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Readers first for 30 Years Zoo’s CRAIN’S formula for DETROIT BUSINESS April 20-26,2015 producing New rules for Detroit City FC Tech firm its power: nonprofits: kicks it up, helps Ford E = e-a-t Lots of them aims to go pro build a bike PAGE 3 PAGE 3 PAGE 3 Page 4 ISTOCK PHOTO ISTOCK

Investors plan to revive the Brewster Wheeler site On the beam for with retail and housing, but developers also see potential not far away cancer treatment McLaren, Beaumont to open proton centers

By Jay Greene Why proton beams? [email protected] Seven years after fierce battles over Proton beam therapy is a type the need for multiple proton beam of radiation treatment that cancer centers, McLaren Health Care uses protons rather than X- Corp. this spring expects to open the rays to treat cancer. A proton first proton beam therapy center in is a positively charged particle Michigan, next to its 458-bed Mc- that is part of an atom. At Laren Regional Medical Center in Flint. high energy, protons can McLaren officials told Crain’s destroy cancer cells. they hope to conduct their first In 1990, hospitals in the U.S. treatment on a prostate cancer pa- began using proton beams to tient in one of the three rooms that treat patients. But the method are part of the $50 million McLaren is controversial because of a Proton Therapy Center. lack of definitive clinical trials. But Troy-based Beaumont Health, Unlike traditional radiation which first proposed a $159 million treatment, which can damage proton beam center in 2008, isn’t far surrounding tissue, proton [LARRY PEPLIN PHOTOS] behind. Beaumont plans to open a therapy can target tumors The now-cleared site of the Brewster-Douglass housing projects (top) lies just beyond the basketball courts of the Brewster $40 million, single-room proton more precisely with lower Wheeler Recreation Center (above left). Old buildings meet new near where Alfred and Brush streets intersect (above right). beam center in Royal Oak in spring radiation doses to 2017. surrounding healthy tissue. Proton beam therapy is a contro- versial form of megavoltage radiation Proton therapy is seen as that some have suggested is effective having some benefit to treat in some prostate and pediatric can- tumors surrounded by A prettier picture cers because it causes less damage to sensitive structures — such as surrounding tissue while directing the eye, brain and spinal cord high dosages at tumors. — where the potential for It also has been used to treat lung radiation damage is high. Source: American Cancer Society See PROTON, Page 21 for Brush Park? Special Report By Kirk Pinho The Karmanos Cancer [email protected] Institute and other health reater downtown could be looking at care organizations in the a reawakening of one of its most region are strengthening historic — yet languishing — their oncology networks, Genclaves now that redevelopment Page 11 plans have been announced and the city [UNION JOINTS LLC] negotiates with and seeks developers for more A rendering of the Brewster Wheeler mixed-use project. than 30 acres of land in and around Brush Park. © Entire contents copyright 2015 residential units with first-floor retail. by Crain Communications Inc. All rights reserved. But the big unanswered question is: What will But beyond that project, between three crainsdetroit.com Vol. 31 No 16 $2 a copy. $59 a year. happen with the areas immediately to the south separate requests for proposals, the city has and west of the Brewster Wheeler Recreation put up 32.6 acres of land for development Center site at I-75 south of Wilkins Street? nestled between the Midtown and Eastern Last week, the city announced that two Market District areas and east of the Ilitch redevelopment teams will turn their efforts to family’s developments surrounding a new the recreation center’s history and to its future arena for the Detroit Red Wings. with a $50 million project with restaurant and NEWSPAPER meeting space and approximately 150 See BRUSH PARK, Page 19 20150420-NEWS--0002-NAT-CCI-CD_-- 4/17/2015 3:07 PM Page 1

2 CRAIN’S DETROIT BUSINESS // April 20, 2015

doesn’t plan to shift from its tradi- to pick up additional passengers. MICHIGAN tional big-box format in favor of Ⅲ Pennock Hospital in Hastings INSIDE smaller stores in urban areas, MiBiz will become the 12th hospital in the THIS ISSUE reported. “We talk about that, but Spectrum Health system, MLive.com BANKRUPTCIES ...... 21 BUSINESS DIARY ...... 15 we’re not there yet,” Erik Petrovskis, reported. Pennock’s new name will CALENDAR ...... 16 Spectrum Health Pennock the retailer’s director of environ- be . Grand CLASSIFIED ADS ...... 17 mental compliance and sustain- Rapids-based Spectrum will make a KEITH CRAIN ...... 8 ability, said last month at a Michi- $46 million capital commitment over MARY KRAMER ...... 8 BRIEFS gan’s Great Southwest Sustainable the next 10 years and continue essen- OPINION ...... 8 Business Forum event in St. Joseph. tial services at Pennock for at least 10 OTHER VOICES ...... 9 Current designs for Meijer super- years. Still to be determined is the fate PEOPLE ...... 15 Battery maker LG Chem to RadioShack adds Sprint name stores call for about 190,000 square of a $70 million hospital planned by RUMBLINGS ...... 22 double workforce in Holland as 31 stores reopen in Mich. feet of space. In recent years, the Pennock. WEEK ON THE WEB ...... 22 company has experimented with Ⅲ Kalamazoo College President Holland-based LG Chem Michigan RadioShack, which announced in smaller formats, including a 102,000- Eileen Wilson-Oyelaran will retire in Inc. scheduled a job fair for Tuesday February plans to close 1,784 under- square-foot store that opened in June 2016, according to the college’s COMPANY INDEX: as the maker of electric vehicle bat- performing U.S. stores, including 25 2010 in suburban Chicago. website. Wilson-Oyelaran has head- SEE PAGE 21 teries for the auto industry plans to in Southeast Michigan, has re- ed the school since July 2005. double its workforce in 2015, MiBiz opened many of them as co-brand- MICH-CELLANEOUS Ⅲ IBM Corp. plans to add 100 jobs reported. In a statement, the com- ed Sprint-RadioShack stores. Sprint Ⅲ Brian Klawiter, owner of the at its East Lansing operations by ald R. Ford International Airport set an pany said it planned to employ sev- plans to hire about 70 people for 31 DieselTec auto shop in Grandville, next year and spend $200,000 on all-time monthly record, MLive.com eral hundred people by the end of reopened Michigan stores, which wrote on his company’s Facebook new equipment, the Lansing State reported. Officials said 231,138 pas- 2015. will be outfitted with the “store with- page that “homosexuality is wrong” Journal reported. sengers traveled to and from the When LG Chem broke ground in in a store” concept over the next few and that he won’t welcome “im- Ⅲ March passenger traffic at Ger- Grand Rapids airport last month. 2010, the company said it would cre- months, according to a news release. moral behavior” at his business. The ate more than 400 jobs in Holland. On April 2, General Wireless Inc., Grand Rapids Press reported that Corrections Although the company had planned an affiliate of Standard General LP, Klawiter later posted that his family to begin production in 2012, sluggish announced it had received U.S. received death threats as well as Ⅲ A story about Detroit Tigers merchandise on Page 1 of the April 13 demand for plug-in electric and hy- Bankruptcy Court approval to ac- comments that suggested people issue should have said Matt Powell is a sports industry analyst for Port brid vehicles delayed operations quire the inventory and assume saw his post and, as a result, read it. Washington, N.Y.-based NPD Group. A previous professional affiliation until the second half of 2013. leases of the RadioShack stores. Followed, naturally, by reacting. was used. In 2013, the plant began produc- Sprint will be the primary brand, oc- Ⅲ North Country Sky airline will Ⅲ A story about Arborland Mall on Page 6 in the April 13 issue should ing batteries for the Chevrolet Volt, a cupying about one-third of the retail offer flights this summer between have said the mall was sold for 20 times net sales in 2005. An incorrect battery-powered hybrid being re- space at existing locations, the re- Chicago and Pellston Regional Air- figure was used. designed for the 2016 production lease said. port in northern Michigan, the Tra- Ⅲ In the April 13 story “GOP balks at funding Healthy Michigan plan,” year. Other automaker clients are verse City Record-Eagle reported. The Sen. Jim Marleau, R-Orion Township, was incorrectly identified as chair- Ford Motor Co., Renault SA, the Meijer: No plan for urban push round-trip flights will range from man of the Senate Health Policy Committee. Sen. Mike Shirkey, R-Clark- Hyundai/Kia group, Volvo Car Corp., by thinking outside big box $350 to $405 a person and run from lake, was recently appointed chairman. Marleau, who continues to sit Audi AG and Daimler AG. June 24 to Aug. 19 on Thursdays, Fri- on the Health Policy Committee, is now chairman of the Senate Com- In its news release, LG Chem did Although many of its rivals are days, Sundays and Mondays. Each munity Health subcommittee. not identify its new customer. doing so, Walker-based Meijer Inc. two-hour flight will stop in Manistee 20150420-NEWS--0003-NAT-CCI-CD_-- 4/17/2015 5:03 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 3 Nonprofits given something to study

One of many law changes: Liability protection expands to paid directors Rob Collier: “To get Though the new provision more talented people to broadly indemnifies all nonprofit By Sherri Welch New for nonprofits: A close look actions or those made to intention- serve on your directors and volunteer officers, it’s [email protected] at the changes to the Nonprofit ally hurt an organization. (nonprofit) board, still advisable for nonprofits to A trio of new laws amending the Corporation Act, Page 17. Without question, nonprofit di- they need to know carry directors and officers liability state’s Nonprofit Corporation Act rector and volunteer officer indem- there’s some insurance, said Duane Tarnacki, has nonprofits and their lawyers One of the most commented nification has been expanded protection.” member in the Detroit office of wading through a raft of provisions upon changes is a provision that ex- under the amended law, said Rob Clark Hill PLC. Tarnacki served on a to figure out their effect. pands nonprofit directors’ indem- Collier, president of the Council of know there’s some protection,” Col- subcommittee to the state bar’s Public Acts 557-559, which took nification to include paid directors Michigan Foundations. lier said. business section as it worked on effect in January, made updates to re- and protects all directors from lia- “People could raise questions Business executives considering the amendments. Tarnacki also flect current nonprofit practices and bility for gross negligence. about that, but the business of our serving on nonprofit boards ques- serves as counsel for the Council of also made the act more closely paral- Under the new law, nonprofit di- nonprofit sector has become so com- tion if it’s a level playing field with the Michigan Foundations. lel the state’s Business Corporations rectors only have liability for in- plicated, to get talented people to business sector in terms of liability Act. stances of intentional, self-serving serve on your board they need to protection, Collier said. “Now it is.” See NONPROFITS, Page 17

[FORD GLOBAL TECHNOLOGIES LLC] The MoDe:Me, one of Ford Global Technologies’ two electric bicycle prototypes,was named best product gadget at the Mobile World Congress. Tech firm Tome helps Ford build a The Detroit City Football Club averaged 2,878 fans a game last season at Cass Tech High School , including a season 2-wheeler high of 3,398. By Tom Henderson [JON DEBOER] [email protected] Is Ford Motor Co. going to be- come a bicycle manufacturer? Detroit City FC looks to kick it up to pro level Maybe, said Bill Coughlin, president and Owners in talks with investors,say fan base is there money. We’ve developed a fan base that appeals CEO of Ford to higher leagues. It makes it an appealing Global Technolo- By Bill Shea Hockey Town, meet Soccer City? Detroit market. We proved we can get people to come gies LLC. [email protected] City FC isn’t the only local club with its eyes on downtown and pay to watch soccer.” The company he Detroit City Football Club intends higher levels of pro soccer, Page 20 Mann, 34, declined to name the potential is testing that Sigal’s seed to transition from a fourth-tier investors. idea with the takes root. In semipro team to a higher-lever The goal is in 2016 to move to the 24-team help of a Royal Moving on up less than a year, Tprofessional club after the season, Tampa, Fla.-based United Soccer League or the Oak-based tech Tome Inc.is its owners said. 11-team New York City-based North American DCFC’s league, the National Premier Soccer company. profitable, has And that could involve building a soccer- Soccer League, he said. They’re the third and League, is a fourth-tier league — and one of the Ford Global large customers specific stadium in the city. second-tier levels of pro soccer in the U.S., two top amateur leagues — within the seven- unveiled two pro- and will be able to As the club prepares for its season opener respectively, underneath Major League Soccer. tier Chicago-based United States Soccer totypes of electric fund rapid growth against AFC Cleveland at 7:30 p.m. May 15 at Cass “It’s a matter of putting together an Federation’s organizational pyramid. The USSA bicycles at the out of revenue, Tech High School, ownership remains in talks ownership group that has a certain net worth Mobile World Con- says CEO Jake with investors, said team co-owner Sean Mann. and a facility,” Mann said. “It all comes down to See SOCCER, Page 20 gress in March. Sigal, Page 18 One, called the MoDe:Me, was built by Los Angeles-based Dahon, MUST READS of the week... the world’s largest maker of folding bikes. Both electric bikes were em- A no-hit wonder bedded with sensors and software If you’re Martian,say ‘cheese’ designed by Tome Inc. and connected In this week’s installment of our Looking Back series, Seven University of Michigan faculty members to the Web to tell riders when they Crain’s goes back 30 years to see what became of a are going to help take the ultimate family photo: should turn left or right to get to their startup record label and the man who wanted to destination. “put Detroit back on the map.” the universe. Read about it in Tom Henderson’s blog. Page 10 crainsdetroit.com/blogs See BIKE, Page 18 [ISTOCK PHOTO] 20150420-NEWS--0004-NAT-CCI-CD_-- 4/17/2015 3:34 PM Page 1

