A Year in Business

20111219-NEWS--0001-NAT-CCI-CD_-- 12/16/2011 6:09 PM Page 1

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Page 3 AG in no hurry for action on health insurance exchange M1 Rail back where it started day. “And the clear sense coming Private backers see rail complementing bus plan from that is that there is every reason to press forward.” BY DANIEL DUGGAN As the corporate donors and Rapson was one of close to 20 cor- Timing of the project is contin- AND NANCY KAFFER leaders of the rail project regroup porate and non- gent on government approvals, but CRAIN’S DETROIT BUSINESS for another run at Woodward light profit leaders on construction could start 12 months rail, they say they’ve learned from a conference call after getting a green light. What started as a small, private- the experience. And, they say, Wednesday in ly funded rail system took three those lessons will inform the sec- which it was de- years to morph into a regional, fed- ond life of M1 Rail. cided to press on Back to 2007 erally funded bus system. “There must have been 20 criti- with the plan. The original vision for M1 was In between are a number of deci- cal decision points that at the time “We had an simple: Find corporate investors sions that, in hindsight, the pri- seemed reasonable and necessary informal call to back a privately funded rail sys- vate backers of the M1 light rail to follow,” said Rip Rapson, presi- yesterday of the tem that would run from Jefferson project in Detroit — who remain dent of the Troy-based Kresge Foun- M1 member- Avenue to Grand Boulevard. committed to the concept — say dation, one of the groups backing Rapson ship, almost two Entrée to China: could have been made differently. the rail plan in Detroit. dozen people,” Rapson said Thurs- See Rail, Page 5 Neapco calls the shots

St. John makes ‘strategic’ purchase in Farmington Hills A year in business Universities: Inside Veto bill banning Village Green plans Features new apartment complexes, look back Page 10 partner benefits – and forth Perk called important This Just In MOUSE CLICKS to schools’ recruitment Page views at Water department bond BY DUSTIN WALSH crainsdetroit.com sale meets ‘good demand’ reveal the top 25 CRAIN’S DETROIT BUSINESS stories of 2011, Despite the city’s financial Michigan universities face uncertainty according to Crain’s woes, the Detroit Water and readers. Hint: A guy over the right to offer what for some is a valu- Sewerage Department had no named Dan was a big able recruitment tool: domestic partner bene- trouble selling $484 million draw, Pages 8-9 fits. in water and sewer debt last The Michigan House and Senate are at week, The Wall Street Jour- odds over a bill banning domestic partner nal reported. SHUTTER CLICKS benefits for state employees. At issue is The bonds were sold with whether the bill applies to the state’s 14 pub- yields ranging from 0.60 to lic universities and whether the state consti- 1.80 percentage points more tution protects them from the bill. than top-rated municipal House Bill 4770, sponsored by Rep. Dave bonds. Detroit’s bonds are Agema, R-Grandville, passed the Senate this generally rated junk, and month with amended language that may ex- Moody’s Investors Service and empt university employees from the ban. Fitch Ratings have placed the However, several House Republicans told re- city’s rating on review for a porters the bill will apply to university em- downgrade. ployees. Still, that yield is lower Sara Wurfel, Gov. Rick Snyder’s press sec- than in an earlier pricing, retary, said the governor’s legal team is as- The Journal reported Thurs- sessing the bill’s language to determine day, “an indicator of good de- Ten images that whether universities are helped tell the year’s mand.” in fact exempt but would stories, Page 11 Moody’s and Standard and not speculate on whether Poor’s rated the sale “midlev- the governor would sign el investment grade” or A1 LOOKING BOTH WAYS the bill. Snyder has until and A-, according to the re- Analyzing the past Dec. 27 to sign or veto the port. Proceeds will finance and peering into the bill. capital improvements and future, reporters break The uncertainty has uni- “terminate the water depart- down their beats, blog versity officials urging ment’s outstanding swaps,” style, Pages 12-17 Snyder to veto it. which have a net termination “The language is am- Boulus value of about $210 million. biguous and about as clear Water department officials TALKING 2011 as mud,” said Mike Boulus, executive direc- say that the sale was a rou- The best of Crain’s tor of Lansing-based Presidents Council, State tine offering and that a No- online reader Universities of Michigan. “At this point, we vember court ruling gives comments from the don’t know whether the bill includes us, so past year of Talk on the water department more we’re urging the governor to veto.” the Web, Page 17 autonomy. University officials believe the ban will — Nancy Kaffer See Bill, Page 4 DBpageAD.qxp 12/7/2011 5:22 PM Page 1

