Tax Credits: Give and Take Mixed Catch

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www.crainsdetroit.com Vol. 30, No. 14 APRIL 7 – 13, 2014 $2 a copy; $59 a year

Page 3 ISTOCK PHOTO Crittenton turns over Tax credits: Give and take cancer center to St. John

BY CHRIS GAUTZ taken through 2020. MEGA credits CAPITOL CORRESPONDENT $5 billion in credits still of more than $5.4 billion potential- ly can be taken through 2036, al- Tax credits granted during the though most would be taken well Granholm administration are the loom from Granholm years in advance of that. gifts that keep on giving to the 3,500 The uncertainty arises because state businesses who have earned credits the state thought would be in the future. companies have some discretion them, but they’re a continuing claimed but weren’t. “This is undoubtedly the biggest about when to claim the credits — headache for the group of state em- But in future years, a bad esti- risk to the budget forecast,” said typically up to four years after be- ployees who have to predict how mate could end up as a budget Jim Stansell, senior economist for coming eligible — and in some cas- How UM alum helped bring much money Michigan has to deficit, threatening Michigan’s abil- the House Fiscal Agency. es have to achieve benchmarks to spend. ity to fund big-ticket items such as In two of the biggest categories become eligible to do so. Europe’s ‘football’ to Big House Sometimes it works out — more roads, education and public safety. of credits, there are $527 million in Last year, when the House and than $400 million of the fiscal 2013 And the $400 million not claimed credits related to investments in Barra’s Washington $1 billion budget surplus is due to in fiscal 2013 could still be claimed the battery industry that can be See Credits, Page 29 performance reviewed Advanced Manufacturing Four firms find new ways to Mixed grind it out, Page 11 JOSE JUAREZ Troy and Grand/Sakwa Properties continue to negotiate a deal that This Just In catch could open the new transit center. German 3-D printing company to open in Canton Federal funds, The first U.S. facility for a Spending up, but even state’s German 3-D printing compa- new offer could ny is expected to open in Can- ton Township in the third fishing industry needs a quarter. Kristen Thomas, economic business plan end transit development manager for the township, said Voxeljet AG will move into a 50,000- center dispute square-foot vacant building JOHN SOBZAK in the Haggerty II Corporate Anne Varra of Clinton River Watershed Council says good marketing is as important as keeping up with demographics BY CHAD HALCOM and ecological change. Park, west of Haggerty Road CRAIN’S DETROIT BUSINESS and north of Michigan Av- enue. Haggerty II is owned by BY DUSTIN WALSH 40,000 square miles of lakes, A transit center held hostage by Frankel Associates. CRAIN’S DETROIT BUSINESS ponds and rivers are a draw for SPENDING GONE WILD a 3-year-old legal dispute between The service center will let major tournaments and fly fish- Total wildlife-related the city of Troy and Grand/Sakwa he state of Michigan’s Voxeljet print parts, molds, ing excursions. spending Properties LLC may yet be liberated, cores and models designed fishing industry is analo- Ⅲ U.S.: $144.7 billion with the aid of nearly $2 million in And the numbers are still with 3-D CAD software for au- T gous to some of its most Ⅲ Michigan: $6.1 billion unspent federal funds. tomotive and other cus- sought-after catch. high: An estimated 1.2 million At stake is a publicly financed tomers, a release said. The anglers will descend on Michi- center for bus and rail passengers There’s the bass, known for Wildlife-watching auto industry is Voxeljet’s gan lakes, rivers, creeks and spending behind the Midtown Square shop- largest customer, CEO Ingo putting up a fight. There’s the re- ping center and condominium de- ponds this year as temperatures Ⅲ U.S.: $54.9 billion Ederer said in a news release. sourceful muskellunge, which re- velopment built by Grand/Sakwa. continue to rise. Ⅲ Michigan: $1.23 billion Gov. Rick Snyder said last quires patient trolling to reel in. The Troy City Council is to vote week that Friedberg-based The promotion and mainte- April 7 on a renewed offer to Keeping Michigan’s fishing Hunting-related spending Voxeljet’s opening of its first nance of state waterways falls to Grand/Sakwa based on an ap- U.S. service center will create industry ecosystem thriving is, Ⅲ U.S.: $33.7 billion praisal from Allen & Associates Ap- 15-20 high-tech manufacturing similarly, a complex proposition a range of stakeholders, from gov- Ⅲ Michigan: $2.34 billion praisal Group Inc. in Troy that values jobs in the first three years. that involves managing every- ernments to nonprofits to charter the transit center site at $1.05 mil- Sara Wurfel, Snyder’s press thing from environmental fac- boat services and equipment Fishing-related spending lion. That compares with a $550,000 secretary, wrote in an email Ⅲ offer last November based on an tors to marketing. shops. As they look ahead to this U.S.: $41.8 billion to Crain’s on Friday that Vox- season, they consider it an indus- Ⅲ Michigan: $2.43 billion earlier appraisal. eljet’s initial investment is $3 Despite fewer issued fishing The first offer sparked a con- try in evolution. Source: U.S. Fish and Wildlife million. licenses, anglers are spending Service (2011 data) demnation lawsuit by the city in — Kirk Pinho more money, and the state’s See Fishing, Page 27 See Transit, Page 26

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Page 2 CRAIN’S DETROIT BUSINESS April 7, 2014

MICHIGAN BRIEFS Rich DeVos memoir: Co-founder mark Gordon Food’s first foray into Texas. Terms were not disclosed. of Amway shares family stories Albion students stay on track after Marshall merger Ⅲ Kettering University in Flint has MLive.com notes that Rich De- the best return on investment Last spring, the Albion Public Schools Board of Edu- in Marshall. But Albion awarded extra points for an Vos, one of the co-founders of Ada- among Michigan colleges and cation closed the district’s high school because of A-plus, while Marshall does not. based Amway Corp., has a memoir on ranks 41st nationally, according to budget troubles and, starting this school year, sent Of particular concern of Albion residents: Mostly bookshelves (you remember those, annual rankings compiled by its ninth- through 12th-graders to nearby Marshall black, low-income Albion combined with almost all- right?) and online. Simply Rich: Life Payscale.com. Rankings are based High School. So how’s the consolidation going? The white, middle-class Marshall and how their stu- and Lessons From the Cofounder of on total cost and the earning po- Battle Creek Enquirer took a look. dents would be treated in the new environment. One Amway debuted last week. tential of alumni. On one hand, the rate of punished students has of the biggest critics of the merger, Albion City Dick and Doug DeVos, sons of the Ⅲ This is as close as Michigan risen, although Albion students aren’t getting into Councilman Maurice Barnes, now says he is “just author, told MLive that their fa- gets to the Final Four this year: any more trouble than when they were in their own shocked and amazed” at the atmosphere at the vorite story in the book involves The floor being used for the games high school. Albion students’ overall grade-point av- school, adding that after seeing the students inter- their father and his best friend and was put together in the Upper erage dropped from 2.61 at the end of the last school act, “I had to say, ‘Maurice, you need to get yourself Amway’s other co-founder, Jay Van Peninsula town of Amasa in a year in Albion to 2.52 at the end of the first semester out of the way.’ ” Andel, and the time they tried to plant owned by Salt Lake City- sail around South America, only to based Connor Sport Court Internation- al. It takes at least 30 trees to man- have their boat capsize. Which sug- in the United States when mea- coverage over issues that include Hathaway Inc. bought HJ Heinz Co. last ufacture the floor, which consists gests that even someone worth an sured by production. It also was lawsuits against city officials and year, said Christopher Rich, head of 350 4-by-7-foot panels. estimated $6.9 billion can’t buy im- ranked 13th for overall brewing, the police chief. Oakley’s insurance options strategist at JonesTrading In- munity from his children’s abuse. moving up one spot from 2013. provider, the Michigan Municipal stitutional Services LLC in Chicago. Find business news from Another story in the book: Rich The Colorado-based Brewers As- League, plans to drop the policy for Ⅲ Wyoming-based Gordon Food around the state at crainsdetroit DeVos giving a pep talk to grand- sociation, a trade association that the village of 300 when it expires Service Inc. said it has acquired .com/crainsmichiganbusiness. son Rick DeVos, best known for represents small and independent July 1, The Saginaw News reported. Houston-based Glazier Foods Co., a Sign up for Crain's Michigan founding ArtPrize, after he com- American craft brewers, last week The Municipal League said the food service distributor, MiBiz re- Business e-newsletter at crains plained that his high school friends released its annual list of the top 50 decision is based in part on the fre- ported. The acquisition would detroit.com/emailsignup. were teasing him about the DeVos craft and overall brewing compa- quency of claims and what it called name being on too many buildings. nies in the United States. a lack of cooperation and commit- To which the grandfather ob- Grand Rapids-based Founders ment with risk management efforts. served: “I would treat it, Rick, as a Brewing Co. was the only other CORRECTIONS blessing that you are in a family of Michigan brewery to make the list, people who do things that are wor- rising four spots on the craft brew- MICH-CELLANEOUS Ⅲ A story on Page 14 of the March 31 issue should have said the De- thy of being talked about.” Kids. ing list to 26th place. troit Collision Works hotel project in the planning stages would have 46 Ⅲ Shares of Battle Creek-based rooms rather than 36, and it should have said Koop architecture + media Kellogg Co., maker of breakfast cere- is the architect rather than the contractor for the project. Bell’s retains its spot among Small village faces prospect als and other packaged food, rose 6 Ⅲ Because of incorrect information provided to Crain’s, a March 31 nation’s biggest craft brewers of losing insurance coverage percent Thursday, the most in al- People item should have said that Andy Molokac, a senior manager at most five years. The options trading UHY LLP, Sterling Heights, was previously employed as a director at Comstock-based Bell’s Brewery The Saginaw County village of signaled activity similar to what Orion Solutions Group LLC, Troy. Inc. remains the No. 7 craft brewer Oakley faces losing its insurance happened right before Berkshire

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April 7, 2014 CRAIN’S DETROIT BUSINESS Page 3 Crittenton turns over cancer center Inside

sion to seek an outside cancer care Financial struggles led to deal with St. John partner. Fata leased office space at the BY JAY GREENE py, medical oncology, clinical tri- some work,” Crittenton Cancer Center and CRAIN’S DETROIT BUSINESS als, research and imaging ser- Powell said. owned Michigan Hematology Oncolo- vices at the newly named St. John Powell said gy Centers. He was arrested under St. John Providence Health System Hospital Cancer Center at Rochester the arrest last allegations he intentionally misdi- last week signed a five-year man- Hills, said Jean Meyer, St. John’s August of Farid agnosed patients and exposed agement agreement with CEO. Fata, a medical some unnecessarily to toxic can- Rochester Hills-based Crittenton Roy Powell, Crittenton’s CEO, oncologist who cer treatment. Jury selection for Hospital and Medical Center to lease said the hospital and its cancer practiced at Fata’s trial is expected to begin in the former 30,000-square-foot Crit- center has been financially strug- Crittenton and August. tenton Cancer Center. gling for several years. is accused of “Fata was the smallest piece of Can you be glutton without bilking $225 mil- Under the agreement, St. John “When I got here (in 2013), we Powell the equation. We have a lot of sur- will manage the center and offer needed to address clinical ser- lion from Med- gluten? Pizzeria tries, Page 4 radiation oncology, chemothera- vices, and cancer care needed icare, had little to do with the deci- See Crittenton, Page 29 Company index These companies have significant mention in this he alumnus who has donated more Manchester United and Real Madrid will play week’s Crain’s Detroit Business: 5ME ...... 11 money than anyone else to the Uni- at Michigan Stadium on Aug. 2 as part of the Allen & Associates Appraisal Group ...... 1 versity of Michigan is now staging a eight-team, 12-city round-robin exhibition Anderson Economic Group ...... 29 world-class soccer match at the tournament that will culminate in a title Annie Mac Financial ...... 10 T Arboretum Ventures ...... 25 school as part of his plan to capitalize on game Aug. 4 at Sun Life Stadium in Miami. A foot Barbara Ann Karmanos Cancer Institute ...... 29 the sport’s growing American popularity. Ross owns Sun Life Stadium and its Basco of Michigan ...... 20 Billionaire real estate investor Stephen main tenant, the Miami Dolphins of the Na- Belle Isle Conservancy ...... 26 Caponigro Public Relations ...... 26 Ross, a 1962 UM grad who has donated tional Football League. Center for Healthcare Research & Transformation . 19 $313 million to the university, two years He thinks the U.S. is ripe for more soc- Citrin Group ...... 10 ago launched an investment and market- cer. Clinton River Watershed Council ...... 27 Comerica Bank ...... 10 ing firm, New York City-based RSE Ross and Matt Higgins, formerly execu- in the Crittenton Hospital and Medical Center ...... 3 Ventures. tive vice president of business operations DeNovo Sciences ...... 25 Last year, a subsidiary, Relevant Sports, for the New York Jets of the NFL, Detroit Medical Center ...... 18 Diet Center ...... 19 organized the International Cham- co-founded RSE Ventures in Doctors for Kids ...... 5 pions Cup. On Friday, it 2012 to focus on sports, enter- Dykema Gossett ...... 26 was announced that tainment and technology. Eagle Ottawa ...... 13 Fanuc America ...... 12 soccer powerhouses door First Martin ...... 6 See Soccer, Page 28 General Motors ...... 3, 28 Grand/Sakwa Properties ...... 1 Gregory J. Schwartz ...... 10 HandyLab ...... 25 UM alum Harper University Hospital ...... 18 HealthPlus of Michigan ...... 19 Henkel AG ...... 14 Stephen Ross’ Hospitality Advisors Consulting Group ...... 6 Jones Lang LaSalle ...... 21 Loomis, Sayles ...... 10 latest venture Managed Assets Portfolio ...... 10 McLaren Health Plan ...... 17, 29 Medical Weight Loss Clinic ...... 19 puts big-time Michigan Association of Health Plans ...... 17 Michigan Economic Development ...... 29 Michigan Manufacturers Association ...... 15 Michigan State University ...... 27 INSIDE soccer in the Mindfield ...... 20 NeuMoDx Molecular ...... 25 Quite a kick: Real Madrid, Oakwood Healthcare ...... 18 Manchester United financials Big House PNC Wealth Management ...... 10 make head spin, Page 28 Big House Princeton Enterprises ...... 20 Big House, big ambitions? Renee’s Gourmet Pizzeria ...... 4 The UM is interested in BY BILL SHEA Robinson Capital ...... 10 leasing its stadium for big Real Madrid (in green) and Manchester United met on the pitch in March of CRAIN’S DETROIT BUSINESS St. John Providence Health System ...... 3 sporting events — but not last year in the Champions League tournament, which brings together too often, Page 28 Savorfull ...... 4 Europe’s best club teams. Schultz Outfitters ...... 27 Society of Manufacturing Engineers ...... 14 ASSOCIATED PRESS TechTown Detroit ...... 26 Termar Charters ...... 27 Third Shore Group ...... 5 UBS Financial Services ...... 10 U.S. Steel ...... 7 Barra’s review, from those who’ve been on hot seat University of Michigan ...... 3, 28 Venture Investors ...... 25 Versicor ...... 5 BY AMY HAIMERL decade to recall 2.6 million vehi- predecessors, former CEO Rick Barra’s grace under pressure. Wayne State University ...... 3 CRAIN’S DETROIT BUSINESS cles over a faulty ignition switch Wagoner, whose congressional First, experts said, there is a play- Wolverine Venture Fund ...... 25 that has been linked to 13 deaths. panel derided him for flying down book for managing any kind of cri- WOW – With Out Wheat Deli ...... 4 As General Motors Co. CEO Mary “Unless you’ve been in front of in a corporate jet, with the compa- sis: admit, apologize, humanize, Barra faced congressional panels Congress, you don’t now how gru- ny’s hand out for a bailout. and take action. last week, she may well have felt eling it can be,” said Davia Temin, “The most seasoned CEOs quake “I think she’s been amazing. It’s Department index like it was a firing squad. who owns New York City-based at something like this,” Temin been a textbook performance,” BANKRUPTCIES ...... 6 The members of the House Energy crisis management firm Temin and said. “In that light, I think she did said Matt Seeger, dean of Wayne BUSINESS DIARY ...... 23 and Commerce Committee’s over- Co. Inc. “It is a spectacle beyond all a spectacular job.” State University’s College of Fine, CALENDAR ...... 24 sight panel grilled her, demanding spectacles. You might as well be in That kind of grilling is a night- Performing and Communication answers — now! — about why it a Roman coliseum.” mare scenario for any CEO, but CLASSIFIED ADS ...... 25 KEITH CRAIN...... 8 took the automaker more than a It didn’t end well for one of her there are lessons to be drawn from See Barra, Page 26 LETTERS...... 8 OPINION ...... 8 Baseball season’s here ... watch out for southpaws THIS WEEK @ Crain’s sports business reporter Bill Shea had his claws PEOPLE ...... 23 out on opening day. Read what he saw and his take RUMBLINGS ...... 30 WWW.CRAINSDETROIT.COM about Cabrera’s contract at crainsdetroit.com.blogs. WEEK ON THE WEB ...... 30

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Page 4 CRAIN’S DETROIT BUSINESS April 7, 2014 Troy gourmet pizzeria tests market with menu totally gluten- and nut-free

BY BRIDGET VIS ty,” he said. SPECIAL TO CRAIN’S DETROIT BUSINESS WOW’s offerings are prepared in a gluten-free facility next to Gui- The menu at Renee’s Gourmet do’s but are served to customers Pizzeria offers the usual pizzeria seated in the main dining area, so fare, including calzones, salads and there is no separate dining space. flatbread. Due to the cost of gluten-free It’s what the newly opened Troy products, Pollard said he has to pizza place doesn’t serve that is its charge more for them. A regular marketing proposition: It’s entire- 12-inch specialty pizza at Guido’s ly gluten- and nut-free. is $12, while a WOW 12-inch spe- Industry experts say they don’t cialty pizza is $22. know of another such pizzeria in Pollard sells about 70 regular and metro Detroit — or in Michigan. about 22 gluten-free pizzas daily. Co-owner Gabe Hertz named the Hertz, however, said he doesn’t restaurant for his 14-year-old BRIDGET VIS/CDB intend to expand into the regular daughter, who has a severe nut al- Renee’s Gourmet Pizzeria in Troy sells between 80 and 150 gluten-free pizza business; he is able to keep lergy along with celiac disease, the pizzas a day, its co-owner says. gluten intolerance affecting around costs down, he added, by making 1 percent of Americans. fering gluten-free items. everything from scratch — includ- After several years of watching Pollard said he would not be able ing milling his own flour. his daughter become sick from to stay in business if not for his reg- Though he has no revenue projec- cross-contamination after eating ular pizza business, even though tions, Hertz has a goal of getting his out, Hertz decided to leave his posi- sales of his gluten-free pizzas have pizza into schools and stores such as tion as co-owner of a Bloomfield increased 70 percent since he began Whole Foods Market and Trader Joe’s. Hills Relax The Back franchise and serving them seven years ago. “Right now, this is all passion; open the pizzeria in February with “There would not be enough cus- it’s not about making money,” he business partner Tim Karapici at tomers to support a separate enti- said. 1937 W. Maple Road, in the Cam- bridge Crossings shopping center. Hertz had no formal culinary education or restaurant experience; his only connection to the food industry was a catering business his mother owned years ago. He invested $300,000 into opening Renee’s and spent a year developing his gluten-free pizza dough — a blend of rice, tapioca and bean flour. “I figured if I could make dough that did not taste like cardboard, and actually tasted really good, then I could not only attract people who were gluten- and nut-free, but also regular customers who want to eat gourmet pizza,” he said. Items are homemade and screened to be free of contamination from nuts and gluten. Signs are posted on the door prohibiting customers from bringing in food containing those ingredients. “We had a couple sneak in baby food that was processed in a facility that had nuts, and we had to sanitize the whole area,” he said. “We can’t take any chances.” Hertz said he knew the pizza also had to be price-competitive. The 12- inch specialty pizza is $12.99 and the 16-inch is $16.99. He said he sells between 80 and 150 pizzas a day. The menu also includes chicken strips made with Fritos in the bread- ing, french fries and family-recipe Hungarian goulash with dumplings along with cinnamon rolls and an assortment of other baked goods. Stacy Goldberg, founder and CEO of Detroit-based Savorfull LLC, which connects businesses and organiza- LENDING tions with allergen-free foods, said Renee’s is targeting the two popula- to growing businesses tions most in need of restaurant dining options. But the key to suc- remains our top priority. cess, she said, will be getting the Hitachi Business Finance word out to the gluten- and nut-free Hennessey Capital is now communities. Steve Pollard, owner of a Guido’s Offering a world of ÁH[LEOH financing Premium Pizza Inc. franchise in Oke- RSWLRQV for companies that want to grow. mos and the adjoining WOW-With Out Wheat Deli, Michigan’s only 248.658.1100 ZZZ.+LWDFKL%XVLQHVV)LQDQFH.FRP restaurant to be certified gluten- free through the National Founda- tion for Celiac Awareness, said he supports Hertz’s effort, but cau- tioned about pricing and only of- 20140407-NEWS--0005-NAT-CCI-CD_-- 4/4/2014 4:09 PM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 5 Idled engineers find jobs – with own tech, investment firms

