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www.crainsdetroit.com Vol. 30, No. 46 NOVEMBER 17 – 23, 2014 $2 a copy; $59 a year
©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 Fork in OU gets $3.7M gift for its eye institute
terest it generates — about $164,000 Have you herd? Hunting is the Bequest made by in the first year — to attract two new near and dear to businesses researchers. Both of those re- eye researcher searchers will hold V. Everett Kin- sey Endowed Professorships. “(Kinsey Stare) just really wanted Minority small biz gets lift Kinsey’s widow the institute to prosper, be strong in from $100M loan fund the future, and that’s what we hope road? BY KIRK PINHO to do with this award,” said Frank CRAIN’S DETROIT BUSINESS Giblin, professor A new Macomb movie of biomedical sci- When Irene Kinsey Stare died at ences at OU and complex? Emagine that Bus rapid transit study draws age 100 in March 2013, Oakland Uni- the institute’s di- versity already knew she was donat- rector for the last ing just over $1 million to its Eye Re- decade. concerns over downtown search Institute, which her first In 2004, she Inside husband, renowned eye researcher pledged a stops, off-Woodward loop V. Everett Kinsey, co-founded in $525,000 planned First job for 1968. gift to establish But what OU didn’t know was that the endowed new Wayne BY BILL SHEA Giblin CRAIN’S DETROIT BUSINESS Kinsey Stare changed her will two professorship. exec Evans: months before her death to increase She pledged another $500,000 two Build trust, ed flags are being raised by transit insid- the gift to nearly $3.7 million — mak- months before her death. ers over aspects of a new study that out- ing her the single-largest donor in However, OU was kept in the the institute’s 46-year history. dark about the rest of the gift, the Page 6 lines a proposed rapid transit bus service R The scope of the gift also opens money for which came from the that would stretch the entire 27 miles of Wood- the door to a more substantial in- Kinseys’ OU and Wayne State Uni- This Just In ward Avenue from downtown Detroit to Pontiac. vestment in new eye research at OU. versity retirement savings, interest Specifically, the concerns are focused on The OU institute, which conducts on which had been compounding Kingsley Inn drops Radisson the report’s recommendation of just two down- research on various ophthalmic dis- for decades, said Giblin. It wasn’t until six months later town Detroit stops — the Rosa Parks Transit eases in its efforts to prevent blind- affiliation, begins renovations ness and vision loss, will invest that Center and Grand Circus Park — and the deci- The Radisson Kingsley Inn in money and use 4.5 percent of the in- See OU, Page 36 Bloomfield Hills is ending its sion to split the line into a loop off of Wood- decade-long affiliation with ward south of Grand Boulevard using Cass Av- Carlson Rezidor’s Radisson enue and John R Street. brand to return to an indepen- “Those stops are not that close to where the COOLEST PLACES TO WORK IN MICHIGAN dent Kingsley Inn banner. major employment centers are,” said Scott An- Kingsley Ventures LLC, which was registered to John Frasco, derson, a longtime transit researcher who sold the hotel to Birmingham- spent more than 25 years in the University of De- based real estate company The troit Mercy’s College of Engineering and Science. Cool places Elia Group in June for an “I don’t imagine that’s going to be a pleasant undisclosed amount. The flag walking option for a lot of people.” change was set to take effect Saturday. If the bus rapid transit stops are not within Elia contracted Troy-based a short walking distance of people’s jobs, Hotel Investment Services Inc. as worth noting they’ll forgo the service and drive, he said. The the new management compa- preferred option in the study has the two stops ny. rom generous time off to happy hour up to a half mile from major employers. A multimillion-dollar reno- outings, employers who understand vation at the 150-room hotel is the value of a dedicated workforce show underway. As part of that, the ISTOCK PHOTO See Bus, Page 34 F appreciation. Employers that went the extra mile have hotel has opened the new Nosh & Rye Deli and a fitness center The proposed earned the title of Crain’s Cool Places to Work. For many, it and installed new high-speed route for a boils down to flexibility and empowering employees – along regional bus rapid Internet, lighting and carpet- with an occasional break for a manicure or a visit to the ing. transit system Additional renovations to along Woodward margarita machine. This package, researched by Best Com- Avenue has only the building, lobby, restau- two stops in panies Group, gathered data from employees. rant, lounge and guest rooms downtown Also see crainsdetroit.com/coolplaces are planned, the hotel said in Detroit. One is the a news release. Rosa Parks SECTION BEGINS ON PAGE 11 — Sherri Welch Transit Center. WIKIPEDIA
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Page 2 CRAIN’S DETROIT BUSINESS November 17, 2014
MICHIGAN BRIEFS Southfield developer seeks to 200,000 gallons of beer each year. Ⅲ Grand Rapids-based 616 Devel- save Holland mall by killing mall In latest moves, Dow shows it gets the (Third) Point opment LLC unveiled a $22 million Southfield-based Versa Develop- project in the city’s downtown that ment wants Bingham Farms-based It was a busy week for Midland-based Dow Chemi- Partly in response to Third Point’s call for greater it calls Lofts on Monroe, MiBiz re- Rogvoy Architects, the architect be- cal Co., under pressure from investor Third Point LLC transparency, Dow is changing how it reports re- ported. The renovation of the for- hind the successful “de-malling” of to boost profitability. sults from its business segments, in part to provide mer Sackner Products furniture Centerpointe Mall in Grand Rapids, First, Dow agreed to sell Buffalo Grove, Ill.-based easier comparisons with other companies. factory will feature 85 market-rate to design a similar transformation Angus Chemical Co., which makes products used in In still more news involving Dow, Corning Inc., its apartments and 40,000 square feet for the struggling Westshore Mall paints and metalworking, for $1.22 billion to the San partner in a 71-year-old silicone venture that’s on of ground-floor retail. in Holland Township, MLive.com Francisco-based private equity firm Golden Gate Cap- pace for $6 billion of annual sales, wants to sell its Ⅲ Kentwood-based Ranir, now the reported. ital Corp. half of the business. John Roberts, an analyst at UBS largest North American supplier of Greg Erne, a partner in Versa, Next, Chairman and CEO Andrew Liveris in- Securities LLC, thinks Dow is trying to buy Dow store-brand oral care products, has said the shopping center along U.S. creased his goal for divesting low-margin units to a Corning. acquired Oralys Dental of France, 31 will get a new name, The Shops at range of $7 billion to $8.5 billion by mid-2016, $2.5 bil- Finally, also under pressure from Third Point, Dow MLive.com reported. Terms of the Westshore, along with a slimmed- lion more than previously targeted, partly by reduc- raised its dividend back to pre-financial crisis levels deal were not disclosed. down look. The mall will shrink by ing stakes in two Kuwaiti joint ventures. New York of 2008 and announced more share buybacks. The Ⅲ The Joint-religious Organizing 25 percent. Versa, along with out- City-based Third Point has counted Dow as its fourth-quarter payout will be 42 cents a share, up Network for Action and Hope, a group of-state investors, bought the prop- largest investment and wants Liveris to focus more from 37 cents. The latest $5 billion of stock repurchas- of mostly faith-based organiza- erty in 2012. At its peak in the on Dow’s petrochemicals business or spin it off. es brings the total buyback to $9.5 billion, Dow said. tions in the Battle Creek area, has 1990s, the one-story mall had four created a six-month pilot trans- anchors and more than 50 tenants. portation program that will charge if), natural gas customers can ex- Burnham and Pete Holmes are entering students who attended a small fee to transport workers in pect a 9 percent reduction in heat- among the headline performers for the Albion Public Schools, The Asso- the Fort Custer Industrial Park using Appraisal of state energy upbeat; ing bills. Heating oil and propane next year’s event, scheduled for ciated Press reported. The cost of church vans, the Battle Creek En- customers could see a 20 percent March 5-15. LaughFest honors the tuition, room and