'Friends and Family'plan to Grow Shinola

20150622-NEWS--0001-NAT-CCI-CD_-- 6/19/2015 6:36 PM Page 1 CRAIN’SReaders first for 30 Years DETROIT BUSINESS June 22-28,2015

Wesley Berry: House goes on 30 years of break, leaves change ... and a roads funding thorn in its side to Senate PAGE 3 PAGE 6 Fisher, Kahn buildings eyed for multifamily use SHINOLA

By Kirk Pinho [email protected] Maybe the Fisher Building and Albert Kahn Building need new leases on life ‘Friends and — or maybe they just need new leases from a different type of tenant. The three-day auction for the iconic New Center office buildings begins today, and real estate experts say out-of-state investors are viewing at least one of the buildings as a multifamily conversion. This potentially would bring hundreds of new rental units to an area short on such housing — and a new residential emphasis to two Detroit landmarks. family’plan to Portions of both buildings — perhaps 20 percent to 40 percent or 185,000 to 370,000 square feet of their total square footage of 925,000 — could be converted to multifamily in an area that multifamily real estate experts see as ripe for such redevelopment. By the time the high bidder closes on the deal, receives city approvals and completes construction, the $179.4 mil- grow Shinola lion M-1 Rail mass transit project likely would be finished, and New Center would become the next pocket of greater downtown ripe for multifamily redevelopment. A big sell- Rock,Kresge among investors in $125M ing point of New Center is a market option for renters funding round to expand company Multifamily in the Fisher? It’s possible,real estate experts say See BUILDINGS, Page 23 PIERRETTE DAGG/CDB By Kirk Pinho and Tom Henderson [email protected], [email protected] Advertisement n infusion of capital to support the growth of Shinola and other American-made consumer product lines was signed Special Aunder a sort of “friends and family” financing plan last month. Bedrock Manufacturing Co. raised $125 million, sources say, in a Report funding round that includes Dan Gilbert’s Rock Ventures LLC and the Troy-based Kresge Foundation, plus other investors. The funding is in Do copyright rules for exchange for a minority equity stake in Bedrock Manufacturing, the Are you managing literature and music also Plano, Texas-based parent company to Shinola/Detroit LLC. apply to the technology Shinola, Rock and Kresge declined to confirm the terms of the deal, your entire which closed in May. underneath the hood? The funding is described by the Shinola leadership team as databerg? Read about the car relationship-based outreach to a close circle of conundrum in a report friends and colleagues as part of a mission to (see page 2) expand the business and create more on intellectual property, American jobs. Page 11 “In the process of getting to know each other, we recognized that we have several mutual friends who are adventurous and like-minded,” said Tom Kartsotis, founder of Shinola, in a © Entire contents copyright 2015 statement to Crain’s. Bicycles are also part of the by Crain Communications Inc. All rights reserved. “As time passed, we decided that a small Shinola product lineup crainsdetroit.com Vol. 31 No 25 $2 a copy. $59 a year. ‘friends and family’ round of financing would enhance our ability to aggressively build businesses that are predicated on creating world-class manufacturing jobs in America,” he said. “We are excited to welcome our new partners who include Dan Gilbert and Kresge.” Bedrock Manufacturing is not related to Bedrock Real Estate Services LLC, Gilbert’s real estate company that owns more than 70 properties in NEWSPAPER See SHINOLA, Page 22 20150622-NEWS--0002-NAT-CCI-CD_-- 6/19/2015 4:55 PM Page 1

2 CRAIN’S DETROIT BUSINESS // June 22, 2015

stage business to Mason County in agers since 2011. MICHIGAN West Michigan, The Muskegon Ⅲ The Kalamazoo City Commission INSIDE Chronicle reported. will sell Eastern Hills Golf Course for THIS ISSUE The Momentum Business Plan $2.2 million to JTM Management, BANKRUPTCIES ...... 6 CALENDAR ...... 17 Competition is open to any inde- which plans to redevelop the site CAPITOL BRIEFINGS ...... 21 pendent for-profit or nonprofit ven- into commercial and residential CLASSIFIED ADS ...... 21 ture with a viable business idea, properties, the Kalamazoo Gazette DEALS & DETAILS ...... 20 plan or invention. Existing organi- reported. The move comes amid OPINION ...... 8 BRIEFS zations or companies with less than debate about the use of the city’s OTHER VOICES ...... 9 $100,000 in sales or annual revenue golf courses and as officials work to PEOPLE ...... 20 also are eligible. deal with an anticipated $3 million RUMBLINGS ...... 26 MSU Human Medicine dean try riding a train from one to the budget deficit in 2016. WEEK ON THE WEB ...... 26 other. You can buy a train ticket in MICH-CELLANEOUS Ⅲ Organizers with the newly an- leaving; led move to GR Grand Rapids, but the first leg of the Ⅲ The Michigan State University nounced Michigan Good Food Fund Marsha Rappley, who led the trip is on a bus to Kalamazoo. board of trustees approved a cam- seek potential borrowers, investors COMPANY INDEX: Michigan State University College of Enter the Michigan Environmental puswide tobacco-free ordinance and others to get involved with the SEE PAGE 25 Human Medicine’s move to Grand Council, which is trying to determine that goes into effect Aug. 15, 2016, fund, which aims to address the Rapids, plans to leave her position whether demand would be suffi- and includes electronic cigarettes lack of access to healthy food in un- this summer as dean to join Virginia cient for a direct rail line. and vaporizers. derserved communities statewide, starting with the 2016-17 school Commonwealth University in Rich- Liz Treutel of the Environmen- Ⅲ Saranac-based Herbruck’s Poul- The Associated Press reported. The year, The Flint Journal reported. mond, Va., and run its health sys- tal Council, who is managing the try Ranch plans to spend $44 million fund will provide financing and Students will begin school in late tem, MiBiz reported. project, told Michigan Radio that, to expand its organic and cage-free business assistance to entrepre- August and end in late June, with Rappley’s last day is Aug. 14. based on public feedback, people egg production and create 50 jobs, neurs involved in food production, one-week breaks in October, Febru- She’ll become vice president for “want to see at least two trains a The Associated Press reported. Her- distribution, processing, marketing ary and May. health sciences and CEO of VCU day, and it has to be competitive. bruck’s received a $750,000 grant and retail projects. The goal is to Ⅲ This week’s summer bummer Health System, which includes a If you’re traveling for work or if from the Michigan Strategic Fund. raise $30 million. brought to you by your friends at cancer center and children’s hospi- you’re traveling for fun, you still Ⅲ Kalamazoo-based distributor Ⅲ The Benton Harbor Area Schools Michigan’s public universities, tal, has more than 1,100 beds and want it to be at least as fast if not Imperial Beverage Co. tripled is had to give up an $18 million grant which announced the following in- serves more than 600,000 people faster than being able to drive in warehouse space in Southeast to improve student success because state tuition increases last week: annually. your own personal car.” Michigan by moving from Ply- it lacked the staff to support it, offi- Michigan State University, 2.7 per- Also last week, MSU broke The council plans to release a mouth to Livonia, MiBiz reported. cials of the district told Michigan cent; Eastern Michigan University, 7.8 ground on an $88.1 million bio- report by the end of the year. The company distributes craft Radio. Last year, Gov. Rick Snyder percent, which means EMU loses medical research center in down- beer, wine and other beverages determined that a financial emer- $1 million in state incentive funding town Grand Rapids. W.Mich.chamber contest: across the state. gency existed in the district, which by exceeding the state cap of 3.2 $50K if you locate biz here Ⅲ Jody Lundquist started work faces a deficit of about $16 million. percent so it can generate $10 mil- Train route linking Grand last week as the new CFO of the city Enrollment has fallen 43 percent to lion in new revenue; Michigan Tech- Rapids,Detroit studied The Ludington and Scottville Cham- of Flint. She formerly was finance 2,680 in the past decade. nological University, 3.1 percent; ber of Commerce is holding a contest director and treasurer in Benton Ⅲ The Davison Community Schools Northern Michigan University, 3.2 per- Grand Rapids and Detroit are the that will award $50,000 to an owner Harbor. Flint has been run by four Board of Education voted to go to a cent; and the University of Michigan, two biggest cities in Michigan, but looking to start or relocate an early state-appointed emergency man- year-round academic calendar 2.7 percent. Ⅲ

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CRAIN’S DETROIT BUSINESS // June 22, 2015 3

LOOKING BACK: On June 24,1985,Crain’s reported that Wesley Berry Florist Inc.sold

its first franchise. DETROIT INSTITUTE OF ARTS Now Wesley Berry The Detroit Institute ofArts Inside/Out program has been taking reproductions of masterpieces to local venues. Now it’s taking them to Flowers,the two new cities in Michigan each year, starting with Bay City and Grand business has Haven this month. grown rapidly online in recent The world’s a years,butyears,despite now a facescourt battlea court with battle a with a ISTOCK PHOTO florist giant. gallery for DIA More at crainsdetroit.com/30 $2M from Knight Foundation sends Inside/Out program to other Michigan cities, other states

By Sherri Welch [email protected] Court fight creates a thorn The Detroit Institute of Arts’ Inside/Out program — which takes reproductions of artistic masterpieces to parks, libraries, pizza places and other outdoor spots — is being replicated in Philadelphia, Miami and Akron, Ohio, this year. The idea? Attract visitors to the museum but also allow people to appreciate the works of art in their own communities and making the art and the museum itself more accessible. for Wesley Berry Flowers The Miami-based John S. and James L. Knight Foundation has committed $2 million to expand the program over the next three years to seven other U.S. cities and to continue the DIA By Sherri Welch the 5,000 fastest-growing companies, with $40.2 million in program over the next two years. [email protected] reported revenue for 2013, up from $11.9 million in 2010. With its renewed funding, the DIA is taking its masterpieces hirty years ago, Wesley Berry Florist Inc., then a small, FDE’s growing footprint — with deliveries in 152 to two new cities in Michigan each year, beginning with Bay family-owned company, sold its first franchise. countries and a network of tens of thousands of florists City and Grand Haven this month. T It went on to establish 30 franchises across five filling those orders — has put it into conflict — and court — Displaying the artwork on the streets is a way for the museum states before selling most of them in the 1990s and with florist giant Teleflora LLC. to connect to its community, making it less of an ivory tower and launching an e-commerce business in 1994. FDE had been a member of the Teleflora network going more accessible, said Dennis Scholl, adviser to Knight’s presi- Today, the family operates one of the larger online floral back to the 1950s and used its services for order fulfillment dent and CEO and the impetus behind the program’s expansion businesses in the U.S. through FlowerDeliveryExpress.com, and credit card processing. But more recently, the two have as former vice president of arts at the foundation. with a single franchise left in Canton Township, plus four sparred over issues tied to a large number of refunds to The program showed a sense of generosity on the part of the brick-and-mortar stores in metro Detroit operating as credit card transactions Teleflora considers questionable. DIA that is not what people typically think of with a museum, Commerce Township-based Wesley Berry Flowers. Teleflora cut Wesley Berry from its floral network in April, he said. Under the Wesley Berry Flowers name, the combined businesses ranked No. 1,755 onInc. magazine’s 2014 list of See WESLEY BERRY, Page 24 See DIA, Page 25 Startup’s magic bullet for safer lithium-ion: Fiber in Kevlar

By Tom Henderson material called aramid fiber. The resolving one of their most widely new and long-awaited 787 Dream- [email protected] fibers are extremely strong and acknowledged flaws: a dangerous liner aircraft were grounded be- Elegus Technologies Inc., one of the heat-resistant, with a range of appli- propensity for overheating. cause of fires ignited by lithium-ion 10 startups that began a three- cations that include aerospace, the In 2006, Dell, Apple Inc. and Toshi- batteries until stronger battery con- month accelerator program Tech- military and as an asbestos substi- ba Corp. recalled a total of more than tainment systems could be devised. stars launched at Ford Field this tute. And, of course, for bulletproof 6 million lithium-ion batteries pow- Elegus was spun out from the month, hopes the same material vests. ering notebook computers because University of Michigan last August, a that helps Kevlar stop bullets will Elegus’ four co-founders think of their tendency to overheat and product of Nicholas Kotov’s lab at BLOOMBERG lead to safer and more efficient lithi- they have found another commer- sometimes even catch fire — even- the school. Kotov has an endowed Elegus’ plan: Use the fibers in Kevlar to help um-ion batteries. cial use for the fibers: Increasing the tually costing their maker, Sony, chair in chemical engineering and lithium-ion batteries keep a charge longer Kevlar is a registered trademark time between charges for lithium- $250 million in replacement costs. with less risk of overheating. of DuPont for a class of synthetic ion batteries and, more important, And in 2013, all of Boeing Co.’s See ELEGUS, Page 24 MUST READS of the week ... Trade expertise,locally sourced News to raise your spirits

Chicago’s Baker Tilly Virchow Krause LLP is Read about recent restaurant openings on Page 7 of ramping up its presence here, with its latest this week’s issue. You also can catch up on food and move being an acquisition of trade consultant restaurant news — including Atwater Brewing’s Global Development Partners, new line of spirits — on our website, Page 4 crainsdetroit.com/food

ATWATER BREWING CO. 20150622-NEWS--0004-NAT-CCI-CD_-- 6/19/2015 3:18 PM Page 1

4 CRAIN’S DETROIT BUSINESS // June 22, 2015 Baker Tilly acquires trade consultant firm in Royal Oak

By Bill Shea oriented jobs at [email protected] TRW and Delphi, be- Royal Oak-based trade consult- came a naturalized ant Global Development Partners has citizen in 2008. been acquired in a noncash trans- Jorge, 40, gradu- action by Chicago-based Baker Tilly ated from high Virchow Krause LLP and will begin of- school at age 16 and fering overseas turnkey services began his career from the accounting and advisory with a trade com- giant’s Southfield office. pany in South The move is the latest in a series of America. He immi- acquisitions and hirings as Baker grated to the United Tilly ramps up its metro Detroit pro- States at age 20 and file. LARRY PEPLIN earned degrees Jeff Jorge, who founded Global JeffJorge, who founded Global Development Partners, from Middle Ten- Development Partners in 2006, be- now runs BakerTilly’s new Latin America Services Desk. nessee State Univer- comes a non-CPA principal at Baker sity and the Universi- Tilly and now runs its new Latin ing a lease and moving downtown,” ty of Michigan. America Services Desk for its Inter- he said. “We’re looking to make a big As part of the acquisition, Jorge national Services Team. push downtown, doubling down gets equity in Baker Tilly, and his “It’s something I can help aug- our efforts on Detroit clientele.” compensation includes a percent- ment that they needed to shore up,” Additionally, Baker Tilly is in acqui- age of current and future client rev- Jorge said. “This is a classic one plus sition talks with three boutique serv- enue, he said.

BLOOMFIELD HILLS PARKWAY one equals more than three.” ice firms, Whitman said. The names “The economics of the merger Baker Tilly’s International Ser- cannot yet be disclosed, he said, but were very favorable for both par- vices Team in Michigan is a $35 mil- they are not audit or tax firms. ties,” he said, adding that Global lion practice, and adding Global “We have a strategic plan to con- Development Partners and Baker Development Partners brings about tinue filling out the service comple- Tilly are sharing in the transition $2 million in new U.S. revenue, ment and the size of our practice. costs. Jorge said. Baker Tilly Virchow We’re not done,” Whitman said. Jorge said he wouldn’t have done Krause’s full U.S. revenue last year Other notable local Baker Tilly per- the deal if “it didn’t provide compa- was $475 million. sonnel changes include the addition rable freedom with much greater You’veYo u v e pputut in the hours and risen to “Our clients will benefit from the of David Tang, who last year became upside” for himself, his family, his depth and breadth of GDP’s interna- the China practice director, and Lau- employees and GDP’s clients. the challenges.challeng Reap the rewards with tional experience rie Horvath, who became the local “I’m an entrepreneur. I feel like a lease at 10010 Bloomfield Hills Parkway. and from Jeff and office’s not-for-profit practice leader I’m a young guy. I would never give his team’s in- in 2012 and a partner in 2013. up freedom or security,” he said. sightful view of The addition of Jorge and Global Jorge said he decided to merge UPUP TOTO 161165,700165,66555, RSF NOW AVAILABLE the global mar- Development Partners to Baker Tilly’s with Baker Tilly because it would ketplace,” Alan local office fills a gap in the profes- allow him to scale up the trade prac- Whitman, Baker sional service firm’s client offerings, tice far more quickly than what THE DETAILS MAKE ALL THE DIFFERENCE. Tilly CEO-elect Jorge said. would have been possible as a stand-

BRENDAN GEORGE JAMIE DINGEMAN and managing GDP offers services for small and alone firm. Alan Whitman: partner of the midsize companies, ranging from $5 “I could continue to grow GDP +1 248 351 2039 +1 248 351 2003 [email protected] [email protected] Managing partner metro Detroit of- million to $1 billion, that seek to organically, but it would take a long here set to become fice, said in a break into trade and foreign markets. time in my career, if ever, to reach Baker Tilly CEO. statement. “They Its clients typically lack the region- the size of Baker Tilly,” he said. “The will be leading specific business know-how, linguis- know-how we’re both getting, the both inbound and outbound oppor- tic skills, cultural awareness and the clients that are becoming joint tunities for Baker Tilly.” resources — structurally and finan- clients, it accelerates the growth of The acquisition was finalized cially — to successfully pursue for- Baker Tilly and GDP.” June 1. Global Development Part- eign markets, Jorge said. Jorge termed the deal an “aqui- SEEKING ners was debt-free, Jorge said. GDP brings to Baker Tilly its port- merger” and said he wasn’t paid Real Estate Investment Officer Jorge and a to-be-determined folio of services that includes risk outright for his company. number of Global Development assessment, market research, “There are no upfront checks in for the Retirement System of the City of Detroit. Candidates Partners’ 50 full- and part-time em- strategic planning, export/import this. If this was an acquisition, I must have an advanced understanding of Institutional Real Estate. ployees are moving into Baker Tilly’s tariff reduction, alliance/partner- would have cashed out and gone off A Master’s Degree in a related discipline or a Certified Property Manager (CPM), office space off I-696 in Southfield. ship development, new business to do something else,” he said. Counsel- or of Real Estate (CRE), Certified Commercial Investment Member Adding Jorge and GDP are the pipeline assistance and in-region The initial idea was to create a (CCIM), Chartered Financial Analyst (CFA) or Member of the Appraisal Institute latest local Baker Tilly moves. operations. joint venture equally owned by both (MAI) is preferred, but will consider candidates with a Bachelor’s Degree in business or related field with experience in investment real estate. It recently bought the Detroit- Global Development Partners companies, but the feeling was that based accounting and consulting specializes in the Americas, with joint ventures have a limited shelf For full job description and how to apply, visit www.rscd.org firm of Wolinski & Co. CPA PC. Marina emphasis on Mexico and Brazil. life and don’t yield enough market Houghton, Wolinski’s founder and GDP’s separate Brazil unit isn’t impact and sustainable growth, president, joined Baker Tilly as man- part of the Baker Tilly deal and is Jorge said. aging partner of its Michigan practice. being sold to one of its executives, Baker Tilly Virchow Krause is a She will replace Whitman as top Jorge said. It could be acquired by member of London-based Baker executive for Michigan when he Baker Tilly in the future, he added. Tilly International Ltd., which acts as takes over on June 1, 2016, as CEO Some of the GDP clients that now the parent network for 154 inde- Is your company supporting the troops? of Baker Tilly Virchow Krause na- will be serviced by Jorge and his pendent member companies. tionally. He will remain in South- team at Baker Tilly include Wixom- Under the global Baker Tilly Advertise your story in Crain’s field and Detroit as CEO, he said. based Hosco Fittings LLC, which brand are 27,000 people spread Some of the not-for-profit South- makes finishing systems compo- across 693 offices in 133 countries. field staff will move downtown to nents, and Auburn Hills-based Oxus Baker Tilly International last year work in the former Wolinski office, America Inc., which makes medical posted $3.6 billion in networkwide Whitman said. oxygen products. revenue, of which $1.5 billion was “We’re committed to Detroit. We The Brazilian-born Jorge, whose U.S.-generated. Ⅲ entered Detroit with a Detroit firm, fluency in Portuguese and Spanish Bill Shea: (313) 446-1626 Ask how: [email protected] | (313) 446-6032 | AD CLOSE: July 3 which I think is different than sign- aided a career that included trade- Twitter: @Bill_Shea19 DBpageAD_DBpageAD.qxd 6/15/2015 3:56 PM Page 1