BY TOM HENDERSON Royal Oak, in the basement of the system for heavy-duty diesel trucks Francisco-based company with a Versicor again soon. She said she CRAIN’S DETROIT BUSINESS former St. Mary’s High School on that allows them to operate on a development office in Ann Arbor is developing a board game aimed West Seventh Street. combination of diesel and natural that uses open-source software to at modifying children’s behavior In March 2012, four engineers When Coplen, Mike Donoughe, gas. He said Third Shore’s holistic help manufacturers integrate cam- called Ticket Please, which she who had been laid off from Chrysler Chris Kondogiani and Tom Saw- approach has paid off for his firm. eras and sensors into the produc- hopes to begin marketing in May. LLC in 2008 and had just been idled arynski founded Third Shore after First, Third Shore provided fund- tion systems. Once the board game is available, again by Bright Automotive, an Indi- being laid off a second time, they ing for EcoDual. As part of that in- Orfin Ventures LLC of Bloomfield she said, she will hire Versicor to ana startup trying unsuccessfully envisioned a holistic offering of ser- vestment, Donoughe was brought Hills was a co-investor in Sight Ma- develop a mobile-app version. to make plug-in electric vehicles, vices. They would provide funding, in as interim CEO last May. chine. decided they were tired of being Versicor also offers consulting their own engineering expertise “Tom came in and did a real good Ami Mavani, M.D., is another and design services to technology hired hands amid the vagaries of and access to a network of engi- assessment of where things stood. Versicor client. the automobile industry. incubators. It has begun working neers and supply-chain manufac- It was clear we needed a version 2.0 She gives the with the Rocky Mountain Innosphere They decided to become entre- turers they had met over the years. of our product,” said Thomson. company credit preneurs instead. Incubator in Fort Collins, Colo., and Last June, they founded Versi- EcoDual is raising a round of cap- for a medical de- is about to enter into a formal rela- “We weren’t interested in finding wasn’t cor. Coplen is president and ital to fund future growth, and with- vice that tionship with the Michigan Life Sci- another job. We liked working with made. Sawarynski is chief technology of- out the 2.0 version, fundraising ence and Innovation Center, an incu- each other, and The owner of ficer. The company, which em- would have been impossible, he bator in Plymouth Township that we wanted to do her own pedi- ploys six, had revenue of $672,000 said. is owned by the Michigan Economic something entre- atric practice, last year and projects revenue of Versicor was hired to design Development Corp. preneurial,” said $2.1 million this year. Doctors for Kids that version. Andrew Meadow, director of Christina Cop- “Our goal is breaking down the PLC of Rochester “It was a crazy timeline. They Mavani medical device and biotech ven- len, one of the barriers to innovation,” said Cop- Hills, she ap- started work on it last Aug. 1 or so, tures for the MEDC, said he was in- four. len. plied for a device for easier and and we had a system operating on troduced to Versicor last December. Today, they A major barrier to fledgling a truck by late September. They safer removal of warts in children. “They had a long slide presenta- have their own medical-device companies is the didn’t just design the electronics Mavani said the Versicor team tion, but by the fifth or sixth slide, investment firm, cost of designing and making elec- and write software, but they got then designed the device and made I knew I was in the presence of Coplen Third Shore Group tronic control units and writing the manufacturing sourced for us, a prototype, using a 3-D printer. As LLC, pooling the software to make them work too. They took it all the way part of its due diligence in prepar- something special,” said Meadow. their own money to offer funding properly. through development.” ing to help her get approval from “We’re going to have something to early-stage tech companies, gen- “We can let them do a plug-and- Third Shore’s other portfolio the U.S. Food and Drug Administration, formalized soon. They’ll have a erally in the range of $50,000 to play with our off-the-shelf units,” companies include San Francisco- the Versicor team found a compet- presence here and be a key part of $250,000. And they have their own Coplen said. “They can spend their based BRD Motorcycles, which ing device on the market that her what we are offering. tech company: Versicor LLC, which time and money much more effi- makes electric bikes for the racing patent attorney had missed. “Versicor fills a gap in the devel- makes electronic control units for ciently if they don’t have to keep circuit and whose latest control “It didn’t make any sense to opment life cycle that I think will startup medical device, clean-tech re-creating the wheel.” system was designed by Versicor; spend all the money to get FDA ap- significantly reduce the risks that and transportation companies and Doug Thomson is founder and Soloshot Inc., an Austin, Texas- proval if there was already a suc- early-stage companies face.” provides consulting and engineer- chairman of EcoDual LLC, a company based maker of small robotic cam- cessful device on the market,” Ma- Tom Henderson: (313) 446-0337, ing services. founded three years ago in Beaufort, eras that help people film their ac- vani said. She killed the project. [email protected]. Twitter: Both are based in downtown S.C. It makes an after-market fuel tivities; and Sight Machine, a San Mavani said she plans to use @tomhenderson2

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Page 6 CRAIN’S DETROIT BUSINESS April 7, 2014 First Martin awaits OK for downtown Ann Arbor hotel project

BY KIRK PINHO submitted site plans to the city for are still needed. The planning de- CRAIN’S DETROIT BUSINESS review last week. Michael Martin, partment is currently reviewing vice president of the company, them. If approved, the project First Martin First Martin Corp. is planning its said he expects city approval by would be completed in the fall of Corp.’s $20 first hotel development, a $20 mil- June or July and construction to 2015. million hotel First Martin was founded by for- development, lion mixed-use project including a begin immediately after on the mer University of Michigan Athletic shown in a high-end extended-stay property 0.48-acre site at 116-120 W. Huron rendering, is in downtown Ann Arbor, and in- St., between North Ashley and Director Bill Martin, Michael’s fa- expected to be tends to announce the hotel flag North Main streets. ther, and has more than 1 million square feet of office and retail approved by within the next month. Planning Commission and City June or July. space and 400 apartment units un- Ann Arbor-based First Martin Council approval of the site plans COURTESY OF FIRST MARTIN CORP. der ownership and management. The company hopes to announce the hotel flag for the 110-room hotel project in the next month, Michael Martin said. He said it would be an upscale hotel but would not say which franchise it With all the confusion surrounding healthcare, would be. Downtown hotels are normally 50 percent to 60 percent occupied, who knew providing it could be so simple? compared with 69 percent for Washtenaw County as a whole, said Chuck Skelton, president of Ann Arbor-based hotel consulting You want to attract the best talent, and you want to keep your employees empowered. But at the same time, you need to watch the bottom line. firm Hospitality Advisors Consulting Cambridge brings you strategies that help you control your healthcare Group Inc., which does feasibility costs, while giving your employees some control, too. studies, appraisals, valuations and management consulting for hotel The premise is simple: clients around the country. Q You set a monthly benefits allowance for your employees Retail frontage would be along Q Our decision support tools help your employees decide which plans Huron, while the entrance for core best fit their individual needs EXCHANGE SOLUTIONS™ hotel functions would be along Cambridge brings benefits and technology in a simple, convenient and easy Ashley. CAMBRIDGE CONSULTING GROUP to implement package. Add it up, and the advantages are clear. In addition to about 6,000 square feet of retail and possible restau- ccgexchangesolutions.com rant or bar space, the first floor Introducing Cambridge Exchange Solutions. Solutions for all. would also include the hotel lobby, meeting rooms, office space, an ex- ercise room, patio, pool, and ©2014© 4 CaCCambridgeambmbridgee CCoConsultingonsusulting GGroGroup,oupup, LLC.. AllA l RightsRig ReReseReserververvrved. kitchen and laundry space. The top five floors would be for hotel rooms, which would be studio and one- and two-bedroom units. Financing for the project has yet to be determined, Martin said. The site is currently home to the Greyhound Bus Depot and the Ann Ar- bor Area Convention and Visitors Bu- reau. Both will relocate. The Ann Arbor office of Colliers International Inc. will market the retail space to tenants, Martin said. The site is adjacent to an 800- car parking structure at Ashley and Ann streets. There is also surface parking northeast of the site and on the south side of Huron Street. Architects on the project are Fairfax, Va.-based Zivic & Hurdle Ar- chitects PC and Ann Arbor-based Hobbs & Black Architects. Ann Ar- bor-based Midwestern Consulting LLC is the project engineer, survey- or and landscape architect. Kirk Pinho: (313) 446-0412, [email protected]. Twitter: @kirkpinhoCDB

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in De- troit March 28-April 3. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Adnan Trucking Services Inc., 7839 Cal- houn St., Dearborn, voluntary Chapter 7. Assets: $0; liabilities: $34,554.21. Arella Studios Inc., 50218 Cherry Hill Road, Canton Township, voluntary Chapter 7. Assets: $2,033; liabilities: $239,182. Landstar Enterprises Inc., 9182 Green- field Road, Dearborn, voluntary Chap- ter 11. Assets: $1 million; liabilities: $781,000. — Anjana Schroeder 20140407-NEWS--0007-NAT-CCI-CD_-- 4/4/2014 4:11 PM Page 1

Page 7 THE MILLER LAW FIRM Accident, ice Changing the Odds in our Clients’ Favor delays dent U.S. Steel capacity

BLOOMBERG

U.S. Steel Corp., the country’s largest producer of the metal, idled half of its domestic capacity after a fatal accident at an Ecorse plant and unusually icy conditions on Lake Michigan delayed raw-material shipments to another facility. At U.S. Steel’s Great Lakes plant in Ecorse, a contract worker operating a crane at the site of the collapse at the No. 2 basic oxygen furnace died in an accident Friday, the company said in an emailed statement. The three blast furnaces at the plant were down after a March 27 roof collapse, the company said. It marked the second fatal accident at the plant in recent months. The Miller Law Firm is Recognized Pittsburgh-based U.S. Steel idled its Gary Works in Indiana, its as a Leader in Complex Business Litigation largest plant, because of the ice, the company said in an April 2 letter to customers that was obtained Q Automotive Supplier Counseling Q Commercial and business lawsuits by Bloomberg News. The Great Lakes saw 91 percent ice cover in early March, the sec- Q Employment litigation Q Shareholder and partnership disputes ond-highest level on record, according to the National Oceanic and Referral fees honored on contingency fee cases Atmospheric Administration. “These severe ice conditions have not oc- curred on the Great Lakes for more than three decades,” U.S. 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com Steel said in the letter. Gary has 7.5 million tons of annu- Rochester, Michigan 48307 al steelmaking capacity, and the Michigan plant has 3.8 million tons, according to a company filing. U.S. Steel’s domestic capacity is 22 million tons. The company’s U.S. mills produced 17.9 million tons in 2013.

3 downtown Detroit buildings win regional awards

Three downtown Detroit buildings have received regional The Outstanding Building of the Year (TOBY) awards in the Building Own- ers and Managers Association’s annual competition. TOBYs were awarded to the Madi- son Building at 1555 Broadway St., the Chrysler House at 719 Griswold St. and the Coleman A. Young Municipal Center at 2 Woodward Ave. The Dan Gilbert-owned Madison Building won in the category for buildings under 100,000 square feet. The Chrysler House, also owned by Gilbert, won in the category for renovated buildings, and the Coleman A. Young Municipal Center, owned by the Detroit-Wayne Joint Building Authority, won in the category for historical buildings. Regional award winners advance to the international competition in Orlando, Fla., at the BOMA International Every Build- ing Conference & Expo in June. Contest judges evaluate factors like tenant relations programs, emergency preparedness and security standards, and continuing education for building personnel, according to a news release. — Kirk Pinho 20140407-NEWS--0008-NAT-CCI-CD_-- 4/4/2014 5:53 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS April 7, 2014 OPINION Pothole plan paves way for more deals? hanks to our prolific potholes, state lawmakers may finally be getting it right. T Late last week, House Republicans unveiled a proposal to replace the state’s per-gallon sales tax with a 6 percent tax on the wholesale price of gas. As gas prices go up, more money will flow to maintain and improve Michigan’s roads and bridges. If adopted, it could mean an extra $450 million for road funding in 2015. That is far short of the $1.2 billion Gov. Rick Snyder has proposed. But it’s a start. The GOP plan also would require a minimum five-year warranty on road projects, something prompted by furious taxpayers frustrated by deteriorating roads that had just gotten the orange barrel treatment. The plan would also increase fees on permits for overweight trucks. The good news? Democrats said they could work with their Republican counterparts to finesse and push the proposal through. If both parties can work on this deal, maybe we can finally get some traction on other transportation issues — like transit funding for Detroit. Biz can learn from GM crisis LETTERS Speaking of rough roads: Members of the U.S. House and Senate — few of whom have ever run anything but their mouths — castigated General Mo- Consider retirees before nonprofits tors Co. CEO Mary Barra last week for not having enough answers to the ignition switch crisis. Editor: Many of these “nonprofits” have Crain’s Detroit Business Two articles in Crain’s on many other sources of revenue, no- Many of the questioners were less interested in answers than welcomes letters to the editor. March 31 reported on or endorsed tably from other government agen- they were in their own grandstanding. (The award for most-irri- All letters will be considered for cies. Public universities receive reinstating Michigan’s charitable publication, provided they are tating most certainly goes to Sen. Barbara Boxer, D-Calif.) tax credits for donations to a vari- sizable government funding, have Although this is GM’s crisis, the lessons apply to any com- signed and do not defame ety of “nonprofits” that were elim- individuals or organizations. huge endowment funds, and rou- pany, any industry that makes and sells products. inated a couple of years ago for the Letters may be edited for length tinely raise tuition. Public broad- First, the lead of the investigation of a decade of actions in- state to save money (“Senate bills and clarity. casting entities receive govern- would restore charitable tax cred- ment funding and “advertising” volving the ignition switches reports to the board — not to the Write: Editor, Crain’s Detroit its for some donations,” Page 5; dollars, and sponsor fundraisers. CEO and executive team. It’s important to keep that communi- Business, 1155 Gratiot Ave., “Charitable credits can save mon- Detroit, MI 48207-2997. Everyone would like to have cation line free of even perceived interference or sanitizing at ey,” editorial). their cake and eat it, too. Who wor- Email: [email protected] the executive-suite level. As part of that same sweep of ries about seniors’ ability to cope? Second, this may be an example of how a CEO can use a cri- savings, the Michigan Legislature If the state now has surpluses, let’s sis to accelerate cultural change. The investigation results and governor eliminated tax ex- tion between the drop in charita- reinstate some of the takeaways emptions for retirees’ pensions ble contributions and the adverse from seniors and then re-evaluate could result in everything from firings to criminal charges. and virtually eliminated the effect that the takeaways from the the “nonprofits” fates. But at the minimum, it can be a powerful hammer to pound Homestead Property Tax Credit seniors have had. Seniors who typ- By the way, let’s direct most of away at needed culture changes. that hurt retirees as well. ically do donate to charities now the surpluses toward fixing Michi- Finally, every organization needs a way for people at the Everyone was to share the pain, find themselves with appreciably gan’s roads. Dramatically more lower rungs to be able to safely report what they perceive to be right? Are there any bleeding less disposable income. Couple residents, including seniors, hearts endorsing reinstating ei- that with the dramatic increases safety or operational problems. The key word is “safely” — as would benefit, not just a chosen ther of these two takeaways from in food and energy prices, and a few “nonprofits.” in without repercussions. GM may not have that now, but hundreds of thousands of retirees large part of the drop in charitable Joseph Majcher such a process may well be in its future. in Michigan? There is a correla- donations can be accounted for. Orchard Lake KEITH CRAIN: Michigan roads: Pay now or pay later

If you want to get the best bang for the German autobahn, that is what is being roads with a cheap fix that won’t I can’t help but think that as the your buck, then you fill some pot- then you’ve traveled a planned for the repair of last very long OR do we want them orange barrels start going up for holes and cover them with asphalt. very good highway. I-96, from the roadbed to to do fewer roads and do them construction, there are plenty of If you want to do a decades-long When it needs repair, the overpass bridges. I right so they will last for decades opinions. It is not an easy call, and I fix, you dig down a couple of feet they dig down to the assume that is why it is but create a lot of inconsistency would suggest that our folks in Lans- and pretend it’s a new road and core and repair it perma- taking so long and will and higher cost? ing need a lot more input from us. you build up from the base and nently. I have no doubt cost a lot more money I think the residents of Michigan As we all spend the spring dodg- make it sturdy for a long time. It that it is very time-con- rather than a resurface. deserve to weigh in with their opin- ing potholes, more than ever we’ve takes more time and money. suming and very costly. I don’t envy our state ion as to the right path to follow. got strong opinions about what to And you should set the maxi- But it creates some of transportation depart- It may well be that a combina- do and how to do it. mum weight limits in line with the the best roads in the ment. It has far too tion of both processes makes the Somehow the Michigan Depart- rest of the country. world. many lousy roads and most sense and, depending on loca- ment of Transportation has to cre- If you ever have had the opportu- I hope, aside from far too little money. tion, would determine the best ate a method to hear from all the nity to drive in Europe, such as on changing the truck weight limits, Do we want them to do a lot of construction process. residents. 20140407-NEWS--0009-NAT-CCI-CD_-- 4/4/2014 11:30 AM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 9 Oakland studies suburban water, sewer system

Oakland County is on the verge the proposed in the sand on this transaction is private companies interested in away and creating their own water of telling Detroit to take its ball Great Lakes simply inaccurate and not support- buying or leasing and managing the and sewer system. (Possibly even and go home. Water Au- ed by the facts.” system. Those are due June 1. more if other counties join Oakland That ball is the Detroit Water and thority. Oakland County Executive L. “We continue to believe an au- in this quest, as the Detroit Free Sewerage Department. “Through- Brooks Patterson made the first thority may well be the best out- Press has reported is possible.) Last week, the Oakland County out this peri- threat, arguing at his State of the come for everyone,” Orr wrote in Whether that is feasible is uncer- Board of Commissioners’ finance com- od, the city County address in February that his letter to the county executives. tain, but the political will to find mittee voted unanimously to create has done its the county could create a separate “But given that there is not a major- out is strong. The full board of the a $3 million fund to study develop- level best to water and sewer authority. ity consensus on whether to move Oakland County Commission is to ing an independent water and sewer provide the “Instead of sending billions of forward with our discussion, we vote on the resolution April 17. entity. DWSD serves 85.6 percent of information dollars to help the Detroit Water have no alternative but to pursue However, all 21 commissioners had Oakland residents and 4 million cus- Amy Haimerl as expedi- and Sewerage system come into other options to maximize the value signed the resolution as of April 3. tomers in Southeast Michigan. tiously as pos- compliance with the EPA stan- of this critical enterprise for the To get started, the finance com- As part of Detroit’s bankruptcy sible and conduct its discussions dards, why not use those billions benefit of the city, its creditors, cus- mittee authorized $500,000 that proceedings, Wayne, Oakland and and negotiations with you in the se- to build our own water and sewer tomers, employees and retirees.” could be spent researching options. Macomb counties have been negoti- quence and manner requested by authority?” he asked the crowd. Of course, private-sector interest A version of this column original- ating with Detroit Emergency Man- the counties. … To now suggest As negotiations fell apart, Orr an- could be limited by the specter of 1 ly appeared as a blog at crainsde- ager Kevyn Orr to create a regional that the city somehow drew a line nounced he would seek bids from million customers suddenly pulling troit.com. Great Lakes Water Authority. The new entity would lease the city’s water and sewer assets at an annual price tag of $47 million. The city itself would become a wholesale customer of the authority. But those discussions have stalled. The counties say the city hasn’t provided the necessary documents to evaluate the deal. Addi- tionally, the commissioners are fearful of DWSD’s hefty $6 billion of debt as well the cost of coming into compliance with Environmental Pro- tection Agency rules. Finally, as part of the proposed bankruptcy settlement, the new authority would still have an obligation to fund a portion of the city’s pension bill. “It is fundamentally unjust and unfair to force DWSD wholesale rate-payers to fund basic city of De- troit services unrelated to water and sewer services by diverting revenues out of the DWSD system, thereby forcing substantial rate increases to raise the additional revenue necessary to fund operations, maintenance and improvements already required to maintain the system in compliance,” reads the resolution the Oakland finance committee approved. Orr sent a rejoinder letter to all of the county executives, challenging a number of points, including asser- tions that the city has not provided necessary documents to evaluate

NOMINATE FOR 40 UNDER 40 Since 1991, Crain’s Detroit Business has gathered 40 of the community’s overachievers for a special salute. Past winners have started companies, found success at a young age at established businesses and made nonprofits stronger. Crain’s is seeking nominations for the 2014 class of 40 under 40, which recognizes young achievers based on factors such as financial Michigan is turning around. impact and community leadership. Winners will be profiled in the Oct. 6 issue of Crain’s and will be Help us get there. honored at the awards event in November. With more than 640 alumni invited, the event brings together the current class with colleagues, clients, family and In 2009, a group of business, government competitive. But we can do more—we can friends to celebrate. To be eligible, nominees must be and community leaders got behind a plan to make Michigan a Top Ten state in jobs, 39 or younger as of Oct. 6, 2014. turn Michigan around. Since then, the state personal income and a healthy economy. Nominations must be received by April 14. has made enormous progress: we’ve added And you can help. For questions regarding the nominations, contact Bill Shea at 250,000 new jobs, reduced long-term debt [email protected] or (313) 446- 1626. For technical questions by $20 billion, and made the state more regarding the nomination form, contact Ashley Henderson at [email protected] or (313) 446-1685. 20140407-NEWS--0010-NAT-CCI-CD_-- 4/4/2014 11:54 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS April 7, 2014 Money managers see Ukraine turmoil as buying opportunity

