Detroit in Transition

Home , Dave Rozema, Dwele, Southfield Town Center

20131118-NEWS--0001-NAT-CCI-CD_-- 11/15/20136:10PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved digital media. preservation projectthrough porters launchinganart search intoadiseaseorsup- enabling unconventionalre- examples includeafamily vate investment.Potential funding orotherformsofpri- ternative togovernment tackle it. with professorswhowantto idea orchallengeandengage group with$75,000topostan allows anindividualor started lastyear.Theproject usual methods. for farlessmoneythanthe the university’sknowledge for aparticulararea”cantap said peoplewith“apassion utive committeechairman, the announcing theexpansionof school saidFridaytheywere among professors. ing ideasandcollaboration ing effortthat’sjump-start- walls tojoinaresearchfund- inviting peopleoutsideits Page 16 weighs nextmove, Visteon steadiesfinances, Page 4 of wastecontractwin, Rizzo lookstohireinwake field day Comerica Parkhasa program topublicideas UM toexpandMCubed This JustIn NEWSPAPER www.crainsdetroit.com Vol.29,No.47 Inside Page 3 Mark Burns The programoffersanal- Officials attheAnnArbor The MCubed University ofMichigan — AssociatedPress program, which , MCubedexec- care cancer gap in plan fills resident’s Surgical is stitute acquisition of sometime inearlyDecemberonits ing campaignaftertheinkdries Inc. Macomb counties. it won’tbeinWayne,Oaklandor prehensive cancercenters. DMC pacttokeepKarmanosnameofflocalMcLaren sites Flint-based That’s becausewhenKarmanos But, withacoupleofexceptions, Detroit in transition priorities, Page27 elect’s first talent aremayor- recruiting thebest Transition team, plans amajorstatewidebrand- CRAIN’S DETROITBUSINESS , oneofthenation’s41com- B Y J AY McLaren HealthCare Karmanos CancerIn- G REENE NOVEMBER 18–24,2013 Lane Page 26 road witholdmap? Kevyn Orrdrivingnew Is officials wonder: consultants, some millions on As Detroitspends ficials withMcLaren,Karmanos Oakland andMacombcounties,of- For MarlaWise information, contact advertising at 313-446-6032 [email protected] at 313-446-6032 DMC inWayne, only withthe brand itsname ket servicesand advertise, mar- manos agreedto $10 million,Kar- tion in2005for cancer opera- ter troit MedicalCen- acquired the ’s $100million

KENNY CORBIN De- tising campaignoutsideofthe prehensive marketingandadver- of thetri-countyarea.” using theKarmanosnameoutside ficer. “Nothingprecludesusfrom McLaren’s chiefadministrativeof- placed onus,”saidGregLane, cognizant ontherestrictions tractive brand,andwearevery DMC campusinDetroit. Karmanos alsoleasesspaceonthe and DMCconfirmedto purchase offers owner weighs4 Town Center Group Inc. tate informationservice $270 million,accordingtoreales- five-building complexin1999for say. Blackstonepurchasedthe million and$170million,sources ing torealestatesources. 10 andEvergreenRoad,accord- north of10MileRoadbetweenM- foot ClassAofficecomplex, buyers forthe2.2million-square- offers fromlocalandout-of-state stone GroupLP with $138millionowed. plex, indefaultonitsmortgage to buythelandmarkofficecom- Town Center Lane saidMcLarenplansacom- “Karmanos hasanextremelyat- Tower 4000 According tocommercial Those offersarebetween$160 New YorkCity-based The ownerofthe CRAIN’S DETROITBUSINESS B Y K is consideringoffers IRK is consideringfour P INHO Southfield Crain’s Tower 3000 CoStar Black- . Tower 2000 highest bidder. in metroDetroitiscurrentlythe has neverpurchasedrealestate source, anout-of-statebuyerthat Bloomberg loandata. $321 million,accordingtothe percent belowa2004appraisalof this summerat$177.5million,45 2012. Thecomplexwasappraised stone paythebalancebyNov.5, originally stipulatedthatBlack- go BankNA loan wastransferredto Capital FinancialProductsInc. Irving, Calif.-based property originatedin2004by a $235millionmortgageonthe unable topaythebalancedueon from mortgage backedsecuritiesdata clude BayCity,Lansing,Petoskey ern andeasternMichiganthatin- cancer centerlocationsinnorth- 10 hospitalsand11of14outpatient manos nameatnineofMcLaren’s liminary planistousetheKar- rector ofmarketing,saidthepre- ties. ness in53ofMichigan’s83coun- gan. HesaidMcLarendoesbusi- three countiesinSoutheastMichi- The complexis32percentva- According toarealestate A loanmodificationletter Kevin Tompkins,McLaren’sdi- Bloomberg LP See Karmanos,Page28 Tower 1000 for specialservicing. $2 acopy;$59year See Sale,Page25 Town Center. Southfield of the the fourtowers sale includes The proposed , Blackstoneis Greenwich Wells Far- ® The 20131118-NEWS--0002-NAT-CCI-CD_-- 11/15/2013 4:43 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS November 18, 2013

MICHIGAN BRIEFS Northern Mich. microbrewery ment and machinery, and purchase and renovate a new facility. grows pub, plans retail store That’s a wrap: Firm offers new ad surfaces for retailers Ⅲ A historic building in down- Short’s Brewing Co. plans to es- town Grand Rapids that recently Here’s something new for a captive audience: A lines of grocery stores and have an easy-to-clean fell into receivership has new own- sentially double the size of its West Michigan startup wants to capitalize on the surface that is more sanitary than typical conveyor brewpub in Bellaire, adding more ers, MiBiz reported. Grand Rapids- forced presence of consumers at checkout lanes by belts, Vanderploeg said. based law firm Keller & Almassian seats and a new retail store, turning a formerly blank surface — the checkout The new belts also contain eye-catching ads the PLC recently closed on the property MLive.com reported. The 9-year- conveyor belt — into an advertising opportunity. company believes will grab shoppers’ attention bet- at 230 E. Fulton St. and hopes to old northern Michigan micro- Grand Rapids-based Handstand Innovations LLC pi- ter than the typical ads scattered around stores. move into the building, known as brewery is responding to a quickly loted its concept at local grocery stores, but the firm Handstand has spoken with Wal-Mart Stores Inc. the Pike House by next summer. growing fan base as its beers are aims to take its product to the global market. The corporate executives about getting MessageWrap in The two-story, 25,000-square-foot distributed throughout the state. company just completed a $600,000 equity offering all 4,000 of its stores around the U.S. Handstand cur- building was bought by Keller & Al- Short’s is working to acquire with Annapolis, Md.-based Compass Marketing, a rently has distribution for its product in grocery massian from Amicus Management purchase agreements for three lots multinational strategic marketing firm. stores in several countries. for just more than $1 million. and four buildings adjacent to its Susan Vanderploeg founded Handstand in 2009 “People will just have the expectation that they Ⅲ Financial planning company current location. It plans to ex- with the idea of being a retail innovations company will be able to use MessageWrap for any type of pro- Oliver LaGore VanValin Investment pand its 4,000-square-foot pub and and placing branded advertising on the checkout motion,” Vanderploeg said. “Retailers are like puppy Group announced it will relocate brew house into connecting store- lanes and other surfaces of groceries and retail dogs. Once somebody is doing it, everyone else is.” from Burton into the historic Du- fronts. stores. It has nine employees and a second office in In 2011, Handstand installed a prototype of the rant building in downtown Flint, The brewpub will have more Washington, D.C. Handstand declined to give rev- checkout product at Forest Hills Foods, a suburban MLive.com reported. Dean Oliver, space for patrons along with a re- enue figures, citing its young age. Grand Rapids grocer acquired by Spartan Stores last the company’s CEO, said the move tail store offering apparel, bar ac- In partnership with Walker-based conveyor belt year. In January, Spartan approved the deployment will be a long-term investment into cessories, artwork and more. manufacturer Mol Belting Systems Inc., Handstand of MessageWrap advertising in 82 of its stores the city of Flint. Short’s expects to spend $1.2 developed its MessageWrap product. The coated, an- around Michigan. Ⅲ Sparrow Health System will re- million on the project and create timicrobial belts are easily installed in the checkout — MiBiz place seven registered nurses with 20 full-time jobs. Construction is medical assistants within 90 days at expected to be complete before its two urgent care centers, the volved in the settlement include lion. Horizon Bank, with assets of summer 2014. Lansing State Journal reported. Delphi’s shuttered Dort Highway MICH-CELLANEOUS $1.8 billion, has 29 offices in north- The Lansing-based hospital system Flint East Plant 400 and Plant 500 Ⅲ Horizon Bancorp will expand its ern Indiana and southwestern said the move is the result of a Federal court: DPH Holdings in Flint, and the former Delphi Sagi- presence in Michigan with the Michigan, and is planning to move staffing review and will affect full- naw Division Plant 2 in Saginaw. planned acquisition of Summit into the Grand Rapids market. and part-time nurses at care centers must clean up polluted sites The fourth plant is an inactive as- Community Bank in East Lansing, Ⅲ Ventra Grand Rapids 5 LLC plans in Mason and Meridian Township. A U.S. Bankruptcy Court judge bestos landfill in Rootstown, Ohio. MiBiz reported. Michigan City, to invest $16.3 million over three has ordered DPH Holdings Corp., The three properties are among Ind.-based Horizon expects the years and create up to 150 new jobs Find business news from formerly known as Delphi, to pay the last of DPH’s assets, and Delphi $18.4 million stock-and-cash trans- in Kentwood to launch a new auto- around the state at crainsdetroit $23.3 million to clean up four pol- expects to wrap up its bankruptcy action to close in the second quar- motive lighting line, according to .com/crainsmichiganbusiness. luted sites in Michigan and Ohio, proceedings and dissolve by year’s ter of 2014. Summit Community MiBiz. The automotive supplier, a Sign up for Crain's Michigan according to MLive.com. end, according to the U.S. Attor- Bank has two offices in the Lans- division of Urbana, Ill.-based Flex-N- Business e-newsletter at crains Three of the four properties in- ney’s Office. ing area and assets of $161.0 mil- Gate, plans to invest in new equip- detroit.com/emailsignup. 20131118-NEWS--0003-NAT-CCI-CD_-- 11/15/2013 5:47 PM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 3 Comerica has a field day Second Stage Playing surface replacement not a walk in the park

BY BILL SHEA New Kentucky bluegrass will be installed $1 million. CRAIN’S DETROIT BUSINESS early next year at Comerica in the first full- The Detroit Pistons bought a new basket- field sod replacement at the ballpark since ball court in 2011 and the Detroit Lions in- he grass playing field at Comerica 2007. stalled new artificial turf earlier this year. Park has been entirely stripped away The Detroit Tigers haven’t awarded the The University of Michigan and Michigan State T to the naked brown earth for the in- contract to a sod farm for the new grass, University have replaced their football fields New skills build a stallation next month of a new surface — which is scheduled to be installed in March since 2010. ice. to give it a month to take root before the The exception is the Detroit Red Wings, turnaround, Page 11 At a cost of up to $1 million, the National 2014 baseball season begins. who put down a new sheet of ice at Joe Hockey League is paying Kitty Hawk, N.C.- The temporary ice and permanent grass Louis Arena before each season using the based Rink Specialists Inc. to build a tempo- represent the latest new playing surfaces original ice-making equipment at the 34- rary ice rink on the baseball stadium’s in- installed in recent years by the region’s year-old venue. Company index field for the Hockeytown Winter Festival professional and college sports teams, These companies have significant mention in this games at the end of December. each ranging in price from $100,000 up to See Comerica, Page 29 week’s Crain’s Detroit Business: AlixPartners ...... 25 Ann Arbor Spark ...... 12 Baird Capital ...... 19 Beaumont Health System ...... 28 Brinks, Gilson & Lione ...... 13 CBRE ...... 25 Citizens Research Council of Michigan ...... 26 Consumers Energy ...... 10 Core Partners Associates ...... 15, 25 Covaron Advanced Materials ...... 6 Danlaw ...... 12 DeBuck Sod Farm ...... 29 Detroit Bus ...... 29 Detroit Lions ...... 3 Detroit Medical Center ...... 1 Detroit Pistons ...... 3 Detroit Red Wings ...... 3 Detroit Tigers ...... 3 Detroit Renewable Energy ...... 4 Detroit Renewable Power ...... 4 DTE Energy ...... 10 Energy Choice Now ...... 10 Fifth Third Bank ...... 25 ForeSee Results ...... 12 Ginosko Development ...... 15 GlobalHue ...... 25 Henry Ford Health System ...... 28 Henry Ford Hospital ...... 25 HistoSonics ...... 12 Honigman Miller Schwartz and Cohn ...... 28 Hosco Fittings ...... 13 Industrial Visions ...... 12 Karmanos Cancer Institute ...... 1 Kenneth J. Dalto & Associates ...... 11 LMC Automotive ...... 14 Loomis Sayles ...... 16 McLaren Health Care ...... 1 Metro Airport Taxi ...... 29 Metro Cars ...... 29 Michigan Bankers Association ...... 13 Michigan Economic Development ...... 12 New Kentucky bluegrass will be installed Michigan Jobs & Energy Coalition ...... 10 early next year at Comerica Park in the Michigan State University ...... 3 first full-field sod replacement at the Mobile Comply ...... 13 ballpark since 2007. Mobile Technology Association of Michigan ...... 13 NATHAN SKID / CDB NAI Farbman ...... 25 Newmark Grubb Knight Frank ...... 25 Oakwood Healthcare ...... 28 O’Keefe ...... 26 Original Equipment Suppliers Association ...... 14 Rizzo Environmental Services ...... 4 St. John Macomb-Oakland Hospital ...... 3 Resident’s plan fills gap in St. John Macomb cancer care St. John Providence Health System ...... 3 Saline Lectronics ...... 11 BY JAY GREENE proposal — complete with financial pro- Southfield Town Center ...... 1 CRAIN’S DETROIT BUSINESS jections that now amount to $1.2 million University of Michigan ...... 1, 3, 26 in first-year net revenue — for the Varsity News Network ...... 6 Visteon ...... 16 As a surgical resident at St. John Ma- surgery program to William Bloom, comb-Oakland Hospital, Macomb Center in D.D.S., oral maxillofacial surgery chair- Warren two years ago, Carlos Ramirez, man, and Dhafer Salama, M.D., hospital M.D., saw dozens of patients with ad- chief of staff. Department index vanced head or neck cancer leave for The three physicians then presented specialized surgery at other hospitals in the plan to Terry Hamilton, president of “We have a BANKRUPTCIES ...... 19 Southeast Michigan. St. John Macomb, who recommended medical team BUSINESS DIARY ...... 22 that is trained to Not only was St. John Macomb losing the program to Jean Meyer, interim CALENDAR ...... 23 revenue because the hospital did not CEO of five-hospital St. John Providence work together to help our CAPITOL BRIEFINGS...... 18 have a microvascular reconstruction Health System, the hospital’s parent orga- patients,” said CLASSIFIED ADS ...... 25 program, cancer patients with estab- nization. Carlos Ramirez, KEITH CRAIN...... 8 lished local medical and dental relation- But Ramirez, who was still a physi- M.D., of St. John ships were having to travel longer dis- cian in training, needed to complete a 12- Macomb’s new LETTERS...... 8 tances for their care. microvascular MARY KRAMER ...... 8 So in early 2011, Ramirez presented a See Cancer, Page 25 JOHN SOBCZAK surgery program. OPINION ...... 8 PEOPLE ...... 24 Health care news PDFs for posterity RUMBLINGS ...... 30 Love our paper? Like to save copies? Save space THIS WEEK @ Sign up for a free twice-a-month WEEK ON THE WEB ...... 30 e-newsletter at instead. PDF versions are available to subscribers at WWW.CRAINSDETROIT.COM crainsdetroit.com/getemail crainsdetroit.com/section/toca. 20131118-NEWS--0004-NAT-CCI-CD_-- 11/15/2013 5:48 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 18, 2013 Rizzo, Advanced Disposal to divide zones for city waste collection

BY CHAD HALCOM winning bidders among seven Woodward Avenue north of I-94. CRAIN’S DETROIT BUSINESS companies. Chuck Rizzo, president and CEO They will handle solid waste col- of Rizzo Environmental, said his We are absolutely going to Sterling Heights-based Rizzo En- lection and single-stream recy- company expects to manage its “ vironmental Services Inc. and Ponte cling in four zones of the city, De- zones for about $10.5 million to need all new vehicles ... (and) Vedra, Fla.-based Advanced Dispos- troit Emergency Manager Kevyn $11 million per year, but contract al Inc. are on the hunt for new peo- Orr announced through a details are still being finalized. He employ quite a few people. ple and equipment to carry out a spokesman late last week. also expects to purchase about 40 ” new five-year Detroit municipal The two contractors will divide vehicles and hire at least 50 new Chuck Rizzo, Rizzo Environmental Services waste hauling contract to be final- the city’s estimated 247,000 resi- employees to take on the added ized in the next few weeks. dences about equally by east and workload. lic Works to collect waste and send these transitions lately, to add new Rizzo, which has contracts with west starting in March. Rizzo will Taken together, the city esti- it to the Detroit Renewable Energy services for local communities, about 30 communities in South- be the waste collector in Zones III mates the two companies will cost LLC waste-to-energy plant. that it shouldn’t be a problem to east Michigan, and Advanced Dis- and IV, which cover the northeast between $23 million and $25 mil- “We’re absolutely going to need carry out. And Detroit, in my opin- posal, which operates the Arbor side and the area between I-94 and lion per year and save the city all new vehicles for this particular ion, seems to be doing everything Hills landfill in Northville and the Detroit riverfront, while Ad- about $6 million per year, com- contract, and we have to employ on this contract in (concern for) three transfer stations in Wayne vanced Disposal has Zones I and II, pared with its current cost for em- quite a few people,” Rizzo said. what benefits the community.” and Oakland counties, were the or from the northwest side to ployees of the Department of Pub- “We’ve been doing so many of Mary O’Brien, chief marketing officer for Advanced Disposal, did not return two phone calls seeking comment last week. “With this contract, the city is saving millions and improving services at the same time; this is a win-win for everyone,” Detroit city COO Gary Brown said in a statement Thursday. The two companies are expected to handle weekly trash collection before 5 p.m. for residential customers and add single-stream curbside recycling — a new service not currently offered to most city residents. Rizzo said it’s not immediately clear if the finalized contract will require the two companies to continue shipping all solid waste to the waste energy plant, also known as the Detroit incinerator. Ready to grow He said the city, through the Greater Detroit Resource Recovery Authority, will continue to pay for waste disposal on its own, sepa- rately from its collection and recy- your business? cling contracts with the two hauling companies. Detroit Renewable Energy sub- sidiary Detroit Renewable Power, owners of the incinerator, current- Let’s customize a plan to ly receives a $25 tonnage fee to collect the waste, and Orr spokesman Bill Nowling has said the city hopes to achieve savings in part by paying a more competitive rate make it happen. that some other customers pay. John O’Sullivan, president of Detroit Renewable Power, said Thursday the company has not had any discussions with either company about future arrangements for Detroit waste collection. CITIZENS BANK IS NOW FIRSTMERIT BANK. The company is in talks with other potential new customers, he said, that could help offset any losses from reduced Detroit volume. The two companies must also handle biweekly bulk trash dispos- We’re here to help. al, previously a quarterly service within DPW, and extend job offers At FirstMerit Bank, we make it our business to know your business. to DPW employees whose positions will be eliminated when the With over one hundred years of experience creating tailored solutions contract takes effect. to meet unique business needs, we can help you make the best choices The city also plans to sell its fleet of garbage trucks to fund a for your business. So, whenever you’re ready to chat, we’ll be here. campaign to clean up some of the worst cases of illegal dumping activity in Detroit neighborhoods and school zones. The review committee — Brown, a representative from Orr’s office, DPW director Ron Brundidge, the city purchasing director and a representative of the TO LEARN MORE, CONTACT: Greater Detroit Resource Recov- David Lochner, President, Michigan, ery Authority — evaluated bidders at 248-324-8555 or david.lochner@ﬁrstmerit.com. on a 100-point sourcing process based on capacity to serve, experience on similar projects and basic Member FDIC service cost. 1403_FM13 FirstMerit.com/MeetUs Chad Halcom: (313) 446-6796, [email protected]. Twitter: @chadhalcom DBpageAD_DBpageAD.qxd 11/12/2013 10:14 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS November 18, 2013 Carlyle Group exec: Low-cost energy will spur U.S. manufacturing

