One Square Mile, Thousands of Lives

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Readers first for 30 Years A trend reset puts new spin CRAIN’S on bowling alleys, DETROIT BUSINESS PAGE 3 SEPTEMBER 21-27, 2015

“There are plenty of opportunities; it’s picking the right ones.” Agent for change Arn Tellem powered up to be Gores’ point man for expansion

By Bill Shea [email protected] Detroit Pistons owner Tom Gores wants to get into the Detroit real estate market as part of his still-evolving plan to carve out a larger role for himself, the basketball team and his businesses locally and statewide. What that involvement down- GLENN TRIEST town looks like is unknown for now, Haifa Fakhouri sees opportunity for NorthTown as Syrian refugees relocate.“We believe in this revitalization project,” she says. but it will take shape in coming months after talks with Dan Gilbert, the Ilitch family and others. “We will look at real estate downtown,” confirmed Arn Tellem, the longtime sports dealmaker Gores One square mile, hired in June to orchestrate his expansion plans, in a wide-ranging in- PALACE SPORTS & ENTERTAINMENT terview with Crain’s on Wednesday. Arn Tellem: “We will look at real estate Tellem, 61, spent 30 years as one downtown.” of the most influential agents in American sports, primarily doing tainment LLC, the umbrella manage- thousands of lives billions of dollars in deals for play- ment company for the Pistons, the ers in the National Basketball Associ- Palace of Auburn Hills and other ation and Major League Baseball. venues. Last week was his first oper- Local activists want to rebuild NorthTown with help of Syrian refugees Now, he’s the powerful vice president of Gores’ Palace Sports & Enter- SEE AGENT, PAGE 29 By Dustin Walsh district, much like Greektown or Mexicantown, but [email protected] roadblocks remain. aifa Fakhouri, president and CEO of the “We’ve met with several organizations and lead- Arab American and Chaldean Council, has a vi- ers, but it’s moving slowly,” Fakhouri said. “We can Taubman CFO leaves H sion for Detroit — specifically, one square turn the city around and repopulate that area as mile of the city. more and more Syrian refugees need a place to go. A nearly 20-year-old plan to redevelop an area on We believe in this revitalization project; it will add to to pursue COO or CEO job Seven Mile Road, now known as NorthTown and the social mosaic of Detroit.” formerly called Chaldean Town, was stalled several Tom Kelly, director of government affairs for law years ago after the first phases were completed. firm Clark Hill PLC in Washington, D.C., and adviser to By Dustin Walsh for Taubman. … Now, Fakhouri and the ACC see opportunity the ACC, said refugees can stabilize the neighbor- [email protected] I have a lot of Lisa Payne coming from war-torn Syria, where millions have hood while offsetting population losses in the city. Lisa Payne is stepping aside as passion for man- fled seeking asylum across the eurozone to realize “That stretch of Seven Mile could be used as an CFO of Taubman Centers Inc. at the aging people, making a company the NorthTown project, including new multifamily anchor to build up the neighborhood,” Kelly said. end of the year. better, and I’m interested in doing Section 8 housing. “The wave of immigrants coming into the region But she’s not retiring. The long- that as a CEO or COO.” She believes as many 5,000 Syrian families seek- stopped 30 years ago and these neighborhoods des- time confidante to the Taubman Payne has been CFO since 1997 ing refugee status could call NorthTown home and perately need attention. This isn’t reinventing the family wants another challenge — and has seen the total return on in- revitalize the blighted neighborhood. wheel but something other major cities have done specifically, to be the top leader of vestment in shares of Taubman Fakhouri said the placement of refugees will another organization. Centers (NYSE: TCO) rise 1,254 per- jumpstart the local economy and create a vibrant SEE SYRIA, PAGE 28 “My plan is to think about a cent in that time, the company said leadership role,” said Payne, 56. in a release last week. © Entire contents copyright 2015 “I’ve loved every year I’ve worked But she was never going to be by Crain Communications Inc. All rights reserved. CEO there because it’s run by the crainsdetroit.com Vol. 31 No 38 $2 a copy. $59 a year. SPECIAL REPORT: HEALTH CARE Taubman family. Moving on was the best decision at this stage in her ca- Area hospitals reer. And Robert Taubman, chairman, president and CEO of Taub- work to staunch man Centers, understood it, she the revenue said. bleeding from cuts to Medicare, Eric Hohauser, vice president of PAGE 11 NEWSPAPER SEE PAYNE, PAGE 25 20150921-NEWS--0002-NAT-CCI-CD_-- 9/18/2015 5:00 PM Page 1

2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015

America said in a release. to more than $15.4 million. MICHIGAN Groundbreaking is expected in With the donation, Davenport INSIDE late 2016, with production starting has received more than more than THIS ISSUE in the second half of 2018. $18 million toward a $25 million CALENDAR ...... 21 CAPITOL BRIEFINGS ...... 25 Arauco already runs nine plants in goal for its Vision Campaign. Daven- CLASSIFIED ADS ...... 25 the U.S. and Canada. According to port is a private, nonprofit university DEALS & DETAILS ...... 22 UpNorthLive.com, Kirtland Commu- with nearly 9,000 students at cam- MARY KRAMER ...... 8 BRIEFS nity College has pledged $1 million in puses across Michigan and online. OPINION ...... 8 training for potential workers at the OTHER VOICES ...... 9 Tribe prevails in court fight District Court for the Southern District mill, which could spin off hundreds MICH-CELLANEOUS PEOPLE ...... 23 of New York, claiming Mylan misled of support jobs in the area. RUMBLINGS ...... 30 over plans for Lansing casino investors on key parts of its $27 bil- Ⅲ The Michigan Employment Rela- WEEK ON THE WEB ...... 30 A U.S. District Court judge in lion hostile takeover bid for Perrigo. Kellogg plans Africa growth tions Commission ruled that the Grand Rapids dismissed a lawsuit The lawsuit asks a judge to declare in- Michigan Education Association’s one- against leaders of the Sault Ste. Marie formation that Mylan sent to Perrigo by buying half of Nigeria firm month window to quit the union — COMPANY INDEX: Tribe of Chippewa Indians in a dispute shareholders “materially false and Battle Creek-based Kellogg Co. specifically, August — is too restric- SEE PAGE 29 over plans for a $245 million off- misleading” and in violation of feder- agreed to buy 50 percent of Nigerian tive and violates state law. The case reservation casino in downtown al securities laws. MiBiz reported. food distributor Multipro for $450 involves a 2012 right-to-work law Lansing. The decision is the second Dublin, Ireland-based Perrigo, million and is creating a joint ven- making financial support of unions sumers will have an option to pur- time a federal court has ruled in which maintains its headquarters in ture with Tolaram Africa to help ex- voluntary. The union may appeal to chase the wind farm. Consumers favor of the Upper Peninsula tribe. Allegan, filed the lawsuit days after pand on the continent, Bloomberg the state appeals court. currently purchases power from The Sault tribe is also pursuing a directors of the maker of over-the- News reported. The Tolaram venture Ⅲ Flint Mayor Dayne Walling asked seven Michigan wind farms, owns casino in New Boston near I-275 and counter drugs once again rejected includes an option for Kellogg to buy Gov. Rick Snyder for $30 million to and operates two wind farms and is Detroit Metropolitan Airport. Tribal Mylan’s offer and urged shareholders a stake in the African company in the help improve the city’s water system working on solar power projects. leaders are waiting for a decision from to take no action, arguing it signifi- future, Kellogg said in a statement. and replace lead service pipes, The Ⅲ The state will open a European the U.S. Department of the Interior on cantly undervalues the company. Costs associated with the Multipro Flint Journal reported. Virginia Tech re- office to increase trade and exports whether land it purchased in Lansing deal will reduce earnings per share searchers have said residents should- of Michigan-made goods, Gov. Rick and New Boston can be held in trust, Chile firm plans world’s by 1 cent in the third quarter. n’t drink or cook with city water with- Snyder’s office said. The Michigan Eu- a requirement to opening a casino. biggest particleboard mill out flushing lines or using a filter. The rope Center will consist of offices in A spokeswoman for Attorney Gen- $5.5M gift is largest given U.S. Environmental Protection Agency London and Berlin and be housed eral Bill Schuette, who sued to block Arauco, a Chile-based lumber pro- to Davenport endowment says Flint’s water is within levels al- within the Michigan Economic Devel- the casino, said he is reviewing the cessing company, plans to create up lowed for lead. Separately, a Genesee opment Corp. ruling. If he appeals, the decision to 250 full-time jobs at the world’s Grand Rapids-based Davenport County judge dismissed a lawsuit that Ⅲ Kent County hotels reported would be sent back to the U.S. Court largest particleboard mill it plans to University received a four-year, $5.5 sought to force Flint to stop using the 81.2 percent occupancy in July, a of Appeals for the 6th Circuit. build on 600 acres purchased from million gift to its endowment fund Flint River for drinking water. record for the county’s tourism in- Lindsay VanHulle Grayling Township, MLive.com re- from the M.E. Davenport Foundation, Ⅲ Jackson-based Consumers Ener- dustry, MiBiz reported, citing infor- ported. The $325 million investment The Associated Press reported. Dav- gy plans to purchase power from mation from Experience Grand Rapids, Perrigo sues Mylan over will be the single largest continuous enport said it’s the largest single gift Geronimo Energy’s new 100-megawatt the agency that markets the region. particleboard press in North Ameri- in the university’s history and brings wind farm planned for the Thumb The data come from Hendersonville, ‘false’claims in takeover bid ca and one of the highest-capacity giving to Davenport University by region, The Associated Press report- Tenn.-based Smith Travel Research, a Perrigo Co. plc sued Mylan N.V. in U.S. presses in the world, Arauco North the independent family foundation ed. As part of the agreement, Con- hotel industry research group. Ⅲ

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Join the movement today by visiting http://msms.org Proudly supported by Blue Cross Blue Shield of Michigan 20150921-NEWS--0003-NAT-CCI-CD_-- 9/18/2015 5:35 PM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 3 MEDC adjusts its belt Lane owners State agency mulls long-term adapt to strategy after budget, job cuts

entertainment By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine trends, high LANSING — With immediate budget pressures resolved, the Michigan Economic Development Corp. renovation costs is looking to develop a new long-term plan in which it operates as a smaller, nimbler agency. Starting Oct. 1, the state’s economic development agency will have fewer GLENN TRIEST employees than it did in De- Gary Winkel (right) and Tom Winkel of Woodland Lanes in Livonia rely on a loyal league following for a steady revenue stream. cember 2001, the first year employment records are available. The only time the agency was leaner was during a stretch Bowling reset: Alleys close,upgrade from 2005 to 2008. Revenue losses have prompted the cuts of 65 em- By Kirk Pinho Each has its own story behind its clo- ployees and 27 percent of the Doug Rothwell: Lane closures: A list of recent bowling [email protected] sure. For example, Sunnybrook, with its MEDC’s overall budget in less Hopes the budget center shutdowns, Page 28 he Shank family is one of the lucky 58-lane alley, 27-hole golf course and than two weeks. That reduc- has hit bottom. ones in metro Detroit’s close-knit motel, fetched what sources said is about tion will force its leaders to Tbowling scene, which is perhaps will no longer be Sunnybrook owners $12 million for what is expected to be a start thinking long term about alternative revenue the largest in the country. when it closes its doors and the family large-scale redevelopment announced sources and how to offer its core programs with Husband-and-wife team Randy and sells to what sources say is a tier-one sup- later this month. fewer dollars. Cheryl, owners of Sunnybrook Golf & Bowl- plier to the Detroit 3. Sunnybrook overall had been perform- “I would hope we wouldn’t see any future cuts,” ing Inc. in Sterling Heights, faced a difficult Sunnybrook, a Macomb County insti- ing well. Its 2,800 league bowlers were the said Doug Rothwell, president and CEO of Busi- decision earlier this year: Sell the popular tution since the Great Depression era, is most in the state, according to John Cas- ness Leaders for Michigan and chairman of the business they have owned at 17 Mile Road one of at least five well-known local bowl- bar, the bowling alley’s business and mar- MEDC’s executive committee. He hopes the and Van Dyke Avenue since 1998 — and ing alleys shuttering its doors in the last keting director. budget has hit bottom, but “no one really knows.” the 140 acres on which it sits — or stick it two years, according to Mark Martin, “It wasn’t due to the economy or the In the meantime, he added: “What are other out in an industry facing a tricky 7-10 manager of the Metro Detroit United States construction of the bridge on 17 Mile,” ways of sustaining our organization?” split. Bowling Congress, an industry trade organ- said Casbar, also executive director of the How the MEDC responds to that challenge will In the end, the Shanks, come Sept. 30, ization. SEE BOWLING, PAGE 28 SEE MEDC, PAGE 26 Detroit’s energy sways CEO to move N.Y.ride-app biz here By Tom Henderson The company’s management gram next June. “What I find to be [email protected] team — co-founder and CEO Babbitt said SPLT will also start embracing about Splitting Fares Inc., a graduate Anya Babbitt, co-founder and two pilot projects this fall, for Detroit is in two of the just-concluded Techstars chief technology officer Yale Troy-based Magna International of months I felt as if accelerator program at Ford Field Zhang and co-founder and direc- America Inc., one of Techstars’ I’d built up as good in Detroit, is Michigan’s newest tor of product development Ben- sponsors, and Honda Manufactur- a network as I had tech company. jamin McMillan — have rented a ing of Ohio. in New York,” said The company, which helps townhouse in Birmingham. “If you’d have asked me 3½ Splitting Fares other companies set up app- The company, which does months ago about whether I’d Inc. CEO Anya based ride-sharing programs for business as SPLT, will continue to move to Detroit, my thoughts Babbitt, employees, has moved its head- operate out of the Techstars would have been completely dif- pictured outside quarters here from New York City space until the next cohort of 10 ferent,” said Babbitt, who said Ford Field, the and landed its first major cus- companies starts the second year Techstars tomer, Detroit-based DTE Energy Co. of the three-year accelerator pro- SEE TECHSTARS, PAGE 27 headquarters. TOM HENDERSON

MUST READS OF THE WEEK On the roads again Suit settled The road construction industry says a stable funding plan Broadcast entrepreneur Kevin Adell will pay $325,000 could pave the way to a boom much like it did 30 years ago, to settle the legal dispute over the former Novi Expo Page 6 Center, Page 20 20150921-NEWS--0004-NAT-CCI-CD_-- 9/18/2015 5:01 PM Page 1

4 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 LOOKING BACK: In its Sept. 23, 1985, issue, Crain’s reported on new and returning road-related construction companies in Michigan as a result of post-recession increases in federal and state gasoline taxes. The circumstances that preceded the boom are similar to today’s, but there are new problems. More at crainsdetroit.com/30 State road construction industry hopes to travel path from mid-’80s

By Lindsay VanHulle today. The department says it award- money, he said, is that it doesn’t give Crain’s Detroit Business/Bridge Magazine ed 871 contracts worth $1.3 billion companies the type of security they LANSING — Thirty years ago, on projects eligible for federal need to make long-term invest- Michigan’s road-building industry money in the 2014 fiscal year, with ments in people or equipment that was flush with new gas tax money another 729 contracts worth $1.2 bil- they’d have with a five-, 10- or 20- amid a construction boom that lion awarded this year to date. year funding strategy. nearly tripled in size in as many But the state is struggling to keep In 1985, Leet “Ed” Denton told years. up with the cost of upkeep. Michi- Crain’s that his company, Denton Today, lawmakers pay for road gan’s flat 19-cent gas tax hasn’t been Construction Co., took on its first projects by scraping together gener- raised since 1997, nor is it tied to in- Michigan road project after a seven- al fund dollars on an annual basis, flation. As a result, the buying power year absence in other states. since gasoline taxes aren’t enough of that revenue shrinks each year. At the time, the Grosse Pointe to meet current maintenance “If we are able to secure a long- Woods-based company was the low needs. The diversion of money from term funding package, I think there bidder on a repaving of the Lodge other state departments has been a will be lots of Freeway in bandage solution while the Legisla- opportunities, “If we are able to Detroit in the ture negotiates a long-term revenue and you’ll see 1980s, a proj- stream. what hap- secure a ect that initial- The cyclical nature of road fund- pened in 1985 long- ly was delayed ing could come back around to all over again,” due to bids abundance, some in the industry said Mike Nys- term that came in say, depending on how the Legisla- trom, execu- funding higher than ture decides on roads. tive vice presi- expected. Top lawmakers are meeting with dent of the package Denton, Gov. Rick Snyder to find a compro- Michigan Infra- ... you’ll now 82, is still mise on roads after the House and structure and in business, Senate put forth proposals relying Transportation see what but on a on different amounts of current and Association, a happened in 1985 smaller scale. new money, but they haven’t Lansing-based all over again.” He said he reached a deal. trade group sold his fami- The lack of a permanent funding representing Mike Nystrom, Michigan Infrastructure ly’s namesake fix has created uncertainty, to the the road build- and Transportation Association construction point that contractors hesitate to ing industry. business to hire or invest in equipment worth “Companies will expand, will in- Warren-based Angelo Iafrate Con- millions of dollars because they vest and there will be new compa- struction Co. about 15 years ago. can’t count on projects beyond a nies starting up.” His St. Clair Shores-based Denton single year, state transportation ad- New interest Enterprises Inc. now includes a con- ministrators and lobbyists for the crete paving business in Lanexa, Va., road construction industry say. Road contractors, like other con- and a small operation in North Car- On Sept. 23, 1985, Crain’s report- struction companies in Michigan, olina. Denton said he sold in part ed that increased federal and state saw projects and funding dry up because of the uncertainty of work gasoline taxes in 1982 directly con- during the late-2000s recession. in Michigan. tributed to new construction com- Many firms sought work in other His operations — totaling 350 em- panies entering the road and bridge states, while others downsized or ployees and upward of $30 million in business, while other firms re- went out of business. annual revenue in 1985 — have turned to Michigan after leaving to In the last two years, Nystrom dropped to 75 to 100 workers and $12 work on projects in other states dur- said, his roughly 600-member asso- million to $15 million in income. ing the recession of the early 1980s. ciation gained at least 40 new mem- “The amount of large concrete In the 1985 fiscal year, the Michi- bers, in part because of a rebound- paving jobs was diminishing around gan Department of Transportation ing economy. the country, and it was increasingly planned to award $410 million in Settling the debate on road fund- difficult to make money,” Denton contracts for road work eligible for ing with a permanent revenue said. “What we’re doing in Virginia federal funds — roughly $914 mil- stream, though, will send that num- and North Carolina is principally re- lion in today’s dollars. ber higher as companies sense a pair and maintenance work because That was nearly three times more more stable environment in which to there’s not enough funding to really than the $146 million in road con- invest, he said. He added that more do a lot of new construction or com- tracts MDOT awarded in 1982. The companies bidding on public road plete reconstruction. contracts followed a federal gas tax projects also could drive prices lower. “The funding is totally inade- increase from 4 cents per gallon to 9 “No one’s going into business quate, not only on a state level but cents and a state tax hike of 4 cents when the industry’s flat on its back,” also at the federal level.” per gallon that same year, according Nystrom said. “If you don’t know National logjam Hutch is your single source for comprehensive to Crain’s. what the future is, you aren’t going to asphalt and concrete services. There are parallels, for sure. Then invest in training employees that you Michigan’s funding stalemate is and now, Michigan was recovering might not have the work for. And it happening as Congress negotiates a a L HL/ H L Í0K L ÍHK ÙH L/ H Í0KI0 from an economic recession that limits them in buying capital.” long-term deal to keep the federal IL K ÜÍ/ H LKÍ(ÞI HK ÍÛÝ HK IL halted much construction activity, One-shot funding boosts — in- Highway Trust Fund from running 0I 0KHÜ HK ILÍHJI LK/ H Í(ÞHÝHK ILÍ( L/ H including on infrastructure. Some cluding annual state budget cycles out of money. * IK ÞK ÓLKHHK IL3 ILKK ILÍÛHÝ LKÚ L0IK IL of that work resumed as the econo- and the 2009 federal stimulus — In July, Congress narrowly avoid- my improved. have created some work amid fiscal ed a shutdown by passing a three- Even when adjusted for inflation, pressures, said Mark Van Port Fleet, month extension of the fund, which Call today for more information at 586.427.7283 or visit us at MDOT is spending more on roads MDOT’s current chief operations allocates a portion of federal gas tax www.hutchpaving.com to learn more or to request a quote. today than it did 30 years ago, partly officer and chief engineer. because the state has more roads Yet the problem with one-time SEE ROAD, PAGE 6 DBpageAD_DBpageAD.qxd 9/16/2015 9:04 AM Page 1

CONGRATULATIONS ON THE OPENING OF RAINER COURT AT 711 ALEXANDRINE

One investment can be a catalyst for the success of an entire neighborhood. We are proud to celebrate the opening of Rainer Court with our partners:

Capital Impact Partners Midtown Detroit, Inc. Detroit Economic Growth Corporation PK Housing Invest Detroit

This development offers critical housing for the employees and students who are supporting the growth of the Cass Corridor.