board is about quirer reported. it’s official: Winter not canceled to 30 percent decrease compared memory of comedian Gilda Rad- $47,000 per academic year. The Michigan Public Service Com- with last winter. About three- ner, who died of ovarian cancer in Ⅲ Galesburg-based Bell’s Brewery Find business news from mission, in its annual appraisal of fourths of Michigan households 1989. Inc. held a grand opening Nov. 10 around the state at crainsdetroit the projected price and availability heat with natural gas, while 8.5 Ⅲ Aquinas College in Grand for its Upper Hand Brewery in Escan- .com/crainsmichiganbusiness. of energy in the state throughout percent use propane, 9 percent Rapids is getting $2.5 million from aba, MLive.com reported. The $1.3 Sign up for the Crain’s Michi- winter, confirms that winter will electric, 4 percent wood and 1.5 the Wege Foundation to create a pro- million facility, which employs gan Morning e-newsletter at arrive. It also expects adequate en- percent heating oil. gram that links economics and five, is capable of producing crainsdetroit.com/emailsignup. ergy supplies, with demand for nat- ecology, MLive.com reported. Pe- ural gas and electricity expected to MICH-CELLANEOUS ter Wege, an Aquinas trustee for 13 increase slightly and use of all heat- years, died in July at age 94. His fa- CORRECTION ing fuels expected to decrease sig- Ⅲ Organizers of the annual Gil- ther founded office furniture man- Ⅲ A story on Page 10 of the Nov. 10 issue gave an incorrect date for the nificantly from last winter. da’s LaughFest comedy festival in ufacturer Steelcase Inc. Ⅲ Michigan CEO Summit. The correct date of the Business Leaders for Michi- If temperatures return to nor- Grand Rapids said George Lopez, Albion College will offer free tu- gan event was Thursday, Nov. 13, at the Westin Book Cadillac in Detroit. mal this heating season (note the Patton Oswalt, Wanda Sykes, Bo ition, room and board to up to 10
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November 17, 2014 CRAIN’S DETROIT BUSINESS Page 3 Bagging the big bucks Inside
years ago, the amount of money that hunters spend in the From apps to ads, spending on hunting state has skyrocketed. In Michigan, hunting-related spending on everything yields a bountiful harvest in Michigan from firearms to clothing to hotel rooms increased from $915.9 million in 2006 to $2.3 billion in 2011, according to BY BILL SHEA CRAIN’S DETROIT BUSINESS the most recent five-year federal hunting and fishing economy survey. That’s a 151 percent t wasn’t just shotguns and rifles that hundreds of thou- rate of growth. The ties that bind a book sands of hunters began lugging into the wilderness on In recent years, there has been an ex- Saturday for the start of Michigan’s two-week firearms plosion of marketing aimed at the business, and a family, Page 4 Ideer season. nearly 14 million people who hunt Some of them also bought new tools: mobile devices and in the U.S. — they spend nearly $40 apps to help find and manage their deer hunt, and bottles of billion — and there are new products Company index energy drink shots to help stay awake until the deer show up. and technologies aimed at hunters. These companies have significant mention in this Data shows that while there are fewer people hunting deer The Michigan Department of Natural week’s Crain’s Detroit Business: in Michigan than there were 10 Achatz Handmade Pie ...... 30 Resources doesn’t conduct its own Advanced Disposal ...... 35 economic impact analysis of hunt- Arrow Strategies ...... 18 Autism Alliance of Michigan ...... 26 ing, but officials said they expect Barton Malow ...... 37 in-state hunter spending to Beaumont Health ...... 23 match or exceed the federal data Brogan & Partners ...... 20 CEC Controls ...... 26 from three years ago. Carbon Media Group ...... 36 Center for Financial Planning ...... 21 See Deer, Page 36 Center for Healthcare Research and Transformation . 26 Clarity Communication Advisors ...... 21 Detroit Financial Review Commission ...... 10 Detroit Manufacturing Systems ...... 37 Detroit Medical Center ...... 23 Detroit Police Officers Association ...... 10 DigitasLBi ...... 13 Donigan McLogan Consultants ...... 34 Double Action Indoor Shooting Center and Gun Shop 36 Emagine Entertainment ...... 3 Eye Research Institute ...... 1 Faurecia ...... 37 FranNet ...... 30 Gensler ...... 11, 13 Gongos ...... 11, 16 Greenleaf Trust ...... 15 ISTOCK PHOTO Handmade Pie ...... 30 Henry Ford Health System ...... 23 IMG Book Bindery ...... 5 Theaters planned Innovation Ventures ...... 36 for Macomb McGraw Wentworth ...... 17 County and McLaren Physician Partners ...... 19 Minority-owned small biz Meridian Health Plan ...... 27 Birmingham will give Emagine Michigan Dept. of Insurance and Financial Services . 26 Entertainment Michigan Department of Natural Resources ...... 3 eight in Michigan Minority Supplier Development Council . 3, 37 gets lift with $100M fund Michigan. Minority Business Access Fund ...... 3 STUDIO 3 DESIGN INC MJR Theatres ...... 33 National Multiple Sclerosis Society, Mich. Chapter . . 12 BY DUSTIN WALSH vate equity Nemeth Law ...... 10 Oakland University ...... 1 CRAIN’S DETROIT BUSINESS firms. Green said Emagine to open theaters Preh ...... 20 Minority-owned businesses in the loans are de- Regional Transit Authority of Southeast Michigan . 34 Reliance One ...... 18 Southeast Michigan are getting a signed to make Rizzo Environmental Services ...... 35 financing boost from a new $100 minority-owned St. Joseph Mercy Ann Arbor ...... 23 million fund by the Michigan Mi- firms competi- in Macomb, B’ham by spring Southeast Michigan Council of Governments . . . . . 34 nority Supplier Development Council. tive on large Strand Theatre ...... 31 BY SHERRI WELCH dent and CEO of Troy-based Proc- Louis Green, the outgoing pres- projects, which Tessmer Book Bindery ...... 4 tor Financial Inc. ident and CEO of the Detroit- is something CRAIN’S DETROIT BUSINESS Transportation Riders United ...... 34 Both sites will look to take ad- based organization, announced Green they can’t do Warner Norcross & Judd ...... 11, 14 Emagine Entertainment Inc. plans vantage of demand for local movie the fund last week. The Minority without liquidi- Weber Shandwick ...... 15 to open its first theater in Ma- theaters, he said. And the Birm- West Construction Services ...... 31 Business Access Fund is designed ty. comb County before year’s end. ingham theater, downtown on Old to provide funding to small- and RUSH TO HIRE “The biggest And by next spring, it plans to Woodward Avenue, will include a medium-sized businesses by pro- issue of minori- Detroit open another in Birmingham’s new subscriber model to give Department index viding capital not readily avail- Manufacturing ty businesses is Palladium complex. members — customers who buy able by traditional banks. Systems has access to capi- BANKRUPTCIES ...... 7 The theaters, Emagine’s sev- annual memberships, patrons of Experts say access to capital re- 200 assembly tal,” Green told enth and eighth in the state, are jobs to fill, white-tablecloth restaurants in BUSINESS DIARY ...... 32 mains the biggest hurdle to the reporters at the expected to add $10 million to the Page 37 the city or guests of the Townsend CALENDAR ...... 32 success of minority-owned busi- announcement chain’s $35 million in annual rev- Hotel — exclusive dibs on the limit- CLASSIFIED ADS ...... 33 nesses, nationally and locally, but at the MMSDC enue in the coming year, co- ed number of seats. funds like the one from the MMS- headquarters in Detroit, along- founder and Chairman Paul CRAIN’S LIST ...... 29 DC are pushing them to compete. side Mayor Mike Duggan. “These Glantz said. KEITH CRAIN...... 8 The fund will allocate financing are problems worth solving.” “I believe movie-going is re- Macomb plans MARY KRAMER ...... 8 at or below bank rates to small- to The fund will give priority to lo- turning to its roots as neighbor- Troy-based Emagine current- OPINION ...... 8 midsized businesses — from cal firms working on major civil hood retail,” in contrast to the ly operates Emagine theaters in OTHER VOICES ...... 9 $100,000 to $25 million per transac- multiplex theaters within malls, PEOPLE ...... 32 tion — from four anonymous pri- See Fund, Page 37 said Glantz, 57, who is also presi- See Emagine, Page 33 RUMBLINGS ...... 38 What’s new on the menu? WEEK ON THE WEB ...... 38 THIS WEEK @ Catch up on the latest news about restaurants and the people who cook there, along with some spirited talk WWW.CRAINSDETROIT.COM about a Detroit distillery, crainsdetroit.com/punchbowl.
