Ford’s future- forward oˆce, design space, Page 3 APRIL 18-24, 2016 Michigan rises in the ranks of VC LISA SAWYER investment QLine cues investors By Tom Henderson [email protected] Real estate deals Venture capital investment in show economic Michigan is thriving, based on data from the Michigan Venture Cap- clout of mass ital Association and the National transit project Venture Capital Association. According to the quarterly By Robert Snell MoneyTree report issued Friday by [email protected] the NVCA and PricewaterhouseCoo- Real estate investors have pers LLP, based on data compiled by spent more than $1 billion ac- Thomson Reuters, 13 Michigan com- quiring properties near the QLine panies got a total of $78.5 million rail route, gobbling up buildings from venture capitalists in the first near future rail stations and in quarter of this year. That was good Highland Park in hopes the proj- for a state ranking of 14th nationally, ect will be extended northward. up from the ranking of 19th when The activity — including more 10 state companies raised $48.3 than $350 million worth of prop- million in the fourth quarter last erty acquisitions by QLine back- MICHAEL LEWIS II year. er and Quicken Loans Inc. and Rock More than $1 billion has been spent in real estate deals in the corridor that †anks the QLine and beyond. Angels It was the Ventures LLC founder and Chair- fifth-best quar- man Dan Gilbert — illustrates rapid transit system, a new Am- is expected to top $3.5 billion clustered near Woodward. rising ter for state the economic impact of several trak center and the Detroit Red within a decade, M-1 Rail offi- The investment also shows Fund ready to companies in developments along the Wood- Wings arena. cials say, and include a mix of the symbiotic relationship be- start third the last 45 quar- ward Avenue corridor. Those in- All told, the economic impact 10,000 new residential units, of- hind Gilbert’s backing of the recruitment of ters, though off clude the rail line, a possible bus of transit-oriented development fices and commercial projects SEE QLINE, PAGE 19 investors, from the $144.2 Page 5. million raised in the third quarter last year. Will more natural gas ow Michigan ranked second among Midwest states in the first quarter. Illinois was well out in naturally lower cost? No front with $217.2 million in 24 deals, ranking eighth nationally. Costs of proposed pipelines burn benets Minnesota ranked 15th with $67.3 million in 11 deals, with Ohio 21st By Gary Anglebrandt sides expect approval this year, at $40.7 million in seven deals, In- [email protected] with construction following soon diana 25th at $24.4 million in three In the first half of 2017, two big after. deals and Wisconsin 38th at $1.5 natural gas pipelines are sched- How these spigots will impact million in one deal. uled to go into service, increasing customer power costs is an open “It looks as if the progression the volume of natural gas entering question, though industry officials from last year continues,” said Michigan by up to 35 percent. envision a general downward SEE VC, PAGE 21 That’s the scenario developing trend in customer bills as natural out of separate proposals, one by gas takes on a greater role in power

© Entire contents copyright 2016 MARK HOUSTON the developers of Nexus, a $2 bil- generation over the next 15 years. by Crain Communications Inc. All rights reserved Backers are eager to build pipelines to lion pipeline backed by De- The idea is to connect Appala- crainsdetroit.com Vol. 32 No 16 $2 a copy. $59 a year. get Appalachian natural gas to the troit-based DTE Energy Co., and the chia, home to some of the most Midwest. other by developers of Rover, a productive natural gas fracking $4.2 billion pipeline backed by operations in the country, to Ohio, Dallas-based Energy Transfer Part- Michigan and beyond. The gas is ners LP. cheap and abundant, so much so Who pays, and how? Both plans are under review by that producers — some of them Getting a new pipeline paid for isn’t the Federal Energy Regulatory Com- with bankruptcy rumors swirling NEWSPAPER easy, or simple, but here’s how it mission, which approves interstate about them — are desperate to get happens, Page 20 pipelines. Developers on both SEE PIPELINES, PAGE 20 2 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 MICH-CELLANEOUS door public plaza and a 900-space MICHIGAN g With locations mainly in mid- parking deck, or about 300 more INSIDE size Midwestern college towns, spots than now exist at the site. The THIS ISSUE CALENDAR ...... 16 HopCat has had success as a big developer hopes to break ground on CLASSIFIED ADS ...... 17 fish in a small pond, but the beer- the first phase in early 2017. DEALS & DETAILS ...... 15 bar chain now is entering big-city g Big-box grocery stores such as MARY KRAMER ...... 6 territory, the Grand Rapids Busi- Meijer can now sell beer and wine OPINION ...... 6 ness Journal reported. Last month, at their gas station convenience OTHER VOICES ...... 9 BRIEFS HopCat’s Grand Rapids-based stores under legislation signed last PEOPLE ...... 16 Chick-l-A could open 20 Coast Guard work turns parent company, BarFly Ventures, week by Gov. Rick Snyder, AP re- RUMBLINGS ...... 22 locations in state by 2021 Michigan Wheel faster announced the chain’s expansion ported. Snyder’s action lets gro- WEEK ON THE WEB ...... 22 into Chicago, roughly a week after cery store gas stations count gro- With only two locations within At its height in the 1960s and the announcement of a HopCat cery supplies in other buildings the state’s borders — in food courts 1970s — as one of the biggest coming to Kalamazoo. Following toward meeting a booze-selling COMPANY INDEX: at Detroit Metropolitan Airport and names in the marine world, espe- an investment of $30 million from requirement. Some lawmakers SEE PAGE 21 Oakland University — Chick-ƒl-A has cially in propeller manufacturing a Texas-based private equity firm, from rural districts and gas station only a bite-sized presence in Mich- — Grand Rapids-based Michigan BarFly owner and HopCat founder convenience store owners say it igan. Now, MLive.com reports, the Wheel Corp. saw annual sales of Mark Sellers said the company gives big businesses a leg up on to AP by the governor’s office be- Georgia-based fast-food chain will more than $100 million. The eco- would open five HopCats a year the competition, letting them fore the announcement. soon reveal plans for as many as 20 nomic downturn in 2009 reduced for the next six years, with Louis- meet startup capital requirements g Despite increased education- locations in the state by 2021. that figure to $15 million. ville, Ky., and Lincoln, Neb., among automatically. Republican Rep. al attainment and workforce par- The company plans to an- Now the bad days are in the past others, joining existing locations Ray Franz, of Onekama, who op- ticipation, Michigan’s working nounce a full “Michigan expan- for Michigan Wheel, which has in Ann Arbor, Detroit, East Lan- posed the bill, said it’s a “carve women continue to be out-earned sion” at the April 19 groundbreak- had three straight years of rising sing, Indianapolis and Madison, out” for the big retailers. by their male counterparts. Medi- ing of its first free-standing sales and expects sales between Wis. Sellers cited the “under- g Michigan would have the an annual pay for Michigan wom- restaurant in the state, in Lansing, $25 million and $27 million in served” Lincoln Park neighbor- toughest lead-testing rules in the en working full time is $37,419, where crews will begin working 2016. hood of Chicago as a potentially nation and require the replace- compared to $50,157 for men, ac- soon. “We’re like a Twinkie or a cock- strong location: “Within 10 blocks ment of all underground lead ser- cording to a new study from the The chain plans to open 15 to 20 roach — we don’t go away,” Bruce in any direction, there’s nothing.” vice pipes under a sweeping plan National Partnership for Women & locations in Michigan over the next Dieterle, the company’s president g Grand Rapids-based 616 De- Gov. Rick Snyder and a team of Families. Women in the state earn five years. A site plan for a Chick- and CEO, told the Grand Rapids velopment LLC and Loeks Theaters water experts were to unveil Fri- 75 cents for every dollar paid to fil-A location in Gaines Township Business Journal. “There’s very few Inc. detailed plans for a multi-phase, day in the wake of Flint’s water cri- men. Due to the pay gap, women near Grand Rapids was approved people in North America who can $140 million mixed-use develop- sis, The Associated Press reported. in Michigan earn nearly $16 billion last month, and a proposal for a do what we do.” ment in the Arena South District of Other proposals include requiring less than men — which could pro- second Grand Rapids-area loca- The company’s resurgence has downtown Grand Rapids, MiBiz re- utilities to test all schools, day care vide an additional 10 months of tion goes before the Wyoming Plan- been led by orders from the U.S. ported. The initial $100 million centers, nursing homes and simi- mortgage payments, on average, ning Commission this week. Coast Guard for its new Sentinel phase will include a nine-screen lar facilities — not just some peo- the study said. Minority women Chick-fil-A also said it plans to Class Cutters, an extremely fast movie theater concept dubbed Stu- ple’s houses — and the mandatory carry an even larger disparity: open a location inside the Somer- 154-foot vessel. Michigan Wheel dio C. The proposed development disclosure of lead plumbing in Black women are paid 66 cents and set Collection in Troy by the end of now has more than 110 employ- also includes 38,000 square feet of home sales and rental contracts, Latinas 57 cents for every dollar 2016. ees, up from its low of 50. retail, 187 residential units, an out- according to a document provided paid to white men in Michigan. Ⅲ CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 3 David Hall’s new pitch: Big plan His own mortgage biz Ex-Rock spokesman enjoys return to retail By Tom Henderson on campus [email protected] Starting Monday, David Hall will once again be a TV and radio pitchman for the mortgage busi- ness. But this time, it will be his mortgage business, Hall Financial LLC, not Dan Gilbert's. Hall has received a license from the state for the new company, which began operating out of a temporary office in Bloomfield Hills and is seeking a permanent headquarters in Royal Oak. He has hired 10 veterans of the mortgage industry, some from his days at Rock Financial, the brand De- troit-based Quicken Loans once used in Michigan, and some from his most recent stint at United Shore Financial Services LLC in Troy. FORD MOTOR CO. TV spots will start running on . says its new net zero-waste, net zero-energy, net zero-water Sustainability Showcase facility will include Ford Motor Co WXYZ-Channel 7 and WMYD-Channel geothermal heating and cooling and generate renewable energy from the sun. 20. And Hall says he is in the final stages of negotiations for a one- More than a year’s work, employee feedback went into Ford project hour radio show each Saturday morning on a local station that By Kirk Pinho worth of work into what ended search and Engineering Center Cam- could start as soon as this weekend. [email protected] up being the plan to transform pus and a new location around For seven years, in addition to LARRY PEPLIN When you’re overhauling 7.5 how — and in what space — Ford the Ford World Headquarters build- David Hall’s face was once familiar as million square feet of space, not does business. ing, both of which are more than SEE HALL, PAGE 17 the pitchman for Rock Financial. everyone can be 100 percent sat- “It’s been a mile a minute,” six decades old. isfied. Roehling said of the process The Research and Engineering But Carl Roehling and Smith- since April 2015, when Smith- Center Campus is across the GroupJJR sure tried when they put Group first began work “in ear- street from Edsel Ford High Auto Club’s new CEO forward an expansive plan to nest.” It was hired the previous School in the triangular area modernize and reconfigure Ford month to do the master planning bounded by Rotunda Drive, Vil- Motor Co.’s research and engi- work. lage Road and Oakwood Boule- neering campus and world head- Ford announced the 10-year vard; the headquarters is north of ready to drive growth quarters space in Dearborn. plan last week. Crain’s reported the site at Michigan Avenue and After face-to-face interviews some details of the plan in June. Southfield Road. By Jay Greene with more than 200 employees of All told, the plan includes The sheer size of the plan re- [email protected] the Dearborn-based automaker, moving 30,000 employees from quired interviews with everyone The Auto Club Group’s new CEO, Joe Richardson Jr., the Detroit-based architecture just over 70 buildings in Dear- from young tech and develop- “We want says he plans to push the member service, banking and planning firm incorporated born and Allen Park into two ment whizzes perhaps most to bring and insurance growth that his predecessor, Chuck feedback from more than a year’s campus-like locations: its Re- comfortable working from a Star- value to Podowski, laid the foundation for the past 17 years. bucks or their kitchen tables to millen- But the 30-year insurance veteran, who took over the 60-something HR or finance ex- nials. We Auto Club’s top executive position this month after ecutives who cut their teeth in are closely serving as CEO designate with Podowski since August, Ford’s so-called “cubicle farms” has challenges before him as well. He plans to develop decades ago. watching new capabilities for Dearborn-based AAA of Michigan in “I think it was a much more in- and mobile technology and develop new products for mil- clusive process than we antici- analyzing lennials, many of whom do not own cars and instead pated. They rippled this through these use carpools, RideShare, Uber or taxis to get around. a lot more people to get these trends.” “My priorities are to service existing members, im- perspectives than we thought. It prove upon our services, develop more mobile appli- turned out it was a good cations and grow membership,” Richardson said in thing,” said Roehling, now Joe Richardson Jr. an interview with Crain’s. SEE FORD, PAGE 21 Auto Club CEO SEE AAA, PAGE 18

MUST READS OF THE WEEK YouTube splash Medicaid boom Yummy takeover Tourism conference gears up aer ACA growth means big Restaurants go o€ the Pure Michigan online takeover, business for HMOs, menu to keep diners Page 4 Page 9 hungry for more, Page 14 4 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 State tourism agency’s new destination: YouTube Digital media push starts with 30-second spot promoting Detroit

