budget to about $500,000, from pari-mutuel information but don’t approached Northville Downs with $200,000, Adkins said. know which race they’re betting on. “Without being able to add slot machines or other gaming, we’re going to go for thoroughbred,” which attracts more wagers and, tradition- PLATINUM STANDARD ally, more fans, Adkins said. FRACTIONALFRACTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PRPROGRAMS.OGRAMS. The raceway also believes night- SERVING ALL SOUTHEASTERN MICHIGAN. time thoroughbred races could give it an edge in attracting national

BANKRUPTCIES FINANCIAL SOLUTIONS BUILT ON GENERATIONS OF TRUST The following businesses filed for protection in U.S. Bankruptcy Court in Detroit Jan. 24-31. Under Chapter 11, a company files for re- • Insurance organization. Chapter 7 involves • Employee Benefits total liquidation. Mixed Entertainment LLC, 1500 E. • Retirement Planning 10 Mile Road, Apartment 3, Fern- dale, voluntary Chapter 7. Assets: $257,500; liabilities: $1,032,967. 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 Bruno’s Dive Shop Inc., 21655 Ver- mander Ave., Clinton Township, A Member Firm of M Financial Group. voluntary Chapter 7. Assets and li- Registered Representative with M Securities: CORPORATEEAGLE.COM Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. abilities not available. LoVasco Consulting Group is independently owned and operated. — Bridget Vis 20140203-NEWS--0005-NAT-CCI-CD_-- 1/31/2014 4:17 PM Page 1

February 3, 2014 Page 5 Canadian hotel plans meetings Consultative Working with clients on Belle Isle and their advisors for over 70 years. boat club Personal life insurance consulting in a non-salesy environment. BY TOM HENDERSON CRAIN’S DETROIT BUSINESS Reducing estate and income taxes The CEO of a Canadian hotel group that wants to spend $40 million to turn the Detroit Boat Club on Enhancing ﬁxed income yields Belle Isle into a luxury hotel and conference center met with city and state representatives last Solving family and retirement issues week and said he will come back this week for further meetings. Optimizing existing life insurance policies Bob Jackson said the Vintage Ho- tels group, based in Niagara-on-the- Lake, Ontario, has bought 7 acres of Business succession planning waterfront property on Detroit’s far east side next to and corporate beneﬁts Mariner Park and plans to develop it as the first residential property in the group’s portfolio. He said that it hasn’t been decided whether to build houses, Jackson condominiums or a combination and that the project would stay on a back burner BIRMINGHAM, MI | NEW YORK, NY while he pursued the boat club deal. 248.731.9500 | WWW.SCHECHTERWEALTH.COM He said the best scenario would be to open the hotel, which will have up to 120 rooms, in 18 months. Jackson said his group, owned by Hong Kong-based developer Jimmy Lai, decided last year that it was time to look into Detroit real estate, and he made a trip here in Septem- ber, which included a tour of Belle Isle and a look at the boat club. “The property struck me as a real gem. We like the natural setting,” he said. Vintage has four hotels in Nia- gara-on-the-Lake, two in Toronto and expects to close this week on a hotel in Stratford, Ontario. “We want to turn this into a four- or five-star hotel. It’s a historic building, so you have to do it right. You want to be respectful of the property and its history,” said Jackson, who has had renderings made into a booklet that shows how the hotel might look when done. “There will be a lot of banquet space on the property, and we don’t think there’s a better place for miles to shoot wedding photos.” He said the property would also continue to be the base for the Detroit Boat Club Crew, which has been row- ing on the Detroit River since 1839. Jackson said the deal isn’t contin- gent on financing or tax credits. When asked about the project, Robert Rossbach, a consultant to the Detroit Economic Growth Corp. said: “Representatives from DEGC meet regularly with many representatives from many organizations, but they generally do not discuss or even confirm those meetings unless they are presenting something to one of the public authorities that DEGC staffs.” Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2

Video: Bob Jackson talks about plans for Belle Isle hotel, crainsdetroit.com/video 20140203-NEWS--0006-NAT-CCI-CD_-- 1/31/2014 5:31 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS February 3, 2014 OPINION OTHER VOICES NEI effort shows key Immigration, education role of philanthropy reform go hand in hand hilanthropy to the rescue! President Barack Oba- college grads willing to Not aiding the improvement of Southeast Michigan is blessed not only by major ma’s take on immigration major in that lucrative the U.S. economy is the federal reform during the State of field. Immigrant stu- government. We as immigration foundations that reinvest in the community, but P the Union address is in line dents, however, do. attorneys are told how many for- wealthy private individuals who give back, too. with what Gov. Rick Sny- Armed with knowledge eign nationals can enter the U.S. The same week that the Detroit Institute of Arts pledged der said during the auto of where the jobs are, the every year. The number does not $100 million toward resolving its part in the city’s bankruptcy show. Both say policy students come to the U.S. adjust with the needs of the econo- proceedings, the New Economy Initiative was retooling for its change is necessary to al- to study nuclear energy, my. low foreign-born students medicine and engineer- Obama told the nation that im- next generation of grant-making. to stay in the U.S. once they ing, not philosophy, the- migration reform could reduce the The NEI made history when it was formed in 2007 by 10 earn their advanced de- ater or liberal arts. U.S. deficit by $1 trillion in two foundations. With an endowment of $100 million, it was con- grees here. Alexandra LaCombe To help ensure that decades. While we want to see sidered the largest fund of its size focused on a single geo- We already know that immi- U.S. residents also leave their uni- sweeping reform, change will graphic area and with a mission to spend itself out of existence grants create jobs, greatly vitalize versities with both a degree and a more likely come in smaller bills neighborhoods and boost the econ- well-paying job opportunity, it is that deal with one issue at a time. by investing in people and projects to jump-start an ailing omy. Both Obama and Snyder rec- time for educational reform. Start- Snyder’s State of the State ad- economy. ognize it, and now few can argue ing in K-12, local students need ex- dress was a good start to open As Sherri Welch reports on Page 1, the first $100 million that reform is necessary. It is time posure to high-tech fields. There is doors for immigrants who will (some money that’s earmarked for existing commitments will that reform embraces immigrants a disconnect between the majors launch jobs in Michigan and help roll into the new fund) produced tangible results: 115 grants and that public attitudes evolve to offered at universities and the ar- our economy. The idea of a Michi- do the same. eas of high-growth, high-scale gan Office for New Americans to since 2009, $76 million awarded, 675 companies created, and a Immigrants creating jobs in jobs. Our educational advisory attract educated immigrants and new awareness and focus on starting and building new busi- high-tech fields are changing the system does not adapt to the job create a path to citizenship for nesses of all stripes and sectors. face of Michigan as the state is market. those with an entrepreneurial goal The second fund, with a goal of $40 million, is focused al- third nationwide in new jobs in A graduate with a bachelor’s de- (who also have $500,000 to invest in most solely on entrepreneurship and innovation, and in build- science, technology, engineering gree in petroleum engineering business here) is a step in the right and mathematics (STEM). These earns an annual average salary of direction. ing diversity — geographic, ethnic, gender and racial — with- individuals launched 39 percent of $130,000, and jobs are more than Education reform would ensure in our region. high-tech startup companies from plentiful, according to the U.S. Bu- that U.S.-born students have the 1995-2005. reau of Labor Statistics. On the same edge so that everyone has the Highly educated immigrant stu- other end, a literature major could opportunity to win. dents fill great voids in careers earn $46,000 if a job were available, Alexandra LaCombe is a partner A salute to departing consul that U.S.-born university students but the job growth is minus 1 per- at Fragomen, Del Rey, Bernsen and are not focused on. For example, cent. Still, most of us know more Loewy PLLC in Troy. She is a mem- Roy Norton is perhaps the best known consul general to the demand for engineers here far liberal arts students than petrole- ber of the American Immigration Detroit in decades. That’s because he was right in the middle exceeds the number of American um engineering majors. Lawyers Association. of the firestorm over the Canadian government’s desire to build a new bridge to connect Detroit to Windsor. Canada is Michigan’s greatest trade partner. Yet that did not stop some lawmakers from making insulting comments and insinuations at the height of the debate over the new crossing. TALK ON THE WEB Throughout, Norton always kept his cool. Even under fire by supporters of the Detroit International Bridge Co.’s attempt From www.crainsdetroit.com to maintain its privately held border monopoly. Re: Gov. Snyder: Start U.S. immigration Reader responses to stories and Re: Detroit lighting board approves Norton arrived in Detroit in 2010, after serving as a minis- reform in Detroit blogs that appeared on Crain’s LED lights, new timeline ter in charge of congressional, public and intergovernmental website. Comments may be Giving them the chance to be This is great news. The decision relations. He certainly needed all the diplomatic skills he edited for length and clarity. proud Americans is a blessing to to utilize LED lighting will provide could muster while weathering the assault on the plan for the city great savings in the long our economy, especially in Michi- What about all the highly skilled Michigan to partner with Canada on a new international term. I imagine it may also allow gan. The dumbest thing to do this people in Michigan who are unem- crossing that would be paid for by Canada. (Our favorite: his them to use lower copper content year is to allow this golden and bi- ployed or have run out of employ- wiring, where installation is need- turn in a “news” segment about the bridge controversy on partisan opportunity to fix our ment benefits? Do they get to apply ed, to decrease the attractiveness “The Daily Show”; well worth finding on YouTube.) dumb immigration system slip out for these jobs before the immi- to thieves. Now Norton has been appointed Consul General in Chica- of our hands. grants? Matt Parnell go. He’ll still be connected to Michigan by a Great Lake. Stylo Karen Holeva See Talk, Page 7

KEITH CRAIN: Let’s hope everything in Detroit works Detroit seems to be entering a changes in the next few high ratings of the Su- the head of the Detroit Economic conveniences associated with that, period of critical decisions. months as both Emer- per Bowl to announce Growth Corp., is a disappointment it is an exciting time with lots of Retirees and the city have come gency Manager Kevyn his re-election cam- for many. He has done a remark- changes and opportunities ahead. to an agreement on health care. Orr and the mayor make paign. Not a surprise. able job in what has to be a chal- Let’s hope everyone keeps the Detroit has a proposed plan of ad- and execute decisions For some reason, the lenging environment. Here’s hop- best interests of the citizens of justment for its bankruptcy. And it that will impact the city governor has a great in- ing for a worthy successor. metro Detroit in mind as we go for- looks like the Detroit Institute of over the next few years. terest in using the There is no doubt that it is im- ward. Arts has a long-term solution to It will be interesting Super Bowl for cam- perative that many city depart- Detroit needs to make sure that preserve its art collection. to see whether the emer- paign announcements. ments are overhauled. all of its services are being han- Mayor Mike Duggan is settling gency manager is able (Remember the “One Meanwhile, while costs and ex- dled well for its citizens at the into the challenging job of being to conclude his work in Tough Nerd” spots from penses are being closely moni- same time everyone is encouraged COO of the city. It was an extreme- the time allotted or will 2010?) tored, it’s equally important for to expand and invest within the ly smart decision to lower property need an extension. The next few months economic development to continue city. taxes. Let’s hope it pays off in in- Meanwhile, as I write this on are going to be a busy time in to attract jobs to the city. Let’s just make sure that the city vestment and support. Friday, Gov. Rick Snyder was terms of economic development. As Detroit continues to survive is able to take advantage of its new We are going to be seeing a lot of planning to take advantage of the The departure of George Jackson, the winter weather and all the in- opportunities. 20140203-NEWS--0007-NAT-CCI-CD_-- 1/31/2014 12:16 PM Page 1

February 3, 2014 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Adults need to put kids first in education

We’re halfway through the of when things don’t go the recently retired But because of the erosion from cellentschoolsdetroit.org. Twelve school year, and too many adults your way, you take CEO of the Skillman the original 11,000, rumors abound of the 20 top-performing K-8 are still exhibiting the most in- your marbles and go Foundation. that the EAA is trying to recruit schools on its scorecard are tradi- credibly juvenile behavior. home. Here’s a lesson In the beginning, new students from the traditional tional DPS schools. Case in point: the continued as- for future teachers at- about 11,000 students city schools, which is not what was It seems like there should be sault against the Education tending EMU: Educa- attended those 15 poor- intended when Gov. Snyder signed plenty of room to try new things Achievement Authority, the col- tion is really a political performing schools. on to support the authority. because the majority of children in lection of the 15 worst-performing game, and a hardball That shrank to about Today, if you looked at educa- Detroit are at the bottom academi- schools in Detroit carved out sepa- game at that. It’s all 9,000; some parents did- tion in Detroit like automakers cally. What future can children rately to try new methods and about adults, not kids. n’t like the “state think of selling cars, traditional have if they are ill-prepared for technology to help the most disad- The EAA isn’t per- takeover” aspect, some Detroit Public Schools have 42 per- college or technical schools? vantaged children make big gains fect, its outgoing chair, high school students cent market share and the EAA Mary Kramer is publisher of in learning. Carol Goss, concedes. didn’t like a year-round has 7 percent. And charter schools Crain's Detroit Business. Catch her Teachers in EAA schools are not But in less than two school year, others now dominate at 51 percent. But take on business news at 6:10 a.m. unionized. Hence, teachers’ years, it is showing promising don’t like the EAA’s structure (tra- not all charters are alike. Many Mondays on the Paul W. Smith show unions hate the EAA. Union lead- gains in academic achievement. ditional grades 1-8 are replaced by are terrible — as bad as or worse on WJR AM 760 and in her blog at ers have pressured the authority’s “It presents a huge opportunity to achievement “levels” in specific than the traditional public www.crainsdetroit.com/kramer. sole higher-education partner, change results for kids,” said Goss, subjects). schools. Check out the website ex- E-mail her at [email protected]. Eastern Michigan University, to drop its affiliation, a call seconded by EMU’s faculty union. Late last year, Ann Arbor teachers announced they would not work with student teachers from PRESENTING EMU. Kind of the adult equivalent