4 CRAIN’S DETROIT BUSINESS // April 20, 2015 Detroit Zoo aims to turn waste into power with $1.1M project

By Sherri Welch How the biodigester will work [email protected] The Detroit Zoo is headed for greener pastures with its plan for the first biodigester at a U.S. zoo. The $1.1 million project will con- vert the 400-500 tons of manure and other organic waste produced annu- ally at the zoo into methane-rich gas to power the 18,000-square-foot Ruth Roby Glancy Animal Health Complex. The biodigester will also produce [DETROIT ZOO] compost for the animal habitats, gar- Imagine a quick oil change building with four bays. dens and public spaces on the zoo’s 125 acres, saving it $70,000-$80,000 That’s what the biodigester will look like, Detroit Zoo COO Gerry VanAcker said, in energy costs and another $30,000- with each bay made of cast concrete vaults that are explosion proof. $40,000 in waste disposal fees. A bay will be filled with waste every day for a week before the pile is sprayed with With construction scheduled to a nutrient-rich “liquid gold,” as Michigan State University’s Anaerobic Digestion launch in June, the project could be Research Education Center calls it, he said. completed by October. That liquid, a byproduct harvested from other anaerobic biodigestion, will spur The estimated cost for the project the pile in the bay to begin producing methane. “is a pretty big barrier to entry for most zoos,” COO Gerry VanAcker That bay is then sealed for three weeks, and the floors are heated to spur gas said. “But we ex- production. The accumulated methane-rich gas moves from the bay into a pect a return on rubber bladder on the building’s roof, VanAcker said. From there, it will travel into investment in a diesel generator that generates electricity. close to 10 years.” The Detroit Zoo launches crowdfunding campaign Zoo has set a goal to be zero- The Detroit Zoological Society launched a crowdfunding campaign April 17 at waste by 2020. Patronicity.com/Detroit Zoo to help fund a new biodigester in tandem with And the biodi- its annual Earth Day event, GreenFest. GerryVanAcker: gester “gets us a The goal is to raise $55,000 of the project’s $1.1 million cost. Zoo closer to zero- lot closer to that waste goal goal,” he said, If the effort is able to hit its goal by June 15, it will receive a matching amount while generating from the Michigan Economic Development Corp. through its Public Spaces 7 percent to 8 percent of the zoo’s & Community Places program. Hutch is your single source for comprehensive annual electricity needs. The zoo is offering donor incentives including wildflower seeds from its asphalt and concrete services. The project has been in the greenhouse, stationery made from recycled elephant dung, a “Poo at the works for the past couple of years. Zoo–Who Dung It?” T-shirts and bags of zoo compost for their garden. a  L HL/  H L Í0K  L ÍHK ÙH L/ H Í0KI0   Two renewable-energy grants to- IL K ÜÍ/ H  LKÍ(ÞI   HK ÍÛÝ  HK IL taling $27,000 from the Michigan 0I 0KHÜ  HK ILÍHJI LK/ H Í(ÞHÝHK ILÍ(  L/ H  Economic Development Corp. fund- er at the MEDC. more, so we save the expense of tip- * IK ÞK  ÓLKHHK IL3 ILKK ILÍÛHÝ  LKÚ  L0IK IL ed a two-part feasibility study con- The biodigester is expected to pro- ping fees and won’t have to replace ducted by Michigan State Universi- duce three-quarters of the electricity the truck,” VanAcker said. ty’s Anaerobic Digestion Research needed for the health complex, The Hellabrunn Zoo in Munich, Call today for more information at 586.427.7283 or visit us at Education Center. which functions like any hospital Germany, operates a biodigester, www.hutchpaving.com to learn more or to request a quote. With the rest of the grant, the zoo with X-rays, surgeries, medication and the Toronto Zoo is in the initial hired Albert Kahn Associates Inc., dispensing and a nursery. phases of developing one through a Detroit, to develop a blueprint for the MSU’s Anaerobic Digestion Re- public-private effort Detroit bench- facility, which will be northeast of the search Education Center will help marked, VanAcker said. None are administration building. launch the biodigester and operate operating at U.S. zoos. Detroit-based Integrity Building it for the first year under a $100,000 “Detroit is clearly leading the way Group LLCis contractor on the project. contract, VanAcker said. with the biodigester,” said Doug The Fred A. and Barbara M. Erb Zoo employees will shadow the Piekarz, CEO of the Akron Zoo and Family Foundation gave a $600,000 MSU team so they can take over the past vice chairman of the Associa- grant, thanks to zoo trustee John Erb. operation after the first year. Esti- tion of Zoos and Aquariums’ green And the MEDC has committed mates are that the biodigester will scientific advisory group. up to $100,000 for the project take just eight to 10 hours of staff time “We had looked at (one) … but through the Public Spaces & Com- each week to operate, VanAcker said. weren’t able to do it because of code munity Places program, which pro- The zoo doesn’t expect byprod- issues. ... Our solid-waste authority vides matching grants for public ucts from the biodigester to trouble is attempting to work through those space projects supported through neighbors. issues.” online crowdfunding platform Pa- “The only times the smell is ex- Conservation is a focus area for tronicity. (See box, this page.) posed are when the doors are all AZA-accredited zoos and aquari- It plans to chip in $100,000 from open,” VanAcker said. And “with all ums, Piekarz said. its 2015 capital budget and has the bells and whistles we have in the In the end, you would do this $100,000 grant proposals in to the design, it’s going to be nearly im- where the ROI is reasonable, he Michigan Energy Office and the De- possible to explode.” said. And “based on what I know partment of Environmental Quality. The remaining compost left after about Detroit’s situation, they’ve Although the biodigester is not a the waste has released the methane gone about this exactly right.” typical community place-type proj- gas may be used in gardening, and The zoo project is likely to serve ect, “we saw this as a great opportuni- the zoo plans to use the majority of as a role model for other U.S. zoos, ty because it is a place that attracts a it on its grounds, VanAcker said. Piekarz said. significant amount of the public and Currently, the zoo collects organ- “Now we have someone to point it brings such a huge, important as- ic waste in a truck that’s much like a to to say, ‘If they could do it, why pect of sustainability and promoting trash hauler and transports it to De- can’t we?’ ”Ⅲ green elements,” said Lisa Pung, troit Dirt for composting. Sherri Welch: (313) 446-1694 community assistance team manag- “We won’t have to do that any- Twitter: @SherriWelch DBpageAD_DBpageAD.qxd 4/6/2015 10:59 AM Page 1

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6 CRAIN’S DETROIT BUSINESS // April 20, 2015 Saga feeds its appetite for middle-market media

By Chad Halcom the VerStandig family of VerStandig December. The VerStandig deal it’s a pretty good kets and on syndicated content. [email protected] Broadcasting. would be the first radio station buy fit for us.” Cumulus, which owns WJR 760 Saga Communications Inc. may The $9.64 million acquisition, since Saga acquired Ithaca, N.Y.- In that sense, AM, WDVD 96.3 FM and WDRQ FM be on the hunt to add more middle- which the company expects to close based WFIZ-FM from ROI Broadcast- the company 93.1 locally, closed on an acquisition market radio stations, even after a in June pending FCC approval, ing Inc. for $720,000 in January 2014. strategy differs of mass media company Westwood proposed deal to buy five in north- would bring its portfolio to 97 radio “Our focus is on middle-market from radio mar- One Inc. in late 2013. ern Virginia clears a Federal Commu- stations, more than half a dozen tel- stations — so Michigan would be ket giants like At- Saga, meanwhile, said it tries for nications Commission review. evision stations and the Illinois an appeal to us, but Detroit would lanta-based Cu- a more decentralized structure and The Grosse Pointe Farms-based Radio Network. be (less so),” CFO Samuel Bush said mulus Media Inc., has a historically lean upper man- broadcast operating company, But it no longer has properties in of Saga’s acquisition plans earlier Samuel Bush: which holds 460 agement — the corporate office ac- (NYSE: SGA) founded by local in- Michigan, since Saga sold the Lans- this month. “We’re very stations com- counts for fewer than 20 of its 800 dustry veteran Edward Christian, ing-based Michigan Radio Network “We’ve grown a lot over the years regimented buyers.” pared with 525 full-time employees. But Bush said has reached an agreement to buy and Michigan Farm Radio Network, and we like to grow, but we’re also two years ago the headquarters has grown over the assets of Harrisonburg, Va., sta- along with two Minnesota radio very regimented buyers. We’re not and has been selling stations in the years with the business itself. tions WSVA-AM, WHBG-AM, WQPO- networks, to Learfield Communica- going to buy just because a station smaller markets like Kalamazoo Net income was $14.9 million, or FM, WJDV-FM and WTGD-FM from tions in Missouri for $1.64 million in looks good on paper — we’ll buy if and Lansing to focus on major mar- $2.55 per share, on revenue of just under $134 million in 2014, com- pared with about $15 million, or $2.64 per share, on revenue of $129.5 million in 2013 (Saga com- pleted a four-for-three stock split and sold a Mississippi station that year). Saga, like much of the broadcast management industry, has been re- gaining an interest in acquisitions in the past couple of years following the global economic downturn and lack of financing in 2008, Bush said. “It happens in waves, based on either the economy or changes within an industry. And in (com- mercial radio) it would seem like IT’S NOT HOW WELL THEY WORK FOR US. another wave is on the horizon,” said Rich Homberg, president and general manager of Detroit Public IT’S HOW WELL THEY WORK FOR YOU. Television and former general man- ager of WWJ AM 950 and other Infin- ity Broadcasting stations in Detroit. Homberg also said Saga has ben- efited from Christian’s industry knowledge as a former president Eric W. Dietz Shari Krasinski, CTP, CPCP and general manager of WNIC 100.3 SVP, Regional Manager SVP, SaleS Manager FM. Private Client Group Treasury Management “Ed Christian for 40 years has been one of the smartest guys in the    oFlCe    oFlCe room. He’s managed his company    Cell    Cell eriCDieTZ HUnTingTonCoM SHariKraSinSKi HUnTingTonCoM incredibly well,” he said. Bush also said advertising still dominates Saga revenue — only about 5 percent comes from non- traditional sources like hosting Brian Marshall Brad Norman events and Internet streaming — SVP, #oMMerCial Region Manager SVP, MiCHigan Regional SaleS Manager and 2014 also saw growth from the Middle Markets Auto Finance & Dealer Services midterm elections.    oFlCe    oFlCe Political campaign advertising    Cell    Cell accounted for $4.7 million in 2014 BrianMarSHall HUnTingTonCoM BraDnorMan HUnTingTonCoM revenue across Saga’s more than 25 markets, while it was only about $800,000 in 2013. The Harrisonburg, Va., radio market will be a new one for Saga, Terrance B. Pryor Scott Wolffis which operates three stations under SVP, Regional Manager SVP, !rea Manager oF MiCHigan subsidiary Tidewater Communica- Commercial Real Estate Business Banking tions over two hours away in Nor-    oFlCe    oFlCe folk. The company is still interested    Cell    Cell in adding new markets, Bush said, TerrYPrYor HUnTingTonCoM SCoTTWolFlS HUnTingTonCoM but has no plans to mirror the size or business model of giants like Cu- mulus or iHeart Media Inc. “We’re very locally concentrated and we think that’s where we should be. Our management style is to be focused at the local market,” he said. “That doesn’t mean we won’t use a number of syndicated pro- grams. We do, but they’re tailored for a specific purpose and it’s to The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of augment the offerings from the local stations. It’s never going to Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington dominate the format.” Ⅲ Bancshares Incorporated. Chad Halcom: (313) 446-6796 Twitter: @chadhalcom DBpageAD_DBpageAD.qxd 4/16/2015 8:49 AM Page 1

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8 CRAIN’S DETROIT BUSINESS // April 20, 2015

Comerica Bank helped to train fu- CRAIN’S ture bankers. KPMG, Kmart and DETROIT BUSINESS other companies offered short MARY KRAMER stints for visiting Ukrainians to help Publisher them learn more about capitalistic [email protected] enterprises. “They needed to learn free-mar- ket economics,’’ Andrushkiw said. Crain’s even got into the act OPINION when one of our reporters, Brad Wernle, went to Ukraine as a guest Another chance to help Ukraine lecturer, teaching about news media, business reporting and n the global stage, Vladimir Detroit’s estimated 50,000 Ukrain- public relations. Focus on job skills OPutin gets my vote for “scariest ian-Americans, helped connect “It was a dynamic time,” An- leader.” (North Korea’s “Fearless Clark to the Economic Club. (Clark drushkiw said. “We had no money Leader” comes in second as “crazi- is also speaking on Thursday at to host students in Detroit. We had est.”) Wayne State University about na- to arrange lectures, find them That’s why I want to hear retired tional security issues.) places to stay and businesses to would reap benefits four-star Gen. Wesley Clark when Andrushkiw is vice president of connect them. They were bright he speaks about the Ukrainian crisis the D.C.-based U.S.-Ukraine Foun- students with minimal English.” at the Detroit dation. She remembers when, after Through Ford, Petrauskas sup- .P. Morgan Chase & Co. released a report detailing Economic Club the fall of the Soviet Union, Ukraine plied vans for transportation. Later, what most here already know — there’s a mismatch on April 28. gave up nuclear weapons in ex- she gave a gift to the Lviv school for J between the needs of local employers and the Clark, a for- change for promises of protection a new library in honor of her father. skills of many metro residents, particularly in Detroit. mer NATO from the U.S. The late Harry Malinowsky, a Supreme Allied She also remembers that support builder in the Brighton area, paid to The report was released as part of the five-year, $100 mil- Commander, ar- from Detroit — philanthropic and have classic business texts translat- lion commitment to Detroit’s economic recovery that Chase gued in academic — helped to bring ed. announced last May. It focuses on the need for “middle-skill” Newsweek earli- Ukraine its second free-market With the threat of a Russian inva- workers, whose education Gen.Wesley er this month business school in Lviv in 1991. sion, it’s hard to remember those Bringing up the falls somewhere between a Clark: To speak at that the U.S. and The late Helen Petrauskas, a top optimistic days. high school diploma and a DEC on April 28. allies should woman executive at Ford Motor Save Ukraine Now, a nonparti- education levels help arm Co., was among a core group of De- san humanitarian group, will hold of city residents college degree. (See story, Page Ukraine in anticipation of a Russian troit Ukrainians who persuaded my fundraisers April 28 and 29 while 14.) assault this spring. Ukraine needs good friend Bill Volz, then dean of Clark is in town: fundraiser/brief- is ... important More than one-fifth of city high-tech gear, he wrote, from intel- the School of Business Administra- ing breakfasts both days and a because it betters residents don’t fit that criteri- ligence tools to long-range anti- tion at Wayne State University, to banquet the first night, all at the on because they lack a high armor systems and radar to detect help create the Lviv Institute of Ukrainian Cultural Center in War- people’s lives. firing positions for long-range rock- Management. ren. school diploma or GED, in- ets to sniper rifles with night-vision Professors from WSU went to For more information, visit cluding more than half of Latino residents. sights. Ukraine, and students and profes- www.saveukrainenow.org or email The gap is important because there are lots of middle-skill Vera Andrushkiw, one of metro sors from Ukraine came to Detroit. [email protected]. jobs here: more than 320,000 in 2013, accounting for nearly 17 percent of all jobs. Most of those are in health care and manufacturing. LETTERS And they can pay well: Middle-skill health care positions have a median hourly wage of $27.77, for example. The report makes several recommendations, including de- A vote against Crain’s print redesign veloping a regional master plan to prepare Detroit residents for middle-skill occupations and building curriculum Editor: Crain’s Detroit Business welcomes are putting important news items in around the same goal. I would like to comment on the different places on each page rather Clearly, bringing up the education levels of city residents is letters to the editor. All letters will March 30 issue of Crain’s Detroit be considered for publication, than having the important news on an important workforce development priority, but it’s also Business. I have been a subscriber provided they are signed and do not each page at the top and outside of important because it betters people’s lives. since 1985. defame individuals or organizations. the page. This issue assumes even more importance in light of De- The publication was an excellent Letters may be edited for length I won’t discuss the ads, but com- presenter and reviewer of business, and clarity. ments could be mentioned, espe- troit City Council’s insistence that job guarantees be part of both locally and nationally. Regard- cially when the visual aspects of the the new hockey arena project, among others. less of your “research” and use of Write: Editor, Crain’s Detroit ads are more carefully thought out But that can be a hard bar for employers to meet if the skills “focus groups,” your new publica- Business, 1155 Gratiot Ave., Detroit, than the use of photos in the vari- aren’t there. tion essentially is in the same style MI 48207-2997. ous news stories throughout the Perhaps the council should instead require companies to as one of those tabloid newspapers Email: [email protected] publication. from New York City. I could go on, but I leave those invest in high-quality, accountable programs that raise the Specifically, each page looks very thoughts to other readers. opportunities and abilities of Detroiters. busy. In the traditional sense of in junior high school in Cleveland Burton Zipser That could be a long-term gain for everyone. newspaper design (which I learned Heights, Ohio, back in 1947-48), you Royal Oak The mayor has a velvet glove Council has had its say, it will be ap- mayoral campaign. Duggan never does anything to un- running relatively smoothly. Duggan proved and work will proceed. He seems able to govern with an dermine their position or their au- had some role in shaping the power It was interesting to note that it iron fist in a velvet glove. It’s a perfect thority. But somehow, everything structure of the current council; it KEITH CRAIN wasn’t until last week that Mayor combination when you have a can- gets done and quite efficiently. seems they feel empowered, or at Mike Duggan had any comments tankerous collection of council mem- I don’t think anyone wants a least relevant. And that is always im- n the last couple of weeks, there about the issue and sort of let it all bers who think they are the mayor. mayor without some checks and bal- portant when you have elected offi- Ihas been a bit of a brouhaha run on its own accord. Ever since Coleman Young ended ances, but during the last couple of cials, each with his or her agenda. about the new hockey town devel- But make no mistake, the mayor his tenure, the council and the decades, the City Council was a real For all the outward signs, we have opment on the part of the Detroit has a very tight grip on the city and mayor’s relationship has been con- impediment to progress in Detroit. our checks and balances. But most City Council. the City Council and is just allowing tentious at best. Every mayor since During the bankruptcy, Mayor importantly, we have a mayor who Zoning for the new arena has council to express its own bluster. Young saw the council as an adver- Duggan was able to work quite well is getting things done in our city. been postponed for a week at a time Mayor Duggan is a master of sary and the relationships were with the emergency manager, but it Things that are long overdue. and now it’s going to be coming up leadership. He was when I watched never very good. would be fair to say that the council It may be an iron fist. But make again on Tuesday. Chances are pret- him turn around the Detroit Med- It is fascinating to watch today’s had no role during the bankruptcy. no mistake, it’s covered with a velvet ty good that this time, after City ical Center, and he was during his mayor and City Council interact. Today, everything seems to be glove. 20150420-NEWS--0009-NAT-CCI-CD_-- 4/16/2015 4:28 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 9 Detroit in the driver’s seat for auto-tech mashup and suppliers. In a span of what mashup of the automotive and tion in every part of our business.” be talking about the prowess of its seems to have been just months, technology sectors, with Detroit- “Mobility” is a term we are accus- vehicles in terms that are far less OTHER VOICES the auto industry has morphed into based automakers opening Silicon tomed to associating with the smart- about horsepower, torque and dis- something very new, very different Valley labs while Silicon Valley tech phones, tablets and laptops we carry placement and far more about Lisa Vallee-Smith and very high tech. firms like Google, Tesla and appar- with us. But shortly, our most com- radar sensor control units and Lisa Vallee-Smith is CEO of Airfoil Group, Far beyond the playing fields on ently even Apple are building au- plex mobile device will be the car in stereo multifunction cameras. Southfield which automotive design and high- tonomous vehicles. The role of the our driveway. For the newest genera- With its growing technology tal- tech science traditionally have con- automobile itself has evolved in a tion of consumers, the car they buy ent base, its history in evolving the uring the depths of Detroit’s verged — areas like infotainment way that points the auto industry in is less important than the technolo- automobile and its strategic focus bankruptcy crisis, the most and emissions control — automo- entirely new directions. gy it carries. Unlike their parents, on high-tech innovation, Detroit is Doptimistic supporters of the biles now are designed around con- In January, Ford Motor Co. millennials increasingly tend to view positioned to become the focal Motor City clung to the prospect nectivity and such autonomous opened a new research and innova- cars and trucks not so much as vehi- point for the new mobility industry. that Detroit had nowhere to go but driving features as adaptive cruise tion center in Palo Alto, Calif., at the cles equipped with ever smarter As the auto-tech mashup acceler- up — and to the surprise of many, it control, radar, video cameras and heart of Silicon Valley, and CEO Mark technology but rather as very smart ates, Detroit is ready to drive itself to did. In fact, Detroit has soared to sensors that already enable vehicles Fields explained, “At Ford, we view technology packaged in an automo- new levels of excellence and entre- become not just a resurgent center to drive and park themselves. ourselves as both a mobility and an bile. preneurship on the brand-new road of automotive design and produc- In fact, we are witnessing a auto company, as we drive innova- In the months ahead, Detroit will ahead. tion but also one of the nation’s hottest spots for technology. Young tech professionals are fill- ing the lofts and offices of the city’s downtown. The commercial real es- tate services firm Jones Lang LaSalle recently ranked Detroit as the 31st best high-tech market in the coun- try, joining Chicago, Minneapolis- St. Paul and Indianapolis as one of the few top tech markets in the “CAN DTE ENERGY Midwest. The city is becoming a welcome home for leading-edge startups through organizations like TechTown Detroit and Bizdom and HELP MY BUSINESS companies like Rocket Fiber, which is creating a high-speed fiber-optic cable infrastructure for the city’s center along the M-1 Rail line. SAVE MONEY?” The real momentum for Detroit’s future high-tech growth, however, DTE Energy wants to help your business manage your energy usage to save money. We can be found in the labs and on the test tracks of the city’s automakers offer all kinds of energy efficiency information and tools, plus easy tips to help you be more efficient. For instance, you’ll cut heating and cooling costs by simply adding insulation where there isn’t any, especially along piping and ductwork. Install a programmable Nominations sought thermostat to automatically lower heating and raise air conditioning temperatures during for 40 under 40 awards off hours. Seal doors and windows to prevent air leaks. You’ll find even more ways to save Since 1991, Crain’s Detroit Business has gathered 40 of the community’s using our Interactive Business tool. And you can find a certified contractor with our Energy high achievers for a special salute. Efficiency Directory. It’s easy. Just go to dteenergy.com/savenow and start saving today. Past winners have started companies, found success at a young age at established businesses and made nonprofits stronger. Crain’s is seeking nominations for the 2015 class of 40 under 40, which recognizes achievers across metro Detroit under age 40 based on factors such as financial impact and community leadership. Winners will be profiled in the Oct. 5 issue and honored at an awards event in November. With more than 680 alumni invited, the event brings together the current class with colleagues, clients, family and friends to celebrate. To be eligible, nominees must be age 39 or younger as of Oct. 5, 2015. Nominations must be received by April 27. Winners will be notified this summer. Nominations are submitted online and can be found at crainsdetroit.com/section/ nominate. For questions regarding the nominations: Contact Bill Shea at [email protected] or (313) 446-1626. Start saving today, visit: For technical questions dteenergy.com/savenow regarding the nomination form: Contact YahNica Crawford at [email protected] or (313) 446- 1641. 20150420-NEWS--0010-NAT-CCI-CD_-- 4/16/2015 4:40 PM Page 1

