Fewer Workers Laid Off in 2012

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www.crainsdetroit.com Vol. 29, No. 1 JANUARY 7 – 13, 2013 $2 a copy; $59 a year

Page 3 McGraw Wentworth sells Fewer workers laid off in 2012 to Marsh & McLennan Guardian joins new family, Most cuts in health care, transportation PINK SLIPS FADE Layoff and plant closing notices led by Koch brothers BY CHAD HALCOM Development Agency, which reports Airport and whose layoffs prompted were down in Michigan in 2012. CRAIN’S DETROIT BUSINESS 54 companies sent notices of plant a WARN notice Oct. 3. That’s be- Here are the numbers of closings and mass layoffs affecting cause Regional Elite’s parent com- employees affected: Inside Layoffs were down sharply in 3,731 employees during the year. pany, Delta Air Lines Inc., later of- Michigan last year, particularly That’s compared with 5,701 em- fered all of those employees jobs at among manufacturers, although ployees displaced from 56 compa- another Delta subsidiary. the trend in underlying employ- nies in 2011 and 5,083 employees The state workforce agency, a ment figures is more mixed and laid off from 51 companies in 2010. unit of the Michigan Economic Devel- 3,731 5,701 5,083 metro Detroit pink slips crept up- The 2012 totals do not include opment Corp., receives notices to the 2012 2011 2010 ward outside the automotive in- more than 900 employees of air- state of pending plant closings or (54 (56 (51 dustry. port ground services provider Re- plant layoffs, under the federal companies) companies) companies) It was a decidedly unapocalyp- gional Elite Airlines Services LLC who Source: Michigan Workforce Development tic 2012 for the Michigan Workforce were based at Detroit Metropolitan See Layoffs, Page 19 Agency

Compuware bid becomes Newsmakers of the Year Cancer drug company looks 2012 toward possible sale, high-stakes chess match Page 11 Suitor Elliott Management known for aggressive, winning moves This Just In BY TOM HENDERSON New York law firm to advise its tled Overhaul: An Insider’s Ac- AND DUSTIN WALSH board of directors on how to react count of the Obama Administra- Novi’s ProtectCell acquired CRAIN’S DETROIT BUSINESS to the $2.3 billion offer by New tion’s Emergency Rescue of the Auto by Florida company York-based Elliott Management Industry. Will Compuware Corp.’s measured Corp. A formal response is unlikely That description resonated in A majority share of Novi- approach to the takeover bid before Jan. 22, when Compuware October when an Elliott-controlled based ProtectCell, a cellphone launched last month work against releases its next earnings report. fund in the Cayman Islands had an protection and recovery com- a hedge fund company used to play- Elliott Management was so ag- Argentine warship seized in Ghana pany, has been acquired by ing hardball and getting its way? gressive in a 2009 deal that in- in a dispute over unpaid sovereign Jacksonville, Fla.-based Compuware engaged two New volved General Motors Co. and Del- debt by the South American coun- Fortegra Financial Corp. for an York City investment banks and a phi Corp. that Elliott and its hedge try. undisclosed amount. fund partners were described as Officials at Elliott and Com- ProtectCell, a winner of “Barbary pirates” by Steven Rat- puware have had conversations Crain’s Salute to Entrepre- tner, the so-called car czar, in his neurs in June, was founded 2010 book about the auto bailout ti- See Compuware, Page 21 in 2006 and reported $49 million in revenue last year. When it started looking for buyers, 73 companies turned in letters of interest, said Bryan Finnerty, CEO and founding partner. Fortegra will keep the same management and employees in Novi and ProtectCell’s other Michigan locations. Noth- ing will change with the day- to-day operations, he said. The company has about 125 employees, 80 of which are in Novi. Finnerty and the other founding partner, Rob Emery, Big names of 2012: In a region will keep a “significant” stake of movers and shakers, these in ProtectCell through its par- are the Newsmakers. Crain’s ent company Digital Leash LLC., profiles 10 who made their mark Finnerty said. GETTY IMAGES on the business community. — Ryan Kelly Paul Singer founded Elliott Management Corp., one of the first hedge funds, in See Pages 6-7. 1977. ISTOCKPHOTO.COM

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MICHIGAN BRIEFS Ill. dredging and cleanup firm to MICH-CELLANEOUS pick up Kalamazoo firm for $20M A Snyder sit-down: Looking ahead in the aftermath Ⅲ Central Michigan University in Great Lakes Dredge & Dock Corp., Mt. Pleasant said the Accreditation an Oak Brook, Ill.-based dredging, Gov. Rick Snyder sat down with Editor and Pub- We’re around 9 percent (unemployment). At the Council for Graduate Medical Educa- demolition and remediation busi- lisher Brian Edwards and Managing Editor Joe same time, if you go to MiTalent.org, it shows we tion granted five-year institutional ness, plans to acquire the assets of Boomgaard of the Grand Rapids-based publication have over 50,000 open jobs. It really illustrates this in- accreditation to the new medical Kalamazoo-based Terra Contracting MiBiz to talk about his legislative accomplishments ability of our society to do a good matching between school’s residency programs asso- LLC for about $20 million. Great and his vision for the rest of his term. Some excerpts: supply and demand of talent. … We could drop our ciated with Covenant HealthCare Lakes Dredge announced the Why the involvement in divisive issues such as right-to- unemployment rate by a couple of percentage points and St. Mary’s of Michigan. The agreement last week, The Associ- work and abortion? My main agenda hasn’t changed. just by filling those jobs, and they’re good jobs. CMU College of Medicine said it re- ated Press reported. It’s jobs and kids. In some ways, I have to respond to What about the end of the personal property tax, which ceived 2,765 applications for its in- Terra provides environmental, what the legislators are doing and what other people will require the public to approve a municipal authority for augural class, of which 60 will be maintenance and infrastructure- are doing. Again, as governor, you don’t decide the the cut to take effect? The message that should come accepted, by the Dec. 15 deadline. related services. It employs about whole agenda. (Laughs.) out in terms of asking the voters to support this: It Ⅲ Midland-based Dow Chemical 200 engineering, operations and What tops your 2013 agenda for business and the doesn’t cost additional dollars to citizens. What it Co. has restarted an ethylene plant administrative staff and serves economy? Talent. … There’s really three C’s to it. It’s does is really get rid of a really obnoxious tax. in Louisiana after almost four years customers in more than 30 states. about collaborating with the private sector because Do you fear retribution from the right-to-work vote? because natural gas from shale for- it’s about the demand side: Where are jobs today and You’re going to find some in the shorter term. … If mations has made U.S. production Lansing’s Neogen acquires where are jobs in the future? The second C is about you’re a public servant, particularly if you’re an more competitive and the fuel creating talent. That’s really partnering with the ed- elected official, to say you’re not going to work with cheaper. Ethylene and propylene Calif. firm Scidera Genomics ucation sector to say, “What are we doing to make someone because they have a difference of opinion are used to make plastics for pack- aging, auto parts and carpets. Lansing-based Neogen Corp. has sure people are getting the right preparation?” The is not a good answer. Ⅲ purchased Davis, Calif.-based last C is connecting talent, which is taking demand What to look for in the next year? A lot of it is watch- Come fall, Alma College will pay Scidera Genomics LLC, formerly and supply and putting them both together. ing the full implementation of what we’ve done. the cost of completing a degree for known as MetaMorphix Inc. and any student who meets the school’s MMI Genomics Inc. Financial to spend $45 million to acquire Grocer Al Kessel, a brand name in 1982 and added to them in 1991 requirements but fails to graduate terms were not disclosed. The deal Chicago-based Cobrek Pharmaceuti- when he acquired 13 Hamady within four years, the Detroit Free took effect Jan. 1, the Lansing cals Inc., a privately held drug de- in Flint food, dies at age 74 stores in U.S. Bankruptcy Court. Press reported. The private college, State Journal reported. veloper, MLive.com reported. Kessel also had his encounters about 50 miles north of Lansing, Al Kessel, whose Flint-based also will make all students eligible Scidera specializes in animal ge- Perrigo, which makes pharma- Kessel Food Markets once encom- with unions. In April 1998, United nomics and studies genetics in cat- ceuticals and nutritional products Food and Commercial Workers Local for a $2,500 stipend to pursue an in- passed more than 20 stores and ternship, summer research project tle, poultry, swine and dogs, Neogen sold under the labels of major retail- 951 tried to organize employees. La- 2,000 employees, died Dec. 28 at a or other off-campus study option. said in a news release. Its employers, has owned about 19 percent of Florida hospice, MLive.com re- bor leaders marched on Kessel ees will continue to work in Davis. Cobrek since 2008. Perrigo said the ported. Kessel, who was 74, sold the headquarters, asking him to sign a Find business news from partnership has resulted in two grocery chain to Kroger Co. in 1999. pledge to allow the union to distrib- around the state at crainsdetroit Perrigo plans $45M acquisition foam-based skin treatment products Kessel, a former vice president ute organizing literature in compa- .com/crainsmichiganbusiness. and two U.S. Food and Drug Administra- of the now-defunct Hamady Bros. ny stores and give union represen- Sign up for Crain's Michigan of Chicago drug developer tion-approved foam-based products supermarket chain in Flint, tatives access to employee meetings Business e-newsletter at crains Allegan-based Perrigo Co. plans that are awaiting launches. bought three closed Kroger stores in the stores. Kessel refused. detroit.com/emailsignup.

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January 7, 2013 CRAIN’S DETROIT BUSINESS Page 3 McGraw sells to N.Y. company Inside

local office of Mercer LLC, a health, Founders look to expand services with Marsh retirement and investment consulting company that serves companies of more than 500 employees. BY JAY GREENE talked with a number of organiza- efit companies, said Bill Jeatran, Jerry Konal, Mercer’s health and CRAIN’S DETROIT BUSINESS tions, and one reason we chose CEO of Marsh McLennan Agency Up- Marsh and McLennan was we per Midwest Region in Minneapolis. benefits practice leader in Detroit, McGraw Wentworth Inc., a Troy- wanted to provide continuity to “Our attrac- said the two companies are sepa- based employee benefit consulting our clients and (employees) for the tion to (McGraw rately operated but share a parent. firm, has sold its business to Marsh future.” Wentworth) was “As we look ahead, perhaps & McLennan Agency LLC. To prepare its request for propos- quality and hav- there may be opportunities to col- McGraw Wentworth, formed in al and to evaluate about six re- ing the people laborate,” Konal said. 1997 by Tom McGraw and Bill sponding companies, McGraw said, who can lead,” Under MMA, McGraw Went- Wentworth, has grown to 75 em- his company hired Dowling Hales, a Jeatran said. worth expects to continue its high ployees and $15 million in annual New York City-based consulting “We are looking single-digit annual revenue growth Busy corridors: Development revenue last year. It services com- firm, as an adviser. Details of the for acquisitions and expand services to its 175 panies of 100 to 10,000 employees. transaction were not disclosed. below McGraw clients, McGraw said. outside of Detroit, Page 12-13 “Bill and I made a decision early Since 2008, Marsh & McLennan Wentworth to “Our clients have been asking to Jeatran last year that we needed to look at Agency, part of New York City- expand our provide them with retirement the long-term perpetuation of our based Marsh and McLennan Cos., has business in Michigan.” planning, compensation and prop- Company index service model,” McGraw said. “We acquired 25 midsize employee ben- In Detroit, Marsh also owns the See McGraw, Page 19 These companies have significant mention in this week’s Crain’s Detroit Business: 618 South Main ...... 13 AGS Automotive Systems ...... 12 Alternative Automotive Technologies ...... 13 Armored Group ...... 13 Art Van ...... 12 Investment Ascendant Mdx ...... 13 Awrey Bakery ...... 4 BAE Systems ...... 12 Barracuda Networks ...... 13 Beaumont Health System ...... 12 from Koch Berry Moorman ...... 17 Blue Cross Blue Shield of Michigan ...... 4 Century Plastics ...... 12 Chrysler Group ...... 12 Citizen Republic Bancorp ...... 7 gives strength Comerica Bank ...... 19 Compuware ...... 1 Council of Michigan Foundations ...... 17 Detroit Institute of Arts ...... 6 Detroit International Bridge ...... 6 to Guardian Detroit Medical Center ...... 6, 18 Detroit Tigers ...... 6 Double Action Indoor Shooting Center & Gun Shop . . 20 New leaders, DTE Energy ...... 14 Esperion Theraputics ...... 5 Flex-N-Gate ...... 12 Ford Motor ...... 13 wider footprint Fori Automation ...... 12 General Motors ...... 12 BY DUSTIN WALSH Gibraltar Trade Center ...... 20 Granite City Food & Brewery ...... 13 CRAIN’S DETROIT BUSINESS Grant Thornton ...... 17 Gregory J. Schwartz and Co...... 14 Nearly four years after the death Guardian Industries ...... 3 of majority owner Bill Davidson, Henrob ...... 13 Auburn Hills-based Guardian Indus- Henry Ford Health System ...... 7 tries Corp. is part of a new family — NATHAN SKID/CRAIN’S DETROIT BUSINESS Hyundai America ...... 13 Store owner Al Allen holds a pistol in an otherwise sold-out display case at Double Action Indoor Shooting Center and J Bradley Moore & Associates Architects ...... 13 the Koch family, led by conserva- MacLean-Fogg Component Solutions ...... 12 Gun Shop in Madison Heights. tive political activists and indus- Magna Seating of North America ...... 12 trialists David and Charles Koch. Mahle Industries ...... 13 McGraw Wentworth ...... 3 On Dec. 19, KGCI LLC, a subsidiary Mercer ...... 3 of Wichita, Kan.-based Koch Indus- Michigan Catastrophic Claims Association ...... 17 tries Inc., became the largest indi- The Municipal Group ...... 7 Gun retailers miss sales bull’s-eye National Center for Manufacturing Sciences . . . . . 13 vidual shareholder of Guardian, Nexteer ...... 13 likely reducing the stakes of long- Ogihara America ...... 13 time Guardian executives and Old Dominion Freight Line ...... 13 Rush empties shelves amid fear of federal ban Planned Parenthood of Mid and South Michigan . . 10 Davidson family members as the ProNAi Theraputics ...... 11 company enters Quicken Loans ...... 6 a new era of BY BILL SHEA zines and ammunition. Robinson Capital Management ...... 14 Rush Trucking ...... 7 leadership. CRAIN’S DETROIT BUSINESS Jihad, without being specific, St. Joseph Mercy Oakland ...... 12 Koch quickly I’ve never seen it estimated he has done more than Severstal North America ...... 12 installed Ron Americans want to buy guns. “ “seven digits” in gun sales since Suburban Collection Showplace ...... 13 Vaupel, former Gun retailers want to sell them. like this. It’s the Connecti- Summit Health ...... 13 Problem is, demand has out- Target Sports ...... 3 president of Koch cut incident. Telemus Capital Partners ...... 14 Hydrocarbon Co. stripped supply of the most popu- structured panic One customer University of Michigan ...... 12, 13, 19 LP, as Guard- lar firearms. bought $50,000 University of Michigan-Dearborn ...... 13 That means gun sellers in buying. Walgreens ...... 12 ian’s president, worth of fire- Wessel Gun Shop ...... 20 CEO and board metro Detroit and across the ” arms over a West Construction Services ...... 12 Vaupel member on Jan. country haven’t seen a revenue Al Allen, Double Action Indoor couple of days, 1, removing day-to-day leadership boost as lucrative as they could if Shooting Center and Gun Shop he said. Department index from the board. weapons manufacturers were “It’s proba- BANKRUPTCIES ...... 5 Koch Industries is one of the meeting market demand. Fueled by fears of a new feder- bly the best largest privately held conglomer- The inventory just isn’t avail- al assault weapons ban in the month we’ve BUSINESS DIARY ...... 15 Jihad ates, generating revenue of $110 able, local gun sellers say. wake of the deadly Connecticut ever had,” he CALENDAR ...... 15 billion in 2011 with 60,000 employ- Ray Jihad, owner of Royal Oak- elementary school shootings Dec. said. The average margin on gun CAPITOL BRIEFINGS...... 4 ees. When Kech took a 44 percent based Target Sports, is the poster 14, consumers have been snap- sales is about $50 to $100 per CLASSIFIED ADS ...... 17 stake in Guardian, the investment child of the gun demand conun- ping up semi-automatic rifles — firearm for Target Sports, which JOB FRONT ...... 16 drum. “assault rifles” to some and ended a long search for the right has been open 20 years. KEITH CRAIN...... 8 buyers to diversify the ownership A year ago, he was selling about “modern sporting rifles” to oth- To keep up with demand, he’s 10 guns a day. Now, it’s 80 to 100 — ers, depending on the politics — LETTERS...... 8 See Guardian, Page 18 when he can get them, he said. along with high-capacity maga- See Guns, Page 20 MARY KRAMER ...... 8 OPINION ...... 8 ’ Start your day Nix the winter blahs OTHER VOICES ...... 9 THIS WEEK @ Want business news from around the state sent “10 Things to Do in Detroit” is PEOPLE ...... 16 to your email by 7 a.m. daily? Sign up for the posted every Thursday afternoon RUMBLINGS ...... 22 Crain’s Michigan Morning newsletter at crainsdetroit.com/morning. at crainsdetroit.com/tenthings. WWW.CRAINSDETROIT.COM WEEK ON THE WEB ...... 22 20130107-NEWS--0004-NAT-CCI-CD_-- 1/4/2013 4:52 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 7, 2013 Passing Blues conversion bill might be tougher this year

After Gov. Rick Sny- anger over right-to-work. a priority for him this year. der vetoed one of his own What he is comfort- Bolger’s press secretary, Ari top legislative priorities Capitol able saying is that this Adler, said that while nothing has before ringing in the new Briefings whole issue is going to be been proposed, they are happy to year, it’s not clear how around for a while. work with the governor to try and quickly lawmakers will “It’s not going to be a iron out any differences. be motivated, if at all, to quick thing,” Lund said. “I think it’s a high priority for try again at converting First of all, with the (Snyder),” said Kurt Weiss, Blue Cross Blue Shield of new House session un- spokesman in the governor’s of- Michigan into a nonprofit der way, there will need fice. “He’s hoping for sooner mutual insurance com- to be brand-new bills in- rather than later.” pany. troduced, there will be So is Blue Cross. Snyder vetoed the new Insurance Commit- Chris Gautz “From the standpoint of run- Blues legislation after tee members and Lund ning our business, time is of the House Republicans still has to be officially essence,” said Andrew Hetzel, added a last- minute abortion pro- renamed chairman of the commit- Blues vice president for corporate vision to make such coverage an tee. communications. opt-in for employers. And it would Committee assignments likely Under the Patient Protection have forced a woman seeking an won’t be finalized until at least and Affordable Care Act, private abortion because she was raped, mid-January, when new members health plans that want to offer in- was the victim of incest or whose will have to begin delving into a surance products in the health ex- life was in danger to then purchase complex issue that was debated for change are expected to be required a separate insurance rider so that more than three months last year. to file their the procedure would be covered. Lund said he be- plans with the In a letter explaining his veto, lieves something federal gov- Snyder said that was “beyond needs to be done with There’s no ernment by what is appropriate,” and amount- the Blues re- “ the end of the 60$//2)),&(Ř+20(2)),&( ed to “intrusive government regu- form, but he guarantee first quarter. Michigan’s Best Selection lation.” will wait to However, if For Small Professional Ofﬁce or Home Ofﬁce Rep. Pete Lund, R-Shelby Town- hear from we will do Blue Cross is  Free Design Assistance ship, chairman of the House Insur- House Speak- ance Committee last year, said the er Jase Bol- anything. still under  Customization - Sizes & Finishes Public Act 350  abortion piece was something that ger where it ” Professional Installation his fellow Republican members should land Rep. Pete Lund, by the end of  Contemporary or Traditional supported. on the priori- R-Shelby Township March, which “It did help it with passage,” ty list. requires it to Lund said. “There’s undergo state At the time of the vote, Democ- no guarantee we will do anything,” rate review, but no other insurers rats were revolting as the GOP was he said. in the state would, “that’s an in- jamming through right-to-work Lund said for him, reforming herently unfair and anti-competi- bills and decided to oppose basically the state’s auto no-fault insurance tive regulatory system” Hetzel all legislation as its way of protest- ranks above the Blues reform. Pro- said. ing the controversial measures. posed changes would restructure The bills that were reported So in order to secure passage, the Michigan Catastrophic Claims from the House Insurance Com- add-ons like the abortion provi- Association and limit catastrophic mittee last year — before the abor- sion were added to some bills. claims coverage. Lund’s bill would tion language was added — en- FEATURING As the new legislative session create a fee schedule to pay health joyed broad support, Hetzel said, begins this week, if Blues reform is care providers and offer con- and would be a place for the new going to pass, it may be dependent sumers a range of personal injury Legislature to start working on the issue. 6287+),(/'ō752< on at least some Democrats voting protection medical coverage with 129,ō/$.(6,'( for it. a minimum of $250,000 and a top The best place to start the *5$1'5$3,'6 process might be in the Senate, www.gormans.com There will be five fewer Republi- level of $5 million. jesper_A cans in the House this year, but Lund pushed hard for such legis- where the members who voted on Lund wouldn’t go so far as to say lation last term, but he never got it this last year and are familiar with there are not enough GOP votes to off the House floor, and this year the issues remain. approve the Blues plan without an there will be fewer Republicans in Chris Gautz: (517) 403-4403, abortion measure if Democrats the chamber to vote with him, [email protected]. Twitter: continue to vote against it out of though Snyder said no-fault is also @chrisgautz Awrey Bakery to sell assets in online auction