TALK CONTINUED ■ From Page 6

I hope they are only putting lighting on streets where there is a critical mass of occupied homes. We need to stop paying for infrastructure in sparsely populated areas of the city. We need to incen- tivize people to move. The cost will be less than maintaining and improving infrastructure. As those areas redevelop down the road, we can upgrade. Krain Mike Duggan

Re: Chuck Gaidica to step down as DETROIT MAYOR WDIV-Channel 4 meteorologist Good for Chuck! A great reason to leave a lucrative job, answering his calling. Vapor G 11:30 a.m. Registration Noon Program Re: State approves $450M in bonds for For turning the improbable into what, in retrospect, now - Keynote: Mike Duggan Red Wings arena seems to have been inevitable, Detroit Mayor Mike Duggan - Best-Managed Nonproﬁ t Awards Although study after study show was selected for Crain’s Newsmaker of the Year. AGENDA - Newsmaker Scholarship Award that the ROI on these projects is al- 1:45 p.m. Adjourn ways less than is sold to the public, if there’s nothing fun to do in Detroit eventually everyone who can will Join us as the mayor addresses leave, like Comerica. Let’s just re- Register at crainsdetroit.com/events frain from saying that any of these the business community. stadiums were privately funded. Individual Ticket: $65 Christopher2011 Table of 10 (reserved seating): $700 Student Rate: $55 Absolutely amazing! A man Tuesday, Feb. 25 (Mike Ilitch) worth roughly $3 bil- 11:30 a.m. - 1:45 p.m. For more information contact lion wants us to pay for his new [email protected] or 313-446-0300. arena. If we pay for it, do we get in

MotorCity Casino Hotel REGISTRATION for free? Like the DIA fiasco. What Sponsorships are available. Contact Marla Wise exactly is Gov. Snyder smoking to say that Detroit is on the comeback at [email protected] or 313-446-6032. path? All kinds of money is put into the downtown area and nothing is invested in the surrounding neighborhoods. TITLE CO-TITLE PLATINUM Joseph Coppola SPONSOR SPONSOR SPONSOR

Re: Hotel development planned for MAJOR SPONSORS former Statler Hilton site in Detroit Great move for Duggan to make as mayor of Detroit that he can fill the hole we have in such prime location. 263729 DBpageAD_DBpageAD.qxd 1/22/2014 1:27 PM Page 1

congratulates the winners of the 2013 Accelerate Michigan Innovation Competition

With more than $1 million in cash prizes, the Accelerate Michigan Innovation Competition is designed to highlight Michigan as a robust and vibrant venue for innovation and business opportunity.

Grand Varsity News Network is a Grand Rapids-based Web platform that makes it easy for high school athletic directors to manage social Prize communication with teams and the community, and automatically $500,000 generates media coverage for athletics in the process.

Covaron Advanced Materials is an Ann Arbor company that Second has created a patent-pending technology called Petraforge, a thermosetting material that can provide advanced physical properties $100,000 comparable to advanced ceramics but more durable, relatively low cost and able to use raw materials from industrial waste.

REL Inc. is the leader in the development of metal matrix Third composite (MMC) brake technology and products, with applications in the automotive and motorcycle industries. These $50,000 brakes are 60 percent lighter, leading to improved energy efÀ ciency and vehicle light-weighting.

Read about these and the other winners at crainsdetroit.com/accelerate. Investment-worthy companies like these in Michigan will also be covered in the upcoming Crain’s special report — Michigan Deal: Biggest Deals of 2013

For advertising information, contact Marla Wise at [email protected] or 313-446-6032. To receive your FREE copy, contact [email protected] or 313-446-6083. PUBLISHING MARCH 10, 2014

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michiganbusiness.org 20140203-NEWS--0009,0010,0011-NAT-CCI-CD_-- 1/31/2014 11:44 AM Page 1

February 3, 2014 CRAIN’S DETROIT BUSINESS Page 9

A CONVERSATION WITH WSU GETS INTO EXEC ED Biz school aims to help local companies move employees into King Yang, management, enhance skills, Page 11 Wayne State University Executive education

King Yang is director of the Wayne State University Bioengineering Center, which marks its 75-year anniversary this summer and conducts auto collision research using human cadavers and 3-D digital simulations, as well as military and sports injury research. He spoke with Chad Halcom about educational resources for professionals.

Your program typically uses a dozen human cadavers a year in crash tests, for data on automotive injury tolerance and body movement. Does demand for that data vary with car production levels or as more sophisticated test dummies enter the market? Research into crashworthiness was never really reduced despite the economic downturn because of federal regulations that have to be followed. ... Much of the industry still uses the dummy for frontal testing that was developed in 1972 and was never really updated. That is changing. We Back use the cadaver here to generate more humanlike movement data, so you can then use the data to create a better and more humanlike dummy. Then companies use that more advanced dummy to create data to build better vehicle safety systems. We not only do the cadaver testing, we provide that to kind of data from testing for industry and government. Some dummies are good at gathering single-direction data like a frontal crash, but if you crash at an angle it doesn’t necessarily produce the best data. Do many major employers in school Southeast Michigan send their executives to Wayne State to get ROBERT CHASE training through the center? “It’s definitely in full swing now,” Melanie Weaver Barnett of the University of Michigan’s Stephen M. Ross School of Business says about executive education. Many industries send their engineers here for training, or research, that helps them build toward a promotion or new job duties. Right now, taking a snapshot, we have Schools see exec education resurgence from doldrums of downturn one person here from General Motors Co., two from Ford Motor Co., one BY CHRIS GAUTZ in terms of increased interest again, post-re- from Toyota North America and four CAPITOL CORRESPONDENT A BORN MADE LEADER cession, but also because business education itself has changed, said the university’s dean from TARDEC (the Tank-Automotive When local companies ask local universities Research, Development and s the recession hit the region in 2008, of the School of Business some of the first things businesses to craft executive education courses for Engineering Center in Warren). employees, the most common request is for Administration, Michael AA trimmed or cut altogether were travel Mazzeo. classes on leadership, Page 10 and training budgets, causing a contraction Businesses previously What other changes and new in executive education classes at universi- thought an MBA was the programs have you been part of to help ties across the state. to teach executive education courses, which route to take for their em- keep up with the industry, or to help typically last a week or two, she said. local executives be informed about it? But schools offering those classes on cam- ployees, and while some pus, or in tailored courses they take on the The international travel and individual- still need that, more often Much of the research in the past road to company boardrooms, are seeing a ized classes for many companies were just now employers are seeking was on passive safety, to protect resurgence as businesses that made it out of the type of things that businesses pulled back to craft these specialized human occupants in a crash or vehicle on during the recession. training programs with a expulsion. The industry is working more the economic downturn are investing again in executive education for their employees. Michael Tidwell, dean of the College of Mazzeo local university. now on active safety, or on sensors Business at Eastern Michigan University, said and electronics that help avoid Melanie Weaver Barnett, chief executive ed- “We have had strong demand for (Oak- that when the economy has trouble, the train- crashes. There is a fairly recent new ucation officer at the University of Michigan’s land’s custom programs),” Mazzeo said. program at Wayne State called the Stephen M. Ross School of Business, said that al- ing and development arms of most companies DTE was one company that discontinued Automotive Safety Group, which I’m though both types of courses are increasing, are seen as expenses that such classes during the downturn, said Scott also in charge of for now, to develop more interest has been in custom programs. do not generate revenue Simons, senior specialist for media relations. ideas that reduce crashes and injury. “It’s definitely in full swing now,” Barnett and are often the first to go. “The recession prompted us to curtail dis- The idea is to integrate the active and said. “The training and devel- cretionary spending throughout the compa- passive safety systems together. One of UM’s newest programs is with De- opment opportunities are ny, including executive education,” he said. troit-based DTE Energy Co., in which employ- just starting to come But now, DTE is working again with UM If you know someone ees come to the Ann Arbor campus in six co- back,” Tidwell said. and by 2015 will have had 125 leaders go interesting in law, horts throughout the year, she said. He said that at Eastern, through the university’s customized program that focuses on business acumen, finan- manufacturing or “We love it when they come to us because professors are engaged in defense in Oakland or cial analysis, customer satisfaction and strate- we like to show off the campus and Ann Ar- several custom programs a Macomb counties gic thinking. bor,” Barnett said. Tidwell year with companies in the Chad Halcom should “We believe that strong leadership is a dif- state. But he also has seen an increase in appli- interview, call But more often, the professors take their ferential for organizational success,” Simons cations for MBA programs. In addition, enroll- (313) 446-6796 class to the company itself. And about half the said. “And that starts at the top and works its or write chalcom ment in the five graduate degree programs in time, those companies are not based in the way down.” @crain.com. U.S., Barnett said. UM professors often travel the College of Business is up 2 percent. to places like India, Hong Kong and Malaysia At Oakland University, the story is the same See Education, Page 10 20140203-NEWS--0009,0010,0011-NAT-CCI-CD_-- 1/31/2014 11:29 AM Page 2

Page 10 CRAIN’S DETROIT BUSINESS February 3, 2014 Focus: Executive Education What local firms seek from schools: Leadership lessons

BY CHRIS GAUTZ soon-to-be-open positions. UM was strong interest in communication Dave Frayer, director of execu- strategy, he said. CAPITOL CORRESPONDENT asked to get them ready. skills, both for new and current tive development programs at Lean techniques were all the Barnett said businesses also employees and for both internal Michigan State rage a few years ago, and Frayer When companies across South- look to train their managers in and external communications. University’s Eli still receives requests for such east Michigan ask local universi- employee engagement to help em- Most often, the interest is in im- Broad College of classes, he said — but not as much ties to craft executive education ployees find meaning in their proving written communication Business, said — as well as requests for courses courses for their employees, the work. skills, particularly constructing a the capabilities in hospitality management. requests range from highly techni- Tara Miceli, director of the proper message when talking with of the university Michael Tidwell, dean of the Col- cal to broad corporate skills. But Walsh Institute at Walsh College, a client. often drive the lege of Business at Eastern Michigan the most common request is for said she has “As you move managers to other types of re- University, said business analytics classes on leadership. seen a strong de- roles, leadership skills are very quests for cours- and search engine optimization Melanie Weaver Barnett, chief sire across the important,” said Michael Mazzeo, es that business- are attracting greater interest executive education officer at the board in re- Oakland University’s dean of the es have. from businesses. Frayer University of Michigan’s Stephen M. quests for lead- School of Business Administra- “Organiza- He said Eastern has several facul- Ross School of Business, said leader- ership courses. tion. For those managers, financ- tions buy based on expertise,” he ty members who specialize in ship and business acumen are the Companies ing and accounting becomes cru- said. search engine optimization, and two main requests she receives have come to her cial, Mazzeo said. Frayer said MSU is known for its they are often sought out for their from businesses. office with needs “Those are always in need,” he work in supply chain management, expertise. “Within those categories, there regarding strate- said. so he has seen a lot of interest in re- The vast majority of the faculty are a lot of paths,” she said. gic decision- Requests for general informa- cent years around so-called big data at Eastern, Tidwell said, are prac- One company her office helped Miceli making, finding tion technology courses have de- and predictive analytics. tical in hands-on types of disci- recently faced having 40 percent of ways to keep bright talent on board clined a bit, he said, and are now “That whole area has been a big plines. its vice presidents ready to retire. and bringing middle management more in conjunction with other ar- growth area,” he said. “We are always looking for The company, which she declined up to speed and improving their eas of a business. Businesses also want Frayer’s what’s next,” he said. to identify, had a great set of direc- abilities in working with other de- Data mining and analytics are professors to provide instruction Chris Gautz: (517) 403-4403, tor-level employees, but they were partments. two other areas where Mazzeo also surrounding the link between sup- [email protected]. Twitter: unprepared to step up to those Miceli said she also has seen a sees growth. ply chain strategy and business @chrisgautz