By Lindsay VanHulle Crain's Detroit Business/Bridge Magazine LANSING — When the state’s tourism agency introduced its new Detroit-centric Pure Michi- gan commercial last week, it also bought time on social media channel YouTube. For 24 hours last Monday, the 30-second clip played on the pop- ular website, and users didn’t have an option to skip past it. That helped the ad reach more than 7.9 million impressions, or eyeballs, in a single day, according to its cre- ators at Travel Michigan — better than they had hoped. TRAVEL MICHIGAN That YouTube takeover, as Travel The Belt, an art alley between the two wings of The Z parking garage in downtown Michigan Vice President Dave Lorenz Detroit, is featured in a new Pure Michigan ad about Detroit. calls it, led to more than 30,000 views of a new landing page created as part tion of activities or themes. The State University who conduct the of the campaign that promotes De- Pure Michigan campaign has done state’s annual tourism forecast will troit’s recovery from municipal bank- this recently with ads touting present highlights from last year ruptcy. It was part of an $800,000 paid Michigan’s craft beer industry and and look ahead to this year. media campaign for the Detroit ad. farm-to-table food culture. Neither released data before the This year, as the Pure Michigan And he said he’ll call on them to conference, yet said the industry branding campaign turns 10, tour- undertake an idea “that is actually re- had a good year. ism promoters are turning more of- ally unusual” for a business whose job Longwoods’ most recent study ten to digital media to tell Michi- it is to attract people to their own suggested Pure Michigan ads gan’s travel stories. The web and communities: a travel exchange of prompted 4.1 million out-of-state social media are occupying a bigger sorts, in which tourism industry pro- trips to Michigan in 2014, generat- share of a marketing arsenal that moters from across the state encour- ing an estimated $85.4 million in still largely encompasses print ads, age people to visit other destinations. state tax revenue. radio and television. “It’s very conceptual,” Lorenz The state earned $6.87 for every The evolution of digital media — said, “but we’re going to ask them dollar spent on Pure Michigan in and how to use it effectively — will to help build it.” 2014, the data show. “As part of the Cohen & Company team, we’re be among the trends highlighted at The idea sprang out of the Detroit Yet Longwoods’ figures are esti- immersed in a culture of continuous learning that helps the annual Pure Michigan Governor’s promotional campaign. Lorenz said mates. There is no way to deter- us identify game-changing opportunities for clients.” Conference on Tourism, which con- that just as the city has changed over mine whether a Pure Michigan ad tinues today in Lansing. the years, so have other cities inspired a traveler to visit the state. – Cathy Lorenz, Partner “We still feel that TV video is around the state. That creates op- Travel Michigan spent roughly critically important to get out that portunities to visit new places. $12 million this year on a national RQHÀUPEHWWHUWRJHWKHU_FRKHQFSDFRPJKG message, but you can do that in That exchange-city concept also TV ad buy for the Pure Michigan other ways,” Lorenz told Crain’s could be used to support Flint, spots. The campaign’s total budget to this report last week to preview the confer- which is dealing with a public health is $33 million. ence. “This whole concept about crisis caused by lead-contaminated “In general, I can say that 2015 was new media consumption is some- drinking water. As Crain’s previously a fantastic year for the state’s travel in- thing that we’ll be exploring more reported, the crisis threatens to tar- dustry,” Sarah Nicholls, an associate over the next year.” nish the Pure Michigan brand — es- professor in MSU’s community sus- This year’s conference, hosted pecially on social media — and tainability and geography depart- by the Michigan Lodging and Tourism some fear long-term damage also ments, wrote Crain’s via email. Association, is titled “Think, Act, could hurt business attraction ef- She and her colleagues will Thrive” and is expected to draw forts to the city. present the full state tourism out- upward of 800 tourism industry Lorenz said he will ask the tour- look Monday afternoon. professionals through Tuesday. ism industry to support Flint. One trend that’s having a no- That day, Lorenz will speak on “My wife and I personally are go- ticeable impact, she said: A stron- behalf of Travel Michigan, the ing to be going there for leisure and ger U.S. dollar, which is reducing state’s tourism division housed maybe to do some work to help the travel from Canada. within the Michigan Economic Devel- community, and I’m going to en- With that exception, “every indi- opment Corp. courage the industry to support one cator that we track trended positive- He is expected to touch on in- of our towns that needs support ly (not necessarily up, in the case of dustry best practices during his right now,” he said. “We in our in- prices, for example) in 2015,” Nich- address. That will include such dustry need to stand up and en- olls said. “Gas prices were down things as digital marketing — Trav- courage (visitors) to do it.” considerably, and consumer confi- el Michigan this year also paid to dence was up. Travel volume and have Pure Michigan ads show up $85.4 million in taxes spending increased. on the streaming video service The big highlight, though, will “Many properties and cities/re- Hulu for the first time — and how be the numbers. gions reported their best year ever. local convention and visitors bu- Lorenz plans to present the new- This in spite of weather that was av- reaus could do similar things with est report from Toronto-based Long- erage at best (in the summer) and their own marketing. woods International, which contracts quite poor in the two most recent Lorenz said he will encourage with Travel Michigan to study the winters.” Ⅲ local visitors bureaus to do more effectiveness of the Pure Michigan Lindsay VanHulle: (517) 657-2204 “passion-oriented marketing,” a campaign. Twitter: @LindsayVanHulle term he uses to describe promo- And researchers from Michigan Michael Lewis II contributing CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 5 Fund that helps launch startups ready Calling all angels to start third recruitment of investors By Tom Henderson level in the future; or have a net “If we’re serious about that inspect buildings and infra- [email protected] worth of more than $1 million, in- structure; Grand Rapids-based It’s time to recruit more angel dividually or jointly with a spouse. diversifying the economy, we Varsity News Network Inc., which investors to help launch startups According to the Kansas City, need to focus on early-stage provides online news and market- in Michigan, and it’s almost time Mo.-based Angel Capital Associa- ing platforms for high schools; to raise the Michigan Angel Fund tion, there are more than 200,000 companies that can scale and Ann Arbor-based ContentOro LLC, III, said Skip Simms, a senior vice angel investors in the U.S., and in serve a global marketplace.” which provides content licensed president and director of entrepre- 2014, they invested about $24 bil- from publishers for websites; and neurial services at Ann Arbor Spark lion in more than 73,000 startups. Skip Simms, Michigan Angel Fund III Genomenon Inc., an Ann Ar- and the managing member of the Simms said those interested bor-based spinoff from the Universi- MAF, an Ann Arbor-based angel in getting their accreditation, [email protected]. about this asset class,” he said. ty of Michigan that provides software organization that has raised two investing in the third fund or “I’m always interested in talking MAF has 16 companies in its to simplify genome interpretation previous funds. learning more about why angel in- to qualified investors who haven’t portfolio, including Ann Ar- for personalized medicine. Ⅲ The Michigan Angel Fund was vesting is an important asset invested yet but who are interested. bor-based SkySpecs Inc., which Tom Henderson: (313) 446-0337 launched in 2011, and its first fund class can send him an email at I’m always happy to talk to them makes software to operate drones Twitter: @TomHenderson2 raised $2.1 million from 72 accred- ited investors. The second fund of $2.05 million was raised in 2014 from 62 investors. Simms said he would like to raise more than $2 million for the third fund but declined to specify a target. According to Simms, the two funds invested $2.91 million last year in 14 deals, including $1.6 million in six deals in the fourth quarter alone. He said investments “ HOW CAN BEING in companies range from $250,000 to $600,000, which include invest- ments from the funds themselves, as well as additional personal mon- MORE ENERGY ey partners in which the funds might want to invest. He said he is in due diligence on one current deal that might close EFFICIENT HELP soon, with most of the unspent balance from the second fund to be used for follow-on investments in current portfolio companies. “We’ve reviewed a handful of com- MY BUSINESS?” panies since the end of the year, but are only close on one,” he said. Warmer weather may make it hard for businesses to save money on their gas and electric “We've got enough money to in- bills while still keeping employees and customers cool. That’s why DTE Energy wants vest in two more companies, so you to know what you can do to accomplish both goals. Programming thermostats to we’re getting close to the end of the second fund,” he said. “It's im- automatically adjust the temperature during unoccupied periods and installing motion portant for the economy for us to sensor lights in less used areas are easy ways to save without sacrificing comfort. have a third fund. If we’re serious Replacing incandescent lights with compact fluorescent or LEDs will result in even more about diversifying the economy, energy savings. Together, we can reduce energy waste and help your business thrive. we need to focus on early-stage companies that can scale and serve a global marketplace. And if For more tips and ways to save, visit dteenergy.com/savenow. we fund those companies, we also keep our students in the state be- cause of job opportunities that ex- cite them.” The Michigan Economic Develop- ment Corp. invested $600,000 in the first MAF fund and $500,000 in the second fund. It has come under at- tack by politicians in Lansing for some of its efforts at boosting en- trepreneurship. Simms said he is still hopeful the MEDC will invest in the third fund. “We know there is an interest in Lansing to encourage people to include angel investing as an asset class in their portfolio,” he said. “I'm not clear what incentive there will be from Lansing. I hope there will be some money. It won't be a lot, but that’s fine.” The U.S. Securities and Exchange Commission limits participation in Simms’ funds to accredited inves- tors. To be accredited, generally an investor must earn an individual income of more than $200,000 per year or have a joint income of $300,000 in each of the last two years and expect to maintain that 6 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 The upside of an uprooting — OPINION and one Detroit expat’s journey ony Bennett left his heart in Today, ethnicity — and immi- More time needed on TSan Francisco. I once left a pi- gration — hold a more compelling ano in Buffalo, a casualty of yet an- urgency and meaning. other move during the early stages Fadell thinks immigration has of my career. So when consumer been politicized. “This country electronics innovator, iPod godfa- was built on immigrants, and if I mental health issues ther and look at my team now, it’s multicul- Grosse Pointe tural, it’s diverse,” he said. “Of oliticians are pretty predictable. But sometimes, such South High MARY KRAMER course we can’t have open bor- as the ongoing debate about how to improve the alum Tony Publisher ders, but we need H-1B visas (for state’s administration of mental health services, the Fadell told me skilled workers). Caucasians aren’t he had at- the only smart brains out there. We Pneed for more time to understand the issues makes a lot of About Detroit tended 12 have some of the best talent in the sense. schools in 15 Homecoming world attending the University of Last week in Lansing we heard more about the long-run- years growing What: An invitation-only experience Michigan and Stanford, and then ning battle between Medicaid HMOs and mental health orga- up, I winced, for successful metro Detroit “expats” we send them home because they thinking to inspire them to re-engage with the can’t get visas. We need strong nizations over Michigan’s $2.4 billion Medicaid behavioral Tony Fadell about how city as “brand ambassadors,” brains; we can’t let those brains go health budget. It’s going to be until late in the year before much energy uprooting takes. investors or philanthropic donors away.” much more is known about how the state will proceed. And “We moved around a lot,” he When: Sept. 14-16, 2016 He credits his maternal grand- that is OK. said with a laugh. “It was exhaust- father for teaching him how to On Tuesday, House and Senate leaders stepped into the fray ing.” Past attendees (2014 or 2015): take things apart — and put them He apparently recovered. Today, More than 300 “expats” have back together — while living with and inserted their suggestions for how to proceed into the attended the two Homecomings state’s proposed fiscal 2017 budget. That means the legislators Fadell lives in the Silicon Valley the Fadell family after his wife area and runs the company he combined. They include former New died. essentially halted, at least for this year, Gov. Rick Snyder’s ef- founded, Nest, which Google ac- York Deputy Mayor Dan DoctoroŽ, “He was an educator, and at fort to hand over Medicaid behavioral health funding to the quired in 2014 for $3.2 billion. A actor Tom Skerritt, Method co- night a truant officer in the 1950s. health plans. leader in developing the first gen- founder Eric Ryan, CNN and ESPN And he also ran the metal shop, eration of the iPod, he has been commentator LZ Granderson, the auto shop, the wood shop at They also rendered moot Lt. Gov. Brian Calley’s self-im- Groupon co-founders Brad Keywell posed deadline of mid-May to have a workgroup create re- described by Fortune magazine as the high school. He’d take kids off “the only disciple of Steve Jobs to and Eric Lefkofsky, author David the streets in the 1950s and give placement language for mental health services for the pro- achieve outside post-Apple suc- Maraniss, Motown founder Berry them training and careers — be- posed budget, which begins Oct. 1. cess.” Gordy Jr., ABC correspondent Bob fore jail. He did all kinds of things. Everyone involved wants to find a way to improve coordi- Detroit can claim him honestly WoodruŽ, music industry executive So he took my brother and me into nation of care between behavioral and physical health for pa- as an “expat,” exactly the type Mike Jbara, Digg founder Jay Adelson, the garage; we fixed lawn mowers we’ve been inviting to the annual former NBA star Shane Battier and and built birdhouses. I knew how tients with mental illnesses and developmental disabilities. Basketball Hall of Famer George How best to improve the system and cut costs will be left to a Detroit Homecoming event in things worked.” September since 2014. Crain’s De- Gervin. After graduating from the Uni- large group of stakeholders to sort through. And the work- troit Business produces the invita- Outcomes to date include: Will versity of Michigan with a degree group has until December to make recommendations. tion-only event, which is support- Adler, CEO of Spirit Leatherworks, in computer engineering, Fadell This is the kind of policy topic where a better understanding ed by private foundations and opened a retail store in Midtown; moved west. And the rest, as they of the complexities of patient conditions, care, and billing local companies who believe in Terry Axelrod, founder and CEO of say, is history. models is essential before blowing up the system. the concept of re-engaging suc- Benevon, moved training sessions for Last week’s awards event also cessful “expats” in Detroit’s revital- her consulting ™rm to Detroit; Sara honored Jackson native Paula ization. (See related box.) Jane Boyers’ photographic work will Faris, co-host of ABC’s “The View,” Fadell hasn’t made it to Home- be displayed in the U.S. Pavilion at and Veronica Reggie Kennedy, an Snyder team revamp sensible coming — yet. But we’re starting to the 2016 Venice Architecture attorney and widow of U.S. Sen. tell the story of other Homecom- Biennale in May-November; USA Ted Kennedy. Other well-known Speaking of the governor, the Flint water crisis has rattled ing expat/alums and how they’re Gymnastics Hall of Fame member Lebanese-Americans honored in his administration to its core. Among the issues: Intense re-engaging with their hometown. Wendy Hilliard is exploring opening a the past include singer-songwriter communications breakdowns between Snyder and state (See the ad on Page 18.) Maybe gym for children in Detroit; Teresa Paul Anka, actor Tony Shalhoub, Fadell will be part of the alumni Sebastian’s Dominion Asset Group opera singer Rosalind Elias and department heads. The poor communication exacerbated group. has made investments in Detroit Westland native and actor Greg the poor decision-making at the DEQ level — and beyond The Lebanese-American com- development projects; San Diego- Jbara. Jbara and Faris could be — that led to contaminated water. munity can claim Fadell, too, es- based entrepreneur Tom Tierney great Homecoming prospects, too. Last week, we learned that the governor has made addition- pecially since he was honored last contributed $2 million to his alma The key to Homecoming — or al staff changes in his executive ranks, largely involving mov- week by the American Task Force mater, Wayne State University. awards events like last week’s gala ing people around to other administration roles. There’s a new for Lebanon in a Washington, D.C., More information: — is to engage successful, gala dinner. (The task force also www.detroithomecoming.com high-profile people in a cause or chief legal counsel who had worked as deputy chief of staff has strong Michigan ties: Leslie initiative. Touma was already (Elizabeth Clement). There’s a new press secretary (Anna Hea- Touma, a veteran in automotive thinking of that the day after the ton), and the director of the Department of Licensing and communications, is the group’s based in Toledo, where, Fadell gala. So Fadell just might have Regulatory Affairs (Mike Zimmer) is moving over to a new post executive director. Spencer Abra- says, the Lebanese surname Fadell some ideas for creating e-learning as Cabinet director. ham, a one-term U.S. senator was as common as “Smith in the opportunities for those thousands from Michigan, chairs the board.) Detroit phone book.” His mother, of Syrian refugees in Lebanon. Moving the chess pieces around in any organization can In a telephone interview before a hospital administrator, hailed “Tony is one of the biggest make sense. Sometimes a new or reinvented role matches the awards, Fadell said that the from a Polish-Russian family cen- thinkers of his generation,” Touma best to a manager’s strengths or experience. But we can’t help dizzying series of moves — includ- tered in Detroit; her father served said. “And he’s proud to be Leba- but wonder why, in the midst of a round of state government ing stops in Detroit, Toledo, Long as superintendent of Hamtramck nese.” Ⅲ musical chairs, we’re not hearing about a few more exits. Island, Dallas and Grosse Pointe schools in the 1960s and her moth- If you don’t have trust between employees and department — were tied to his father’s sales ex- er once worked as Lee Iacocca’s Mary Kramer is publisher of Crain’s ecutive jobs with Campbell Soup executive chef. Detroit Business. Catch her take on heads, you don’t have the foundation for a strong administra- Co. and, later, Levi Strauss. “Holidays were Christmas Eve tion. Lateral communication systems are key as well. business news at 6:10 a.m. Mondays But throughout it all, family ties in Toledo eating all this Lebanese on the Paul W. Smith show on WJR Only those in the inner circle know the full sequence of mattered. Both his parents were food,” Fadell said, “and the next AM 760 and in her blog at communication breakdowns, but the Flint debacle does show born in the U.S. His father’s large day in Detroit, eating Polish-Rus- www.crainsdetroit.com. that Snyder’s team has a lot of rebuilding to do to survive. Lebanese-American family was sian.” CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 7 Alleged robocalls, text messages add to ViSalus dispute By Chad Halcom fore a Detroit federal judge last and violations of the state Consum- suits are without merit and will security Carlo Pacileo received [email protected] month allowed portions of a 2014 er Protection Act. Andrew Kochan- continue utilizing all available legal three years of federal probation Court disputes between Troy- lawsuit on behalf of three other for- owski, attorney for the promoters remedies to vigorously defend it- plus a fine and community service based ViSalus Inc. and many of the mer ViSalus promoters in Livonia, and shareholder at Southfield-based self in these matters,” the company in a related criminal case. direct sales company’s former dis- Northville and Canton Township to Sommers Schwartz PC, said he will try statement says The U.S. Department of Justice al- tributors have added a new di- go forward. That suit is also a pro- to get class certification this summer Hints of trouble between ViSalus leged last year that Pacileo hired mension lately in federal court — posed class action, on behalf of an before U.S. District Judge Matthew and its independent promoter net- owner Nathan Moser of owner allegations of robocalls and estimated 100,000 or more sales Leitman in Detroit. work surfaced in early 2013, when Menlo Park, Calif.-based Moser and unwelcome mass text-messages. ViSalus distributors who lost money ViSalus noted that Judge Leit- ViSalus brought a series of lawsuits Associates, who in turn hired an- The company, which markets in what plaintiffs allege was a pyra- man’s decision to let portions of the in Michigan, Florida and Georgia other company and collaborated weight-loss shakes, protein bars mid scheme selling starter kits promoter lawsuit go forward “does against Utah-based Ocean Avenue with it to hire hackers to illegally and energy drinks largely through a and making monthly charges for not reflect the merits of the claims,” LLC and several ViSalus distributors obtain information from emails network of independent salespeo- auto-shipments of ViSalus products. and the company is preparing its it alleged were leaving to work for and computers of Ocean View’s ple and canceled an IPO in 2014 The promoters allege civil viola- response to the latest version of it. Ocean Avenue as a competitor. co-founders and a former ViSalus amid falling revenue, calls “without tions of the federal Racketeer Influ- The court has requested that re- Most of those cases were later employee for its litigation. Ⅲ merit” a proposed class action law- enced and Corrupt Organizations sponse by next week. dismissed, however, and last No- Chad Halcom: (313) 446-6796 suit alleging ViSalus made telemar- Act, unjust enrichment, conversion “ViSalus believes all of these law- vember former ViSalus director of Twitter: @ChadHalcom keter calls and automated robocalls to former promoters and others, without their consent. The lawsuit at U.S. District Court in Portland, Ore., alleges violations of the federal Telephone Consum- er Protection Act, both for calls to numbers on the National Do Not Call Registry and for robocalls made without consent. An Oregon woman, who briefly became a company affiliate in 2013, alleges ViSalus began calling repeatedly in early 2015, despite no recent contact and several re- quests that the company stop call- ing, in the case before District Judge Anna Brown. “Unfortunately ... ViSalus, on its own and/or through its represen- tatives, has turned to a tried and true, albeit unlawful, method of reaching new customers: unsolic- ited telemarketing,” the lawsuit states. “(ViSalus) ... or its represen- tatives place thousands of out- bound telemarketing calls each day to consumers nationwide.” Also in early 2015, a similar Geor- gia lawsuit alleges, ViSalus began sending automated text messages to a former sales promoter in that state. She contends she got at least 63 such texts in just over four months and made several requests for ViSalus to stop, although the company con- tends in court it only received such a request in September. ViSalus in a statement Friday said it would defend itself against those lawsuits, and that both its indepen- dent promoters and its customers state their preferences in writing to the company about being contact- ed for future promotions. Some banks just see the deal. “ViSalus respects the National Do Not Call Registry and designs At Huntington, we see the people behind it. its telemarketing programs to be compliant with the (Telephone Consumer Protection Act) and Does your bank look at your company like just another other applicable laws and regula- number? At Huntington, our Relationship Managers offer the tions. …,” the company said. “These lawsuits are part of the rap- type of powerful insights, industry experience and strategic id rise in TCPA litigation over the business solutions that can only come from someone who past few years against companies takes the time to get to know your business. Because at in many industries.” John Craiger, partner at the law Huntington we’re big enough to meet your needs, but small firm Quarles & Brady LLP, which is enough that every customer matters. defending ViSalus in both the tele- phone consumer lawsuits, de- ® ® clined to comment on that litiga- Member FDIC. ¥ and Huntington are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.TM is a service mark of Huntington Bancshares Incorporated. © 2016 Huntington Bancshares tion. Attorneys for the company at Incorporated. Seyburn Kahn PC in Southfield and Honigman Miller Schwartz and Cohn LLP in Detroit also did not return calls. The new suits came shortly be- 8 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016

Intellectual Property | Litigation | Technology Investors drop plan Transactional experience on par with the major Silicon for Achatz Valley law firms.