THANKS FOR LIVING UNITED

We commend Jeff Bergeron for his unprecedented 25 years of support and service to United Way. His leadership as a campaign chair and board chair has made a lasting impact on the lives of others. We look ® forward to many more years working alongside Jeff. 20150622-NEWS--0006-NAT-CCI-CD_-- 6/19/2015 5:15 PM Page 1

6 CRAIN’S DETROIT BUSINESS // June 22, 2015 Senators differ on summer action for roads plan

By Lindsay VanHulle Olive, and other Republican sena- ing poor. “It was sym- ernor to hash out the real plan?” Crain’s Detroit Business/Bridge Magazine tors is exploring cuts to the state’s The House recessed after session bolic,” said Rep. Singh said. LANSING — With the state existing budget, diverting other rev- wrapped last week, despite the urg- Sam Singh, D- “We know all of the facts, so let’s House on summer break, the an- enue and generating new money as ing of some business leaders and East Lansing. just get down to final negotiations.” swer to Michigan’s roads funding part of its plan to come up with at lawmakers to postpone vacations “There are so D’Assandro said Cotter will be in problem will spend the summer in least $1.2 billion needed to repair until a final roads funding deal was many different Lansing all summer and a roads the Senate. the state’s roads. reached. pieces of that deal is “our first priority.” Business groups and lobbyists The House package, introduced The chamber has added two ses- package that are “We’re not really going to get a lot working on behalf of the roads in- by Republican lawmakers, would sion days each in July and August — Kevin Cotter: dead on arrival done on road funding until they dustry have offered recommenda- raise more than $1 billion by 2019 for a total of six — and can add Open to fuel tax with the Senate come out with a plan,” D’Assandro tions to Republican Senate leaders, through mostly existing revenue and more if needed, said Gideon D’As- increase or dead on ar- said of the Senate. “It’d look great for who are meeting behind closed expected future revenue growth that sandro, spokesman for House rival with the PR (to stay in town), but we’re com- doors to work out their version of a would be set aside for roads. Speaker Kevin Cotter. But he said governor that we know that package mitted to getting it done.” plan to fix the The House plan would raise the the House can’t do much until the will not be the package that is ap- New revenue? state’s deterio- diesel tax to match the 19-cent tax Senate returns with its plan. proved when all is said and done.” rating roads and on regular fuel and charge user fees The bills, D’Assandro said, are Singh said he won’t support Some lobbyists, including the bridges. to drivers of hybrid and electric vehi- thoughtful and address Cotter’s pri- any roads funding deal that does- Michigan Infrastructure & Transporta- Senate Major- cles. Its more controversial pieces orities, starting with using existing n’t include a long-term, dedicated tion Association, are urging the Sen- ity Leader Arlan would divert money away from the revenue before asking taxpayers for revenue source. His preference ate to include new revenue as Meekhof and his Michigan Economic Development Corp. more money. would be a combination of user part of its proposal. spokeswoman, and end an income tax But not every- fees or gas tax increases. Michigan’s flat 19-cent fuel tax Amber McCann, credit for the work- one agrees. Cotter, R-Mt. Pleasant, has said hasn’t increased since 1997. A com- Arlan Meekhof: did not respond he would be open to considering bination of higher gas taxes and ve- Leading a group to to multiple mes- a fuel tax increase as part of a final hicle registration fees could help explore cuts in sages from package, but will not be the one the state come up with a chunk of state budget Crain’s seeking to introduce it. revenue dedicated solely to roads, comment. Rather than vote out bills in order said Lance Binoniemi, MITA’s vice It’s unclear when the Senate GOP to leave for vacation, Singh said, president of government affairs. caucus will introduce its proposal, House leaders should have gone Voters soundly defeated a or whether it plans to take up any of straight into negotiations with Gov. statewide ballot issue to pay for the 12 bills passed by the House this Rick Snyder and Senate leaders on a road repairs last month in part month. But McCann said in a June joint package they could have pre- because it included a sales tax in- 11 Detroit Free Press report she sented this summer. crease and funding for areas be- doesn’t believe the chamber will “Why go through the theatrics of sides just roads, including schools vote on any bills until its own plan is doing a House plan and then a Sen- and local governments. ready. ate plan and then eventually getting “If they want to increase the gas A group led by Meekhof, R-West the quadrant together with the gov- tax in one fell swoop, the industry NATHAN SKID/CDB can handle that,” Binoniemi said. “If they think a gradual increase is more important, then eventually we’ll get to that goal and we’ll be comfortable with that, as well.” Both he and Kelly Chesney, spokeswoman for the nonprofit- Automotive Supplier Experience business advocacy group Business Leaders for Michigan, caution against transferring existing rev- ® enue to roads because of the potential for cuts elsewhere. In Your Corner. Using money from the state’s general fund and the MEDC, as the House proposed, “adversely impacts other critical priorities that help us grow our economy,” Chesney said. That includes funding for job train- We’ve been representing Automotive Suppliers ing and economic development. “As we’re making gains, this is since Henry Ford began assembling automobiles. not the time to pull back on those things that help us,” she said. “Other states aren’t standing still, and for us to be a competitive state, we need to continue to in- Providing in-depth experience in: vest in those areas.” Ⅲ Ŷ Intellectual Property Ŷ Litigation Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle Ŷ Automobile Connectivity Ŷ Supply Chain Ŷ Employment/Immigration Ŷ Corporate/M&A BANKRUPTCIES Contact our Automotive Team for your legal needs at www.varnumlaw.com. The following businesses filed for U.S. Bankruptcy Court Kevin DiDio Timothy K. Kroninger protection in in Automotive Team Co-Chair Automotive Team Co-Chair Detroit June 12-18. Under Chapter 11, [email protected] [email protected] a company files for reorganization. Chapter 7 involves total liquidation. Ⅲ Wel Tek International Corp., 29777 Telegraph Road, Suite 2455, Southfield, voluntary Chapter 7. As- In Your Corner.® sets and liabilities not available. Legal Experience Ⅲ Extreme Express LLC, 29193 Northwestern Highway, Suite 742, Southfield, voluntary Chapter 7. As- Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing sets: $0; liabilities: $0. Natalie Broda 20150622-NEWS--0007-NAT-CCI-CD_-- 6/19/2015 3:16 PM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 7 Survey: No driver,no problem; insurance execs see little impact

By Dustin Walsh Of those surveyed, 84 percent plementation and effects of au- insurers must evaluate their expo- Findings ofsurveyon driverless vehicles [email protected] don’t expect autonomous vehicles tonomous cars on society. Only 29 sure and make necessary adjust- Don’t expect The automotive and tech indus- to significantly affect the insurance percent of those surveyed said they ments to their business models, % autonomous tries are confident in the future of business until 2025. felt knowledgeable about au- corporate strategy and operations.” 84 vehicles to autonomous vehicles, a new study Experts think significant portions tonomous vehicles. Even fewer, 10 The insurance executives, while significantly affect the insurance found, with many automakers and of driving will be automated by 2020, percent, had developed a strategy to skeptical of the technology’s im- business until 2025. suppliers thinking that many vehi- including where drivers don’t drive handle the likely shift in their busi- pact, say they do think the industry cles will be highly functional within traffic jams, on freeways or in ness plan. will change over the next 10 years. % Insurance out driver intervention by 2020. other highly predictable situations. “The disruption of autonomous Of note, 39 percent of respon- executives who felt The insurance industry, however, Fully driverless cars are expected vehicles to the entire automotive dents said they think new 29 knowledgeable is less convinced of the driverless- to reach 11.8 million units in the ecosystem will be profound, and providers will crop up to take on about the vehicles. car revolution, according to a study U.S. in 2035, said Egil Juliussen, an the change will happen faster than the driverless market. Fifty-eight released last week by the audit, tax analyst at IHS Automotive. And by most in the insurance industry percent of respondents cited au- % Insurance execs who and advisory firm KPMG LLP. 2050, he expects almost all cars to think,” Jerry Albright, a principal in tomakers as potential new insur- have strategy to The survey, “Automobile Insur- be self-driving. KPMG’s actuarial and insurance ance providers. Ⅲ 10 handle shift in their ance in the Era of Autonomous Ve- At issue is whether the insurance risk practice, said in a statement. Dustin Walsh: (313) 446-6042 business plan hicles,” asked senior executives executives are educated on the im- “To remain relevant in the future, Twitter: @dustinpwalsh representing $85 billion of the personal and commercial auto insurance industry about the impact of autonomous cars on their business. The results are a bit startling, given the potential pitfall that driverless cars could have on insurance and premiums. “HOW DID MR. BUCK TABLE TALK TRIM HIS ENERGY BILL?” 4 Northville bistros opening Four new restaurants have opened or are opening this summer After visiting DTE Energy’s online Lighting Advisor, Mr. Buck replaced old incandescent bulbs in downtown Northville: with more efﬁcient models to reduce lighting costs. He also adjusted his thermostat just a few Ⅲ Wok Asian Bistro, 144 Mary Alexan- der Court, is open and serves Asian degrees when his business was closed. Then he wrapped his water pipes and adjusted his hot fusion cuisine. Entrees are individual- water heater to save him even more. All in all, Mr. Buck says he saved around 10%, despite the ly cooked in a wok and can be created harsh winter. DTE Energy wants to help you give your costs a trim, too. from a recipe or based on diners’ tastes. The menu also includes appe- tizers, shared plates and desserts, including Wok’d Cheesecake. Ⅲ Urge Juice, 137 E. Main St., is open and serves handcrafted, cold- pressed raw juice and vegan snacks. Go to dteenergy.com/savenow today. Ⅲ Lucy & the Wolf, 102 E. Main, a Spanish-inspired small plates bistro, is scheduled to open within the next week. Ⅲ Center Street Grille, 135 N. Cen- ter St., is scheduled to open in July. Its menu will feature gourmet pizza, pasta, burgers, salads, sandwiches and a children’s menu. Roak pub opens

Royal Oak has a new pub with the opening of Roak Brewing Co., a 30- barrel brewhouse and 70-seat tap- room. It opened last week at 332 E. Lincoln Ave. More than 16,000 square feet of the 18,000-square-foot brewery is dedicated to the production and bottling of seven new Michigan-inspired craft brews. Roak beer is served in-house and distributed for sale in restaurants and retailers in Southeast Michigan. Roak employs more than 25, including Director of Operations John Rodopoulos; two brewers, Brandon MacClaren and Trace Redmond; and Chef Ralph Leone. Roak is open 4-10 p.m. Monday- Wednesday, noon-11 p.m. Thurs- day-Saturday and noon-10 p.m. Sunday. A menu features pizzas and other small plates. Ⅲ Laura Cassar

Send your restaurant and food industry news tips to Assistant Managing Editor Kristin Bull at [email protected] 20150622-NEWS--0008-NAT-CCI-CD_-- 6/19/2015 5:21 PM Page 1

8 CRAIN’S DETROIT BUSINESS // June 22, 2015 CRAIN’S DETROIT BUSINESS UAW president’s legacy rides on bridging tier-two pay gap OTHER VOICES: doing the same jobs is a bone in the changes to the practice — would be David Barkholz throat to any worker who cares to throw additional signing bonus about equal pay for equal work: In money at it when the contracts are OPINION Barkholz is information technology and other words, every breathing hourly ratified. An extra $4,000 for each labor reporter at Automotive News, a employee who turns a bolt, hangs a tier-two worker at FCA, for example, sister publication of Crain’s Detroit bumper, drives a forklift or other- would only cost FCA about $68 mil- Business. wise helps in building cars at De- lion. Even bumping the additional Find long-term fix troit 3 plants. signing bonus to $6,000 would be a AW President Dennis Williams At Ford Motor Co., the percent- bargain for the Detroit 3 that would Uflashed an unmistakable deter- age of tier two is 28 percent. At Gen- give tier-two workers a $3-an-hour mination to solve the union’s tier- eral Motors, it is 19 percent. raise for a year. These lump sums two dilemma during this year’s con- The Detroit 3’s four-year con- would be in addition to other sign- for road funding tract negotiations with the Detroit 3. tracts with the UAW expire Sept. 14. ing bonuses. In a final press conference last Two months ago, Automotive But to say my idea was poorly re- week before entering radio silence, News detailed how the Detroit 3 ceived by rank and file on various egislators are right to feel chastened by Proposal 1’s Williams said his members expect and their Canadian union, Unifor, worker Facebook pages would be overwhelming rejection last month. One of the clear him to close the wage disparity be- deal with entry-level workers. the understatement of the year. Lmessages was that voters were unhappy with the Leg- tween entry-level and more-senior As part of Unifor contracts nego- “Idiot” was the kindest thing said islature and the governor punting a complex, poorly ex- workers. He said he intended to de- tiated with the Detroit 3 in 2012, a about me for daring to suggest such plained plan onto the electorate, instead of solving the prob- liver on the promise he made to new hire can “grow into” full wages an approach. “bridge the gap.” over 10 years of designated raises. How tier two gets resolved will lem themselves. I’ll add that his legacy as an age- That’s different from the tier-two define Williams’ presidency. His Because of that, we understand the Legislature’s desire to limited, one-term president of the system in the United States, where predecessor, Bob King, staked his respond quickly by putting money into future budgets. (See UAW also depends on it, though I new hires can never achieve the top legacy on organizing a nonunion story, Page 6.) don’t for a second believe he’s con- wage of senior workers. automaker in the South and failed. However, we still would hope that whatever plan is settled cerned today about that legacy. Williams said at his press confer- Before King, Ron Gettelfinger He’s focused on moving past tier ence that the union has studied the had to deal with major concessions on would have a long-term, adequate source or sources of two — a practice that started at the model and others. It’s actually pretty and the offloading of retiree health funding instead of one that includes playing the hokey- Detroit 3 in 2007 intended as a tem- commonplace. U.S. school districts care from the Detroit 3 into inde- pokey with various pots of program budgets. porary measure to help the carmak- typically use a similar ladder to pendent trusts to help keep the do- While road funding is certainly the issue du jour, other state ers mend but has ballooned almost bring teachers up to maximum pay. mestics solvent. programs will fare better with a level of predictability as well. out of control. If Williams wants to go in that di- Tier two already is deeply en- As the UAW enters collective bar- rection with tier two, he’ll have bar- trenched at the Detroit 3. Fully 29 gaining for new, four-year contracts gaining counterparts at the Detroit percent of the combined 138,000 with each of the Detroit 3, Fiat 3 who said “yes” to that approach in hourly employees at the Detroit 3 Chrysler has a workforce that is 43 Canada. Whether it could work in are tier two. Evans does what’s needed percent tier two. Those workers U.S. plants is to be determined. Unless tier two is rolled back dur- start at wages of $16 an hour vs. $28 In my opinion, as I expressed in a ing these contract talks, it is liable to It hasn’t been easy being Wayne County Executive Warren an hour for their veteran coworkers. blog, the easy way to solve tier two become a permanent fixture in De- Evans. That disparity in pay for workers — without major structural troit 3 factories. The new county executive has been wrestling with a structural budget deficit since he took office in January. Last week, he asked for the state to declare a financial emergency. In response, the Michigan Department of Treasury said it will Duggan’s ‘D-Insurance’ begin a preliminary review. Pension funding shortfalls and property tax declines are the primary culprits; the former could be addressed under a would hurt more than help consent agreement. OTHER VOICES: After an auto accident, Detroiters state. If this spreads, it could be the Evans deserves commendation for moving forward expe- David Christensen would be entitled to a mere beginning of the end of the Michi- ditiously. A financial emergency is not ideal, but likely repre- $250,000 in “critical care” and a pal- gan no-fault system. Christensen is an auto accident try $25,000 in continuing care. This The proposal could also leave sents the county’s only chance not to end up in Chapter 9 attorney at Christensen Law with bankruptcy. cap applies to the total bills for doctors and other medical offices in Southfield and Ann Arbor. everyone in the vehicle insured by providers out of work. TALK ON THE WEB that policy. They may not even be D-Insurance will limit the doc- he “D-Insurance” automobile able to sue the at-fault driver for any tors that Detroiters can see to those insurance proposal that Mayor shortfall. Instead of the same care who are favored by the insurance Re: Compuware Building Olga’s Reader responses to stories and T Mike Duggan revealed on April 30 everyone else in Michigan receives, company. So doctors and other cost hurt chain,exec confirms blogs that appeared on Crain’s could hurt many more people than Detroiters with catastrophic in- medical providers may have to be website. Comments may be A little hard to believe that the it helps. juries will end up on the Medicaid pre-approved by the insurance edited for length and clarity. build-out of one store, in Com- The mayor believes his alterna- rolls, with substandard care. company first, then treat patients puware, drove the company and all need a government mandated pay tive no-fault auto insurance will be Depending on how judges read second. its locations into bankruptcy. There rate to justify their skills? more affordable for the residents of the new proposal, should it become Additionally, insurance compa- is more to this story than what’s being William J Detroit, so they won’t leave the city. law, all those unpaid medical ex- nies will pre-authorize treatments said. Sounds like too much growth, However, the proposal does noth- penses could fall on the shoulders and only grant coverage if the serv- too fast is the reason. Re: Pontiac Silverdome for sale ing to cut premiums, yet drastically of the at-fault driver. Since all driv- ice is “medically necessary, in the James Renn undercuts the protection Detroiters ers are potentially at-fault drivers, insurer’s opinion.” So if the treat- With its massive parking lot and need. everyone will need to buy much ment facility provides services with- Re: Prevailing wage bumps proximity to major freeways, this Duggan’s proposal would let De- higher collision coverage just in out pre-authorization, it won’t re- into skilled trades debate location would be a good mass troiters buy a “qualified no-fault case they hit a Detroit resident or ceive compensation. transit parking lot. policy,” which provides only very run the risk of having to pay hun- D-Insurance providers will be Little doubt that this proposal Thousands from the suburbs low benefits and eliminates pa- dreds of thousands of dollars out of permitted to second guess the treat- will result in lower wages for skilled could park here and take the rails tients’ medical treatment options pocket. ing doctors’ decisions regarding trades workers and therefore from Pontiac into Royal Oak, De- for Detroit residents. However, the Additionally, the D-Insurance critical care and when a patient is fewer of them, more money in the troit, Metro Airport, Ann Arbor proposal does not guarantee even policy is not limited to Detroiters. It considered “stabilized,” so lengthy hands of a few owners and no sav- and Chicago. The current park- one dollar of savings for Detroit res- would apply to any city where more and expensive litigation will be ings for taxpayers. ing lot for the Pontiac Amtrak idents. In exchange for no promise than half of the drivers are unin- needed to determine whether the MWAC station has a laughable few of any reduction in premiums, the sured. So if the proposal becomes doctor can be compensated. Skilled trades are valued dozen spaces. following changes would be im- law, it would also apply to many The “D-Insurance” proposal will everywhere. Do those workers Dave Gifford posed on Detroiters. other low-income areas across the hurt more than it helps. 20150622-NEWS--0009-NAT-CCI-CD_-- 6/19/2015 11:01 AM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 9 Wayne State names med school dean,adds liaison to partners