Education: With recession over, companies go back to school ■ From Page 9 Dave Frayer, director of execu- during the height of the recession, And like UM, often those pro- ness in another country, he said, based executive education organi- tive development programs at only a handful of programs had to grams take place overseas in or a foreign company has heard zations. Michigan State University’s Eli Broad be cancelled, but the enrollment in places like Turkey, Saudi Arabia about MSU’s custom programs and Having her professors in the field College of Business, said MSU’s exec- all of the remaining programs saw and India. reaches out for training. working in these businesses and utive education offerings are get- a noticeable decline. In some class- “We follow our clients wherever EMU’s Tidwell said that lately, helping them solve problems gives ting back to pre-recession levels, es where there used to be as many they go in the world,” Frayer said. when companies request his profes- the professors fresh, real-world ex- running between 35 and 40 custom as 50 students, there were no more Sometimes it is because a do- sors to come teach a specific topic, it perience to take back to campus programs annually. Frayer said than 20 attending, he said. mestic company conducts busi- is not meant to be part of a course to and apply to their other courses. earn credit toward a degree. “It enhances all the class- Businesses, he said, will say they rooms,” Barnett said. have a particular challenge and Tidwell said the higher education want someone to help them solve it community often hears the criti- or at least expose the company’s cism that it doesn’t have a strong leadership team to new ideas. connection with the business com- Today, more than ever, global “The answer to every question munity. Executive education class- is not an education program,” Tid- es help erase that perception, he competition, new technologies, and well said. “Sometimes it’s helping said. an organization think through an “Ultimately, what the faculty corporate streamlining require innovative issue.” member is doing is disseminating Barnett said that at UM, these knowledge, but learning about the thinking and leaderships abilities. Continuing are called action learning projects. business, too,” Tidwell said. “They come to us with ‘we’ve got Students also can benefit from your education can be key to your success. this big challenge and we need job placements, using the connec- help,’ ” she said. tions the professors have made From biomedical and robotics engineering to UM professors and Barnett’s staff with companies, Mazzeo said. But help craft a learning experience also, he said, the companies that interaction design, Lawrence Technological that almost always includes some have worked with those schools level of capability building, but a have a familiarity with and re- University offers innovative degrees and fast significant portion involves work- spect for the institution because of ing on the most pressing challenges the positive experience they had in track certificate programs to prepare you the business has. working with the school. While Barnett could not identify “The real value is when you work for the jobs of the future. the companies the university was with the company,” Mazzeo said. working with, she said that in recent years her programs have helped companies develop more in- Compensation novation in their global supply The executive education arms of Possible is everything. chain, establish a supplier base, the universities can provide valuable learn about a new market and im- revenue streams at a time of declin- 2014 2014 2014 prove their customer relationship ing investment in higher education AMERICA’S BEST BEST COLLEGES MILITARY management. from state government and other in the Midwest FRIENDLY UNIVERSITIES “The company’s strategic priori- sources. But they also can be lucra- U.S. News & Princeton S C H O O L World Report® Review® G.I. Jobs® ties are woven into the program,” tive for the professors themselves. she said. Some institutions across the Explore over 100 undergraduate, master’s, and doctoral programs in Colleges of country have noticed a trend of Architecture and Design, Arts and Sciences, Engineering, and Management. companies cutting out the univer- Dual benefits sity as the middleman and con- Waive your application fee at www.ltu.edu/applyfree It’s not just the employees tak- tracting directly with a professor ing the executive education cours- to train employees, Barnett said. es that benefit from the experi- But at UM, she said, the faculty ence, said Barnett, who last year largely understands the importance Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 was board chair of UNICON, a glob- of having a strong institution. Their 800.225.5588 | [email protected] | www.ltu.edu al consortium of business-school- See Next Page 20140203-NEWS--0009,0010,0011-NAT-CCI-CD_-- 1/31/2014 11:29 AM Page 3

February 3, 2014 CRAIN’S DETROIT BUSINESS Page 11 Focus: Executive Education New WSU exec program aims to help firms fill knowledge gaps

BY BRIDGET VIS lum in a way that responds to their a nondegree certificate program SPECIAL TO CRAIN’S DETROIT BUSINESS needs on a regular basis.” that Wayne State has created with WSU to offer certificate in info systems Because many other business the Southfield-based Automotive In- Wayne State University’s School of schools already have executive ed- dustry Action Group in supply chain Wayne State University’s School of as introduction to business infor- Business Administration plans to ucation programs, Margaret management. Business Administration has mation systems and software launch an executive education Williams, interim dean of Wayne The program consists of 24 launched an online for-credit, tools for business applications, arm in the coming months to help State’s business weekly class sessions at AIAG’s post-bachelor certificate program plus three specialized elective local companies train employees school said, the headquarters and will begin in information systems manage- courses in information systems to move into managerial and exec- new arm will Thursday. They are taught by uni- ment for people who want to ad- that can be completed over two utive ranks or enhance their keep the univer- versity faculty and supply chain vance their job skills or switch semesters. The courses will be a skills. sity competitive professionals. careers. combination of theory and hands- Marcus Dickson, the business with those The program will be the first of on practice. school’s director of education, said The sessions cover topics such schools as well its kind in Michigan, although The cost will be around $11,000 he has been as risk management and procure- as be relevant in universities in other states offer for all eight courses; discounted working with an ment strategy. There also will be a the Detroit com- similar programs, said Toni rates possible for companies en- executive educa- company-related project and op- munity — Somers, interim chairwoman of rolling multiple employees, tion task force of portunities to study abroad over where, she said, the department of management Somers said. faculty members Williams the summer break, said John Tay- a void exists in and information systems and a The first program begins this since November lor, director of supply chain pro- executive education offerings. professor of information systems fall. Find more information at to identify what grams at WSU. “It’s critical for us as a business management. business.wayne.edu/certifi courses would The cost is $3,495 per student. school in Detroit to meet the needs The curriculum consists of five cates/ism.php. best match the Registration, at AIAG’s website of the businesses here and contin- required courses on topics such — Bridget Vis expertise of the ue to meet the needs of those busi- (www.aiag.org), ends Wednesday. school’s faculty Dickson nesses for years to come,” said with the desires Williams, who appointed the exec- of the Detroit business community. utive education task force. “Two things that have frustrat- She said the executive education ed me in the past are that we unit also will help spread the word haven’t had more connections about the expertise of the business with the companies located school’s faculty and help them stay around us and that our extremely up to date on what is happening in talented faculty hasn’t been able to the world of business. contribute more to the local busi- Although Williams said the task ness scene,” Dickson said. force is still planning potential Although the business school course topics, offerings such as has offered executive education leadership and negotiation, which programs before, Dickson said, appeal to employees across all in- those programs were largely cus- dustries, have interested many or- tom programs for individual busi- ganizations with which task force nesses or industries. members have talked. Dickson The goal of the new arm is to said the preliminary curriculum offer a consistent set of open- offerings would be completed in enrollment and company-specific the next six months. courses, he said. The costs for the programs will “We don’t want to start at zero depend on the length — from after- every time a company approaches noon workshops to yearlong cours- us about offering a course,” Dick- es — and resources required for son said. “That’s why we are talk- them, he said. WE’RE SHAPING THE FUTURE ing with many organizations now The first program to fall under so we can structure our curricu- the executive education branch is OF BUSINESS IN MICHIGAN. From Previous Page do the work without going through Our award-winning programs and innovative research in cutting-edge fields the university, Frayer said, MSU loyalty to the university causes professors more often than not go help students make an impact and allow our corporate partners to thrive. them to run any requests they re- through his office, if only because of ceive from a business through the the large amount of front-end work Together, our talented faculty, students and alumni make Ross School rather than try to do it done to design the course. themselves. UM’s Barnett said the design of University of Michigan-Dearborn a leader in business education. Professors make far less when an individualized program some- they go through the university be- times can take several months of Learn more at cob.umd.umich.edu. cause they receive a small per- back-and-forth with the company. centage of the contract with the Senior staff members and faculty sit company or a previously agreed down with company officials to upon amount for such assign- learn what outcome they hope to ments. Some professors who do achieve, come up with some design nothing but executive education ideas and work from there, she said. for their university would not re- Debra Knill, human resource ceive any additional compensa- manager for Troy-based HMS Manu- tion for their work, aside from facturing Co., which designs, manu- travel expenses. factures and markets houseware At Michigan State, Frayer said products, said that for the past two no hard-and-fast rules exist for years, her company worked with of- when a professor should run such a ficials at Troy-based Walsh College to program through the university. develop a program for its managers. Typically, though, if a company just Knill said the classes dealt with wants someone to give a lecture or communication, managing team speak during a lunch event, the pro- dynamics and empowerment. fessors can do that on their own. The ideas for the classes came But where learning is the out- from top management but also come, materials are needed or the from talking with managers at the business wants employees to re- company to determine what skills ceive course credit or some type of they thought they were lacking. certificate, Frayer’s office wants to “Education,” Knill said, “is a get involved. part of our core values.” “There is a lot of flexibility,” he Chris Gautz: (517) 403-4403, said. [email protected]. Twitter: Despite it being more lucrative to @chrisgautz 20140203-NEWS--0012-NAT-CCI-CD_-- 1/31/2014 11:46 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS February 3, 2014 PEOPLE EDUCATION Ta’Shun White to IN THE SPOTLIGHT president, Everest Detroit-based law firm Honigman Institute, South- Miller Schwartz and Cohn LLP has field, from direc- hired longtime litigator Philip tor of education. Kessler as FINANCE partner. Kessler, 66, is Iuliana Keyes to best known for partner, vice pres- successfully ident of strategy defending the and client rela- Cicotte Doyle University of White tions, Thomas Fi- Colin Cicotte to shareholder, Reising nancial Group Michigan in the U.S. Supreme Ethington PC, Troy, from associate. LLC, Troy, from Also, Jeffrey Doyle to shareholder, Court in a case client relations from associate. manager. against the Daniel Willard to Kessler university’s NONPROFITS executive direc- affirmative tor, Pointe Capital action policy in 2003. Becca Goodman Management LLC, Kessler had been a partner for to director of an- Grosse Pointe Thompson & Knight LLP in Detroit nual giving, Farms, from equi- Tamarack Camps, since 2011. Prior to that, he had Bloomfield Town- ty research ana- been an attorney and partner at lyst, T. Rowe Price ship, from event Butzel Long PC beginning in 1972. team consultant, Willard Associates Inc., He served as Butzel chairman from Baltimore, Md. Crowdrise, Royal 2006-2010. Oak. HEALTH CARE Kessler has a bachelor’s degree Katy Wyerman to from the University of Michigan and director of re- Michael Mithen to a law degree from the University of source develop- president and California at Berkeley School of Goodman ment, Belle Isle CEO, CarePatrol Law. Conservancy, De- of Oakland Also, the following associates were troit, from Detroit revitalization fel- County, Livonia, low and program manager, NextEner- promoted to partner: Kimberly gy, Detroit. from senior ad- Dudek, Scott Geromette, Steven ministrator, HCR Migliore and Matthew ManorCare Co., SERVICES VanWasshnova in Detroit and West Bloomfield Matthew Weaver Township. Charles Duncan Jr. and Teymour El- DETROIT JUNE 9-12, 2014 Tahry in Bloomfield Hills. Tara to vice president Mithen Slone has joined Honigman as of sales, Certified LAW partner in the Detroit office from of Restoration Dry- cleaning Network Gillian Yee to counsel, Hall, Render, Killian, LLC, Berkley, shareholder, Ogle- Heath & Lyman PC, Troy. tree, Deakins, from sales direc- Nash, Smoak & tor, Allied Insur- ance, a Nation- Stewart PC, Birm- Michael Lusardi to member, from as- wide Insurance ingham, from associate; and Rosanna Willis to mem- Co., Atlanta, Ga. HOW ARE YOU SHAPING sociate. ber, from of counsel. Also, Thomas Isaacs to member, Detroit office, from Bryan Ford to Amy Sabbota Got- Weaver THE FUTURE OF tlieb to member, associate; Jennifer Newby to member, managing direc- Dickinson Wright from associate; Scott Petz to member, tor, DWH LLC, Detroit, from vice presi- PLLC, Troy office, from associate; and Rachel Wolock to dent and team leader of the asset reso- MANUFACTURING? Yee from of counsel; member, from associate. lution team, PNC Bank, Troy.