JPMorgan Chase & Co. has made a ﬁve-year $100 million investment in Detroit, and Rainer Court is a great example of how the right kind of capital, partnerships and deep community expertise can produce quality housing in the city. From Midtown to the neighborhoods, we’re excited to see our investments support Detroit’s continuing recovery.

Detroit

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6 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 ROAD FROM PAGE 4 revenue to states for road projects. MDOT leaders say the short-term extensions help the state continue planning road projects, but the lack of stability means they can’t project very far. Michigan receives about $1 billion yearly in federal transportation dollars, 75 percent of which goes to MDOT. The state must put up a 20 percent funding match to receive its full federal award, according to MDOT. No permanent solution in Wash- ington also could lead to project de- lays, which in turn could speed up construction schedules, affect tim- ing of materials purchases and increase costs, Van Port Fleet said. He added that the state is fast ap- proaching the point at which road conditions will decline faster than revenue will increase to maintain them. The state trunkline system alone Give employees would need $1 billion to get 90 percent of the roads to good condition, Van Port Fleet said. Yet MDOT will the duck. get just 39.1 percent of the estimated $1.2 billion in state dollars Sny- der and state policymakers are looking for, with the rest split among cities and counties based on Anything else a funding formula. Gas tax revenue has fallen from $846 million in 2009 to an estimated $820 million this year, according to is just chicken. MDOT figures. Lawmakers have had to shift some of the state’s general fund to roads because that 70 percent of employees say amount has not been sufficient to match Michigan’s share of federal they’d likely purchase voluntary road money. insurance if it were offered by In the 2016 fiscal-year budget that starts Oct. 1, that means an addition- 1 their employers. al $400 million for transportation. “It is time that (new) revenue The question is, who will you choose? happens,” Van Port Fleet said. “How they do it is really not up to us.” House and Senate leaders have Why not offer coverage from Afl ac, the No. 1 provider said there appears to be consensus of worksite/voluntary insurance sales for 14 consecutive that some new revenue is necessary, years?2 And only Afl ac offers One Day PaySM, which allows but they haven’t been able to agree your employees’ claims to get paid in just a day when they on a dollar figure. The House passed submit online.* a proposal this spring relying most- ly on existing spending, including diverting money from the Michigan There’s no direct cost to you for offering Afl ac, and getting Economic Development Corp. The started is as simple as adding a payroll deduction. That’s Senate’s plan relied on some exist- why small business owners like you have chosen Afl ac for ing revenue and a gasoline tax in- 60 years. It’s also why we’re so confi dent Afl ac is the right crease tied to inflation. Snyder favors a combination of solution for your business. higher fuel taxes and vehicle registration fees. You can bet the farm on it. Voters in May rejected the Legis- lature’s proposal to raise the sales and fuel taxes in order to raise Call your local agent and visit money for roads, along with schools and local governments. afl ac.com/smallbiz “We can find a solution that takes care of itself year after year,” said Gideon D’Assandro, a spokesman for House Speaker Kevin Cotter. “The sticking point is finding a plan that can be a permanent solution where we don’t have to go back every year and take money and put 12015 Afl ac WorkForces Report, a study conducted by Research Now on behalf of Afl ac, January 20 - February 10, 2015. Includes somewhat, very and extremely likely; of those employees who it toward the problem.” are not currently offered voluntary insurance benefi ts by their employers. 2Eastbridge Consulting Group, U.S. Worksite/Voluntary Sales Report. Carrier Results for 2002-2015, Avon, CT. *One Day PaySM available for most properly documented, individual claims submitted online through Afl ac SmartClaim® by 3 PM ET. Afl ac SmartClaim® not available on the following: Short-Term Meetings continue with Snyder Disability (excluding Accident and Sickness Riders), Life, Vision, Dental, Medicare Supplement, Long-Term Care/Home Health Care, Afl ac Plus Rider and Group policies. Processing time is based and top legislative leaders, D’Assan- on business days after all required documentation needed to render a decision is received and no further validation and/or research is required. Individual Company Statistic, 2015. Individual dro said. All parties have said the coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, individual coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 talks are productive, without offering details on potential compromises. Ⅲ Z150004R 7/15 Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle DBpageAD_DBpageAD.qxd 9/16/2015 10:37 AM Page 1

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8 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 CRAIN’S DETROIT BUSINESS Don’t take health concerns sitting down

itting can be hazardous to your in a recent column. He recalled Shealth. hearing years ago a speech by We sit for hours in front of our Pulitzer Prize-winning cartoonist OPINION computer screens. Or TV screens. Jim Borgman, who said that taking a Health experts say that can bring on walk was his path to creativity when a whole lotta pain. his mind was blocked. Even at Sitting for long periods, research crazy-busy times. shows, can slow metabolism, alter MARY KRAMER: Pierrette Templeton, creative di- hormones, raise cholesterol, weak- Publisher rector at Crain’s Detroit Business, Immigrants need en muscles. has embraced the notion that “sit- Who knew? Well, now we do. ting is the next smoking.” Evidence is growing that obesity, HAP sponsored the Southeast She has a third-party app that links cancer, heart disease, hypertension, Michigan’s Healthiest Employers to her Fitbit to alert her to get up and low back pain and all kinds of scary project, produced by Crain Content move around every 30 minutes. a hand,and a plan ailments can be linked to sitting for Studio-Detroit (the custom publish- “I gave up smoking last year, so I long periods of time — whether ing subsidiary of Crain’s Detroit figured I may as well give up sitting that’s at a desk or being a couch po- Business). The winning companies too,” Templeton says. “Even the act etroit seems increasingly likely to be the new home tato or playing with Facebook and were profiled Sept. 14, and at a of making myself aware of activity for several thousand Syrian refugees. social media on the screen. breakfast awards program was ear- levels throughout the day has nearly As Dustin Walsh reports on Page 1, that would The Wall Street Journal reported lier in the year, HAP focused on how doubled my step count.” D last spring that nearly 30 percent of employers could help employees be Fitbit, Apple Watch, whatever the present an opportunity for a square-mile area in Detroit north of Seven Mile Road between Woodward and Americans did not participate in a healthier through less “chair time.” technology, keeping track helps. single physical activity — walking, Even standing burns more calories That’s one person’s solution. What’s the railroad tracks that bisect John R. That area, called North- running, exercise class — even than sitting. Spring puts it at 50-70 yours? Town, has been planned for redevelopment since the late bowling or just stretching. Those are percent higher. 1990s but has never really taken off. stats from the Physical Activity Spring has another tip: Don’t Mary Kramer is publisher of Crain’s So to many, the refugees represent an opportunity to re- Council, which said the figures were send an email to the colleague Detroit Business. Catch her take on populate a Detroit neighborhood and boost the local econo- an increase of 18 percent over 2007. down the hall; get up and go talk to business news at 6:10 a.m. Mondays Tom Spring, director of “health them. my. on the Paul W. Smith show on WJR engagement and wellbeing” at John Campanelli, publisher of AM 760 and in her blog at And there’s no question that immigration is an important Health Alliance Plan, has the Crain’s Cleveland Business, extolled www.crainsdetroit.com. strategy for Detroit. mantra: “Sit less, move more.” the virtues of simply taking a walk There’s a But let’s take a step back and chance to do think about what we can do for the good here, and refugees. LETTERS For one thing, we can lobby for serve as a the U.S. to significantly lift the model for number of refugees it will take Credible real estate sales reflect the market elsewhere in above the current, and paltry, Editor: stopping any future competition 10,000 number. Other, much Send your letters: the U.S. I am responding to your recent Crain’s Detroit from entering the market. Such re- smaller countries — notably Ger- article about the use of “dark store” Business will consider for strictions change the highest and many — have been taking as many sales as comparables when valuing publication all signed letters to the best use of the property, given that it arrivals as they can process, into the hundreds of thousands. big box properties (“Retailers use editor that do not defame can no longer be used for retail. We also should volunteer to take a large number of the ex- ‘dark store’ theory to lighten tax individuals or organizations. Letters Highest and best use is funda- may be edited for length and clarity. panded pool. Syrians have been immigrating to Michigan load,” Sept. 14, Page 14). mental in choosing comparables since the late 19th century and to metro Detroit since the I am an independent commer- Email: [email protected] when valuing any property. A big cial appraiser who has appraised box that sells only to be converted early 1900s. And as a group, they have prospered, building such properties and testified at the into a school does not compete business and social networks and extending help to newer Michigan Tax Tribunal. When dis- to a shift in the market with supply within the same market investors incomers. cussing the sale of “dark stores,” one and demand. If demand has de- as those properties that sell for re- What that means is we should have a plan, starting with must keep in mind why the store clined, then the market is de- tail. the American Arab and Chaldean Council and adding part- went dark in the first place. One pressed, which makes the sale dis- While appraisers are not influ- cannot simply say “vacant and tressed. If more supply is needed, enced by whether a municipality is ners to build scale. The plan should be comprehensive, spe- available” is the only criteria. We then the sale typically includes a losing its tax base, we are certainly cific and fully backed by local and state political leaders, with need to dig deeper into these sales deed restriction against future retail accountable to using credible sales appropriate assistance from the federal government. to ascertain whether they are truly sales. that accurately reflect forces in the There’s a chance to do good here — and serve as a model comparable sales. This is due to the fact that the marketplace. for elsewhere in the U.S. — and we’re especially well-suited Aside from bankruptcies, the seller would typically build another Jumana Judeh to do it. The economic payoff will come. only reason a store goes dark is due bigger store nearby and intend on President and CEO, Judeh & Associates, Dearborn

TALK ON THE WEB MEDC cuts: Biz cycle at work Syrians and Syrian-Lebanese (as Re: DMC expects to settle nurse Reader responses to stories and As has been expected, the Michigan Economic Develop- wage lawsuit for $42 million Lebanon was part of Syria until blogs that appeared on Crain’s about the last 70 years) have made ment Corp. announced job cuts this week — 65 direct layoffs Why do companies think they can website. Comments may be edited many contributions to the city of De- added to 29 positions lost through attrition this fiscal year. get away with this kind of behavior? for length and clarity. troit and the surrounding area. That’s painful, but it’s an experience many companies How about putting a few of these More businesses and more workers have gone through and learned from. Fueled by revenue CEOs in prison instead of fining similate and afford. mean more taxes paid to the gov- sharing from American Indian-run casinos, the MEDC bal- them? They just charge all of us Arlene ernments at all levels. looned in size over the years. But as Lindsay VanHulle reports even more to recover the money. Educator57 Poppycock I live in Hamtramck and don’t on Page 3, some of that funding is drying up, and so the understand the logic of admitting Yes. The absolute best PR Detroit MEDC needs to refocus. more immigrants into the area who could garner right now. The details are still emerging, but the focus will be on three Re: How can Michigan welcome rely on WIC cards to make their gro- Cheryl Addington core services: business investment and attraction, commu- immigrants? Start with Syria cery purchases. We can’t find funds nity development and Pure Michigan. to fix the roads, so how do we have Re: DIA’s new director We already have taken in more im- funds to finance new arrivals with wel- We’re sorry to see people lose their jobs, but Michigan’s migrants/refugees than we can eco- fare benefits? Hope springs eternal. economic development efforts will survive. nomically and culturally safely as- hamtramck49 Jim Pallas 20150921-NEWS--0009-NAT-CCI-CD_-- 9/18/2015 11:07 AM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 9 Wayne County union-management climate must change

hen I became Wayne County serve an essential role by protecting “I hope the county safety net for our citizens. We Wexecutive on Jan. 1, I immedi- working people. Unions have an come closer to achieving these ately recognized two fundamental important mission to ensure fair unions will take goals by running government in a changes had to occur, not only to wages, health and pension benefits, seriously my open fiscally responsible manner. Re- save the county, but to allow it to and safe and fair working condi- publicans often claim that govern- flourish. We needed significant sav- tions. This belief comes from a hand of ment is the enemy, that it can’t op- ings from wages, health care and wealth of life experiences, including partnership.” erate efficiently. Our mission as pensions to avoid bankruptcy. We OTHER VOICES: union membership. An equally im- Democrats is to show that govern- needed to restructure government Warren Evans portant belief I hold is that government works. We can only do that to provide quality services more ef- ment can and must deliver quality consistent with the present man- by managing well and making fis- Warren Evans is Wayne County executive. ficiently. services by the efficient use of tax agement-union environment in cally responsible decisions. We stand on the brink of accom- we will never get there if we never dollars. Wayne County. I hope the county unions will plishing the necessary savings to re- start to try. These two principles at the foun- I have been a Democrat my en- take seriously my open hand of store fiscal health. We now must I assumed my position as county dation of my desire to devote my tire life. I believe government is partnership and work with me to turn our attention even more to re- executive with two basic principles. career to public service are not in- our greatest institution for achiev- restructure Wayne County govern- structuring. A restructuring not only The first was a belief that unions consistent. They are not, however, ing social justice and providing a ment so it can flourish. Ⅲ to ensure that Wayne County lives within its means, but to restore some or all of what we were required to take away from our dedicated employees due to the finan- DELTA DENTAL PROUDLY SUPPORTS cial crisis. We are off to a strong start on the restructuring. We created the De- MICHIGAN COMMUNITIES partment of Health, Veterans and Community Wellness by consoli- dating three county departments. This more efficient department will provide better and more comprehensive services. We are well on our way to im- plementing a state-of-the-art procurement system that will save millions each year, replacing the PROVIDING previous antiquated process. We worked collaboratively with the DENTAL CARE Circuit Court to continue to install high-tech audio/video technology TO THOSE SUPPORTING that will save the county millions of dollars a year. Other examples of IN NEED THE DENTAL our restructuring efforts since Jan. 1 abound. HEALTH To allow these efforts to fully IMPROVING succeed, continue with other nec- PROFESSION essary restructuring efforts and CHILDREN’S ORAL provide delivery of quality services, we need a new relationship HEALTH AND with our unions. A relationship based on partnership, cooperation SCHOOL SUCCESS and the recognition that our mu- tual goal is the delivery of quality governmental services efficiently. All of this with the condition that workers are provided a fair and just place to work with adequate wages, health benefits and pen- ENGAGING sions. We need to create labor- management partnerships at all OUR appropriate levels within government, working together to identify EMPLOYEES problems and craft solutions to better serve our citizens. Unfortunately, this environment of management-union relations in Wayne County does not exist today, ORAL HEALTH EDUCATION nor has it for a long time. These relations have been damaged by years of conflict and confrontation re- quiring the county and the unions to spend resources on lengthy, slow Learn more about Delta Dental of Michigan’s and complex dispute resolution mechanisms such as grievances, ar- efforts to improve oral and overall health and bitrations and unfair labor practices charges. Resources and effort can wellness in Michigan through our Brighter Futures be better used providing services and ensuring adequate compensa- initiative at deltadentalmi.com/bfreport. tion for our employees. As we continue to sit across from our union leadership at the bar- gaining table, it is my goal to develop this new approach to management-union relations in the county. We will not get there overnight, but DBpageAD_DBpageAD.qxd 9/16/2015 9:48 AM Page 1

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CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 11 SPECIAL REPORT:

LISA SCHENCKER Lisa Schencker is a reporter for Modern Healthcare, a sibling publication of Crain’s Detroit Business. Feds delay enforcing HEALTH CARE home care wage rule

The U.S. Labor Department won’t start enforcing its new rule requir- ing higher pay for many home health care workers just yet, despite a recent court decision upholding the rule. The new rule won’t go into effect until 30 days after the District of Co- lumbia Circuit Court of Appeals issues a mandate making its opinion effective. It’s unclear when that mandate will come because industry groups have asked the court to wait until after they try to appeal the matter to the U.S. Supreme Court. The rule was slated to go into effect Oct. 13. Last month, the circuit court up- held the rule after industry groups challenged it. The Labor Department and labor groups say the rule will mean fair wages for home health care employees, while industry groups say it will make home health care unaffordable for many seniors. For years, home health care agencies haven’t had to pay mini- BRUCE EDWARDS mum wage or overtime to compan- Dave Mazurkiewicz is CFO of McLaren Health Care Corp.Two of McLaren’s three hospitals in metro Detroit earned money on Medicare. ionship workers who provide “fel- lowship, care and protection” to seniors and disabled people. The rule would significantly narrow the definition of companionship workers to those who spend no more than 20 percent of their time pro- A Medicare tourniquet viding actual care, such as feeding and bathing. It would also no longer exempt companionship By Jay Greene MedPAC predicts that average hospital workers employed by third parties, [email protected] Hospitals try to heal cuts Medicare margins will continue to decline this such as home health care providers, p until 2012, before the Affordable Care year and into 2016, even for the 13 percent of from wage protections. Act began cutting revenue, a majority of that bleed profits hospitals deemed “efficient” by MedPAC (See In recent court documents, the Utax-exempt hospitals in Southeast story, Page 14). industry groups asked the court to Michigan made profits on their Medicare busi- expenses disallowed by the IRS, such as infor- ‘Have to make money’ hold off on issuing its mandate ness, according to a Crain’s analysis of selected mation technology investments above a pending an appeal to the Supreme IRS Form 990s from 2011 to 2013. capped amount and hospital-owned physi- Dave Mazurkiewicz, CFO of Flint-based Court, saying that doing so would Since then, those profits — or surplus over cian practices. McLaren Health Care Corp., said the goal of the ensure “certainty for the entire in- expenses, as measured by the Internal Revenue Community-benefit Medicare surplus 11-hospital system is to earn a 2.5 percent op- dustry and the millions of elderly Service — have been slowly evaporating for numbers show even lower profits — or losses erating margin on all patients.“ and disabled consumers who de- some of the 15 hospitals and multihospital — than the IRS data over the past few years, We have to make money on Medicare. It’s pend on its vital services.” systems in metro Detroit. The primary rea- hospital executives said. Industry groups involved in the sons: reimbursement cuts, readmission In federal reports, only one-third of the na- SEE MEDICARE, PAGE 12 case include the Home Care Associa- penalties and overpayment recoveries. tion’s 4,500 hospitals made money treating tion of America, the National Associa- In 2011, nine hospitals or systems earned Medicare patients, with hospitals av- tion for Home Care & Hospice and the money on Medicare. But by 2013, only seven eraging a 5.4 percent loss in 2013, International Franchise Association. posted profits, and four of those suffered de- said the Medicare Payment The government, however, has clines on their Medicare business. Advisory Commission, an asked the court to issue its mandate Medicare accounts for about half of a hos- independent federal quickly, arguing in court documents pital’s patient revenue. commission that that the industry groups’ “contention Hospitals also track Medicare profitability advises Con- that the final rule will harm con- using standard cost accounting and commu- gress on sumers and workers was rejected in nity-benefit measurements — which include Medicare. rulemaking comments submitted by consumer advocates, labor represen- tatives and industry experts.” The Labor Department had al- “We have to make money on Medicare. ... ready pledged to exercise discretion If you have a service that doesn’t make until the end of the year in deciding whether to go after providers once money, you are in trouble.” the rule goes into effect. Dave Mazurkiewicz,CFO,McLaren Health Care Corp. 20150921-NEWS--0011,0012,0013-NAT-CCI-CD_-- 9/18/2015 11:10 AM Page 2