BY TOM HENDERSON Group. “There will be some volatili- who now has his own firm, Grosse sell-off. I can see a lot of hurt coming point B, and buying oil stocks is an CRAIN’S DETROIT BUSINESS ty, but I don’t see any disruptions Pointe-based Robinson Capital LLC. if there isn’t a resolution soon.” insurance policy if things heat up in in markets.” He didn’t invest directly in Citrin said his firm has beefed up Russia. Statoil has a nice valuation Area money managers say the Others who agree that this too Russian stocks but in indices that its allocation to hedging activities as a and a nice dividend yield, and it has ongoing turmoil in Crimea and shall pass are, nonetheless, making trade in public companies in the protection against such a sell-off. reserves in a face part of the world. Ukraine presents buying opportu- investment decisions in reaction to so-called BRIC countries of Brazil, About one-third of his portfolio is now I’m buying it for new accounts,” he nities — both in Russia, where pub- Russia’s moves in the region. Russia, India and China. in what he considers various hedges said. lic stocks have taken a sharp hit, John Schindler, a senior vice Bill Stone is chief investment — buying gold, shorting oil stocks He also thinks a modest stake in and here, where oil and gas compa- president of investments at UBS Fi- strategist and executive vice presi- and taking long positions on the yen, gold as a hedge makes sense. “Gold nies may be able to capitalize on Eu- nancial Services, says he has added dent for PNC Wealth Management. He the dollar and the pound sterling. has some merit,” said Dzialo, who ropean fears of relying too heavily gold to his clients’ portfolios since said the arrival of spring limits con- Anne MacIntyre, president and has been buying stock in the Cen- on energy supplies from Moscow. Russia entered Crimea, in part to cern about oil and gas supplies to CEO of Annie Mac Financial LLC of tral Fund of Canada, a gold and sil- For the most part, they think serve as a hedge in case events there Europe, and that “with Russia inte- Sterling Heights, doesn’t see events ver depository. events will play out without long- disrupt world markets. grated into the world economy, in Ukraine leading to a major sell- Peter Schwartz, a principal in term impact to markets or major He said he is bullish on U.S. ener- now, there’s an incentive for (Russ- off. But energy stocks could make the Bloomfield Hills firm of Gregory financial dislocations. gy stocks, both because consumers ian President Vladimir) Putin to act sense as a result of legislative J. Schwartz & Co., think Crimea is Short-term, though, there are of Russian energy will be looking rationally.” changes. just the latest of regional worries some strategy shifts to hedge infor more stable sources in the event Stone said one of his investment “One of the things that might such as Syria and North Korea vestments for some advisers. of possible European embargoes, strategies is to look for good com- come out of this is the natural-gas that briefly effect the market with- Russia’s annexation of Crimea and because proposed legislation in panies in countries that are in tur- situation domestically. Congress is out much lasting result. “was the major event of the first Washington would allow the export moil, which applies to Russia, ramping up legislation to allow the He said that if things heat up else- quarter, but ultimately it won’t of natural gas to Europe. which he thinks will fall into re- export of natural where in Ukraine, it will likely have much impact,” said David “If we can get the politics cession in the aftermath of what gas, and that will cause investors to take profits and Sowerby, portfolio manager in the straightened out, U.S. energy stocks has happened in Crimea. take several sell off some holdings, but any de- Bloomfield Hills office of Loomis, will be a great place to be,” he said. Jonathan Citrin, founder and years to put in cline in the market “will present a Sayles & Co. Schindler also said UBS contin- executive chairman of the Birm- place, but it buying opportunity. For the long- “From a global perspective — I’m ues to like U.S. equities, despite the ingham-based Citrin Group LLC, is makes energy term investor, bad news can be not being dismissive of Crimea, big run-up in stock prices in 2013. more concerned than other invest- stocks a good your best friend as you buy off the where life-changing events have “Crimea is just another step in ment managers interviewed by long-term play,” lows,” he said. taken place — but these types of a theme that has been playing it- Crain’s that trouble in Ukraine she said. Schwartz said he remains bull- events have little long-term im- self out for a while. The U.S. con- may eventually lead to a major Michael Dzia- ish on emerging markets, despite pact,” he said. lo, president and trouble in the “R” part of the BRIC tinues to benefit from events glob- economic collapse. MacIntyre “The problems in the Ukraine ally. Money will continue to flow He said with U.S. markets at all- chief investment countries. “There’s strong data and in Russia and all the disloca- here,” he said. time highs, he is worried that in- officer of Rochester-based Managed that the growing middle class in tion that is taking place are not A big trade-off in Russian stocks vestors are looking for a reason to Assets Portfolio LLC, is bullish on oil emerging markets are becoming coming as a surprise to us and in early March, after the takeover take their profits will fuel a sell-off and gas, too. He has a big position in consumers of goods and services,” haven’t made any changes in our of Crimea, was a buying opportu- that could feed on itself. Statoil ASA of Norway and owns two he said. “If there’s a bargain out allocations,” said Dennis Johnson, nity for Jim Robinson, the former “Could Crimea be the tip of the other European stocks, Total SA of there, it’s foreign markets.” a senior vice president at Comerica CEO of Birmingham-based Munder iceberg that leads to another reces- France and Eni SpA of Italy. Tom Henderson: (313) 446-0337, Bank and chief investment officer Capital Management and Southfield- sion? I hope not, but it has the poten- “The economic map of the world [email protected]. Twitter: at the Comerica Asset Management based Telemus Capital Partners LLC tial,” he said. “It could start a huge involves getting oil from point A to @tomhenderson2

IS YOUR WORKPLACE A COOL PLACE? THEN NOMINATE IT Crain’s biennial Cool Places to Work in Michigan awards returns this year, and once again Crain’s is working with Best Companies Group of Harrisburg, Pa. The competition has two parts: one questionnaire for employers, another for employees. The combined, weighted results will determine who qualifies for Cool Places designation. Best Companies supplies all participating companies — regardless of whether they win the Cool Places recognition — with a Best Companies Group employee feedback report based on employee responses to the You Make It Loo 72-question survey. k Easy The report can help company executives identify strengths and weaknesses in their company culture and practices. Those around you marvel at the To be considered for Cool Places to Work in Michigan, companies manufacturing business you’ve built. must register at www.coolplacestoworkmi.com by But from the cockpit, the view’s vastly different. A dashboard lit with April 18. Other important dates, samples of the surveys and other production inefficiencies. Risk as you rely on your pilots to fly in high-speed information are on the website. formation toward growth objectives. Ultimately, it is you who must steer the Once registered, companies will be invited to participate in the business to a perfect landing. surveys. Businesses and nonprofits can Doeren Mayhew helps manufacturers like you navigate through apply. Applicants must have a price fluctuations, raw material shortages, labor issues, profit- minimum of 15 employees working in Michigan and have been in draining waste and competitive challenges. So, when you’re business at least one year, among ready to take off again, we can help you achieve your mission other criteria. ® Companies pay a fee based on Insight. Oversight. Foresight. with precision. company size to Best Companies to cover survey costs. The cost 248.244.3000 ranges from $610 to $895 for doeren.com online surveying, and $765 to $1,660 for paper surveying. 20140407-NEWS--0011-NAT-CCI-CD_-- 4/4/2014 11:24 AM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Dustin Walsh writes ENGINEERED TO EMPLOY about auto suppliers, Crain’s list of the largest manufacturing, the steel industry and engineering companies in the business of law. Southeast Michigan, Page 16 Call (313) 446-6042 or write [email protected] Focus advanced manufacturing Dustin Walsh New newsletter The heat is off: 5ME LLC shoots liquid nitrogen for a changing – temperature: minus 321 degrees – through the tip industry of a cutting tool, which keeps the metal from A cut becoming brittle and keeps A cut In Diego Rivera’s famous mural, the cutting tool cool. “Detroit Industry,” denim-clad workers with calloused hands are seemingly destined to forge metal into engine parts. But these are no longer the badges of Detroit’s working class. The state lost nearly a million manufacturing-related jobs since 2008. Those workers and their factories were disappearing far ahead above of General Motors Co.’s bankruptcy. Jobs were shipped south. Automation replaced workmanship. Words like es, “advanced “efficiency” and “streamlining” became manufacturing” is part of the manufacturing vernacular. about robots and Yet, this is Detroit. We know about reinvention. Jobs are returning, albeit computers and different types of jobs. From the composites and smallest metal stamper to the largest technology and automaker, new business practices other processes far and manufacturing processes have Y been implemented out of necessity. removed from the smokestacks That’s why Crain’s Detroit Business of yore. But it’s also applying will launch its newest e-newsletter next existing technology in new week covering the region’s ways and learning to be thrifty manufacturing industry. The newsletter, “Crain’s Manufacturing” (we keep it with what was formerly con- simple around here), will document the sidered waste materials. monumental shifts in thoughts, beliefs This report, prepared by and the practices of making things. Crain’s manufacturing re- You’re still going to see our porter Dustin Walsh, showcas- traditional coverage of the business of 5ME LLC es companies getting creative, manufacturing. But you’ll also be able 5ME LLC to keep abreast of the news in a from 5ME LLC’s cryogenic tool- weekly newsletter. ing, which offers precise cut- We plan to cover the faces and art ting via deep-freeze tempera- of manufacturing, from the Liquid nitrogen turns Liquid nitrogen turns tures, to Eagle Ottawa’s blended sophisticated to the primitive. We’ll still be heavy-handed on the dollars leather product, which makes and cents of manufacturing, but with use of leather scraps to create the understanding that it’s the people hot process into a cool tool a leather alternative for au- who spin the wheels. tomakers. Stories begin on this The e-newsletter will feature a he phrase “parts machining” conjures up images of thun- liter, cheaper than monthly video show off some of the page and continue to Page 14. region’s most innovative or even old- derous contraptions designed to cut hardened compo- many coolants on the timey manufacturing methods. If your nents from even harder metals. It’s usually a hot process market, Horwarth said. employees are hunched over a hand T with tool bits spewing near-molten shards of metal. The nitrogen-cooled tools allow metal lathe or are using technology to But at the Warren technical center of 5ME LLC, tools and and other hard composites such as carbon revolutionize a process, we want to hear from you. their bits are cool — minus 321 degrees Fahrenheit cool. fiber to be cut at increased speeds without Useful statistics will also be a large Formed in July 2013 from divested units of MAG IAS, damaging the product or the tool. part of our coverage. We’ll bring you 5ME is using its patented cryogenic tooling to advance the In a testing contract with Bethesda, easy-to-read statistical information on speed and efficiency of parts machining. Md.-based Lockheed Martin Corp., 5ME’s purchasing patterns and job postings. Liquid nitrogen, the same substance used to preserve cryogenic machining technology doubled You’ll also get a weekly blog from yours truly containing insights, Ted Williams’ head, has been used in parts manufacturing machine output for titanium bulkheads concepts and interesting tidbits on for 50 years, but 5ME pushed the process in and other parts for the F-35 Lightning II the region’s industrial might. a new direction, said Bill Horwarth, presi- fighter jet. Have an idea for our manufacturing dent of the Cincinnati-based company. For engine block test contracts, the coverage? Contact me at Instead of spraying liquid nitrogen di- cryogenic tools have quadrupled machine [email protected]. rectly onto a cutting surface or cutting un- output. Horwarth said the cryogenic tech- der a liquid nitrogen bath, 5ME’s process nologies’ ability to cut hard metals and runs liquid nitrogen through the machine composites at such high speed opens up to the tool tip. This keeps the nitrogen from new opportunities for manufacturers. making the metal brittle and keeps the cut- “Being able to cut with this technology, we’ll see more Horwarth ting tool cold, Horwarth said. materials being used than we’ve never seen before,” Horwarth The spinning cryogenic tool extrudes liquid nitrogen said. “Universities are already testing our process, cutting ma- away from the part it is cutting during operation. The terials we’ve never heard of; this technology is the future.” process releases a steamy vapor as the nitrogen turns back 5ME has sold two cryogenic units but has test contracts Sign up for the Crain’s into a mostly harmless gas upon meeting oxygen. with Ford Motor Co., The Boeing Co., Daimler AG and several Manufacturing newsletter at crainsdetroit.com/getemail. The result is a machine that operates free of toxic water- others. and oil-based coolants. Liquid nitrogen costs 6 cents per — Dustin Walsh

COURTESY OF 5ME LLC 20140407-NEWS--0012-NAT-CCI-CD_-- 4/4/2014 10:35 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS April 7, 2014 Focus: Advanced Manufacturing Fanuc America Corp. Rochester Hills company creates arc-welding robot to keep small manufacturers competitive SME connects all those lobal demand for industrial ro- Fanuc bots reached an all-time high America’s G in 2013 — and it shows no sign arc-welding of slowing down. robot who are passionate Despite the shaky economies of Europe and North America’s new footing, sales shot up 5 percent last year and up 12 percent since 2010, about making things that according to the International Feder- ation of Robotics. The question is, as manufactur- improve our world. ers continue to invest in technology, are small manufacturers missing out on the automation boom? Fanuc America Corp. in Rochester Hills thinks so, and it created an entry-level arc-welding robot to boost productivity for the private- At SME, we are making the ly held manufacturers that can’t invest like mega-corporations. future. Together. In November, Fanuc introduced its Arc Mate 0iB robot at the sme.org Fabtech trade show in Chicago. The robot is smaller and less ex- COURTESY FANUC AMERICA CORP. pensive than Fanuc’s traditional models, but it offers the same technology, said Mark Scherler, director of Fanuc Ameri- ca’s materials joining segment. “We’ve always maintained high- quality, reliable Scherler robots, but never for the entry-level price,” Scherler said. “Now we can give those markets advanced manufacturing capabilities that we typically only provided to larger manufacturers.” The base price for the Arc Mate 0iB is $45,000, roughly 20 percent cheaper than its other models, Scherler said.

As manufacturers continue to invest in technology, are small manufacturers missing out on the automation boom?

The robot is equipped with sensors to ensure accurate welds on every part, which is monitored through a Web-based tool. The Arc Mate is faster and more reliable than manual welding tech- niques used at many small shops, Scherler said. While automation is a con- tentious issue among laborers, Scherler said using robotics can lower manufacturing costs and create more jobs in the long term. “We’re targeting smaller automotive suppliers and general industry customers who have hesi- tated using robotics or automation because of cost,” Scherler said. “If we can get this into smaller manufacturers and have them au- tomate more processes, they can be competitive and we can bring more manufacturing back to the U.S.” — Dustin Walsh 20140407-NEWS--0013-NAT-CCI-CD_-- 4/4/2014 10:37 AM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 13 Focus: Advanced Manufacturing Eagle Ottawa LLC To trim industry waste, supplier reclaims scraps to create a leather alternative single cowhide creates square feet of composite leather enough leather for 12 NCAA material for the industry annually. A basketballs or one automotive “We achieve a lot of the same bucket seat. characteristics of leather, but it’s However, as much as 15 percent less dense offering customers a of leather from each hide is mass reduction,” Surbrook said. scrapped and, typically, disposed “What we’ve done is find a clever in a landfill. In the industry, they way to add coatings to make the call this waste stream. product durable and make it look Auburn Hills-based Eagle Ottawa and feel like genuine leather.” LLC, the largest automotive leather Where vinyl is typically used on supplier in the world, recently the sides and headrests of leather launched a process to recycle the seats, the Natalle product can be scrap hide into a traditional leather used everywhere, including the alternative for the auto industry. seat itself, Surbrook said. Eagle Ottawa began designing Surbrook said the Natalle product the process, which was created by PHOTOS BY DAVID HALL/CDB At the Eagle Ottawa plant in also has brand potential for au- England-based Rochester Hills, cowhide rests (left) tomakers looking to market the use E-Leather Ltd. for between drying and coating of sustainable materials without the aviation in- treatments, and is showcased (above) sacrificing the characteristics of dustry, in 2011. in leather swatches after paint and leather. The idea was to perforation work. The supplier is launching the create a viable, product on an entry-level vehicle eco-friendly pro- Video: Read Dustin Walsh’s March 6 blog about Eagle Ottawa and how leather lines. The end result is a fab- later this year. Eagle Ottawa has duct for cus- leather is hardly a hidebound business, crainsdetroit.com/video ric that matches “genuine” leather two customer contracts, which tomers looking much closer than vinyl does in weren’t revealed due to contract for leather alter- was increasing, and some of the into a knitted base through the touch and texture, Surbrook said. requirements. Surbrook natives, said luxury carmakers were looking process of hydroentanglement, Eagle Ottawa invested $3 mil- The Natalle line will contribute Steve Surbrook, for alternative materials to vinyl which uses pressure and water to lion into its plant in Rochester $5 million to Eagle Ottawa’s bot- vice president of innovation at Ea- on entry-level models. transform fibers into a nonwoven Hills to build its Natalle recycled tom line in 2014, but is expected to gle Ottawa. E-Leather reuses the leather material. composition leather line. reach $50 million over the next five “Customers weren’t asking for scraps by using them as a base for Eagle Ottawa then finishes the The 330-foot Natalle line is the years and represent 5 percent of it, but we saw an opportunity,” new composite material. The product with the same painting and first of its kind in automotive and the company’s $1 billion revenue. Surbrook said. The price of leather scraps are shredded, then turned coating materials used on its is capable of generating 22 million — Dustin Walsh Your Helping Hand for Acquiring Equipment in Michigan At TIP Capital, we work hands-on Are You a True Michigander? with our customers to provide Test Your Knowledge With These Facts! flexible, easy-to-use equipment What is the Acronym used to remember the names of the five Great Lakes? financing programs to fit your • What registered vehicle does Michigan rank business and budget. at #1 in the United States? • For more than 15 years, Michigan businesses have selected What is the highest point in Michigan? Michigan-based TIP Capital to finance equipment ranging • from tools and technology to security systems to energy How many Naonal Forests does efficient building upgrades such as lighng retrofits. Michigan have? We finance all equipment Michigan manufacturers • need to maintain and grow their businesses. Do you know what city Michigan’s soil is named aer? Our reputaon in the equipment leasing industry precedes • How many lighthouses does Michigan itself as TIP Capital was recently named by the leasing have within the state? publicaon, Monitor Daily, as one of the Top 25 • Independent Leasing Companies in the United States. How many states have a longer shoreline than Michigan? Discover how TIP Capital’s equipment financing programs • can benefit your business. Contact Chris Herman at What “public places” does Michigan 248.593.3947 or cherman@pcapital.com today! have the most of in the United States?

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Page 14 CRAIN’S DETROIT BUSINESS April 7, 2014

Register for classes today! Focus: Advanced Manufacturing Henkel AG Adhesives speed production of composite materials, open doors to more contracts lternative materials to steel, aluminum and magnesium are A on the rise in manufacturing, specifically automotive manufacturing. The Chevy Corvette and BMW, for example, feature carbon fiber. Yet carbon fiber, fiberglass and Automation Alley other materials that offer stronger, lighter alternatives have limitations — mainly cost and production speed. A sheet of carbon fiber can take as long as a day to cure, a short- coming in the just-in-time mass- production philosophy of the automotive world. At Oakland University Engineers at the North Ameri- can headquarters of Henkel AG & Co. KGaA in Madison Heights un- Offering affordable training for digital design covered a way to speed things up. A variation of Henkel’s aviation and manufacture of the future. bonding adhesives can be used to www.automationalley.com/plmcenter create faster production of new composite materials. COURTESY OF HENKEL AG 248-648-4701 Using a modified resin transfer Henkel AG’s high-pressure resin transfer molding system is intended to work molding machine, Henkel can faster than traditional production of lightweight composite materials. Oakland University OU INC shoot its Loctite Max Series One Golfview Lane | Rochester, MI 48309 polyurethane adhesive, instead of nior application national AG is using the Loctite epoxy, at an increased rate, boost- engineer for product to supply fiberglass leaf ing production time. Henkel’s adhe- springs for the Daimler Sprinter in Much of the epoxy-based carbon sives steering Europe. fiber or fiberglass applications for unit. “There Other automakers and suppliers Product Lifecycle Management Center automotive have been used in hasn’t been any- are investigating the viability of thing to take small-production models due to Henkel’s product. time limitations. But Henkel’s Loc- production to tite product can allow manufactur- the 100,000 unit The only thing holding the ers to go after more mass-produced (vehicle plat- process back is the price of materials, but Roslinski said as prices of contracts. Roslinski forms) or be- “Composites have been held yond, but we’re carbon fiber continue to drop, sales back by getting to mass scale with pushing the envelope toward mass of Henkel’s adhesive product will a resin-based system using production.” grow. epoxy,” said Kevin Roslinski, se- German supplier Benteler Inter- — Dustin Walsh Learn trends in advanced manufacturing at Big M Advanced manufacturing is a place about innovation and tech- news release. complicated process. What better nology,” Debbie Holton, SME’s For more information, visit way to understand the newest in- managing director of industry sme.org and click on “events.” novations than experiencing them strategy and events, said in a — Dustin Walsh firsthand? The Society of Manufacturing Engi- neers’ The Big M event at Cobo Cen- ter on June 9-12 will showcase the latest in manufacturing trends to educate industry leaders and educators. The exhibit space at The Big M event will host live manufacturing operations to showcase advanced technologies and processes, such as cybersecurity, advanced materials, 3-D printing and modeling. FINANCIAL SOLUTIONS The showcase is designed to educate attendees on the changing BUILT ON GENERATIONS OF TRUST manufacturing landscape. The conference sessions will feature speakers from General Electric • Insurance Co., Ford Motor Co., Steelcase Inc., Siemens AG, Dow Chemical Co. and • Employee Benefits more. Attendees can also tour South- • Retirement Planning east Michigan plants, such as Gen- eral Motors Co.’s Chevy Volt plant, the Comau SpA robotics research 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 and development center, and oth- A Member Firm of M Financial Group. ers. Registered Representative with M Securities: “The Big M communicates a Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. strong message to the market- LoVasco Consulting Group is independently owned and operated. 20140407-NEWS--0015-NAT-CCI-CD_-- 4/4/2014 10:47 AM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 15 Focus: Advanced Manufacturing Not making money now? ‘Better check your business plan’

In 2012, Michigan’s manufactur- the industrial personal property end of the year, you’re going to re- ways to better the processes. The facturers didn’t know how to ex- ing output totaled $66.2 billion, up tax. We need a “yes” vote in Au- think new equipment. suppliers are part of the creativity port. That’s changing. There were from $58.2 billion in 2009, accord- gust to eliminate the burden. This is a real opportunity to get of the maker. They need to keep grants available, and we’ve held a ing to the National Association of We’re trying to get the message rid of a very onerous and old tax. coming up with new ideas. number of classes. We’ve seen a lot Manufacturers. Those numbers il- out to everyone that new taxes One thing they learned during of manufacturers begin exporting lustrate how the state’s manufac- won’t arise from its elimination, Equipment has always been a sta- the recession is that they can run and taking advantage of the new turing is on a strong upward that it’s covered with a redirection ple of manufacturing, but advance- lean, and they will continue to markets and new customers glob- trend, as auto suppliers and others of the use tax and being paid for by ments in automation and efficiency work their costs. Robotics is a way ally. seek to keep up with customer or- the elimination of the tax loop- make it even more important today, to get costs back quickly, and At the federal level, we still ders and find new talent. holes. correct? we’re seeing more and more of ro- need to do something to be more Crain’s manufacturing re- Manufacturers hesitate to buy All of manufacturing is turning botics use down the chain. competitive with our tax struc- porter, Dustin Walsh, spoke about new equipment because of the tax. into advanced manufacturing at ture. We continue to have the the state of the state’s manufac- It’s a never-ending tax. If you’re this point. You can’t compete any What are the national and global is- highest corporate tax — and it’s turing industry with Chuck Had- going to pay sales tax on the equip- other way. The manufacturers are sues facing the industry? not helping Michigan’s manufac- den, president and CEO of the ment, then get the PPT tax at the asking their suppliers for creative In Michigan, many of our manu- turing base. Lansing-based Michigan Manufac- turers Association.