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February 3, 2014 CRAIN’S DETROIT BUSINESS Page 13 BUSINESS DIARY ACQUISITIONS in Ohio. Rainbow plans to retain the Deadline for nominations is Feb. 28. EXPANSIONS triPlast Corp., Fort Washington, Pa., current Little Red School House staff See ww2.esd.org/awards/alpha_ opened a technology center at 7546 iRule LLC, Detroit, maker of mobile- Mobile Care Group Inc., Sylvania, of 350, as well as add additional posi- awards.htm for specifics. Submit en- Baron Drive, Canton Township. and tablet-based control systems for Ohio, opened a Michigan sales and options as enrollment increases. Web- tries to Leslie Smith, [email protected]. Phone: (734) 354-6683. Website: home entertainment centers, acquired erational office at 29200 Southfield site: www.rainbowccc.com. www.electriplast.com. On Controls, Salt Lake City, Utah, a The Engineering Society of Detroit Road, Suite 204, Southfield. Phone: control and automation system for pro- also invites entries for its Construc- (248) 809-6398. Website: www.mobile Denso International America Inc., fessional dealers and installers. CALL FOR NOMINATIONS tion and Design Awards, which honor caregroup.com. Southfield, the North American head- Financial terms were not disclosed. The Engineering Society of Detroit in- owners, designers and builders and SVS Vision Optical Centers, Mount quarters for Denso Corp., Kariya, Websites: www.iruleathome.com, vites entries for its Alpha Awards for recognize team achievement and in- Clemens, opened a location in the Aichi prefecture, Japan, is investing www.oncontrols.com. Innovation in Engineering and Tech- novative use of technology. Deadline Gateway Marketplace shopping cen- $55 million and adding more than 130 for nominations is Feb. 28. At least Rainbow Child Care Center, Troy, ac- nology to recognize members of those ter, 2023 W. Eight Mile Road, Detroit. new manufacturing jobs at its manu- one of the primary members of the Telephone: (313) 365-3300. Website: quired Little Red School House, an professions who develop innovative facturing facility in Athens, Tenn. project team must be an ESD member. www.svsvision.com. early childhood education company solutions to benefit the needs of the Website: www.globaldenso.com. Submit entries at ww2.esd.org with 11 locations in Kentucky and two general public, business or academia. Art Van Furniture Inc., Warren, an- /awards/construction-design.htm. nounced the addition of its seventh NEW SERVICES Chicago-area location, 1021 Butter- CONTRACTS field Road, Downers Grove, Ill. The ProQuest LLC, Ann Arbor, announced store is scheduled to open in January that its collaboration and document Rubicon Genomics Inc., Ann Arbor, 2015. Website: www.artvan.com. management tool Flow is now accessi- specializing in the development and ble free for researchers. Website: commercialization of nucleic acid li- Integral Technologies Inc., Belling- www.proquest.com. brary preparation products used in re- ham, Wash., and its subsidiary Elec- search and clinical testing, announced distribution agreements to expand availability of its products in Europe, Asia and Australia/New Zealand. Am- pliTech SARL, Compiegne, France, will provide distribution for France; HPST sro, Prague, Czech Republic, for Czech Job Openings for the General Retirement Republic; LuBioScience GmbH, System and the Police and Fire Retirement System of the City Luzerne, Switzerland, for Switzerland; Recenttec Inc., Taipei, Taiwan, for of Detroit Japan; Pisma Biotech Corp., Taipei, for Taiwan; S.M. Chemical Supplies Co. The Retirement Systems of the City of Detroit are seeking applicants for Accounting / Financial Ltd., Bangkok, Thailand, for Thailand; professionals. Interested individuals are invited to review the requirements and specifications for a Head Accountant position and a Valuation Analyst position online at www.rscd.org and and Custom Science Ltd., Auckland, www.pfrsdetroit.org . New Zealand, for Australia and New Zealand. Website: www.rubicon All correspondence and inquiries concerning both positions should be directed solely to Angela genomics.com. Keeler at [email protected] Beaver Aerospace & Defense Inc., Livonia, a manufacturer and designer of custom ball screws and broad-range actuation products for the aerospace and defense industries, and a subsidiary of Phillips Service Industries, announced two contracts with Parker Aerospace, Irvine, Calif., a business segment of Parker Hannifin Corp., in which Beaver will supply horizontal stabilizer ball screw assemblies for the Bombardier Global 7000 and Bombardier Global 8000 ultra-long- range jets. Website: www.beaver-on line.com. Coldwell Banker Weir Manuel, Troy, signed a strategic marketing agreement with Talmer Bank and Trust, Troy. Talmer will provide mortgage services to clients across all of Cold- well Banker’s offices in Southeast Michigan and in West and Mid-Michi- gan. Websites: www.cbwm.com, www.talmerbank.com. Plumbing Professors, Canton Town- ship, was awarded an epoxy pipe-lin- ing contract to line storm sewers at the Chrysler Proving Grounds, Chelsea. The project manager will be Barton Malow Co., Southfield. Website: www.plumbingprofessors.com. JTEKT Corp., Nagoya, Japan, with North American headquarters in Ply- mouth, a supplier of automotive steer- ing systems, all-wheel-drive couplings and bearings, announced it will invest $91 million to build a manufacturing facility in San Luis Potosi, Mexico. Construction of the 204,500-square- foot plant is expected to begin in spring 2014 and operations to start at With our speed and design assistance... the end of 2015. The plant will employ 300. Websites: www.jtekt-na.com, We aren’t just another subcontractor. www.jtekt.co.jp/e/. We become part of your team. Domino’s Pizza Inc., Ann Arbor, final- WE’LL GET YOU TO THE TOP. ized a multiyear beverage supplier contract with The Coca-Cola Co., At- lanta, Ga., continuing their long-term The GVSU Seidman College of Business full- or relationship. Websites: www.dominos .com, www.coca-colacompany.com. part-time M.B.A. is raising the bar. West Michigan’s Getting your premier business college is making it their business project complete DIARY GUIDELINES to give you the tools to go far. Get in on the ground faster than any Email news releases for Business ƃoor and apply for your future today. other building Diary to cdbdepartments@ crain.com or mail to Departments, product around. Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997. Use any Business Diary item as a model for your release, and KERKSTRA PRECAST look for the appropriate category. www.kerkstra.com Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20140203-NEWS--0014-NAT-CCI-CD_-- 1/31/2014 11:27 AM Page 1

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TUESDAY in Mexico. Automation Alley head- STARTS HERE. DUGGAN: CRAIN’S NEWSMAKER quarters, Troy. $30 in advance, $50 at FEB. 4 the door; preregistration closes Feb. 4. Contact: Blanca Berthier, The Super Bowl: Mega Opportunity or OF THE YEAR FOR 2013 (312) 404-9468; email: blanca.berthi Marketing Quicksand? 8-10:30 a.m. Join Crain’s Detroit Business to [email protected]; website: www.au A business degree from Marketing & Sales Executives of De- hear our Newsmaker of the Year for tomationalley.com. Wayne State University troit. With Mike Bernacchi, professor 2013, Detroit Mayor Mike Duggan, of marketing, University of Detroit does more than address the Southeast Michigan Mercy, presenting a marketing analy- business community. The event FRIDAY provide an academic sis of the 2014 Super Bowl and how it takes place 11:30 a.m.-1:30 p.m. affects brand building and sales FEB. 7 foundation for success Feb. 25 at MotorCity Casino Hotel. growth. Michigan State University The luncheon also will honor the Management Education Center, Troy. The State of Michigan Business: A Con- — it helps open doors. winners of Crain’s 2013 Best- versation with Gov. Snyder. 11 a.m.-1 $20 MSED members, $60 nonmembers. Managed Nonprofit and the Our graduates join a Contact: (248) 643-6590; website: p.m. Detroit Regional Chamber. The Newsmaker Student Scholarship www.msedetroit.org. governor will outline his plans for 2014 strong network of more awardee. and continued efforts to move Michi- than 31,000 successful Tickets are $65 for individuals, gan forward as the nation’s comeback Detroit Economic Club Meeting. 11:30 alumni across Metro $55 for students and $70 each to state. MGM Grand Detroit, Detroit. $45 a.m.-1:30 p.m. Detroit Economic Club. reserve a table for 10. Detroit chamber members, $150 non- With Charles Evans, president and Detroit and worldwide. For more information, call Kacey members. Contact: Marianne Alabas- CEO, Federal Reserve Bank of tro, (313) 596-0479; email: Whether you’re landing Chicago. Westin Book Cadillac, De- Anderson at (313) 446-0300, email her at cdbevents@ [email protected]; web- that ﬁrst job or making troit. $45 DEC members, $55 members’ site: www.detroitchamber.com. guests, $75 nonmembers. Contact: De- crain.com, or visit your way to the troit Economic Club, (313) 963-8547; www.crainsdetroit.com/events. email: [email protected]; website: Join the conversation with executive suite, there’s www.econclub.org. #crainsnewsmaker. UPCOMING EVENTS likely a Wayne State Macomb Business Awards. 8-10 a.m, Matthew J. Simoncini, BS ’85 Feb. 11. Sterling Heights Regional Building Your Tech Startup From the alum nearby, ready President and CEO, Chamber of Commerce & Industry. WEDNESDAY Ground Up. 6-8 p.m. TechTown Detroit. to help. Lear Corporation Recognizing Macomb County busi- FEB. 5 TechTown Detroit. $15. Contact: Di- nesses that are leaders in workforce Getting Funding to Open, Grow and/or ane Love-Suvada, (313) 879-5250; email: development, energy efficiency, diver- Sustain Your Small Business. 7:30-9 [email protected]; website: sification, corporate philanthropy and a.m. Southfield Area Chamber of www.techtowndetroit.org. starting new endeavors. With opening Commerce, Comerica Bank. With pan- remarks by Gov. Rick Snyder; keynote elists from Comerica Bank, the Center speaker Tom LaSorda, former CEO of for Empowerment and Economic De- THURSDAY Chrysler Group LLC and founder of velopment, the U.S. Small Business FEB. 6 IncWell LP; emcee Huel Perkins, WJBK Administration Michigan District Of- Fox-2 Detroit; and awards presenta- School of Business Administration fice and Hennessey Capital LLC. ITT Mexico’s Fiscal and Legal Reforms, tion by Macomb County Executive Technical Institute, Southfield. $5 Manufacturing Trends and Outlook for Mark Hackel. Andiamo Italia, Warren. Southfield chamber members, $10 business.wayne.edu 2014. 8 a.m.-12:15 p.m. Automation $20. Contact: Maria Zardis, (586) 469- nonmembers. Contact: Tanya Markos- Alley. Join the U.S.-Mexico Chamber 6489; email: maria.zardis@macomb AIM HIGHER Vanno, (248) 557-6661; email: gov.org; website: www.suscc.com. [email protected]; web- of Commerce for a discussion on the site: www.southfieldchamber.com. changing dynamics of doing business What Gen Y Wants: Marketing to Mil- lennials. Adcraft Club of Detroit. 11:30 a.m.-1 p.m. Feb. 13. With Lindsey Pol- lak, chairwoman, Cosmopolitan magazine’s millennial advisory board. The Reserve, Birmingham. $35 members, $45 nonmembers, $25 junior and student members. Contact: (313) 872-7850; website: www.adcraft.org. Financing Experience Grow Your Business Through MBE Cer- tification and Minority Business Devel- opment Agency Services. 3-5 p.m. ® March 5. Asian Pacific American Chamber of Commerce, Michigan His- In Your Corner. panic Chamber of Commerce. With Di- ane Lee, project director, Detroit Mi- ■ Financing matters including asset-based nority Business Development Agency, providing information on becoming and real estate loans certified as a minority business enterprise; leveraging MBE status to com- ■ Mergers and acquisitions transactions, pete for corporate and government business and general corporate work contracts; and maximizing global business development and access to capital ■ In Your Corner. and markets through MBDA services. Free; open to APACC members and nonmembers. Register by March 4. Contact: Christina Mui, (248) 430-5855; email: [email protected]; website: www.apacc.net.