12 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 SPECIAL REPORT: HEALTH CARE MEDICARE FROM PAGE 11 the largest payer in the country and will get larger,” Mazurkiewicz said. “If you have a service that doesn’t make money, you are in trouble.” Two of McLaren’s three hospitals in Southeast Michigan — McLaren Macomb in Mt. Clemens and McLaren Oakland in Pontiac — earned money on Medicare, although profitability declined from $16.7 million in 2012 to $12.2 million in 2014. The Detroit-based Barbara Ann Karmanos Cancer Institute, which joined McLaren in late 2013, lost $10.9 million in 2014, $16.9 million in 2013 and $9 million in 2012, officials said. Rob Casalou, CEO of six-hospital St. Joseph Mercy Health System in Ann Arbor, said hospitals that make money on Medicare are typically ones that are efficient and make good margins on all patients. Casalou said St. Joseph Mercy “climbed out of a hole” in 2010 and expect Medicare to ratchet down $415 billion could be squeezed out ices among operating units, con- tals in Southeast Michigan, has suf- 2011 after the economic downturn payments” over the next several of the Medicare, Medicaid and centrate resources, remove unnec- fered big losses on Medicare over and additional expenses from re- years, Casalou said. “We have time other government-funded pro- essary expenses for treating dis- the past three years, primarily be- structuring left the system short on to change the demand curve to get grams, including an additional eases and command lower supply cause the IRS disallows revenue cash. Total margins, including patients out of hospital sooner. Em- $16 billion from graduate medical and technology costs. from Henry Ford’s 1,200 employed Medicare and private payer, have ploying doctors helps. We want a education, over the next 10 years. “Obamacare has created an in- physicians. The system lost $84.6 improved since then, he said. covered life strategy” for managing “It is difficult to make money on creased focus on quality measure- million on Medicare in 2012, $89.6 St. Joseph Mercy earned net inpatients effectively. Medicare but not impossible,” said ments, readmission rates and other million in 2013 and $92.2 million in come of $112 million on revenue of But Casalou said medical deci- Tony Colarossi, a health care con- adverse events,” Colarossi said. 2014, officials there said. $1.8 billion for a net margin of 6.2 sions at St. Joseph Mercy — and, he sultant with Plante Moran LLP in East “(Medicare is) not going to pay for The University of Michigan Health percent in 2014, the health system thinks, at most hospitals — have Lansing. that anymore. It took quite a bit of System, a three-hospital system said. In 2013, St. Joe’s posted net in- nothing to do with hitting prof- “The theory that hospitals should money out of the revenue stream based in Ann Arbor, lost $184 mil- come of $103 million on revenue of itability targets for Medicare or any be shooting to make a margin on with reductions on annual (reim- lion in 2014 on its Medicare busi- $1.8 billion for a 5.7 percent margin. payer. Medicare is well-acknowledged in bursement) increases. Hospitals ness, officials said. Livonia-based Trinity Health Michi- “I am an economist,” he said. the industry. (Hospital executives) have had to adjust to that.” Since 2011, UM Health’s Medicare gan, which includes St. Joseph Mercy “Health care is 18 percent of the realize Medicare will never be a For example, Dearborn-based margins have decreased steadily to Health System and three other hos- GNP. I know it is a matter of time be- profit center for them, but using Oakwood Healthcare, now part of minus 32 percent in 2014 from pitals, posted Medicare income of fore (the Medicare program) looks Medicare as a proxy for overall effi- Southfield-based Beaumont Health, minus 29 percent three years earlier. $44.1 million in 2011, $30.1 million at expenses. It doesn’t matter if they ciency is reasonable.” lost $22.8 million on Medicare in However, UM projects a 5 per- in 2012 and $33 million in 2013. cut $500 billion (Medicare cuts from Since the Affordable Care Act was 2011, $57 million in 2012 and $41.8 cent operating margin for all payers Regional CFO Mike Gusho said 2012 to 2022) or $1 trillion. There approved in 2010, Colarossi said, million in 2013. by 2017. Trinity’s community-benefit report is will be more cuts coming, and we some hospitals have flourished Beaumont Health, which operat- The probability of a more complete accounting of need to be ready.” under Medicare and some have ed three hospitals from 2011 to 2013 profitability Medicare revenue and expenses. Its ‘Difficult but not struggled. until it added Oakwood and Botsford report says Trinity earned $18 million impossible’ Those hospitals that make Hospital in Farmington Hills in a Patrick McGuire, CFO of Warren- in 2011 on Medicare for a 2 percent money have several things in com- merger, earned $28.1 million on based St. John Providence Health Sys- margin, $10 million in 2012 for a 1.4 This year, President Barack mon, Colarossi said. Medicare in 2011 but lost $7.2 million tem, said a hospital’s Medicare prof- percent margin, broke even in 2013 Obama proposed additional First, profitable hospitals are usu- in 2012 and $17.4 million in 2013. itability depends on a multitude of and lost $5 million in 2014, he said. Medicare cuts in his 2016 budget ally part of a larger health system Detroit-based Henry Ford Health factors both within and beyond a “Medicare is a good payer, but we proposal to Congress. He suggested that can eliminate duplicative serv- System, which operates five hospi- hospital’s control. Profitability depends on the mix of Medicare inpatients and outpa- tients, how sick they are, whether the hospital received dispropor- tionate-share payments for operat- OAKLAND MACOMB ing in low-income markets and how many physician practices are owned, CFOs told Crain’s. H For teaching hospitals, another major Medicare revenue stream comes from a residency program, through indirect medical education H payments to care for sicker Medicare patients and larger numbers of Medicaid patients. H Besides Obamacare’s 2012 mandate of cuts in payment updates, H Medicare also has imposed quality 35,000 health care professionals join forces to penalties including those for read- H give you the most advanced medical care – anywhere. mitting certain Medicare patients H within 30 days. Recovery audit con- EPDUPSTtIPTQJUBMTtIFBMUIDFOUFST tractors have identified inappropriate billing or overbilling of Medicare H More Beaumont. More places. patients that hospitals have paid back. WAYNE “Our strategy is to control for uti- H lization for all patients because hos- SEE NEXT PAGE 20150921-NEWS--0011,0012,0013-NAT-CCI-CD_-- 9/18/2015 11:10 AM Page 3

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 13 SPECIAL REPORT: HEALTH CARE

FROM PREVIOUS PAGE similar-minded health systems to reduce the costs of physician-pref- pitals are paid a fixed amount per erence items, which include defib- stay,” McGuire said. “You want to rillators, pacemakers and joint re- treat patients in the most cost-effec- placements. tive way with the highest quality.” The company, SharedClarity, is a To reduce patient costs, McGuire Phoenix-based subsidiary of United said, hospitals try to minimize the Healthcare Group. Other systems in- time to conduct and analyze diag- volved include Advocate Health Care, nostic tests and to discharge pa- Dignity Health and BaylorScott & tients as soon as possible. White Health. “The quicker we get a patient to a “We took cost information, mar- home setting is better for costs and ried it up with information from better for the patient,” he said. physician surveys and then analyze St. John Hospital and Medical Cen- the products to determine the dif- ter in Detroit, which is part of St. ferences to drive more effective John Providence, maintained fairly prices,” Mazurkiewicz said. “The steady Medicare profits at $12.3 savings ($3 million this year) were million, $17.2 million and $15.6 mil- significant.” lion from 2011 to 2013, 990s show. Kevin Tompkins, McLaren’s vice “It is hard to look at those num- president of marketing, said the bers as a trend because there is varia- health system also has embarked on tion from year to year,” McGuire said. a successful cost reduction program Despite Medicare cuts, St. John to manage blood supplies. Tompkins Hospital increased its Medicare sur- said research shows that giving pa- plus in 2014 to $23.7 million, while tients too much blood in transfu- Macomb-Oakland’s was $30.3 mil- sions, transplants and other services lion and Providence Hospital in sometimes can place them at risk for Southfield reported $2.1 million. creasing the turnaround time of lab “There are diminishing returns on “We haven’t changed what we are infections and other ailments. “The 2014 numbers improved tests to avoid duplications. utilization management,” he said. doing” on costs because of The result has been lower costs because we did better on the cost “We do that and we can dis- “We still have great potential, not Medicare cuts, he said. “We are because of less purchasing and bet- side,” McGuire said. “Revenue is not charge the patient sooner because just per unit of services but on total doubling down on what we are ter quality, he said. going up.” doctors have the lab results and expense.” doing.” “We spend millions of dollars to Like all hospitals, St. John has don’t have to order the test twice,” At McLaren, Mazurkiewicz said For example, McLaren has in- buy blood for our patients,” programs to reduce costs for all pa- McGuire said. the system’s goal is to be the lowest- creased its focus on reducing sup- Mazurkiewicz said, adding that $3.6 tients, McGuire said. For example, ‘Diminishing returns’ cost provider in all its Michigan ply costs that directly affect clinical million was saved through the the health system has concentrated markets, an effort that helps with care. blood management program. Ⅲ on reducing the length of stay, elim- But McGuire said a hospital can payers such as Medicaid that reim- Several years ago, McLaren Jay Greene: (313) 446-0325 inating unnecessary testing and in- do only so much to lower costs. burse far below costs. began participating with a group of Twitter: @jaybgreene

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14 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015

SPECIAL REPORT: HEALTH CARE Medicare margins fall despite hospitals being more efficient

By Jay Greene cy and quality over the past decade, But in Michigan, hospital finan- [email protected] but payment reductions, financial cial experts say, commercial rates Each year, the Medicare Payment penalties for inappropriate hospital have not risen faster than costs. Advisory Commission issues a report readmissions and overbilling still Dave Mazurkiewicz, CFO of to Congress on the financial health have caused Medicare hospital mar- Flint-based McLaren Health Care, of hospitals, physicians, home gins to drop to negatives nationally said total profit margins are lower health agencies and other providers from an average positive 2 percent than national averages because paid under Medicare, along with margin in 2002. payers haven’t increased reim- recommendations for reimburse- Future positive margins also ap- bursements at the same rates as ment policy pear doubtful, Medpac said. Hospi- those in other states. For hospitals, the March 2015 re- tal Medicare margins will continue “Michigan margins are lower port said that only about 35 percent to decline this year and into 2016 than the rest of the country,” of the nation’s 4,700 hospitals made even for the 13 percent of hospitals Mazurkiewicz said. money treating Medicare patients. deemed “efficient” by MedPAC. Tony Colarossi, a partner for Since 2002, hospitals have suffered Despite low Medicare margins, health care consulting at Plante declining Medicare margins averag- overall margins for hospitals na- Moran LLP in East Lansing, also dis- ing minus 5.4 percent in 2013, tionally increased to 7.2 percent in agreed with the notion that com- 6 percent in 2014 and 9 percent this 2013, the highest level since track- mercial payers in Michigan have year, said the commission, coming began 20 years ago, MedPAC boosted revenue to hospitals. monly known as MedPAC. said. MedPAC acknowledged that hos- Slightly less than half of the hos- High overall profitability over the pitals in some states are under pres- pitals in Southeast Michigan earned past several years, Medpac said, “was sure because of a poor payer mix of positive margins on Medicare, ac- caused by average (private health inpatients or a lack of market strength cording to a Crain’s analysis of IRS surance) payment rates rising slightly to negotiate higher rates. Form 990 reports and hospital in- faster (5 percent nationally) than av- Blue Cross Blue Shield of Michigan terviews. erage cost growth, which was in the 2 controls 67 percent of the state in- Hospitals have improved efficien- percent to 3 percent range.” surance market with about 4.4 million members, the second-highest pharmacy use and selection of im- single-carrier percentage in the na- plants, experts said. tion. Only Alabama has an insurer But Colarossi said Michigan hos- with a more dominant market share pitals also have benefited this year — Blue Cross Blue Shield of Alabama, from Medicaid expansion with with 84 percent. Healthy Michigan. As a result, Colarossi said, hospi- “This will improve overall margins, tals in Michigan have even though less clout to negotiate “Being cost- Medicare is losing a favorable efficient little money over- commer- all,” he said. “Hos- cial con- means pitals will improve tracts and (hospitals margins during have been this transition peri- forced to nationally) od even as become can make a Medicare is intro- more cost- ducing changes” efficient to positive through Oba- manage lower rates margin on macare that ulti- of increases. mately will reduce “Being cost-effi- Medicare.” margins over time. cient means (hospi- Tony Colarossi,Plante Moran Colarossi said tals nationally) can hospitals need to make a positive margin on Medicare continue to reduce the costs of clin- versus the negative 5 percent for low- ical care, back office work and sup- pressure facilities,” said Colarossi, ex- ply purchasing. plaining the MedPAC analysis. Why? On relative hospital efficiency, For 2015, Medicare’s base pay- MedPAC said that from 2010 to 2012, ment rate update is projected to be SOMETIMES EVEN only 13 percent of hospitals were 2.2 percent, MedPAC said. But vari- considered “relatively efficient” at ous payment reductions also will cut HEALTHCARE HEROES treating Medicare patients because payments by about 2.5 percent, es- they had lower costs and higher sentially wiping out any payment in- NEED A CHAMPION quality over a three-year period. creases. In 2013, these 268 efficient hospi- The 2016 update under current Healthcare professionals and executives rely on our attorneys tals had a median Medicare margin law is projected to be 2.3 percent, to obtain the right results in the boardroom and courtroom, of 2 percent, MedPAC said. but payment reductions will be only so they can stay focused on their patients and business. Experts said hospitals that are about 2 percent. successful in managing Medicare White House Budget Director patients in a profitable manner Shaun Donovan recently said Q Licensure Actions QTransactions QMedical Liability QCON have certain things in common. Medicare needs “a more aggressive QIntegration QManaged Care Contracting & Disputes QMedicare & Medicaid QCompliance Ⅲ They are usually part of a larger strategy” to stop improper payments health care system. to hospitals, doctors and insurers. Ⅲ They closely track Medicare In a recent letter to the U.S. De- services delivered to patients, mak- partment of Health and Human Ser- ing sure overuse is minimized. vices, which runs Medicare, Dono- Ⅲ They make sure employees are van said improper payments waste meeting productivity targets, in- billions of taxpayer money. cluding average hourly labor rates, For example, he said, payment D. Jennifer Andreou Mark S. Kopson staff overtime pay, per-capita errors amounted to $3.1 billion for Medical Liability Practice Group Leader Healthcare Industry Group Leader Medicare costs and net patient rev- Medicaid and $10 billion for 586.466.7607 | [email protected] 248.901.4061 | [email protected] enue per equivalent discharge. Medicare. Ⅲ Hospitals also look closely for Jay Greene: (313) 446-0325 Michigan • Ohio • Indiana • www.plunkettcooney.com variations in length of patient stays, Twitter: @jaybgreene 20150921-NEWS--0015-NAT-CCI-CD_-- 9/18/2015 11:13 AM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 15 SPECIAL REPORT: HEALTH CARE

CON ROUNDUP Primary care group works directly with employers The following are selected certificate of need filings from Aug. 12-Sept. 16: By Jay Greene “This will result in heads the Premier Family Physicians PLC office Letters of intent received [email protected] in Troy. A new primary care physician managed lower costs and better Mike Williams, M.D., Prism’s president, Ⅲ Lakeshore Healthcare Grand Campus, De- care services organization is forming in quality.” said his three partners decided to join Forth- troit: Begin operation of a new nursing home Southeast Michigan to directly contract with right to get ahead of the curve if direct con- by moving 40 nursing home beds from employers for enhanced primary care servic- Tom Valenti,Forthright Health Management tracting becomes accepted by employers. Lakeshore Elmwood Campus to a new site to be es. “Employers are going to look for the best constructed at 3025 E. Grand Blvd.; $14 mil- Forthright Health Management LLC, headed value, and that includes working with a high- lion. by Tom Valenti, has recruited about 50 pri- but no contracts have been signed. quality network that is interested in cost ef- Applications received mary care physicians, including internists, “If a referral to a specialist is needed or a fectiveness,” Williams said. “Nobody knows family medicine and pediatricians, in 13 prac- test or lab not covered by the direct contract is where the market is going. We want to be on Ⅲ Select Specialty Hospital-Macomb County, tice locations. needed, (a patient’s) health insurance will the cutting edge, and my practice agreed to Mt. Clemens: Renovate clinical space on the The network will offer a hybrid concierge cover it,” Valenti said. explore the opportunity.” first, second and fifth floors; $9.8 million. medicine program in which patients are Primary care services will include check- Williams said more employees are choos- Decisions guaranteed more time and access to their ups, diagnosis, wellness, basic office tests, ing high-deductible policies with $5,000 out- doctors than in typical office visits. Another counseling, disease management, email and of-pocket deductibles. Ⅲ Oakwood Hospital-Dearborn: Add one 50 doctors are expected to sign up by end of phone access and house calls if necessary, “This is a catastrophic plan, and patients cardiac catheterization lab; $3 million. Ap- the year, Valenti said. Valenti said. Patients will be allowed up to 25 might not seek care,” he said. “There might be proved. “Linking employers and primary care visits per year, he said. a better way for patients to receive care.” Ⅲ Oakwood Hospital-Taylor: Initiate a fixed physicians directly will fix the heart (the cen- “This will give patients more face time with Williams said the long-term effect on his MRI service at an existing host site; $3.4 mil- ter) of health care that leads to all other serv- their doctor,” Valenti said. “Physicians will current practice, which will continue to ac- lion. Conditional approval. ices,” Valenti said. “This will result in lower benefit because they won’t have as many in- cept health insurance, could be to increase Ⅲ McLaren Oakland, Pontiac: Emergency costs and better quality.” surance forms to fill out.” patient volume and revenue. addition of 30 new adult psychiatric beds; Some of the medical groups signed up for The concept of direct contracting with “It will save us administrative time because $2.5 million. Withdrawn. the Forthright network include Prism Medical providers — and bypassing traditional health we won’t have to file insurance claims each Ⅲ St. Joseph Mercy-Brighton: Construct a Group, Rochester Hills; Envision Medical Group, insurers — appears to be growing nationally time a (direct contract) patient comes in,” he 8,400-square-foot, two-story addition and Livonia; Moore Pediatrics and Associates, and in Michigan. said. “We will still spend time to record the renovate 50,000 square feet of clinical space Chelsea; Northville Family Medical Center; and Last year, state Sen. Patrick Colbeck, R- correct diagnosis in our electronic medical on the first and second floors; $26.7 million. Farmington Family Physicians. Canton Township, won passage of Senate Bill record and still provide the same amount of Approved. For less than $100 per employee per 1033, which allows doctors to offer direct pri- care to the patient.” Ⅲ Children’s Specialty Center of Michigan- month, Valenti said, employers can contract mary care without fear of state insurance de- But Williams said less time filling out insur- Troy: Acquisition and relocation of the surgi- with Forthright to offer primary care access partment regulation. ance forms could lead to more time spent cal service from DMC Surgery Hospital to a for workers for a range of office-based servic- In Michigan, more than more than 75 with patients. Ⅲ new freestanding outpatient facility in Troy; es and limited diagnostic testing. He said sev- physicians are participating in direct primary Jay Greene: (313) 446-0325 $12.7 million. Conditional approval. eral employers are interested in the concept, care, including John Blanchard, M.D., who Twitter: @jaybgreene Natalie Broda

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CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 17 SPECIAL REPORT: HEALTH CARE Fla.company adds neck,back clinics in area,state