By Tom Henderson to the Association of American Med- and hires and fires the group’s prove UPG’s financial perform- [email protected] ical Colleges, president of the Univer- CEO. ance through compensation Wayne State University named a sity of Chicago Medical Center and On Nov. 17, four days before she changes. two-year dean for its school of med- executive director and COO of Penn stepped down as dean, Parisi fired Wilson said in his email June 17 icine and added a new position of State University’s Hershey Medical Robert Frank, then UPG’s CEO, for that both a university task force vice president for health affairs as Center. unspecified reasons. and ECG Management recom- part of efforts to improve relation- Hefner’s assignment is to begin At the time, Wilson told Crain’s: “I mended that the school add the ships with partners including Uni- July 1. think there is a general perception position of vice president for versity Physician Group, the Detroit Jack Sobel: David Hefner: In November, Crain’s reported that UPG is not as tied into the uni- health affairs. Medical Center and Henry Ford Named dean for Vice president for that the university had hired ECG versity and medical school as would Wilson said that Hefner’s term, Health System. two-year term health affairs Management Consultants to suggest be appropriate. There is frustration which ends on Dec. 31, 2016, pro- President M. Roy Wilson last more effective ways that the 2,000- in some quarters.” vides “sufficient time to assess week named Jack Sobel, M.D., dean Regents University; and CEO of Geor- physician UPG could interact with Sources then told Crain’s that whether or not we should recruit a of the school of medicine for two gia Regents Medical Center and Med- the university. Frank had clashed with university permanent vice president for health years and David Hefner to a new ical Associates. The UPG is an independent officials and some tenured faculty affairs.” Ⅲ position of vice president for health Before his positions with Georgia 501(c)(3) nonprofit, but the med- at the medical school over man- Tom Henderson: (313) 446-0337 affairs for an 18-month term. Regents, Hefner was senior adviser ical school dean chairs its board agement style and efforts to im- Twitter: @TomHenderson2 Last November, Sobel, an infec- tious-disease specialist, was appointed interim dean. He replaced Valerie Parisi, who became vice dean for faculty affairs at the Uni- versity of South Florida. “Jack is trusted and respected by the faculty and our hospital partners, and his intimate knowledge of the strengths and weaknesses of the school of medicine will benefit us greatly during his tenure. I antici- pate beginning a search for a long- term dean in about two years,” Wil- son wrote in an email last week to colleagues at the university. Wilson said Hefner will con- centrate on aligning the goals of the medical school with its partners. Previously, Hefner was executive vice president for health affairs at the Georgia Regents Health System in Augusta, Ga.; executive vice president for clinical affairs at Georgia Have a good day, for a long time to come. In the discipline of wealth management, you might ask if Greenleaf Trust is good Health Heroes sought Crain’s Detroit Business is seeking at everything. If that means everything you’ve worked for, everything you’ve nominations for Health Care Heroes, saved and invested for, and everything you hope your wealth can make a special report on health care professionals that will run in the Aug. possible from this generation forward, the answer is yes, yes and yes. 17 issue. With our client centric focus, goals-driven investment approach, and Winners will be chosen in five categories: the stability enabled by $7B in assets, we achieve remarkably Ⅲ Corporate achievement in good things for our clients day after day after day. health care: Honors a company that has created an innovative health Please call us to learn more. benefits plan or solved a problem in health care administration. Ⅲ Advancements in health care: Honors a company or individual responsible for a discovery or for developing a procedure, device or service that can save lives or improve quality of life. Ⅲ Physician: Honors a physician whose performance is considered exemplary. Ⅲ Allied health: Honors an individual from nursing or allied health fields who is deemed exemplary by patients and peers. Ⅲ Trustee: Honors leadership and distinguished service on a health care board. A panel of health care judges will choose the winners. Questions? Contact Jay Greene at (313) 446-0325 or 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 [email protected] The deadline for nominations: Wednesday, July 1 20150622-NEWS--0010-NAT-CCI-CD_-- 6/19/2015 11:02 AM Page 1

10 CRAIN’S DETROIT BUSINESS // June 22, 2015 Growing PACE aims to keep seniors out of nursing homes

By Jay Greene ed capacity with the proposed loca- mazoo, Auton said. The programs [email protected] Because PACE’s two Detroit centers tions is dependent on state ap- serve 1,300 participants with a max- PACE Southeast Michigan, a De- are bursting at the seams, it plans to proval. imum capacity of 3,000. troit-based senior daycare and expand into Oakland and Macomb “We won’t buy or build,” Naber Two others will open this year in health services program, has cut av- said. “We help investors find a Flint through Genesys and in Jack- erage annual health care costs for counties and add at least four satellite building and we will pay a lease son with United Methodist Retirement seniors enrolled in its coordinated locations. rate.” Communities Inc. and Region 2 Area care program below that of the an- In early 2016, PACE hopes to lo- Agency on Aging, Auton said. nual costs of nursing home care. frail population,” Naber said. Medicaid, PACE — the Program of cate a small alternative care setting “Ninety to 94 percent of partici- PACE’s annual costs per PACE Southeast, which formerly All-Inclusive Care for the Elderly — site in the Southfield/Oak pants are dual-eligible (Medicare Medicare recipi- was called the Center for Senior In- has 107 branches nationally, includ- Park/Farmington Hills area and the and Medicaid beneficiaries),” Auton ent are 26 per- dependence since its founding in ing eight in Michigan, said Rod Dearborn/Dearborn Heights area, said. “PACE deals with the most cent lower than 1994, is a nonprofit organization co- Auton, executive director of PACE and in the Westland/Livonia area frail, more complicated (dual eligi- at a long-term owned by Henry Ford Health System Association of Michigan. sometime in 2017, Naber said. ble beneficiaries).” care facility — and Presbyterian Villages of Michigan. Because PACE Southeast’s two “We’ve been assigned these ZIP Eligible individuals, whose aver- $72,000 com- Its 2013 Form 990 shows assets of centers in Detroit are bursting at the codes by the state,” said Laurie age age is about 83, must be at least pared with $4.6 million, down $543,000 from seams with nearly 400 seniors with Arora, spokesman for PACE South- 55, certified to need nursing home $97,000 per year, the year before. projections for 500 by end of this east. “Our goal is to position sites care, able to live safely in the com- said Mary Naber, Its two centers are at Detroit year, Naber said the plan is to ex- closer to where seniors live so they munity at the time of enrollment Mary Naber: CEO CEO of PACE Northwest College Park, 7800 W. pand into Oakland and Macomb can access our comprehensive serv- and live in a PACE service area. of PACE Southeast Southeast. Outer Drive, and the Thome River- counties and add at least four satel- ices — allowing them to remain in- Seniors have regular medical, “Our interdis- town Neighborhood at 250 Mc- lite locations. dependent in their home for as long dental, audiology and behavioral ciplinary team Dougall Ave. PACE Southeast was recently ap- as possible.” health appointments, if necessary, Department of proactively communicates and co- The senior center changed its proved by the state Since 2005, when the second at each of PACE’s two centers, coor- Health and Human Services ordinates holistic care to prevent name to PACE Southeast earlier this to expand PACE program began in Grand dinated by Gwendolyn Graddy, avoidable emergency visits, hospi- year to reflect its 20-year participa- to Warren this summer to serve Rapids, six other programs have M.D., PACE’s medical director the talizations and nursing home place- tion with the national PACE pro- southern Macomb County to ac- opened in seven cities — Lansing, last 14 years. They also receive nu- ments, thus providing higher quali- gram, Naber said. commodate 50 to 65 participants in Saginaw, Ypsilanti, St. Joseph, tritional, pharmaceutical, rehabili- ty care at a lower cost for this very Funded jointly by Medicare and a 9,300-square-foot center. Project- Muskegon, Battle Creek and Kala- tative and transportation services. “The seniors that PACE South- east Michigan services have multiple, chronic conditions,” Graddy said. “The care coordination available through this program allows participants to receive services when and where they need it. Staying in front of challenging conditions helps keep our participants healthier, re- duces avoidable hospitalizations, and enables them to remain independent in their own homes.” If a PACE enrollee ultimately needs nursing home care, the PACE program pays for it and continues to coordinate the enrollee’s care. Some 7 percent of PACE members live in a nursing home. “Not only is (PACE Southeast) reaching a mass of frail older adults in the Detroit area, but the partnership of Henry Ford and Presbyterian Villages is creating housing and other services to help keep the seniors at home,” Auton said. In 2015, PACE Southeast’s budget is $30 million, which is based on Our reliable, High-Speed Fixed Wireless service provides number of participants. Funding speeds up to 1 Gbps over secure wireless links. comes from per member per With fast installation and a network that stretches month payments from Medicaid across the state of Michigan, 123Net gives you and Medicare, which total about high-speed without the hassle. $6,000 per enrollee. Later this year, PACE will begin a fundraising campaign to seek grants from foundations and others to fund safety improvements in seniors’ homes, Naber said. “We need help to pay for repairs and upgrades on participants’ homes,” Naber said. “Some need additional security – locks on doors. We have installed wheelchair ramps for homes (where a participant needs wheelchair access). We paid the water bill for one resident.” YOUR BACKBONE FOR BUSINESS “Everything we do is preventive, to enable (seniors) to safely live in FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET their homes for as long as they can,” Naber said. Ⅲ

Jay Greene: (313) 446-0325 Twitter: @jaybgreene 20150622-NEWS--0011-NAT-CCI-CD_-- 6/19/2015 11:03 AM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 11 SPECIAL REPORT

CHAD HALCOM Reporter’s Notebook WEB: [email protected] TWITTER: @chadhalcom An inventor feeling LAW:INTELLECTUAL PROPERTY some good vibrations Glen Moore sold his contracts and closed his Oakland County cleaning company more than a decade ago, but he hasn’t given up trying to ease the workload for jani- torial service workers — or commercializing his ideas. Moore, 70, former co-owner of Corporate Facility Services LLC in Rochester and now a partner at VacBarrel LLC in Roseville, said that late last year he filed the patent application for an anti-vibration floor scrubber like the kind used to polish tile floors in schools and offices. This month, he sold the first unit, which he built at a Ferndale maker space, to a Macomb County school district that he declined to identify. Talks are underway with several > makers of cleaning equipment about producing and distributing products. The floor scrubber features a sys- Copyright tem of rings that attach to the engine or mechanical housing of the machine, with motion isolators to reduce the vibration that carries into conundrum the handle and lessen the stress of repetitive motion for the worker. The floor cleaning device, which Moore tentatively calls FastScrub, is actually the third major approach in cleaning products for his company in just over 10 years. Exemption pros and cons “The most important thing is that Do rules for literature, The issue: An exemption in digital copyright law would allow car owners, the part where the person grips the tinkerers, mechanics and others to bypass technology protection and gain handle, that the vibrations don’t access to electronic control units or software and computer data used to occur there,” he said. “My system re- control systems involved in functions such as braking, steering, airbag duces the vibrations in the entire music also govern cars? deployment and speed control. Also affected: agriculture equipment. machine.” Proponents say … Consumer advocates and trade associations such as the In April, Moore had a patent is- Electronic Frontier Foundation and Specialty Equipment Market Association sued for the vibration-dampening By Chad Halcom One of several exemptions think car enthusiasts and farmers and others should be able to repair, diagnose, [email protected] floor scrubber system by the U.S. under review would allow car customize and upgrade software-controlled machines. Patent and Trademark Office, said his he U.S. Copyright Office will owners, tinkerers, mechanics and Opponents say … Companies including General Motors Co. and Deere & Co. attorney, Jeffrey Sadowski of Royal likely decide within others to bypass technology pro- along with the Alliance of Automobile Manufacturers claim the software Oak-based Howard & Howard Attorneys T months whether a law tection measures and gain access controls help ensure user safety and comply with federal emission control, fuel PLLC. VacBarrel has applied to patent written partly to protect literature to electronic control units, or economy and other regulations. variations of the same vibration con- and music copyrights in the digi- software and computer data used trol in other products, such as a tal age also prevents car owners to control various systems. The hand-held sander, and those appli- and mechanics from making ve- systems involved range from asts and farmers and others should limitation on what you could do cations are pending, Sadowski said. hicle repairs or braking and be able to repair, diagnose, cus- to repair or modify your own car Previously, Moore had sought a diagnoses. “It used to be that steering to tomize and upgrade software-con- was your level of knowledge,” patent in 2001 and obtained it in That the only airbag deploy- trolled machines “in a decades-old said Matt Mowers, partner in the 2004 for a DollyVac, which inte- federal ment and speed tradition of mechanical curiosity automotive practice and an IP grates a conventional vacuum agency, a limitation control in mod- and self-reliance.” attorney in the Southfield office cleaner with a garbage container on division of on what you ern automo- But companies including Gen- of Warner Norcross & Judd LLP, a dolly cart. In 2011, he patented a the Library biles. Also in- eral Motors Co. and Deere & Co. have which has several automotive backpack-mounted vacuum that of Congress, could do to cluded: opposed the exemption, as does supplier clients and is following connects with a portable cart and held hear- repair or agricultural the Alliance of Automobile Manufac- the copyright issue. recharges its battery. ings last equipment. turers. They have argued that the “Now the car is so much more “We are getting the manufactur- month and modify your Consumer software controls often allow the electronic these days, (and) the ing process in order for our floor expects own car was advocates and companies to ensure user safety new limitation might be whether scrubbers now,” Moore said. “We supple- your level of trade associa- and comply with federal emission we can still make sure that soft- belong to a hacker space, … and we mental materials tions like the control, fuel economy and other ware systems are operating as they built our prototypes there using all from attorneys knowledge.” Electronic Fron- regulations. were designed.” of their (equipment and some ex- shortly in its reg- tier Foundation Attorneys expect a decision to GM, in particular, argues that pertise from) members who had ular three-year Matt Mowers,WarnerNorcross & Judd and the Specialty come by late summer or fall. An open access to the software could skills we did not have.” review of pro- Equipment Mar- exemption, if granted, would be compromise those protections or Moore said he has held one posed exemptions to the specific ket Association support creating an subject to renewal every three put corrupted “vulnerable” soft- meeting with a cleaning equipment law involved: the Digital Millenni- exemption to the digital copyright years. manufacturer about licensing and um Copyright Act of 1998. law. Their argument: Car enthusi- “It used to be that the only See COPYRIGHT, Page 13 producing his products, and two more are planned. Ⅲ Inside: Ups and downs of number of local IP attorneys, Page 13 | The ante rises on patent cases, Page 15 DBpageAD_DBpageAD.qxd 6/11/2015 12:33 PM Page 1

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CRAIN’S DETROIT BUSINESS // June 22, 2015 13 SPECIAL REPORT: INTELLECTUAL PROPERTY In patent law,there’s no standing pat

While IP-focused firms shed attorneys, general practice firms hold steady or beef up