CALENDAR GUIDELINES If you want to ensure listing online and be considered for print publication in Crain’s Detroit Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, click “Submit Your Entries” from the drop-down menu that will appear, and you’ll be taken to our online submission form. Fill out the form as instructed, and then click the “Submit event” button at the bottom of the page. That’s all Kristen Veresh there is to it. Contact Kristen at [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing More Calendar items can be found on the Web at www.crainsdetroit.com. 20140203-NEWS--0015-NAT-CCI-CD_-- 1/31/2014 6:22 PM Page 1

February 3, 2014 CRAIN’S DETROIT BUSINESS Page 15 McGraw Wentworth’s Suppliers consider expansion, investment in Russia owner acquires Troy BY DUSTIN WALSH auto market will grow by an aver- fuel systems supplier to invest and does business, which is not like benefits consultant CRAIN’S DETROIT BUSINESS age of 6 percent annually through expand in the country. Western Europe or the U.S.,” Meter 2020, reaching 4.4 million units in TI Automotive operates a plant in said. “Most suppliers are at least BY JAY GREENE Days away from the XXII Olympic sales, up from 2.9 million in 2012. St. Petersburg that supplies systems looking at moving into Russia, but CRAIN’S DETROIT BUSINESS Winter Games in Sochi, Russia, it’s Small four-door sedans and sport- to Ford Motor Co., General Motors Co., they want to invest wisely.” not just the world’s elite athletes utility vehicles are the most popular Nissan Motor Co. and Volkswagen AG. Russia’s recent and well- Marsh & McLennan Agency LLC, vying for position. The country’s choices for Russian buyers. Howev- “The fact that we currently have documented corruption scandal parent company of Troy-based increasingly stable economy is er, the Russian economy sputtered facilities in Russia has been advan- involved the 2009 death of Sergei McGraw Wentworth, has acquired gaining the attention of Southeast in 2013, leading to a 6 percent drop tageous, because Magnitsky, an attorney for British Great Lakes Employee Benefit Ser- Michigan’s automotive industry. in new vehicle sales, according to a some of our com- hedge fund manager Bill Browder. vices, also in Troy, for an unspeci- Rainer Jueckstock, co-CEO of recent report by the Association of Eu- petitors do not.” Russian officials arrested and de- fied amount. Federal-Mogul Corp., said the South- ropean Businesses. Kozyra said in tained Magnitsky in 2008 following Great Lakes’ co-owners Jim field-based brake Rick Hanna, global automotive an email to his complaints about corruption be- Scoggin and Joseph Coan and and piston sup- leader for Price- Crain’s. “It’s a tween Moscow energy companies their staff of 12 will move to Mc- plier believes waterhouseCoop- market we are OAO Gazprom and Surgutneftegas and Graw Wentworth’s offices dur- Russia has a solid ers LLP in Detroit, watching close- government officials as well as an ing the second quarter. long-term future said a major dri- ly, as with the alleged $230 million tax fraud ring. Founded in 1997, Great Lakes for suppliers. ver of U.S.-based other BRIC na- Magnitsky died after 358 days in reported annual revenue last Russia is “a supplier growth tions.” The BRIC prison. A United Nations human year of $3.4 million. The compa- rich country with in Russia is in- Kozyra nations are rights group later determined he ny offers employee benefit con- oil and gas re- centives. Brazil, Russia, India and China. was severely beaten moments be- sulting services to self-funded sources, which is The govern- Van Buren Township-based Vis- fore his death, the Washington and fully insured midsized or- growing its mid- Jueckstock ment said last teon Corp. strengthened its position Post reported in 2011. ganizations, but is not a broker. dle class,” Jueck- month that it in Russia in October when it in- Transparency International, an or- “Our business has gone stock said. “It’s the largest country in Hanna would offer $8 creased its stake to 69 percent from ganization that measures percep- through an amazing three to four the world with the need for more billion in subsidies through 2016 49 percent in its interior electronics tions of corruption worldwide, years with the Affordable Care roads; there’s no doubt that Russia for research and development to joint venture with Russia’s Avtopri- ranked Russia 127th out of 177 Act,” said Scoggin, who along will develop.” boost its domestic industry, bor. It made Visteon a majority countries on its Corruption Per- with Coan will become a Mc- Automakers and suppliers are Reuters reported. shareholder in one of Russia’s ception Index in 2013. Graw Wentworth account direc- making efforts to expand in Russia, Of the 2.9 million cars sold in largest cockpit electronics suppliers, However, the Russian govern- tor. but with measured caution as politi- Russia in 2012, nearly 2 million of Automotive News Europe reported. ment, led by President Vladimir “Prior to ACA we thought we cal uncertainty and corruption con- them were imported. Livonia-based safety system sup- Putin, is moving to thwart corrup- could continue to offer our ser- tinue to plague its budding economy. Even more dismal is the Russian plier TRW Automotive Inc. is also in- tion, Hanna said. vices to clients, but it would have Federal-Mogul operates piston supply base; only 25 percent of parts terested in the market, but reluctant In 2012, Russian Prime Minister been extremely difficult to bring plants in Naberezhnye Chelny and of Russian cars are produced inside to put on a full rush into Russia. Dmitry Medvedev signed The Organi- clients the resources they need.” Togliatti, and entered an agreement the country, Automotive News Eu- “We have no reason not to support sation for Economic Co-operation and De- Scoggin said MMA and Mc- to acquire Dimitrovgrad-based sup- rope reported. That figure, however, manufacturing in Russia,” Peter velopment’s Anti-Bribery Convention. Graw Wentworth’s resources plier DZV Bearings Co. in December. is expected to rise to 30 percent to 35 Lake, TRW executive vice president The organization works to reduce will provide clients with more It employs roughly 750 in Russia. percent in the next 18 to 24 months, of sales and business development, corruption by promoting policies help in regulatory compliance, The supplier also operates a BCG analyst Nikolaus Lang said in told Automotive News Europe. “It’s with international governments. data analytics and actuarial sales and administration office an interview with ANE. just a question of time.” “The question remains whether service areas to assess benefit and is opening a warehouse soon, “A global trend is for automak- Hanna said suppliers are capital- you can trust the Russian govern- plan costs and best practices. Jueckstock said. ers to build cars where they sell izing on Russia’s skilled labor work- ment and court system to protect McGraw Wentworth was Jueckstock’s enthusiasm for the them, and Russia is no different,” force and high education rates. your business, but confidence is founded in 1997 and has grown Russian market is backed by ana- Hanna said. “The Russian govern- But the industry is approaching growing,” Hanna said. “Putin has to 75 employees and $18.4 mil- lyst expectations. ment is providing incentives to get the market with caution due to po- been in power for some time and lion in revenue last year. The Russian automotive market content built in Russia, which is litical unrest and a renowned his- seems to be consolidating laws and McGraw Wentworth is part is predicted to overtake Germany attracting the supply base … .” tory of corruption, said Betsy Me- working hard to address corrup- of White Plains, N.Y.-based as the largest market in Europe by Bill Kozyra, chairman and CEO ter, partner and automotive audit tion to attract foreign investment.” MMA’s Upper Midwest region. 2020, according to a 2013 study by of Auburn Hills-based TI Automotive leader for KPMG LLP in Detroit. Dustin Walsh: (313) 446-6042, MMA (NYSE:MMC) also ac- Boston Consulting Group. Inc., called Russia a long-term mar- “There’s reluctance from the in- [email protected]. Twitter: quired Cambridge Property & Ca- The firm forecasts that Russia’s ket, but customers are asking the dustry because of the way Russia @dustinpwalsh sualty of Livonia last December. MARKET PLACE REAL ESTATE

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Page 16 CRAIN’S DETROIT BUSINESS February 3, 2014 Warrior: Sporting goods company is geared to play globally ■ From Page 1 mets and masks. That was in 2002. The business re- The company by other soccer and lacrosse sup- That’s just one world stage. War- A LEG UP lationship began with New Balance is poised to be- pliers. licensing lacrosse cleats under the come a major rior made its first major move into Warrior Sports says it currently has “They’re going to come at it with global branding in 2011 when it soccer uniform, or kit, deals with: Warrior brand name, Morrow said. brand, with more of an attitude and edge than broader con- signed a six-year contract to pro- Ⅲ Liverpool FC of the English “I realized that lacrosse was a we’ve seen,” he said. “It’s a brand vide uniforms — known as kits — Premier League great business; Warrior was grow- sumer recogni- that’s going to appeal to a young, English Premier League tion, said Marty for the soccer Ⅲ Sevilla FC of Spain’s top soccer ing, making money,” he said. “But brasher consumer. That’s proba- club Liverpool FC beginning in 2012. league, La Liga it was a seasonal business. In the Maciaszek, di- bly a winning position. They’ve rector of commu- Warrior replaced German sporting Ⅲ Sagan Tosu of Japan’s top-tier J. low season, there wasn’t really been pretty effective in marketing goods giant Adidas AG. League Division 1 much going on. I needed more cap- nications for the to that consumer.” Mt. Prospect, Ill.- The deal pays Liverpool, one of Ⅲ Randers FC, which plays in ital to buy or invest in new sports. Maciaszek the league’s long-popular teams Denmark’s top-flight Danish “That led me to believe that to based National despite a lack of recent champi- Superliga do that, I needed a strong financial Sporting Goods Association, an indus- The market onships, an average of $39 million Ⅲ Club Sport Emelec in Ecuador’s partner.” try trade group. The sporting goods, apparel and a year. Primera Categoría Serie A He declined to disclose his sale “Warrior, they’ve certainly es- footwear market is crowded but That fee allows Warrior to sell Ⅲ Shamrock Rovers of the League price when New Balance bought tablished themselves as a recog- dominated by just a few companies. Liverpool merchandise globally — of Ireland’s Premier Division Warrior in February 2004. nizable name in the hockey indus- Warrior corporate parent New the backbone of the company’s ef- Warrior employs 600 people try,” Maciaszek said. “A big part of Balance, founded in 1906, is in the fort to become a major brand play- it is brand recognition. If you can New Balance Athletic Shoe Inc., also globally. Its Warren operation is second tier of the industry. It said in er in sports apparel, footwear and get some big names or Olympic based in Boston, that led to the Liv- the headquarters and North Amer- a company fact sheet that it generat- equipment. presence, that goes a long way to erpool deal, Morrow said. ican equipment distribution cen- ed $2.4 billion in 2012 global revenue becoming a player in the market.” “That’s how you fund those “Basically, what built the bridge ter for its products. and $1.2 billion domestically. Consumers spent $175 million deals. It’s a prepaid royalty against was New Balance had done a spon- Footwear and apparel are done The market, based on 2012 rev- on ice hockey equipment in 2012, sales,” Morrow said of the Liver- sorship at Fenway Park,” he said. out of other cities. Hockey design enue, is dominated by Beaverton, of which $64.4 million was sticks pool deal. “They approached us with the Liv- and development happens in Mon- Ore.-based Nike at $24 billion and and $34.4 million helmets, Maci- Warrior will provide up to 300 erpool deal.” treal. Hockey sticks are made in Adidas at $19.6 billion. aszek said. items for each Liverpool player, When news of the Liverpool kit Tijuana, Mexico. Lacrosse sticks A major competitor for Warrior Sales of $208.8 million for soccer from underwear to socks and prac- deal broke in 2011, the Warrior are made in Asia with some sourc- and its sister brand, Brine, in the footwear alone dwarf hockey, he tice gear, three different game uni- website crashed after getting 3.5 ing in Europe, Morrow said. lacrosse market is Kitchener, On- said. forms and apparel for variations million visitors from 185 countries tario-based Bauer Performance Selling soccer apparel and in the weather, he said. in 10 minutes, Morrow said. Sports Ltd., a major supplier of ice footwear is critical for a global “I was shocked at the amount of The revenue hockey, lacrosse and other sports push, said Matt apparel it takes to outfit a soccer Warrior did more than $200 mil- equipment. Powell, chief club,” Morrow said, chuckling. Unexpected success lion in sales in 2013, Morrow said. “Those two brands are very analyst for the The cost of equipping the team is Morrow, 42, said he didn’t ex- That’s up from $100 million in 2010 competitive in lacrosse,” said Charlotte, N.C.- easily made up in the retail sales. and substantially more than the $14 Bauer CFO Amir Rosenthal. pect Warrior to grow into a major based sporting Warrior sells hundreds of Liver- million Warrior was doing annual- “We’re also very keenly aware of sporting goods corporation. goods con- pool-branded items, including 30 ly when Morrow sold the company. the strength of those competitors.” The Troy native was an All- sulting firm types of jackets, Morrow said. As part of the sale, he remains American lacrosse player at SportsOneSource Bauer had $374.8 million in 2012 The main retail item, however, is president and CEO and is the bene- Princeton who founded the compa- LLC. revenue, largely derived from the team jersey, which retails for ficiary of a long-term incentive plan owning more than 50 percent of ny after he and his father began “If you’re go- $74 on the official team online store. tied to the company’s performance. the ice hockey market. crafting titanium sticks to replace ing to win inter- “The jersey is the big driver, but He does not have an equity stake. In the sporting goods industry, the aluminum ones that kept Powell nationally, they also buy lots of the other “It’s been a pretty rapid expan- Maciaszek likened Warrior’s ex- breaking during games. you’ve got to win on the soccer stuff,” Morrow said. sion,” Morrow said. pansion effort to Baltimore-based Naming the company after his pitch,” he said, adding that Nike He declined to specify how many That expansion was partially fu- Under Armour Inc.’s position in the high school team, the Birmingham Inc. didn’t pick up international jerseys Liverpool sells annually, eled by New Balance’s 2007 acqui- early 2000s, when it was just begin- other than it’s “several million.” Brother Rice High School Warriors, credibility as a brand until it in- Morrow launched Warrior Sports sition of a major Warrior competi- ning to emerge and gain endorse- Industry analysis shows that Liv- tor — Boston-based Brine Inc., a vested in soccer. ment deals as a supplier of mois- erpool is the fourth-best-selling in 1994. His first year, he sold Morrow said that is exactly War- $300,000 worth of sticks, which are soccer, lacrosse and field hockey ture-wicking compression gear. jersey in the world among the 20 equipment company. rior’s business strategy. strong and less prone to snapping Maciaszek said he sees War- Premier League teams. Warrior’s soccer business is dri- “Right now, we picked soccer be- rior’s deal with Liverpool as a ma- than aluminum. “Our home kit is the best-selling ven by retail sales of performance cause it’s global and gives us ac- jor milestone toward that global A decade later, Warrior’s success in history of Liverpool,” Morrow footwear, which accounts for 45 cess to international markets,” he expansion goal. prompted the sale to New Balance. said. percent of sales, Morrow said. The said. “It’s so massive, you have to “It’s something they can build At the time of the sale, Warrior Liverpool is owned by Boston- remainder is apparel for players. develop business plans by country. on,” he said. “If they can get that generated annual sales of $14 mil- based Fenway Sports Group, which It’s a big, big undertaking.” brand recognition out there, lion. also owns the Boston Red Sox. Helping Warrior stand out are there’s no reason they cannot cor- It was the proximity and ongo- “They approached us. It wasn’t Name recognition the untamed color schemes and ner a chunk of the marketplace.” my intention to sell. It took me off ing relationship between Fenway Sporting goods industry insiders marketing of its soccer and Bill Shea: (313) 446-1626, Sports Group and Warrior parent guard,” Morrow said. are impressed with Warrior’s effort lacrosse items, which Powell said [email protected]. Twitter: to position itself as a major player. are largely staid when produced @bill_shea19 THE MILLER LAW FIRM Changing the Odds in our Clients’ Favor Axle: Calif. company near land deal ■ From Page 3 feet under ownership or manage- 25.2 percent. Beshears, the Colliers vice presi- ment. He said Detroit’s industrial About 305,000 dent who is representing American market is primed for development square feet were Axle, declined to comment. because of a lack of modern space. vacated in the Beshears referred questions to He wasn’t available Friday to fourth quarter American Axle. discuss details of the plans. last year. Ac- “We have had discussions in the Dan Labes, senior managing di- cording to New- past with several potential buyers rector in the Southfield office of man Grubb, the and are in discussions with a poten- Newmark Grubb Knight Frank, said he city’s industrial tial buyer to explore the potential was pleased that Lichter plans market has 44.6 sale of the site,” Chris Son, director build-to-suit projects on the site Labes million square of investor relations, corporate The Miller Law Firm is Recognized and called it a departure from feet of space. communications and marketing for as a Leader in Complex Business Litigation Lichter’s usual strategy. Demand exists for new, high- American Axle, wrote in an email “His M.O. is typically to buy quality space in the city because to Crain’s. “No additional details buildings at a low price — usually much of the existing supply is ob- are available at this time.” Q Automotive Supplier Counseling Q Commercial and business lawsuits larger, older industrial buildings, solete, Labes said. About 540,000 square feet of the Q Employment litigation Q Shareholder and partnership disputes and he rents them out at a low Colliers International Inc. is the bro- 2.5 million square feet at the site Referral fees honored on contingency fee cases cost,” Labes said. kerage representing American Axle remain standing, Son said. According to data from Newman on the sales deal. Both Paul Chouk- Kirk Pinho: (313) 446-0412, 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com Rochester, Michigan 48307 Grubb, at the end of last year, De- ourian, managing director of the [email protected]. Twitter: troit’s industrial vacancy rate was Colliers Southfield office, and Brent @kirkpinhoCDB 20140203-NEWS--0017-NAT-CCI-CD_-- 1/31/2014 6:24 PM Page 1