What’s the general health of manufacturing in Michigan? It’s never been healthier than it is right now. Manufacturers that survived the recession, they lost some competitors. If you’re not making money right now, you have to check your business plan. This has been a good time for Michigan, its manufacturers and workers. There’s a lot of overtime Keep your business being put in right now. heading in the What is the biggest bottleneck to contin- right direction. ued success? Talent. It just isn’t there to meet the needs. I have people who don’t have ma- Q&A chines running because they Chuck Hadden, can’t find the Michigan right talent to Manufacturers operate them. Association It’s nobody’s fault. Who wanted to go into manufacturing in 2008 when the bottom was falling out? There weren’t any jobs, the pipeline dried up, and now we need to restock it again.

What can manufacturers do to solve that problem? There’s a variety of issues out there, but they need a plan. Some Treasury Management from FirstMerit Bank of them are doing apprenticeship programs, some are reaching out When John talked to FirstMerit Bank’s Treasury Management team, his goal in K-12 programs, and others are paying students to work for them was to increase his company’s working capital. Together, they came up with a while they are in college. There are a lot of ways to get tal- plan to help John effectively manage receivables, control payments, and improve ent. There’s a creative way at Grand Rapids Community College his company’s overall cash flow. Now John has all the tools he needs to keep his where students work during the day and go to school at night. The business moving in the right direction — forward. students are being paid to work, and the manufacturers are paying for their college. I think it is a good model that others can learn from. There are four or five companies that are doing it in Grand Rapids, but the others haven’t caught on. We’re seeing a community college offer a welding class, get only five students sign up and then cancel the TO LEARN MORE, CONTACT: class. Companies need to work PJ Danhoff, Treasury Management Sales Officer, with the colleges and find students 248-293-3016 pj.danhoff@firstmerit.com outside of the normal areas to fill at or . these programs. Follow the latest market trends firstmerit.com Are there regulation or taxation is- @firstmerit_mkt sues slowing growth? Member FDIC Yes. I think the other big impact 2411_FM14 we’re working on is the change to 20140407-NEWS--0016-NAT-CCI-CD_-- 4/4/2014 11:08 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS April 7, 2014

CRAIN'S LIST: LARGEST ENGINEERING COMPANIES Ranked by number of local engineers Company Total number of local Local licensed Revenue Revenue Address engineers engineers ($000,000) ($000,000) Rank Phone; website Top executive(s) Jan. 2014/2013 Jan. 2014/2013 2013 2012 Engineering disciplines Tata Technologies Ltd. Warren Harris 625 NA $376.0 B $376.0 Automotive, aerospace, construction and heavy equipment 1. 41050 W. 11 Mile Road, Novi 48375-1302 president and COO 620 NA (248) 426-1482; www.tatatechnologies.com Ghafari Associates LLC Yousif Ghafari 525 57 125.6 110.3 Civil, conveyor, electrical/controls, industrial, manufacturing, mechanical, 2. 17101 Michigan Ave., Dearborn 48126 chairman 496 54 packaging, paint process, process product, quality, structural (313) 441-3000; www.ghafari.com Altair Engineering Inc. James Scapa 507 NA NA 238.0 Product design research and engineering, industrial design, simulation-driven 1820 E. Big Beaver Road, Troy 48083 chairman and CEO 428 NA design, program management, product development and test, software 3. (248) 614-2400; www.altair.com engineering, computer-aided engineering, high-performance computing, information technology, enterprise analytics, data management, business analytics FEV North America Inc. Patrick Hupperich 450 C NA NA NA Engine development, transmission and driveline, powertrain integration, vehicle 4. 4554 Glenmeade Lane, Auburn Hills 48326-1766 president and CEO NA NA development, electronics/controls, telematics/infotainment, value engineering, (248) 373-6000; www.fev.com test systems Rapid Global Business Solutions Inc. Nanua Singh 418 6 74.9 64.5 Automotive, aerospace and general engineering services; product design and 5. 31791 Sherman Drive, Madison Heights 48071 president and CEO 375 5 development, finite element analysis and computational fluid dynamics (248) 589-1135; www.rgbsi.com engineering services Geometric Americas Inc. Michael Pelkey 248 NA NA 94.0 Industrial engineering, product design, packaging, tooling, product life-cycle 6. 50 Kirts Blvd., Suite A, Troy 48084 president 225 NA management, computer-aided design, computer-aided manufacturing products (248) 404-3520; www.geometricglobal.com and services Ricardo Inc. Thomas Apostolos 200 NA 60.7 55.3 Vehicle, powertrain, transmission, hybrid and electronic controls design and 7. 40000 Ricardo Drive, Van Buren Township 48111 president 200 NA engineering (734) 397-6666; www.ricardo.com URS Corp. Robert Vensas 168 37 61.1 58.4 Mechanical, electrical, structural, civil, plumbing/fire protection, water/ 27777 Franklin Road, Suite 2000, Southfield vice president and office 158 32 wastewater, transportation, environmental and communications 8. 48034 manager, Michigan (248) 204-5900; www.urscorp.com ESG Automotive Inc. Steve Polakowski 167 NA NA NA Consulting and benchmarking, electrical system development, system 9. 1391 Wheaton, Suite 700, Troy 48083 president 146 NA integration, test and verification, diagnostic and technical services (248) 246-2220; www.esg-usa.com Black & Veatch James Coyle 149 NA 192.8 171.0 Mechanical, electrical, instrumentation and controls, civil/structural, chemical, 10. 3550 Green Court, Ann Arbor 48105 senior vice president 148 121 wastewater, telecom (734) 665-1000; www.bv.com Danlaw Inc. Raju Dandu 142 NA 58.0 30.0 Vehicle telematics for insurance and fleet vehicle electronics design and 41131 Vincenti Court, Novi 48375 chairman and CEO 135 NA manufacturing, engine control unit communications and diagnostics, embedded 11. (248) 476-5571; www.danlawinc.com software development, automotive software testing and verification, hardware in the loop testing, software in the loop testing BAE Systems Inc. Mark Signorelli 140 0 NA NA Provide technology solutions, systems integration capabilities, flexible 34201 Van Dyke Ave., Sterling Heights 48312 vice president and general 120 0 manufacturing capabilities and integrated logistics support throughout the 12. (586) 795-2220; www.baesystems.com manager, combat vehicles product life cycle; engineering and prototype facility has development labs and vehicle assembly bays for combat vehicle and weapons system assembly, integration and testing Meritor Inc. Ike Evans 110 NA 3,701.0 4,418.0 Axle, brake and suspension solutions to original equipment manufacturers and 13. 2135 W. Maple Road, Troy 48084 chairman, president and 110 NA the aftermarket for the transportation and industrial sectors (248) 435-1000; www.meritor.com CEO Jacobs Engineering Group Inc. Steve Arnette 104 13 170.0 160.0 Scientific and specialty consulting, as well as all aspects of engineering and 30800 Telegraph Road, Suite 4900, general manager and vice 104 14 construction, and operations and maintenance 14. Bingham Farms 48025 president (248) 633-1440; www.jacobs.com Eicher Engineering Solutions Inc. Chris Theisen 100 3 10.0 8.0 Computer-aided design, computer-aided engineering, prototyping, staffing, high- 23399 Commerce Drive Suite B-8, Farmington director of business 80 5 performance computing 15. Hills 48335 development (248) 478-0134; www.eicherengineeringglobal.com RedViking D Randy Brodzik 98 4 NA NA Mechanical, software, controls, computer, electrical and manufacturing 16. 46247 Five Mile Road, Plymouth 48170 president and CEO 96 4 engineering (734) 454-0500; www.redviking.com Tetra Tech of Michigan PC James Rydquist 95 48 42.4 41.2 Water and wastewater, environmental, instrumentation and controls work, 17. 65 Cadillac Square, Suite 3400, Detroit 48226 vice president 91 48 design/build projects, stormwater, combined sewer overflow elimination and (313) 964-0790; www.tetratech.com transportation Daifuku Webb Holding Co. Brian Stewart 94 4 556.0 487.6 Designs, engineers, installs and supports integrated material handling systems 18. 34375 W. 12 Mile Road, Farmington Hills 48331 chairman, president and 106 3 such as baggage handling, conveyor, storage and retrieval systems (248) 553-1000; www.daifukuwebb.com CEO Conestoga-Rovers & Associates Inc. Scott Adamowski 80 56 28.0 24.0 Environmental, geotechnical, civil, wastewater, energy 19. 14496 Sheldon Road, Suite 200, Plymouth 48170 vice president 54 44 (734) 453-5123; www.craworld.com Orchard, Hiltz & McCliment Inc. John Hiltz 76 46 25.3 20.2 Civil, architectural, survey, construction, environmental, water, transportation (OHM Advisors) president 63 42 20. 34000 Plymouth Road, Livonia 48150 (734) 522-6711; www.ohm-advisors.com IBI Group Todd Hoisington 70 31 11.2 15.0 Civil, structural, mechanical, electrical, transportation 21. 25200 Southfield, Suite 200, Southfield 48033 office manager 70 30 (248) 936-8000; www.ibigroup.com Link Engineering Co. Roy Link 70 5 74.0 72.0 Manufacturer of testing systems and provider of commercial testing services 21. 43855 Plymouth Oaks Blvd., Plymouth 48170 chairman and CEO 60 5 (734) 453-0800; www.linkeng.com Hubbell, Roth & Clark Inc. George Hubbell 64 56 19.6 19.6 Civil engineering, wastewater and combined sewer overflow collection/ 555 Hulet Drive, P.O. Box 824, Bloomfield Hills president, chairman and 65 57 treatment, water treatment/distribution, structural engineering, road and bridge 48303-0824 CEO engineering, traffic engineering, environmental engineering, watershed 23. (248) 454-6300; www.hrc-engr.com management, architectural services, electrical engineering, geographic information systems, construction services, surveying, materials testing, easement/right-of-way services Sidock Group William Sidock 63 30 13.6 11.5 Civil, structural, architectural, interior design, landscape, electrical, mechanical, 45650 Grand River Ave., Novi 48374-1351 president 60 27 process piping, environmental, chemical, instrumentation and controls, tank 24. (248) 349-4500; www.sidockgroup.com inspection, crane engineering, 3-D design and rendering, cost estimating, scheduling, valve engineering, LEED SmithGroupJJR Inc. Jeffrey Hausman 61 30 163.0 166.6 Civil engineering, electrical engineering, mechanical engineering, structural 500 Griswold St., Suite 1700, Detroit 48226 Detroit office director and 56 36 engineering, drainage and hydrology engineering, forensic engineering, site 25. (313) 983-3600; www.smithgroupjjr.com Carl Roehling engineering, soils engineering president and CEO

This list of engineering companies is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. B Company estimate. C DGE Inc. became a subsidiary of FEV North America after FEV GmbH acquired the Rochester Hills-based company in May 2013. D RedViking merged with SuperiorControls Inc. in February 2014. LIST RESEARCHED BY BRIANNA REILLY 20140407-NEWS--0017-NAT-CCI-CD_-- 4/4/2014 10:51 AM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 17

IRS: McLaren Health Plan Enhancing Michigan’s Quality of Life ACEC Michigan: Award Winning Engineering & Surveying Projects

may lose 501(c)(3) status Top Award Winners:

BY JAY GREENE strengthen the language that con- CRAIN’S DETROIT BUSINESS stitutes a nonprofit health plan. “There is nervousness” about Flint-based McLaren Health Plan whether the IRS will also begin to faces the possible loss of its scrutinize 501(c)(4) health plans, 501(c)(3) tax-exempt status after re- which could subject them to feder- ceiving a letter last month from al and state income and insurance the Internal Revenue Service telling taxes, Murdock said. the 15-year-old health mainte- “We are putting together a pack- nance organization that it may no age to reform Michigan insurance longer qualify. code,” Murdock said. “It is some- While McLaren officials declined thing we didn’t do as part of the to discuss the reasons that its Blue Cross Blue Shield of Michigan West Bay County Wastewater Treatment Plant Kalamazoo River Bank Stabilization > 144,000-member health plan could (conversion into a mutual insur- Improvements > Fleis & VandenBrink Engineering Fleis & VandenBrink Engineering lose its 501 (c)(3) status, Doug Man- ance company in 2013), but we Wastewater Treatment Facility upgrades saved West Bay Advanced surveying methods and laser technology cino, McLaren’s lawyer from Los need to update the code.” County millions of dollars while providing a sustainable saved this global manufacturing headquarters from Angeles-based Hunton and Williams Any update of the insurance design with increased plant capacity for years to come. imminent danger caused by an eroding bluff. LLP, said the HMO would appeal code, however, would require leg- any revocation or simply refile as a islative action. “We are talking Other Award Winners: 501(c)(4) tax-exempt entity. with several potential sponsors,” Mancino said he had a “wide- Murdock said. ranging discussion” with the De- Chapter 35 of the state insurance troit IRS audit team last week. “I code, which governs HMOs, also think they began to see our view as needs to be changed to “level the to why the plan should remain ex- playing field” with Blue Cross, he empt and c3,” he said. Mancino ex- said. Mackinac Island CHASS Southwest Center > Blue Water Bridge I-94 & Sargent Road pects a final decision to be made by Changes are likely to include Wastewater Treatment Harley Ellis Devereaux Plaza Inspection Booth Interchange > the first week of May. streamlining the premium rate and Plant Improvements > Expansion > HH Engineering / Fishbeck, Thompson, HNTB Michigan G2 Consulting Group “We told them that McLaren provider contract filing process, Carr & Huber, Inc. Health Plan is more than 80 percent permitting HMOs to provide ser- Medicaid, and they should be ex- vices to self-funded employers and ACEC oI Michigan numbers nearly elite Òrms throughout the state, empt under the relief-of-poverty affording HMOs flexibility in de- engaged in engineering/architectural/surveying works that propel the state’s benefit, a policy the national IRS of- signing benefit packages. economy, and enhance and safeguard Michigan’s quality of life. Are you working with an ACEC Òrm" fice has long recognized,” he said. Jay Greene: (313) 446-0325, Most nonprofit HMOs in Michi- [email protected]. Twitter: @jay- 517. 332.2066 > acecmi.org gan — including Health Alliance bgreene Plan, HealthPlus and Blue Care Net- work — are 501(c)(4) organizations. HAP lost its 501(c)(3) tax-exempt status in 2004. Several other HMOs are for-profit companies, including Meridian Health Plan and Molina Health Plan. The chief difference between a 501(c)(3) (public charity or foundation) and a 501(c)(4) (social welfare organization) is that the former entity is allowed to extend federal and state tax deductions for charitable donations. Another difference is that 501(c)(3) organizations are not allowed to engage in political activi- That’s our commitment to you. ties, whereas 501(c)(4) entities are. Kevin Tompkins, vice president of marketing for McLaren Health From traditional tax and accounting services to lean System, said the recent proposed manufacturing design, Rehmann has the seasoned revocation letter from IRS to the wisdom and industry experience essential to deliver health plan came out of a routine audit of the 11-hospital system. focused solutions. “We don’t agree with that pro- Our commitment to excellence shows: In a recent posed position at all,” Tompkins said. “We want to understand survey, we achieved a 98 percent overall satisfaction more about their thinking.” rating from our manufacturing clients. Crain’s Legal experts told that a Contact me today to learn more. private letter ruling released March 21 by the IRS appears similar to the facts surrounding the proposed revocation of the 501(c)(3) status of McLaren Health Plan. “You do not meet the community benefit standard because you primarily operate to benefit your member enrollees and not the com- Garrett Klein, CPA, CGMA munity as a whole,” the IRS said in Principal | Manufacturing Group Leader its letter to the unidentified HMO. 248.614.6436 McLaren Health Plan had operated as a 501(c)(4) until 2012, when [email protected] it acquired CareSource of Michigan, a 501(c)(3) HMO created in 1996 by several qualified health centers. It filed the merged entity with the IRS as a 501(c)(3); the letter is in re- 20 locations in Michigan, Ohio, Florida and Indiana sponse to that filing. Rick Murdock, executive direc- rehmann.com | 866.799.9580 tor of the Michigan Association of Health Plans, said the association has begun an effort to update the state’s insurance code to further 20140407-NEWS--0018,0019-NAT-CCI-CD_-- 4/4/2014 11:01 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS April 7, 2014 Worth the weight loss Programs combating obesity expect to gain under Obamacare as covered patients lose

BY JAY GREENE Healthy Michigan program over mont Health System, Henry Ford CRAIN’S DETROIT BUSINESS the next several years. Health System, St. Joseph Mercy Health System, St. John Providence Weight-loss outpatient clinics Health System, Botsford Hospital and emphasizing healthy diets and Hospital programs University of Michigan Health System. bariatric surgery hospital pro- “Not only will Detroit Medical Cen- Dearborn-based Oakwood Health- grams in Michigan stand to be big ter see an uptick in (obesity-related) care is expanding its bariatric Quality Fabrication Services winners under the Affordable Care services, but all surgery and weight loss program Act with improved insurance cov- hospitals” will with physicians to provide more erage for services and procedures. generate more comprehensive options for pa- SINCE 1989 With 31.1 percent of the state’s business, de- tients, said Daniel Bacal, M.D., population considered obese, pending on what medical director of the Oakwood Michigan has the 10th-highest per- health insurance Bariatric Program. centage of obese people in the na- plans they pur- Bacal said it is unclear how many tion. Louisiana is first with 34.7 per- chase, said Don newly insured patients will seek cent. At 31.4 percent, Indiana is the Gulish, program bariatric surgery or nutrition coun- only Midwestern state higher than manager of ser- seling services under health reform. Michigan, according to the U.S. Cen- SERVICES FABRICATES Gulish vice line devel- “Oakwood is ready to help these ters for Disease Control and Prevention. opment with newly insured patients,” said Ba- Michigan insurance experts pro- Harper University Hospital, which is cal. “Some of these plans require a ject that up to 1 million people will part of the eight-hospital DMC. • Welding (Mig, Tig) • Stainless, Alum., Steel very high deductible, so it is un- either purchase private insurance Other hospital-based systems in clear if that may ultimately dis- under the Affordable Care Act’s Southeast Michigan with weight courage patients to seek medical or expanded benefits or gain Medic- loss, diet, nutrition counseling and • Shearing • Weldments aid coverage through the state’s bariatric programs include Beau- See Next Page

• Press Brake Bending • Guarding

• Saw Cutting • Machine Bases

• CNC Laser Cutting • Handrails

• Tube / Pipe Bending • Platforms

• Sheet Metal Rolling • Staircases

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April 7, 2014 CRAIN’S DETROIT BUSINESS Page 19