10 CRAIN’S DETROIT BUSINESS // April 20, 2015 Detroit no Hitsville for record label founder,but ‘no regrets’

By Dustin Walsh time ended Motech before its first Crain’s April 22, [email protected] birthday. LOOKING BACK 1985, issue Producer and former Brownsville Nazarian, 66, started the label Station guitarist Bruce Nazarian with a $250,000 advance from MCA profiled Bruce Nazarian, a record producer and musician who created independent record label Records Inc., which was absorbed wanted to reignite Detroit’s recording industry. He found a Motech in 1985 to “put Detroit back into Geffen Records in 2003, to pro- on the map” for recording hit music. duce his own band’s record “Night better sound in New York City. More at crainsdetroit.com/30 But the lure of a lucrative produc- Rider” in 1983. Nazarian, then a ing career in New York City and De- member of Automatix, used the equipment for an upper flat on Midway’s dance nature he is today, back in 1985. He troit’s dwindling music scene at that funds to buy studio recording Lauder Street in the city with hopes hit “Set It Out,” just turned out luckier than I,” of making Motech a successful in- Nighthawk’s Nazarian said. dependent dance music label. “Eye of the Tiger” Brian Pastoria, partner at De- “I can’t give you a Motor City suc- and Mitch troit-based Harmonie Park Enter- cess story,” Nazarian said. “We Ryder’s cover of tainment and Media Group, said spent so much time selling records “Like a Rolling many artists and producers, includ- in New York, we thought we could Stone,” and he ing himself, were weighing the deci- put Detroit back on the map with co-produced sion to leave Detroit in the 1980s. the label, but it became a natural Bruce Nazarian: several tracks “It became a serious decision for consequence of the economics of “The economics in with famed De- most of us then,” said Pastoria, who the city as it dwindled. Detroit sucked.” troit producer continues to produce records in the “The kind of music I was produc- Don Was. city. “The industry just wasn’t here ing was inexplicable to many people Was went on to produce tracks for anymore, and it’s still not here. I in Detroit,” Nazarian said. “So I saw the Rolling Stones, Bob Dylan, Way- stayed because of family. Detroit has the writing on the wall; the econom- lon Jennings, Elton John and dozens had such a huge impact globally, but ics in Detroit sucked, so I moved to a of other superstar musicians. do we celebrate that and are we better place to produce.” Nazarian never reached the same known for our music industry? No.” Nazarian was lured away from music industry VIP status as Was, Nazarian said he doesn’t return Detroit and Motech to join Mike but he continues to produce inde- to Detroit often and doesn’t pine Theodore — an ex-Detroit producer pendent smooth jazz records in Los over abandoning Motech, but he responsible for co-producing Ro- Angeles. He hosted a weekly radio does miss the “Detroit sound.” driguez’s 1970 album, “Cold Fact,” show called the “Digital Guy” until “I have no regrets, considering as well as Dennis Coffey’s 1972 hit, last year, when he took a job at a where the recording industry went “Ride Sally Ride” — in New York City record company. Nazarian declined over the past 30 years,” Nazarian to produce. to reveal his title or the company he said. “The way I play music, the way Nazarian’s production career in- works for due to past legal matters. I produce it, is absolutely a function cludes its own set of hits, including “Don Was was not the force of of living in Detroit when I did. I am a product of all those wonderful in- fluences — pop, rock ’n’ roll, R&B — that were Detroit.” Ⅲ Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh Health Care Experience GreenLancer In Your Corner.® Energy Inc. Ŷ Focused on health care law for systems, raises $5M physicians and payors in all market segments. Detroit-based GreenLancer Ener- Ŷ Third party reimbursement, public and gy Inc. announced April 15 that it has finished raising a Series B fund- private health care provider fi nancing, ing round of $5 million from a syn- and commercialization of physician dicate of new and existing investors. inventions and ideas. The company, which uses free- lancers to plan and handle permit- ting for solar energy projects, has expanded its space in the Ford Building in downtown Detroit and is looking to hire experienced soft- ware developers. It raised its A round of $500,000 in July 2013. The company was found- ed in 2011. “We strive to be the industry’s premier choice for residential solar system designs,” said CEO Zac MacVoy. Last April, GreenLancer won the $50,000 Clean Energy Trust Busi- ness Model Innovation Prize at the Clean Energy Challenge in Chicago. In 2012, one of the company’s First Tier Ranking in Health Care Law co-founders, Patrick McCabe, was named to the Crain’s class of 20 in their 20s. McCabe, who was CEO at Ŷ Metro Detroit Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Contact Scott Alfree at [email protected] the time, is now COO. — Tom Henderson 20150420-NEWS--0011-NAT-CCI-CD_-- 4/16/2015 5:01 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 11 PEOPLE IN SPECIAL REPORT HEALTH CARE Patricia Posa, system performance improvement leader for St.Joseph MercyHealth, has been named a HEALTH CARE Michigan Health Read more health care news and sign up for our Health Care Extra newsletter at crainsdetroit.com/healthcare & Hospital Posa Association Keystone Center senior fellow. Sachin Kheterpal, M.D., a physician anesthesiologist and an associate professor at the University of Michigan, has Kheterpal been appointed to the team that will lay the ground- work for President Barack Obama’s Precision Medicine Initiative. William Conway, M.D., CEO of the Henry Karmanos now Ford Medical Group, has been treats 6,500 selected as one of the 50 Most new cancer Influential Physician Conway Executives and patients Leaders by Crain’s in downtown Modern Healthcare, a sibling publication of Crain’s Detroit Business. Detroit. Brad Stach, Ph.D., division head of audiology at Henry Ford Hospital, has received the American Academy of Stach Audiology’s [JOHN SOBCZAK] Distinguished The merger of Karmanos and McLaren has brought together doctors Gerold Bepler (left) and Justin Klamerus,who had been president and medical director of Achievement Award. McLaren Cancer Institute. Klamerus now is chief quality officer and executive vice president of community-based programs for Karmanos. Gerald Feldman, M.D., a professor of molecular medicine and genetics, pathology and pediatrics at the Wayne State University School of Medicine, was recently named president of the American College of Cancer centers bulk up Medical Genetics and Genomics. Renay Gagleard, service line administrator for women and children’s Karmanos, others add facilities, technology, specialists can market Karmanos in Oakland and services at Hurley Medical Center, Wayne counties. (See story, Page 13.) has been named chief nursing officer at Karmanos growth plans the Detroit Medical Center’s By Jay Greene provider networks, adding facilities and Huron Valley-Sinai Hospital. [email protected] technologies such as genetic testing and In the 15 months since the merger took place — using $78 million pledged Steven Almany, M.D., has been he decision by the Barbara hiring specialists when needed, named medical Ann Karmanos Cancer executives said. by McLaren as part of the acquisition — director of the Institute in the fall of 2013 to Those moves come in part because of Karmanos has been hiring cancer cardiac join McLaren Health Care Corp. incentives under the Affordable Care researchers, renovating operations and catheterization lab T was a launching point to build a Act to keep as many patients as possible completing plans on inpatient and at Beaumont outpatient expansions, said Gerold Hospital in Troy. statewide presence. in a given network. Bepler, M.D., CEO of the National Cancer Expansion-minded McLaren, with its Leading oncology competitors to Zaid Al- Institute-accredited institute. Faham, M.D., of 10 hospitals, provided Detroit-based McLaren in Southeast Michigan include At least $20 million will be used for Almany Beaumont Karmanos what it needed: Greater access the University of Michigan Health Hospital in Royal to capital, lower supply and equipment System, St. John Providence Health research to hire scientists and their Oak won the grand prize for his costs through economies of scale, and System, Henry Ford Health System and teams, Bepler said. So far, Karmanos has research abstract presentation from access to more patients for advanced Beaumont Health. hired four scientists and plans to hire 16 the American College of Nuclear cancer treatment and clinical trials. Still to be resolved in the McLaren- more, along with several dozen senior or Medicine and the Society of midlevel investigators and technicians. Nuclear Medicine and Molecular The move comes as other health care Karmanos merger is ongoing litigation Imaging. organizations are concentrating on between the two entities and the Detroit strengthening their own oncology Medical Center over whether McLaren See CANCER, Page 12 20150420-NEWS--0012,0013-NAT-CCI-CD_-- 4/16/2015 4:27 PM Page 1

12 CRAIN’S DETROIT BUSINESS // April 20, 2015 SPECIAL REPORT: HEALTH CARE CANCER,from Page 11: Health systems add programs in aftermath of Affordable Care Act

During the past year, Karmanos Cancer trends: It’s the No. 2 killer – but decline in new cases expected also more than doubled the num- ber of patients enrolled in clinical Cancer is now the second-leading cause of But improvements in cancer screening — including Other growing areas of cancer include colorectal, trials, to 211 during 2014 from 90 in death among U.S. adults, behind heart disease fast-developing genetic testing and treatment — gastro-intestinal, gynecological and blood cancers 2013. but ahead of lung disease, accidents and strokes, along with a decline in smoking have contributed to that include lymphoma and leukemia. Declining are Karmanos plans to add three clin- the American Cancer Society says. a 20 percent decline in cancer death rates in head and neck and urology cancers. ical trials this year to 19 underway to Cancer care in the U.S. costs more than $125 billion the U.S. since 1991, the society said. While new cancer cases have been trending upward capitalize on the greater patient ac- each year, or 5 percent of the nation’s $2.5 trillion “The mortality rates are dropping because people in Michigan over the past several decades, the cess. In addition, the institute sup- health care bill. are living with cancer longer,” said Gerold American Cancer Society estimates that the state ports more than 700 cancer research Bepler, M.D., CEO of the Detroit-based will experience a 2 percent decline in new programs with Wayne State Univer- Barbara Ann Karmanos Cancer Institute. cases this year, to 57,420 from 58,616 in 2014. sity. About 77 percent of all cancers are “2015 will probably be the first year in 40 to 50 years Bepler said Karmanos also has diagnosed in people 55 and older. that the number of new cancer cases will go down,” upgraded equipment and renovat- In 2011 — the last year such data were Bepler said. ed its infusion center and inpatient available — 21,000 people in the state Hospital discharges for cancer have been clinics. died from cancer, according to a 2013 “At the end of the year, we plan to declining over the past dozen years, according report by the Michigan Department of to the Michigan Department of Community Health. look at our ambulatory network” in Community Health. Southeast Michigan, he said. Kar- In 2012, the last year data were collected, 37,642 manos has two outpatient centers In Michigan, the three leading causes of cancer in patients were discharged for cancer care, down 12 in Farmington Hills and a joint ven- 2011 were prostate (8,675), lung (7,652) and percent compared with 43,033 in 2003. ture in Monroe. breast (7,409), Community Health reported. — Jay Greene [ISTOCK PHOTO] To provide uniformity, Bepler said, Karmanos has been certifying each McLaren hospital cancer cen- mon electronic health record for treats 6,500 new cancer patients in that primary care providers associat- At MidMichigan, for example, “We ter in Karmanos’ treatment proto- oncology, working with Elekta Ltd. downtown Detroit, or 500 more than ed with McLaren hospitals are refer- attend tumor boards with them, con- cols, quality-of-care index and more and its software called Mosaiq. when it was independent. ring more patients to the institute. To duct genetic counseling, do video than 350 common care plans. Because of the affiliation with Bepler said that awareness of Kar- generate referrals to Detroit, he said, conferences and collaborate on qual- McLaren also is developing a com- McLaren, Bepler said, Karmanos now manos is increasing in Michigan and he has spent time getting to know ity initiatives,” Lawrence said. “A doctors at McLaren’s hospitals. small fraction of their patients come Overall, the McLaren Cancer Insti- here for consultation, and we do their tute, renamed Karmanos Cancer In- bone marrow or liver transplants.” MARGINS BEING SQUEEZED BY DECREASING REVENUES AND INCREASING COSTS? stitute, has eight inpatient cancer The UM network also includes programs, 11 outpatient centers and community affiliations with seven seven outpatient radiation centers. It hospitals to co-manage radiation sees a total of 12,000 new cancer pa- oncology programs. UM specialists tients, a 4 percent increase from 2013. coordinate care and, in some cases, refer to the cancer center, he said. Influx of outpatient care The hospitals are Allegiance As technology and screening im- Health, Jackson; Alpena Cancer Cen- The Status Quo Will No Longer Work prove, cancer care is moving more ter; McLaren Greater Lansing; Metro into the outpa- Health Village, Wyoming; Providence tient arena, said Assarian Cancer Center, Novi; Provi- Learn How to Build a Plan B Theodore dence Cancer Center, Southfield; and Lawrence, M.D., VA Ann Arbor Healthcare System. director of the Beaumont’s cancer plan University of Michigan Com- David Wood, M.D., Beaumont’s prehensive Can- chief medical officer, said Kar- cer Center. manos will help Theodore UM, which improve Lawrence: Seeking operates more McLaren’s can- more partnerships than 40 outpa- cer services and tient centers, re- increase care co- Medical Practice Seminar Series cently opened satellites with cancer ordination with- services in Brighton and Northville in the system. April 22 — 6:30pm to 8:30pm to expand its reach closer to Detroit “We are going Westin Southfield, 1500 Town Center, Southfield, MI 48075 Business Advisory Services as well as west of Ann Arbor, Lawr- ahead with our David Wood: Cost: Complimentary — includes a light dinner ence said. plan to provide “The strategy of seeing more in- Beaumont to offer coordinated on- patients in Ann Arbor is not going to latest technology cology care s)DENTIFYANDMANAGEAREASOFIMPROVEMENT happen,” he said. across Beaumont s"UILDASUSTAINABLEGROWTHPLATFORM For example, UM outpatient vis- and want to be able to spread proto- Lessons Learned Shared its have increased at an average cols very similarly” across Beau- s4RANSITIONTOALTERNATIVEBUSINESSMODELS by Guest Physician Speakers 3 percent clip annually in the past mont’s eight hospitals, said Wood, a s$ETERMINEPROlTABLEEXITSTRATEGIES decade and totaled 102,300 in 2014. cancer surgeon who has worked in s/PTIMIZECOLLABORATIONWITHHEALTHSYSTEMS In 2000, that number was 56,800. the past for Karmanos and UM. As part of its expansion, UM has “We want to make us attractive created a statewide radiation oncolo- for statewide referrals as well,” All physicians and executives in a medical practice are welcome. gy network with affiliations with Mid- Wood said, adding that Beaumont Michigan Health in Midland and Tra- will do that by offering prompt ac- verse City-based Munson Medical cess with the latest technology, in- Space is Limited, RSVP Today. Contact Michele to make your Center to collaborate on all cancer cluding proton beam therapy. (See seminar reservations to learn how to empower your medical practice. programs. story, Page 1.) RSVP by email: [email protected] or by phone: 248-827-1010 “We have been trying harder to But Wood said Beaumont doesn’t form more partnerships statewide have formal relationships with other for at least the last five years,” said hospitals for oncology care. “Our on- Lawrence, a radiation oncologist cologists — medical, surgical and ra- Securities offered through CIG Securities, Inc., Member FINRA/SIPC. Investment Advisory Services Available Through CIG Asset Management, Inc., a SEC Registered Investment Advisor. who took over the cancer center this diation — have extensive relation- Insurance Services Provided by CIG Risk Management, Inc. year. “I do want to accelerate this, ships with other doctors” in All Are Wholly Owned Subsidiaries of CIG Capital Advisors, Inc. anything we can do with cancer con- Michigan, he said, and that is how sistent with the health system’s over- all strategy.” See Next Page 20150420-NEWS--0012,0013-NAT-CCI-CD_-- 4/16/2015 4:57 PM Page 2