BY TOM HENDERSON petition. (See winner, this page.) jor manufacturers, he said. tinuing low interest rate environ- “No one is smarter than the CRAIN’S DETROIT BUSINESS The Carlyle Group is one of the “The U.S. has a huge advantage ment, changing views on emerging market, and the market thinks in- largest private equity companies over the rest of the world, includ- markets and other investment op- terest rates are going to go up a lot Cheap domestic natural gas sup- in the world, with 122 active in- ing China, because of cheap ener- portunities. sooner than that,” he said. plies will lead to a rebirth of Amer- vestment funds and $185 billion gy costs. And those costs can be Conway said low interest rates Rising interest rates will mean ican manufacturing, according to under management. sustained. The reindustrialization had been a boon for Carlyle — “we “emerging markets will struggle a presentation Thursday by “Shale has changed everything. of America will give us a competi- borrow a lot of money” — but that in the short term, but they’re still a William Conway Jr., co-CEO and We can use this cheap energy to tive advantage for a long time,” the jury was still out on its overall great place to invest long-term,” he managing director of the Washing- make a more energy-efficient Conway said. impact. Either way, he said, they said, especially given the histori- ton, D.C.-based Carlyle Group. America,” said Conway, who rec- Despite his long-term optimism are here for a while, given a report cally low government bond prices Conway was the keynote speak- ommended investing in companies in U.S. investment opportunities last week by the U.S. Federal Re- around the world, with some gov- er at the Crain’s Forum for Institu- that provide supplies, such as — he likes health care services and serve Bank that said it anticipates ernment bonds, including German tional Investors at the Westin Book pipelines, to the natural gas indus- medical devices — Conway said it keeping interest rates near zero and Japanese, paying less than 1 Cadillac in downtown Detroit, held try, as well as companies that use a is a good time to sell U.S. equities through the middle of 2017. percent. in conjunction with the Michigan lot of energy, since lower costs of and take some money off the table, Conway said markets generally Tom Henderson: (313) 446-0337, Economic Development Corp. and the operation will lead to improve- given the long, steep run-up on all believe the Fed will begin raising [email protected]. Twitter: fourth annual Accelerate Michi- ments in the bottom line. the major stock indexes. interest rates before then as the @tomhenderson2 gan Innovation business plan com- A lot of those companies are ma- Conway also discussed the con- economy improves. GR website wins first prize in biz plan competition

Varsity News Network, a Grand Rapids-based website that posts news and photos of high school athletic events, was the first-place winner of $500,000 at the fourth annual Accelerate Michigan Innova- tion competition Thursday night at Orchestra Hall in Detroit. Varsity News, which has raised $2 million in equity capital and surpassed $100,000 in monthly revenue from operations in 13 states, beat nine other finalists, which My crazy dream is the reason. had been whittled from 51 semifi- nalists in a series of business plan pitches Wednesday and Thursday at the Westin Book Cadillac Detroit. Ann Arbor-based Covaron Ad- vanced Materials Inc. won $100,000 as runner-up. The company, which won $25,000 at last year’s Acceler- ate Michigan event, has developed a process for making high-performance ceramics at far lower tem- peratures than traditional manufacturing, reducing energy costs and production time. REL Inc., Calumet, received $50,000 for finishing third. The company uses advanced materials to make lightweight rotors for mo- torcycles and electric vehicles. Eight companies won $25,000 each for having the best business plan in various industries. They were Inmatech Inc., Ann Arbor; Wave Aircraft Inc., Birmingham; LiteBrake Tech LLC, Hancock; Plan- Reaction LLC, Ann Arbor; AutoBike Inc., Detroit; ENT Biotech Solutions LLC, Detroit; Pindrop Inc., Boulder, Colo.; and CureLauncher Corp., Bloomfield Hills. Winning $10,000 as the winner of the People’s Choice Award, based on ballots filled out by audience members, was Ann Arbor-based TurtleCell LLC, which has designed a protective case for smartphones that has a retractable built-in set of In business, it’s perfectly acceptable to take a risk on a headphones. big idea. Thankfully, you don’t have to take the same risk Other finalists were Blaze Med- on your employee health coverage. ical Devices, Ann Arbor, which has developed a system for monitoring bcbsm.com/employers the quality of blood being stored GROUP HEALTH PLANS | DENTAL | VISION | for transfusion; First Sense Medical LLC, Pontiac, which plans to begin trials on a medical device that uses thermal imaging to improve breast-cancer detection; and Up- Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. land Nanotech LLC, Houghton, a maker of sensors to detect food- borne pathogens. — Tom Henderson DBpageAD_DBpageAD.qxd 10/21/2013 8:53 AM Page 1 20131118-NEWS--0008,0009-NAT-CCI-CD_-- 11/15/2013 5:49 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS November 18, 2013 OPINION MARY KRAMER Turn an ear to what OU case a workplace lesson There’s something might ponder. Issues in- child by her father, now deceased, to be said for going clude: How to handle the after Penn State’s Jerry Sandusky quietly. inevitable conflict-of- scandal broke open. Judge Rhodes says But that’s not the interest situations that She lobbied state lawmakers to path Beckie Francis arise when a top execu- adopt “Erin’s Law,” which allows has chosen. tive is married to anoth- local school boards to come up top filing frivolous lawsuits! Francis, fired as er executive, with even with age-appropriate ways to edu- That was U.S. Bankruptcy Judge Steven Rhodes’ coach of the Oakland higher rank? Would alle- cate young children, K-5, about S admonition to Frequent Litigator Robert Davis and his University women’s gations have surfaced how to recognize sexual abuse and attorney last week. basketball team on and been dealt with earli- report it. Couldn’t have put it better ourselves. June 12, had gone to er if she were not mar- There are no winners in this OU court to get an ried to the college prez? Rhodes had issued an automatic stay that protects the city case. unredacted copy of The university, which of Detroit from lawsuits during the proceedings in his court. One news account last week the university’s inter- must have handled this quoted an email from Francis to The Free Press reported that Rhodes told the attorney for nal report that led to her firing. case with kid gloves, said it fired OU’s general counsel that ex- Davis that his client risked sanctions for violating the auto- She won, kind of. A judge ruled Francis after finding evidence that plained: “I have high standards matic stay “if he continues to pursue lawsuits that are not al- last week that the university she was emotionally and mentally and expectations, not all student- should supply Francis with a more abusive to players and she had lowed to proceed.” athletes can perform to those.” complete version, but some infor- also not refrained, after warnings, The judge seemed irked when attorney Andrew Paterson Maybe OU has a standard and mation, including names of stu- from a pattern of proselytizing expectation for its coaches, too: said Davis might sue over other actions, including the appoint- dents interviewed about her, may players with her own religious be- Thou shalt not bully or abuse stu- ment of Police Chief James Craig. still be blacked out. liefs in a kind of “pray to play” dent athletes. Rhodes is expected to rule soon on whether the city is eligi- Yes, this is a juicy scandal, par- practice. ble for bankruptcy. If he accepts the labor union claims that ticularly because Francis is mar- It is ironic that Francis, a pub- the city is ineligible, a holy mess will transpire. ried to Gary Russi, who retired un- licly declared victim of sexual Mary Kramer is publisher of expectedly as OU’s longtime abuse, appears to have inflicted Crain's Detroit Business. Catch her Last week, media reports noted, too, that Rhodes may have president just two hours before the another form of abuse on young take on business news at 6:10 a.m. signaled his thinking when he wrote in an order suspending a dismissal of Francis was made women. Mondays on the Paul W. Smith show lawsuit challenging Kevyn Orr’s status as emergency manag- public. Francis told reporters in 2012 on WJR AM 760 and in her blog at er: “The public ... has an interest in the opportunity that this But it’s also a case study that that she was moved to go public www.crainsdetroit.com/kramer. bankruptcy case may provide for the city of Detroit, not only to employers — public and private — about being sexually abused as a E-mail her at [email protected]. adjust its debt and to restore the basic services that its residents need for their health and safety but also to regenerate its economic livelihood.” Well said. Sebelius takes tour to Detroit LETTERS The pools among politicos and analysts are likely laying odds and taking bets on when Kathleen Sebelius resigns. Sebelius, secretary of the U.S. Department of Health and County must do due diligence on jail Human Services, was in Detroit last Friday to serve as Cheer- leader-in-Chief on the rollout of the Affordable Care Act at a Editor: sonnel — Bob Ficano’s staff — who Crain’s Detroit Business I write in response to the Crain’s did the past horrific deal, doesn’t media event in Southwest Detroit. welcomes letters to the editor. editorial on Nov. 4 titled “County due diligence and common sense Maybe she made time to meet with the folks at Covisint Corp. All letters will be considered for mulls wrong questions on jail site” publication, provided they are require the County Commission to We reported Oct. 28 that the local IT company, which has a track questioning the Wayne County not only consider the new deal but record in building complicated exchanges linking multiple auto- signed and do not defame Commission’s attempt to learn de- individuals or organizations. also review what went wrong in motive supplier companies to customers, had offered to help. tails about the Wayne County jail Letters may be edited for length the past to avoid the same mis- Last week, federal officials said that just over 100,000 peo- fiasco before voting on any new and clarity. takes in the future? proposal. One simple question ple nationwide — and 1,300 in Michigan — had signed up for Write: Editor, Crain’s Detroit When the new jail proposal was comes to mind: What board of di- offered by the Ficano administra- health care coverage through the troubled website. That is far, Business, 1155 Gratiot Ave., rectors of any business, after in- Detroit, MI 48207-2997. tion in 2011, Ficano asked the far short of the millions projected to sign by year’s end. Esti- curring a $150 million loss on a Email: [email protected] Wayne County Commission to ap- mates of exchange-eligible Michiganders range from 127,000 to specific project, would then rush prove the deal on a sparse, one- 365,000 people. So a long way to go. to do a similar deal without doing page term sheet. I refused to vote Which means that if the Tea Party had wanted to make a due diligence? its stockholders expect the board for the deal because we had no de- If Ford Motor Co. (Penske, or upper management to review tails; unfortunately, only Com- philosophical point, they could have saved the ammo squan- what happened to avoid a similar Quicken Loans, you name the lo- missioner Tim Killeen joined me dered in the drama of their ill-fated government shutdown and cal company) lost $150 million on a fiasco? Where, as here, the new just waited for healthcare.gov to launch. plant development deal, wouldn’t deal is done by the exact same per- See Letters, Page 9

KEITH CRAIN: The First Amendment is a very good thing

Crain’s Detroit Business has a of the people running that would make her keep me guessing about who you where a little after Labor Day, we policy that forbids anonymously this publication. You rule apply only to ads are and where you are coming are going to be inundated with po- written letters to the editor. They know we are behind about candidates, not from. Please don’t use some silly litical advertising for next fall’s have to be signed. Sometimes we them. about issues. name that completely masks your election after the first of the year. choose excerpted pseudonymous So when I heard that But issue advertising group’s identity. We’ve got every member of the comments posted on our website to Michigan Secretary of is where the money is If you are a division of the Com- U.S. House running, an empty U.S. represent reaction to our online State Ruth Johnson will pouring in. These are the munist Party, I want to know. I Senate seat, a governor’s race and stories. require public disclo- ads that urge voters to think we all have a right to know. contests in the state Legislature. But on the whole, we shy away sure of who pays for po- “contact” a specific can- So don’t run a disclaimer that tells It’s going to be tough to hear an ad from letting anyone be anony- litical “issue” ads, I didate about an issue. me that these funds were from the that’s not political. mous. And that goes for any adver- wondered: Who could If you want to tell me Silly States Rights Commission. The Legislature should support tising we run as well. object? about a candidate or an The Michigan Legislature Johnson. Let’s make all political When you read my column, you Some lawmakers do. issue on television, ra- should support Johnson’s idea, not ads — for candidates and issues — know I wrote it. Our editorials on Johnson’s move was a change in dio or in print, go ahead. That’s derail it. be transparent so we know who’s our Opinion page, though un- rules she controls. But some law- your right. But don’t hide behind Like Christmas marketing, paying the advertising tab. That’s signed, are the collective opinion makers want to quickly pass a bill an anonymous group that will which now seems to start some- a bill the governor should sign. 20131118-NEWS--0009-NAT-CCI-CD_-- 11/15/2013 12:02 PM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 9 LETTERS CONTINUED TALK ON THE WEB

■ From Page 8 to flesh out the boundaries of the Re: Retired Detroit police chief, authorities do their jobs and see of the story. in requiring more due diligence, ACA. ex-state rep to co-chair Duggan team what transpires next year when I give all the credit in the world as 13 other commissioners voted Under this definition, pregnan- the park should be reopening? to Mr. Gilbert and his associates. A journey of a thousand miles for the flawed deal. cy can be considered a disease, Stop throwing stones. This park But concentrating the renewal in begins with one step. This seems At the time, Commissioner perhaps the only one for which was spectacular for years, and a small area is just a start. like a good first step. maybe one day it will come back Freedom Trinity Killeen and I were mocked for not people throw parties, also known Timothy Dinan and be good for the animals and voting for a deal that was a “no- as “showers.” We can’t give our moral sanc- the visitors. brainer.” As of today, the Ficano Re: Divided Michigan Senate votes tion to activities we believe to be Guest administration still has not pre- Re: A deer tale: Fondly remembered immoral. The result is that we no to expand nurses’ role sented us the new proposal, yet destination has hopes for a new life longer offer health insurance as a If I have a headache, I take an wanted us to vote to approve the Re: NPR: A billionaire helps his benefit. That wasn’t a result we Please, whatever you do, do not aspirin. If it persists, I realize it deal Nov. 7. This time around, wanted, but we can’t allow our let these people open Deer Forest. ‘battered hometown’ may be a more serious event; I shouldn’t the people of Wayne feelings for our employees to be Who knows what they will do to Get out of the downtown area want to see a doctor. Nurses are County expect more due diligence used as a bludgeon against our them next? and tell us all how “magical” and great, I’m not degrading them in by their “board of directors”? principles. Dori Maschke what a “playground” Detroit is, if any manner. However, I rarely go I applaud the ingenuity and en- Ron Ezell you’d be so kind, NPR. When you to a doctor, and when I do I know ergy of Dan Gilbert, Matt Cullen Ezell Supply No one is perfect here, I’m sure, cannot provide visuals to an aural I’m sick — I want to see a doctor. and the Quicken team as they as- Royal Oak so why don’t we just let the proper fantasy, you only provide a portion Amfer Ferg sist in rebuilding Detroit. Nonetheless, I recognize they did not build a hugely successful enterprise by being charitable. The Wayne County Commis- sion has a duty to review any new jail deal and consider not only price and cost but also a variety of other options. For instance, in 2011, when the jail fiasco first came to a vote, I was in favor of considering the Ryan facility. I am open to that option now. How- ever, I also understand the support of many police officers, judges and others for a central jail downtown. (And, by the way, Manhattan property values are not impacted by the presence of four jails on Manhattan.) It is disconcerting for Crain’s to urge the Wayne County Commis- sion to abandon due diligence, “hurry up” and do the deal. With- out looking at the numbers, Crain’s assumes it is a “no brainer.” Not very business-like, is it? Laura Cox Wayne County Commissioner, 9th District

ACA violates biz owners’ moral values Editor: My wife and I own a small business, which we started in 1992. We have offered a variety of benefits, including health insurance, Creating connections that overcome obstacles requires expertise, precision, and to our employees during that time. The fact that we are discipline. Just as an engineer designs a bridge across a body of water, LoVasco Catholic was never an issue until the Affordable Care Act was Consulting Group creates objective and customized insurance, employee benefits, passed. We were then put in the posi- and retirement planning solutions. Individuals, families, and business owners tion of choosing between our present us with financial challenges and goals. We respond with insightful guidance moral values and our concern for our employees. We believe abor- focused on sustainable solutions that address today’s needs, as well as the needs of tion and artificial contraception, including the morning-after pill, the next generation. are wrong and refuse to fund them. We don’t tell other people how Just look at our track record: For the last three generations, together with our to live their lives or spend their partner carriers, we have delivered hundreds of millions of dollars in benefits to money, so our “corner office” has never been used as a pulpit. That policyholders. Through a strict adherence to the fundamentals of quality, service, isn’t true of the federal government in general or the ACA in integrity, and a passion for our community, we look forward to the opportunity to particular. We explored ways with our in- help you achieve your financial goals. surance broker to reconcile our beliefs with our concern for our employees. We were told that un- )3 $ # der the provisions of the ACA, pregnancy is a condition for which preventive care such as 5$0 0 {! *&{ { contraception and sterilization would be covered under health in- A Member Firm of M Financial Group. surance policies. This was a guideline issued by U.S. Depart- Registered Representative with M Securities: Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. ment of Health and Human Ser- LoVasco Consulting Group is independently owned and operated. vices, which was given the power 20131118-NEWS--0010-NAT-CCI-CD_-- 11/15/2013 11:02 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS November 18, 2013 Snyder to address energy choice; backers, opponents keep up debate

BY JAY GREENE to do about the 10 percent when it vestments needed. Public Act 286. The coalition repre- “People shop for electricity CRAIN’S DETROIT BUSINESS expires in late 2015, said Quacken- Increasing the cap could also sents DTE, Consumers, several when they feel pinched,” Kuipers bush. “We will get rec- worsen ser- chambers of com- said. “They In December, Gov. Rick Snyder ommendations (for vice reliabil- merce, small business are not going is scheduled to give his annual en- legislation) from the For every 10 ity as in- groups and some The longer we to go through ergy speech in which he is expect- governor.” “ vestors shy trade unions. “ the effort to ed to address the highly charged The report percent you away, said “For every wait, the more change their energy choice issue. He has said issued this in- Steve 10 percent of supplier if his policy recommendations will teresting tid- allow to leave Transeth, people you al- business will they feel they be based on reliability, pricing and bit: If the policy direc- low to leave are getting a protected environment. 10,000 mostly on choice, that tor for Michi- on choice, leave fair prices.” Last year, Snyder ordered the business cus- gan Jobs & En- that increases Transeth Michigan Public Service Commission tomers in line increases costs ergy Coalition, costs about Michigan or agreed Michi- and Michigan Energy Office to con- were allowed which repre- $300 million gan’s electric- duct hearings and issue reports in to choose an ... for people sents the for people not come here ity prices are four areas: customer choice, re- alternative staying on the utility com- staying on the higher than newable energy, efficiency and electricity provider, panies and system,” said at all. they should other areas, including the reasons ” “choice participation system. supports the Transeth, a PSC com- be. “We have why Michigan has higher rates would be approxi- ” current reg- missioner from 2007 to Wayne Kuipers, Energy Choice Now to find ways than other states. mately 25 percent for ulatory 2010. to bring those Steve Transeth, Michigan Jobs & Besides potentially taking a po- Consumers and 21 scheme. “We have handled the existing rates in line,” he said. “The answer Energy Coalition sition on customer choice, Snyder percent for DTE.” On the oth- 10 percent choice and can work is not more choice.” is expected to issue recommenda- er hand, supporters of increasing with the 10 percent cap” in the fu- tions on whether to increase the or eliminating the cap in Michi- ture, he said. “We are saying, ‘If state’s renewable energy stan- Moving the cap? gan’s hybrid energy market — one you do anything, don’t go to full Above the average dards beyond the current 10 per- The 5-year-old cap on the num- in which 90 percent is regulated deregulation.’ ” Over the past several years, cent of power generation and ber of business customers that can and 10 percent is open for competi- Transeth said chaos would en- Michigan electricity rates for whether to continue or increase purchase lower-priced electricity tion — contend full deregulation sue and customers, in the long run, businesses have been about 5 per- the state’s successful gas and elec- from the state’s 24 licensed alter- would force utilities to reduce would suffer from a less depend- cent higher than national aver- tricity efficiency targets. native electric providers has pro- rates to keep customers and mar- able system and higher prices. ages. For residential customers, John Quackenbush, chairman voked ongoing debate. ket share. But Kuipers said business cus- average rates have been about 10 of the Public Service Commission, Opponents of eliminating or in- Moving to full competition in tomers now are paying for higher percent to 15 percent higher, en- said the commission’s draft report creasing the 10 percent customer the energy market would save rates than necessary. “The longer ergy experts said. last month on energy choice was choice cap, which include DTE Ener- businesses money and lead to we wait, the more business will However, because of climate and carefully worded to “fairly present gy Co. and Consumers Energy Co., higher job growth, said Wayne leave Michigan or not come here at efficiency factors, DTE officials the areas where there is a differ- say moving to a competitive or Kuipers, executive director of Ener- all,” he said. “We are losing 21,000 have said residential bills in ence of opinion.” A final report on deregulated market could reduce gy Choice Now, a coalition of con- jobs per year based on what we Southeast Michigan are about 30 energy choice is due Wednesday. capital investments needed to ex- sumers, businesses and alterna- ought to be paying for electricity.” percent lower than national aver- “We received many comments” pand generation capacity or delay tive energy suppliers. Kuipers said full competition ages. No average data was avail- on the choice report “and tried to improvements to aging distribu- Transeth said his coalition sup- doesn’t have to mean DTE and Con- able for commercial and industrial just lay the facts out” without of- tion infrastructure. The reason: ports a continuation of the 10 per- sumers lose customers or market bills, DTE said. fering recommendations on what fewer customers to support the in- cent cap that was part of 2008’s share. But Michigan’s average prices for electricity have increased over the past two years and are above the national average and the highest among four other Midwest states — Indiana, Illinois, Ohio and Wiscon- sin, according to U.S. Energy Informa- tion Administration. For example, between August 2012 and August 2013, the average retail price of electricity for Michigan’s commer- Congratulations, cial customers rose to 11.46 cents per kilowatt hour from 11.07 cents Michael Romaya! per kilowatt hour, said USEIA. Industrial customers rose to 8.23 cents per kilowatt hour from 7.98 cents per kilowatt hour, USEIA Honored by Michigan Lawyers said. Residential customers went from 14.54 cents per kilowatt hour Weekly as one of the 2013 to 14.98 cents per kilowatt hour, a 3 percent increase, the USEIA said. Transeth said he expects state Up & Coming Lawyers. legislators to start holding hearings next year to look at ways to reduce electricity costs. “We need to look at new rate structures and rate designs” that lower costs for businesses, he said. “The way we generate and use energy will look very different tomorrow than today.” Kuipers said Energy Choice Now is working with an unidenti- fied legislator to write a bill that will either increase the 10 percent cap or eliminate it entirely. Crain’s has been told the legislator is Rep. Mike Shirkey, R-Clarklake. Shirkey said he has not introduced the bill, but is planning to so he can begin to force the debate on ■ Represents lenders and borrowers whether Michigan should have a in a wide variety of commercial fully deregulated electric market or fi nancial transactions. go back to a more regulated frame- CELEBRATING ■ Blends legal knowledge and business work. The hybrid model Michigan 12 YEARS has is not working, he said. foresight when serving clients. 5 ■ In Your Corner. “Right now, Michigan ratepay- ers are enjoying the worst of both systems,” he said. Michael J. Romaya [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Jay Greene: (313) 446-0325, [email protected]. Twitter: @jaybgreene 20131118-NEWS--0011,0012-NAT-CCI-CD_-- 11/15/2013 11:04 AM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 11