BY NATHAN SKID sell in those two days,” Hynes said. “I am thinking about the employ- AND RYAN KELLY “But not all of the equipment has ees, about my grandma’s recipes. CRAIN’S DETROIT BUSINESS been listed.” Those were grandma’s recipes, but Awrey made the announcement I suppose those will get sold too.” Just over two years after Livo- that it is preparing to let go its 157 After 95 years of family owner- nia-based Awrey Bakery LLC cele- employees in a Nov. 28 WARN no- ship, Awrey filed for Chapter 11 brated its 100th anniversary, it ap- tice required 60 days before a po- bankruptcy in February 2005 and pears the bakery is set to sell assets tential closing. was sold to Northbrook Ill.-based in an online auction beginning at Joe Silva, president of United Dis- Hilco Equity Management LLC and 10 a.m. Feb. 20 and ending Feb. 21. tributive Workers, Council 30, said if New York City-based Monomoy The website www.rabin.com has the bakery does close, the employ- Capital Partners for $25 million, a preliminary list of Awrey assets, ees will get 200 hours of severance which formed the company ABI including dozens of pieces of baking pay. Holdings Inc. to own it. equipment such as 340-quart mix- Phone calls to Awrey Bakery Awrey Bakery is known for its ers, 15,000-pound flour hoppers and were not returned. windmill cookies, fruit squares, 100-gallon cooling pans. Reached by phone Thursday, coffee cakes and brownies. Drew Hynes, director of cus- former company executive Betty In 2010, Awrey had 300 employ- tomer service for San Francisco- Jean Awrey said it’s been difficult ees at its Livonia site producing based auction company Rabin World- to watch the once-proud bakery about 4 million cases of goods, or wide, said he expects all of the listed bearing her name crumble. 40 million pounds of baked goods, equipment to be sold. “It absolutely breaks my heart each year, generating $78 million “Everything on the full list will and is very difficult,” Awrey said. in revenue. 20130107-NEWS--0005-NAT-CCI-CD_-- 1/4/2013 4:53 PM Page 1

CRAIN’S DETROIT BUSINESS Esperion’s Make some news new CEO is of your own familiar face We can help, using our unique and

BY TOM HENDERSON innovative Rehmann Experience. CRAIN’S DETROIT BUSINESS

Plymouth Township-based Espe- rion Therapeutics Inc. announced Everyone deserves headline-worthy service; Friday that Tim Mayleben has been named president and CEO. contact me today to learn how to get it. Esperion founder Roger Newton, who had been president and CEO, will become executive chairman and chief CPAs & Phil D. Bahr, CPA, CGMA science officer. Consultants The appoint- ment reunites Regional Managing Principal Mayleben More Ideas Mayleben and One Southeast Michigan Newton, who headed the manage- Team Your ment team of the original Esperion Future Corporate More Service [email protected] — one of the most successful phar- Investigators Wealth 248.458.7900 maceutical startups in state history. Advisors More Experience Mayleben, 52, was COO and CFO at the original Esperion, founded in 1998 to develop a drug to raise HDL, the so-called good choles- Ann Arbor Detroit Farmington Hills Troy terol. He spearheaded the raising of $200 million in equity capital for the company before it went public rehmann.com in 2000. Esperion was sold to Pfizer Inc. for $1.3 billion in 2004. In 2008, Pfizer, as part of its closing of Michigan operations, sold the Esperion name and rights to some small molecules back to Newton, who raised nearly $23 million in venture capital to re- launch the company. Esperion is based in the Michi- gan Life Science and Innovation Cen- ter, an incubator operation at a former Pfizer site. Newton said his VC investors have since pumped an additional $17 million into the company. In October, Mayleben announced he was retiring as president and CEO of Aastrom Bio- sciences Inc. (Nasdaq: ASTM), an Ann Arbor pharmaceutical company he joined in 2009. He left Aas- trom in December. While at Aastrom, Mayleben raised $75 million in equity capital and got several of its stem-cell- based therapies into ongoing U.S. Food and Drug Administration trials. Esperion’s lead drug candidate, with the working designation of ETC-1002, helps regulate a variety of cardiovascular and metabolic diseases. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2

BANKRUPTCIES The following businesses filed for Chapter 11 or Chapter 7 protection in U.S. Bankruptcy Court in Detroit Dec. 14 through Jan. 3. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Casterline II LLC, 332 S. Rogers, Northville, voluntary Chapter 11. As- sets and liabilities not available. Mark Miarecki Computing Inc., P.O. Box 930174, Wixom, voluntary Chap- ter 7. Assets and liabilities not available. — Ryan Kelly 20130107-NEWS--0006,0007-NAT-CCI-CD_-- 1/4/2013 4:54 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 7, 2013

2012 Graham Dave Mike Dan Manuel Beal Dombrowski Duggan Gilbert Moroun

Director, president and CEO CEO, president and general manager CEO Chairman Chairman Detroit Institute of Arts Detroit Tigers Detroit Medical Center Quicken Loans Inc. Detroit International Bridge Co.

etroit Institute of Arts Director n July 23, the Detroit Tigers were ike Duggan made news in n 2012, Dan Gilbert continued to mbassador Bridge owner Graham Beal has long talked atop the American League Cen- 2012 primarily for what he is be one of the biggest newsmak- Manuel “Matty” Moroun is- DOMIAabout the need for the muse- tral Division with a 52-44 expected to do in 2013, but he ers in metro Detroit. n’t afraid to put his money um to find a new operating model. record, but were in an unex- also leaves behind a larger Detroit Through year’s end, there where his mouth is. And 2012 was the year he and pected dogfight with the Chicago Medical Center after stepping down were 159 stories in Crain’s Detroit He reportedly spent at least $34 the DIA got it done. White Sox, who were a game behind. as CEO on Dec. 31. Business in print and online that million pushing Proposal 6, which For too long, Beal would say, the In a season with tremendous fan During its 2012 fiscal year, the referenced Gilbert. would have required a statewide museum had relied on unsustain- and pundit expectations, Detroit for-profit, five-hospital subsidiary Dominating the news has been referendum on any new interna- able sources of funding and donors was struggling without an every- of Nashville-based Vanguard Health his streak of real estate investing. tional vehicle crossings in Michi- to provide two-thirds of its annual day second baseman — four differ- Systems Inc. completed a new $43 He ended the year announcing the gan — specifically aimed at halting budget. ent players had started there, none million Children’s Hospital of Michi- purchase of another five build- the $2.1 billion New International Securing donations from corpo- with much success as a fielder or gan Specialty Center-Detroit and a ings, bringing the total downtown Trade Crossing, which Moroun rations, foundations and individu- hitter — and the team needed an- $7 million private room expansion portfolio to 15 buildings and three views as a threat to his bridge. als became more difficult as the other arm in the starting rotation. project. parking garages, representing 2.6 The money bankrolled a seem- economy slid into recession. The Team owner Mike Ilitch had Also under way are a $110 million million square feet. ingly around-the-clock barrage of museum was seeing donor fatigue, opened his checkbook in January DMC Cardiovascular Institute and mul- The purchases in 2012, executed commercials on local and out-state as competition for charitable dol- to sign free-agent slugger Prince tispecialty building project, and a by Gilbert and his other investors television with various anti-NITC lars was ever-increasing. Fielder to a nine-year, $214 million $30 million surgical department in the Rock Ventures LLC ownership messages. Something had to change. contract that sent expectations renovation at DMC Harper University entity, followed the purchase of The spending failed to have the Beal, named to head the muse- skyrocketing despite the deal Hospital and Hutzel Women’s Hospital. downtown office buildings in 2011. desired effect: Sixty percent of vot- um in 1999, was there when two largely being in response to the The company also completed its Another major 2012 purchase ers rejected the proposal on the arts millages sought by 17 of the off-season injury loss of designat- $6 million acquisition of ProCare was the One Woodward office Nov. 6 ballot. region’s largest cultural institu- ed hitter Victor Martinez. Health Plan Inc., a Detroit-based building. The 333,000-square-foot Prop 6 was the most expensive tions failed, first in 2000 and again The Fielder move ballooned the health maintenance organization. building is believed to be pur- tactic in Moroun’s long-running ef- in 2002. team payroll to $133.4 million. But it was Duggan’s Nov. 8 an- chased for $8.5 million. fort to block a competing Detroit He knew the challenges the mu- As the midsummer trade dead- nouncement that he would cede In January, Gilbert bought the River bridge, which has included seum was up against when it line approached and the team was the CEO title to President Joe Mul- former Federal Reserve Building court battles and largely unsuc- launched a roughly $2 million plan unable to run away with the divi- lany and pursue a campaign to be- at 160 W. Fort St. The 176,000- cessful public relations campaigns. to pursue a millage of its own. But sion, Dave Dombrowski worked come Detroit mayor that grabbed square-foot building remains va- The joint Michigan-Canadian under his direction, the DIA the phones and came up with a headlines. Speculation had been cant but is being marketed to large owned NITC would be built and sought and obtained approval to deal with the Miami Marlins for sec- building since Duggan moved from companies interested in the whole operated by a private-sector con- get an operating millage on the ond baseman Omar Infante and Livonia to the city earlier in the building. cessionaire about two miles from Aug. 7 ballot in Wayne, Oakland starting pitcher Anibal Sanchez. year and announced an explorato- Ending 2012 was the continued Moroun’s bridge. and Macomb counties. The Tigers wouldn’t capture ry candidacy in September. speculation about what Gilbert’s An NITC revenue report from Encouraged by the roughly 65 first place until Sept. 26, but it’s Duggan says he has taken part Detroit retail plan will look like. the Michigan Department of Trans- percent of voters who said during doubtful that would have hap- in at least 40 community meetings The purchase of Woodward- portation in June 2010 estimated a May poll that they would ap- pened at all with a weak platoon at at homes, churches, salons and fronting buildings between Cam- the new bridge will siphon about prove the millage — especially, second base and a series of bodies elsewhere in the city since mount- pus Martius and Grand Circus half of the Ambassador Bridge’s Beal said, if free admission for the filling in as the fifth starter. ing the informal campaign, and he Park will be part of the plan, along commercial truck traffic, current- residents of the three counties was Sanchez went a deceptive 4-6 plans to do 200 more to build up for with the development of a new ly 65 percent of what’s crossing be- included — the DIA created a with a 3.74 ERA in 74.2 innings the mayoral election in November. parking structure near Broadway tween Detroit and Port Huron. 501(c)(4) nonprofit, Art Is for Every- over 12 starts after joining the He also is confident he can raise and East Grand Boulevard. Moroun, a Grosse Pointe Shores one, to lobby for voter support. Tigers, and had a lights-out 1.77 the $5 million to $7 million cam- Renderings of the retail idea — trucking industrialist, ran his Under Beal’s direction, the DIA ERA over 20.1 innings in three paign war chest needed, and he pre- shown by Gilbert at multiple pub- Prop 6 campaign through The Peo- hired Eddie McDonald, chief of playoff starts. Detroit re-signed dicts a tough race that will include lic appearances — include store- ple Should Decide, the issue group staff for former Wayne County Ex- him in December to a five-year, incumbent Dave Bing and Wayne fronts for national retailers such financed by his Detroit International ecutive Ed McNamara, as its inde- $80 million free-agent contract. County Sheriff Benny Napoleon. as Apple Inc. and other uses, such Bridge Co. pendent campaign manager. It also Infante stabilized second and hit A bid to run Detroit could prove as a walk-up grocery store. The The Michigan Campaign Finance hired Washington, D.C.-based po- .316 in the playoffs as the team’s costly for Duggan, who was CEO plan will incorporate some of the Network, a Lansing-based nonpar- litical consulting firm Dewey most consistent post-season batter. of DMC for nine years. alley space behind the buildings tisan nonprofit, reported that anti- Square Group. The team finished 88-74, won the Vanguard has disclosed that along Woodward Avenue. Prop 6 Taxpayers Against Monopolies In late June, the museum division and the first two rounds of Duggan received total compensa- Outside of real estate, Quicken’s spent a reported $1.6 million. That launched its advertising campaign the playoffs — including a dominat- tion of $2.41 million in fiscal 2012, “Opportunity Made in Detroit” group was fronted by Lansing- with the tagline “Art is for every- ing AL Championship Series sweep but some $1.3 million of that was in campaign, starring homegrown based Marketing Resource Group one — it’s what we save for our of the New York Yankees — before stock options to be awarded over rocker Kid Rock, launched with a President Tom Shields, a longtime kids” and won approval for the 10- getting swept by the San Francisco seven years if he remained with nationwide television commercial spokesman for NITC. year, 0.2 mill levy in all three Giants in the World Series. the company. In October, Van- on Fox during the World Series. Moroun also spent more than counties. Dombrowski also made the deci- guard reduced Duggan’s pay to 70 In September, Gilbert was an- $2 million to support Proposal 5, The millage is expected to gen- sion to cut 12-year veteran Bran- percent of base salary and said he nounced as joining the Giving which would have mandated a erate about $23 million in annual don Inge on April 26, ending what would lose options that vest after Pledge, an effort started by billion- two-thirds majority or statewide revenue for the DIA, enabling it to had been several years of distract- his candidacy becomes official, un- aire investor Warren Buffett and vote on any new or additional state direct some of its fundraising ef- ing debate among fans and media der an agreement allowing the Microsoft Corp. founder Bill Gates taxes or tax rate changes. Almost forts to an endowment campaign. gadflies over his excellent defense company to comply with the Michi- and his wife. Members pledge to 70 percent of voters rejected it. — Sherri Welch versus his liability hitting. gan Campaign Finance Act and give half their wealth to charity. — Bill Shea — Bill Shea Federal Election Commission rules. — Daniel Duggan — Chad Halcom 20130107-NEWS--0006,0007-NAT-CCI-CD_-- 1/4/2013 4:54 PM Page 2

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 7

Cathy Joyce Andra Nancy Rick Nash Parker Rush Schlichting Snyder President and CEO CEO CEO CEO Governor Citizens Republic Bancorp Inc. The Municipal Group LLC Rush Trucking Inc. Henry Ford Health System State of Michigan