CRAIN’S DETROIT BUSINESS // April 20, 2015 13 SPECIAL REPORT: HEALTH CARE

From Previous Page Hoban said. cer tumors. DMC deal stymies Karmanos growth plan St. John’s out- “This is a major growth area,” referrals are generated. patient cases Hoban said. In 2014, Wood said, Beaumont One hang-up in the growth Macomb counties, except for the grew 10 percent Hoban also said the St. John sys- had 171,000 outpatient encounters, strategy of the Barbara Ann Kar- area around McLaren Macomb Hos- last year, with in- tem is standardizing protocols a 7 percent increase from 160,000 in manos Cancer Institute has been pital in Mt. Clemens. patient behind through the St. John Providence On- 2012. Inpatient admissions held the inability of McLaren Health Care After the merger was announced at a 3 percent cology Network to treat patients in steady at 3,300. Corp. to market Karmanos in Oak- on Oct. 30, 2013, McLaren and Kar- growth rate, he consistent ways using best clinical “Our volume is going up on the land and Wayne counties. manos sued the DMC for the right Bob Hoban: St. said. practices and multidisciplinary outpatient side but not as fast on When Karmanos acquired the to market services using the Kar- John standardizing To enhance teams. the inpatient side,” he said. “Much Detroit Medical Center’s $100 mil- manos name in Oakland County. treatment protocols cancer screen- One of St. John Providence’s new of the treatment with oral drugs is lion cancer operation in 2005 for The DMC then sued McLaren and ing, another areas of emphasis in cancer care moving to outpatient.” $10 million, it agreed to advertise, Karmanos for breach of contract. new emphasis for St. John is genet- has been developing the program market services and brand its DMC The two sides are trying to settle. ic therapy. The health system has under contract at Crittenton Hospi- St. John’s cancer plans name only in Wayne, Oakland and — Jay Greene hired two geneticists and a genetic tal Medical Center. Last year, St. Bob Hoban, St. John Providence’s counselor. It also recently began a John took over Crittenton’s pro- senior vice president of strategy and molecular pathology program to gram. Ⅲ centers of excellence, said that his- had 4,000 new cancer cases gener- an amount that has been increas- provide laboratory support to Jay Greene: (313) 446-0325 torically, St. John hasn’t competed ating $160 million in net revenue, ing over the past several years, identify specific mutations in can- Twitter: @jaybgreene with Karmanos. “We compete a little bit with McLaren” in Mt. Clemens, Hoban said. “So far, we haven’t seen any strong moves by Macomb in the cancer area.” Last year, St. John’s six cancer centers and nine infusion centers TOP FIVE SIGNS YOUR EMPLOYEES MIGHT HAVE INFERIOR DENTAL COVERAGE:

CON ROUNDUP

The following are selected certifi- cate of need filings for March 9-April 13: THEIR NETWORK INCLUDES ONLY TWO DENTISTS. Letters of intent Ⅲ Wellbridge of Clarkston: Begin operation of a new nursing home, replacing 85 beds; $10.8 million. CLEANINGS CAN ONLY BE SCHEDULED Ⅲ Bortz Health Care of Warren: ON THE LAST TUESDAY OF THE MONTH. Acquire 152-bed nursing home from Warren Opco LLC and operate under a five-year lease; $6.2 million. Ⅲ Bortz Health Care of Oakland, Orion Township: Acquire 106-bed nursing home from Oakland Opco ONLY THE TOP FRONT TEETH ARE COVERED. LLC and operate under a five-year lease; $3 million. Ⅲ Bortz Health Care of Ypsilanti: Acquire 144-bed nursing home from Ypsilanti Opco LLC and operate CAVITIES ARE NOT TREATED BECAUSE THEY under a five-year lease; $3.9 million. ARE CONSIDERED “CHARACTER BUILDING.” Ⅲ Bortz Health Care of Green Lake, Orchard Lake: Acquire 85-bed nursing home from Green Lake Opco LLC and operate under a five- year lease; $3.9 million. Ⅲ Park Geriatric Village, Highland Park: Acquire 114-bed nursing home from Highland Park Opco LLC and operate under a five-year lease; $3.1 million. Ⅲ Redford Geriatric Village, De- troit: Acquire 98-bed nursing home from Redford Opco LLC and operate under a five-year lease; $2.8 million. THEY DON’T HAVE DELTA DENTAL. Applications received Ⅲ Harper University Hospital, De- troit: Add two operating rooms on the second floor of Harper’s Cardio- vascular Institute Surgery Center; $5 Give your employees access to two large networks of million. Ⅲ Children’s Specialty Center of contracted dentists and award-winning customer service. Michigan, Troy: Acquire and move the surgical service from DMC Surgery Learn more at deltadentalmi.com/dentaldonebetter. Hospital to a new, freestanding surgi- cal outpatient facility at 350 W. Big Beaver Road; $12.7 million. Decisions Ⅲ Botsford Hospital, Farmington: Replace 104 hospital beds and six op- erating rooms and add three operat- ing rooms in a newly constructed pa- tient wing; $160 million. Approved. 20150420-NEWS--0014-NAT-CCI-CD_-- 4/16/2015 4:58 PM Page 1

14 CRAIN’S DETROIT BUSINESS // April 20, 2015 Chase report: Detroiters’

2015UPCOMING skills gap must be closed

PARTNER EVENTS By Tom Henderson metropolitan region is 6.7 percent, counts for 33 percent of middle-skill [email protected] but it is 13 percent in Detroit — 5.5 demand, and many manufacturing J.P. Morgan Chase & Co. released percent for whites, 13.6 percent for occupations are expecting to grow a report last week detailing the mis- African-Americans and 10.3 per- at rates well above the national av- CEED match between the needs of em- cent for Latinos. erage in the coming years. 31st Annual Award celebration ployers in Southeast Michigan and The poverty rates in the city are For example, employment of ma- Keynote speaker Andre Taylor, founder and CEO, the skills of current job seekers in even more alarming: 40 percent for chinists is projected to rise here by 17 Taylor Insight Worldwide LLC Detroit. whites, 38 percent for African-Amer- percent by 2020, while the national April 23 • 5-9 p.m. The report was released as part of icans and 36 percent for Latinos. average is expected to remain flat. Suburban Collection Showplace, Novi the five-year, $100 million commit- From 2013 to 2014, openings in The median average wage for a mid- Visit MICEED.org or call (734) 677-1400 ment to Detroit’s economic recov- health care and manufacturing, the dle-skill manufacturing worker is ery that Chase announced last May. area’s largest industry sectors, repre- $22.40 an hour. Yet the report says 10th Annual Nonprofit Management Conference “Detroit’s continued economic sented 56 percent of new job post- job postings in various categories Hosted by the Troy Chamber of Commerce and its growth is tied to the quality of its ings for middle-skills jobs in Detroit. often go unfilled for 40 days or more. Non-Profit Network (NPN), presented by PNC Bank. workforce,” said Chauncy Lennon, The report defines middle-skill Helping Detroit city residents ob- Continental breakfast, networking, two breakout Chase’s head of workforce initia- workers as those with more than a tain well-paying middle-skill jobs sessions, lunch and two aft ernoon sessions. tives, in a news release. “This report high school degree but less than a must be a regional workforce devel- April 29 • 8 a.m.–3 p.m. seeks to help the middle-skill work- bachelor’s degree. opment priority, the report said. In Woodside Bible Church, 6600 Rochester Rd., Troy ers identify pathways to well-paying As of 2013, there were 321,700 order to meet employer demand, Troy Chamber members: $50; non-members: $100 jobs, which will expand the number middle-skill jobs in the region, ac- the report offers several recommen- Two or more attendees from the same organization of qualified workers and attract new counting for about 17 percent of all dations to address the skills gap: receive a $10 discount per person. Space is limited business opportunities to acceler- jobs. Ⅲ Develop a regional master plan and reservations must be made in advance. ate Detroit’s growth.” There were more than 207,000 to align regional workforce goals To register, call the Troy Chamber at (248) 641-3694 Despite the reduction of jobs and middle-skill jobs in health care and and outcomes to prepare Detroit or e-mail: [email protected]. For details, visit population in the past 10 years, the manufacturing, and more than residents for middle-skill occupa- www.troychamber.com and click on the Non-Profit demand for qualified workers in 5,700 of these types of jobs are ex- tions in high demand sectors. Network tab. Detroit exceeds the supply. pected to open every year through Ⅲ Encourage employers, educa- While roughly 12 percent of the 2018, in part because of an aging tors and community-based organi- CEO Luncheon Series residents age 25 or older in a six- workforce. zations to collaborate by building Featuring Rick Haas (R.P.), President & COO of county area in Southeast Michigan The report said about 22 percent an employer endorsed curriculum Mahindra & Mahindra, Ltd lack a high school diploma, 22 per- of all health care and manufactur- to effectively prepare residents to May 13 •11:30a.m. – 1:30p.m. cent of Detroit’s residents lack a ing employees are 55 years or older. secure middle-skill industry occu- Kingsley Inn, Bloomfield Hills. high school diploma or GED, in- According to the report, the me- pations in the region. cluding more than 55 percent of dian average hourly wage for mid- Ⅲ Align talent development in- Latino residents. dle-skill health care positions is vestments by public, private and Detroit Society for Human Resource Management And while unemployment rates $27.77, yet job postings often go un- philanthropic stakeholders with in- (Detroit SHRM) “Strategies to Create A Global in the region are well below their filled for months. The region’s living dustry focused vision and goals. Mindset and Build Cultural Competence” highs in 2009, the numbers are still hourly wage is $17.08. More details from the Detroit re- Speaker: Neal R. Goodman, Ph.D., Co-Founder & alarming. For example, the report As for manufacturing, the report port can be found at jpmorgan President, Global Dynamics, Inc. says that unemployment in the says that in the Detroit region, it ac- chase.com. In this highly-interactive session we examine why Cultural Competence (CC) has become the most significant emerging competency for domestic and global organizations. Learn how to apply CC to Crain’swins 16 Excellence in Journalism awards enhance your organization’s competitive advantage and develop an action plan to build CC in your Crain’s Detroit Business staff rector, for her display of 40 under 40 certificate of need regulations rely organization. members earned 16 awards for re- winners; Dagg also won second less on high numbers of operations May 18 • 5-8 p.m. • Westin Hotel, Southfield porting, design and headline writ- place, Page 1 design for “Detroit Rink in evaluating heart surgery pro- Detroit SHRM members: $45; non-members: $60 ing Wednesday night at the Detroit City.” grams. Greene also won third place Register at www.detroitshrm.org Society of Professional Journalists Ⅲ First place, personality profile: in breaking news for “Oakwood or call (248) 478-6498. annual Excellence in Journalism “He took on a cause, became a looking to sell?” a scoop on the pos- banquet. casualty,” former Lansing corre- sible sale of the Oakwood Health More than 200 awards were given spondent Chris Gautz’s story System. Let’s Put Southfield on the Map from more than 400 entries in print, about Frank Foster, a northern Ⅲ Second place, explanatory April 22 • 9-11 a.m. radio and online media categories Michigan legislator defeated in story: “Will auction build value for DeVry University, 26999 Central Park Plaza for work published in 2014. the Republican primary for back- housing?” Amy Haimerl’s story on www.southfieldchamber.com Crain’s was awarded first place ing an end to discrimination whether Detroit’s housing auction in the digital media presentation based on sexual orientation. would help raise appraisal values Ⅲ First place, general news Marketing & Sales Executives of Detroit (MSED) category for “Detroit Rink City,” the :“How for city homes. Ⅲ Second place, feature story: 23rd Annual Marketing & Sales Professionals report of the new Detroit Red Michigan lost grip on Method,” En- Amy Haimerl Golf Outing to Benefit MSED Scholarships Wings arena and surrounding de- trepreneurship Editor ’s “The Wright way to fund,” Senior Kirk Pinho Sherri Welch Golf and network with marketing and sales velopment. In that same category, and reporter ’s description Reporter ’s story on the professionals from our community AND make Crain’s 20 in their 20s awards sec- of how Michigan lost a manufactur- financial struggles of the Charles H. an important contribution to the future of our tion earned an honorable mention. ing plant to Chicago. Chris Gautz won Wright Museum of African Ameri- Other Crain’s awards, in the cat- second place in the category for can History. profession through scholarships funded from the Ⅲ proceeds. egory of newspapers with circula- “Pavement of partisanship,” which Second place, localization of a tion of less than 100,000: detailed how the Republican Legisla- national story: “The METrics of col- June 19 • 8 a.m.-4 p.m. Ⅲ Shenandoah Country Club, West Bloomfield First place, investigative report- ture directed road dollars to Republi- lege costs,” Kirk Pinho’s examina- Individual golfer: $160; foursome: $600 ing: “The cure for bogus bills,” re- can districts. tion of how the cost of the Michi- Corporate foursome: $750* porter Chad Halcom, for a story Ⅲ First place, headline writing: Se- gan Education Trust program, *includes foursome, hole sponsorship and signage about how metro Detroit has at- nior Editor Gary Piatek. Senior Edi- launched to lock in tuition rates for Sponsorships available from $200-$5,000 tacked Medicare fraud. Freelancer tor Bob Allen won second place in families, has become unaffordable For additional information and to register, visit Bridget Vis helped research the proj- the category. for most. www.msedetroit.org or call Meeting Coordinators ect, and Director of Digital Strategy ⅢSecond place, consumer/ Ⅲ Second place, sports reporting: at (248) 643-6590. Nancy Hanus created an interactive watchdog reporting: Senior Re- “Major donor Ross backs embattled database. porter Jay Greene, for “CON rules Brandon,” Enterprise Editor’s Bill Ⅲ First place, feature page design: de-emphasize open heart surgery Shea’s exclusive interview with Pierrette Dagg, creative services di- numbers,” which looked at how Stephen Ross. 20150420-NEWS--0015-NAT-CCI-CD_-- 4/16/2015 5:07 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 15 EXPANSIONS BorgWarner Inc., Auburn Hills, has opened a new facility in Chungju, DEALS South Korea, and an expanded manufacturing facility at its campus in Ramos Arizpe, Mexico. Website: borgwarner.com.