By Chad Halcom news service owned by LexisNexis, facts and law behind them aren’t “Here we’re search and analysis on professional [email protected] reported in March that eight na- airtight. Another factor in the past seeing an in- service firms. The traditional intellectual prop- tional IP year is a surge in challenges to the crease in de- “Up until a couple years ago, erty boutique law firm is grappling Case studies: firms, includ- validity of patents at the U.S. Patent mand for our lit- there were no real big settlements with a slowdown in traditional Rulings up ante ing three and Trademark Office. igation services, in IP litigation,” he said. “Every- patent litigation, and many firms on patent cases. with a metro These new proceedings, created but that’s proba- thing was fought tooth and nail to are adjusting their size or shifting IP firms look Detroit pres- or redefined by the federal America bly a cost-con- protect your IP, and you never their areas of emphasis to adapt. beyone litigation ence, re- Invents Act of 2011, are an increas- sciousness issue knew what a court case’s effect on But it’s too soon to know whether for growth. duced head ingly popular tool to either resolve lit- from the clients your product line was, so you did- these shifts are normal course cor- Both on Page 15 count com- igation or avoid it completely. A great Glenn Forbis: who are moving n’t want to settle. rections for particular firms or more pared with a deal of litigation gets put on hold in Staffing fluctuation away from some “Now corporate counsel has significant, long-term changes to year ago. They are Troy-based Har- federal court if one side initiates one normal turnover of the other na- more information, and with some this prominent practice area. ness Dickey & Pierce PLC; Chicago- of these reviews at the patent office. tional firms,” recent rulings and settlements, Five of the 10 largest law firms de- based Brinks Gilson & Lione, which Forbis said. “As a firm with (110) there’s an increased comfort with voted primarily to IP in metro Detroit has 19 attorneys in Ann Arbor; and Firm strategy lawyers, we can get into those understanding the risks.” reported shedding attorneys in the Connecticut-based Cantor Colburn Meanwhile, some larger busi- spaces to pick up clients and court At the same time, Rynowecer region between June 2013 and Janu- LLP, which has a Troy office. ness law firms are hunting for solo cases that don’t demand marquis said, some of the patent lawsuits ary of this year, according to law firm But of these, only Harness Dickey practitioner or boutique patent liti- name coverage but do need pro- that do go forward have high stakes data submitted to Crain’s. saw a local contraction compared gators to beef up their own IP prac- fessional service.” — requiring highly specialized Meanwhile, 10 of the 13 larger with last year in Crain’s data, at 59 tices, in a move to offer high-stakes General practice law firms with lawyers, clients that will pay more to general practice business law firms local attorneys. litigation service to some clients, sizable IP practices are picking up litigate and firms with a greater with an IP law practice or depart- The litigation slowdown, attor- experts said. lawyers in those practice areas — range of legal expertise. Several ment either held steady or grew their neys said, stems from three U.S. Glenn Forbis, a senior litigation firms such as Detroit-based Honig- larger business law firms have been IP head count in the same period. Supreme Court rulings last year that partner at Harness Dickey, said the man Miller Schwartz & Cohn LLP, Royal beefing up IP practices just for that Law360.com, the online legal make patent lawsuits riskier if the firm was likely seeing only a normal Oak-based Howard & Howard Attor- kind of litigation, he said. periodic fluctuation or turnover in neys PLLC and Grand Rapids-based attorneys at the beginning of the Warner Norcross & Judd LLP, which Game-changing cases year. The firm as a whole has been has local offices in Southfield and One big game-changer in IP law, COPYRIGHT,from Page 11 growing since the end of the last re- Macomb County. local attorneys said, was Alice Corp. cession, he said. So why aren’t the dedicated IP v. CLS Bank International, a ruling ware into the automotive consumer for consumers. Patent litigation demand is actu- boutiques seeing the same growth? that invalidated a series of 1999 market. In addition, GM argues, “Historically, they (the copyright ally growing, too, but Forbis said Several factors are creating chal- patents and found last June that consumers already have ways to ac- office) just haven’t been very gener- that he suspects IP litigation as a lenges for those firms, said Michael abstract business methods may cess the software for repairs without ous with exemptions,” he said. “In whole is contracting nationwide Rynowecer, president and founder not be patented when computers skirting copyright law. fact, the last rule-making there to and that his firm is landing a bigger of Massachusetts-based BTI Consult- “Allowing individuals to access get a lot of attention had to do with piece of a smaller pie. ing Group Inc., which provides re- See PATENT LAW, Page 14 and make modifications to vehicle unlocking phones. The Copyright software risks altering vehicle sys- Office denied it, and Congress was tems such that they no longer com- so incensed they went on to reverse ply with federal regulatory require- it by statute.” ments and weakening the complex Congress enacted the Unlocking safety and security framework,” the Consumer Choice and Wireless Every deal, every regulation and every piece of litigation automaker states in comments sub- Competition Act after the last copy- that touches your organization represents a possibility mitted to the copyright office in right office review of the digital as well as a pitfall. That’s where you come in. March. copyright act in 2012 limited con- As compliance watchdog, asset protector, risk mitigator “Any adverse safety, performance sumers’ ability to and business strategy advisor for your organization, or compliance issues that result change carriers you and your team need access to a broad range of from the affected uses will directly for some smart- authoritative legal, news and business information— and negatively impact the value of phones. as well as the analytical tools to help you make sense of it all. the copyrighted work.” Creating a Another issue the copyright of- new protection Evolving to keep pace with today’s legal needs and fice will likely address is whether for car owners tomorrow’s challenges, the Lexis Advance® car and farm equipment buyers now, Rothchild platform is your best place to start. own the software within the vehi- said, also doesn’t Learn more at lexisnexis.com/advance. cle or simply have a license to use John Rothchild: mean it will it. Mowers said making the soft- “Each exemption is carry forward ware open for public access could only good for three through the next also discourage important re- years.” three-year research and development and view in 2017-18, mean regular software infringe- once the copyright office can see ment for the automakers. the effects “If I’m trying to read the tea of its previous decisions. leaves, it’s likely the Library of Con- “Each of the exemptions is only gress will take some steps to allow good for three years, and the default access, but not make any signifi- position when they expire is that cant precedential decision here,” there is no exemption,” he said. he said. “In some of the previous “They may decide after three years (exemption) hearings, very few of use that it didn’t create the uses changes were made, but as soft- that were expected. ware becomes to have more appli- “A decision this time might be cations in our lives, this will likely considered on the expertise or get more review.” opinion of interested parties, and I DON’T JUST MANAGE RISK. I TURN IT INTO OPPORTUNITY. John Rothchild, an associate pro- next time a decision might be made fessor at Wayne State University Law more on what available data is out School who teaches copyright law, there to work with.” also said history suggests the office Chad Halcom: (313) 446-6796 LexisNexis, Lexis Advance and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under license. © 2015 LexisNexis. All rights reserved. LA201402 won’t create broad new protections Twitter: @chadhalcom 20150622-NEWS--0013,0014-NAT-CCI-CD_-- 6/19/2015 11:47 AM Page 2

14 CRAIN’S DETROIT BUSINESS // June 22, 2015 SPECIAL REPORT: INTELLECTUAL PROPERTY PATENTLAW,from Page 13: IP firms shed attorneys; general practice firms steady or rising

apply them. Course correction? Another is Octane Fitness LLC v. Changes in number of local IP attorneys Icon Health & Fitness Inc., which Brooks Kushman has added some attorneys said could be curtail- Local attorneys Local IP attorneys more than a ing tenuous lawsuits because it made at IP focused firms Jun-13 Jan-15 at business law firms Jun-13 Jan-15 dozen attorneys it easier for winners to collect attor- Brooks Kushman PC 64 80 Dickinson Wright PLLC 31 38 since 2013, and ney fee awards against the losers in Harness Dickey & Pierce PLC 64 59 Honigman Miller Cantor thinks patent litigation (See story, Page 15). Young Basile Schwartz and Cohn LLP 30 34 the shift in The Nautilus Inc. v. Biosig Instru- Hanlon & MacFarlane PC 24 36 where some IP Howard & Howard ments Inc. ruling last June also found Reising Ethington PC 18 20 attorneys prac- Attorneys PLLC 31 32 that some patents could be invalidat- Carlson Gaskey & Olds PC 20 19 tice, from litiga- ed for “indefiniteness” in their claims. Brinks Gilson & Lione 16 19 Bodman PLC 16 16 tion to patent The Alice ruling, the Supreme Fishman Stewart Warner Norcross & Judd LLP 4 12 Mark Cantor: challenges, is Court’s first on software patentabili- Suspects the shift temporary. Yamaguchi PLLC 20 18 Miller Canfield ty in more than 30 years, found that Gifford, Krass, Sprinkle, in where some IP “I think what’s Paddock and Stone PLC 1 12 attorneys practice an algorithm to gauge and elimi- Anderson & Citowski 19 17 really happened nate “settlement risk” and transac- Jaffe Raitt Heuer & Weiss PC 6 10 is temporary is (court) cases Quinn Law Group PLLC 17 16 tion defaults was essentially a digi- have been Cantor Colburn 9 11 Butzel Long PC 6 6 tal version of the concept of escrow. stayed, and patent litigation hours Bejin Bieneman 6 10 Foley & Lardner LLP 4 5 But the case also could make other are just being shifted to the (inter Dobrusin Law Firm 6 9 software patents easier to challenge, Garan Lucow Miller PC 7 5 partes review) stage while everyone MacMillan Sobanski & Todd 4 5 and some attorneys said companies Varnum LLP 1 3 figures out their effectiveness as a Carrier Blackman Assoc 5 5 could be wary of suing infringers if Dykema Gossett PLLC 5 3 tool,” he said. “And the change will it exposes their own patents to dis- Dierker & Associates 3 4 probably be correcting itself in Secrest, Wardle, Lynch PC 4 2 pute because of Alice. Warn Partners 4 4 maybe two years as many of the dis- Also, the America Invents Act of TOTAL 299 332 TOTAL 146 178 putes come out of the patent office 2011 created a new mechanism for and back into court.” challenging the validity of patents at reviews, pending at the patent of- Another kind of review, called a Mark Cantor, president of South- Scott McBain, managing partner of the U.S. Patent and Trademark Of- fice than there are patent lawsuits covered business method review, field-based Brooks Kushman PC, said the Troy office of Cantor Colburn, said fice, based on evidence that inven- at any given federal court in the was also created by the America In- he thinks the litigation slowdown is head count has held steady for the tions were previously known. country, Forbis said. vents Act and has been growing in coupled with a corresponding local office in the past two years, and That review tool has proved Inter partes reviews are proceed- recent months, according to patent uptick in inter partes review busi- he called the contraction that Law360 quite popular, and lawsuits rou- ings before the patent office’s Patent office data. Covered business meth- ness — a trend the Patent and reported for the firm “a statistically in- tinely get stayed in federal court Trial and Appeal Board to challenge the ods are patented methods or tech- Trademark Office confirms in a sta- significant snapshot.” He also said while the validity challenges are validity of a patent based on prior niques to manage financial prod- tistical report released this month software companies in particular pending. Currently, there are more inventions or a body of knowledge ucts or services, as distinct from on patent challenges related to the may fear Alice, but how substantial of those cases, called inter partes that may question its originality. technological patents. 2011 act. that fear is remains to be seen. Theodore Olds, president and CEO of Birmingham-based Carlson Gaskey & Olds PC, said his firm has held fairly steady in head count but THE MILLER LAW FIRM shifted recently to hiring attorneys Changing the Odds in our Clients’ Favor with commercial litigation and other experience outside IP. He also said administrative review work is growing at the firm, but it may not necessarily be a permanent shift within IP law. The firm also has picked up some automotive IP work recently, he said, diversifying from its mix of medical device makers and nonautomotive manufacturers that were its core client base for years. “We had a lot of infringement litigation work to cover for Rainbow Loom (Choon’s Design LLC of Wixom, makers of the bracelet-making loom kits),” Olds said. “Every body we could find had to be on top of that for a while, but that’s not as hot or ur- gent now as it was two years ago.” “One of my early firm managers talked about business having a piston effect — as one client’s work goes down, another goes up.” Inter partes review also has grown steadily in the past two years as an alternative to patent litigation, Olds said. The Miller Law Firm is Recognized He also noted that larger firms often want to grow their IP practices as a Leader in Complex Business Litigation and compete with the boutiques, but the trend can be cyclical — several firms, including his own, were Q Q Automotive supplier counseling Commercial and business lawsuits born in part out of practice groups that amassed within larger law Q Q Employment litigation Shareholder and partnership disputes firms but eventually struck out on Referral fees honored on contingency fee cases their own. “The grass is always greener, 950 West University Drive, Suite 300 somewhere,” Olds said. Ⅲ Rochester, Michigan 48307 248-841-2200 millerlawpc.com Chad Halcom: (313) 446-6796 Twitter: @chadhalcom 20150622-NEWS--0015-NAT-CCI-CD_-- 6/19/2015 11:44 AM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 15 SPECIAL REPORT: INTELLECTUAL PROPERTY Ruling ups ante on IP firms look beyond litigation for growth By Chad Halcom putes for software companies. and Trademark Office based on evi- [email protected] Young Basile has had an office in dence from prior inventions or There’s more to running an intel- California for around 10 years, and knowledge. patent cases where lectual property law firm than filing Basile said Silicon Valley tech “I know patent prosecutions patent lawsuits, and a handful of clients including Google Inc. keep (seeking new patents at the patent firms in metro Detroit are seeing the firm busy on a range of issues. office) and trademarks have also substantial growth outside the tra- “Our patent litigation practice is grown for us,” Cantor said, “but an- there is no case ditional litigation practice, which flat, and I do think there’s some po- other big piece of the puzzle” are has experienced recent upheaval. tential for conventional patent liti- the reviews, Cantor said. “And it’s By Chad Halcom after you win if you can show the While a majority of IP boutiques gation and even patent filings to di- hard to know how to categorize [email protected] other side was very much on notice in the region have seen a flat or minish, given recent changes” in that work because it becomes sort Filing or defending patent in- about the risk of fees early on.” falling IP attorney head count in the the law, he said. “But our response of a prosecution-litigation hybrid.” fringement lawsuits when you don’t Legislation in the works past two years, Troy-based Young has been to figure out where the Also growing in Southeast have a case probably will get much Basile Hanlon & MacFarlane PC has trends play to our other fundamen- Michigan are the Chicago-based IP costlier soon, since a U.S. Supreme The House Judiciary Committee grown to about 35 attorneys be- tal strengths.” firm Brinks Gilson & Lione PC, which Court ruling and two bills in Con- is considering the Innovation Act, tween its headquarters and its Ann California and software also have maintains an office in Ann Arbor gress would make it easier for win- which proposes several modifica- Arbor office, with a half-dozen more been ingredients in the success of and had 19 local attorneys as of ners to collect attorney fees. tions to the America Invents Act of in Chicago and Palo Alto, Calif. Brooks Kushman PC, said law firm earlier this year; and Detroit-based Troy-based Harness, Dickey & 2011, including a provision that Andrew Basile Jr., president and President Mark Cantor — along Bejin VanOphem & Bieneman PLC. Pierce PLC, an intellectual property would shift fees to losing parties in a shareholder of the law firm, said with licensing agreements, trade- Bejin Bieneman was incorporat- law firm with more than 110 attor- some lawsuits. The Senate Judiciary the growth has come from a com- mark law and litigation over copy- ed in 2012, and Brinks Gilson neys in four offices nationwide, was Committee this month reported a bination of trademark law and rights or theft of trade secrets. The added a Detroit office at the end of on the winning side of Octane Fit- similar Protecting American Talent some transactional work, such as firm, with Southfield and Los Ange- that year. Both located at the Stroh ness LLC v. Icon Health & Fitness Inc. and Entrepreneurship Act, or acquisitions for technology com- les offices, has nearly 90 attorneys, River Place building in Detroit In that case, the Supreme Court PATENT Act, with a cost-shifting panies with expansive IP portfolios. about 80 of them in Michigan. shortly after the Elijah J. McCoy broadened the definition of “excep- clause, to the floor of the chamber Also a growth driver: some related But also keeping attorneys busy, satellite office of the Patent and tional cases” where one side pays by a 16-4 vote. commercial litigation outside of he said, are inter partes reviews — Trademark Office opened there. Ⅲ the other’s legal bills. Litigation partners Richard patent infringement — theft of trade or administrative challenges to a Chad Halcom: (313) 446-6796 Before 2014’s Octane decision — Hoffman and Michael Druzinski of secrets or vendor and customer dis- patent’s validity at the U.S. Patent Twitter: @chadhalcom which was an infringement dispute Troy-based Reising Ethington PC said between two fitness equipment the Supreme Court ruling only al- makers in Minnesota and Utah over lows federal judges to award fees a component of elliptical workout based on their discretion, while machines — the courts took “excep- the Senate’s PATENT Act could re- tional” to mean one side in court quire fee awards unless exception- committed misconduct or a case al circumstances apply. was clearly baseless and brought in “In theory, this should help deter isn’t a solo sport. bad faith. abusive patent practices by making Success But the high court took the word it riskier to initiate truly frivolous to mean “not typical” or a case patent infringement suits for the “stands out from others with re- sole purpose of trying to extort a spect to the strength” of one side’s settlement for less than the cost of position. litigation.” But Harness Dickey’s Telscher Fee awards rise said he thinks the extra measures in Since then, attorney awards have Congress may be unnecessary. been on a sharp climb in other “I’m a firm be- patent suits nationwide, according to liever that Con- the Federal Court Bar Association. gress should take In an April report for members of a stab at stop- the House Judiciary Committee, the ping bad patent association noted that 36 percent of litigation,” fee requests had been granted in Telscher said. the year since Octane, including “(But) with a trio 50 percent in the first quarter of of recent court 2015. That compares with just 13 RudyTelscher: All rulings including percent of requests granted in the the ingredients are Octane now in year before Octane. there for the letting place, I think all The ruling is considered a boon the courts decide. of the ingredi- for businesses defending litigation ents are there for against patent trolls, or companies letting the courts deal with this par- that hold patent portfolios without ticular issue. commercializing the technology so “And any time you get legislative they possibly can file infringement action, you always get the risk of hav- litigation. It also could shorten pro- ing both the intended effect and un- tracted litigation against large com- intended consequence. In trying to panies that infringe on the patents prevent trolls, you don’t want meas- of small businesses but expect to ures that deter inventors with legiti- T he automotive industry is a Butzel Long has been part of the tough and competitive arena. If automotive industry from its outlast a plaintiff with limited re- mate cases. You don’t want to risk not it’s not growth strategy, recall, or beginnings. Our experience, sources in court. protecting small business as well.” supply chain protection keeping innovative strategy, and global reach “I haven’t yet had a chance to file Samuel Haidle, an attorney who you awake at night, then perhaps combine to help guide you down the another motion for fees since Oc- practices intellectual property law at it’s the threat that, just around the road that lies ahead. It has helped tane, but I have been able to raise the Howard & Howard Attorneys PLLC in bend, someone might be targeting many a client get to sleep at night issue of fees if a party won’t settle or Royal Oak, said he was unaware of your company’s technology and knowing that we’re on their team. insists on going forward in court, to anyone at the firm or in the local legal talent. To keep ahead of the race, Shouldn’t we be on yours? you need guidance from a partner help bring a resolution,” said Rudy community collecting a judgment that knows how to handle the Trust. Always. Telscher, a partner in the St. Louis of- for attorney fees since Octane — but curves that come your way. fice of Harness Dickey and lead he suspects it’s only a matter of time. Octane Fitness counsel for in the “It’s going to happen,” he said. butzel.com Supreme Court case. “Because the “But those requests probably still

other side has exposure now. need to be (heard in court, and) a Ann Arbor • Bloomfield Hills • Detroit • Lansing • New York • Washington, D.C. • Alliance Offices Worldwide • 313-225-7000 “It can make a (federal) district lot of your facts have to line up judge more inclined to award fees right.” Ⅲ 20150622-NEWS--0016-NAT-CCI-CD_-- 6/19/2015 11:47 AM Page 1