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December 19, 2011 CRAIN’S DETROIT BUSINESS Page 3 Schuette: Don’t rush insurance bill Q&A Election, courts could end need for health exchange This is one issue BY CHAD HALCOM vising legislators and others in the issues you discuss, that is a “ CRAIN’S DETROIT BUSINESS Lansing that a state insurance ex- very good (relationship) to have,” where change can wait until after the he said. “This is one issue where Michigan Attorney General Bill presidential election or at least un- we have had a respectful differ- (Gov. Schuette said he sees “no rush” to til the outcome of a constitutional ence of opinion.” pass legislation creating a challenge to the federal health care Last week, the House passed, Snyder statewide health insurance ex- reform bill, which goes for oral ar- and the Senate later approved, a change, because so much can still guments before the U.S. Supreme revised version of a supplemental and I) happen next year that would elimi- Court in March. funding bill that removes the $9.8 nate the need for one. Essentially, that means the million in federal planning grant have had a New CEO expects an exciting The legislation that creates a state’s top law enforcement official funds awarded to the state last framework to authorize MIHealth has sided with the Republican-con- month by Health and Human Ser- respectful ride at Lycera, Page 20 Marketplace to be established as a trolled House and its slow-track vices Secretary Kathleen Sebelius. nonprofit corporation has been approach to the exchanges over In the past, Snyder has pushed difference of idle in the House Health Policy that of Gov. Rick Snyder, whom for the House to take an aggressive opinion. Committee since it cleared the Schuette calls a friend. hearing schedule and vote soon on ” Senate in a 25-12 vote last month. “When you have a friend (in the bill that establishes the insur- Company index Bill Schuette, Schuette told a Crain’s editorial Snyder) that you happen to be in Michigan attorney general These organizations appear in this week’s Crain’s board meeting Thursday he is ad- agreement with about 90 percent of See Schuette, Page 4 Detroit Business: 5-Hour Energy ...... 9 Andiamo Restaurant Group ...... 9, 16 Ann Arbor Spark ...... 14 Arboretum Ventures ...... 14 St. John makes Beaumont Health System ...... 13 Blue Cross Blue Shield of Michigan ...... 13, 18 Borders Group...... 9 Butzel Long ...... 13 ‘strategic’ buy Center for Automotive Research ...... 6 Chrysler Group ...... 8 Colliers International ...... 12 Compuware ...... 14 of former Fisher Detroit Lions ...... 15 Detroit Medical Center ...... 13 Detroit Pistons ...... 8, 15 Detroit Science Center ...... 16 Center’s 31 acres Detroit Tigers ...... 15 Downtown Detroit Partnership ...... 5 Energy Conversion Devices ...... 14 BY SHERRI WELCH Fieger, Fieger, Kenny, Giroux, Danzig ...... 9, 13 CRAIN’S DETROIT BUSINESS General Sports & Entertainment ...... 9 Grubb & Ellis ...... 12 St. John Providence Health System has acquired Henry Ford Health System ...... 14 the 31 acres of Farmington Hills property that has stood vacant since St. Vincent Sarah Fisher Kresge Foundation ...... 1 Center closed the orphanage it had operated Life Magnetics ...... 14 there in 2006. Living Essentials ...... 9 St. John Providence Health paid the Daugh- COURTESY OF NEAPCO HOLDINGS Lycera ...... 20 CEO Bob Hawkey thought Neapco Holdings would “kind of subcontract” production in China. Then a ters of Charity of St. Vincent De Paul, which found- M1 Rail ...... 1 customer told him, “You have to be there in substance, not just in name.” ed the center in 1851, $1.05 million or “fair mar- Magna International ...... 9 ket value” for the property Matt Prentice Restaurant Group ...... 8, 16 BACK TO ROOTS “for possible future strate- Mich Development ...... 20 gic needs in the area that Michigan State Medical Society ...... 18 Fisher Center: is already part of our foot- Michigan State University ...... 4 Helping at-risk print,” Daniela Scholl, cor- MSU College of Law ...... 8 kids, Page 4 Entrée to China porate media relations di- Neapco Holdings ...... 3 rector for the health Palace Sports & Entertainment ...... 8 system, wrote in an email. Owner opens the door; NEAPCO HOLDINGS, THEN AND NOW Pinnacle Race Course ...... 9 Warren-based St. John Providence Health Presidents Council, State Universities of Michigan . . . 1 has not submitted a rezoning request for the 2006 Quicken Loans ...... 9 property, zoned for single-family residential, Neapco calls the shots Ⅲ Owner: Carlyle Group (private equity group) Rock Holdings ...... 10 said Farmington Hills City Planner Ed Gar- Ⅲ Revenue: Less than $100 million Roxbury Group...... 9 diner. BY LINDSAY CHAPPELL Ⅲ Employees: 400 St. John Providence Health System ...... 3, 13 The property, at the northwest corner of 12 CRAIN NEWS SERVICE Ⅲ Focus: Aftermarket, dominated by one large St. Vincent Sarah Fisher Center ...... 3, 4 Mile and Inkster roads, has two historic build- customer. Talmer Bank and Trust...... 8, 18 ings and several smaller support structures. It For Neapco Holdings, an 87-year-old Ameri- Trans Inns Management ...... 9 was one of the few remaining parcels in Farm- 2011 can maker of car and truck drivelines, open- TRW Automotive Holdings ...... 17 ington Hills of its size and location when the Ⅲ Owner: Chinese supplier conglomerate ing its first office in China this fall was a very UM Law School ...... 8 center closed. Wanxiang Group has majority interest; Neapco big deal. University of Michigan ...... 4 The health system’s Providence Medical Center Giant global parts makers with deep pock- senior management has equity. Village Green ...... 10 and Michigan Ear Institute on Northwestern ets and big product portfolios are investing in Ⅲ Revenue: Close to $600 million Whitney Partners...... 9 Highway at Inkster is just over half a mile from China. Now Neapco, a relatively small compa- Ⅲ Employees: 2,100 Whole Foods Market ...... 8 the newly purchased land. Also within a 10- ny with a management team of just five, will Ⅲ Focus: Original equipment for automakers mile radius are the system’s Kenneth Elliott Sr. & be among them, fighting for a toehold. including Chrysler Group LLC, Ford Motor Co., William Beaumont Hospitals ...... 9 Family Comprehensive Breast Center, Providence Its new office in Shanghai employs two peo- General Motors Co., BMW, Volkswagen Group. WSU Law School ...... 8 Park Hospital in Novi and physician offices in ple, one of whom does not speak Chinese. But ZocDoc ...... 18 Novi and West Bloomfield. bigger things are coming, including a Chinese Wanxiang Group acquired a majority interest in It was “long past time” to sell the property manufacturing plant. Neapco for an undisclosed sum, with Neapco’s that was home to the St. Vincent Sarah Fisher It doesn’t hurt that Neapco has a Chinese senior management also taking an equity po- Department index fairy godmother. sition. At the time, Neapco was in Pottsville, BANKRUPTCIES ...... 6 See St. John, Page 4 In 2006, Chinese supplier conglomerate See Neapco, Page 6 CLASSIFIED ADS ...... 19 KEITH CRAIN...... 7 In focus Know what the foodies know MICHIGAN BRIEFS ...... 22 Get the latest on the restaurant THIS WEEK @ Check out Crain’s collection of OPINION ...... 7 videos related to timely news scene from Crain’s reporter Nathan WWW.CRAINSDETROIT.COM stories at crainsdetroit.com/video Skid: crainsdetroit.com/skid RUMBLINGS ...... 21 WEEK ON THE WEB ...... 21 20111219-NEWS--0004-NAT-CCI-CD_-- 12/16/2011 6:10 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 19, 2011 St. John: Land purchase ‘strategic’ Bill: Schools urge veto ■ From Page 3 ■ From Page 1 Center, said Sister Theresa damage efforts to compete with at the University of Michigan-Dear- Peck, administrator of the private schools that offer domestic born, said the state’s universities Daughters of Charity’s Mater Fisher Center returns to roots partner benefits as they seek to at- would likely take the issue to Dei-Seton complex in Evans- tract and retain faculty. court, saying Agema and other leg- ville, Ind. BY SHERRI WELCH dowment — which was $7 mil- “The University of Michigan must islators are willing to damage re- The center operated from 1929 CRAIN’S DETROIT BUSINESS lion at the beginning of 2011 and be able to offer an excellent benefit cruitment for ideology. until 2006, when it closed the or- is roughly $7.5 million now — as package to our employees and to “Cutting us 15 percent in our op- phanage after a state decision to After vacating its longtime it has for the past several years. those we hope to recruit to UM for erating budget is one thing, but home in Farmington Hills and stop funding residential pro- This year, the organization their unique talents, skills and ex- then telling us we have to socially getting out of the orphanage and grams for children. has operated on a budget of pertise,” UM President Mary Sue engineer who we have to recruit foster care business, St. Vincent As reported by Crain’s in 2006, about $700,000, raising about Coleman wrote in a letter to Senate and offer benefits is outrageous,” Sara Fisher Center has returned to Novi-based Whitehall Real Estate $150,000 of that, Renaud said. Majority Leader Randy he said. Detroit and the mission it was But Agema said universities are Interests had agreed to acquire “Ever since the organization Richardville, R-Monroe, last month. founded on 160 years ago: provid- “The loss of our ability to offer such operating against a 2004 amend- the property, but the deal fell was required to change what it ing education to at-risk children. was doing, fundraising kind of benefits would put the university, ment banning same-sex marriage. through. The center is providing cus- (fell) to a standstill … We need to and our state, at a serious disadvan- “They basically have hidden be- Subsequent offers also fell tomized tutoring after school and re-energize what has been a stag- tage compared to peers.” hind the clause that they have au- through for lack of financing, during the summer to help chil- nant donor base.” Lawyers in Snyder’s adminis- tonomy,” he said. “We (the state) said Peck, who was involved in dren overcome issues with com- St. Vincent and Sarah Fisher tration likely will decide what hap- appropriate money, and they say the sale as former treasurer of prehension and concentration so Center most recently served as a pens next. But if Snyder signs the we can’t tell them what to do with the organization’s east-central they can do better in school. residential/foster care agency bill as is, it may end in costly liti- it. If they think they are above the province, which oversaw the It’s also providing GED tutor- gation. law, they aren’t.” for children. In 2006, it closed its Thes Michigan property. ing for their parents and other Len Niehoff, chairman of the Boulus said the outcry by the residential campus due to elimi- Detr “You get to a point where you adults, from space at three De- higher educa- Legislature is also over a relative- don’t want to be a slum landlord troit-based nonprofits: Focus: nation of state funding. Xxxx Rather than cease operating, tion practice at ly minor fringe benefit, from a from a distant state,” she said. Hope, Neighborhood Service Organi- Xxxx the center’s board of directors Honigman Miller budgeting perspective. As of July, Xxxx Daughters of Charity had zation and TWW & Associates. The Schwartz and only 93 people, including depen- big focus now in metro Detroit is made a decision to return to its Xxxx invested $500,000-$600,000 over Cohn LP in Ann dents, are enrolled in the domestic Xxxx on improving educational quali- roots. The center works with the past six years to maintain Arbor and pro- partner benefits at Michigan State Xxxx ty, said Diane Renaud, executive about 220 adults and roughly 40 the property, including contin- fessor at the UM University, to the tune of $370,000, Xxxx director of the center. children at any given time. ued payment of electrical and law school, said according to the Lansing State Xxxx But to do that, “you have to at- Last week Renaud hired a de- heating and cooling, she said. It university au- Journal. Xxxx tack the problem of generational velopment director to add to eight Xxxx also put up fencing to protect the tonomy, protect- A university official who want- deficiencies in education,” be- full-time and four part-time em- Xxxx historic buildings from vandal- ed in the state ed to remain anonymous said, cause parents who didn’t com- ployees. She plans to add more Xxxx ism. Niehoff constitution, “The vast majority of operating plete high school can’t provide staff as funds become available. Xxxx “It’s in excellent condition, will be used to fight the ban. budgets don’t come from the for their families, get a job or do St. Vincent Sarah Fisher Cen- Xxxx considering it hasn’t been used homework with their children, ter may have to appeal to a new Constitutional autonomy pro- state,” the source said. “The few Xxxx in six years,” Peck said. Xxxx said Renaud. generation of donors, namely vides all of Michigan’s four-year dollars spent on these benefits are The new owner has a histori- those whose parents supported institutions the ability to vest coming from tuition fees or hous- Xxxx She brings 25 years of experi- Xxxx cal link to the site as well, given the center in the past, said John management and maintain finan- ing, but they (government) can’t ence in nonprofit and marketing Xxxx that Providence, now part of St. management for organizations Fike, president of Philanthropy So- cial control in the governing say that it comes from state appro- John Providence Health and its board, not in the Legislature, priations.” Xxxx including DMC Children’s Hospital lutions LLC in Ypsilanti. Xxxx parent, Ascension Health, were of Michigan and BBDO Detroit. That has to be done one person Niehoff said. Wurfel said Snyder will have a Xxxx originally founded by Daughters Last year, the center raised or family at a time, and it could “Autonomy was created to insu- decision made by the Dec. 27 dead- Xxxx of Charity. just $200,000 toward its $800,000 very well be a long road back. late state universities from the line. Xxxx Sherri Welch: (313) 446-1694, budget and made up the differ- But it’s worth pursuing, Fike whims of politics,” he said. Domestic partner benefits are Xxxx [email protected]. Twitter: ence from its unrestricted en- said. “There’s historical reason for this, “most certainly a recruitment Xxxx @sherriwelch as universities didn’t fare well un- tool,” said Daniel Hurley, director Xxxx der legislative control.” of state relations and policy analy- Xxxx UM was granted constitutional sis for the Washington, D.C.-based Xxxx autonomy in 1850 by creating a American Association of State Col- Xxxx Xxxx governing board, making it the leges and Universities. Xxxx Schuette: first institution in the country to “World-renowned institutions Xxxx Don’t rush insurance bill achieve that status. UM was grant- like the UM and MSU … are com- Xxxx ed autonomy “after many years of peting on an international playing Xxxx ■ From Page 3 political interference in the opera- field,” he said. Xxxx ance exchange. His press secre- join in a constitutional challenge ucation for the Office of the Great tion of the university, including Lots of top professors, adminis- Xxxx tary, Sara Wurfel, said he still to the health care act, asking the Start, an early childhood educa- legislative and gubernatorial in- trators and researchers have op- Xxxx supports that initiative, but he courts to decide whether Con- tional initiative by Snyder. volvement in the selection and re- tions on where to go with their Xxxx will sign the supplemental fund- gress has the power to require Executive Director Rick Mur- moval of the faculty,” according to skills and abilities, within public Xxxx Xxxx ing bill even without the alloca- people to buy insurance or face dock of the Michigan Association of a study by the California Higher Edu- or private higher education, Hur- Xxxx tion for the federal planning penalties under its individual Health Plans in Lansing said the cation Policy Center. ley said. Xxxx grant. mandate provisions. The timelines under the federal law Universities are, under the con- The cost associated with offer- Xxxx “Because a couple of matters Supreme Court is expected to and the logistical hurdles to creat- stitution, allowed to spend funds ing domestic partner benefits is Xxxx within the supplemental (spend- take oral arguments in March ing a state insurance exchange in any way the institutions see fit, extremely minimal, he said, since Xxxx ing bill) were very time-sensitive and could issue a ruling by the create some urgency to get start- including domestic partner bene- on many public college and uni- Xxxx things that were important to (the summer. ed. fits. versity campuses the number of Xxxx administration), he will go for- No exchange may be needed, “Ramping up for any large pro- The Michigan Supreme Court also employees electing the benefits is Xxxx ward with signing it,” she said. Schuette argues, if the court gram of this nature takes months, has a history of upholding autono- often in the single digits. Xxxx Xxxx The states have until Jan. 1, strikes down some or all of the act even years, to develop,” he said. my granted by the constitution. “I have not seen any legislation Xxxx 2013, to demonstrate progress to- or if a new president in 2013 has a Considering those challenges, In a 1911 case, Board of Regents in any of the states in recent years ward creating an exchange for different agenda for health care. Murdock said, waiting even for a of the University of Michigan v. Au- going in (this) direction,” said implementation on Jan. 1, 2014, or Schuette is also Michigan cam- Supreme Court ruling in summer ditor General, the Supreme Court Hurley, a Michigan native. “This Washington could force them to paign chairman for GOP presi- could cost valuable time. ruled that universities have “the would stand out in the country as a participate in one federally oper- dential candidate Mitt Romney. “Many would argue, if you hold highest form of juristic person backwards, anti-progressive poli- ated. “The governor’s view is that to the timelines that are in play known to the law, a constitutional cy move that I think would shine a That leaves plenty of time, the (exchange planning grant) under federal law, we may al- corporation of independent author- pretty negative light on Michi- Schuette said. Some of the federal matter wasn’t quite as urgent as ready be too late,” he said. ity, which, within the scope of its gan.” grants to help fund the insurance those other items, so it will wait Wurful added that the governor functions, is coordinate with and A 2011 survey by the College and exchanges don’t get appropriated and we can revisit it again after understands his differences with equal to that of the legislature.” University Professional Association until mid-2013. the first of the year,” Wurfel said. Schuette on the issue. “Universities have decided that for Human Resources found the per- “That (2013) is the latest that It was unclear how long Michi- “The governor is still commit- this (using funds to offer domestic centage of responding institutions the grant applications have to be gan has to allocate the grant ted to having Michigan be able to partner benefits) is a good invest- offering health care benefits for submitted,” Schuette said. “I funds before it loses them. Wurfel control its own destiny in (the ex- ment because it helps with recruit- same sex and opposite sex part- would advise my colleagues to do said the spending bill also in- change markets) rather than ing and puts these universities on ners increased for the fifth whatever they have to do before cludes funds for an educator ef- have the feds do it for us,” she even footing with private institu- straight year, rising to 56 percent 2012 is over, but there is no need fectiveness council, convened said. “They (Snyder and tions,” Niehoff said. “It’s exactly and 43 percent respectively. to rush into doing something earlier this month to complete a Schuette) still have a good work- this kind of decision the principal Dustin Walsh: (313) 446-6042, right now when circumstances report by April on criteria for ing relationship.” of autonomy is designed to pro- [email protected]. Twitter: may change.” teacher effectiveness, as well as Chad Halcom: (313) 446-6796, tect.” @dustinpwalsh Schuette’s office is one of 26 at- reallocating money from other [email protected]. Twitter: Ed Begale, assistant vice chan- Sherri Welch contributed to this torneys general nationwide to agencies to the Department of Ed- @chadhalcom cellor for governmental relations story. 20111219-NEWS--0005-NAT-CCI-CD_-- 12/16/2011 5:35 PM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 5 Rail: Private backers see complement to bus plan www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] The project saw early success, Likewise, Detroit Mayor Dave son sent a letter to Snyder, Bing and doesn’t replace the need for light EXECUTIVE EDITOR Cindy Goodaker, (313) 446- getting financial commitments Bing’s communications team said LaHood last week urging that the rail. 0460 or [email protected] from backers including Kresge, the city’s financial situation M1 plan still receive consideration. “It would be a mistake to get off DEPUTY MANAGING EDITOR Jennette Smith, (313) 446-1622 or [email protected] Penske Corp. founder Roger wasn’t an issue — the decision was Downtown Detroit Partnership Presi- track.” SENIOR EDITOR Bob Allen, (313) 446-0344 or Penske, who is chairman of the made because rapid-bus transit dent and CEO Dave Blaszkiewicz [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- project; Peter Karmanos Jr., serves more Detroiters. sent a letter to DDP members last Keep focused 8158 or [email protected] founder of Detroit-based Com- But others with knowledge of week, saying light rail is necessary COPY DESK CHIEF Gary Piatek, (313) 446-0357 or puware Corp.; the Ilitch family, own- the decision say that’s not so. for downtown development. Wood- In many ways, the rail plan is [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) ers of the Detroit Tigers, Red Wings “Everyone knew that the region- ward corridor anchors like the De- now exactly where it was in 2007. 446-1608 or [email protected] and Little Caesar Enterprises Inc.; al bus plan was the only plan that troit Institute of Arts, Henry Ford Health “The ironic part is that our plan, DATA EDITOR Brianna Reilly, (313) 446-0418, [email protected] and Quicken Loans Inc. founder Dan was going to garner the support of System and the Detroit Medical Center back in 2007, was a privately fund- WEB DEVELOPER Steve Williams, (313) 446- Gilbert, the project’s co-chairman. the county executives,” the source support the bus plan, but say light ed light rail plan from Jefferson to 6059, [email protected] WEB EDITOR Gary Anglebrandt, (313) 446-1621, But things got complicated. said. “And because of that, LaHood rail can still play a role. Grand Boulevard, with a bus rapid [email protected] The project first ran into prob- brought Dave Bing to the table to That’s a key point, Gilbert said. transit system flowing out to the EDITORIAL SUPPORT Robertta Reiff (313) 446- lems when it became intertwined say, ‘Look, you don’t have the fi- The regional bus plan does not need suburbs,” Cullen said. 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- with the city of Detroit’s plans to nancial wherewithal to get this to replace the light rail plan. And that’s what’s back on the 1687 TIP LINE (313) 446-6766 extend transit to Eight Mile Road, done anyway.’ ” “I’m not opposed to the (bus sys- table. REPORTERS said people both involved in the tem), I welcome it, and I think it can M1 has commitments for $100 Daniel Duggan, senior reporter: Covers retail, real project and observing it. be a good thing for Detroit, in terms million to $125 million, some of it estate and hospitality. (313) 446-0414 or Funding becomes an issue [email protected] “When it became a city project of feeding people in and out of the held in escrow and some in unexer- Jay Greene, senior reporter: Covers health care, insurance and the environment. (313) 446-0325 or is the point where they lost control Detroit’s chronic budget deficits city,” he said. “But once you’re cised corporate commitments, [email protected]. of it,” said a source with firsthand are nearing a crisis point. The city’s downtown, you need a curbside rail Cullen said. And the group has re- Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland knowledge of the planning. ability to fund the operating budget line because it serves a different newed its focus, returning to the and Macomb counties. (313) 446-6796 or Matt Cullen, CEO of the M1 Rail of a light-rail line has been ques- purpose. The two can be compati- original plan. A rail line up and [email protected]. Tom Henderson: Covers banking, finance, organization, said it was a matter tioned by federal and local officials, ble.” down Woodward Avenue can be technology and biotechnology. (313) 446-0337 or of finding the and the M1 investors. Snyder’s ad- That’s a top talking point in the completed on that budget and could [email protected]. Nancy Kaffer: Covers small business, the city of balance between ministration has begun a review of information distributed by the DDP, be under construction in a year. Detroit, Wayne County government. (313) 446- keeping a nar- the city’s finances, the first step to- and one that’s been adopted by M1’s Gilbert, recently estimated to be 0412 or [email protected]. Bill Shea, enterprise editor: Covers media, row project fo- ward the eventual appointment of corporate backers: Do both light rail worth $1.5 billion by Forbes, says advertising and marketing, the business of sports, and transportation. (313) 446-1626 or cus and being an emergency financial manager. and buses. he stands by the project financial- [email protected]. good corporate And the financial commitments Cynthia Pasky, DDP chair- ly, even if there is a gap between Nathan Skid: Multimedia reporter. Also covers the food industry and entertainment. (313) 446-1654, citizens. made by the M1 investors remained woman, sent an email Friday that donations and the project’s cost. [email protected]. “We obvious- largely on paper, in the form of un- was critical of business leaders be- More funds would be raised from Sherri Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] ly wanted to be exercised commitments rather than ing unable to weigh in on the change the groups involved, if needed, he Dustin Walsh: Covers auto suppliers, steel, higher helpful, and the actual funds held in escrow. in plans. said. “If there is a gap, I’m con- education and Livingston and Washtenaw city saw an op- The plan supported by Snyder “The current conversation over vinced we can fill it,” he said. counties. (313) 446-6042 or [email protected] Cullen LANSING BUREAU portunity to and LaHood is the 110-mile bus rail versus bus versus both will al- And the process, if nothing else, Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371-5355, leverage the private money plan involving 22 communities and ways have a different answer. None has made the M1 backers more FAX (517) 371-2492, [email protected]. or 115 W. against future (federal) funding. It four counties, with buses running are right. None are wrong,” said committed, Rapson said. Allegan, Suite 220, Lansing 48933. seemed like a great idea,” said from Detroit through Mt. Clemens, Pasky, also founder, president and “One of the parties on the call ADVERTISING Cullen, who is also COO of Rock through Troy, to Birmingham, CEO of Detroit-based Strategic yesterday thought this would be a ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] Ventures LLC, an umbrella organi- through Royal Oak and Ferndale, Staffing Solutions. “What is wrong is catalytic moment — that people SALES INQUIRIES: (313) 446-6052; FAX (313) zation for Gilbert’s companies. and back down to Detroit. that the leaders of Detroit’s business who had yet to commit dollars 393-0997 ADVERTISING SALES Christine Galasso, Matthew But as the plan evolved, the M1 The $500 million plan will now community were not part of the dis- might step forward,” he said. J. Langan, Lori Tournay Liggett, Tamara Rokowski, group lost more and more control use the federal funding that was cussion. They should have been at “There was not a peep from people Cheryl Rothe, Dale Smolinski over the project, something Cullen set to be used by M1. the table. The fact that they were not to indicate they would back out.” CLASSIFIED SALES (313)-446-0351 MARKETING MANAGER Jeff Kapuscinski and Rapson acknowledged in Au- Another problem was communi- is completely unacceptable.” Understanding how the two sys- EVENTS DIRECTOR Nicole LaPointe gust of last year, Crain’s reported. cation — or lack thereof. Rapson also agrees the M1 back- tems can fit together is something EVENTS COORDINATOR Kacey Anderson “Over time, it morphed into In the early days, the federal gov- ers don’t support light rail at the ex- the M1 group must do, Rapson said. SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg something else,” Cullen said last ernment’s requirements to fund a pense of regional transit. “Could you figure out some way MARKETING ARTIST Sylvia Kolaski week. “Another project, one with project weren’t well defined, Rap- The DDP points out that residen- to take a portion of that system SALES SUPPORT Suzanne Janik, YahNica Crawford no investor control, and little in- son said, with basic issues such as tial development in Midtown, ex- that was privately constructed and AUDIENCE DEVELOPMENT MANAGER volvement over where the city and whether the rail line would stop at pansions at Henry Ford and DMC, finance ongoing operating costs on Candice Yopp MARKETING COORDINATOR Jenny Griffith federal government wanted to go.” Detroit’s border unclear. as well as commercial investment in three and a half miles of that?” he PRODUCTION MANAGER Wendy Kobylarz In its last form, the $528 million “I think, in retrospect, we downtown, have been predicated on said. “You probably could do that. PRODUCTION SUPERVISOR Larry Williams project was to run rails nine miles weren’t dealing with full and open development of a rail system. We’re talking about tax incre- CUSTOMER SERVICE from Jefferson Avenue to Eight information on both sides of the Plus, many of the original back- ments, all sorts of things.” MAIN NUMBER: Call (877) 824-9374 or write Mile Road. There were also discus- question,” Rapson said. “I don’t ers remain committed, Cullen said. There’s no guarantee the an- [email protected] SUBSCRIPTIONS $59 one year, $98 two years. sions on extending it to Royal Oak. think the city fully understood the Wayne State University is “still open swer is yes, Rapson said. But if Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state The project, initially run by the depth and commitment of the pri- to exploring the possibilities of the that’s the case, the M1 investors rate for surface mail. Call (313) 446-0450 or M1 group, became a project for the vate investors to the work, and I original M1 proposal in parallel would be the first to admit that the (877) 824-9374. Detroit Department of Transportation, don’t think the private investors with bus rapid transit,” said Ned project isn’t financially viable. SINGLE COPIES: (877) 824-9374. REPRINTS: (800) 290-5460, ext. 125; and then the rail project was understood the nuance the city Staebler, the university’s vice presi- But at this point, he said, “those (717) 505-9701, ext. 125; or lindsay.wilson moved to the quasi-public Detroit was trying to develop around the dent for economic development. conversations have not been had.” @theygsgroup.com. TO FIND A DATE A STORY WAS PUBLISHED: Economic Growth Corp. relationship with the federal gov- “From the beginning, it’s always The next step, Gilbert said, is to (313) 446-0367 or e-mail [email protected]. ernment. The thing we clearly been a ‘both/and’ solution,” he said. make people listen. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY have to put back together is a Wayne State had committed to The group plans to ask for meet- CRAIN COMMUNICATIONS INC. Regional interests won out much more engaged, open conver- spend $3 million over 10 years on ad- ings with city and state leaders to CHAIRMAN Keith E. Crain PRESIDENT Rance Crain News stories last week present- sation among the parties.” vertising at an M1 station. That get officials engaged and ready to SECRETARY Merrilee Crain ed the shift from light rail to rapid- Ultimately, the project received money, Staebler said, is still on the support the project. TREASURER Mary Kay Crain Executive Vice President/Operations transit buses as a sudden develop- a federal $25 million TIGER table. But in the process, the group William A. Morrow ment, an abrupt course change. (Transportation Investment Gen- Henry Ford Health System is also needs to understand what hap- Group Vice President/Technology, Manufacturing, Circulation But the sequence of events that led erating Economic Recovery) grant still backing M1, Dwight Angell, the pened — and make sure it doesn’t Robert C. Adams to last week’s announcements ac- and was eligible for $325 million system’s director of communica- happen again, Cullen said. Vice President/Production & Manufacturing Dave Kamis tually started early this year. federal New Start grant funds. tions, wrote in an email to Crain’s. The term “scope creep,” came Chief Information Officer As the M1 plan was being touted Those funds will now be reallocat- “While we support a bus rapid up a lot, Cullen said — as the scope Paul Dalpiaz Director of Audience Development Operations in Detroit, Gov. Rick Snyder was ed to the rapid-transit bus system. transit concept, we firmly believe a of the project continued to creep Michelle Roth considering a regional bus plan, The most vivid evidence of the light-rail system is vital to the long- beyond the original idea. G.D. Crain Jr. Founder (1885-1973) said the source with knowledge of lack of communication was the term economic vitality of the city’s “The private investors need to Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: the plans. seemingly sudden course change, downtown and Midtown area,” he make sure we’re able to stay in the 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Snyder and his staff were drawn Rapson said. wrote. process and have more control,” 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET to the idea of rapid-transit buses, “The fact that this seemed to DMC supports the regional bus Cullen said. “Perhaps we need to be CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 and brought the plan to U.S. Secre- come so suddenly, with so little in- system, but CEO Mike Duggan said more clear about what our goals is published weekly, except for a special issue the third week of August, and no issue the third week tary of Transportation Ray La- put from people with high stakes in he’s also in favor of light rail as an are.” of December by Crain Communications Inc. at Hood, who also liked the plan. the game, I think was avoidable.” economic development driver in the Daniel Duggan: (313) 446-0414, 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional Snyder’s administration insists Woodward corridor. [email protected]. Twitter: mailing offices. POSTMASTER: Send address that the governor’s regional transit “There are a lot of people who @d_duggan changes to CRAIN’S DETROIT BUSINESS, Circulation Corporate backers still backers Department, P.O. Box 07925, Detroit, MI 48207- authority exists completely inde- won’t get on a bus,” he said. “We re- Nancy Kaffer: (313) 446-0412, 9732. GST # 136760444. Printed in U.S.A. pendently of the M1 plans. The deci- Don’t call the M1 project dead, main strong believers in the origi- [email protected]. Twitter: @nan- Entire contents copyright 2011 by Crain Communications Inc. All rights reserved. sion to devote federal grants to the many of the project’s original back- nal Roger Penske and Dan Gilbert cykaffer Reproduction or use of editorial content in any bus plan was made solely on that ers say. vision,” said Duggan, adding: “A Jay Greene contributed to this manner without permission is strictly prohibited. plan’s merits, Snyder’s office said. Penske, Cullen, Gilbert and Rap- smart bus line makes sense, but it story. 20111219-NEWS--0006-NAT-CCI-CD_-- 12/16/2011 5:36 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS December 19, 2011 Neapco: Owner opens door to China ■ From Page 3 Pa., and was being sold off by its Wanxiang’s acquisition of Neap- In short, Wanxiang is backing private equity owner, Carlyle Group. co sprang from a phone call from Neapco — not controlling it, which Neapco doesn’t intend to hide Hawkey to Pin Ni, president of is unusual. behind Wanxiang’s skirts in China Wanxiang America Corp., the Chi- Throughout the 1980s and 1990s, — although it did think about it. nese company’s U.S. holding com- suppliers from Japan created joint Wanxiang is already in the drive- pany in suburban Chicago. ventures with American compa- line business in China. Hawkey was looking for a buyer nies. Those ventures were mostly “We floated that idea initially,” whose vision more closely aligned to share customer bases. Asian said Bob Hawkey, the 64-year-old his own, and Wanxiang was look- suppliers got access to projects aerospace executive who came in ing for another U.S. acquisition. from Ford and GM. U.S. companies as CEO in 2003. He and the execu- Wanxiang, a diverse privately got their feet in the door at Toyota tive team work out of office space owned company with about $8 bil- Motor Corp. or Honda Motor Co. in a Neapco factory in Belleville. lion in sales, has ownership posi- “My initial idea was that we tions in several U.S. companies be- would take the overall global order sides Neapco. It does no Buying binge and then kind of subcontract the manufacturing in North America. Separately, a global supplier ac- production in China.” With Wanxiang behind it, quisition binge has gone on for But the idea was short-lived. Hawkey’s team moved Neapco out years as suppliers have tried to ac- Hawkey recalled that one of Neap- of retail aftermarket and stepped up quire new technologies. It is often co’s U.S. customers told him point- the search for original-quipment faster and less expensive to buy a blank: “We will not deal with parts business. Getting rid of “the company with needed technology someone who has a virtual compa- gorilla” as a customer immediately than to develop it in-house, said ny. You have to be there in sub- improved cash flow by $4 million a Jay Baron, CEO of the Center for Au- stance, not just in name.” year. The partners took no money tomotive Research in Ann Arbor. And so, Hawkey made clear, in out of the company and paid off CAR has been following suppli- China, Neapco will deliver Neapco- their buyout in 18 months. er trends in North America for brand components to an expanding They then acquired Ford Motor decades. Baron reports from con- base of Neapco customers, man- Co.’s driveshaft manufacturing versations with U.S. companies aged by Neapco’s Michigan team. business in Monroe for an undis- that other Chinese manufacturers The eventual plan, he added, closed amount in 2008, giving are shopping for U.S. firms. will be to build a Neapco plant in Neapco new business in Ford cus- “The Chinese know that the do- China through an ownership joint tomers and products. Driveshafts mestic expertise here is world- venture with Wanxiang. But the are part of a driveline system, class and theirs is not,” he said. plant will be operated by Neapco. which consists of the multiple “They would like to buy into it.” “We can have a very effective parts that connect a vehicle’s Baron said that overtures have joint venture that we manage, that transmission to its driving axle. been made in the past year to gives our customers the confi- Despite jumping into original American automotive tooling com- dence that they’re getting the same equipment on the eve of the worst panies. But as the North American technical capability from us, economic downturn in a half cen- market gradually rebounds, the whether our part’s manufactured tury, Neapco has blossomed. tooling companies have become in Germany or it’s manufactured Hawkey said Neapco has anoth- busy. And because of the economic in China,” he said. er $2 billion worth of booked busi- crisis, there are fewer tooling com- So what good does it do to have a ness that will yield $300 million a panies to handle automaker pro- rich, well-connected majority own- year in additional revenues when jects than there were five years ago. er if that owner can’t play rain- it kicks in next year. Among prod- “The Chinese have been trying, maker in its home market? ucts for which Neapco will supply but so far, there have been no tak- Plenty, Hawkey said. parts: the Ford F-150 and Mustang, ers,” Baron said. Your Bank’s Wanxiang’s involvement over the next Ford Transit Connect But it’s different for Neapco and the past five years has freed man- van, Chrysler Group LLC’s Ram pick- Wanxiang, Hawkey said. Wanxiang agement to remake Neapco into a up, and unidentified future prod- is not acquiring technology. It is profitable, growing company with a ucts from General Motors Co., Ford, not even trying to secure a U.S. Not Lending? new global strategy and a widening BMW and Volkswagen Group. sales source for its Chinese-made customer base that includes BMW, Compared with 400 employees subcomponents, judging from Audi and Volkswagen Group, he said. in 2006, Neapco now has 2,100. It Neapco’s shift to more North Amer- Neapco has been thriving in the had only about 400,000 square feet ican production. It is investing in a U.S. market since 2006. The private of manufacturing space when company with growth potential, company was operating with less Hawkey arrived in 2003. It now has Hawkey said, and learning how to than $100 million in revenue in 2.5 million, having added plants in be a global supplier. 2006. This year, it will come close Mexico, Poland and Germany. The “They recognize that there are to $600 million, Hawkey said. plant in Mexico and another in Ne- language, cultural and time zone braska are being expanded to obstacles to maintaining a good boost North American sourcing of relationship with customers,” he Exit from aftermarket subcomponents. said of his co-owners. “We become Carlyle wanted to move Neapco That means bringing in-house a resource to them. We make sure out of original-equipment parts content that Neapco has been sourc- there’s a continuity of communi- and deeper into its retail aftermar- ing from China, and in some cases, cation with the customer that ket business. Hawkey thought just dropping Wanxiang as a supplier. would be extremely difficult if the opposite. Is Wanxiang OK with that? somebody was trying to deal with One mammoth retail customer — “They’ve given us a lot of lati- China. which Hawkey identified only as “a tude and independence,” Hawkey “Wanxiang doesn’t have any ours are gorilla” — controlled most of Neap- said. “They’re very sensitive to the manufacturing outside of China. If co’s retail business. That customer, overall economics of what we’re you really want to be a global part- . he said, wanted to put the manufac- doing. And they know that to de- ner, you’ve got to have the capabil- Call for a free consultation. turer on a 365-day payment cycle. In mand that we continue buying ities in terms of engineering and Loan amounts: $1,000,000.00 and above. other words, a purchase today from one of their plants, even if manufacture wherever the manu- would be paid for one year from to- they’ve grown uncompetitive, facturer’s going to be assembling. s Investment Real Estate s Equipment day. To make it worse, Neapco was would just put our entire business And that’s us.” s Owner Occupied Real Estate s Turnaround Consulting losing money on that client. in an uncompetitive light.” From Automotive News s Lines of Credit s Loan Modiﬁcations s Accounts Receivable s Bank Workouts BANKRUPTCIES The following businesses filed for Chap- Noble Home Health Care Inc., 46576 In- graph Road, Suite 2720, Bingham ter 7 or 11 protection in U.S. Bankruptcy verness Drive, Canton Township, vol- Farms, voluntary Chapter 7. Assets Court in Detroit Dec. 9-15. Under Chap- untary Chapter 7. Assets: $14,432; lia- and liabilities not available. 800.509.3552 ter 11, a company files for reorganiza- bilities: $173,330. Chase Group LLC, aka Chase Group of www.eclipsecapitalgroup.com tion. Chapter 7 involves liquidation. Sepia Packaging Inc., 21434 Brixton Michigan LLC, 2630 Charlevoix, De- 2207 Orchard Lake Road, Sylvan Lake, MI 48320 Oriental Buffet (MI) Inc., 13461 Hall Place, Southfield, voluntary Chapter troit, voluntary Chapter 11. Assets “Since 1997” Road, Utica, voluntary Chapter 7. As- 7. Assets: $5,050; liabilities: $752,962. and liabilities not available. sets: $2,000; liabilities: $274,652. The Producer’s Advantage, 30800 Tele- — Michelle Muñoz 20111219-NEWS--0007-NAT-CCI-CD_-- 12/16/2011 5:37 PM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 7 OPINION Holiday gifts we’d like to see Santa hand out