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Page 4 CRAIN’S DETROIT BUSINESS November 17, 2014
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Michigan’s PHOTOS/DAVID HALL Jim Tessmer, 71, (right) is teaching his daughter, Colleen Dickey, the family trade of book binding in the store Tessmer’s Premier grandfather opened in 1929. Top photo: Tessmer pages through a customer’s family Bible to be re-bound. Retained Executive Next generation learns vanishing craft of book binding Search Firm BY SHERRI WELCH carts around the small shop, cir- CRAIN’S DETROIT BUSINESS cling the antique presses, cutter Over 100 years It’s pretty much a and letter stamping machine — n a small brick building tucked and running into them every now of combined away in Mt. Clemens, Jim Tess- “ experience. break-even thing; and then. Imer looks over the shoulder of Herman Tessmer died in 1946 LLC his eldest daughter, Colleen Dick- that is all I shoot for. when Jim was just 3 or 4 years old, ey, at the 1800s Bible she holds, ex- International Executive Search leaving the operation of the busi- amining its flaking cover and bro- ness to his dad’s brother Cyril and Tel: +1.248.645.1551 • www.huntergroup.com Just to come in here ken spine. sister Eunice. They ran the place He smiles as he points and talks and work with the during the 1950s and 1960s. And about what they’ll need to do to when his dad retired in the mid- to bring the book back to life. old stuff is late 1960s, he came back and Tessmer, 71, is teaching his worked at the little company with daughter a dying art. enough. them. Over the past year, he’s shown ” Cyril died a few years later, and her each step in hand-binding a Jim Tessmer, Tessmer Book Bindery Melvin and Eunice continued to book, just as his father taught him operate the business. She died in and his grandfather taught his fa- “Just to come in here and work 1999, five years before Jim’s dad. ther. with this old stuff is enough.” Those skills — and companies like Tessmer Book Bindery — are Passing on the trade harder to find these days, industry A second home Melvin had begun to teach his sources say. Some of Tessmer’s earliest mem- son how to glue the backs of book Yet, there is demand from indi- ories took place in the little shop pages after they’d been grouped to- viduals, private clubs and com- his grandfather Herman — a jour- gether, cut the edge as needed and mercial and governmental clients neyman bookbinder — opened in use a drill press to drill holes in for the skills, they say. 1929 with Tessmer’s father, the spines of the pages so they Tessmer Book Bindery repairs Melvin, in a shop built by one of could be sewn together. Bibles and other old books and his uncles. The cardboard cover and cover binds genealogy reports for indi- The business couldn’t support a material would be cut to size and viduals. It also does work for the whole family, Tessmer said. So his glued before gold stamping was Roseville Masons, Hour Detroit Maga- father, who’d married his mother done on the cover and it was glued zine, the Consulate of Mexico in De- in 1939, went to work for the trade to the book — leaving the spine troit and the Detroit Athletic Club. binderies in downtown Detroit. unglued at the end of the book so it But Tessmer has never sought to But Melvin Tessmer would stop could open, Tessmer said. grow the business. by the family bindery often to lend The work couldn’t have been In a good year, the company a hand. And he’d take his children more different than the career might gross $20,000 and net a few with him. Tessmer had made for himself in thousand dollars, he said. Other The large iron wheel on one of the information technology indus- years, he has to “put a little in.” the antique presses was just per- try. He’d worked with Honeywell In- “It’s pretty much a break-even fect for “driving” around, Jim ternational Inc. for about 30 years, thing; that is all I shoot for,” Tess- Tessmer said. He and his brother mer said. also spent countless hours riding See Next Page 20141117-NEWS--0004,0005-NAT-CCI-CD_-- 11/14/2014 1:25 PM Page 2
November 17, 2014 CRAIN’S DETROIT BUSINESS Page 5
From Previous Page tion systems from Western Michi- president of the Mid-Michi- gan University. She worked at EDS gan Antiquarian Book Deal- fixing mainframe computer sys- Corp. for seven years before leav- ers Association. tems at first and later moving into ing to raise her two children. “It is a craft, and it’s not network wiring and repairs. Later, “My hobby has always been really being taught that he worked with small contracting scrapbooking, so it fit right in with much anymore.” companies like the former Sequoia what my interests are,” Dickey Some book binders are Diversified Products Inc. in Auburn said. “It’s just a family business we not advertising or not tak- Hills. don’t want to see go away.” ing new business because “I’d always come in on Satur- As she works with her father, they can’t keep up with days with dad — it was kind of a she’s finding demand, he said. That de- tradition,” she’s increas- mand is largely coming Tessmer said. ingly interested from baby boomers look- “We’d come in, to learn the ing to preserve family putz around family history. Bibles, books from their and eat some As she tidies up childhoods and geograph- lunch at the around the old ical books with county Beefcarver’s shop, she finds property records that down the road.” gifts from the showed family owner- Right up un- past, like an or- ship. til a month be- nate tea kettle Among the few book fore he died at of unknown ori- binders in the area is Do- age 94, Melvin gin and a lores Beveridge, owner of was in the shop, prayer book her IMG Book Bindery in St. his son said. aunt and uncle Clair Shores. Her brother Don Type blocks (above) Tessmer uses had made for leased space from Tessmer’s father the same equip- and a type cutter (left) themselves. and learned the trade from him be- are among the tools ment his father Tessmer said fore striking out on his own. He used at Tessmer Book and grandfa- his daughter taught her the trade before retir- Bindery in a declining ther used: a has gotten quite ing 12 years ago. craft that has fewer 1923 typesetter good at intri- Beveridge, 69, now operates IMG practitioners but — or “gold cate gold stamp- from her home and garage to earn remains in demand. stamper,” as he ing on books. a supplemental income and has calls it — and a “Plus she’s plenty of customers to keep her 7-foot press Jim Tessmer runs his book bindery from been putting busy, despite the fact that books used originally his cluttered workbench. the books to- are being supplanted by Kindles, to compress gether and she said. large books but drilling. She’s pretty much got the “I make a profit at year’s end. It now used as a platform upon whole thing,” he said. helps pay the bills for me,” she which smaller weights are placed “I know my dad would be de- said. “If I were younger and want- on smaller books. lighted.” ed to expand, I’m sure it would He also uses a 1914 Oswego cut- There are fewer and fewer book make a lot more money.” ter with a foot pedal to lower the binders in Michigan and the U.S., Sherri Welch: (313) 446-1694, blade onto thick stacks of pages or said Ray Walsh, owner of the Curi- [email protected]. Twitter: cardboard to be cut for book cov- ous Book Shop in East Lansing and @sherriwelch ers. “You know it’s up to speed when it starts rattling,” Tessmer said. So far he hasn’t had issues find- ing spare parts, he said, nodding toward the Oswego cutter, and adding that he’s heard someone at The Henry Ford still can replace worn leather belts like the ones the machine uses. Cutting the pages or cardboard for book covers is all part of a se- quence of putting a book together and binding it, Dickey said. It’s a sequence you repeat exactly the same way each time “because that’s how grandpa said to do it,” she said, smiling at her father. ‘We’re stubborn’ The company has continuously operated since it was founded, not Did you kknow?? always as a booming business, but continuous, Dickey said. The Health Care industry drives 1/6 of the U.S. economy. How has it survived for 85 years? ® “We’re stubborn,” Tessmer said simply. TCF Bank in Michigan has lent over $100 million to A year ago, he was diagnosed with terminal cancer. health care related businesses. Just as he came to the shop to help his father and spend time with him, his eldest daughter be- Did you know that TCF Bank®: gan working next to him on the gold stamping for Mexican Con- s Has health care banking experts on its team? sulate volumes and helping un- s bind and rebind the DAC’s mem- Is committed to growing its loan portfolio in the health care segment? ber newsletters so they could be s Finances medical practices? scanned electronically by another company. s Finances long term care projects? (The issues date back to the s Finances the senior-living industry? 1920s, Tessmer said. So far, he’s made it through the 1970s newslet- ters, with his daughter’s assis- tance.) To learn more, contact: “It’s an addicting business,” Janet Pasco at 248-740-1622 or [email protected] said Dickey, 48, who holds a mas- ter’s degree in computer engineer- ing from Oakland University and a bachelor’s in computer informa- ©2012 TCF National Bank. Member FDIC. www.tcfbank.com 20141117-NEWS--0006,0007-NAT-CCI-CD_-- 11/14/2014 3:41 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS November 17, 2014 Evans’ first priority as Wayne executive: Build public trust Warren Evans, the for- new county jail down- of business come Jan. 1? The next critical challenge is how the initial decision was made mer Detroit police chief town and the overseeing The county’s finances are really what to do with the unfinished jail to build it in the first place. But and Wayne County sher- of a county government the first order of business. But in project. Obviously that ties into since that’s water over the dam, I’m iff, will begin his new job of which the public is order to be successful with respect the financial structure, but it not going to make another decision as county executive on suspicious after several to the finances, we have to be far needs to get done, wherever it’s on that until it can be supported. Jan. 1 after easily handing former Ficano aides have more transparent than has been done at. In an ideal world, it gets his Republican challenger been convicted of or the case in the past. Building pub- done with the least amount of addi- What are you expecting from the a loss in the Nov. 4 general pleaded guilty to bribery lic trust and confidence in the so- tional cost to the taxpayers, wher- business community in your adminis- election. or obstruction of justice. lutions is going to be important to ever that is, because that’s more tration? Evans, 65, will come A graduate of Madonna dig ourselves out of the financial than $100 million that has been I think all the way through the into office with a full plat- University, the University of hole, and it’s very significant. wasted so far. I would like not to term, Detroit is starting to re- ter of challenges on his Detroit Mercy and the De- That’s the first order of business. waste anymore. bound and hopefully the county desk as he replaces Robert Q&A troit College of Law, Evans Transparency with which we oper- I’m open to just about anything will, too. Spurring economic Ficano. spoke with Crain’s re- ate will be critical to that. (regarding the jail), but part of the growth will be big to collecting tax- Those include a dis- Warren Evans, porter Kirk Pinho last problem with that is that the num- es from that tax base. tressed budget, a tumul- executive-elect week. What are the main challenges you bers have not been readily avail- Public-private partnerships can tuous project to build a What are your first orders foresee in your first months in office? able, which leads me to question be explored more than they have in the past. Those are the things that can be critically important. We need to work closely together because, at the end of the day, there are far more win-wins with our ability to work together than conflicts. Let’s get done what needs to be done now. I’m open and have been to the brightest minds I can find in business and govern- ment, but we are trying to make “CAN DTE ENERGY good, sound decisions with good, sound minds. That’s a function of the business of government, and the community.