PATENT TROLLS ON THE LOOSE Second-stage companies are targeted, Page 13

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor. She can be reached at (313) 446-0416 or at ahaimerl @crain.com

Amy Haimerl 5 steps to a strategic plan Adapt or die, right? But when you’re facing the brink — be it slowing sales, a crowded market or even a failing business — it’s daunting to think about creating new products or entering markets to build a future. “Many entrepreneurs know the potential of other markets, but they just can’t reach them because they don’t have the capital or other resources,” said Ken Dalto, local turnaround agent who owns Farmington Hills-based Kenneth J. Dalto & Associates. To help clients solve the conundrum, he asks them five questions that inform a strategic plan. Ⅲ Who is your market? “You have to do research on the market you are intending to penetrate. Is this a market that is there or does it have to be created? An iPhone market had to be created.” Ⅲ What is your product or service? ROBERT CHASE After he and two other investors bought Saline Lectronics Inc., which was heading for bankruptcy in 2002, Mario Sciberras set about turning the company “Know exactly what you are offering. Is away from the automotive industry and pointing it toward two more promising areas: medical devices and aerospace. it new product that people have to be educated about, or is it something everybody knows but you are delivering it in a different way?” Ⅲ How will you penetrate the market? “What are your tactics? This is essentially the marketing plan.” Ⅲ Why can you succeed? “What is Technical turnaround your competitive advantage? What is your differentiation? Is it pricing, look, technological capability? Is it that you’ve pinpointed the market in a Saline Lectronics picks up new specialized skills to fashion a comeback more detailed way? Ⅲ Who is your real competition? “Everybody has competition. Be BY GARY ANGLEBRANDT slowly built the business by picking up honest about it.” SPECIAL TO CRAIN’S DETROIT BUSINESS small jobs, laying the groundwork for big- Once Dalto has the answers and a It was upside down ger contracts in the future. plan, he drops the bad news. “You hese days, it’s not uncommon for “ Getting a track record was crucial be- have to be prepared to not make prospective customers to call Saline Lec- completely. cause winning customers takes more than money for a while,” he said. “Plainly T tronics Inc., having heard that the ” just certifications and quality standards. and bluntly. You have to be able to Saline-based contract manufacturer has Mario Sciberras, Saline Lectronics After all, if you’re the firm building such project a year or two that you may not the equipment and track record to do the products as black boxes on airplanes, make money at this thing because you job. Sciberras, now president. heart monitors and Lasik machines, you may not have the volume.” In the past year alone, the company’s He set about turning the company away want to be sure that the manufacturer of For Saline-based Saline Lectronics, revenue grew from $23 million to $35 mil- from the automotive industry — with its your electronic assemblies can deliver. it took three years before it got all the lion as clients flocked to the firm for its tough margin squeezes, hardball tactics necessary certifications and its new electronic assemblies. and economic cycles — and pointed it to- Valuable skill set markets paid off. But it wasn’t always this easy. ward two more promising industries: Dalto would advise Saline President In 2002, the company was nearing medical devices and aerospace. Saline Lectronics also invested in its Mario Sciberras not to get bankruptcy. It worked solely for the auto- Sciberras knew that would mean cut- inventory-management system — it han- complacent. A strong leader must motive industry and had just $2.5 million ting staff and spending boldly on new capi- dles about 30,000 very tiny parts on any always be looking to the future. in revenue. But Mario Sciberras, who tal equipment to archive the quality stan- given day — and about $10 million in man- “The CEO has to constantly be was consulting with the firm, and two of dards and certifications demanded by ufacturing equipment. The most signifi- thinking five or six years ahead,” Dalto the company’s existing investors saw op- those industries. cant investment was five automated said. “If nobody is looking toward the portunity. They bought Saline Lectronics It took Saline Lectronics three years surface-mount assembly lines, which are future, you are going to fail. Google, and put Sciberras in charge of the turn- and $100,000 in consulting fees and related used to solder parts — some of which are Apple, they are thinking 20 years around. expenses to finally secure the requisite ahead.” “It was upside down completely,” said certifications. During that time, Sciberras See Turnaround, Page 12 20131118-NEWS--0012-NAT-CCI-CD_-- 11/15/2013 11:57 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS November 18, 2013 Second Stage Turnaround: Lectronics Consistent contender ForeSee ■ From Page 11 barely visible to the unassisted jobs lead to real work. eye — onto printed circuit Saline does, with about nine boards. small-run jobs of a few hundred wins Spark’s FastTrack award The gambit started showing items under way each week. Af- signs of paying off in 2006, when ter all, it paid off big with Ac- Saline gained its first aerospace curi, which started out as a BY AMY HAIMERL done this in our third year.” Currently, ForeSee plans to customer, Parsippany, N.J.-based small-run client but became a CRAIN’S DETROIT BUSINESS In 2013, ForeSee Results is pro- hire another 20 employees, bring- Curtiss Wright Corp. From there, significant client as it grew and jected to have revenue of $52 mil- ing its staff roster to 350 across of- Saline spread into medical de- For seven years, ForeSee Results eventually was sold to Franklin lion, according to Crain’s esti- fices in Ann Arbor, New York vices, securing a has grown its revenue by more Lakes, N.J.- mates, up from about $25 million City, London, Sao Paulo, Atlanta, contract with Ann than 20 percent per year. This based Bec- in 2009. Vancouver and Los Angeles. Arbor-based Accuri year, the customer-experience an- (If all goes well ton, Dickinson Joining ForeSee Results are 10 “I have always been a big be- Cytometers Inc. alytics company saw better than 25 “ and Co. in other firms that had at least $100,000 liever that the most important The big percent growth. with a 2011. in revenue thing for a company is talent,” break into That’s made the Gibbons and posted 20 Freed said. “It’s also one of the big usage-based company the big win- product for hopes His- We’ve really had percent challenges. There are lots of chal- insurance ner in Ann Arbor toSonics has “ growth annu- lenges, funding and all that, but telematics Spark’s annu- HistoSonics) a similar suc- solid growth ally over the I’ve always been a believer that if — devices al FastTrack cess with its past three you have a great idea and can that plug we can talk awards. every year product, a years. Making build a team, you can find the into cars’ di- For the machine that the list are Ar- money.” agnostic about bigger past seven we’ve been in uses sound bormoon Soft- That meshes with Ann Arbor ports to years, the frequencies ware, Caelynx Spark’s mission to build up the re- track driver volumes three nonprofit business. We to reduce the gion around Ann Arbor as a great habits — really economic de- LLC, CEI Com- size of place filled with great talent. The changed things. years down the velopment or- could have posite prostates, public-private partnership between Novi-based Danlaw ganization Materials, road. and perhaps (won) in our local government, universities and Inc. wanted to bring has awarded Washte- DreamMaker ” someday can- businesses is tasked with bringing its manufacturing naw County-based Bath & Kitchen, Christine Gibbons, HistoSonics cer tumors. third year. Estrakon Inc., new firms to town and supporting back from China, companies posting at where it had some Saline ” LLamasoft Inc., those that already exist. least 20 percent annu- bad experiences, in- makes six Larry Freed, ForSee Results McCreadie “As early as July we were ahead al growth. In all seven cluding a “catastrophic issue” electronic boards that go into Group Inc., Med- of where we were for the entire years, ForeSee has that shut down production for six each machine. So far, HistoSonics Hub Inc., Online Tech and Oxford Cos. 2012 in terms of companies who been on the leader board. weeks, said Tom Rzeznik, presi- has needed only seven of the ma- are making new capital invest- If Spark had started measuring “Washtenaw County is about dent and COO. chines, which are still in an early before that, ForeSee would have 330,000 people, so to have business- ments, either expanding or coming Rzeznik was tired of the mid- clinical trial phase. shown strong growth almost from es that are having 20 percent here for the first time,” Krutko night Skype calls and travel ex- If all goes well, “we can talk its founding in 2001, said Larry growth rates, especially for seven said. “We’ve seen a pickup in eco- penses of dealing with a Chinese about bigger volumes three years Freed, president and CEO. straight years like ForeSee, is pret- nomic activity.” supplier, but proven companies down the road,” Gibbons said. “We’ve really had solid growth ty remarkable,” said Paul Krutko, Amy Haimerl: (313) 446-0416, that can assemble telematics Such is the world of medical de- every year we’ve been in busi- president and CEO of Ann Arbor [email protected]. Twitter: boards aren’t just around every vice manufacturing. ness,” Freed said. “We could have Spark. @haimerlad corner. It takes real specialty be- Russell Jahnke, director of clin- cause the pieces in the devices are ical quality and regulatory, said in fractions of a millimeter. having someone local where His- “It’s like shooting pieces of pep- toSonics’ engineers can walk the per at the board and getting them floor of the plant, and be willing to locate precisely on the board,” to take a chance on a new compa- Rzeznik said. ny, was imperative. Understanding the problem, “We drove over, spent three Vince Nystrom, vice president of hours with them, shook hands. strategic accounts at the Michigan That was a big deal,” he said. Economic Development Corp., intro- The fact that HistoSonics ap- duced the two firms. proached Saline is one of the hall- It didn’t take long for Danlaw to marks of a second stage company. pull the trigger once it saw that In this phase, it’s easier to reach Saline had the resources to do the new customers than in the start- work. In two months, the compa- up days, the reward for invest- nies went from a pilot run of 1,000 ments made early on. units to full production. It’s no longer about “just get- Saline now produces 9,000 units ting one-off customers and that’s a week for Danlaw and added a it,” said Gary Giallonardo, presi- COMPLEX ISSUES. second line to accommodate the dent of Industrial Visions Company work. The company has grown LLC, a consultancy in Troy. Now STRATEGIC SOLUTIONS. from 120 employees to 160 because it’s about building long-term rela- of the entrance into telematics. tionships, repeat business and the In today’s business environment, every day is critical to bottom It picked up other industries word getting out. line WroÄtability (cOievinN stronN business WerMormance throughout the growth curve, and Companies must continually reXuires close inteNration oM Änancial, strateNic and oWerational its industry mix now covers med- adapt and revise, he said — just as ical device, aerospace, oil and gas, WerMormance ))2 e_cels at combininN Änancial analysis Saline Lectronics did a decade and automated controls. ^itO oWerational imWrovement and our consultants create ago and continues to do through and imWlement imWactMul solutions durinN any staNe oM your its small-run manufacturing. comWany’s business cycle Business development Giallonardo shared the story of A newer customer is HistoSon- one parts manufacturer where :WeciÄcally, ^e Mocus on! ics Inc., a medical device startup the leaders didn’t understand that ࠮ 6Werational 7erMormance in Ann Arbor. they might have to actually leave ࠮ 4erNers and (cXuisitions :ervices Christine Gibbons, president the office and meet their cus- ࠮ -inancial 9estructurinN and 9evitaliaation and COO, said she needed a man- tomers if they wanted to turn ufacturer willing to do small pro- around the stagnant company. “The president said, ‘That isn’t BBK professionals stand ready to implement totype runs years before the product has any chance of seeing big how we do things here’,” he said. strategic solutions to help you achieve volumes. That firm was destined for optimized efficiency and profitability. That expectation is fairly stan- struggle and potential failure, dard in electronics contract while Saline Lectronics, with its manufacturing, but not all firms explosive growth, is poised to For more Information visit: www.e-bbk.com or call: (248) 603-6353 perform the services because reach $40 million in revenue for only a fraction of the small-run the current fiscal year. 20131118-NEWS--0013-NAT-CCI-CD_-- 11/15/2013 11:05 AM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 13 Second Stage

Second-stage businesses being Strong. And ﬂexible. pursued by menacing patent trolls

BY AMANDA LEWAN Brinks, Gilson & Lione. “Fighting their proposed SPECIAL TO CRAIN’S DETROIT BUSINESS them is very, very expensive.” terms.” The issue has become such a How Michi- Patent trolls have been a nui- trigger point for businesses that gan businesses sance to the large auto manufac- President Barack Obama talked will defend turers for years, but they are now about it during a Google Hangout themselves over going after second-stage business- When businesses face the changing the demands in February. He responded to a the next few of growth, purchasing goods, or making payroll, es. years will stem question on the issue by saying, they require a strong, yet flexible solution. A recent study from Boston Uni- “The folks that you’re talking from the Crestmark can help. versity’s School of Law found that about are a classic example; they Supreme Court patent trolls cost U.S. don’t actually Daichendt case and state Providing asset-based lending to small- and mid- companies $29 billion produce any- initiatives. sized businesses nationwide for over 17 years. in 2011 and attack thing them- “NPE litigation is a major issue small and midsize Second-stage “ selves. right now that will affect business Contact us today! 888.999.8050 firms, typi- companies They’re just in Michigan,” Cleland said. “It has cally with av- trying to es- the attention of our Congress, our Matt Dekutoski erage annual may not have sentially president, numerous attorneys gen- Anntreal Hemmingway-Smith revenue of leverage and eral offices around the country, and $10.8 million. the funds to hijack some- certainly the attention of the legal “Although body else’s departments of most, if not all, large large firms fight these idea and see if companies in our state.” accrued over they can ex- half of direct cases. (It) is tort some costs,” the re- money out of port said, very, very them.” “most of the defen- It’s also set dants were small or expensive. off a wave of medium-sized firms.” ” federal and These trolls, which Jim Cleland, state legisla- are officially known Brinks, Gilson & Lione tion as offi- as nonpracticing en- cials try to tities, or NPEs, buy solve the issue. Even the Supreme up and hold patents for products Court is weighing in on the issue and technologies they don’t intend by hearing a case this session — to manufacture. Instead, they Highmark Inc. v. Allcare Manage- “troll” for companies that might ment — that would make it easier be infringing on their patents and for judges to award attorneys’ fees demand steep licensing fees — or in patent troll litigation. face lawsuits. Another step is the America In- At issue is that so many patents vests Act, which went into effect are issued each year — many of earlier this year. That legislation them overlapping and vaguely allows businesses to, among other worded — that it’s easy for an NPE things, challenge a patent and de- to hold a patent for something as mand a review in the U.S. Patent & overreaching as the “interactive Trademark Office. While that is hap- Web.” pening, Cleland said, courts can “In my roles in the mobile tech- place any litigation on hold, saving nology industry, I work with com- defendants time and money in the panies of all sizes that have fallen long run. victim to patent trolls,” said Wixom-based Hosco Fittings LLC Elaina Farnsworth, CEO of Ply- successfully fought a patent troll mouth-based Mobile Comply LLC. “I that alleged the paint-fittings man- have seen four businesses crip- ufacturer was listing products in pled by the attacks of trolls, and its catalog that had expired two fighting back that have lost patents. investors and clients in the The company could have been process.” fined $500 for every product sold Even the Michigan Bankers Asso- with a mismarked or expired ciation recently had one member patent, said Tom Murray, presi- hit by trolls, with the NPE de- dent of Hosco Fittings. manding a licensing fee for use of “Patent lawsuits happen fre- ATM technologies. quently in the manufacturing busi- “This is very much a case of peo- ness,” Murray said. “We were sued ple making demands that may or for wrongful marking of the patents may not be legitimate,” said Dennis but were lucky to escape it.” Koons, president and CEO of the Michigan technology firms are MBA. “Good, honest people are pur- also at risk because software chasing these ATMs from reliable patents are particularly vulnera- vendors. A totally unrelated third ble. The Georgetown Law Journal party shows up claiming to have found in 2011 that software patents patents and demanding money.” account for just 12 percent of all That’s typically how it begins. A patents but comprise 74 percent of patent troll will send a letter alleg- all patent litigation. ing a company is infringing on its That prompted the Mobile Tech- patent and demanding settlement nology Association of Michigan to or a licensing fee. These NPEs bet partner with the Application Devel- on the fact that the costs of litiga- opers Alliance to host a Detroit tion will be too high and business- Patent Summit this past August. es will just settle. “The worst thing a business can “Second-stage companies may do is ignore a letter received from not have the funds to fight these a patent troll,” said Linda cases,” said Jim Cleland, an attor- Daichendt of MTAM. “The second ney in the Ann Arbor branch of worst thing they can do is agree to 20131118-NEWS--0014-NAT-CCI-CD_-- 11/15/2013 11:08 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS November 18, 2013 Survey: Optimistic suppliers are ready to make capital investments