16 CRAIN’S DETROIT BUSINESS // June 22, 2015 Creditor creates potential snag in Chassix plan to leave bankruptcy

By Chad Halcom “But I would doubt it that this Other unsecured creditors in the [email protected] (derails the Chassix plan). The bankruptcy include Grede Holdings Southfield-based Chassix Holdings bankruptcy code has enough flexi- LLC and Central Corp., both of South- Inc. could have trouble winning ap- bility in it that debtor plans can still field and owed more than $4 million proval from a class of trade creditors go forward without every question combined, according to a Chassix for its plan to exit bankruptcy if In- necessarily resolved, claims with creditor list. Ⅲ dianapolis-based Allison Transmis- pending litigation notwithstand- Chad Halcom: (313) 446-6796 sion Inc. can get its litigation claim ing.” Twitter: @chadhalcom against Chassix temporarily valued at $1.1 billion. Chassix, which reported annual Turn your revenue of about $1.4 billion in a Let’s Talk Trash trash to cash statement this year, awaits a hearing Wednesday before Judge If you pay to have recyclable waste hauled away, such as plastic, paper, or metal you are missing a great opportunity to increase your net income. Michael Wiles of U.S. Bankruptcy Court in New York City on Allison’s request to give its pending lawsuit claim in Marion County, Ind., a temporary value. Creditors were supposed to vote by Friday on whether to approve the payment terms in Chassix’s April 24 reorganization plan before a confir- mation hearing June 30. But Allison will get an extension until Wiles can hear arguments and decide on the breach-of-contract suit. Chassix, a supplier of chassis, brake and powertrain components Schedule your FREE Waste Audit To See How Much You Can Save that is owned by Tom Gores’ Platinum Equity LLC, filed for Chapter 11 bank- Servicing the Entire State of Michigan ruptcy March 12, claiming it owes Email [email protected] more than $525 million to bond- Call Robert, Rick or Stu (248) 668-0800 holders and more than $65 million to other classes of creditors includ- RECYCLING SOLUTIONS FOR BUSINESS SINCE 1917 ing other auto suppliers, materials manufacturers and staffing companies. But Allison, which this year brought a breach-of-contract lawsuit against a handful of U.S. sub- sidiaries of Chassix before the bankruptcy, wants to get about 18 claims temporarily valued at more than $65 million each for purposes of creditor voting ballots on the plan. Although it would be temporary and not binding on the Indiana suit, the valuation could effectively give Allison sole decision-making power over whether one class of creditors approves Chassix’s restructuring plan. The U.S. bankruptcy code requires a debtor to gain approval from a majority of creditors by number within one class, representing more than two-thirds of the class claims by value, in order for the whole class of creditors to be considered on board with an exit plan. Chassix, which calls Allison its largest trade creditor in court plead- ings, is asking Judge Wiles to give the litigation claim a value of $1 for voting purposes. Tom Radom, a shareholder at Butzel Long PC, which represents a different creditor in the case, said that he was unfamiliar with the Alli- son claim but that it is not uncom- mon for attorneys to argue for the highest valuation possible. “In these types of bankruptcies where there is a lot at stake, the supplier is going to put its best case forward,” Radom said. “Whether he can prove he is owed $1 billion is really another question. 20150622-NEWS--0017-NAT-CCI-CD_-- 6/19/2015 11:20 AM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 17

WEDNESDAY Michigan, looks at the importance of JUNE 24 risk-taking strategies for careers in An evening with Zack Urlocker. health care. St. John Macomb- 5:30-8:30 p.m. TIE Detroit and Ann CALENDAR Oakland Hospital. $20 Inforum Arbor Spark. Urlocker, COO at Duo tact: Lisa Gibala-Warren, (586) 383- General Motors. Westin Book Cadil- members, $30 nonmembers. Security, a venture-backed startup Crain’shonors 20 in their 1465; email: [email protected]; lac. $40 Inforum members, $55 Website: inforummichigan.org. in Ann Arbor, will talk about how to 20s,Class of 2015 www.bit.ly/SMDayDet. nonmembers, $25 students, $500 scale your business. Spark Central, table sponsor (includes table of 10 Best Strategies in Supplier Diversity Ann Arbor. Free. Contact: (248) 254- Join Crain’s in honoring its Pearls of Wisdom. 5:30-7:30 p.m. with preferred seating and recogni- Luncheon. Noon-2 p.m. Aug. 19. Di- 4043; email: [email protected]. 10th class of 20 in their 20s: the July 1. Michigan Association for Fe- tion in event presentation). Web- versity Information Resources. Eric best and brightest up-and-com- male Entrepreneurs. Connect with site: inforummichigan.org. Holder Jr., former U.S. attorney THURSDAY ing businesspeople in Southeast other women and learn more about general, will speak. $124. Detroit JUNE 25 Michigan. planning for the future. Beans & Crain’s 2015 CFO of the Year Awards. Marriott Renaissance Center. Doing Business in Mexico. 8-11:30 The event is 5-9 p.m. June 29 at Cornbread, Southfield. $32. 7:30-10 a.m. July 23. Crain’s Detroit Contact: Betsy Gabler (612) 781- a.m. Automation Alley. A discussion HopCat Detroit, 4265 Woodward Contact: Tonya McNeal-Weary, Business. A panel discussion with 6819; email: info@diversityinfo on the changing dynamics of doing Ave., Detroit, and includes 2015 (313) 363-4075; email: the top financial executives from resources.com. business in Mexico, Michigan’s honorees, friends, family, past re- [email protected]. Detroit’s four major professional largest export market. Speakers: cipients, food and an open bar. teams. The Henry, Dearborn. $75 Email Marketing for Success. 8:30- Noel Nevshehir, director of interna- Tickets are $50 individual, $45 Veterans: The Untapped Talent individual, $800 reserved table of 10:00 a.m. Aug. 25. Troy Chamber of tional business, Automation Alley; each for groups of 10 or more, Pool. 10 a.m.-1 p.m. July 14. Automa- 10. Preregistration closes at 9 a.m. Commerce. Kim Schott of Constant Juan Manuel Solana, Consul of Mexi- $40 for alumni. Preregistration tion Alley. Season 2 of the “Michi- July 21. If available, walk-in registra- Contact on marketing activities co, Consulate of Mexico; Eve Lerman, closes at 9 a.m. June 26. If avail- gan’s Got Talent” event series is a tion will be $90 per person. Con- that help a small business or or- senior international trade special- able, walk-in registration will be seminar focused on hiring veterans. tact: Kacey Anderson, (313) 446- ganization to achieve its goals ist, U.S. Department of Commerce; $60 per person. David Dunckel, Roush Veterans Initia- 0300; email: [email protected]. and objectives. Northwood Uni- David Newhouse, international trade For information, contact Kacey tives Program manager, will speak versity, Troy. $10, free for Troy development manager, Michigan Anderson (313) 446-0300; email: about the program. Automation New Enterprise Forum. 5-7:30 p.m. Chamber members. Contact: Jaimi Economic Development Corp. $20 pre- [email protected]; website: Alley headquarters, Troy. $20 mem- July 23. Ann Arbor Spark. Training Brook, (248) 641-0031; registered members, $40 nonmem- crainsdetroit.com/events. bers, $40 nonmembers, $30 walk-in entrepreneurs on how to present email: [email protected]. bers, free for foundation, $30 walk- members, $50 walk-in nonmem- to investors. Three entrepreneurs in members, $50 walk-in bers. Preregistration closes July 10. each give a 4-minute pitch of their David Anderson nonmembers. Preregistration clos- Guests include , co- Contact: (800) 427-5100; email: business idea to a panel of in- Calendar guidelines. Visit June 23 Bamboo Detroit Jake es at 1 p.m. . Automation founder at ; [email protected]. vestor judges in a kinder version crainsdetroit.com and click “Events” Cohen Detroit Alley, Troy. Contact: (800) 427-5100; , managing partner at of television’s “Shark Tank.” Spark near the top of the home page. Venture Partners Edi Demaj A New Automotive Era email: [email protected]. ; , co- . 11:30 a.m.- Central, Ann Arbor. Free. Contact: Then, click “Submit Your Events” Rocket Fiber Michael July 15 founder at ; 1:30 p.m. . Inforum. In her (734) 214-0110; email: from the drop-down menu that will Evans Loveland UPCOMING EVENTS , senior developer at book Road to Power: How GM’s [email protected] appear. Fill out the submission form, Mashable’s 6th Annual Social Media Technologies Jill Ford and , head of in- Mary Barra Shattered the Glass Ceil- then click “Submit event” at the Day June 26 Laura Colby HealthcareNext: Risk-Taking Strate- . 5:30-10 p.m. . Social novation and entrepreneurship at ing, author describes bottom of the page. Media Association of Michigan. the City of Detroit. MotorCity Casino the personal character, choices and gies. 7:30-9:30 a.m. July 28. Inforum. Fireside chat on the topic of tech- Hotel, Detroit. $55, $35 Social leadership style that steered Barra’s Laura Byars, vice president human More Calendar items can be nology’s role in a resurgent city. Media Association members. 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CRAIN’S DETROIT BUSINESS // June 22, 2015 19 CRAIN'S LIST: LARGEST OEM PARTS SUPPLIERS Ranked by 2014 automotive original-equipment parts sales Company OEM sales OEM sales Rank Address ($000,000) ($000,000) Percent Phone; website Top local executive(s) 2014 2013 change Products B C Johnson Controls - Automotive Experience Beda Bolzenius, vice chairman, $23,589.0 $21,781.0 8.3% Automotive seating systems and interiors 1 49200 Halyard Drive, Plymouth 48170 Johnson Controls; president, (734) 254-5000; www.johnsoncontrols.com Automotive Experience D Magna International of America Inc. Jim Tobin 19,616.0 17,643.0 11.2 Body, chassis, interior, exterior, seating, powertrain, electronic, vision, 2 750 Tower Drive, Troy 48098 chief marketing officer and president, closure, and roof systems and modules, vehicle engineering and contract (248) 631-1100; www.magna.com Magna Asia manufacturing. B Lear Corp. Matthew Simoncini 17,727.0 16,234.0 9.2 Seating and electrical 3 21557 Telegraph Road, Southfield 48033 president and CEO (248) 447-1500; www.lear.com E D ZF TRW John Plant, CEO, TRW and Franz 16,240.0 14,442.0 12.4 Automotive braking products 4 12001 Tech Center Drive, Livonia 48150 Kleiner, CEO designate, ZF TRW (734) 855-2600; www.trwauto.com Delphi Automotive plc Kevin Clark 16,002.0 16,463.0 -2.8 Global supplier of electronics and technologies for automotive, commercial 5 5725 Delphi Drive, Troy 48098 CEO vehicle and other market segments (248) 813-2000; www.delphi.com D Robert Bosch LLC Mike Mansuetti 8,406.0 7,233.0 16.2 Automotive brake components; diesel and gasoline fuel injection systems; 6 38000 Hills Tech Drive, Farmington Hills 48331 president linear motion and assembly technologies; range of automotive spare parts as (248) 876-1000; www.boschusa.com well as diagnostic and repair shop solutions B B BorgWarner Inc. James Verrier 8,305.1 7,437.0 11.7 Engine and drivetrain systems and components 7 3850 Hamlin Road, Auburn Hills 48326 president and CEO (248) 754-9200; www.borgwarner.com B B Continental Automotive Systems U.S. Inc. Samir Salman 7,916.0 7,705.0 2.7 Tires, stability management systems, electronic chassis systems, brake 8 1 Continental Drive, Auburn Hills 48326 CEO, Continental, North America systems (248) 393-5300; www.conti-online.com F B Visteon Corp. Sachin Lawande 7,509.0 7,439.0 0.9 Climate controls, electronics, interiors 9 1 Village Center Drive, Van Buren Township 48111 CEO (734) 710-5000; www.visteon.com D D Denso International America Inc. Sadahiro "Sam" Usui 7,169.0 7,077.0 1.3 Automotive air conditioning and engine cooling components and systems, 10 24777 Denso Drive, Southfield 48033 CEO including condensers, radiators, CRFMs (condenser, radiator, and fan (248) 350-7500; www.densocorp-na.com modules), heater cores, evaporators and HVAC units Faurecia North America Mark Stidham, president, Faurecia 6,200.0 6,250.0 -0.8 Automotive seating, emissions control technologies, interior systems, 11 2800 High Meadow Circle, Auburn Hills 48326 North America automotive exteriors (248) 724-5100; na.faurecia.com International Automotive Components (IAC) James Kamsickas, president and CEO 5,900.0 5,200.0 13.5 Instrument panels, cockpits, door panels, headliners, flooring, acoustic 12 28333 Telegraph Road, Southfield 48034 systems, exterior components (248) 455-7000; www.iacgroup.com B B Mobis North America Chung Myung-Chul, president and 5,541.0 5,207.0 6.4 Chassis, cockpit and front-end modules; ABS, ESC, MDPS, ASV parts, LED 13 23255 Commerce Drive, Farmington Hills 48335 CEO lamps, sensors, electronic control systems, airbags, hybrid powertrains, (248) 426-5577; www.mobis.co.kr parts and power control units Aisin World Corp. of America Masayasu "Mike" Saito 4,722.0 4,357.0 8.4 Body, brake and chassis systems; electronics; drivetrain and engine 14 15300 Centennial Drive, Northville 48168 president and CEO components (734) 453-5551; www.aisinworld.com B ZF North America Inc. Julio Caspari, president 4,438.0 4,268.0 4.0 Transmissions, steering systems, suspension components, axles, clutches, 15 15811 Centennial Drive, Northville Township 48168 dampers (734) 416-6200; www.zf.com Federal-Mogul Holdings Corp. Rainer Jueckstock, co-CEO, co- 4,400.0 4,200.0 4.8 Engine bearings; pistons; piston rings; sealing systems; ignition products; 27300 W. 11 Mile Road, Tower 300, Southfield 48034 chairman and CEO, Federal-Mogul systems protection products; valvetrain products; braking, lighting and 16 (248) 354-7700; www.federalmogul.com Powertrain and Daniel Ninivaggi, co- wiper products CEO, co-chairman and CEO, Federal- Mogul Motorparts Yazaki North America Inc. Nigel Thompson 3,800.0 3,800.0 0.0 Connection systems, electrical distribution systems, electronic components, 17 6801 Haggerty Road, Canton Township 48187 president and CEO instrumentation (734) 983-1000; www.yazaki-na.com American Axle & Manufacturing Holdings Inc. David Dauch, chairman, president 3,696.0 3,207.3 15.2 Driveline and drivetrain components and systems 18 One Dauch Drive, Detroit 48211 and CEO (313) 758-2000; www.aam.com TI Automotive Ltd. Bill Kozyra 3,300.0 3,200.0 3.1 Automotive fluid storage, carrying and delivery technology 19 1272 Doris Road, Auburn Hills 48326 chairman, president and CEO (248) 494-5000; www.tiautomotive.com D Cooper-Standard Holdings Inc. Jeffrey Edwards 3,244.0 3,090.5 5.0 Sealing and trim, fuel and brake delivery, fluid transfer and anti-vibration 20 39550 Orchard Hill Place Drive, Novi 48375 chairman, president and CEO systems (248) 596-5900; www.cooperstandard.com B B Autoliv North America Steve Fredin, president, the Americas 3,142.0 2,905.0 8.2 Airbags, inflators, seatbelts, electronics, steering wheels 21 1320 Pacific Drive, Auburn Hills 48326 (248) 475-9000; www.autoliv.com Dow Automotive/Related Businesses Steve Henderson, president 2,800.0 2,600.0 7.7 Composites, structural and elastic adhesives, acoustic-management 22 1250 Harmon Road, Auburn Hills 48326 systems, chassis applications (248) 391-6300; www.dowautomotive.com Valeo Inc. Francoise Colpron, president, Valeo 2,800.0 2,590.0 8.1 Electrical systems, transmission systems, engine management systems, air 150 Stephenson Highway, Troy 48083 North America management systems, hybrid and electric vehicle systems, climate control, 22 (248) 619-8300; www.valeo.com powertrain thermal systems, compressors, front-end modules, driving assistance, interior controls, interior electronics, access mechanisms, lighting systems, wiper systems, wiper motors B B Mahle Industries Inc. Roland Zitt 2,664.0 1,871.0 42.4 Vehicle air conditioning and engine cooling 24 23030 Mahle Drive, Farmington Hills 48335 president (248) 305-8200; www.us.mahle.com D B JTEKT Automotive Group Cos. Noriya Murase 2,576.0 1,930.0 33.5 Bearings, steering systems, driveline 25 47771 Halyard Drive, Plymouth 48170 president (734) 454-1500; www.jtekt-na.com

This list of automotive suppliers is an approximate compilation. For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for worldwide OEM sales. For divisions of foreign-owned companies, figure is for North American OEM sales. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B From Automotive News. C Includes OEM sales from power solutions division. D Automotive News estimate. E TRW Automotive Holdings Corp. merged into ZF Friedrichshafen AG May 15, 2015. F To succeed Tim Leuliette on June 29. 20150622-NEWS--0020-NAT-CCI-CD_-- 6/19/2015 11:11 AM Page 1

20 CRAIN’S DETROIT BUSINESS // June 22, 2015

LAW PEOPLE S. Rae Gross to shareholder, Ogle- tree, Deakins, Nash, Smoak & Stewart ON THE MOVE PC, from director Send news items and photos to [email protected] and assistant general counsel, SPOTLIGHT labor and employment, DTE JOHN HENDRICKSON, Gross Energy Co., De- COO, Ramco-Gershenson troit.