HELP MY BUSINESS Talk about how you will work with Wayne County EDGE to bring more economic development. I’m not sure Wayne County SAVE MONEY?” EDGE will even be in play as it has been envisioned for the last number of years. That’s still something that DTE Energy wants to help your business manage your energy usage to save money. We we’re deciding, but my goal is not to offer all kinds of energy efficiency information and tools, plus easy tips to help you be more look for big, county projects to get us tied up in, but to look more at efficient. For instance, you’ll cut heating and cooling costs by simply adding insulation what local communities are doing where there isn’t any, especially along piping and ductwork. Install a programmable in economic development and being supportive of those. We might be thermostat to automatically lower heating and raise air conditioning temperatures during able to collaborate and make some off hours. Seal doors and windows to prevent air leaks. You’ll find even more ways to save suggestions on how that develop- ment in our 43 communities pulls using our Interactive Business tool. And you can find a certified contractor with our Energy together and ties together better than it has historically. Efficiency Directory. It’s easy. Just go to dteenergy.com/savenow and start saving today. We plan to have a full implemen- tation plan as to where we are going with the county within the first hundred days. We are still digesting data. We are starting with the tran- sition, which has been cooperative with the administration. How deep the (budget) hole is that we are in is critical to that. Then we will be talk- ing with the communities on what is vital and important to them.
What type of people can we expect short-listed for appointments to key posts in your administration? You’re going to see a diverse group of people, people with signif- icant expertise in the areas that they are in and people in both gov- ernment and business that the public can be comfortable are very confident and competent people. Hopefully, we bring others on board with us that see we are seri- ous about improving conditions in Wayne County. Sure, there will be holdovers (from the Ficano administration). I do not believe in throwing the baby out with the bathwater. That is pretty much what my predeces- sor did when he came into the of- fice. I certainly won’t punish them for being part of another adminis- Start saving today, visit: ration. Some people will stay and go. We’ll do a lot of interviewing dteenergy.com/savenow and vetting inside and outside of the administration, and that process has begun.
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November 17, 2014 CRAIN’S DETROIT BUSINESS Page 7
SBA approves $61 million for flood loans FOLLOW US ON INSTAGRAM A federal agency has approved The agency offers loan rates as low Crain’s Detroit Business has joined Instagram. If more than $61 million in disaster as 4 percent for businesses, 2.6 per- you’re a social media maven, follow us. assistance loans for Michigan cent for private nonprofits and 2.1 We’ve added the photo-sharing channel to our stable businesses and residents affected percent for individuals. of social identities, with plans to showcase images by severe August flooding. Macomb, Oakland and Wayne from our print and online publications as well as everyday scenes from across metro Detroit — from The U.S. Small Business Administra- counties were hit hardest by the se- the arrival of Detroit’s Christmas tree to artsy views tion announced last week that it had vere August storm and flooding. of city landmarks, such as Kresge Court and Eastern approved about 2,900 disaster loans. President Barack Obama signed a Market. Residents and businesses can apply disaster declaration for Michigan in Happy photo filtering! Here’s the rest of our social Do you have any favorite Detroit-area Instagrammers? channels: Facebook for the loans until Nov. 24. September at the request of Gov. Tell us about them. (www.facebook.com/CrainsDetroit), Twitter The SBA Michigan district di- Rick Snyder. The cost to repair the Plus, each week on CrainsDetroit.com, we’ll give a (@crainsdetroit) and LinkedIn (search Crain’s Detroit rector said the low-rate loans will damage is estimated at more than shoutout to some of our favorite images that show up Business). You can follow us and tag us across all help businesses and families re- $1.1 billion. in our Instagram feed. these channels. cover from damages and losses. The Associated Press
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You’ve said you’ll appoint a small- business ombudsman to your admin- istration. What will be his or her spe- cific tasks, and what type of people will be looked at to fill that role? We want people with strong ad- ministrative and business back- grounds for that spot. While we haven’t developed and assigned all the tasks, they will report directly to me outside the normal chain of command to keep me abreast of business concerns, needs and is- sues … so we can be helpful when we need to be and more responsive on things like health permits and environmental issues. And any others that are required for busi- nesses to start or continue. I’ve heard plenty of war stories from businesses and communities, and I don’t want to see that happen. Mayor Mike Duggan endorsed you early in the campaign. What type of initiatives do you see the two of you working on? I think there will be lots. I think one will be health. I think public safety. I think economic develop- ment and any number of issues. We’ve known each other for the bet- ter part of 25 years. The other thing is that he was prosecutor and he un- derstands public safety better than Health Care Experience most. I think there is significant leverage there to improve the condi- tion of public safety in Wayne ® County. One of the impediments to In Your Corner. business growth is that people have to feel safe. If they feel safe, they are far more apt to do more things. You Ŷ Focused on health care law for systems, can’t just create a business and physicians and payors in all market segments. leave it to the vagaries. Ŷ Third party reimbursement, public and What else should the business community know? private health care provider fi nancing, I think what businesses can ex- and commercialization of physician pect is a listening ear, a regular lis- tening ear to the concerns that im- inventions and ideas. pact business — and understand that we will have the management skills to put a system in place to deal with any problems. It’s not my goal just to manage county gov- ernment for four years; it’s my goal to get things accomplished. I think it’s about being proactive, and that’s the kind of thing that business will be comfortable with and happy about. BANKRUPTCIES The following business filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Detroit Nov. 8-Nov. 14. Under Chapter 11, a First Tier Ranking company files for reorganization. in Health Care Law Ⅲ SAM Controls LLC, 24832 Ro-
mano, Warren. Assets $176,360, lia- Ŷ Metro Detroit Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Contact Scott Alfree at [email protected] bilities $453,620 — Chad Halcom 20141117-NEWS--0008-NAT-CCI-CD_-- 11/14/2014 6:07 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS November 17, 2014 OPINION MARY KRAMER Share events on exec calendar House should follow On Saturday, you Show’s Charity Pre- Dinner at Cobo Center honored could help Walsh Col- view (Jan. 16), to Mercy more than 100 volunteers and lege honor business lu- Education Project’s big donors from area nonprofits. Two minaries like Lear Corp. fundraiser (April 16), to of them happened to have the same CEO Matt Simoncini at Sunset at the Zoo (June first names: Eugene Applebaum Senate on gas tax its annual leadership 12). and Eugene Driker. Applebaum dinner at the MGM Crain’s has revived has used the wealth generated by a oments after the Michigan Senate voted last week to Grand Detroit. Or you this common, digital chain of retail drug stores for phil- double the state gasoline tax over four years, “talk ra- could join the Michigan calendar to serve as a anthropy, including major gifts to clearinghouse for non- Beaumont Hospitals and Wayne dio” came alive with critics of the move. Chronicle as it salutes M another set of leaders in- profits planning events State University. Lawmakers should stay the course; taxing at the wholesale cluding retired General and as a tool for all of Driker, who was honored with level — instead of by the gallon at the pump — will help gener- Motors executive Roy us to use to plan our his wife, Elaine, is an attorney and ate between $750 million and $1.5 billion more a year for roads Roberts. Or you could own personal calen- civic leader who’s been a member and transportation, depending on gas prices. join recording artist KEM at Danc- dars months in advance. of Wayne State’s board and who re- But it only works if nonprofits cently served as a mediator on the The plan would tax gasoline and diesel at 9.5 percent of the ing with Detroit Stars at a benefit for the South Oakland Shelter at the give us their details. You can sub- Detroit bankruptcy case. wholesale price, moving up to 15.5 percent by 2018. Townsend Hotel. mit online: crainsdetroit.com/sec- Both men met in seventh grade Wonder why the roads seem to have crumbled? The cur- To plan ahead, those events — tion/eventsadd. We list charity at Durfee school in Detroit. They rent 19-cents-per-gallon tax at the pump has generated fewer and more than 350 others — could events with a ticket price of at eventually learned that their fa- thers — Joseph Applebaum and dollars because vehicles are more efficient and many are dri- be found on our digital Crain’s Ex- least $75 and other significant business and civic events. Charles Driker — emigrated to the ving less. Plus, gas prices have dropped. ecutive Calendar for 2014. Now it’s time to fill the dates for And if you are interested in U.S. from the same city in Ukraine The Senate vote was bipartisan. Now it’s up to the Republi- 2015 and beyond. We have more sponsoring periodic printed sup- — Zhitomir, west of Kiev. can-led House to vote after Thanksgiving during its “lame- than 100 black-tie and executive- plements with quarterly or year- Now that is a coincidence. duck” session. calendar events on the books for ahead listings of events, contact Mary Kramer is publisher of Gov. Rick Snyder has been seeking significant funding next year, from the Tigers Open- Associate Publisher Marla Wise at Crain's Detroit Business. Catch her take on business news at 6:10 a.m. boosts for four years. Let’s hope the lame-ducks in the House ing Day (April 6, Minnesota [email protected]. Twins) and the Detroit Regional Mondays on the Paul W. Smith show have the moxie to get this through. Chamber’s Mackinac Policy Con- on WJR AM 760 and in her blog at ference (May 26-29) to the North Only in America www.crainsdetroit.com/kramer. ‘Cool’ culture counts American International Auto Last week’s Philanthropy Day E-mail her at [email protected]. A company’s culture counts. And when you’re trying to compete for talent, the culture counts a lot. Our “Cool Places to Work” companies in this week’s special feature, starting on TALK ON WEB Page 11, offer innovative ideas to all employers on what makes a difference when it comes to attracting and keeping the best From www.crainsdetroit.com talent. And who’s the judge of what works best? In this ranking, Re: Michigan Senate votes to double by the Best Companies Group of Harrisburg, Pa., it’s the em- gasoline tax; next stop is House ployees themselves. If we need more for roads, this is Congratulations to all 75 companies, agencies and nonprof- the smartest way to do it. Gas prices its that earned