o, ho, ho! Crain’s Detroit Business is helping the Big Guy in H the Red Suit out with some holiday gifts. Here’s what’s in Santa’s bag for: Ⅲ Wayne County Executive Bob Ficano: A day without headlines. Ⅲ The Taubmans, Rakoltas and Linden Nelson — owners of Pontiac’s Raleigh Michigan Studios: New film incentives awaiting Gov. Rick Snyder’s signature that favor companies that hire more Michigan residents and base more business operations in the state. Hmm. Wonder what Michigan-based film studio fits that description? Ⅲ Hiller’s Markets owner Jim Hiller: Throat lozenges so he keeps up his clever radio spots throughout the winter. Ⅲ Detroit-area auto dealers: More customers trading in aging vehicles. Ⅲ The Warriors, Wayne State University’s Cinderella football team: a bigger budget — and bragging rights from a Divi- sion II national championship. Ⅲ Quicken Loans’ Dan Gilbert: More Monopoly money to TALK ON THE WEB buy more buildings and continue to improve and renew downtown Detroit. From www.crainsdetroit.com Ⅲ Roger Penske, Gilbert and the other M1 light-rail investors: Re: Light-rail line canceled in the Christmas tree business — Reader responses to stories and are seen as impositions on “indi- A Lionel train set — for practice. Or a leather-bound copy of This is a terrible decision. Light blogs that appeared on Crain’s website. Comments may be viduals,” many of whom are not “The Little Engine that Could.” rail is a best practice of big cities very far-sighted (ever wonder why across the U.S. and the world. We edited for length and clarity. Ⅲ Snyder: A new calendar that measures dog years. so many small businesses fail so cannot compete with them in any fast) or would like to freeload on Ⅲ Beaumont Hospitals and Blue Cross Blue Shield of Michigan: meaningful way without it. Re: $2 billion spent on arts and culture the work of others. We need to rec- A day of peace. Grand Circus Park It’s time that arts and culture are ognize that individuals and collec- given their due, both in recognition Ⅲ Pistons owner Tom Gores: His first regular-season Pistons tivism both have value in our society, Was the rail project meant to be of what this sector brings to our and find the right mix. game, Dec. 26. a money maker for the city, or was economy, and in investment. We David Waymire Ⅲ Oakland County Executive L. Brooks Patterson: National it meant to drive economic growth should invest more in a sector that is such a serious contributor to ink for stellar financial results in the State of the Emergency along the corridor? No, I would not Re: Would an EFM quash momentum? drive my car to Eight Mile to use our economic health. Manager. the train from my home in the Anne Osmer I don’t want an emergency financial manager. However, I am Ⅲ Ambassador Bridge owner Matty Moroun: Wait. He got ‘burbs, but I would utilize the train realistic enough to know that once downtown. everything on his list already this year. He blocked a new Re: Anti-tax talk topples tree program someone is going to need the pow- MotorCityMuscle bridge. This is fundamentally what is er, the acumen and the latitude to wrong with the Tea Party and, un- make those decisions, independent Ⅲ The city’s big arts/culture institutions like Detroit Sym- Thank goodness Gov. Snyder is fortunately, much of the modern of emotion or the impact of previ- phony Orchestra, Michigan Opera Theatre and Detroit Science Cen- in office. If it was up to Washington Republican Party. Efforts by peo- ous bad decisions. It has been leadership, they’d borrow more ter: Forgiving banks. ple to join together and use their proven that we are not fit to make money to send down another rat hole. resources for the common good — the right decisions. Ⅲ Detroit Medical Center CEO Mike Duggan: A healthy prof- Fred Akers in this case, by a majority of those Billy J it margin and more capital funding from the DMC’s money-losing Vanguard Health Systems parent to boost his construction Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not plans. defame individuals or organizations. Letters may be edited for length and clarity. Email [email protected]

KEITH CRAIN: It may be a good idea, but not the manner Last week, the federal govern- running until after the makes more sense than cause the business population It’s obvious that we need a trans- ment threw the monkey wrench North American Inter- a rail system. They may moved. portation system in Detroit. It also into Detroit’s planned light-rail national Auto Show in well be right. But the manner that all of this is seems obvious that Detroit can’t system that was proposed to run January. I always thought the being handled here in Detroit afford to build it much less run it. from downtown north on Wood- I guess it’s not much “Loop” system in seems bizarre at best. Maybe it should be offered to an ward Avenue to Eight Mile Road. of a surprise that the Chicago as a distribu- But it seems like the decision was outside company. The feds said that the city might system couldn’t support tion system for the in- made in Washington to cut finan- Before this community starts to be able to build the system, but it itself. There probably coming “L” lines was a cial support for the light-rail project get involved with any new multi- couldn’t afford to run it. aren’t any mass transit great system until the while ignoring the business com- million dollar project, let’s get our This announcement from Wash- systems in the country downtown business munity and the leaders who helped priorities straight. ington came at about the same that support themselves community decided to get the rail project going in the first Let’s get our financial house in time that the city announced that with passenger fares. It move to North Michi- place. Now maybe those business order — and not worry about what it was running out of money to run doesn’t seem to work gan over the past couple leaders will go back to their original kind of vehicles are going up and the People Mover as well. The Peo- that way. of decades. It makes the entire ele- idea: a privately funded, light-rail down Woodward Avenue. ple Mover had to dip into some hid- The feds seem to be suggesting vated train and subway system in demonstration project from down- Then we discuss what’s the best den bank account to at least keep it that a hard-rubber-tire bus system Chicago somewhat obsolete be- town to New Center. transportation for Detroit. 20111219-NEWS--0008-NAT-CCI-CD_-- 12/16/2011 10:54 AM Page 1

Page 8 CRAIN’S DETROIT BUSINESS December 19, 2011 Web of business news: 25 top picks from reader clicks he end of a year generally af- this one. How did this story from Snyder proposed replacing the to get the bank adequately capital- 2010. The Michigan State University fords journalists time to de- 2009 — about the store’s becoming Michigan Business Tax with a 6 ized or find a buyer. About six College of Law and Wayne State Univer- T compress, reflect and then the star of the TruTV series “Hard- percent flat corporate income tax months later, it found Talmer. sity Law School both made the list for pontificate about the year gone by core Pawn” — attract more than for “C” corporations. He also want- Peoples was founded in Ham- the first time — at Nos. 95 and 121, and what we thought were the most 6,700 page views? (Another great ed to end or change tax credits for tramck more than a century ago respectively — because of changes significant stories of the year. moment in search engine optimiza- brownfield redevelopment, the and built its business serving gen- in the magazine’s list format. This year, the laggards at tion, perhaps?) Michigan Economic Growth Authority erations of Polish immigrants as Crain’s Detroit Business thought “Hardcore Pawn” features father program, energy and film incen- they migrated here for work in the we would compile a list of the top and son Les and Seth Gold along tives, among others. auto plants or to run the bakeries, stories and blogs between Jan. 1 with sister Ashley Broad as they And then, with the Legislature’s restaurants and butcher shops and Dec. 1, 2011, as selected by you, run their busy Detroit pawn shop. approval, he did just that. that served those factory workers. based on your mouse clicks or They’re probably busier these days: BlackBerry button pushes on our On Aug. 25, we reported that Ameri- Aug. 2: “Canton pharmacy own- April 3: “Whole Foods Market various emails and our website, can Jewelry and Loan planned to 6 er, 25 others accused of billing 8 browses in Midtown” crainsdetroit.com. open a pawn shop in Pontiac. fraud involving painkillers” After weeks of hearing murmur- Stories about fraud in ings, on April 3, Crain’s restaurant Feb. 11: “Deal to sell Pistons has Sept. 4: “Attract, health care were popular writer Nathan 1 been reached, source says” 4 retain, repeat — this year, none more so Skid reported on- If private equity player Tom What’s cool in 2011: than Chad Halcom’s line that Austin, Gores didn’t appreciate the plea- Hiring, helping work- Web report that Can- Texas-based Whole sure and pain of delayed gratifica- ers build careers” ton Township phar- Foods Market Inc. tion before this year, he probably Apparently, the macist and business- was shopping for does now. It took nearly four next best thing to man Babubhai “Bob” a location in the months from when this story ran working at a cool Patel allegedly oversaw Midtown area of until Gores actually closed on the place is reading a statewide health care Detroit. Amid his purchase of the Detroit Pistons and about a cool place to fraud in which he dis- carefully chosen its umbrella corporation, Palace work. (OK, maybe a tributed painkillers val- words, Detroit LEISA THOMPSON Sports & Entertainment Inc. distant second.) This ued at more than $57 mil- Mayor Dave Bing 11: Hunter Lochmann is the University And Gores barely had begun year’s iteration of lion and fraudulently said of a Whole of Michigan athletic department’s making his presence known Crain’s Cool Place to billed Medicare, Medic- Foods deal, “It’s chief marketing officer. through personnel moves when a Work awards pro- aid and private insur- not a question of labor dispute between the National gram was cheerier ance carriers. ‘if’ but ‘when.’ ” Feb. 16: “Grow Blue: UM’s Basketball Association and its play- than its predecessor All told, 25 people NATHAN SKID/CDB In this story, first chief marketing officer’s 8: Whole Foods 11 ers shut down the league and de- in 2009, when the re- were charged along sponsors Whole Foods goal is to ‘sell out Crisler’ ” layed the opening of the NBA’s reg- cession felt like a de- with Patel. Federal banners at would not confirm It’s hard to fathom that the Uni- ular season more than two months. pression. prosecutors allege Eastern Market. any interest in De- versity of Michigan’s athletic pro- Many employees AARON ECKELS that Patel provided troit. But today, gram needs its own chief market- 4: Stefanie Thornton of Blue who nominated kickbacks, bribes the company is poised to sprout up ing officer, given all the residents of Cross Blue Shield (right) their workplaces accepts a Crain’s Cool Places to and “other induce- at John R and Mack Avenue. Southeast Michigan who refer to this year noted that Work award from Mary Corrado, ments” for physi- UM teams as “we.” But that’s what their employers president and CEO of the cians to write pre- Feb. 4: “Matt Prentice explains the university got in December 2010 worked hard to American Society of Employers, scriptions for 9 what did in his company — Sud- when it hired Hunter Lochmann avoid major cuts in at a Nov. 10 celebration. patients with den move of No. VI Chophouse” away from the New York Knicks of pay and benefits during the worst Medicare, Medicaid or private in- Not that we really needed web- the National Basketball Association. years. Better yet, quite a few said surance coverage to be presented at site analytics to tell us that our In this Page 1 story, Lochmann one of the coolest things about the a Patel pharmacy for billing — he readers like to said his top priority was to fill company they work for is that it is owns 26 across the state. He re- eat or that they Crisler Arena, home of the basket- growing and hiring. And, yes, there mains in jail until trial. like to eat at ball Wolverines: “That’s a person- 2: The “Imported from Detroit” was at least one mention of a foos- Matt Prentice al agenda,” he told Crain’s Bill campaign for the Chrysler 200 ball table. restaurants. But Shea. “I’ve got to get to the bottom featured locales like the Fox Theatre. when Nate Skid of why that doesn’t happen. I want Feb. 17: “Snyder budget: The era listened to Pren- to get into the data on why people Feb. 7: “The Eminem Chrysler ad, 5 of the tax credit is over” tice talk about don’t come to the games.” Maybe it 2 and what Detroiters think” Early this year, having “Rick the reasons be- helps now that the men’s team, for After years of saying nice things Snyder” in a hind the demise the first time in years, has been na- about Detroit (remember Emily headline guar- of the restau- tionally ranked. Prentice Gail?), singing “Hello, Detroit” anteed an atten- rant group bear- (Sammy Davis Jr.) and promoting tive online audi- ing his name, thousands wanted a March 17: “Dan Gilbert: Quick- that “It’s a Great Time in Detroit” ence, as he place at that table. 12 en’s triumph in overtime trial — to say nothing of the untold began to sketch TOM HENDERSON/CDB All it took to bring down his em- ‘a victory for right over wrong’ ” numbers of earnest and deter- out and then act 7: Talmer Bank hangs its shingle at a pire, Prentice said, was the unex- Among the many articles of mined campaigns featuring the on his agenda former Community Central Bank pected relocation of his top-per- faith woven into the vast tapestry word “renaissance” — all it took for Michigan. In branch in Grosse Pointe Farms. forming restaurant, the No. VI of Crain’s office was two minutes of Eminem’s dri- this Feb. 17 Web Chophouse, out of the Hotel banter, one ving a Chrysler 200 sedan to the report about Feb. 11: “Regulators shut down Baronette in Novi. He also filed for stands above all Snyder thrum of his 2002 hit “Lose Your- Snyder’s budget 7 Peoples State Bank; First Michi- personal bankruptcy in March. others, invul- self” to give the city some viral presentation, the governor made gan buys assets” But in the Dec. 12 issue, Crain’s re- nerable to the marketing props. plain what we all know today: The Troy-based Talmer Bank and Trust ported that a series of business de- ebbs and flows Chrysler Group LLC’s Super way the state offers business tax is the state’s fastest-growing, hav- cisions appears to have revived of the capricious Bowl commercial, which incentives is gonna change. ing come a long way from 2009 the Prentice restaurants and even news cycle. also featured a gospel when it was the the Matt Prentice Restaurant Group And that is choir, became a 136th-largest bank name. this: People will YouTube sensation and known as First read anything Gilbert and the beginning Michigan Bank. One March 16: “University of about Dan 1. In a story that took of a noted ad cam- months to unfold, Tom reason for that 10 Michigan moves up law Gilbert. They would read his horo- paign and slogan of Gores bought the growth is that it school rankings; MSU, Wayne make scope. His dry cleaning bill. Dan the year: “Import- Detroit Pistons and has scooped up list for first time” Gilbert Haiku, written good or very ed From Detroit.” Palace Sports & struggling rivals, Next time you tell a lawyer bad, would attract eyeballs. Entertainment. such as Community joke, keep in mind that enough of If the Newsmaker of the Year Dec. 15, 2009: Central Bank Corp. them live here to help a Web story were based on page views, Dan 3 “American Jew- and, as this story about law school rankings crack would be the man. When Bill Shea elry and Loan pawn reported, Madison our top 10. blogged this month about Gilbert’s shop featured on Heights-based Peo- In U.S. News and dissing of the Detroit Lions on TruTV” ples State Bank. World Report’s 2011 Twitter, more than 2,500 people Now this one’s a In August 2010, Best Law Schools clicked to read more. puzzler. We wrote federal regula- List, the University of In this Web story, Gilbert cel- exactly one Web tors ordered Michigan Law School ebrated his victory and that of story about Peoples to ei- was No. 7 out of 190 Quicken Loans Inc. in a federal American Jewel- ther find in- accredited U.S. law lawsuit involving Quicken’s ry and Loan vestors will- schools, com- policy to not pay overtime to this year — COURTESY OF PLATINUM EQUITY LLC ing to buy pared with a con- and it wasn’t enough stock sistent No. 9 in 2008- See Next Page 20111219-NEWS--0009-NAT-CCI-CD_-- 12/16/2011 10:55 AM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 9