From Previous Page said Gulish. “They are referred to cent more on health care costs — Medical Weight Loss Clinic and put more than $7,100 more per year — surgical treatment for weight loss.” on a diet. After they complete the than people of normal weight, the Average costs for bariatric ser- prerequisites, they are sent back to Ann Arbor-based center said. vices, depending on the type of pro- us for cardiac clearances.” Marla Kaminsky, owner of West cedure, range from $18,000 to $30,000. However, some patients will take Bloomfield-based Diet Center, said Insurance coverage also depends on off enough weight during the diet she opened the 1,200-square-foot the amount of deductibles and coin- program that bariatric surgery is center in January to capitalize on surance, or the percentage amount a not required, Gulish said. health reform and the increasing patient pays against charges. A weight-loss program normally use of worksite wellness programs. Gulish said the Harper Bariatric includes people attending regular “It is becoming more common Medicine Institute, which conducted meetings, eating prescribed foods that insurance is covering weight about 350 bariatric surgeries last and taking nutritional supple- loss programs,” said Kaminsky, year, projects a 5 percent to 10 per- ments. adding that she is a preferred cent increase this year from health provider for Detroit-based Health reform, a recovering economy and a Medical Weight Loss Clinic Alliance Plan Advantage members. referral contract with Southfield- opened its 34th center in Royal based Medical Weight Loss Clinic Inc. Oak earlier this year. The clinic of- “Losing weight is preventive fers patients customized programs care, and it costs employers and based on individual needs and insurers less money when some- Outpatient clinics uses common food purchased from one takes responsibility for their Last month, DMC and Medical grocery stores or farmers markets, health,” Kaminsky said. Weight Loss Clinic signed an Paull said. The Diet Center, a franchisee of agreement to refer patients to each “We are projecting anywhere the 57-center national chain based other. Patients who purchase ser- between $15 million to $16 million in Akron, Ohio, has 40 clients and vices at Medical Weight Loss Clin- in revenue this year,” Paull said. projects to have more than 100 by ic will be able to seek consultation “We had a little dip last year after the end of the year, Kaminsky said. with DMC’s bariatric surgeons. grossing $16 million in 2012.” Besides the Diet Center, nation- “This is the first health care sys- al chains like Weight Watchers and tem partnership in Medical Obesity screening Jenny Craig Weight Loss Center also Weight Loss Clinic’s nearly 30- have a variety of clinics in South- year history,” said David Paull, Under the Affordable Care Act’s east Michigan. the company’s president. 10 essential benefits, insurance The Medical Weight Loss Clinic, Gulish said DMC also will use companies that sell ACA-compli- which employs nearly 200, also Medical Weight ant products on or off the health- projects to grow over the next sev- Loss Clinic ser- care.gov marketplace must cover eral years from the DMC contract, vices to fulfill obesity screening and nutritional health reform and ongoing clinic insurance com- counseling, said Bryan Cole, direc- expansion, Paull said. pany require- tor of product development with Paull said the 28-year-old compa- DETROIT JUNE 9-12, 2014 ments that pa- Flint-based HealthPlus of Michigan. ny invested in a new information tients seeking Michigan requires additional technology system and introduced bariatric benefits that include physician-su- an updated menu developed with surgery prove pervised weight loss services, Cole patient feedback. The menu in- medical necessi- said. cludes lean proteins such as veni- ty by first suc- Obese individuals with a body son and quinoa. Paull cessfully com- mass index of 35 or greater are at Just as the nutritional industry pleting a six-month to one-year increased risk of diabetes, cardio- and individuals’ needs have weight-loss program. vascular disease, hypertension evolved over time, so must the “Patients who want surgery meet and cancer, according to a Janu- company, Paull said. with a surgeon who explains (the ary report by the Center for Health- Jay Greene: (313) 446-0325, EXPLORE ADVANCED weight-loss) process” and then take care Research & Transformation. [email protected]. Twitter: pre-surgery medical health tests, Obese patients also spend 50 per- @jaybgreene MANUFACTURING OPPORTUNITIES

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Page 20 CRAIN’S DETROIT BUSINESS April 7, 2014 Small investors making inroads, impact in Detroit CBD’s office building market

BY KIRK PINHO deploy their capital and time into CRAIN’S DETROIT BUSINESS downtown Detroit,” Jim Ketai, managing partner of Bedrock, said Roger Basmajian has quietly in an emailed statement to Crain’s. started putting his fingerprints on “The amount of investment is Detroit’s central business district not as relevant as the intentions of in the last nine months with the the people behind the investment.” purchase of three office buildings. With the downtown purchases now under his belt, he is just one of Upgrades ahead the smaller investors whose deals Tom Carleton David Carleton real estate experts say are key in- Basmajian has spent about $2.7 dicators of the CBD office market’s million on his buildings, located at investor dipping his toes in the rebound. 607 Shelby St., 751 Griswold St. and CBD market. Basmajian’s Class B office build- 220 W. Congress St. Tom and David Carleton, part- ings, which total 104,000 square feet, “My background is in architec- ners with Detroit-based media firm also offer a glimpse into what small- ture, so I’ve always been enam- Mindfield Inc. own the 30,000-square- er players can do to spur invest- ored with these gorgeous build- foot building at 1250 Library St. and ment and redevelopment in a mar- ings we have downtown,” he said. the 25,000-square-foot Grand Army ket currently dominated largely by “In the last few years, we saw a lot of the Republic Building, at 1942 one owner: Dan Gilbert. of good signs that things were on Grand River Ave. “They are the perfect comple- the uptick, and we thought it Sean Emery, a partner with ment to (Gilbert’s) Bedrock (Real would be a good time to start Mindfield, is also an owner of the Estate Services LLC) because they jumping in.” GAR Building, which was built in will pour their heart and soul into He paid $1.31 million for the 1899 and which the Carletons and their investments, and they will 50,000-square-foot Shelby Con- Emery bought for $200,000 in No- determine where the needs are gress Building in November, ac- vember 2011. The Carleton brothers and where the demand is,” said cording to Washington, D.C.- purchased the Library Street build- Matt Lester, founder and CEO of based real estate information ing in 1992 for $120,000. Bloomfield Township-based Prince- service CoStar Group Inc. In Octo- Mindfield will occupy the top ton Enterprises LLC, which last year ber, he paid $570,000 for the 35,000- two floors of the GAR building, entered the CBD office market square-foot Sterling Building on while the second and third floors with its purchase of the 177,000- Congress Street. In May, he will be for office tenants. The square-foot Grand Park Centre bought the 19,000-square-foot Olde ground floor will be for restaurant Building at 28 W. Adams St. Building on Griswold for $800,000, tenants, The Republic Tavern and the “We are always excited when in- he said. Parks and Rec Diner. vestors of any size are willing to Basmajian isn’t the only smaller The GAR Building and the Li- brary Street building are their only properties, but the Carletons don’t rule out future investments downtown. “I think development like that becomes a bug,” David Carleton said. “Once you’re bitten, you al- A timely, responsive ways half keep an eye out where other opportunities are. I don’t think we’d walk away from anoth- CPA is critical er opportunity to create a development of our own sort of scale.” Similarly, Basmajian ventured into Detroit building investment after working on deals in Ferndale At ShindelRock, we know that your business and Royal Oak. demands your full attention. Waiting for advice He was one of the forces behind persuading Buffalo Wild Wings to related to a tax matter or failing to meet filing open a restaurant in one of his deadlines won’t work. The team of CPAs at downtown Ferndale buildings when the area was sorely lacking ShindelRock provide our clients with responsive in economic development and va- information they can rely on. That allows our cancy rates were as high as 40 percent, Basmajian said. clients, like ER-One, to focus on the important Basmajian, a University of Michi- things, like providing fast, quality service in the gan graduate with degrees in business and architecture, founded Emergency Department, and saving lives. Southfield-based Basco of Michigan Inc. — eerily on Sept. 11, 2001, no "Mark and his team turn around less, according to state records — with his father, George. In addition our requests quickly and accurately. to its Detroit holdings, Basmajian I like knowing I am receiving timely said, Basco also has about 100,000 square feet under ownership in Mark Hughes, Partner and reliable information.” downtown Royal Oak and Fern- dale. The portfolio is valued at ~Tommi White, CEO, ER-One about $20 million, he said. Tommi White, CEO, ER-One Basmajian plans at least $7 million in renovations at his downtown buildings. The Congress Street building will receive $3 million in renovations. A renovation budget for the Shelby Street build- For tax planning and business advisory services ing has not yet been finalized, he for your growing business, call 248.855.8833 said. At 751 Griswold, Basmajian www.ShindelRock.com | 248.855.8833 plans $4 million in renovations 28100 Cabot Drive Ste. 102 | Novi, MI 48377 and improvements that would in-

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April 7, 2014 CRAIN’S DETROIT BUSINESS Page 21

COURTESY OF BASCO OF MICHIGAN INC. From Previous Page Renderings of the three buildings that Roger Basmajian has purchased in downtown Detroit in the past nine months: 220 W. Congress St. (inset), clude a restaurant on the first floor 751 Griswold St. (above) and 607 Shelby St. (below). and office space for tech companies above it. He also plans shared office space for startup companies and more traditional office space at 220 W. Congress, where a Sub- way restaurant has signed a lease, he said. Tenants are already in 607 Shel- by, where Basco is relocating its three employees into 2,500 square feet from Southfield. Common areas, bathrooms, elevators and the building’s upper floors are being updated, Basmajian said. Building blocks It can be a difficult journey for the smaller office investor. For example, Basmajian said his largest hurdle is financing his projects. Along with private investors, he is relying on historic preservation tax credits and is applying for Community Revitalization Pro- gram grants, he said. A.J. Weiner, executive vice president of the Detroit office of Jones Lang LaSalle, said other hurdles Employment Law Experience sometimes include a lack of a proven redevelopment success story and property management ® background, and identifying the In Your Corner. right investment. “I think the second hurdle is finding the right match for a deal, whether it’s building size or con- ■ Facilitative mediator for U.S. District Court – dition, or a realistic seller,” he Western District of Michigan and Michigan Courts. said. Tom Carleton said the downtown ■ Arbitrator and mediator with National Arbitration market is becoming more competi- and Mediation, Inc., the American Settlement tive than it was more than two Centers and the National Arbitration Forum. decades ago, when he and his brother bought the 30,000-square- ■ In Your Corner. foot Library Street building. It has six residential lofts and other tenants including Vincente’s Cuban Cui- sine, Apigee Co. and Octane Design Inc., David Carleton said. “There is a healthy but limited stock,” Tom Carleton said. “It’s becoming a better marketplace for the people that are in it. “But the bad news is that it’s getting harder and harder and more expensive to get in, which will wean out some of the more boutique opportunities. Some are getting priced out of that because the market values are increasing.” Still, smaller buyers remain op- timistic. “I have a small niche, and I believe in what I do and that’s why I’m good at it,” Basmajian said. “I know where the future is, and it’s First Tier Ranking in Labor Law – Management in more urban settings.” Kirk Pinho: (313) 446-0412, ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing Contact Dick Hooker at [email protected] [email protected]. Twitter: @kirkpinhoCDB 20140407-NEWS--0022-NAT-CCI-CD_-- 4/4/2014 11:32 AM Page 1

Page 22 CRAIN’S DETROIT BUSINESS April 7, 2014 Energy Dept. to suppliers: Funds available for efficient-vehicle programs

BY GABE NELSON san, Tesla Motors and Fisker Auto- “People have been very appre- CRAIN NEWS SERVICE motive. Suppliers were always eli- ciative,” Davidson said. “They did- gible, but none secured funding. Today, we are presented with an n’t seem to realize that we were The U.S. Department of Energy Now, under Energy Secretary “ still open for business. Now they wants auto suppliers to know it Ernest Moniz, the program is be- opportunity to hit the accelerator on U.S. know: We are open for business.” still has $16 billion in low-interest ing overhauled to make it easier to The changes that Moniz an- financing available to support effi- fund production of technologies auto manufacturing growth. nounced include legal clarifica- cient-vehicle programs, and it ” tions to show that suppliers are eli- wants them to step forward for a such as lightweight materials, efficient engines and low-friction Ernest Moniz, U.S. Energy Secretary gible for the program, a promise to share of those funds. respond more quickly to appli- tires. The department’s lending au- cants and the creation of a new on- Moniz announced the program thority comes under the Advanced statement. “Today, we are present- view. He would not identify the line application portal. changes last week during a speech Technology Vehicles Manufactur- ed with an opportunity to hit the company. “We are pleased that the secre- to the Motor & Equipment Manufac- ing Loan Program, which Con- accelerator on U.S. auto manufac- Davidson said the department tary is reaching out to the supplier gress created in 2007. turers Association, a trade group turing growth.” has been making the rounds with industry,” Ann Wilson, vice presi- Early in the Obama administra- representing auto suppliers. One supplier is in active talks other suppliers to inform them dent of government affairs at tion, the Department of Energy “The U.S. auto industry has about a loan, Peter Davidson, exec- that the automotive program is not MEMA, wrote in an email. “We used the program to lend about evolved since the ATVM program utive director of the DOE’s Loan dormant — even though it hasn’t continue to believe that this is an $8.4 billion to Ford Motor Co., Nis- was established,” Moniz said in a Programs Office, said in an inter- approved a loan since March 2011. important program of which suppliers must be an integral part.” The program has had ups and downs. Tesla received a $465 million loan from the program in Janu- ary 2010 to launch the Model S electric sedan. The car’s warm reception has made Tesla a darling of investors, and the California- based company repaid its loan last year, nearly a decade ahead of schedule. But another of the Energy De- partment’s loans, for $529 million, was given to plug-in hybrid maker Fisker Automotive, which recently went through bankruptcy re- structuring. Fisker drew down $192 million before the department stopped providing funding to the struggling California company. The government recovered $53 million of those funds in Fisker’s bankruptcy proceedings, which culminated in the sale of the company to Chinese auto-parts conglomerate Wanxiang Group. The ATVM program was created in 2007 with firm backing from environmental and labor groups. Environmentalists saw the program as a way to put cleaner cars on the road, while labor groups viewed it as a way to spur investment in U.S. manufacturing. The department received $25 billion in lending authority. To qualify for a loan, a company would need to contribute to vehicles that are 25 percent more efficient than equivalent vehicles made in 2005. Davidson said the DOE is clarifying that even if a component is sometimes used in vehicles that don’t meet that standard, it will still consider a loan, and will simply prorate the loan amount to reflect the components used in eligible vehicles. Roland Hwang, director of the transportation program at the Nat- ural Resources Defense Council, said environmental advocates used to worry that suppliers would receive funding for parts that were used to make cars more powerful — not more efficient. But now that stricter fuel economy standards are in place, he said, those concerns have dissipated. He praised the DOE’s plans. “We’re increasingly seeing suppliers shoulder a heavier burden in meeting these new fuel economy standards,” Hwang said. “They’re facing increasing demand for these components and bottleneck situations in terms of their capacity. Focusing on suppliers seems like a very appropriate use for this program.” From Automotive News 20140407-NEWS--0023-NAT-CCI-CD_-- 4/4/2014 11:18 AM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 23

PEOPLE

EDUCATION LAW Chris Nemeth to senior director of so- SERVICES cial enterprise, Forgotten Harvest, IN THE SPOTLIGHT Kimberly Coots to president, RCS In- Oak Park, from regional manager, ternational Inc., Livonia, from vice St. Frances Cabrini Clinic, Detroit, Hibu Inc., Novi. has named Kelly Herron executive president. director. She had been project REAL ESTATE manager for TECHNOLOGY Early Childhood Henry Argasinski to vice president, Donald Stilwell to vice president of Investment property management, Liberty Proper- sales and business development, Corp., Lansing. ty & Asset Management LLC, Troy, the Saphran Solutions Inc., Franklin Vil- Herron, 43, property management arm of L. Ma- lage, from product lifecycle manage- succeeds son Capitani, from senior property ment account manager, Tata Tech- Sister Mary manager. nologies Inc., Novi. Rasor Janicki Ellen Howard, Mikalonis Berger who will retire Robin Rasor to managing director of this summer Lisa Rycus Mikalonis to partner, Rad- licensing, University of Michigan Tech after 19 years er, Fishman & Grauer PLLC, Bloom- Transfer, Ann Arbor, from director of field Hills, from partner, Sommers Herron as executive licensing. director. Schwartz PC, Southfield. Greg Janicki to director, Broad Execu- Kimberly Berger to principal, Miller, tive Weekend MBA, Michigan State Before working at Early Childhood Canfield, Paddock and Stone PLC, De- University, Troy, from executive direc- Investment, Herron was director of troit, from senior attorney; Marc tor, marketing and communication, recruitment and mission Swanson to principal from associate; Original Equipment Suppliers Associ- integration at the Society of St. and Eric Bartley to principal, Miller ation, Troy. Vincent de Paul in Detroit and an Canfield, Troy, from associate. administrator for worship and Jennifer Garofalo to director of call ENGINEERING Christian service at St. Columban center operations, 1-800-LAW-FIRM Roman Catholic Church in PLLC, Southfield, from call center su- Michael Park to senior project manag- Birmingham. pervisor, Sedgwick Claims Manage- er, Giffels Webster Engineers Inc., De- ment Services Inc., Southfield; Kevin She received a master’s degree in troit, from project manager, Somat O’Connor to director of marketing and Engineering Inc., Detroit. Also, Mark pastoral studies from Sacred Heart sales, from consultant, Independent Lloyd to lead planner, from communi- Major Seminary, Detroit, and Marketing Solutions LLC, Shelby ty development director, city of studied clinical pastoral education Township; and Larry Snider to busi- Inkster, and Jim Renshaw to senior at Beaumont Hospital in Royal Oak. ness development officer, from presi- engineer, from freelance engineer, At- dent, LIS-ETS Inc., West Bloomfield. lanta, Mich.; and Justin Wellman to senior project manager, Birmingham of- Loan Servicing LLC, Fort Washing- NONPROFITS fice, from engineer, city of Royal Oak. ton, Pa.; Zahira Gonzalvo to first vice president, operational risk manage- FINANCE ment office, from operational risk director, Ally Financial Inc., Detroit; and Ken Creech to first vice president, enterprise data warehouse department, from business solution manager, global business services, IBM Corp., Southfield. Marianne Lilly to partner, ShindelRock, Novi, from senior manager. HOSPITALITY Andre Rodriguez Haithco Nichols to regional Cheryl Haithco to vice president of de- kitchen manager, velopment, Big Brothers Big Sisters of de Movellan Myers Team Schostak Metropolitan Detroit, Detroit, from de- Christopher de Movellan to director, Family Restau- velopment director, Japhet School, Angle Advisors-Investment Banking rants, Livonia, Clawson. LLC, Birmingham, from global busi- from assistant Carlynn Nichols to chief clinical offi- ness development manager, King Par general manager, cer, The Children’s Center, Detroit, LLC, Flushing. Bar Louie, Roch- from director of children’s initiatives, Cindy Myers to chief human resources ester Hills. Detroit Wayne Mental Health Author- officer, Flagstar Bank, Troy, from Jacob Williamson ity, Detroit. vice president, human resources, to executive chef, Christina Holman to director of inte- RGIS LLC, Auburn Hills; Russ Fowlie Rodriguez Wolfgang Puck grated marketing and mail, Salvation to executive vice president and direc- Steak and Wolfgang Puck Pizzeria & Army Eastern Michigan Divisional tor of mortgage servicing, from vice Cucina at MGM Grand Detroit, from Headquarters, Southfield, from direct president, loss mitigation, Ocwen chef de cuisine. marketing manager.