hen Cathy Nash was pro- ometimes the reward for get- ndra Rush, CEO of Wayne- s CEO of Detroit-based Henry t’s nearly impossible to get moted to president and CEO ting a big job done, Joyce Park- based Rush Trucking Inc., burst Ford Health System, Nancy though a meeting with Gov. WSof Citizens Republic Bancorp er could attest after 2012, is that Ainto the news in May after ASchlichting has been busy the IRick Snyder without him men- Inc. on Feb. 1, 2009, many thought you get follow-up political appoint- Ford Motor Co. orchestrated a joint past 18 months, collecting two tioning his favorite phrase, “re- hers the thankless task of riding ments to do it again. And again. venture between Rush and French prestigious national quality lentless positive action.” the same death spiral of quarterly Parker, CEO of Ann Arbor- supplier Faurecia SA. awards, being selected 2012 chair- His detractors say the positive losses, nonperforming loans and based organizational assessment, Rush founded the minority- woman of the Mackinac Policy Con- aspect has been absent of late, but shrinking capital-to-asset ratios training and services firm The Mu- owned joint venture Detroit Manu- ference and signing a letter of in- one would be hard-pressed to de- that were killing other area com- nicipal Group LLC, became an emer- facturing Systems LLC with Faure- tent to merge Henry Ford with scribe Snyder as anything but re- munity banks. gency financial manager in 2009 cia, taking over a nearly $700 Beaumont Health System. lentless. Citizens Republic’s death would for cash-strapped Ecorse, which million book of interior business Schlichting also was chosen to And he was relentlessly busy in have been sadder than the others. now reports a balanced budget for from Ford. The deal put Rush in become the 2013 chairwoman of the waning days of 2012, as Sny- One of the state’s oldest banks, it the current budget year and fiscal charge of one of the area’s largest the Detroit Regional Chamber. der was presented with nearly 300 was a survivor of several econom- 2014, which begins in July. minority auto suppliers — and the Earlier this year, Henry Ford bills during the lame-duck ses- ic booms and busts in its home While still in that role, she was largest run by a woman. was selected to receive the John M. sion that lawmakers approved city of Flint since its founding in also handed the reins of Highland The joint venture stems from Eisenberg Patient Safety and Qual- and hoped he would sign. Chief 1871 as the Citizens Commercial & Park Public Schools in May and Faurecia leasing a portion of the ity Award by the National Quality among them were right-to-work Savings Bank. served until October, when Gov. 1.6 million-square-foot former Vis- Form and The Joint Commission. legislation, Personal Property The bank had acquired its double Rick Snyder announced her ap- teon Corp. plant in Saline after ac- In April, Schlichting accepted Tax reform, a new emergency name in 2006 when Citizens Banking pointment as EFM of Allen Park. quiring the $1.1 billion book of in- the coveted 2011 Malcolm Baldrige manager law, a regional transit Corp. bought Ann Arbor-based Re- Since then, Parker devotes most teriors business from the plant. National Quality Award, the na- authority, a controversial abor- public Bancorp Inc., at the top of the of her workweek to Allen Park, The plant is owned by Ford. tion’s highest quality award for in- tion bill requiring such clinics to market. Republic focused on home which issued $31 million in bonds Rush based the JV in the Gate- novation, improvement and vi- become state-licensed surgical and commercial real estate. in 2009 to finance a land acquisi- way Industrial Center off the South- sionary leadership. outpatient facilities — and even a “And by the end of 2008, real es- tion for the failed Unity Studios de- field Freeway and I-96 in Detroit — One of the reasons Henry Ford small funding source for a pro- tate was in a pretty dark place,” velopment; a proposed property with a focus on hiring Detroit resi- won the awards was its “No Harm” posed new home for the Detroit said Nash. tax increase to raise more than dents. campaign. The 4-year-old program Red Wings. If few thought Citizens Republic $2.6 million toward those annual DMS shipped its first product, seeks to reduce medical events Snyder also gave his veto pen a would survive, no one would have bond payments failed in May. instrument panels for the Ford that harm patients. The system re- rare bit of exercise, sending back envisioned Nash being named Allen Park also had an estimat- Mustang, to Ford’s Flat Rock As- ports medical errors, mistakes or to lawmakers the major reforms American Banker’s community ed $6 million in payments to make sembly Plant on July 30. problems and redesigns care to he supported for Blue Cross Blue banker of the year, but that’s what on more than $59 million in total DMS was expected to invest $10 eliminate future events. During Shield of Michigan after Republi- happened in November, when she debt, and an unfunded pension lia- million this year expanding its the campaign, Henry Ford has cut can lawmakers added a provision was honored for shepherding the bility of $24 million, according to a line, including injection molding harm events by 26 percent and that would have required employ- bank’s dramatic turnaround. financial review team that found a equipment and the addition of 10 mortality events by 12 percent. ers holding group health insur- Nash had embarked on a plan to financial emergency. The city’s docking bays. In late October, Schlichting and ance policies to opt-in to abortion get as many troubled loans off the taxable value also fell nearly $250 DMS launched instrument pan- Beaumont CEO Gene Michalski coverage. Snyder said that while books as possible, even if it meant million from 2007 to 2011, when it el assembly of the Ford Taurus announced a merger that could he is pro-life, this provision inter- steady losses. Eventually, $926 mil- was just over $837.8 million. and Explorer last month. The sup- create metro Detroit’s largest sys- fered with the private market- lion was scrubbed. Along the way, Parker is credited with reducing plier is also hiring 180 new em- tem with 10 hospitals, 3,600 beds place. she engineered a reverse 1-for-10 Ecorse’s annual spending by more ployees to begin training for the and $6.4 billion in annual revenue. Earlier this year, Snyder spent a stock split that kept shares priced than $3 million, including raising production of F-150 instrument While experts believe completing good deal of time pushing the Leg- at about $1 and eliminated a threat the contribution of unionized em- panels, which are scheduled to be- the merger will prove challenging islature for authorization to con- of being delisted from Nasdaq. ployees to their health care to the gin production in March. because of differences in workplace struct the New International After 12 consecutive quarterly 20 percent that state officials sug- All told, in 2013 DMS is expected culture, Schlichting is favored to be- Trade Crossing between Detroit losses, in July 2011 the bank broke gest, plus a special assessment tax to ship 1.2 million parts and will come CEO of the new system once and Windsor, but he came up into the black. In July 2012, it re- to raise $1.5 million of extra rev- invest $29 million over the next Michalski retires in two years. short as the Moroun family, which ported a fifth straight profitable enue per year and a traffic detail in three years, creating 500 jobs in In addition to her day job of has heavily financed Republicans quarter, and its best ever, with net the police department that brings Detroit. overseeing a $4 billion nonprofit lawmakers’ re-election cam- income of $297.1 million. in about $150,000 in annual rev- Rush made news again in No- health care company, Schlichting paigns, lobbied against such a bill Bigger news was to follow. In enue. vember after she and a group of serves as a director on 12 boards, and spent millions on television September, Akron-based FirstMerit The city appointed a new ad- other minority-business owners including four since 2011. ads attacking the plan. Corp. (Nasdaq: FMER) announced it ministrator, John Openlander, in met with President Barack Oba- Her new directorships are the Snyder then went to Canada would buy Citizens (Nasdaq: November and expects in January ma after his re-election in Novem- American Hospital Association, the and announced a deal with Cana- CRBC) in a transaction valued at to finalize an interlocal agreement ber. Federal Bank of Chicago Board-De- dian Prime Minister Stephen $912 million, and as part of the deal that will allow a new five-member — Dustin Walsh troit Branch, the Downtown Detroit Harper to build the $2.1 billion would repay the $345 million in fed- transition advisory board to moni- Partnership and the United Way for span that calls for Canada to foot eral Troubled Asset Relief Program tor city decisions and make sure it Southeastern Michigan. the bill. money Citizens owed. maintains a balanced budget. Last year, Schlichting donated — Chris Gautz The deal, expected to close in the In November, Parker held an in- $2 million toward the system’s second quarter, will create a bank formational town hall meeting $250 million Envision Campaign. with $24 billion in assets and more with residents on some of her ear- In her honor, a section of Henry than 5,000 employees at 415 branch- ly restructuring ideas for Allen Ford’s new Innovation Institute es in Pennsylvania, Ohio, Michi- Park . has been named the Schlichting gan, Illinois and Wisconsin. — Chad Halcom Education Commons. — Tom Henderson — Jay Greene 20130107-NEWS--0008-NAT-CCI-CD_-- 1/4/2013 4:55 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 7, 2013 OPINION MARY KRAMER 5 happy thoughts Cleveland travels right line Most developers like million riders in 2008, density. So it’s not sur- its first year, to 4.6 mil- prising that so much lion last year. investment occurs Our sister publication along heavily devel- Crain’s Cleveland Busi- to start the year oped corridors. On ness reports the line has Pages 12 and 13, we of- helped to spur more es, the city of Detroit faces major financial hurdles in fer a summary of 2012 than $6 billion in new 2013, the homicide rate is up and the Pistons and Li- investments along five and planned develop- Y ons continue to disappoint. major corridors in ment — apartments, But not all the news is bad, and so to begin 2013, we’d like to Southeast Michigan: condos, restaurants, Woodward, Michigan, medical research cen- highlight five bits of good news: Van Dyke and Grand ters, offices. A complete The automotive industry continues to thrive. A strong Decem- River avenues and the report and a series of ber is expected to push U.S. vehicle sales to about 14.5 million, busy northern thoroughfare M-59. video reports can be found at crains the best annual total since 2007. According to Crain’s sister It’s a good story, with more in- cleveland.com. formation available online. But af- Now imagine that same kind of publication Automotive News, the 2011 sales rate was 13.6 mil- ter visiting Cleveland last month to service along Woodward Avenue lion. The U.S. averaged 16.8 million light-vehicle deliveries an- ride that city’s bus rapid transit — linking downtown hospitals and Cleveland’s HealthLine bus rapid line, I can see how Southeast Wayne State University to Oak- nually from 2000 to 2007 before dropping to a 27-year low in transit stops look more like light rail 2009 at 10.4 million. Michigan can benefit from even land County and Beaumont Hospi- stations. Fewer layoffs. This is a byproduct of a strong automotive greater investment if our newly au- tal. thorized regional transit system in- If you build it, Cleveland says, industry. As Chad Halcom reports on Page 1, layoffs were vests in BRT. they will come. Today’s RTA in Cleveland is fi- down noticeably last year in Michigan, particularly among The HealthLine is a BRT line on John Ferchill, the Cleveland- nanced by sales tax revenue in ad- manufacturers. According to the state Workforce Develop- Cleveland’s Euclid Avenue, that based developer who revived dition to the fare box. The city’s ment Agency, 54 companies sent notices of plant closing and city’s counterpart to Woodward Detroit’s Westin Book-Cadillac ho- two major health systems also paid Avenue. With dedicated lanes and tel and condo project, was a to have the bus line named the mass layoffs affecting 3,731 employees during the year. That traffic signals programmed to give doubter. HealthLine. compares with 5,701 employees laid off from 56 companies in the buses priority, it doesn’t take “I was dead wrong,” Ferchill Like Detroit, Cleveland has suf- 2011 and just under 5,100 employees let go from 51 companies much more than 20 minutes to says now. “It worked; it got the fered a huge population drop — in 2010. travel the nine-mile route that whole thing to work.” Other devel- from 915,000 residents in 1950 to The figures are posted in compliance with the federal links key sections of downtown opers speak on Crain’s videos fewer than 400,000 in the 2010 cen- and the city’s major health care in- about transit as a catalyst to their sus. Worker Adjustment and Retraining Notification Act, which stitutions — the Cleveland Clinic new projects. But unlike Detroit — at least so requires companies with more than 100 employees to file no- and University Hospitals of Cleve- Joseph Calabrese, general man- far — Cleveland has invested in tice with state and local governments 60 days before building land. More than 100 bus stops have ager of the Greater Cleveland Re- transit as a way to connect neigh- closures or layoffs that affect more than 50 employees. been replaced by 36 stations with gional Transit Authority, credits borhoods, get people to jobs more ticket dispensers and signs that former Mayor, Gov. and U.S. Sen. quickly and attract investment. No more lame ducks. The frenzy and lack of meaningful seem more like light rail stations George Voinovich with being the The new RTA legislation ap- public input and considered thought that accompanied the than bus stops. consistent champion to keep proved in December for Southeast year-end state legislative session was astonishing — 282(!) bills Ridership — especially among pushing for a regional transit Michigan is a big step toward were passed during lame duck and sent to Gov. Rick Snyder “riders of choice” — is up, from 2.6 plan. those same goals. for signature — so we’re glad to have a new start. Possible tipping point. Two long-vacant sites appear to be moving toward redevelopment. Construction is soon to begin on Northville Park Place, a retail and mixed-use development slated for the site of the former Northville Psychiatric Hospi- LETTERS tal, which closed in 2003. And in Royal Oak, the Planning Com- mission has given approval to a hotel-apartment-retail devel- Crain’s Detroit Business opment on the former site of the Jim Fresard automobile Watch abortion clinic practices welcomes letters to the editor. dealership. Real estate development has been slow for several Editor: and destroys a living fetus, it All letters will be considered for years, so the viability of two significant projects is good news. With regard to “Are women sin- would seem that safety would be a publication, provided they are signed and do not defame More Dan Gilbert. Gilbert’s continuing, thoughtfully gle-issue voters?” (Mary Kramer’s prominent concern. column, Dec. 17), it was prominent Abortions, especially those in- individuals or organizations. planned, positive impact on Detroit seems certain to continue. Democrats, not Republicans, who volving girls and young women, Letters may be edited for The importance of personal and corporate money to communi- used to say that abortion should be are often coerced by men, and it length and clarity. ties cannot be overstated. Looking around downtown, it’s easy legal, safe and rare. has been demonstrated that some Write: Editor, Crain’s Detroit to identify the specific contributions of the Ilitch family, Peter Abortion clinics have a history abortion clinics tacitly abet these Business, 1155 Gratiot Ave., of operating with less oversight Detroit, MI 48207-2997. Karmanos and GM, for example. We need more of it. For more coercive tactics. Are these prac- and regulation than many other tices pro-women? Email: [email protected] on Gilbert, see his profile as one of Crain’s top Newsmakers of clinics and hospitals. Since abor- Thomas Doran 2012 on Page 6. tion is a procedure that expunges Plymouth

KEITH CRAIN: This will be a year of political turmoil Forget about Washington. Politi- truly sad. seven out of nine City Citizens will have someone to call real issues of Detroit. cians are proving every minute But Washington isn’t Council members will who is accountable to them. It will Those races may, in fact, be- that any sense of bipartisan coop- alone. We just have to be elected by district; be fascinating to watch how this come moot if by then the city has eration has long ended. Not only look at our city govern- two will be selected in changes the entire political system. an emergency manager. If an EM do the Republicans have a prob- ment in Detroit to see citywide elections. And we’ll have another inter- is appointed by our governor, it lem, but it appears Democrats that it’s dysfunctional, That is going to esting race for mayor. Whether won’t really matter who is elected, have just as much of a problem. as well. And we should change the entire char- Dave Bing decides to run for re- because they will have no power. Our national government, in- probably put Wayne acter of the council. Fi- election is still an unknown, but Many folks in Michigan are sure cluding our congressional delega- County government into nally, residents of De- one thing is for sure: It will be a that an EM will be running De- tion, seems to have lost any ability that same hopper. troit will have local — very muddy race, with charges of troit; it’s only a matter of time. to get along while steering the Detroit is going to and I mean really local racism already surfacing. It will No one has a very good crystal country out of a recession. For have some elections this — representatives who be very interesting to see whether ball, but one thing is certain. anyone watching Washington year; both the City will have to be con- the candidates — and there will be It’s going to be ugly with lots of function — or lurch along in Council and the mayor will be up cerned with the problems of their plenty of them — can rise above mudslinging. But it’s going to be a state of dysfunction — it is for election. And for the first time, districts if they want to get elected. the issue of racism and debate the interesting. 20130107-NEWS--0009-NAT-CCI-CD_-- 1/4/2013 12:27 PM Page 1

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: State needs to grow educated middle class

Michigan may have invented tain or create knowledge-based en- those with the highest proportion vibrant central cities — with in- the American middle class. terprises. To prosper, Michigan of adults with at least a four-year creased funding for basic services Through a combination of corpo- must make preparing, retaining degree. The policy agenda to cre- and key amenities like transit, the rate innovation and strong unions, and attracting talent the top eco- ate a knowledge-based Michigan is arts and outdoor recreation. Michigan for most of the last cen- nomic development priority. focused on public investments in Right-to-work is the wrong di- tury was a place where both own- Gov. Rick Snyder knows this. education and quality of place, rection. So are business tax cuts. ers and workers prospered. It was Last year in a special message on with a particular emphasis on What Michigan needs are more where most anyone willing to talent, he observed: “In the 20th higher education and central college diplomas. The path back to work hard could achieve the century, the most valuable assets cities. The first is to prepare prosperity requires that our lead- American Dream. to job creators were financial and Michiganders for the economy of ers focus on growing the middle That is what makes what hap- material capital. In a changing the future, the second to retain and class, not shrinking it. That re- pened in December so profoundly Mark Bernstein Lou Glazer global economy, that is no longer attract talent, which increasingly quires a governor and Legislature disappointing. By passing right-to- the case. Today, talent has sur- is choosing big metros anchored focused on moving toward Micha- work legislation and another round ply, in a flattening world where passed other resources as the dri- by vibrant central cities. gain, not Michissippi. of business tax cuts, policymakers work can increasingly be done ver of economic growth.” It means favoring public invest- Mark Bernstein is a University of gave up on re-creating Michigan as anyplace by anybody, the places Michigan must get better edu- ments rather than tax cuts, revers- Michigan regent. Lou Glazer is a place with a strong middle class. with the greatest concentrations of cated. Nearly all the states and re- ing a decade of decline in higher ed- president and co-founder of Michi- Instead they chose to position the talent can more easily attract, re- gions with the highest incomes are ucation funding and helping create gan Future Inc. state to compete for low-wage jobs with the likes of neighboring Indi- ana and Mississippi. The facts are compelling. From 2000 to 2010, as the domestic auto industry collapsed, Michigan fell from 18th to 39th in per capita income. Of the 11 states with lower per capita income than Michigan, eight are right-to-work states, and all are small government/low tax states. Except for Utah, they not only have the lowest personal income, but also high poverty rates and, most importantly, low college attainment rates. Michigan can do far better. With the right policies, Michigan can again be a place with a growing middle class. The state starts with enormous assets, including one of America’s best public higher education systems and a concentration of world-class engineering and design connected to the auto industry. To become a high-prosperity state again, Michigan will have to transition from a factory-based economy to one that is knowledge- based. This is where job growth is Local matters. the strongest and wages are the highest. But, you already knew that. What most distinguishes successful states from Michigan is their concentrations of talent, where talent is defined as a combination of knowledge, creativity and entrepreneurship. Quite sim-

TALK ON THE WEB Re: Grant lets Detroit Public Library catalog Coleman Young’s papers A great opportunity to study a significant period of Detroit’s history. Archivist We like this state. No, we love this state. It’s who we are. It’s what drives us. Re: New dean at EMU shares business school’s syllabus for 2013 We also like proving that a bank from right here is better for your business. Mr.Tidwell hit the bull’s-eye by Not always an easy task. There isn’t a mold, only a model — work harder. putting a stronger effort towards the alumni. Because local matters today and tomorrow. Thanks for letting us prove it. Bob Soul

Re: Michigan may be short revenue Personal r Mortgage r Business r Commercial for next budget Surprise! Surprise! You cut revenues (taxes) and you have less to Partner with us today. spend. And like the good business- people they are, they cut invest- (888) 324-4100 ment for future growth (education) flagstar.com/business rather than look for ways to increase revenues. Very simple, in- Like us on crease the rates to what they were when Engler left office and there Member FDIC was a surplus. Dr. E 20130107-NEWS--0010-NAT-CCI-CD_-- 1/4/2013 12:34 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 7, 2013

NOMINATIONS SOUGHT FOR BIGGEST DEALS, M&A AWARDS Abortion clinics brace for new rules Involved in a merger or Ⅲ Dealmaker of the Year/buyer- acquisition in 2012? You might seller. be eligible for Crain’s M&A BY JAY GREENE don, R-Lake City, increases safety or incinerated with other medical Ⅲ Dealmaker of the Awards or Crain’s Biggest Deals CRAIN’S DETROIT BUSINESS standards for women and sets other waste and bans the use of telemedi- Year/adviser: M&A experts, of 2012. operating requirements on abor- cine for medications that induce lenders, CPAs, consultants and Operators of the estimated 32 tion providers that advertise ser- abortion. attorneys, among others, are clinics that offer abortion services vices. He said the bill exempts abor- “Telemedicine is just starting to Biggest deals eligible. Ⅲ Lifetime in Michigan are studying a new law tions performed in physician be used for abortion services,” Lam- Deals of $10 million achievement: Senior- signed by Gov. Rick Snyder last offices. erand said. “This will reduce access or more in level executive who month that requires the facilities to In 2011, there were five complica- to abortion services for women in transaction value has been involved in become licensed as outpatient tions reported at abortion clinics 21 rural counties.” initiated or closed significant surgery centers. with a complication rate of 3 per Lamerand said abortion clinics during 2012 will be transactions and has published in the Jan. The legislation — now Public Act 10,000 from 2008 to 2011, said the already provide counseling and made a significant 28 issue. 499 — could put out of business or Michigan Department of Community screening services for coercion and impact on the financially strap some clinics be- Health. Overall, there were 23,366 have guidelines for the safe dispos- To be considered, community. Does not cause of the high cost to convert induced abortions in 2011, a 0.25 al of fetal tissue. the buyer or sold have to be retired. company or company into a surgery center, said Lori percent increase from 2010, said “The decision to terminate a Applications are at unit must be in Lamerand, CEO of Ann Arbor- DCH. pregnancy is a big one, and we www.crainsdetroit Oakland, Wayne, Macomb, based Planned Parenthood of Mid and Under the legislation, health fa- make sure the woman is comfort- Washtenaw or Livingston .com/nominate. The deadline is South Michigan, which operates four cilities or abortion clinics that ad- able in making the decision and counties. Jan. 21. clinics in Michigan that conducted vertise abortion services and con- will not regret it later,” she said. “If Information needed is: buyer, Winners will be profiled in the 5,000 abortions last year, nearly 25 duct more than 120 surgical we find a woman is not confident sold unit, transaction value, March 25 issue of Crain’s and percent of all abortions in Michi- abortions per year must become li- about the decision, we suggest she advisers, revenue of sold unit, honored at an event May 1. gan. censed freestanding surgical outpa- not do the procedure.” date the deal closed if it has For questions concerning the “The sort of surgeries that hap- tient facilities by March 31. However, sometimes a woman ac- closed and any explanatory nomination process, contact pen at an outpatient surgery center Waivers may be granted to facili- knowledges she has been pressured information. Executive Editor Cindy Goodaker are more (complicated) than abor- ties that are in operation as of De- into the decision to seek an abor- Please e-mail by Jan. 14 to at [email protected] or tion procedures. It is very expen- cember 2012. Under current state tion, Lamerand said. Executive Editor Cindy Goodaker (313) 446-0460. sive and sets the bar high for com- law, only four abortion clinics are “In some cases, a woman admits at [email protected]. For help in using the nomination pliance when it is not needed” to required to be licensed, said the to being battered. We counsel her form, contact Events Coordinator Kacey Anderson at ensure patient safety, said Lam- Michigan Department of Licensing and about it,” she said. “She says if I go M&A Awards [email protected] or (313) erand. Regulatory Affairs. home without this being done, he 446-6786. Two of Planned Parenthood’s four “We are hoping for common will kill me. Under those circum- Crain’s Detroit Business and the Detroit chapter of the The Detroit chapter of ACG is clinics — in Ann Arbor and Kalama- sense waivers to be granted,” said stances, we will do the abortion.” Association for Corporate Growth part of a global association of zoo — are already licensed as outpa- Lamerand, noting that many clinics Lamerand said the legislation will honor companies and professionals involved in tient surgery centers, Lamerand have hallways that are narrower only requires abortion providers to individuals in the following corporate growth, development said. A third center in Flint will seek than are allowed under surgery read a script, which will be pre- categories: and mergers and acquisitions. a license and the fourth clinic in De- center regulations. pared by the Department of Com- Ⅲ Best Deal of the Year: Two The local chapter formed in troit offers medications to induce The bill also seeks to prevent co- munity Health, to the woman. categories: Under $100 million 1984. abortions, she said. ercive abortions by screening pa- Jay Greene: (313) 446-0325, and $100 million or more. Deals For more information, see Snyder said House Bill 5711, tients for their reasons, requires fe- [email protected]. Twitter: must have closed in 2012. chapters.acg.org/detroit. sponsored by state Rep. Bruce Ren- tal remains to be cremated, buried @jaybgreene

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January 7, 2013 CRAIN’S DETROIT BUSINESS Page 11 ProNAi raising VC to fund phase-two cancer studies, looks to possible sale

BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

As a result of what it is consid- ers an excellent outcome from a recent phase-one study of its leading cancer drug, ProNAi Therapeutics Inc. of Plymouth Township is raising $5 million in venture capital to fund two phase-two studies and pave the way for a possible sale next year. Company President and CEO Mina Sooch said if those studies go as expected and produce similar results to those from the phase-one study, the company could be sold in the third or fourth quarter next year to one of the pharmaceutical companies to which she has been LON HORWEDAL talking. ProNAi is a pre-revenue President and CEO Mina Sooch said potential buyers of ProNAi Therapeutics Inc. company, and the goal is to sell it are waiting to see study results for the company’s leading cancer drug. to a large pharmaceutical firm. “I’ve met with more than 20 Charles Nowiszewski Professor of pharmaceutical companies, and Cancer Biology at Harvard Univer- they’re awaiting results,” Sooch It’s a platform sity and chief scientific officer and said. “ vice president for research at Chil- The first of the phase-two stud- technology that will dren’s Hospital Boston, Harvard Med- ies began before Christmas at St. ical School’s pediatric teaching hos- John Providence Hospital on the east allow (ProNAi) to pital. side of Detroit. The principal in- “I’d heard about the company vestigator on that study of nine-15 target many other and knew they were doing novel patients with non-Hodgkin’s lym- things, but there are a lot of com- phoma will be Ayad Al-Katib, M.D. genes and, panies out there doing novel The second of the phase-two things,” said Zetter. He was intro- studies, of six to nine patients with consequently, many duced to ProNAi’s work a year ago a subset of non-Hodgkin’s lym- by its vice president of product de- phoma, will occur this year at a other cancers. velopment, Wendi Rodrigueza, a site or sites to be determined. ” former scientist at Ann Arbor- Bruce Zetter, Harvard University Need growth When businesses face the organic demands The phase-one study, of 22 pa- based Esperion Therapeutics Inc., the of growth, purchasing goods, or even to tients with a variety of solid-tumor maker of a successful cholesterol capital? make payroll, Crestmark’s service and cancers, was conducted in Texas, chairman of the Ann Arbor-based drug that went public in 2000 and innovative working capital solutions can be and results were presented in No- Michigan Venture Capital Association was bought by Pfizer Inc. in 2003. the answer. vember at the annual Symposium in 2009-10, replaced current board Rodrigueza designed the fatty lion Molecular Targets and Cancer member Charles Bisgaier as presi- posome coating for PNT2258 that is Providing accounts receivable financing and Therapeutics in Dublin. The sym- dent and CEO in July. In May, the at the heart of PNT2258’s success asset-based lending to small- and mid-sized posium was hosted by the European company had moved its headquar- in animal and human trials. Most businesses nationwide for over 16 years. Organization for Research and Treat- ters from Kalamazoo to the Michi- cancer drugs are so toxic they ment of Cancer, the National Cancer gan Life Science and Innovation Cen- can’t be put into the bloodstream Contact us today! Institute and the American Associa- ter in Plymouth Township. for fear of causing systemic dam- tion for Cancer Research. While researchers in the phase- age. They are put directly into tu- www.crestmark.com Matt Dekutoski Phase-one U.S. Food and Drug Ad- one study were monitoring pa- mors, but they then miss other 888.999.8050 Anntreal Hemmingway-Smith ministration studies are designed to tients for would-be side effects of cancer cells that may be circulat- test safety only. ProNAi’s drug, PNT2258, they also noticed signs of ing in the system. with the working name of efficacy in many patients, and dra- Messmann said the fatty coating PNT2258, showed little or no toxic- matic benefits in some patients, keeps the drug from being at- ity, which is extremely rare for a said Richard Messmann, ProNAi’s tacked by white blood cells in the cancer drug. chief medical officer and designer blood and later helps the drug pen- The “NAi” in the company’s of its studies. etrate the surface of tumors and name comes from the industry Messmann is cancer cells when it finds them. term “DNAi,” which is short for a former deputy “When they got their safety Let Olympia Entertainment DNA interference, a way of using associate direc- data, that’s when I really got inter- single strands of DNA to target tor at the Na- ested in the company,” said Zetter. specific disease-causing genes, in tional Cancer “Historically, cancer has been at- add the Sparkle to your Season this case the gene BCL-2, which Institute, for- tacked with broad-acting poisons produces a cancer-causing protein. mer director of with strong side effects, like hair Unforgettable Holiday Celebration Ideas to Fit Every Size and Style The company was founded in cancer research loss, stomach problems and ane- For a list of ideas visit: OlympiaEntertainment.com/HolidayParties 2004, though it traces its history to for the Great mia. ProNAi has been able to use 2001 and to the work of Reza Lakes Cancer In- small pieces of DNA to bind to Messmann Sheikhnejad, a scientist at Wayne stitute at Michi- genes without side effects. State University and the Karmanos gan State University and, most re- “And they got efficacy, too, Cancer Institute. cently, vice president for medical which you don’t usually get in WSU and Karmanos declined to affairs at West Lafayette, Ind.- phase one. It’s a company poised pursue patents on Sheikhnejad’s based Endocyte Inc., which went to do really good things. There work, so he funded a patent him- public in February 2011. aren’t any competitors in their self and assigned it to ProNAi, an Benefits included decreased space, and it’s a platform technolo- early portfolio company of Apjohn white cell counts, a reduction in gy that will allow them to target Ventures in Kalamazoo. activity by the protein produced many other genes and, conse- Sooch was a co-founder at by BCL-2, and either the shrinking quently, many other cancers.” Apjohn who closely monitored of some tumors or a halt in the Sooch said that if the company ProNAi’s progress over the years growth of tumors that would nor- isn’t sold after the next two small and helped it with fundraising, mally be expected to grow, he said. phase-two studies, she plans to Creating Championship Level Events which has reached about $20 mil- The results were so good, and so raise $10 million to do a much larg- Call For Details: 313-471-3333 lion, much of it from angel in- surprising, that they caught the eye er study of 90-120 cancer patients vestors and about $5 million from of a noted Harvard University re- at 20-25 centers here and abroad. the state of Michigan. searcher and professor, Bruce Tom Henderson: (313) 446-0337, Sooch, a member of the 2007 Zetter, who has since joined ProNAi [email protected]. Twitter: class of Crain’s 40 Under 40 and as a scientific adviser. Zetter is the @tomhenderson2 20130107-NEWS--0012-NAT-CCI-CD_-- 1/4/2013 12:05 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 7, 2013 Busy corridors Heart of Detroit gets spotlight, but arteries draw development, too

BY RYAN FELTON SPECIAL TO CRAIN’S DETROIT BUSINESS 75 Pontiac While economic development in 59 Howell downtown Detroit — from Cork- Woodward town to Midtown to West Village Troy Van Dyke — was big news in 2012, the activi- 96 ty along the arteries that radiate Grand River from downtown and into the sub- 696 urbs was worth noting as well. Farmington Based on Crain’s estimates, 85 Here’s a look at where major projects along and near five some developments are 94 corridors — Woodward Avenue, concentrated outside 96 of Detroit in Southeast Grand River Avenue, Van Dyke 275 Detroit Michigan. ANDREW TEMPLETON/CRAIN’S DETROIT BUSINESS Avenue, Michigan Avenue and Dearborn BAE Systems’ Ann Arbor, and M-59 and the city Michigan Michigan operations of Troy — accounted for at least center (above) and Ann Arbor $3.75 billion in investment last 94 75 the General Motors year and at least 13,000 jobs creat- Co. Innovation Center ed or announced. CDB (left) are in the Van Trends that emerged: Dyke Avenue corridor. Along Woodward there was an 34300 Woodward. mission tentatively approved a $40 influx of restaurants and retail “It’s the second year we’ve had million to $45 million mixed-use outlets, with at least 1,500 jobs cre- more businesses open than close,” development at 400 N. Main St., ated from Detroit to Pontiac. said John Heiney, executive direc- which would include a new 114- Van Dyke showcased a cluster tor of the Birmingham Principal Shop- room hotel. The construction of investments in manufacturing ping District. “Our (2012) retail oc- would also include an eight-story facilities for the auto and defense cupancy rate of 96.63 percent is the apartment building with 82 apart- on Van Dyke in Warren. The pro- industries. highest that it has been since we ments, and a five-story office Van Dyke Avenue ject, already begun, is expected to Grand River saw an array of in- started tracking in 2000.” building attached to the hotel. At least $600 million was invest- create nearly 200 jobs. vestments in developments, such Other projects of note: ed in a 14-mile stretch of Van Dyke as the construction of the new Uni- Magna International Inc. an- Avenue, and at least 4,700 new jobs versity of Michigan Ambulatory Health nounced plans to expand its Magna were announced for projects most- Center in Northville Township. In Seating of North America plant in ly in automotive and defense. Novi, there was a new Walmart, Highland Park. The $2.2 million in- Roughly one-third of the jobs and this summer there will be a vestment was expected to create created are attributed to General 126-room Hyatt Place Hotel. 244 jobs. Motors Co., which announced in Michigan Avenue saw more Ferndale saw a continued in- October it would hire 1,500 em- than $3 billion in investment, a flux of new restaurants, including ployees for its Innovation Center large chunk of which was the near- One Eyed Betty’s at 175 W. Troy Ave. ANDREW TEMPLETON/CDB in Warren. The jobs would be cre- ly $1.4 billion Severstal International and Local Kitchen and Bar at 344 W. Art Van Furniture is adding on in Royal ated over the next three years. spent to renovate its Dearborn Nine Mile Road. Ferndale also saw Oak. Other notable projects: plant. the opening of Woodward Imperial, a ANDREW TEMPLETON/CDB Chrysler Group LLC announced A Menards is coming to this site. M-59 and the city of Troy had taco bar whose owners last month Art Van Furniture Inc. an- a $165 million investment in its projects that ranged from automo- received a liquor license for the nounced a $1 million, 13,000- Sterling Heights assembly plant to Urbana, Ill.-based Flex-N-Gate tive and defense to residential to Ferndale Public House at 241 W. Nine square-foot design center addition create a state-of-the-art body shop. Group announced a $30 million in- retail and restaurants. Mile Road. to its flagship store on Woodward AGS Automotive Systems, an au- vestment to its Warren-based auto- Below is a roundup of some of The long-awaited 350,000- in Royal Oak. tomotive bumper maker and motive parts manufacturing plant. the projects. For more, see square-foot Gateway Marketplace, at In Berkley, the 91-year-old hot stamping/plating services suppli- The investment is expected to cre- crainsdetroit.com. Woodward Avenue and Eight Mile rod hangout Vinsetta Garage re- er, announced a $21 million invest- ate 100 jobs. Road in Detroit, opened as a restaurant, and Crispel- ment into an idled BorgWarner Inc. broke ground in li’s Bakery & Pizzeria earned a spot plant. The new operation is expect- May. The projected on the Detroit Free Press’ list of top ed to add up to 90 jobs. Michigan Avenue/U.S. 12/ $71 million devel- 10 new restaurants of 2012, as did BAE Systems opened its Michi- Ann Arbor opment is sched- the Social Kitchen and Bar at 225 E. gan operations center, creating uled to be complet- Maple Road in Birmingham. more than 300 jobs. Investment along Michigan Av- ed this spring. The West Construction Services, a Fori Automation Inc. could add enue was almost entirely driven space is 85 percent Pontiac-based developer, opened up to 50 jobs at its recently com- by the automobile industry. occupied and will the 80,000-square-foot redevelop- pleted 18,000-square-foot assembly The 32-mile stretch from Dear- include retailers ment Lafayette Place inside the plant in Shelby Township. The born to Ann Arbor saw roughly 15 such as Grand former home of the Sears, Roebuck company plans to hire as it contin- significant projects during 2012, Rapids-based Meijer & Co. in Pontiac. The project in- ues to diversify its customer base. but the investments accounted for Inc. and Framing- cludes 46 high-end apartments, a Century Plas- nearly $1.67 billion of activity. ham, Mass.-based new market and tics Inc. invested The vast majority stems from ANDREW TEMPLETON/CDB Marshalls Inc. new fitness cen- $1.7 million in its Severstal North America, which com- Walgreens will open in the former Borders location on MacLean-Fogg ter. West also an- Shelby Township pleted a $1.4 billion renovation of Woodward Avenue in Birmingham. Component Solutions nounced plans to operation. The its Dearborn-based plant. announced in Sep- renovate the move created 90 Other projects include: tember a 20,000-square-foot expan- Strand Theatre in jobs. A $30 million project an- Woodward Avenue sion at its decorative wheel fasten- downtown Ponti- An estimated nounced in September to construct er division in Royal Oak. It will ac for at least $7 15 new restaurants See Next Page Restaurants and retail drove in- create 20 new jobs by the time the million, with and retail outlets vestment along Woodward Avenue renovation is complete, according plans to have it were built or last year, with at least 50 new busi- to a release from the company. open by next year. opened in Shelby nesses opening along the 25-mile Beaumont Health Systems be- St. Joseph Mer- Township, includ- stretch from Detroit to Pontiac. gan seeking approval to build an cy Oakland broke ing a second Pan- Woodward saw about $180 mil- $18 million neuroscience center on ground on a era Bread, Bagger lion in investment, projected to its Royal Oak campus. The plan is $129 million pa- Dave’s, Fred’s Pizza create at least 1,500 jobs, according for the 80,000-square-foot, three- tient tower. The and Sahara Restau- to Crain’s estimates. story center, if approved, to be op- 301,000-square- rant & Grill. In Birmingham alone, at least 30 erational by the end of 2014. The foot, eight-story Eau-Claire, restaurants and retail outlets building would consolidate ser- building will have Wis.-based Menard COURTESY OF SEVERSTAL NORTH AMERICA opened during 2012. Notable vices scattered throughout the 136 private rooms ANDREW TEMPLETON/CDB Inc. announced Severstal North America completed a among them was a Walgreens mov- hospital. and 72 additional St. Joseph Mercy Oakland’s construction of a $1.4 billion renovation at its Dearborn ing into the closed Borders store at The Royal Oak Planning Com- beds. patient tower takes shape. $20 million store facility during 2012. 20130107-NEWS--0013-NAT-CCI-CD_-- 1/4/2013 12:08 PM Page 1

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 13

based wellness services company, nounced plans to spend almost $35 also 15 detached single-family con- plans to invest $11.4 million in re- million on its Howell plant to add do permits issued. locating to Novi and expanding its new equipment and shipping There were at least 10 restau- new building. The company ex- docks. The company expects to cre- rants constructed in Clinton pects to add 252 jobs. ate 78 new jobs. Township, based on Crain’s esti- Other notable projects: mates, including Shish Kabob Ex- Panasonic Automotive Systems press, Teppanyaki Grill and Marquee Co. of America was approved for a M-59/Troy Marque Pasties. $500,000 incentive by the Michigan There were at least 45 new pro- Other projects of note: Strategic Fund to expand in Farm- jects — many of which are invest- Alternative Automotive Technolo- ington Hills. The company plans to ments in manufacturing plants — gies in Troy received a $500,000 in- spend more than $8 million to in Troy and along M-59 between centive for plans to add 176 jobs. COURTESY OF UNIVERSITY OF MICHIGAN-DEARBORN build a research and development Rochester Hills and Clinton Town- Old Dominion Freight Line Inc., An architectural rendering shows the Union at Dearborn apartment project near the center in the city and expects the ship, totaling about $75 million also in Troy, moved into two build- University of Michigan-Dearborn. project to create nearly 60 jobs. and 3,100 jobs. ings the company rehabilitated for Ascendant Mdx Inc. in Farming- While major development along $5 million that will be the new De- From Previous Page which will aid in hiring 30 employ- ton Hills said it plans to invest $3.7 M-59 was found in manufacturing, troit-area headquarters. a 145-unit apartment complex near ees. million in the company and add 162 there were many restaurants and Granite City Food & Brewery the University of Michigan-Dearborn. Barracuda Networks Inc. moved jobs over the next few years. retail outlets, with the biggest opened its first Michigan location The plan to convert a former Ford into the vacated Borders Group Inc. Mahle Industries Inc. said it clusters in Troy and Clinton in Troy. Steven Wagenheim, presi- Motor Co. diagnostics center into flagship store in Ann Arbor. The plans to expand its research and Township. dent and CEO of Minneapolis- the new Union at Dearborn is ex- MEDC approved a $1.2 million in- development center in Farming- Over the past year, Troy had six based Granite City Food & Brewery pected to be completed by the fall centive for the move. ton Hills. The company also plans residential projects in the works Ltd., told Crain’s in November that semester. It will house about 500 to invest $11 million to move its op- or completed, totaling 153 new con- the Troy operation has the highest people. Grand River erations from Novi to Farmington dominium units, according to volume out of the 27 restaurants in Dearborn Heights-based Ar- Hills after purchasing the former Glenn Lapin, economic develop- the system. The new location cre- mored Group, which supplies There were 15 large projects Nailco Group Inc. next door to the re- ment specialist for the city of Troy. ated 150 jobs. SWAT vehicles and armored vehi- along the Grand River Avenue cor- search center. The company ex- Troy also made headlines in cles to governments, plans to in- ridor in the 35-mile stretch from pects to bring 350 employees to the 2012 for breaking ground in No- vest $1.5 million to expand its lo- Farmington to Howell, accounting new campus after the move. vember on a $6.3 million Multi- cal operations. Along with an for $197.2 million in investment Henrob Corp. announced it Model Transit Facility. announcement of being awarded and more than 1,000 jobs, accord- would move from Livonia to Lyon Clinton Township had an up- $1 million in state assistance, Ar- ing to Crain’s estimates. Township and plans to invest swing of residential permits in mored plans to hire up to 240 new Investment came from a mix of $68.5 million and add 154 jobs. 2012. There were 71 single -family employees. sectors, mostly commercial, retail The Subur- residential Ford announced plans to in- and health. ban Collection home permits vest $59 million in its Wayne oper- The most notable health sector Showplace broke issued, up from ations to build gasoline-powered, project is the University of Michigan ground on a 126- 47 in 2011, ac- battery-electric, hybrid-electric Health System’s new outpatient clin- room Hyatt Place cording to and plug-in hybrid electric vehi- ic in Northville, expected to open Hotel expected to Michael Gen- ANDREW TEMPLETON/CDB cles on the same line. next year. The number of expected open this sum- try, superinten- Granite City Food & Brewery in Troy is new The Ann Arbor-based National jobs that the $39 million project mer. dent of the Clin- to Michigan. Center for Manufacturing Sciences will bring wasn’t disclosed. The The sheet ton Township announced plans to create an inno- new primary and specialty health stamping com- COURTESY OF SUBURBAN COLLECTION SHOWPLACE building de- Nexteer Inc. opened a new vation center on General Electric center is expected to open in 2014. pany Ogihara A rendering shows the new Hyatt Place partment. He 30,000-square-foot customer ser- Co.’s Van Buren Township cam- Summit Health Inc., a Southfield- America Corp. an- Hotel at Suburban Collection Showplace. said there were vice center in Troy in April. pus. The investment is supported by $2 million in grants and donations. The plan is for the center to help accelerate manufacturing in Michigan. When the spark of imagination meets up with the talent to harness its potential, the possibilities

COURTESY OF HYUNDAI Hyundai’s testing center expects to add are endless. about 50 jobs in the next few years.