From Previous Page sional soccer team so we policy addresses that loan officers who also earn com- could write about it … have come to be known missions. Gilbert called the jury’s as “special messages.” decision “a victory for right over Feb. 23: “Taking This Web story by Dustin wrong” — hence the headline. 16 stand in overtime Walsh reported on Snyder’s This we exaggerate? Keep read- class-action case, Dan Gilbert defends plan for fixing what he called a ing. Quicken culture, explains his e-mails” “broken” educational system. … Like we wrote about him Among proposals that have since Oct. 12: “As hedge fund buys here. In this story, Gilbert defend- become law: A pool of funds to 13 the farms, prices rise — but ed Quicken Loans’ corporate culture award additional per-pupil money what happens come the downturn?” and business model during the to districts that meet financial best- So this is how viral marketing jury trial involving his company’s practice measures and changes in works, eh? The Crain’s Michigan overtime policy. the tenure system that make it easi- Business weekly Wednesday email At one point, the exchanges be- er to fire bad teachers. reported on a hedge fund that was tween Gilbert and the attorney for buying up farmland and, in the the former Quicken loan officers May 27: “New hotel plan process, raising land prices and a who were seeking overtime drew a 19 emerges for the David Whit- few eyebrows. Freelance writer warning from U.S. District Judge ney building” Howard Lovy sent a link of his sto- Steven Murphy. You know downtown Detroit is NATHAN SKID/CDB Testimony also featured a Gilbert hot when someone is thinking 21: "I think the time is now," said Joe Muer Jr., announcing the planned ry to Glenn Reynolds, creator of reopening of Joe Muer Seafood with Andiamo Restaurant Group’s Joe Vicari in email telling Quicken employees to about opening the Instapundit blog. March. The restaurant opened in September. With more than 4,100 page views have a nice Thanksgiving but a hotel. Daniel to date, we needn’t add that In- adding: “How many mortgages will Duggan report- stapundit is widely followed. you sell at your Thanksgiving din- ed that the new 30 pending lawsuits or imposing a racing license” ner?” Gilbert explained in court: hotel was being $25,000 fine on attorneys who didn’t In the era of the casino, Michi- “That was kind of tongue-in- planned as part try at least three cases a year. gan’s horse racing industry has cheek. The rates had come of a mixed-use The attorneys who left the firm been hobbled. One local example of down, and we had some great development said the penalties created “an ethi- the plight of the ponies was Pinna- products, so there was some for the historic cal minefield where attorneys’ cle Race Course’s announcement truth to it.” David Whitney own financial interests could be at that it was surrendering its racing Building. conflict with their professional re- license for 2011. May 29: “Energy drink king The building sponsibility to clients.” Fieger’s Pinnacle closed in November COSTAR GROUP 17 behind $100 million fund: 19: David Whitney was purchased response, in part: “I’m not interest- 2010, planned to reopen in Janu- Bhargava sets up tech park for new Building in March by ed in having people come here to ary 2011, then July. The Huron firms” Whitney Partners retire on a paycheck from me.” Township track also said it Just how big is 5-Hour Energy? LLC, an evenly split joint venture planned to file an application for Jan. 12: “More red flags up Big enough that its creator, Manoj between The Roxbury Group in De- Nathan Skid’s blog, March 2012 live and simulcast racing 14 at Borders” Bhargava, could start a $100 mil- troit and the Farmington Hills- 21 29: “The reincarnation of Joe permits. Seven months after this For years, bookworms through- lion fund to invest in emerging based hotel investment firm Trans Muer’s” Web story was posted, it had not out Southeast Michigan would business- Inns Management Inc. Two Joes who aren’t average by done so. speak of exploring the canyons of es in the In a Dec. 12 Web story, Duggan any means helped return a fabled literature that made up the origi- state. reported that Starwood Hotels & Re- name to Detroit’s restaurant March 7: “Carbone resigns as nal Borders bookstore in down- The sorts Worldwide Inc. would bring its scene. Joe Vicari, CEO of Warren- 24 Beaumont Hospitals’ COO af- town Ann Arbor, evoking memo- Stage 2 In- Aloft hotel brand to the Whitney based Andiamo Restaurant Group, ter 9 months on job” ries of a sort reserved for such novations space. opened a reincarnation of Joe Muer After hiring K. Bobbi Carbone, iconic regional brands as Vernors, Fund was Seafood in the former Seldom Blues M.D., as William Beaumont Hospitals’ co-found- space inside the Renaissance Cen- COO in 2010, Kmart, Highland Appliance … hmm. 20: Geoffrey CEO Gene This Jan. 12 Web story by Crain’s ed by Fieger got ter. Crain’s restaurant writer Daniel Duggan reported, among Bhargava attention Nathan Skid first reported the deal Michalski said, other things, that Chapter 11 was — CEO of when he set in this March blog. “Having a physi- an option for Borders Group Inc., Living Es- out penalties Vicari purchased the original cian as our COO which had grown from a single, sentials for lawyers in Muer recipes and licensing agree- will also en- revered outlet into a chain of more LLC, mak- his firm that he ments and signed on Joe Muer as a hance our part- than 600 book and music stores that 17: Manoj Bhargava er of the considered consultant for the restaurant, nership with underperforming. had been unable to transition into created 5-Hour Energy, popular which opened in September to a physicians both the digital age. Asked about the then jolted the state energy brisk business. in patient care possibility of bankruptcy, analyst with a $100 million drink — and in business investment fund. Carbone Jim McTevia neither hemmed nor and for- operations.” hawed: “Yes.” And even Chapter 11 mer Chrysler Group LLC CEO Tom La- Less than nine months later, wasn’t sufficient. In September, Sorda. The fund looks to capitalize Carbone resigned for undisclosed Borders was liquidated. two to six companies that are about reasons. She settled an employ- 12-18 months away from commer- Aug. 28: “Lawyers flee Fieger ment contract dispute with Beau- Feb. 2: “5 Questions With ... cializing a patented, major new 20 over workload rule — Ethics mont for an undisclosed sum and 15 sports executive and team in- technology. A company should concerns cited, disputed” now works in Abu Dhabi in the vestor Andy Appleby” have the potential to reach $100 mil- Now how in the world did a sto- United Arab Emirates as an execu- No other story this year generat- lion to $200 million in net income ry about Geoffrey Fieger attract so tive at a 12-hospital health care ed as many reader comments as within a few years, LaSorda and in- many readers? In the Aug. 28 is- company. Sam Flanders, M.D., is vestment fund CEO Simon Boag sue, Crain’s Chad Halcom reported 22: Fire destroyed 30 percent of Beaumont’s interim COO. Bill Shea’s Q&A Magna’s Howell plant on March 2 and Fieger, Fieger, blog with Andy said in this Page 1 story by Daniel on the turnover at damaged all but one of its four Appleby, chair- Duggan and Dustin Walsh. Kenney, Giroux & Danzig PC — a reproduction sectors. Jan. 3: “A&P bankruptcy cre- man and CEO of sult of what former Fieger col- 25 ates new headache for sub- the marketing April 27: “Snyder reveals de- leagues claim were unreasonable leasing tenants” and manage- 18 tails of plan to reform K-12 workload requirements. March 3: “Magna plant fire in Call it the ghost of Farmer Jack. ment firm Gener- education system” In a memo, Fieger proposed with- 22 Howell slows OEM produc- When the Great Atlantic & Pacific al Sports and En- Throughout the year, Gov. Rick holding paychecks from attorneys tion” Tea Co. closed the Southeast Michi- tertainment LLC Snyder has delivered a series of who didn’t maintain a minimum of How delicate is the auto indus- gan supermarket chain in 2007, it — and, it turns try’s supply chain? had store leases extending to 2020 out, an owner of Consider the concern after a fire in some locations. It was able to Appleby an English pro- 23: Pinnacle Race Course in Huron Township gutted the Howell plant of Canadi- sublease some of the space to other fessional soccer team with a sub- closed in November 2010 after holding only a an auto supplier Magna Internation- chains, while other space was left stantial fan base. weekend race schedule last year, then gave up al Inc. vacant. And passionate? Well, when its racing license for 2011. The Magna Atreum interiors In this story in the Jan. 3 issue, comments to a story suggest new plant supplied door panels, interi- Daniel Duggan reported that A&P, lyrics for “Over There” (Hint: or trim and instrument panels to as part of its Chapter 11 bankrupt- “The Yanks are coming, the Yanks the three Detroit automakers, Maz- cy, filed a motion to terminate are coming”), that’s a pretty reli- da Motor Corp. and Nissan North leases at the 20 locations where able sign of real, live, visceral, un- America Inc. Within 24 hours of the the space was leased to a sub- spellchecked British football pas- fire, some assembly plants slowed tenant. The move would require sion. production while others shut the businesses and landlords in- Appleby’s observation during the down. volved to renegotiate leases and interview that British soccer fans Yet within six days, 450 em- decide which will lose roughly “take it very seriously” could be a ployees in Howell were operating $350,000 per year on a typical lease contender for “Understatement of the plant at 80 percent of capacity. — money previously paid by A&P. 2011,” if we had a category for that. The grocery chain expects to Now if we could just get Dan May 5. “Pinnacle Race emerge from bankruptcy early Gilbert to buy an English profes- 23 Course gives up 2011 horse- next year. COURTESY OF PINNACLE RACE COURSE 20111219-NEWS--0010-NAT-CCI-CD_-- 12/16/2011 5:38 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS December 19, 2011 Gilbert No. 2 owner of office space in biz district Village Green plans new Four years ago, Quicken Loans Inc. was leasing office space in Grand GILBERT’S SPACES Livonia, Farmington Hills and Circus Park 5 1. Dime Building: To be office space, Troy. perhaps for Chrysler Group LLC By the end of this year, Quick- apartment projects Park 2. Chase Tower: Used for Quicken en and many of the other compa- Loans Inc.; first-floor retail planned nies owned by Dan Gilbert were BY DANIEL DUGGAN City Apartments at 1431 Washing- John RBroadway 3. First National Building: Will CRAIN’S DETROIT BUSINESS ton Blvd. in Detroit near the Westin fully housed in 7 house Gilbert-owned companies Book Cadillac. Detroit. The such as Title Source Clifford With a new equity partner and a Holtzman said a 2012 project headcount is 6 4. Two Detroit Center: Parking now close to healthy outlook for Michigan and also in the works is an additional 5. Madison Theatre Building: the city of Detroit, look for more phase to the Regents Park complex 4,000. Incubator for Gilbert companies, With the projects from the Farmington in Troy. Grand River plus space leased to Skidmore move, Gilbert Woodward design studio Hills-based Village Green Cos. real The key to projects is being able estate company, said its chairman to assemble the banks, the mort- also bought a Washington 6. 1500 Woodward: To be significant residential or office space with first- and CEO. gage companies and equity in- portfolio of of- floor retail The firm announced last week vestors. With the Ann Arbor pro- State fice buildings 7. 1520, 1528 and 1550 that a Dallas-based investment ject, for example, he said Gilbert through his De- Woodward: Plans undisclosed company both acquired a 50 per- Minneapolis-based U.S. Bancorp troit-based Rock Holdings Inc. cent ownership in the Village loaned money for the project. He purchased the Chase Tower, Campus Brush Green operating company and “There are areas in Michigan the Madison Theatre Building, Michigan 2 Martius committed to a series of invest- where there has been no develop- the Two Detroit Center parking 1 Randolph ments in apartment development of rental apartments for 10, garage, the First National Build- 3 ments. 15 or 20 years,” he said. “You need ing and the Dime Building. 4 Under the deal, Compatriot Capi- banks, mortgage companies and The real estate portfolio now Woodward tal Inc., a subsidiary of Sammons En- equity investors. comprises 1.7 million square feet Lafayette terprises Inc., will invest $50 million “Village Green has brought to- Griswold and roughly 3,500 parking spaces Cass of equity to develop and acquire gether the banks, the mortgage in Detroit, making Gilbert the Larned approximately $250 million of companies and the equity part- second-largest private owner of Fort apartments over the next 24 to 36 ners, and we see the opportunity office space in the city’s central Jefferson months. in Michigan.” business district behind General Congress “As of right now, we’re not just The deal with Compatriot also Motors Co. optimistic about Michigan, we’re represents a change in ownership CRAIN’S DETROIT BUSINESS And the spree continues down investing in Michigan,” said of the umbrella management com- Woodward just south of Grand ward and 1528 Woodward under immediately north of the Com- Jonathan Holtzman. pany, Village Green. Circus Park. contract to be purchased from the puware Building. The company is roughly 30 days Holtzman was a partner in the As of mid-December, his group Detroit Downtown Development Au- Gilbert’s real estate group also from starting construction on a company with his father and un- had purchased the title from the thority for $337,500 each. disclosed on its website that it has 156-unit apartment complex in cle, along with developer Gilbert Wayne County treasurer to the The group has long-term plans plans to redevelop the building at downtown Ann Arbor to be called “Buzz” Silverman and the Silver- building at 1550 Woodward for to create a residential develop- 1500 Woodward Ave. Purchase Ann Arbor City Apartments. man family. The predecessor com- $176,000 in back taxes. He also ment on the portion of the former price was not disclosed. It also recently took an owner- pany had been founded by the had the buildings at 1520 Wood- J.L. Hudson department store site — Daniel Duggan ship stake in the 29-story Detroit men’s grandfathers. When the group parted ways in 1995, Holtzman gave a 50 percent ownership stake in the firm to Chicago-based investors Ronald Benach and Wayne Moretti. The three men have common ownership in the individual limited lia- Contingent Fee bility companies that own projects developed in the last 16 years, Holtzman said, but the ownership in the overall management compa- Business Litigation? ny was sold. “They didn’t want to retire, but aren’t as active in apartments as they used to be,” Holtzman said. Holtzman will continue to be In a word, “Yes.” CEO of the company under the When your lawyer is as investedvesteed in new structure and will still own 50 percent of it. the outcome of your case as you are, Compatriot CEO Paul Rowsey you know you will be getting your said, in a press release, the deal gives his firm a platform to make money’s worth. In Michigan, no ﬁrm investments through a real estate handles contingent fee business operating company. “The current dynamics in the litigation better than we do. real estate market have afforded a unique opportunity to make direct Don’t pay hourly legal bills. investments in real estate operating companies,” he said. Choose Sommers Schwartz for all Village Green owns and/or op- your business litigation needs. erates $4.5 billion in assets composed of 40,000 apartments in 150 rental communities under five distinct brands: Village Green, City Apartments, Regents Park, Vil- lage Park and Leading Furnished Suites. Holtzman said Village Green is bullish on the city of Detroit. “You’re seeing a lot of strong leadership right now in the city, Powerful Attorneys. Remarkable Results.Resuultts.s. both corporate and political,” he said. “Village Green sees itself as a component of that leadership. DW>KzDEdͻ>^^ d/KE^ͻWdEd >/d/'d/KEͻKEdZd/^Whd^ “Someone needs to create more rental housing of different rental www.sommerspc.com | 248-415-2234 | 1-888-884-3878 | 2000 Town Center, Suite 900, Southﬁeld, MI 48075 rates in the city.” Daniel Duggan: (313) 446-0414, ADVERTISING MATERIAL [email protected]. Twitter: @d_duggan 20111219-NEWS--0011-NAT-CCI-CD_-- 12/16/2011 10:52 AM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 11

JANUARY: Crain’s FEBRUARY: Nathan Skid photographed Jonathon Triest multimedia reporter and the other 2011 Crain’s 20 in their 20s honorees Nathan Skid holding a descriptive word of their choosing. The “dynamic” captures a Triest is managing partner of Ludlow Ventures LLC in thoughtful Mike Fezzey as the radio veteran joins Huntington Bank in the role of president of the bank’s Southeast Michigan region. NATHAN SKID/CDB

GLENN TRIEST 2011 MAY: Tanya Allen lets her excitement show beneath the first billboard for her Forever Fresh disposable adult undergarments — a The year product she spent years developing and marketing.

JUNE: William Miles, owner of Clawson-based American through NATHAN SKID/CDB Flag and Banner, says MARCH: Notes frame Seth tightened Michigan gaming Starner of Amway Corp. with a regulations led him to stop story in the first monthly Crain’s selling handmade flags to Michigan Business special MGM Grand Detroit. “It just the lens section, about a Grand Rapids wasn’t worth it,” he says. building where businesses can share space and ideas. Notable photos NATHAN SKID/CDB GLENN TRIEST JULY: from the pages Tradition dominates the 119-year- of Crain’s old Detroit Club building, which Lorna he best photos at and Nick Crain’s Detroit Abraham T Business don’t bought for an undisclosed just show faces in the price news, they capture following mood, personality, set- years of the club’s ting and more in ways financial that words alone struggles and cannot. declining membership. Here are examples of The club images from the past lives on, year that stand out for leasing special skill, vision, cre- space in the building and GLENN TRIEST ativity, newsworthiness working to AUGUST: Freelance photographer Glenn and storytelling power. attract a new Triest composed this photo illustration of generation of GalaxE.Solutions recruiting director Ryan members. Hoyle seeking skilled workers in Detroit. JOHN SOBCZAK

NOAH STEPHENS AUGUST: Todd Ridley’s gathering with friends at Roast illustrates a story about Detroit “hot spots.” Freelance photographer Noah Stephens’ project thepeopleofdetroit.com showcases Detroiters. SEPTEMBER: Doug Fister pitches in a NATHAN SKID/CDB season that saw the NOVEMBER: Top executives at app maker Detroit Labs LLC loosen up for a photo in the Madison Theatre Building downtown, Detroit Tigers nearly home to their new headquarters. From left are co-founders Dan Ward, vice president of business development; Nathan Hughes, make the World Series. vice president of software engineering; Henry Balanon, director of mobile; and Paul Glomski, CEO. MARK DUNCAN/THE ASSOCIATED PRESS 20111219-NEWS--0012,0013-NAT-CCI-CD_-- 12/16/2011 2:12 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS December 19, 2011

Bloggers on the beat UPCOMING e asked our intrepid reporters to offer mat starting here and continuing to Page 17. Se- up some end-of-the-year analyses of nior Editor Bob Allen also weighs in (below) on W the hot topics and ongoing stories on practical advice for PR folks pitching us stories. PARTNER EVENTS their beats. Read our regular news blogs at www. Their viewpoints are shared in column for- crainsdetroit.com and in our daily e-newsletter. Crain’s partners with a variety of organizations on events and special subscription offers for their members. Please visit their Web sites below. BOB ALLEN: On getting news into Crain’s How to Become a Government One problem with be- any questions about the get something into the news, be it Contractor ing the “senior editor” email you sent me, well, Crain’s or another media organiza- and not a reporter is yes, I do have a question: tion: Research. Presented by the PTAC of Schoolcraft that, lacking industry ex- Why do you do this? I Find the organization’s website College. Did you know the federal government pertise, I have to wing it mean: and spend a couple of minutes purchases more than $524 Billion of goods when it comes to looking If the email was learning about it — what it does, and services a year, and that the State of back on the past year. well-written, would you who’s in charge, staff names and Michigan has a diverse portfolio valued at Shea can prattle on about need to follow up? numbers and what they cover. This Verlander, and Duggan If I didn’t get the is what I do when I’m looking for billions of dollars? Find out what it takes to about Dan Gilbert, and email, shouldn’t you call information about a company and I sell your goods and services to the Federal Skid about food, and your email vendor first want to avoid my call being impor- Government and the State of Michigan. Greene about health care Bob Allen instead of me? tant, as they say before I press 1. reform (big yawn), and If I had a question, Also, nothing is more embar- In addition, learn about the free services Kaffer about Detroit (not even wouldn’t I call you? Or is it that rassing than when the person on and continuous government contracting close to a yawn). you’re calling me as a courtesy be- the other end of the line asks you support that the PTAC (Procurement Technical In contrast, I am reduced to the cause I might be too busy to call be- what you know about his or her Assistance Center) of Schoolcraft College can gravitas that comes from having cause I’ve been responding to company and you are reduced to my last name start with “A,” plac- emails and phone calls? faking it. provide to your company. ing me atop the newsroom staff After playing around with vari- And toward that end, if you’d Jan. 12 • 9 a.m. – Noon list. Which is to say, phone calls of- ous terms for this, I have settled on like to learn about us: Schoolcraft College ten come to me. Emails, too. It’s “Trojan Horse.” You know, send Go to crainsdetroit.com, place $45 per person part of the job and is no big deal. the email, then come back with the the cursor over the word “Home” That said, please help me fathom call that isn’t a cold call but help- on the red navigation bar at the top Registration required: (734) 462-4438 the following: ful, follow-up communication. of the home page and select “How to A few times a week, I get a phone About 12 years ago, I wrote a col- get your news in Crain’s.” Here you call from someone “following up” umn to help individuals and orga- can learn, among other things, how Marketing & Sales Executives of Detroit on an email, asking whether I re- nizations write news releases that to get stories into our publication (MSED) Monthly Meeting ceived it and whether I have any would increase their chances of and the reporters who cover your “Automotive Forecast for 2012 — questions. getting stories into Crain’s. Back industry. My reaction to this has evolved then, I stressed accuracy, brevity, I hope this helps your quest to be- Global Recovery” from a perplexed amusement to modesty and clear communica- come more visible on the Web and Presented by: Jeff Schuster, LMC Automotive having someone in HR talk to me tion. All still apply. print pages of Crain’s in the year to Jan. 26 • 5 p.m. – 8 p.m. about the employee intervention Because I would like this to be a come. Feel free to call or email. Management Education Center, Troy program (which features an anger- teachable moment for all — and Note that I said or. MSED Members: $45 management component) to a non- truly, there very well may be a rea- lethal curiosity. son for the Trojan Horse and I’m Bob Allen: (313) 446-0344, Non-Members: $60 And so for those of you who not seeing it — here is an addition- [email protected]. Twitter: Additional Information and Registration at have called to ask whether I have al suggestion to anyone trying to @tzarbob www.msedetroit.org or call (248) 643-6590.