BY DAVID SEDGWICK with demand. One vendor report- CRAIN NEWS SERVICE BRICKS AND MORTAR ed that his company was “busting at the seams,” while another said The Original Equipment Suppliers Automotive suppliers have been “our growth plans continue to be content to let their plants run Association asked its 450 members in September whether aggressive.” around the clock rather than build they would make capital Asked to identify their most new factories or assembly lines to investments in North America to pressing needs, 29 respondents meet high demand. Until now. meet demand in 2014 and 2015. said they were focusing on person- According to a September sur- Here’s what the 85 respondents nel issues, such as hiring more en- vey by the Troy-based Original said: gineers, retaining employees and Equipment Suppliers Association, 84 Very confident 48% attracting skilled trades. Fourteen percent of suppliers doing business Somewhat confident 36% suppliers said capacity constraints in North America said they are Slightly confident 11% were their most serious challenge, somewhat or very confident that None planned 5% and 11 identified product launches their companies will make capital as their top concern. investments in 2014 and 2015. Neil De Koker, CEO emeritus of An additional 11 percent said responses from its 450 members, OESA, said in September that they were “slightly confident” showed suppliers at their most op- North American automakers they would add capacity, and only timistic since January 2012. couldn’t add any more workers to 5 percent said they did not plan Sixty-four percent said they had existing assembly plants and now any capital expenditures. grown either somewhat or signifi- must build new ones. Survey respondents said they cantly more optimistic about their “Now it’s bricks and mortar,” were more willing to invest than prospects for the next 12 months. De Koker said. they were in July, when 66 percent In July, only 44 percent of respon- At the time he was referring to were planning for “significant” or dents were more optimistic. North American automakers. Now “somewhat increased” capital in- The survey also suggests that it’s true for suppliers, too. vestments. suppliers are struggling to keep up From Automotive News The upbeat survey comes at a time when North American light vehicle production is on course to hit about 16.1 million units this year, up from 15.5 million units in 2012, according to LMC Automotive, a consulting firm based in Troy. In 2014, North American vehicle production is expected to rise 3 PersonaPersonal EEnricnrichmentment & percent to 16.6 million units, LMC said. ProProfessionalessional DeveloDevelopmentment As demand rises, automakers are planning to expand capacity in years to come. According to a Mor- closeclose tot o home!h ome! gan Stanley study, carmakers in North America will add 864,000 units of capacity in 2014, plus 400,000 units in 2015. So it comes as no surprise that the OESA survey, which drew 85

CRAIN’S SEEKS NOMINEES FOR 20 IN THEIR 20S Do you know a 20-something who is someone to watch? Crain’s 20 in their 20s recognition program seeks young professionals who are making their marks in the region. st Candidates Registration Starts November 21 ! are not limited to any particular field or activity but include up-and-comers who are Professional Development Opportunities making waves as young professionals within a company, Small business entrepreneur exploration have shown success or originality as entrepreneurs, or have made local impacts in some other Gourmet culinary classes taught by Master Chefs demonstrable way. Besides the corporate world, Personal enrichment classes in the arts, music, candidates are considered from photography, ceramics, and more creative industries, nonprofits and social entrepreneurship arenas. Physical fitness programs for all ages, Winners will be profiled in the May 5 edition and honored at a future interests, and abilities awards event. Nominees must be 29 or younger Personalized fitness training before May 5. Nominations are due Feb. 4. And so much more... To fill out the form, visit crainsdetroit.com/nominate. www.schoolcraft.edu/cepd | 734.462.4448 Questions? Contact Amy Haimerl at [email protected] or (313) 446-0416. JOIN US ON FACEBOOK @ www.facebook.com/schoolcraftcepd 20131118-NEWS--0015-NAT-CCI-CD_-- 11/15/2013 11:09 AM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 15 Just three of the reasons to book our bus. Apartment complex redevelopment MIKE DONNA MITCH Driver Customer Service Mechanic You’ll love this Our girl Friday (... and If it ain’t broke, he’ll takes its direction from residents man in uniform. every other day, too!) check it anyway.y y

BY KIRK PINHO CRAIN’S DETROIT BUSINESS

It took a $30 million redevelopment to transform a largely vacant northwest Detroit apartment complex into one that is now fully occupied. Novi-based Ginosko Development Co. completed an 18-month redevel- A courtyard was opment of the low-income Renais- among the sance Village Apartments at Seven amenities created Mile and Evergreen roads in May, at Renaissance according to President Amin Irv- Village Apartments ing. after developers But Ginosko didn’t simply met with residents. COURTESY RENAISSANCE VILLAGE swoop in and redevelop the complex, formerly known as Ever- Shelby Township office of town’s Coronado Building at the cor- green Estates, the way it wanted. Muskegon-based Hooker Dejong Ar- ner of Second and Selden streets Instead, Ginosko sought input chitects & Engineers was the archi- into 24 apartment units. from the few residents who re- tecture firm on the project. Kent- Ⅲ The redevelopment of the 76- mained at Renaissance Village af- wood-based Rohde Construction Inc. unit New Center Pavilion near West ter years of disrepair, Irving said. did the construction. KMG Prestige Grand and the M-10 Freeway. The complex had a 30 percent oc- is the property management firm. Renaissance Village’s location cupancy rate when Ginosko pur- Renaissance Village brings Gi- has personal significance for Irv- chased it from the Michigan State nosko’s $116 million portfolio to 22 ing. Housing Development Authority in properties totaling more than 2,000 “My wife grew up in that area, t NEWNEW MODELMODEL COACHESCOOACCHES 2011 for $3.95 million after the pre- units, mostly in Michigan. and my father-in-law has a dance tFREE WIFI t24/7 DISPATCH vious owner defaulted on a MSH- Among the company’s signifi- studio right down the street,” he ECO-FRIENDLY DA loan. According to Chris La- t cant development projects are: said. “It’s an area where there still EXPERT BOOKING CONSULTANTS Grand, chief housing investment Ⅲ The redevelopment of the 71- are thriving businesses and peo- t officer for MSHDA, the previous unit New Center Commons north of ple. It is a community that, given tAFFORDABLE RATES owner was Ron Weaver Sr. West Grand Boulevard between everything else, is still stable.” Every six weeks, Ginosko would the M-10 Freeway and Woodward Kirk Pinho: (313) 446-0412, hold meetings with the residents Avenue. [email protected]. Twitter: to learn about their needs and Ⅲ The redevelopment of Mid- @kirkpinhoCDB 800-292-3831 indiantrails.com wants. “The residents that were there knew the property better than I did,” Irving said. The result? A reduction in the number of units from 305 to 185 through the Our relationship with demolition of buildings containing 60 units, and merging studio and one-bedroom units to create an our clients is always apartment complex featuring only two- and three-bedroom units ranging in price from $500 to $700 per month. During the redevelop- In Bloom ment, residents were moved into vacant apartments while theirs were renovated. At ShindelRock, we know that a great client In place of the demolished buildings, a center courtyard was con- relationship takes time to grow. That’s why structed with an amphitheater, fit- we offer the services and expertise, like ness equipment, a splash pad and other outdoor amenities. year-round tax planning, to help take a Another result was 100 percent Metro Detroit business like Wesley Berry occupancy. “It sounds like their reconfigu- Flowers from seedling to spectacular. ration strategy was a good idea and appropriate for the market- “In the 20 years we’ve been a client, place, which is seeing larger family units living together,” said Lar- Maria and her team have been as ry Goss, executive vice president of Bingham Farms-based Core Part- passionate about growing my ners Associates LLC, which is trying to develop two low-income hous- business as I have been. They’re ing complexes in Oakland County. always there when we need them.” “Generally, I think we still see a strong demand for affordable ~Wesley Berry housing in our market, and in particular, rental housing. This is in line with what the market is looking for and needs.” The complex was built in the 1940s. The new construction began in November 2011. Contact for Inquiries The project was financed with Maria Montie, CPA, MST, CVA, CFFA an MSHDA tax-exempt first mort- Managing Partner gage; U.S. Department of Housing and Wesley Berry, President Maria Montie, Managing Partner Urban Development Neighborhood Stabilization Program funds; city www.ShindelRock.com | 248.855.8833 of Detroit Home Investment Part- 28100 Cabot Drive Ste. 102 | Novi, MI 48377 nership Program funds; and state brownfield tax incentives. The 20131118-NEWS--0016,0017-NAT-CCI-CD_-- 11/15/2013 12:27 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS November 18, 2013 Asian focus helps Visteon steady financial ship; firm looks to invest

BY DUSTIN WALSH would sell its 50 percent stake in Those plans appear to be on hold CRAIN’S DETROIT BUSINESS interiors joint venture Yanfeng Vis- as the company continues to final- teon Automotive Trim Systems Co. to ize the sale of its Yanfeng stake. After more than a decade of China’s Huayu Automotive Systems David Sowerby, portfolio man- struggles for profitability and a Co. for $1.25 billion. ager in the Bloomfield Hills office flurry of management changes, Vis- Under Leuliette, the supplier of Loomis Sayles & Co. LP, said the teon Corp. has returned to steady fi- has made a strong push to Asia moves have “right-sized” the com- nancial performance as it weighs and is exceeding Wall Street’s ex- pany, and its its future. pectations, said Matthew Stover, strong presence Visteon, spun off from Ford Mo- equity analyst for Guggenheim Se- in the growing tor Co. in 2000, has tried to dispose curities LLC in Boston. Asian market of lower-margin units to focus on “When they came out of bank- has made it tar- faster-growing Asian operations ruptcy, I don’t know if people real- get-worthy on after exiting bankruptcy in 2010. ly understood the competitive po- the M&A mar- Industry experts say Visteon sition of the company or what the ket. management is making the right long-term strategy was going to “Long-term, moves and speculate another M&A be,” Stover said. “They’ve always Visteon has not move may be ripe within the next been a wealth been leveraged to China and Asia, Sowerby year. In a nod to the shift to Asia, but I think they’ve done a good job creator (for in- the company is even weighing a of telling that story now.” vestors), but it’s wrung out costs,” switch to being traded on the Hong This year, Visteon has contin- Sowerby said. “But there is oppor- Kong exchange in lieu of the New ued to pare down its management tunity, and this management team York Stock Exchange. team in Van Buren Township in is likely more motivated to sell It remains unclear whether Vis- favor of representation in Asia. than other management teams.” Leuliette has a history of driving teon is in the position to buy or Last week, the board terminated deals. He was hired on to lead will continue to divest businesses, Robert Pallash, senior vice presi- Rochester Hills-based supplier Dura according to experts. dent and president of its global Systems LLC in 2008 after it emerged But Jim Fisher, director of cor- customer group, effective at the from bankruptcy. He led its sale to porate communications at Vis- end of the year. private investment firm Patriarch teon, said the company plans to The board of directors approved grow its businesses, not sell them. Partners of New York in 2010. the terminations of Joy Greenway, However, in last week’s earn- “We have two good core business- president of its climate control es now; they both have been grow- ings call, Leuliette ruled out a sale business, and Keith Shull, senior of its electronics unit. ing rapidly,” Fisher said. “We’re vice president of human re- looking to invest in those business- “This is not a business for sale, sources, in April following the sale at all,” Leuliette said. “This is a es and grow them … we’re well-posi- of its climate control business to tioned to be a consolidator (not a business that we’re going to grow. Halla Climate. … I mean, it’s a real value driver.” seller) in those businesses.” Visteon did not replace Green- But Stover said in a Nov. 8 analyst Coming out of bankruptcy in way, and control of the business note that Leuliette is playing coy. 2010, Van Buren Township-based was turned over to Yong-Hwan The note said: “We believe that Visteon faced an uphill battle Park, CEO of the renamed Halla- management is endeavoring to fo- against investors under Don Steb- Visteon Climate Control. cus investor attention here be- bins, then chairman and CEO. It’s unclear whether Pallash will cause it ultimately gives the com- Boardroom turmoil led to Steb- be replaced, locally or in Asia. pany options. If the market simply bins’ resignation in August 2012, In September, Leuliette said Vis- believes the company is going to and board member Timothy Leuli- teon is considering leaving the be broken up, then full value for ette took over the reigns. NYSE to be traded in Hong Kong, the assets will be difficult to as- Leuliette’s first order of busi- Bloomberg reported. semble until the asset is sold. ness was to cut costs and consoli- “In Asia, where the bulk of our “Conversely, if a potential buyer date operations. The last six quar- business is and the bulk of the au- understands that the company has ters have shown improvement; the tomotive industry is, this is a limited strategic options, then supplier posted net income of $43 growth industry, but we’re not get- they will be less willing to offer a million, or 85 cents per share, on ting growth multiples,” Leuliette fair price for the asset.” revenue of $1.73 billion for the told Bloomberg. “We need to start Dustin Walsh: (313) 446-6042, quarter that ended Sept. 30 — the being valued on where we do busi- [email protected]. Twitter: sixth in a row with profits. The ness, not where we’re domiciled.” @dustinpwalsh same quarter a year earlier, Vis- teon reported net income of $15 million, or 28 cents per share, on revenue of $1.61 billion. The company’s focus on Asia re- mained strong, with the Asian market accounting for 45 percent of its sales in the quarter. Korean automaker Hyundai-Kia accounted for 34 percent of Visteon’s third- quarter revenue. North America accounted for roughly 20 percent of Visteon’s business in the third quarter. In January, Visteon announced Halla Climate Control Corp. bought Individuals, families, and business owners present its automotive climate units. Halla us with financial challenges and goals. Climate, the South Korea-based maker of HVAC systems, in which We respond with insightful guidance focused on Visteon holds a 70 percent stake, sustainable solutions that address today’s needs, purchased the climate businesses in countries including China, In- as well as the needs of the next generation. dia, France, Netherlands, Mexico and the United States, for about )3 $ # $387 million. Renamed Halla-Visteon Climate 55$0 0 {! *&{ {

Control Corp., the entity is led by a * #*#$ Korean management team and / / * 0 traded on the Korea Exchange. 0 * % 0 & / ! * #&+/0&- In August, Visteon announced it )3 $ 20131118-NEWS--0017-NAT-CCI-CD_-- 11/15/2013 11:33 AM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 17

EXPERIENCE THE SUITE LIFE CRAIN’S SEEKS NOMINATIONS FOR HEALTH CARE HEROES PLAN YOUR HOLIDAY PARTY TODAY Crain’s Detroit Business is seeking nominations for Health Care Heroes, a special report on health care professionals that will run in the Feb. 17 issue. The program will honor top-notch medical innovators and patient advocates. Our winners will be chosen in five categories: Ⅲ Corporate achievement in health care: Honors a company that has created an innovative health benefits plan or solved a problem in health care administration. Ⅲ Advancements in health care: Honors a company or individual responsible for a discovery or developing a new procedure, device or service that can save lives or improve quality of life. Ⅲ Physician: Honors a physician whose performance is considered exemplary. Ⅲ Allied health: Honors an individual from nursing or allied health fields who is deemed exemplary by patients and peers. Ⅲ Trustee: Honors leadership and distinguished service on a health IN PARTNERSHIP WITH care board. A panel of health care judges will choose the winners. Nominations, which are due Dec. 9, can be made at crainsdetroit.com/nominate. Statewide nominations accepted. Questions? Contact Bill Shea at [email protected] or (313) 446- SHAPING THE FUTURE 1626. OF MANUFACTURING.

DETROIT JUNE 9-12, 2014. NOMINEES SOUGHT FOR M&A AWARDS Calling all industry leaders, emerging forces, Involved in a merger or acquisition in 2013? You may be eligible for innovators and idea shapers. Join THE BIG M in Crain’s M&A Awards. Crain’s Detroit for a meeting of the minds, as the industry Detroit Business and the comes together to solve real challenges, innovate Association for Corporate and reimagine the world. Growth will honor We are manufacturing. And what we make will companies and shape the future. individuals in the following categories: Ⅲ Best Deal of the Year: Under $100 million and $100 million or more. The deal must have closed #bigMevent @bigMevent in 2013. The buyer or the business sold must be in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Ⅲ Dealmaker of the Year/buyer- seller. Ţ /FXMZSFOPWBUFEBOEMFWFMTVJUFT EXHIBIT. Ⅲ Dealmaker of the Year/adviser. M&A experts, lenders, CPAs, XJUIJODMVTJWFGPPEBOECFWFSBHF consultants and attorneys, among others, are eligible. Ţ MFWFMTVJUFTTUBSUJOHBU TFMFDU SPONSOR. Dealmaker candidates also must HBNFTFWFOUT be in Wayne, Oakland, Macomb Washtenaw or Livingston counties. Winners will be profiled in the Ţ 1BSUZTVJUFTBWBJMBCMFGPSHSPVQTVQUPQFPQMF ATTEND. March 24 issue of Crain’s Detroit Business and will be honored at an awards event in May. GO TO BIGMEVENT.COM OR For questions concerning the nomination process or the CALL 800.733.3976 TO LEARN HOW! nomination form, contact Amanda Duque at (313) 446-6083 or CALL 248-377-8477 OR VISIT [email protected]. FOR INFORMATION,PISTONS.COM CALL 248-377-8477 FOR INFORMATION The deadline for nominations is ©2013 SME_8734 Jan. 13. 20131118-NEWS--0018-NAT-CCI-CD_-- 11/15/2013 11:14 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS November 18, 2013 State Senate acts fast to halt issue-ads disclosure bill It didn’t take long after Secretary reporters on a conference call. Co- political candidate, but do not ex- the amendment simply codifies larly, she of State Ruth Johnson announced inciding with her rollout, a Senate pressly advocate for the election of the way things have been done and said, Snyder last week that she was proposing a committee hastily tacked an a particular candidate. Under cur- said Snyder told him he supported has not talked Capitol new rule to require disclosure of amendment onto Senate Bill 661 rent law, those who pay for such the amendment, which would with any law- Briefings who is paying for election-season that sought to continue to exempt ads do not have to be disclosed. block the disclosure Johnson was makers about issue ads for Senate Republicans to disclosure of donors that pay for Johnson’s rule would have al- trying to allow. Meekhof’s effectively kill the idea. these issue ads. Not long after, the lowed for that transparency, and Asked which story was right, amendment, It took all of about two hours. full Senate approved the amended she said Gov. Rick Snyder told her Snyder press secretary Sara Wurfel and therefore Shortly before 9 a.m. Thursday, bill by a narrow 20-18 vote. he supported the change. said Snyder did not indicate to did not tell Johnson announced her idea pub- Issue ads are used to encourage Senate Majority Floor Leader Johnson one way or the other his anyone he licly and then spoke about it with or discourage voters to contact a Arlan Meekhof, R-West Olive, said position on her proposed rule. Simi- supported it. A case of wishful lis- SMALL OFFICE • HOME OFFICE tening? Chris Gautz Quick trip for Court of Claims bill Outstanding Selection For Small Opponents of Senate Bill 652, Professional Office or Home Office which moves the Court of Claims from Ingham County to the Court  Free Design Assistance  of Appeals, had many questions Customization - Sizes & Finishes about its effects. But they largely  Professional Installation went unanswered because the bill  Contemporary or Traditional sailed through the Legislature at warp speed. In fact, Snyder said there was already the need for a new piece of legislation to ensure those suing the state would not be denied the right to a jury trial. That bill, HB 5616, was introduced on Thursday and makes clear in amending the law Snyder just signed that there was no intent to waive the right to trial by jury. The need to fix it so quickly gave Democrats one more reason to attack the bill and that way it was SOUTHFIELD 248-353-9880 • TROY 248-649-2070 NOVI 248-344-0880 • LAKESIDE 586-843-2000 pushed through. 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Litigation challenging the ex- ∫ ∫ 32991 Hamilton Court Farmington Hills, MI 48334 levelonebank.com tent of the jurisdiction of the new Commercial Banking ∫ Retail Banking ∫ Mortgage Services Court of Claims and attempts to define its scope is expected. Required Disclosure: 1 Two balance tiers apply; balances $1,500 & above, interest rate 0.299, APY 0.30; balances $0-1,499.99, interest rate 0.099, APY 0.10. Rates are accurate as of 09/26/2013 and are subject to change at any time. APY is the Annual Percentage Yield. Fees may reduce earnings on the account. Minimum opening deposit is $50.00. $10.00 monthly service fee. No monthly service fee with $5,000 average monthly balance, or $25,000 average monthly deposit Chris Gautz: (517) 403-4403, relationship balance, or Level One business account ownership. 2 Earn $0.10 cash back on each transaction. Must choose credit at time of purchase. 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November 18, 2013 CRAIN’S DETROIT BUSINESS Page 19 Baird Capital hires veteran Ann Arbor

PLATINUM STANDARD entrepreneur for FRACTIONALCTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PPROGRAMS.ROGR SERVING ALL SOUTHEASTERN MICHIGAN. Michigan deals

BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

Baird Capital, a Chicago investment firm with more than $2.8 billion under management in its private equity and venture capital funds, has hired veteran Ann Arbor entrepreneur David Gregorka to source deals throughout Michigan. Gregorka was a co-founder in 1998, along with now-Gov. Rick Snyder and Uni- versity of Michi- gan professor CORPORATEEAGLE.COM Victor Strecher, of Ann Arbor- based HealthMe- dia Inc., which was sold to John- Gregorka son & Johnson in 2008. Gregorka had various titles at the company, including CFO and Success vice president of operations. THINK Gregorka stayed on with John- Think Madonnana son & Johnson after the sale, leaving in October 2012 and then working on projects for the tech MADONNA KEYS TO YOUR SUCCESS: transfer office at UM. ▪ 100+ undergrad and 35+ graduate programs Gregorka said he was intro- ▪ Expert professors duced to Baird through Chris ▪ Personal attention in small classes Rizik, CEO of Ann Arbor-based Re- ▪ Co-ops and internships naissance Venture Capital Fund. ▪ Convenient class times Gregorka and Baird formalized a ▪ Hybrid and online classes relationship in August. Michael Liang, a partner at Whether you’re preparing for a career, trying to Baird, said Gregorka — who has an move up in your career, or changing your career, office in the downtown Ann Arbor Think Madonna! headquarters of another local VC firm, EDF Ventures — has found a handful of potential portfolio companies for the company to invest in. VISIT CAMPUS SOON! APPLY ONLINE FREE! “We brought David on board to Undergrad: madonna.edu/admissions ▪ 734-432-53399 evaluate deals in our core areas of [email protected] interest, and Michigan is a major Graduate School: madonna.edu/grad ▪ 734-432-5667 focus for us because of the success [email protected] we’ve had there,” Liang said. Your success is our aim, at the M with the flame!ame!