Hyundai America Technical Cen- ter Inc., Superior Township, opened a testing center to help ex- amine the effects of extreme hot and cold temperatures for vehicle development. The company expects to add about 50 jobs over the next few years. 618 South Main LLC, led by developer Daniel Ketelaar, announced plans to invest $37 million in the area surrounding 618 S. Main St., according to a release. Plans include constructing a new apartment complex in downtown When you’re serious about intellectual property law… Ann Arbor, as well as renovations around the immediate area. A new $50 million project was That’s why companies that are serious about innovation select Brinks. announced from J Bradley Moore & Associates Architects. The proposal In intellectual property, having a trusted partner is important … a partner includes constructing a new apart- with unparalleled skill in IP law, litigation and protection. At Brinks, ment building in downtown Ann Arbor. we’re as serious about your success as you are in achieving it. From Cataphora Inc., a California- based software firm, received a inspiration to innovation, small sparks to big successes, you need a 866.222.0112 $300,000 grant from the Michigan team committed to guiding you onward and upward. usebrinks.com Economic Development Corp. to expand its Ann Arbor operations, according to a release. The company Detroit Ofﬁce: Suite 1775 | 300 River Place Drive | Detroit, MI 48207 | 313.393.5400 plans to spend two-thirds of that money over the next few years, 20130107-NEWS--0014-NAT-CCI-CD_-- 1/4/2013 11:31 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 7, 2013 DTE waits for state’s decision on ‘smart-meter’ opt-out plan We are pleased to BY JAY GREENE stalled. monitor power outages and usage CRAIN’S DETROIT BUSINESS Some 154 people have declined — has been controversial from the announce the opening of to have the meters installed, out of beginning as consumer groups A DTE Energy Co. official said the 1,200 that were not installed for have alleged environmental and our Chicago office Detroit-based company is waiting various other reasons, including health hazards from radio frequen- on a decision this spring from the lack of access to property, cies emitted by the meters. Michigan Public Service Commission Sitkauskas said. The refusals were More than 10 locales in Michi- before it can charge customers made by the customers at the time gan have moratoriums on smart who want to opt out of its new elec- of installation, he said. meters, including Oak Park, And to welcome our tronic wireless Once the commission approves Southfield, Warren and Sterling meter program. and the opt-out program begins, Heights. newest shareholder, On July 31, said Sitkauskas, “If we have a The MPSC said in a June report DTE submitted refuse-to-install order, we won’t that smart meters pose insignifi- its “smart me- install it. … They will be cant health hazards and are more Thomas P. Arden, ter” opt-out plan charged.” accurate. DTE says the radio emis- to the PSC. Once DTE has installed more than sions are similar to those from shareholder- in- charge of approved, the 900,000 smart meters for electric garage door openers. plan would give customers and modules for gas Several dozen DTE customers customers the customers in Oakland County and have complained to the MPSC the Chicago office. option, for a Sitkauskas parts of Washtenaw County. It is about smart meters, and some say preapproved fee, beginning installation in Monroe they have developed health prob- to deactivate a smart meter that al- County. DTE expects eventually to lems, including higher blood pres- ready has been installed or to de- install about 4 million of the ad- sure and dizziness. cline to allow one to be installed, vanced meters. Elizabeth Sipfle of Oakland said Bob Sitkauskas, DTE’s manag- The charges would be to cover County said last summer she tried YOUNG BASILE. er of advanced meter infrastruc- the costs of installing a new digital to have DTE remove a smart meter Advisers to the world’s most innovative companies. ture. meter, or deactivating the smart that was installed at her house. DTE has proposed charging cus- meter, and for the labor required “I have been having constant tomers who opt out an initial $87 to manually read the meters, he health issues since it’s been in- and monthly charges of $15. The said. stalled,” Sipfle said. MPSC could approve the program Consumers Energy Co. said it will DTE officials say they cannot re- ANN ARBOR TROY SILICON VALLEY CHICAGO at lower rates. install up to 60,000 meters by the move smart meters and start Under the proposed program, end of this year and eventually 1.8 charging customers until the PSC www.youngbasile.com Sitkauskas said, customers would million in its service area. Con- makes a ruling on the opt-out pro- receive letters some 90 days before sumers has not filed an opt-out gram. installation, telling them to con- plan with the MPSC. Jay Greene: (313) 446-0325; tact the DTE call center if they do The smart-meter program — [email protected]. Twitter: @jay- not wish to have a smart meter in- which allows utilities to remotely greene. Telemus reorganization allows ex-CEO Robinson to manage new hedge funds

BY TOM HENDERSON the reorganization: He wanted to joined Telemus in 2007 to run an CRAIN’S DETROIT BUSINESS devote all his time to investment de- acquisition, Ann Arbor-based Bea- cisions, and by spinning the funds con Investment Co. He later became Southfield-based Telemus Capital off from Telemus, they are opened Telemus’ CEO and chief invest- Partners LLC, a wealth management up to institutional investors and ment officer. firm, has been restructured to free other wealth managers. “Jim Robinson is well thought up former CEO Jim Robinson from “The guys at Wells Fargo, for ex- of, both in Michigan and around administrative duties to allow him ample, aren’t going to use a fund the country,” said Peter Schwartz, to devote his owned by competitors. They might a principal in the Bloomfield Hills time to manag- under the new arrangement,” wealth management firm Gregory J. ing two new Robinson said. Schwartz and Co. Inc. His father hedge funds. He said both funds had returns founded the wealth management The hedge of more than 10 percent in 2012. He firm as well as Bloomfield Hills- funds have been said the plan is to grow them from based Schwartz Investment Trust, spun out from about $50 million each to about which runs six publicly traded Telemus and $100 million apiece over the next mutual funds. will be operated 12-18 months. “There will be a welcome for under the aus- “With our success, I think Jim by people who have followed pices of a new le- Robinson there’s a great institutional audi- him at his various stops. This is an gal entity, Robin- ence out there,” said Robinson, opportunity for him to leverage son Capital Management LLC, which who said he has started to get the his own brand and to have his began operating last week. word out to the names in his exten- shingle on the door, and I’m sure Robinson Capital Management sive Rolodex that he is open for he’s going to do very well,” and its five employees will retain business. Schwartz said. space in Telemus’ headquarters in “At the end of the day, we’re Robinson’s administrative du- the 2 Towne Square building. Tele- hedge funds, and most endow- ties at Telemus will be shared by mus will not have an equity stake in ments and institutions have only X partners Gary Ran, Lyle Wolberg, the new company, but its clients will amount of money allotted for alter- Robert Stone, Mary Bakhaus and get a discount on management fees native investments,” he said. “We Joshua Levine. No replacement if they invest in Robinson’s funds. think we’ll have a competitive sto- CEO will be named. The funds, formed three years ry to go after that money. We’ll see Robinson will continue to serve ago, had been known as the Tele- how many plans are willing to as Telemus’ CIO on an outsourced mus Income & Principal Preservation make an allocation shift to us.” basis. Fund and the Telemus Growth & In- Robinson, who was CEO of Tom Henderson: (313) 446-0337, come Fund. Birmingham-based Munder Capital [email protected]. Twitter: Robinson cited two reasons for Management from 1999 to 2004, @tomhenderson2 20130107-NEWS--0015-NAT-CCI-CD_-- 1/4/2013 10:10 AM Page 1

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 15

CALENDAR

TUESDAY Networking, lunch and a presentation BREAKFAST WITH INFORUM on the current economic outlook, with JAN. 8 a focus on the economic forecast for Michigan. With Andy Dillon, Michigan Creating Beneficial Relationships AND SERGIO MARCHIONNE treasurer. The Dearborn Inn, Dear- with Customers, Contractors and Sup- Join Inforum born. $44 CREW member, $56 non- pliers. 9 a.m.-noon. Witzke Berry for its 11th member. Register by Jan. 9 or pay $10 Carter & Wander PLLC. Learn how to Annual Auto fee. Contact: Megan Cottrell, (785) 856- minimize liability when selling prod- Show 8277; website: www.crewdetroit.org. ucts or services, establish effective Breakfast payment terms, and reduce risk and loss. Oakland County Business Cen- 7:30-9:30 a.m. Monthly Meeting and Networking. ter, Waterford Township. $40. Con- Jan. 18, with 5:30-8:30 p.m. Jan. 17. Institute of Man- tact: Karen Lear, (248) 858-0783; email: Sergio agement Accountants, Ann Arbor [email protected]; website: Marchionne, chapter. With Vince Nystrom, vice www.advantageoakland.com. chairman and president, strategic accounts, Michi- CEO, Chrysler gan Economic Development Corp. Carlyle Grill, Ann Arbor. $25. Contact: Marchionne Group LLC, and CEO, Fiat (734) 222-6681; email: bcable THURSDAY [email protected]; website: www.ima JAN. 10 S.p.A. The event takes place at the Detroit Marriott Renaissance michigan.org/annarbor/index.html. Michigan’s Right-to-Work Law: A New Center, Detroit, and is sponsored Frontier? 7:45-9:30 a.m. Butzel Long. by Chrysler and KPMG LLP. Small Business: Unlocked — Lessons Review of new laws and how they Cost is $40 for Inforum members, Over Lunch. 11 a.m.-1 p.m. Jan. 23. De- might impact unions, non-union em- $55 for nonmembers, or $700 to troit Regional Chamber. Learn ways ployers and collective bargaining to differentiate your idea, project or Continuity sponsor a table. Trusted for 70 years. We’ll be here for generations. strategies. Butzel Long, Bloomfield business so it stands out among com- Hills. $25. Contact: Jonathan Spencer, For ticket information, contact petitors. With Charlie Wollburg, (313) 983-6995; email: spencer@ Connie Thompson, (313) founding partner, Curve Detroit. butzel.com; website: www.butzel 578.3846, email her at Emagine Royal Oak. $20 chamber .com/events. [email protected], members, $50 nonmembers. Contact: We work with our clients and their advisors to: or visit Inforum’s website, Emily Doerr, (313) 596-0377; email: edo- www.inforummichigan.org. [email protected]; website: Reduce estate and income tax Enhance fixed income Global Economic Outlook 2013. 8-10 www.detroitchamber.org. a.m. Automation Alley. Learn how a yields Solve family and business issues Improve small business can find global mar- Free. Contact: Automation Alley Re- Doing Business in Mexico. 8-11:30 a.m. kets, listen to trade mission success source Center, (800) 427-5100; email: Jan. 24. Automation Alley. Learn how existing life insurance policies. stories, and discover new opportuni- [email protected]; website: to connect with the United States’ ties for trade. With William Adams, se- www.automationalley.com. nior international economist, PNC third largest partner and the second Bank; Robert Ruffini, president, Flux- most prominent country for U.S. ex- trol Inc.; and Kevin McKervey, manag- Improving Your Trade Show Perfor- ports. Automation Alley headquar- ing director, Clayton & McKervey PC. mance. 11:30 a.m.-1 p.m. Jan. 16. Au- ters, Troy. $20 member preregistra- Automation Alley headquarters, tomation Alley. With Anita Mitzel, tion or $30 at the door; $40 nonmember Troy. Free. Contact: Automation Al- president, GraphiColor Exhibits. Au- preregistration or $50 at the door. ley Resource Center, (800) 427-5100; tomation Alley headquarters, Troy. Contact: Automation Alley Resource email: [email protected]; $20 member preregistration or $30 at Center, (800) 427-5100; email: BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM [email protected]; website: website: www.automationalley.com. the door; $40 nonmember preregistration or $50 at the door. Contact: Au- www.automationalley.com. tomation Alley Resource Center, (800) Small Business: Unlocked — Connec- 427-5100; email: info@automation ACE13, 2-8 p.m. Jan. 31. Annual Collab- tions & Cocktails. 5-7 p.m. Detroit Re- alley.com. oration for Entrepreneurship. Confer- gional Chamber. Networking event. ence for entrepreneurs, innovators, in- Beans & Cornbread, Southfield. Free vestors and business leaders from the Detroit Chamber members; $10 non- The Autoweek Design Forum. 8 a.m.-2 Great Lakes region. With Terry Cross, members. Contact: Marianne Alabas- p.m. Jan. 17. Recognition and celebra- founder of Windward Associates, tro, (313) 596-0479; email: malabast@ tion of design as the factor that drives Rochester Hills, and leader in the in- detroitchamber.com; website: www. consumers’ purchase decisions, auto- vestment communities in Silicon Val- detroitchamber.org. motive and otherwise. A. Alfred Taub- man Center, College for Creative Stud- ley and New York City; Skip Simms, se- ies. $175. Contact: Amie O’Keefe, (313) nior vice president, Ann Arbor Spark, UPCOMING EVENTS 446-0407; email: aokeefe@autoweek and executive director, Michigan Pre- .com; website: http://designforum Seed Capital Fund; and others. Burton Entrepreneurial Initiative of Southeast Manor, Livonia. ACE13 admission, $13; .autoweek.com. Michigan Entrepreneur’s Forum. 8-11:30 SAE-MITEF Automotive Innovation a.m. Jan. 15. Automation Alley. Watch Competition and ACE13 admission, entrepreneurs present their business CoreNet Michigan 2013 Economic $25 by Jan. 15; $35 after Jan. 15. Infor- plans and then join in the discussion. Forecast. 11 a.m.-2 p.m. Jan. 17. Com- mation and registration: www.ace- Automation Alley headquarters, Troy. mercial Real Estate Women Detroit. event.org.

BUSINESS DIARY

ACQUISITIONS Smith, (248) 353-0735, ext. 152; email: opened a second location at 28966 [email protected]; website: www.esd.org. Woodward Ave., Royal Oak. Tele- Agree Realty Corp., Farmington Hills, phone: (586) 286-1277. Website: acquired an 18,000-square-foot Harris The Environmental Management As- www.awomansimage.net. Teeter supermarket in Charlotte, N.C. sociation, Harrison Township, is accepting nominations for its annual en- Altair Engineering Inc., Troy, acquired vironmental achievement award. MOVES Synopsis Consulting, Turin, Italy, Nominations are due Feb. 1. Website: which improves product development Employees Only, a human resources www.emaweb.org. process efficiency. Synopsis’ staff will consulting and benefits management be incorporated into Altair’s product firm, moved from Auburn Hills to 805 development division, Altair Product- CONTRACTS Oakwood Drive, Suite 100, Rochester. Design, to augment the company’s En- American Laser Skincare, Farmington Website: www.employeesonly.net. terprise Solutions Group. Hills, named Doner Partners LLC, Wagner Design Associates LLC from North Bloomfield Properties, West Southfield, its media planning, buying 455 E. Eisenhower Parkway to 123 N. Bloomfield Township, acquired North and creative strategy agency of record. Ashley St., Suite 212, Ann Arbor. Tele- Oakland Property Management Co., Plumbing Professors Inc., Canton phone: (734) 662-9500. Website: Clarkston. Township, was awarded a diagnostic www.wagdesign.com. Ricardo Plc, Van Buren Township, ac- sewer inspection contract by The quired AEA Technology plc, Oxford- Smith Group, Detroit, for work to be NEW PRODUCTS shire, United Kingdom, an environ- performed at the University of Michi- BorgWarner Inc., Auburn Hills, intro- mental consultancy. The company gan South Quad, Ann Arbor. duced its three-stage turbocharging will operate as Ricardo-AEA. technology for BMW’s M Performance EXPANSIONS diesel engine. Website: www.borg CALL FOR NOMINATIONS Dean Sadler Hair and Makeup Studio, warner.com. The Engineering Society of Detroit, Plymouth, opened a spa in its location Preh Inc., Novi, developed and now Southfield, is accepting nominations at 807 Penniman Ave. Telephone: (734) manufactures three versions of inte- for the ESD Alpha Awards for Innova- 416-9800. Website: www.deansadler grated center stack control panels for tion in Engineering and Technology. studio.com. the 2013 Ford Fusion S, SE and Titani- Deadline is Feb. 28. Contact: Leslie A Woman’s Image, Clinton Township, um. Website: www.preh.com. 20130107-NEWS--0016-NAT-CCI-CD_-- 1/4/2013 12:36 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 7, 2013

Crain’s Job Front, College Top Talent Visit crainsdetroit.com/jobfront and crainsdetroit.com/toptalent to search for jobs, post a résumé or find talent. Job Front PEOPLE CONSTRUCTION FINANCE John Czarnecki to IN THE SPOTLIGHT preconstruction Doctors’ Hospital of Michigan, executive, Turner Construction Co., Pontiac, has named Allison Brauer Detroit, from di- vice president of patient rector of precon- services/chief struction at nursing officer. Walsh Construc- Brauer tion, Detroit. succeeds Ellen Jeffery Brinker to Bussey, who vice president, resigned in construction divi- November. Czarnecki sion, Dearborn Brauer, 47, Burns Everson Mid-West Co., most recently Taylor, from di- had been Nadine Burns to director of business rector, construc- director of development, Pinnacle Wealth Man- tion division. quality. agement, Brighton, from marketing Also, Kimberly Brauer manager, Thetford Corp., Ann Arbor. She earned a Gornowich to Steven Everson to senior tax manager, bachelor’s degree in nursing and strategic inside MRPR Group PC, Southfield, from an MBA, both from Oakland sales manager, owner, Everson & Associates, Ann Ar- life cycle im- University, Rochester Hills. bor. Also, Erica Braun to manager provement, from from senior accountant. temporary mer- chandise product Brinker commissioner, Clinton Township. FOOD coordinator; and Also, James Foster to project manag- Timothy Rose to vice president, life cy- Avec O’Brien to er, from development coordinator, U.S. controller, cle improvement, from director, life Great Lakes Geomatics LLC, Detroit; cycle improvement. Mastronardi Pro- Kirit Ravani to project manager, from duce, Livonia, president, Enviro Matrix, Detroit; and ENGINEERING from chief finan- Involved in a merger, acquisition or expansion in 2012? Michael Lens to senior engineer, from cial officer, De- James Pistilli to senior project manag- assistant division construction engi- Crain’s Detroit Business and the Association for Corporate Growth will honor companies troit Science Cen- er, Giffels Webster, Detroit, from chief neer, Wayne County Department of ter, Detroit. and individuals in categories from best deal of the year to lifetime achievement. engineer, wastewater services, office Public Services, engineering division, NOMINATE NOW: crainsdetroit.com/nominate BY JAN. 21 of the Macomb County Public Works field engineering office, Detroit. INFORMATION TECHNOLOGY O’Brien J. Robert Dacey to service desk manager, Creative Breakthroughs Inc., Troy, from customer solutions director of the critical accounts program and member of the customer assurance team, Cisco Systems Inc., Southfield.

MARKETING Andrea Pecoraro to social media strategist, Identity, Bingham Farms, M&A Experience from public relations and event coordinator, Kresge Eye Institute, Detroit. Alison Schwartz to vice president, public relations, CKC Agency, Farm- ® ington Hills, from public relations as- In Your Corner. sociate. Also, to vice Diane Morgan president, communications and pub- licity, from vice president, communi- I Mergers and acquisitions, private equity, angel and cations, ABC Family, Los Angeles; venture capital, finance, and joint venture transactions Michael Isabella to vice president, media and marketing, from local sales I Commercial transactions, corporate structuring manager at WDVD FM/WDRQ FM, Cumulus Media Inc., Detroit; Corinna and succession planning Weber to public relations manager, re- I Real estate transactions, tax planning matters, maining in communications for the Lions Hearing Center of Michigan, and 1031 exchange transactions Detroit; and Jacqueline King to public relations and social media specialist from promotional manager, Michigan State University Advancement, East Lansing. SERVICES Meghan Rundell to spa manager, retail operations, Immerse spa, MGM Grand De- troit, from manager and business Rundell developer, Aqua Salon & Spa, Roy- al Oak. STEEL Olga Filatova to vice president, First Tier Ranking human resources, in Corporate Law and Severstal North Commercial Litigation America Inc., Pete Roth Dearborn, from I I I I I [email protected] Metro Detroit Grand Rapids Kalamazoo Grand Haven Lansing talent director, OAO Severstal, Filatova Moscow. 20130107-NEWS--0017-NAT-CCI-CD_-- 1/4/2013 5:38 PM Page 1

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 17 Fiscal cliff fix better than nonprofits, public companies expected