– BRAD KANCIGORKANCIGOR,, ASSOCIATEASSOCIATE GC SySynopsys,nopsys, InIncc franchise By Sherri Welch [email protected] YOUNG BASILE. A group of local investors Strategic advisors to the world’s that includes Keith Sirois, CEO of most innovative companies. Big Boy Restaurants Interna- tional, is pulling back on plans to franchise Achatz Handmade ANN ARBOR TROY SILICON VALLEY CHICAGO Pie Co. Sirois; his son Kevin Sirois, www.youngbasile.com former manager of marketing analysis for Checkers; and Da- vid Crawford, Big Boy senior vice president for marketing, paid a nominal fee to pur- chase the rights to franchise the pie company from owners Wendy and David Achatz in the fall of 2014. They had operated an Ann Ar- bor store then and opened ki- osks in area malls during the holidays, looking for a viable franchise model, Keith Sirois said. “The product is just out- standing; it’s clearly the best pie product I’ve ever had,” he said. “We just couldn’t figure out the seasonality.” While there’s strong retail de- mand for pies between Thanks- giving and Christmas and, to some degree, around Easter and Mother’s Day, “we just couldn’t sustain business in other parts of the year,” he said. It’s not as difficult for Achatz itself to sustain its compa- ny-owned stores because it has a wholesale business that’s also producing revenue, Sirois said. “At some point, you’ve got to say either I can’t figure it out or it’s not viable,” he said. “And it’s probably more that I can’t figure it out than any- thing else, because the prod- uct is very good. Plus, I have a day job.” For its part, Achatz Home- made Pie Co. plans to eventually franchise the concept with someone else, Wendy Achatz said. The company is negotiating with Sirois and his group to re- purchase the equipment from the Ann Arbor store they also purchased with the rights and operated before closing it per- manently on Easter, she said. Achatz isn’t pursuing fran- chises for the moment, she said, as it focuses on opening another company-owned store in Northville by fall. Achatz projects the compa- IS YOUR COMPANY Ask how: ny will hit $10 million in reve- [email protected] nue this year, up from about (313) 446-6032 SUPPORTING $9 million last year. Ⅲ ISSUE DATE: MAY 9 Sherri Welch: (313) 446-1694 THE TROOPS? AD CLOSE: APRIL 28 Twitter: @sherriwelch CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 9 SPECIAL REPORT: HEALTH CARE

OTHER VOICES Marjorie Mitchell Mitchell is executive director of MichiganUCan, a nonprot health care advocacy group. It’s time to build Medicaid HMOs on success grow bottom lines of the ACA a er expansion t has been six years since the passage of the Affordable Care Act. There is good news in Michigan Iand bad news. The good news is that 20 million more people across America now have health insurance. Pre-existing condi- tions no longer are a barrier to access, children can stay on their parents’ insurance until age 26, lifetime caps on insurance are a thing of the past and thousands of jobs have been created to handle the newly insured. healthy The bad news is that the costs A of health care and insurance have continued to rise and are often pushed directly to the consumer in the form of higher copays and deductibles. It is time we, the people, build on the successes of Obamacare and engage in respectful, transparent conversations that PROFIT will investigate the continuing What is Healthy Michigan? barriers to affordable health care Under the Patient Protection and and develop the will to fix them. Aordable Care Act of 2010, states were Discussion must consider a allowed to expand their Medicaid single-payer system, such as programs in 2014 to people ages 18-64 Medicare. under 133 percent of the federal poverty The fact that health care costs level (about $16,000 per year for a single have not been drastically adult). reduced should not be a surprise. ILLUSTRATION Michigan was one of 31 states that agreed The ACA was developed by BY LISA SAWYER to expand Medicaid, with the federal congressional committees government agreeing to pay 100 percent heavily influenced by powerful, of the costs for three years, or through well-funded lobbyists for those 2016. interests who did not want their large profit margins jeopardized. Then, starting in January 2017, Michigan It was impossible to address and other states are required to fund such issues as hospitals built to about 5 percent of costs, which for Michigan amounts to about $150 million rival five-star hotels, the still-too- By Jay Greene Michigan Health Market Review. The Medic- large administrative fees, lack of [email protected] aid data presented here is based on annual per year, rising to 10 percent by 2021. cost transparency, and over- Medicaid HMOs in Michigan increased financial reports the HMOs submitted to the So far, 619,000 Michiganians have signed priced prescription drugs and profitability significantly the past two years Michigan Department of Insurance and Financial up for Healthy Michigan, with about medical equipment. under the Affordable Care Act, primarily be- Services. 520,000 enrolled in a health plan, far Costs have fallen or leveled off cause the state expanded Medicaid by more “Medicaid expansion and the rates the exceeding the 450,000 state projections in some areas, but we, as than 619,000 and gave additional funding state is paying under expansion has been a for the rst two years. consumers, have seen little relief to support the newly insured popula- very profitable business for the health Despite Gov. Rick Snyder’s original proposal on health care bills. Copays and tion, according to an exclusive plans of the state,” Baumgarten to place 50 percent of state savings — deductibles are rising. The threat analysis conducted for Crain’s. said. which amounted to more than $220 million of bankruptcy continues to loom Profits rose for the HMOs by “Overall profitability is way up. in 2014 and 2015 — into a health savings over families who have a cata- 627 percent on their Medicaid The underwriting margins are sub-account of the governor’s budget strophic illness, accident or who business lines to $298 million, or a very strong” as average premium stabilization fund, the state Legislature require expensive prescription 3.9 percent margin, for 14 plans in per member per month revenue in- declined to do so. drugs to sustain life. 2015 from $41 million, or 0.9 percent creased by 15 percent in 2015, the first A recent Kaiser Family Foundation margin, in 2013 — the year before Michi- full year under the Healthy Michigan Medic- From 2014 to 2023, Healthy Michigan is poll found that 24 percent of the gan expanded Medicaid under Obamacare, aid expansion, Baumgarten said. projected to save the state $983 million, public favors a single-payer according to Allan Baumgarten, a Minneap- Underwriting margin excludes invest- according to a report by Ann Arbor-based system, and an additional 36 olis-based health care consultant. ment income gains and reflects premium Center for Healthcare Research & percent wants to build on the ACA. Baumgarten in June will publish a full revenue, medical and administrative ex- Transformation. The savings come from Change is wanted and needed. report on all HMO business lines, including penses. It specifically assesses how well the mental health and prison expenses for Let’s get the conversation rolling, commercial and Medicare, in the 2016 SEE HMO, PAGE 10 people who had received services leaving our ideologies at the door previously paid for by the state general fund now covered by Healthy Michigan. and with the health of our people Medicaid HMOs score big under Healthy Michigan, Page 12 as our beacon. Ⅲ 10 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 SPECIAL REPORT: HEALTH CARE SPECIAL REPORT: HEALTH CARE tion of medical services from the based Molina Healthcare of Michigan ONLINE HMO new Medicaid population. and Detroit-based Meridian Health FROM PAGE 9 “We knew a little of the outpa- Plan of Michigan have been in- MASTER OF HEALTH tient utilization because some of formed they must pay back several health plans managed medical the (Healthy Michigan enrollees) million tied to “risk corridor” con- care. were from the county health plans, tract provisions. Molina must pay ADMINISTRATION Rick Murdock, executive direc- but nothing on inpatient or phar- back $8.5 million and Meridian tor of the Michigan Association of macy,” Murdock said. $3.6 million. DEGREE Health Plans, said the association While HMO and state Medicaid advocates for the state to set pre- officials expected newly enrolled Healthy Michigan mium rates that would generate at Medicaid patients would require part of safety net from Central Michigan University’s least 2 percent annual profit mar- more medical services during the In April 2014, Michigan became Herbert H. & Grace A. Dow gins for the Medicaid HMO plans. first year than the traditional Med- one of 31 states that began to en- “Looking at our records the past icaid population, the massive en- roll thousands of people with in- College of Health Professions 10 years in terms of mar- rollment gains and en- comes at 133 percent or below the gins for Medicaid plans as hanced revenue made up federal poverty level (about an industry, they have for slightly sicker enroll- $15,000 for an individual) into CMU IS PROUD TO ANNOUNCE been around 1 percent,” ees, Baumgarten said. Medicaid under provisions of the Murdock said. “The high- From 2013 to 2015, Affordable Care Act. the addition of the online MHA to its If you are in a health career or est was in 2008, at 3.7 per- Medicaid premium reve- The state had estimated 450,000 distinguished list of healthcare programs. want to change careers to a cent, and the lowest was in nue in Michigan in- new Medicaid enrollees would high-paying, in-demand position 2013 at 0.7 percent. Last creased by 32 percent to join Healthy Michigan the first in healthcare management – now year was about 2.8 per- average $393 per member year. But 619,000 have signed up, Projected to is the time to make your move. cent, which is where we per month. But medical swelling the Medicaid rolls by Healthcare increase advocate. We believe this expenses, which were 30 percent to 2.3 million. Total Allan management ACT The application provides a good, viable projected to rise for that HMO enrollment is 3.3 million. positions are deadline is June 6, 2016 means for health plans” to Baumgarten: population, grew only by Medicaid expansion and nearly 22 State anticipated NOW! and seats are limited. offer value to members 20 percent to $321 per 350,000 additional people pur- by 2020 and the state. higher utilization. member per month, a chasing private insurance on the Central Michigan University Murdock’s profit mar- $72 spread during that federal health insurance exchange gins for 2015 are based on net in- three-year period that accounted in Michigan have cut the state’s 877-268-4636 come of $239 million, which takes for the profitability gains, the uninsured rate from 11.5 percent global.cmich.edu/MHA into account investment income, study for Crain’s found. in 2010 to about 8 percent this taxes and required contributions “The state anticipated higher year. Central Michigan University is accredited by the Higher Learning Commission of to reserves. Crain’s analysis level of utilization, built it into the While population health im- the North Central Association of Colleges and Schools. CMU is an AA/EO institution, providing equal opportunity to all persons, including minorities, females, veterans, and showed underwriting income in rates, and it didn’t happen,” said provements haven’t yet been cal- individuals with disabilities (see cmich.edu/OCRIE). cmich.edu/Global 44757 4/16 2015 of $298 million, which ac- Baumgarten. culated from ACA Medicaid ex- counts only for underwriting in- Because of that, Michigan Med- pansion, Michigan’s hospitals, come and medical expenses. icaid officials expect to collect physicians, medical and health Regardless of the difference in about $26 million back from at care companies also have benefit- accounting, Murdock said neither least five Medicaid HMOs for over- ed by receiving hundreds of mil- the state nor the HMOs really payments. lions in dollars in payments, knew what to expect with utiliza- Crain’s has learned that Troy- boosting their revenue and strengthening their bottom lines, said Paul Hughes-Cromwick, co-director of Altarum Institute’s Michigan Medicaid protability Center for Sustainable Health Spend- Most Michigan Medicaid health plans increased underwriting income and ing in Ann Arbor. margins in 2015 (gures in millions): “Medicaid expansion is a big boon to the state’s economy. You Underwriting Underwriting Underwriting Underwriting have 600,000-plus people covered, Income Income Margin % Margin % 2015 2014 2015 2014 and the plans are doing extremely well,” he said. “You get all this new Aetna Better $9.8 $8.0 4.2% 4.3% money into the state, and (ex- Health panding Medicaid) has a multipli- Blue Cross er effect that is a win for the overall -$1.6 -$13.9 -0.4% -5.4% Complete state economy.” Complimentary For example, the 90 cents Mich- Fidelis Secure Care -$1.1 NA -21.4% NA igan will receive from the federal HAP/Midwest government after 2020 for each Webinar $43.5 $30.0 9.8% 8.2% Presented by Health Plan dollar in Healthy Michigan Medic- Harbor Health Plan $8.5 $0.7 23.9% 3.0% aid spending will translate into Comerica Business $1.35 to $1.80 or more in state eco- HealthPlus Owner Advisory -$11.4 -$11.7 -4.4% -4.0% nomic activity, he said. Partners Another positive ripple effect to McLaren Health Michigan’s Medicaid expansion $29.4 $25.1 3.7% 4.2% Experience a Higher Level Plan has been the double-digit decline of Business and Meridian Health $27.0 $14.3 1.3% 1.0% Wealth Planning Plan of Michigan Molina Healthcare $81.9 $54.0 6.7% 6.0% Crain’s seeks 2016 Health Care Heroes Priority Health $13.0 -$1.3 2.9% -0.4% Choice Do you know a Health Care Hero? Crain’s Detroit Business Sparrow PHP -$2.0 -$0.4 -2.3% -0.6% is seeking nominations for Health LEGACY PLANNING: (FamilyCare) Care Heroes, a special report on Shaping Your Financial Destiny Tuesday, May 3, 2016 Total Health Care $6.7 $5.6 2.1% 2.1% health care professionals that will 12 p.m. – 1 p.m. ET UnitedHealthcare run in the July 18 issue. and Family Values. $79.1 $47.9 6.5% 4.8% The program will honor medi- What every business owner and wealthy Community Plan cal innovators and patient advo- individual needs to know about passing on Upper Peninsula cates dedicated to saving lives or values and vision to future generations. $15.2 $4.8 7.1% 3.4% To Register: Health Plan improving access to care. CrainsDetroit.com/webinars HMO TOTAL $298.0 $163.1 3.9% 2.8% Winners will be chosen in five Powered by: categories: NA: Not applicable Ⅲ Corporate achievement in health Comerica Bank. Member FDIC. Source: Michigan Health Market Review by Allan Baumgarten; state HMO lings care: Honors a company that has CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 11 SPECIAL REPORT: HEALTH CARE SPECIAL REPORT: HEALTH CARE tion of medical services from the based Molina Healthcare of Michigan new Medicaid population. and Detroit-based Meridian Health “We knew a little of the “We knew a little of the outpa- Plan of Michigan have been in- outpatient utilization because tient utilization because some of formed they must pay back several some of the (Healthy Michigan the (Healthy Michigan enrollees) million tied to “risk corridor” con- were from the county health plans, tract provisions. Molina must pay enrollees) were from the county but nothing on inpatient or phar- back $8.5 million and Meridian health plans, but nothing on macy,” Murdock said. $3.6 million. While HMO and state Medicaid inpatient or pharmacy.” officials expected newly enrolled Healthy Michigan part of safety net Medicaid patients would require Rick Murdock, Michigan Association of Health Plans more medical services during the In April 2014, Michigan became first year than the traditional Med- one of 31 states that began to en- icaid population, the massive en- roll thousands of people with in- in costs to hospitals for uncom- rates for some plans have flat- rollment gains and en- comes at 133 percent or below the pensated care, Hughes-Cromwick tened. hanced revenue made up federal poverty level (about said. In 2014, for example, hospi- Hughes-Cromwick said Medic- for slightly sicker enroll- $15,000 for an individual) into tals in the 31 Medicaid expansion aid utilization in Michigan and ees, Baumgarten said. Medicaid under provisions of the states reduced uncompensated other states started to decline From 2013 to 2015, Affordable Care Act. care costs by $7.4 billion, accord- during 2015. Medicaid premium reve- The state had estimated 450,000 ing to the U.S. Department of Health “We started to see acceleration nue in Michigan in- new Medicaid enrollees would and Human Services. with Medicaid and on the ex- creased by 32 percent to join Healthy Michigan the first Like HMOs, hospital profit mar- changes in 2014, and last year we average $393 per member year. But 619,000 have signed up, gins are increasing under started to see a de-acceleration,” per month. But medical swelling the Medicaid rolls by Obamacare, Baumgarten said. said Hughes-Cromwick, who is expenses, which were 30 percent to 2.3 million. Total Michigan’s 83 hospitals averaged conducting his own study on Med- projected to rise for that HMO enrollment is 3.3 million. 8.2 percent total profit margin in icaid expansion. “Utilization is sta- population, grew only by Medicaid expansion and nearly 2014, up from about 3 percent in bilizing already. The plans with 20 percent to $321 per 350,000 additional people pur- 2013, he said. good care management are doing member per month, a chasing private insurance on the Unless hospital mergers pick up very well.” $72 spread during that federal health insurance exchange to blunt managed-care contract Gov. Rick Snyder’s fiscal 2017 three-year period that accounted in Michigan have cut the state’s negotiating clout, health insurers budget, which he presented in for the profitability gains, the uninsured rate from 11.5 percent will continue to force down prices February, calls for a 1.5 percent in- study for Crain’s found. in 2010 to about 8 percent this that eventually will help to moder- crease for traditional Medicaid “The state anticipated higher year. ate private health premiums, and 2 percent for Healthy Michi- level of utilization, built it into the While population health im- Hughes-Cromwick said. gan. rates, and it didn’t happen,” said provements haven’t yet been cal- Declining uncompensated care However, the state’s rate-set- Baumgarten. culated from ACA Medicaid ex- costs “will take pressure off the ting process — that is based on Because of that, Michigan Med- pansion, Michigan’s hospitals, rates private payers will pay,” he actuarially sound payments to icaid officials expect to collect physicians, medical and health said, adding that also eventually is HMOs — could lead to lower or about $26 million back from at care companies also have benefit- expected to slow business health higher rate increases than previ- least five Medicaid HMOs for over- ed by receiving hundreds of mil- care costs. ous years, depending on project- payments. lions in dollars in payments, Nationally, Hughes-Cromwick ed utilization and health care in- Crain’s has learned that Troy- boosting their revenue and said, Medicaid HMOs in many flation trends. strengthening their bottom lines, states also are recording some of Baumgarten said many HMO said Paul Hughes-Cromwick, the highest profit margins that executives he has spoken with be- Your co-director of Altarum Institute’s they have enjoyed in years be- lieve Michigan will lower rates for Michigan Medicaid protability Center for Sustainable Health Spend- cause of Medicaid expansion. 2017. Fleet Graphics Most Michigan Medicaid health plans increased underwriting income and ing in Ann Arbor. Baumgarten, who surveys Med- “The 3.9 percent profitability is Partner margins in 2015 (gures in millions): “Medicaid expansion is a big icaid plans in nearly a dozen maybe more than states want to boon to the state’s economy. You states, said Michigan is the first pay,” he said. Underwriting Underwriting Underwriting Underwriting have 600,000-plus people covered, state to report full 2015 numbers. Murdock acknowledged that Income Income Margin % Margin % 2015 2014 2015 2014 and the plans are doing extremely He said several states, including part of the good fortune for Medic- well,” he said. “You get all this new Minnesota, are showing similar aid HMOs in 2015 was “we got a Aetna Better $9.8 $8.0 4.2% 4.3% money into the state, and (ex- trends as Michigan. good appropriation” because the Health panding Medicaid) has a multipli- Looking forward this year, state knows the plans provide Blue Cross er effect that is a win for the overall Baumgarten said he believes Med- good value to members. -$1.6 -$13.9 -0.4% -5.4% Complete state economy.” icaid HMOs will continue to post But he also said 2017 margins For example, the 90 cents Mich- strong profits even as Medicaid depend on rate levels, managing Fidelis Secure Care -$1.1 NA -21.4% NA igan will receive from the federal enrollment and rates flatten. utilization of services and the big HAP/Midwest government after 2020 for each Hughes-Cromwick said he, for $43.5 $30.0 9.8% 8.2% unknown — rising pharmaceuti- Health Plan dollar in Healthy Michigan Medic- several reasons, expects Michigan cal costs. Harbor Health Plan $8.5 $0.7 23.9% 3.0% aid spending will translate into to lower HMO Medicaid rates for “We are concerned about phar- $1.35 to $1.80 or more in state eco- 2017. He said the state will moder- maceuticals,” he said. “I would be HealthPlus -$11.4 -$11.7 -4.4% -4.0% nomic activity, he said. ate rates as they take into consid- surprised if we hit those margins Partners Another positive ripple effect to eration the relatively high profit next year.” Ⅲ McLaren Health Michigan’s Medicaid expansion margins HMOs have enjoyed the Jay Greene: (313) 446-0325 $29.4 $25.1 3.7% 4.2% Plan has been the double-digit decline past two years and how utilization Twitter: @jaybgreene Commercial Fleets, Marketing Programs Meridian Health $27.0 $14.3 1.3% 1.0% and Specialty Vehicle Wraps Plan of Michigan We do more than provide graphic branding solutions that attract and Molina Healthcare $81.9 $54.0 6.7% 6.0% Crain’s seeks 2016 Health Care Heroes inspire. Our mission is to evoke a unique emotional experience and leave Priority Health a lasting impression on our partners and their clients. As a national $13.0 -$1.3 2.9% -0.4% Choice Do you know a Health Care created an innovative health ben- health fields who is deemed ex- leader in large format graphics, we set the benchmark for quality. From Hero? Crain’s Detroit Business efits plan or solved a problem in emplary by patients and peers. Sparrow PHP our passionate team of creative designers, expert printers, and -$2.0 -$0.4 -2.3% -0.6% is seeking nominations for Health health care administration. Ⅲ Trustee: Honors leadership (FamilyCare) professional installers to our world-class facility and state-of-the-art Care Heroes, a special report on Ⅲ Advancements in health care: and distinguished service on a technologies—we make you look remarkably good. Total Health Care $6.7 $5.6 2.1% 2.1% health care professionals that will Honors a company or individual health care board. UnitedHealthcare run in the July 18 issue. responsible for a discovery or for A panel of health care judges Community Plan $79.1 $47.9 6.5% 4.8% The program will honor medi- developing a procedure, device or will choose the Health Care He- cal innovators and patient advo- service that can save lives or can roes winners. The deadline for Upper Peninsula cates dedicated to saving lives or improve quality of life. nominations is May 16. They can $15.2 $4.8 7.1% 3.4% Health Plan improving access to care. Ⅲ Physician: Honors a physician be made at CrainsDetroit.com/ HMO TOTAL $298.0 $163.1 3.9% 2.8% Winners will be chosen in five whose performance is considered nominate. categories: exemplary. Questions? Contact Michael Lee NA: Not applicable Ⅲ Corporate achievement in health Ⅲ Allied health: Honors an indi- at (313) 446-1630 or malee@crain. iMBranded.com / (866) 717-4467 Source: Michigan Health Market Review by Allan Baumgarten; state HMO lings care: Honors a company that has vidual from nursing or allied com. Ⅲ 12 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 SPECIAL REPORT: HEALTH CARE Medicaid HMOs score big under Healthy Michigan

