Duggan: Help City Think Lean

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20140303-NEWS--0001-NAT-CCI-CD_-- 2/28/20147:12PMPage1 ©Entire contentscopyright2014byCrainCommunicationsInc.Allrightsreserved to meetthedemand Gluten-free bakeriesrise the fall Bank survives First State In Macomb, University ofConnecticut ed with necticut Innovationsaffiliat- CTech Connecticut andfounded lion seedfundforstartupsin Town soon,alsorana$20mil- ing technologycompanies. of supportservicesforemerg- necticut Innovations Rocky Hill,Conn.-based after spending13yearsat TechTown inDecember2012 Ann ArborSpark nies, hadbeenmanagedby startup technologycompa- invests $250,000inpromising Seed CapitalFund. will runtheMichiganPre- troit’s entrepreneurship atDe- director oftechnology-based lead newInvestMichigan TechTown execnamedto Moret

NEWSPAPER www.crainsdetroit.com Vol.30,No.9 This JustIn Page 3 Moret, whowillleaveTech- Moret wasrecruitedto The fund,whichtypically Charlie Moret,managing , anincubatoratCon- TechTown Yale University — TomHenderson ups anddowns tickets hasits pricing for Dynamic . vest Michi- nization, a neworga- and CEOof president Corp. velopment Economic De- the chosen by , hasbeen , aprovider gan Michigan , which and the . Con- In- as

LARRY PEPLIN expose flawsinsupplierprograms. sembling automotivesoftwareto dubbed “whitehats,”aredisas- the country,hiredhackers, by chaos,otherstheft. ware systems.Somearemotivated and tearingapartadvancedsoft- boards withthegoalofinfiltrating Technology hassuppliersusinghackerstothwart cons. program thatwoulddrivedownhighrates.Expertsweighinontheprosand D-Insurance? to keycityexecutivesanddepartmentheads. business veteransandrisingyoungleaders.See Mike DugganhasstockedhisCabinetwitharangeofseasonedpoliticos, The team: A But inmetroDetroitandaround Hackers aretypingawayonkey- Duggan: Help city OKA H PLAYERS THE AT LOOK CRAIN’S DETROITBUSINESS See Page4. B Y As heseekshelpfromthebusinesscommunity,DetroitMayor D USTIN Duggan hasraisedtheideaofacity-ledautoinsurance W ALSH ... N CITY AND - U A INSURANCE CAR RUN the Internet. ture andaccessinformationvia with othervehiclesandinfrastruc- allowing carstocommunicate to performvaryingtasks,suchas ware isbeinginstalledonvehicles technology. protect thefutureofautomotive that willthwartcyberattacksand learned andimplementchanges The goalistotakethelessons Access regionalevent dates, locationsandcontactdetails allinoneplace. Many currentluxurymodels, Why arecarsatarget?Moresoft- AC 3–9,2014 MARCH Page 22 AARON ECKELS would, takeoneproject—thatcouldbepartofsome- outcome, weneedyourhelp,”hepleaded.“Ifyou ability totearapartacoreprocessandmeasurethe employees leanprinciples. to changehowgovernmentisrun Mayor hopestotapbizexpertise thing big,likepoliceresponsetime,orhowwere- spond towatermainbreaks,whichmakesnosense who arewillingtocomeinandteachDetroitcity for “If yourcompanyhasasoneofitscoreskillsthe at all—signupandcomeinforamonthortwo think lean Crain’s Crain’s assistance. Specifically,hesaidneedsleaders and workwithouremployees.” executives lastweekandaskedfortheir guide sold-out crowdofnearly800business table attheTuesdayevent M torCity CasinoHotel CRAIN’S DETROITBUSINESS Volunteer cardswereleftatevery B gional Chamber Y Baruah, CEOofthe willingness tohelp. and thesuburbs,pledgedtheir three dozenpeople,fromthecity A “Mayor DaveBingmadeasimilar MY “We’re allin,”saidSandy tions. directly impacthowthecarfunc- pursue consumerinformation,or attacks, expertssay.Hackerscan but italsounlocksthedoortocyber- mance, andpassengerusefulness, realms ofpossibilitiesforperfor- ports. lion linesofcode,accordingtore- advanced, havemorethan100mil- some ofthemosttechnologically H In July2013,twoPentagon- The newtechnologyopens crainsdetroit.com/executivecalendar of theYear,hespoketoa some help. ayor MikeDugganneeds AIMERL As Crain’s . , andmorethan See Duggan,Page22 Newsmaker Detroit