BY SHERRI WELCH can move them to a charity tax- Mitzel PLC and of counsel at Berry also taxable at 3.8 percent for this outcome instead of what they AND CHAD HALCOM free through the end of January. Moorman PC in Ann Arbor. The high- Medicare, up from 2.9 percent last were expecting, such as getting CRAIN’S DETROIT BUSINESS Legislators also gave taxpayers er threshold for the higher income year, but the employer’s contribu- taxed at the ordinary income rate. until the end of the month to make tax benefits many small-business tion is constant at 1.45 percent. Even for the higher-income people Lawmakers have scaled the first their 2012 withdrawal from their owners and en- “Only a small percentage of tax- who are paying more, depending on fiscal cliff, but local nonprofits and IRA and have it treated as if it trepreneurs, he payers are above some of these the mix of their income they still public companies are still making were made by Dec. 31. said. thresholds, but the sheer amount of have a possibility of paying less on sense of the new laws, and the de- Congress also extended federal Mitzel doesn’t income and investment represented some of those dividend payments.” bate over expected federal spend- unemployment benefits one year think the Pease within that bracket can be very sig- Sherri Welch: (313) 446-1694, ing cuts is far from over. as well as the earned income tax amendment will nificant,” said Alan Gallatin, part- [email protected]. Twitter: To some degree, the impact of credit for low-income working have a dramatic ner and tax practice leader at Grant @sherriwelch the changes already made won’t be families, lessening to some degree effect on charita- Thornton LLP’s Southfield office. Chad Halcom: (313) 446-6796, known for some time, experts said. the demand for the safety net non- ble giving in the “But the clients that I’ve talked to [email protected]. Twitter: The deal worked out last week profits can provide. long term. “The are seemingly pretty happy about @chadhalcom was better than expected for non- “Nothing is perfect, but there Mitzel change in the es- profits, many donors and manufac- are some important victories,” tate tax from 35 turers focused on the dividend rate. said Rob Collier, president of the to 40 percent is basically nothing as The top estate tax rate rose to 39.6 Council of Michigan Foundations. far as planning,” he said. MARKET JOB percent from 35 percent but only for The impact of the reinstated Mitzel, past chairman and a couples earning more than $450,000. Pease provisions will take some board member of the Planned Giving FRONT Dividend tax rates also climbed to time to figure out. “We don’t have Roundtable of Southeast Michigan, PLACE 20 percent instead of 39.6 percent for a good handle right now,” he said. finds some relief in finally having taxpayers in that same income “We know the charitable deduc- some certainty around estate taxes. GENERAL bracket, but continue at 15 percent tion is going to be on the radar “The actual law is somewhat TRAVEL SERVICES for couples earning $72,500-$450,000. screen in this next quarter as they anti-climatic because we have had Supplier Quality Engineer II CPS CAR & SHUTTLE SERVICE Jabil Circuit has an opening in Auburn Hills, Although the federal tax deduc- go through round two of the fiscal uncertainty for four years,” he said. Have events planned or an evening out, or you need MI for a Supplier Quality Engineer II to act as tion for charitable giving was un- cliff,” Collier said. The agreement to continue tax- a ride to the airport. CPS Car Service with over 35 a liaison and lead auditor for plant level supplier affected, Congress reinstated the There’s also the looming question ing dividends at the same rate as years experience can help, we offer luxury sedan quality activities. Bachelor’s in Mech. Eng., Pease amendment, which lowers of where legislators will make cuts capital gains, rather than at the car service or shuttle van service from/ to anywhere Elec. Eng., Ind. Eng. or related field and 3 yrs. exp. in a manufacturing, quality or supplier quali- in the Metropolitan area at very affordable prices. the tax deduction 3 percent for in the federal budget — with tension rate of wages or earned income, ty role. Must have legal auth. to work permanent- Call Ken @ (586) 484-3936 for more info or to book donors with incomes above between defense issues and social is- also may have been a pleasant sur- ly in the US. EOE. Apply at www.jabil.com & your night out! $300,000. The Medicare withhold- sues — as part of the sequestration prise to many public companies. must reference job id 14145. ing tax also climbs to 3.8 percent process to come, he said. At least eight Michigan public for individual incomes above Charitable donors, individual companies made a combined pay- $200,000 or joint income of more givers and foundations are clearly ment of about $500 million to share- than $250,000, although employers going to be asked to do more, “but holders in early quarterly divi- REAL ESTATE pay a 1.45 percent share with the we clearly can’t replace the gov- dends or special dividends in late rest paid by employees. ernment,” Collier said. December — most of them manu- The deal also extends the life- The Chronicle of Philanthropy re- facturers such as Kaydon Corp. in OFFICE SPACE time estate/gift tax exemption at ported last week that the new law as Ann Arbor, Detrex Corp. of South- $5 million — or, some experts said, signed by President Barack Obama field and Dow Chemical Co. in Mid- about $5.12 million when indexed could hurt charitable giving by lim- land, rather than after the New HISTORIC MCNICHOLS OFFICE CENTER for inflation. iting how much wealthy people can Year as they had done in the past. Nonprofits and donors received claim in deductions. Quoting the Tax The fear turned out largely un- “Detroit’s Professional Office Building ” unexpected good news in the rein- Policy Center, the paper said the in- founded except for couples with in- statement of the charitable creased estate tax could reduce the come above $450,000, although div- NOW LEASING rollover for individual retirement value of the highest-income taxpay- idends are still subject to a new 3.8 OFFICE SPACE accounts and conservation provi- ers’ deductions by up to 80 percent. percent Medicare tax connected to

sions for 2012, retroactively, and Obama had wanted the higher tax the Patient Protection and Afford- 400sqft-1200sqft 2013, Collier said. rate to come in for married couples able Care Act for couples making People who took required IRA earning more than $250,000, said more than $250,000. 313.347.8680 distributions before the end of 2012 Dennis Mitzel, a member at Dennis Earned income above $250,000 is

[email protected]

COMMERCIAL PROPERTIES Catastrophic claims group reviews FOIA FOR SALE The County of Oakland is selling a commercial C-2 building on Maple Road near Pontiac Trail (1010 East Maple) in Walled Lake. The building is approx. 17,000 square feet in size and sits on 1.64 acres. The interior is configured for office use, though its location adjacent to a primary thoroughfare court ruling before decision on appeal would lend itself well to retail. Please contact either Art Holdsworth at Oakland County (248-858- 0160) or Jennifer Stuart of the Downtown Development Authority (248-624-4847) to arrange a BY CHAD HALCOM Michigan Consumer Federation and whether to appeal. walkthrough. CRAIN’S DETROIT BUSINESS the Brain Injury Association of Michi- The association charges $175 per gan, have had two consolidated insured vehicle per year to insur- The Michigan Catastrophic Claims lawsuits pending in Ingham Coun- ers, which includes a $32.72 deficit Association is reviewing an Ingham ty demanding access to that data. recoupment fee to cover an accu- ART HOLDSWORTH JENNIFER STUART County judge’s recent ruling stipu- The association furnishes aggre- mulated deficit of just over $2 bil- (248) 858-0160 (248) 624-4847 lating that the nonprofit organiza- gate financials in a yearly report to lion as of June 30, according to a tion is subject to the state Freedom the Michigan Office of Financial and In- recent annual report to Michigan OFFICE BUILDING VACANT LAND of Information Act before deciding surance Regulation, including yearly Insurance Commissioner Kevin whether to appeal. assessment income and investment Clinton. Office Building Available LIVE AND WORK IN Executive Director Gloria Free- income, total insurer reimburse- The association is governed by a Livonia sharp brick office building PETOSKEY AREA land said the association, a nonprof- ments, and numbers of open and five-member board of representa- 3,010 square feet, $229,000.00 land it reinsurance fund that reimburses closed claims. But it does not fur- tives of insurance companies ap- all automobile insurers in the state nish other data that coalition mem- pointed by Clinton. Clinton sits on Contract Terms. 4 Profitable Business to cover lifetime medical benefits bers have sought, including the du- the board as a non-voting member. Call Van Esley Real Estate 4 72 Slip Marina that exceed $500,000, has contended ration of past claims and actuarial The Coalition Protecting Auto (734) 459-7570 4 Growth Potential it is an unincorporated private non- standards and data used to compute No-Fault said in a statement it 4 50 Businesses for sale profit organization created by state the funding reserves it needs to cov- would consult with insurance reg- Call Us For Personalized statute — but not a public body for er claims. ulation officials to investigate purposes of the FOI Act. The coalition has contended the MCCA financial records, based on Service: (313) 446-6068 But Judge Clinton Canady III association is subject to an FOI re- the court’s ruling, to determine the ruled otherwise in court late last quest it brought in 2011, and the appropriateness of MCCA annual FAX: (313) 446-1757 month, finding it is subject to FOIA Brain Injury Association has con- assessments. E-MAIL: [email protected] and that the fund must publicly dis- tended in a follow-up lawsuit that it Said coalition President John INTERNET: close the records data it uses to set is subject to a 1978 Michigan Supreme Cornack: “This court ruling final- www.crainsdetroit.com/section/classifieds the rates it charges to insurers. Court ruling allowing auto no-fault ly allows for this information to be Joe Blachy The Coalition Protecting Auto No- customers to “have notice as to how publicly verified, and that is what See Fault, a 28-member coalition made their rates are determined.” CPAN plans to do.” Crainsdetroit.com/Section/Classifieds (231) 409-9119 up of groups such as the Michigan Freeland said the association is Chad Halcom: (313) 446-6796, for more classified advertisements Call anytime between 7am & 10pm 7 days a week!" Health & Hospital Association, the reviewing Canady’s ruling with its [email protected]. Twitter: 420 Howard St., Petoskey, MI 49770 Michigan State Medical Society, the attorneys and has not yet decided @chadhalcom 20130107-NEWS--0018-NAT-CCI-CD_-- 1/4/2013 4:57 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 7, 2013 Ex-DMC boss can’t be found; controversy surrounding him can Ishbia named president of mortgage company BY JAY GREENE “Dr. Porter is a talented adminis- ics and consolidated hospitals. formation technology firms. CRAIN’S DETROIT BUSINESS trator but often dilutes his efforts,” But the DMC continued to lose Meanwhile, Porter’s reputation Mat Ishbia was expected to be Crissman said. money. From 2000 to 2003, the in Canada continues to wane. An named today as president of Unit- Where is Arthur Porter, M.D., “I told them to medical center lost $243 million. audit by the Quebec provincial ed Shore Financial Services LLC, a who was the CEO of the Detroit be very careful News reports at the time said government found the health cen- fast-growing mortgage company Medical Center from 1999 to Sep- about their then-Gov. Jennifer Granholm ter’s projected $12 million deficit previously known as Shore Mort- tember 2003? agreement and pushed to have Porter replaced. had grown to $115 million — a fi- gage. The administrator of McGill Uni- include lan- In 2004, Mike Duggan, the former nancial situation similar to the Ishbia, 32, had been president of versity Health Centre in Montreal guage to control Wayne County prosecutor, was DMC financial problems that led to the company’s largest division, from 2004 to December 2011 has Arthur’s multi- hired to replace Porter. Duggan, a $50 million state bailout in 2003. United Wholesale Mortgage. been sued by his former employer ple outside in- who resigned Dec. 31 from the DMC The six-hospital network in He replaces Kip Kirkpatrick as for an unpaid low-interest loan of terests. likely to run for mayor of Detroit, Montreal has hired a special over- president. Kirkpatrick remains $317,000, said a Dec. 22 article in “At the De- was able to turn around the DMC seer to monitor its spending. CEO. Porter The Globe and Mail newspaper in troit Medical and post eight consecutive years of Quebec’s anti-corruption task “This promotion recognizes the Toronto. Center, the latter resulted in Dr. operating profits. force also has alleged that the hos- tremendous contribution Mat has Since he left McGill in Decem- Porter losing focus on his primary In Detroit — as in Montreal, pital network was the victim of made to the growth of USFS (and) ber 2011 — three months before responsibilities,” said Crissman, a where he spent time cultivating fraud in connection with its building UWM into a top 10 whole- his contract ended — Porter’s DMC board member who knew personal, government and busi- planned $1.3 billion new hospital, sale lender and the fastest-growing whereabouts has been somewhat Porter for years at the medical ness relationships — Porter’s busi- expected to open in 2015, The company in its space,” said Kirk- of a mystery. McGill’s lawsuit school and during his tenure at the ness interests were varied. Globe and Mail reported. patrick in a press release. lists Porter’s addresses as post of- DMC. A 2003 investigation by the De- In November, the newspaper United Shore is moving to the fice boxes in the Bahamas and his At the DMC, Porter inherited fi- troit Free Press found Porter was said police had charged two for- Maple Corporate Center on Maple home country of Sierra Leone. nancial problems that included a involved in more than a dozen side mer executives at SNC-Lavalin, the Road in Troy, a building bought John Crissman, M.D., former $78 million deficit in 1998 and businesses. For example, he and an engineering firm that was award- last year by Sure Holdings LLC, a dean of the Wayne State University $140 million in losses during 1999. associate were principals involved ed the contract under Porter’s company owned by United Shore’s School of Medicine, said he warned He moved quickly to reduce the in a cancer clinic in the Bahamas, tenure, with multiple criminal founder and chairman, Jeffrey Ish- headhunters hired by McGill Uni- DMC’s workforce by 7,000 — to an auto parts company, a medical charges, including fraud and us- bia, Mat’s father. versity about Porter back in 2003. 13,000 — closed money-losing clin- real estate company and several in- ing falsified documents. — Tom Henderson Guardian: New leaders, wider footprint with Koch investment ■ From Page 3 stakes of Davidson’s widow, Karen Glenn Eckert, senior analyst for Eckert said. “From a matchup tries, have a history of reinvesting and, two adult children, experts Moody’s Investors Service, said standpoint, there’s a similar corpo- in their company. In a recent inter- and executives say. Koch’s investment and leadership rate culture, and given Koch’s glob- It’s in Guardian’s view with Forbes, Charles Koch It’s unknown how many shares is a strong fit for Guardian. al footprint, it made them an “ said the firm reinvests 90 percent each executive, board member or “Guardian (and the Davidsons) attractive buyer.” best interest to of its earnings into the company. part of Davidson’s family parted explored several options, but want- Scott Thomsen, president “Like us, Koch takes a long-term, with individually. ed the company to remain private,” of Guardian’s glass group, seek out areas growth-oriented view toward busi- said the investment from ness,” the Guardian board told em- Koch gives Guardian access of the Koch ployees in an Oct. 5 note. Besides to Koch’s large supply chain Georgia-Pacific and now Guardian, and marketing strategy — enterprise for Koch’s holdings include Stainmas- and other areas. ter carpet-maker Invista, Koch “It’s in Guardian’s best in- potential Pipeline Co. LP, chemical maker terest to seek out areas of the innovation. Flint Hills Resources LP, Koch Fertiliz- Koch enterprise for potential ” er LLC and Koch Agricultural Co. innovation,” Thomsen said. “We see Eckert said it’s now up to the what’s your Scott Thomsen, several alignment areas — supply new board to return Guardian’s Guardian Industries Corp. chain, logistics, raw materials, etc.” credit rating to a more favorable Koch also added four new board lenges under new management. position from stable to positive. members, including Vaupel. Koch Guardian battled the automotive “While its debt burden is higher, fancy? representatives now make up half industry collapse in 2009 and now it’s still an attractive company,” of the eight-member board. Other faces exposure to the economic he said. “Koch has introduced new board members include Dave turmoil in Europe, according to a some fresh and outside thinking Robertson, president and COO of Dec. 19 analyst note by Eckert. and is a little more balanced. So, if Koch Industries; Jim Mahoney, ex- Guardian took on significant I were to look over the next three ecutive vice president of operations debt in the deal to pay off share- to four years, presuming the company is going to use cash flow to re- IFYOU CAN DREAM IT -WE CAN DO IT. and compliance at Koch; and Jim holders, to bring in Koch and for duce its debt burden, I’m pretty Hannan, president of Koch’s paper future operations. This included Kerkstra Precast specializes in structural and architectural confident in the company.” subsidiary Georgia-Pacific LLC. $1.2 billion in new debt, including Despite its exposure in Europe, precast for countless building types. Koch’s interest in Guardian a $600 million term loan and a $600 Guardian reinvested heavily in its stems from its large market share million revolving credit, accord- We’ll help you keep your project on time and on schedule. business in 2012, including start- in the glass market, Thomsen said. ing to Eckert’s analyst note. ing production of a new float glass The four largest glass suppliers This led to Moody’s downgrad- manufacturing plant in Russia in — Guardian, Saint-Gobain SA, Asahi ing Guardian’s credit due to “a sig- December, a new joint venture be- Glass Co. Ltd. and Nippon Sheet Glass nificant increase in Guardian’s tween subsidiary SRG and Japan- Co. Ltd. — control 45 percent of the debt burden at a weak point in its ese plastics supplier Faltec Co. Ltd. global glass market, Thomsen said. operating performance.” and a new plant in Mexico. [so tell us... For Guardian, roughly two-thirds Guardian’s revenue peaked in In a 2009 statement released pub- of its revenue is generated from its 2007 at $5.75 billion, according to licly, Vaupel, then vice president glass segment. Forbes projects Crain’s estimates, before dropping of business development for Koch, Guardian revenue of $5.5 billion for to $4.48 billion in 2009, according said the company was committed what is your fancy?] 2012. Its glass business units include to Forbes. to growing out of the downturn. construction, solar energy, electron- In a letter to employees Dec. 19, “There are plenty of ‘for sale’ www.kerkstra.com ics and automotive. Its construction the Guardian board said: “Business signs on assets these days, but pre- glass business makes up 80 percent prospects for 2013 are challenging, dicting which assets will strength- of glass sales, Thomsen said. but Guardian’s leadership teams en the competitive position of our As a notable example, 2 million and plans are what attracted our existing businesses has become square feet of Guardian glass can new investor and they are reasons trickier than ever,” he said. “I’m be found on the Burj Khalifa in our new board and CEO are opti- convinced there are likely to be Dubai, the world’s tallest building mistic about the future. The year tremendous opportunities at the standing at 2,717 feet. won’t be an easy one given the busi- end of this dark economic tunnel.” Guardian also manufactures ness realities of regional slow- It appears Guardian glass pro- fiberglass insulation and chrome- downs, strong competition, the need vides a clearer view of the future plated plastic parts under its War- for new solutions for mature mar- for Koch. ren-based SRG Global Inc. subsidiary. kets and global business dynamics.” Dustin Walsh: (313) 446-6042, With a new board in place, The Koch brothers, who hold an [email protected]. Twitter: Guardian faces significant chal- 84 percent stake in Koch Indus- @dustinpwalsh 20130107-NEWS--0019-NAT-CCI-CD_-- 1/4/2013 5:41 PM Page 1