BANKRUPTCIES The following businesses filed for bankruptcy protection in U.S. Bank- ruptcy Court in Detroit Nov. 8-14. Un- der Chapter 11, a company files for reorganization. Chapter 7 involves total The market is liquidation. Ankur Investments Inc., 17600 Dix changing. Road, Melvindale, voluntary Chapter 11. Assets and liabilities not available. Are you ready? Damini Enterprises Inc., 2829 Oakwood Blvd., Melvindale, voluntary Chapter 11. Assets and liabilities not available. ŶŐĂŐĞƚǁĞůů͛ƐƌĞƐŝĚĞŶƟĂů International Watch Group Inc., P.O. ĚĞǀĞůŽƉŵĞŶƚƚĞĂŵĂŶĚ Box 252527, West Bloomfield Town- ŐĂŝŶŐƌŽƵŶĚŝŶ^ŽƵƚŚĞĂƐƚ ship, voluntary Chapter 7. Assets: DŝĐŚŝŐĂŶ͘tĞŚĞůƉ $44,326.10; liabilities: $134,433.81. ĚĞǀĞůŽƉĞƌƐĂŶĚďƵŝůĚĞƌƐ NK Diamond Investment Inc., 25911 ŐĞƚĂŚĞĂĚŽĨƚŚĞĐƵƌǀĞŝŶ Michigan Ave., Inkster, voluntary ƉůĂŶŶŝŶŐ͕ĚĞƐŝŐŶ͕ƉĞƌŵŝƫŶŐ Chapter 11. Assets and liabilities not ĂŶĚĚĞǀĞůŽƉŵĞŶƚĂĐƟǀŝƟĞƐ available. ƚŚƌŽƵŐŚŽƵƌůŽĐĂůŬŶŽǁůĞĚŐĞ Rainbow Network Inc., 11097 E. Nine ĂŶĚĞǆƚĞŶƐŝǀĞĞǆƉĞƌŝĞŶĐĞ͘ Mile Road, Warren, voluntary Chap- ter 7. Assets: $35,000; liabilities: Ä¦®ÄÙ®Ä¦Ö½ÄÄ®Ä¦ÝçÙòù®Ä¦Äò®ÙÊÄÃÄã½ÊÄÝãÙçã®ÊÄÃÄ¦ÃÄã $118,355.93. Shree Harihar Corp., 1805 John A. Pa- palas Drive, Lincoln Park, voluntary Chapter 11. Assets and liabilities not available. 248.447.2000 Sonda Enterprises Inc., 17355 Raupp www.atwell-group.com Road, Melvindale, voluntary Chapter 11. Assets and liabilities not available. DBpageAD_DBpageAD.qxd 11/12/2013 11:04 AM Page 1

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November 18, 2013 CRAIN’S DETROIT BUSINESS Page 21

CRAIN'S LIST: LARGEST BUSINESS INSURANCE AGENCIES Ranked by 2012 revenue

Premium Company Revenue Revenue volume Detroit-area Total U.S. Revenue source Compensation Address ($000,000) ($000,000) ($000,000) employees employees Rank Phone; website Top executive(s) 2012 2011 2012 2013 2013 Retail Wholesale Services Other Commissions Fees Meadowbrook Inc. Robert Cubbin $147.0 $134.9 $1,500.0 286 1,044 37 0 61 2 23 77 1. 26255 American Drive, Southfield 48034-6112 president and CEO (248) 358-1100; www.meadowbrook.com Aon Corp. Carol Williams, resident managing 120.0 113.1 NA 171 34,000 85 0 15 0 40 60 3000 Town Center, Suite 3000, Southfield 48075 director, CEO, Aon Risk Solutions (248) 936-5200; www.aon.com Paul Barbick, Michigan market 2. leader, Aon Hewitt LeAnne McCorry, executive chairman and managing principal, Aon Risk Solutions Brown & Brown David Lucas, president, Fenton 70.0 70.0 NA 349 7,000 70 30 0 0 96 5 3. 35735 Mound Road, Sterling Heights 48310 Angela Garner, president, Saginaw (586) 977-6300; www.bbdetroit.com Paul Glantz, president, Troy Todd Piersol, president Marsh Dan Deighton 48.0 B NA NA 135 9,013 NA NA NA NA NA NA 4. 600 Renaissance Center, Suite 2100, Detroit 48243 managing director and Detroit office (313) 393-6800; www.marsh.com head Wells Fargo Insurance Services Kevin Youngs 24.5 B 24.9 NA NA NA NA NA NA NA NA NA 5. 4000 Town Center, Suite 800, Southfield 48075 managing director, Southfield (248) 353-5800; wfis.wellsfargo.com LSG Insurance Partners Jay Schreibman 22.7 18.8 831.5 76 90 NA NA NA NA 97 3 6. 2369 Franklin Road, Bloomfield Hills 48302 president and CEO (248) 332-3100; www.lsgip.com Valenti, Trobec, Chandler Inc. Alan Chandler 21.8 20.1 NA 125 129 98 0 2 0 98 2 7. 1175 W. Long Lake Road, Troy 48098 president and CEO (248) 828-3377; www.vtcins.com Hylant Group Mark Miller 20.6 15.9 250.7 119 617 99 0 0 1 86 14 8. 24 Frank Lloyd Wright Drive, Suite J4100, Ann Arbor 48105 regional vice president, Michigan (734) 741-0044; www.hylant.com Kapnick Insurance Group Jim Kapnick 17.2 15.5 NA 55 130 100 0 0 0 90 10 9. 26100 American Drive, Suite 300, Southfield 48034 president (248) 352-4455; www.kapnick.com McGraw Wentworth Thomas McGraw 15.4 13.7 850.0 72 72 NA NA NA NA 94 6 10. 3331 W. Big Beaver Road, Suite 200, Troy 48084 president (248) 822-8000; www.mcgrawwentworth.com Michigan Financial Cos. Inc. Nick Valenti 15.3 14.1 13.3 91 127 100 0 0 0 NA NA 11. 28411 Northwestern Highway, Suite 1300, Southfield 48034 president and CEO (248) 663-4700; www.michiganfinancial.com Schechter Wealth Strategies/Schechter Benefits Marc Schechter 8.8 8.4 NA 41 41 NA NA NA NA NA NA Services senior managing director 12. 251 Pierce, Birmingham 48009 (248) 731-9500; www.schechterwealth.com www.schechterbenefits.com Laurie Sall & Associates LLC Laurie Sall 8.5 6.3 8.5 3 3 0 0 0 0 100 0 13. 5435 Corporate Drive, Suite 205, Troy 48098-2624 president (248) 641-2655; www.lauriesall.com Ralph C. Wilson Agency Inc. Stefano Vannelli 7.0 6.5 NA 44 44 100 0 0 0 95 5 14. 26026 Telegraph Road, Suite 100, Southfield 48086 president and CEO (800) 638-1174; www.rcwa.net Daly Merritt Insurance Martin Daly 6.8 6.2 78.6 40 40 98 0 0 2 99 1 15. 100 Maple, Wyandotte 48192 president and CEO (734) 283-1400; www.dalymerritt.com Oswald Cos. Donald Engle 5.7 4.4 NA 26 325 NA NA NA NA NA NA 16. 39572 Woodward Ave., No. 201, Bloomfield Hills 48304 senior vice president, branch (248) 433-1466; oswaldcompanies.com manager The Huttenlocher Group David Huttenlocher 5.5 5.4 NA 43 43 100 NA NA NA 97 3 17. 1007 W. Huron, Waterford Township 48328 CEO (248) 681-2100; www.hgway.com Korotkin Insurance Group Kenneth Korotkin 5.2 4.8 NA NA 46 NA NA NA NA NA NA 18. 26877 Northwestern Highway, Suite 400, Southfield 48033 president (248) 352-9124; www.korotkin.com J.S. Clark Agency Inc. Joel Clark 3.7 3.4 NA 24 24 NA NA NA NA NA NA 19. 25900 W. 11 Mile Road, Suite 210, Southfield 48034 president and CEO (248) 355-9600; www.jsclarkagency.com Allied Insurance Managers Inc. Ron Kosmal 3.5 3.1 30.0 32 32 100 0 0 0 100 0 20. 1055 S. Blvd. E., Suite 110, Rochester Hills 48307 chairman and CEO (248) 853-0930; www.alliedinsmgr.com Great Lakes Employee Benefit Services Inc. Joseph Coan and James Scoggin 3.5 3.0 106.1 13 13 100 0 0 0 100 0 20. 50 W. Big Beaver Road, Suite 460, Troy 48084 principals/co-owners (248) 641-0000; www.glebs.com Johnston Lewis Associates Inc. Todd Lewis, president 3.2 2.8 29.0 22 22 99 0 1 0 99 1 575 E. Maple Road, Troy 48083 Jay Sawmiller, executive vice 22. (248) 528-2400; www.johnstonlewis.com president Mike Cardella, vice president Dan Wilhelm, vice president Midwest Underwriters Insurance Agency Inc. Christopher Rodriguez 3.1 2.9 NA 5 5 0 0 0 0 100 0 23. 19640 Harper Ave., Suite A, Grosse Pointe Woods 48236 owner, CEO (313) 884-8600; midwestunderwriters.com Capital Insurance Group Robert Moglia Jr., president 3.0 3.0 27.6 22 22 NA NA NA NA NA NA 24. 1263 W. Square Lake Road, Bloomfield Hills 48302 Edmund George, vice president (248) 333-2500; www.capitalinsuranceagent.com Tom Moglia, vice president Donn Johnson, vice president Goodman Venegas M. Paul Venegas 2.9 2.8 NA 15 15 25 0 25 50 99 1 25. 2800 Livernois, Suite 170, Troy 48083 president (248) 740-9090; www.goodmanvenegas.com Regina Goodman co-owner

This list is an approximate compilation of the largest such agencies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Alliant Insurance Services, No. 12 on last year's list, which Crain's believes would make the list, declined to provide figures, and a reliable estimate could not be made. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. B Crain's estimate. LIST RESEARCHED BY BRIANNA REILLY 20131118-NEWS--0022-NAT-CCI-CD_-- 11/15/2013 11:15 AM Page 1

Page 22 CRAIN’S DETROIT BUSINESS November 18, 2013 BUSINESS DIARY , the traveller s choice. TimeWalker Voyager UTC Special Edition. CONTRACTS MOVES Wherever you travel, the second time zone synchronized with Universal Time Coordinated (UTC) Wright & Filippis, Rochester Hills, an- Dalton & Tomich PLC, a law firm, from nounced new provider agreements 41000 Woodward Ave., Suite 345, ensures that you never lose track of your international schedule. Automatic movement, second time zone starting in 2014 with AAA Michigan, Bloomfield Hills, to Chrysler House, with 24-hour display and day/night indication. 42 mm stainless-steel case with satin-finished bezel. Dearborn; CoventryCares of Michigan 719 Griswold St., Suite 270, Detroit. Inc., Detroit; Managed Care Ancillary Telephone: (313) 859-6000. Website: Crafted in the Montblanc Manufacture in Le Locle, Switzerland. Services, Quincy, Mass.; McLaren www.daltontomich.com. Health Plan, Flint; Southeast Michi- gan Accountable Care Inc., Dearborn; NEW PRODUCTS Total Health Care, Detroit; and Upper Peninsula Home, Health, Hospice and TI Automotive Inc., Auburn Hills, Private Duty, Marquette. The con- launched a brushless fuel delivery tracts include orthotics and prosthet- module to improve efficiency and reli- ics services. Wright & Filippis also ability with integrated electronics in has renewed its long-standing con- the flange. The module will be intro- tract with Northeast Michigan Com- duced on five new Peugeot and Cit- munity Services Agency Inc., Alpena. roen vehicles in Europe, with future Website: www.firsttoserve.com. releases planned elsewhere. Website: www.tiautomotive.com. Vari-Form, Troy, is providing tubular hydroform components for the 2014 ForeSee Results Inc., Ann Arbor, a Jeep Cherokee. Vari-Form manufac- data analytics firm, introduced its tures upper cross members that are ForeSee cx360 platform to help execu- integrated into a front-end module for tives improve business results. Web- the Cherokee by Bayloff Stamped site: www.foreseeresults.com. Products, Belleville. Website: www.vari-form.com. NEW SERVICES Arotech Corp., Ann Arbor, a provider Feinberg Consulting Inc., West Bloom- of defense and security products for field Township, expanded its services the military, law enforcement and in case management to include homeland security markets, an- Bridgeway to Recovery, a drug and al- nounced that its Training and Simula- cohol intervention program, and in tion Division has received $10.4 mil- geriatric care management to include lion in new contract awards and Concierge Home Care. The new divi- modifications to previously awarded sion, Bridgeway Home Care, combines contracts. The division consists of the medical knowledge and planning FAAC Inc., Ann Arbor; IES Interactive of a geriatric care manager with the Training Inc., Ann Arbor; and Real- services of a professional caregiver. time Technologies Inc., Royal Oak. Websites: www.bridgewayhomecare. Website: www.arotech.com. com, www.bridgewaytorecovery.com, www.feinbergconsulting.com. EXPANSIONS Buddy’s Pizza, Farmington, opened a STARTUPS restaurant at 45841 Hayes Road, Shel- Wanderlust Boutique, featuring fash- by Township. Telephone: (586) 566- ions, shoes and accessories, styling 1233. Website: www.buddyspizza.com. consultations and home closet 37643 six mile road - livonia - (734) 464-355 Blue Cross Blue Shield of Michigan, makeovers, 404 S. Main St., Rochester. Detroit, and Blue Care Network, Telephone: (248) 652-3300. Website: Southfield, added Alcona, Antrim, www.facebook.com/wanderlustbouti Arenac, Branch, Cheboygan, Hills- que1021. dale, Iosco, Lake, Manistee, Mason, Our Greentopia, a gift shop specializ- Montmorency, Ogemaw, Osceola, Os- ing in environmentally friendly prod- coda, Otsego, Presque Isle and Wex- ucts, 3165 W. 12 Mile Road, Berkley. ford counties to its BCN Advantage Telephone: (248) 268-2123. Website: HMO-POS Michigan service area. www.facebook.com/ourgreentopia. Also, Blue Care Network added My Choice Wellness, an HMO plan with St. Joseph Mercy Health System, Ann DIARY GUIDELINES Arbor, for Medicare-eligible residents in Kent, Oceana and Muskegon coun- Email news releases for Business ties. Website: www.bcbsm.com. Diary to cdbdepartments@ crain.com or mail to Departments, MERGERS Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- Waxenberg and Klein PLLC, South- 2997. Use any Business Diary item field, an accounting firm, merged with as a model for your release, and Roth & Co. PC, Novi, to form Waxen- look for the appropriate category. berg, Wayntraub & Roth PLLC, South- Without complete information, your field. The new firm has moved from 25900 W. 11 Mile Road, Suite 240,to item will not run. Photos are 26711 Northwestern Highway, Suite welcome, but we cannot guarantee 200, Southfield. Telephone: (248) 352- they will be used. 3630. Website: www.wwrcpa.com.

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November 18, 2013 CRAIN’S DETROIT BUSINESS Page 23