DAN DUGGAN: Past (and future) headlines of note

Through the magic of gion. Controversy con- The Michael Kojaian-Grubb & the Internet, “Buildings tinues as to who will run Ellis saga: Bloomfield Hills in- and Dirt” is able to look the firm. vestor Kojaian tries to rescue the deep into the future and Southfield Town Grubb & Ellis brokerage from the come back with the Center moves to Detroit brink of bankruptcy — not to men- biggest headlines of the Following the trend of tion the 23 million shares he owns year to come. suburban firms moving in the firm. Amazing, but true. to Detroit, the engineers Colliers International on the At the end of 2012, the of the region perform a rise, at least by head count. Under real estate community of massive feat by actually new management and ownership, Nominate Michigan’s BEST metro Detroit will be moving the four-building the firm has been on a tear in 2011, looking back on the fol- Dan Duggan complex from Southfield picking up 10 new brokers, eight of lowing stories from my to Detroit’s riverfront, as whom were poached from other General and In-House Counsels real estate blog: its ownership wants to “better firms. Dan Gilbert buys the Detroit serve its tenants.” Led by the automotive sector, River The move was nearly held up be- Crain’s Detroit Business in partnership with the Association of industrial deals have been scorch- Sources confirm that the Quick- cause the Detroit City Council ing hot, with close to 7 million Corporate Counsel Michigan Chapter; State Bar of Michigan, en Loans founder no longer could could not decide on a tax rate for square feet of deals as of the third Business Law section and the Oakland County Bar Association be contained by the built environ- the building. quarter. will salute the best legal minds working inside Michigan’s public, ment of Detroit and actually As for 2011, a few of the stories Empty manufacturing facili- private, nonproﬁt and government organizations in May 2012. bought the river. Blazing a trail of that occupied most of my time are ties now litter the landscape of the latest in “open office environ- less spectacular but still impor- Southeast Michigan, with massive ments,” he also bought the old tant. plants from each automaker now Bob-Lo boats to offer employees Chasing deals in Detroit took up on the market. To scrap or not to Find all the details at: the chance to office from the riv- all but three weeks of my working scrap? Sadly, many say scrapping www.crainsdetroit.com/nominate er. year. is probably the only option. Mega-firm created Between Gilbert’s investments, Thanks to everyone for reading Nominations due Jan. 27, 2012. The major real estate firms of the residential projects being dri- my real estate coverage in 2011. metro Detroit decided to form one ven by a demand to live in Detroit Stay tuned for 2012, and we’ll see combined real estate firm, repre- and the suburban companies, such whether my headline predictions senting the most significant M&A as Chrysler Group LLC, interested in indeed come true. IN PARTNERSHIP WITH CO-PRESENTERS TITLE SPONSOR story of all time. The firm — CBRE, city space, the Detroit real estate JLL, Grubb & Ellis + Signature, Fried- beat was the story of the year. Reporter Dan Duggan’s “Build- man, Mason Capitani, Farbman, Mar- Other important stories you ings and Dirt” blog on commercial cus & Milichap and Lee Associates — missed if this is the only real estate real estate can be found at vows to get every deal in the re- story you read in 2011: www.crainsdetroit.com/duggan 20111219-NEWS--0012,0013-NAT-CCI-CD_-- 12/16/2011 11:47 AM Page 2

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 13

Bloggers on the beat 800-292-3831 JAY GREENE: Like it or not, reform sets agenda indiantrails.com Hospitals, physicians would expand Medicaid Beaumont wants the Blues to in- and businesses respond- to 25 percent of the state’s crease base rate payments 9 percent ing to health care reform population from 20 per- over the next three years. This is in — formally known as the cent now and add thou- addition to the 7.8 percent all hospi- Patient Protection and Af- sands to the health insur- tals in Michigan will receive under ONE HU G ND IN R fordable Care Act of 2010 ance rolls through the what is known as the “participating T E A D R Y B E — influenced coverage of individual mandate and hospital agreement.” E A

L R

E S health care this year. state insurance exchange. Blue Cross wants Beaumont to C 100 I try to cover business Another major story in agree to value-based incentive con- transactions and opera- 2011 had to do with War- tracts for the second and third years tional changes in the ren-based St. John Provi- of the three-year contract. The in- health care industry Jay Greene dence Health System. Dur- centives, which would reward Beau- through the lens of health ing the year, St. John mont and its physicians for higher- care reform, because the pending announced three joint ventures quality care, place some changes are so massive. The with physicians: in cardiology, neu- reimbursement at risk. changes involve not just how much rology and surgery. St. John and the While Beaumont supports incen- providers are paid, but also how physicians formed separate compa- tive-based contracts, executives at care is delivered . nies under a contract in which they the three-hospital system have said While not all deals in 2011 were di- agreed to co-manage various hospi- they will terminate participation rectly related to health care reform, tal departments. with Blue Care Network effective Jan. many were influenced by it. Under the contract, physicians re- 12 if Blue Cross does not increase its For example, when the Detroit ceive hourly consulting fees for at- base reimbursement rate substan- Medical Center became a for-profit tending management and commit- tially. hospital system on Jan. 1 — after it tee meetings and also are paid Executives from both sides said Comfort and was acquired by Nashville-based financial bonuses for hitting quality last week that some progress has Vanguard Health Systems Inc. — some and efficiency targets. been made in negotiations but a deal experts said health care reform Forming co-management compa- is yet to be made. t$IBSUFST made the deal possible. nies is part of St. John’s plan to Last week, St. John agreed to a Luxury DMC CEO Mike Duggan has cited work more closely with physicians contract addendum that would pro- t5PVST lack of access to capital and aging — a theme under health care reform vide financial incentives for im- infrastructure as primary reasons that encourages providers to coordi- proving quality and patient care t4IVUUMFT to seek a buyer back in late 2010 and nate care more closely. management. 00 early 2011, when the deal was an- A big surprise of the year came in $100 OFF nounced. But most experts say Van- early October when Royal Oak- Senior Reporter Jay Greene’s t$POWFOUJPO4FSWJDFT SAVE guard chose to spend $1.5 billion on based Beaumont Health System made blog about health care, insurance the DMC acquisition based on provi- public its contracting dispute with and the environment can be found t$PSQPSBUF&WFOUT Contact Indian Trails for details. Must use this sions in health care reform that Blue Cross Blue Shield of Michigan. at www.crainsdetroit.com/greene t4DIFEVMFE4FSWJDF promotional code at time of booking: 2011CDB-DEC

CHAD HALCOM: Corruption, antitrust big topics

Public sector corrup- Arctic Glacier Interna- litical favors, awaits a trial date tion and private sector tional Inc. of Canada and next September. collusion were hot topics Cincinnati-based Home Large law firms losing local tal- for Detroit’s top corpo- City Ice Co. also obtained ent also continue to make for good rate lawyers this year, court approvals in 2011 gossip during the year. South- and the chatter will only for two settlements to- field-based Fieger, Fieger, Kinney, heat up in 2012 as the fed- taling $26 million, for Giroux & Danzig PC won more than eral government takes noncompetitive prac- $150 million worth of trial court further action. tices including allocat- verdicts against various corpora- A few of my legal beat ing specific retail cus- tions during the year, but also sources have been ready tomers in the Southeast saw 10 of its 20 attorneys leave to to declare 2011 “the year Chad Halcom Michigan market. form solo practices or join other of the resurgent suppli- Other attorneys said law firms between January and er” — or at least a strong rebound Detroit-area public corruption August. Several of the attorneys year for automotive suppliers to probes were a “high priority” and told Crain’s that a set of perfor- play a role in transactions like “at the top of the list” of most signif- mance targets and penalties in- mergers and acquisitions or in icant issues tackled by the local le- cluding a $25,000 fine on attorneys non-bankruptcy litigation. Vari- gal profession this year, and should who don’t try at least three cases ous supply chain disputes tied to only gain more momentum in 2012. per year was a factor in their de- raw materials prices, dual-sourc- The FBI has subpoenaed records parture. ing, the Japanese tsunami of last related to Turkia Awada Mullin’s The long exodus that saw more March or other factors kept firms past tenure as Wayne County’s eco- than 100 attorneys depart Detroit- with automotive practices busy nomic development chief and based Butzel Long PC had largely starting in the first quarter. records connected to a $200,000 sev- stopped by mid-2011, with head- In the last quarter, about 30 class- erance payment she received — count remaining steady at around action lawsuits also rained on sup- and subsequently returned — when 136 attorneys through the second pliers following the first criminal in- she left that post to become CEO of half of the year. Compensation for Consultative dictment in an ongoing federal Detroit Metropolitan Airport in Sep- partners also was given as a mo- Professional life insurance counseling investigation of anticompetitive tember. That investigation also in- tive for many attorneys who left in a non-salesy environment practices over the past decade (See volves Wayne County Executive that firm in the past. Dustin Walsh story, Page 17). In all, Robert Ficano and appointees in One other hot topic I must men- the top 10 grossing suppliers of his administration. tion: The Leahy-Smith America We work with our clients and their advisors to: metro Detroit were part of more Michigan Attorney General Bill Invents Act of 2011, which con- than 450 federal lawsuits nation- Schuette’s office authorized more verts the U.S. patent application Reduce estate and income tax Enhance fixed income wide in 2011, compared with just than 100 criminal charges includ- system from a first-to-invent to a yields Solve family and business issues Improve over 220 cases in 2010. ing bribery and embezzlement first-to-file system and mandates and misconduct in office against existing life insurance policies. But the auto industry didn’t cor- that U.S. Patent and Trademark Of- various defendants, mainly mu- ner the market on antitrust action, fice establish three regional of- nicipal officials, through the pub- either, as new lawsuits continued fices, including one in Detroit, to filter in throughout the year lic integrity unit formed at the of- “subject to available resources.” against Blue Cross Blue Shield of fice earlier this year. Local attorneys have said getting Michigan following a 2010 joint civil A separate federal prosecution the resources for a Detroit office action by the U.S. Department of Jus- of former Detroit Mayor Kwame will remain a legislative priority. tice and Michigan attorney gener- Kilpatrick and four co-defendants al’s office over “most favored na- in a so-called “Kilpatrick enter- Reporter Chad Halcom’s blog on BIRMINGHAM, MICHIGAN 248.731.9500 prise,” including allegations of the legal business can be found at tion” charging agreements with WWW.SCHECHTERWEALTH.COM hospitals throughout the state. swapping contract awards for po- www.crainsdetroit.com/halcom 20111219-NEWS--0014,0015-NAT-CCI-CD_-- 12/16/2011 5:15 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS December 19, 2011

Bloggers on the beat TOM HENDERSON: Sometimes you see it coming, sometimes not Here are some events the ground and pledges sors group at Wayne State University, in several Crain’s stories, because voltaics had put all its eggs in one in 2011 that no one saw $30 million to help grow Carnegie Mellon University in Pitts- it only made sense that he and basket: selling solar roofing mater- coming: young clean-tech compa- burgh, the University of Chicago and partner Jan Garfinkle would want ial to huge construction projects in Joe Angileri joins nies here that can sell to Universidad Complutense de Madrid. something substantially larger af- Europe that were propped up by Compuware Corp. in June the huge Chinese market. And then there were some more ter all their success. government subsidies. as president and COO, re- Here. Southeast predictable things: In September, they announced When the recession hit, con- placing Bob Paul. That Michigan. Not Silicon That Arboretum Ventures LLC that they had indeed been looking struction projects couldn’t get Paul was, in turn, replac- Valley. Not Boston. would raise its biggest fund and for $125 million but ended up top- bank funding, and countries like ing founder Pete Kar- Before they’d left, they that it would be oversubscribed. ping out at $140 million. Spain and France suddenly had no manos as CEO wasn’t a had signed memoranda The Ann Arbor-based venture capi- That in April, Jeff Williams appetite for subsidizing anything surprise, having been of understanding with tal firm has had some great exits in would be named CEO of a UM spin- except more meetings to try to fig- anointed by Karmanos Tom Henderson Spark and Sino Ambas- recent years, including the sale of off called Life Magnetics Inc. I told ure out how to salvage the euro. long ago. But Angileri re- sadors LLC, a Spark tenant HealthMedia Inc., HandyLab Inc. and him in March I figured that would Sure, ECD said it would now placing Paul? that will head the investment fund. Accuri Cytometers Inc. for an aggre- be his next gig, and he agreed to let concentrate on other markets. Hey, Angileri, 53, had retired after Henry Ford Health System creates gate sum approaching $600 million. me know if it became official. Canada is right there across the having been managing partner of the Innovation Institute at Henry Ford, Its second fund of $73 million Life Magnetics earlier had gotten river. And there’s always South the Michigan region of Deloitte LLP a joint venture to create for-profit didn’t have much dry powder left $1 million in seed funding from Ar- America. But with its major mar- since 2007 and a 19-year partner of companies and improve medical when I asked Managing Director boretum. Williams had been CEO of ket having blown up, did it really the accounting and consulting equipment and hospital processes. Tim Petersen whether he was rais- HandyLab before it was sold in 2009, need two factories in Greenville? firm. But Paul and Karmanos de- Much more than lip service to ing a third fund of $125 million. then was Accuri’s CEO before it was And two in Auburn Hills? Or that cided he was their guy and eventu- collaboration, this is the real deal, Worried about U.S. Securities and sold last February. Let’s see: Ar- new factory in Battle Creek? ally convinced him he was, too. with enough startup funding for a Exchange Commission rules pro- boretum has a new portfolio compa- No. No. And no. A Chinese real estate develop- gorgeous rehab of an Albert Kahn hibiting fund managers from seek- ny and Williams is out of a job? Reporter Tom Henderson’s blog ment group comes to Southeast building on the hospital campus ing publicity, he refused to com- That Energy Conversion Devices about accounting, banking, venture Michigan and asks Ann Arbor Spark and partnerships with the College ment. I went with the $125 million Inc. would spend 2011 in deep doo- capital and high tech can be found for help getting a tech incubator off for Creative Studies, the smart sen- as an educated guess for his target doo. The maker of solar photo- at www.crainsdetroit.com/henderson

NANCY KAFFER: Be merry now, for tomorrow isn’t looking so great Christmas is my favorite time of But this year, it’s a bittersweet expected to result in a full finan- asked said he feels like having an (In 2005, when I started covering year in Detroit. Downtown looks Christmas. cial review for the city of Detroit. emergency manager in Detroit is the city for another weekly publi- great, and there’s that pre-holiday And the year ahead promises to Which is expected to result in the like doing that intervention on cation, the city’s financial crisis feeling of excitement in the air. It’s be especially grim. A preliminary appointment of an emergency fi- your drunk brother: excruciating was also the cold, sure, but it’s the exciting pre- review being conducted by state nancial manager. in the short term, but if all goes top story, and Christmas, before-the-snow-is- Treasurer Andy Dillon should be What exactly this means for De- well, he becomes a viable human people talked dirty-brown kind of cold. complete before Christmas and is troit is unclear. One city dweller I being again. At some point. about the idea of a state takeover all the time, only back then we called it “re- ceivership,” a term that’s inaccurate Nancy Kaffer but much more succinct. Oh, how I long for the days of straightforward sentence construction.) The big question is whether an emergency manager can fix De- troit’s financial problems. The De- troit Public Schools don’t seem re- motely close to fixed. And this is the second DPS state takeover in the last 10-ish years. You Deserve to See All of Your Commercial Real Estate Options There’s no question that many Detroiters would violently (rhetor- ically, if not literally) reject a state takeover. There’s always the chance that Mayor Dave Bing and the Detroit City Council will come up with an amazing cost-cutting plan, and the city’s unions will sign on. There’s also the chance that the city will enter into a consent agreement (not a consent decree, by the way, that’s something different) that would grant a city official some of the pow- ers of an emergency manager. Real Estate Strategy At any rate, it seems like the new year is going to be pretty Tenant Representation bleak. I don’t see any way to fix De- troit’s budget without hard short- Buyer Representation term cuts to services. All of which will be good for my Project Feasibility industry. Lots of conflict means lots of stories. But this time, y’all, I Before you make a move, let us uncover every commercial Construction Oversight have no appetite for the stories real estate option. As an unbiased, tenant representative, that would arise. Detroit, I hoped it Incentives would never come to this. we bring more thought per square foot. Merry Christmas, everybody. Lease Administration Reporter Nancy Kaffer’s blog on pmcresa.com 248.223.3500 the city of Detroit and small business can be found at www. crainsdetroit.com/kaffer 20111219-NEWS--0014,0015-NAT-CCI-CD_-- 12/16/2011 5:15 PM Page 2

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 15

Bloggers on the beat Seasons AMY LANE: Lansing kept me busy to the finish greetings!

LANSING – Whew. The budget was done municipalities and galvanized a Have a little That about sums up a by the Legislature in late push to protect revenue, even with holiday cheer in year of business-not-as- May, some four months no tangible administration propos- ﬁ usual in Lansing. before the start of fiscal al yet introduced. your of ce with There’s a governor 2012 and the earliest The year brought no shortage of simple and working in dog years and Michigan’s budget had things to watch and write about. a Republican-controlled been completed in 30 It’s what makes being a reporter affordable options Legislature also eager years. fun, and a challenge. from Kosch. for action. Gov. Rick Snyder es- And for years, it’s something That led to the passage pouses relentless positive that I’ve been privileged to do. Visit our website to and signing in May of action. And he had a lot of But as 2011 closes, so does a per- see our new holiday sweeping business and in- Amy Lane momentum. But then sonal chapter. Call (248) 608-0690 or Email menus. dividual tax reforms that came the bridge between After nearly 27 years with par- included scrapping the Michigan Detroit and Canada. To the surprise ent company Crain Communications [email protected] Business Tax and instituting a new of some, even Snyder couldn’t get Inc., including as part of the De- 6 percent corporate income tax. lawmakers to go along with the ad- troit startup team for Crain’s De- In conjunction, the tax credit ministration-backed New Interna- troit Business and as CDB’s capitol giveaways and incentives baked tional Trade Crossing — a priority correspondent since May 1987, I’m 324 East Street into Michigan’s economic devel- that consumed much public and stepping away. Rochester, MI opment fabric are now replaced private debate and lobbying. I’m leaving as a full-time em- 48307 with a new way of doing business Snyder hasn’t given up. The ployee at the end of this month to (248) 608-0690 — and a smaller pot for incentives. bridge is a to-be-continued story. take on freelance writing opportu- As for traditional months of So is another big-ticket item: nities, including with Crain’s. state budget debate, maybe even personal property tax reform. Just I’ll still be asking questions and pushing right up to the Oct. 1 start the mere discussion of eliminating looking for good stories. You can of the new fiscal year? Not this Michigan’s personal property tax reach me in the New Year at (231) year. this year set alarm bells ringing at 352-5471; [email protected].