Re- Mo- Bhargava Energy and thecompanies’twoother ing directorChrisBrower.He vestments, accordingtomanag- companies aboutpossiblein- ments withseveralMichigan signed nondisclosureagree- vation andwatertreatment. are focusedonenergyconser- panies aroundtheworldthat lion inindividualdealscom- which willinvestupto$100mil- Energy andWaterVenturesLLC Farmington Hills-based er privateequitycompany, that Bhargavaisfundinganoth- gies intheglobalmarket.” innovative, patentabletechnolo- large-scale commercializationof its website,“toacceleratethe firm established,accordingto Innovations LLC energy deals invest inwater, company to Bhargava funds gies requiresnewprotocolsand out ofconnectedvehicletechnolo- purposes, butexpertssaytheroll- tacks remainscloakedforsecurity and video. Forbes cles, inawell-publicizedevent; motely takingcontrolofthevehi- Ford EscapeandToyotaPrius,re- funded researchershackedintoa The billionairebehind Manoj Bhargavaisatitagain. Oakland Energyhasalready Monday, itwillbeannounced Much oftheworktopreventat- CRAIN’S DETROITBUSINESS B Y garnered headlinesin published theinitialstory T OM See Bhargava,Page25 H $2 acopy;$59year , aprivateequity See Auto,Page21 ENDERSON based ington Hills- launch Farm- money to of hisown $100 million who putin tery investor was themys- revealed he when May 2011 Oakland Stage 2 Crain’s 5-Hour ® , 20140303-NEWS--0002-NAT-CCI-CD_-- 2/28/2014 4:27 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 3, 2014

MICHIGAN BRIEFS Steelcase donates building to known is whether Holland will be a location for any filming. help STEM sprout across state Lansing casino project on hold after court decision Ⅲ Monroe was ranked third on Grand Rapids-based office furni- CNNMoney’s list of the 10 most afford- ture maker Steelcase Inc. plans to About two years after it was first proposed, a trib- ment to have the land taken into trust for gambling able small cities. Bay City was No. 8. donate its pyramid-shaped former al casino in downtown Lansing is officially on hold, — a requirement before a casino can be built. Ⅲ The LaughFest comedy festi- research center near Grand Rapids the Lansing State Journal reported. The state plans to ask the high court to stay the val, with its fourth annual appear- to a foundation for use as an educa- A decision last week by the 6th U.S. Circuit Court of case until after it rules in a case involving the Bay ance set to start Thursday, has a tion hub for the study of so-called Appeals in Cincinnati granted a stay to Michigan At- Mills Indian Community and a casino it opened off its habit of trying to set odd Guinness STEM subjects: science, technolo- torney General Bill Schuette, who had sued to stop reservation in 2010 in the northern Michigan World Records. This year’s at- gy, engineering and mathematics. the Sault Ste. Marie Tribe of Chippewa Indians from community of Vanderbilt. The casino later was shut tempt: the most people wearing Officials said the education hub opening a casino next to the Lansing Center. down. Schuette thinks the case raises similar sunglasses in the dark. The cur- would cater to students in The decision halts any legal proceedings as the questions about the state’s authority to stop off- rent record was set at Wrigley preschool through graduate school, state prepares to petition the U.S. Supreme Court to reservation gambling. Field in Chicago in July 2012 with The Grand Rapids Press reported. take up the case. That also probably prevents the An attorney for the Sault tribe said it doesn’t 1,642 people. Which raises the The nonprofit Pyramid P20 STEM tribe, which wants to build the $245 million Kewadin think the Supreme Court will find merit in the Lans- question: Only 1,642 Cubs fans Education Hub is expected to set the Lansing Casino, from applying to the federal govern- ing case. were hiding their eyes? agenda for the hub, which could Ⅲ The owner of the