John Hendrickson has been ap- MANUFACTURING pointed COO Sindy Klonke to 102.69 acre Former Military Housing Site of Ramco-Ger- business Chesterfield Township, Michigan Jordan Maloney shenson Prop- development erties Trust in manager, Detroit x Roads x Two miles from I-94 HOSPITALITY Farmington market, Dennen x Water/Sewer Lines x Zoned R1-B, Residential Joe Jordan to Hills. Steel Corp., x Storm Drains x All former military housing x Telecommunication Vault structures have been removed vice president, Hendrick- Rochester Hills, chief marketing son, 43, has from program officer, Domino’s more than 20 manager, Sogefi Sealed Bid Auction! Bid Opening 7/15/15! Call for Details! Pizza Inc., Ann Hendrickson years of real Klonke Engine Systems OPEN HOUSE FRIDAY JUNE 26 FROM 10:00 AM – 4:00 PM U.S. General Services Administration Arbor, from estate experi- USA Inc., Rich Balsano / 312-353-0302 / realestatesales.gov vice president ence, the last 16 of which were Rochester Hills. of field market- with Federal Realty Trust, where ing. Also Dennis he most recently was regional MARKETING Oswald Maloney to vice COO in charge of thes Northeast Carrie Sweeney president, chief region and head of thes East to senior ac- digital officer, Coast mixed-use division. count director, from vice presi- He holds a BBA from George MVP Collaborative dent of multi- Washington University. Inc., Madison GHDForensicsLLC media market- Heights, from ing; Julia Oswald account direc- to vice presi- People on the Move tor, Duffy Pet- Experience Expertise. dent, head of announcements are limited to Sweeney rosky & Co., strategy and in- management positions. Email Farmington Sweeney sights, Domino’s [email protected]. Hills. USA, from vice Include person’s name, new title, • Accounting work as it pertains to president, marketing strategy company, city in which the person Marie Stawasz to litigation matters and insights; and Debbie Sweeney will work, former title, former senior account company (if not promoted from • Representing plantiffs and defendents in to vice president of national field executive, Franco civil and criminal cases and Team USA marketing, from within) and former city in which the Public Relations director of national field market- person worked. Photos are Group, Detroit, ing, Domino’s Pizza Inc., Balti- welcome, but we cannot guarantee from account ex- A wholly owned David J. Hammel, CPA, CFE, CFF more. they will be used. Stawasz ecutive. subsidiary of: President For information regarding the services provided by GHD Forensics, LLC, contact +,( David J. Hammel, CPA, CFE, CFF at '4%7 %(:-7367 [email protected]. ACQUISITIONS & DEALS Antoine’s Salon of Troy, Troy, is MERGERS now the exclusive distributor and Huron Capital Partners LLC, De- provider in the Midwest of Hair troit, announced that its portfolio Botox by RG Cosmetics, Pompano 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 & DETAILS Submit news to [email protected] Beach, Fla. Websites: 586-772-8100 | www.ghdcpa.com company Jensen Hughes Inc., Balti- more, a provider of specialty en- antoinesalonoftroy.com, gineering and consulting services rgcosmetics.com. for the built environment, has BestDrive LLC and its parent com- merged with Erin Engineering and pany, Continental Tire the Americas NEW SERVICES ViMax Media LLC, Southfield, a Research Inc., Walnut Creek, LLC, Fort Mill, S.C., opened Best- custom-branded content market- Calif., a nuclear safety and relia- Drive Great Lakes Commercial Tire and bility consulting firm. Websites: ing agency, has launched a Retread Facility, 22100 Trolley Indus- huroncapital.com, jensen new company website at hughes.com. trial Drive, Taylor. Telephone: (313) vimaxmedia.com. 203-1350. Website: continental- EXPANSIONS truck.com. STARTUPS Ulta Salon, Cosmetics & Fragrance 168 Asian Market has opened at Inc., Bolingbrook, Ill., has opened Domino’s Pizza Inc., Ann Arbor, 32393 John R Road, Madison an Ulta Beauty store at Macomb has opened its first store in Portu- Heights. Ricky Dong is the owner. Telephone: (248) 929-1868. Mall, 32295 Gratiot Ave., Space gal, in the Telheiras area of Lisbon. 680, Roseville. Telephone: (586) Website: dominos.com. The Detroit Bubble Tea Co., has 296-2559. Website: ulta.com. opened at 22821 Woodward Ave., NEW PRODUCTS Ferndale. The company was SVS Vision Optical Centers, Mount Hirschmann Solutions, Auburn started by Arun Prasad and Alycia Clemens, has opened an optical Hills, a supplier of antenna and Courneya. Telephone: center at 41472 E. Ann Arbor transceiver systems and a business (248) 239-1131. Website: Road, Plymouth Township. Tele- unit of Hirschmann Car Communica- detroitbubbletea.com. phone: (734) 233-6500. Website: tion GmbH svsvision.com. , Germany, expanded its iridium transceiver antenna Deals & Details guidelines. Email [email protected]. Kelley Cawthorne system product family with the , Lansing, a lob- Use any Deals & Details item as a bying firm, has opened an office new Iridium 9602 (N) modem op- model for your release, and look for at the Fisher Building, 3011 W. tion for heavy-duty trucking the appropriate category. Without Grand Blvd., Suite 2600, Room and equipment markets. complete information, your item will 109, Detroit. Telephone: (313) Additionally, the entire product not run. Photos are welcome, but we 293-7477. Website: kelley- family is now CE certified. Website: cannot guarantee they will be used. cawthorne.com. hirschmann-solutions.com. 20150622-NEWS--0021-NAT-CCI-CD_-- 6/19/2015 3:16 PM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 21 Bill would ban questions,discrimination over contraceptive use LANSING — Employers would the Senate’s government operations Rick Snyder could not veto. be the only way to visit the Capitol, be barred from asking employees or committee. Hertel’s bill, Senate Bill 63, was which LunaTech CEO Doug Willett job candidates about their use of Angela Wittrock, Ananich’s introduced in January and has been says will be great for school groups contraceptives under legislation in- spokeswoman, said the bill is in re- pending in the Senate’s insurance and other far-flung visitors. troduced by Senate Democrats. sponse to the 2014 Supreme Court committee. Roberts’ bill will be LunaTech, founded in 2008, uses The Employee Contraceptive Pri- ruling on Hobby Lobby, which allows House Bill 4764. Google Inc.’s Street View technology vacy Act, as the bill would be some family-owned companies to to give virtual life to restaurants, ho- known, also would prevent employ- LINSDAY opt out of providing contraceptive Capitol tour tels and other businesses. ers from discriminating against em- VANHULLE coverage. The company will use its Inner- ployees or potential hires if they Separately, Sen. Curtis Hertel, D- Michigan’s Capitol is getting the act software with the tour, which choose not to disclose whether they Capitol Briefings Meridian Township, and Rep. Sarah Google treatment. links visitors to videos and other in- use birth control or if they file a [email protected] Roberts, D-St. Clair Shores, have in- Novi-based LunaTech 3D plans to teractive features about the loca- complaint alleging their employer troduced bills in both chambers to photograph the entire building — tion, Willett said. violated the act. Ananich, D-Flint, the bill’s sponsor, repeal a law that requires women to inside, out and possibly from the air It’s part of an effort to open up Employees or job applicants said in a statement. “There is no purchase additional insurance cov- — as part of a virtual tour that could the Capitol to more visitors, both would be allowed to file a civil suit reason an employer should be in- erage for abortions with their health go live later this year. physical and virtual, said John Tr- seeking damages or injunctive relief. volved in anyone’s health care deci- insurance policies. The Michigan Capitol Commission, uscott, a Lansing public relations “Your boss has a say in what you sions, and this legislation makes The Legislature approved the law which oversees the 136-year-old executive and vice chairman of the do when you’re on the clock — not that clear.” in December 2013. Right to Life of statehouse, awarded the $9,950 Capitol Commission. The group is when you’re at the doctor’s office,” Senate Bill 397 was introduced Michigan initiated the legislation contract. finishing up a photography sched- Senate Minority Leader Jim this month and has been referred to through a petition drive, which Gov. Soon, trekking to Lansing won’t ule so LunaTech can get to work. REAL ESTATE MARKET PLACE

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The Crain’s reader: FINANCE EXECUTIVE DIRECTOR Birmingham Education Foundation Tax Manager, Private Company Services, 26.5% influence the PricewaterhouseCoopers LLP, Detroit, MI. Birmingham, Michigan Provide advice on tax matters faced by private The Executive Director is responsible for the purchase of office/industrial companies throughout business cycle, from development and growth of the Birmingham inception to growth, & maturity to transition. Req. Education Foundation, which includes (but is and commercial space. Master’s or foreign equiv. in Accounting or rel. + not limited to) all fund development, donor 3 yrs of rel. exp., or Bachelor’s or foreign equiv. in relations, marketing, grant review and award Help them find you by Accounting or rel. + 5 yrs of post-bach. processes, management of financial resources, Crain’s Progressive rel. exp. Certified Public Accountant coordination of volunteers and compliance with advertising in Real (CPA)/Enrolled Agent/Member of Bar req’d. all local and state regulations regarding the Estate section. Travel up to 20% of the time is required. Foundation. The Executive Director reports to Please apply by mail and supports the Board of Directors, is referencing job code: DETTAX responsible for fostering communications and 313.446.6086 • FAX: 313.446.034 7 Attn: HR SSC/Talent Management, positive public relations with key stakeholders E-Mail: cdbclassi [email protected] 4040 West Boy Scout Boulevard, including parents, school administration, school f Tampa, FL 33607 staff, the Birmingham Public Schools Board of Education, local business community, community at large, and donors. Salary: $45,000-$55,000 plus incentives, Starting Date: August 2015. Interested candidates please visit our website: Call Us For Personalized www.supportbef.org for complete job description. Candidates Service: (313) 446-6068 meeting the qualifications must submit a LETTER OF INTEREST & CURRENT RESUME FAX: (313) 446-034 7 by July 3, 2015 to: E-MAIL: cdbclassified @crain.com [email protected] INTERNET: www.crainsdetroit.com/section/classifieds Call or email today for information See on a custom advertising plan! Crainsdetroit.com/Section/Classifieds [email protected] for more classified advertisements 313.446.6068 20150622-NEWS--0022-NAT-CCI-CD_-- 6/19/2015 6:36 PM Page 1

22 CRAIN’S DETROIT BUSINESS // June 22, 2015 Prism Plastics seeks to expand with medical acquisition

By Dustin Walsh medical work. After no success, it U.S. suppliers processing more plier International Automotive Compo- were not disclosed. [email protected] hired advisory firm Stout Risius Ross than 4.4 billion pounds of plastic nents Group, the largest automotive In May, Prism announced it On a mission to more than triple Inc. in Southfield to find acquisition this year, Harry Hamme, formerly of injection molder in North America, planned to invest $3.5 million to add revenue in the next five years, Prism targets. Becton, Dickinson and Co., told Crain’s supplies the medical industry with new equipment at its plants in Plastics Inc. is seeking a bolt-on ac- “The best way to show them sister publication Plastics News. molded equipment through a sub- Chesterfield Township and Harlin- quisition to enter the growing med- we’re committed is to make a state- Chuck Hadden, president and sidiary created in 2012 called IAC Cre- gen, Texas. Prism invested $2 million ical industry. ment by acquiring a medical mold- CEO of the Michigan Manufacturers ative LLC. in additional capacity at the two Prism, a Chesterfield Township- er,” Phillips said. Association, said those large num- David Ladd, executive director of plants in 2013, a move expected to based plastic injection molder, Prism is seeking a medical mold- bers are causing Michigan compa- marketing and communications at boost production by 20 percent. manufactures plastic components er with revenue between $10 mil- nies to jump at the chance to supply IAC, said if a company has extensive Those plants, along with its plant for automotive safety parts such as lion and $20 million, Phillips said, medical. automotive molding and materials in Port Huron, supply parts to sev- seatbelts and fuel system compo- and expects a deal to be completed According to the association’s expertise, several industries open eral tier-one auto suppliers includ- nents. But the medical industry of- in the next six months. 2015 Manufacturing Survey, 29 per- up beyond automotive. ing Takata Corp., Nexteer Automotive fers stable opportunities that could Phillips said medical is expected to cent of Michigan manufacturers are IAC Creative also supplies plastic Corp. and TI Automotive Inc. combat the ebb and flow of auto- make up one-third of Prism’s revenue already supplying the medical in- injection-molded parts and prod- Phillips said no medical work will motive demand, said Gerry Phillips, mix by 2020. Prism plans to more dustry. ucts to the recreational vehicle and be done at its existing plants. It also vice president and co-founder. than triple revenue to $100 million in “In the last decade, manufacturers consumer appliance industries, but plans to open a fourth automotive “We’ve tried in the past to break 2020 from $30 million in 2014. learned a valuable lesson on the im- those products make up only a very plant at an undetermined location. into the medical industry using a The money is there, if an expan- portance of diversifying their cus- small part of its overall $3.1 billion “We’re enjoying a great growth nonacquisition strategy with no sion into the medical industry is tomer base,” Hadden said in an in revenue, Ladd said. rate and we’re in great shape,” success,” Phillips said. “The auto in- successful. emailed statement. “(Medical) is not Prism, which employs 74, has Phillips said. “We definitely don’t dustry is cyclical, so when it’s down, Because of aging populations the largest sector manufacturers sup- been expanding since its acquisi- need to be in medical, but this is a many auto molders rush out to bid and technology advancements, the ply to, but one that will continue to tion last year by Connecticut pri- desire because we believe we can do in other industries, but as soon as U.S. medical device industry is grow as our population ages, making vate equity firm Altus Capital Part- great things in that space even auto picks back up again they go nearly a $60 billion industry in 2015. it a viable choice for manufacturers ners II LP. Phillips and other though a lot of our competitors have away. This doesn’t sit well with med- The global market for plastic in to look to expand their customer co-founders Rod Bricker and the tried to diversify here and failed.” Ⅲ ical customers.” the medical industry is expected to base.” late Jerry Williams retained an Dustin Walsh: (313) 446-6042 Prism tried for years to bid on reach $34.9 billion by 2016, with Southfield-based automotive sup- ownership stake in the deal. Terms Twitter: @dustinpwalsh

SHINOLA,from Page 1: ‘Friends and family’ plan raises $125 million to expand company

and around downtown Detroit. capital firm of Bedrock Manufacturing is an in- Cascade Partners vestment firm Kartsotis founded LLC. and which owns Shinola and C.C. Fil- “Having a few son Co., the Seattle-based manufac- stores is one turer of upscale outdoor gear. thing, but adding Shinola product lines range from more and lever- the company’s signature watches to aging the growth bicycles and leather goods. Filson Raj Kothari: of the brand, can produces a range of clothing, lug- “Leveraging the be very expen- gage and accessories. growth of the brand sive. Could Shi- The Bedrock Manufacturing can be very nola do it on its funding round was managed by expensive.” own? Absolutely. Revolution Growth, the well-known But Shinola is a venture capital fund led by Chair- hot brand, and while your brand’s man and CEO Steve Case, a co- hot, you want to take advantage of founder of AOL, and Ted Leonsis, that as fast as you can,” he said. founder and managing partner. “Raising money can help you ex- Leonsis is founder, chairman and ecute your plan and reach your end majority owner of Monumental results quicker. And it increases Sports & Entertainment. Monumen- your certainty of success.” tal Sports owns the Washington Capi- Kresge’s role tals of the National Hockey League, the Washington Wizards of the National SHINOLA Rob Manilla, CIO for the Kresge Basketball Association, the Washing- Raj Kothari of venture capital firm Cascade Partners: “Shinola is a hot brand, and while your brand’s hot, you want to take advantage Foundation, said in a statement that ton Mystics of the WNBA and the Veri- of that as fast as you can.” the foundation’s investment “will zon Center in downtown Washing- help power the continued growth of ton, D.C. man of Quicken Loans Inc. and Rock day that the Bedrock investment is ness owners who (Bedrock Manufacturing’s) Shinola “As we were exploring methods Ventures, provided the following Revolution Growth’s largest to date. need capital to and Filson brands while creating for financing new initiatives, we statement to Crain’s: In addition, he said that he and grow,” said jobs in Detroit and across America.” met the folks from Revolution “We are excited to participate in the Donn Davis, managing partner of Demkowicz, Kresge is investing in Bedrock Growth,” Kartsotis said, adding that latest round of financing for Bedrock Revolution Growth and another for- whose private Manufacturing through the mission- the multitude of new opportunities Manufacturing (no relation to mer AOL senior executive, accepted equity company driven portion of its endowment that the Filson and Shinola brands Bedrock Real Estate Services), the invitations to serve on Bedrock generally invests portfolio, said Jennifer Kulczycki, di- present to Bedrock manufacturing owner of Detroit-based Shinola. The Manufacturing’s board. in healthy com- rector of external affairs and com- on a daily basis are unique. Shinola brand reflects intense passion Timely strategy Brian Demkowicz: panies to help munications for the foundation. Those new initiatives include for the city and is the exact type of in- “Can’t count on the them grow. “The Bedrock Manufacturing job manufacturing of products like novative, assembly and manufactur- Local private equity experts said credit markets.” “From what I creation opportunities that the in- headphones and turntables. ing company being built in Detroit. the investment makes sense as know about Dan, vestment supports aligns with Kres- Kartsotis, the founder and former “Influential investors such as Ted Bedrock Manufacturing plans to ex- this seems to be a great fit, a good ge’s mission: To promote human chairman and CEO of watch, hand- Leonsis, Steve Case and the Kresge pand its businesses. marriage that’s great for Detroit.” progress. bag and clothing maker Fossil, Foundation, along with our Rock “I know some of the Shinola Shinola needed the capital infu- “This investment advances our founded Shinola four years ago. Shi- Ventures team, believe in the op- folks. I know they’re looking to ex- sion to get to the next level partly mission specifically by creating ac- nola has stores in Detroit, Ann portunity that is Detroit. Together pand quite rapidly. You need capital due to its specific product seg- cess and opportunity in under- Arbor, New York City, Los Angeles, we will work toward our common to do that, and you can’t count on ments, another expert said. served communities and assisting Washington, D.C., Minneapolis, goal of transforming the city into a the credit markets to do it,” said “Shinola is a consumer-brand in the revitalization of Detroit.” Ⅲ Chicago, London and Plano. high-tech, entrepreneurial wealth Brian Demkowicz, managing part- company, and building out prod- Sherri Welch contributed to this report. Bedrock Manufacturing did not and job creating center.” ner of Detroit-based Huron Capital ucts to grow the brand can be ex- Kirk Pinho: (313) 446-0412 disclose the names of any other in- Leonsis, also a former vice chair- Partners LLC. pensive,” said Raj Kothari, manag- Twitter: @kirkpinhoCDB vestors in the new funding round. man and president of AOL, said on “This is a business situation we ing director of the Southfield-based Tom Henderson: (313) 446-0337 Gilbert, the founder and chair- his blog, Ted’s Take, in a post Thurs- deal with all the time, talking to busi- investment banking and venture Twitter: @TomHenderson2 20150622-NEWS--0023-NAT-CCI-CD_-- 6/19/2015 4:55 PM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 23 BUILDINGS,from Page 1: Fisher, Kahn among downtown structures eyed for multifamily use