Unique Concepts Online LLC, Ann & DETAILS Arbor, has launched tranquiltem- Submit news to [email protected] po.com, a new online store, which offers water fountains. ACQUISITIONS & solution that addresses a variety of MERGERS copyright and costs concerns for NAME CHANGE Agree Realty Corp., Bloomfield universities. Website: Mid American Group Inc., Chica- Hills, announced that it closed on proquest.com. go, with an office in Livonia, an in- the acquisition of 10 retail proper- surance and risk management con- ties in seven states for an aggregate CONTRACTS sultant and broker for middle- purchase price of approximately G2 Consulting Group, Troy, a geot- market companies, has changed its $17.5 million. The recently closed echnical, geoenvironmental and name to Axion RMS Ltd. Telephone: deals include Taco Bell and Wendy’s construction engineering firm, has (248) 207-6374. Website: locations, a Jiffy Lube service cen- been selected by the Michigan De- midamgroup.com. ter, a KFC restaurant and a Dollar partment of Transportation as part of General store. Website: the team for the design and recon- STARTUPS agreerealty.com. struction of the I-75/University Great Lakes GrowthWorks, a new Drive interchange in Oakland strategy consulting firm, has Altair Engineering Inc., Troy, an- County. Websites: g2consulting opened at 220 S. Main St., Suite nounced that it has completed group.com, michigan.gov/mdot. 301, Ann Arbor. Telephone: (734) the acquisition of Multiscale De- 221-3860. Website: sign Systems LLC, New York, de- PolyFlex Products Inc., Farming- glgrowthworks.com. veloper of products focused on ton Hills, a provider of plastics, micromechanics, microstructur- urethane and rubber solutions for al optimization, and life predic- material handling and manufac- Deals & Details guidelines. tion of complex materials. Web- turing process applications, an- Email [email protected]. sites: altairhyperworks.com, nounced an engineering and lo- Use any Deals & Details item as a multiscale.biz. gistics agreement with Shanghai EC model for your release, and look for Global International Trading Co. to the appropriate category. Without ProQuest LLC, Ann Arbor, import and export engineering complete information, your item will through its affiliate Bowker, has ac- and logistics support and techni- not run. Photos are welcome, but we quired SIPX Inc., Palo Alto, Ca., cre- cal assistance worldwide. Website: cannot guarantee they will be used. ator of a digital course materials polyflexpro.com.

SPOTLIGHT PEOPLE JACK TALKINGTON: CFO Crestmark Bank

Jack Talkington ON THE MOVE has been promoted to the new posi- Send news items and photos to [email protected] tion of CFO at Crestmark Bank, ARCHITECTURE Group Inc., Farmington Hills, from Troy, and Kenneth Alder to project manager, mortgage banker, Quicken Loans has be- Fusco, Shaffer & Pappas Inc., Ferndale, Inc., Detroit. come a from project manager, Grissim Metz member Andriese Associates PC, Northville. HEALTH CARE of the ex- Also, Laura Cunningham to project Linda Fitzger- ecutive manager, from senior tenant coordi- ald-Mays to vice commit- nator, Taubman Co. LLC, Bloomfield president of tee. Hills; Jim DuRussel to project manag- quality and clini- Talkington Talk- er, from project manager/sales and cal outcomes, ington, marketing, Economides Architects, Botsford Hospital, 59, will be responsible for East Lansing; and Mechthild Heerde- Farmington overseeing Crestmark’s ac- Olind to project designer, from archi- Hills, from direc- counting department and tect, J Bradley Moore & Associates tor of clinical the interest rate risk manage- Architects, Ann Arbor. Fitzgerald-Mays outcomes. ment/funding and special projects areas. He previously CONSULTING HOSPITALITY was senior vice president of Robert Mangia- Nassima Goumeziane to director of special projects. pane to partner, food and beverage, Westin Book Talkington joined Crest- risk management Cadillac Detroit, Detroit, from com- mark in 2008 with the ac- practice group, plex director of banquets, Westin quisition of Commercial Capi- Cambridge Con- Fort Lauderdale Beach Resort/Sher- tal Lending. He most recently sulting Group, Troy, aton Fort Lauderdale Beach Hotel, launched the company’s from risk consult- Fort Lauderdale, Fla. SBA division and was inte- ant, Hartz Insur- gral in the acquisition of ance Co., Detroit. LAW Bloomfield Hills-based TIP Mangiapane Marko Belej to coordinator, tax Capital, both in 2014. He FINANCE practice group, Jaffe Raitt Heuer & will also maintain an office Mark Smith to chief marketing of- Weiss PC, Southfield. He is a partner in Baton Rouge, La. ficer, Northwestern Mutual, Troy, from at the firm. Talkington received his director business development, bachelor’s degree in ac- Quicken Loans Inc., Detroit. Meghan Kennedy Riordan to share- counting from Arkansas Tech holder, Dean & Fulkerson PC, Troy, University. David MacGuidwin to vice president, from member, Kerr Russell & Weber global sales and marketing, Falcon PLC, Detroit. 20150420-NEWS--0016-NAT-CCI-CD_-- 4/16/2015 5:08 PM Page 1

16 CRAIN’S DETROIT BUSINESS // April 20, 2015

WEDNESDAY Crain’s 2015 M&A Awards 11th Annual Economic Forum Break- Join Crain’s Detroit Business, in fast. 7:30-10 a.m. April 22. Michigan CALENDAR Association partnership with the Hispanic Chamber of Commerce. for Corporate Growth - Detroit Guests include Steve Arwood, CEO Corp.; and Nancy hillschamber.com. table of 10. Contact: Jordan Chapter, to meet the M&A and president, Michigan Department McLernon, presi- Twardy, (248) 398-3388; email: Awards winners and finalists and of Talent and Economic Development; dent and CEO, Detroit Diversity Luncheon. 11:30 [email protected]; website: hear the stories behind the top Alejandra Castillo, national director, Organization for a.m.-1:30 p.m. April 22. Women of eightmile.org transactions of 2014 from the Minority Business Development International In- Financial Executives International. dealmakers themselves. Agency; G. Mustafa Mohatarem, chief vestments. Speaker: Mary Liz Curtin, owner, Karmanos Cancer Institute’s 33rd It takes place 5-9 p.m. May 12 economist, General Motors Co.; and Westin Book Leon & Lulu, will speak on “Building Annual Dinner. 6:30 p.m. April 25. at the Troy Marriott. Tickets are John Rakolta Jr., chairman and CEO, Cadillac, Detroit. a Brand With Personality - The Barbara Ann Karmanos Cancer In- $100 in advance, or $95 for cur- Walbridge Aldinger Co. Cindy Goodak- $45 DEC mem- Story of Leon & Lulu.” Forest Lake stitute. Debra and Bob Ferguson, rent ACG members. Groups of 10 er, executive editor, Crain’s Detroit Duggan bers, $55 guests Country Club, 1401 Club Drive, senior vice president, global pub- or more are $95 each. Business, will moderate. Detroit of DEC mem- Bloomfield Hills. $35 for nonmem- lic policy, General Motors Co., and Preregistration closes May 11 Athletic Club, Detroit. $75 mem- bers, $75 nonmembers. Ticket sales bers, free for FEI Detroit chapter chairman of the GM Foundation, at 9 a.m. If available, walk-in bers, $100 nonmembers. Contact: end at noon April 21. Contact: (313) members. Contact: Sharon Kimble, chair the event. Proceeds support registration will be $120 per Barb Lange, (248) 792-2763, ext. 963-8547; email: info@econ (734) 277-7519; email: expansion of Karmanos’ intensive person. 101; email: [email protected]; club.org; website: econclub.org. [email protected]; website: care unit and development of a For information, contact website: mhcc.org. financialexecutives.org 24-hour Acute Care Clinic. Hank Kacey Anderson, (313)446-0300, CEO Insights. 11:30 a.m.-1 p.m. Winchester, anchor/reporter for [email protected]. Global Cities Initiative: Building April 22. Troy, Auburn Hills cham- UPCOMING EVENTS WDIV Local 4, will emcee. The De- and Sustaining a Globally Competi- bers of commerce. Speaker is 16th annual 8MBA Leadership Lun- sign Dome, Warren. $525. Contact: tive Region. 8-11:30 a.m. April 22. Richard DeVore, executive vice pres- cheon. 11 a.m.-2 p.m. April 24. Roxanne, (313) 576-8108; email: and morning and afternoon Detroit Economic Club. Featuring ident and regional president for De- Eight Mile Boulevard Association. [email protected]; website: breakout sessions. Speakers in- Sandy Baruah, president and CEO, troit and Southeast Michigan, PNC Moderated by Charlie Langton of karmanos.org/annualdinner. clude Jimi Plouffe, founder and Detroit Regional Chamber of Com- Financial Services Group. Oakland WWJ 950, featuring the “Big 4”: CEO, Momentum; David Zuza, fund merce; Mike Duggan, mayor, city of Center, Oakland University, Detroit Mayor Mike Duggan, Wayne 10th Annual Nonprofit Manage- development director, Troy His- Detroit; Bruce Katz, vice president Rochester Hills. $35 Troy Chamber County Executive Warren Evans, ment Conference. 8 a.m.-3 p.m. toric Village; Michelle Wooddell, and founding director, Metropoli- members, $45 nonmembers. Con- Macomb County Executive Mark April 29. Troy Chamber of Com- president and CEO, Cobblestone tan Policy Program, the Brookings tact: Rebecca Wiles, (248) 853-7862, Hackel and Oakland County Exec- merce and its nonprofit network. Solutions LLC and professor at Institution; Rodrick Miller, president email: rwiles@auburnhills utive L. Brooks Patterson. $60 in ad- Conference includes continental Grand Valley University; and Mark and CEO, Detroit Economic Growth chamber.com; website: auburn vance or $70 at the door, $500 for a breakfast and lunch, networking Geary, corporate communica- tions, Beaumont Health System; others. Woodside Bible Church, Troy. $50, Troy chamber mem- bers, $100 nonmembers. Contact: (248) 641-3694; email: jody@ troychamber.com; website: troychamber.com.

Networking Reception. 5:30 p.m. April 29. Detroit Regional Cham- ber. Mark Hackel, Macomb County executive, is the keynote speaker. $10, or $25 at the door, for mem- bers. Nonmembers pay $590 and cost includes membership. Con- tact: Maggie Oldrenburg, (313) 596-0482; email: moldenburg@ detroitchamber.com; website: 2 , 7 0 0 M I L E S O F detroitchamber.com/events. Energy Conference & Exhibition H I G H - S P E E D M I C H I G A N 2015. 8 a.m.-3 p.m. May 5. DTE Energy and the Engineering Soci- ety of Detroit. Christopher McGill, vice president of policy analysis, American Gas Association, is the keynote speaker. Highlights in- clude a focus on technology, in- dustrial, commercial, financial and construction; energy-related product and service exhibits; recognition of energy-efficient initiatives; and a fleet of new and classic vehicles. Suburban Collec- tion Showplace, Novi. $85 ESD members, $100 nonmembers, or 123Net has a high-speed fiber optic network stretching 2,700 miles across Michigan, and we’re not stopping anytime soon. $154 for nonmembers who at- We’re always ready to go the extra mile, ensuring Michigan tend and join ESD. Contact: businesses have access to reliable, high-capacity connectivity. Leslie Smith, (248) 353-0735, ext. 152; email: [email protected]; web- site: esd.org.

Calendar guidelines. Visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” YOUR BACKBONE FOR BUSINESS from the drop-down menu that will appear. Fill out the submission form, FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events. 20150420-NEWS--0017-NAT-CCI-CD_-- 4/17/2015 4:00 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 17 NONPROFITS, from Page 3: New rules expand liability protection for board members

The new amendments don’t pro- A closer look at nonprofit rule changes “Now whether they’re a volunteer or tect against suits brought by em- not, they fall within the same protec- ployees for claims such as employ- Amendments to the Nonprofit Corporation Act codify some of privacy concerns or if it would harm the organization to tions as directors on the board elect- ment discrimination or wrongful current practices and also enable nonprofits to make other release it. For example, those in advocacy groups may want ed by (condo)co-owners. They have discharge, he said. changes. Many of them do not take effect automatically, to keep private the names of individual members to protect closed the loophole to be vulnerable But not everyone sees the broad- though. Nonprofits may need to amend their bylaws to adapt. them from harassment. for their acts or omissions while they er protections as a good thing. The changes would: Provide for a quorum of a nonprofit board or a board owned the condo association.” Robert Meisner, founder of The committee to be as small as one third of the membership. Steve Sowell, principal of Steve Expand liability protection for nonprofit directors to Meisner Law Group PC in Bingham Sowell & Associates PLLC in Mt. include paid directors and protect against monetary Permit nonprofits organized on a membership basis with Farms and an ex- Clemens, said he doesn’t see that the damages for all negligence. 20 or more members to approve mergers, assets sales, pert in condo- dissolutions, among other things, by a majority of the expanded liability protection adds Under the new law, nonprofit directors have liability only minium law, be- members voting rather than by a majority of members much to the mix for condo associa- for instances of intentional, self-serving actions or those lieves the entitled to vote. tions. He believes directors could still expanded protec- made to intentionally hurt an organization. While many be sued for breach of fiduciary duty. tions will thwart nonprofits do not pay board members, some do, including Authorize the removal of directors in a directorship “All the amendments have done, condo owners’ at- about a third of private foundations, said Duane Tarnacki, nonprofit only for cause, so that minority opinions aren’t in my view, is throw open indemni- tempts to recoup a member in the Detroit office of Clark Hill PLC. being removed without a reason. Directors appointed by a fication from volunteer directors to third party can be removed by that third party with or damages from Among them are the Kresge, Skillman and William all directors,” Lowell said. “And for without cause. Robert Meisner: developers over Davidson foundations. And other local nonprofits condo associations, it’s rare that New rules will hurt construction is- including NSF International, Altarum Institute, the Permit directors or members to confer certain board board members are paid.” condo owners. sues, misman- National Association of Investors Corp.,dba powers to someone other than the board, such as a parent Kenneth Neuman, founding agement of the Better Investing, also compensate directors. health system that wants to reserve power over a shareholder at Neuman Anderson P.C. association and other financial issues. subsidiary hospital board, for example. in Birmingham, echoed the thought That’s because the boards of new Enable private foundations to have as few as one that broader protection is needed to Enable any charitable purpose nonprofit to include condo developers typically are director rather than three as required for other nonprofits. attract talent to nonprofit boards. “Of “foundation” in its name, rather than just those formed to seeded with employees of the de- Enable nonprofits to merge with a limited liability course, if there’s gross negligence or receive, administer and pay funds for charitable purposes. veloper until enough units are sold company. This enables, for example, a nonprofit that sets intentional misconduct then I would to transition the board to co-owner up an LLC to own a building to merge it into the parent Require attorney general approval for nonprofits for agree a board member ... shouldn’t be representation, Meisner said. nonprofit if it wanted to own the building directly or sell it mergers and conversion to a different type of corporation, afforded indemnification.” In the past when issues arose, he and put the cash back into the nonprofit. Charitable in addition to dissolution. But as Meisner points out, the lia- has sued the limited liability compa- 501(c)(3) nonprofits must have consent from the attorney Enable membership organizations, such as trade bility exception for gross negligence ny that developed the condo project general. associations, country clubs and social clubs, to vote is no longer spelled out in the law. and the employee directors of the Regulate nonprofit distributions and transfers by the through mail, email, online or in person. This is already “To the extent it’s unclear nonprofit association, arguing that Nonprofit Corporation Act, not the Uniform Fraudulent common practice. whether acts of gross negligence are those directors have conflicts of inter- Transfer Act. subject to indemnification ... it will est when it comes to identifying con- Permit nonprofits to employ physicians and other likely wind up a question in the struction issues or setting monthly Allow membership and stock nonprofits to limit members of “learned professions” such as physicians and courts, and the courts will have to fees that cover maintenance. members’ access to certain corporate information because lawyers. This too is common practice. look at what the legislative intent Through that route, any monetary was,” Neuman said. damages awarded would be paid by officers liability insurance. were liable for their so-called acts of fiduciary duty” as directors of the Sherri Welch: (313) 446-1694 the insurers providing directors and “Previously, developer designees and omissions ... and any breaches condo association, Meisner said. Twitter: @SherriWelch JOB MARKET REAL ESTATE FRONT PLACE LUXURY PROPERTY WATERFRONT PROPERTY POSITIONS AVAILABLE BUSINESSES FOR SALE SANDUSKY BEACH HOUSE Vacation Rental. 4 Bdrms/3 Full BA. Private Beach in CITY OF TAYLOR Front. Sandusky Bay in Back w/private dock. 2.7 Miles from Cedar Point. Fully Equipped Kitchen. Employment Opportunities MARINA & BOAT DEALERSHIP Washer/Dryer. Gas Grill. Wifi. Large House. 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18 CRAIN’S DETROIT BUSINESS // April 20, 2015 Tech projects take Tome Inc.from seed to flourishing