By Jay Greene Molina of Michigan is owned by $14.3 million because medical ex- “We use predictive modeling on [email protected] Molina Healthcare of Long Beach, Ca- penses started to rise more quickly each patient and try to get them ser- Medicaid expansion in Michigan lif., which operates Medicaid plans in than the previous year, Meridian vices to prevent them from develop- has paid off handsomely for most of 11 states, including Illinois and Ohio. COO Jon Cotton said. ing into a more severe case,” Cotton the state’s 14 Medicaid HMOs. Meridian is a family-owned plan “It is definitely better (income) said. “It probably costs more up The three biggest Medicaid based in Detroit that runs Medicaid than we expected,” said Cotton, front, but we avoid costs using these HMOs in Michigan — for-profits and Medicare plans in six states. noting that the premium rates predictive tools,” he said. Meridian Health Plan of Michigan, Moli- UnitedHealthcare Community have been fair the past two years. Meridian is one of at least five na Healthcare of Michigan and United- recorded $79.1 million in under- Like all HMOs, Meridian’s medi- HMOs — including Molina — that — in- writing income, a 65 percent in- cal expenses increased the past will be required to repay the state for Healthcare Community Plan creased underwriting income to crease from $47.9 million in 2014. Jon Cotton: Christine Surdock: two years — 13 percent to $321 per overpayments it received based on “Better than we “There was record levels, despite experiencing The Southfield-based plan, which is member per month last year from “risk-corridor” provisions in the expected.” pent-up demand.” double-digit average increases in owned by the nation’s largest HMO, $283 in 2014. Medicaid contract. medical expense costs and a bump Minnetonka, Minn.-based United- “(Healthy Michigan) population Cotton said the plan will write a in administrative expenses, accord- Healthcare Group Inc., lost $8.7 million $1.3 million in 2014. never had insurance ...,” Cotton check to the state for $3.6 million ing to an analysis of Michigan finan- in 2013, the year before Healthy Even Harbor Health Plan Inc., the said. “We had no idea what their because its patients were less sick cial data by Minneapolis-based Michigan Medicaid expansion be- smallest Medicaid plan with 6,600 medical costs and needs would be.” and less expensive than predicted consultant Allan Baumgarten. gan in April 2014. members, turned around its opera- Cotton said the increase in medi- from April 2014 to April 2015. Molina Healthcare recorded Priority Health Choice, a nonprofit tion, recording $8.5 million in un- cal expenses not only reflected costs Molina, which is the second-larg- $82 million in underwriting income plan owned by Grand Rap- derwriting income on Medicaid in associated from a somewhat sicker est Medicaid HMO with 327,000 last year for a 6.7 percent margin, ids-based Spectrum Health System, 2015 for a 24 percent profit margin. Healthy Michigan population, but members, also is on the hook to re- and Meridian notched $27 million also found positive income during The for-profit plan, which is also from other populations many pay the state about $8.5 million un- in underwriting income for a 1.3 the Healthy Michigan expansion. owned by Dallas-based Tenet of the plans absorbed during the der the risk corridor contracts. percent margin, according to finan- Medicaid underwriting income Healthcare Corp., lost $41,000 in past several years. Despite Molina’s medical expens- cial data filed to the Michigan Depart- jumped to $13 million, a 2.9 per- 2013 when Tenet acquired the for- Aside from the 142,000 Healthy es increasing 23 percent to $312 per ment of Insurance and Financial Ser- cent margin, bouncing back from mer ProCare Health Plan. Tenet Michigan members, Meridian member per month in 2015 from vices. losses of $1.2 million in 2013 and also owns Detroit Medical Center. added nearly 50,000 members that $254 per member per month in Harbor Health CEO Mehrdad included TANF, or temporary as- 2013, Molina was able to increase its Shafa, M.D., said in a statement sistance for needy families, which Medicaid underwriting income 222 that the HMO financially im- are mostly single moms with ba- percent to $81.9 million in 2015 BEFORE YOU DO SOMETHING YOU MIGHT REGRET, RETHINK. proved for several reasons, includ- bies; aged, blind and patients with from $25.4 million in 2013. ing early medical intervention, disabilities, known as ABD; and “Molina has a very strong clini- outreach efforts to promote children with essential health cal program, and we certainly are healthy lifestyles and the expan- needs, Cotton said. dedicated toward taking care of sion of the Medicaid program. But Cotton said once Meridian this population,” said Christine started adding thousands of Healthy Surdock, Molina Michigan’s CEO. Meridian Michigan members and the health She said profit margins have fluc- boosts margins risk assessment tests started com- tuated over the years. “Any success Meridian, the state’s largest ing back, “we saw much more prev- we might have right now is (targeted Medicaid HMO with 455,000 alence of chronic conditions — dia- toward) improving quality and cost members in 2015, has enjoyed a betes, heart disease, asthma and effectiveness,” Surdock said. good two-year growth run, mov- behavioral health issues — than we While the Healthy Michigan ing into new headquarters in expected.” population required more medical downtown Detroit and adding However, “once the costs came in services than traditional Medic- more than 1,000 new employees. it was much lower than we thought aid, Surdock said use was lower The HMO also increased its un- … , Cotton said. “It makes a big dif- than projected, especially in 2015. derwriting income 315 percent to ference if someone has diabetes and “There was pent-up demand. $27 million last year from $6.5 mil- you get them under control, on in- We tried to get those members to lion in 2013. Underwriting mar- sulin, they never had before.” see their physician as opposed to gins rose to 1.3 percent last year One reason costs may have risen the ER,” she said. from 1 percent in 2014 and 0.6 per- more quickly at Meridian, said Cot- At Priority Health, medical ex- cent in 2013. ton, is that it uses a variety of soft- penses for the Medicaid popula- But in 2015, underwriting in- ware programs that measure future tion rose 15 percent, lower than come rose more slowly to medical needs of its population. the industry trend of 20 percent, to $295 per member per month in 2015 from $257 in 2013. 70th TheKey to your Anniversay your next successful “We did anticipate that the Commercial CONSTRUCTION Healthy Michigan population would Industrial project depends on be higher cost and higher utiliza- the Company YOU select. tion” because they are adults and Large Residential not mothers and children, said Guy Explore your options... Gauthier, Priority’s senior director of government programs. “We were pretty conservative in how we re- corded operations during first year, even into 2015.” D.J. MALTESE Harbor Health’s Shafa said Healthy Michigan patients some- RETHINK Construction Corporation times require complex treatment because their previous lack of ac- Architectural Quality Since 1946 cess to affordable care created big- ger problems. Before considering a commercial coverage makeover, “As we are able to address the have the Sterling Insurance Group “RETHINK” your risk underlying problem, ongoing care exposure and effectively lower your insurance costs. ...Buy right the first time! 412 N. Main Street, Plymouth, MI 48170 and health often becomes less ex- CALL TODAY 734-737-0500 pensive to maintain,” Shafa said. 888.525.7575 | 586.323.5700 | sterlingagency.com “As more people have access to Excellence in Construction Services and Craftsmanship, health care, we also expect to see Commercial Insurance • Employee Benefits • Personal Insurance a family tradition since 1946 an improvement in general health, and a move toward enhanced 2015 www.djmaltese.com population health.” Ⅲ CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 13 New local Spanish-language station will seek Tigers, Lions By Bill Shea Guttman said his plan is to ap- Zamora, who owns two other its first few weeks, Guttman said, [email protected] proach the Detroit teams about stations out of state along with sev- and the market plan to introduce A new Spanish-language radio striking a similar deal. eral nightclubs, bought the station the station includes contests with station is on the air in metro De- “Our goal is to have conversa- license from the Minority Media and business, billboards and an em- troit, and its operator is interested tions with the Tigers and Lions,” he Telecommunications Council in 2014 phasis on word-of-mouth. in becoming the flagship Span- said. The Tigers contract their radio for $100,000, broadcast industry Guttman said he has nine local ish-language broadcaster for De- broadcasts through a network of records show. His Zamora Enter- advertisers inked to contracts for troit Tigers and Lions games. stations handled by CBS Radio Inc. tainment, where a permanent stu- when the station begins airing com- WDTW 1310 AM, under the brand- and the Lions have a similar ar- dio is being built, does Span- mercials, and he expects to have an ing name La Mega (“The Mega” in rangement with Cumulus Media Inc. ish-language musician and additional dozen or more by then. Pedro Zamora: Josh Guttman: Spanish), is now airing Mexican The Tigers confirmed they don’t entertainment bookings. Camilo Suero, executive director Spanish-language TSJ Media owner popular music and Spanish-lan- have a Spanish-language station in The market’s other Spanish-lan- of the 200-member entertainment plans to hire new Michigan Hispanic guage news, weather and traffic in- their broadcast network, but had no guage station is in , said he’s excit- promoter sta WSDS 1480 AM Chamber of Commerce formation for metro Detroit. It be- other comment on the matter. Washtenaw County’s Superior ed about the new station because its gan broadcasting last week. eton of a station and built it back Debbie Kenyon, the senior vice Township, a 24-hour music station signal will reach the Spanish-speak- The 5,000-watt station is operat- from the ground up,” said WDTW president and market manager for known as “La Explosiva.” It’s owned ing population pockets in Detroit, ed by suburban Cincinnati-based General Manager Jaime Javier Jai- CBS Radio locally, said she’s inter- by Vazquez Broadcasting Corp., but Pontiac and Macomb County. Spanish-language media publisher me, who confirmed the $1 million ested in talking with the new station its signal has more static in Detroit “This is going to be a positive. and broadcaster TSJ Media, a divi- estimate (adding that final costs about possibly airing Tigers games. than WDTW’s cleaner broadcast. This will be a conduit for our cor- sion of Gate West Coast Ventures LLC. are not yet in). “We would love to have a con- “You can hear (WDTW) clear as porate members to reach the Local Spanish-language enter- Guttman said the plan now is to versation,” she said. day in Pontiac, and Detroit is total- growing Spanish-speaking mar- tainment promoter Pedro Zamora hire 10 to 15 full- and part-time staff Older radio listeners will re- ly clear,” Guttman said. ket,” he said. owns the station through his Tay- members to operate the station out member 1310 AM as “Keener 13” He estimated there are at least Industry observers say a Span- lor-based Zamora Entertainment Inc. of Zamora’s Taylor office over the when it used the WKNR call letters. 200,000 potential listeners from To- ish-language station could make He and TSJ Media have a deal for next six weeks. WDTW for now is be- It was a Top 40 powerhouse during ledo to Detroit to Pontiac who can money filling a locally neglected the current operating arrange- ing handled from TSJ Media’s sta- the 1960s and ’70s. be tapped for Spanish-language ra- broadcast demographic. ment, which shares expenses and tion in Columbus, Ohio. The station, which has had 11 dif- dio content and advertising. “Certainly there is room for 1310 revenue. They also have prior “Piece by piece, we will hire lo- ferent sets of call letters since going Guttman also noted his company as a Spanish station as Detroit has deals in place in Ohio. cal DJs, more local salespeople, a on the air in 1946, had previously offers clients print advertising via historically been among the most TSJ Media is owned by Josh Gut- local production person and assis- been owned by radio giant Clear several Spanish-language newspa- underserved in this area of the tman, a longtime Cincinnati radio tant program director,” Guttman Channel (now iHeartMedia Inc.), which pers, and digital and mobile op- country’s major cities,” said Don industry figure. He said Zamora’s said. “All of our stations work inde- donated the station and license in tions. His company previously had a Tanner, a partner in Farmington company spent about $1 million to pendent of each other, as far as 2012 to the Minority Media and Spanish-language newspaper in Hills-based Tanner Friedman Strate- reconstruct the radio station’s four sound. It’s all locally based.” Telecommunications Council as Detroit, but eventually mothballed gic Communications and a radio-in- broadcast towers, which were dis- TSJ has the Spanish-language part of a diversity effort. It had been it and gave its advertising accounts dustry insider. Ⅲ mantled a few years ago in Taylor. broadcast rights for Cleveland Cava- off the air since then, and its radio to Latino Press, Guttman said. Bill Shea: (313) 446-1626 “We literally started with a skel- liers and Cincinnati Reds games, and towers were taken down. WDTW will be commercial-free Twitter: @bill_shea19

The Detroit Regional Chamber Mackinac Policy Conference, May 31 - June 3

Reach Crain’s Most In uential Audience of the Year!

Advertise in the Crain’s Detroit Business issue distributed at the Detroit Regional Chamber’s Mackinac Policy Conference:

BONUS FEATURE: Michigan’s 100 Most In‚ uential Women

This special edition also includes these powerful LISTS: QLeading 200 Privately Held Companies in Southeast Michigan Q Michigan Graduate Degree Programs SAVE THE DATE Most In uential Women event June 21 For advertising opportunities, contact Matt Langan at [email protected] or call 313-446-6032

#cdbin uentialwomen Crain’s Annual Mackinac Edition | ISSUE DATE: June 6 | EARLY CLOSE: May 6 14 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 TREND DU JOUR: Takeover menus By Audrey LaForest menu for one night only. new preparation techniques, new creasing the quantity of guests, Foodies Special to Crain's Detroit Business Lizzy Freier, managing editor at flavors or ingredients, and a test- and choosing the right day for the In metro Detroit’s culinary land- Chicago-based research and con- ing ground to learn what consum- restaurant. scape, restaurateurs must navi- sulting firm Technomic, said she’s ers really like. But even more im- “At the Oakland, we don’t do respond gate their businesses through a been seeing more and more take- portant, limited-run menus create takeovers on days that we’re open, sea of dining trends that can either over menus crop up onto the instant buzz on social media and or — if we do them on days that boost or bust their restaurant restaurant scene in all major U.S. through word of mouth. we’re open — we do it on a day brands. cities and even some smaller cities. that’s typically a really slow day,” tastefully One such trend that appears to “This is definitely a trend and Break from routine Levine said. have some staying power is the “take- one that’s probably here to stay,” Sandy Levine, owner of Fern- Takeovers with a twist over menu,” where for a short time — said Freier, who analyzes restau- dale’s Oakland Art Novelty Co. and as area varying from a day to a few months rant menus for the firm. Midtown’s Chartreuse Kitchen and While the Oakland focuses on — a restaurant puts its regular menu The trend can also help boost Cocktails, said he’s held take- takeover menus that typically oc- to the side in favor of something new visits from tourists or as part of a over-menu events ranging from cur one day only, Dave Kwiatkows- restaurants and special. It's sort of a modern take “foodie” excursion. sit-down multi-course meals with ki’s The Sugar House and James Riga- on a weekly special. “More and more diners are real- cocktail pairings to more casual a to’s Mabel Gray are two examples of Ferndale’s Imperial and Public ly just considering themselves and la carte menus. restaurants with takeover menus experiment House offer a takeover menu once a calling themselves ‘foodies,’” she “It kind of breaks up the monot- that are stretching the meaning of month that alternates between the said. “They’re also more and more ony... it’s fun to do something dif- “for a limited time only.” two restaurants, but they’re not the considering the experience of din- ferent,” Levine said. Last October, for The Sugar only ones to dabble in the concept. ing out to be just as important as At the Oakland, which can seat 30 House’s four-year anniversary, with o beat Other takeover menus have ap- the food itself.” guests for a coursed sit-down dinner, Kwiatkowski created a Bill Mur- peared around town at places like There are plenty of reasons for a Levine said it’s common to allow the ray-inspired cocktail menu and St. Cece’s in Corktown, where every restaurant to consider doing take- guest chef to dictate the price of the took things a step further by fare Tuesday the pub brings in a cele- over menus, Freier said. For own- menu, while he and his bartenders changing the name of the bar — brated guest chef to put out a new ers and chefs, it’s a way to learn set the cost of the cocktails. and replacing the hanging sign out

3 Better local service and support—Michigan-based account G E IV L support and award-winning customer service. E I M Better access to dentists—Nine out of 10 Michigan dentists YO S 3 U TO contract with our dental networks. R E N We do dental. Better. MPL ASO 3 Better overall value—Our large networks, processing policies OYEES A RE and fee determinations result in big savings across the board. www.deltadentalmi.com