the “badge” of “cool.” fluctuate so much anyway that I wonder if we’ll notice. Not to men- tion the fact that the people who Fund timely aid for minority biz use the roads the most will pay the most. A very fair tax in that way. Given its rich racial and ethnic mix, Detroit and its sub- MikeInMI urbs should be home to some of the fastest-growing minority- owned businesses in the country. Gov. Rick Snyder attempts to solve all problems with additional It has been and still is. taxes. It only took a couple of days But it could use more. A new $100 million fund announced this time. Now we will be paying last week can help by offering capital to small and medium-sized higher taxes and still be driving over businesses that can’t get the cash from traditional bank loans. potholes. Carolyn Mazurkiewicz stores there, unless you want to wishing them the best and plan to As Dustin Walsh reports on Page 3, startups may not apply, shop at the pawn shop, or the hospi- support this. We’re the center of Oak- but other companies that can show a track record — and cus- tal gift shop. land County with architectural tomers — may be helped by the fund. It’s especially timely to Re: Strand Theatre aims to open William Lewton gems and finally some momentum. help the minority enterprises working on such major construc- Attract what diners? There is The city has its problems, but I’d only a coney island downtown. At- Those of us who work to help rather contribute to the solutions. tion projects at M-1 Rail and the new Detroit Red Wings arena. tract what shoppers? There are no make the city a better place are RSVP KEITH CRAIN: Now it’s time for all of us to get to work We need to build some big stat- heavy lifting begins. We more attuned to sur- the end game. As we attract more thousand small companies coming ues to thank quite a few folks who still have the same pop- vival and didn’t worry jobs, we’ll increase our tax rev- here and expanding here. have led us through the bankrupt- ulation with the same too much about what enues, lower our dependency on The ideas are easy; the execu- cy in Detroit. Our governor was demographics. might come later. welfare, and reduce crime. It is all tion is unbelievably difficult. Par- smart enough to hire Kevyn Orr as We still have too Well, later is now. part of the same game plan, but it ticularly when you realize that EM, and somehow we got the right much crime, too much Our number-one pri- has to be something that everyone every city in our country has the federal judges to oversee what blight, too much unem- ority for everyone has concentrates on at the same time. same objective. could have been a complete mess. ployment. We’ve got a to be jobs. We have to I happen to think that massive Our biggest challenge lies ahead. And kudos to our mayor, who has mayor who understands start putting our think- tax incentives — city, regional, We’ve gone through some very diffi- been a great executive during a what his job is, but it’s ing hats on and come up state and federal — are all some- cult times with lots of pain, but very difficult year. simply impossible to with some innovative, thing that could help attract jobs to we’ve once again survived. It’s almost over — and things wave a magic wand and out-of-the-box ideas to our city. We also need manufactur- Now we have to set aside the will not be back to normal. But find thousands of low- encourage expansion ing jobs for lower-skilled folks who past and look to the future. they will be without the bankrupt- skill jobs for the citizens of Detroit. and attraction. have been out of work forever. Financial incentives might have cy. We’ll still have some sort of Economic development was not There are plenty of distractions We need a couple of new auto- the best potential. But we have to oversight, which is a good thing. very high on our priority list for right now. But we have to keep our motive assembly plants, which is look at every idea. It’s the differ- But now, I would suggest, the the last few years. We were far heads down and not lose sight of pretty unlikely right now, or a ence between success and failure. 20141117-NEWS--0009-NAT-CCI-CD_-- 11/14/2014 10:55 AM Page 1
November 17, 2014 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Detroit could learn from N.Y.’s rebound
The move by General as did the members of the political and financial responsibil- resulted in a total recovery of New Motors Co. of its Cadillac Legislature, which em- ity for Detroit’s survival. York City. But Detroit is still division from Detroit to powered the board. There Bankruptcy as a tool Detroit’s plan of adjustment struggling. Other than a reduction New York City is only the were shared concessions was constructed by the EM and of its long-term debt, nearly all of latest blow to the Motor by all stakeholders rather for the recovery of various outside consultants earn- the pre-bankruptcy problems of City as it concludes a con- than judicial fiats. ing, reportedly, at least $130 mil- Detroit will persist. tentious bankruptcy pro- The state also promul- troubled urban lion. A judicial mediation effort Bankruptcy as a tool for the re- ceeding. gated legislation that es- entities should be a led by five federal judges covery of troubled urban entities The results of the bank- tablished accounting, fi- achieved an amalgamation of liti- should be a last resort. Using it as ruptcy at best will be lim- nancial reporting and last resort. gation settlements, which is the a way of avoiding difficult and ited, while the hard work budgetary reforms. strength of the plan. However, the complex public policy decisions by Manfred Ohrenstein of re-engineering Detroit By contrast, in Michi- rebuilding of Detroit awaits eco- elected public officials is the as a viable urban center is just be- gan such leadership and involve- nomic and fiscal policies best wrong approach. ginning. Ironically, the threat of ment has been absent. The gover- it, political accountability. The achieved through the political Manfred Ohrenstein was Democ- ratic minority leader of the New bankruptcy — which could have nor appointed an emergency EM quickly opted for a Chapter 9 and public policy process. manager of Detroit with near-dic- The political skills and farsight- York state Senate. He currently is been employed to bring the con- bankruptcy filing. Thereafter, the tatorial powers, thus overriding edness of the Carey administra- senior partner at the New York law tending political, civic, business governor and Legislature largely any elected leadership and, with distanced themselves from further tion and the New York Legislature firm of Ohrenstein & Brown LLP. and labor parties to the table — has been expended, leaving in its wake anger and frustration, which may make required fiscal, econom- ic and public policy agreements more difficult to achieve. Once the pride of the American automobile industry, Detroit is now a symbol of decline in a na- tion struggling to rebuild a recov- ering economy. Structural change cannot be successfully accom- plished by constant controversy and adversarial proceedings. It re- quires consensus, cooperation and compromise. Bankruptcy is not the appropri- ate vehicle to achieve this. That is why the manner in which the po- litical leadership of Michigan has dealt with Detroit and several oth- er urban areas is so perplexing. The state of New York in the 1970s proved that financial reform can be achieved more effectively. In 1975-77, New York City was in- solvent. When the city’s clearing- house banks refused to extend fur- ther cash flow financing in the spring of 1975, the city, which had become addicted to debt, lost all fi- nancial credibility. Many advocated bankruptcy, a path that could have led to severe economic decline and the loss of the city’s pre-eminent role in inter- national finance. Gov. Hugh Carey and the bipartisan leadership of the Legislature chose negotiation and conciliation rather than con- tention. Carey and the legislative leaders used the specter of bankruptcy as leverage. With the help of business and labor, they created effective and long-term institutions for the financial governance of the city that restored financial stability and credibility and led to sus- tained growth. There was firm po- the future of my business litical will by both political par- ties: a Democratic governor, a Democratic majority in the assem- bly and a Republican-Democratic coalition in the state Senate. The state created the New York City Emergency Financial Control Board, on which the governor served with the mayor, the state and city comptrollers and three Blue Cross Blue Shield of Michigan and Blue Care Network gubernatorial appointees, which have a wide range of comprehensive health plans to help gave the governor a voting majori- ty. This board created a forum for you make the right choice for your business. compromise among business, la- bor, political and financial inter- GROUP HEALTH PLANS | DENTAL | VISION | bcbsm.com/employer ests and served effectively until its sunset long after the city fully re- covered. The composition of the Control Board provided political and elec- toral accountability, as each of its Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. officials had to face the electorate, 20141117-NEWS--0010-NAT-CCI-CD_-- 11/14/2014 12:11 PM Page 1
Page 10 CRAIN’S DETROIT BUSINESS November 17, 2014 Labor pacts could test city’s new financial review panel
BY CHAD HALCOM likely monthly and as-needed Tony Saunders, former director of putes, per the new public art. 2019 with the Detroit Police Officers CRAIN’S DETROIT BUSINESS meetings to supervise Detroit’s Conway MacKenzie Inc.; Bill Martin, The New York State Financial Association, its largest police post-bankruptcy financial plans. real estate developer and former Control Board, created under the union, representing more than The newly formed Detroit Finan- Under Public Act 181 of 2014, the University of Michigan athletic direc- 1975 New York State Financial 1,700 member officers, corporals cial Review Commission may not state law signed by Snyder in July tor; and Stacy Fox, founder and Emergency Act during New York and community affairs police. have quite as much power as the to authorize the commission, the principal of The Roxbury Group, and City’s $3.3 billion fiscal crisis, also Historically, Act 312 is the rule, New York oversight board that panel will review and approve a a former deputy emergency man- had broad labor contract over- not the exception, in resolving city was its inspiration — especially four-year financial plan for the ager of Detroit. sight. police contract disputes. Even its once a few bankruptcy-era union city and its operating budgets. It An exception to the commis- That panel famously rejected la- last contract, a one-year deal contracts are up for renegotiation also has final approval of any labor sion’s labor contract oversight is bor contracts negotiated for tran- adopted in 2013 before the city’s in the coming years. contracts with Detroit’s more than when it comes to anything that in- sit workers and with the city’s $18 billion Chapter 9 bankruptcy The commission members, ap- 40 employee unions. vokes Public Act 312 of 1969, which Board of Education for teachers, petition, was an arbitration rul- pointed by Gov. Rick Snyder last The remaining commission provides mandatory binding arbi- before relinquishing much of its ing. week to serve along with Detroit members appointed were Lorron tration for labor disputes with po- power in 1986. President Mark Diaz of the po- Mayor Mike Duggan and Detroit James, vice president of business lice and fire. The review team can, The issue may not surface for a lice officers association said last City Council President Brenda affairs at James Group