BUSINESS DIARY Exceptional Leadership. ACQUISITIONS & MERGERS Arbor and planning to hire more than NEW SERVICES 50 people. Website: xanedu.com. GreenPath Inc., Farmington Hills, a The Work Department, Hamtramck, a Delivered. nationwide nonprofit consumer credit Dickey’s Barbecue Restaurants Inc., communication design and develop- counseling agency, dba GreenPath Dallas, is opening a Dickey’s Barbecue ment studio, launched a new website Debt Solutions, acquired Consumer Pit location at 41700 Garfield Road, for Mt. Elliott Makerspace, Detroit, a Credit Counseling Service of Greater Clinton Township. Telephone: (586) neighborhood workshop. Website: San Antonio, San Antonio, Texas. 286-4400. Website: dickeys.com. mtelliottmakerspace.com. Website: greenpath.org. VendTek Wholesale Equipment Inc., MOVES Wixom, a wholesale distributor of Michigan’s CONTRACTS Berline Group Inc. moved its head- vending machines, launched its In- Casadei Steel Inc., Sterling Heights, quarters from 70 E. Long Lake Road, ventory Management website, specif- Premier was awarded the structural-steel and Bloomfield Hills, to 423 N. Main St., ic to using vending machines to con- miscellaneous-metals contract to con- Royal Oak. Website: berline.com. trol and manage inventory levels and Retained struct the U.S. Army Corps of Engi- Flagstar Bancorp Inc. relocated its costs. Website: specialtyvendingsys neers Special Operations Forces Bat- Rochester Hills branch from the Wal- tems.com. Executive talion Operations Center at Fort Mart store at 2500 S. Adams Road to Gameplans LLC, Rochester Hills, a hu- Bragg, N.C., for the project’s general 2744 S. Adams. Website: flagstar.com. man resources firm, expanded its ser- Search Firm contractor, Archer Western Ltd., At- vices to include customer engagement lanta, Ga., a subsidiary of the Walsh NEW PRODUCTS forums, strategic plan alignment and business process design, and Group. Website: casadeisteel.com. Con-way Freight Inc., Ann Arbor, a launched a new website. Website: Over 100 years less-than-truckload carrier and sub- gameplansllc.com. EXPANSIONS sidiary of Con-way Inc., announced of combined the deployment of Drive Safe Systems, experience. XanEdu Publishing Inc., Ann Arbor, a STARTUPS producer of print and digitized custom a suite of technologies designed to LLC course materials for educators, stu- enhance safety performance and oper- Strome Actuarial Services opened at dents and bookstores, is consolidating ating efficiency of the 15,000 profes- 31313 Northwestern Highway, Suite International Executive Search its Michigan and Kentucky operations sional drivers operating the compa- 114, Farmington Hills. Telephone: Tel: +1.248.645.1551 • www.huntergroup.com into its Ann Arbor headquarters, in- ny’s 8,600-truck fleet. Website: (248) 461-3620. Website: stromeactuari vesting more than $1 million in Ann con-way.com. al.com. 20140407-NEWS--0024-NAT-CCI-CD_-- 4/4/2014 11:21 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS April 7, 2014

CALENDAR

TUESDAY company global. Automation Alley, WEDNESDAY SERMetro-Detroit Jobs for Progress Troy. $20. Contact: Tonya McNeal- Inc., University of Michigan, UM- CRAIN’S M&A AWARDS APRIL 8 Weary, (313) 363-4075; email: APRIL 9 Dearborn Center for Arab American [email protected]; website: Studies. A day of discussion intended Join Crain’s Detroit Business and Leadership Detroit Class XXXVI Infor- mafedetroit.org. Member Orientation. 8-10 a.m. Au- to engage the Arab-, African-, Asian- the Association for Corporate mational Breakfast. 8:30-10 a.m. De- tomation Alley. Assure that your or- and Hispanic-American communities. Growth – Detroit Chapter 5-9 p.m. ganization is getting everything it can With keynote speaker Edward James troit Regional Chamber. Learn about Women on the Move SE — Motivating April 16 for the Crain’s M&A the chamber’s Leadership Detroit out of its Automation Alley member- Olmos, actor and activist; Heaster Awards, honoring companies and Others ... and Yourself! 6-7:30 p.m. Info- ship; session will provide a compre- Wheeler, assistant CEO, Wayne Coun- class, the application process and pro- rum. With Marilyn Opdyke, Inforum executives in the following hensive overview of benefits and ser- ty; Sayed Badreya, actor, producer, gram benefits. PNC Bank Top of Troy, member and owner and principal con- categories: Best Small Deal of the vices. Automation Alley, Troy. filmmaker; Suheir Hammad, poet, au- Troy. Free. Contact: Dan Piepszowski. sultant, Opdyke Consulting Group Inc., Contact: (800) 427-5100; email: thor, political activist; Matthew Year, Best Large Deal of the Year, (313) 596-0315; website: detroitcham taking a look at the latest research on [email protected]; website: Dealmaker of the Year – Adviser, ber.com/ld. motivation and how one can use it to Seeger, dean, College of Fine, Perform- automationalley.com. ing and Communication Arts, Wayne Dealmaker of the Year – keep focused during transition. Buyer/Seller and Lifetime Opdyke will focus on the key elements State University; and Frances Kai-Hwa Grow Global: Doing Business Interna- behind motivation identified in Daniel Wang, writer, activist, lecturer at the Achievement. Select award tionally. 9 a.m.-noon. Michigan Associ- Pink’s book Drive: The Surprising THURSDAY University of Michigan. Byblos Ban- winners will share best practices ation for Female Entrepreneurs. Truth About What Motivates Us. APRIL 10 quets, Dearborn. $125; $100 each, group and inside stories from their top Learn about doing business in Canada Brightwing, Troy. Free. Contact: (877) of five or more; $35 student. Contact: deals. and other international markets and 633-3500; email: womenonthe Embracing Diversity, Empowering (313) 910-1955; email: imagesandper The event takes place at the [email protected]; website: Troy meet with trade experts who will [email protected]; website: info Communities. 8:30 a.m.-4 p.m. NAACP, Marriott, Troy. The title sponsor is share tips and resources for taking a 3dconsults.com/images.html. rummichigan.org. Radius of Arab American Writers, Honigman Miller Schwartz and Cohn LLP, Detroit. Tickets are $75 for ACG members or nonmembers in groups of 10 or more, or $80 for individual sales to nonmembers. For ticket information, call Kacey Anderson at (313) 446-0300, email her at [email protected], or visit crainsdetroit.com/events. Join the conversation with #crainsma. UPCOMING EVENTS What Are Investors Looking For? 11:30 a.m.-1 p.m. April 23. Automation Al- ley. With Thomas Anderson, Automa- tion Alley senior director, discussing First Place Now proud how businesspeople can position themselves to get attention from key investors. Anderson oversees Au- tomation Alley’s technology business accelerator programs, helping entre- Bank. to be Talmer preneurs obtain external reviews of their technology and business plans by experts and mentors from respec- While our name may be different, the tive technology fields. Automation Al- Bank and Trust. ley Detroit Office, Detroit. $10 in ad- names of the people who take care of vance, $20 at door. Registration closes April 21. Contact: (800) 427-5100; email: you, and the personalized service they [email protected]; website: provide, are still the same. So is our automationalley.com.

strong commitment to this community. M-1 Light Rail, Blight Removal and Ur- ban Farming — Moving Detroit For- ward. 11:30 a.m.-1:30 p.m. April 30. De- In fact, the name “Talmer” is a tribute troit Economic Club. With Matt by the Bank’s two principals to their Cullen, president and CEO, Rock Ven- tures LLC and M-1 Rail; John Hantz, grandfathers (named Talmage and president and CEO, HantzGroup Inc.; Merzon), who both dedicated their and Glenda Price, co-chair, Blight Re- moval Task Force; moderated by Tom lives to community service. Walsh, business columnist, Detroit Free Press. The featured leaders will discuss the latest updates and sustain- What’s more, Talmer Bank, just like ability effects of their respective projects. Westin Book Cadillac Detroit. First Place, is a Midwest-based $45 DEC members, $55 members’ community bank—and one with guests, $75 nonmembers. 11:30 a.m. speaker reception open only to board, demonstrated ﬁnancial strength. So life and gold members. Contact: De- troit Economic Club, (313) 963-8547; you can count on us to take care of email: [email protected]; website: your business needs for many years econclub.org. to come. CALENDAR GUIDELINES Please stop by soon. You’ll quickly If you want to ensure listing online discover that we’re now an even greater and be considered for print publication in Crain’s Detroit asset to your community. Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, click “Submit Your Entries” from the drop-down menu that will appear and you’ll be taken to our online submission form. Fill out the form as instructed, and then click the “Submit event” button at the bottom of the page. That’s all www.talmerbank.com | 855-882-8824 there is to it. More Calendar items can be found on the Web at www.crainsdetroit.com. 20140407-NEWS--0025-NAT-CCI-CD_-- 4/4/2014 5:03 PM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 25 HandyLab founders hit milestones in their new companies

BY TOM HENDERSON pany plans to double employment Esperion and DeNovo are headquarters of an inch by half an inch, CRAIN’S DETROIT BUSINESS this year. quartered in the Michigan Life Sci- containing a total of 56,000 small “Jeff and Sundu are two of the ence and Innovation Center in Ply- chambers. Sundaresh Brahmasandra and best serial entrepreneurs I’ve mouth Township, an incubator Circulating tumor cells in the Kalyan Handique, the founders of worked with in 15 years as a ven- owned by the Michigan blood, which Ann Arbor-based HandyLab Inc., ture capitalist. They really know Economic Development have been went their separate ways after the this market,” said Jim Adox, a Corp. Roger Newton, Jeff and Sundu shed by the medical device company was sold managing partner at Venture In- Esperion’s founder “ primary tu- for $275 million in 2009. vestors. He was at Ann Arbor- and chief are two of the mor, are rare Separate, but similar. based EDF Ventures in 2000 when it technology of- and have been Last week, both hit dramatic Brahmasandra Handique became the first investor in ficer, was an best serial difficult to de- milestones in the growth of their HandyLab. Adox was the compa- early angel tect, even Plymouth Township-based DeNovo new companies, both of which ny’s first CFO. investor in though they Sciences Inc., was to be in San entrepreneurs make bench-top devices for fast After HandyLab was sold, DeNovo. are much big- Diego taking the company’s first and early detection of diseases. Williams was recruited as CEO of Handique I’ve worked ger than most product orders at the American As- On Tuesday, Ann Arbor-based Ann Arbor-based Accuri Cytometers joined the blood cells. sociation for Cancer Research, NeuMoDx Molecular Inc., where Inc., which made a desktop device company as with in 15 DeNovo helps which attracts about 18,000 atten- Brahmasandra is president, an- to help researchers do cell analy- president and detect the nounced it had closed on a Series dees. sis. After Accuri was sold for $205 CEO in 2011. years as a presence of B venture capital round of $21 mil- DeNovo first achieved notice in million in 2011, Williams and He said DeNovo, early-stage tu- lion, led by Pfizer Venture Invest- 2011 when it won $500,000 as the Brahmasandra were reunited at which employs seven, venture capitalist. mors by ments of New York City, the in- winner of the Accelerate Michigan Life Magnetics Inc., a UM spinoff has raised $3.3 mil- catching vestment arm of Pfizer Inc., and Innovation contest; its devices de- They really know that was the first tenant of the tech lion, including the some of the joined by three Ann Arbor in- tect early-stage cancer by trapping incubator on the school’s north Accelerate Innova- circulating vestors, Arboretum Ventures LLC, cancer cells floating in blood. this market. campus research complex. tion award and $2.8 tumors in the Venture Investors LLC and the The devices, which don’t need ” Life Magnetics hoped to market million in angel in- blood. Wolverine Venture Fund of the Uni- regulatory approval from the U.S. Jim Adox, Venture Investors a device that could detect a single vesting. It takes versity of Michigan’s Ross School of Food and Drug Administration be- bacteria cell by measuring the Handique said lo- about six min- Business. cause they are being sold to re- change in velocity of tiny magnet- cal venture capital- utes to run That is one of the largest rounds searchers, will cost between ists are aware of DeNovo’s blood through the glass plate and of venture capital for a state com- $75,000 and $85,000, depending on ic beads in a magnetic field, but in progress, but he has held off on ex- about two hours to analyze the re- pany in recent years. The money is the model and its capabilities. 2012, Williams and Brahmasandra changing more equity for capital. sults. intended to fund further product Handique said he hopes to gen- decided the cost and time to get to He said if sales go as expected, he Helping Handique sell devices development and the clinical trials erate revenue this year of $500,000, market were too much, and the in San Diego will be a peer-re- needed to get regulatory approval which will fund the clinical trials company was killed. might be able to fund growth out viewed research paper published for the company’s devices, which needed later this year or next to The two then formed NeuMoDx of revenue. International involve RNA- and DNA-based as- get approval to sell to hospitals and got a Series A round of $5 mil- The company has eight patents this month in the says for fast and accurate detec- and other medical facilities to di- lion led by Arboretum. pending and has trademarked two Journal of Oncology. A joint pro- tion of genetic disorders, cancers agnose patients. brand names for its devices. The ject by DeNovo and Tucson, Ariz.- and a wide range of communicable Patents pending Jetta will retail for about $75,000 based Ventana Medical Systems Inc., diseases. ‘Serial entrepreneurs’ and the VanGuard for about a member of the Swiss-based Roche According to Brahmasandra, DeNovo was founded in 2010 by $85,000, he said. Both are about the Group, the paper documents the the company hopes to be in the Former HandyLab CEO Jeff two former interns at Esperion Ther- size of large breadboxes. speed and accuracy of DeNovo’s market in 24-26 months. He de- Williams is the CEO at NeuMoDx. apeutics, Priya Gogoi and Chris At the heart of the technology is devices. clined to say how much a device The company employs 13, many of Siemer, and one of Gogoi’s former a small glass slide through which Tom Henderson: (313) 446-0337, will likely sell for. them former HandyLab employ- classmates at Eastern Michigan Uni- blood is drawn. Each slide has two [email protected]. Twitter: On Saturday, Handique, CEO of ees. Brahmasandra said the com- versity, Saedeh Sepehri. rectangular areas about three- @tomhenderson2

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Page 26 CRAIN’S DETROIT BUSINESS April 7, 2014 Barra: Those who have been on hot seat review her D.C. visit ■ From Page 3 Arts who teaches crisis communication. “She has managed to humanize this and be responsive. She came across She’s been extremely calm and “ thoughtful. She hasn’t gotten an- as in control and gry — even though the questions in some cases have been politically thoughtful and not motivated.” Staying calm is critical. As the reactionary. I think old Dry Idea antiperspirant ads implored, “Never let them see you we should sweat.” Throughout Barra’s perfor- all try to mance, she was calm and poised. emulate She didn’t rise to any baiting, either in her language or in her com- that. ... posure, said Jeff Caponigro, founder of Southfield-based crisis But she management firm Caponigro Public Relations Inc. trended “I liked her body language,” he explained. “You want to look like dangerously close to you are under control. Don’t look like you’re fidgety. She didn’t do not enough passion anything that looked defensive or nervous, especially when the legis- and outrage. lators might have started getting a ” little biting or cutting her off.” Leslie Lynn Smith, Caponigro BLOOMBERG TechTown Detroit also commended Mary Barra, CEO of General Motors Co., speaks with the media after testifying at a House Energy and Commerce Barra for not Committee hearing with Mark Reuss (right), president of GM North America. smiling, something that pointers. Primarily, he said, have “I loved how she kept a real kind bossy or firm? Milquetoast or com- yourself and your company brand. wouldn’t be in- key messages and try to stick to of pulse and pace to her presenta- passionate? Be authentic. Because for Smith, stinctive to them while still being authentic. tion and speaking,” she said. “She “For women, there is a narrow- for example, the New GM/Old GM CEOs unfamil- “The news conference after the came across as in control and er band of an acceptable band of argument was not effective — fe- iar with this testimony at the House, you could thoughtful and not reactionary. I leadership,” Temin said. “In a cri- male or not. kind of hot seat. tell that her team talked to her and think we should all try to emulate sis, that band gets smaller and “I was not 100 percent comfort- “It was inter- said, ‘Let’s wrap this up with three that. She did it better than most I’ve smaller and smaller. You have to able with that strategy,” she said. Caponigro esting because key messages: No. 1, that we’re sor- seen. But she trended dangerously negotiate being human and real “It’s easy to Monday morning there were times when the legisla- ry; No. 2, that we’re dedicated; No. close to not enough passion and and authentic.” quarterback, but it’s not like they tors complimented her or said 3, that we’ll be transparent.’ ” outrage.” For Seeger, being a woman CEO hired her three months ago from something that in a normal situa- Her performance fell flat in Of course, while maneuvering worked to Barra’s advantage. “It Toyota. She was a high-powered ex- tion you clearly would have said, places for Leslie Lynn Smith, pres- the technical and human details of allowed her to immediately dis- ecutive on that side of the shop.” ‘Thank you,’ and smiled,” he said. ident and CEO of TechTown Detroit, a massive recall and public specta- tance the company from its tradi- For Caponigro, the real litmus “You could tell she was coached who has had to deliver her fair cle, Barra also has the additional tions,” he said. “It allowed her to test is whether Barra came across that if you smile, chances are there share of bad news to boards of di- notoriety of her gender. As the credibly communicate that this is as a leader, a CEO and someone will be a still photograph of that in rectors. Smith wanted a bit more first female CEO of a very male- a different company. This is not you trust. a newspaper or website, complete- passion and outrage, a commit- dominated industry, watchers the old GM.” “I think she did that,” he said. ly out of context.” ment to solve the problem — not from all corners wanted to see how Of course, even experts dis- Amy Haimerl: (313) 446-0416, Still, if Caponigro were coach- just investigate. But she appreciat- she would maneuver the power dy- agree. So when thinking about [email protected]. Twitter: ing Barra, he would have had a few ed Barra’s calm presence. namic. Would she come across as what to do in a crisis, be true to @haimerlad