“If an entrée costs $20, an appe- front — to “Bill Murray” through Fashioned made with bourbon, tizer costs $10 and a dessert costs the end of 2015. sugar and bitters. But as a special $10, (the chef) would charge $40 The sudden name change, addition to the seasonal, long- (per person) for the food,” Levine which lasted roughly three term takeover menu, it has previ- said, adding that the cost of the months, left some customers ously offered an $18 version cocktails varies alongside the cost scratching their heads, but Kwiat- made with a Japanese whiskey, of the food. kowski said he considers takeover syrup made from a Pedro If the chef wanted to set a menus, or similar pop-up events, Ximénez sherry and housemade coursed meal at $100 per person, the perfect testing ground for seaweed bitters. for example, Levine said he would concepts. As for Rigato at Mabel Gray, ev- try to lower the cost of the cock- “It gives me a little bit of insight ery day presents the task of com- tails or adjust portion size. on how the concept will be re- ing up with a new menu. He Staffing adjustments must also ceived,” said Kwiatkowski, who is plans the 43-seat restaurant’s be considered, but depend on the debuting a Tiki-themed menu that menu anywhere from 24 to 72 scale of the takeover menu. Levine again will be accompanied by a hours in advance and replaces said he tends to “staff a little bit new outdoor sign reading “Sugar anywhere from 10 to 100 percent heavy” since the setup is more in- House Tiki Bar.” of the menu on a daily basis. tensive, and preshift meetings re- When Kwiatkowski puts togeth- “I wouldn’t say that it’s neces- quire waitstaff to learn every new er a special menu, he said, it’s the sarily more profitable, because I item in the takeover menu. job of the bartender who submit- still run it like a normal restau- “From a business standpoint, at ted the drink to also price it out. rant with traditional food costs. least in my experience when we do “They hand it to me and say, … If we run out of something, it at the Oakland, the house makes ‘This drink costs us $2.50,’ and I we’ll move on,” Rigato said. “Ulti- significantly less money both in say, ‘OK, well, we’re going to charge mately, I’d say it’s less wasteful terms of gross sales and profits be- $9,’” Kwiatkowski said, noting that more than it is more profitable.” cause we have to give more of the his takeover-menu events like the But in terms of the one-day- profits to the staff, so that it’s worth Postcards from Polynesia Tiki par- only takeover menu, Rigato said their while to come in,” he said. ty usually bring a 200 to 250 per- you can make it “as profitable as But in terms of improving prof- cent sales increase. you want to structure it,” but that itability, Levine said an owner can Depending on the ingredients he isn’t too concerned about make the takeover menu as profit- used, cocktail prices could go up. making more money from just JOE VAUGHN able as he or she wants by adjust- As an example, Kwiatkowski said, one event. Sunseed farm radish and anchovy butter at Mabel Gray in Hazel Park. ing ingredients and prices, in- the bar always offers an $8 Old “It’s motivated by other things CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 15 Novi. Dunhill Park has received rezoning approval and is going through the site plan approval stages. Franklin Construction was awarded the construction TREND DU JOUR: DEALS & contract. The development is Takeover menus expected to be completed in creasing the quantity of guests, 2016. Website: and choosing the right day for the franklinpropertycorp.com. restaurant. “At the Oakland, we don’t do DETAILS Altair Engineering Inc., Troy, takeovers on days that we’re open, ACQUISITIONS & two-factor authentication system, announced that AVL List GmbH, or — if we do them on days that MERGERS which allows employees to verify Graz, Austria, has joined the Altair we’re open — we do it on a day Blue Water Equity Partners LLC, their identity using a single click on Partner Alliance Online Software that’s typically a really slow day,” Birmingham, a private equity a mobile phone app as a level of Portal adding AVL Excite Levine said. fund, purchased controlling security beyond passwords alone. Acoustics and AVL Fire M software interest in Websites: duo.com, king.com. to the portfolio of third-party Takeovers with a twist Diversi ed Metal Products Inc., Gaylord, an technology, in the domains of While the Oakland focuses on aluminum and magnesium Southfield-based Signature sound radiation calculation, takeover menus that typically oc- die-casting company servicing Associates has been appointed as computational fluid dynamics cur one day only, Dave Kwiatkows- the agriculture, archery and the new leasing firm for Columbia and multiphysics. Websites: ki’s The Sugar House and James Riga- automotive industries. Website: Center Towers I and II, 101 and 201 altair.com, avl.com. to’s Mabel Gray are two examples of A pots de bluewaterep.com. W. Big Beaver Road, Troy. The two restaurants with takeover menus creme dish towers total more than 500,000 Meritor Inc., Troy, announced a that are stretching the meaning of was part of CONTRACTS square feet of office space. Website: new five-year agreement with “for a limited time only.” the Bali Hai Duo Security Inc., Ann Arbor, a signatureassociates.com. Navistar Inc., Lisle, Ill. Under the Last October, for The Sugar menu takeover cloud-based access security agreement, Meritor retains House’s four-year anniversary, event at provider, announced that King.com Franklin Construction Co. LLC, an standard position for brakes and Kwiatkowski created a Bill Mur- Oakland Art Ltd., Dublin, an interactive affiliate of Franklin Property Corp., rear axles, as well as standard ray-inspired cocktail menu and Novelty Co. in entertainment company, and an Birmingham, was awarded the positions for front axles in severe took things a step further by Ferndale. independent unit of Activision entitlement contract for Dunhill service, medium-duty and bus changing the name of the bar — DAVID Blizzard Inc., is rolling out to its 2,000 Park, a 31-unit high-end Hunter applications. Websites: and replacing the hanging sign out LEWINSKI employees globally Duo Security’s Pasteur Homes development in meritor.com. navistar.com.

3 Better local service and support—Michigan-based account G E IV L support and award-winning customer service. E I M Better access to dentists—Nine out of 10 Michigan dentists YO S 3 U TO contract with our dental networks. R E N We do dental. Better. MPL ASO 3 Better overall value—Our large networks, processing policies OYEES A RE and fee determinations result in big savings across the board. www.deltadentalmi.com

front — to “Bill Murray” through Fashioned made with bourbon, besides profit,” he said. “Camara- EXPANSIONS MOVES NEW SERVICES the end of 2015. sugar and bitters. But as a special derie, staff appreciation … col- Key Plastics LLC, Livonia, a Ja‰e Raitt Heuer & Weiss PC has SME, Dearborn, formerly the The sudden name change, addition to the seasonal, long- laborative efforts, learning from manufacturer of automotive moved its law office from the Society of Manufacturing which lasted roughly three term takeover menu, it has previ- each other.” interior, exterior and under-the- Guardian Building, 500 Griswold Engineers, has rolled out a months, left some customers ously offered an $18 version Rigato held a takeover-menu hood plastic components, is St., Suite 2400, Detroit, to Grand corporate membership program, scratching their heads, but Kwiat- made with a Japanese whiskey, event at the end of February with opening a state-of-the-art flatbed Park Centre Building, 28 W. which connects companies to kowski said he considers takeover syrup made from a Pedro fellow chefs Doug Hewitt from paint system, including a Adams Ave., Suite 1500, Detroit. professionals within the SME menus, or similar pop-up events, Ximénez sherry and housemade Chartreuse and Andy Hollyday 30,000-square-foot expansion, at Telephone: (313) 800-6500. network. Employees will have the perfect testing ground for seaweed bitters. from Selden Standard. The trio its plant in Chihuahua, Mexico. Website: jaffelaw.com. access to SME membership concepts. As for Rigato at Mabel Gray, ev- each served up one dish and The advanced system paints benefits, including training, events, “It gives me a little bit of insight ery day presents the task of com- paired it with a beer for $33 a per- plastic parts for automotive NEW PRODUCTS research and publications. on how the concept will be re- ing up with a new menu. He son — a price that’s on the low interiors and features in-house- Altair Engineering Inc., Troy, Website: sme.org. ceived,” said Kwiatkowski, who is plans the 43-seat restaurant’s side compared to a previous six- designed software that can announced that its subsidiary debuting a Tiki-themed menu that menu anywhere from 24 to 72 course Italian dinner and wine process over 100 different colors, Altair ProductDesign, with Acromag Inc., Wixom, a designer and again will be accompanied by a hours in advance and replaces pairing he held with chef Luciano including high gloss and piano ThyssenKrupp Elevator AG, manufacturer of industrial new outdoor sign reading “Sugar anywhere from 10 to 100 percent Del Signore for $115 a person. black. Website: keyplastics.com. Alpharetta, Ga., are developing a electronics and measurement and House Tiki Bar.” of the menu on a daily basis. Takeover menus, Rigato said, rope-less elevator system. The control products, announced a new When Kwiatkowski puts togeth- “I wouldn’t say that it’s neces- “are not typically more or less Dogtopia of Birmingham, a franchise new elevator system, named electronic contract manufacturing er a special menu, he said, it’s the sarily more profitable, because I profitable. They should be al- of Dogtopia Enterprises LLC, Tysons “Multi,” does not require any roof- division at its facility in Wixom for job of the bartender who submit- still run it like a normal restau- most like isolated incidences. Corner, Va., has opened at 2300 mounted cables, which enables it the commercial, industrial, ted the drink to also price it out. rant with traditional food costs. You either chase volume or you Cole St., Birmingham. The dog to travel with no limits in height aerospace, defense, telematics and “They hand it to me and say, … If we run out of something, chase prestige.” daycare, boarding and spa facility as with conventional elevators. automotive industries. ‘This drink costs us $2.50,’ and I we’ll move on,” Rigato said. “Ulti- Rigato does leave fellow is owned by Scott Paul. Telephone: Passengers therefore have no Website: acromag.com. say, ‘OK, well, we’re going to charge mately, I’d say it’s less wasteful restaurateurs who are consider- (248) 540-3344. Website: need to swap elevators mid $9,’” Kwiatkowski said, noting that more than it is more profitable.” ing takeover menus with a warn- michigan.dogdaycare.com/ journey. In addition, this weight- his takeover-menu events like the But in terms of the one-day- ing: Consumers will not be fooled dogtopia-of-birmingham.html. optimized new design, which uses Deals & Details guidelines. Email Postcards from Polynesia Tiki par- only takeover menu, Rigato said if a concept seems gimmicky or electromagnetic drives to move [email protected]. Use ty usually bring a 200 to 250 per- you can make it “as profitable as too pricey for the value. UHY LLP, Sterling Heights, a the elevator between floors, is any Deals & Details item as a model cent sales increase. you want to structure it,” but that Don’t do it, he said, “if you’re certified public accounting firm, capable of transporting the for your release, and look for the Depending on the ingredients he isn’t too concerned about doing it to try to turn a dollar or if has added Guinazu & Asociandos elevator horizontally as well as appropriate category. Without used, cocktail prices could go up. making more money from just you’re flipping your concept in SpA, Chile, to the UHY global vertically. Websites: complete information, your item will As an example, Kwiatkowski said, one event. order to seem like you know what accountancy network. Website: altairproductdesign.com, not run. Photos are welcome, but we the bar always offers an $8 Old “It’s motivated by other things you’re doing.” Ⅲ uhy-us.com. thyssenkruppelevator.com. cannot guarantee they will be used. 16 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 PEOPLE: 8294; email: salvaderos.faccmi@ Gilbert, Ross gmail.com. SPOTLIGHT Hitachi promotes Carroll CALENDAR Today. Tomorrow. Together. 11 THURSDAY Alley. Steve Arwood, CEO of the a.m.-2 p.m. April 29. Eight Mile to president-CEO investors APRIL 21 Michigan Economic Development Boulevard Association. 17th Farmington Hills-based Women’s Power Breakfast. 7-9 Corp., discusses MEDC’s plans to Annual 8MBA Leadership Hitachi Automotive Systems a.m. Gleaners Community help grow Michigan’s economy Luncheon features networking America Inc. announced the in sports Food Bank. Brings together and what it takes to continue the and a panel discussion with the promotion of Paul Carroll to more than 600 of the area’s most state’s reinvention. Automation “Big 4” (Detroit Mayor Mike president and CEO. powerful women. Co- Alley, Troy. Free with advance Duggan, Wayne County Executive Carroll, 59, replaced Toru analysis  rm chairwomen are Faye Nelson, registration; $10 walk-in Warren Evans, Macomb County “Richard” vice president public affairs, members; $15 walk-in Executive Mark Hackel and Kamioke, who DTE Energy, and president, DTE nonmembers. Contact: events@ Oakland County Executive L. became vice Bloomberg News Energy Foundation; Andra Rush, automationalley.com; phone: Brooks Patterson) on current president, chairman and CEO, Rush (800) 427-5100. public policy issues facing Eight executive Billionaires Dan Gilbert and Trucking Corp.; and Nancy Mile and the region. Christy offi cer and Stephen Ross are among the in- Schlichting, CEO, Henry Ford UPCOMING EVENTS McDonald, host of DPTV’s sales vestors in a sports statistics com- Health Systems. Eastern Market “MiWeek,” will moderate. Curt management pany that analyzes game videos Shed 3, Detroit. $120 individual; Breakfast of Champions. 7:30-9 a.m. Catallo, owner of Vinsetta Garage, division for teams, coaches and recruiters $1,000 table. Contact: Suzette April 27. Leadership Oakland. Union Joints and other director and in multiple sports at all levels. Hohendorf, phone: (313) Barbara McQuade, U.S. attorney, restaurants, will talk about his Paul Carroll general Gilbert is founder of De- 923-3535; email: [email protected]. Eastern District of Michigan, purchase of the Albert Kahn- manager of troit-based Quicken Loans Inc. and speaks on “Public Leadership designed WWJ building on Eight the technical sales division of owner of the Cleveland Cavaliers. DEC Presents John Noseworthy. — Fighting for Justice.” MSU Mile and his plans to transform parent Hitachi Automotive Ross, a University of Michigan alum- 11:30 a.m.-1:30 p.m. Detroit Management Education Center, it into a restaurant. Cobo Center., Systems Ltd. in Japan. nus and philanthropist, is owner of Economic Club. Noseworthy is Troy. $32 LOAA members; $36 Detroit $60; tables of 10 are $500. Carroll is the fi rst non- RSE Ventures and the Miami Dolphins. president and CEO of the Mayo nonmembers. Website: Registration closes April 25. Japanese native to serve in the They are among the investors in Clinic. Cobo Center, Detroit. $45 leadershipoakland.com/events. Website: eightmile.org/ role for the company, which New York City-based Krossover, DEC members; $55 guests of DEC Leadership_Luncheon. manufacturers electrical which closed a $20 million Series B members; $75 nonmembers. DEC Presents Denise Morrison. 11:30 systems for the auto industry round led by Ross’ RSE Ventures. Phone: (313) 963-8547; email: a.m.-1:30 p.m. April 27. Detroit 2016 Fight For Freedom Fund Dinner. at plants in Kentucky and Basketball Hall of Famer David [email protected]. Economic Club. Morrison, 5-11 p.m. May 1. Detroit branch Georgia. Before joining Robinson’s Admiral Capital Group president and CEO, Campbell NAACP. Democratic presidential Hitachi, Carroll held various private equity fund and Lyrical Fuel: Detroit. 9 a.m.-5 p.m. Fuel Soup Co., is the speaker. Westin candidate and former Secretary of sales positions at Tokico Partners’ Jeff Keswin, who founded Leadership. Speakers include Mark Hotel, Southfi eld. $45 DEC State Hillary Clinton will be the America, a Hitachi subsidiary, Greenlight Capital, also are backers. Kelly, commander of Space Shuttle members, $55 guests of DEC keynote speaker at the 61st and General Motors Co. The 5-year-old company’s bas- Endeavour’s fi nal mission; members, $75 nonmembers. annual event, which has the ketball clients include newly mint- authors Marcus Buckingham and Contact: (313) 963-8547; email: theme “Let America Be America Uhlenbecker named ed NCAA men’s champion Villanova Mitch Albom; Jacques Panis, [email protected]. Again.” Cobo Center, Detroit. University as well as the University of president, Shinola; lifestyle guru $150. Phone: (313) 871-2087. Akebono president-CEO Kentucky men’s team, a fi rst-time Martha Stewart; Sarah Kay, founder, French-American Chamber meeting. Farmington Hills-based customer in its 2012 title season. co-director, Project Voice; and 4-6:30 p.m. April 28. French- Akebono Brake Corp. hired Wilm The new capital will be used to Michael Strahan, co-host, “Live American Chamber of Calendar guidelines. Visit Uhlenbecker as president and enhance Krossover’s video tech- With Kelly and Michael.” Sound Commerce, Michigan chapter. crainsdetroit.com and click “Events” CEO, replacing interim CEO nology, founder Vasu Kulkarni Board, Detroit. $495 general; $895 Gérard Araud, ambassador of near the top of the home page. Kanji Miyajima, now an said. Among the company’s prod- VIP. Contact: Jordan Broad, France to the United States, is to Then, click “Submit Your Events” executive ucts is a basketball video clip ser- phone: (248) 206-7065; email: attend a networking reception from the drop-down menu that will adviser to vice in which the company tags [email protected]. while visiting France-based appear. Fill out the submission form, Uhlenbecker. players to specifi c plays in which automotive suppliers Faurecia then click “Submit event” at the Before they were involved. It also has FRIDAY and Valeo. Open to members and bottom of the page. joining tools for parents of players and for APRIL 22 nonmembers. Noah’s, Auburn More Calendar items can be found Akebono Brake recruiters, who can receive video Next Steps to Improve Michigan’s Hills. $40. Contact: Stephanie at crainsdetroit.com/events. Industry Co. and statistics of players. Ⅲ Economy. 10-11 a.m. Automation Salvadero, phone: (313) 701- Ltd.’s North American ADVERTISEMENT subsidiary, Wilm Uhlenbecker, Uhlenbecker 51, was president of Mahle Behr USA Inc. He joined Behr America in 2007 as COO before Mahle acquired a majority share of the supplier in 2013, later integrating Delphi Automotive plc’s thermal management business. Durance tabbed as LAW Caitlin Malloy-Marcon and Brad Strader, AICP, PTP Mi-Light exec director Associate & Senior Associate, Diane Durance, a veteran of Haran Rashes local entrepreneurship, was MKSK named executive director of General Counsel Caitlin is a transportation planner with over 10 years of experience in land use and Mi-Light, a 3-year-old nonprofi t Clear Rate development connectivity, transit oriented development and multi-modal transit station trade organization for the state’s Communications plans. She specializes in community engagement and transportation planning with photonics industry. She will Haran Rashes joins Clear experience in commuter and downtown parking management, heavy and light rail, bus rapid remain president of Lansing- Rate as their General transit, accessible transportation and comprehensive transportation plans, as well as public based MiQuest and on the board Counsel. Filling this critical and private sector experience. of directors of the Ann Arbor- role, he executes all contract negotiations, based New Enterprise Forum. regulatory and legal compliance, and litigation Brad brings to MKSK more than 30 years of experience in land use planning, code writing, Durance was executive to support the company’s growth objectives. downtown revitalization, transportation and transit planning. He has been involved in over director of the Great Lakes Haran has over eighteen years of specialized 100 projects throughout Michigan, Ohio and elsewhere. Brad is a frequent instructor on a Entrepreneur’s Quest, an Ann telecommunications regulatory and legal variety of topics for organizations like the MEDC, Michigan Association of Planning, the Arbor nonprofi t that supported compliance experience. He was previously at Michigan State Bar, the Michigan DOT and many transportation agencies in the Great Lakes would-be entrepreneurs. In 2014, Clark Hill PLC where he also served as the Region. it merged with the Small Business editor of the Michigan Telecommunications Foundation of Michigan to form Report. He holds his Juris Doctor degree from MiQuest. Ⅲ the University of Toledo. CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 17 April 18, 2016 CRAIN’S DETROIT BUSINESS Page 17 “Dave and I have a Shore annually being named a top HALL place to work. FROM PAGE 3 great relationship, “Dave helped us create a culture MARKET JOB and he was an here. He’s going to knock it out of his Rock Financial commercials, the park in retail. He’ll be a rock PLACE FRONT Hall hosted a three-hour show on important part of star, but it will take him time to LEGAL SERVICES POSITIONS AVAILABLE Sundays on WJR AM 760 called build a business,” Ishbia said. “But growing this “Real Estate Insiders.” you'll really see him take off over MEDICAL COLLECTIONS Washtenaw Community College Hall, 45, said he returned last business.” the next 12-24 months.” 38 YEARS EXPERIENCE Associate Vice President for week from a trip to West Palm After his departure from Rock/ WORKERS COMPENSATION & AUTO College Advancement Beach, Fla., where he was scouting Mat Ishbia, President and CEO, Quicken, Hall formed Hall Financial Reasonable fees contingent upon recovery The Associate Vice President (AVP) for College out possible locations for an office United Shore Corp., which operated as an affili- Highest Peer Rating Advancement will be the lead administrator to Former Adjunct member of Workers Comp support fund development. The AVP will provide he hopes to open there this year or ate of the Ross Mortgage Group in Appeal Board direction for the Washtenaw Community College (WCC) Foundation and its Board of Directors. next. He has applied for a Florida driving to open houses know that Royal Oak until he joined United WILLIAM S. STERN - 248-353-9400 The successful candidate must possess a license. Hall said that in the next they were open. Hall taped an ad Shore. www.sternlawfirm.com Bachelor’s degree and five years of progressive executive leadership experience, with a year or two he wants to open offic- on Friday, it ran on Sunday, and “Dave is a smart guy. He’s got successful record of significant fund es in Ann Arbor, Grand Rapids and the phones started ringing. the background to be successful,” MISCELLANEOUS development. Initial annual salary range is Traverse City, and by the end of His presence will be much more said Tim Ross, president and CEO $110,000 - $120,000. To see the complete posting and 2018 have a team of 100. muted now. “I’ve got a small bud- at Ross Mortgage, who said Hall’s NEED WAREHOUSING? complete an online application go to: For the past five years, Hall was get,” he said. “I’m not competing departure from Ross was amica- Plymouth & Livonia Area https://jobs.wccnet.edu at United Shore, much of that time with Quicken. We want to be doing ble. • Cross-Dock Services • Trucking Services MISCELLANEOUS running the retail mortgage oper- 100 loans a month. They do 100 “The question is whether he’ll • Diverse Supplier • Reasonable Rates ation for a company that special- loans an hour.” get the necessary exposure on TV Call 810-701-0833 ized in wholesale lending, funding Hall was named, at age 35, to and radio to get viewers and lis- SURVEY loans that brokers and institutions the 2005 class of Crain’s 40 under teners to pick up the phone and across the U.S. originated. Late in 40. call him. Quicken is ubiquitous ANALYZE 2014, United Shore ended its retail Hall and Gilbert made head- and Dave was, too, at one time. Call or email today for information business to focus exclusively on lines in December 2007 when Hall But Quicken has a huge budget. on a custom advertising plan! MATCH the wholesale business, where it was suddenly terminated without How much capital will he have to ranked No. 1 nationally last year public explanation. The action set drive his message? Does he have with $13 billion in volume. off a whirlwind of speculation and the budget he needs in this envi- Quicken Loans was the No. 2 re- rumors in the blogosphere, in- ronment to attract a suitable num- [email protected] tail lender in the U.S., with mort- cluding allegations he was trying ber of customers?” 313.446.6068 gage volume of $78.5 billion. Wells to form a rival mortgage company. Hall said he can’t be considered CrainsDetroit.com/JobConnect | Fargo & Co. Inc. was No. 1, with vol- Quicken denied that the termi- a real competitor for Quicken sim- ume of $123.1 billion. nation had anything to do with ply because of scale. He said one After United Shore’s retail busi- those allegations. area where he definitely won’t ness was shut down, Hall was Though his departure from compete with Quicken is the lat- REAL ESTATE named that company’s vice presi- Rock/Quicken was anything but ter’s highly publicized Rocket dent of innovation. He left United amicable — there even were re- Mortgage smartphone app. He OFFICE SPACE Shore in January to start his own ports Gilbert allegedly struck Hall said the loan process is too com- company. at a bar mitzvah in 2009 — Hall’s plicated to manage with your Furnished Class A Ofce Space “I really enjoy building a team. departure from United Shore was thumbs. 27777 Inkster Rd, Farmington Hills At the age I am now, I feel I have a on good terms. In fact, United “Quicken has a great organiza- lot to offer. I want to create a com- Shore has agreed to be one of tion, they really do. What they’ve pany where my main guys run it, those who funds Hall Financial’s built is remarkable. The mortgage Up to and I’m here for guidance,” he mortgages. market is moving toward automa- said. “I'm grateful for my time at Hall said that despite having no tion and do-it-yourself. There’s a 100,000 SF United Shore. I learned a lot about publicity beyond word-of-mouth market for people who want that,” Available the mortgage side of the business, that he had started a business, his said Hall. but I really wanted to get back into company has closed two loans “We’re going to be marketing to For more information, contact: retail.” and has about 30 in the pipeline. people who are the opposite of Sheila Fogarty Lesley Gutman 248 686 5982 248 351 4383 Though he was a senior vice “Dave and I have a great rela- that, who think doing a mortgage [email protected] [email protected] president at Rock and a mortgage tionship, and he was an important is something they can’t fathom banker himself, most knew Hall as part of growing this business,” said themselves and need to talk to OFFICE SPACE OFFICE SPACE the ubiquitous spokesman of a Mat Ishbia, United Shore president someone. Our slice of the pie is Grosse Pointe Farms Office Space Available OFFICE SPACE FOR LEASE "The Hill" on Kercheval. 1,100 sq. ft. of fast-growing company whose and CEO. When Hall was hired in people who know banks move too Luxury 2nd Floor Space Available. huge advertising budget allowed May 2011, Shore was doing about slow and want good service and • Detroit’s best value Contact: Dane Fossee (313) 343-0700 for buys across the radio dial and $1.8 billion a year in volume. consultation. Our philosophy is: • East Jefferson facing Detroit River • 5,000 to 60,000 square feet WATERFRONT PROPERTY on every TV channel. “Hopefully, we’ll be a partner for ‘Let’s meet at Starbucks, sit down • $12.00 per square foot gross plus electric It was a marketing presence him, one of his wholesale lenders.” and talk.’” • Turn-key • Free parking • Free rent that began almost by accident. In “We’ll be sending a lot of busi- Aaron Emerson, the vice presi- WALLOON LAKE the late 1990s, Hall said, he and a ness to them,” countered Hall. dent of communications at Quick- few brokers would work Sundays. Ishbia credited Hall with help- en, declined to comment. Ⅲ He asked Gilbert, Rock’s founder, if ing create a workplace environ- Tom Henderson: (313) 446-0337 they could run a spot letting folks ment that has resulted in United Twitter: @TomHenderson2 (313) 963-7653