February 3, 2014 CRAIN’S DETROIT BUSINESS Page 17 Defense: Budget cuts put contract jobs in jeopardy www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] of vehicle systems for BAE’s offices appropriations are made. Assuming GDLS resembles BAE vehicles in the United Kingdom in ASSOCIATE PUBLISHER Marla Wise, (313) 446- in Sterling Heights and its ranking A line-item change during nego- in employees working on the recent years and may downsize 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- site executive in Michigan. tiations between the House and Ground Combat Vehicle, more those programs in the U.S. as well. 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- “This size of a cut effectively Senate slashed 83 percent of the than 150 jobs could be affected. 1622 or [email protected] ends the program at the end of the program’s funding before the final Analysts told Crain’s the recent MANAGER, DIGITAL STRATEGY Nancy Hanus, technology demonstration phase in version of the spending bill vehicle contract losses could trans- Finding alternatives (313) 446-1621 or [email protected] MANAGING EDITOR/CUSTOM AND SPECIAL June,” he said. “We knew that the reached the president’s desk. late into cuts of 100 or more jobs at Dean Lockwood, weapon systems PROJECTS Daniel Duggan, (313) 446-0414 or [email protected] recent relief from (federal budget) The funding reduction doesn’t each company in Sterling Heights, analyst at Forecast International in SENIOR EDITOR/DESIGN Bob Allen, (313) 446- sequestration this year didn’t re- eliminate the vehicle program, but as well as increased bidding com- Newtown, Conn., said both compa- 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or store the budget, and there were go- Army officials and local experts petition from other contractors in nies will likely contend for the [email protected] ing to be cuts anyway, but my guess have said it signals an end for now. the next few months for other pro- AMPV, an alternative for the WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] is we will have to start moving a Peter Keating, vice president of grams. An Armored Multi-Pur- Army’s aging fleet of M113s, tracked WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- number of people off the program.” government relations and commu- pose Vehicle contract decision personnel vehicles that entered pro- 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, BAE has about 330 employees in nications at General Dynamics could come in November. duction in the 1960s, he said. [email protected] Sterling Heights, and Signorelli es- Land Systems, said that company “I am very bearish on the out- “That’s the sort of program, WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] timates nearly 300 of them have at also expects the 2014 funding ap- look for the armored vehicle in- which in a way is higher-priority EDITORIAL SUPPORT (313) 446-0419; YahNica least some job duties connected propriation will allow it to fulfill dustry in the U.S. But for the war than GCV,” Lockwood said. “In the Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- with Ground Combat Vehicle. Less the current contract, but then in Iraq, what’s happening right long run, yes, they would both like 1687 TIP LINE (313) 446-6766 than one-fourth of those are dedi- wind down the program later. now would have already happened to have had a big, new contract, es- cated full time to the program, he He declined to comment on how 10 years ago,” said James Hasik, pecially in this market, and this REPORTERS said, and some might be able to ad- many GDLS jobs are connected to senior fellow at the Atlantic Council (Ground Combat Vehicle loss) is go- Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. just their duties or transfer to other the program or might be affected. in Washington, D.C., and a consul- ing to hurt. But it might not hurt (313) 446-0325 or [email protected] projects — but the company still ex- GDLS has about 1,600 employees tant to defense contractors. “Be- that bad.” Amy Haimerl, entrepreneurship editor: Covers entrepreneurship and city of Detroit. (313) 446- pects some reduction in force. in Macomb County, across various cause there really are not any com- Signorelli said BAE expects to 0416 or [email protected] contract programs. The news on pelling developments among our be a contender for the AMPV, but Chad Halcom: Covers litigation and the defense industry. (313) 446-6796 or [email protected] Ground Combat Vehicle comes as it adversaries that suggest there’s hopes to hear sooner on U.S. Marine Tom Henderson: Covers banking, finance, Numbers change is also facing another revenue loss something wrong with most of the Corps contract awards for the Am- technology and biotechnology. (313) 446-0337 or [email protected] A $1.1 trillion federal omnibus on the Namer, a tracked heavy per- vehicle fleet capabilities we have phibious Combat Vehicle and an Kirk Pinho: Covers real estate, higher education, spending package signed by Presi- sonnel carrier assembled from now.” upgrade to its Armored Amphibi- Oakland and Macomb counties. (313) 446-0412 or [email protected] dent Barack Obama last month in- GDLS components for the Israeli Hasik said the companies will ous Vehicle, before the GCV con- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, cludes just $100 million in 2014 de- government. likely wind down the program this tract expires. If it has some success and transportation. (313) 446-1626 or fense appropriations for that Media reports in January said Is- year and salvage whatever re- there, that might mitigate job loss- [email protected] Nathan Skid, multimedia editor: Also covers the program. That’s off from $592 mil- rael’s latest five-year spending plan search or new technology they can es as employees can transfer into food industry and entertainment. (313) 446-1654, lion in Army’s budget request and calls for no more than 170 vehicles from it for other programs, and new programs, he said. [email protected] Dustin Walsh: Covers the business of law, auto in the previously adopted National through 2017. That’s compared with that the loss could be slightly Chad Halcom: (313) 446-6796, suppliers, manufacturing and steel. (313) 446- Defense Authorization Act of 2014, more than 380 kits over eight years worse for BAE, which suspended [email protected]. Twitter: 6042 or [email protected] Sherri Welch, senior reporter: Covers nonprofits, which authorizes funding before under a 2010 contract for GDLS. production on other tracked heavy @chadhalcom services, retail and hospitality. (313) 446-1694 or [email protected] LANSING BUREAU Chris Gautz: Covers business issues at the Capitol and utilities. (517) 403-4403 or [email protected] ADVERTISING