CALENDAR TUESDAY in the global marketplace. Cobo Cen- Your Bank’s HEALTH CARE REFORM ter, Detroit. $45 DEC members, $55 NOV. 19 guests of members, $75 nonmembers. 11:30 a.m.-noon speakers’ reception SEO for CEOs: How to Use the Internet AND SMALL BUSINESS open only to board, life and gold to Grow Your Business. 9 a.m.-noon. members. Contact: (313) 963-8547; Not Lending? Join Advantage Oakland at Oakland Advantage Oakland. For CEOs of County Business Center, Waterford email: [email protected]; website: stage-two companies (more than two Township, 9 a.m.-noon Nov. 21 for www.econclub.org. employees, a website and more than a discussion on health care reform $100,000 in revenue) to learn to under- legislation and how it will affect stand and apply marketing tactics Renewing the Opportunity for Prosper- with focus on business-to-business business owners. ity: Economic Freedom Zones. 11:30 and business-to-consumer tactics and Topics will include tax penalties, a.m.-1:30 p.m. Dec. 6. Detroit Econom- strategies. Oakland County Business small-business credits, small- ic Club. With Sen. Rand Paul, R-Ky., Center, Waterford Township. Free. business wellness program grants who will unveil his legislative propos- Contact: Karen Lear, (248) 858-0783. and full-time employee status al to remove Detroit and other areas email: [email protected]; compliance. from poverty and government oversight. MotorCity Casino Hotel, De- website: www.advantageoakland Keynote speaker is David Drap, .com/startabusiness. troit. $45 DEC members, $55 guests of insurance, wellness and health members, $75 nonmembers. 11:30 a.m.- care reform expert, and CEO of noon speakers’ reception open only Good People Will Drive Detroit For- HD4 Revenue Inc. to board, life and gold members. ward. 11:30 a.m.-1:30 p.m. Detroit Eco- Attendance is free. For more Contact: (313) 963-8547; email: nomic Club. With Gary Burnison, CEO, information, call Karen Lear at [email protected]; website: Korn/Ferry International, highlighting (248) 858-0783, email her at www.econclub.org. traits and characteristics of great leaders and how to keep employees en- [email protected], or gaged, motivated and relevant. Troy visit www.advantageoakland.com/ Marriott, Troy. $45 DEC members, $55 startabusiness. guests of members, $75 nonmembers. CALENDAR GUIDELINES 11:30 a.m.-noon speakers’ reception Livonia. Free. Contact: Doron If you want to ensure listing online ours are. open only to board, life and gold York, (248) 981-6688; email: dyork@ and be considered for print Call for a free consultation. members. Contact: (313) 963-8547; paarco.com; website: www.paarco.com. publication in Crain’s Detroit Loan amounts: $1,000,000.00 and above. email: [email protected]; website: Business, please use the online www.econclub.org. Small Business: Unlocked — Meet the calendar listings section of s Investment Real Estate s Equipment Purchasers. 8 a.m.-noon. Detroit Re- www.crainsdetroit.com. Here’s s Owner Occupied Real Estate s Turnaround Consulting Hiring Trends & Real World ROI. 5:30- gional Chamber, Talmer Bank and how to submit your events: s Lines of Credit s Loan Modiﬁcations 8:30 p.m. Detroit Chapter, Institute of Trust. Network with purchasers and From the Crain’s home page, click Management Accountants. With learn the basics of purchasing and “Events” in the red bar near the s Accounts Receivable s Bank Workouts Bradley Bilen, managing director, procurement protocol, and how to cut top of the page. Then, click Mergis Group, and Jeff Harrison, through red tape and get your busi- director of lead generation and mar- ness on public sector RFP lists. Walsh “Submit Your Events” from the keting, Logi-Serve LLC. Southfield College, Troy. $30 Chamber members, drop-down menu that will appear, Marriott, Southfield. $30 members, $70 nonmembers. Contact: Marianne and you’ll be taken to our online $35 nonmembers, $25 retirees, $15 Alabastro, (313) 596-0479; email: mal submission form. Fill out the form students. Contact: Chuck Phillips, [email protected]; website: as instructed, and then click the (313) 262-2223; email: imade www.detroitchamber.com. “Submit event” button at the [email protected]; website: bottom of the page. That’s all 800.509.3552 www.imadetroit.org. there is to it. Government Accounting: Back to Ba- www.eclipsecapitalgroup.com sics and Forward to the Future. More Calendar items can be found 2207 Orchard Lake Road, Sylvan Lake, MI 48320 Transforming Oakland County to a on the Web at 2-3 p.m. Wayne State University De- “Since 1997” Knowledge-Based Economy. 7-8 p.m. partment of Accounting. 2013-14 www.crainsdetroit.com. The Community House. With L. George R. Husband Distinguished Brooks Patterson, Oakland County ex- Lecture. With Michael Granof, Ernst & ecutive, on transforming Oakland Young Distinguished Centennial Pro- County to a knowledge-based econo- fessor in Accounting, McCombs my that will create sustainable, high- School of Business, University of Texas paying jobs. The Community House, at Austin; member of the Governmen- Birmingham. Free; RSVP requested. tal Accounting Standards Board; Fed- Contact: Terry Poduska, (248) 554-6596; eral Accounting Standard Advisory email: [email protected]; website: Board; and Educators Advisory Panel www.tchserves.org. of the U.S. Comptroller General. Mc- Gregor Memorial Conference Center, Wayne State University. Free. Web- WEDNESDAY site: www.wayne.edu. NOV. 20 Third Thursdays Networking. 4:30-6:30 The Seven Deadly Sins of HR. 8-10 a.m. p.m. Southfield Area Chamber of Better Business Bureau-Eastern Commerce. Tango’s at the Westin, ENTER TO WIN A Michigan. With Steve Williams, presi- Southfield. Free. Contact: Tanya dent, EctoHR Inc., discussing the Markos-Vanno, (248) 557-6661; HOLIDAY OFFICE PARTY biggest and most common HR mis- email: [email protected]; takes small businesses make that can www.southfieldchamber.com. impact long-term success. For business owners and managers. Better Business Bureau, Southfield. Free. Construction Industry Night. 6-11 p.m. Contact: Doris Hendricks, (248) 799- National Association of Women In 0305; email: dhendricks@eastern Construction. Dinner, awards presen- michiganbbb.org; website: www.east tation. MGM Grand Detroit. $95. Con- ernmichigan.bbb.org. tact: Davida Gerrity, (586) 264-2060; GIVEAWAY email: [email protected]; ANDIAMO RESTAURANTS & CRAIN’S DETROIT BUSINESS WOULD LIKE website: www.nawicdetroit.org. Entrepreneur Boot Camp Celebration. 5:30-8 p.m. Ann Arbor Spark. 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Page 24 CRAIN’S DETROIT BUSINESS November 18, 2013 PEOPLE FINANCE IN THE SPOTLIGHT The Detroit Zoological Society, Royal Oak, has named Jane Alessandrini its first chief development officer. Alessandrini had been director of Walters Mukerjee major and Dagher Wayntraub planned gifts at Cameron Walters to interactive mar- St. Joseph keting coordinator, Ziebart Interna- Walid Dagher to partner, business tax Mercy Health tional Corp., Troy, from social media services practice, Deloitte Tax LLP, System, Ann marketing specialist, Hunch Free Inc., Detroit, from senior manager. Alessandrini Mount Clemens. Arbor. Susan Wayntraub to partner, Waxen- Shakti Mukerjee to director of product berg, Waynetraub & Roth PLLC, South- Alessandrini, 51, earned a development, Resinate Materials field, from senior staff accountant. bachelor’s degree in family- Group Inc., Plymouth, from senior re- community services from Michigan Scott Babin to executive vice presi- search scientist, BYK Additives & In- State University. dent of operations, Michigan Mutual struments (formerly Southern Clay Products), Louisville, Ky. Inc., Port Huron, from chief marketing officer, E&A Credit Union, Port NONPROFITS Beth Hill to interim general counsel Huron. and interim chief compliance officer, Donna Givens FordDirect, Dearborn, from assistant Williams to presi- general counsel. LAW dent, Youth Devel- Jamal Edwards to opment Commis- partner, intellec- sion, Detroit, PEOPLE GUIDELINES tual property liti- from executive di- gation practice rector, Bright- Announcements are limited to group, Honigman moor Community management positions. Email them Miller Schwartz Center, Detroit. to [email protected] and Cohn LLP, De- Tonya Fleming to or mail notices to Departments, troit, from manag- Crain’s Detroit Business, 1155 er and CEO, The program director, New Center Com- Gratiot Ave., Detroit, MI 48207- Ivey Group, De- Williams 2997. Releases must contain the troit. munity Services, Detroit, from director of operations, person’s name, new title, company, city in which the person will work, Edwards MARKETING The Children’s Center, Detroit. former title, former company (if not Andy Prakken to executive vice presi- SERVICES promoted from within) and former dent, chief integration officer/busi- city in which the person worked. John Law to vice president, enterprise ness intelligence, Duffey Petrosky & Photos are welcome, but we cannot Co., Farmington Hills, from executive product strategy, ProQuest LLC, Ann vice president, chief media officer, Arbor, from vice president, discovery guarantee they will be used. Team Detroit/WPP, Dearborn. services, Serials Solutions at ProQuest. 20131118-NEWS--0025-NAT-CCI-CD_-- 11/15/2013 5:53 PM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 25 Cancer: Resident’s plan fills gap in care Sale: Towers ■ From Page 3 ■ From Page 1 month fellowship at the 695-bed University of the University of Michigan Hospital, Ann Ar- fibula, needs to be removed and then re- cant, according to Bloomberg. The South- Florida Health Jacksonville to learn cutting- bor; Henry Ford Hospital, Detroit; Beaumont shaped into the jawbone. field Class A office market had a 26 percent edge microsurgery techniques. He finished Hospital, Royal Oak; Detroit Medical Center’s After a seven- to 10-day hospital stay, some vacancy rate during the third quarter, ac- that program this year and returned to Harper University Hospital; and Karmanos Can- patients are able to resume talking after cording to data provided by the Southfield Michigan. cer Institute, Detroit. speech and language therapy, Ramirez said. office of Newmark Grubb Knight Frank. On July 1, the Center for Head and Neck, “I started this about six years ago, and “Once patients make it to the seventh day Matt Farrell, executive principal/partner Maxillofacial and Reconstructive Surgery we have multiple surgeons involved,” said (without infection or tissue rejection), the of Bingham Farms-based Core Partners Asso- program opened for business under Tamer Ghanem, M.D., director of Henry chance of losing the flap (living tissue) ciates LLC, said the Southfield Town Center Ramirez’s direction. During the first four Ford’s head and neck cancer and microvas- drops to 1 percent,” said Ramirez, noting offers good amenities such as the Westin Ho- months, 12 patients — ages 15 to 70 — have cular surgery program. that all free-flap surgeries have been suc- tel — which would not be included — and undergone successful “free-flap” micro- Ghanem said the program has grown from cessful and complication-free. restaurants on site. It also has a campus-like surgery. about 35 cases per year to up to 80 this year. While oral cavity cancer cases have re- setting. “We saw a real need and gap in care for “These procedures are typically the re- mained steady the past decade at about 22,000 “Those are all big, big pluses,” Farrell head and neck cancer patients” at St. John sult of massive trauma to head and neck per year, Ramirez said there has been an in- said. Macomb, said Ramirez, 35. “Nobody was from a car accident, assault or dog bite,” crease in younger patients affected by human But there are some drawbacks. trained to do it here. We were losing lots of Ghanem said. “More commonly now (it is papillomavirus-associated head and neck “The downside, potentially, is that the patients and significant revenue to other performed) after a big head and neck cancer cancer. Major risk factors include smoking, newer culture, the younger technology- hospitals.” when a portion of the jaw or tongue needs to smokeless tobacco and alcohol use. based firms are looking for that ware- Hamilton projects 56 surgeries during the be removed.” Only 5 percent of cancer cases are located house/potentially downtown-like setting program’s first year, 70 the second year for Some 30 years ago, many head and neck in the head and neck region, but 30 percent of that gives them walkability,” Farrell said. $1.5 million net revenue and 84 the third year cancers were inoperable because there was those are in the oral cavity, which includes According to CoStar, the largest tenants for $1.8 million net revenue. The hospital’s 10 no technique to replace tumorous bone and the bone, teeth, tongue, muscle, nerves and in are GlobalHue Inc., with 109,000 square feet; operating rooms, which range from 450 to 600 tissue. Radiation oncology treatment, the areas of the mouth, according to the Amer- Fifth Third Bank, 106,000 square feet; and Alix- square feet, have just enough capacity to ac- which is still used today in some cases, was ican Head and Neck Society. Partners LLP, 63,000 square feet. commodate the program, he said. not always successful. St. John Macomb uses a multi-discipline Denver-based HFF Inc. is marketing the “He (Ramirez) has everything he needs for Recently, however, improvements in mi- tumor board that reviews each oncology complex and has hired Southfield-based NAI the program except for a new (naso-pharyn- crosurgery have allowed surgeons to remove case to decide on the best treatment, which Farbman to represent Blackstone locally in go) scope (that the hospital purchased) to ex- diseased bone and tissue and replace them could include either surgery or radiation the sale. The Southfield office of CBRE Inc. is amine patients in his office,” Hamilton said. with the patient’s own bone, tissue and skin. treatment, Salama said. The board includes responsible for leasing the property. “We also are adding an additional staff per- “We take soft tissue (and sometimes head and neck surgeons, pathologists, radi- Kristen Murphy, associate director of mar- son to be dedicated” to the program. bone) from the back, arm, abdomen, leg, ologists, radiation oncologists and medical keting for HFF, would only confirm that the Salama said the microsurgery program and transfer to head and neck, or elsewhere oncologists, he said. complex is for sale. has filled in a gap in services. where needed,” said Ramirez, noting that “There was a fear of the unknown in the NAI Farbman, through a spokeswoman, “We have a head and neck cancer pro- the procedure includes moving arteries and beginning” among some competing physi- declined comment. gram at the hospital, but we lagged in mi- veins that are sutured to seamlessly recon- cians when the microvascular surgery pro- Among large office complexes in metro crovascular reconstruction,” Salama said. nect the “flap vessels” together. gram was launched, Ramirez said. “We Detroit, the Southfield Town Center, built in “Now we have a microvascular person to do Ramirez said the operations can take be- have the full support (of all the specialties 1975, is second in square footage only to the these procedures. This completes that part tween four to 12 hours, depending on the now). They see this as something we are of- 5.5 million-square-foot Renaissance Center in of the puzzle.” cancer. For example, a surgery in which a fering to patients.” total size. Several other area hospitals perform tumor exists on the jawbone could take up Jay Greene: (313) 446-0325, Kirk Pinho: (313) 446-0412, head and neck microsurgery. They include to 12 hours because bone from the leg, or [email protected]. Twitter: @jaybgreene [email protected]. Twitter: @kirkpinhoCDB

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Page 26 CRAIN’S DETROIT BUSINESS November 18, 2013 As Detroit spends millions on consulting firms to turn a some officials have a déjà vu moment and Is Orr driving new road wit

BY KIRK PINHO lighted a road map to what it was back in 2011 we recognized that CRAIN’S DETROIT BUSINESS going to take to turn around gov- was a major issue,” Bing said in an $60 MILLION IN CONTRACTS FOR TURNAROUND ernment, and that included a lot of interview with Crain’s. Orr’s If Judge Steven Rhodes ap- The city of Detroit has contracted with more than a dozen consulting firms things that are going to be imple- proposal projects the city’s un- to turn around its finances and government. The contracts are valued at proves the city of Detroit’s entry mented now,” said Chris Brown, funded pension and other post- more than $60.6 million and the city has spent about $19.1 million of that into bankruptcy proceedings in who helped develop the plan dur- employment benefit liabilities at as of Sept. 30. federal court, a reorganization ing his time as COO from 2009-12. $9.2 billion, which is about half of The contracts are with: plan is due to him early next year. In an email to Crain’s, Orr’s the city’s estimated $18 billion- But elements of that plan may spokesman, Bill Nowling, said city plus in debt and other liabilities. Conway MacKenzie Inc., turnaround firm, Birmingham, $19.3 million. ultimately ring familiar to many; consultants did not use the 2011 Deficit elimination plans are re- Jones Day, law firm, Washington, D.C., $18 million. some of the major ideas are the plan as a template for the credi- quired by state law whenever a lo- Ernst & Young LLP, accounting firm, Detroit, $8 million. same sort of things addressed in tors’ proposal, which was released cal government fund ends a fiscal outgoing Detroit Mayor Dave in June. He also said many of the year with a deficit. Miller Buckfire & Co. LLC, turnaround firm, New York, $8 million. Bing’s deficit elimination plan ideas in it have been around for Bing’s plan called for increases Plante Moran PLLC, accounting firm, Southfield, $3.97 million. first submitted to the Michigan De- years — but the city never had a to employees’ retirement age, re- Pepper Hamilton LLP, law firm, Southfield, $850,000. partment of Treasury in 2011. That plan to execute them. sulting in $84 million to $460 mil- Miller, Canfield, Paddock and Stone PLC, law firm, Detroit, $750,000. includes measures like outsourc- Orr, on the other hand, comes to lion in savings. In addition, it Manhattan Institute for Policy Research, think tank, New York; and ing and restructuring city retire- Detroit from Cleveland-based law called for eliminating compound- Bratton Group LLC, public safety consulting firm, New York, $621,000 ment and benefits plans. firm Jones Day armed with broad ed cost-of-living increases, saving combined. Ask Emergency Manager Kevyn powers to renegotiate union con- the city up to $1.4 billion, and re- Milliman Inc., actuary and consulting, Seattle, $332,000. Orr’s office what the differences tracts and institute reforms under moving all grant-funded and non- Christie’s Appraisals Inc., auction house, New York, $250,000. are and the answer can be summed Public Act 436 of 2012, the state’s core employees from the pension Duffey Petrosky and Co., marketing, Farmington Hills, $186,000. up as “the devil is in the details.” emergency manager law. system, yielding $140 million in Abernathy MacGregor Group, public relations, New York, $120,000. In other words, exe- As Orr at- savings. The plan called for in- Stevenson Keppelman Associates, law firm, Ann Arbor, $100,000. cuting a turnaround tempts to rene- creasing the vesting period from We highlighted RR Donnelley, integrated communications technology, Detroit, $90,000. plan, and all the de- gotiate con- eight years to an unspecified Kurtzman Carson Consultants LLC, turnaround firm, Los Angeles, no tailed work that comes tracts and length of employment, resulting in a road map to what contract amount stated. with it, is a whole lot works with a le- up to $211 million in savings. Source: Bill Nowling, spokesman for Emergency Manager Kevyn Orr different “ it was going to gion of consul- The plan, which also called for than tants to work on increased health care contribu- having take to turn outsourcing tions from union members, from Authority, created by a state law af- The reports also say shared ser- the big and reform 10 percent to 20 percent, was pre- ter the Bing report was released. vices agreements should be ex- ideas. around plans, many of sented before the enactment of The authority is tasked with mak- plored. In the specific ac- Public Act 152 of 2011, which re- ing about $160 million in improve- The 2011 plan also called for the fact, the government, and tion steps and quires public employees to con- ments to the city’s failing street- city to explore joint operations state’s the daunting fi- tribute 20 percent to their health light system, in which an with Wayne County for the Depart- Finan- that included a lot nancials are care costs. estimated half of its 88,000 street- ment of Public Works, the Buildings, cial Re- ideas long fa- “These were tough decisions to lights are not working. Safety Engineering & Environmental view of things that are miliar to con- make and people didn’t want to “The lighting issue, we dealt Department and the Department of Team deemed Bing’s stituents and make them,” Brown said. with that before (Orr) got here,” Transportation. 2011 report as inade- going to be observers. The Proposal for Creditors says Bing said. Orr’s proposal says consultants quate to address the Nowling “significant cuts” in pensions and In addition, Bing’s plan called are evaluating DDOT for a possi- city’s enormous budget implemented now. said that health care benefits for outsourcing ble merger with the Suburban Mobil- problems and said its while the for current city em- solid waste col- ity Authority for Regional Transporta- revenue assumptions The idea is the Chris Brown, 2011 plan may ployees and retirees lection ser- tion, which is also an option laid were considered ques- have called for will be needed. vices, saving out in the 2011 plan. tionable. former Detroit COO easy part. slashing specif- Since the pro- the city $14 mil- Orr’s proposal is not specific Yet Orr’s initial Pro- ”ic budgets, the posal’s release, lion per year. about which other city departments posal to Creditors returned to city’s restructuring consultants Orr has an- “ Implementing In July, Orr could be merged, but says “consoli- some of the same areas of focus for have been working to implement nounced a plan them is hell. released dation and elimination of redun- the city to cut costs and right its fi- the restructuring proposals rather for increased de- a request dant functions will be implanted nancial ship. than just proposing them. ductibles for city Erik Gordon, for pro- where service improvements or cost A decision from Rhodes is ex- “The idea is the easy part. Im- employees and a posals for resi- savings can be achieved.” pected any day on the city’s eligi- plementing them is hell,” said reduction in the UM professor dential solid The 2011 plan says the city bility to proceed in its Chapter 9 Erik Gordon, a professor from number of waste and recy- would research joint programs for bankruptcy case after he heard practice in the University of Michi- health care ” cling pickup. information technology services court testimony and reviewed le- gan School of Law and a clinical as- plans available from 20 Last week, the with Wayne County and recre- gal briefs.The $18 billion bank- sistant professor in UM’s Ross to one. It would save $12 city announced Sterling Heights- ation centers with Detroit Public ruptcy is the biggest filed by a U.S. School of Business. “I have the million annually. based Rizzo Environmental Services Schools. municipality, and the court case idea to go to the moon. OK, good Inc. and Ponte Vedra, Fla.-based has already featured unprecedent- idea. The implementation is the Outsourcing Advanced Disposal Inc. will take ed testimony from Orr, Bing, Gov. hard stuff.” over solid waste hauling from the The sales block? Rick Snyder and many others. Still, the groundwork for reform It wasn’t only through proposed Department of Public Works in The 2011 plan proposed no asset had already been laid in past re- large-scale — and politically un- March under a five-year deal to be sales or leases other than of public ports, Bing and Brown said. popular — pension and health care finalized in 30 days. parking infrastructure, such as The groundwork reforms where the plans presented Both reports also say Detroit Police meters and garages, and the The similarities between Bing’s similar ideas. Both lay out paths Department operations need im- Detroit-Windsor Tunnel rights. Simi- 2001 turnaround plan and the ele- Cost-cutting for things like outsourcing public provement, particularly on efficien- lar proposals are being evaluated ments Orr included in his Propos- “The day of reckoning is at our lighting, which was proposed in a cy and response times. Current re- by Orr’s office. al to Creditors, and is expected to doorstep.” 2011 McKinsey & Co. report that was sponse times are often 58 minutes or Orr’s proposal includes possible highlight in a restructuring plan, That’s from the third page of the folded into Bing’s plan. more; Orr’s proposal to creditors sales and leases of other assets, are causing some former city offi- deficit elimination plan, which McKinsey said that without calls for reducing DPD response and the emergency manager has cials to criticize what they consid- Bing presented to the Detroit City more than $200 million in cash or times to the national average of 11 said in past interviews with er duplicative work. They say Council and sent to the Treasury private-sector management, the minutes. The Bing and Orr plans Crain’s that those are under con- much of the money spent on Orr’s Department two years before Orr Detroit Public Lighting Department also call for more officers patrolling sideration. plan, and with more than a dozen took the city into Chapter 9 munic- would continue to deteriorate. the streets rather than in adminis- Belle Isle is among those, as are, consulting firms, was a waste. ipal bankruptcy court in July. Orr’s plan says the city will out- trative duties and the evaluation or potentially, the Detroit Institute of “If you take a look at the 2011 “When we think about the un- source its lighting operations and consolidation of some specialized Arts collection and the Detroit Water deficit elimination plan, we high- funded pension liabilities, way maintenance to the Public Lighting department units. and Sewerage Department. 20131118-NEWS--0026,0027-NAT-CCI-CD_-- 11/15/2013 5:50 PM Page 2