Wonderful Family Get-A-Way 3 top execs leaving Detroit Medical Center The Crain’s reader: PLUS Rental Income 26.5% infl uence the • 150 ft. Waterfront purchase of offi ce/industrial • 5,400 sf 5 year NEW house By Jay Greene the health advisory group, Mulla- been appointed interim CEO of and commercial space. • 5 bedrooms 3 ½ bath [email protected] ny said. Children’s Hospital. • PLUS....1,200 sf 2 bedroom Cottage Help them fi nd you by • 1 Acre…attached Garage...Pole Barn Three top executives are leaving “As we continue on our ‘Path to “Luanne has held a variety of advertising in Crain’s Real Detroit Medical Center to pursue the Top,’ one of the positives along positions within the Detroit Medi- Estate section. Joe Blachy (231) 409-9119 other jobs and opportunities, CEO with the negatives is that the great cal Center, most recently serving 313.446.6086 • FAX: 313.446.034 7 Call anytime between 7am & 10pm Joe Mullany confirmed last week work being done at the DMC gets as corporate vice president for E-Mail: cdbclassif [email protected] Email: [email protected] Website: joeblachy.com to Crain’s. noticed nationally,” Mullany said business development and mar- 420 Howard St., Petoskey, MI 49770 COO Andrei Soran is leaving to in a statement to Crain’s. “And with keting,” Mullany said. “In her most be the CEO of an undisclosed that so do members of our team. recent position she was instru- health system in California; Larry When other organizations read mental in the vision, development Call or email today for information Gold, CEO of Children’s Hospital of about everything happening here and successful launch of the new on a custom advertising plan! Michigan, has left to pursue other at the DMC they want to incorpo- Children’s Hospital” outpatient opportunities; and Michael Lacus- rate those opportunities into their center in Troy. ta, an executive vice president, is organization. The easiest way is to Ewald will work closely with [email protected] leaving to become Ernst & Young’s recruit DMC talent.” physicians Stephen Lipshultz and 313.446.6068 coordinating services director for Mullany said Luanne Ewald has Joseph Lelli, Mullany said. Ⅲ 18 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 debit cards, and online and mobile In January, AAA rolled out its dig- AAA banking. ital auto loan product, which is de- Delphi wins appeal of FROM PAGE 3 Last year, Auto Club Trust FSB signed to allow members to com- also signed a marketing arrange- plete an electronic application in 3 Founded 100 years ago, The Auto ment with U.S. Bank to co-brand to 5 minutes. tax inversion decision Club Group has 10.5 million mem- two new MasterCard credit cards. “It works just as advertised,” Fer- bers in 11 states, Puerto Rico, the The AAA cards feature a reward ries said. “We did a small amount of By Dustin Walsh peal from the IRS Oce of Appeals U.S. Virgin Islands and Canada. It is system to earn AAA dollars to pur- loans the first three months, about [email protected] on April 8, it said in a Securities the second-largest of the 53 AAA chase travel and other services or 60 to 70 (per month), but now we are Delphi Automotive plc will not pay and Exchange Commission filing plans in the country behind South- for cash back. done with our testing and expect to U.S. taxes on its overseas sales, the Wednesday. ern California’s Auto Club Enterprises, “Since we own a bank, we are grow substantially this spring.” supplier announced last week af- As a U.K. tax resident, Delphi with 12.5 million members. looking at it as a way to become an A third area Richardson said Auto ter winning an appeal with the In- isn’t required to pay U.S. taxes on Richardson said he plans to build issuer over time,” Ferries said. “The Club is just beginning to develop is ternal Revenue Service this month. its sales tied to overseas operations on AAA’s 3.5 percent annual mem- agreement runs through 2012, and specialized member services for The IRS notified the supplier in and is only taxed in the U.S. on in- bership growth and its 5 percent we have a right to buy the balance millennial AAA members — many June 2014 that it would be taxed as come related to sales in the U.S. annual insurance growth. Annual sheet” in pieces over that time. of whom do not own cars. a domestic corporation, despite its In 2013, Delphi paid $256 mil- revenue was $3 billion in 2014 and AAA has about 300,000 active “We want to bring value to mil- previously established tax domi- lion in taxes at a 17 percent effec- 2015. credit cards, increasing at a 15 per- lennials,” Richardson said. “We are cile in the United Kingdom, which tive rate, according to SEC filings. But there are several emerging cent annual clip, with $600 million closely watching and analyzing would have cost the supplier hun- That figure could have risen to as service lines — besides AAA’s tradi- in balances, Ferries said. these trends where there will be dreds of millions in back taxes. much as 22 percent under the U.S. tional road, travel and insurance “We hope every one of our mem- fewer cars in the marketplace. More The IRS planned to tax Delphi, tax code, it said in a 2014 SEC fil- specialties — that Richardson said bers will get a AAA credit card,” (millennials) are living in metro ar- whose CEO and operational head- ing. Under the tax code, Delphi’s he wants to further expand. Richardson said. eas where it is costly to own a car. quarters are in Troy, retroactively tax spending could have increased Two are mobile technology and During the first three years, the They commute” (in different ways) from Oct. 6, 2009, when it emerged more than $75 million, to roughly banking. In 2011, the Auto Club en- AAA bank was managed in a com- but still could use the AAA card for from Chapter 11 bankruptcy pro- $331.3 million, in 2013. tered the banking industry with its munity bank structure and grew to services. tection. It incorporated in Gilling- The appeal win may be a blow to acquisition of a federally chartered about $78 million in assets. But AAA’s discounts and awards pro- ham, 37 miles east of London. the White House, which has sought bank in Nebraska. when Ferries arrived at AAA in 2014, gram also is poised to make a big The IRS said that Delphi’s acqui- to curb tax inversion and other In what is renamed Auto Club he saw that the local branch struc- splash with a digital alert system for sition of old assets following bank- methods for corporations to pro- Trust FSB, AAA is now marketing its ture was not scalable to all 11 states. retail and other service partners, ruptcy triggered the decision to tax tect profits offshore in recent years. own branded credit cards, auto and “We changed our strategy from a Richardson said. the supplier as a U.S. entity. Under Apple Inc., Google Inc. and many home loans in all 11 states, said branch to digital strategy, and from “We are working with retailers to U.S. tax code, U.S.-based compa- other Fortune 100 companies Tom Ferries, CEO of the bank and 2014 until last year we grew in as- launch in the first few states in the nies are taxed on sales made glob- have been targets of the IRS by AAA’s senior vice president of finan- sets to $300 million from $78 mil- third or fourth quarter,” said Rich- ally, not just on U.S. sales. incorporating portions of their cial services. It also offers a wide lion and from $40 million in depos- ardson, adding that Michigan will Delphi, however, appealed businesses offshore that allow range of banking products, includ- its to more than $240 million,” be one of the first states. The tech- the IRS decision and won the ap- them to avoid U.S. taxes. ing checking, savings, CDs/IRAs, Ferries said. nology will be available to all mem- bers by the end of the year. The AAA Mobile app digital dis- count alert system will work like this for its members: If you have downloaded an AAA Mobile app to your smartphone and go into a $QRWKHU'HWURLW+RPHFRPLQJVXFFHVVVWRU\ business such as Dunham’s Sports, Hard Rock Café or Papa Johns, an alert will pop up on your phone based on GPS to show you get an AAA dis- count by using your card. The app can be customized. Like investing in mobile technol- ogy, Richardson said, AAA’s future has always been finding new ways to serve its members. He said 2014, Detroit was emerging from bankruptcy and Podowski set the tone over the years Teresa Mosley Sebastian that he wants to continue. Detroit Homecoming was created to bring expats President and CEO “He was extremely focused on INback to their hometown to reconnect and reinvest The Dominion Asset Group AAA’s financial welfare and brand in their hometown. Two years and two classes later, 300 and commitment to employees. My people have returned. style is open communication, and I have been out in the community Teresa Mosley Sebastian, a graduate of Detroit Immaculata and in Lansing meeting legislators,” High School, University of Michigan, Wayne State University said Richardson, who still com- and MSU’s School of Law, came to the 2015 Detroit mutes each weekend from Chicago and plans to buy a house in Michi- Homecoming and made connections that resulted in two gan this summer with his wife and major investments in projects led by local developers: four children. DuCharme Place in Lafayette Park and another pivotal As he has gotten to know some of development in the downtown area. This may be just the AAA’s 8,200 employees in 11 states, beginning of Teresa’s a‰ection for her hometown and the Richardson said he has learned of the multiple generations of employ- impact she will have on its future. ees who have worked at AAA. “We DuCharme Place Detroit Homecoming has delivered more than have dedicated employees, many long-tenured with three generations $240 million in pending investments in the city of of family members,” he said. Detroit. Visit detroithomecoming.com to see Richardson is becoming in- the many activities of the past two years. volved in the community by serving Look for even greater results as Detroit on the boards of directors of Busi- Homecoming 2016 kicks o‰ Sept. 14-16. ness Leaders for Michigan, the Michi- gan Department of Insurance and Finan- cial Services’ president’s council and Henry Ford Health System. “There are many issues that I am just learning,” he said. “Our job is to work with regulators to develop a marketplace that is fully For sponsorship information, contact Matt Langan at competitive.” Ⅲ 313-446-6032 or [email protected] Jay Greene: (313) 446-0325 Twitter: @jaybgreene CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 19 Ann Arbor commutes to Detroit, see Midtown, downtown and QLINE “We hope the QLine is an or vice versa, gets a quick bite to their outlying areas run thin of FROM PAGE 1 economic development driver, eat or coffee before they hop on real estate opportunities,” No- the (QLine) to get downtown,” vack said. QLine, which is expected to send but that it also will be the Duong said. “For Detroit, that’s pie The QLine is one transit project property values soaring, including catalyst for regional transit.” in the sky, but that’s what’s hap- slated for Woodward and sparking pieces of the billionaire’s down- pened in Chicago, New York, San interest among developers. town real estate portfolio. Quicken Francisco, you name it.” The Regional Transit Authority for is paying $5 million over 10 years Matt Cullen, President and CEO, Rock Ventures Gibbs expects the rail will be ex- Southeast Michigan is poised to ask for the naming rights to the $140 tended north, perhaps as far as voters across Southeast Michigan million rail project and is the larg- ter will open at the north end of south and really take advantage of Royal Oak, in about 25 years. to approve a mass transit tax in est single corporate contributor at the Detroit streetcar route. The fa- a lot of the entertainment that is “Skeptics still think this will be November. The expected 1-mill $10 million. cility will store QLine vehicles and headed toward downtown,” Brown just like the People Mover, but once property tax increase reportedly “It’s brilliant for him to help streetcar technology systems, as said. “For our residents, the rail is this is operating and you can’t get a would fund a bus rapid transit sys- fund the line. It shores up his real well as house the rail operations a really cool opportunity.” seat and property values become tem, which is similar to a rail line. estate investments. He’s not doing team. The rail is scheduled to be com- hyper-inflated, there will be pres- The system features specialized it for charity,” said Robert Gibbs, Rail officials invested $10.6 mil- plete in the first quarter of 2017. sure to extend it,” Gibbs said. train-like vehicles that travel at managing principal of Birming- lion in the facility, including land The 3.3-mile fixed-rail streetcar The economic impact is stretch- higher speeds along dedicated ham-based Gibbs Planning Group acquisition and construction, line will run along Woodward in ing beyond the QLine’s current lanes. The wheeled vehicles likely Inc. “A lot of developers in cities which was headed by De- the median at its north and south boundaries as real estate investors would run along Woodward, Gra- nationwide built these transporta- troit-based Turner Construction Co. ends and have 20 stations at 12 and developers seek to capitalize tiot and Michigan avenues. tion lines really as a real estate de- That $1.3 billion figure cited by stops between Grand Boulevard on transit and other development The development spurred, at velopment tool.” Cullen includes $275 million and Congress Street. in Detroit. least in part, by mass transit possi- Gilbert always viewed the rail worth of residential construction Land near the Grand Boulevard Developer Dennis Kefallinos bilities does not surprise transit project as the first step toward es- in or near Midtown — projects like rail stations has lured developers bought a 39,000-square-foot shut- advocates like Marie Donigan, a tablishing a regional transit sys- The Scott at Brush Park. in recent months. tered religious bookstore and thrift former state representative from tem while generating economic The QLine was a “huge factor” “Our site is the best (transit-ori- shop in February. The property is Royal Oak who is transit projects development, said Matt Cullen, behind the $65 million develop- ented development) site in Detroit on the west side of Woodward, coordinator for the Detroit-based president and CEO of Rock Ven- ment, two blocks south of the fu- where you have the Amtrak cross- north of the Davison Freeway in nonprofit Harriet Tubman Center. tures. ture Martin Luther King Jr. rail sta- ing, (QLine) and also the bus rapid Highland Park. She cited American Public Gilbert never would have start- tions, said developer Clifford A. transit proposal in the next five Last year, the developer bought Transportation Association figures ed investing nearly $2.2 billion in Brown, managing partner of years,” said real estate developer another property a few blocks that home values are 42 percent acquiring, renovating and devel- Southfield-based Woodborn Part- Dang Duong. east, south of the freeway. higher if located near public trans- oping more than 85 properties in ners LLC. He is managing partner of 6402 Kefallinos bought the proper- portation that feature high-fre- downtown without transit, Cullen The project, slated for comple- Woodward LLC and is planning a ties because they were on the quency service. said. tion in December, will include 199 $14 million project involving sev- fringes of development, said Eric “Evidence is clear that property “Dan always said, ‘I’m only apartments and 15,000 square feet eral properties near the southeast Novack, senior project manager adjacent to transit is valuable,” she coming (downtown) if there’s tran- of retail at Woodward Avenue and corner of the intersection that for Kefallinos’ Detroit-based Boy- said. “It’s like gold.” Ⅲ sit,’” Cullen said. “We hope the Erskine Street. would add new apartments, retail dell Development Co. and owner of Robert Snell: (313) 446-1654 QLine is an economic develop- “We envision people shopping and office space along Woodward Blackbird Asset Management LLC. Twitter: @robertsnellnews ment driver, but that it also will be and you can jump on the rail and in the New Center area. “Detroit as a whole is opening Kirk Pinho also contributed to this the catalyst for regional transit.” head north into Midtown or head “Our vision is somebody from up for more development as we story. Rail projects nationwide have sent real estate values soaring. A recent study in Denver showed office rents and property values near light-rail stations were 300 to 400 percent higher. Land near QLine stations is drawing investors in Detroit. Real estate transaction data from Southfield-based CoStar Health Care Experience Group Inc. shows several properties along Woodward changing hands ® in recent months, particularly near three corners of the Wood- In Your Corner. ward and Grand Boulevard inter- section, the northernmost stop Ŷ Focused on health care law for systems, along the QLine. physicians and payors in all market segments. Since 2011, approximately $1.3 billion in new real estate develop- Ŷ Third party reimbursement, public and ments have broken ground, de- private health care provider  nancing, buted or been announced, Cullen said. About half of that figure, $627 and commercialization of physician million, is due to the new Red inventions and ideas. Wings arena. The $1.3 billion figure is in line with studies by the American Public Transportation Association, which shows that every $1 invested in public transportation generates about up to $8 in economic re- turns. The QLine has inspired eco- nomic activity along the Wood- ward corridor since the rail project was unveiled in 2011, Cullen said. “I know it did. No doubt,” Cul- len said. “Suddenly, people are buying and fixing up buildings.” The CoStar data does not in- clude sales prices for every prop- erty, so the total amount of sales is First Tier Ranking likely much higher than $1 billion. in Health Care Law One development directly tied to the QLine will debut next month. Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Contact Scott Alfree at [email protected] On May 3, the Penske Tech Cen- 20 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 “The cost and expense of the hasn’t analyzed the potential impact PIPELINES pipelines themselves might negate of low natural gas prices or new Where will all this gas go? FROM PAGE 1 the effect abundant supply has,” pipelines. But the mood in the in- said Eric Brooks, a gas industry ana- dustry is that they will translate into According to data provided to Crain’s from IHS Inc. and Platts, there their gas out of Appalachia and off lyst for market researcher Platts. some savings for customers, albeit are five major interstate natural gas pipelines that come into Michi- to new markets. Besides the cost of building not as much as they might think. gan, with a combined capacity of about 8 billion cubic feet per day. This coincides with a shift, driven pipelines and shipping gas on them, “We don’t get into the prediction The proposed Rover and Nexus pipelines would increase that ca- by the need for cleaner energy, in there is the cost of building or buy- business, but it is widely believed pacity by 35 percent. power generation that hasn’t hap- ing new plants to burn the gas. that gas will be abundant for the How will Michigan absorb all this? Some, of course, will go to utili- pened in decades — and arguably There will be large-scale invest- foreseeable future and that custom- ties. DTE Energy Co.’s electric and gas utilities already are signed up as since the utility industry ers will benefit from that,” Nexus customers. Consumers Energy is staying mum on whether it formed in Thomas Edison’s said Judy Palnau, spokesper- plans to sign up for either pipeline. If it does not, it still could end up time. Coal has been the domi- son for the commission. buying gas from one of the other pipes’ “shippers,” or customers, nant fuel nationally since then. many of which are natural gas producers. Now utilities favor natural gas ‘Clean and green’ Beyond that, it’s too early to tell just how much natural gas will be as a cleaner “bridge fuel” be- Along with cheapness, used in Michigan, but not all of it will end up here. tween coal and renewable en- natural gas comes with oth- DTE expects Nexus to pick up utility customers in Ohio along the ergy. Natural gas plants burn er features that should help way to Michigan. For Rover’s part, the pipeline will hook up with ex- fuel more efficiently and clean- push down utility bills as isting infrastructure in Defiance County, Ohio, that will allow gas to ly than those fired by coal. the big switch to natural gas be delivered to the Gulf Coast, dropping its capacity from 3.25 billion DTE’s Nexus pipeline, the gathers steam. cubic feet per day to 1.3 billion cubic feet per day by the time it hits biggest project of its most The dirtiness of burning Michigan. profitable business segment, coal comes from burning off Once in Michigan, each pipe would connect with an existing inter- Gas Storage & Pipelines, is on rock filled with pollutants, state pipeline called Vector (of which DTE owns 40 percent). Vector track to open in early 2017. It which not only is less effi- allows for transport to distribution hubs near Chicago and in Ontario is splitting the cost and own- cient than burning straight that connect to other long-range pipelines. ership 50-50 with Hous- gas but also necessitates ex- Because of these connections, it’s likely that most of the natural ton-based Spectra Energy Corp. pensive cleaning equipment gas shipped on these pipelines will end up outside Michigan. Ⅲ Nexus will have a carrying ca- to scrub the air emitted from pacity of 1.5 billion cubic feet smokestacks. Gas plants re- of natural gas per day. This is a fair ments in converting coal plants to quire less labor. A gas plant needs amount: DTE’s gas utility sends gas, building new plants or buying about 25 people, where a coal plant The nuts and bolts of pipeline funding out about half that, 0.8 billion cu- existing ones. DTE expects to spend needs hundreds, said Samuel An- The pipeline business is a good under its current deal with Nexus, bic feet, every day to customers. $8 billion on this by 2030, for exam- drus, a natural gas industry analyst one to be in if a company can swing according to the Michigan Public Rover’s planned opening date is ple, most of it beginning after 2020. at IHS Inc., a market research compa- it. Service Commission. DTE expects in mid-2017. The pipeline will have (Few specifics on plant retirements ny. Plans for new interstate pipelines this will be cheaper than paying a capacity of 3.25 billion cubic feet or replacements have been an- The distance between Appala- must be approved by the Federal En- other pipe operators for shipping. per day, more than twice that of nounced so far.) chia and Michigan is shorter than ergy Regulatory Commission, which It should be noted that utilities Nexus. Analysts say Rover is the big- These costs arrive in customer from where Michigan currently gets then regulates the pipeline’s ensu- are not allowed, under state regula- gest proposed pipeline to emerge bills in two places. One is the basic most of its piped gas: western Cana- ing activity. The trade-off is that tion, to profit from these fuel fees. from the Appalachian gas boom. electricity rate utilities use to recoup da, Texas, Oklahoma, the Gulf of pipeline owners get a guaranteed The fees must cover the cost to get Nexus will be a main supply line the costs of building plants and re- Mexico and Louisiana. That lowers rate of return. FERC — not the pipe- fuel and nothing more. for DTE’s future natural gas plants. lated infrastructure. This is where shipping costs. Once the gas arrives line owner — sets the fee, known as The Power Supply Cost Recov- DTE would like to have Consumers new investments in plants appear. in Michigan, the state’s abundant a tariff, that pipeline companies ery fee differs from the basic elec- Energy Co. as a Nexus customer, too, The other is a fee that pays for the natural gas storage capacity helps to charge customers, called shippers. tricity rate set by the commission. though Jackson-based Consumers buying and shipping of fuel to pow- keep price spikes in check. In doing so, FERC takes into ac- This is the one the public hears will not say whether it plans to be- er plants. Through a convoluted All this should result in lower count the “cost of service” that it about when utilities go before the come a customer of Nexus or Rover. process involving a mechanism bills for customers. But in addition took to get the pipeline built and commission to make their formal known as the FERC tariff, the pipe- to the investments in plants and sets a tariff that allows the compa- “rate case,” seeking permission to Infrastructure costs line construction costs eventually pipelines, upgrades to an aging ny to recoup those costs, plus charge rates that allow them to re- One might think such a flood of make their way into these fuel fees. grid are bringing up costs, and some extra as a return on invest- coup the costs of building and cheap natural gas, timed with the So while there won’t be a “rate utilities are increasing invest- ment. A typical return is in the maintaining power plants. This rise of gas-fired plants, would auto- hike” as defined in the regulations, ments in renewable energy. range of 10 percent. cost materializes on customer bills matically translate to dramatic sav- there nevertheless will be a cost in DTE plans to drop its reliance on Developers of the Rover pipeline under language such as “delivery ings for Michigan utility customers. customers’ total bills reflecting the coal from 55 percent of its ener- are seeking a 9.75 percent rate of re- charges” or “service charge.” Gas utility costs already are com- pipeline costs. gy-source mix to 25 percent by 2030. turn, while Nexus developers are The funding for Nexus, and any ing down, thanks to cheap prices. Whether that cost will be higher Consumers in the past 10 years has asking for 10.7 percent, according to other pipeline, comes from cus- Consumers Energy last month an- or lower than it would be otherwise dropped its coal use from 41 per- a review of FERC applications per- tomers that sign up for shipping nounced its lowest fees for gas cus- is anyone’s guess. DTE predicts cent to 24 percent. Both companies formed by Eric Brooks, analyst at capacity before it’s built, on con- tomers in 18 years. Low natural gas $100 million in electricity fuel costs will rely on renewables to buttress industry research outfit Platts. tracts of 15 to 20 years. In the case prices will influence electricity bills will be shaved off customers’ bills their natural gas baseload fuel. FERC will take action later if it of Nexus, those customers are nat- as energy increasingly is sourced from 2017 through 2032. It further These investments, too, will end thinks rates have gotten out of ural gas producers plus DTE’s own from this fuel. So should Michigan estimates general natural gas price up in customer bills. But these whack, but these rates might get utilities, DTE Gas Co. and DTE Electric utility customers expect to be bask- savings of $2 billion in that period bills would be much