By Tom Henderson Tome would focus on products for scale, at the Consumer Electronics [email protected] the Internet of Things. Late last year, Show in Las Vegas in January and was Less than a year after Royal Oak- Quicken Loans is it licensed technology to Human- ntrigued by the technology. based Tome Inc. was launched with buying 20 Humanscale scale, which makes what are called She said she was familiar with sit- a seed round of $250,000 to try to desks that incorporate sit-stand desks, a fast-growing line stand desks since all of Quicken’s carve out a niche in what has be- Tome Inc. sensors and that allows workers to take breaks workstations in Detroit, about come a hot tech sector — the Inter- will evaluate how from sitting all day by raising their 1,300, have them. net of Things — the company is employees use and like desks and standing awhile. “I’m always looking for new tech- profitable, has large customers and them after 90 days. In 2014, a New York Times survey nology we can use, not just for the will be able to fund rapid growth out of related studies showed convincing sake of cool, but for the sake of of revenue, says CEO Jake Sigal. evidence that spending most of your function.” Tome is working on projects with day sitting puts you at an increased Price said the sensor-based track- Detroit-based Quicken Loans Inc.; risk for obesity, diabetes, heart dis- ing can boost company wellness pro- Humanscale Corp., a large New York ease, cancer and early death. grams and give management feed- City furniture maker; and Dear- Tome’s technology keeps track of back on how their employees are born-based Ford Global Technologies the time employees spend stand- using the equipment or can be en- LLC. ing, totals the extra calories they couraged to use it more effectively. The first project Tome did with burn while doing so and sends visu- Gibson said Humanscale is Ford Global involved designing the al reminders to their computer launching three other pilot projects sensors and hardware that were the screens if they wish. now and 10 more in June, all with brains behind an electric bike that The system can even send data to large customers. won the Best Product-Gadget fitness trackers such as Fitbit. Sigal said phase one of Tome’s award at the Mobile World Congress The combination of furniture growth strategy is to sell into the of- in March. (See story, Page 3.) [HUMANSCALE CORP.] and sensors will be marketed as fice furniture market. He said the sec- Sigal said the company had rev- OfficeIQ when Humanscale formal- ond and much larger phase, poten- enue of $450,000 in nine months last vestment from the InvestMichigan! With the culture of Ford moving for- ly launches the products in July, fol- tially, will be selling licenses to year and projects $1.5 million this Growth Capital Fund. ward, this is part of building our net- lowing NeoCon 2015, a three-day companies on a per-employee recur- year, which he says allows it the luxu- In 2013, Livio was sold to Ford work of entrepreneurs to work with.” trade show in Chicago in June that ring revenue basis to monitor behav- ry of being able to grow without him Motor Co. for an amount described Tome uses a combination of is North America’s largest interior ior at work and help manage well- and his co-founder, company Presi- as less than $10 million, and Sigal and wireless sensors and software for a design show and conference. ness and health care programs. dent Massimo Baldini, having to di- Baldini soon left to start Tome. variety of potential applications as it Tome and Humanscale have “If phase two takes off fast lute their equity by raising a round of “If you go back to the Ford culture markets itself as an early member of launched a pilot project at Quicken enough, we might have to take on venture capital, although that still of yesteryear, if the founders had left the Internet of Things, a term for the headquarters. Quicken is buying 20 venture capital to fund growth,” could happen. a company you bought, you’d say, ‘I interconnectivity of sensors, de- Humanscale desks that use Tome’s said Sigal. “I’ve been in contact with Baldini and Sigal previously were can’t believe they left the Ford family, vices and cloud-based data storage. sensors and will evaluate how em- local VCs to let them know what partners at Livio Radio, a developer let’s give them the silent treatment Examples would be wearable tech- ployees use and like them after 90 we’re up to, and they’re interested.” of in-vehicle connectivity software. and not work with them,’ ” said Bill nologies that monitor such things as days. Tome has grown from three em- Sigal founded Livio in 2008 with Coughlin, president and CEO of Ford blood pressure and pulse rates and Melissa Price is CEO of dPOP!, a ployees last May to eight. Sigal said $10,000 borrowed from his parents. Global Technologies. transmit data to doctors and smart commercial interior design firm he plans to hire 12 more over the In 2010, the same year Sigal was “But we’re delighted to work with home appliances. Or bikes that alert that is part of Detroit-based Rock next 18 months. The company is named to Crain’s 20 in their 20s, the Jake and Massimo,” he said. “They riders to cars coming up from behind. Ventures LLC, and is director of fa- now in an incubator on East Fourth company got an undisclosed in- more than met our expectations. Last May, Sigal told Crain’s that cilities for Quicken. Street in Royal Oak, but it plans to She said she came across a booth move into 3,400 square feet of space shared by Sigal and Chris Gibson, the farther east on Fourth in June. Ⅲ vice president of marketing and Tom Henderson: (313) 446-0337 product management at Human- Twitter: @TomHenderson2

BIKE, from Page 3: Are 2-wheelers in Ford’s future?

The bikes also have ultrasonic where they are going. For example, sensors in the rear that warn the drive your car to the nearest bus or rider a car is approaching from be- train station, carry your folded bike hind by setting off vibrations in the on board, get off at the appropriate handlebars, and warns the driver by exit and pedal the rest of the way. tuning on lights at each end of the Since the prototypes went over so handlebars. big at the congress, does Ford now The MoDe:Me was named best become a bike maker? product gadget of the thousands “We’re debating that internally,” displayed at the huge Mobile World said Coughlin. “What’s best for Ford? Congress in Barcelona, Spain. The We could license it out. Or we could event had about 1,900 exhibitors come to the conclusion that we can and upward of 90,000 attendees. and should make the bikes our- A heavier-duty version for bike selves. I think it’s most likely going to couriers, called the MoDe:Pro, was be a licensing solution, but we’ll see.” Friday, June 12, 2015 built by Ford in-house. Coughlin said Ford had filed Both came equipped with 200- quite a few patent applications on MGM Grand Detroit watt motors and 9-amp-hour bat- the bikes. #MCMOE2015 teries and were designed as part of Coughlin said he is working with 2015 Ford’s Smart Mobility Program. Tome on another project called Info They are envisioned as part of what Cycle, which will be a small sensors- Coughlin calls multi-modal trans- based kit that will attach to a bike NOW ACCEPTING SUBMISSIONS! portation, which he thinks will be and wirelessly collect and transmit Submit by mail, visit www.michiganchronicle.com big in urban areas of the future. a wide range of data, such as wheel People will use a combination of speed, acceleration and altitude. or email us at [email protected]. cars, trains, buses and portable bikes The purpose would be to gather Michigan Chronicle, 479 Ledyard, Detroit, MI 48201, (313) 963-5522. to get to their destinations. Smart- data to decide how bikes can meet phone apps will tell them how to future transportation needs. Ⅲ TH SUBMISSION DEADLINE: APRIL 24 5PM take what form of transportation Tom Henderson: (313) 446-0337 available in which city to best get Twitter: @TomHenderson2 20150420-NEWS--0019-NAT-CCI-CD_-- 4/17/2015 5:07 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 19 BRUSH PARK,from Page 1: Developers see rec center project as catalytic piece

If done right, and with the proper conjunction with some townhomes timing, redevelopments of an 8.4- and some single-family close togeth- acre swath of the Brush Park neigh- er similar to what you would find in borhood to the west of the Brewster neighborhoods around downtown Wheeler site and the 18 acres of land Birmingham.” north of it best known as the site of Seeking pioneers the former Brewster-Douglass housing projects — could reinvigorate that Unlike other prominent down- section of town, real estate experts town multifamily developments in say. recent years, the knock against the This could be the turning point, apartment project, is that, however they say, for that pocket of town to ideal the location, it’s still a largely bar- see more than 1,000 new rental units, ren area. Yet overall, the blank-slate commercial space and other uses. nature of the area is ideal for develop- John Rhea, managing partner at ers, said Herbert Strather, a developer Rheal Capital Management LLC, a co- who is CEO of the Strather Academy developer of the 150 Brewster and Strather Associates LLC in Detroit. Wheeler apartments, said that even “It’s probably the very best possible though there isn’t much in the area scenario,” he said. “You have no re- now, there will be demand for the straints — just your imagination.” residential units once constructed. Black, who said he sold a signifi- The area’s prime location and po- cant number of tential are already clear to many homes in Brush people, he said. [UNION JOINTS LLC] Park in the mid- “There are urban pioneers, people The 1950s-era basketball court inside the Brewster Wheeler Recreation Center will make way for a restaurant. 2000s, before a lot who can see the vision and are excit- of the infrastruc- ed about getting in early,” he said. Baron Salazar De- “The rollout of these well, said Robert Gibbs, managing ture improve- Rheal Capital is one of the four real velopment Inc., the three development principal of Gibbs Planning Group Inc. ments were estate and restaurant investors work- developer behind He estimated multifamily demand made, said peo- ing on the 6.2-acre Brewster Wheeler the $55 million opportunities in fairly could support construction of be- ple will overlook redevelopment project. The others first phase of the tight succession is tween 150 to 200 residential units Austin Black: the vacant land- include Crain Communications Inc. Ex- Orleans Landing per year in the area. Housing “can’t be scape for the time ecutive Vice President/Director of project along the very Gibbs, whose Birmingham-based all rentals” being. Corporate Operations KC Crain, Detroit River. positive urban retail planning company re- “A lot of people restaurateur Curt Catallo and Livo- Richard Baron: Having three cently did work near the three sites, saw the potential based on where it nia-based Schostak Bros. & Co. Sooner or later, fresh develop- because said units would appeal to students was located. That was before M-1, be- demand will be there ments coming and employees at Wayne State Uni- fore Whole Foods.” Delayed start any one of online in a rela- versity and other nearby employers. And Rhea, a Detroit native who According to John Roach, com- tively short period of time would them, or Data he provided from ESRI Inc. graduated from the University of Detroit munications director for Mayor Mike bode well for the neighborhood, any two of shows that although population in Jesuit High School before receiving de- Duggan, a request for proposals to which was once home to some of the the three-mile radius surrounding grees from Wesleyan University in Mid- develop the adjacent vacant Brew- city’s wealthiest families, like the them, on their own, the developments is expected to fall dletown, Conn., and the Harvard Busi- ster-Douglass site, owned by the De- Whitneys, the Kahns and the Hud- would be noteworthy from 91,621 last year to 89,405 in ness School, said the development, troit Housing Commission, is expected sons, real estate experts said. but not really 2019, the percentage of households which will have studio, one-bedroom to be issued this spring. The commis- “The rollout of these three devel- making at least $35,000 is expected and two-bedroom units, is a way for sion would issue the RFP; demolition opment opportunities in fairly tight transformative.” to increase, with the largest bumps people to get in on the ground floor of on the former public housing build- succession is very positive because being those making $75,000 to a budding area. ings was completed in August. any one of them, or any two of them, Eric Larson, Downtown Detroit Partnership $99,999 (3.9 percent up to 5.4 per- “Neighborhoods take time. I lived In addition, development propos- on their own, would be noteworthy cent) and $100,000 to $149,999 (2.2 in Harlem and watched it go through als for the largely vacant chunk of the but not really transformative,” said Rhea on the plan for 150 housing percent to 3.6 percent). its transition,” he said. “Yes, they Brush Park neighborhood — bound- Eric Larson, founder, president and units in a $37 million development But the area can’t be limited to might have to look at an open field ed by Mack Avenue, Beaubien Street, CEO of Bloomfield Hills-based Lar- on the site at I-75 south of Wilkins. multifamily rental housing, said now, but over time, they will also take Woodward Avenue and the I-375 son Realty Group and CEO of the In addition, it will cost about $3 Austin Black II, president of City Living in watching that develop and take service drive — are under considera- Downtown Detroit Partnership. million to develop a 1-acre swath of Detroit, a Detroit-based real estate pride and say, ‘I was one of the first tion. “All three together are transforma- green space on the property. brokerage firm. people who moved here.’ ” Ⅲ Roach declined to specify a time tive because of the density it creates.” Ann Arbor-based Quinn Evans Ar- “It can’t be all rentals,” he said. Kirk Pinho: (313) 446-0412 frame for when the chosen devel- chitects is designing the project, “Maybe some midrise buildings in Twitter: @kirkpinhoCDB Community, historical ties oper would be named. and Detroit-based Jenkins Construc- This isn’t the city’s first go-round Last Tuesday marked the press tion Inc. is the general contractor . At trying to jumpstart Brush Park rede- conference and community an- least 51 percent of the construction velopment. Past efforts have had nouncement on specifically the and rehab work will be handled by marked starts and stops dating back Brewster Wheeler piece. Union Joints Detroit businesses, and a number of over a decade. Most recently, in No- LLC, a development group including community tie-ins are planned, vember, the city extended the bid- Crain and Catallo, plans a new such as a kitchen incubator; culi- ding deadline on the August RFP for restaurant and meeting space in the nary arts training that will give prior- the two parcels by a month to Dec. 52,000-square-foot former recreation ity to participants in the Alternatives 15, 2014. center in a $10 million development. for Girls nonprofit — which supports The city has spent more than $39 Crain, also group publisher of young women at risk of homeless- million in that area since 2001 on Automotive News, Autoweek, Crain’s ness; and space for biking nonprofit things like infrastructure, demoli- Chicago Business, Plastics News, Slow Roll Inc. headquarters. tion, land acquisition and prep Rubber & Plastics News and Tire Waves of construction work priming it for redevelopment. Business, co-owns the Vinsetta There are 47 parcels in the Brush Garage restaurant in Berkley with The construction approach on Park RFP; four of these have houses, Catallo. Catallo also is owner of the the residential side, however, is ex- and all are considered historic. Clarkston Union and Union Woodshop pected to be less “Big Bang” and But with the Brewster Wheeler site restaurants in downtown Clarkston. more of a staged rollout. redevelopment, that makes the The restaurant is expected to be Constructing what Larson esti- Brewster-Douglass land and the 7.5- built on the center’s 1950s basket- mated would eventually be north of acre and 0.9-acre parcels all the more ball court — and a boxing ring and 1,000 residential units on the three attractive to other developers, real gym also will be incorporated into sites too quickly wouldn’t be wise estate experts say. the design. The center is where Joe because they couldn’t be leased in a “There will be demand at some Louis once trained and the Harlem short time frame. point, whether it’s right away or not,” Globetrotters once played. “You need to space them out a said Richard Baron, chairman and Meanwhile, Livonia-based little bit,” Larson said. CEO of St. Louis-based McCormack Schostak Bros. & Co. is working with But a phased rollout could work 20150420-NEWS--0020-NAT-CCI-CD_-- 4/17/2015 4:12 PM Page 1