BILL SHEA: Wide world of sports biz, 2011 Here’s a look back at ed the year by firing Rich Championship Series was Verlan- the top 10 most influential Rodriguez, then hired der’s lights-out pitching. His perfor- people in local sports in Brady Hoke as his re- mance ended Tigers’ skids, gave the 2011, based on incredibly placement. The Wolver- bullpen needed rest and persuaded unscientific polling of ine football team re- the front office to trade for players myself: bounded for a 10-2 record that got Detroit into the playoffs. He 10. Tim Tebow: Not real- and a berth in the Sugar also has perfected the art of the ly, but sort of. The evan- Bowl on Jan. 3. The team sculpted scruff beard — a far more gelical Denver Broncos also beat Ohio State for professional and modern look than quarterback with a full- the first time since 2003. Brandon Inge’s soul patch. back mentality was the Balance was restored to 2. Martin Mayhew, general manag- one-man story no sports- Bill Shea the universe — at least er, Detroit Lions: Why do I have writer worth his weight for Ann Arbor. him ranked ahead of the beloved in dimly thought purple prose 5. Ndamukong Suh: The second- Verlander? Mayhew has assembled could resist. Going into Sunday’s year Lions defensive tackle was a team that has restored fan inter- showdown with the New England making headlines for his ability to est in the Lions and respect from Patriots, the polarizing Tebow’s terrorize quarterbacks, but it was the rest of the league. He hit home record as a starter was a surpris- Suh’s inability to control his emo- runs with his top draft picks in ing 7-1, with the lone loss coming tions that attracted national atten- quarterback Stafford and defensive at the hands of the Detroit Lions. tion. After he stomped on a Green tackle Suh. He also has patched (See, there is a Detroit connection!) Bay Packers player during the na- holes with free agents as injuries 9. Ken Holland, general manager tionally televised Thanksgiving mount. This season, the Lions are of the Detroit Red Wings: The man Day game, Suh tried to justify his 8-5 so far, guaranteeing the team’s knows hockey and how to keep De- actions but then was contrite. He first nonlosing season since 2000. troit the National Hockey League’s was dinged with a They’re in con- most dominant team. Twenty two-game unpaid tention for a play- straight years of playoffs — what suspension. Oh, off berth for the more needs to be said? He finds tal- the incident came (The Wayne State first time since ent, young and old. Will he become during the same 1999. Playoffs and more powerful when the team has game that Chrysler Warriors) became Detroit Lions in a new downtown arena, with new Group LLC pre- the feel-good story the same sentence, revenue streams and attractive- miered a TV spot in December, ness to free agents? featuring him. of the end of the without a negative 8. Ron English: He took over the Epic timing fail. modifier? No more Eastern Michigan University football 4. Tom Gores, college football “Owen 16” jerseys. FULL SERVICE ASSEMBLY program in 2009 and went 0-12. The owner of the De- 1. The Wayne following season wasn’t much bet- troit Pistons: The season. State University TOOLING SYSTEMS ter at 2-10. This past season saw L.A. private equi- Warriors: The the Eagles claw out a 6-6 mark, and ty billionaire with Michigan roots school — known in collegiate ath- English earned Mid-American Con- bought the NBA franchise for $325 letics only for its elite fencing pro- ference Coach of the Year honors. million in June. It was the first De- gram — made the football playoffs CONTINGENT WORKFORCE They now speak English in Ypsi! troit pro team to change owners this season for the first time ever 7. Matthew Stafford: The Lions’ since the Detroit Tigers were sold in and won four road games to reach SERVICES franchise quarterback emerged in 1992. The fashion-conscious Gores this past Saturday’s Division II na- 2011 as the team’s most successful is younger than the city’s two oth- tional championship game against passer since Bobby Layne in the er team owners by 40-some years, powerhouse Pittsburg (Kan.) State ’50s. Through 13 games this sea- so it’s possible he’ll be seen among University. The Warriors (12-3) son, Stafford has 3,754 yards pass- the city’s hip set — and possibly be reached the title game despite being (fifth-most in team history) a voice in NBA affairs, a la Dan ing a sixth seed in their region and 29401 Stephenson Highway and 29 touchdowns. He’s likely to Gilbert of the Cleveland Cavaliers. having an operating budget of only Madison Heights, MI 48071 break the team record of 32 scoring 3. Justin Verlander, pitcher, De- $195,000. They became the feel- passes set by Scott “Water Buffalo” troit Tigers: He became Detroit’s good story of the end of the college 248 548 6010 Mitchell in 1995. Also, he did some first Cy Young Award and MVP football season. www.gonzalez-group.com of his work with a busted index winner since Willie Hernandez in Reporter Bill Shea’s “Shea’s Sta- finger on his throwing hand. 1984. While the Tigers didn’t get to dium” blog on the business of sports 6. David Brandon, athletic direc- the World Series, the most signifi- can be found at www. AEROSPACE | DEFENSE | AUTOMOTIVE tor, University of Michigan: He start- cant reason they got to the AL crainsdetroit.com/sheasstadium 20111219-NEWS--0016,0017-NAT-CCI-CD_-- 12/16/2011 5:16 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS December 19, 2011

Bloggers on the beat NATHAN SKID: Restaurant biz is on a roll I admit I was surprised in Brownies on the Lake an eatery in Detroit. by all of the activity in and Joe Muer Seafood. This year saw the opening of As- metro Detroit’s restau- Vicari said year-over- tro Coffee and Sugarhouse Bar, both rant scene this past year. year sales for his restau- of which have quickly become Finally, there was some rant group, which in- neighborhood favorites for arti- good news to report. cludes more than 20 sanal beverages. (My favorite During 2011, we saw restaurants, have been drinks are the flat-white and The the rise of food trucks, relatively flat since 2008, Lost Art of Keeping a Secret, re- the revival of long-lost but is bullish on Joe spectively.) names, the rise of Cork- Muer’s Seafood. Also slated to open in Corktown town, the announcement “There is a lot of buzz is the Mercury Burger Bar, in the for- of exciting new restau- Nathan Skid downtown, and it’s one of mer Mercury Coffee Bar space, rant concepts in both the the pockets doing well.” and an Italian restaurant is expect- suburbs and the city and a surpris- Meanwhile, Matt Prentice said ed to open on Michigan Avenue ing amount of attention being giv- systemwide sales at his restau- just across the street from Nemo’s. en to our local restaurants on the rants are up almost Foodies also have Food Network. 6 percent over past celebrated the influx Several food trucks are now year; and for the Things are of Food Network in- trolling metro Detroit, including first time in years, “ terest in our most Concrete Cuisine, Jacques Tacos and the company is finally getting treasured eateries. El Guapo. Each has its own flair and opening an adven- Over the year, is creating a loyal following. turous new Ameri- better, and I am “Diners, Drive-Ins Detroit city officials are work- can bistro called and Dives” host Guy ing to change antiquated ordi- Gastronomy in the seeing it, and it’s Fieri visited East- nances that will allow food trucks former Morton’s ern Market’s Supino to thrive in downtown Detroit Steakhouse at 1 about time. Pizzeria, Midtown’s On the bricks and mortar side of Town Square in ” Traffic Jam & Snug, the industry, after nearly four Southfield. Matt Prentice the Clarkston Union years of contraction, it seems that “Things are final- and Union Woodshop. cautious expansion is the trend for ly getting better, and I am seeing I believe the health of a city can metro Detroit’s restaurant scene. it, and it’s about time,” Prentice be gauged by the vibrancy of its Joe Vicari, for example, had a said. “The bistro concept is hitting restaurants — and metro Detroit’s big year. Vicari, president of War- it right now because they use inex- culinary scene is getting stronger ren-based Andiamo Restaurant pensive ingredients cooked cor- every day. Group, opened two locations of Rojo rectly, which is very popular right Mexican Bistro, one of which was now.” Reporter Nathan Skid’s Detroit- converted from an Andiamo, and On the other side of town, Cork- area restaurant blog can be found brought back two familiar names town has become the place to open at www.crainsdetroit.com/skid

SHERRI WELCH: The science of muddy financial data Looking back on a cash flow picture is mud- The Detroit Science Center’s year of covering the non- died even when a non- 2010 990 tax form only recently be- profit community often profit files its tax forms came available at guidestar.org. requires looking back quickly. It’s dated Aug. 15, 2011 — which farther than 365 days. The science center was would have been 8½ months after The best illustration of a finalist for Crain’s Best the close of its fiscal year, had it this is the sudden clo- Managed Nonprofit con- been immediately available to the sure this fall of the De- test four years ago for its public. troit Science Center — earned revenue model. The 990 shows a reported loss of and why something that And before the economic $2.5 million for the center last was such a surprise downturn, its former year, following a loss of $587,332 in maybe shouldn’t have Sherri Welch president and CEO, 2009. Contributions dropped to been. Kevin Prihod, told $3.9 million from $5.6 million in The only people not caught off- Crain’s the institution was well on 2009. Program service revenue guard by the science center’s sud- its way to earning all of its revenue was $2.2 million, or just half of the den closure were its CEO and so that it would not have to rely on amount the center booked the board members. philanthropy to fund operations. year before. The rest of the public — this re- Both of those things made its On a more upbeat note, the form porter included — couldn’t have closure more perplexing. also shows net fund balances or as- seen the closure coming, given the To a certain extent, the economy sets of $22.5 million at the end of lack of current, available financial did have a bearing on the science last year, down from $25.3 million data on the center. center’s finances, just as it did on in 2009. But exactly what portion And it’s not an issue that’s those of other nonprofits. of those assets is restricted, if any, unique to the science center. But the clues were there to how isn’t clear. Nonprofits can get 11 months much the science center’s opera- Nonprofits say they don’t al- worth of extensions for filing tax tions relied on income from its ex- ways have the money needed for forms with the Internal Revenue Ser- hibit-building division, had the fi- an auditor or the staffing to get the vice. Unless a nonprofit makes au- nancials only been available to the forms filed in a timely manner. dited financials available to republic in a timely fashion. But in the interests of trans- porters and the public — which it Interim CEO John Miller — who parency and helping donors, fun- is not compelled to do — it can be is vice chair of the science center, ders and reporters check into the almost a full year before you can director of Michigan State financial health of nonprofits, the get an accurate sense of a nonprof- University’s executive MBA pro- IRS should reconsider the number it’s financial picture. gram and a 25-year product devel- of extensions it gives nonprofits Does it help a year later for opment veteran of Chrysler Group for filing tax forms, their pattern those served by the nonprofit, LLC — has said that he repeatedly of asking for extensions, its audit- donors and other funders to know asked for a clearer picture of fi- ing of those that don’t file on time that the organization had been nances that showed true cash flow and its accounting rules to make struggling a year earlier than they rather than nonprofit accounting. cash flow — tied to earned revenue knew? Regardless, there was recogni- and donations and grants — clear. Add to that accounting rules tion of issues on the part of at that require nonprofits to book do- least some of the board members Reporter Sherri Begin Welch’s nations and large grants in the who made personal loans, along blog about Southeast Michigan year they are committed, rather with Prihod, to keep the center op- nonprofits can be found at than when they come in, and the erating. www.crainsdetroit.com/welch 20111219-NEWS--0017-NAT-CCI-CD_-- 12/16/2011 5:26 PM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 17 Bloggers on the beat TALK ON THE WEB 2011

DUSTIN WALSH: Crain’s readers made plenty of This project would have been a comments on our stories disaster, a bottomless money pit. throughout the year, many of Tgg them quite insightful, others Price-fixing amusing. Here is a sampling: If we cannot manage to keep a baby rail system like the People Re: 5 questions with Andy Appleby Mover in operation, in the heart of and politics the region’s anchoring city, what Appleby is chairman and CEO of makes us think things like the M1 Automotive is the “Scooby Doo” General Sports and Entertainment light-rail project will be sustainable? of industry — stumbling into one LLC in Rochester, which in Janu- J.T. Pedersen sticky situation after another. Af- ary 2008 bought Derby County FC ter a near collapse, auto suppliers Ltd., an English professional soc- Re: Pure Michigan marketing shifted have found themselves smack dab cer team (and its 33,597-seat Pride in the middle of an ever-expanding Park Stadium) for $100 million. The Michigan Economic Devel- price-fixing Fans didn’t take well to American- opment Corp. and Michigan investigation. style marketing of the club. Strategic Fund gave a three-year, Clearly, au- You are no longer welcome at $5.63 million contract to handle thorities on Derby County Football Club. the Web, media, public relations three conti- Get out of our Club and digital marketing work for nents have a Pure Michigan to the Birming- ham office of Weber Shandwick, case: Furukawa Re: Crain on public broadcasting the sister agency of McCann Er- Electric Co. ickson, which has a $2.28 million and three ex- Can’t disagree more with Keith contract with the MEDC to do the ecutives Crain. Sorry, but access to educa- campaign’s creative work. pleaded guilty tional television without ads is impor- Pure Michigan is strictly state to the tune of tant to the well-being of our kids. And Dustin Walsh welfare for chamber of commerce $200 million. not everyone can afford cable. Anne Osmer types who would rather buy lob- Also, Livonia-based TRW Automotive byists and corrupt politicians in- Holdings Corp. spent $13 million on stead of paying their own adver- lawyers last quarter. That doesn’t Re: What happened to democracy? tising and promotions. It is time happen if everything is copasetic. Keith Crain’s column about for chamber of commerce mem- But does a case equal justice, or strong public protests against bers to pay for their own adver- is it just politics? government policies. tising, just as our Michigan busi- The investigation spilled across People in the streets? Well, of ness has done successfully for product lines including windshield course it’s not enough. But it’s over 25 years. wipers, tooling and safety systems. promising. Accommodator “As described in the information Frank Joyce filed in the Furukawa case, this was hardcore, pernicious price fixing Re: Lutz to help Durant campaign that can only mean inflated prices Re: ECD CEO resigns, An 80-year-old auto guy help- on the parts that are found on all of plans 20% cut in workforce ing a 62-year-old guy who looks 80 try to convince 20-somethings our cars,” Sharis Pozen, acting as- From a pure engineering to vote against a 57-year-old guy. sistant attorney general, told the standpoint, their technology is Just great. American Bar Association 2011 An- really cool — but if it can’t be sold troyresident titrust Fall Forum last month. for a profit, what good is it? However, the dozens of experts I Wayne chat with weekly are up in arms. Re: Ex-DPS exec gets five years Automotive is the most top-down industry on Earth. Automakers are Re: Newt Gingrich is not your friend for taking kickbacks kings and suppliers mere players in Reporter Nancy Kaffer’s blog Who knew that the risk manager their courts. Carmakers divvy up on Gingrich’s idea to create a tax- for DPS was one of the riskiest em- contracts on more than just price: free Detroit. ployees on the payroll? capabilities, manufacturing loca- There is no savior coming for John Galt tion, market share control, etc. Michigan or Detroit, we have to “Margins are razor thin. That grow our way out of this mess. Re: Mullin to return $200K severance leaves little profit for sharehold- DC Red Wing I would like to vote out of office ers,” equity analyst Richard Hilgert the idiot who would sign such a said. “Where they think that an- Re: Bridge bickering turns nasty contract. Turkia Mullin is not the titrust could be that (easy to hide) in one to be vilified. an industry like this is ridiculous.” The latest oxy-Moroun: “Cham- Robert Slattery The Department of Justice assumed pion fair competition — preserve my a 10 percent profit margin on Fu- monopoly.” rukawa’s wire harness business. normhy Re: Christmas tree; no Christmas fee The Voice of Anyone in the business can tell you This reader reacted to a story a 10 percent margin is nearly un- Re: Woodward light rail about how a USDA “checkoff” Michigan Business heard of. Margins in all Furukawa Our readers had plenty to say program to help boost the sales of divisions were below 3 percent, and throughout about mass trans- fresh Christmas trees dried up af- even negative, the past four years. portation and the leaders who ter conservatives called it a Christ- As Michigan’s leading statewide Margins at TRW — which at this mas tree tax. talked about it. business advocacy organization, time is being investigated, not in- Why is the government needed to Light rail needs to cross Eight dicted — were just over 8 percent promote Christmas tree consump- the Michigan Chamber of Mile Road and reach as many people last year and negative the two pre- tion? I’ve got a bunch of valentines as possible in order to be econom- Commerce is on the job every day, vious years. I need to sell. Who do I go see ically sustainable. So to what end are prices being about that? Where’s a Federal Reg- standing up for businesses of all WolfCat fixed? Justice is expected to bring ister when you want one? sizes and types in the legislative, down more charges by year’s end as Freedom Trinity I sure hope L. Brooks Patter- the government continues its quest political and legal process. son and Mark Hackel were there to destroy players in an industry it Business Advocacy (at a meeting where mass transit Re: Vandenberg’s story still relevant spent billions to save only a few Political Action was discussed). We need to start This responded to a column Join the Michigan Chamber of years ago. Member Services acting as a region. about how Sen. Arthur Vanden- I’ll leave this to Groucho Marx: Commerce. Call (517) 371-2100 313 berg, a Grand Rapids native, “Politics is the art of looking for worked the art of compromise. trouble, finding it everywhere, di- or visit www.michamber.com Light rail is a best practice of big Yes, the genius of bipartisan- agnosing it incorrectly, and apply- cities across the U.S. and the ship. It is not the compromise ing the wrong remedies.” world. We cannot compete with that is the problem, but crafting Ruh-roh. them in any meaningful way it in such a way that everyone is Leading Businesses. Moving Michigan Forward. Reporter Dustin Walsh’s blog on without it. equally disappointed. I wonder Local: (517) 371-2100, Toll Free (800) 748-0266 auto suppliers, steel, higher ed and Grand Circus Park what ever happened to that no- www.michamber.com Livingston and Washtenaw coun- tion, the idea that compromising ties can be found at www. Finally, a little bit of common for a collective good is not a sin. crainsdetroit.com/walsh sense from our elected officials. Timothy Dinan 20111219-NEWS--0018-NAT-CCI-CD_-- 12/16/2011 5:13 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS December 19, 2011 Doc-appointment website targets Detroit, seeks sales associates