higher if it pretty high before it gets nosy. A cur- Co. DTE Electric and DTE Gas to- ing in cheap energy sometime in the statewide (taking into account other weren’t for a lucky turn of history rent FERC investigation was trig- gether have signed up for 10 per- next 15 years? uses such as regular gas utility ser- that has led to cheap gas arriving gered when it suspected a pipeline cent of the pipe’s capacity, the Probably not. Industry insiders vice), thanks to Nexus. at a time of investment in cleaner company, Tuscarora Gas Transmission company said. Union Gas Ltd., a are loath to predict the long-term “It’s the cheapest route to the energy, Andrus said. Co. of Houston, was getting rates of Chatham, Ontario-based utility, is direction of utility bill costs, given cheapest gas,” said Don Stanczak, “We’re basically financing going 23.6 percent and 24.9 percent. another signed customer, and the complex web of economic DTE vice president of regulatory af- clean and green with the cheap “Some say the pipeline business DTE hopes to sign up a string of pressures, regulations and parties fairs. gas,” he said. Ⅲ is the least risky,” said Samuel An- utilities in northern Ohio whose involved. But they say a sharp The Michigan Public Service Com- Gary Anglebrandt: (313) 446-1612 drus, industry analyst at IHS Inc., terrain Nexus passes through. drop is unlikely. mission, which regulates utility rates, Twitter: @Anglebrandt another research organization. The outcome of all this is that These costs make their way into while DTE Electric customers utility customers’ bills, by way of won’t be asked to directly fund the the cost to buy and ship fuel for pipeline through the basic rates in power plants. In Michigan, this is their bills, they will be paying for known as the Power Supply Cost some portion of it through power Recovery fee. If that fuel happens supply fees. to be natural gas that came into Fortunately for them, these the state by way of pipeline, then costs will be diluted by Nexus’ oth- this cost includes the rate the utili- er customers, who also will be ty paid for shipping — the FERC paying that FERC tariff with its tariff. baked-in construction costs. Ef- As a Nexus customer, DTE Elec- fectively, the building of Nexus will tric will pay this rate, and ultimate- be funded by companies outside ly so will its customers. DTE Elec- Michigan. tric will pay $7.6 million a year Gary Anglebrandt CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 21 very special, very powerful.” Cooper, managing principal of As such, demolition of some ex- FORD And with $1 billion or more be- Southfield-based architecture and isting buildings on the R&E cam- FROM PAGE 3 hind the plan, that’s what Ford planning firm Harley Ellis Dever- pus is part of the plan, as is the wants for the final product: special eaux Corp., which is not involved construction of new buildings and www.crainsdetroit.com principal of SmithGroup who pre- and powerful. in the project. “The demand for parking decks where surface park- Editor-in-Chief Keith E. Crain viously was president and CEO of Mark Fields, president and CEO these individuals is off the charts, ing lots now exist. Group Publisher Mary Kramer, (313) 446-0399 the company. That helped the of Ford, said last week that the globally.” The Research and Engineering or [email protected] overall plan because it provided plan would “make our employees’ He believes the plan is successful Center is expected to become the Editor Jennette Smith, (313) 446-1622 or [email protected] more diversity of opinion and al- lives better, speed decision-mak- in a number of areas, including home of 24,000 employees with its Director, Digital Strategy, Audience Development lowed SmithGroup to factor those ing and deliver results for both our flexibility to changes in industry renovation of 4.5 million square Nancy Hanus, (313) 446-1621 or [email protected] viewpoints into the final plan. core and emerging businesses.” and customers; environmental sus- feet of space. There are now about Managing Editor Michael Lee, (313) 446-1630 or [email protected] But boiling down all that feed- That will be done through things tainability; the ability to attract and 12,000 at the site, which was devel- Managing Editor/Custom and Special Projects back into something useful also like energy efficiency, collabora- retain talent; allowing for collabora- oped as a five-building campus in Daniel Duggan, (313) 446-0414 or [email protected] posed one of the biggest challeng- tive workspaces, upgraded tech- tive and consolidated workspaces; the early 1950s. More buildings Assistant Managing Editor Kristin Bull, (313) 446-1608 or [email protected] es, said Roehling, who led the core nology and other improvements. image projection and others. were added over the years to meet News Editor Beth Reeber Valone, (313) 446-5875 team of about a dozen Smith- In part, all of that is in service to “I like the vision,” he said. “Ford increasing demand. or [email protected] Group employees on the project. the greater goal: bringing the is a forward-thinking organiza- About 1.3 million square feet of Senior Editor Gary Piatek, (313) 446-0357 or [email protected] At times, as many as 30 or 35 were brightest minds in research, engi- tion. They understand a couple the Ford World Headquarters Research and Data Editor Sonya Hill, (313) 446-0402 working on it, he said. neering and development to Dear- things that are important. They building, which President Dwight or [email protected] “To try and get a sense of, and born — and keeping them there. understand that facilities can D. Eisenhower dedicated in 1953, Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766 capture, and get an alignment of Rather than having them in Silicon drive business practices, culture will be “reworked” beginning in REPORTERS and understand so many diverse Valley developing the newest way and behavior. And that these facil- 2021, the news release said. Jay Greene, senior reporter Covers health care, points of view, you have to synthe- to react to a Facebook post, Ford ities are not just there for facilities’ Work at the Research and Engi- insurance, energy, utilities and the environment. size many different perspectives wants and needs that talent here, sake. They support business ob- neering Center is expected to be (313) 446-0325 or [email protected] Chad Halcom Covers litigation, the defense industry before you give an answer,” he making cutting-edge advances in jectives. They understand the im- completed by 2023; major work and education. (313) 446-6796 or [email protected] said. “We wanted to be sure that autonomous vehicle and onboard portance of knowing what you around the headquarters is ex- Tom Henderson Covers banking, ™nance, technology we included everybody. You have systems technology. have and having the right things, pected to begin in 2021 and be and biotechnology. (313) 446-0337 or to synthesize that into something Ⅲ [email protected] “This is a war,” said Michael taking inventory.” complete in 2026. Kirk Pinho Covers real estate, Oakland and Macomb counties. (313) 446-0412 or [email protected] Bill Shea, enterprise editor Covers media, advertising and marketing, the business of sports, and bor-based Delphinus Medical Tech- lion’s share of first-quarter invest- that venture capital is now a large transportation. (313) 446-1626 or [email protected] VC nologies Inc., whose devices use ul- ment, with $5.1 billion going into part of Michigan’s economic re- Robert Snell, reporter Covers city of Detroit and FROM PAGE 1 trasound to detect breast cancer; 376 deals. A total of $2.3 billion bound and a major part of the regional politics. (313) 446-1654 or [email protected] Lindsay VanHulle, Lansing reporter. (517) 657-2204 $10.5 million in an undisclosed went into 177 biotechnology and state’s economic fabric,” said or [email protected] Chris Rizik, CEO and fund manag- company in Houghton; and medical device deals. Maureen Miller Brosnan, the MV- Dustin Walsh, senior reporter Covers the business of er for the Ann Arbor-based Renais- $9.1 million in Kalamazoo-based CA’s executive director. law, auto suppliers, manufacturing and steel. (313) 446-6042 or [email protected] , an affili- , which A deep dive into Other highlights of the report: sance Venture Capital Fund Armune BioScience Inc. Michigan VC Sherri Welch, senior reporter Covers nonpro™ts, ate of Business Leaders for Michigan makes protein-based nonsurgical • Every dollar invested in a services, retail and hospitality. (313) 446-1694 or that invests in local and national tests to detect disease. The Ann Arbor-based Michigan Michigan startup by a state VC [email protected] venture capital firms willing to In January, Millendo, formerly Venture Capital Association will firm attracts $4.31 in investments ADVERTISING look at deals in Michigan. known as , announced formally unveil its annual report Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Atterocor Inc. from out-of-state firms. “We’re be- Advertising Director Matthew Langan Last year, a total of $328.2 million it had closed on a VC round of Tuesday at an event at the Madison ginning to be recognized as an es- Senior Account Manager Katie Sullivan was invested in state companies, $62 million, the largest single Building in downtown Detroit. The tablished force,” Brosnan said. Advertising Sales Gerry Golinske, Catherine Grace, up from $223.9 million the year be- round ever raised by a state com- report will show that while the • There are 128 startups in the Joe Miller, Diane Owen, Sarah Stachowicz, ClassiŠed Sales Manager Angela Schutte, fore and the second-best year since pany. Venture capital rounds are number of VC firms nationally and state that have received funding (313) 446-6051 the Washington, D.C.-based NVCA invested in chunks over time as their money under management from one of the nine angel inves- ClassiŠed Sales Lynn Calcaterra, (313) 446-6086 started keeping records in 1995. companies hit development mile- has continued to shrink in recent tor groups in the state, a 42 per- Events Manager Kacey Anderson Creative Services Director Pierrette Templeton Only the dot-com boom year of stones. The $27 million recognized years, metrics in Michigan for the cent increase in five years. Senior Art Director Sylvia Kolaski 2000 was better, with a total invest- by the NVCA was the first of those number of firms headquartered • Those nine angel groups have Marketing Coordinator Ariel Black ment of $356.4 million. payments. here, their total capital under a total of 294 investors, a 59 per- Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik “The work that has been done At it does every quarter, Califor- management and their total in- cent increase in five years. They Production Manager Wendy Kobylarz over the last decade is bearing nia ranked No. 1 among the states vestments in Michigan all in- invested $16 million in state com- Production Supervisor Andrew Spanos fruit,” Rizik said. “What has been by a wide margin, with $5.74 billion creased last year. panies last year. “Angel investing is CUSTOMER SERVICE Main Number: Call (877) 824-9374 encouraging in the last year has invested in 364 deals. Rounding out While the number of national nothing but a good news story,” or [email protected] been the number of really sizable the top five were Massachusetts, VC firms fell from 1,022 in 2006 to said Brosnan. Subscriptions $59 one year, $98 two years. Out of deals. We used to have maybe one $1.51 billion in 109 deals; New York, 798 last year, and their money un- • Last year, 42 percent of state state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. big deal a year. In the last year, $1.39 billion in 129 deals; Florida, der management fell from VC investment was in health care Call (313) 446-0450 or (877) 824-9374. we’ve had four or five. And we’ve $855 million in 16 deals; and Texas, $288.9 billion to $165.3 billion, the and life sciences, with 38 percent Single Copies (877) 824-9374 had investors coming into the $592 million in 48 deals. number of state firms rose from 15 in information technology, 8 per- Reprints (212) 210-0750; or Krista Bora at [email protected] state who never invested here.” Nationally, $12.1 billion was in- to 25, and their money under cent in advanced materials, 4 per- To Šnd a date a story was published (313) 446-0406 The largest investments in state vested in 969 deals, compared to management grew from $860 mil- cent in business services, 3 per- or e-mail [email protected] companies in the first quarter $12 billion invested in 1,021 deals lion to $2.2 billion. State firms said cent in consumer products, 1 Crain’s Detroit Business is published by were the $27 million invested in in the fourth quarter. It was the they are planning to raise percent in media and 4 percent in Crain Communications Inc. Chairman Keith E. Crain Ann Arbor-based Millendo Thera- ninth straight quarter with at least $599 million for new funds, com- other fields. President Rance Crain peutics Inc., a drug development $10 billion in investments. pared with the $389 million they Not all was rosy, however. Treasurer Mary Kay Crain company; $10.7 million in Ann Ar- The software industry got the raised last year. State VC firms estimate their Executive Vice President/Operations William A. Morrow There are now 128 venture pro- portfolio companies will need a Executive Vice President/Director of Strategic fessionals living and investing in total of $661 million in follow-on Operations Chris Crain Michigan, an increase of 94 per- investments over the next two Executive Vice President/Director of Corporate INDEX TO COMPANIES Operations KC Crain These companies have signicant mention in this week’s Crain’s Detroit Business: cent in five years. years, but have only $387 million Vice President/Production & Manufacturing And 141 companies in Michigan available for such investments. Dave Kamis 6402 Woodward LLC ...... 19 Michigan Association of Health Plans ...... 10 have received venture capital fund- State VC firms have deployed Chief Financial O”cer Thomas Stevens Chief Information O”cer Anthony DiPonio AAA of Michigan ...... 3 Michigan Public Service Commission ...... 20 ing, an all-time high and a 48 per- 71 percent of their capital under G.D. Crain Jr. Founder (1885-1973) Achatz Handmade Pie...... 8 Michigan Venture Capital Association ...... 1 cent increase in five years. Thir- management, with only 20 per- Mrs. G.D. Crain Jr. Chairman (1911-1996) Auto Club Group ...... 3 Molina Healthcare of Michigan ...... 12 ty-two startups got their first VC cent available for new invest- Editorial & Business O”ces 1155 Gratiot Ave., Detroit MI 48207-2732; Boydell Development ...... Oakland Art Novelty ...... 19 14 funding last year. A total of 74 com- ments. (313) 446-6000 Consumers Energy...... 20 Priority Health Choice ...... 12 panies got more than And diversity, or the lack there- Cable address: TWX 248-221-5122 AUTNEW DET Delphi Automotive plc ...... 18 QLine ...... 1 $282 million from state VC firms last of, continues to be an issue, as it CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the third Denso Manufacturing Michigan ...... 12 Quicken Loans ...... 3 year, also an increase of 48 percent. does nationally. week of November, and no issue the third week of Detroit Medical Center ...... 17 SmithGroupJJR ...... 3 Over the past 10 years, the Of the $282 million invested in 74 December by Crain Communications Inc. at 1155 DTE Energy ...... 1, 20 Sugar House ...... 14 amount of venture capital invest- state companies last year, just $6.8 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing Ford Motor ...... 3 Travel Michigan ...... 4 ed in the state's startup firms in- million was invested in 13 compa- o¦ces. POSTMASTER: Send address changes to Hall Financial LLC ...... 3 United Shore Financial Services ...... 3 creased by 150 percent, compared nies run by women, people of color CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # Harbor Health Plan ...... 12 UnitedHealthcare of Michigan ...... 12 with growth of 144 percent in the or the LGBT community. Only 12 of 136760444. Printed in U.S.A. Mabel Gray ...... 14 ViSalus ...... 7 Great Lakes region and 112 per- the 141 venture-backed compa- Entire contents copyright 2015 by Crain Meridian Health Plan of Michigan ...... 12 WDTW 1310 AM ...... 13 cent nationally. nies, 9 percent, had a minority CEO. Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without Michigan Angel Fund ...... Woodborn Partners ...... 5 19 “All the key indicators continue Fourteen of the companies, 10 per- permission is strictly prohibited. to increase here. The report shows cent, had a woman CEO. Ⅲ 22 CRAIN’S DETROIT BUSINESS // APRIL 18, 2016 ON THE WEB RUMBLINGS WEEK APRIL 9-15 TasteoftheLions.Detroit Digits Michigan hotel, formerly known as Slow Roll will bring bike ride Ex-Tigers the Hyatt Regency Dearborn, the A numbers-focused look at last new ownership has laid off top week’s headlines: managers and much of the manager hotel’s sales team, sources told to Mackinac conference Crain’s. t was bound to happen sooner Leyland to head Ⅲ Southfield-based Beaumont or later: Slow Roll Detroit is $20 million Health is making final plans to going up north this summer. The redevelopment cost of the demolish the Northwood Shopping IThe Mackinac Slow Roll will project in Pontiac. Strand Theatre Center in Royal Oak by year’s end, take attendees at the 36th U.S. team The project will include a im Leyland will manage the Slows Bar system officials said. Mackinac Policy Conference on a U.S. team at the 2017 World BQ and the renovation of the old Ⅲ March revenue for the three bike ride through scenic theater, which will host lms, comedy Baseball Classic, USA Detroit casinos rose 7 percent Mackinac Island June 1. This is a shows, concerts and other events J Baseball announced Friday. from February and 0.8 percent new offering for those at the upon completion. The former Detroit Tigers manager, compared to the same month last conference May 31-June 3. 71, will be making his year, but aggregate revenue from Jason Hall, who founded Slow international coaching debut in the Greektown Casino-Hotel, MGM Roll Detroit with Mike MacKool in the fourth edition of the Grand Detroit and MotorCity Casino 2010, will lead the ride. Slow Roll tournament. Leyland, who $22 million Hotel was up just 0.3 percent, Detroit, described as the state’s, if DEREK WEAVER managed for 22 seasons in the The cost to redevelop the 12-story according to the Michigan Gaming not the world’s, largest, weekly bike The increasingly popular weekly Slow major leagues, stepped down as “Hammer and Nail” building. Control Board. ride, drew up to 4,500 riders each Roll Detroit will be replicated on Tigers manager after the 2013 Detroit-based The Roxbury Group week in its 2014 and 2015 seasons. Mackinac Island this spring. season and now works as special will turn Midtown’s tallest building OTHER NEWS The Monday evening event has assistant to the team. into 72 apartments and 2,000 square Ⅲ A 114-year-old apartment been replicated by several other Associates in Huntington Woods feet of retail space. building in the East Riverfront U.S. cities. Rides start in different and a spokesman for the station. COMPANY NEWS district has hit the market for Detroit neighborhoods and routes Adell will have the stagecoach Ⅲ Detroit-based SPLT, which $11.9 million. The Pasadena vary each time. The rides range shipped to the island and also has runs app-based ride-sharing Apartments, at 2170 E. Jefferson from nine to 14 miles and take purchased a portable uplink dish programs for companies, won the 120 Ave., stands 11 stories with 170 about two hours. to enable the broadcast signal, $100,000 Pritzker Foundation Award The number of jobs DTE Energy Co. units and is being listed for sale by “The Grand Hotel has been Meisner said. at the sixth annual Clean Energy has created for Detroiters at its Jim Tumey, senior commercial working with Jason to pick the Adell bought WFDF for $3 Trust Challenge in Chicago. It was downtown call center. DTE will rely on agent for Detroit-based The Lo’ Mackinac route,” said Jim Martinez, million in 2014 from The Walt previously announced that SPLT Strategic Sta˜ng Solutions to Warehouse. spokesperson for the Detroit Disney Co.’s Burbank, Calif.-based was chosen to make a pitch to recruit, hire and manage the Ⅲ Virgil Smith’s former state Regional Chamber, which hosts the Disney Radio Group LLC. venture capitalists at the annual employees. Senate seat will be filled during annual conference. “The chamber Station hosts expected to Google Demo Day on May 4 in the November election. Smith, a approached Jason about Slow broadcast from the island include Mountain Valley, Calif. Ⅲ The New York City-based Ford Detroit Democrat, last month Roll. It fits so well with the event’s political consultant Steve Hood; Ⅲ Mediation between Van Foundation, the Miami-based John agreed to resign after beginning entrepreneurial theme. former Detroit Police Chief Ralph Conway and Conway MacKenzie Inc. S. and James L. Knight Foundation a 10-month jail sentence “We thought it was a great Godbee Jr.; Karen Dumas, broke down as the parties and the Detroit-based Community stemming from a 2015 shooting opportunity to shine the light on communications and external prepared to battle in court. Foundation for Southeast Michigan incident involving his ex-wife. something that resonates here (in affairs chief for former Detroit Conway, former chairman and are committing a combined Gov. Rick Snyder said that a Detroit) and around the country,” Mayor Dave Bing; Cli™ Russell, a CEO of the Birmingham $350,000 to a Wayne State primary election for Smith’s he said regarding Slow Roll. broadcast reporter and press turnaround and advisory firm, University scholarship for students former 4th District seat will be The conference focus this year secretary to former Detroit Mayor filed a lawsuit against the firm in with a community service focus, held Aug. 2; a Nov. 8 general is on entrepreneurship, urban Dennis Archer; and Bankole Oakland County Circuit Court in in honor of Chief U.S. District election will determine who will education and investing in the Thompson, former Michigan February, alleging the board of Judge Gerald Rosen. Rosen, who finish the remaining two years of future to further grow high-profile Chronicle editor. directors violated contractual also teaches at the WSU Law Smith’s term. business sectors. agreements by removing Conway School, was chief mediator during Ⅲ The Royal Oak-based Detroit Martinez said, so far, the hotel 4 Dykema partners leave as chairman and CEO while he the Detroit Chapter 9 federal Zoo will open its 33,000-square- has offered 80 bikes for the ride. was on medical leave. bankruptcy. foot, $30 million Polk Penguin The conference draws roughly to start own ­rm Ⅲ Advance Plumbing & Heating Ⅲ Oakland University will move Conservation Center to the public 1,500 attendees, and he has Four partners at Dykema Supply Co. and collaborative music forward on $122 million of new on April 18. The zoo previewed already heard from several people Gossett PLLC have left to start their studio Assemble Sound got the construction to wrap on its the facility to the media last week. who want to participate. own business and employment lion’s share of the third round of Rochester Hills campus by fall Ⅲ The former site of Tiger The Mackinac Slow Roll will be firm. grant funding — $100,000 each 2018, including a new residence Stadium in Detroit is being sponsored by St. Joseph Mercy Hickey Hauck Bisho™ & Je™ers — from Detroit’s Motor City hall to house 750 students, as dedicated in the name of former Health System. PLLC will formally open on Match program. Funding for nine newly approved by its trustees. Tiger and hometown sports hero Monday in Detroit. The firm’s small businesses ranged from Ⅲ Federal-Mogul Holdings Corp., Willie Horton, AP reported. The site Station plans stagecoach offices occupy 5,000-square feet $18,000 to $100,000 and included the Southfield-based auto parts is to be redeveloped into a youth in at One Woodward Avenue. restaurants, retail and supplier controlled by billionaire sports facility and new Detroit as radio broadcast site Patrick Hickey, former head of professional service companies. Carl Icahn, is looking to expand its Police Athletic League One Detroit-area radio station Dykema’s labor and employment Ⅲ Financial services company manufacturing facilities in eastern headquarters. plans to broadcast from a unique practice, is joind by Mark Hauck, Ally Financial is opening 13 floors Europe and China to tap growth Ⅲ Detroit Public Schools officials spot during the Detroit Regional Thomas Bisho™ and Benjamin of new offices in downtown opportunities, co-CEO Daniel said elevated lead or copper levels Chamber’s upcoming Mackinac Je™ers. Detroit’s Ally Detroit Center that will Ninivaggi said in a Bloomberg have been found in 19 schools Policy Conference — inside a “We saw an opportunity to be occupied by more than 1,500 interview. amid ongoing testing, AP stagecoach. work together in a different employees and contractors, AP Ⅲ More than 400 employees of reported. WFDF AM 910, a talk radio station environment,” Hickey said. “After reported. About 350 Ally Rock Connections LLC, a Dan Ⅲ Researchers at Wayne State owned by local broadcasting 32 years at Dykema, I’m entering employees are moving into the Gilbert-owned, Detroit-based University have received a $2.5 entrepreneur Kevin Adell, will the second half of my career and building this month; most of the strategic marketing company million grant from the National broadcast in and around the Grand together we have a like motivation rest will be there by November. specializing in contact center Institute of Allergy and Infectious Hotel on Mackinac Island during and like energy to pursue Ⅲ The Detroit Lions will again services, will occupy the majority Diseases of the National Institutes of the annual policy conference in something exciting.” showcase area cuisine May 18 of the largely vacant, Health to help study antibiotics for early June — including in an The firm plans to hire an during their annual “Taste of the 108,000-square-foot 1900 Saint the treatment of multidrug- antique Wells Fargo & Co. mail additional associate this week with Lions” event, which benefits Antoine building across the street resistant diseases, AP reported. stagecoach that Adell owns, a potential to expand to nine Eastern Market and its community from the unfinished Wayne spokesman said. attorneys, Hickey said. The firm will outreach programming. General County Consolidated Jail site by OBITUARIES This is the first year the station focus on employment counsel and admission tickets for the strolling late spring or early summer, the Ⅲ Paul Carey, the Detroit Tigers’ will broadcast from the Mackinac litigation, such as contract disputes, food and wine event at Ford Field company said. play-by-play broadcaster on WJR conference, said Mort Meisner, employment discrimination, went on sale last week at Ⅲ Three months after 760 AM for 19 seasons, died April owner of TV and radio talent non-compete clauses, recall and DetroitLions.com. purchasing the Edward Village 12. He was 88. Ⅲ placement service Mort Meisner litigation, Hickey said. Ⅲ DBpageAD_DBpageAD.qxd 4/11/2016 10:58 AM Page 1