Showgirls Gal- get $5.5 million in state money. leria in Grand Rapids — home to The seven-story, 664,000-square- nity ... ownership translates into genetics, The Associated Press reported the dorms will get new Lady Godiva’s Showgirls, Stud’s Night- foot building is in Kent County’s rates that are 20 percent lower than ported. The institute says epigenet- flooring, lights and paint, and bet- club and Erica’s Erotic Accessories — Gaines Township. if the power plant was owned by an ics has the potential to boost cancer ter wireless Internet service. The wants to sell his real estate for invested-owned utility,” said board research and treatment. work is expected to be done by fall. $6 million. We mention this if for Holland to take on $160M debt member Phil Miller. Ⅲ The board of directors of Bat- Ⅲ David Reid is the new director no other reason than Crain’s sel- tle Creek-based Kellogg Co. has ap- of the Kalamazoo/Battle Creek Inter- dom gets an opportunity to publish to build natural gas power plant proved a plan to buy back up to national Airport, the Grand Rapids colorful business names. MICH-CELLANEOUS Business Journal reported. He had Holland city officials last week $1.5 billion of its stock, The Associ- been interim director. Find business news from unanimously approved issuing Ⅲ Holland-based Macatawa Bank ated Press reported. Ⅲ Bryan Cranston, better known around the state at crainsdetroit $160 million in bonds — the largest Corp. has resumed its dividend for Ⅲ Plasan Carbon Composites, a unit as Walter White in AMC’s “Breaking .com/crainsmichiganbusiness. for a project in the city’s history — holders of its common stock after of Israeli defense contractor Plasan Bad,” will play a presumed serial Sign up for Crain's Michigan to build the Board of Public Works’ five years, The Holland Sentinel re- Sasa, will close a Vermont auto Business e-newsletter at crains new power plant, The Grand ported. The collapse of the housing parts plant and consolidate in a new killer in “Holland, Michigan,” Red- detroit.com/emailsignup. Rapids Press reported. The bonds market and the recession forced plant in the Grand Rapids suburb of dit reported last week. What isn’t will be paid back over 25 years with the bank to participate in bailout Walker, with the help of tax incen- revenue from electric customers. and government programs that tives, MLive.com reported. The CORRECTION The plant, which will run on prohibited paying dividends to Bennington, Vt., plant employs 143. Ⅲ A headline in the Feb. 24 Rumblings should have said that a Georgia natural gas, is scheduled to be op- common shareholders. Ⅲ Ferris State University in Big resident is seeking Gary Peters’ seat in Congress, not the Senate. erating by the fall of 2016. Ⅲ The Van Andel Institute in Grand Rapids plans to spend more than Ⅲ In a correction published Feb. 10, MRPR Group PC was spelled incor- Public Works board members say Rapids is establishing a research $1 million to improve its residence rectly. the plant is a bargain. “The commu- hub aimed at boosting work in epi- halls. TV station WPBN-WTOM re-

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March 3, 2014 CRAIN’S DETROIT BUSINESS Page 3 Face value gets a face-lift Focus: Real estate Tigers can expect an extra $1M with new ticket policy

BY BILL SHEA real-time analytics prices could fall — but never below CRAIN’S DETROIT BUSINESS FIXED TIX NIXED software to adjust the discounted rate that season tick- ticket prices based et holders pay for an individual The Detroit Tigers — who in recent How other local teams use on market demand. game seat. years have had little problem pack- dynamic ticket Single-game Last year, the Tigers used a ing Comerica Park, thanks to a star- pricing, Page 24 tickets went on sale three-tiered system of prices set by filled roster — can expect to pocket March 1, and a the expected demand for each