International; however, make its case and argue while in Detroit, which adopted a week the unions feel they are able Jones, will meet again Nov. 21 and Darrell Burks, former senior part- the city’s financial condition to an new labor pact through bankrupt- to negotiate with the Duggan ad- Dec. 5. The commission will begin ner of PricewaterhouseCoopers LLP; arbitrator or panel in those dis- cy mediation that expires in June ministration, but that the current pact ratified in August made some concessions to the city. And Act 312 wasn’t an option in fashioning that deal, because of some provi- sions in the 2012 state law giving broader powers to Detroit Emer- gency Manager Kevyn Orr. “Historically, we’ve had to use 312 just as a means of getting clo- sure,” Diaz said. “We are confident in our relationship with the new mayor and some of his assurances that public safety is a priority for the city, and that makes us fairly confident that we can reach resolu- tions before resorting to 312. “However, in the event we do have to resort to it to gain finality, I am also confident in arbitration panels to give us correct decisions.” The current contract only partly unwinds a set of wage cuts imposed by then-Mayor Dave Bing on police in 2012, offsetting a new pay in- crease with a 6 percent set-aside of base pay for officers to contribute to the Police and Fire Retirement System pension plan, and freezing compen- sation next fiscal year. The local Review Commission will retain active oversight of city finances for at least three years — possibly much longer, depending on how quickly Detroit can meet various financial performance benchmarks. Then it moves to a less-active monitoring role for at least 10 years. Depending on the political envi- Legacy ronment a few years from now, it’s possible that management may William* find Act 312 more appealing than police and fire labor unions do, Family is a top priority for us. Which is why we want to know that the said Patricia Nemeth, owner of De- troit-based Nemeth Law PC, which decisions we make now will ensure a bright future for us, our children represents management in collec- tive bargaining agreements and and our grandchildren. Our FirstMerit Client Advisor understands our has represented municipalities in aspirations and helped us develop a long-term investment plan. He also police/fire arbitration. “Generally speaking, in the past helps us manage our day-to-day banking needs so we can focus on what’s it’s been the union who wants to go important. We have peace of mind knowing our legacy will live on. into 312. There’s a perception that they will get more from an arbitra- tor or panel of arbitrators than through the traditional negotia- tion process,” she said. “But more recently, with the economy being poor for cities, it’s possible that influence will change TO LEARN MORE ABOUT as arbitrators can see how munici- palities are in trouble financially.” FIRSTMERIT PRIVATEBANK, CONTACT: Rep. John Walsh, R-Livonia, Ken Duetsch II, Senior Vice President, who sponsored the original review 248-430-1255 ken.duetsch@firstmerit.com at or . commission bill, said there was not enough support in Lansing to Follow the latest market trends amend Act 312 or to empower the @firstmerit_mkt new commission to override it. He also noted that the legislature al- ready had made several modifica- *William reflects a composite of clients with whom we’ve worked; he does not represent any one person. tions to Act 312 in 2011. Non-deposit trust products are not insured by the FDIC; are not deposits or obligations of FirstMerit Bank, N.A, or any of its affiliates; are not Member FDIC Chad Halcom: (313) 446-6796, guaranteed by FirstMerit Bank, N.A or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. 2798_FM14 [email protected]. Twitter: @chadhalcom 20141117-NEWS--0011-NAT-CCI-CD_-- 11/14/2014 11:49 AM Page 1
November 17, 2014 CRAIN’S DETROIT BUSINESS Page 11
Cool Places To Work in Michigan
Elana Sullivan of the MS Society LARGE COMPANIES (250 or more employees) 1. National Multiple Sclerosis Society, Michigan Chapter, Southfield, Page 12 2. Digitas Inc., dba DigitasLBi, Detroit, Page 13 3. M. Arthur Gensler Jr. & Associates Inc., dba Gensler, Detroit, Page 13 Workplaces 4. Warner Norcross & Judd LLP, Grand Rapids, Page 14 5. CMGRP Inc., dba Weber Shandwick, Birmingham, Page 15 Complete list, Page 14 of note Employee-friendly cultures
Karen Baldwin (right) of Greenleaf Trust keep companies happy MIDSIZE COMPANIES ttracting and retaining talent is tant to maintaining a strong workforce. (50-249 employees) the never-ending concern of ON THE WEB “If you’re looking to recruit and retain a di- 1. Greenleaf Trust, Kalamazoo, employers everywhere. verse group of top talent, no program or policy is Page 15 From their generous time-off Videos and photos from inside many of our 75 going to fit the needs of every person,” Cool Places to Work, policies to ice cream socials, em- said Cheryl Coutchie, director of hu- 2. Gongos Research Inc., dba crainsdetroit.com/coolplaces Gongos Inc., Auburn Hills, ployers that understand the val- man resources for Grand Rapids-based A ue of a talented, enduring work- Warner Norcross & Judd LLP. Page 16 The final ranking is force will go to some lengths to keep workers heavily weighted to- Most of the organizations have no 3. Marsh & McLennan Agency LLC, happy. ward the employee shortage of fun perks to keep their dba McGraw Wentworth Crain’s Cool Places to Work recognition workers looking forward to coming Troy, Page 17 portion of the assess- program honors employers that go the extra ment, accounting for to work every day. Free massages 4. Reliance One Inc., Auburn Hills, mile to make employees feel appreciated — as 75 percent of the evalu- are a big one, as are free food, Page 18 judged by the employees themselves. ation. The employer yoga trainers and the everlasting The program was open to Michigan busi- end accounts for the re- foosball table. 5. Arrow Strategies LLC, Bingham nesses, nonprofits and government entities. maining 25 percent. There’s also something to be Farms, Page 18 An organization must have at least 15 employ- This is important not said for letting employees do ees at a Michigan location their jobs. Whatever an em- Complete list, Page 17 just to make sure the to have been considered. rankings are based on ployer did to attract its work- Harrisburg, Pa.-based re- what actual employees feel, ers — whether it was the search business Best Com- but also so employers can benefits package, pay or free panies Group gathered data make sure they’re not wast- yoga lessons — one way to keep them is and conducted surveys on ing their money on unneces- to get out of their way, several of the featured each organization to create sary benefits. A common fea- organizations said. the final rankings. The ture among employers that perform well in “We support them and get out of the way,” rankings are divided into Best Companies’ surveys throughout the coun- said William Hartman, principal and manag- Gary Wentzloff of McLaren three groups according to try is that they have two-way dialogue with em- ing director at the Detroit office of architec- SMALL COMPANIES organization size, as mea- ployees, said Susan Springer, director of work- tural firm Gensler. 2014 sured by employee count. Also as part of this program, participating (15-49 employees) place assessments for Best Companies Group. PROFILES Best Companies ranked An employer that offers smoking cessation organizations receive a packet of detailed in- 1. McLaren Physician Partners, 75 companies that it felt and weight-loss programs might be missing its formation based on employee responses. The Auburn Hills, Page 19 BY GARY ANGLEBRANDT earned the badge of Cool target, Springer said. “You really have to see packet includes valuable information on how Place to Work. We employees feel about their workplace, broken 2. Brogan & Partners Advertising what employees want.” Consultancy Inc., dba Brogan break out the top five As is usually the case with these types out by demographics and staff levels. & Partners, Birmingham, Page 20 from each category for a closer look at of honors, the leading organiza- This is valuable information on its own, re- what the organizations do to attract and tions emphasized flexibility gardless of how the organization ranks. But 3. Preh Inc., Novi, Page 20 retain talent. and diversity. An em- they’d better be prepared for the truth, said Best Companies’ assessment is ployer can offer one high-ranking participant. 4. Center for Financial Planning done in two parts. On the employer “If you’re going to throw your hat in the ring, Inc., Southfield, Page 21 any number of side, the organization provides ex- amenities and you’d better be darned sure you have the right 5. Clarity Communication Advisors tensive information on its benefits, benefits, but culture or you’re going to get slapped in the Inc., Southfield, Page 21 policies, practices and perks, then em- keeping in mind face,” said Christen Carmean, director of hu- ployees’ voices are heard through a confi- that people are not man resources at Gongos Inc. in Auburn Hills. Complete list, Page 19 dential, 80-question survey. all the same is impor- — Gary Anglebrandt 20141117-NEWS--0012,0013-NAT-CCI-CD_-- 11/14/2014 10:16 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS November 17, 2014 Cool Places to Work in Michigan: Large Companies MS Society: Flexible schedules the key to turnaround
s an organization that helps people affected by multiple Asclerosis, the National Multi- ple Sclerosis Society, Michigan Chap- ter understands the importance of a flexible schedule. Following a severe workforce re- duction induced by the economic NO. 1 woes of 2008, the National nonprofit’s em- Multiple ployees who sur- Sclerosis vived the cuts Society, were stuck do- Michigan ing the work of Chapter all the people Elana Sullivan, president of the Southfield who hadn’t. To National Multiple U.S. employees: ease the pain, Sclerosis Society, 1,300 management set Michigan up an employee Chapter, was committee and listened to it when challenged to it asked for new options in work allow employee scheduling. flexibility in the The chapter gave employees workplace during greater latitude in setting their own difficult economic schedules, using options like four times. longer workweek days, an 11-to-7 JOHN SOBCZAK workday and working from home. horrible economic conditions our for playing a central role. “Em- tional Urban League’s Mature Work- Regular conference calls for These were not easy decisions to organization has ever seen,” said ployees were empowered to do it ers Program to provide on-the-job the national organization are make. While human resources pro- on their own schedule,” she said. fessionals and companies with chapter President Elana Sullivan. training for workers to pick up new held, often hosted by the national award-winning workplaces rou- “There was skepticism. How can The nonprofit also is generous skills. CEO and featuring national tinely preach flexibility, many com- we let people do this while we’re with its time-off options, giving Employees are required to es- speakers. panies still don’t practice it. Going struggling?” employees 25 PTO days and 13 paid tablish a personal development “We don’t have a foosball table, down this path while facing great The chapter turned itself around holidays every year, as well as plan each year, and the national but we don’t have a big office, ei- pressures was all the more daring. within a couple of years, and Sulli- flexible hours. MS organization provides an on- ther,” Sullivan said. “MS is pretty “I undertook this under the most van credits the flexible schedule The chapter works with the Na- line portal to offer live courses. serious business.”