BY JAY GREENE filter them by the insurance you time, ZocDoc hooks up people na- CRAIN’S DETROIT BUSINESS have and click on one of the ap- tionally with doctors in more than pointment times,” Massoumi said. 40 medical specialties. It is used by The business plan for ZocDoc is ZocDoc’s sales force will make more than 700,000 patients each simple: Charge doctors $250 per visits to physician offices in early month, the company said. month, offer people a website 2012 to sell subscriptions of $250 Massoumi said ZocDoc also can where they can make an online per physician per month to partici- help reduce inappropriate hospital medical appointment with one of pate in the network. Initially, the emergency department utilization. the doctors under contract and ex- company will target small prac- “Instead of waiting two or three pand to as many cities as possible. tices. Later it will recruit physi- days for an appointment, people Right now in Detroit, the compa- cian organizations and employed can make an appointment and ny’s 13th city, Cyrus Massoumi, Zoc- medical groups, Massoumi said. avoid an ER visit,” he said. Doc’s co-founder and CEO, said he is “The goal is to get all physicians Massoumi also said ZocDoc looking to hire up to 10 sales associ- in Detroit on the service,” he said. works with some health insurance ates who will be responsible for re- “We have other services that help companies to help them book ap- cruiting doctors into the service. physicians build their practice.” pointments for clients. Sometime during the next three For example, ZocDoc sends out “Insurers get calls from patients months ZocDoc will go live with its appointment reminders for people saying they can’t get an appoint- website to offer patients same-day registered with the service and ment with any doctors on their appointments with primary care preventive care suggestions that list,” Massoumi said. “The insur- physicians. The initial specialties can potentially generate addition- ance company uses us to help out will include internists, family al appointments, Massoumi said. their clients.” practitioners, dermatologists, ob- “We integrate our system with Andy Hetzel, vice president of stetricians and gynecologists. their scheduling or electronic corporate communications for “Nationwide, there is a huge medical record system,” Massou- Blue Cross Blue Shield of Michigan, need to increase health care ac- mi said. “We work with all major said the state’s biggest health in- cess. Studies have shown it takes information systems.” surer maintains a website with a an average of 20 days to get a new Newman said the $250 monthly physician finder. physician ap- charge is rather steep as most “It is the most popular part of pointment (if physicians are trying to reduce of- our website,” Hetzel said. “We you don’t al- fice overhead costs as government don’t offer appointments.” ready have a and private payers continue to un- In August, ZocDoc received primary care derfund health care. $75 million in venture capital doctor),” Mas- “The charge has more of a pecu- funding from Goldman Sachs and soumi said. niary interest rather than actual DST Global, which also has invested Steven New- assistance with appropriate bene- in Facebook, Twitter and Groupon, man, M.D., pres- ficial physician-patient relation- said ZocDoc officials. Past in- ident of the ships,” Newman said. vestors have included Jeff Bezos, Michigan State Massoumi said ZocDoc can also founder of Amazon.com, and Marc Medical Society, Newman help physicians reduce systemic Benioff, founder of Salesforce. said physician wait times are problems of patients breaking Total investment in ZocDoc has much less in Southeast Michigan, their appointments, which can ac- reached $95 million since its maybe 10 to 14 days, unless there is count for more than 10 percent of a founding in 2007, company offi- an emergency. doctor’s daily schedule. cials said. “Doctors keep one or two open “We can help physicians keep ZocDoc, which employs more appointments each day” for walk- their schedule full,” Massoumi than 200 and has doubled its work- ins, said Newman, adding that the said. “We haven’t done a formal force the past year, declined to re- ZocDoc model provides conve- utilization study, but with a sys- nience for patients and improves tem like ours we can increase uti- veal annual revenue figures. timely access to physicians. lization by 10 percent.” However, Allison Braley, Zoc- “It reflects what we see going on Newman said broken appoint- Doc’s director of public relations, in medicine with younger people ments can range from 20 percent to said some of the company’s early using much more technology,” he 30 percent for some physicians. entry markets, including New said. “I speak to physicians around York, are profitable. Other mar- Formed four years ago in New the state and the ‘don’t show’ rates kets include Washington D.C., San York City, ZocDoc chose Detroit are very high. Part of the reason is Francisco, Chicago, Dallas, Los based on the number of requests it transportation problems, especial- Angeles and Boston. has received from residents, Mas- ly for people on Medicaid,” he said. Job candidates should submit soumi said. “Lots of doctors and dentists place resumes to [email protected] or “From a consumer standpoint, it reminder calls for patients or hire visit www.zocdoc.com/careers. Professional Jet Management is free to use. All you need to do is companies to do that.” Jay Greene: (313) 446-0325, go to the website, tell us where you With more than 5.3 million [email protected]. Twitter: need to look for a doctor, what kind, available appointments at any one @jaybgreene Talmer acquires Wisconsin banking group

BY TOM HENDERSON Collins is on Talmer’s board and our team.” CRAIN’S DETROIT BUSINESS is vice chairman in charge of retail Talmer has bought the assets of banking, wealth management, ad- a handful of banks in Michigan Experience the difference. Troy-based Talmer Bancorp Inc. is ministration and marketing. and Wisconsin after they were expected to announce today that it McLean is president of Talmer’s shut down by regulators at the Fed- All inclusive management at an affordable ﬁ xed cost. has acquired Sheboygan, Wis.- Wisconsin region. eral Deposit Insurance Corp., includ- based Lake Shore Wisconsin Corp. The two are former colleagues of ing Madison Heights-based Peoples and its $26 million in capital in ex- •Forming partnerships now David Provost, Talmer’s president State Bank and Mt. Clemens-based change for stock. and CEO, at the PrivateBancorp Inc. Community Central Bank earlier this •Small, midsize and large cabin jets Lake Shore was founded in 2006 of Chicago. year. •Reduce your total operating cost to buy the assets of distressed “This is a two-pronged opportu- As part of this transaction, Lake •Maximize your aircraft efﬁ ciency banks, a strategy that has fueled nity,” said Provost. “One, we Shore spun off its wholly owned Talmer’s rapid growth the past while enhancing your aircraft raised another $26 million in capi- subsidiary, Hager City, Wis.-based www.skywayavjets.comwww skywayavjets com two years. Two of Lake Shores’ tal, which helps us pursue or strat- Hiawatha Bancshares Inc. to its appearance, performance & value founding principals, Gary Collins egy of buying banks, both FDIC-as- shareholders. and Hugh McLean, have taken sisted transactions and open Tom Henderson: (313) 446-0337, Call today for more information, Geoff Sherman 1.248.568.0979 management positions with transactions. And we added two [email protected]. Twitter: Talmer. great veteran Midwest bankers to @tomhenderson2 20111219-NEWS--0019-NAT-CCI-CD_-- 12/16/2011 5:12 PM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 19 Area banks Cuts not likely to give Detroit enough cash BY NANCY KAFFER first under former Mayor Coleman Layoffs don’t result in immedi- Bing’s communications team CRAIN’S DETROIT BUSINESS A. Young and then under former ate savings, he said. Each union didn’t provide by press time an es- lag nation Mayor Dennis Archer. contract likely contains different timate of the benefits payout that A thousand layoffs in February, “When you’re talking about provisions that govern how long the February layoffs cost. cuts to vendors, changes to union changing health care percentages after layoff notices are issued The city doesn’t have to hit zero benefits — all proposed by Detroit and pensions to a defined contri- workers will still be paid. And to hit the crisis, Daddow said. in recovery Mayor Dave Bing to avert the bution plan and so forth, those even then, there’s a price tag. “You can’t get there unless the city’s coming cash crisis, and all, things will be of great help” in ad- “I’m sure that in 30 days you can city is knowingly releasing checks BY TOM HENDERSON critics say, unlikely to do the job. dressing the city’s long-term over- get people off the payroll,” he said. without the cash to back them,” he CRAIN’S DETROIT BUSINESS If it follows the statutory time- spending. The Detroit City Coun- “One of the problems with that is wrote. “Folks go to jail for this — line, a state review of the city’s fi- cil’s top financial analyst says that that as workers are thrown off the it’s called ‘passing a bad check.’ Metro Detroit banks continue to nances could result in the appoint- for the past three years, the city payroll, they get to collect accumu- When the book cash gets down to recover from the recession at a ment of an emergency financial has spent $100 million more each lated benefits like vacation and the $40 million range or so, the real- slower pace than their national manager by March, but it’s un- year than it’s taken in. sick time. … You can’t just look at ity of timing differences between counterparts, according to the lat- clear whether even an emergency But, Rago said, “in the old days, a guy’s salary and say, ‘OK, I’m go- book and bank will take hold.” est quarterly rankings by Bauer- manager, who could break union when we had to save money, we ing to start saving this on Friday.’ Nancy Kaffer: (313) 446-0412, Financial Inc., a Fort Lauderdale, contracts, could make cuts deep did layoffs. That’s what did it, but You have to pay off a chunk of cash [email protected]. Twitter: Fla.-based ratings service. and fast enough to stop the city it was ugly.” as he goes out the door.” @nancykaffer Nationally, more than 42 percent from running out of cash in April, of banks got the top rating of five as predicted by an Ernst & Young re- stars, the highest percentage in port. four years. And more than 63 per- “My best guess, given the recent MARKET cent got either five or four stars. article of the vendors now being REAL ESTATE Of 25 banks in Southeast Michi- worked hard to save cash, is the gan, only 24 percent got five stars city runs out of cash sooner than PLACE and 40 percent got five or four stars. later,” Oakland County Deputy AUCTIONS INDUSTRIAL PROPERTY Nationally, less than 11 percent Executive BUSINESSES FOR SALE of banks got two stars or fewer. In Robert Daddow PUBLIC AUCTION AVAILABLE NOW Southeast Michigan, that figure said by email. For sale: Residential maid/cleaning service in International Automotive Components Taylor/Romulus Area — 4,000 to 80,000 sq. ft. NW surburbs. Turn-key. Priced to sell. Not a was 28 percent. “When these franchise. 248-909-2880 or 248-417-4052. Ideal for logistics company, The ratings are based on an types of matters 200 Industrial Avenue INVESTMENT OPPORTUNITIES analysis of quarterly reports for unbundle, they Pioneer, OH 443554 manufacturing or warehousing. the period ending Sept. 30 that do so very fast. & Yvon Rea 734-946-8730 INVESTMENT OPPORTUNITY banks filed with the U.S. Federal De- Just given the 555 W. Linfoot Street Established publisher since 1992 posit Insurance Corp. sizable deficits Wauseon, OH 43567 seeking investors for expansion of A sixth local bank, Huron Valley quoted in the WEDNESDAY, DECEMBER 21 @ 10 AM EST print and online directories serving the State Bank, joined the ranks of media of recent, Call Us For Personalized Preview: Tues, Dec 20, 9AM-4PM EST growing senior population market. those getting the highest rating. Daddow it is highly like- By Appointment Only Service: (313) 446-6068 [email protected] The other five top-rated banks ly that the point where cash can remained the same: Ann Arbor State no longer cover payrolls would be FEATURED ITEMS CLOSING TIMES: Monday 3 p.m., BUSINESS OPPORTUNITIES Bank, Troy-based Crestmark Bank, circa February, no later.” • Large Quantities of Scrap one week prior to publication date. Please call us for holiday closing times. Farmington Hills-based Level One Detroit City Council President Pro • Complete Robotic Production Lines -- Partner Wanted -- Bank, Novi-based Lotus Bank and Tem Gary Brown said the first • Motors, Blowers, Gear Boxes & Pumps FAX: (313) 446-1757 Troy-based Talmer Bank and Trust. question is, how accurate is the • Machine Tools: Presses, Mills, and More • Ovens E-MAIL: [email protected] The local banks getting zero stars Ernst & Young report? Reports that • Electrical: Transformers & Busway INTERNET: remained unchanged from the pre- the city isn’t paying its vendors www.crainsdetroit.com/section/classifieds vious quarter: Dearborn-based Fi- have made him question the accu- Auction Managed & Conducted By : Confidential Reply Boxes Available delity Bank, First National Bank in How- racy of any financial forecasting. Stuart B. Millner & Associates ell, Ann Arbor-based Michigan “The reason we’re making pay- 102 E. Springfield Avenue PAYMENT: All classified ads must be Commerce Bank and Oxford Bank. roll is we’re not paying our bills,” Union, MO 63084 prepaid. Checks, money order or Partner wanted for nine place prop jet But there is some good news at he said. “When those bills are not Toll Free: 866-842-5280 Crain’s credit approval accepted. based at Detroit City Airport. 400+ Credit cards accepted. the bottom. Two of those four made entered into our system, even Ernst mph, 2,000 mi range, 41,000 ceiling. Visit: www.sbmac.com for complete details of Detroit-West Palm Beach 2:45/Detroit- money in the quarter, with Oxford & Young can’t judge. So you’re in this auction. See this triage mode. It’s difficult to New York 1:20. reporting net income of $2.8 million Company Auctioneering License #200300467 Crainsdetroit.com/Section/Classifieds and Fidelity net income of $1.5 mil- come up with a date when we’re go- Auctioneer License #2003000465 for more classified advertisements Contact Charles Chase (313) 610-4120 lion, compared to the net loss of ing to run out of cash. Ernst & $427,000 by First National and the Young says April, but you can’t $19.2 million in net losses by Michi- come up with a date because of bills gan Commerce Bank. in the hopper, so to speak.” Here are ratings for other Michi- There’s another problem: Ernst gan banks: & Young’s report doesn’t seem to JOB FRONT Ⅲ Four stars: Dearborn-based take into account $24 million in revenue Bing proposed to bring in Auto Club Trust FSB, the Bank of Ann SALES POSITIONS AVAILABLE Arbor and the Bank of Birmingham. by raising taxes on the city’s three Ⅲ Three and a half stars: Dearborn casinos. Though state Rep. Rashi- Advertising Sales da Tlaib introduced a bill to in- Federal Savings Bank, St. Clair Are you a passionate conservative thinker Shores-based First State Bank. crease taxes, it hasn’t moved who believes it is our duty to inform and Ⅲ through the Legislature. Bing’s engage in the critical issues affecting our Three stars: Citizens Bank of country and communities? Do you believe Flint, First Independence Bank of De- budget relies on the casino tax that 2012 will be the year of political ! troit, Flagstar Bank of Troy, Main revenue as of Jan. 1, 2012. change? Can you sell the tremendous value of being in an environment of Street Bank of Bingham Farms, Ster- “It’s hard to say exactly what engaged listeners of genuine conservative ling Bank and Trust of Southfield, Uni- that date (that cuts must take ef- talk radio to potential advertisers? Then fect) is. Anybody can throw that WXYT-AM Detroit’s new Talk Radio 1270 is versity Bank of Ann Arbor and Unit- looking for you to be a part of our sales i ed Bank and Trust of Ann Arbor. number out, but unfortunately, team! We are looking for experienced sales Ⅲ Two stars: Farmington Hills- we really don’t know,” said coun- professionals who can sell advertising /marketing campaigns to new clients. based Bank of Michigan, Chelsea State cil member James Tate. In part, h Responsibilities include soliciting new R Bank and Monroe Bank and Trust. he said, that’s because the cash business, identifying clients’ needs and developing/presenting customized solutions candidatest fast??? Of the 131 banks statewide, 25 flow fluctuates based on the city’s to meet them, and managing all facets of (19.1 percent ) got five stars. There financial commitments. their business experience with WXYT-AM. g Visit crainsdetroit.com/jobfront was only one other zero-star bank Still, he said, “I’m being told Please apply at www.cbsradio.com. CBS Radio is an Equal Opportunity in the state, Community Shores Bank that by February we have to have Employer and Affirmative Action Employer. of Muskegon. whatever plan well into effect.” BauerFinancial evaluates capital- Then there’s the question of to-debt ratios, delinquent loans and when the savings from cuts will write-offs, liquidity, repossessed as- materialize. sets, community reinvestment rat- Tate says he’s hopeful that the Call or email today for information !! ings and market versus book value. unions will ratify new contracts on a custom advertising plan! CRAIN’s JOB FRONT Some bankers say the ratings are before Christmas. POWERED BY superficial and don’t always accu- “Many of the cuts the city’s dis- rately reflect a bank’s health. cussing right now probably won’t [email protected] Tom Henderson: (313) 446-0337, have a major impact on immedi- [email protected]. Twitter: ate cash flow,” said Edward Rago, 313.446.6068 @tomhenderson2 who served as budget director 20111219-NEWS--0020-NAT-CCI-CD_-- 12/16/2011 5:13 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS December 19, 2011 New CEO expects an exciting ride at Lycera Lycera Corp., a spinoff Jersey-based drug giant you to look at.’ Because I’d done money. I know that the money was master switch for different forms from the University of Merck & Co. Inc. that the due diligence on the science, contingent on hitting milestones and of immune-related diseases. It’s a Michigan that is develop- would pay Lycera an up- already, obviously I was very in- that at least two tranches of money pathway with a lot of preclinical ing drugs to fight such au- front fee of $12 million terested. came in since the deal was an- validation … Merck will do clini- toimmune diseases as lu- and up to a total of $295 nounced. Do you still have dry powder cal development. This is in pre- pus, rheumatoid arthritis million in milestone pay- When you were head of basic re- left from that round? And will you need clinical development now, with a and psoriasis, first made ments if research went as search, you had 3,000 people under to be going back to your investors for joint team. Merck pays for seven big headlines in April hoped. you. Now you’re at a tiny university a B round? We’ve still got one full-time equivalents, which 2009 when it announced it In June, Lycera moved spinoff. Why take the leap? There tranche of the Series A round left. amounts to about $300,000 per per- had closed on a Series A from the Michigan Life Sci- were several attractions for me. The upfront money from Merck al- son per year, including equipment round of venture capital ence and Innovation Center One was the therapeutic area. Al- lowed us to hold off on using that, and supplies. It also funds seven investment of $36 million. incubator in Plymouth though I had been head of Merck so we won’t need to raise any mon- FTEs the second year and five That number was eye- Township to the UM basic research, my specialty is in ey for a while. What I want to do is FTEs the third year. catching in and of itself, North Campus Research immune responses and inflamma- build a sustainable drug company, being one of the largest in- Kathleen Metters, Complex at the former tion, which is what Lycera special- and that is extremely difficult in Has Lycera been adding jobs, and is vestment rounds in state Lycera Corp. Pfizer Inc. campus in Ann izes in. This has always been a pas- any economic climate, particular- it looking to hire now? We’ve got 25 history. But what made it Arbor. In October, it an- sion for me and is an area with a ly this one. I’ll need to raise both employees. We hired about 10 em- particularly newsworthy nounced the hiring of lot of unmet needs. There are 80 to dilutive and nondilutive money. ployees this year, and we have a was the timing: It came when capi- Kathleen Metters, Merck’s former 120 small and medium-size dis- The dilutive includes money from few selective positions open for tal markets had shut down world- head of worldwide basic research eases that fall into the autoim- Merck, from grants, from partner- 2012. I’m currently recruiting a wide, frozen by the recession and and a holder of 29 patents, as its mune bracket for which there cur- ships. But I don’t have a complete chief medical officer, which will fears of another Great Depression. president and CEO. rently is no treatment. strategy just two months in. probably mean opening an office Adding to the buzz was the qual- Metters talked with Crain’s re- Rheumatoid arthritis is a big mar- in Boston. That’s the biotech capi- ity of the brand name VCs that had porter Tom Henderson about her ket, but there are smaller niche Where are you at in terms of drug tal of the world, and quite frankly joined the round: InterWest Partners plans for the company, whether it and orphan markets, too. development? We’re working with it’s going to be hard to get the can- LLC, a Menlo Park, Calif., firm with will need to raise more venture It was attractive because I was several molecules from several didate we want to move to Ann Ar- $2.8 billion under management; capital and her expansion plans going to be working with very chemical classes and going bor. The thought is, ‘If something Arch Venture Partners, a Chicago- for a Boston office. good, experienced researchers. through safety and efficacy tests in happens to Lycera, what other job based firm with almost $1.5 billion; There are a lot of ex-Pfizer re- animals. We’ve identified some can I find there?’ In Boston, they and Clarus Ventures, a Cambridge- How did you come to join Lycera? searchers here. We have very that are very effective in autoim- can always find another job. I Mass.-based firm with $1.2 billion. Was it a result of the development strong chemists. I’m a biochemist. mune diseases, including arthri- haven’t been in pharma for 23 Lycera, founded by Gary Glick, deal announced in March? No. I was And then there was the opportuni- tis. The preferred option to getting years without knowing it’s one of a professor of organic chemistry at headhunted. It’s interesting. I ne- ty to move into being a CEO. I’ve them to market is to license them the riskiest businesses on the plan- UM, had come a long way since gotiated the Merck deal before I never raised money or been in- to Big Pharma. Big Pharma et. But at the end of the day, this is getting a small amount of seed cap- left. I presented the scientific ratio- volved in the venture capital prefers some clinical data, and as all about people. We have great ital from Ann Arbor-based EDF nale for doing the deal. But that world, so that will be interesting. we add that, that’s where you get people, and it’s going to be an ex- Ventures in 2006. had nothing to do with taking this maximum value. citing ride. In March, Lycera made more job. I was headhunted later. I got Lycera stunned folks locally when it Tom Henderson: (313) 446-0337, headlines when it announced a re- this offer. They said, ‘We’ve got closed on that $36 million VC round Tell me a little about the Merck [email protected]. Twitter: search collaboration with New this interesting opportunity for when no one in the world was raising deal. The target is a molecular @tomhenderson2 Michigan companies to help build community near Baghdad