Transit: Federal funds, new offer could end transit center dispute ■ From Page 1

December after Grand/Sakwa did- ving force,” he own money, not just federal dollars. our own position about the center. transit center, meaning the only n’t respond. Oakland County Cir- said. Other is- But Greene said where the money It was very clear then that there available funding source could be cuit Judge Leo Bowman dismissed sues include to acquire the land comes from is was support from a diverse group federal transportation grants the case on Feb. 21 because the ap- hours of opera- not relevant to Grand/Sakwa. of companies and advocacy awarded for the center, Slater said. praisal was based on land valuation for the tran- groups.” A $1.05 million offer should get tions in 2010, when the transit site sit center and But that agreement also called council support, the mayor said, was still undeveloped. how bus traffic The road to court for the transit center land to revert because it falls within the estimat- The new appraisal reflects 2014 would affect the The transit center and Grand/ to Grand/Sakwa by June 2010 if ed $1.85 million in federal funds land values and the $6.3 million shopping center. Sakwa development have been tied the city hadn’t funded a transit Troy has been told is available for transit center that was substan- A 2008 report together from the beginning. center project by then. a land acquisition. tially completed last fall. Greene submitted to Under the terms of a 2000 court The city and neighboring Birm- Slater said he has been having If the developer takes the offer, Troy officials es- agreement, Grand/Sakwa trans- ingham had lined up several fund- discussions with Gary Sakwa and the city reacquires land that the timates more than 160 buses could ferred title on 2.7 acres of the ing sources by that time, to collabo- he expects those talks to continue. Michigan Court of Appeals found had enter and leave the transit center sprawling Midtown Square proper- rate on the center, which straddles So far, he and Greene said, the two reverted to Grand/Sakwa owner- each 24-hour day — but Troy Di- ty southwest of Maple Road and the border of those cities. But Birm- have not delved into specifics. ship in June 2010. Then, presum- rector of Economic and Communi- Coolidge Highway to Troy in 2001 in ingham withdrew its support in “Whether the company would ably, Troy can open the center that’s ty Development Mark Miller said exchange for obtaining the rezon- 2011; Troy and Grand/Sakwa had accept less than the fair market been sitting dormant for months. that information is dated. ing it needed to develop the project. contrasting views about what value, either to be a good citizen or If the offer is rejected or goes “There’s just a laundry list of is- “There was a real conscientious “funding” the center meant, and resolve those other nonfinancial unanswered, both sides can expect sues that were important to us that effort on our part to reach out to the developer took the city to court. issues, is something that hasn’t to be back in circuit court for never got resolved. We’ve got a $75 Grand/Sakwa to address any con- Last May, the Michigan Court of been decided yet,” Greene said. round two of condemnation before million shopping and (residential) cerns, and make sure the center Appeals agreed with Grand/Sak- “But where the money comes the end of the month. center we spent a lot of time and would be an asset to the site and wa. The state Supreme Court de- from is not really relevant. What is City Attorney Lori Grigg Bluhm money on, and we want to make not a detriment in any way,” said clined to revisit the opinion in No- relevant is coming up with a settle- said negotiations have been ongo- sure to protect its use,” Greene Michele Hodges, president of the vember after construction on the ment that’s fair and reasonable to ing, which Alan Greene, a partner said. Belle Isle Conservancy who was center had largely wrapped. both sides, and is acceptable to at Detroit-based Dykema Gossett A source knowledgeable about president of the Troy Chamber of Troy and the property owner, and PLLC and attorney for Grand/Sak- both sides of the negotiations told Commerce at the time the center resolves all these concerns or as wa, and Troy Mayor Dane Slater Crain’s that Gary Sakwa, obtained federal funds and council Talks gear up many of them as possible.” confirm. But Greene said what the Grand/Sakwa co-founder and man- support. Meanwhile, the Troy City Coun- Chad Halcom: (313) 446-6796, land is worth is only one issue. aging partner, does not want to set- “We also reached out to our own cil is opposed to using any city [email protected]. Twitter: “Money’s not necessarily the dri- tle unless Troy puts up some of its membership on how to come to budget funds to repurchase the @chadhalcom 20140407-NEWS--0027-NAT-CCI-CD_-- 4/4/2014 5:05 PM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 27 Fishing: Spending up, but ecosystem shifts cast concerns in state ■ From Page 1 Good marketing is as important “We carry women’s gear, the sociation and operator of Termar as keeping up with demographics rods with smaller handles and Charters in Standish. and ecological change, said Anne clothing, but we’ve had trouble “Lake Huron used to produce a Vaara, executive director of the cracking that demographic,” In 2013, more than greater catch than Lake Michigan, Rochester Hills-based nonprofit In 2013, more than Schultz said. “Women are savvy 1.28 million fishing but when the salmon collapsed, shoppers; they don’t care about the Clinton River Watershed Council. licenses were purchased that was it,” Walsh said. “When “The promotion of our water re- from the state latest Simms shirt like men do.” the anglers leave, charter boat cap- sources, as beautiful as they are Department of Natural Schultz hopes the launch of an e- tains go out of business, motels now, really helps,” Vaara said. Resources, down from commerce website will expand the close, tackle shops close, marinas “People are looking for more and 1.4 million in 2000. shop’s clients and sales. The site is close. … A colossal amount of mon- more things to do outdoors, and expected to launch in the next 12 ey is permanently lost to the weeks, he said. fishing is pretty affordable, cer- lakeshore communities.” tainly more affordable than golf.” “The Internet has impacted us Charter boats brought in $1.1 The Clinton River, the 760- COURTESY SCHULTZ OUTFITTERS LLC all because now you can get gear million annually to Harrisville in square-mile watershed in Macomb, from anywhere,” Schultz said. northern Michigan on Lake Huron. Oakland, St. Clair and Lapeer coun- In 2013, more than 1.28 million The Detroit River and Lake Erie “People come to Schultz for the ties, was cited as the most polluted fishing licenses were purchased draw thousands of anglers each service, but we’ve also had to em- But the 35 charter boats that oper- river in the U.S. in the 1970s. But an from the Michigan Department of Nat- year, many to participate in vari- brace technology.” ated in its marinas are no longer expansive, decades-long cleanup ef- ural Resources, but that figure was ous fishing tournaments. there, Walsh said. fort, including work done by the down from 1.4 million in 2000. In August, Trenton will host the Great Lakes struggles The depleted salmon population watershed council, cleared the way Licenses range from 24-hour li- FLW Outdoors Bass Fishing League’s in Lake Huron has decreased li- for the river’s fishing future. censes to seasonal all-species li- Detroit River Bass Fishing Tourna- But the greatest challenge to the censed charter boat captains from The 1,000-member group now censes with specialized tags for ment, with a first-place prize of state’s multibillion-dollar fishing more than 900 to near 500 hosts family outings and fly-fish- lake sturgeon and muskellunge. $9,500. economy is ecological change statewide, Walsh said. ing classes to build use of the Clin- Michael Jones, professor and co- Lake Erie boasts several tourna- brought on by invasive species. Walsh ran 80 charters a season. ton River and its tributaries. director of the Quantitative Fish- ments, including the Great Wall- The zebra and quagga mussels, He now only runs 30 to 35 trips, he eries Center at Michigan State Uni- eye Tournament and the Great Promotional and educational ef- not native to the Great Lakes, have said. versity, said the decline in licenses, Lakes Largemouth Series. decimated Lake Huron’s charter forts by other nonprofits, govern- The DNR stocks Lake Huron even though active anglers are Despite fewer licenses, anglers boat fishing industry, which was ment-led groups and entrepreneurs with walleye, which have man- spending money, is a concern to are spending more money. Anglers dominated by salmon fishing. are working to keep anglers happy aged to thrive in Lake Huron. But and active on Michigan’s waters. the state’s recreational fishing in- spent $843 million more in 2011 The invasive species feed on the dustry down the road. than in 2006. Of all fishing-related plankton that lives in the water walleye don’t draw the anglers, “Fewer people are buying licens- expenditures in 2011, 46 percent or column. Since 2000, cladoceran Walsh said. Return on investment es and drifting away from recre- $1.1 billion was spent on equip- zooplankton, a dominant prey fish “There isn’t a port on Lake Huron But there must be fish to catch ational fishing; that worries us a ment, such as reels, rods, lines, etc. food source, has declined by more that doesn’t have a great walleye before anglers open their wallets. lot,” Jones. “We spend a lot of time Ypsilanti-based fly fishing shop than 90 percent, according to the fishery, but walleye aren’t a fighting Fish stocking led by the state en- in my field to see what’s causing Schultz Outfitters LLC, which has Great Lakes Fishery Commission. fish,” Walsh said. “The species sures that waters are flush with the that. It’s hard not to believe that been in operation since 2012, is Without the plankton, the makes all the difference; the macho big catch, keeping anglers on the people are becoming separated competing for those dollars. salmon’s primary food source, the fisherman, they came to Lake fish and spending at Michigan with the outdoors.” But fly fishing is a niche within alewife began to disappear as well. Michigan to catch salmon, not wall- shops, restaurants and hotels. sport fishing with national sales in The alewife was introduced to Lake eye.” The DNR Fisheries Division stocks Casting for customers 2011 totaling just $748.6 million Huron more than 150 years ago and Whelan said that while invasive approximately 40 million adoles- among 2,378 retailers, according to led to strong salmon populations species plague the Great Lakes, cent fish, including walleye, trout Sometimes the answer comes a study by Southwick Associates. when that species was introduced most anglers continue to seek pan- and salmon species, muskellunge down to a building a little buzz. Fly fishing sales make up a mere in great numbers in the 1970s. fish, perch, muskellunge and pike and others, at 800 locations across There have been fewer boat and 1.6 percent of overall fishing-relat- But by 2004, the alewife didn’t on Michigan’s inland lakes and the state to support the fishing in- slip rentals on Lake St. Clair in re- ed sales of $47.7 billion in the U.S. exist in strong numbers and could- rivers. n’t sustain a salmon population, dustry, said Gary Whelan, program cent years, leading to a reduction in For Schultz Outfitters, success “There will always be pressures tourism dollars for adjacent busi- has meant new strategies. Jones said. manager of the Fisheries Division. on our habitats, and we won’t al- nesses, said Greg Esler, the city of “The king salmon was the king As many as 40 percent of fish The shop took to Facebook and ways have self-sustaining popula- St. Clair Shores parks and recre- in Lake Huron, but when the caught in 2014 will come from Twitter to stay in contact with its tions, but cool (warm) water fish- ation director. customers and puts on events to ecosystem flipped, the fishing Michigan’s fish hatchery system, ing will continue to grow,” Whelan To boost revenue, St. Clair get money in the door. economy went into an upheaval,” Whelan said. said. “We have a lot to deal with Shores opened a private boat ramp Jones said. “When the most preva- The Fisheries Division will Last week, the shop wrapped its concerning climate change and in- on Nine Mile Road to the general second year of its weekly “Bar lent prey fish in the Great Lakes spend $9.4 million to operate the vasive species, but we’ve still got public in 2012. The result was an ex- Flies” series, which draws cus- disappeared, Lake Huron (fishing) state’s six hatcheries, where it wonderful resources that support tra $100,000 in boat ramp fees. tomers to Sidetrack Bar & Grille in Yp- went in the tank.” breeds fish to be released from mid- a large economy in Michigan.” March through September in But the boon came in April of silanti to learn to tie flies from high- There’s been a 74 percent drop Dustin Walsh: (313) 446-6042, Michigan waters. last year, when Bassmaster Maga- profile guides. Schultz charges in anglers fishing Lake Huron [email protected]. Twitter: “It’s a damn good return on in- zine named Lake St. Clair the top customers a $20 entry fee, which since 2004, said Terry Walsh, presi- @dustinpwalsh vestment,” Whelan said. “Most of bass fishing lake in the U.S. The goes directly to the tying expert, but dent of the Michigan Charter Boat As- our waters have self-sustaining fish ranking brought more anglers to then opens up the shop immediate- populations; we restock for a few Lake St. Clair and St. Clair Shores ly following to sell tying equipment different reasons, and sport fishing businesses, Esler said. and materials. is definitely one of them as it draws The city responded by hosting a “We created Bar Flies because large numbers to our lakes and bass tournament, Monster Quest 8, people get cabin fever, and not rivers.” on the lake. The tournament re- everybody likes to go winter steel- THINKSuccess Stocking of salmon, trout and ceived entries from North Caroli- head fishing,” said Mike Schultz, steelhead has already begun. na, Kentucky, Georgia and else- owner and fly fishing guide. “It’s Think Madonna Graduate School The Fisheries Division’s 160 em- where for the grand prize of fairly affordable and it benefits us, ployees manage roughly 58,000 $10,000. In total, 93 boats entered the bar and Ypsilanti; we keep square miles of water, more than the tournament, Esler said. everyone happy.” Alaska per employee, on a total St. Clair Shores’ restaurants and The shop is targeting more DISCOVER THE MADONNA DIFFERENCE! budget of $28.8 million for 2014. gas stations have benefited, and groups and corporate-sponsored Personal instruction in small classes developers are looking to add ho- guide trips, many down the Huron tels in the area, Esler said. River, Schultz said. Certificate, master’s and doctorate programs The economy of fishing The next bass tournament is Past corporate clients include Research opportunities t Expert professors Michigan has the third-largest planned for June. There are more Deloitte LLP and the Detroit Athletic Convenient online, on-campus and hybrid classes fishing economy in the U.S., behind than 1,000 bass fishing tournaments Club, Schultz said. Florida and New York. Roughly in Michigan in any given year. “The corporate outings are great Outstanding preparation for a doctorate 1.74 million anglers spent $2.5 bil- “Warm temperatures and lake for us and the clients,” he said. “It’s lion on fishing-related expenses in levels give us an advantage,” Esler a set cost, there’s no travel or lodg- AREAS OF STUDY 2011, according to the latest avail- said. “When (anglers) come into ing expenses; it’s a one-day deal #VTJOFTTt$SJNJOBM+VTUJDFt&EVDBUJPOt)VNBOF4UVEJFTt)JTUPSZt)PTQJDF able data from the U.S. Fish and town, they are amazed at how and more memorable than golf.” -JCFSBM4UVEJFT-FBEFSTIJQt/VSTJOHt3FMJHJPVT4UVEJFTt1TZDIPMPHZt5&40- Wildlife Service. many fish they can catch.” Schultz Outfitters is also target- Michigan also draws the second- Lake St. Clair, which is connected ing women, who are seeing in- APPLY TODAY! most nonresident anglers to its wa- to Lake Huron and Lake Erie by the creased numbers in the sport, May 1 deadline for some programs. ters, behind Florida. More than St. Clair River and Detroit River, re- Schultz said. He said his shop is 734-432-5667 t [email protected] 347,000 out-of-state anglers fished spectively, averages only 10 feet in taking more and more women on Michigan waters in 2011, spending depth, which creates the warmer guiding trips; however, they aren’t madonna.edu/grad /MadonnaUniversityGraduateSchool $326.3 million. waters that bass species prefer. spending in the shop. 20140407-NEWS--0028-NAT-CCI-CD_-- 4/4/2014 6:51 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS April 7, 2014 UM has small ambitions for Big House as major venue

The University of Michigan is in- The venue this Lease details have not yet been The soccer lease will be less than While the university may want terested in leasing its football sta- year will have disclosed. The UM board of regents $3 million but at least $1 million, more major events, it’s not active- dium for high-profile sporting hosted two major will vote on the lease. Brandon said. UM isn’t keeping ly marketing the stadium. events — but not too often. nonuniversity The National Hockey League leased any revenue from the game itself. “Fundamentally, we’re relying “We don’t want to take business sporting events. the stadium for $3 million for one Brandon said the plans for Au- on, and finding to be successful, risks on athletic events. We’re a Michigan Sta- month to stage the Winter Classic gust mark the first time the stadi- word of mouth and observation as nonprofit auxiliary unit of a public dium will host game between the Detroit Red Wings um has hosted an association soc- our marketing” for the stadium, university,” UM Athletic Director Manchester Unit- and Toronto Maple Leafs on Jan. 1. cer match. The deal includes a Brandon said. “As people out there David Brandon said. “We’re not in ed and Real The game drew 105,491. one-day liquor sales license and who are looking at promoting real- the business of being a promoter Madrid in the ex- Michigan Stadium’s normal ca- putting temporary real grass over ly large events at a really large sta- for outside events. We basically Brandon hibition Inter- pacity is 109,901 and its record at- the artificial football turf. dium, we hope they’ll talk to us. If lease out the stadium, provide oth- national Cham- tendance 115,109, set when UM “Soccer at that level needs to be it works, we’re certainly happy to er services in conjunction with the pions Cup on Aug. 2 in a deal beat Notre Dame in football last played on natural grass,” Brandon do it.” stadium.” announced Friday. September. said. — Bill Shea

Soccer: Stephen Ross looks to give big-time soccer leg up in U.S. ■ From Page 3 They see soccer as a moneymak- national television broadcasting the teams’ league seasons. er in the U.S., where the Fox net- rights along with corporate spon- “What we’re bringing is com- work has begun broadcasting the sorships and tickets. pelling. We can make these match- 2 powerful, popular teams English Premier League and Major The Fox network is paying Rele- es actually stand for something,” League Soccer continues to see at- vant Sports to televise the games Higgins said. “If the matches are tendance, ratings and market ex- domestically. Hong Kong-based more meaningful, players play score on financial playing field pansion. Catalyst Media Group, owned by RSE harder. The business side gets to “It was really Steve’s idea,” Hig- Ventures, is selling the rights put their brand in front of U.S. con- gins said. overseas, Higgins said. sumers in a meaningful way.” RSE Sports is paying the world’s million in operating income on Ross said last fall that he wants Irish beer giant Guinness is the The tournament will include 38 two most popular soccer clubs to $502 million in revenue in 2012. It a new MLS team for South Florida. title sponsor and Chevrolet the offi- of the top 100 players in the world. play at the Big House. also trades on the New York Stock The league folded the poorly at- cial car of the tournament. “Steve believes in doing every- The teams are financial jugger- Exchange under the ticket symbol tended Miami Fusion, which played General Motors Co. has a seven- thing best in class,” Higgins said. nauts. MANU. in Fort Lauderdale, in 2001 after year, $559 million jersey sponsor- The tournament comes on the Real Madrid, which plays home American billionaire Malcolm four seasons. The belief is that the ship deal with Manchester United heels of the World Cup, which ends matches at the 85,500-seat Estadio Glazer, who also owns the Tampa timing is better now for Miami. that begins this year. The tourna- July 13 in Brazil. Santiago Bernabeu, is the most Bay Buccaneers of the National Foot- Sun Life Stadium sits mostly ment will be the first matches for valuable soccer team in the world ball League, bought the controlling empty since the Florida Marlins of the team in the Chevy jerseys. — worth $3.3 billion, according to stake in Manchester United for Forbes.com. Major League Baseball moved to It was GM that approached UM Teams, attendance $1.5 billion in 2005. Forbes.com said the club had their own venue in 2012. The stadi- last year about hosting a match at Other teams in the tournament Manchester’s top player is $170 million in operating income um has hosted several soccer the Big House, Brandon said. include Liverpool and Manchester Wayne Rooney, who has scored on revenue of $650 million in 2012. 208 goals in 430 games. He signed matches that have attracted huge Higgins called GM’s involve- City of Great Britain’s Premier Ownership of the team is divid- a four-year contract extension in crowds, including Brazil beating ment in the tournament instru- League; AC Milan, AC Roma and Inter ed among more than 60,000 sup- Honduras 5-0 in front of 71,124 peo- mental to making it happen. Milan from Serie A in Italy; and porters who buy memberships February that will pay him $26 ple in November. “They’ve been a big driver of it,” Olympiacos from Superleague and elect a team president, who is million a year through 2019. he said. “Manchester United is a Greece. forbidden to invest his own mon- Beginning this summer, Chevro- How money is made big partnership, so this is a great In last year’s International Cham- ey in the club. let will become the primary spon- showcase.” pions Cup title game, Real Madrid Real Madrid has won 32 titles in sor of Manchester United’s jersey Relevant Sports contracts with Higgins said the July-August beat Chelsea 3-1 on Aug. 7 in front its league, Spain’s La Liga. logo, replacing Nike. It will pay $70 the association teams — that’s time frame was the only window of 67,273 at Sun Life Stadium. The team’s superstar is Cris- million to have the Chevy logo on what professional soccer teams available to have European teams The only U.S.-based team last tiano Ronaldo, who in September the team’s kit — as soccer uni- are called, as opposed to national play in the U.S. before their regu- year, the Los Angeles Galaxy of Ma- signed a five-year, $206 million forms are called overseas. teams — to play in the Internation- lar seasons begin. jor League Soccer, finished fourth. contract extension that runs General Motors Co., which sells al Champions Cup, Higgins said. To get genuine competition- Last year’s matches averaged through 2020. the Opel and Vauxhall brands in He declined to disclose how much quality play, the decision was 41,048 fans. Adidas pays the team about $40 Europe but not Chevy, has drawn the teams are paid. made to create an internationally The worst attendance in the U.S. million annually to sponsor its criticism for the sponsorship. jersey through 2020. Relevant Sports makes money broadcast tournament that also was 22,208 for Everton’s 6-5 shootout Man U has struggled on the The other team playing in Ann by selling the domestic and inter- could act as a training warm-up to victory over Juventus at San Fran- pitch this season and may not Arbor is Manchester United, which cisco’s AT&T Park on July 31. qualify for even the second-tier Overseas, Milan’s 2-1 victory has won 13 English Premier League championships since its 1992 Europa League tournament. It usu- over Valencia on July 27 drew ally plays in the far more visible 17,000 at Mestalla Stadium in Spain. launch and is second on Forbes’ list at $3.165 billion. European Champions League tour- That was the lone non-U.S. match nament. in last year’s tournament. This “Man U,” which plays at 76,000- — Bill Shea year, matches will be played en- seat Old Trafford, generated $144 tirely in the United States. The tournament replaces a simi- business school are splitting $200 Ross began his career as a tax at- PLATINUM STANDARD lar series of preseason exhibition million that Ross pledged to the torney with the Detroit office of FRACTIONALCTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PPROGRAMS.ROGR games played in the U.S. from 2009 university in September. His name Coopers & Lybrand, which later be- SERVING ALL SOUTHEASTERN MICHIGAN. to 2011: the World Football Challenge. also is on the 6,000-student Stephen came PricewaterhouseCoopers. For the Ann Arbor game, VIP M. Ross School of Business. presale tickets kick off April 7. The Ross earned an accounting de- general public can buy tickets, gree from Michigan in 1962 after Red-tape delays which start at $45, beginning at transferring from the University of The Big House game was briefly 8:30 a.m. Thursday via MGoBlue. Florida, followed by a law degree advertised on the tournament’s com/tickets. from Wayne State University in 1965 website in February, garnering More comprehensive ticket and a master’s of law degree the some local media attention, but the packages will be sold through In- next year from New York University. information was quickly taken ternationalChampionsCup.com. He is chairman and majority down. owner of The Related Cos. LP, the All of the other venues were an- real estate development firm he nounced months ago. Brandon Ross: A Michigan (money) man founded in New York in 1972. said the delay in getting a deal Having a match played in Ann Forbes estimates Ross’ worth at worked out at Michigan was due to Arbor is an added bonus for Ross. $4.4 billion. the internal approvals required — “Stephen Ross is quite passion- He’s a Detroit native who grew and working out the many logisti- ate about Michigan,” Higgins said, up in Miami Beach and lives today cal details. noting that Ross’ cellphone ring- in New York. His uncle was the Bill Shea: (313) 446-1626, CORPORATEEAGLE.COM tone is “The Victors.” late Max Fisher, the noted Detroit [email protected]. Twitter: The athletic department and philanthropist and industrialist. @bill_shea19 20140407-NEWS--0029-NAT-CCI-CD_-- 4/4/2014 6:51 PM Page 1