CULTURE COUNTS.
At The Mars Agency, our purpose is to drive growth for ourselves as well as our clients and community. In that light, we look at investments in our work environment as far more than “perks.” They are investments in our culture. And culture impacts everything. It’s what makes us different and gives us an advantage. It inspires us. And nothing could be cooler than that. 20141117-NEWS--0012,0013-NAT-CCI-CD_-- 11/14/2014 10:17 AM Page 2
November 17, 2014 CRAIN’S DETROIT BUSINESS Page 13 Cool Places to Work in Michigan: Large Companies Digitas’ winning workplace ways employ diversity, fun, sharing ideas
igitasLBi is a perennial work- place award winner. D The digital marketing company goes beyond snacks and margarita machines to accommo- date workers, offering benefits that bring diverse people into the fold. The company gives two paid NO. 2 weeks off to par- Digitas Inc., ents of a new- dba DigitasLBi born child, be Detroit they traditional U.S. couples or employees: same-sex cou- 2,067 ples. It does the same for cou- ples who adopt or become foster parents. It also gives up to $5,000 to couples who adopt, to help offset the high costs. COURTESY OF DIGITASLBI Same-sex couples are sure to be Digitas’ volunteer program includes employee participation at Gleaners Community Food Bank in Detroit. included in the benefits package of- fered by the company, and Digitas Amenities include a “Tiki Trolley” sues or client challenges. also gives same-sex couples who manned by a different group every “We had someone ask if they have commitment ceremonies the month that brings the cart around could have a scooter to get around same two days off it gives to tradi- on Thursday afternoons with sig- the office,” said Robert Guay, man- tionally wedded couples. nature cocktails and beer intended aging director of the Detroit office. Digitas sets up programs to sup- to wow co-workers. The company now has five standup port different groups of people There are soda fountains, healthy scooters for people to roll around on. within the company, such as His- and not-so-healthy snacks, and A Hearts in Action program lets panic, women and LGBT workers. bagels every Friday morning. Mas- employees win grants for their fa- Through these programs, the com- sages, manicures and pedicures are vorite charity. To win, groups of pany holds events and brings in common. employees give a presentation. The speakers relevant to the groups. Through a monthly meeting first-place prize is $1,500; second is The company organizes these pro- called Business & Bagels, and sug- $1,000; and third is $500. A separate grams, as opposed to having the re- gestion boxes placed throughout matching program gives employees spective workers organize them, the workplace, Digitas solicits “Say up to an additional $600 toward so these employees feel welcome. Anything” ideas, which might be their charitable contributions. But the company does not by- changing snacks from plain M&Ms And for those who fall ill, Digi- pass the softer perks, either. to peanut, to more serious work is- tas offers unlimited sick time. Gensler: Employees also own company
ensler has 46 offices and is in the upper echelons of the G world’s architectural firms. That means it has serious compe- tition when it comes to getting tal- ent. “To attract the best talent, we support them and get out of the NO. 3 way. We encour- M. Arthur age people to use Gensler Jr. & their intelli- Associates gence and share An office INDIVIDUAL SUITES Inc., dba what they have Halloween party for employees and Gensler with others,” Detroit their families Available for Pistons games, concerts, said William helps keep morale U.S. employees: Hartman, prin- high at Gensler. and family shows. Includes premium food 3,266 cipal and man- COURTESY OF GENSLER and beverage options. aging director at the Detroit office. Gensler has a lot of people shut- extensive vetting process that One motivator is that employees tling to different clients in other draws in peer groups, practice own 100 percent of the company countries, so the firm recruits in- leaders and voices from outside through a stock ownership plan. ternational candidates and han- the candidate’s office. “We try not Profits are distributed annually, dles the visa and work permit to act provincial,” Hartman said. and ownership means the whole process for traveling workers. Gensler runs a quarterly “Well- company, not individual offices. That way, clients and the employ- Being Week” full of activities like This also helps to smoothly pass ees can focus on the job. The com- self-defense classes, yoga, healthy ownership on from one generation pany also maintains a global in- happy hours, massage therapists, to the next. When partners leave or tern program where offices host hula hoop, guest speakers and inter- retire, the firm buys out the part- international interns. office competitions, such as the Pistons.com/premium ner’s shares and redistributes them There is a yearly appointments stair-climbing competition, of which among the remaining workforce. process for promoting employees the Detroit office is a past winner. (248) 377-8477 Employees also are eligible for to associate, senior associate or Wellness also is promoted by of- twice-a-year bonuses, which are principal levels. The process in- fering free biometric screenings and celebrated at bonus parties. volves numerous criteria and an giving gift cards to participants. 20141117-NEWS--0014,0015-NAT-CCI-CD_-- 11/14/2014 10:15 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS November 17, 2014 Cool Places to Work in Michigan: Large Companies
COURTESY OF WARNER NORCROSS & JUDD Warner Norcross associate attorneys and summer associates (law students) enjoy an afternoon of team building and paintball. Warner Norcross formula: Recruitment, diversity, food
aw firm Warner Norcross & Judd keep employees’ minds on their LLP has eight offices in Michi- job, rather than on concerns over Lgan, and it keeps them filled their benefits. with quality talent by maintaining “If you’re looking to recruit and a steady, structured recruiting retain a diverse group of top tal- regimen. ent, no program or policy is going Every year, the firm solicits ré- to fit the needs of every person,” sumés from 100 Coutchie said. law schools to “As we make benefits decisions, Argent International, Inc. NO. 4 fill a deter- share technology, train and estab- 41016 Concept Drive, Plymouth, MI 48170 Warner mined number lish guidelines, we try to do that as www.argent-international.com Tel: 800-223-9890 Norcross & of slots. “This flexibly as possible so we can allow Judd LLP allows us to the top talent we hire to contribute Grand Rapids have a continu- at their highest level possible.” U.S. employees: ous supply of When it comes to softer perks, 393 new talent,” “we are very well known for our said Cheryl food,” Coutchie said. Every day Coutchie, director of human re- there is some offering on hand, be sources for the firm. it bagels, cut fruit, granola or Diversity plays a leading role in slushies. this drive. Warner contacts cam- “If you can get people together pus minority organizations and around food, you learn a lot about asks them to inform members of people. Then they can handle career opportunities and it spon- those stressful times a lot better,” sors minority scholarships for she said. prospective lawyers, paralegals An on-site health coach is avail- and legal secretaries. able 10 hours a week for consulta- It also participates in internship tions and does not share any per- programs aimed at inner-city sonal information with anyone youths. else at the firm, including human The constant hiring has led to resources. an age-diverse workforce, with The firm also pays 75 percent of lawyers 24 to 68 years old practic- the cost of a 24-week weight man- ing together full time. agement program led by a regis- Flexibility is seen as a way to tered dietician.