MICHELLE MUÑOZ by the Prima Civitas Foundation to & Smith Group Inc. of Detroit; Capital alumnus. He asked MSU and Pri- McRae said the group is now SPECIAL TO CRAIN’S DETROIT BUSINESS pursue this and other export op- Strategies Group of Birmingham; ma Civitas to create a proposal looking for more companies to portunities. Now it is leading the C2AE International LLC of Lansing; that could address the housing take part, a process it hopes to Michigan companies are on tap search for Michigan companies to and The Archinomics Group of Win- shortages facing Iraq, McRae said. complete within 90 days. to help build a city within a city of continue with the project, said Pri- netka, Ill. The project is a planned 15- to 20- “It’s such a wide spectrum of sorts in Iraq. ma Civitas’ director of interna- “A lot of management services square-mile community including need, we’ll have to reach into a wide Firms in the state stand to bene- tional programs, Patrick McRae. would be provided by Michigan schools, housing, commercial, and deep supplier pool,” McRae fit from a planned $5.5 billion ur- Prima Civitas is a nonprofit or- firms,” McRae said. “I think the recreational and civic compo- said. “We’re in the process of select- ban development outside Baghdad ganization founded by Michigan reasonable export potential for nents. If fully realized, the commu- ing the captains of our team who after signing a memorandum of State University to advance state Michigan goods and services is in nity would have about 100,000 will in turn select their players.” understanding with the National In- economic opportunities. that $1.5 billion range.” housing units. The scope of the project will re- vestment Commission of Iraq. Mich Development consists of 20 McRae said the Iraq deal was set McRae said that the full plan quire major companies to move Mich Development, a consortium companies with expertise in archi- in motion about eight months ago would take about seven to 10 years. forward. Not all of the services of Michigan companies and com- tecture, engineering, construction during a visit to Lansing by Sami The first phase — about 600 to 1,000 needed can be provided by Michi- panies that have worked exten- and finance. Members include Al- Al-Araji, the chairman of the in- housing units — would take six to gan companies, McRae said, but sively in the state, was organized bert Kahn Associates Inc. and Mannik vestment commission and an MSU 12 months. there is plenty of opportunity. Area defense contractors get year-end boost Congress passed a 2012 defense ize 1,362 other Humvees. The bill also authorizes bill last week that authorizes more The bill adds more than $449.4 million for development of than $6 billion toward programs $255 million to a previous alloca- the Ground Combat Vehicle, a that benefit Southeast Michigan tion for the M1 Abrams tank pro- next-generation replacement of defense contractors. gram, which would allow Sterling the Bradley Fighting Vehicle. The The House voted 283-136 on Heights-based General Dynamics Ground Combat Vehicle already is Wednesday and the Senate voted 86- Land Systems to continue produc- in development through industry 13 on Tuesday to approve the Na- tion work at its tank manufactur- teams led by GDLS and BAE. tional Defense Authorization Act ing center in Lima, Ohio, to the General Dynamics and BAE are for the 2012 fiscal year. The bill as end of 2013 or early 2014. That expected to take part in bids on the modified last week now goes to Pres- work was expected to halt in June next development contracts for the ident Barack Obama, who has said 2013 for at least three years under JLTV vehicle in early 2012, along he will sign it in its current form. an Army budget proposal. The con- with possible rival bids from The bill authorizes $154 million ference report also preserves teams that include Oshkosh Defense this fiscal year to fund the Joint about $658.4 million in funding for or Navistar Defense. Light Tactical Vehicle program, to the Stryker, a mainstay vehicle for Funding for the Mine Resistant develop and manufacture more General Dynamics Land Systems, Ambush Protected vehicle — a line than 50,000 next-generation vehi- and about $36.2 million of the $53.3 item that includes both mainte- cles to replace some of the U.S. million funding originally request- nance on conventional MRAPs Army and Marine Corps’ aging fleet ed for the Armored Multi-Purpose and production on the MRAP All- of military Humvees. But it also Vehicle, a program BAE Systems Terrain Vehicle or M-ATV — is largely defunds a separate mili- Inc. is pursuing through its Michi- now $2.6 billion. tary program to refit and modern- gan operations. — Chad Halcom 20111219-NEWS--0021-NAT-CCI-CD_-- 12/16/2011 6:12 PM Page 1

December 19, 2011 CRAIN’S DETROIT BUSINESS Page 21 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF DEC. 10-16

hance the work facilities. imbursement contract with shop is filled with tools and These are older buildings Mullin meeting Blue Cross Blue Shield of machines to help would-be (built in 1924 and last reno- Michigan similar to what entrepreneurs turn their Robot mascot vated in 1978) that don’t have the Blues tried to negotiate ideas into manufactured areas that are conducive to violated state with Beaumont Health Sys- goods. creativity,” Hetzel said. tem. The addendum in- Ⅲ The edgy Aloft hotel “We want to attract people rules, judge says cludes the possibility of ad- brand will put its name on (Cobotron) on who are looking for a great ditional bonus incentive the historic David Whitney place and a fun place to ayne County Cir- payments for meeting qual- Building in Detroit as part of work. A lot of companies are cuit Judge Robert ity, process and adminis- its renovation. It will mark considering space amenities W Colombo has ruled trative targets. the first appearance in the like that.” that Detroit Metropolitan Air- Detroit area for Aloft, a di- guard at Cobo Other features of the first port officials violated LANSING NEWS vision of White Plains, floor include a video confer- Michigan’s Open Meetings N.Y.-based Starwood Hotels ook out Detroit. Trieste was named to this ence room with two 60-inch Ⅲ & Resorts Worldwide Inc. Act during the hiring of for- Gov. Rick Snyder signed Ⅲ Cobotron is here. year’s class of Crain’s 20 in LCD displays and Cisco mer airport CEO Turkia into law a bill package cre- The Suburban Mobility L This happy robot their 20s. These days, he’s videoconferencing equip- Awada Mullin. ating the new Michigan Busi- Authority for Regional Trans- activist, sporting a hard ensconced in Dan Gilbert’s ment, and a “Think Tank” A lawsuit is expected to ness Development Program portation has eliminated 15 hat, tool belt and tires for rehabbed Madison Theatre area with two 52-inch LCD be filed this week seeking and Michigan Community Re- routes and won’t run buses shoulders, will be on Building in downtown De- displays connected to com- to set aside Mullin’s con- vitalization Program to re- in Detroit outside of rush guard at Cobo troit. Triest put together a puters and video conferenc- hours, AP reported. tract and a contract award- place Michigan’s expiring Ⅲ Center in the funny video of his own, ing technology. ed to Jack Krasula, head of tax credits for the Michigan The Detroit Transporta- coming moon-walking and rap- A coffee bar also will have the search firm Trustinus Economic Growth Authority tion Corp. will use an escrow years as the ping a message to Un- a 40-inch LCD display with a LLC, which brought in program, historic preserva- fund established in 1989 for $299 mil- drip’s founders, satellite receiver and nearby Mullin as a candidate to the tion and brownfields. long-term guideway main- lion ex- co-starring interi- will be a WiFi lounge with a authority board’s search Ⅲ Snyder told Crain’s in tenance to keep the People pansion or and rooftop variety of computers and committee. an interview that he will Mover operating until at work gets un- views of the Madi- other related equipment. continue to look at changes least June 2013. der way. son building, online at Hetzel said the final de- to the state’s personal prop- Ⅲ Documents say federal In a search www.ludlow sign of the Collaboration ON THE MOVE erty tax next year and he authorities last month for a “mas- ventures.com/flow. Center hasn’t been approved Ⅲ sees eliminating the indus- seized almost $500,000 from cot” to be He got lots of re- and is subject to funding lim- Dan Lijana has resigned accounts tied to the investi- as Detroit Mayor Dave trial property portion of the part of the sponse, too, includ- itations. tax as his highest priority. gation of contractor Bobby sign cam- ing write-ups in The Blue Cross also is renovat- Bing’s communications Ferguson as part of their in- manager to take a position He also said he’ll meet with paign apolo- Washington Post, New ing 600 Tower of the Renais- municipalities to discuss vestigation into Detroit gizing for the con- York Times and on sance Center with plans to at the Washington, D.C.- corruption, AP reported. based political consulting the impact of the tax struction-related messes in TechCrunch.com, a website move more employees in changes. Ferguson is an associate of the facility, a $1,200 scholar- devoted to deal making. during early 2012. firm Dewey Square Group. Ⅲ former Detroit Mayor Ⅲ The board of directors The Legislature passed ship was offered to students Ludlow’s message, in several bills this past week: Kwame Kilpatrick. to come up with a design. part: of Detroit-based Giffels-Web- Ⅲ Detroit’s three au- Wayne State makes ster Engineers Inc. has elect- a package aimed at stabiliz- Bethany Radloff, a junior “And we hear ya loud and ing the state’s unemploy- tomakers and the UAW will at the College for Creative clear. ed Scott Clein president and jointly commit $100,000 to team-owner big leagues CEO, succeeding Loren Cran- ment benefits fund, includ- Studies, came up with the Ya need an angel we got ing a bill that could make it become the presenting winning design for them wings. File this in the “didja’ dell, who remains a part- sponsor of the annual Little know?” department for ner. Clein had been execu- tougher for some to get and Cobotron. Like our skulls full of Red keep jobless benefits; a bill Caesars Pizza Bowl college sports trivia: tive vice president. Cobo’s general manager, Bull on private planes. that will allow more char- football game Dec. 27 at Wayne State University has Thom Connors, said the mas- Let’s fly hands up to the ter schools in the state; and Ford Field. Detroit-based Lit- produced three current U.S. cot is a way to put a friendly sky like we scored a goal. a short-term plan to pro- tle Caesar Enterprises Inc. pro sports team owners, ty- COMPANY NEWS face on the four-year con- “With a hockey stick provide $58 million in heating and its franchisees remain ing it with the likes of Yale, Ⅲ struction process and in- jection of Gretzky propor- Detroit Manufacturing assistance this winter to the title sponsor. Dartmouth, NYU, Penn and Ari- form the public. tions.” Systems LLC, a new auto low-income utility cus- Ⅲ John Hoose and his zona for the fourth-most of Triest and Undrip have parts supplier being tomers. brother Scott, both of Hart- since talked about maybe any American university. formed by Andra Rush, CEO land, were sentenced to 18 Why do the elevator pitch doing a deal, something The breakdown comes of Wayne-based Rush Truck- months and 12 months in when you can moonwalk? Triest does a lot better than from The Wall Street Journal ing Inc., has found a home at OTHER NEWS custody, respectively, for rapping. In November, he and reflects undergrad and Gateway Industrial Center on Ⅲ Detroit has delayed their roles in a mortgage Eminem he ain’t. A mar- closed on his 16th invest- graduate alumni who own Southfield Road in Detroit fraud scheme while em- paying some of its vendors keter, Jonathon Triest is. ment, four of them locally. the 122 franchises that make as it awaits approval for ployed at the Brighton of- and contractors to fund So he up the four major leagues. Michigan Economic Growth fice of Shore Mortgage. tried rap- payroll, AP reported. May- Harvard leads the pack Authority tax credits. Rush Ⅲ Wayne State University ping. or Dave Bing’s office ac- Blue Cross adds high-tech with seven, followed by had sought space at Ameri- President Allan Gilmour is A San knowledged that it’s delay- Georgetown with six. can Axle & Manufacturing proposing that some appli- Francisco creative space to campus ing some payments but said Michigan, Columbia and Holdings Inc.’s Detroit plant, cants pass an eight-week startup Blue Cross Blue Shield of the intention is to fully UCLA are tied for third most but a deal was not reached. summer program before be- named Un- Michigan plans a new cre- Ⅲ compensate everyone. with four each. Auburn Hills-based En- coming a full-fledged stu- drip has ative space for workers to ergy Conversion Devices Inc. Ⅲ The slide in residen- WSU has produced Dan dent. Gilmour, who wants been look- take a break for fun or con- said it has begun negotia- tial home sales that started Gilbert (Cleveland Cavaliers), to raise admission stan- ing for ven- duct a video conference. Peter Karmanos Jr. (Carolina tions with holders of its se- in August continued into Triest dards at WSU, said some ture capital Renovations at the Jeffer- Hurricanes) and Stephen Ross nior convertible notes, due November, although sales freshmen would be re- to help it commercialize a son Street Detroit campus (Miami Dolphins). in 2013, and will delay in- increased year over year, quired to have a minimum service to better filter social of Blue Cross will include a The school would have terest payments on those according to data from 2.0 grade point average in a networking streams. A snazzy 6,209-square-foot au- been tied for third, but for- notes already due. The Farmington Hills-based Re- summer program before be- startup in the social net- diovisual room complete mer Detroit Pistons owner company has seen revenue alcomp II Ltd. for Livingston, ing accepted for the fall. working space looking for with three Sharp video dis- and WSU alum Bill Davidson shrink dramatically and Macomb, Oakland and Ⅲ Eastern Michigan Uni- funding? That’s a dog-chas- plays connected to three died in 2009. losses grow since the reces- Wayne counties. In Novem- es-squirrel story. Xbox Kinect gaming sion hit. ber, there were 4,094 resi- versity has raised $51.9 mil- In need of a marketing systems. Ⅲ Detroit Receiving dential sales, down from lion, exceeding a year and tool to make it stand out Andy Hetzel, the Blues’ Wave goodbye to Hospital, St. Joseph Mercy Oak- 4,176 in October and up a half ahead of schedule from all those pitching for vice president of corporate Metro Beach name land in Pontiac and the Uni- from 3,876 in November the $50 million goal it set cash, Undrip created a fun- communications, said the versity of Michigan Health Sys- 2010. The median sale price for its first-ever capital ny hip-hop video pleading gaming room is part of a After 58 years with the tem in Ann Arbor were of $70,000 was unchanged campaign. its case. It got big play in the 17,000-square-foot renova- same name, Metro Beach named by The Leapfrog Group from October, up from VC world, including mention on the first floor called Metropark will be renamed as among the top hospitals $67,000 from 2010. tions in The New York Times the Collaboration Center the Lake St. Clair in Michigan. The two others Ⅲ TechShop Inc., a for- OBITUARIES and Forbes, and caught the that is intended to provide Metropark. So now it’s more are in Grand Rapids: Blod- profit, do-it-yourself fabri- Ⅲ Bill McLaughlin, former eyes and ears of Triest, co- an outlet to appeal to clear what’s to be found at gett Hospital and Butterworth cation studio founded in chairman of the Michigan founder of Ludlow Ventures younger IT and other work- the end of Metro Parkway. Hospital. Menlo Park, Calif., is Republican Party and the LLC, a seed-stage VC firm ers in the building at 441 E. The name change was ap- Ⅲ Warren-based St. John scheduled to open Dec. 27 at longest-serving president Crain’s profiled in April. Jefferson Ave. proved by the Huron-Clinton Providence Health System 800 Republic Drive in Allen of the Detroit Metro Conven- Back then, Ludlow was “The build-out is not lux- Metroparks Board of Commis- has signed a performance- Park, a former Ford Motor tion & Visitors Bureau, died based in Southfield. In May, urious. It is intended to en- sioners on Dec. 8. based addendum to its re- Co. training center. The Dec. 11. He was 79. 20111219-NEWS--0022-NAT-CCI-CD_-- 12/16/2011 5:28 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS December 19, 2011

MICHIGAN BRIEFS Grand Rapids on rebound, but Emergency manager not shocked skilled-workforce shortage looms Migrant housing: Are foes bigots, or do they have a point? that his hometown’s in trouble As the state emerges from the So is Detroit’s former auditor An Associated Press story this week observed from Canada.” depths of the R-word, it now appar- general surprised that the Motor that “migrant labor is common up and down west- But Brad Burrows, who lives next to Nelson’s ently must contend with the T- City is on a financial precipice? In ern Michigan where growers raise fruit and vegeta- property, said opposition is “not about race. It’s word. The Grand Rapids Press re- a word, no. But in an interview bles, but their presence is not always favored.” about transient people coming and going without a ported that this was the recurring with Michigan Radio, Joseph Harris Exhibit A of those feelings: “Would you leave vested interest in the township.” Another blueberry theme at last week’s Right Place did not advocate that an emer- your blonde, teenage girls home alone when there farmer, Steve Kamphuis, said he’s never had prob- 2012 Economic Outlook, where gency manager take the financial are 25 single men next door?” lems with his migrant camp. “Without the migrant leaders heard that West Michigan reins. Resident Lila DeWilde posed that question to the labor force, my business would cease to exist.” is recovering nicely from the re- Which is interesting, consider- Port Sheldon Township Planning Commission during a Fliers have turned up with a news story about a cession. ing that Harris: 1) has been the meeting called to discuss a plan by blueberry farmer migrant worker who got a jail sentence for fighting But a shortage of highly educat- emergency manager in Benton Carl Nelson to remodel a home for up to 20 migrant at a migrant camp. “How about 20 young men like ed workers threatens to keep the Harbor since March 2010 and 2) workers on his property west of Grand Rapids. this moving into your neighborhood,” the flier region from reaching its econom- has been mentioned as an emer- Bert Jara of Latin Americans United for Progress states. ic potential. “Talent attraction gency manager for Detroit. urged commissioners to ignore “hysteria and big- Planning commissioners postponed action on the and retention increasingly is go- Harris, Detroit’s auditor general otry” and said, “I very much doubt we’d be having issue as they waited for a more specifics from Nel- ing to be the factor that deter- from 1995 to 2005, told Michigan this discussion if these were white migrant workers son. mines our success,” said Rick Radio that he tried to get Detroit Baker, president and CEO of the officials to make big changes in Grand Rapids Area Chamber of Com- gy initiatives that, taken together, officials in Tuscola County’s Gil- brought against Chinese solar 1996. He said he was disappointed merce. one day could add up to more than ford Township approved plans by companies by U.S. solar panel pro- when every administration resort- Said George Erickcek, senior re- a drop in a bucket. Consider: Juno Beach, Fla.-based NextEra En- ducer SolarWorld and six domestic ed to borrowed money — including gional analyst at the W.E. Upjohn In- Ⅲ Last week, the independent ergy Inc. for 63 wind turbines — equipment makers, Dow Corning current Mayor Dave Bing. stitute for Employment Research: U.S. oil refiner Valero Energy Corp. part of the proposed Tuscola Bay President and CEO Robert Hansen Harris isn’t surprised that he “When you look at the workforce said it will provide a majority of Wind Energy Park. and Chairwoman Stephanie has been mentioned as an emer- we have now, you have to worry the financing for a plant that will Burns wrote that the dispute gency manager for Detroit, but he about the future. This is the issue convert wood into ethanol. “could undermine the solar indus- cautioned, “I sure as heck do not that is going to challenge us for the Bloomberg News reported that the What state’s solar industry wants: try’s significant progress at the want to go on record as saying, short term and the long term.” $232 million plant, to be owned by Not protection, just competition very moment it is poised for suc- ‘Joe Harris wants that job.’ Harris Lebanon, N.H.-based Mascoma cess.” expects to leave his position in Corp., is expected to be completed What can the federal govern- Although they stressed that Benton Harbor as early as spring. Alternative-energy initiatives in the Upper Peninsula town of ment do to protect the emerging “competition and incentives need across state pick up steam Kinross by the end of 2013. domestic solar industry from the to be fair for all industry players,” Find business news from Ⅲ In mid-Michigan, plans pro- Chinese challenge? In a statement they warned that confrontation around the state at crainsdetroit OK, so Michigan isn’t exactly ceeded to build electricity-produc- last week, two Dow Corning Corp. of- “will impede both countries’ abili- .com/crainsmichiganbusiness. the North Slope of Alaska as ener- ing wind turbines as part of a $250 ficials said: Just step aside and let ties to benefit from a growing solar Sign up for Crain's Michigan gy hotbeds go. But in dribs and million project in three counties. competition do its thing. market both in the U.S. and Business e-newsletter at crains drabs, reports emerge about ener- The Saginaw News reported that Responding to a trade case abroad.” detroit.com/emailsignup.