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 19 The firm worth Layoffs: Pink slips fewer in 2012 listening to ■ From Page 1 is the firm that Worker Adjustment and Retraining No- ness in (Michigan) based on popu- SM tification Act. The WARN Act re- LAYOFF WARNINGS lation trends. It might not show up listens to you. quires companies with more than in official numbers for a while, be- Here are last year’s top WARN Act 100 employees to file notice with SM notices in Michigan, by region: cause the 2010 census came so state and local governments 60 days closely on the heels of the Great Talk to Foley. We’re listening. before building closures or layoffs Metro Detroit Recession,” he said. that affect more than 50 full-time “But as we see some strength in employees. Ⅲ Henry Ford Macomb Hospital, housing again, a few more people Warren, 1,030 employees. Closed One key to the improved num- get the opportunity to sell and For 170 years, Foley has made it our mission to find in March. Some employees found bers is the improving automotive other jobs with Henry Ford. leave the region. And retail, just out exactly what our clients want and deliver it. So industry. The automakers and like housing, was way overbuilt Ⅲ Regional Elite Airline Services when our Detroit clients asked for local access to their suppliers accounted for just LLC, Romulus (Metro Airport), 907 for this population level during the 650 affected employees at four local employees. Effective early last expansion cycle.” the strength of a national law firm, Foley recruited companies in 2012, compared with December. The parent company He also said mergers and acqui- the city’s top talent to establish our Detroit office and 1,409 employees across six compa- later offered all employees jobs in sition talks heated up among hos- nies in 2011. another Delta subsidiary. pitals seeking efficiency to cope provide trusted local advisors who could leverage Most of the 50 other WARN no- Ⅲ Comair Inc., Romulus (Metro with changes under health care re- our national resources. It’s one more reason Foley tices statewide came in health Airport), 524 employees. Ceased form, and that the trend should care (1,612 employees), retail (491 operations in September. continue and create further has been recognized as one of the elite BTI Client employees) and air passenger and Ⅲ Verizon Wireless, Southfield call streamlining this year. Service 30 for nine of the past 10 years in a survey* cargo transportation (854 without center, 499 employees. Closed; Fulton said he does not usually in- Fortune the Regional Elite personnel). some employees were relocated. clude WARN Act notices as a factor of 1000 corporate counsel. Notices ranged in scale from Ⅲ Hyatt Corp., Dearborn, 322 in the forecasting models he uses to 1,030 employees at the Henry Ford employees. Hyatt ended its help generate economic outlook re- Learn more about how Foley can add value to your business. Contact management of became the Adoba Macomb Hospital campus in War- ports published through the insti- Detroit Office Managing Partner Daljit S. Doogal at [email protected]. ren, which closed March 31 — al- Hotel Dearborn on Nov. 1. tute — but they are helpful during though Henry Ford Health System research to get a short-term outlook Foley.com CEO Nancy Schlichting has said Outstate Michigan for local employers, who generally several hundred employees were Ⅲ Cheboygan Memorial Hospital, must give 60 days advance notice of later relocated and an advanced in- Cheboygan, 395 employees. Closed structured cuts under the act. patient and outpatient rehabilita- in April and reopened as McLaren The institute’s Research Semi- tion center is expected to open on Northern Michigan Cheboygan nar in Quantitative Economics in the same site this year — to pock- Campus. mid-November published an eco- Ⅲ Cliff’s Natural Resources ets of four or five retail employees nomic forecast for Michigan, which #5*$MJFOU4FSWJDF"5FBN 5IF#5*$POTVMUJOH(SPVQ 8FMMFTMFZ ." of Hostess Brands Inc., which has Inc./Empire Iron Mining calls for jobs growth to accelerate Partnership, Ishpeming, 323 suspended bakery operations and into 1.2 percent in early 2013 com- employees. Temporary layoffs that #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 is in bankruptcy liquidation. Host- started June 1 at two mines. pared with 0.5 percent growth in ess sent notices for just more than most of 2012; but it will still trail the ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 Ⅲ Richfield Management 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: 300 employees statewide, mostly at LLC/Richfield Landfill Inc., 236 initial growth rate of economic re- 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ a few warehouses but also at more employees. Sold out of bankruptcy covery in 2010 and early 2011. ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF than a dozen retail locations. late last year. Some employees Growth in personal income and /$MBSL4USFFU 4VJUF $IJDBHP *-tt The slowdown in layoffs has were hired by new owners. Seven purchasing power are also expect- also allowed Michigan to shore up locations, mostly in the Flint and ed to decelerate in 2013, to 2.6 per- employment rolls and pare down Port Huron areas. cent and 0.5 percent, respectively its jobless rate in 2012, although Ⅲ GMA Cover Corp, Port Huron, 155 compared with 3.8 percent and 1.5 the state data is much more mixed. employees. Closed effective Aug. 12. percent growth in 2012, according Just fewer than 4.25 million peo- Ⅲ Hess Industries Inc., Niles, 135 to the report. ple were employed in November, employees. Closed effective Aug. 13. National GDP, which grew at an the most recent month for which annualized rate of 2 percent in the data are available, among a state Fulton, a professor and research third quarter, and Detroit 3 auto workforce of nearly 4.61 million, director at the University of Michigan sales are used as factors in project- for an unemployment rate of 7.9 Institute for Research on Labor, Em- ing the state’s economic outlook in percent, according to the state De- ployment and the Economy. the coming year. Southfield-based partment of Technology, Management “There are other strong positive automotive information and mar- and Budget. That’s 13,000 more em- indicators, but that (WARN Act) keting company R.L. Polk & Co. pre- ployed people than in the same trend would also suggest that dicted last week that U.S. light ve- month a year earlier, when the job- Michigan economy is improving hicle sales would accelerate from less rate was 8.6 percent, and 69,000 — moderately.” about 14.5 million in 2012 to 15.3 more than in November 2010, Robert Dye, chief economist at million this year, but would re- when it was 11 percent. Comerica Bank, turn to pre-recession levels of But the jobless rolls shrank said the softness nearly 17 million until sometime 32,000 since November 2011, while in retail and after 2016. the total labor force shrank by health care em- “It can sound trite, but really 19,000, suggesting more people fell ployment sug- how the national economy and off the unemployment rolls in the gested by the how the automotive industry does past year without returning to WARN notices are just critical. Clearly in those work than by landing a new job. will likely con- areas it’s better news for the work- “It’s certainly a mixture of good tinue this year force,” Fulton said. “And in vehi- news in continued job growth and in Michigan. cles, the resurgence will continue labor force expansion as well as la- “Even though but start to slow down.” bor force exit. They’re both in play, we’re seeing Dye Chad Halcom: (313) 446-6796, though one indicator is obviously manufacturing coming back, [email protected]. Twitter: better than the other,” said George there’s some fundamental weak- @chadhalcom McGraw: Marsh buys company ■ From Page 3 erty casualty risk management ciencies out of companies, like east Michigan employers. It also services,” he said. “Now we have some do, by consolidating human publishes a similar survey for greater international benefits ex- resources, finance and informa- West Michigan employers. pertise.” tion technology services,” Jeatran In 2011 and 2012, McGraw Went- Jeatran, who also is CEO of Min- said. “We are focused on growth worth was recognized by Crain’s neapolis-based insurance agency opportunities and synergies be- as one of the Cool Places to Work RJF, said his company joined MMA tween companies.” in Michigan. It also made the hon- two years ago and has flourished. Every spring for the last seven or roll of Michigan’s Healthiest MMA allows subsidiary companies years, McGraw Wentworth has Employers of 2012. like RJF and McGraw Wentworth published the Southeast Michigan Jay Greene: (313) 446-0325, to operate almost independently. Mid-Market Group Benefits Survey, an [email protected]. Twitter: “We are not here to squeeze effi- employee benefit survey of South- @jaybgreene 20130107-NEWS--0020-NAT-CCI-CD_-- 1/4/2013 4:57 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 7, 2013 Guns: Fear of federal weapons ban empties area stores’ shelves ■ From Page 3 ordered more than $1 million in fearful of being unable to buy the guns in the past couple of weeks BY THE NUMBERS THE AR-15 weapons they want scoop them up with wholesalers and manufactur- now. Facts about the U.S. gun and Ⅲ The AR-15 is a magazine-fed rifle. AR-15 is trademarked by Colt. ers, with plans to order at least $1 ammunition industry: Longtime gun control advocate million or more at upcoming trade 5.56 mm semi-automatic rifle Ⅲ A seemingly endless number of U.S. Sen. Dianne Feinstein, D- Ⅲ Estimated to be an $11 billion shows. typically made of steel, aluminum variants are sold by about 30 Calif., has announced she will pur- annual industry and plastic. New guns trickle into his store a manufacturers. sue a new version of the assault Ⅲ $123 million in federal taxes couple at a time instead of the usu- Ⅲ It is the civilian-market version of Ⅲ The AR-15 fires the high-velocity weapons ban in the next session of paid on firearm sales annually the U.S. military’s M-16 rifle, which al batches of 20 or 30, however, Ji- 5.56 mm/.223-caliber round. Congress. Ⅲ Average annual U.S. gun can fire in fully automatic mode. Retailers also sell models had said. production is 3.4 million firearms, Ⅲ It was developed by Hollywood- chambered for the lower-velocity “It’s extremely frustrating,” he of which 1.4 million are rifles. The based ArmaLite Corp., which sold .22 round. said. “People are frustrated when Gun culture remainder are shotguns, pistols the weapon’s rights in 1959 to Ⅲ The 5.56 mm version typically calling.” and revolvers. what is now Hartford, Conn.-based costs from more than $800 to more Firearms have always been pop- The calls are almost always cus- Ⅲ There are 465 gun and Colt’s Manufacturing Co. The than $2,000. Price varies by ular in the United States: Between tomers seeking the popular 5.56 ammunition makers. original ArmaLite company is out of location and options. 70 million and 80 million Ameri- mm AR-15, a semi-automatic civil- Ⅲ There are more than 50,000 business. Another company later Ⅲ It’s estimated that up to 3.7 cans own more than 300 million ian market version of the U.S. mili- retail gun dealers. bought the rights and uses the million AR-15 rifles and variants firearms, according to a National Ri- tary’s standard-issue M-16 rifle. Ⅲ Walmart is the largest retailer of ArmaLite name. exist in the U.S. fle Association estimate. The Con- They also want the 20- and 30- guns and ammunition. Ⅲ The “AR” stands for ArmaLite, Ⅲ The rifle is intended for target gressional Research Service in No- round magazines for the weapon. Ⅲ 32 percent of U.S. households not assault shooting, small-game hunting and vember estimated 310 million The AR-15 is the type of rifle have a gun. home defense. guns. used in the Connecticut shootings, Source: Wall Street Journal and data Sales of guns and ammunition and is expected to be the focus of compiled by StatisticsBrain.com from ISTOCKPHOTO.COM total about $4 billion annually, ac- any new federal ban to replace the state fish and game departments, the U.S. AR-15 is Colt’s trademark for the civilian-market cording to estimates from the New- 1994 law that expired in 2004. Bureau of Alcohol, Tobacco, Firearms and version of the M-16 rifle. town, Conn.-based National Shoot- Jihad had neither the AR-15 nor Explosives, and the IRS. ing Sports Foundation, the gun its bigger magazines in stock as of Source: Crain’s research industry’s trade association. Thursday. He sells weapons only if When weapons are banned, he has them available in his store said sales were brisk “up until we and Explosives. Many of those li- they typically become more popu- because of the uncertainty in the WEAPONS BAN ran out of inventory.” censes are for the same shop or lar and more expensive, Jihad firearms supply, he said. The Public Safety and Recreational “There were a lot of people sud- seller. said. Prior to the 1994 federal as- “I don’t know when the product Firearms Use Protection Act, better denly making a decision (to buy a Only eight states had more li- sault weapons law, just four com- will show up, or if it will show up,” known as the 1994 federal assault firearm) who had been putting it censes, which are required to sell panies manufactured the AR-15, he said. weapons ban, made it illegal to buy off,” Sanders said. guns. but that jumped to 30 after the The shop has dozens of rental any semi-assault rifle able to Graebner said his 2012 sales The run on firearms has mani- ban, he said. handguns and rifles displayed on a accept detachable magazines and were up 20 percent over the year fested itself in other ways: Con- Gun makers quickly retooled wall for use at the on-site target with two or more of the following: prior, but he declined to disclose cealed weapons classes at Target their semi-automatic rifles to range, but gone are the rows of Ⅲ Folding or telescoping stock specifics. Sports, which cost $100 cash and legally meet the 1994 law — consid- semi-automatic firearms for sale. Ⅲ Pistol grip The store makes enough money are mandatory as part of the ered by some critics to be overly The only semi-auto .223-caliber Ⅲ Bayonet mount to pay the bills with some left over state’s concealed handgun licens- concerned with cosmetics of (5.56 mm) rifles left were a trio of Ⅲ Flash suppressor for pizza, Graebner said, chuck- ing process, have increased to 60 to weapons rather than function — STG 556s from Fletcher, N.C.- Ⅲ Grenade launcher or mount ling. 80 people in each session. and to meet consumer demand. based Microtech Small Arms Re- Also banned for sale were semi- “Nobody’s getting rich from sell- Any new federal gun control leg- search. The weapon, sold for $1,999 automatic pistols and shotguns ing guns,” he said. islation likely will address what’s to $2,429 at Target Sports, is a civil- with other provisions. The law was Booming sales known as the “gun show loophole” ian market variant of the AUG as- allowed to expire in 2004. Gun sales were up in general in in the 1986 law governing firearms sault rifle from Austria’s Steyr The numbers recent years because of worries sales. It allows sales at gun shows, Mannlicher. National and state data also il- that President Barack Obama under certain circumstances, The shop still had a .22-caliber lustrate the gun buying trend. would pursue stricter gun control without background checks. semi-automatic version of the GUN CRIMES Point-of-sale federal background laws, triggering a gun inventory Gibraltar Trade Center President Heckler & Koch MP5 (a popular checks required for retail firearms backlog before the Connecticut Bob Koester said closing the gun The FBI’s annual Uniform Crime submachine gun used by mili- Report statistics for 2011 show: transactions — the National In- killings. Firearms sales spiked show loophole would have no ef- taries and law enforcement) for stant Criminal Background Check around the time of his election and fect on his business. He said it is Ⅲ Of 12,664 U.S. homicide $599, and a .22-caliber Sig Sauer victims, 8,583 were killed by System — topped 2 million for the re-election, Jihad said. largely a misconception that large 522 rifle for $499. firearms; and of those, 323 were first time in November, according There’s also a natural gun sales amounts of weapons are sold with- Double Action Indoor Shooting Cen- known to have been killed with to federal data. increase at Christmastime, he out background checks at such ter and Gun Shop in Madison rifles. Handguns accounted for While background checks don’t added. shows. Heights sold its inventory of 116 ri- 6,220 murders, and the rest were automatically mean a gun was sold Jihad also said a change to the At his center, all of the vendors, fles in five days after the Connecti- from shotguns, undefined other at the time of the check, they’re the state gun sales law has contributed which typically number about 50, cut shootings, said store owner Al guns or unknown types of firearms. industry proxy for measuring to the increase in sales at his shop, are federally licensed and are re- Allen. He had 900 handguns in Ⅲ In Michigan, there were 613 sales trends. based on what customers have told quired to have background checks stock, and sold all of them. New homicides. Of those, 450 were The FBI’s online tracking by him. completed. Only those individuals firearms only trickle in, and he with firearms and 29 with rifles. month shows there were 2 million On Dec. 18, Michigan Gov. Rick who are selling their private col- Only California (45) and Texas (37) doesn’t expect to see major resup- background checks in November Snyder signed Public Act 377, lections to someone else do not had more murders by rifle than ply for a couple of months. Michigan. and then 2.7 million in December, which eliminated the need for gun have to conduct the background “I’ve never seen it like this,” the first time checks topped 2 mil- buyers to get a pistol permit from checks, he said. Ⅲ The FBI statistics didn’t specify said Allen, who’s been in business types of rifle, so it’s unknown how lion since the federal system went their local police department be- Gibraltar has a gun and knife for 24 years. “It’s structured panic many homicides were by assault into place in November 1998. fore buying a handgun. Instead, show once a month at its Mt. buying.” rifles, traditional hunting rifles, Last year saw a record 19.5 mil- they can get the permit and back- Clemens and Taylor locations. He said the gun manufacturers black powder rifles or some other lion background checks, topping ground check from a federally li- Typically, they see anywhere from themselves are a major reason for type of non-shotgun long gun. 2011’s 16.4 million. censed firearms dealer, and then 2,000 to 5,000 people during the the dearth of firearms available to Michigan gun data suggests a later get the police check. three-day events, Koester said. retailers. that don’t regularly sell semi-auto- surge, too. Gun sales between private indi- He also has a vendor that sells “This industry is so ultraconser- matic rifles are seeing an increase There were a record 45,246 feder- viduals still require the police pis- guns year round at his Mt. vative,” Allen said. “It’s like the in business. al background checks from Michi- tol permit beforehand. Clemens facility and said that auto industry. They’ve been shut Steve Graebner, owner and pres- gan in November, a mark then The new law, aimed at stream- there has been a real spike in sales down since mid-December (for re- ident of Wessel Gun Shop Inc. in topped by December’s 59,445. lining the gun sales process, also there since the Connecticut shoot- pair and retooling) and won’t re- Warren, said calls to his store in- As of Jan. 2, there were 355,583 extends the pistol permit validity ings. open until later this month. quiring about semi-automatic ri- valid permits to carry a concealed to 30 days from the previous 10 “There’s no question,” he said. They’re going to have empty ware- fles have been “nonstop,” and he’s handgun in the state, up from days, and it puts sheriff’s depart- Koester said he could not speak houses.” sold out of all high-capacity maga- 294,037 for 2011 and 217,443 in 2010, ments in charge of permitting. to why that is, but that whenever The major U.S. gun manufactur- zine inventory. according to Michigan State Police Snyder did veto legislation that there has been talk about banning ers include Springfield, Mass.- However, the store sells only the records. The latest total is also up would have broadened the state’s certain types of guns or clips, sales based Smith & Wesson Holding Corp.; occasional used AR-15 or semi- by almost 4,000 since Dec. 1. concealed weapons law to allow of those items have increased. Hartford, Conn.-based Colt’s Manu- auto AK-47. Instead, the gun shop There were 4,198 active federal legally hidden handguns in “It seems like everyone wants to facturing Co.; Southport, Conn.- specializes in used and vintage firearms sales licenses in Michi- churches, schools and day care come out and buy them,” he said. based Sturm, Ruger & Co. Inc.; and firearms, Graebner said. gan in 2011, the bulk of them being centers. Crain’s reporter Chris Gautz Exeter, N.H.-based SIG Sauer Inc., “The new ones are especially ex- retail gun dealers and collectors of The renewed national debate on contributed to this story. the U.S. subsidiary of a Swiss-Ger- pensive for me and my clientele,” “curios and relics,” according to gun control laws since the Con- Bill Shea: (313) 446-1626, man firearms maker. he said. the latest available data from the necticut shootings has helped [email protected]. Twitter: Even low-volume gun stores Eric Sanders, a clerk at Wessel, Bureau of Alcohol, Tobacco, Firearms drive firearms sales as consumers @bill_shea19 20130107-NEWS--0021-NAT-CCI-CD_-- 1/4/2013 4:58 PM Page 1