Grow Detroit’s Young Talent IT’S NOT A is a 6-week summer youth employment program that has been re-tooled to ensure pre-screening and on-the- SUMMER JOB. job support for teens and employers.

Mayor Mike Duggan invites you to help Detroiters, ages 14-24, get ready for the workforce through a summer immersion. He has committed to offering 8,000 summer jobs for Detroit youth. IT’S A FIRST JOB.

0DNHDQLPSDFWYLVLW*'<7RUJWRGD\ Grow Detroit’s Young Talent is a City of Detroit-endorsed program operated by the nonprofit organization Detroit Employment Solutions Corporation. For questions, contact [email protected] DBpageAD_DBpageAD.qxd 4/13/2016 12:01 PM Page 1

Running a business isn’t simple. But choosing a wireless plan is.

Introducing the Verizon Plan for Business. One plan. Five sizes. Simply pick the right one for your business and switch it up anytime you like. Share your data across up to 25 devices, all with unlimited talk and text. And you can even pay for your devices up front or monthly. Getting on the best network has never been easier. Better matters.

Activation/upgrade fee/line: Up to $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee/line. Offers & coverage, varying by svc, not available everywhere; see vzw.com. Restocking fee may apply. © 2016 Verizon. 1.800.VZW.4BIZ | vzw.com/businesspricing