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 27 rn around the city’s finances, Duggan priorities: and wonder … Transition, talent Crain’s reporter Kirk Pinho ruptcy? talked last week with Mike Dug- The judge is going to do (what gan, Detroit mayor-elect, about he wants). I expect we’ll get a de- his first priorities and how he’ll cision by Thanksgiving. be spending the balance of the year before he takes office Jan. 1. What other key leaders in the with old map? community do you expect to meet What are your first few key orders with in the next couple of weeks? The city and state signed a 30- dress its financial problems, offi- CFO from 2008 to 2009 and Benton of business after you take the oath I met with a large number of year lease agreement in October cials “changed the goalposts on us.” Harbor’s former emergency man- of office? the legislators. I had lunch with for the Department of Natural “Any time we proposed some- ager — reviewed the 2011 plan. He Right now, we are totally con- five of the nine City Council Resources to manage and maintain thing that would improve efficien- said he thinks the city had a sound sumed with trying to work out an members, and I’ll get through all Belle Isle, a move expected to save cy or reduce costs, we never got proposal in place, regardless of agreement with the governor nine in the next week. Then basi- the city $4 million in operating the kind of support we needed state officials’ criticisms. (Rick Snyder) and (Emergency cally, it’s just all day long, sitting costs. The city would still be from Lansing to move our propos- “I haven’t seen anything new” in Manager) Kevyn Orr. So the first down with community and busi- responsible for providing about al forward,” he said. “We needed Orr’s proposal that hadn’t been pro- thing we’ve got to establish is ness people. $2 million worth of water and sew- people and we needed money.” posed before, he said. “If the consul- whether I have any authority, er service to the 985-acre island. Money is something Orr can tants are using that (plan) at all, and if so, what it is. That’s really What will you look for in other The DIA is attempting to stave bring, however, as he tries to re- then why is the cost so high? Are where we are spending our time. members to round out your transi- off the possible sale of parts of its structure the city’s debts inside they reinventing the wheel? It does- tion team? collection to appease city credi- and outside of bankruptcy court. n’t make a lot of sense to me for What is the time frame for that? We’re going to have 12 different tors. It has asked One result of re- those types of costs to be incurred.” Hopefully within the next few committees. You’re going to see a the state to consid- structuring those weeks. It’ll have to be some time good mix of business and commu- er giving money to Kevyn Orr is not debts — and one im- before Jan. 1. nity people. You’re going to see ex- Detroit portant difference Consultants weigh in perienced individuals and — per- a politician; he’s between the two Documents Nowling provided to What can we expect during the younger, rising stars. I think you’ll haps plans, according to Crain’s show that as of Sept. 30, the transition regarding business com- see a good mix of the community, $20 mil- “ putting Buss — is Orr’s pro- city has spent $19.1 million on con- munity outreach and support? just like my campaign was. lion to posal to spend $1.25 tracts with companies restructur- We’re working on that right $25 mil- everything on the billion over 10 years ing Detroit’s debt and government, now. We’ve got a number of very What’s your impression of the new lion on improving pub- and representing it in Rhodes’ talented people, and I’m proud of City Council members so far? over 20 table, and that’s lic safety services, bankruptcy court. The total value the people who volunteered, and We’ve had great conversa- years reducing blight and of the contracts is $60.6 million, we will put them together in a tions. I think there is a sense that — in what you should improving the but it’s not known how much it group and try to develop a (city the fighting between the mayor ex- city’s antiquated cost to compile the Proposal to reorganizational) plan. and the council in the past cer- change for the DIA do. information tech- Creditors. tainly contributed to the situa- providing expand- nology structure. “It was part of the ongoing re- Do you have a short list for any tion we are in, and I think there ed services across Patrick O’Keefe, The 2011 plan was structuring work up to that point,” Cabinet member positions? is a shared feeling that we are go- Michigan. O’Keefe LLC filed with the state Nowling said, adding that the 2011 At the moment, I don’t have ing to work together to make Orr has proposed in midyear. The plan was not a template for Orr’s any authority to hire a Cabinet, sure that never happens again. ” so no. This is a two-step process. a new regional authority, the Met- March 2012 Financial Review proposal. ropolitan Area Water and Sewer Au- Team report, which found that the Solutions that can feasibly be Without authority from the What are your thoughts on the De- thority, to operate the DWSD city was in “severe financial implemented cost money, O’Keefe emergency manager (to hire a troit Future City plan? Are there any through a concession agreement stress,” concluded that some of the said. He conceded, however, that Cabinet), there is no point in me specific aspects that you disagree or via a lease of water department plan’s proposals were question- there is a “learning curve” for talking to people about jobs. with? assets. Discussions between city able. Yet Orr, who was appointed “people who have not been up to (Named last week to Duggan’s I like it. It’s a big book, but I consultants and officials from by the state in March, is taking speed” on the city’s budget woes. transition team were Ike McKin- like the plan and I like the direc- Oakland, Wayne and Macomb steps similar to what Bing pro- But for Bing and Brown, the non, former city police chief; Lisa tion. I like the idea of the neigh- counties continue. posed. city’s former COO, that doesn’t Howze, former state representa- borhoods participating in writ- ing their own visions for the Asset sales and leases such as For example, in dampen the tive; and Bryan Barnhill, cam- future and having it fit into an those, however, are politically dif- August, Orr an- If the consultants frustration. paign manager, who will work as overall plan for the city. I think ficult for elected officials. nounced that a valuing “For the Pub- talent intake director to help it’s great, and a great approach. “The stuff like the DIA and the of the are using that lic Lighting De- Duggan recruit. Campaign art collection, and even the region- city’s De- partment, a lot spokesman John Roach is commu- Do you envision implementing any alization of the water and sewer, troit-Wind- “ (plan) at all, then of that diagnos- nications director.) of the reform proposals talked about politically those are grave things sor Tunnel tic work had before Kevyn Orr arrived? to be talking about,” said Patrick rights was why is the cost been done. For You’ve met with Orr, Snyder and outgoing mayor Dave Bing. What I’m going to make a judgment O’Keefe, CEO of Bloomfield Hills- being con- DDOT, if you’re were some of your key takeaways based on where we are. The city’s based turnaround consulting firm ducted, so high? Are they going to out- from those meetings? financial position is likely to be O’Keefe LLC, which does not have a along with source it, it We’re just trying to solve dramatically different when contract with the city during its a valuing reinventing the doesn’t take millions of dollars things constructively. We are bankruptcy ends, and I’ll manage restructuring. of other (to research talking and trying to find a solu- it appropriately based on the sit- “Kevyn Orr is not a politician; city assets. wheel? it); that work tion. uation at the time. he’s putting everything on the table The Financial Review has already Kirk Pinho: (313) 446-0412, kpin- and that’s what you should do.” Team report doubted Joe Harris, been done. Do you think the city will be de- [email protected]. Twitter: But are the sales or leases worth that the city could get former city auditor general Same for munic- clared eligible for Chapter 9 bank- @kirkpinhoCDB it? $10 million for the sale ipal parking. Bettie Buss, a recently retired ” of those rights. For DPW, we senior research associate for Citi- Orr’s report says the city doesn’t had started on that path but hadn’t zens Research Council of Michigan, collect between $30 million and $45 gotten very far,” Brown said. said it’s a judgment call. million each year in income taxes Bing, who chose not to run for a She also questions whether the from residents who work outside second full term, said he has “ma- DWSD’s regionalization — intend- the city and improved tax collec- jor frustration” that restructuring ed in part to save money through tion is needed. Yet the Financial proposals he and other city offi- lower bond interest rates on Review Team questioned whether cials developed prior to the state’s $1.2 billion in needed capital im- the improved income tax collec- appointment of an emergency man- provements because “Detroit” tion discussed in Bing’s report ager are not recognized as being wouldn’t be in the name of the new could bring in the $50 million that similar to ones Orr is working on. authority — would achieve the in- city officials estimated. “No doubt in my mind about it,” tended financial rewards. The Financial Review Team re- he said. “I had all of my internal “Do you think investors are that port also doubts the city could leadership committed to the stupid?” Buss asked. achieve significant expenditure changes. We were making reductions through union conces- progress, but nobody was satisfied Mixed messages? sions, which the report says “had with the rate of progress.” KENNY CORBIN not historically materialized.” Kirk Pinho: (313) 446-0412, kpin- Mayor-elect Mike Duggan announced the co-chairs of his transition team on Bing said that whenever the city Still, Joe Harris — the city’s au- [email protected]. Twitter: @kirkpin- Wednesday: retired Detroit police chief Ike McKinnon and Lisa Howze, a CPA went to the state with a plan to ad- ditor general from 1995 to 2005, its hoCDB and a former state representative. 20131118-NEWS--0028-NAT-CCI-CD_-- 11/15/2013 5:50 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS November 18, 2013 Karmanos: Pact restricts name usage UPCOMING ■ From Page 1 and Lapeer. complaint against Karmanos, Kar- The branding restrictions pre- MCLAREN OUTPATIENT CENTERS manos is required to operate the PARTNER EVENTS vent McLaren from advertising hospital under the name Kar- Ⅲ McLaren Health Care hospitals: 2013 and marketing Karmanos at one of Bay City (2), Flint, Lansing (2), manos Cancer Institute at the De- its two Southeast Michigan hospi- Lapeer, Mt. Clemens, Mt. troit Medical Center. Other provi- Crain’s partners with a variety of tals — McLaren Oakland in Pontiac Pleasant, Petoskey, Pontiac sions include: organizations on events by providing — and nearby outpatient centers Ⅲ McLaren outpatient centers Ⅲ Requiring Karmanos and the in Clarkston, Bloomfield Hills and (general and cancer): Bay City, DMC to jointly market their ser- special subscription offers for their members. Pontiac. Bloomfield Hills, Charlevoix, vices at the DMC main campus. Visit their websites for more details. The DMC-Karmanos agreement, Cheboygan, Clarkston, Detroit, Ⅲ Requiring the DMC to stop Lane said, allows for exceptions at Farmington Hills, Flint (2), Gaylord, providing inpatient and outpatient McLaren Macomb and an outpatient Lansing (2), Lapeer, Monroe, Mt. cancer hospital services on the center, both in Mt. Clemens. Clemens, Mt. Pleasant, Owosso, DMC main campus. Petoskey, Pontiac, West Branch The Michigan Hispanic Chamber of Commerce McLaren’s website now includes Ⅲ Providing that “any breach by (MHCC) 24th Annual Fiesta Hispana Gala a map of McLaren’s cancer centers Source: McLaren Health Care Karmanos of any provisions would This black-tie, A-list event celebrates the success that include Karmanos Cancer In- cause irreparable harm to DMC of the Hispanic business community and draws stitute in Detroit and Karmanos’ forming closer affiliations with (and allow for) injunctive relief.” Karmanos, but the DMC agree- Michigan’s most prominent business, civic and outpatient centers in Farmington Ann Hollenbeck, Karmanos at- Hills and Monroe. ment prevented those arrange- torney with Honigman Miller Schwartz Michigan Hispanic community leaders for an extraordinary evening. ments. The systems include Henry Chamber of Commerce “Those are Karmanos’ existing and Cohn in De- Corporate sponsorship packages and individual properties. We are not changing Ford Health System and Beaumont troit, said Kar- tickets are still available. The evening starts with those,” Lane said, adding that Health System. manos is work- a VIP cocktail reception, followed by dinner and McLaren does not consider listing Gerold Bepler, M.D., Karmanos’ ing through an awards ceremony. The evening concludes with Karmanos on its website as mar- CEO, told Crain’s that Karmanos procedural is- the high-energy, rhythmic sounds of Dal Bouey keting in the three-county area. discussed acquisition and other sues with the arrangements with other health and her band. Over time, Tompkins said, signs DMC contracts. for the McLaren Cancer Institute, systems in Michigan. He declined “We are being Dec. 6 • 6 p.m. – midnight which is McLaren’s existing oncol- to name the systems. very careful and MGM Grand Detroit, 1777 3rd St., Detroit ogy service line, will be replaced Brian Connolly, CEO of Oakwood respectful” of all Members/Non-members: $200 with Karmanos Cancer Institute Healthcare, a four-hospital system the parties, said Hollenbeck Registration: mhcc.org or Barbara Lange signs at its hospitals and medical in Dearborn, said Oakwood was Hollenbeck, who at 248-792-2763 centers, and in advertising cam- prevented by DMC from co-brand- declined to answer a series of ques- paigns. ing services with Karmanos. tions about the contract limita- “We believe Karmanos is a very “I understand DMC is interested tions. strong and trusted brand. We plan in having tertiary cancer business Patricia Ellis, Karmanos media Marketing & Sales Executives of Detroit on extending it into our network draw (to) downtown,” Connolly relations manager, said Karmanos (MSED) Holiday Networking in the communities we are in,” said. “I don’t think necessarily by is aware of the branding restric- Join MSED members and friends for an evening Tompkins said. having that brand (with other sys- tions placed on it by the DMC can- of professional networking. Bring your colleagues In a previous interview, DMC tems outside of Detroit) wouldn’t cer business acquisition. and make new connections with some of the top CEO Joe Mullany said DMC op- result in tertiary care services still “The DMC required that if Kar- marketing and sales executives in Michigan. The posed the McLaren acquisition going downtown.” manos were to clinically affiliate But Mullany said the McLaren- evening includes appetizers, one drink ticket and and made an offer to Karmanos, with any hospital or health system but didn’t receive an answer. Karmanos combination will likely based in the tri-county area that a prize drawing. DMC was acquired by Dallas- force DMC to look for other part- DMC would have the right to grant Dec. 17 • 5 – 7 p.m. based for-profit Tenet Healthcare ners to further develop its oncolo- permission in advance (which BlackFinn American Saloon, Corp. in June af- gy services. must not be unreasonably de- 530 South Main Street, Royal Oak ter Vanguard Sources told Crain’s that nied),” said Ellis in a statement to Members: $20 • Non-members: $20 Health Systems, a McLaren has pledged to spend Crain’s. Registration: msedetroit.org or Meeting Nashville, $80 million over four years to up- Ellis added that the restriction grade Karmanos’ downtown hospi- Coordinators at 248-643-6590 Tenn.-based for- does not apply to Karmanos’ edu- profit chain, tal and expand its two outpatient cational or research programs. took over DMC centers at the Weisberg Cancer Cen- Lane said McLaren has not on Jan. 1, 2012. ter in Farmington Hills and the asked DMC for co-branding per- Troy Chamber’s Holiday Luncheon and Mullany said Monroe Cancer Center, a joint ven- mission in the three-county area, Best of Troy Presentation DMC will watch ture with Mercy Memorial Hospital but “we believe the DMC has the System Promed- Start with a networking reception with the area’s Mullany closely how and Toledo-based right to grant additional excep- business decision makers from 10:30-11:30 a.m. McLaren brands ica. tions,” he said. Then enjoy a keynote address by Local 4 Sports’ the Karmanos name in Macomb, According to the asset purchase Jay Greene: (313) 446-0325, Oakland and Wayne counties. and lease agreement, which was [email protected]. Twitter: @jay- Bernie Smilovitz, lunch and lots of holiday cheer. “Karmanos has been frustrated referenced in DMC’s May 4, 2007, bgreene Everyone leaves with a Holiday Biz Bag. This is that it cannot expand their brand typically the Troy Chamber’s most popular event because of the agreement,” Mul- of the year. lany said. Dec. 18 • 10:30 a.m. – 1:30 p.m. McLaren also is prohibited by THE MILLER LAW FIRM Detroit Marriott Troy, the agreement from moving the Changing the Odds in our Clients’ Favor 200 W. Big Beaver Road, Troy Karmanos operation outside of the DMC campus, Mullany said. DMC Members: $38 • Non-members: $48 filed a successful 2007 lawsuit that (Additional $5 for day of registration, prevented Karmanos from moving space-permitting) to shuttered St. John Riverview Registration: troychamber.com/cal, Hospital in Detroit. 248-641-8151 or [email protected] Lane restated McLaren’s inten- tion not to move Karmanos’ inpatient operations outside of the DMC campus. In a statement last week, Mul- Macomb County Chamber Alliance 2014 lany said the DMC has not been Economic Forecast provided any details on the acqui- Discover what’s ahead for the Macomb sition. community as James Jacobs, Ph.D., president of “We don’t know if Karmanos Macomb Community College, presents his annual has taken steps within that agree- The Miller Law Firm is Recognized as a ment to ensure their ongoing com- economic forecast. Lunch is included. Leader in Complex Business Litigation Jan. 15 • 11:30 a.m. – 1:30 p.m. pliance with and commitment to the terms and conditions of the Q Class actions Q Family law and probate litigation Zuccaro Banquets & Catering, contractual arrangements be- 46601 Gratiot Ave., Chesterﬁ eld Twp. tween Karmanos and DMC,” said Q Employment litigation Q Commercial and business lawsuits Members: $30 • Non-members: $40 Mullany, who was out of town last Q Automotive Supplier Counseling Q Shareholder and partnership disputes

Registration: macombcountychamber.com week. Referral fees honored on contingency fee cases Over the past few years, sources 950 West University Drive, Suite 300 have told Crain’s that several hos- Rochester, Michigan 48307 248-841-2200 millerlawpc.com pital systems were interested in 20131118-NEWS--0029-NAT-CCI-CD_-- 11/15/2013 4:45 PM Page 1