12. Educational Data Systems Inc. LARGE COMPANIES dba EDSI, Dearborn 250 or more employees U.S. employees: 408 6. Ryan LLC, Detroit 13. WorkForce Software LLC, Livonia U.S. employees: 1,395 U.S. employees: 369 14. Diplomat Pharmacy Inc., Flint 7. Cequent Performance Products Inc., Plymouth Township U.S. employees: 958 U.S. employees: 365 15. Mars Advertising Inc. dba The Mars Agency, Southfield 8. Michigan First Credit Union U.S. employees: 263 Lathrup Village U.S. employees: 262 16. CBS Radio Inc. dba CBS Radio Detroit, Southfield 9. Blue Cross Blue Shield of U.S. employees: 19,490 Michigan, Detroit U.S. employees: 7,468 17. Walbridge Aldinger Co., Detroit U.S. employees: 980 10. United Shore Financial Services LLC, Troy 18. Trilogy Health Services LLC U.S. employees: 1,087 West Bloomfield Township U.S. employees: 7,733 11. WideOpenWest Michigan LLC 19. Great Lakes Home Health dba WOW! Internet Cable Phone Services Inc. dba Great Lakes Madison Heights Caring, Jackson U.S. employees: 3,363 U.S. employees: 1,200 20141117-NEWS--0014,0015-NAT-CCI-CD_-- 11/14/2014 11:13 AM Page 2
November 17, 2014 CRAIN’S DETROIT BUSINESS Page 15 Cool Places to Work in Michigan: Large Companies Weber Shandwick: Quality draws quality
he way Weber Shandwick sees Schueneman said. it, having a quality staff at- Through a program called No Ttracts better clients, and at- Boundaries, employees can submit tracting better clients ensures a an application to receive $1,000 and pipeline of great talent. an extra week of vacation to pursue Andy Schueneman, general man- a lifelong dream. One employee ager of the New York City-based went to Las Vegas so she could race THANK YOU firm’s Birming- cars and be trained by expert dri- ham office, calls vers. Another went to Costa Rica to CHN team members NO. 5 this cycle a fig- rebuild an elementary school. CMGRP Inc. ure eight. One worker wanted to overcome dba Weber “Attracting her fears, so she went to the Ba- for again making us one of Shandwick talent helps at- hamas to swim with sharks. Birmingham tract the best The company’s corporate net- Crain’s Cool Places U.S. employees: clients, which work has thousands of online 1,400 then circles courses available for personal de- to Work! back,” he said. velopment, and Weber Shandwick 570 Kirts Blvd . Suite 231 . Troy . MI 48084 To attract that talent, the public also brings in experts to instruct PHONE 248.928.0111 . TOLL FREE 866.282.3119 relations firm hands out spot on work-related topics such as oral FAX 248.928.0122 bonuses for jobs well done, and new COURTESY OF WEBER SHANDWICK presentations, writing and search www.communityhousingnetwork.org employee referral bonuses of $2,500. Weber Shandwick competed in a engine optimization. dodgeball tourament — complete with Workers have opportunities to Other perks include annual custom shirts — to support Friendship broaden their horizons through Circle, a nonprofit with a mission trips to a major-league baseball stints at the firm’s international focus on children with special needs. game, $50 a month for health and offices. At times, one of the compa- wellness, a support group for outsourced risk management ny’s 126 offices, spread out over 81 people to Shanghai, Bangkok and moms, quarterly volunteering op- countries, puts out the word that it Milan for periods of six months to portunities, and a lobby with free needs someone with specific ex- three years. popcorn, soda and espresso bar, pertise for a short-term assign- “If I had to pick a key trait we fo- and a policy that allows employees ment. The Michigan office has sent cus on, it’s intellectual curiosity,” to bring their dog to work.
Cool Places to Work in Michigan: Midsize Companies
“It’s really about finding out how our employees feel, how engaged they are coming WHAT PATH ARE YOU ON? to work every day and whether they’re getting everything they need to do their jobs and feel that they are part of something bigger,” said Karen Baldwin (right), shown talking with Greenleaf Trust’s director of marketing, Sarah Johansson. COURTESY OF GREENLEAF TRUST Greenleaf Trust: Surveying satisfaction orkforce experts say lis- our employees feel, how engaged and drug treatment, and invites Minimize Exposure. Reduce Expense. tening to employees is the they are coming to work every leaders from the nonprofits to Wfirst step to developing a day, and whether they’re getting speak at staff meetings. The Sterling Insurance Risk-Path-Process® is a proven benefits package that suits the everything they need to do their On the wellness side, Greenleaf needs of a company’s workers. jobs and feel that they are part of offers $150 per quarter in reim- multi-channel, enterprise level risk management strategy. To that end, Greenleaf Trust, a fi- something bigger,” Baldwin said. bursements for wellness activities, To find out how you can minimize your exposures while nancial services business for peo- Greenleaf President Michael handy since the company’s base is driving down your cost, contact a Sterling Certified Risk ple with at least $2 million in liq- Odar also hosts monthly all-staff within walking distance of five ex- uid assets, has meetings to provide news on the ercise centers. A covered bike rack Architect to get you on the right path. NO. 1 its employees company, and the CFO gives quar- in the company’s garage is fill out satisfac- terly updates on the profitability watched by security. 888.525.7575 | 586.323.5700 | sterlingagency.com Greenleaf Trust tion surveys picture. Recognition comes by way of a Kalamazoo, about six times When the company’s profitabili- gong: When someone does some- Birmingham a year, includ- ty goals are met, everyone shares thing beneficial to the firm like U.S. employees: ing surveys con- in the profits by an amount in pro- bring in a new client or assist 91 ducted by out- portion to their salary. Those who someone else at the company, the side organiz- meet their individual goals are eli- person is recognized at a staff Sterling Insurance Group is a Michigan based company. ations and a strategic planning gible for an additional profitability meeting and gets to bang the com- survey. bonus. The company also gives out pany gong. Co-workers also honor The company’s specialized busi- spot awards — money for a specif- one another by giving out “Dia- ness makes it hard to find talent; ic job well done. mond Drop” awards. the surveys help with recruiting The firm offers no limits on sick Employee appreciation also is Crain’s 2015 General and people and keeping existing work- or personal days and pays 100 per- demonstrated through activities NOMINATIONS In-House Counsel Awards ers happy, said Karen Baldwin, di- cent of employees’ health plans. such as ice cream and cookouts Healthiest Employers: rector of human resources. Greenleaf supports local non- during the workday, and surprise NOW OPEN Best wellness programs “From an internal perspective, profits on causes such as helping pizza lunches with Chairman crainsdetroit.com/nominate from Southeast Michigan it’s really about finding out how foster children, at-risk children William Johnston. 20141117-NEWS--0016,0017-NAT-CCI-CD_-- 11/14/2014 11:00 AM Page 1
Page 16 CRAIN’S DETROIT BUSINESS November 17, 2014 Cool Places to Work in Michigan: Midsize Companies Gongos: Chats with the CEO, rotating Thanks... perks, importance of personal time Turner Construction ongos Inc., a marketing re- search business, appreciates ZI Custom Gthe value of personal time. When a person joins the team at Gongos, the new employee auto- Gasser Bush matically gets 120 hours — three workweeks — of paid time off. Reclaim Detroit The hours go into a bank from NO. 2 which workers and Piedmont Gongos can deduct time Research Inc., for a day off or dba Gongos vacation, or deal for helping us create our Inc. with an illness. Auburn Hills The company Cool Place! U.S. employees: also shuts its 127 doors from Dec. 24-Jan. 6, but em- ployees still earn a paycheck. Gongos is certified by the Women Business Enterprise National Council and promotes diversity through awareness programs by offering do- COURTESY OF GONGOS INC. Gongos Inc. offers an annual parking lot picnic and balloon toss. mestic partner benefits for LGBT employees and recognizing non- Carmean said she’s seen other lighthearted. Christian holidays. companies do this sort of thing, Twice a year, bonuses are paid “We’re a Christian-based believ- but the questions usually are sub- out based on the company hitting ing organization, so we have Chris- mitted and cleared, as well as an- revenue targets. tian holidays, but we also recognize swered, by a public relations spe- Employees can telework one day that some employees may not em- cialist. a week. When at the office, there brace Dec. 25,” said Christen “Camille goes in blind and has are rotating monthly perks, such Carmean, director of human re- no idea. It can be a Nerf ball ques- as free ice cream, fresh fruit or a sources. “While this is our belief, tion or it can be a tough question,” continually replenished stock of we don’t expect anybody else to do Carmean said. candy bars. that. ... If they have a different holi- Nicita also sends weekly video Gongos has many other perks, day, they can swap out.” messages to the staff. The message including a basketball court, walk- CEO Camille Nicita holds “fire- might cover business results, ing clubs, stand-up work cubes, a side chats” once a quarter where plans, news from a conference parking lot picnic and after-work employees can ask questions. she’s attending or just something events.
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