January 7, 2013 CRAIN’S DETROIT BUSINESS Page 21 Compuware: Bid becomes high-stakes chess match www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] about how to proceed. Both sides Singer, who rarely does inter- New York-based Jefferies & Co. Inc. Delphi’s headquarters have ASSOCIATE PUBLISHER Marla Wise, (313) 446- expect a lull in the takeover news views, didn’t respond to a request Schwartz said other buyers been moved from Troy to the U.K. 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- until at least Jan. 22, the date of for an interview for this article. could be expected to emerge, but Most of its U.S. manufacturing 0460 or [email protected] what will be a highly anticipated In 2009, The New York Times Jim Yin, an equity research ana- plants have been shut down and MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] quarterly report, given that El- DealBook blog said: “Of all the lyst with New York-based S&P Cap- their production moved overseas, MANAGER, DIGITAL CONTENT STRATEGY Nancy liott’s contention is that Com- hedge fund managers on Wall ital IQ, expects things to play out much of it in China. Hanus, (313) 446-1621 or [email protected] DEPUTY MANAGING EDITOR Daniel Duggan, (313) puware’s poor management is un- Street, Paul E. Singer is one the slowly, that there won’t be other For the third quarter that ended 446-0414 or [email protected] dermining its value. most revered.” eager suitors to jump in and drive Sept. 30, Delphi reported net in- SENIOR EDITOR Bob Allen, (313) 446-0344 or [email protected] Will the report for the third An investment manager in up the share price of a prospective come of $269 million on revenue of WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- quarter of its fiscal year that ended Southeast Michigan who is famil- deal. $3.7 billion. 8158 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or Dec. 31 show a company stuck in iar with Elliott but asked not to be “This will drag out for another [email protected] the doldrums, with another quar- named said: “Elliott tends to fly year or two, until the stock is SENIOR DESIGNER Jeff Johnston, (313) 446-1608 The Romney angle or [email protected] ter of lackluster revenue and dis- under the radar and is less visible dragged down and Compuware DATA EDITOR Brianna Reilly, (313) 446-0418, appointing net income? Or will than many other hedge funds, but throws in the towel,” he said. “El- Singer’s close ties to the Repub- [email protected] WEB PRODUCER Norman Witte III, (313) 446- there be better top- and bottom- for those who know the hedge liott isn’t going away, and others lican Party include equally close 6059, [email protected] line numbers that buttress the fund world, Elliott Capital is will then step in.” ties to Mitt and Ann Romney. EDITORIAL SUPPORT (313) 446-0419; YahNica Crawford, (313) 446-0329 claim by Compuware executives viewed as one of the best. Top He donated $1 million to Rom- NEWSROOM (313) 446-0329, FAX (313) 446- that the company is on track to im- shelf, for sure.” ney’s super PAC in 2011, and one of 1687 TIP LINE (313) 446-6766 prove share price, and that it is a The Delphi deal Ann Romney’s trusts has invested REPORTERS much better run company than re- After Delphi Corp. filed for bank- at least $1 million with Elliott Daniel Duggan, deputy managing editor: (313) Interesting deals pay off 446-0414 or [email protected] cent quarters have shown? ruptcy in 2005 — in what was then Management. The investment Jay Greene, senior reporter: Covers health care, As shareholders and observers While Elliott Management has the largest bankruptcy filing in could be much higher, but federal insurance, energy utilities and the environment. (313) 446-0325 or [email protected] await a formal response from the been an avid investor in bad debt, U.S. history — Elliott Manage- financial disclosures Ann Romney Chad Halcom: Covers litigation, higher education, Compuware board to Elliott’s of- Singer presciently warned finance ment, Connecticut-based Silver filed in 2011 and 2012 didn’t re- non-automotive manufacturing, defense contracting and Oakland and Macomb counties. fer to buy the company for $11 a ministers from the G7 nations in Point Capital LP and New York- quire the actual amount to be list- (313) 446-6796 or [email protected] share and take it private, an offer 2007 that major banks were creat- based Paulson & Co. Inc. began buy- ed. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or generally expected to be rebuffed, ing “radioactive” securities from ing up its old debt. An irony of the presidential [email protected] it’s safe to assume that Elliott ex- subprime mortgages, and he deliv- The debt was considered junk, election is that Mitt Romney criti- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, ecutives, particularly portfolio ered a speech in a conference in and, according to published re- cized Obama for the auto bailout and transportation. (313) 446-1626 or manager Jesse Cohn, are prepar- 2006 that advised against the pur- ports, much of it was bought by the that he incorrectly said shipped [email protected] Nathan Skid, multimedia editor. Also covers the ing for a battle, if needed, that chase of the collateralized debt hedge funds for 20 cents on the dol- Chrysler jobs to China, after his food industry and entertainment. (313) 446-1654, lives up to the hedge fund’s repu- obligations that later were at the lar. wife had profited from her share of [email protected] Dustin Walsh: Covers the business of law, auto tation. heart of the collapse of the housing In October 2009, Delphi emerged Elliott’s profits from the Delphi suppliers and steel. (313) 446-6042 or market. from bankruptcy, with Elliott and deal that did in fact send thou- [email protected] Sherri Welch: Covers nonprofits, services, retail Since 1977, Elliott claims to have its partners the winning bidders sands of jobs abroad. and hospitality. (313) 446-1694 or Hard-nosed, big returns generated a compounded annual against Los Angeles-based Plat- Ann Romney, as an Elliott in- [email protected] LANSING BUREAU Elliott Management, one of the rate of return of more than 14 per- inum Equity LLC, the private equity vestor, may also profit from a Chris Gautz: Covers business issues at the Capitol first hedge funds, was founded in cent for investors and only two firm founded by Tom Gores, who Compuware deal. and utilities. (517) 403-4403 or [email protected]. 1977 by Paul Singer, a Harvard Law down years, in 1998 and 2008. later bought the Detroit Pistons. The Compuware board is expect- ADVERTISING School grad who left the invest- Those returns have come from typ- The key to the winning bid was ed to turn down Elliott’s initial of- SALES INQUIRIES: (313) 446-6052; FAX (313) ment banking firm of Donaldson, ical transactions and deals that that Elliott and the other funds fer of $11 a share. After the offer 393-0997 Lufkin & Jenrette Inc. to form the were anything but. agreed to forgive $3.5 billion in was made, Compuware CEO Bob SALES MANAGER: Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. firm after raising $1.3 million from Some examples: Delphi debt. Bankruptcy rules al- Paul wrote in an email to employ- Langan family and friends. Ⅲ In October 2012, a Cayman Is- lowed their bid to reflect the face ees that the company’s worth “is ADVERTISING SALES Christine Galasso, Lori Today, Elliott, which is Singer’s land fund controlled by Elliott, value of the debt and not what the far greater than that which has Tournay Liggett, Dale Smolinski, Sarah Stachowicz middle name, has more than $20 bil- NML Capital Ltd., won a court order firms had actually paid to buy it. been offered, and we are convinced CLASSIFIED SALES (313)-446-0351 lion under management, according in Ghana to seize an Argentine The previous February, Presi- that we — all of us together — are EVENTS DIRECTOR Nicole LaPointe DIRECTOR, INTEGRATED MARKETING Eric Cedo to Cohn. Navy vessel, the ARA Libertad, dent Barack Obama had formed more than capable of unlocking SALES PROMOTION MANAGER Karin Pitrone Singer, who is still active in over claimed unpaid sovereign the Presidential Task Force on the shareholder value.” ASSISTANT EVENTS MANAGER Kacey Anderson managing the firm on a daily basis debt of $350 million. The Cayman Auto Industry to administer the If, as has happened in other El- SENIOR PRODUCER FOR DIGITAL/ONLINE at age 68, is an ardent fiscal con- fund offered to let the ship leave bailout of the U.S. auto industry, liott takeover bids, another suitor PRODUCTS Pierrette Dagg servative. He was a major donor to Ghana if Argentina posted a $20 and had hired Rattner, himself a comes in with a higher price, El- MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford both of George W. Bush’s success- million bond. New York hedge fund manager, to liott — and Ann Romney — will CUSTOMER SERVICE ful presidential campaigns and Argentina refused, but the ship oversee it. profit. the Swift Boat campaign that criti- was allowed to leave Ghana in De- In his book Overhaul, Rattner The third Romney angle is that PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams cized John Kerry. According to cember after the International Tri- described a meeting in March 2009 the Compuware board includes MAIN NUMBER: Call (877) 824-9374 or write the Wall Street Journal, he was the bunal for the Law of the Sea ruled with Elliott and others that decid- Mitt’s brother, G. Scott Romney, a [email protected] SUBSCRIPTIONS $59 one year, $98 two years. largest Wall Street donor to Re- that a United Nations convention ed GM’s fate, according to Rattner. partner at the Detroit-based law Out of state, $79 one year, $138 for two years. publican candidates in the past gives warships immunity from Delphi’s hedge fund owners de- firm Honigman Miller Schwartz and Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or election cycle, writing checks to- civil claims when they are docked manded that Delphi get $350 mil- Cohn LLP who has been on the (877) 824-9374. taling $3.2 million, including $1 in foreign ports. lion from the U.S. Treasury and board since 1996. SINGLE COPIES: (877) 824-9374 Ⅲ REPRINTS: (800) 290-5460, ext. 125; million to Restore Our Future Inc., In 1995, Elliott invested $11 GM immediately. Lisa Elkin, Compuware’s vice (717) 505-9701, ext. 125; or lindsay.wilson the super PAC that supported million in distressed sovereign Pe- “Because if you don’t, we’ll shut president of communications and @theygsgroup.com Romney. ruvian debt, which later led to a you down,” Rattner quoted them investor relations, told Crain’s TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0406 or e-mail [email protected] Singer also gave $1 million to court judgment of $58 million. as saying, the threat aimed at GM. that Scott Romney, unlike his sis- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY help fund the Republican conven- Ⅲ In 2002 and 2003, a British Later, in a sworn deposition, ter-in-law, is not an investor in El- CRAIN COMMUNICATIONS INC. tion in Tampa. Court awarded Elliott $100 million John Sheehan, Delphi’s CFO at the liott Management. CHAIRMAN Keith E. Crain Singer is reported to have urged for a debt by Congo-Brazzaville time, said the hedge funds had Romney may share Paul’s belief PRESIDENT Rance Crain TREASURER Mary Kay Crain Paul Ryan to run for president and that it had bought, reportedly for done “an analysis of the cost to GM that the Compuware bid at $11 un- Executive Vice President/Operations later was influential in getting $2.3 million; $39 million of the $100 if Delphi were unwilling or unable dervalues the company and that William A. Morrow Group Vice President/Technology, Romney to pick him as his vice million was later recouped by in- to provide supply to GM.” the company can unlock share- Manufacturing, Circulation presidential candidate. tercepting the proceeds of an oil The result? It would take tens of holder value moving forward, but, Robert C. Adams Vice President/Production & Manufacturing Singer’s interests range beyond sale by the Congo to a Swiss com- billions of dollars and many according to reports on insider Dave Kamis the economic. He also founded the pany. months for GM to replace Delphi’s trading filed with the U.S. Securi- Chief Information Officer Paul Dalpiaz Paul E. Singer Family Foundation, More prosaic, but more perti- parts, said Sheehan, time and ties and Exchange Commission, he Chief Human Resources Officer whose beneficiaries include the nent to Compuware, is Elliott’s money that GM didn’t have. still has sold stock. Margee Kaczmarek G.D. Crain Jr. Founder (1885-1973) Harvard Graduate School of record in recent years of announc- Rattner wrote that he could not On Aug. 27, Romney was vested Mrs. G.D. Crain Jr. Chairman (1911-1996) Education, the New York City Police ing takeover bids of underper- believe the hedge funds would with 15,233 shares of stock at $0 a EDITORIAL & BUSINESS OFFICES: Foundation, the Save the Music Foun- forming IT companies, then bene- “want to be perceived as holding share as compensation for his 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 dation, the Food Bank for New York fitting when other suitors upped GM hostage at such a precarious board work. On Sept. 10, he sold Cable address: TWX 248-221-5122 AUTNEW DET City and the National Gay and Lesbian the ante. moment,” and he likened the de- the shares at between $10 and CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the Task Force Action Fund. Those companies include Packe- mand to “extortion by the Barbary $10.08 a share. third week of August, and no issue the third week of December by Crain Communications Inc. at Singer, whose gay son married teer Networks Inc., which was sold pirates.” Romney declined requests via 1155 Gratiot Ave., Detroit MI 48207-2732. his partner in Massachusetts, was in 2008; Novell Inc., which was sold But he met it. email and phone by Crain’s to com- Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send a prime bankroller of the initiative in 2010; and Epicor Software Corp., In November 2011, Delphi went ment on the sale. address changes to CRAIN’S DETROIT BUSINESS, in New York in 2011 that legalized which was sold in 2011. All three public again, as Delphi Automotive Tom Henderson: (313) 446-0337, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in same-sex marriage. This year, he companies were acquired by other plc (NYSE: DLPH), a $530 million [email protected]. Twitter: U.S.A. donated $1 million to a super PAC companies, at an average premi- IPO at $22 a share. The stock @tomhenderson2 Entire contents copyright 2013 by Crain Communications Inc. All rights reserved. named American Unity PAC that lob- um of 19 percent over Elliott’s orig- opened Friday at $38.48 a share. El- Dustin Walsh: (313) 446-6042, Reproduction or use of editorial content in any bied Republican candidates for of- inal offer, according to Aaron liott Management remains its [email protected]. Twitter: manner without permission is strictly prohibited. fice to support same-sex marriage. Schwartz, an equity analyst for largest shareholder. @dustsinpwalsh 20130107-NEWS--0022-NAT-CCI-CD_-- 1/4/2013 4:59 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 7, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF DEC. 29-JAN. 4

ries, and he would seek to Ⅲ Dickinson Wright PLLC 50 indicates an expanding have “When We Went Best Homes announced that Phoenix- economy. Gilbert still on MAD!” shown in that se- based Mariscal, Weeks, Ⅲ The Detroit area econ- ries. McIntyre & Friedlander PA omy outpaced the national For more information, go acquires GR firm has been merged into the economy in 2012 in a wide to peebofilm.com/wwwm. Detroit-based law firm. variety of metrics but will armington Hills- Ⅲ Troy-based Flagstar see somewhat of a slow- a buying binge Aco sold on state based Best Homes Ti- Bancorp Inc. announced it down in 2013, said a report F tle Agency LLC, a title entered into an agreement released by Pittsburgh- Looking for Faygo pop, insurance, title examina- PNC Financial Services f Dan Gilbert’s New to sell a substantial portion based A MAD documentary Sanders hot fudge topping or tion and closing services Group Inc. Year’s resolution is to of its commercial loan port- , the holding com- Better Made potato chips? firm, has acquired Grand PNC Bank I keep buying buildings A local film producer folio in the northeast U.S. pany for . Look no further than Rapids-based The Closing Of- Ⅲ The Michigan Manufac- in Detroit, he’s off to a good wants to pay tribute to the to CIT Bank, commercial your local Aco. Yes, the fice Title Agency. turing Technology Center in start. American smorgasbord of banking subsidiary of Liv- hardware store. The acquisition adds six Plymouth is getting a $1.1 The latest from down- cheeky humor, MAD maga- ingston, N.J.-based CIT Aco Home, Garden & Hard- West Michigan locations to million-plus U.S. Department town real estate circles is zine, through an upcoming Group Inc. Flagstar said it ware in December began Best Homes’ two in Farm- of Commerce grant aimed at that Gilbert and his real es- documentary. expects the purchase price stocking the shelves at its ington Hills and Saginaw helping small and midsize tate team have the 283,000- The film — to be named to be about $779 million. 66 stores and its online cup- and will add 15 employees to manufacturers throughout square-foot office tower “When We Went MAD!” — board with official mer- the company’s current 45. the state expand and create 1001 Woodward under con- will focus on the legacy of chandise that includes not high-tech jobs, AP reported. tract to be purchased. the comic book-ish maga- OTHER NEWS only popular brands like Ⅲ Crews renovating the If true, it makes the Quick- zine, not to mention the Ⅲ Detroit’s accumulated Velvet Peanut Butter and COMPANY NEWS Pontiac Silverdome deflated en Loans Inc. founder the iconically impish image of general fund deficit for the Dearborn Sausage, but also Ⅲ REIS-Northville LLC, a the roof ahead of the start true king of Campus Mar- Alfred E. Neuman, that has fiscal year that ended June water bottles, baseball caps joint venture between REI In- of renovations this spring tius. To own 1001 Wood- been a landmark of Ameri- 30 is nearly $327 million, up and T-shirts, all sporting vestment Group Inc. and by stadium owner Triple In- ward would mean Gilbert can satire for 60 years. from the roughly $196 mil- the Pure Michigan logo. Schostak Bros. & Co., plans to vestment Group LLC. Up- owns, or leases space in, Alan Bernstein said he has lion shortfall the city report- The Farmington Hills- begin construction on the dates will include a new every major office building been working on the film ed for the 2010-11 fiscal year, based chain’s roots go back first phase of a mixed-use roof with solar panels. near the park with the ex- for the past three years and according to an audit, the 60 years to its first location development in Northville Ⅲ Nearly 1.3 million pa- ception of One Kennedy has interviewed 20 former Detroit Free Press reported. in Dearborn. Township on 82 acres that trons visited the Detroit Zoo Square. or current MAD writers, Ⅲ The U.S. Army Corps of Aco, which operates ex- are part of the land where in Royal Oak in 2012 — the In addition to leasing artists and editors. That in- Engineers has awarded a $14 cludes Al Jaffee, who came clusively in Michigan, said the former state-owned seventh consecutive year at- 240,000 square feet in the Northville Regional Psychiatric million contract for the de- up with MAD’s famous fold- it sees the move as a way to tendance topped 1 million. Compuware Building, he and Hospital operated. The Univer- sign and construction of a in picture feature. support Michigan suppliers his group own the First Na- sity of Michigan Health System new U.S. Border Patrol sta- Bernstein and Portland, and local job creation. tional Building and Chase plans to locate a $39 million tion in Detroit, AP report- Ore.-based co-producer OBITUARIES Tower. outpatient health center at ed. Detroit-based Turner Doug Gilford, operating Ⅲ Jim Herrington, veteran One real estate source A climb for water Northville Park Place. Construction Co. will handle through Pleasant Ridge- reporter for WXYZ-Channel said Gilbert’s people in- Ⅲ Title Source Inc., a na- the project, set for comple- based Potrzebie Pictures LLC Cynthia Koenig, founder of quired about a short-term tional title and closing ser- tion in spring 2015. 7, died Jan. 3 from compli- the Ann Arbor-based non- lease at 1001 Woodward and — the name is a nod to a vices agency that relocated Ⅲ A federal judge ruled cations of rheumatoid profit Wello and its rolling building owner Dimitrios running joke in the maga- its headquarters to Detroit that Domino’s Farms Corp., arthritis. He was 84. water wheel, is taking part “Jim” Papas said, “How zine — will launch a 30-day from Troy last summer, an- the Ann Arbor Township- Ⅲ Imre Molnar, College for in a seven-day climb of Mt. about you just buy it?” Kickstarter campaign on nounced plans to hire 375 based property manage- Creative Papas did not return two Jan. 10 to raise $50,000 need- Kilimanjaro to raise aware- employees for its Detroit of- ment company owned by Studies phone messages left by ed to finish the project. ness and support for clean fice by March. Domino’s Pizza founder Tom provost, Crain’s. Multiple Quicken The highest contributor drinking water. Ⅲ Troy-based Talmer Ban- Monaghan, doesn’t have to died Dec. 28 Loans representatives de- level in the crowdfunding It’s part of the “Summit corp Inc. announced it com- immediately implement of a heart clined to comment. campaign is $10,000 or on the Summit” event, pleted the purchase of War- mandatory contraception attack. He Terms of the deal aren’t more. Contributors at that founded by Grammy-nomi- ren, Ohio-based First Place coverage in the new health was 61. known, nor is the closing level would be listed as ex- nated musician Kenna four Bank from parent company care law. Monaghan has Ⅲ Marian- date. ecutive producers in the years ago. Koenig is one of a First Place Financial Corp. called contraception na Kay But considering that Pa- credits and receive swag re- dozen team members who Siblani, Talmer will pay First Place “gravely immoral.” Molnar pas bought the building for lated to the film. are tweeting as they climb bondholders $60 million Ⅲ The Southeast Michigan longtime $5.5 million in 2008, chances Bernstein said the final the peak in Tanzania. and invest $200 million in Purchasing Managers Index executive editor of The are good that the Detroit- product would be of similar They began their ascent the bank, giving it capital remained stable in Decem- Arab American News in based investor and entrepre- style as PBS’ “American Ex- Jan. 2 and are set to reach to meet federal regulatory ber, falling one-tenth of a Dearborn, died of cancer neur is looking at a nice exit. perience” documentary se- the peak Tuesday. requirements. point to 51.8. A value above Jan. 1. She was 64.

In Memoriam 2012

Ⅲ Ruben Acosta, 52, co-managing American Healthcare Corp., July 14. Ⅲ Charles Jones, 82, former Detroit Ⅲ Bella Marshall, 62, former Wayne Ⅲ Irving Rose, 86, real estate partner of the Detroit business law Ⅲ Sonny Eliot, 91, legendary Detroit Tigers vice president and ex-vice County COO and widow of the late developer and Fidelity Bank founder, firm Williams Acosta PLLC and a weatherman on WWJ 950, Nov. 16. chairman of Little Caesar Enterprises Don Barden, May 1. July 22. Inc. and member of its board, Aug. 13. board member of the U.S. Hispanic Ⅲ Jim Fitzgerald, 85, longtime Ⅲ Imre Molnar, 61, longtime Ⅲ Thomas Russell, 88, chairman and Chamber of Commerce, March 17. Detroit-area newspaperman and Ⅲ Alex Karras, 77, the lineman who academic chief at the College for CEO of Southfield-based Federal-Mogul Ⅲ Gus Anton, 85, owner of the columnist, Jan. 11. anchored the Detroit Lions’ defense Creative Studies, Dec. 28. Corp. during the 1980s, June 20. former New Hellas restaurant in Ⅲ in the 1960s and then went on to an Ⅲ Jeff Murri, 50, longtime general Ⅲ Stanley Seneker, 81, the former Greektown, July 25. Peter Fletcher, 80, a prominent acting career, Oct. 10. Republican supporter and owner of manager and vice president of Detroit Ford Motor Co. CFO who played a key Ⅲ Margaret Barnes, 90, who helped the Credit Bureau of Ypsilanti Inc., Ⅲ Dan Knott, 51, who as Chrysler Fox affiliate WJBK-TV2, Feb. 2. role in the development of Fairlane her husband, Donald, grow Allen Group LLC’s purchasing boss Town Center and the former Ritz- Sept. 29. Ⅲ Stanford Ovshinsky, 89, a pioneer Park-based Belle Tire from one store restored the automaker’s reputation Carlton, among other projects, June in photovoltaics who founded Energy into a chain, April 23. Ⅲ Barbara Gattorn, 75, longtime with suppliers, April 30. 28. leader in the Detroit Regional Conversion Devices Inc. in 1960 to Ⅲ Ben Burns, 72, former executive Ⅲ George Kuhn, 87, former Oakland Ⅲ Emanuel Steward, 68, owner of Chamber, nonprofit and civic affairs, explore alternative forms of energy, editor of The Detroit News, journalism County drain commissioner, Berkley Oct. 17. Detroit’s Kronk Gym and trainer of educator and a Michigan Journalism May 12. mayor and state senator, April 9. such boxing champions as Thomas Ⅲ S. Glen Paulsen, 95, former Hall of Fame inductee, Sept. 7. Ⅲ John Gongos, 51, founder and CEO Ⅲ Ivan Ludington Jr., 87, former Hearns, Lennox Lewis and Wladimir president of Cranbrook Academy of Ⅲ Lincoln Cavalieri, 94, who ran of Auburn-Hills based marketing firm president of the Detroit Athletic Club Klitschko, Oct. 25. Olympia Stadium for almost 30 years Gongos Research Inc., July 25. and former president and CEO of Art and founder of Glen Paulsen and Ⅲ Champ Summers, 66, former and was a Detroit Red Wings Ⅲ Daniel Hayes, 84, former executive Ludington News Co., Dec. 1. Associates Inc., which later became Detroit Tigers outfielder, Oct. 11. TMP, Nov. 25. executive, Dec. 5. vice president of the Detroit Auto Ⅲ Budd Lynch, 95, the Detroit Red Ⅲ Gabriel Werba, 82, a founding Ⅲ Sam Cupp, 64, an entrepreneur, Dealers Association and one of the Wings’ longtime public address Ⅲ Harold “Red” Poling, 86, the CEO principal of the Durocher Dixson CEO of Warren-based Hamilton men credited with changing the announcer at Joe Louis Arena who who helped revive Ford Motor Co. Werba LLC public and financial Chevrolet Inc. and founder of the name of the Detroit Auto Show to the began his Red Wings career in 1949 after steering the automaker through relations firm and earlier president nonprofit mentoring program Winning North American International Auto as the team’s radio play-by-play the recession of the early 1990s, and COO of the Anthony M. Franco Futures, June 21. Show, Sept. 22. announcer, Oct. 9. May 12. Inc. public relations firm, Nov. 7. Ⅲ Ronald Dobbins, 77, former Ⅲ H. Clay Howell, 82, former CEO of Ⅲ Robb Mahr, 75, a longtime radio Ⅲ John Porter, 80, Eastern Michigan Ⅲ Jeff Zaslow, 53, author and president and CEO of OmniCare Health United Way for Southeastern and TV automotive reporter in University’s president from 1979 to husband of WJBK-TV2 reporter Sherry Plan and former COO of United Michigan, Nov. 15. Southeast Michigan, Oct. 16. 1989, June 27. Margolis, Feb. 10. DBpageAD_DBpageAD.qxd 1/4/2013 12:19 PM Page 1 DBpageAD_DBpageAD.qxd 1/4/2013 1:52 PM Page 1

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