priced out of downtown and Mid- assets, much more complex than town. Sources have estimated that the Albert Kahn some of your smaller, 50,000- to Brokers say there would be no Building,like the Fisher Building,will fetch $20 100,000-square-foot assets.” shortage of prospective office ten- to $30 a square foot at auction this week.That Barbat, who also is CEO and ants, either. would make the purchase price for both as high chairman of Southfield-based Wire- Demand drivers as $27.8 million. less Toyz and chairman of the West Bloomfield Township-based real es- New Center is a key employment tate investment and management and education hub, with Henry Ford company Barbat Holdings LLC, said Health System and the College for Cre- his Regis House apartments will be ative Studies, plus thousands of office ready for occupancy in the fourth employees in the Fisher and Kahn quarter. They will rent for around buildings as well as New Center One $1.75 a square foot — or $875 a and Cadillac Place. These workers are month for a 500-square-foot studio increasingly looking for nearby hous- or $1,312 for a 750-square-foot one- ing. bedroom. “You’re running out of room in Huez said he agreed that both downtown to get apartments. Peo- buildings would be suited for a par- ple are looking and there are no va- tial residential conversion. Because cancies,” said Chris Futo, a senior both have good commercial uses associate specializing in multifami- on their lower levels, some of the ly housing in the Southfield office of floors above that space would be Marcus & Millichap. ideal for apartments or condomini- According to the most recent “7.2 ums. Square Mile” report by the Hudson- In the more opulent Fisher Build- Webber Foundation, more than 1,300 ing, the units could be pricier, start- new multifamily units were opened ing around the 11th floor and up, in greater downtown between 2000 with the lower floors that aren’t ded- and 2010. That marked a 5 percent icated to retail remaining office increase that brought the 7.2- space. Meanwhile, in the Kahn, the square-mile area to 26,722 units. third to seventh floors are appropri- But in the years since, thousands ate for multifamily use, Huez said. of additional units have been pro- “The Fisher Building would be posed or completed in the area, so able to offer much higher-level far largely in downtown, Midtown amenities to its residents as well as a and Corktown. COSTAR GROUP INC. more grandiose environment and There is, however, growing de- should be aimed at a high-end mand to spur new projects. West coasts with clientele,” he said. Jonathan Holtzman, CEO of Who might bid on Fisher, Kahn buildings? high interest in Still, Holtzman reiterated that Farmington Hills-based Village Green Here are some of the possible bidders on the Fisher Building and Albert Kahn the properties. conversion of either building must Ltd. — whose Building as identified by real estate sources. Other bidders are expected to They have ex- make economic sense and that any company plans emerge during the June 22-24 auction. perience with redeveloper would have to be pre- to build the significant rede- pared for a long, grueling process. Statler City Apart- Fernando Palazuelo, owner of the 3.5 million-square-foot Packard plant.He velopment proj- “Look at Broderick Tower. That ments with 250- said in a February interview with Crain’s that he’s interested in the properties. ects in major took almost 10 years, and that was 300 units at Dan Gilbert, founder and chairman of Quicken Loans Inc. and Rock Ventures cities such as only 100 apartments,” he said. “The Washington LLC. Last month, his Bedrock Real Estate Services LLC bought two New Center Matt Lester: Plans New York City, (David) Whitney took six or seven Boulevard and area parking decks totaling 1,800 spaces at 116 Lothrop Road and 6540 Cass Ave. to bid on both Philadelphia and years, and that’s 100 apartments. In buildings Park Avenue — New York City-based HFZ Capital Group, a real estate investment and Los Angeles, he Capitol Park, they are doing 75 Jonathan said greater development company. The company’s website says it is developing and said, declining to apartments at a time, and that Holtzman: downtown needs managing more than 5 million square feet of Manhattan real estate. Ziel name them specifically. probably took five years.” Thousands more at least 5,000 new “Their plans include anywhere Feldman is chairman and founder. Deal forecast rental units needed rental units per from 20 to 30 to even 40 percent of each year. Bloomfield Township-based Princeton Enterprises LLC, whose founder and the square footage of the buildings FK Acquisitions LLC, whose regis- And Jerome CEO is Matt Lester. — plural — being converted to resi- tered agent is Andy Farbman, CEO Huez, president of The Loft Ware- Detroit-based developer Roxbury Group in a joint-venture with an unknown dential, and in my opinion, it will be of the Southfield-based Farbman house in Detroit, agreed that many partner company. David Di Rita is Roxbury’s principal. every bit of $200 (per square foot) to Group, defaulted last year on a $27 renters are get- do that,” Lester said. million mortgage. That prompted New York City-based GHC Development LLC, a real estate development ting priced out in “And it makes sense if you can Miami Beach, Fla.-based special company controlled by hedge fund manager Michael Steinhardt and Allan certain pockets stick to that budgetary constraint, servicer LNR Property Inc. to take title Fried, his real estate adviser. of town. and I think you can, but there are al- on the Fisher and Kahn buildings New Center, Kirk Pinho ways contingencies.” this year. he said, is “an Joe Barbat, who is redeveloping a Farmington Hills-based Friedman area that’s largely from 360 to 1,400 square feet. Those troit, a Detroit- 64,000-square-foot building at- Integrated Real Estate Solutions LLC is forgotten, and units rented for between $355 and based real estate tached to the coordinating the auction and has more and more $1,875 per month or 78 cents to brokerage. nearby Hotel St. the management contract on the Jerome Huez: people are being $1.69 a square foot. “An out-of- Regis into 58 stu- buildings. New Center “a pushed out and The properties surveyed were the state investor dio and one- The auction, announced earlier perfect target” going to areas Marlenor Apartments, New Center will say he can bedroom units, this year, also includes more than like Boston-Edi- Plaza Apartments, New Center Com- get the buildings estimated that 2,000 parking spaces spread over son. But New Center is a perfect tar- mons, Pallister Plaisance Apartments, for relatively converting ei- two parking decks and three surface get for that move. We should see an Fisher Kahn Apartments, Graphic Arts cheap, but they ther the Fisher or parking lots. evolution of New Center just as we Lofts and New Amsterdam Lofts. Austin Black: Out- really have to Kahn would cost Sources have estimated that the saw in Midtown.” of-state investor understand Joe Barbat: Would $150 to $200 a buildings will fetch $20 to $30 a A study released this year by Zim- Expensive must know how to what goes into be “very large square foot. square foot, which would make the merman/Volk Associates Inc. and redevelopment do renovation the conversion undertaking.” Conversion of purchase price as high as $27.8 mil- commissioned by the Downtown De- If New Center begins to get in on and renovation 40 percent of the lion. troit Partnership stated that greater the large housing development ac- process,” Black said. Fisher’s 635,000 square feet would Or higher, Lester said. downtown could support nearly tion in Detroit, the new owners of Matt Lester, founder and CEO of be about $51 million, while 40 per- “We really do not have a great 10,500 new multifamily units a year the Fisher and Kahn properties Bloomfield Township-based Prince- cent of the Kahn’s 290,000 square handle of just exactly how high (7,370 for rent and 3,120 for sale). would need deep pockets. ton Enterprises LLC, said that his feet would be about $23 million. someone will go. It’s hard to know,” As part of the study, Zimmer- The redevelopment of either company plans to bid on the build- “They have to make sure they he said. “The range here remains man/Volk surveyed seven multi- building as multifamily would be a ings and that he is aware of at least a can make sense of it because it’s very wide.” family properties in New Center massive undertaking, said Austin dozen well-known and experienced going to be a very large undertak- Kirk Pinho: (313) 446-0412 with a total of 466 units ranging Black II, president of City Living De- real estate firms from the East and ing,” Barbat said. “Those are large Twitter: @kirkpinhoCDB 20150622-NEWS--0024-NAT-CCI-CD_-- 6/19/2015 6:17 PM Page 1

24 CRAIN’S DETROIT BUSINESS // June 22, 2015 ELEGUS,from Page 3: Startup’s magic bullet for safer lithium-ion batteries is fiber in Kevlar

is a professor of biomedical engi- director at UM’s Venture Center, the In May, it won $3,000 by finishing neering, materials science engi- office of technology transfer’s tech third of 37 collegiate startups from neering and macromolecular engi- incubator at the North Campus Re- around the world at the Global Ven- neering. search Complex. ture Labs Investment Competition Psarouthakis and one of his cen- in Austin, Texas. In April, it was a Separating for safety ter’s mentors in residence, Meera semifinalist at the Rice University Three patents have been applied Vijan, coached Elegus’ four student business plan competition to cover its technology — which in- founders on their business plan and in Houston. volves making extremely thin layers with their pitches for equity capital, Also in April, Elegus was a finalist made of aramid fiber to separate TOM HENDERSON with Vijan focusing on what they in the Global Automotive Innova- the anodes from the cathodes in Elegus Technologies executives, from left: COO Daniel VanderLey,CEOJohn needed to move the technology out tion Challenge at the SAE World lithium-ion batteries. Hennessy and CFO Long Qian. of the lab and into the market. Congress at Cobo Center. Currently, lithium-ion batteries Vijan has more than 30 years in the Psarouthakis introduced Elegus use thin layers of polyethylene, the nondisclosure agreements with sponsors or the three venture capi- battery industry. She was president of to Detroit-based Invest Michigan, an same material in trash bags, for the large chemical and battery compa- tal firms that Techstars has engaged. Ovonic Battery Co., a subsidiary of affiliate of the Michigan Economic De- separating layer. nies to vet the technology. If tests by The sponsors are Ford Motor Co., Auburn Hills-based Energy Conversion velopment Corp. that was launched The benefit of using lithium in Navitas go as hoped, VanderLey Magna International Inc., Verizon Devices Inc., and was a plant manager in May 2014 to manage the $6.8 mil- batteries is it is the least dense said, Elegus will look for local man- Telematics, Dana Holding Corp., Honda for A123 Systems Inc., helping it set up lion Michigan Pre-Seed Capital metal, which means that, ounce for ufacturers to make the aramid sep- R&D Americas, McDonald’s Corp. and in Livonia the largest lithium-ion bat- Fund 2.0. In March, Invest Michigan ounce, it can store more power than arators it will sell to battery makers. Munich Reinsurance America Inc. tery plant in the U.S. invested $50,000. the metal used in other batteries. The company plans to start pro- The VC firms are Detroit Venture “This market opportunity is To date, Elegus has raised But lithium is also a highly reactive duction in the fourth quarter of Partners, Detroit-based Fontinalis huge. More than 5 billion lithium- $340,000, including grants and the element, a member of the alkali 2017, generating $4.2 million in rev- Partners and Ann Arbor-based Re- ion batteries were sold in 2013,” money from Techstars. Last year, it metal group that also includes potas- enue that year based on the manu- naissance Venture Capital Fund. Psarouthakis said. “And since 2002, got a $75,000 grant from M-TRAC sium, another highly reactive ele- facturing of an estimated 2.4 mil- VanderLey said Elegus eagerly there have been 50 large recalls of Transportation, a program funded by ment. lion square meters of product. agreed to accept a convertible note lithium-ion batteries for safety con- the MEDC at UM to translate trans- The trouble comes if a fault occurs VanderLey said the company for $100,000, which came from Veri- cerns.” portation-related research into in the separator, a rare occurrence hopes to produce 17 million square zon and Fontinalis. Elegus also got commercialization companies and jobs. but a dangerous one. That can trig- meters in 2020, with revenue of Why so eager? Because it has an help last year as part of the first class “Their technology could have a ger a short circuit called a thermal about $30 million. immediate use for the funds — hir- at NextEnergy in Detroit of I-Corps En- significant impact. … Their accept- runaway that in turn can cause adja- “We’re looking for an early exit to ing one of the co-inventors of its ergy and Transportation, a National Sci- ance into Techstars will significantly cent battery cells to overheat. a chemical company after we prove technology, Ming Yang, away from ence Foundation-funded commer- accelerate their time to market,” Dreamliners were allowed to fly out the technology,” VanderLey his teaching position in China for a cialization training program. said Invest Michigan President and again after the cells were given said. “We’d liked to have an exit in full-time research position as chief On Sept. 10, at the end of the CEO Charlie Moret. more protection from each other. the next two or three years for $20 science officer of the company. three-month Techstars program, Techstars is the Boulder, Colo.- Tests at UM show that batteries million. But if that doesn’t happen, “Our option was to hire a Ph.D. each of the 10 companies will make based organization that provides using aramid fibers as separators we’re looking at an exit to a cus- student or to hire him, and he said pitches for investment capital to na- seed money and mentoring for store up to 20 percent more energy, tomer in five years.” he’d be delighted to come back,” tional and local venture capitalists promising technology startups. It need less time between charges and VanderLey said. and angel investors. launched its Detroit operation in remain stable at much higher tem- Techstars boost Three of Elegus’ founders are engi- A major goal of the Techstars pro- 10,000 square feet on the second peratures than polyethylene, said The 10 companies who were ac- neers who went through the MBA in gram is helping companies refine floor of the office space at Ford Field. Elegus COO Daniel VanderLey. cepted into Techstars’ program, for- entrepreneurship program at UM — their pitches, synthesizing into a few The first program was started in VanderLey said independent tests, mally known as Mobility, Driven by CEO John Hennessy, VanderLey and minutes what the market opportuni- 2007. Program locations now in- which will be crucial to Elegus’ com- Detroit, each got $20,000 in funding CFO Long Qian. The fourth co- ties are for complex technologies clude Austin, San Antonio, Boston, mercialization plans, are scheduled from Techstars. founder, Chief Technology Officer Siu that can be hard to describe. Boulder, Seattle, Chicago, New York to be conducted this summer by Nav- Each also has the option of taking on Tung, is a Ph.D. student in macro- Elegus already has had success at City and London. Ⅲ itas Systems LLC of Woodbridge, Ill. a loan of $100,000, convertible later molecular engineering in Kotov’s lab. pitch contests, thanks to coaching Tom Henderson: (313) 446-0337 He said Elegus has signed to equity, from the program’s seven Michael Psarouthakis is assistant from Psarouthakis and Vijan. Twitter: @TomHenderson2

WESLEY BERRY,from Page 3: Court fight creates a thorn for expanding family florists

and lawsuits filed by each side en- Given the number of orders it The lawsuit also alleges Teleflora sued. processes online each year — didn’t communicate chargeback is- Wesley Berry subsequently roughly a million, according to sues in a timely manner and that dropped a Detroit case filed in fed- Berry — and the breadth of its floral the high rate of refunds was “a direct eral court in April against Teleflora. network, FDE sees its share of cus- result of Teleflora’s failure to enforce In the meantime, two cases filed by tomer complaints. its delivery requirements.” Teleflora in May in U.S. District Court “It’s unfortunate, and we do Wesley Berry dropped that law- in California are ongoing. make every effort to follow up on is- suit after Teleflora filed its lawsuits. Kaveh Kashef, a litigation partner sues. (But) we don’t have any “Rather than waste judicial re- at Clark Hill PLC in Birmingham repre- greater failure rate on our orders sources, we decided to consolidate senting Wesley Berry, said the rela- than do any of our major industry the cases,” Kashef said. “We are con- tionship between the two compa- competitors,” Berry said. fident that the allegations brought nies has broken down primarily Recently, though, FDE has taken forth in eastern Michigan will be because “as Wesley Berry has grown, JOHN SOBCZAK steps “to engage some greater levels reintroduced in California.” Teleflora sees us as a competitor in In the early 1990s, Wesley Berry Flowers saw a growth opportunity not in of technology” to improve cus- The Teleflora lawsuits are seeking their treatment of us.” storefronts but in e-commerce. tomer service, he said. more than $21.5 million collectively A Teleflora attorney declined to in fees, interest and court costs from comment. After seeing some of its competi- the Philippines, Berry said. Clashes in court Wesley Berry and also accuse the tors move online, Wesley Berry Flow- Each day, the company deals Those customer service break- company of false advertising, trade- Room for growth ers shifted from the franchise growth with 5,000 to 6,000 people who are downs are tied to the credit card re- mark infringement and unfair com- As e-commerce started to unfold strategy to an e-commerce one. either placing orders or receiving funds. petition through, among other things, in the early ’90s, Wesley Berry Flow- “The good thing about it was no- flowers through the company from After Wesley Berry was dropped Wesley Berry’s alleged continued use ers could see the growth opportuni- body knew what to do because it online orders, he said. from the Teleflora network in April, it of the Teleflora and Make Someone ty that came with it, said FDE CEO was a new, Wild West type of envi- The majority of FDE’s business is filed suit in Wayne County Circuit Court Smile trademarks Both cases will be Wesley Berry II, who is also a princi- ronment,” Berry said. “Everybody in the U.S., but it does take a few alleging that Teleflora didn’t make heard in U.S. District Court for the pal Wesley Berry Flowers. had the same opportunity; you hundred orders a day from other promised technology upgrades in its Central District of California. “The type of business we’re in, weren’t locked out because you countries, Berry said, noting it works point of sale and e-commerce sys- Wesley Berry has yet to file its re- which allowed us to have same-day hadn’t been doing it for 50 years.” closely with 1-800-Flowers.com Inc. tems which would have helped response, but Kashef said, “We ab- delivery across the country as a tra- Today, Wesley Berry Flowers’ and Florists’ Transworld Delivery duce order fulfillment issues. solutely, unequivocally deny the ditional brick-and-mortar shop, Michigan operations and online through FTD.com. As a result, the lawsuit said, Wesley claims.” Ⅲ was the key component needed to business employ 100 people in But doing business online has its Berry had to design and implement Sherri Welch: (313) 446-1694 be an Internet business.” Michigan and 50 at a call center in pluses and minuses, he said. its own technology “at great expense.” Twitter: @SherriWelch 20150622-NEWS--0025-NAT-CCI-CD_-- 6/19/2015 6:15 PM Page 1