SALES INQUIRIES (313) 446-6052; FAX (313) Budget: Snyder must resell plan on Medicaid 393-0997 SALES MANAGER Tammy Rokowski ■ SENIOR ACCOUNT EXECUTIVE: Matthew J. From Page 1 Langan ADVERTISING SALES Christine Galasso, Jeff then would be used to begin paying income tax rate to 3.9 percent by ing performance metrics and tu- nies said, they plan to hire 1,357 Lasser, Dale Smolinski, Sarah Stachowicz the state’s share of the expansion 2017. It now stands at 4.25 percent. ition restraint. more workers to replace them. CLASSIFIED SALES Angela Schutte, manager, when the federal government stops A House package (House Bills But as a Senate Fiscal Agency (313)-446-6051 DIRECTOR OF MARKETING AND EVENTS paying all of the cost after 2016. 5265-5267) would lower the rate to report last year found, as the state Elizabeth Buscher But there are now two problems 4.05 percent by 2016 and allow for contributes less to higher educa- Rainy-day fund DIGITAL MARKETING MANAGER with that plan: The total savings further reductions of 0.1 percent tion and universities rely more on When Snyder came into office in Jennifer Chinn AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo amounted to only $133 million be- annually if, in the preceding year, tuition, the strings will mean less. 2011, the state’s rainy-day fund EVENTS MANAGER Kacey Anderson cause the Legislature did not give state income tax revenue in- Last year, for example, Wayne was down to $2.2 million. It now SENIOR PRODUCER FOR DIGITAL/ONLINE the bill immediate effect, pushing creased by $300 million or more. State University forfeited $534,700 in stands at $580 million. PRODUCTS Pierrette Dagg SENIOR ART DIRECTOR Sylvia Kolaski back its implementation by about Senate Majority Leader Randy state aid by increasing its tuition Last year, the governor recom- SALES SUPPORT Suzanne Janik, YahNica Crawford three months. And the Legislature Richardville, R-Monroe, and House more than 3.75 percent. Instead, its mended depositing $75 million into PRODUCTION MANAGER Wendy Kobylarz never created the savings account. Speaker Jase Bolger, R-Marshall, 8.9 percent increase brought in an the fund, and a similar deposit is PRODUCTION SUPERVISOR Andrew Spanos On Wednesday, Snyder again will said they are not backing one pro- estimated $14 million. expected again. CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write call for the creation of the fund and posal over another and are waiting Boulus said it’s unclear whether Kurt Weiss, a spokesman for the [email protected] make a new recommendation for to hear the governor’s plan. more universities will follow suit. Michigan Department of Technology, SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. how much should be put into it. Regardless, the rate now is higher “Each university is going to have to Management and Budget, said a state Outside U.S.A., add $48 per year to out-of-state The governor’s budget is expected than it would have been if Snyder look at it and do the math,” he said. rate for surface mail. Call (313) 446-0450 or having 6 percent to 8 percent of its (877) 824-9374. to be about $52 billion, of which and the Republican-led Legislature general fund in a rainy-day account SINGLE COPIES: (877) 824-9374 about $10 billion goes toward the had not halted a scheduled annual is considered a best practice by most REPRINTS: (800) 290-5460, ext. 125; Workforce development (717) 505-9701, ext. 125; or lindsay.wilson general fund, around $11 billion into decrease in the rate in 2011. states. The governor’s goal is even- @theygsgroup.com the School Aid Fund and most of the tually to build the fund back up to TO FIND A DATE A STORY WAS PUBLISHED: In last year’s budget, Snyder in- (313) 446-0406 or e-mail [email protected] rest flowing from the federal gov- cluded a new $10 million skilled between $1.2 billion and $1.5 billion. Higher education CRAIN’S DETROIT BUSINESS IS PUBLISHED BY ernment into specific programs. trades training fund to assist com- CRAIN COMMUNICATIONS INC. In this budget, Snyder also will Michael Boulus, executive di- panies across the state. The state’s CHAIRMAN Keith E. Crain Detroit settlement offer PRESIDENT Rance Crain lay out his proposal for what he rector of the Lansing-based Presi- Workforce Development Agency has TREASURER Mary Kay Crain Executive Vice President/Operations would like to see done with the dents Council, State Universities of requested that the program contin- The $350 million proposal that William A. Morrow more than $1 billion in surplus rev- Michigan, hopes to be pleasantly ue this year at the same level. the governor unveiled last month Executive Vice President/Director of Strategic Operations Chris Crain enue projected for the state. surprised Wednesday with word Patty Vanaman, a specialist at to help support Detroit pensioners Vice President/Production & Manufacturing In his State of the State address that Snyder will put more money the agency, said awards for the and the collection at the Detroit In- Dave Kamis Vice President/Chief Human Resources Officer last month, Snyder said Michigan into higher education. funds went out Oct. 1 to help 177 stitute of Arts requires legislation Margee Kaczmarek must first pay bills, put money to- In Snyder’s first budget, he companies with short-term needs outside of the budget proposal. Chief Information Officer Anthony DiPonio ward paying off long-term liabilities slashed higher education funding for skilled labor. All the money has Snyder’s preference is to divert G.D. Crain Jr. Founder (1885-1973) but also use it to provide some type 15 percent and in the following two been disbursed, but requests total- $17.5 million annually for 20 years Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: of tax relief for “hardworking folk.” years increased it by 3 percent and ing more than $15 million are pend- from the state’s tobacco settlement 1155 Gratiot Ave., Detroit MI 48207-2732; The amount of that relief is not ex- (313) 446-6000 2 percent, respectively. ing, Vanaman said. fund. Michigan will receive $250.9 Cable address: TWX 248-221-5122 AUTNEW DET pected to exceed $100 million. But the past two increases come Delaney McKinley, director of million from the tobacco settle- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the nowhere close to recouping those human resources for the Michigan ment in the next fiscal year. third week of August, and no issue the third week cuts from the first year, Boulus Manufacturers Association, said the Still, Snyder said he will take it of December by Crain Communications Inc. at Tax relief 1155 Gratiot Ave., Detroit MI 48207-2732. said, and in total have been part of success of the program shows the into account in his budget propos- Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send Last week, the House and Senate a decade of disinvestment in high- need exists. al because he will have to decide address changes to CRAIN’S DETROIT BUSINESS, moved forward with their own du- er education in the state. If the companies that received whether to continue to fully fund Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in eling plans for tax relief. “I think it’s time for a strategic the funds do as projected, the mon- any programs that the tobacco set- U.S.A. Entire contents copyright 2014 by Crain The Senate plan, written by Sen. reinvestment in our public univer- ey will have helped train 10,881 ex- tlement money previously funded. Communications Inc. All rights reserved. Jack Brandenburg, R-Harrison sities,” he said. isting workers and 1,773 new ones. Chris Gautz: (517) 403-4403, Reproduction or use of editorial content in any manner without permission is strictly Township, and contained in Sen- With each of the past three bud- As entry-level workers receive new [email protected]. Twitter: prohibited. ate Bill 402, would drop the state gets, strings were attached regard- skills and are promoted, the compa- @chrisgautz 20140203-NEWS--0018-NAT-CCI-CD_-- 1/31/2014 6:30 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS February 3, 2014 Highland Park: Hope amid hard times NEI: Round 2 funding ■ From Page 3 ■ From Page 1 Those plans even include new life the Highland Park location. at Woodward Place in July 2012, support in three broad areas: re- tion and hasten the city’s emer- for the Highland Appliance site. The location now has about 700 said business has grown steadily in searching the region’s assets, de- gency from bankruptcy. Mark Hackshaw, president of the employees in total, said Jack the double digits, showing High- veloping its workforce and sup- Egner said NEI is talking with Highland Park Business Association Wilkie, chief marketing officer of land Park can sustain more than porting entrepreneurism. local corporations to raise the and chairman of the city’s Tax In- DialogDirect. dollar stores and fast-food restau- In 2011, it narrowed its grants balance of the funds. crement Finance Authority, said Integrated Manufacturing and As- rants, she said. even further, funding entrepre- “Our learning said culture real estate sites like the vacant sembly LLC, a joint venture of Lear “Just because we came into the neur and innovation services exchange is going to take more store on Woodward Avenue have Corp., closed its Brownstown opera- city doesn’t mean we have to have clusively through grants made to than diversifying the economy” built-in value, namely, their location last year and moved employees a Dollar Menu,” Johnson said. organizations including the beyond manufacturing and auto- tion off a major regional artery. to Highland Park, increasing the With daily one-way traffic mov- Henry Ford Innovation Institute, motive, Egner said. “It’s Main Street USA,” he said. employee count to 200 from 130. ing through at a clip of 31,000 vehi- ProsperUs, Tech Town’s retail boot “These next three years are The authority purchased the cles a day, according to the city’s camp and Wayne State University’s about making the (entrepreneur- Highland Appliance property last economic development office, High- tech transfer office. ial) ecosystem stick.” fall, and the TIFA also now owns Auto heritage land Park’s stretch of Woodward Over the past five years, those the old city hall, fire station and oth- The city’s automotive roots are has the same potential as Midtown, grants have spurred 716 patents er properties on or near Woodward proving valuable today, both for said Lauren Hood, who served last and invention disclosures, 675 new Building, attracting talent and is preparing request for propos- providing a ready workforce and year as community and economic Southeast Michigan companies A $2.5 million grant from NEI als for them. The idea is to attract for revving up plans for auto-relat- development project manager. and 8,000 jobs, according to NEI. enabled the Detroit Economic businesses such as restaurants, ed tourism. Those results came despite the Growth Association, a nonprofit af- bars and entertainment venues. Cheryl Sanford is regional man- recent downturn that brought filiate of the Detroit Economic The city has plenty of retail; it ager for Michigan Human Resources Infrastructure higher unemployment, less avail- Growth Corp., to provide startup now needs these kinds of quality-of- Development Inc., which operates The city last year opened a new able capital and scrambling in financing for 15 businesses life businesses, Hackshaw said. the Highland Park Michigan fire station after years of firefighters the public sector to figure out downtown, said Olga Stella, vice “You’re not going to be able to go Works office. Sanford said Johnson working out of a warehouse. It does- safe investments, Egner said. president of business develop- downtown without stopping some- Controls Inc. hired at least 100 peo- n’t take long for residents to men- NEI has a strong Detroit focus ment at the DEGC. where in Highland Park,” he said. ple last year, and a handful of oth- tion this sign of progress in a place in its second round of grants. Eg- Through the Creative Corridor Conversations with other people er smaller manufacturers have in- where streetlights and water ser- ner said the majority of the new Incentive Fund, those grants in the local business community creased their footprint. vice are no longer taken for granted. grants will go to agencies within helped attract both a range of com- reveal optimism like Hackshaw’s Highland Park’s unemployment In 2011, DTE Energy Co. removed a 4.3-square-mile radius of De- panies — including Lowe Campbell — more than might be expected rate has dropped to 20 percent now 1,300 streetlights in a settlement troit’s urban core. Ewald; Lambert, Edwards & Associ- from a city that just emerged from from 35 percent in 2009. with Highland Park over $4 mil- That area is becoming the new ates; and GalaxE.Solutions — and financial management in 2009, a Movement also is happening in lion in unpaid energy bills. center of gravity for the region, the smaller creative businesses in status it had since 2001. a Model T-era Ford Motor Co. build- In 2012, the city shut down its wa- where innovation, entrepre- the Madison building, she said. No one glosses over Highland ing on Woodward that’s been emp- ter department because mainte- neurism, talent and investment Collectively, the 15 companies Park’s problems. But they say ty since the mid-1970s. The former nance costs had grown too high. are clustering, Egner said. occupied 457,000 square feet, cre- there’s more going on than people administrative building near the Paying Detroit’s water authority But NEI sees itself playing a sig- ated 1,400 jobs and leveraged $51 realize. Model T plant is in the final stages hasn’t helped much, though. The nificant role in connecting that million in more investment to “You never like to hear that your of a $550,000 purchase by the Wood- water and sewer fund went from work with neighborhoods aligned launch Detroit offices. city is going to be under control of a ward Avenue Action Association, us- $5.5 million to $12.5 million in the with the Detroit Future City During the grant period be- financial manager. But ... with all ing money that includes a $400,000 red from fiscal 2012 to 2013, a lead- Strategic Framework and with in- tween 2009 and 2011, it was hard the negative that’s been in Highland preservation grant from the Michi- ing factor in the state’s decision to novation champions around the for creative businesses to get the Park for so many years with arson gan Department of Transportation slap the financial emergency label region, including Ann Arbor Spark, conventional financing to make and fires and businesses leaving, I and $100,000 from the city’s TIFA. on the city this month. the Macomb-Oakland University Incu- building improvements or bridge gotta tell you I’m optimistic,” said The nonprofit envisions an auto- The Detroit Water and Sewerage bator and Automation Alley. some of the other costs needed to Nick Becharas, president of Becha- motive welcome center where Department last November sued NEI hasn’t yet made grant move into downtown buildings, ras Brothers Coffee Co., a coffee roast- tourists would get information on Highland Park for $16.9 million in commitments from round two. such as parking costs, Stella said. er that’s been in business for 100 automotive industry destinations, unpaid sewerage bills and $800,000 But it’s rolling $10 million in There’s still a need for this years and in Highland Park since much as a national park visitor in unpaid water bills accrued after first-round funding to continue kind of funding, she said. 1961. would go to a counter to pick up Highland Park started getting wa- its support of organizations “We’re definitely riding an up- “There’s business here,” he said. maps, said Executive Director ter from Detroit. working on innovation and en- ward momentum, but there’s still “It might not be as evident as what Deborah Schutt. The building also The city’s annual general fund trepreneurism. a gap in available capital.” Dan Gilbert is doing downtown be- would have a theater and displays. revenue is about $11 million. Its The Fisher Foundation recom- cause there’s no real destination The association plans to launch a long-term debt is nearly $58 million. mitted to NEI both in the spirit of point here in Highland Park. But $7.5 million capital campaign in Highland Park’s problems are by Power of 9 collaboration and because “we there’s business in the city.” April, said Schutt, who’s been work- no means solved by a handful of Nine of the original 10 founda- feel strongly about how this ing on this project for a decade. real estate developments, ob- tions supporting the initiative and work connects to the neighbor- Hackshaw said the coming M-1 servers agree. Like Detroit, it faces one newcomer, the William David- hoods outside the central corri- Corporate investment Rail line project, which will run declining population and high un- son Foundation, are participating dor,” said Executive Director Companies, some of them on land through Highland Park, and the employment. And it still has plenty in the second round. The last of Douglas Bitonti Stewart. vacated by Chrysler when it began its city’s relative proximity to other of unused real estate: an estimated the initial funders, the Skillman Outside of its participation in move to Auburn Hills in 1992, have hot spots are other selling points. 2,500 properties remain off the tax Foundation, also plans to make a NEI, the foundation has been hired hundreds of people in recent “Midtown basically ends at High- rolls, by Hackshaw’s measure. commitment but hasn’t yet final- supporting early childhood edu- years. That might not make a big land Park’s doors,” he said. “Fern- The 2000 census pegged Highland ized it, said Egner, who is also cation and basic needs in De- difference in Detroit. But in a city of dale basically ends at Highland Park’s population at 16,700. It president of the Hudson-Webber troit’s Brightmoor neighborhood fewer than 12,000 people, it can. Park’s doors,” Hackshaw said. dropped to 11,600 in 2012, according Foundation, one of NEI’s funders. for the past six years. “Every job makes a big differ- to the U.S. Census Bureau’s estimate. The other original funders are “There’s a recognition of the ence. Highland Park is a city that’s the Detroit-based Community Foun- fact that for the city to continue really ready to rise,” said Mike Retail activity dation for Southeast Michigan, this positive momentum, it’s go- Curis, president of Curis Enterprises The Highland Appliance site, and Jobs for jobs Southfield-based Max M. and Mar- ing to take place both in the cen- Inc., a Detroit-based commercial redevelopment efforts for it, is ex- Other developments serve as re- jorie S. Fisher Foundation, New York tral core and in the neighbor- real estate developer with business pected to provide a significant psy- minders that while it’s tough to get City-based Ford Foundation, Battle hoods,” he said. in Highland Park. chological boost for the stretch of past a phase of hard decline, it Creek-based W.K. Kellogg Founda- NEI demonstrated value in its Magna Seating of North America Woodward, north of the Davison, pays to be patient. tion, Miami-based John S. and James first seven years, said Kresge opened a plant in Highland Park in which still has its share of shut- Automotive repair manual pro- L. Knight Foundation, Troy-based President Rip Rapson. 2010 that now supplies seating to tered and burned-out storefronts. ducer Helm Inc. moved to Plymouth Kresge Foundation, Detroit-based Its efforts are helping attract all three Detroit automakers and Not that it’s all shuttered store- from Highland Park in 2011 after McGregor Fund and the Flint-based businesses and talent into De- employs 600 people. It also has fronts. The Model T Plaza shop- 35 years, taking about 100 jobs Charles Stewart Mott Foundation. troit, to create some of the pre- completed a $2.2 million expansion ping center opened in 1998 on for- with it, according to the Michigan NEI’s early goal for the second conditions those businesses of the plant begun in 2012. mer Model T plant property and Works office. And Chrome Craft round of funding was more than needed to get anchored there and Fort Worth, Texas-based call remains almost fully occupied, closed in 2009 for a loss of 64 jobs. $40 million, but the foundations to create a broader network of in- center operator Novo 1 Inc. last said Ferris Hamama, senior sales However, Plymouth-based Recy- were more comfortable with novation and creative activity year invested about $3 million to associate at Keystone Commercial cling Depot LLC began setting up op- three-year commitments that throughout the city — not just in build a call center at the headquar- Real Estate Services in Farmington erations in the Helm space last provide an opportunity to review Midtown, he said. ters of longtime Highland Park Hills, the leasing broker. year and should have 200 employ- the work that has been accom- “The challenge going forward business Budco Holdings Inc., result- The Shops at Woodward Place, a ees there within two years, said plished with funds from round in the next round,” Rapson said, ing in the addition of 200 jobs. retail development opened in 2008 Louis Starks, director of communi- two and whether future invest- “is the extent to which we can And Birmingham-based Glencoe on a former Sears site, has been ty and economic development. ments are needed, Egner said. take these successes and make Capital Michigan LLC, which owns fully occupied for more than a Said Becharas: “Obviously Many of the NEI funders are the them more broadly applicable to Budco and Novo 1, merged those year, said Curis, whose company things have changed. But the city same ones participating in the the rest of the city.” two companies and Troy-based Dia- manages the center. has got a lot of grit. We’re centrally fund to help shore up Detroit’s un- Sherri Welch: (313) 446-1694, logue Marketing Inc. into a new com- Theresa Johnson, who opened a located, we’ve been here forever derfunded pension plans, protect [email protected]. Twitter: pany called DialogDirect Inc., based at Tim Hortons franchise in The Shops and we’re not going anywhere.” the Detroit Institute of Arts’ collec- @sherriwelch 20140203-NEWS--0019-NAT-CCI-CD_-- 1/31/2014 5:49 PM Page 1