20 CRAIN’S DETROIT BUSINESS // April 20, 2015 SOCCER,from Page 3: Detroit fans, corporate sponsors respond to the pitch of Le Rouge

is American soccer’s governing body. Unlike foreign leagues, it takes Soccer impresario still looks to launch expansion pro team in Detroit money rather than wins on the soc- cer field to move up to a larger soc- Detroit City FC isn’t the only built. We are more meetings scheduled in April MLS, and many are affiliated with cer league in the United States. local soccer club with its eyes on meeting weekly as part of the land acquisition ap- MLS clubs as developmental teams. USL teams typically have a $1 higher levels of pro soccer. with the neces- proval process. The USL is seeking to become a sec- million annual operating budget, Longtime metro Detroit soccer sary principals The USL doesn’t disclose finan- ond-tier league itself within the soc- said Mann, whose full-time job is as impresario Dan Duggan an- that need to cial details about expansion teams, cer hierarchy, the Post reported. a Detroit-based lobbyist with Lans- nounced in April 2014 he had pre- help get this but USL Pro teams reportedly have The USL added 11 clubs for this ing-based Michigan Legislative Con- liminary approval from the Tampa, done, but as you been bought for more than season, fielding 26 teams in 2015. sultants. NASL clubs cost $2 million Fla.-based United Soccer Leagues to very well know, $500,000. Duggan owns the semipro to $3 million to operate. launch a United Soccer League pro- Dan Duggan: things don’t get The new Detroit team would Michigan Bucks in Pontiac and is a This season, Detroit City will fessional expansion team in Detroit. Plans for new team done in the city cost about $2 million to operate former USL Premier Development have a $400,000-plus budget, or Planning and financing work be- delayed until 2016 in rapid fashion annually, Duggan told Crain’s in League executive of the year. more than double last season, he hind the scenes delayed the Detroit so we are strug- April 2014, and he estimated a The USL Premier Development said. Ownership has said the team USL expansion at least a year, to gling to get people to make the 5,000-seat stadium in the city League is the highest level of ama- is profitable. 2016. necessary commitments.” could be built for up to $5 million. teur soccer in the U.S., and is a step The new money comes from new “I am still planning on launch- He declined to name potential The USL is the third-tier profes- below the USL. It acts as a USL corporate sponsors, such as the ing the team in March of 2016, and investors. His intention is to build sional soccer league in the United feeder league. Metro Detroit Chevy Dealers Local the league is excited to add the De- a 5,000-seat stadium. States and Canada, under only the Duggan’s Bucks club, which he Marketing Association and Henry troit market to the pro soccer “We have stadium renderings second-tier North American Soccer founded in 1995, won the USL Pre- Ford Health System each signing level,” Duggan said via email. done, and that is helping move the League and top-tier Major League mier Development League cham- one-year deals to put their logos on “The only unanswered question project along, but not to my pace,” Soccer. pionship last year. the club’s jerseys in 2015. remains where the stadium will be he said, adding that he has three Some USL squads are owned by — Bill Shea Troy-based Flagstar Bank also signed on this season as the club’s official bank, and is underwriting its higher leagues use paid players. Detroit City FC Facts self within the soccer hierarchy, the community outreach efforts. Le Rouge, as the Detroit club is Post reported. The team sold its entire allot- nicknamed, averaged 2,878 fans per The NASL has average annual ment of $50 season tickets ($65 with game last season at Cass Tech, in- salaries of $15,000 to $30,000, with a 2015 season scarf) for its seven- cluding a season-high 3,398 on July some players earning up to game home schedule at Cass Tech 11 against the Fort Pitt Regiment. $100,000, according to a report from High School. The club also plays a Detroit’s average isn’t incredibly professional soccer networking number of friendly, or non-league, far off the higher-level league aver- service Fieldoo. games during the season. ages: USL clubs averaged 3,114 fans An outside observation The team also makes money per game in 2014, and NASL teams from selling clothing, caps, scarves, averaged 5,409 per game. Soccer industry observers praise stickers and other goods from its MLS clubs last year averaged Detroit City’s management of its online store at DetCityFCstore.com. 19,151 per game, the biggest aver- growth and business plans. It also raised prices for merchandise age in the league’s 19 seasons. “They’ve been approaching it the and tickets this season. “We’ve had talks about building right way. They recognize that soc- The new cash is being spent to our own facility. It’s a tougher sell cer is not only a business, or a fran- improve the soccer club, ownership than rehabbing an existing facility, chise. It’s a club,” said Birmingham said. but it’s on the table, as well,” Mann native Greg Lalas, vice president of “It allows us to scale up, to boost said. “We’ve kind of outgrown content for MLS’ digital arm and our staffing and capabilities,” Mann where we’re at now.” editor-in-chief of MLSsoccer.com said. Cass Tech can seat about 2,500 from his home in Brooklyn, N.Y. The team’s lone year-round full- for a game. Mann said the club had “The ownership group is very time staffer is general manager to turn away 300 or 400 fans at some smart and careful and they don’t go Donovan Powell, hired in 2013 to games last season. [JOHN DEBOER] into anything blind,” said Lalas, a run the business side of the club. DCFC is considering playing at Co-owner Sean Mann said that last year, Detroit FC had to turn away up to 400 former MLS player and brother of The influx of money has allowed the Keyworth Stadium in Hamtramck fans at some of its games at Cass Tech High School. soccer hall-of-famer Alexi Lalas. team to hire an in-season social in 2016, and is studying the stadi- “They want to make sure they do it media coordinator, Mann said. um’s suitability and physical status, Ⅲ All Detroit City home games this year will be live-streamed on the team’s right, and stay true to their ethos of The club uses a dozen paid staff co-owner Alex Wright said. website, DetCityFC.com. being part of the community and members for games. Other potential locations were Ⅲ The club’s co-owners are Sean Mann, who founded the semipro Detroit City city of Detroit.” not disclosed. He’s met with Detroit City’s own- More games, more money Futbol League in 2010; AlexWright; David Dwaihy; Ben Steffans; and ership, and even buys season tickets Fans and players Todd Kropp. DCFC ownership said the club every year to support the club de- Ⅲ For the second consecutive year, the club has qualified to play in the U.S. needs to be on the field more often Detroit City FC caught on with spite never having attended a game. Open Cup, a 91-team tournament that includes the top amateur clubs in in order to move up. what owners say is a hipster fanbase “I wanted to support it. It’s been addition to the professional organizations atop the U.S. soccer organization The team plays a 14-game regu- from both the city and suburbs, but really fun to watch from afar, at pyramid. DCFC will play the Michigan Bucks, in the inaugural meeting lar-season schedule, with half on also includes suburban parents and least,” he said. between the clubs, at 7:30 p.m. May 13 at the Bucks’ home field, Ultimate Soccer the road. It finished 8-3-3 last sea- kids. Lalas cautioned that turning Arenas in Pontiac. Semipro clubs such as Detroit FC and the Bucks enter in the son, good for second place in the Fueling the popularity is the professional will be a major step, first round of the cup, while the pro squads, including 17 Major League Soccer NPSL Midwest Region’s Great Lakes club’s success: It’s 24-5-9 in its first and will require an expanded teams, begin play in the fourth round. The tournament dates to 1914. MLS clubs West Conference. Lansing United three seasons, and won its division front office that can deal with soc- have won it every year but one since league began play in 1996. won the conference. two seasons ago but lost in the divi- cer’s unique business practices, “Our biggest holdup right now is sional finals. Ⅲ The organizational pyramid of the seven-level, Chicago-based United States such as exchanging players from we just don’t play enough games,” The winning is thanks to a roster SoccerFederation has three professional divisions, with the 20-team Major overseas. Mann said. “That kind of revenue that includes a number of college, League Soccer at the top. Detroit City’s league, the National PremierSoccer “It makes sense that Detroit City stream, with our fan base in this amateur and professional veterans. League, is one of the two highest-level amateur leagues in the pyramid. The FC takes the next step. It’s logical. market, is very doable.” Former Detroit City players in MLS federation is the U.S. system’s governing body for both amateur and pro soccer. There are clubs that start in some of USL clubs play a 28-game sea- include Adam Bedell of the Colum- Unlike European soccer, U.S. teams do not jump up or down levels based on winning. the leagues at the lower levels that son, split between spring and fall, bus Crew and Kofi Opare of D.C. — Bill Shea don’t have such a fervent fan base,” and NASL clubs play a 28-game sea- United. he said. son from March to September. Ex-Crew forward Knox Cameron “It’s a big leap going from semi- The Detroit City FC business is on this year’s Detroit City roster. the developmental league. league’s salaries range from $12,000 pro to a real professional situation. model plan is to increase revenue NPSL rosters consist of unpaid An above-average USL player is to $40,000 a season. All of a sudden, it becomes a little by playing in a professional league, players, mainly high school, colle- estimated to earn $2,000 a month, Some USL squads are owned by more of a business. Players are which ownership believes will in- giate and former professional ath- with some making $3,000 and Major League Soccer, and many are under contract. You can pay for bet- crease ticket sales and ancillary rev- letes. Because they’re considered more, The Washington Post report- affiliated with MSL clubs as devel- ter quality.” Ⅲ enue. It also will increase costs be- amateurs, athletes maintain their ed in March, while Sports Business opmental teams. The USL is seeking Bill Shea: (313) 446-1626 cause unlike the semipro NPSL, the college eligibility while playing in Daily reported in 2013 that the to become a second-tier league it- Twitter: @Bill_Shea19 20150420-NEWS--0021-NAT-CCI-CD_-- 4/17/2015 5:02 PM Page 1

CRAIN’S DETROIT BUSINESS // April 20, 2015 21 PROTON,from Page 1: McLaren, Beaumont plan to open centers CRAIN’S DETROIT BUSINESS cancer and cancers of the head and surers say they will cover some pro- costs. neck, although the lack of peer-re- ton therapy, including Priority, HAP A 2013 study on Medicare pa- www.crainsdetroit.com viewed clinical trials has been criti- and Blue Cross. tients published in the Journal of the Editor-in-Chief Keith E.Crain National Cancer Institute Group Publisher Mary Kramer,(313) 446-0399 cized. However, national insurers Aetna found pro- or [email protected] Nationally, 13 proton beam thera- and Cigna Corp. have announced they ton therapy cost 70 percent more Associate Publisher Marla Wise,(313) 446-6032 py centers are operating, and at least will not cover proton beam therapy for than photon therapy. or [email protected] Executive Editor Cindy Goodaker,(313) 446-0460 12 more are in development, accord- prostate cancer. Cigna will pay for eye “We will lower the costs because or [email protected] ing to the National Association for cancer only. United Healthcare will the treatment periods will be much Managing Editor Jennette Smith,(313) 446-1622 Proton Therapy. Depending on the cover only skull-based tumors, abnor- less,” said McLaren’s Gayar. or [email protected] Director, Digital Strategy Nancy Hanus,(313) 446-1621 size of the center, costs range from mal connections between arteries In 2008, the Economic Alliance for or [email protected] $30 million to more than $200 mil- and veins in the brain, and some pedi- Michigan opposed plans for several Managing Editor/Custom and Special Projects lion. atric cancers. proposed proton beam centers, pri- Daniel Duggan,(313) 446-0414 or [email protected] Priority Health officials told marily because of the high con- Senior Editor/Design Bob Allen,(313) 446-0344 ‘Nothing can beat it’ or [email protected] Crain’s that the insurer covers some struction costs and a lack of evi- Senior Editor Gary Piatek,(313) 446-0357 Hesham Gayar, M.D., chairman of proton beam therapy services when dence of superior treatment over or [email protected] radiation oncology at McLaren’s traditional radiation treatment is traditional cancer therapies. Web Editor Kristin Bull,(313) 446-1608 or [email protected] Research and Data EditorSonya Hill,(313) 446-0402 Great Lakes Can- difficult or impossible. Concerns on cost, use or [email protected] cer Institute in Blue Cross will pay for proton ther- Web Producer Norman Witte III,(313) 446-6059, Flint and medical apy in a limited number of condi- Besides the earlier Beaumont [email protected] Editorial Support (313) 446-0419; director of the tions. They include uveal melanoma, plan, several other hospitals, led by YahNica Crawford,(313) 446-0329 proton center, [BEAUMONT HEALTH] a rare cancer of the eye; chordoma, a Detroit-based Henry Ford Health Newsroom (313) 446-0329,FAX (313) 446-1687 said McLaren Beaumont Health plans to open its cancer in the System and the Ann Arbor-based TIP LINE (313) 446-6766 plans to conduct $40 million, single-room proton beam base of the skull, University of Michigan Health Sys- REPORTERS center in Royal Oak in spring 2017. tem Jay Greene, senior reporter Covers health care,insurance, clinical and basic neck and lower , had considered building a pro- energy,utilities and the environment.(313) 446-0325 or science studies to back; pediatric ton beam center in a joint venture. [email protected] Hesham Gayar: prove the value of proton therapy will be a boon for tumors; and They later studied a $300 million Amy Haimerl, entrepreneurship editor Covers entrepreneur- ship and city of Detroit.(313) 446-0416 or McLaren to study proton therapy. Beaumont patients. brain tumors carbon ion therapy cancer center [email protected] proton’s power “For pediatric “We believe proton beam thera- where critical before tabling the plans because of Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] spinal cases, py is appropriate for select types of structures may the recession in 2009. Tom Henderson Covers banking,finance,technology and nothing can beat it,” said Gayar, who cancers, including pediatric,” be at risk. Bret Jackson, the alliance’s presi- biotechnology.(313) 446-0337 or [email protected] came to McLaren three years ago Wood said. “We think it will be a Naim Munir: HAP Naim Munir, dent, said a recent model policy Kirk Pinho Covers real estate,higher education,Oakland and M.D. Anderson Cancer Center American Society for Radi- Macomb counties.(313) 446-0412 or [email protected] from in destination center for the state will cover some M.D., HAP’s from the Bill Shea, enterprise editor Covers media,advertising and mar- Houston. and region and enhance our can- proton therapy chief medical of- ation Oncologists recommends that keting,the business of sports,and transportation. Gayar said McLaren has a variety cer center.” ficer, said the proton beam therapy is appropriate (313) 446-1626 or [email protected] Dustin Walsh Covers the business of law,auto suppliers,man- of clinical protocols in place for a McLaren’s proton beam machin- health insurer will cover some pro- for certain head and neck tumors in ufacturing and steel.(313) 446-6042 or [email protected] range of proton-based cancer treat- ery and Radiance 330 cyclotron were ton beam therapy when evidence adults and children. Sherri Welch, senior reporter Covers nonprofits,services,retail ments. Two of the proton center’s made in Russia and shipped to suggests that proton therapy would “We are concerned about the and hospitality.(313) 446-1694 or [email protected] rooms will be for adults and the Michigan three years ago, Kooy said. be more effective than other choic- amount of money spent purchasing ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 third for pediatric cases, he said. Construction and approval from the es. That could include certain types the equipment and facility to house Sales Manager Tammy Rokowski Don Kooy, CEO of the McLaren U.S. Food and Drug Administration of brain and eye tumors and pedi- it,” Jackson said. Senior Account Executive Matthew J.Langan Flint hospital, said the proton cen- took several years to complete, he atric cases, Munir said. “We are also concerned about Advertising Sales Christine Galasso,Catherine Grace,Joe ter will enhance said. Over time, Kooy said, other Michi- the utilization of service where tu- Miller,Sarah Stachowicz Classified Sales Manager Angela Schutte,(313) 446-6051 the existing can- “We can start whenever we want,” gan health insurers are likely to cover mors are not appropriate. (Hospi- Classified Sales Lynn Calcaterra,(313) 446-6086 cer center opera- Kooy said. “We are doing internal proton therapy and expand treat- tals) may try to push utilization to Audience Development Director Eric Cedo tions, drawing quality control testing now to make ment coverage once they see results. recoup the financial investment in Events Manager Kacey Anderson more patients sure it is all working.” the facilities on inappropriate Creative Services Director Pierrette Dagg Proton pros, cons from the state The first treatment will be for cases.” Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black and Midwest. At prostate cancer, Kooy said. The advantages and disadvan- McLaren has a joint venture with Special Projects Coordinator Keenan Covington full capacity, the “It is the simplest to do and has tages of proton versus photon ther- ProTom International, a Flower Sales Support Suzanne Janik,YahNica Crawford center will treat the most outcomes research,” he apy have generated robust scientific Mound, Texas-based company. Editorial Assistant Nancy Powers Don Kooy: New 100 patients a said. “We can do prostate in five debate, said Joe Spallina, a consult- Beaumont is developing its project Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos center will attract day, Kooy said. treatments rather than 30” for in- ant with Ann Arbor-based Arvina with Proton International, an Atlanta- more patients “We will have tensity modulated radiation thera- Group LLC, which specializes in based proton therapy development CUSTOMER SERVICE Main Number: Call (877) 824-9374 much more vol- py, also known as IMRT or photon health care and cancer program group. or [email protected] ume” overall in the cancer center, therapy. strategic planning. When Beaumont completes its Subscriptions $59 one year,$98 two years.Out of state,$79 he said. “It will expand our num- “It saves patients time, and it is “Proton therapy does have less two-story building, the 17,000- one year,$138 for two years.Outside U.S.A.,add $48 per year bers, not subtract from them.” better for patients and important residual tissue damage than IMRT square-foot proton center will be on to out-of-state rate for surface mail.Call (313) 446-0450 or (877) 824-9374. Craig Stevens, M.D., Beaumont’s for payers who pay for it,” Kooy and a shorter treatment period for the first floor with an 8,000-square- Single Copies (877) 824-9374 chairman of radiation oncology, said. prostate patients,” Spallina said. foot second floor that will house the Reprints (212) 210-0750; or Alicia Samuel at [email protected] said McLaren’s center will not affect While Medicare pays for prostate pediatric oncology and hematology Insurance coverage mixed To find a date a story was published (313) 446-0406 the number of proton treatment pa- cancer proton therapy, Spallina said, program of Beaumont Children’s Hos- or e-mail [email protected] tients at Beaumont. But will health insurers such as proton centers need to generate at pital. Crain’s Detroit Business is published by Crain Communications Inc. “We have a large system with Blue Cross Blue Shield of Michigan, least 50 percent of their business “We will have the capability to Chairman Keith E.Crain 11,000 new patients coming into Priority Health, Aetna Inc., United from commercial insurance or self- treat cancer that would have other- President Rance Crain our system each year,” Stevens said. Healthcare and Health Alliance Plan pay to cover their higher overhead wise been considered unsalvage- Treasurer Mary Kay Crain Executive Vice President/Operations David Wood, M.D., Beaumont’s pay for the treatment? able and incurable,” said Beau- William A.Morrow chief medical officer, said adding Several locally based health in- mont’s Stevens. Executive Vice President/Director of Strategic Operations BANKRUPTCIES He estimates the proton beam Chris Crain Executive Vice President/Director of Corporate Operations center will create at least 30 clinical KC Crain INDEX TO COMPANIES The following businesses filed for positions at Beaumont. Vice President/Production & Manufacturing These companies have significant mention in this week’s Crain’s Detroit Business: protection in U.S. Bankruptcy Court Kooy said McLaren will employ Dave Kamis Chief Financial Officer Thomas Stevens in Detroit April 10-17. Under Chap- 50-60 when all three rooms are op- Chief Information Office Anthony DiPonio Barbara Ann Karmanos Cancer Institute .. 11 McLaren Health Care ...... 1, 11 ter 11, a company files for reorgani- erating. G.D. Crain Jr. Founder (1885-1973) Beaumont Health ...... 1, 12 Meisner Law Group ...... 17 zation. Chapter 7 involves total liq- Next to the proton beam center is Mrs. G.D. Crain Jr. Chairman (1911-1996) Brewster Wheeler Recreation Area ...... 1 Michigan Bucks ...... 20 uidation. a 32-room hospitality house, a hotel Editorial & Business Offices 1155 Gratiot Ave.,Detroit MI 48207-2732; Council of Michigan Foundations ...... 3 Neuman Anderson ...... 17 Great Lakes Adjusting & Apprais- for patients and their families that (313) 446-6000 Crain’s Detroit Business ...... 14 Rheal Capital Management ...... 19 ing LLC, 18315 W. Seven Mile, De- opened in July 2013, said Greg Lane, Cable address: TWX 248-221-5122 AUTNEW DET troit, voluntary Chapter 7. Assets McLaren’s chief administrative offi- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published Detroit City Football Club ...... 3 Saga Communications ...... 6 weekly,except for a special issue the third week of October, and liabilities not available. cer. Detroit Zoo ...... 4 St. John Providence Health System ...... 13 and no issue the fourth week of December by Crain Commu- 4L Ventures LLC, Taylor Industrial The hotel rooms, partially subsi- nications Inc.at 1155 Gratiot Ave.,Detroit MI 48207-2732.Peri- Ford Global Technologies ...... 3 Steve Sewell & Associates ...... 17 odicals postage paid at Detroit,MI and additional mailing of- Properties LLC, Lee Steel Corp., dized by the Ann Arbor-based Hope fices.POSTMASTER: Send address changes to CRAIN’S Gibbs Planning Group ...... 19 Tome ...... 3, 18 45525 Grand River Ave., Novi, vol- Foundation, are $35 per night or $50 DETROIT BUSINESS,Circulation Department,P.O.Box 07925, Great Lakes Cancer Institute ...... 21 Union Joints ...... 19 Ⅲ Detroit,MI 48207-9732.GST # 136760444.Printed in U.S.A. untary Chapter 11. Assets and liabil- for larger rooms, Lane said. Entire contents copyright 2015 by Crain Communications Inc. GreenLancer Energy ...... 10 University of Michigan ...... 12 ities not available. Jay Greene: (313) 446-0325 All rights reserved.Reproduction or use of editorial content in — Natalie Broda Twitter: @jaybgreene any manner without permission is strictly prohibited. 20150420-NEWS--0022-NAT-CCI-CD_-- 4/17/2015 4:16 PM Page 1