By Jay Greene build and equip, he said. cine’s program suggests comprehen- physical therapy volume is increas- Brady said physical therapy has [email protected] “The old model of building a fa- sive care improves health. PHB’s ing because of the movement to turned more into an evidence- Pure HealthyBack Inc., an Orlando, cility and begging doctors for refer- restoration team includes physicians, population health, where providers based practice, focusing on patient Fla.-based neck and back pain re- rals doesn’t work anymore,” said Sz- physical therapists, exercise physiol- are seeking to integrate inpatient outcomes for chronic and acute dis- habilitation company, is spending porka, who was born in Detroit and ogists, wellness coaches, nutritionists and outpatient care to focus on eases, including whiplash, arthritis, millions of dollars to expand opera- received his MBA from the University and yoga trainers. longer-term patient wellness. pinched nerves and post-surgical tions in Southeast Michigan to five of Michigan. “Our model is a compre- Competition in Southeast Michi- To accommodate growth, St. care. clinic locations and more than 12 hensive one-year, bundled-fee pro- gan appears to be growing the past John has added two wellness-ori- “There is more specialized treat- statewide over the next 18 months. gram that focuses on managing several years as many physical ther- ented therapy sites the past two ment for disease states,” including The company, which acquired populations” with chronic disease. apy and rehabilitation providers are years to go along with its 12 com- for patient falls caused by multiple Troy-based Dynamic Rehabilitation Szporka said the company is fo- experiencing service volume prehensive physical therapy cen- sclerosis, Parkinson’s disease or ver- earlier this year cusing on directly contracting with growth and adding centers. ters. Site loca- tigo, and female pelvic disorders. for an unspeci- labor unions, self-insured compa- Besides hospitals that operate tions are located Michigan is one of three geo- fied amount, nies, accountable-care organiza- physical therapy clinics, providers near patients graphic areas that Pure Healthy- now operates tions and health plans. He said sev- include Team Rehabilitation, Ad- and St. John Back is using to conduct outcome centers in Troy, eral contracts have been signed, but vanced Physical Therapy and ATI Phys- physicians, she studies on its program to prove its Canton Town- declined to name any companies or ical Therapy. said. clinical value to employers. ship, Novi, Clin- organizations other than Pipefitters Another fast-growing physical “We have “We have clinical and financial ton Township Local 636 in Farmington Hills. therapy provider is Pontiac-based waiting lists for outcomes in Louisiana, Delaware and Taylor. Research has shown that chronic Theramatrix Physical Therapy. Thera- services,” Brady and now in Michigan that demon- Mark Szporka: “We would like back and neck pain are the number matrix also contracts with various Stephanie Brady: said. “We are all strate we are making patients bet- Wants to put a to put a major fa- one cause of lost workdays and the organizations, including self-em- “We have waiting seeking ways to ter,” he said. location downtown. cility in the mid- second most common cause of dis- ployed companies, unions and lists for services.” add to people’s In 2012, PHB signed a contract dle of downtown ability in the United States. More health insurers. wellness and with New Orleans-based Ochsner Detroit,” said Mark Szporka, CFO of than $100 billion annually is spent For example, General Motors Co. functioning.” Clinic, which owns nine hospitals Pure HealthyBack. “We will as soon on back and neck pain treatment. now uses Theramatrix for its hourly Brady said Pure HealthyBack’s and controls 70 percent of the inpa- as we find the right spot.” Pure HealthyBack uses the same active employees in multiple states. model is more oriented to treating tient market. Last year, PHB signed Besides Detroit, expansion in rehabilitation equipment and thera- GM had contracted with Anthem patients with chronic neck and an agreement with Lewes, Del.- Michigan could include centers in py approach as Dynamic did — Blue Cross and Blue Shield in Indiana, back disease. based Beebe Healthcare, which is St. Clair Shores, Livonia, Ann Arbor, MedEx equipment and McKenzie Kentucky, Missouri, Ohio and Wis- “We service the whole patient, all testing PHB’s model in a rural area, Lansing, Saginaw, Jackson, Battle therapy for diagnosis and treatment. consin. Ford Motor Co. has contract- the diseases patients have. The ma- Szporka said. Creek and Grand Rapids, Szporka But Szporka said PHB will employ ed with Theramatrix for years. jority of time is for acute needs, but During the next several years, said. The typical size of PHB’s reha- a larger range of medical support Stephanie Brady, vice president of we also have chronic cases,” said PHB plans to expand into Chicago; bilitation center is 10,000 square staff because research conducted care transitions at five-hospital St. Brady, noting that average acute Dallas; Tulsa, Okla.; and New Jersey, feet and costs about $1 million to at the Duke University Integrative Medi- John Providence Health System, said care treatment is 10 to 12 visits. Szporka said. Ⅲ

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CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 19 CRAIN'S LIST: LARGEST MINORITY-OWNED BUSINESSES Ranked by 2014 revenue Local Company Revenue Revenue employees Rank Address ($000,000) ($000,000) Percent Jan. 2015/ Minority group Phone; Web site Majority owner 2014 2013 change 2014 of ownership Type of business Bridgewater Interiors LLC Ronald Hall $2,281.5 $2,179.5 5% 972 African- Automotive seating/interiors 1 4617 W. Fort St., Detroit 48209 president and CEO 1,104 American (313) 842-3300; www.bridgewater-interiors.com Piston Automotive LLC Vinnie Johnson 838.2 684.0 23 302 African- Automotive supplier 2 12723 Telegraph Road, Redford Twp. 48239 chairman and CEO 287 American (313) 541-8674; www.pistongroup.com The Diez Group Gerald Diez 733.0 730.0 0 409 Hispanic Aluminum and steel sales, blanking (scallop/wave, chevron, 3 8111 Tireman Ave., Dearborn 48126 chairman and CEO NA exposed and unexposed, dimpled, oiled) laser welded blanks, cut (313) 491-1200; www.thediezgroup.com to length, slitting, warehousing Detroit Manufacturing Systems LLC Rush Group Limited LLC 694.8 593.5 17 721 Native Provides full module assemblies, mechanical and robotic 12701 Southfield Road, Building A, Detroit 48223 Andra Rush 710 American subassemblies, ultrasonic and vibration welding, plastic injection (313) 243-0700; dms-na.com chairman and CEO molding, and sequencing services to the automotive industry. 4 Other services include program management, launch management, supply chain management, logistic management, inventory and warehousing, and quality system management Global Automotive Alliance LLC William Pickard 539.0 513.0 5 446 African- Automotive manufacturer, assembler, warehouse sequencer, 5 2627 Clark St., Detroit 48210 chairman and CEO 446 American aerospace warehousing and logistics (313) 297-6676 Camaco LLC Arvind Pradhan 450.0 410.0 10 38 Asian Full-service supplier of complete structures, concept through 37000 12 Mile Road, Suite 105, Farmington Hills president and CEO 34 detailed design, including but not limited to validation, testing, 6 48331 prototype developments, state of the art manufacturing and (248) 442-6800; www.camacollc.com complete vertical integration Prestige Automotive Gregory Jackson 400.1 414.3 -3 250 African- Automobile dealerships, insurance and real estate 7 20200 E. Nine Mile Road, St. Clair Shores 48080 chairman, president and 250 American (586) 773-2369; www.prestigeautomotive.com CEO NYX Inc. Chain Sandhu 340.0 331.4 3 1,800 Asian Plastic injection molding 8 36111 Schoolcraft Road, Livonia 48150 CEO 1,628 (734) 462-2385; www.nyxinc.com Elder Automotive Group Tony Elder 303.3 343.6 -12 196 Hispanic Automobile dealerships 9 777 John R Road, Troy 48083 president 197 (248) 585-4000; www.elderautogroup.com Acro Service Corp. Ron Shahani 260.2 216.8 20 1,714 Asian Staff-augmentation, outsourcing and IT and engineering 10 39209 W. Six Mile Road, Suite 250, Livonia 48152 president and CEO 1,429 consulting (734) 591-1100; www.acrocorp.com The Bartech Group Inc. David Barfield 243.3 216.5 12 1,429 African- Human capital staffing services and managed service provider 11 27777 Franklin Road, Suite 600, Southfield 48034 CEO 1,370 American (248) 208-4300; www.bartechgroup.com The Ideal Group Inc. Frank Venegas Jr. 239.8 231.0 4 508 Hispanic General contracting, specialized miscellaneous steel 2525 Clark St., Detroit 48209 chairman and CEO 457 manufacturing and distribution of protective barrier products, 12 (313) 849-0000; www.weareideal.com pure global supply chain management, centralized storage and on-demand distribution of parts for machinery and selling excess stock materials Vision Information Technologies Inc. (VisionIT) David Segura 219.0 190.0 15 NA Hispanic Systems integrator and talent management solutions. 13 3031 W. Grand Blvd., Suite 600, Detroit 48202 CEO 345 (877) 768-7222; www.visionit.com Ideal Contracting LLC Frank Venegas Jr. 191.6 162.0 18 388 Hispanic General contractor/construction manager 14 2525 Clark St., Detroit 48209 Chairman/CEO 350 (313) 843-8000; www.idealcontracting.com Netlink Software Group of America Inc. Dilip Dubey 180.6 134.5 34 120 Asian IT managed services and outsourcing solutions and cloud- 15 999 Tech Row, Madison Heights 48071 CEO, chairman and co- NA enabled business solutions like Netlink Care Cloud and Netlink (248) 204-8800; www.netlink.com founder Data & Analytics Cloud Royal Oak Ford/Briarwood Ford Eddie Hall Jr. 157.7 148.9 6 176 African- Automobile dealerships 16 27550 Woodward Ave., Royal Oak 48067 president 165 American (248) 548-4100; www.royaloakford.com Bill Perkins Automotive Group Bill Perkins 146.9 134.3 9 136 African- Automobile dealerships 17 21800 Gratiot Ave., Eastpointe 48021 president 134 American (586) 775-8300; www.merollischevy.com Rush Trucking Corp. Andra Rush 137.7 111.0 24 350 Native Motor carrier 18 35160 E. Michigan Ave., Wayne 48184 founder and Chairman 297 American (800) 526-7874; www.rushtrucking.com James Group International Inc. John A. James 133.0 132.0 1 135 African- Logistics and supply chain management 19 4335 W. Fort St., Detroit 48209 Chairman and CEO 131 American (313) 841-0070; www.jamesgroupintl.com Avis Ford Inc. Walter Douglas Sr. 125.7 126.1 -0 106 African- Automobile dealership 20 29200 Telegraph Road, Southfield 48034 chairman and CEO 102 American (248) 355-7500; www.avisford.com Global Parts & Maintenance Paul Ureste 110.0 85.0 29 21 Hispanic OEM replacement parts, commodity supply management and 21 6112 Executive Drive, Westland 48185 CEO and managing 18 procurement services (734) 326-7600 member Systems Technology Group (STG) Anup Popat 95.0 82.3 15 330 Asian Information technology outsourcing, software application 22 3001 W. Big Beaver Road, Suite 500, Troy 48084 chairman and CEO 300 development, big data analytics, mobility and software (248) 643-9010; www.stgit.com integration services FutureNet Group Inc. Perry Mehta 94.0 100.0 -6 180 Asian Provides infrastructure solutions primarily to governmental 23 12801 Auburn St., Detroit 48223 president and CEO 123 agencies and large corporation in construction, technology, (313) 544-7117; www.futurenetgroup.com perimeter security and energy/environment areas Devon Industrial Group David Burnley 90.8 118.5 -23 30 African- Contracting and construction management 24 535 Griswold St., Suite 2050, Detroit 48226 president 26 American (313) 221-1550; www.devonindustrial.com HCL Global Systems Inc. Durga Prasad Gadde 82.0 70.0 17 NA Asian Provides solutions to various industries including health care, 24543 Indoplex Circle, Suite 220, Farmington Hills president and CEO 1,000 manufacturing, insurance, engineering, financial services, 25 48335 banking, consumer retail, telecommunications and aerospace. (248) 473-0720; www.hclglobal.com

This list of minority-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, the companies provided the information. NA = not available.

LIST RESEARCHED BY SONYA D. HILL 20150921-NEWS--0020-NAT-CCI-CD_-- 9/18/2015 11:57 AM Page 1

20 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 Jones Day law firm grows in Detroit

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By Chad Halcom 20 years at Honigman Miller Schwartz with Kevyn Orr, who was an attor- [email protected] and Cohn LLP and had chaired its ney at the firm before becoming the Global law firm Jones Day has health care law department. Ad- city’s emergency manager in 2013. been growing in Detroit more by re- ministrative partner David Orr returned to the firm earlier this calling Michigan expatriates home Rutkowski, formerly of the firm’s year and is a partner in charge of its than by scouting for talent among San Francisco office, is a native of Washington, D.C., office. the region’s own law firms. And the Traverse City area. None of Jones Day’s local attor- that’s by design, said Partner-in- Melton, formerly part of the capi- neys had a role in the bankruptcy, Charge Timothy Melton. tal markets practice in Chicago be- although the $975 to $1,075 per- Ann Sacks, suite 91 The firm, which originated in fore opening the firm’s Detroit of- hour legal fees that made headlines RJ Thomas, suites 77, 80, 82 & 90 Cleveland and now has 42 offices fice, went to high school in St. during the case may be typical for worldwide, expects to move into a Joseph, attended Wayne Law and some of its attorneys, Melton said. 21,000-square-foot office on the clerked for Judge Richard Suhrhein- “Our intention is not to compete BIG BEAVER (16 MILE) 21st floor of 150 W. Jefferson by Oct. rich, then of the U.S. District Court in with anyone that is already doing 5 from temporary offices it has oc- Detroit, from 1987 to 1989. legal work here,” he said. “Our goal cupied one floor below since it Now at five local attorneys, is to capture the kind of local busi- landed downtown July 6. counting Zair, the firm expects to ness that currently evaporates and Partner Bryan Zair, one of two have eight by year’s end and 12 by goes to law firms in other markets.” MAPLE (15 MILE) STUTZ corporate attorneys the firm picked March 31, he said. That will include some auto busi- WO up from Chicago-based Mayer Brown Melton said the firm expects to ness — the firm represented OD Wayne State University Chrysler LLC WARD last week, is a add more Detroit expatriates than in its 2009 reorganiza- Law School graduate who formerly laterals for a while. tion and defended General Motors CROOKS COOLIDGE Co. United Auto Workers The Ghiordes Knot, suites 19 & 20 14 MILE practiced here and will move to De- “We will be opportunistic, but we in a law- troit next week. The firm has also of- are certainly not out pounding on suit over pre-bankruptcy retiree fered associate positions to two re- the door trying to sell ourselves as a benefit commitments — as well as cent U.S. Supreme Court clerks. firm to anyone already working health care and a mix of other in- FURNITURE | FABRICS | WALLCOVERING | ARTWORK | FLOORING Gerald Griffith, another partner here,” he said. dustries. Ⅲ LIGHTING | TILE | KITCHENS | PLUMBING | ACCESSORIES who divides time between the Jones Day helped guide Detroit Chad Halcom: (313) 446-6796 Chicago and Detroit offices, spent through federal bankruptcy, along Twitter: @chadhalcom 1700 Stutz Drive | Troy, MI 48084 | 248.649.4772 M - F | 9AM - 5PM | Open to the public michigandesign.com Adell settles suit over Novi center site

By Chad Halcom Judge Wendy Potts last year, did not miss Adell as a defendant. [email protected] dispute the smaller sum in media- Adell said he intends to pay the Broadcast entrepreneur Kevin tion and he expects to dismiss his Lippitt settlement with bank fi- Adell will pay $325,000 to settle the litigation and remove a lien on the nancing and is also paying a $5,000 legal dispute in which he once tried Expo Center property. mediation fee to Hardy. to have an Oakland County judge “I’m happy to resolve any of our He then expects to form a new removed over the former Novi Expo past differences with Kevin. I think partnership, likely a Delaware corpo- Center, and plans to incorporate a the mediator was very gentlemanly ration or limited liability company, new family partnership to oversee and handled the matter very well,” in which relatives who were benefici- redevelopment at the site. he said. aries of the former trusts, and don’t Adell, president of Adell Broadcast- The Adell trust partnership bal- bring liabilities or creditor claims ing Corp. and owner of WADL-TV 38, ance was the largest remaining for from other court cases or business and Norman Lippitt, partner in the Hyman Lippitt. He said other small- decisions, can hold an interest. That former Hyman Lippitt PC and founder er balances are outstanding, but entity will then own and oversee re- of Lippitt O’Keefe with the Adell litigation settled, he development of the Expo Center site. Gornbein PLLC in expects to dissolve the firm as a Adell had previously been col- Birmingham, legal entity within the next year. laborating with Bingham Farms- both confirmed The Novi Expo Center opened in based Burton-Katzman Development they’d reached a 1992 on what was once the head- Co. on Adell Towers, a proposed resolution after quarters of Adell Industries. Adell two-building, 500,000-square-foot mediation this Brothers Children’s Trust, a partner- complex comprising either two month before at- ship of three trusts in the names of eight-story office buildings or an of- torney Thomas Kevin Adell’s late father, Franklin, fice building and a hotel. Kevin Adell: Hardy of Birm- and brothers Marvin and Robert, Adell said he has been in talks Settlement was ingham-based owned the property, which had with a hotel company about a cor- reasonable. Hardy Lewis & Page been vacant since 2005. porate-owned hotel site, as well as PC. Blair Bowman moved the center’s some restaurants and a possible “Sometimes you break a few eggs event management company into destination entertainment compa- to make an omelet,” Adell said late what is now the Suburban Collection ny for a more commercial use. last week of the Lippitt deal, which Showplace in Novi, and Hyman Lip- New suburban office towers are will resolve several related lawsuits pitt represented the trust for a while hard-pressed to compete for busi- dating back to 2013 in Oakland Coun- in litigation against Bowman and nesses being drawn to downtown ty Circuit Court. that business. Hyman Lippitt later Detroit right now, he said. “I thought three and a quarter was withdrew from the case and Another possibility is a vertical a fair and reasonable settlement, and claimed Children’s Trust hadn’t paid mall of high-end retailers similar to it puts the lawsuit behind us and about $200,000 in legal bills, spawn- those found in high-rises along the make plans for the property without ing new lawsuits. Magnificent Mile in Chicago. Norm lingering. I never pay until I Oakland County Chief Circuit “There’s no real debt on the prop- have to pay, and I have 45 days, so I’ll Judge Nanci Grant declined last erty, so I’m not spinning the wheels pay on that 45th day and we’ll go month to remove fellow Judge on a bicycle trying to pay that off. take care of everything in court.” James Alexander from one lawsuit, I’ve got time,” he said. “I’d like to de- Lippitt, who originally won a in which Adell’s attorney alleged the velop it for my family, and this way judgment for more than $428,600 judge made “inappropriate, biased we can time the market right rather against the Adell Brothers Children’s and expletive-filled comments” and than push through and get some- Trust partnership from Circuit said he’d deny any request to dis- thing you don’t really like.” Ⅲ 20150921-NEWS--0021-NAT-CCI-CD_-- 9/18/2015 11:17 AM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 21 TUESDAY- WEDNESDAY Crain’s2015 Health Care Leadership Summit Oct.28 SEPT.22-23 CALENDAR Digital Summit Detroit. All day Join Crain’s for this annual event health care? A growing number of Sept. 22-23. Tech Media. Latest Kay, lead anchor of “BBC World UPCOMING EVENTS that provides opportunities to Michigan’s health insurers, hospi- digital marketing trends and News America” and co-author of learn about the ever-changing tals and consulting firms are al- practices from Netflix, Zappos, The Confidence Code, will deliver 15th Annual Great Lakes Women’s landscape of the health care indus- ready doing it. HubSpot, GM, Microsoft, Salesforce, the keynote. Other confirmed Business Conference. 9 a.m.-5 p.m. try, plus make the professional Also, network with local busi- NBCUniversal, Virgin America, speakers include Nate Aschenbach, Sept. 29-30. Great Lakes Women’s contacts to help navigate these ness leaders and health care BuzzFeed, StumbleUpon and more. co-founder, GameStart; Justin DeLay, Business Council. Conference will changes. providers and discuss the latest in Max M. Fisher Music Center, CMO and co-founder, Tempo IQ; Jill address the needs of both aspiring Held at the Marriott Renaissance innovative health care strategies Detroit. $445 conference pass, $545 Ford, special adviser to Mayor Mike and established business owners Center from 7:30 a.m.-1 p.m. Oct. for 2015 and beyond. all-access pass, $695 platinum. Duggan and head of innovation and and will deliver strategies for 28, the event includes keynote Individual tickets are $125; re- Contact: Eric Gregg, (919) 274-2594; entrepreneurship, City of Detroit; succeeding in a highly competitive speaker Leah Binder, CEO of The served table of 10 is $1,300. Prereg- email: [email protected]. Mary Lemmer, CEO and co-founder, market. Suburban Collection Leapfrog Group, roundtable discus- istration closes Oct. 23 at 9 a.m. If Scape; Lisa McLaughlin, CEO and co- Showplace, Novi. $200 members, sions and the Health Care Heroes available, walk-in registration will THURSDAY founder, Workit Health; Dawn White, $225 nonmembers by Sept. 25; awards. be $140 per person. SEPT.24 CTO, co-founder and president, $225 members, $250 nonmembers Can Michigan provide con- For more information, contact Accio Energy. Michigan League, Ann at the door. Contact: Betty Aliko, sumers and employers the data Kacey Anderson, (313) 446-0300 or The Opportunities and Challenges of Arbor. Free. Contact: Marybeth (734) 677-1400; email: needed to make smart decisions in email [email protected]. a Multi-Ethnic Workplace. 5-7:30 p.m. Davis, [email protected]. [email protected]. Asian Pacific American Chamber of Commerce. How can a multi-ethnic workplace create opportunities for companies and what challenges do companies face as their workplaces become more diverse? Dickinson Wright, Troy. Free for corporate and executive APACC members; $10 for “HOW DID MR. BUCK entrepreneur, nonprofit and individual members; $20 for nonmembers. Contact: Erin Mclin, (248) 430-5855; email: TRIM HIS ENERGY BILL?” [email protected].