February 3, 2014 CRAIN’S DETROIT BUSINESS Page 19 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 25-31 Retention incentive: COMPANY NEWS Arbor-based Great Lakes En- $100,000 Source: Detroit trepreneur’s Quest, earlier an- Deferred compensation: An Oakland County Cir- nounced it had been re- Jackson exits None cuit Court judge ordered branded as MiQuest after a 2013 bonus: None retirees to fare nonbinding mediation to merger with the Lansing- Coleman, 70, the universi- resolve the legal dispute be- based Small Business Founda- ty president since 2002, will tween the Detroit Medical tion of Michigan. retire at the end of the acade- better in health Center and Flint-based The DTE Energy Founda- DEGC; mayor McLaren Health Care over mic year. Her compensation tion announced a $1 million package: the Detroit-based Karmanos grant to the Detroit-based Base pay: $603,357 benefits pact Cancer Institute. Michigan Science Center for Retention incentive: Less than four months science, technology, engi- seeks ‘clone’ $100,000 etroit’s more than after Compuware Corp. termi- neering and math programs Deferred compensation: 21,000 pensioners nated his consulting con- for children and families. hen Mayor Mike economic development that $175,000 D may have preserved tract, Peter Karmanos Jr. has Duggan appointed is at the DEGC belongs 2013 bonus: $100,000 a significant share of their started Mad Dog Technology W Tom Lewand to head there. They have done a Other perks: Both Schlis- retiree health care benefits LLC, according to docu- OTHER NEWS Detroit’s jobs and economic great job. I anticipate the sel and Coleman receive use under a settlement-in- ments from the Michigan De- Gov. Rick Snyder an- growth efforts, local devel- same relationship as it has of a car and driver and the principle reached in media- partment of Licensing and nounced he will run for a opers, CEOs and real estate been under George.” president’s mansion, and tion talks surrounding the Regulatory Affairs. The web- second term and is to kick agents collectively came to Who’s on deck to lead the the university pays their city’s bankruptcy. site of the software compa- off his re-election campaign heel. What did that mean DEGC, a nonprofit that has work-related expenses. Details of the deal, which ny revealed few details ex- Monday in Detroit. for the Detroit Economic De- been in charge of shaping The UM board of regents runs through year’s end, cept a Birmingham address. The Detroit Institute of velopment Corp. and its long- Detroit’s future since 1978? unanimously approved were expected in a joint Bankrupt Revstone In- Arts committed $100 million time leader? Was the center A search committee has Schlissel as Coleman’s suc- statement by the city and its dustries LLC is suing former over 20 years to a fund that of political gravity shifting? been formed — one that in- cessor Jan. 24. His base pay Official Committee of Retirees. Chairman George Hofmeis- would protect its art collec- That was on everyone’s cludes Lewand — and is led can be increased at the A source who asked not to ter in federal court in an at- tion and shore up Detroit’s minds last week when by Rod Gillum, chairman of board’s discretion. be identified told Crain’s tempt to recover more than underfunded pensions. In George Jackson resigned the DEGC and a sharehold- that the deal improves “by a $12.9 million. exchange, the DIA will be from the er in the Southfield office of significant chunk” the Chrysler and Fiat an- spun off from the city and DEGC after Jackson Lewis PC. Visit website, get culture amount Detroit agrees to nounced their combined transferred to the nonprofit 12 years to But for the mayor’s mon- In the mood to take in a pay out on its health bene- company would be re- that operates it. start his ey, he’d be looking “for a play, attend an arts class or fits, compared to the city’s named Fiat Chrysler Automo- Detroit officials gave own con- clone of George Jackson.” listen to a symphony? original position. biles NV and would be based Bank of America Corp. and sulting He chuckled, paused and Ixiti.com, a website that in the Netherlands. Chrysler UBS AG a deadline of this firm. He’ll then added: “Somebody will link patrons to metro Group LLC had been head- past Friday to say how be with the with honesty, somebody Detroit arts and cultural en- ON THE MOVE quartered in Auburn Hills. much they would accept to agency un- with business sense like tertainment events, tickets Detroit-based Health Al- Troy-based Talmer Ban- cancel interest-rate swaps corp Inc. set the price range Jackson til March 31 George Jackson.” and educational programs, liance Plan named James that cost city taxpayers — or longer has gone live. Connelly CEO to replace Bill for its planned initial pub- about $4 million a month or if needed to wrap up pro- The site, which launched Alvin. Connelly was CFO of lic offering in a filing with face a possible lawsuit, jects such as the proposed New UM chief paid well, Saturday, also offers oppor- HAP parent Henry Ford the U.S. Securities and Ex- Bloomberg reported. Detroit Red Wings arena at but not quite like Coleman tunities to volunteer and Health System and had been change Commission. The Southfield Mayor Bren- Woodward Avenue and I-75. make financial contribu- HAP’s interim CEO since company said it plans to da Lawrence announced she But his departure, Jack- So how does the compen- tions. October. sell 15.6 million shares of is running for the 14th Con- son said, has nothing to do sation package of University The site is under the um- The Wayne County Air- stock at between $12.50 and gressional District seat to be with Lewand’s appointment. of Michigan President-elect brella of CultureSource, the port Authority board elected $14.50 a share in the next vacated by Gary Peters, who “I’ve been planning on Mark Schlissel stack up association representing Alfred R. Glancy III as its two weeks. is running for U.S. Senate. doing something different against that of outgoing nonprofit arts and cultural chairman for 2014. Glancy The new owner of Ann Organizers announced for about five to six years, President Mary Sue Coleman? organizations in Southeast is executive chairman of Arbor Web analytics compa- that attendance at the North actually,” Jackson said. “I Competitively, but still Michigan. Ixiti.com also in- Seattle-based Unico Invest- ny ForeSee Results Inc. an- American International Auto think there just comes a less than Coleman’s when cludes the events of for- ment Group LLC and former nounced layoffs that reports Show in Detroit was more time that you decide that things like retention incen- profit companies, although chairman and CEO of MCN put at 50-75 of the company’s than 803,000, the highest there are other things you tives, deferred compensation only the association’s non- Energy Group Inc. and princi- 300 employees. St. Louis- since 2003. want to do in life, including and yearly bonuses are fac- profit members can host a pal subsidiary Michigan based Answers Corp. bought The Public Lighting Au- have a little more freedom.” tored in. Coleman’s current profile page describing Consolidated Gas Co. ForeSee in December. thority of Detroit approved a And Duggan said he does- total compensation package their organizations. Troy manufacturing Editors at Patch, which plan to upgrade city street- n’t intend to use the opportu- is $978,357, compared with Maud Lyon, executive di- software supplier Plex Sys- includes 30 hyper-local lights on an accelerated nity as a way to restructure Schlissel’s $850,000, accord- rector of CultureSource, tems Inc. hired longtime fi- news sites in Southeast timetable and use 150-watt the way economic develop- ing to figures provided by said the hope is that nancial executive Don Clarke Michigan, received word of LED lamps to replace exist- as CFO. Clarke, 54, replaces companywide layoffs that ing 70-watt sodium lights. ment happens in the city. the university. Ixiti.com will become a go- “In my mind, the division Schlissel, 56, is a bio- to place like yelp.com to see Michael Twarozynski, who re- put the sites at a standstill. Andra Rush, CEO of we have today is good,” he chemist who is the Brown what’s happening in mains with the company. Ivivva, an athletics Wayne-based Rush Trucking said. “The things that are at University provost. His com- Wayne, Oakland, Macomb, The American Heart As- store for girls by Lululemon, Inc., and Mary Barra, General the city — planning, etcetera pensation package: Washtenaw, Livingston, St. sociation named Catherine plans to move into Michi- Motors Co. CEO, were — they belong there. The Base pay: $750,000 Clair and Monroe counties. Smith, 39, executive direc- gan with a store to open among the guests sitting in tor of the Southfield-based this spring at the Somerset the viewing box of first Southeast Michigan American Collection in Troy. lady Michelle Obama at the Heart Association. She suc- The Detroit Lions said State of the Union address ceeds Kathy Kauffmann, now they are increasing regular- in Washington, D.C. senior vice president of ma- season ticket prices for 2014 The Raise Michigan bal- jor metro markets for De- and introducing a three- lot committee launched an BEST FROM THE BLOGS troit, Chicago and the Twin tiered ticket pricing system. effort to raise the state’s Cities. Detroit-based Futuram- minimum wage to $10 an READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Novi City Manager ic Tool & Engineering Co. and hour from $7.40 with a bal- Clay Pearson resigned, effec- Urban Science Applications lot initiative in November. A penthouse view, so to speak A market classic in the making tive March 1, to become Inc. will receive $1.3 million Michigan’s creative in- city manager of Pearland, in state assistance and plan dustries paid nearly $3.6 It’s a bird! It’s a Erik Olson is not Texas, a Houston suburb. to add 229 jobs in the city, billion in wages to 74,000 plane!“ It’s … the like“ the other Longtime Detroit the Michigan Economic Devel- employees during the 2011 Farbman Group? The entrepreneurs flocking weatherman Chuck Gaidica opment Corp. announced. fiscal year, said an ArtServe company has purchased to Detroit to capitalize will step down as director of Inventev, a Detroit- Michigan report. a DJI Phantom 2 Vision on the entrepreneurial meteorology at WDIV-Channel drone to use for gold rush. Olson based company with tech- photography and opened Thomas 4 in August to become pas- nology that allows commer- BITUARIES exploration of high-rise Magee’s Sporting tor of world outreach at cial trucks to generate O buildings. House Whiskey Bar in Novi’s Oak Pointe Church. electricity for equipment at Gino Polidori, a former Eastern Market. Grand Rapids busi- job sites, won $5,000 for hav- state representative from ” nessman Bing Goei will ing the best business plan in Dearborn who also served Kirk Pinho’s “Big City, Big Deals” blog can be found Nathan Skid’s “Table Talk” blog on area restaurants” is head the new Michigan Of- the Annual Collaboration for on the City Council and as at www.crainsdetroit.com/section/blogKirkPinho at www.crainsdetroit.com/skid fice for New Americans, Gov. Entrepreneurship awards. fire chief, died Jan. 26. He Rick Snyder announced. The event’s organizer, Ann was 72. DBpageAD_DBpageAD.qxd 1/21/2014 9:46 AM Page 1

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