CRAIN’S DETROIT BUSINESS // June 22, 2015 25 DIA,from Page 3: Inside/Out art program connects with community CRAIN’S DETROIT BUSINESS He was struck by metro Detroit www.crainsdetroit.com communities’ response to the art- One of the DIA’s Inside/Out Installations stands Editor-in-Chief Keith E. Crain work, with residents dressing up in front of the historic Hecker-Smiley mansion Group Publisher and Editor Mary Kramer, (313) 446-0399 or [email protected] like their favorite paintings, and by on Woodward in Detroit. Associate Publisher Marla Wise, (313) 446-6032 the DIA’s wit in placing a dog paint- or [email protected] Executive Editor Cindy Goodaker, (313) 446-0460 ing in a dog park, for example. or [email protected] When you see that communities Managing Editor Jennette Smith, (313) 446-1622 or [email protected] are clamoring to host one of the Director, Digital Strategy Nancy Hanus, (313) 446- DIA’s Inside/Out installations, “that 1621 or [email protected] Managing Editor/Custom and Special Projects tells you you’ve hit upon an idea Daniel Duggan, (313) 446-0414 or that resonates broadly and deserves [email protected] Assistant Managing Editor Kristin Bull, attention,” Scholl said. (313) 446-1608 or [email protected] “This really just goes to show you Senior Editor/Design Bob Allen, (313) 446-0344 that (the DIA) kept (its) eye on the or [email protected] Senior Editor Gary Piatek, (313) 446-0357 ball,” said Scholl, who is the observ- or [email protected] er on the DIA’s board on behalf of Research and Data EditorSonya Hill,(313) 446-0402 or [email protected] the Foundation for Detroit’s Future Web Producer Norman Witte III, (313) 446-6059 and foundations that participated or [email protected] Editorial Support (313) 446-0419; YahNica Craw- in the “Grand Bargain.” ford, (313) 446-0329 “It’s not just about fighting for sur- Newsroom (313) 446-0329, FAX (313) 446-1687 , vival. The DIA is out there,” he said. TIP LINE (313) 446-6766 Across the pond REPORTERS Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. The DIA adapted its idea of put- (313) 446-0325 or [email protected] ting its art on display in the commu- Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] nity from the National Gallery in Lon- Tom Henderson Covers banking, finance, tech- don, said Kathryn Dimond, director nology and biotechnology. (313) 446-0337 or [email protected] of community relations for the DIA. Kirk Pinho Covers real estate, higher education, Graham Beal, the DIA’s director, DETROIT INSTITUTE OF ARTS Oakland and Macomb counties. (313) 446-0412 or [email protected] and Ann Marie Erickson, executive Bill Shea, enterprise editor Covers media, vice president In 2011, the program’s second And the Holly community asked tance, the DIA has developed a advertising and marketing, the business of sports, and transportation. and COO, year, the DIA took 80 reproductions to have a reproduction of Charles “playbook” to help other museums (313) 446-1626 or [email protected] brought the idea out into the community, expanding Harry Eaton’s “The Lily Pond,” done replicate Inside/Out in their own Lindsay VanHulle, Lansing reporter. (517) 657- 2204 or [email protected] back to Detroit the installation in each from a single in 1886, placed in its community be- backyards. Dustin Walsh Covers the business of law, auto after seeing the painting to between five and 10 cause the painter lived in the Holly “We are helping them flatten out suppliers, manufacturing and steel. (313) 446-6042 or [email protected] British museum’s works per city. area at some point, she said. South- the learning curve,” Dimond said. Sherri Welch, senior reporter Covers nonprofits, LaVanway Sign Co. Inc. Akron Art Museum services, retail and hospitality. (313) “Grand Tour” re- It was then that ancillary pro- field-based , The launched 446-1694 or [email protected] productions at grams began popping up around which makes the reproductions and its Inside/Out program in April, and spots around the artwork. Communities began does the installations, stores them in Philadelphia began its in May. ADVERTISING Kathryn Dimond: Sales Inquiries (313) 446-6032; FAX (313) 393-0997 London. But the taking ownership, planning themed a warehouse during the off season, Miami plans to launch this fall, and Sales Manager Tammy Rokowski DIA has developed National Gallery’s walking tours, bike rides and even Dimond said. The museum reuses from there, the program will expand Senior Account Executive Matthew J. Langan Inside/Out program didn’t painting workshops, all tied to the them every year until they are dam- to Charlotte, N.C.; Macon, Ga.; San Advertising Sales Christine Galasso, Catherine Grace, Joe Miller, Sarah Stachowicz “playbook” have the com- Inside/Out reproductions. aged or faded, or until a community Jose, Calif.; and St. Paul, Minn. Classified Sales Manager Angela Schutte, (313) munity program- “This (took) a turn that was very says a piece isn’t appropriate for Rather than just replicating what 446-6051 ming tied to it, Dimond said. different than ... the National public display. the DIA has done, each community Classified Sales Lynn Calcaterra, (313) 446-6086 Audience Development Director Eric Cedo A DIA board member donated Gallery,” Dimond said. That was the case with Pierre Au- is making it its own, Dimond said. Events Manager Kacey Anderson the cost to reproduce 40 paintings To make the works relevant in guste Renoir’s “Woman in Arm The Akron Art Museum, as an exam- Creative Services Director Pierrette Dagg on vinyl canvas so the DIA could each community, the DIA learned Chair.” While not a nude, the 1874 ple, has developed an application Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black launch the program in 2010 for the to consult with a local leader, or painting portrays a woman dressed that allows people viewing its con- Special Projects Coordinator Keenan Covington museum’s 125th anniversary. “community curator,” who would in a low-cut gown. temporary art installations to dial a Sales Support Suzanne Janik, YahNica Crawford Certainly, the idea is to attract help it determine the best spot to “Some communities, time and number and hear a community Editorial Assistant Nancy Powers Production Manager Wendy Kobylarz people to come to the museum to place the artwork and any relevancy time again, have said, ‘This is not member’s thoughts about the piece. Production Supervisor Andrew Spanos see the real thing, Dimond said. that made certain pieces a good fit. appropriate for our community.’ So “I think it’s a great opportunity to “But at the same time, if they find a For example, in Taylor, where we retired it,” Dimond said. share the authority with the commu- CUSTOMER SERVICE Main Number: Call (877) 824-9374 way to make that personal connec- youth baseball is a big community The Knight Foundation came in nity members,” rather than having or [email protected] tion with the art in their community draw, the DIA placed art around the with funding for Inside/Out in 2012 the museum telling them what they Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside ... that’s fine, too.” baseball diamonds. and 2013. It’s part of a $2.25 million should think about the art, Dimond U.S.A., add $48 per year to out-of-state rate for sur- grant made to the DIA to experi- said. face mail. Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 ment with new programs that take “We might steal some ideas from Reprints (212) 210-0750; or Lauren Melesio at INDEX TO COMPANIES [email protected] its art out into the community. (Akron),” she said. To find a date a story was published (313) 446- These companies have significant mention in this week’s Crain’s Detroit Business: Mackinac tour For years, art museums — Akron 0406 or e-mail [email protected] included — have had a specific rela- Crain’s Detroit Business is published by Crain Communications Inc. Albert Kahn Building ...... 1 KPMG ...... 7 In 2012, the program’s third year, tionship with audience and donors, Chairman Keith E. Crain Baker Tilly Virchow Krause ...... 4 Kresge Foundation ...... 1 the DIA took eight to nine repro- said Mark Masuoka, executive direc- President Rance Crain Barbat Holdings ...... 23 Loft Warehouse ...... 23 ductions to Mackinac Island. tor and CEO of the Akron Art Muse- Treasurer Mary Kay Crain Brooks Kaufman ...... 14, 15 Lucy & the Wolf ...... 7 Executive Vice President/Operations Business Leaders of Michigan ...... 6 LunaTech 3D...... 21 The pieces were displayed um. William A. Morrow around the island with maps to help “It’s been somewhat passive and Executive Vice President/Director of Strategic Butzel Long ...... 16 Marcus & Millichap ...... 23 Operations Chris Crain Carlson Gaskey & Olds ...... 14 Mich. Infrastructure/Transportation Assoc. .. 6 visitors do a “treasure hunt” to find not necessarily reached out to peo- Executive Vice President/Director of Corporate Cascade Partners ...... 1 Michigan Manufacturers Association ...... 22 them, either by bike or through ple where they’re at,” he said. Operations KC Crain Vice President/Production & Manufacturing Center Street Grille ...... 7 PACE Southeast Michigan ...... 10 tours arranged by the Grand Hotel, Since launching the Inside/Out Dave Kamis Chassix Holdings ...... 16 Princeton Enterprises ...... 23 Dimond said. program in April, the Akron muse- Chief Financial Officer Thomas Stevens City Living Detroit ...... 23 Prism Plastics ...... 22 Mackinac was a pilot to see how um is already noticing a perceptible Chief Information Office r Anthony DiPonio Clark Hill ...... 24 Reising Ethington ...... 15 G.D. Crain Jr. Founder (1885-1973) Detroit Institute of Arts ...... 3 Roak Brewing ...... 7 to do Inside/Out from a distance, change in the tone of conversations Mrs. G.D. Crain Jr. Chairman (1911-1996) Elegus Technologies ...... 3 Rock Ventures ...... 1 she said. with residents who no longer see it Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; Farbman Group ...... 23 Shinola/Detroit ...... 1 “We are … in the process of as “standoffish,” said Masuoka, who (313) 446-6000 Fisher Building ...... 1 Techstars ...... 3 launching as part of DIA’s statewide earned his master of fine arts in ce- Cable address: TWX 248-221-5122 AUTNEW DET FlowerDeliveryExpress.com ...... 3 University of Michigan ...... 3 Cranbrook CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is outreach, statewide Inside/Out, in- ramics and sculpture at published weekly, except for a special issue the Friedman Integrated Real Estate Solutions .... 23 Urge Juice ...... 7 stallations in two out-Michigan lo- Academy of Art in Bloomfield Hills. third week of October, and no issue the fourth General Motors ...... 11 VacBarrel ...... 11 cations each year,” Dimond said. “(Whether) you’re looking at it week of December by Crain Communications Inc. Global Development Partners ...... 4 Village Green ...... 23 at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- Communities must apply and be from building audiences to building odicals postage paid at Detroit, MI and additional Harness, Dickey & Pierce ...... 13, 15 Warner Norcross & Judd ...... 11 mailing offices. POSTMASTER: Send address Howard & Howard Attorneys ...... 15 Wayne State University ...... 9 selected for the traveling artwork support to engaging people, ... I changes to CRAIN’S DETROIT BUSINESS, Circula- program. think this helps make the art muse- tion Department, P.O. Box 07925, Detroit, MI Huron Capital Partners ...... 1 Wesley Berry Flowers ...... 3 48207-9732. GST # 136760444. Printed in U.S.A. Ⅲ IAC Group ...... 22 Wok Asian Bistro ...... 7 Program reproductions um a lot more accessible,” he said. Entire contents copyright 2015 by Crain Commu- IHS Automotive ...... 7 Young Basile Hanlon & MacFarlane ...... 15 Sherri Welch: (313) 446-1694 nications Inc. All rights reserved. Reproduction or use of editorial content in any manner without With Knight funding and assis- Twitter: @SherriWelch permission is strictly prohibited. 20150622-NEWS--0026-NAT-CCI-CD_-- 6/19/2015 6:31 PM Page 1

26 CRAIN’S DETROIT BUSINESS // June 22, 2015

FULL VERSIONS OF THESE AND OTHER STORIES @ CRAINSDETROIT.COM WEEKON THE WEB/JUNE 15-19 RUMBLINGS Payouts,poor Detroit Digits a truck production contract awarded in 2008 through the U.S. A numbers-focused look at the Andiamo steers food Army Tacom Life Cycle Management week’s headlines football spur Command in Warren. Ⅲ Troy-based United Shore Fi- $7.9M deficit for nancial Services LLC will make a truck at young diners $54.5 B $500,000, five-year gift to Michigan The size of the state of Michigan State University’s Eli Broad College UM athletics budget that Gov. Rick Snyder of Business to fund a faculty fel- Warriors top Cavs, signed last week. The budget low position in sales research and but Gilbert still wins he University of includes spending increases for education. Michigan’s athletic de- education and a temporary boost Ⅲ Year-to-date revenue for the Just minutes after the Golden partment amassed a to road funding. three Detroit casinos is up 5.6 per- State Warriors closed out Game 6 of T $7.9 million budget cent through May compared with the NBA Finals on Tuesday to beat deficit last year, a shortfall fueled the same period of 2014, accord- the Cleveland Cavaliers, Detroit- by payouts to former head foot- $150 M ing to figures released by the based vinyl wall graphics maker ball coach Brady Hoke and former The value of a contract secured by Michigan Gaming Control Board. Fathead LLC blasted an email tout- Athletic Director David Brandon — the Detroit-based advertising Ⅲ The Lansing-based Great ing “Just In! 2015 NBA Champions and by fans giving up on a agency Campbell Ewald to market Lakes Capital Fund received $55 ANDIAMO Wall Decals! 30% Off Everything!” mediocre football season, Athletic California’s state-run health million in federal tax credits to Andiamo’s 18-foot food truck is equipped The email link takes you to a 3- Director Jim Hackett told universi- insurance exchange. The three-year help it invest in Michigan and with a pasta cooker,fryer,flat top,chargrill, foot-by-3-foot shield-shaped wall ty regents. contract comes after the recent other Great Lakes states. The fund oven and coffee maker.Customers order sticker that includes the Warriors loss of a $457.4 million contract has not decided what develop- from the window and the truck features a logo and the words “NBA CHAMPS.” from the U.S. Navy. ON THE MOVE ments will be funded. large pop-up bar on the rear of the truck of- The $89.99 price includes four Ⅲ Ohio-based Cardinal Health fering a spot to dine and overflow service. smaller stickers. Ⅲ The owners of Ferndale- Inc. sold $1.5 billion of bonds to The irony here is the Fathead is based Detroit Metro Times picked 87 back its purchases of Livonia- ith a goal of reaching owned by Dan Gilbert, who bought the former industry rival John Badan- The acreage of the Bloomfield Park based Harvard Drug Group and younger diners, Warren- Cavaliers as head of an investment jek as publisher. Badanjek found- redevelopment site on Telegraph Johnson & Johnson’s Cordis med- W based Andiamo Restau- group for $375 million in 2005. ed Royal Oak-based Real Detroit Road in Pontiac and Bloomfield ical-device making business, rant Group has invested $100,000 in So even the Cavs losing the finals Weekly in 1999 and in 2014 Township. Southfield-based Redico Bloomberg reported. an 18-foot-long purple truck and is was a (probably modest) financial formed a company with Metro LLC and Pacific Coast Capital taking it on the road. gain for Gilbert. Partners LLC now officially own the Times owner Euclid Media LLC of OTHER NEWS The food truck, adorned with a Gilbert’s Rock Ventures LLC bought Cleveland that merged the two site after the previous owners large spaghetti noodle coil on a the then-financially struggling Fat- alt-weeklies. Badanjek replaces waived redemption rights. Ⅲ Wayne County Executive War- fork, was scheduled to make its head from its founders in 2006 for Euclid COO Chris Keating, who be- ren Evans has asked the Michigan De- downtown Detroit debut last week. an undisclosed sum. Rock Ven- comes regional/group publisher. Royal Oak to husband-and-wife partment of Treasury to determine if Plans for the food truck began a tures is the umbrella entity that Ⅲ J.D. Carlson was named exec- team Zef and Marija Dedvukaj, who a financial emergency exists in the year ago as a proposal by the adver- oversees Gilbert’s portfolio, which utive vice president and CFO at have 25 years of experience in- county, which is grappling with a tising department at Joe Vicari also includes Quicken Loans Inc. and Bloomfield Hills-based Penske Au- cluding 15 years running Nicky D’s $52 million structural budget Restaurant Group, which owns Andi- the Cavs. tomotive Group Inc. Carlson, 45, re- Coney Island locations throughout deficit. That could lead to a con- amo as well as Joe Muer Seafood in places David Jones, who resigned metro Detroit. sent agreement with the state. Detroit and Brownie’s on the Lake in to become CFO of New York City- Ⅲ Waco, Texas-based Dwyer Ⅲ Construction began on the St. Clair Shores, among others. based Iconix Brand Group Inc. Carl- Group Inc. acquired Ann Arbor- $16 million Science and Engineer- Dominic Vicari, 30, director of op- son had been senior VP and cor- based Service Brands International ing Center at the University of De- erations for Andiamo, said that at porate controller for Penske. and its Molly Maid, Mr. Handyman troit Jesuit High School and first he was skeptical about the idea Ⅲ David Lam was named direc- and ProTect Painters franchises. Academy. The privately funded but was convinced after research tor of the University of Michigan’s In- Terms were not released; an office center is set for completion in Au- indicated that the popularity of stitute of Social Research, a five- will remain in Ann Arbor. gust 2016, AP reported. food trucks has risen in the Mid- year appointment that begins July Ⅲ A $584,000 donation by the Ⅲ A preserved part of the old Wil- west. The idea also resonates with 1. Lam, the chairman of the Farmington Hills-based Delta Dental low Run Bomber Plant, where Rosie the the restaurant group’s target audi- school’s department of econom- Foundation for a dental bus is ex- Riveter built World War II bombers, ence for the truck: people in their ics and a professor of economics, pected to help students and faculty has been rededicated, AP reported. late 20s or early 30s. COURTESY/HENRY FORD & JOHN MARGOLIES succeeds James Jackson, who is at the University of Detroit Mercy The locale will become home of Andiamo, which has nine restau- ending his second five-year term. School of Dentistry provide chil- the Yankee Air Museum. rants in metro Detroit, also will Roadside attractions Ⅲ Kim Brink, NASCAR senior vice dren in Wayne County with access Ⅲ The University of Michigan’s offer speed and a price point attrac- topic of new exhibit president of marketing, has joined to preventive and other dental care. preliminary consumer sentiment tive to millennials. Dearborn-based Global Team Ford Ⅲ Detroit-based AmeriSource In- index for June rose to 94.6, top- “Our goal is to gain relevancy with An exhibit that looks at the vanish- as COO. Team Detroit’s CEO, Satish dustrial Supply Co. said it’s poised to ping all estimates in a Bloomberg the younger crowd,” Vicari said. ing landscape of roadside attractions Korde, had managed the team increase revenue 600 percent, survey of economists, from a The truck recently debuted at the along U.S. highways is now open at during the search to fill the posi- from a projected $25 million this reading of 90.7 last month. Detroit Belle Isle Grand Prix and Henry Ford Museum in Dearborn. tion after COO Mark LaNeve went year to $125 million by 2020, by ac- Ⅲ Michigan lawmakers voted Harley Fest at Freedom Hill in Sterling “Roadside America: Through the to Ford Motor Co. in January as vice quiring companies in the Midwest, to end an incentive program used Heights. Lens of John Margolies” started Sat- president of U.S. marketing sales company President Lou Ray said. to entice movie, TV and video A chalkboard menu offers 15 urday and runs through Jan. 24 at and service. Jill Gregory, who over- Ⅲ Detroit-based Are You A game productions to the state items ranging from $5 to $12, such the museum. sees NASCAR’s industry services Human LLC, which distinguishes over the past seven years, saving as a meatball sub, mozzarella bot- For several decades, Margolies department as a senior VP, will as- whether Web visitors are actual money that proponents said tone (crispy fried mozzarella cubes photographed the unusual and the sume leadership of marketing. human beings or bots, said it has would be better spent improving in a tomato-bacon-olive sauce), egg- everyday of roadside attractions, in- Ⅲ The Toledo Mud Hens, the top closed on a Series A funding crumbling roads, AP reported. plant rollatini, panini and salads. cluding movie theaters, gas sta- farm team of the Detroit Tigers, round of $4.2 million. It previous- “We want to basically get your tions, diners and motels. The muse- named club President Joseph Napoli ly raised a seed round of $750,000. OBITUARIES food in two minutes,” Vicari said. um said his photos are considered as CEO. Replacing Napoli as gener- Ⅲ St. Clair Shores-based Pres- Traditional Andiamo items such to be a comprehensive study of al manager of the Mud Hens and tige Automotive Group LLC broke Ⅲ Alan Almond, longtime host of as calamari, sausage and peppers, American roadside architecture. the Detroit Red Wings-affiliated Tole- ground on an $8 million dealer- the popular WNIC-FM nighttime and pasta with meatballs also are The exhibit includes slides and do Walleye are, respectively, Erik Ibsen ship in Warren across from the show “Pillow Talk,” was found dead offered. items recently acquired by The and Neil Neukam, who were also General Motors Technical Center. June 16 after an apparent heart at- The menu will rotate. Henry Ford from Margolies’ collec- named executive vice presidents. The move is a mile north from the tack, AP reported. He was 67. The truck also features a 6-foot- tion of photos, diaries, pennants, dealership’s current site. Ⅲ Kirk Kerkorian, the billionaire by-6-foot balcony/dining area on the postcards and luggage labels. Ⅲ COMPANY NEWS The federal government is casino mogul who twice attempted back that seats 20, and it’s available Details and ticket information suing a subsidiary of BAE Systems takeovers of Chrysler and in 2006 for private events, with packages are at TheHenryFord.com. Ⅲ After 37 years of ownership, Inc. in a Detroit court, claiming tried to fashion a global alliance be- ranging from $10 to $20 a person. Henry Ford Museum is part of brothers Mark and Greg Mitchell the defense contractor over- tween General Motors and Renault-Nis- For details, and to locate the The Henry Ford, a history attraction have sold Athens Coney Island in charged more than $40 million on san, died June 15. He was 98. truck, visit andiamoitalia.com that includes Greenfield Village. Ⅲ DBpageAD_DBpageAD.qxd 6/10/2015 2:42 PM Page 1

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When you look in the mirror, what do you see?

What turns a dream into reality? A house into a home? A street corner into a neighborhood?

In a word, it’s commitment – the belief that you can make a difference.

That’s what is happening right now, here in Detroit.

There’s a reinvigorated sense of possibility in our city. Positive change is happening. All because our artists and our business leaders and our public workers and our teachers and our students and our tradespeople believe in the possible.

Here at the GM Renaissance Center, we’re embracing our community’s positive spirit. We’re committed to the regeneration of Detroit, and we’re taking an active role.

This week, we’re introducing a new brand for the Center, not because of what we’ve done in the past but because of what we’re committed to doing in the future.

2XUJRDOŊWRVKRZWKDWWKHWUXHUHŴHFWLRQRIWKH New Detroit is the people of Detroit.

We hope you’ll come see yourself here soon.