How to Get More Clients Now. 6:30- 8:30 p.m. South East Michigan After visiting DTE Energy’s online Lighting Advisor, Mr. Buck replaced old incandescent bulbs Entrepreneurs Association. New with more efﬁcient models to reduce lighting costs. He also adjusted his thermostat just a few ways to turn more prospects into clients. Topics include three steps to degrees when his business was closed. Then he wrapped his water pipes and adjusted his hot getting more clients; the No. 1 way water heater to save him even more. All in all, Mr. Buck says he saved around 10%, despite the business owners can create cash harsh winter. DTE Energy wants to help you give your costs a trim, too. flow; 12 tips to create authentic connections; and how to increase sales by 90 percent. Keynote speaker is Lisa Mininni, host of “The Navigating Change” radio show. Schoolcraft College, Livonia. $20. Contact: ZaLonya Allen, Go to dteenergy.com/savenow today. (248) 491-3146; email: [email protected].

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Calendar guidelines. Visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events. 20150921-NEWS--0022-NAT-CCI-CD_-- 9/18/2015 11:20 AM Page 1

22 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 ACQUISITIONS & MERGERS

Urban Science, Detroit, a provider of analytical solutions for automotive OEMs and their dealers, has DEALS & acquired AutoHook, Ann Arbor, a digital marketing company and a former division of HookLogic, New York City. Websites: leadto show.com, urbanscience.com. DETAILS Fourmidable Group Inc., Bingham Farms, served as the buyer’s repre- lung cancer, gastric cancer, renal tics LLC, Sterling Heights; Creative sentative for the purchase by Edge- cancer and glioblastoma multi- Foam Corp., Fenton; Gudel Inc., Ann water Apartment Properties LLC, forme. Paradigm will use its ad- Arbor; and Oakland County. Website: Petaluma, Calif., of two apartment vanced molecular capabilities to ulliance.com. communities in Greenville, Maple- characterize patient tissue sam- wood Square Apartments, a 104-unit ples from clinical trials to better EXPANSIONS market rate property closed at predict which patients may be NH Learning Solutions, Livonia, $5.32 million, and Meadow Ridge sensitive or resistant to Deciphera’s owner and operator of New Horizons Apartments, with 52 units, closed at Altiratinib. Websites: Computer Learning Centers, has $3.39 million. Fourmidable will act paradigmdx.org, deciphera.com. opened an office at 211 W. Fort St., as managing agent for both com- Suite 500, Detroit. Telephone: munities. Website: ZipLogix LLC, Fraser, a real estate (313)230-5480. Website: fourmidable.com. technology company, has added nhlearningsolutions.com. ClosingLinc LLC, Corona del Mar, CONTRACTS Calif., a customer relationship en- Urbcam Michigan LLC, Bloomfield Toggled, Troy, a developer and gine company, to its zipAlliance Hills, a real estate investment com- producer of solid state lighting partnership program. Websites: pany, has opened The Lofts at the technology and a subsidiary of Al- ziplogix.com, closinglinc.com. Union at Dearborn. The facility, with tair Engineering Inc., has added Ampco 99 beds and 63 units, is part of the Lighting Ltd., Hong Kong, to its ros- Ulliance Inc., Troy, a provider of Union of Dearborn and is man- ter of LED lighting product li- human resources services, will aged by UCC Management Co., censees. Website: toggled.com. provide training programs for staff Bloomfield Hills. It provides hous- and leadership at College for Creative ing primarily for students enrolled Paradigm Diagnostics Inc., Ann Studies, Detroit, and Marywood Nurs- at the University of Michigan-Dearborn Arbor, which specializes in providing Care Center, Livonia; career tran- and other higher learning centers ing cancer testing, agreement with sition services for interns at Terumo in Wayne County. Website: Deciphera Pharmaceuticals LLC, Cardiovascular Systems Corp., Ann unionatdearborn.com. Waltham, Mass., for a phase-one Arbor; and life adviser employee clinical study of Altiratinib in mol- assistance programs to the City of NEW PRODUCTS ecularly defined cancers including Troy; the City of Midland; CLAW Logis- BrassCraft Manufacturing Co., Novi, announced its new Push Con- nect Water Heater Connectors, the Speedi Plumb Plus Polymer Braid and ProCoat Coated Stainless Steel connectors designed for the plumbing professional. Website: brasscraft.com.

Employment Litigation Experience ProQuest LLC, Ann Arbor, has launched Newspapers.com Library In Your Corner.® Edition, offering access to more than 85 million digitized newspaper pages, dating from the early Ŷ Represents employers in litigation involving 1700s into the early 2000s, exclu- all types of employment and labor claims. sively for libraries. The papers range from well-known state and regional Ŷ Advises healthcare organizations in matters titles to small local newspapers in involving peer review activities, professional the U.S. and other countries. Web- credentialing and discipline. site: proquest.com. Ŷ Counsels employers regarding employment STARTUPS policies, reductions in force and employment Pedicure & Shoes to Go LLC has agreements. opened at 243 W. Congress St., Suite 102, Detroit. Website: pedicure-shoes-2-go- llc.myshopify.com.

Something Silk LLC, an online business offering hand-painted silk scarves created by owners Cindy Van Haaren, Warren, and her sister Mary Van Haaren, Chesterfield Township, has opened. Website: somethingsilk.net.

Deals & Details guidelines. Email [email protected]. First Tier Ranking in Use any Deals & Details item as a Labor Law – Management model for your release, and look for Health Care Law the appropriate category. Without complete information, your item will Fall 2015 Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Contact Terry Miglio at [email protected] not run. Photos are welcome, but we cannot guarantee they will be used. 20150921-NEWS--0023-NAT-CCI-CD_-- 9/18/2015 12:47 PM Page 1

ADVERTISING SECTION SPOTLIGHT

Here are some of the executive appointments from the Crain’s newsroom: Crain’s has moved its complete list of appointments and DIA promotes Salort-Pons promotions to www.crainsdetroit.com/peopleonthemove. to post as director Brief online listings for management-level positions are The Detroit Institute of Arts has available at no cost, at editor’s discretion. chosen its new director from within, naming Salvador Salort- Guaranteed print placement in this promotional feature can Pons to lead the museum. He be purchased at the website above. succeeds Gra- ham Beal, who retired June 30 after 16 years. The ap- FACILITY & pointment of AUTOMOTIVE NONPROFIT Salort-Pons is MAINTENANCE effective Oct. Salvador 15. He has Andrew Sadlon Dan Ringo Sandy Hudson Salort-Pons been director President, Chief Operating Officer Executive Director/CEO, of the DIA’s Froude Hofmann Inc. Continuum Services, Wins For Warriors European Art Department, di- Andrew Sadlon has been an affiliated company of Foundation rector of collection strategies and named President of Froude REDICO W4WF launched over two information, and the Elizabeth Hofmann Inc. of Novi, As COO, Ringo will assume years ago by Detroit Tigers and Allan Shelden Curator of Eu- Michigan. Froude Hofmann Leadership responsibilities pitcher Justin Verlander to ropean Paintings. manufactures Engine Test Cell Containers as for Continuum Services with a focus on support the veterans returning with mental Salort-Pons, 45, has been sen- well as the world’s most advanced corporate operations and strategic planning, health disorders, including PTSD, traumatic ior curator at Meadows Museum at Dynamometer products. Mr. Sadlon was corporate client services, sales leadership, as brain injury, and depression. Hudson is the Southern Methodist University in formerly President of Hoffman Engineering of well as employee development, retention, Foundation's first full-time executive. Formerly Dallas, a freelance curator at Stamford, Connecticut, a manufacturer of recruitment and performance. Immediately prior Henry Ford Hospital, Chief Development Memmo Foundation Rome and as- advanced LED Lighting products and test to joining REDICO, Dan served as Vice Officer. During six-year tenure with Henry Ford sistant professor of art history at equipment. President of Facility Operations at Health System, Hudson co-founded the Complutense University of Madrid. SodexoMAGIC in Chicago.. He also served as successful Get Your Heart Racing annual General Manager of Sodexo USA, serving the fundraising campaign, which raised over $3 Plunkett Cooney CEO to EDUCATION Chicago Public School system, and director of million in its 5 years. step down; Cowan named operations at Powerlink Facility Management Services, where he was responsible for the Dennis Cowan was elected Todd Baily Detroit Public Schools. REAL ESTATE president and CEO of Bloom- Assistant Vice President field Hills-based Plunkett Cooney and Director of Victors for PC, effective Jan. 1. He will suc- Michigan Campaign, FINANCE Simon J Leopold ceed Henry Cooney, who will step University of Michigan Chief Financial Officer down after 18 years. The University of Michigan Taubman Cowan, 59, has been leader of appointed Todd Baily Richard L. Platte Jr. Simon J. Leopold will replace the firm’s business law depart- assistant vice president and director of the $4 Chief Investment Officer, Lisa A. Payne as Taubman's ment. He is a part of the real es- Billion Victors for Michigan campaign. Baily Schwartz Investment Chief Financial Officer tate/transactional and govern- served as assistant dean for development and Counsel Inc. effective January 1, 2016. mental affairs practice groups. alumni relations at the U-M Law School since In this role, he is responsible Payne will retain her role as vice chairman of the Cooney, 63, did not seek an- 2004. Formerly director of Principal Gifts, for the implementation of Board until leaving the company in March 2016. other three-year term in leader- University of Michigan; Director Fundraising investment strategy for the Leopold has served as Taubman's Treasurer ship because the firm’s gover- Programming and Campaign Planning, Mayo Firm. Mr. Platte continues in his role as co- and Executive Vice President, Capital Markets, nance rules would have required Clinic Health System, Minnesota; Assistant portfolio manager of the Ave Maria Rising since joining the company in 2012. Prior to, he him to step down on his 65th Dean for Development and Alumni Relations, Dividend Fund, the Ave Maria Growth Fund and spent 13 years as a managing director in the birthday, before he could com- U-M Law School. the Ave Maria Bond Fund. real estate investment banking groups of plete the full term. He said he will Deutsche Bank, KBW and UBS. remain as a partner. Trinity Home Health names Denholm as CEO TECHNOLOGY Erin Denholm has been ap- Mikel Slater pointed CEO of Trinity Home Health Services, a division of Livo- Vice President of Human nia-based nonprofit health sys- Resources, tem Trinity Health. She replaces Comcast the retiring Grace McCauley. As a key member of the At Centura Health in Denver, region’s senior leadership Our proprietary data-driven process connects job seekers Denholm was CEO of home care team, Slater is responsible and senior living communities to employers based not only on job requirements, but on for partnering with organization leads to develop and senior vice president of clin- the candidate’s skills and interests. and implement the HR strategy for attracting ical transformation. and retaining top talent and meeting the needs of employees and the business. Slater has 15 LaLone elected ACG chief Post a job for only $39 — includes a match guarantee. years of leadership experience. Most recently, he served as Vice President of Human The Detroit chapter of the As- Resources, Americas for Plastic Omnium’s sociation for Corporate Growthelect- INERGY Automotive Systems division. Prior to ed Doug LaLone, partner in Bloom- Job seekers never pay to use the that, he worked at Meritor and DTE Energy. field Hills law firm Fishman Stewart platform. Find out which employers Yamaguchi PLLC, as president. are a match for you. In the organization of professionals involved in mergers and acquisitions, LaLone replaces Rob Dutkiewicz, a partner with Southfield accounting firm Clay- ton & McKervey PC. 20150921-NEWS--0024-NAT-CCI-CD_-- 9/18/2015 11:33 AM Page 1

24 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015

JOB FRONT REAL ESTATE

POSITIONS AVAILABLE AUCTIONS

Vice President of Customer Support Online Real Estate Auction Covenant Eyes is looking to hire a Vice President of Customer Support. The Vice President of Customer support is a core member of the Executive Strategic Leadership team at Covenant Eyes, and is responsible for supporting the Covenant Eyes customer base, leading the customer support management and staff, and continuously shaping the business, the work, and the people in support of the company’s th KŶůŝŶĞŝĚĚŝŶŐKŶůǇ͊ strategic direction. For detailed job description and to apply for position, go to our website: Tuesday, October 13 http://www.covenanteyes.com/about-covenant-eyes/careers/ KƉĞŶƚŽƚŚĞWƵďůŝĐ͊

Selling 27 real estate properties throughout Michigan through Online Auction!

&ĞĂƚƵƌĞĚWƌŽƉĞƌƚŝĞƐ >ĂŬĞKĚĞƐƐĂ͕D/͗ϵ͕ϲϬϬƐƋ͘Ĩƚ͘ĐŽŵŵĞƌĐŝĂůƉƌŽƉĞƌƚǇ ŝŵŽŶĚĂůĞ͕D/͗ϯ͕ϲϬϬƐƋ͘Ĩƚ͘ŽƉĞƌĂƚŝŶŐƌĞƐƚĂƵƌĂŶƚĂŶĚĂƉĂƌƚŵĞŶƚƵŶŝƚ >ĂŶƐŝŶŐ͕D/͗ϰϬ͕ϬϬϬƐƋ͘Ĩƚ͘ŶŽŶͲŽƉĞƌĂƚŝŽŶĂů ďŽǁůŝŶŐĂůůĞǇŽŶϱ͘ϰĂĐƌĞůŽƚ &ůƵƐŚŝŶŐ͕D/͗ϭϲƵŶŝƚĂƉĂƌƚŵĞŶƚďƵŝůĚŝŶŐ sŝƐŝƚ>^d/ƌĞĂůĞƐƚĂƚĞ͘ĐŽŵĨŽƌ ĐŽŵƉůĞƚĞůŝƐƚŽĨƉƌŽƉĞƌƚŝĞƐƐĞůůŝŶŐ͊

&ŽƌĚĞƚĂŝůĞĚ ŝŶĨŽƌŵĂƚŝŽŶΘƚŽďŝĚǀŝƐŝƚ School of Nursing Operations Manager - Clinical Learning Center >^d/ƌĞĂůĞƐƚĂƚĞ͘ĐŽŵŽƌĐĂůů ϭͲϴϬϬͲϱϮϳͲϴϮϰϯ͘