22 CRAIN’S DETROIT BUSINESS // April 20, 2015 WEEKON THE WEB/APRIL 11-17 RUMBLINGS UM to build San Diego startup ‘right at $160M pathology home’with SE Mich.facility facility on north an Diego high-efficiency en- prevented po- research campus gine startup Achates Power tential buyers SInc. is opening its engineer- from taking an ing center in Farmington Hills. interest, Marcero niversity of Michigan re- The maker of opposed-piston said. She expects

gents approved a $160 [MARY JANE MURAWKA/WAYNE STATE UNIVERSITY] engines signed a lease earlier this a deal for the en- U million project that will McGregor Memorial Conference Center, on the campus of Wayne State Universi- year at 39303 Country Club Drive in tire company or create a 139,000-square-foot home ty,was designed by renowned architect Minoru Yamasaki. Farmington Hills. The 4,000- parts of it to be for most of the University of Michigan square-foot space will house 12 en- in the works by Health System’s clinical pathology lion, bringing the company’s total formation is posted online. gineers and program managers, early fall. Ⅲ ZackTaylor: activities and renovate another funding to about $48 million. Duo The McGregor Memorial Con- and the company expects to reach CEO of Lee Steel. For now, Lee 47,000 square feet of existing will use the funding in engineering ference Center, the 1958 Wayne 20 employees by the end of the Steel will contin- space. The new facility will occupy and international expansion. State University building designed year, said CEO David Johnson. ue to operate as normal, with four vacant buildings at the North Ⅲ The Wayne County Airport Au- by renowned architect Minoru Ya- John Major, former COO at mili- debtor-in-possession financing Campus Research Complex, less thority announced that its new masaki, has been designated as a tary contractor Plasan North Ameri- through the end of June of $2.5 mil- than 3 miles from the main med- headquarters building will bear national historic landmark by the ca Inc., was hired to lead the office lion from Huntington Bank. ical campus in Ann Arbor. the name of former Wayne County National Park Service, AP reported. and will be Achates’ regional vice The company is in its second Road Commission Chairman Ⅲ Dennis Via, commanding president of Midwest operations. generation of family ownership, COMPANY NEWS Michael Berry. The building will be general of the U.S. Army Materiel Contracts secured this year with under CEO Zack Taylor. His broth- constructed next to the North Ter- Command, the Alabama-based di- the U.S. Army Tank Automotive Re- ers, Tom and Scott, fill out the com- Ⅲ Dan Gilbert’s Detroit-based minal at Detroit Metropolitan Airport vision that oversees the Tacom search, Development and Engineer- pany’s leadership team. Bedrock Real Estate Services LLC is and is expected to open in 2017. Life Cycle Management Command ing Center (TARDEC) in Warren and under contract to buy the 1,300- Ⅲ Troy-based Talmer Bank and and the Tank-Automotive Re- a major automaker led to the deci- RetroSense honored for space Lothrop Parking Garage in Trust, Ann Arbor Spark and South- search, Development and Engi- sion, Johnson said. gene therapy innovation the New Center Area directly east field-based BlueWater Technolo- neering Center at the Detroit Arse- Southeast Michigan “has been in of the Albert Kahn Building, two gies were named among the best- nal in Warren, said during a visit our sights for years, but the move is a Ann Arbor-based RetroSense real estate sources said. The Kahn run businesses in Michigan at to Warren that his command re- sign of our growth,” Johnson said. Therapeutics LLC, a spinoff from building will go up for auction Eastern Michigan University’s Col- cently reduced personnel at its “The location and proximity to cur- Wayne State University, was hon- along with the Fisher Building this lege of Business annual Business headquarters — and likely has rent and future customers is very im- ored last week in San Diego as the summer, and sources said the of the Year Awards luncheon. more scaling back to do if federal portant to us. We’re sort of a fish out most innovative company at the pending deal could be a sign budget rollbacks return. of water in San Diego, but we’re right annual Angel Capital Association Ⅲ Gilbert is looking to make a strong OTHER NEWS As part of what organizers are at home in Southeast Michigan.” convention, the largest annual move to buy the buildings. calling the biggest mobilization of Backed by the Walton family, ma- gathering of angel investors in the Ⅲ Prestolite Electric LLC said that Ⅲ Mayor Mike Duggan an- workers in the U.S., protesters in jority owners of Wal-Mart Stores world. Chinese conglomerate Zhongshan nounced the Detroit Neighbor- Detroit called for pay of $15 an Inc. and other funds, Achates has The company is developing a lead Broad-Ocean Motor Co. Ltd. complet- hood Initiative, which will write hour and a union for fast-food and raised $100 million in capital since product under the working name of ed its acquisition of the Plymouth mortgages up to 110 percent of a other low-wage workers, AP report- its founding in 2004. RST-001 that uses gene therapy to Township-based transportation home’s value — or up to 150 per- ed. The “Fight for $15” campaign is restore some vision in patients suf- supplier. Terms of the deal were cent if purchased through Detroit being spearheaded by the Service Lee Steel files Chapter 11 fering blindness due to retinitis pig- not disclosed. Prestolite will con- Land Bank Authority auctions. Bank Employees International Union. not long after expansions mentosa or advanced dry age-relat- tinue to be led by CEO Tony Wong. of America, Boston-based Neigh- Ⅲ Republican Ben Carson, the ed macular degeneration. Ⅲ Milwaukee-based Johnson borhood Assistance Corp. of America neurosurgeon who has been ex- Novi-based Lee Steel Corp. filed Last year, the U.S. Food and Drug Controls Inc., whose automotive in- and Detroit-based Opportunity Re- ploring a run for president, will an- Chapter 11 bankruptcy protection Administration granted orphan drug teriors business is in Plymouth source Fund were enlisted to create a nounce his decision in his home- last week, only a few years after sev- status for RST-001 for the treatment Township, announced a final loan to get around federal regula- town of Detroit May 4, according eral high-priced expansions. of RP, which can sharply increase its agreement to form a joint venture, tions that usually prohibit lending to a Facebook post, Bloomberg re- The steelmaker, which employs speed to market and decrease its Yanfeng Automotive Interiors, with more than a home’s worth. ported. It would be the first politi- 65, owes fewer than 200 creditors cost. There are no FDA-approved Chinese supplier Yanfeng Automo- Ⅲ A new Asian fusion restaurant cal campaign for Carson, who between $50 million and $100 mil- drugs to improve or restore vision in tive Trim Systems Co. Ltd. JCI will is coming to Detroit’s former Chi- graduated from medical school at lion, according to its filing in U.S. patients with those conditions. hold a 30 percent minority stake. natown area this fall. The Peterboro the University of Michigan. Bankruptcy Court for the Eastern Receiving the award were com- Ⅲ Detroit-based Henry Ford will derive its name from its loca- Ⅲ Police arrested eight people District of Michigan in Detroit. pany founder and CEO Sean Health System said more than tion at Cass Avenue and Peterboro during a protest at a University of The filing comes less than two Ainsworth and WSU professor 35,000 new Model G gowns, made Street, inside the former home of Michigan regents meeting over the years after the company closed its Zhou-Hua Pan, the scientific direc- by Dearborn-based Carhartt Inc., Showcase Collectibles. minority enrollment, AP reported. Detroit plant on Varney Street and tor of the Ligon Research Center of are going to its hospitals this Ⅲ An exhibit featuring photos Ⅲ Michigan’s seasonally adjust- moved into a $26 million, 250,000- Vision at the Kresge Eye Institute in month, offering more style and from the National Geographic ed unemployment rate fell to 5.6 square-foot plant in Romulus. A Detroit. Pan’s research was licensed fixing a lack of rear coverage. special report “Taking Back De- percent in March, 2 percentage 120,000-square-foot plant near by Ainsworth when RetroSense was Ⅲ A portfolio of 12 Michigan troit” was unveiled online and points lower than one year earlier, Grand Rapids opened in 2000. founded in 2009. self-storage properties — among opened inside the First National the Department of Technology, Laura Marcero, managing direc- them at sites in Ann Arbor, Building in Detroit. The exhibit, Management & Budget said via AP. tor of Troy-based turnaround firm Chesterfield Township, Lake sponsored by Michigan State Uni- The state now has an unemploy- Huron Consulting Group and chief Orion, Novi, Westland and Ypsi- versity, Bedrock Real Estate Services ment rate just 0.1 points above restructuring officer for Lee Steel, lanti — sold for $61.3 million in LLC and Quicken Loans Inc., will run the national rate of 5.5 percent. said that “those investments and what the seller is calling the high- through May 10 and feature the the recent decline of the steel in- est per-square-foot price ever paid work of photographer Wayne OBITUARIES dustry and prices caused the com- for such a portfolio in the state. Lawrence, whose portraits of De- pany to experience significant fi- Maurice Pogoda, president of Farm- troiters are a centerpiece of the Ⅲ Frank Audette, creator of the nancial distress. I wouldn’t be ington Hills-based seller The Pogo- online report. The report will be Troy Motor Mall and founder of surprised if more steel companies da Cos. Inc., said Simply Self Storage, available on newsstands April 28. the former Audette Cadillac deal- potentially file Chapter 11 ... given the Orlando, Fla.-based buyer, Ⅲ The Greening of Detroit, a ership in West Bloomfield Town- where the market is.” paid $81.79 per square foot for the nonprofit that supports urban re- ship, died April 10. He was 90. Steel production in the U.S. has [COURTESY OF RETROSENSE] 749,000-square-foot portfolio of forestation efforts, is planting Ⅲ Robert Griffin, a Republican dropped more than 6 percent in RetroSense founder and CEO Sean National Storage Center properties. about 4,000 trees across Detroit who represented Michigan in the 2015, according to a report by Mar- Ainsworth (right) and Wayne State Uni- Ⅲ Ann Arbor-based Duo Security this year, AP reported. Plantings U.S. Senate (1966-78) and was a ket Realist earlier this month. versity faculty member Zhuo-Hua Pan Inc., a provider of cloud-based net- are scheduled every Saturday, ex- Michigan Supreme Court justice Much of that is attributed to re- accept the Luis Villalobos Award for in- work security, said it has raised a cept for Memorial Day weekend, (1987-94), died April 16. He was duced steel consumption by China. novation at the Angel Capital Associa- Series C funding round of $30 mil- through mid-June; volunteer in- 91. However, the grim market hasn’t tion convention. DBpageAD_DBpageAD.qxd 4/10/2015 9:22 AM Page 1 DBpageAD_DBpageAD.qxd 4/16/2015 11:38 AM Page 1

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