April 7, 2014 CRAIN’S DETROIT BUSINESS Page 29 Crittenton: Hospital to lease cancer center in deal www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] geons interested in referring can- ed two medical groups, including a Cancer Institute last year. at the Crittenton-based center. ASSOCIATE PUBLISHER Marla Wise, (313) 446- 6032 or [email protected] cers to an analytic center” that is small internal oncology group, and To be successful, however, “It is a startup. We need to gain EXECUTIVE EDITOR Cindy Goodaker, (313) 446- fully staffed now with St. John on- 21st Century Oncology of Michigan, a Klameras said, Crittenton Hospi- patients, establish relationships 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- cology specialists, Powell said. division of Farmington Hills-based tal will have to develop a larger with the community,” Meyer said. 1622 or [email protected] Meyer said St. John has been in- Michigan Healthcare Professionals. network of primary care physi- MANAGER, DIGITAL STRATEGY Nancy Hanus, Managers of the St. John Cancer (313) 446-1621 or [email protected] terested in the Rochester area for Amr Aref, M.D., chief of radia- cians to generate greater patient Center include Aref; Kathy LaRa- MANAGING EDITOR/CUSTOM AND SPECIAL some time and approached Critten- tion oncology at the new St. John volume. PROJECTS Daniel Duggan, (313) 446-0414 or ia, vice president of oncology; [email protected] ton about a year ago. The St. John cancer center, said the cancer cen- That’s in the plans, Powell said. Ayad Al-Katib, M.D., medical di- SENIOR EDITOR/DESIGN Bob Allen, (313) 446- Hospital Cancer Center at Critten- ter at Crittenton has state-of-the art 0344 or [email protected] rector of oncology; and Robert SENIOR EDITOR Gary Piatek, (313) 446-0357 or ton is St. John’s sixth oncology am- building design and equipment and Leonard, M.D., president of Great [email protected] bulatory care center. is accessible to the more than a Plan for Crittenton WEB EDITOR Kristin Bull, (313) 446-1608 or Lakes Cancer Management Special- [email protected] Powell said Crittenton had sev- dozen St. John physicians who will From 2008 to 2012, Crittenton’s ists. WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- eral options to jump-start its can- staff it. operating losses totaled more than 8158 or [email protected] Powell said Crittenton’s 12 cancer WEB PRODUCER Norman Witte III, (313) 446- cer center, including expanding “Radiation oncology will be $55 million, according to Medicare surgeons are eager to start working 6059, [email protected] the program itself or creating a open five days a week for treat- cost reports provided by Louisville, EDITORIAL SUPPORT (313) 446-0419; YahNica with St. John physicians. “They Crawford, (313) 446-0329 joint venture with another compa- ment and on Saturdays for consul- Ky.-based Cost Report Data Re- have been imploring me since day NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 ny. tation,” said Aref, who said three sources. Once investment income is one to get this going,” he said. “We want to grow medical oncolo- radiation oncologists will provide accounted for, the net loss over that REPORTERS “The cancer center program is gy. We have a strong surgery pro- coverage at Crittenton. period was $26.6 million. Jay Greene, senior reporter: Covers health care, largely outpatient,” Powell said. insurance, energy utilities and the environment. gram, but we have had financial is- But Aref said it could take up to In 2013, Crittenton lost about $21 (313) 446-0325 or [email protected] “Medical oncology procedures are sues the last several years, and the three months to build trust with pa- million on operations and record- Amy Haimerl, entrepreneurship editor: Covers done at the cancer center, but when entrepreneurship and city of Detroit. (313) 446- cancer center was part of that. We tients in the Crittenton area after ed a net loss of $4.7 million, Crain’s 0416 or [email protected] the surgeon identifies cancer, the have a very expensive building. We the reputation of the cancer center previously reported. Chad Halcom: Covers litigation and the defense patients go to Crittenton (for industry. (313) 446-6796 or [email protected] were looking for the fastest way to was sullied by the Fata fraud alle- Last fall, Moody’s Investors Services surgery).” Tom Henderson: Covers banking, finance, move the program forward,” Powell gations. downgraded Crittenton’s bond rat- technology and biotechnology. (313) 446-0337 or Powell said Crittenton estimates [email protected] said. “The Dr. Fata situation has pre- ing to Baa3 from Baa2 on $107.3 mil- Kirk Pinho: Covers real estate, higher education, sented some issues” at other St. lion bonds issued by the Michigan 1,000 annual surgical procedures Oakland and Macomb counties. (313) 446-0412 or under St. John management, up [email protected] John clinic locations, Aref said. State Hospital Finance Authority. Bill Shea, enterprise editor: Covers media, A new partner “Patients ask us (in so many Moody’s said the hospital “has from about 750 annually the previ- advertising and marketing, the business of sports, ous several years. An average pro- and transportation. (313) 446-1626 or In July 2011, Detroit’s Barbara words): How do I know you are endured a trend of unfavorable fi- [email protected] cedure generates about $10,000. Nathan Skid, multimedia editor: Also covers the Ann Karmanos Cancer Institute and giving me correct treatment and nancial performance, a balance food industry and entertainment. (313) 446-1654, Crittenton Hospital dissolved not doing something like Dr. sheet that has eroded over the last While Crittenton has discussed [email protected] a sale in the past with Vanguard Dustin Walsh: Covers the business of law, auto their joint venture agreement of Fata? We are lucky all the mem- several years and additional debt suppliers, manufacturing and steel. (313) 446- the previously named Karmanos- bers of our group have solid repu- that leverages the hospital.” Health Systems Inc., the former 6042 or [email protected] owner of Detroit Medical Center; Sherri Welch, senior reporter: Covers nonprofits, Crittenton Cancer Center. The $16 tations.” The center, paid for in conjunc- services, retail and hospitality. (313) 446-1694 or million center, which opened in These types of affiliations be- tion with Karmanos, cost $16 mil- Beaumont Health System; and [email protected] McLaren Health Care, Powell said LANSING BUREAU January 2010, was built by Crit- tween smaller hospitals and larger lion. The hospital also opened a Chris Gautz: Covers business issues at the Capitol tenton-Karmanos Health Services cancer programs are becoming in- new $65 million patient tower ear- the independent nonprofit hospital and utilities. (517) 403-4403 or [email protected] LLC. creasingly common to tap into lier this year. isn’t talking with anyone at the ADVERTISING moment. Officials for Crittenton and Kar- medical and management exper- During its first year of operation, SALES INQUIRIES (313) 446-6052; FAX (313) manos declined to discuss why tise, said Justin Klamerus, M.D., Meyer said, St. John is looking to “We like who we are dealing 393-0997 their joint venture failed, but Crit- chief of oncology with 11-hospital increase patient visits at the cancer with at St. John’s,” Powell said. “It SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. tenton began to seek another joint McLaren Health Care in Flint. center to 13,000, up from 11,000. The is only natural we will look at oth- Langan venture partner in earnest last Au- “It makes sense to affiliate with system will spend about $300,000 to er potential (clinical) relation- ADVERTISING SALES Christine Galasso, Jeff Lasser, Sarah Stachowicz gust after Powell was hired as major cancer centers and also with $500,000 in equipment and informa- ships (with St. John).” CLASSIFIED SALES Angela Schutte, manager, CEO. comprehensive cancer centers,” tion technology, she said. Jay Greene: (313) 446-0325, (313)-446-6051 DIRECTOR OF MARKETING AND EVENTS In seeking a new oncology part- said Klameras, noting that McLaren By year two, said Meyer, St. John [email protected]. Twitter: Elizabeth Buscher ner, Powell said Crittenton evaluat- acquired Barbara Ann Karmanos is hoping to break even financially @jaybgreene DIGITAL MARKETING MANAGER Jennifer Chinn AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo EVENTS MANAGER Kacey Anderson SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg SENIOR ART DIRECTOR Sylvia Kolaski Credits: Biz benefits, but state frets over guesswork SALES SUPPORT Suzanne Janik, YahNica Crawford PRODUCTION MANAGER Wendy Kobylarz ■ From Page 1 PRODUCTION SUPERVISOR Andrew Spanos CUSTOMER SERVICE Senate fiscal agencies and the Trea- for exercising them expires. In fis- to the amount and length of the tax MAIN NUMBER: Call (877) 824-9374 or write sury Department came together at GRANHOLM TAX CREDITS PENDING cal 2012, there were 3,533 business- credits, but not the actual perfor- [email protected] the May revenue estimating con- es still filing an MBT return. mance of a company on a year-to- SUBSCRIPTIONS $59 one year, $98 two years. The following is a list of state tax Out of state, $79 one year, $138 for two years. ference, which provides the num- Mark Morante, senior vice presi- year basis that would indicate Outside U.S.A., add $48 per year to out-of-state credits pending from the rate for surface mail. Call (313) 446-0450 or bers lawmakers use to set the bud- administration of Gov. Jennifer dent of special projects at the Michi- whether it will be able to claim a (877) 824-9374. get, they estimated the state would Granholm and the last year in gan Economic Development Corp., credit for a particular year, be- SINGLE COPIES: (877) 824-9374 pay out $490 million in refunds and cause that is confidential. REPRINTS: (800) 290-5460, ext. 125; which the companies that received said since the MEGA program be- (717) 505-9701, ext. 125; or lindsay.wilson credits to businesses. them can become eligible to claim gan in 1995, about 35 to 40 percent of Stansell said he and several col- @theygsgroup.com them. Companies then have four TO FIND A DATE A STORY WAS PUBLISHED: But the state ended up paying the eligible credits have been leagues once tried to go through (313) 446-0406 or e-mail [email protected] out just $75.8 million. The estimate more years in which to actually claimed. every credit given out to each com- claim the credit. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY for fiscal 2014 is $440 million. In the early 2000s, state law lim- pany and map out the potential lia- CRAIN COMMUNICATIONS INC. The potential remaining liability for CHAIRMAN Keith E. Crain “There is a risk that the $490 mil- bility to the state, but they didn’t get the MEGA Employment credit is ited the number of MEGA credits PRESIDENT Rance Crain lion was correct, but we just got the $5.4 billion. It’s $527 million in annually to 25, but eventually the far. TREASURER Mary Kay Crain Executive Vice President/Operations timing wrong,” said David Zin, the potential credits for the battery cap was lifted. And when the reces- “We finally just threw our hands William A. Morrow Senate Fiscal Agency’s chief econo- industry. Amounts for the other sion hit in 2008, the MEDC was up in the air because we just didn’t Executive Vice President/Director of Strategic mist. Operations Chris Crain credits were not available. handing out more than 80 per year have the information,” he said. Vice President/Production & Manufacturing Alex Rosaen, senior consultant 2012: NASCAR credits to entice companies to move or Treasury does provide the agen- Dave Kamis Chief Information Officer at the East Lansing-based Anderson 2016: Battery credits stay in Michigan. After typically cies with some aggregated data Anthony DiPonio Economic Group, said the inability 2017: Anchor company payroll handing out $100 million worth of that explains the reasoning behind G.D. Crain Jr. Founder (1885-1973) to predict “is a genuine problem.” credits MEGA credits per year a decade their number, which can help in- Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: Given the potential liability go- 2022: Historic preservation ago, in 2010 the value of the fluence the budget, but Stansell 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 ing forward, the state might want to credits MEGAs, some of which have 20- said even with the information Cable address: TWX 248-221-5122 AUTNEW DET consider forming a rainy-day fund 2022: Anchor company taxable year windows in which to be re- Treasury has, it is difficult to pre- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 deemed, topped $2.5 billion. is published weekly, except for a special issue the just for the MBT credits, he said. value credits dict with much accuracy. third week of August, and no issue the third week “Setting aside enough once 2026: Brownfield rehabilitation Morante, who is one of two peo- of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. should do the trick and then rolling credits ple at the MEDC authorized to sign Periodicals postage paid at Detroit, MI and Lack of information additional mailing offices. POSTMASTER: Send those amounts over,” he said. 2032: MEGA Employment credit off on credit eligibility, said just address changes to CRAIN’S DETROIT BUSINESS, Source: Treasury Department, MEDC The MEDC has a spreadsheet, last week he signed a company’s Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in which it shares with the Treasury certificate for a credit it earned in U.S.A. Change in policy Department, that maps out each 2010. Entire contents copyright 2014 by Crain doesn’t allow for the credits. Communications Inc. All rights reserved. In 2011, when Gov. Rick Snyder company and its tax credit’s total “Who knows why they took so Reproduction or use of editorial content in any Businesses with existing credit value and how many years it can long to claim it?” Morante said. manner without permission is strictly took office, he largely eliminated prohibited. credits and replaced the Michigan eligibility were allowed to contin- still claim it, Morante said. Chris Gautz: (517) 403-4403, Business Tax with a 6 percent in- ue filing the MBT until their cred- Morante said House and Senate [email protected]. Twitter: come tax on C-corporations that its are used up or the time period fiscal agencies would have access @chrisgautz 20140407-NEWS--0030-NAT-CCI-CD_-- 4/4/2014 5:54 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS April 7, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 29-APRIL 4

Fender strums for Tigers tion, European Plastics troit team to join the USL Survey: Minimum News reported. Professional Division league Wanna let the crowd Ⅲ Arotech Corp., the Ann in 2015 and is seeking up to Um, please at your next gig know wage hike little Arbor-based military con- 7 acres in Detroit for a you’re a Detroit Tigers tractor and battery sys- 5,000-seat stadium. diehard? Then Fender has tems maker, acquired Ⅲ The Southfield-based you covered — for $799. bother to state biz Hanahan, S.C.-based UEC Specs Howard School of Me- The iconic Scottsdale, Electronics LLC for $28 mil- dia Arts will offer $125,000 pass that Ariz.-based guitar maker, possible increase in lion cash and over $4 mil- in scholarships to workers formally known as Fender the minimum wage lion in stock. seeking training in tech- Musical Instruments Corp., A is of little concern to Ⅲ The nonprofit Kronk nology-driven courses. has included the Tigers owners of Michigan small Gym Foundation signed a Ⅲ Startups and existing humble pie among its initial line of Ma- and midsize businesses, ac- five-year lease for part of small businesses in Oak- jor League Baseball-licensed cording to an annual spring the Detroit-owned Consi- land County obtained $22.7 few national retail- $23.6 million from De- Fender Stratocasters. survey by Pittsburgh-based dine-Historic Little Rock Fami- million in loans in 2013, ers are eating slices troit’s General Retire- The solid-body electric PNC Financial Services Group ly Life, Education and Recre- more than triple the A of humble pie as ment System. guitar in Tigers colors is Inc. Only 6 percent of re- ation Center, intending to amount of loans and capi- they look upon the Gateway Congress au- festooned with the team spondents said an increase open it to the public in May tal formation dollars from Marketplace on Detroit’s thorized the name logo, the Old English would cause them to reduce with equipment donated by 2012, said a report by the northern border. Why? The credits in D, and a RenCen silhouette. staffing, and 69 percent said the World Boxing Organiza- Oakland County Business humble New Markets Tax 2000, and The company it would have no impact. tion. Center. Credit. since then specs also call Ⅲ Chicago-based airline Ⅲ Detroit Red Wings great For years, some of the Detroit has for an alder Lakeshore Express Aviation Ted Lindsay and his founda- country’s largest big-box received $387 body maple ON THE MOVE — which offered service be- tion announced a $1 mil- shops soundly told developer million to help neck with mod- Ⅲ U.S. Rep. Dave Camp, tween Oakland County Inter- lion donation to expand an Southfield-based Redico LLC fund 26 projects, ern “C” shape, chairman national Airport, Pellston Re- autism program at Beau- they weren’t interested in including Gate- 21 medium jum- mont Hospital, Royal Oak. of the gional Airport and Chicago Ⅲ the 360,000-square-foot retail way Market- bo frets, three House Ways Midway International Airport Ann Arbor physician Adelina Herrero, M.D., plead- center planned for Eight place, the standard sin- and Means — suspended operations. ed guilty in U.S. District Mile Road and Woodward Westin Book gle-coil Strat Committee, Ⅲ Two Michigan-based Court to one count of con- Avenue. Cadillac De- pickups and announced clean energy companies spiracy to commit health Almost nine months after troit, reno- other stan- he will re- won awards at the Clean En- dard fea- care fraud. the $72 million center vating the tire after 24 ergy Challenge of 2014 in tures. Ⅲ California developer opened, anchored by a $20 Broderick years of Chicago. Black Pine Engi- Fender is Stuart Lichter said he is un- million Meijer Inc. Super Cen- Tower, and represent- neering of Michigan State Uni- making Strato- Camp der contract to buy 558,000 ter, some of them are ap- the Argonaut ing Michi- versity won the $100,000 U.S. proaching Redico and asking casters for 11 oth- square feet of space in a Building, which COURTESY FENDER MUSICAL gan in Congress. Camp, 60, Department of Energy Stu- er teams, plus a Min- Pontiac industrial complex if there is any room for would become the INSTRUMENTS CORP. is a Republican. dent Challenge Prize for de- nesota Twins All-Star formerly used by General them. home of the Col- Ⅲ Jeff Wattrick, most re- signing a mechanical pump “A lot of people ques- Game version this year. Motors Co. lege for Creative Studies’ cently a columnist with to remove harmful gases tioned the viability of this They’re all at Fender.com. Ⅲ The Southeast Michi- Taubman Center and also DeadlineDetroit.com and for- from geothermal power project, but you can see the The Stratocaster model, gan Purchasing Managers In- houses Shinola. merly a writer with plants. Greenlancer of De- viability,” said Ken Till, se- introduced in 1954, has been dex rebounded to 55 in MLive.com, was named troit won the $50,000 Clean March from 47.3 in Febru- nior vice president of devel- used by music legends such managing editor of Energy Trust Business ary. A value above 50 indi- opment at Redico, at a Concert to honor Spielberg, as Eric Clapton, Jimi Hendrix, ClickOnDetroit.com, the web- Model Innovation Prize for cates economic growth. roundtable discussion last Bonnie Raitt, George Harrison Rock Ventures execs site for local NBC affiliate developing a network of on- Ⅲ The American Customer week about the New Markets and Buddy Holly. WDIV-Channel 4. Wattrick, call engineers to help with Satisfaction Index hit the Tax Credit Program that The familiar scores of “The connections are in- 36, replaces Lisa Ray, who solar installations. high point in its 20-year made the project possible. Hollywood movies includ- trinsic — baseball bats and left for Denver’s KDVR-TV as Ⅲ Forbes Media opened history, according to the “Meijer has said, ‘We’re ing “Jaws,” “Star Wars” guitars are both made from an executive producer. its first airport newsstand, national survey released hitting it out of the park,’ ” and “Raiders of the Lost maple and ash, and tons of at Detroit Metropolitan Air- by the University of Ark” will fill Or- ballplayers are guitar play- Till told the invita- Michigan. chestra Hall for one ers,” Justin Norvell, Fender port’s McNamara Terminal. tion-only crowd at COMPANY NEWS Ⅲ A U.S. district judge the Gateway Market- night in June, un- marketing vice president, ruled the Michigan State Ⅲ The Detroit News, Oak- place, which includ- der the direction said in a statement. “We’ve AFL-CIO and other orga- land Press, Daily Tribune OTHER NEWS ed U.S. Rep. Gary of composer John had more casual or infor- nized labor groups that and Macomb Daily soon Ⅲ Detroit may be able to Peters, D-Mich., and Williams, who will mal connections with play- sued last year can continue could go up for sale with conclude its record $18 bil- Don Graves, who is be joined by Os- ers and teams for years, so to pursue their claim that President Barack car-winning direc- this further solidifies a rela- other newspapers owned lion bankruptcy by Oct. 15, federal labor law preempts Obama’s man in tor Steven tionship we’ve long valued by New York City hedge less than 18 months after the right-to-work measure Detroit as well as the Spielberg. Plus, and enjoyed.” fund Alden Global Capital seeking court protection, signed into law in 2012. executive director of two Detroit busi- Stratocasters range from LLC, said a report pub- Emergency Manager Kevyn Ⅲ Michigan Democratic Spielberg the President’s Coun- ness “leading con- a $179 “mini” version to lished by Harvard Universi- Orr told U.S. Bankruptcy gubernatorial candidate cil on Jobs and Competitive- ductors” will be honored. $15,000 for a special Eric ty’s Nieman Journalism Lab. Judge Steven Rhodes. Mark Schauer announced ness. The Detroit Symphony Or- Clapton model. The guitars Ⅲ Restaurant/entertain- Meanwhile, Bloomberg re- Oakland County Clerk Lisa Till added that the Mar- chestra is hosting the fa- are manufactured in Baja ment complex Punch Bowl ported the city proposed Brown as his running mate. shalls store at Gateway is mous Hollywood luminar- California, Mexico. Social announced plans to deeper cuts to police and Ⅲ Former state Senate TJX Cos. Inc.’s No. 1 location ies for a June 14 open in November inside firefighter pensions and Majority Leader Mike Bish- in Michigan, while the K&G fundraising concert, which Bracelet marks good deeds The Z, the Detroit parking some bondholders, and op and Rochester Hills Fashion Superstore has the will be followed by its He- garage collaboration be- Rhodes gave the city ap- Mayor Bryan Barnett an- best sales in the nation. roes Gala Dinner honoring Michigan native, artist tween Bedrock Real Estate proval to issue $120 million nounced bids to replace Gateway Marketplace al- Rock Ventures Chairman Dan and activist Mary Fisher, Services and fine art gallery in bonds to pay for emer- U.S. Rep. Mike Rogers in most didn’t happen. Gilbert and President and daughter of Marjorie Fisher Library Street Collective. gency vehicles and basic Michigan’s 8th Congres- It languished for nearly a CEO Matt Cullen for their and her husband, the late Ⅲ General Dynamics Land services. sional District, decade until Redico took on support of the orchestra Max Fisher, is encouraging Systems in Sterling Heights Ⅲ The FBI is investigat- Ⅲ Michigan House lead- the project and applied for and Detroit as a whole. people to do anonymous good landed a $74.7 million con- ing allegations of payoffs to ers proposed roads funding New Markets Tax Credit to Gilbert and Cullen assist- deeds and support at-risk tract from the U.S. Marine Detroit City Council mem- of at least $450 million in make the financing possible. ed in the mediation process women in Africa, Haiti and Corps Systems Command for bers in exchange for their the 2015 budget year and at The New Markets Tax Credit between the DSO and its mu- other countries by purchas- upgrade kits for infantry votes for council president, least $500 million annually Program helps small busi- sicians in 2011, arranged the ing their handmade “100 vehicles, and the U.S. Army The Detroit News and De- by 2018, AP reported. nesses and large develop- orchestra’s 2012 Kid Rock Good Deeds” bracelets, Tacom Life Cycle Manage- troit Free Press reported. Ⅲ The newly launched ments in economically dis- concert, which raised $1 mil- based on her designs. ment Command in Warren Brenda Jones was voted Michigan Farm to Institution tressed areas, such as lion, and are “generous con- Fisher is selling the was awarded a $47.7 mil- council president in Janu- Network aims to increase Detroit, by offering a 39 per- tributors” to the orchestra. bracelets, made of 100 glass lion modification to a pre- ary, edging out previous state-produced food served cent federal tax credit that is Tickets to the events go on beads and which include a vious contract for Oshkosh president Saunteel Jenkins in schools, hospitals and taken over seven years. sale April 14 at www.dso.org. rubber band to keep track of Defense to build 231 new ve- in a 5-4 vote. other institutions, said offi- For the Gateway project, The gala, which includes your good deeds, for $30 hicles by August 2015. Ⅲ Dan Duggan, owner of cials from the Michigan that meant securing $57.6 entrance to the concert, will through the Abataka Founda- Ⅲ French automotive the semipro Michigan Bucks State University Center for million in credits, which al- cost $500 to $10,000, while tion, launched to help African supplier Actuaplast plans to soccer team in Pontiac, Regional Food Systems and lowed Redico to obtain a tickets to the concert alone women with HIV/AIDS. See set up a new plant at an un- said he reached a prelimi- the Ann Arbor-based non- general construction loan of will range from $50 to $250. www.100gooddeeds.org. named Detroit-area loca- nary agreement for a De- profit Ecology Center. DBpageAD_DBpageAD.qxd 4/4/2014 2:49 PM Page 1

Deals worth roughly $827 million and counting …

Presenting Crain’s M&A Honoree Panel: John Weinhardt Unique Fabricating Inc. FINALIST: Deal Under $100 Million Wednesday, April 16 Martin Stein 5-9 p.m., Troy Marriott Blackford Capital LLC WINNER: Deal Under $100 Million Register at crainsdetroit.com/events Mark McCammon or (313) 446-0300

Strength Capital TITLE SPONSOR WINNER: Deal Over $100 Million

PREMIER SPONSORS Joseph DeVito Howard & Howard Attorneys PLLC WINNER: Dealmaker Adviser MAJOR SPONSORS

Brian Demkowicz IN PARTNERSHIP WITH Huron Capital Partners LLC WINNER: Dealmaker Buyer/Seller For sponsorship information, contact Marla Wise at [email protected] or (313) 446-6032. DBpageAD_DBpageAD.qxd 4/4/2014 3:50 PM Page 1

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KEYNOTE ADDRESS:

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Mary Ann Hynes Senior Counsel Dentons

EDUCATIONAL SESSIONS: Business Regulations Employment Intellectual Property (IP) International Leadership Mergers and Acquisitions

GENERAL AND IN-HOUSE COUNSEL AWARDS Program and Dinner MAJOR SPONSORS TUESDAY, MAY 13 2-7:30 p.m. The Westin Book Cadillac, ADDITIONAL SPONSORS Detroit Registʑr Woday crainsdetroit.com/events or (313) 446-0300