The U-M School of Nursing Clinical Learning Center (CLC) seeks an operational manager. The CLC provides unparalleled learning resources for nursing students in a new facility. This new position was created to facilitate the ongoing operations of the CLC. The manager will act as an operational manager and systems analyst responsible for analyzing and planning operational aspects of the CLC. The manager will implement necessary systems for scheduling, staffing and inventory. The manager will work with academic administrators, faculty and CLC staff to understand the materials and supplies necessary for the coursework conducted in the CLC throughout the year. Working closely with student services to fully understand and analyze the course schedules and coursework conducted in the CLC, the manager will analyze operational needs such as RESIDENTIAL PROPERTY scheduling, equipment, inventory, etc. After defining systems, procedures and policies necessary Online Real Estate Auction to operate effectively and efficiently, the manager will work with appropriate groups within the FOR SALE School to implement these systems and develop business processes. LIMITED DIVIDEND HOUSING The ideal candidate will have expertise in the areas of systems analysis, schedule optimization, ASSOCIATION L.L.C. inventory planning, staffing analysis and management, project management, and development of ϳϳ ĐƌĞƐ sĂĐĂŶƚ >ĂŶĚ A MSHDA DEVELOPMENT staff. A former management consultant, engineer, or operations analyst with management Tons of depreciation. Certified financials. experience would be highly desirable for this position . Certified current value $1.67 million dollars Please visit the University of Michigan jobs website ’Careers at the U’ to learn more Property Location: 6964 N. Canal Rd, Dimondale, MI 12 year Future value $4.5 million about this Opening and to apply: http://umjobs.org/ (Job Opening # 109374) HOUSING ASSOCIATION L.L.C. th ~8am-2pm (Online Bidding Only) ASKING $950,000.00 Tuesday, October 27 Email inquires to: [email protected] PeopleSoft Administrator for MARKET WĂƌĐĞů ϭ͗ϱϬĂĐƌĞƐ ǁ͘ ϭϭϯZh;^ĞƉƚŝĐ dĂƉZŝŐŚƚƐͿ͘ŽŶĞĚ ZͲϭD͘ZĞƐŝĚĞŶƚŝĂůĞǀĞůŽƉŵĞŶƚWŽƚĞŶƚŝĂů͘ ITC Holdings Corp. WĂƌĐĞůůϮ͗ϭϱĂĐƌĞƐǁ͘ϮϮZh;^ĞƉƚŝĐdĂƉZŝŐŚƚƐͿ͘ŽŶĞĚͲϭ͘/ŶĚƵƐƚƌŝĂůĞǀĞůŽƉŵĞŶƚWŽƚĞŶƚŝĂů͘ OFFICE SPACE WĂƌĐĞů ϯ͗ƉƉ͘ϭϮ͘ϲϮ ĂĐƌĞƐǁ͘ϮϮZh;^ĞƉƚŝĐdĂƉ ZŝŐŚƚƐͿ͘ŽŶĞĚͲϭ͘ /ŶĚƵƐƚƌŝĂůĞǀĞůŽƉŵĞŶƚWŽƚĞŶƚŝĂů͘ in Novi, MI. Duties: dev objectives & provide tech PLACE * CALL CENTER * support for PeopleSoft Fin’l, Supply Chain, & HR apps; install PeopleSoft apps, modules, & tools For Lease up to 250 seats on one floor on Oracle 10g Real Application Cluster database (or split 100 / 150). Fully furnished platform; install & configure Oracle Web Logic BUSINESS SERVICES ǁǁǁ͘>^d/ƌĞĂůĞƐƚĂƚĞ͘ĐŽŵ turn-key, like new, must see! Ramp- server & server components, & create Web &Žƌ&ŽƌŵŽƌĞŵŽƌĞŝŶĨŽƌŵĂƚŝŽŶŝŶĨŽƌŵĂƚŝŽŶĂŶĚĂŶĚƚŽƚŽďďŝĚŝĚ Server domains. Full duties available at Raise Business Capital in SEC Compliance. ǀŝƐŝƚ>^d/ƌĞĂůĞƐƚĂƚĞ͘ĐŽŵŽƌ up occupancy possible. 96/Telegraph www.itc-holdings.com. adjacent to bus stop. Offer Equity, Debt or Crowdfunding. ĐĂůů ϭͲϴϬϬͲϱϮϳͲϴϮϰϯ Req’s: Bach Deg in Comp Sci, Comp Apps or Innovative Law Firm, 27 Years’ Experience. 248-318-3544 related field, or Electrical, Electronic, or Comp [email protected] Sys Eng’g. 3 yrs exp in a PeopleSoft app’n admin ONLINE REAL ESTATE AUCTION- Weds., Sept. 30– 8AM pos’n. Exp must inc’l: configuring & tuning PeopleSoft Application Server, Process One Michigan based bank is liquidating a large amount of their bank owned real estate at public auction. Take advantage of this oppor- Scheduler, Web Server, & client tools for a REQUEST FOR PROPOSALS tunity and be ready to bid and buy on Sept 30! load-balanced environment; using PeopleSoft 56,000 SQ. FT Change Assistant for HRMS tax updates & PeopleTools app’n upgrades; data storage for REQUEST FOR PROPOSAL Montague: 19.74 Acres, 7 residential Flint: 26 Vacant condo lots in subdivi- These properties will sell PeopleSoft apps, inc’l interfacing w/ Oracle & parcels selling as one sion on Sept 30 via online OFFICE SPACE The Detroit-Wayne Joint Building Authority SQL databases; administering PeopleSoft apps & Stanwood: .72 acre vacant residential Burton: 6.98 acres (2 commercial auction. For more info, Fin’l, Supply Chain, & HR modules, inc’l (D-WJBA) owner/operator of the Coleman A. lot, touches a hole on St. Ives Golf parcels) selling as one visit LASTBIDreales- PeopleTools & Peoplebooks, & generating verity Young Municipal Center (CAYMC) is seeking Course tate.com or call Jordan search collection; & Unix & Linux admin in a proposals from qualified firms interested in Marlette: 14,480 sq. ft. industrial PeopleSoft environment. Exp can be acq’d Algonac: 2 story office building building on 1.54 Acres (616) 460-8936 FOR SALE providing snow removal services at the concurrently. CAYMC. Holly Township: 1 Acre residential lot Bad Axe: 2 story home on .2 acres- Apply at www.itc-holdings.com. EOE Swartz Creek: .24 Acre residential lot 3beds, 1.5 bath The CAYMC is a 745,000 square foot office in subdivision Port Hope: 1.93 vacant Acres building located in the heart of downtown Attica: 2.57 Acre residential parcel Port Hope: 2 mobile homes selling as POSITIONS AVAILABLE Detroit. Mt. Clemens: 3,500 sq. ft. medical one Mandatory site walkthrough’s will be held in office building Weidman: 1400 sq. ft. home on .86 û EXECUTIVE POSITIONS û the 13th floor Auditorium located in CAYMC on Howell: 3.98 vacant Acres close to I-96 Acres Thursday, September 24, 2015 at 10:00 AM Howell: 4.48 vacant Acres (2 parcels Mt. Morris: 6.72 Acres of commercial Growing Michigan Franchise is hiring all selling as a package) land with 4 buildings Executive Positions including Director of Detailed Request for Proposal may be Operations, Regional Manager and Director obtained on or before 10:00 AM Thursday, Linden: 14.85 Acres residential land of Regional Marketing. September 24th, 2015 by appearing in person Flint: 4.98 Acres commercial land at: Ownership opportunities also available. The Coleman A. Young Municipal Center All candidates should email 2 Woodward Avenue, Suite 1316 Resume and cover letter to: Detroit, Michigan 48226 [email protected] Call Us For Personalized Or MARKET Submit a request via e-mail to Service: (313) 446-6068 [email protected] SURVEY Interested firms must submit (4) four sealed bid PLACE FAX: (313) 446-0347 copies no later than Friday, October 9, 2015 MT. PLEASANT , MI ANALYZE @11:00 AM (with public opening to follow) MISCELLANEOUS E-MAIL: cdbclassified @crain.com midmich.edu/building To: INTERNET: MATCH Detroit -Wayne Joint Building Authority for more information Coleman A. Young Municipal Center NEED WAREHOUSING? www.crainsdetroit.com/section/classifieds 2 Woodward Avenue, Suite 1316 Detroit, MI. 48226 Plymouth & Livonia Area See Advertise your Attention: Michael Kennedy, Property Manager • Cross-Dock Services • Trucking Services • Diverse Supplier • Reasonable Rates Crainsdetroit.com/Section/Classifieds Products and Services in Call 810-701-0833 for more classified advertisements CrainsDetroit.com/JobConnect | Crain’s Classifieds Gets Results Crain’s Detroit Business 20150921-NEWS--0025-NAT-CCI-CD_-- 9/18/2015 5:47 PM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 25 GOP lawmakers seek return of tax

credits for charitable contributions2015UPCOMING LANSING — A group of Republi- ued at the taxpayer’s expenses be- can state senators wants to restore yond the amount credited on his or PARTNER EVENTS income tax credits for some charita- her federal tax return, or $1,200 per ble contributions that were elimi- child, whichever is less. nated several years ago. Taxpayers who donate vehicles Great Lakes Women’s Business Council Businesses that used to qualify would receive 50 percent of the fair 15th Annual Great Lakes Women’s for charitable credits under the market value of the vehicle, up to Business Conference now-defunct Michigan Business LINDSAY $50 for an individual or $100 for a Tax are not covered in the bills. The VANHULLE: couple filing jointly. This conference addresses the needs of both credits would, however, apply to in- Capitol Briefings These bills arrive as the Legisla- aspiring and established busines owners and dividual taxpayers and couples, ture tries to put together a long- will deliver strategies for succeeding in a highly [email protected] along with estates and trusts. term funding source to repair competitive market. Twitter: @LindsayVanHulle The four-bill package, intro- Michigan’s crumbling roads. Sepa- September 29-30 duced this month, would reinstate stitutions. rate packages from the House and Suburban Collection Showplace, Novi credits to taxpayers for donating to “Any time you’re deincentivizing Senate have relied on some For additional information, call (734) 677-1400. public institutions, including art, charitable contributions, I think, it’s amount of existing general fund museums, libraries, public broad- going the wrong direction. We’re spending. casting stations, colleges and uni- stronger when we’re encouraging Gov. Rick Snyder, who eliminated Detroit Society for Human Resource versities, and the state archives; charity.” the charitable credits in 2011 in an Management food banks and homeless shelters; Sen. Goeff Hansen, R-Hart, and effort to simplify the state’s tax and community foundations. Sen. Tonya Schuitmaker, R-Lawton, structure, told Crain’s the restored Workshop: The Non-Hired Candidate Experience In addition, two bills would offer co-sponsored the bills. credits would be a tradeoff to roads and the Impact on Your Organization credits for the donation of a vehicle If approved, the bills would take when it comes to general fund pri- Speaker: David Szary, founder and president, Lean to a charitable organization and for effect for tax years after Dec. 31, orities. Human Capital LLC a portion of adoption expenses. 2015. The state typically would “I understand in principle where October 6 • 7:30-10 a.m. “The best way to go off and in- award credits worth 50 percent of the governor’s coming from,” Col- Management Education Center, Troy centivize some of these institutions the donation made, or up to $100 beck said. Detroit SHRM members: $25 that we’re talking about is by get- for an individual and $200 for a Yet, he added: “This is not a bank Nonmembers: $35 ting the private sector engaged. If couple filing jointly. Estates and buster. It’s really a chance to get To register, go to www.detroitshrm.org or call you want a good library, for exam- trusts would qualify for credits (taxpayers’) voice out there.” (248) 478-6498 ple, then let’s incentivize that be- worth 10 percent of their total tax The bills — Senate Bills 461-464 havior,” said Sen. Patrick Colbeck, liability for the year or $5,000, — were introduced Sept. 9 and re- R-Canton Township, who intro- whichever is less. ferred to the Senate’s finance com- duced the bill related to public in- Adoption credits would be val- mittee. They await a hearing. Ⅲ Southfield Area Chamber of Commerce Taste of Southfield, presented by Kroger More than 20 local restaurants, taste of Southfield Cook Book, live entertainment and raffle drawings. October 6 • 5-8 p.m. UM disburses $345M of endowment for investment 2000 Town Center Atrium, Southfield Tickets: $20 (advance) The University of Michigan pledged by Citadel alumnus Anand Parekh. VII, a private equity fund in Chicago; Tickets are available at about $345 million to seven invest- The fund has $9 billion in assets as about $40 million in Stockholm- www.southfieldchamber.com ment managers from its $10 billion of March, including leverage, ac- based private equity fund EQT VII, longterm endowment pool, follow- cording to a regulatory filing. and $30 million in Foresite Capital Fund 3rd Thursday, hosted by Bluewater Technologies ing the approval of the school’s re- Another $100 million is designat- III, a venture capital fund that invests gents on Sept. 17. ed to The WindAcre Partnership, a in late stage health care companies. October 15 • 4:30-6:30 p.m. The endowment committed long-only equity manager based in The university’s endowment has Nonmembers: $10 $235 million to three new managers Houston, which has more than been managed by Erik Lundberg Register online at www.southfieldchamber.com and more than $100 million to exist- $500 million in assets. The fund is since 1999. Its annual return for fis- ing partner funds. The university managed by Snehal Amin, an alum- cal 2015 will be reported in October. has the third-largest endowment nus of the university and a founding Last year, the fund reported a 10- Marketing & Sales Executives of Detroit among public colleges in the U.S. partner of Theleme Partners hedge year return of 10.0 percent, one of Back to the Future: An Evening with MSED’s One of the largest commitments fund in London. the top returns for public universi- Platinum Award Finalists was a new $100 million investment The endowment also said it ties with at least $1 billion under in Alyeska Investment Group, a would invest $35 million with management. This year, we are inviting past Platinum Award Chicago-based hedge fund started Madison Dearborn Capital Partners Bloomberg News finalists to present their keys to success – what they accomplished to be nominated, why their efforts were successful and what their results are today. October 29 • 5-8 p.m. in technology but is willing to mull Milwaukee-based Rockwell Automa- Management Education Center, Troy PAYNE tion Inc. MSED members: $45 FROM PAGE 1 over another CFO role in the right She also serves on the non- company. profit boards of Cranbrook Educa- Nonmembers: $60 the Troy-based executive search Simon Leopold, 48, replaces tional Community, The Henry Ford and To register, please go to www.msedetroit.org or firm Harvey Hohauser & Associates Payne at the Bloomfield Hills real Care House of Oakland County. call Meeting Coordinators at (248) 643-6590. LLC, said companies searching for a estate investment company on Jan. Payne joined Taubman as CFO in leader often seek out candidates 1, 2016. She’ll continue as vice 1997 from her position as vice pres- with a financial background. chairman of Taubman’s board until ident of Goldman Sachs’ investment “The number one route that March 31. banking division. Before that, she For more local events, CEOs come up through is finance,” “I want to find something that’s was vice president of real estate Hohauser said. “Businesses strug- challenging and interesting,” Payne services at Midland-based Chemical visit Crain’s Executive Calendar at gling, either with a failing business said. “I’ve got six months (before I Bank. unit or poor processes, always look leave) to network and talk to others Payne was a Crain’s CFO of the crainsdetroit.com/executivecalendar to someone with a strong financial who have been in my position Year winner in 2013. background. The biggest challenge about options.” She earned a bachelor’s degree is whether a CFO’s skills can be re- If the right position doesn’t be- from Elizabethtown College in Eliza- fined and translated to a new income available, Payne said, another bethtown, Pa., and an MBA from dustry.” option is to seek more board seats. Duke University. Ⅲ Payne hopes to land at either an- She already serves on the boards Dustin Walsh: (313) 446-6042 other real estate firm or something of Taylor-based Masco Corp. and Twitter: @dustinpwalsh 20150921-NEWS--0026-NAT-CCI-CD_-- 9/18/2015 5:03 PM Page 1

26 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 Kresge pledges $350M in social investment by 2020

By Sherri Welch “The lan- al $1 billion from other investors to grams that are working — and mis- Crain’s reported in 2012. [email protected] guage of philan- address the issues facing cities and sion-related investments, which are Around 2011 or 2012, the foun- The Kresge Foundation’s board of thropy is shift- low-income people. market-rate investments from the dation made a 10-year, $10 million trustees has stepped up its social in- ing, from The foundation’s social invest- foundation’s corpus that align with loan at 1 percent to the Opportunity vestment plans with a commitment grant-making ments, like its grants, will continue to Kresge’s mission and values. Finance Network to provide lending to invest $350 million, or 10 percent and social in- align with its six program areas: arts All returns are funneled back into to small businesses and nonprofits of the value of its endowment, in so- vesting being and culture, education, environ- the foundation’s funding pool for in low-income neighborhoods. cially beneficial efforts by 2020. seen as two dis- ment, health, human services and reinvestment. A recent example of the way Those investments, which will parate strands of community development in Detroit. Kresge said its expanded social Kresge uses a variety of funding come on top of the nearly $140 mil- Rip Rapson: “The investment, to a The new strategic commitment investment commitment includes tools to bring in other partners lion in grants the Troy-based foun- Language of philan- new model, builds on Kresge’s use of social in- $105 million in commitments made came with this week’s announce- dation makes each year, will be thropy is shifting.” where all types vestments over the past several through the end of 2015 to projects ment of the Strong Families Fund. The funded through returns on its $3.5 of social funding years. It began exploring these tools ranging from expanding access to $70-million fund pairs affordable billion endowment over the next work in an integrated way toward in 2007 but to date has made social health care and affordable housing housing with on-site social service five years, Kresge said. the same end,” he said. investment budget and spending for low-income residents to invest- coordination in the nation’s largest The expanded commitment to so- “By defining this funding pool, we decisions annually, in addition to its ments in technology-based services pilot of pay-for-performance. cial investments — which commonly are extending our hand to for-profit annual grants. that extend the reach of the social Kresge has committed $6 million take the form of debt, equity, guaran- and nonprofit partners alike and are Those investments include both safety net. in social investments and a $1.25 tees and deposits — “solidifies the asking them to join us on the front program-related investments — Kresge made its first program-re- million grant to the fund, which at- notion that we, as a foundation, can- lines to use more innovative ap- which are low-interest loans and lated investments in 2008 as three- tracted more than $60 million to the not solve complex social programs proaches to this work,” he said. other financial tools such as guar- year, zero-interest loans to 14 project from numerous other part- through traditional grant-making With its increased commitment antees that allow entities to access human service agencies around the ners, including KeyBank, Goldman alone,” said Kresge President and to social investments, Kresge said it capital from other investors, test country that were seeing skyrocket- Sachs, and the Robert Wood Johnson CEO Rip Rapson in a news release. has set a goal to attract an addition- new approaches and scale pro- ing demand for their services, as Foundation. Ⅲ

MEDC A year of challenges FROM PAGE 3 The Michigan Economic Development Corp. is reorganizing amid budget cuts affect the course of its future. The after a year of immediate challenges, including: agency is funded in two ways — Ⅲ $25 million in legislative budget cuts, along with being targeted by the House with annual budget appropriations as a possible source of revenue for a road-funding plan. from Michigan’s general fund and Ⅲ The discovery that the state’s tax credit liability for the now-defunct through tribal casino revenue, re- Michigan Economic Growth Authority program was nearly 44 percent higher ferred to as corporate dollars. than estimated, at nearly $9.4 billion. MEDC leaders said it’s too early to offer a specific plan. But after a Ⅲ The loss of the state’s film incentives program, housed within the MEDC, year of transition and handling im- when lawmakers voted to end them; the film office recently reorganized to mediate budget pressures, CEO include digital media, including mobile app developers and animators. Steve Arwood said the agency is Ⅲ A leadership change: In January, Steve Arwood took over as CEO after Gov. positioned to deal with that ques- Rick Snyder tapped his predecessor, Mike Finney, to be the governor’s senior tion. economic growth adviser. “Now we’re going to be able to “That’s a lot of change at one time,” said Doug Rothwell, chairman of the look ahead and focus on that more MEDC’s executive committee and president and CEO of Business Leaders for strategically,” he said. Michigan. “In times of limited resources, you’ve got to work hard to get your core To start, it plans to double down mission focused.” on its three core services — business attraction and retention, including exports and entrepreneurs; MEDC redeploys for budget cuts community development; and marketing, including the Pure The Michigan Economic Development Corp. is dropping a handful of programs Michigan tourism campaign. and making other changes to accommodate a 27 percent budget cut as of “The plan that Steve laid out gets rights within a specific geographic Strategic Fund will have a com- Oct. 1, the start of the 2016 fiscal year. Most of the cuts will affect staffing, with the organization back to what its area. bined $351.8 million budget as of 65 layoffs expected. original role was a decade ago,” said The Gun Lake Tribe also withheld a Oct. 1, down from $481.7 million Other affected programs or services include: Rothwell, the MEDC’s first CEO. The required $7 million payment to the this year. Ⅲ Michigan Match (MI Match): The state no longer will set aside $2 million in agency was formed in 1999 through state in June in a dispute over online Most of the budget cuts will be matching funds to help strengthen companies’ applications for some federal an interlocal agreement under for- lottery games. The tribe, which op- related to staffing, since the MEDC grants. mer Gov. John Engler. erates Gun Lake Casino in Allegan is heavily service-based, the agency The agency was founded to with- County, believes the lottery expan- said. Some employees who remain Ⅲ Some functions that used to be handled by a stand-alone office, including stand changes in economic devel- sion negates the exclusivity provi- will be trained to do more than one supply and logistics, no longer will be housed separately but instead will be opment strategy borne by election sion in its compact that requires it job. brought in as part of a larger division. cycles, Rothwell said, adding that it to make revenue-sharing pay- While the number of employees Ⅲ The MEDC is exploring ways to maximize its office space and reduce lease has continued through three gover- ments. funded through state appropria- costs for space in Detroit. The agency owns its Lansing office building. nors, switches in political party Rothwell said the agency saw the tions has been dropping steadily Ⅲ Some employees will be trained to do more than one job. One employee may power and the worst recession since tribal revenue issue on the horizon since records started being kept in handle both economic development and community development services in a the Great Depression. and adjusted its corporate budget 2001, the MEDC’s total payroll community, where previously the services were handled by more than one Today, he said, the agency has — which pays for such programs as rose as high as 336 by January — staffer. flexibility to adapt quicker as the Pure Michigan Business Connect, in part because the number of economy changes. which matches companies with in- employees paid by tribal dollars That likely will include revenue state vendors — to include more also rose. that will change our operations that economic development at the state streams. Total tribal casino revenue one-time expenses, rather than on- The MEDC will have 242 employ- much,” said Sandy Baruah, presi- level is hugely important,” he said. has been falling, which led to small- going costs. ees as of Oct. 1. dent and CEO of the Detroit Regional “But we also need to move kind of er payments in 2014, compared to Still, the MEDC doesn’t anticipate State and local economic devel- Chamber. beyond funding challenges to ensur- the previous year, from all six tribes much growth in tribal revenue in opment administrators all say they The chamber holds events relat- ing that we have a statewide eco- that currently make them. the immediate future. As a result, don’t expect local agencies to be af- ed to the Pure Michigan Business nomic development strategy that Michigan’s American Indian the agency’s corporate, or tribal, fected as much by the cuts since the Connect program on behalf of the lasts longer than one gubernatorial tribes are required to share a per- funds are taking the biggest budget MEDC’s central programs will con- MEDC and receives a fee for service, term. The successful states have an centage of their proceeds from elec- hit — 47 percent. tinue to exist. At most, they say, said Baruah, who also recently ac- economic development strategy that tronic gaming revenue with the Coupled with legislative budget local agencies likely will notice an companied Gov. Rick Snyder on his they essentially pursue regardless MEDC as a provision of their state cuts, both midyear and for the 2016 impact of fewer staff, or one em- trade trip to Japan. who the governor is.” Ⅲ gaming compacts in exchange for fiscal year that starts next week, the ployee handling multiple roles. “Having a consistent strategy that Lindsay VanHulle: (517) 657-2204 being allowed exclusive gaming MEDC and separate Michigan “It’s not going to be an impact can be executed year after year for Twitter: @LindsayVanHulle 20150921-NEWS--0027-NAT-CCI-CD_-- 9/18/2015 5:37 PM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 27 TECHSTARS “Anya is one of the best “That Anya is moving here FROM PAGE 3 entrepreneurs I’ve run into from New York speaks to the she was surprised by the energy of in a long time. She has a very rising entrepreneurial the growing entrepreneurial com- solid plan and sticks to it. ecosystem in Detroit. ... Anya munity here. “I’m from New York, and I’m used She seems to do everything has drive and determination to a different tone there. It takes a lot right.” and is very coachable.” of time to break down doors in New York. What I find to be embracing TerryCross,angel investor Ted Serbinski,Techstars Mobility,Driven by Detroit about Detroit is in two months I felt as if I’d built up as good a network as will be rolled out first to about 660 of can thrive. It’s a land-grab situa- son,” said Brophy. “If you’ve seen her long-term rentals for executives. In I had in New York. People in the DTE’s IT staff and related contrac- tion,” he said. bio, she’s done 50,000 things already. 2012, she co-founded Living Luxe community here help each other. tors, with feedback from them being “That Anya is moving here from She’s gathered a very good team, and Inc., a boutique real estate firm There’s an energy and a desire to used to tweak the app. If things go as New York speaks to the rising en- she’s in a very hot space, the on-de- helping clients find investment change things.” planned, he said, the app will then trepreneurial ecosystem in De- mand industry, which is spreading properties in Manhattan and Fair- There was also a major tactical be offered to the 2,500 employees of troit,” said Ted Serbinski, manag- across every so-called firmly estab- field County, Conn. reason for moving a company here the downtown headquarters and ing director of the local program of lished industry in the world. She sold her stake in all three that wants to help people share eventually to all 10,000 employees. Boulder, Colo.-based Techstars, “In her case, she’s bet on some- companies last summer, which al- rides. “There’s such a lack of public “This offers a simple, elegant solu- which is called Techstars Mobility, thing near to everyone: How do I get lowed her to have money in the transportation,” Babbitt said. “This tion that our employees will rally Driven by Detroit. a ride? And she’s well on her way to bank to launch Splitting Fares. was just the best place for us to be.” around,” said Baker. “We see this as “What they’re building solves a making it work.” Babbitt, the only female CEO of When she started in the Techstars fostering engagement and collegiali- big problem, especially in a city like Babbitt, 33, is a serial entrepre- the 10 companies in the inaugural program, Babbitt said, the business ty for our employees, but that’s only Detroit, which doesn’t have very neur. “I’ve always had that hunger. I Techstars program in Detroit, said model was to sell the ride-sharing half of it. The other part is this con- good mass transit,” he said. “Anya think it’s something you’re born she has hired three local employees app to individuals so they could tinues to demonstrate our environ- has drive and determination and is with,” she said. and now employs eight, seven here find people who live near them who mental stewardship. It reduces the very coachable.” She graduated from Boston Uni- and one in New York. also work near them. number of cars on the road, it re- Displaying her willingness to be versity in 2004 with a degree in mar- She said she is raising a funding But mentors at Techstars, led by duces CO2 emissions, and it coached, Babbitt applied for keting and communications. In round of $750,000. As part of her ac- prominent local angel investor Terry reduces traffic congestion.” and was accepted to a 2008, she founded a New York- ceptance to Techstars, she got a Cross, helped persuade her to change “Anya is one of the best three-month accelerator based marketing firm, Fiat Luxe Inc., start on that round by getting her focus, to target companies in- entrepreneurs I’ve run into program run by professor and in 2010 co-founded New York- $120,000 in funding from Detroit- stead, so that closing a deal didn’t in a long time. She has a David Brophy at the Univer- based APT212 Realty Group Inc., based Fontinalis and Basking Ridge, mean adding one customer, it could very solid plan and sticks to sity of Michigan that began which helped corporations find N.J.-based Verizon Ventures. Ⅲ mean adding hundreds, or in the case it. She seems to do every- weekly meetings Sept. 16.. of DTE, potentially thousands. thing right,” said Cross. Brophy, director of the of- SPLT also allows employees who “For a person her age, she’s fice for the study of private don’t have cars to rent them when exceptionally well versed.” David Brophy: equity at the Ross School of needed from fellow employees. Cross said there are no “She’s well on her Business at UM, said 50 Steve Baker, manager of IT strate- obvious competitors for way.” early-stage companies from gy and innovation for DTE, was so SPLT in the kind of ride- around the U.S. applied and impressed by Babbitt and SPLT that sharing program the company has 15 were accepted, each being paired he introduced her on stage at the launched, but there aren’t many bar- with a team of six UM students to im- Demo Day Techstars held at Fillmore riers to entry if competitors arise. prove business models and help Detroit on Sept. 10. “The company that gets off first them refine their pitches for capital. Baker said the ride-sharing app and bites off big chunks of business “Anya is a very interesting per-