November 18, 2013 CRAIN’S DETROIT BUSINESS Page 29 New shuttle services to offer airport transportation alternatives www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 BY BRIDGET VIS a potential airport transport ser- $22. from downtown and $77 from Roy- or [email protected] SPECIAL TO CRAIN’S DETROIT BUSINESS vice over Thanksgiving weekend. Detroit Bus Co. is working with al Oak, according to the compa- ASSOCIATE PUBLISHER Marla Wise, (313) 446- Detroit Department of Trans- 6032 or [email protected] Detroit would be the second the nies’ websites. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Metro Detroit travelers will market for Shuttle Co. of America, portation to create the route and A general taxi fare to Metro Air- 0460 or [email protected] soon have two new options for get- MANAGING EDITOR Jennette Smith, (313) 446- which operates regionally in Las schedule and said it already has port from downtown Detroit would 1622 or [email protected] ting to and from Detroit Metropoli- Vegas. The company said its down- 300 people signed up as potential cost about $42 each way; from MANAGER, DIGITAL CONTENT STRATEGY Nancy tan Airport. customers through its website, Hanus, (313) 446-1621 or [email protected] town-to-airport service will be $43 Royal Oak, the one-way cost MANAGING EDITOR/CUSTOM AND SPECIAL Shuttle Co. of America, a Hender- round trip. thedetroitbus.com. PROJECTS Daniel Duggan, (313) 446-0414 or would be $51, according to [email protected] son, Nev.-based airport shuttle and Transportation will be provided Detroit Bus Co. and Shuttle Co. Taxifarefinder.com. SENIOR EDITOR/DESIGN Bob Allen, (313) 446- transportation company, is await- in Ford Transit Connect vans and of America would be less expen- 0344 or [email protected] Metro Airport travelers who dri- SENIOR EDITOR Gary Piatek, (313) 446-0357 or ing a license approval from the Mercedes-Benz passenger vans. sive than transportation options [email protected] Michigan Department of Transporta- The Detroit Bus Co. transport currently available. ve their own cars face on-site park- WEB EDITOR Kristin Bull, (313) 446-1608 or ing fees between $8 and $20 a day [email protected] tion to begin offering daily trans- service will run two routes, from A taxi fare from Metro Airport WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- portation from downtown Detroit Royal Oak and downtown Detroit, Taxi is $43 one way from down- or off-site parking fees between $6 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, to the airport. on Nov. 27 and Dec. 1. A one-way town and $55 from Royal Oak, and and $20 a day, depending on the [email protected] And The Detroit Bus Co. will test fare will cost $12; a round trip is a Metro Cars fare is $56 one way lot. WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 REPORTERS Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. Comerica: Park among venues redoing surfaces (313) 446-0325 or [email protected] Amy Haimerl, entrepreneurship editor: Covers ■ entrepreneurship, second-stage companies and From Page 3 small business. (313) 446-0416 or [email protected] DeBuck Sod Farm Inc. in Davison. Ice time New grass Chad Halcom: Covers litigation, higher education, SURFACE BEAUTY “For a high-end field such as non-automotive manufacturing, defense Construction of the temporary The ice rink at Comerica will be contracting and Oakland and Macomb counties. Here’s a look at the recently Comerica Park, they are also look- (313) 446-6796 or [email protected] ice rink at Comerica Park will be- removed in January, and once the ing at the soil profile the sod is Tom Henderson: Covers banking, finance, gin the day after Thanksgiving, weather cooperates, replacement installed playing surfaces for the technology and biotechnology. (313) 446-0337 or area’s major sports teams: grown in; usually they want a sand- [email protected] and such a project costs between grass will be installed. based soil which aids in drainage. Kirk Pinho: Covers real estate and the city of $800,000 and $1 million, said Benn Depending on the thickness of Ⅲ Comerica Park Detroit. (313) 446-0412 or [email protected] This would be harder to find native Bill Shea, enterprise editor: Covers media, Breton, president and co-owner of the custom turf, how much is need- Team: Detroit Tigers to the farms in Michigan.” advertising and marketing, the business of sports, Rink Specialists. ed and how quickly it’s needed to Surface: Kentucky bluegrass and transportation. (313) 446-1626 or Teams are fiercely protective of [email protected] The firm, in business since 2006, use, the cost of a baseball field Manufacturer: N/A Nathan Skid, multimedia editor: Also covers the constructs 20 outdoor temporary ranges from $100,000 to more than Cost: $100,000-$250,000 their turf: The Tigers fired several food industry and entertainment. (313) 446-1654, employees in early 2000 for walk- [email protected] rinks a year, including two for the $250,000, said James Graff, co-own- Installed: 2007 Dustin Walsh: Covers the business of law, auto ing on the first turf planted at the suppliers and steel. (313) 446-6042 or NHL, he said. In 2013, it is doing er and president of Fort Morgan, Ⅲ Ford Field ballpark, which opened that year, [email protected] three NHL rinks, in Detroit, at Colo.-based Graff’s Turf Farm. Team: Detroit Sherri Welch: Covers nonprofits, services, retail according to Detroit Free Press re- and hospitality. (313) 446-1694 or Boston’s Fenway Park and at mi- Graff’s is bidding on the Comer- Lions ports at the time. [email protected] nor-league baseball’s Frontier ica Park job. It installed new nat- Surface: LANSING BUREAU Field in Rochester, N.Y., for the ural grass at MSU’s Spartan Stadi- Chris Gautz: Covers business issues at the Capitol Field Turf and utilities. (517) 403-4403 or [email protected] Buffalo Sabres. um for $253,000 following a U2 Classic HD Other surfaces Rink Specialists will install the concert on the football field in (artificial ADVERTISING custom temporary rink and pro- June 2011. The Irish rock band’s grass) The Detroit Lions in January be- SALES INQUIRIES (313) 446-6052; FAX (313) 393-0997 vide all of the staff, operations contract to play at the stadium in- Manufacturer: Montreal-based gan replacing the original artifi- SALES MANAGER Tammy Rokowski and maintenance during the cluded it picking up the cost of the FieldTurf Inc. cial turf at Ford Field, which SENIOR ACCOUNT EXECUTIVE: Matthew J. events, Breton said. new turf. Cost: $600,000-$1 million opened in 2002. Langan ADVERTISING SALES Christine Galasso, Jeff Everything used for the rink is Graff’s has provided the grass Installed: 2013 The team installed FieldTurf Lasser, Dale Smolinski, Sarah Stachowicz shipped from the company’s for Wrigley Field in Chicago, the Ⅲ Joe Louis Arena Classic HD, manufactured by Mon- CLASSIFIED SALES Angela Schutte, manager, Maine facility, he said. University of Notre Dame’s football (313)-446-6051 Team: Detroit Red Wings treal-based synthetic grass giant GENERAL MANAGER/MARKETING AND EVENTS “We build all this equipment or stadium, Busch Stadium in St. Elizabeth Buscher Surface: Ice FieldTurf Inc. Replacement turf, we have it built,” Breton said. Louis and several other major col- DIGITAL MARKETING MANAGER Manufacturer: In-house ice-making which can include a variety of op- The temporary Comerica rink lege and pro facilities. Jennifer Chinn equipment tions but doesn’t require as much DIRECTOR, INTEGRATED MARKETING Eric Cedo will stretch roughly between first The Colorado-grown sod would Cost: N/A infrastructure work as the initial EVENTS MANAGER Kacey Anderson and third base, just beyond the be shipped to Michigan in refriger- SENIOR PRODUCER FOR DIGITAL/ONLINE installation, can range in price pitcher’s mound, said Tim Padgett, ated trucks, and installed over sev- Installed: 1.5 PRODUCTS Pierrette Dagg inches of ice, from about $600,000 to $1 million. MARKETING ARTIST Sylvia Kolaski Red Wings vice president of venue eral days. made from The price for Ford Field wasn’t SALES SUPPORT Suzanne Janik, YahNica Crawford operations and general manager of Stadiums hosting concerts or PRODUCTION MANAGER Wendy Kobylarz 15,300 gallons disclosed. Joe Louis Arena. sports other than what’s normally of water mixed PRODUCTION SUPERVISOR Andrew Spanos A hard surface will be placed played there — football inside with white paint, are put down in The artificial grass uses an infill CUSTOMER SERVICE numerous fine layers before each mix of silica sand and rubber and MAIN NUMBER: Call (877) 824-9374 or write around the rink for spectators and baseball stadiums — has picked up [email protected] snow-removal vehicles and other as a trend and necessitated more season. is intended to have cheaper main- SUBSCRIPTIONS $59 one year, $98 two years. Ⅲ Palace of Auburn Hills tenance costs than natural grass. Out of state, $79 one year, $138 for two years. machinery to use, he said. field replacements, Graff said. Outside U.S.A., add $48 per year to out-of-state The Hockeytown Winter Festi- “That’s really become a big part Team: Detroit Pistons FieldTurf also provided the past rate for surface mail. Call (313) 446-0450 or (877) 824-9374. val is a series of college and minor- of sports venues in the last six or Surface: Pro King Portable Floor two artificial turf fields at Michi- SINGLE COPIES: (877) 824-9374 league hockey games, and two seven years,” he said. “Most times, (maple wood) gan Stadium, the last installa- REPRINTS: (800) 290-5460, ext. 125; (717) 505-9701, ext. 125; or lindsay.wilson NHL alumni games, that will ac- a field gets replaced because of a Manufacturer: tion coming in 2010 at a cost of @theygsgroup.com company the NHL’s open-air Win- nonsports activity. They’re rev- Dollar Bay-based $412,000, the university said. TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0406 or e-mail [email protected] ter Classic between the Red Wings enue-generating opportunities for Horner Flooring The Detroit Pistons in 2011 Co. Inc. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY and Toronto Maple Leafs at Michi- sports teams.” spent $100,000 on a new hard- CRAIN COMMUNICATIONS INC. gan Stadium in Ann Arbor on Jan. In addition to normal game Cost: $100,000 CHAIRMAN Keith E. Crain wood court, one that can be in- PRESIDENT Rance Crain 1. Installed: 2011 wear, the Tigers have replaced or stalled or removed in two TREASURER Mary Kay Crain The NHL owns its own rink it in- repaired sections of turf after con- Ⅲ Michigan Stadium Executive Vice President/Operations hours with six people, from Dollar William A. Morrow stalls for the Winter Classic, which certs by Kid Rock, Paul McCartney Team: University of Michigan Bay-based Horner Flooring Co. Inc. Executive Vice President/Director of Strategic is televised nationally on NBC. The and Jimmy Buffett in recent years. football Operations Chris Crain The Upper Peninsula company Vice President/Production & Manufacturing league is renting the football stadi- After a Rolling Stones concert in Surface: Field Turf Duraspine Pro Dave Kamis has provided courts for the NBA’s um for a month at a cost of nearly September 2005, Tigers head Manufacturer: Montreal-based Vice President/Chief Human Resources Officer All-Star games since 1983, and the Margee Kaczmarek $3 million. groundskeeper Heather Nabozny FieldTurf Inc. G.D. Crain Jr. Founder (1885-1973) Red Wings owner Mike Ilitch and her crew had to immediately Cost: $412,000 home courts for dozens of pro, col- Mrs. G.D. Crain Jr. Chairman (1911-1996) lege and high school basketball EDITORIAL & BUSINESS OFFICES: sought the Winter Classic for replace 22,500 square feet of out- Installed: 2010 1155 Gratiot Ave., Detroit MI 48207-2732; 42,000-seat Comerica Park, home teams. (313) 446-6000 field grass. Ⅲ Spartan Stadium Cable address: TWX 248-221-5122 AUTNEW DET to the Ilitch-owned Tigers, but the Coincidentally, another maker In cold-weather states, the spe- Team: Michigan State University CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is NHL preferred the 109,901-seat UM of basketball courts, Salt Lake published weekly, except for a special issue the third cialized turf often comes from else- football week of August, and no issue the third week of football stadium because it said it where. Surface: Kentucky bluegrass City-based Connor Sport Court Inter- December by Crain Communications Inc. at 1155 wants a larger crowd capacity. national, has its manufacturing Gratiot Ave., Detroit MI 48207-2732. Periodicals “Most athletic fields, especially Manufacturer: Fort Morgan, Colo.- postage paid at Detroit, MI and additional mailing As a compromise — Ilitch, after in Michigan, are a Kentucky blue- plant in Hematite Township in the offices. POSTMASTER: Send address changes to based Graff’s Turf Farm CRAIN’S DETROIT BUSINESS, Circulation all, since 1982 has owned one of the grass blend, and 90 percent of the Cost: $253,000 same region of the UP. Department, P.O. Box 07925, Detroit, MI 48207- NHL’s Original Six franchises — sod grown in Michigan is also a Bill Shea: (313) 446-1626, 9732. GST # 136760444. Printed in U.S.A. Installed: 2011 Entire contents copyright 2013 by Crain the NHL agreed to foot the bill for Kentucky bluegrass blend,” said [email protected]. Twitter: Communications Inc. All rights reserved. Source: Crain’s research, teams Reproduction or use of editorial content in any hockey events at Comerica. Diane Mischel, whose family owns @bill_shea19 manner without permission is strictly prohibited. 20131118-NEWS--0030-NAT-CCI-CD_-- 11/15/2013 5:51 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS November 18, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 9-15

troit Tigers Alumni Association. He’s also Willie tive American League Most gan was one of four U.S. Horton’s agent. Sebelius in Valuable Player award and public universities hon- High-profile Appearing from the 1968 pitcher Max Scherzer claim- ored by the Washington, team will be Horton, Al ing the AL Cy Young D.C.-based Association for Kaline, Denny McLain, John Detroit: Health Award. Public and Land-Grant Univer- Hiller, Tommy Matchick and Ⅲ Denver-based Triton sities for work in entrepre- John Warden. From the 1984 Properties Inc. purchased neurship, technology trans- folks to share site will improve four apartment buildings fer and business team will be Lance Parrish, totaling 143 units near and development. Darrell Evans, Dave Rozema uring a visit to De- along the east Detroit river- Ⅲ Detroit Central City and Dan Petry. troit on Friday, front for an undisclosed Community Mental Health The event is scheduled Health and Human D amount from Detroit-based Inc. received $793,000 in tales of failure for 6 p.m. at MGM Grand De- Services Secretary Kath- Cynex Enterprises. federal funding to create troit. Tickets are $150. Call leen Sebelius sought to reas- veryone has a fail- idea. It will travel to Mexico Ⅲ Detroit-based law firm Southeast Michigan’s sixth (810) 588-9106 for details. sure the public that the ure story. City and New Orleans next Dickinson Wright PLLC an- federally qualified health troubled federal insurance Grand Rapids- year. nounced a cooperation center. E website that launched Oct. based Failure Lab is bringing But first the storytellers Safety group sets honors agreement with Velchev & Ⅲ Home sale prices last 1 will be much improved to the Motor City six of will come to the Detroit Co., a law firm based in month in Wayne and Ma- Dan Loepp, president and by the end of this month. these tale tellers: Charlie Opera House at 7 p.m. Sofia, Bulgaria, that ex- comb counties increased CEO of Blue Cross Blue Shield Sebelius toured the Com- Wollborg, Nov. 21. Tickets are $20 and tends Dickinson Wright’s by 43.6 percent and 46.2 of Michigan, and Saul Green, munity Health and Social Ser- founder of can be purchased at gaming practice into Eu- percent, respectively, over senior counsel at Miller Can- vices Center, where she ob- Curve Detroit failure-lab.com or the door. rope for its global clients. October 2012, according to field PLC, will be honored served as counselors and force Ⅲ The Detroit Red Wings Farmington Hills-based Re- Dec. 3 in the first Detroit helped guide uninsured behind launched a digital 40-page alcomp II Ltd. Public Safety Foundation gala residents through their op- TEDxDetroit; New veterans shelter gets retail catalog, but fans can’t Ⅲ Singer Sheryl Crow is to honor business leaders tions under the new health Diana Sieger, order online. National Hock- slated to perform at the help from Tigers alums and first responders. care law, the AP reported. president of ey League rules say revenue Jan. 17 North American In- How does a new nonprofit Loepp will receive a ternational Auto Show chari- the Grand “change makers” award, from retail sales on the site attract Detroit Tigers alumni should be split equally ty preview in the new Cobo Rapids Com- and Green will get an award ON THE MOVE Wollborg from the 1968 and 1984 among the league’s 30 Atrium at Cobo Center. munity Foun- for ethics. Medal of Honor World Series teams to one Ⅲ DeWayne Wells, presi- teams. But revenue from Ⅲ “Infant St. John the dation; Jimmy King, member and Purple Heart awards of its first fundraisers? dent of Detroit-based Glean- in-person and faxed sales Baptist in the Wilderness,” of the University of Michigan will go to various Detroit Po- Roseville shelter Vets Re- ers Community Food Bank of go straight to the Red a 17th century painting by Fab Five and vice president lice Department officers and turning Home just opened its Southeastern Michigan, Wings. Spanish artist Bartolome of business development for members of the Detroit Fire doors in October. Its “Show- stepped down to take a new Ⅲ Detroit-based DTE Ener- Esteban Murillo that was Schechter Wealth Strategies; Department. Marsha Music, 2012 Kresge down in Motown” on Dec. 4 role with the agency as its gy Co. halted power produc- hanging at Meadow Brook The foundation was cre- Literary Arts Fellow; is a debate about which national policy and advoca- tion and construction at Hall, will go on display at ated in 2011 and has secured Andwele Gardner (better World Series team was bet- cy officer. Gleaners Board Echo Wind Park in Michi- the Detroit Institute of Arts more than $30 million in known by his stage name, ter, and benefits the shelter Chairman Walt Young will gan’s thumb area while it early next year after it was grants to support Detroit Dwele), a singer-songwriter and two other veterans be interim president while investigated why a blade spotted by DIA curator Sal- police and fire departments. and record producer from charities: Operation Injured the board searches for broke on one turbine. vador Salort-Pons. The event will take place Wells’ successor. Detroit; and Jessica Care Soldiers in South Lyon and Ⅲ The Detroit Symphony at Cobo Center’s Grand Ⅲ Maria Leonhauser will Moore, five-time Showtime Tennessee-based U.S. Mili- Orchestra plans to tour Riverview Ballroom. Tick- retire at year’s end as pres- at the Apollo winner. tary All-Stars. OTHER NEWS Florida in February and ets are $150 to $500 and ident of Detroit-based Fran- March with support from a So how do you convince Sandy Bower, owner of EC Ⅲ A three-member state sponsorships are up to co Public Relations Group. $400,000 grant from the six high-profile people to Metro LLC, a merchant ser- panel unanimously ap- $5,000. More details are at Tina Kozak, executive vice General Motors Foundation. tell their darkest secrets? vices and credit card pro- proved a 30-year state lease detroitpublicsafetyfoundation. president and COO, will Ⅲ Nurse practitioners You ask them. cessing company in Clinton of Belle Isle, as the Local org. succeed Leonhauser, who and other nurses with ad- “You certainly have some Township, bought an 11,000- Emergency Financial Assis- will become a consultant vanced training could prac- awkward coffees,” said square-foot building on 11 tance Loan Board rejected with the agency. tice without oversight by Jonathan Williams, co- Mile Road in Roseville to Detroit City Council’s coun- BITS & PIECES Ⅲ Saad Chehab, head of physicians and prescribe founder of Failure Lab. open the shelter for veterans terproposal for a 10-year The University of Michigan the Chrysler and Lancia drugs under legislation “But it is the most interest- and provide job services. lease. Depression Center recently brands, will give up those that passed 20-18 in the ing conversation. You sit a She’s recruited only three Ⅲ The American Federa- gave its Mike Wallace positions to become chief Michigan Senate. Also, the stranger down and you say, people for her board of di- tion of State, County and Mu- Award to Waltraud “Wally” marketing officer of Fiat Senate voted 22-16 to allow ‘What was your biggest rectors so far, but one of nicipal Employees asked Prechter for her establish- S.p.A.’s Maserati luxury pharmacies to sell marijua- struggle to overcome?’ It’s them, Paul Dehem, a real es- U.S. Bankruptcy Judge ment of the Heinz C. Prechter brand. Al Gardner, head of na for medical purposes. the fastest way to make ac- tate broker with X-Pressreal- Steven Rhodes to send any Bipolar Research Fund at the Chrysler Group LLC’s south- Ⅲ This year’s Michigan tual deep friendships. It’s ty.com LLC in Shelby Town- ruling he makes on De- university. The award rec- east business center in apple crop is expected to be been the best side effect of ship, was able to recruit the troit’s eligibility for bank- ognizes an individual for Florida, will head the 10 times as plentiful as last starting this whole thing.” players. ruptcy court protection to commitment to conquering Chrysler brand, Automo- year’s, due to two tech- Failure Lab debuted in His brother Mark is the the U.S. Court of Appeals for depression, bipolar disor- tive News reported. niques — one that tem- Grand Rapids in May after player liaison for the Tigers the 6th Circuit for automat- der and related illnesses. Ⅲ After 19 years as exec- porarily stops apples’ abili- two years incubating the and vice president of the De- ic review because it will utive director of the St. ty to respond to their own hinge on whether the city Frances Cabrini Clinic in De- cues for ripening, the oth- bargained in good faith be- troit, Sister Mary Ellen er a play on refrigeration fore filing its bankruptcy Howard announced she will — that keep apples fresh in July. retire next summer. The Ⅲ The city of Detroit se- longer, the AP reported. clinic has begun a search cured a five-year agree- for a replacement. ment with its EMTs and BEST FROM THE BLOGS Ⅲ Waterford’s Pat La- OBITUARIES paramedics union — the Fontaine took over as presi- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS first successful bargaining Ⅲ Paul Buscemi, founder dent of hockey operations agreement since the city of the Roseville-based Origi- in a management shakeup Some answers on Belle Isle lease Suppliers ask: What drives you? filed for bankruptcy. nal Buscemi’s Inc. party Buffalo Sabres by the . The Ⅲ Federal prosecutors store pizza franchise busi- Don’t worry, What’s your former National Hockey want former Detroit May- ness, died Nov. 7. He was Detroiters:“ We won’t be passion?“ … The answer League player is related to or Kwame Kilpatrick to pay 89. turned away from Belle is rarely the automotive the family that owns Dear- about $4.5 million for wide- Ⅲ Barbara Morley Erb, who Isle even if we don’t yet industry. And it’s no born-based LaFontaine Auto- spread corruption under with her husband, the late have a Department of surprise the automotive motive Group. his watch, the AP reported. Fred Erb of Erb Lumber Co., Natural Resources industry fell out of Ⅲ Michigan’s public established the Birming- recreation fashion. ham-based Fred A. and Bar- passport. COMPANY NEWS universities will provide ” in-state tuition for all vet- bara M. Erb Family Founda- ” Ⅲ The Detroit Tigers took erans, regardless of state of tion, died Nov. 8. She was two of Major League residency or active duty 89. Amy Haimerl’s blog on small business can be found at Dustin Walsh’s “Shifting Gears” blog can be found at Baseball’s top postseason status, the Presidents Coun- Ⅲ Former Detroit Renais- www.crainsdetroit.com/section/blogAmyHaimerl www.crainsdetroit.com/walsh honors, with third base- cil, State Universities of sance Inc. President Robert man Miguel Cabrera win- Michigan announced. E. McCabe, 89, died Nov. 10. ning his second consecu- Ⅲ The University of Michi- He was 89. DBpageAD_DBpageAD.qxd 10/3/2013 4:09 PM Page 1

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