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28 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015

people are low-income. U.S., and Michigan, have long- SYRIA “Considering that 41 percent of standing traditions of settling FROM PAGE 1 Detroit residents live in poverty, 30 refugees with success. and continue to do.” percent would be an improvement. “If you look to various populations, Red tape in the way? Though the national average is 14.5 including the Chaldeans that settled percent and the Hmong are roughly in the same area, that were able to The future of the redevelopment double that, it’s still better than De- bootstrap their way into economic rests on buy-in from federal, state troit,” Kelly said. “However, the success,” Pearson said. “The people and city governments as well as the focus should really be on the 70 per- coming from Syria, in many cases, are pooling of public and private cent who are not in poverty consid- skilled and they’ve been displaced. funds. ering that they came to the U.S. “People in this situation are gen- The ACC has invested $14 million with nothing. erally dedicated to work; it’s an old of its own money into NorthTown “Nevertheless, the some-people- tradition for our refugee popula- since 1998 to build community, are-better-than-no-people argu- tion, going back to our own history human services and youth centers. ment is salient, especially when you with the Jews, Italians and Irish. It also acquired several vacant lots GLENN TRIEST consider all the theory about the This is quite a viable plan.” for the multifamily housing units. The Arab American and Chaldean Council has invested $14 million of its own money impact that watchful people have Gov. Rick Snyder is open to work- In 2013, it signed a deal with Pen- into the NorthTown section of Detroit since 1998 to build community, human services over crime rates compared to va- ing with the federal government on rose Village Development Corp. to and youth centers. It also acquired vacant lots for multifamily housing. cant houses.” the issue of Syrian refugees, but is in build 72 single-family homes, but Historical support the early stages of any discussions, the final phase of building multi- Success elsewhere ees, and accounted for 248 home Dave Murray, Snyder’s deputy press family housing didn’t happen be- purchases in Cuyahoga County, ac- Locally, Syrians were among the secretary, said in an email. cause, Kelly said, the city of Detroit There are arguments to be made cording to the study. first Middle Eastern immigrants to Currently, President Barack never approved the project, and for using refugees for revitalization The refugees also created an esti- the state in the late 1880s. By the Obama’s administration has author- without support, the developer efforts and using public and private mated $2.7 million in tax revenue at early 1900s, they were flocking to De- ized the U.S. to accept 10,000 Syrian won’t break ground. funds to do so. the local and state levels. troit seeking employment from refugees, but legislators and refugee “The bureaucracy in the city of Minneapolis-St. Paul and Cleve- In 1980, thousands of Hmong, an Henry Ford and settling in Highland support groups are urging the U.S. to Detroit has been discouraging and land both have found at least some ethnic group from rural regions of Park and later in Dearborn. Many of take in as many as 200,000. difficult to navigate,” Kelly said. “(The success rebuilding neighborhoods Laos and Thailand, were granted them were Chaldeans, who are “If the United States aims to con- developers) have had trouble identi- with immigrants. refugee status and immigrated to Catholic Assyrians with roots in Iran, tinue as a global humanitarian fying who needs to approve plans, Cleveland welcomed 4,518 the U.S. following the Laotian Civil Iraq, Syria and Turkey. leader, then it is our obligation to sig- and have been sent in many direc- refugees from Bhutan, Ukraine, War, which was rife with ethnic Later, in the 1980s, many called nificantly increase the number of tions that have led nowhere; typical Burma and Somalia between 2000 cleansing and military attacks. the Seven Mile stretch near Wood- refugees we resettle,” U.S. Rep. John inefficiency, too many layers and in- and 2012. St. Paul, Minn., is home to the ward Avenue home. It became Conyers, D-Detroit, and other party competence on the part of the city’s Volunteer agencies (commonly largest Hmong population in the Chaldean Town in 1999. leaders said in a statement last week. planning function, which we are referred to as “volags”) and cities U.S. with more than 65,000 people Michigan is now home to an esti- But that would take a significant aware Mayor (Mike) Duggan is trying spent $4.8 million on refugee servic- of Hmong decent. mated 120,000 people of Syrian and financial commitment from the to rectify.” es in 2012, according to an econom- As of 2013, Hmong businesses in Lebanese descent, according to federal government. Duggan could not comment on ic impact study on the population greater Minneapolis-St. Paul had census data. Kelly worries that the political the plan and where it stands in the by Chmura Economics & Analytics. combined revenue of $100 million, Most live well above the poverty football over refugees could im- city’s approval process. However, The funds included $2.5 million on according to Asian Americans, an line. plode the entire plan. the mayor would welcome Syrian wages to staff members at the or- encyclopedia published in 2013 on Syrian immigrants in the U.S. have “We need to get moving on this; refugees into the city, John Roach, ganizations and $1.1 million on the economic history of the group. a median household income of more we need Mayor Duggan saying we director of communications for food, clothing and transportation. However, refugee settlement is than $65,000, according to census can do this here, we need the sup- Duggan’s office, said in an email. However, the economic impact not without pitfalls. According to data, compared to less than $52,000 port of our leaders,” Kelly said. Kelly said funding could, and outpaced the support spending the 2011 American Community for native-born Americans, more “People are saying this is far- should, come from various sources tenfold, the study reported. The Survey by the U.S. Census Bureau, 31 than $48,000 for Michigan’s median fetched, but time is of the essence. to ensure the refugee resettlement economic impact of those refugees percent of Hmong living in Min- household income and nearly We have an opportunity to repopu- goes smoothly — including funds in 2012 is estimated at $48 million nesota live in poverty — though $59,000 median household income late Detroit by bringing in a new from the U.S. Office of Refugee Reset- and the creation of 650 jobs. that figure has dropped steadily for Southeast Michigan families. customer base, and I’d hate to see tlement, various nonprofits, Michi- Between 2003 and 2012, the since 1990, when it was 65 percent. Frederick Pearson, director of the Detroit miss out.” Ⅲ gan State Housing Development and refugees in Cleveland started 38 Kelly said population gains are Center for Peace and Conflict Stud- Dustin Walsh: (313) 446-6042 other state and local agencies. businesses, employing 141 employ- positive, even if a small number of ies at Wayne State University, said the Twitter: @dustinpwalsh

and expanded arcade areas are Recent bowling center closures ter,” he said. “League bowlers are BOWLING under one roof along with bowling. very supportive and very loyal. For FROM PAGE 3 Thunderbird Lanes Opened: 1961 Others are investing millions to us, that’s what we are going to strive Closed: May Southeastern Michigan Bowling Cen- upgrade scoring machines and in- Address: 400 W. Maple Road, Troy for, continuing with league play.” ters Association. “It was in no danger stall synthetic lanes that last up to Owner: Great Lakes Bowling Centers Continental Lanes That appears to be a steady rev- of closing. It was ‘The Godfather.’ It 25 years, automated bumpers and Lanes: 46 Bowling Center enue stream, Martin said. was a deal they couldn’t refuse.” more comfortable seating options, Opened: 1959 Address: 31055 Gratiot Ave. , Roseville The average league bowler spends But on the other end of the spec- said Gary Winkel, co-owner of about $500 per year on bowling, and Closed: May Owner: Stephan Pawl trum, Cloverlanes Bowl in Livonia Woodland Lanes LLC in Livonia. with 50,000 metro Detroit members and Thunderbird Lanes in Troy, In addition to improvements like Sunnybrook Golf & Bowling Inc. Lanes: 54 of the USBC, “very conservative” rev- owned by Great Lakes Bowling Cen- those, for example, the former Colo- Address: 7191 17 Mile Road, Sterling Opened: 1962 enue estimates are at least $25 mil- ters, both faced property tax issues nial Lanes in Ann Arbor — now Revel Heights Closed: June 2013 lion just from them, he said. & Roll in Wayne and Oakland counties, ac- — will reopen this month Owner: Randy and Cheryl Shank Salt River Golf & Bowling Martin said the metro Detroit cording to public records. Those al- after being closed since May for a $5 USBC chapter is the largest in the Lanes: 58 leys closed in May. million renovation that expanded Address: 33633 23 Mile Road, New country, representing 85 alleys with The industry is also facing chang- entertainment and food options. Opened: 1962 Baltimore nearly 2,700 lanes, primarily in ing family entertainment demands The 40,000-square-foot Washtenaw Will close: Sept. 30 Owner: Robert Orley Wayne, Oakland and Macomb and costly equipment improve- County staple on South Industrial Cloverlanes Bowling Lanes: 32 counties, making the region what ments that can be too much for Highway had been focused largely Opened: 1975 the chapter calls the “Bowling Capi- owners to absorb, said Ken on bowling for the last half-century. Address: 28900 Schoolcraft Road, tal of the World.” Closed: September 2014 Prokopec, executive director of the While declining to go into revenue Livonia Prokopec said that while the Bowling Centers Association of Michi- specifics, Brian Conway, vice presi- Owner: Great Lakes Bowling Centers Source: Mark Martin, manager, Metro Detroit United sport’s popularity has declined in gan in Southfield. dent and general manager of Revel & Lanes: 64 States Bowling Congress recent years, things are looking up. “The ones that have not reinvest- Roll, said the diversification didn’t “It’s pretty steady right now,” he ed, you get to the point where it happen based on financial need. the curve and stay viable for the league bowlers night in and night said. “We are about to start a new does become cost prohibitive be- “We based it on business trends next 50 years.” out, Winkel said, adding that about (league) season. They are having a cause they didn’t plan for the fu- in the bowling industry as a whole,” Others like Woodland Lanes, on 70 percent of its revenue comes better start to the year than last year. ture,” he said. he said. “With the decline of the Plymouth Road in Livonia, are hold- from league bowlers, with the rest They’ve had some increases in Some bowling alleys are turning bowling alley over the last 10 to 15 ing tight onto league bowling as coming from open bowling, league play, maybe not major ones, into FECs — shorthand for family years, it was becoming more diffi- their primary revenue source. fundraisers, private parties and but they are on the positive side.” Ⅲ entertainment centers — where ac- cult to attract new bowlers to our With just 32 lanes, Woodland is other sources. Kirk Pinho: (313) 446-0412 tivities like laser tag and rope mazes, center. We wanted to stay ahead of still able to fill the center with “We are still a strong league cen- Twitter: @kirkpinhoCDB 20150921-NEWS--0029-NAT-CCI-CD_-- 9/18/2015 5:09 PM Page 1

CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 29

crafts something with Gilbert, whose began in 2014 when the Los Ange- Capital Partners II fund had held in CRAIN’S AGENT real estate ownership portfolio in- les-based headhunting firm the team since the $325 million deal FROM PAGE 1 DETROIT BUSINESS cludes more than 80 Detroit proper- Korn/Ferry International, hired by was struck to buy the Pistons from www.crainsdetroit.com ating out of his new office at the ties — including things like buildings Gores to find a top basketball exec- Karen Davidson. Editor-in-Chief Keith E. Crain Palace. and parking decks — totaling more utive, called him to get his thoughts “He’s committed to this long- Group Publisher Mary Kramer, (313) 446-0399 or [email protected] The general idea is that Tellem than 13 million square feet. on candidates. term,” Tellem said. Associate Publisher Marla Wise, (313) 446-6032 will be Gores’ point man for finding “I’ve always had a nice relation- One of the candidates was Stan Ethan Davidson, son of the late or [email protected] Editor Jennette Smith, (313) 446-1622 or jh- new business, civic, philanthropic ship with Dan Gilbert and his peo- Van Gundy, the former Miami Heat team owner William Davidson, has [email protected] and leadership opportunities in De- ple,” Tellem said. and Orlando Magic coach. retained a small stake in the Pistons. Executive Editor Cindy Goodaker, (313) 446-0460 troit, the metro area, and elsewhere Like Gores, Gilbert owns an NBA Tellem was then working as vice or [email protected] Tellem, the man Director, Digital Strategy Nancy Hanus, (313) 446- in Michigan. Tellem will seek oppor- franchise, the Cleveland Cavaliers. president at Los Angeles-based 1621 or [email protected] Wasserman Sports Group Managing Editor/Custom and Special Projects tunities not only for Palace Sports, “I am very excited that Arn Tel- and en- Tellem said golf is an obsession, Daniel Duggan, (313) 446-0414 or but also for Gores’ Beverly Hills, lum has moved to the Detroit area dorsed Van Gundy, who was hired by and he’s in the process of picking out a [email protected] Platinum Equity Assistant Managing Editor Kristin Bull, Calif.-based firm. to execute on Tom Gores’ vision,” Gores in May 2014 on a five-year, $35 club to join. When he’s not working — (313) 446-1608 or [email protected] What the opportunities will be re- Gilbert said in a statement. “I have million deal as Pistons head coach his iPhone 6 is never far from reach, Senior Editor Bob Allen, (313) 446-0344 mains to be seen, but it’s clear that known Arn for many years, and he and president of basketball opera- and he’s thinking of creating a Twitter or [email protected] Senior Editor Gary Piatek, (313) 446-0357 they will happen amid the cranes is smart, highly effective and a high- tions. Tellem continued to have talks account — he spends his time doing or [email protected] and earthmovers of Detroit’s reinvig- energy doer. We are looking forward with Gores’ staff about various top- youth basketball-related philanthrop- Research and Data EditorSonya Hill,(313) 446-0402 or [email protected] orated downtown, and elsewhere. to engaging with Arn and Tom to ics, he said. Eventually, that led to a ic work, traveling to locales such as Web Producer Norman Witte III, (313) 446-6059 Tellem said he has begun the net- help make anything happen in De- job offer earlier this year. Italy and Israel, playing chess and or [email protected] Editorial Support (313) 446-0419; YahNica Craw- working calls and meetings to lay troit they feel will benefit their fran- “Over the years there were a table games, and voracious reading. ford, (313) 446-0329 the foundation of relationships that chise and the city as well.” number of opportunities, but none Next up on his nightstand, he Newsroom (313) 446-0329, FAX (313) 446-1687 , eventually will spur investment and Tellem also praised the Ilitch fami- were right,” Tellem said, adding that said, is David Maraniss’ newly pub- TIP LINE (313) 446-6766 cooperation. ly, which is building a $532 million Gores’ ideas and business acumen lished Once a Great City: A Detroit REPORTERS Tellem said he will immerse him- hockey arena for their Detroit Red impressed him. Story, and he just wrapped up W.G. Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. self in relationship building “to Wings, with a plan for surrounding it Why leave a lucrative career as a Sebald’s award-winning 2001 novel, (313) 446-0325 or [email protected] identify ways we can be involved in with 50 blocks of residential, com- sports agent, which was so notable Austerlitz. Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] business, in the community from a mercial, retail and office space that that he partially fueled the inspiration Tellem’s preferred reading: novels, Tom Henderson Covers banking, finance, tech- philanthropy standpoint, and lead- would transform downtown Detroit. for actor Robert Wuhl’s sports agent nonfiction history, and books about nology and biotechnology. (313) 446-0337 or [email protected] ership standpoint.” The Ilitches also own the Detroit Tigers character on the HBO series “Arliss”? Jewish culture and heritage. Addi- Kirk Pinho Covers real estate, higher education, “Relationships are a huge part of and the Little Caesars pizza chain. “I wanted to have a greater chal- tionally, Tellem said he enjoys writ- Oakland and Macomb counties. (313) 446-0412 or [email protected] my success,” he said, adding that One of Mike Ilitch’s key advisers is lenge,” Tellem said, adding that he’d ing and has been published in na- Bill Shea, enterprise editor Covers media, advertising and marketing, the business of his track record includes “building Tellem confident Steve Greenberg, accomplished all he could as an tional outlets such as The New York sports, and transportation. bridges” with leagues, owners, play- the son of Tigers Hall of Famer Hank agent. He said the new job will allow Times and Huffington Post — the lin- (313) 446-1626 or [email protected] Lindsay VanHulle, Lansing reporter. (517) 657- ers and corporate sponsors. Greenberg and a significant sports him to learn more about himself gering legacy of a youthful desire to 2204 or [email protected] Tellem is charged with creating dealmaker for New York City-based and to experience personal growth. be a sportswriter that was rechan- Dustin Walsh Covers the business of law, auto suppliers, manufacturing and steel. (313) an integrated plan in the coming boutique investment bank Allen & Co. In addition to the expansion neled into law school, he said. 446-6042 or [email protected] months, but “it’s really Tom’s vi- Tellem’s relationship with Green- plans, he’s ownership’s representa- “I love to write,” he said. Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) sion,” he said. berg dates to when the pair worked tive on the ground, he said, and his He’s also a self-described foodie 446-1694 or [email protected] His reputation as a dealmaker is at Los Angeles-based Manatt, Phelps role is to support Palace Sports CEO eager to experience metro Detroit’s ADVERTISING why he’s in the job. & Phillips LLP in the late 1970s. Dennis Mannion and Van Gundy. thriving culinary scene. Sales Inquiries (313) 446-6032; FAX (313) 393-0997 “I’ve been able to sit in a room and “I view him as a big brother. He’s Tellem endorsed Van Gundy for Michigan roots Sales Manager Tammy Rokowski make a deal, not lose a deal,” he said. the first person I call for advice and coach because of his experience, Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine The meetings, Tellem said, will re- counsel,” Tellem said. style, personality and history — ele- Tellem earned his bachelor’s de- Grace, Joe Miller, Sarah Stachowicz quire continued follow-up in order Whether that relationship trans- ments he believes gives the Pistons gree from Haverford College near Classified Sales Manager Angela Schutte, (313) for anything substantive to happen. lates into meaningful deals won’t be a stability they’ve lacked. Philadelphia in 1976 and enrolled at 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 Goals and strategies for reaching known for a while. Tellem said he’s “I think Stan is one of the most tal- the University of Michigan law school. Audience Development Director Eric Cedo them are to-be-determined elements only briefly talked to Christopher Il- ented and gifted coaches,” he said. When Tellem was a UM student in Events Manager Kacey Anderson of the expansion plans. He termed it itch, the son who runs the day-to-day the late 1970s, he would come to De- Creative Services Director Pierrette Templeton On the job Senior Art Director Sylvia Kolaski “ever evolving” and said the plan will business operations for the family. troit for Tigers and Pistons games, he Marketing Coordinator Ariel Black be adapted as opportunities arise. “I know them a little bit, and Tellem’s first week on the job has said. Despite being a Philadelphia na- Special Projects Coordinator Keenan Covington want to deepen that relationship,” been getting to know the executives tive who has regularly returned there Sales Support Suzanne Janik, YahNica Crawford Doing deals Editorial Assistant Nancy Powers Tellem said. and staff at the Palace, he said. He’s to visit family, he was a big fan of Pis- Production Manager Wendy Kobylarz Sports and entertainment will be The Ilitches continue to seek in- soon moving out of the hotel he’s tons center Bob Lanier, who played Production Supervisor Andrew Spanos the first sectors on which Tellem vestors for the $200 million-plus in been living in in favor of a condo in for the team from 1970-80. CUSTOMER SERVICE and the Palace/Platinum Equity ancillary development around the Birmingham. Tellem also said he enjoyed Main Number: Call (877) 824-9374 staff will focus, but no specifics have hockey arena that’s scheduled to His contract with Gores watching Mark “The Bird” or [email protected] Subscriptions $59 one year, $98 two years. Out of been divulged. open in fall 2017. includes a mechanism that Fidrych pitch for the Tigers. state, $79 one year, $138 for two years. Outside Deals will be done solo and in “It was pleasure to meet with Arn will give him a minority “It was electric then,” he U.S.A., add $48 per year to out-of-state rate for sur- face mail. Call (313) 446-0450 or (877) 824-9374. partnership — Tellem is long friend- recently, welcome him to Detroit ownership stake with the said of crowds at old Tiger Single Copies (877) 824-9374 ly with Detroit real estate mega-in- and begin to develop a relationship. Pistons in the future, Tellem Stadium when Fidrych was Reprints (212) 210-0750; or Krista Bora at [email protected] vestor and Quicken Loans Chairman Our organization is very open to ex- said. “It’s important for the on the mound. To find a date a story was published (313) 446- Dan Gilbert, for example. Or, com- ploring ways we may be able to community to know I’m all He remains a UM foot- 0406 or e-mail [email protected] Crain’s Detroit Business is published by panies from elsewhere could be work together,” Chris Ilitch, presi- in on this,” he said. ball fan, and meeting coach Crain Communications Inc. brought in to do downtown, region- dent and CEO of Ilitch Holdings Inc., No details about his Jim Harbaugh is on his to- Chairman Keith E. Crain al or statewide investments, he said. said in a statement Friday. eventual ownership have Tom Gores: do list. (Tellem is well ac- President Rance Crain “There are plenty of opportunities; been disclosed, but Tellem Contract offers quainted with Michigan Treasurer Mary Kay Crain Personal growth Executive Vice President/Operations it’s picking the right ones,” Tellem said. certainly has the wealth: Tellem stake in coach John Beilein and William A. Morrow Executive Vice President/Director of Strategic It wouldn’t be surprising if Tellem Tellem’s journey to the Palace Since 2008, he negotiated Pistons. Michigan State basketball Operations Chris Crain $3.5 billion in player deals, coach Tom Izzo from his Executive Vice President/Director of Corporate Operations KC Crain INDEX TO COMPANIES and agents get 3 percent to 5 percent agent days.) He planned to be at Vice President/Production & Manufacturing These companies have significant mention in this week’s Crain’s Detroit Business: of client contracts (and often a share Saturday’s UM game against UNLV. Dave Kamis of their endorsement deals). Tellem got engaged to his wife, Chief Financial Officer Thomas Stevens Chief Information Officer Anthony DiPonio Arab American and Chaldean Council...... 1 Mich. Infrastructure & Transportation Assn. ....4 Gores is also all in on the Pistons, former CBS Television Studios and Mi- Barbara Ann Karmanos Cancer Institute ...... 12 Oakwood Healthcare ...... 12 G.D. Crain Jr. Founder (1885-1973) Beaumont Health ...... 12 Plante Moran ...... 12, 14 Tellem said. Because Gores is a private crosoft Corp. digital media President Mrs. G.D. Crain Jr. Chairman (1911-1996) Bowling Centers Association of Michigan ...... 28 Prism Medical Group ...... 15 equity billionaire whose core business Nancy Tellem, when they lived in Editorial & Business Offices Business Leaders for Michigan ...... 3 Pure HealthyBack ...... 17 1155 Gratiot Ave., Detroit MI 48207-2732; strategy is to buy companies and flip Ann Arbor. She was a waitress there (313) 446-6000 Clark Hill ...... 1 Revel & Roll ...... 28 Cable address: TWX 248-221-5122 AUTNEW DET Denton Enterprises ...... 4 St.John Hospital and Medical Center ...... 13 them for a profit, there has been spec- for a time, he said. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Detroit Pistons ...... 1 St.John Providence Health System ...... 12, 17 ulation his intent was to eventually sell Hence, taking the job at the Palace published weekly, except for a special issue the Detroit Regional Chamber ...... 26 St.Joseph Mercy Health System ...... 12 third week of October, and no issue the fourth DTE Energy ...... 3 Southeastern Michigan Bowling Centers Assn.28 the team. Platinum Equity had was a sort of homecoming, he said. If week of December by Crain Communications Inc. Forthright Health Management ...... 15 Splitting Fares ...... 3 bought part of the team when Gores he didn’t quit being an agent to re- at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- Henry Ford Health System ...... 12 Sunnybrook Golf & Bowling ...... 3 purchased the club in 2011. turn home to Philadelphia, metro odicals postage paid at Detroit, MI and additional Jones Day ...... 20 Taubman Centers ...... 1 mailing offices. POSTMASTER: Send address Kresge Foundation ...... 26 Techstars Mobility, Driven by Detroit ...... 27 Gores and his aides have long de- Detroit was the next stop. changes to CRAIN’S DETROIT BUSINESS, Circula- tion Department, P.O. Box 07925, Detroit, MI McLaren Health Care ...... 11, 14 Trinity Health Michigan ...... 12 nied that it’s his intent to flip the Pis- “This was as close as I could get,” 48207-9732. GST # 136760444. Printed in U.S.A. Metro Detroit United States Bowling Congress ..3 University of Michigan ...... 12, 25 tons, and last week he bought out he said. Ⅲ Entire contents copyright 2015 by Crain Commu- Michigan Department of Transportation ...... 4 Wayne State University...... 28 nications Inc. All rights reserved. Reproduction or Michigan Economic Development Corp. ....3, 26 Woodland Lanes ...... 28 (for an undisclosed amount) the Bill Shea: (313) 446-1626 use of editorial content in any manner without minority stake his Platinum Equity Twitter: @Bill_Shea19 permission is strictly prohibited. 20150921-NEWS--0030-NAT-CCI-CD_-- 9/18/2015 5:34 PM Page 1

30 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 ON THE WEB RUMBLINGS WEEK SEPT. 12-18 Arbor — companies that are no High-tech security system Gilbert affiliate uses Detroit Digits longer startups but still need First National Bldg. A numbers-focused look at last support before finding tradition- week’s headlines: al office space. targets gas station crime OTHER NEWS to get $70M loan hootings and carjackings at portation.” 30 Ⅲ Speaking in Detroit, Vice Detroit gas stations may be The details and criteria are Dan Gilbert-affiliated enti- The number of jobs Daimler North President Joe Biden announced S reduced with help from a at ideamarket.com/detroit- ty is using the First Nation- America Corp. is moving to the creation of the Institute for Ad- new high-tech system that includes transportation-challenge. A al Building in downtown Farmington Hills as part of vanced Composites Manufacturing In- exterior cameras and lights, and a The nine-member evaluation Detroit as collateral on a $70 mil- relocating its North American novation, to develop fiber-en- quick link to a law enforcement panel that will pick the winning lion commercial mortgage- headquarters from Montvale, N.J. forced polymer composites for center. proposal includes Jill Ford, the city’s backed securities loan. A deal has Gov. Rick Snyder made the the auto industry. It will share “We want to use technology to head of innovation and entrepre- closed for 660 Woodward Associates announcement at the Frankfurt space in Corktown with the Insti- fight this and make gas stations neurship; Jamie Shea, managing LLC, tied to the Quicken Loans Inc. Auto Show in Germany on Sept. 16. tute for Lightweight Innovations for zones of safety,” said Detroit Mayor director of Mission Throttle; Ted and Rock Ventures LLC founder and Tomorrow. Mike Duggan at last week’s Techono- Serbinski, managing director of Tech- chairman, to get the loan from an $700,000 Ⅲ A 50-50 joint venture be- my Detroit conference. “The re- stars Mobility; and Alisyn Malek, in- undisclosed national lender, ac- The starting bid for Bert’s tween Cleveland-based Industrial sponse from gas station owners is vestment manager at GM Ventures. cording to a news release from Warehouse in Detroit’s Eastern Commercial Properties LLC and Los very positive.” The deadline to submit is Dec. Southfield-based Bernard Financial Market in an auction Oct. 26-28. Angeles-based Industrial Realty Duggan expressed concern at 15, and the winning team will be Group Inc., which arranged the fi- The building received a high bid of Group LLC purchased the 1.1 mil- the conference announced on Feb. 15. The win- nancing. The First National Build- $1.985 million in a July auction, but lion-square-foot Northline Industri- over a recent es- ning idea/team will form a compa- ing is at 660 Woodward Ave. that deal fell through. al Center in Romulus from De- calation in gas ny and be funded by March 1. troit-based Soave Enterprises for station crime in The winning team, which will be COMPANY NEWS 39 an undisclosed price. the city, particu- required to have an office in De- The years Raymond Wojtowicz has Ⅲ Longtime Detroit radio per- larly at night. He troit, will get either a capital invest- Ⅲ Under a tentative contract spent as Wayne County treasurer. sonality Trudi Daniels is staying at said he meets ment or a loan. agreement reached between the He submitted paperwork earlier WCSX 94.7 FM after signing a mul- periodically with IdeaMarket gets a 5 percent stake United Auto Workers and Fiat this month to retire from the tiyear deal, station owner Greater gas station own- in the company. IdeaMarket is the Chrysler, U.S. car production would position he’s held since 1976. He Media Inc. said. Terms were not Mike Duggan: ers, and safety is brainchild of California billionaire be moved to Mexico and pickup, previously served as mayor of disclosed. Concerned about one of the key Bill Gross, who launched the site last SUV and crossover production Hamtramck. Ⅲ Steven Barry Ruza, owner of gas station crime. topics they dis- year as a way to match ideas with would be concentrated in the U.S., Commerce Township-based cuss. investors. He also is on the evalua- Automotive News reported. opened Michigan’s largest solar Home Legal Group PLLC, pleaded Details about the system haven’t tion panel. Ⅲ Campbell Ewald is expected to power facility, a 1.1-megawatt guilty to one count of conduct- been finalized. appeal after the federal govern- project at the Domino’s Farms of- ing a criminal enterprise, a 20- “The mayor and the gas station Autonomous driving among ment rejected the Detroit ad fice complex in Ann Arbor Town- year felony, and faces sentencing owners are on the same page as far topics at MichAuto Summit agency’s protest of the U.S. Navy’s ship. next month. Ruza is accused of as improving safety, and we are decision to shift its $450 million Ⅲ Akron, Ohio-based FirstMerit stealing hundreds of thousands working toward an effective solu- MichAuto, an automotive-centric marketing account for recruiting Corp., in partnership with the De- of dollars from people facing tion that works for our business initiative inside the Detroit Regional to another agency. troit Land Bank Authority, began a mortgage foreclosures. owners, as well as the city of De- Chamber, will host its third annual Ⅲ Detroit-based Shinola/Detroit program in Detroit in which Ⅲ President M. Roy Wilson said troit and the community,” the MichAuto Summit on Sept. 30 at Cobo LLC announced a Detroit Lions col- FirstMerit will grant up to Wayne State University plans to in- mayor’s office said via email. “The Center in Detroit. lection as part of the watchmak- $30,000 for down payments or crease enrollment to more than issue the mayor mentioned at This year’s event — “The Con- er’s first line of National Football renovations to qualified appli- 30,000 and its six-year gradua- Techonomy is very early in the nected Culture: Shaping Michigan’s League-licensed merchandise. cants buying or fixing up homes tion rate to at least 50 percent by process at this point, and we likely Automotive and Mobility Future” Items include wristwatches, bi- bought from the land bank. 2021. Also last week, WSU’s stu- will have something more to say on — will focus on advanced automo- cycles and a black leather wallet. Ⅲ Detroit-based Henry Ford dent center reopened after a this a bit later.” tive technologies related to Internet Ⅲ The Detroit Development Fund, Health System is moving to in- $26.5 million renovation. Carjackings have declined since connectivity, cybersecurity, safety J.P. Morgan Chase & Co. and W.K. Kel- source environmental services by Ⅲ The University of Michigan 2008, when Detroit was logging and autonomous driving. logg Foundation announced the severing relationships with De- Health System has launched a more than three a day, for a total of Gov. Rick Snyder will deliver the Entrepreneurs of Color Fund, a troit-based Powerlink Facilities Man- hand transplant program that it 1,231. In 2014, that dropped to 525. keynote address. $6.5 million lending program for agement Services, Southfield- says is the first in the state, AP re- But an uptick in serious gas sta- Among other speakers will be Detroit businesses owned by mi- based Vibrus Group LLC and ported. tion crime in the summer prompt- Jason Koch, president and co- nority entrepreneurs or busi- Torrance, Calif.-based Agile 1 Work- Ⅲ Philanthropist and art dealer ed Detroit Police Chief James Craig founder of California-based nesses that primarily hire mi- force Solutions. Gary Wasserman, president of Allied to recommend that residents be telematics soft- norities. Ⅲ Wixom-based Detroit Public Metals Corp., will open the Wasser- wary of buying gasoline at gas sta- ware firm Ⅲ UAW-represented employees Television was one of 11 PBS sta- man Projects art space in Detroit’s tions late at night. Telogis; Andrea at Blue Cross Blue Shield of Michigan tions chosen nationally by PBS Eastern Market on Sept. 25. The Techonomy Detroit confer- Mai, director of voted down a master labor agree- and the Corporation for Public Broad- Ⅲ The Internal Revenue Service is ence, in its fourth year, was held smart connect- ment with the Detroit-based casting to share in grant funding auditing $200 million in bonds Sept. 15 at Wayne State University ed vehicles for company earlier this month, but to expand its early childhood ed- to determine whether to revoke Law School, and it takes a high-level Cisco Systems both sides expected talks to con- ucation programs in disadvan- federal subsidies given to cash- look at how technology is changing Inc.; Chris tinue. taged areas. The amount to strapped Wayne County for its work and life in the U.S. and its Thomas, partner Ⅲ Detroit Medical Center plans to DPTV is expected to be about unfinished jail project, cities. Chris Thomas: at Detroit- settle the last piece of a nine-year $100,000 to $125,000. Bloomberg reported. Fontinalis partner based venture class-action lawsuit over nurse Ⅲ Detroit Venture Partners has Ⅲ The Michigan Department of Contest will fund Detroit to speak at event. capital firm wages in Southeast Michigan for named its newest portfolio com- Treasury will process city of De- transportation ideas Fontinalis Part- $42 million, almost as much as pany: Campless.com, a website troit individual income taxes ners LLC; Rick Haas, president and the seven other hospitals in- that provides data to collectors of starting in January in order to Up to $250,000 in cash and serv- COO of Mahindra North American volved in the lawsuit combined, rare high-end sneakers. The improve efficiency, AP reported. ices are being made available via an Technical Center; and Andre Weimer- after a federal judge approved a amount of the investment was Detroit filers will be able to, for IdeaMarket contest to anyone who skirch, associate research scientist settlement with more than not disclosed. the first time, submit returns can gin up new ideas to improve at the University of Michigan Trans- 20,000 registered nurses. Ⅲ Farmington Hills-based electronically. Detroit’s transportation woes. portation Research Institute. Ⅲ Lauren Rakolta, founder of The Level One Bank said it will open its The Detroit Transportation Chal- Sponsors include Pure Michigan, Rakolta Group and former vice- first Detroit branch in January in OBITUARIES lenge launched Sept. 15 and is KPMG LLP, Phoenix Contact, Business chairwoman for the Oakland Coun- the Julian C. Madison Building down- aimed at linking investors to “entre- Leaders for Michigan, ITC Holdings ty Republican Party, acquired a ma- town. Ⅲ Jack Robinson, founder of preneurs, engineers, designers and Corp. and others. jority interest in Detroit-based Ⅲ Ann Arbor Spark is seeking the former Michigan-based other creative thinkers to create an Tickets are $150 for chamber Devon Facility Management LLC and early-stage companies for its Perry Drug Stores chain and for- innovative solution that significant- members and $225 for nonmem- became its president. 6,600 square feet of new incuba- mer president of Rite Aid of Michi- ly improves transportation in De- bers. For event details, visit Ⅲ Detroit-based DTE Energy Co. tor space in downtown Ann gan, died Sept. 15. He was 85. Ⅲ troit, with focus on public trans- detroitchamber.com. Ⅲ PN Full pg_DBpageAD.qxd 9/9/2015 10:32 AM Page 1

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