game, more than $1 million in new single- nose-bleed seat that sold then for a but the seat prices didn’t change. Office, industrial construction game ticket sales revenue because of base price of $12 could cost $15 or $20 That’s known as variable pricing. on the up ... and up, Page 11 a switch to dynamic pricing for the later in the summer, if the seats for Now, Tigers ticket prices could 2014 season, industry insiders say. that game are in demand. change by the week, day or even The Tigers join a growing lineup If the Tigers are struggling, and hour. of professional sports teams using the opponent is a dud, single-game See Tickets, Page 24 Company index These companies have significant mention in this week’s Crain’s Detroit Business: American Axle & Manufacturing Holdings ...... 12 Amson Dembs Development ...... 12 Arbed Solutions ...... 22 While competitors fell, Ashley Capital ...... 11 Avalon International Breads ...... 24 Bernard Financial Group ...... 12, 13 Bloomfield Capital Partners ...... 13 Botsford Continuing Care Center ...... 7 Botsford Hospital ...... 7 First State survived Burton-Katzman Development ...... 12 City Living Detroit ...... 11 preciate, so creditworthiness was some- Clarkston State Bank ...... 25 Conservative thing to be worked around. Community EMS ...... 7 “The focus here has not been about Continental Automotive Solutions ...... 21 Delphi Automotive ...... 21 generating revenue, but in building val- Detroit Lions ...... 24 focus key for ue. There was never any point in time we Detroit Pistons ...... 24 were out chasing earnings,” said Gene Detroit Red Wings ...... 24 Lovell, the bank’s president and CEO. Macomb bank Detroit Regional Chamber ...... 1 The bank wasn’t immune to the reces- Detroit Tigers ...... 3 BY TOM HENDERSON sion and loan defaults. It lost money — Ethel’s Edibles Gluten-Free Baking ...... 3 CRAIN’S DETROIT BUSINESS a lot of money for a small community Faurecia North America ...... 11 bank. It went from net income of $1.6 First State Bank ...... 3 From 2000 to 2007, First State Bank of million in 2006 to a loss of $8.7 million in 5-Hour Energy ...... 1 St. Clair Shores was the tortoise losing 2007. It lost $5.5 million in 2008 and $5 General Development ...... 11 the race, and losing it badly. million in 2009 before returning to prof- General Motors ...... 21 During the community banking boom itability in 2010, as other local banks Health Net Connect ...... 7 that preceded the Great Recession, if First were locked into downward spirals. Hiller’s Markets ...... 3 State had been publicly traded, its share- And assets fell from a peak of $750 mil- Huron Capital Partners ...... 5, 25 holders might very well have complained lion in 2006 to about $575 million today. Invest Michigan ...... 1 Lawrence Technological University ...... 6 that the bank wasn’t making the return Losses aside, Lovell said, First State’s old-fashioned way of banking based on Magic Plus ...... 12 on equity that its competitors were. Meridian Health Plan ...... 12 But by being conservative throughout nearly 80 years of family ownership brought it through the recession relative- Metro-West Appraisal ...... 22 the boom days, First State avoided the Michigan Lean Consortium ...... 22 ly unscathed and poised for growth. quick-return temptations of subprime LARRY PEPLIN Nemer Property Group ...... 13 If First State was the Macomb County mortgages. It didn’t make risky com- “The focus here has not been about generating revenue, but in Oakland Energy and Water Ventures ...... 1 mercial real estate loans on the premise building value. There was never any point in time we were out chasing One Bite at a Time ...... 24 that property owners would always ap- See First State, Page 25 earnings,” said Gene Lovell, First State Bank’s president and CEO. Parastar ...... 7 PriceWaterhouseCoopers ...... 22 Redico ...... 11 Rock Ventures ...... 12 Rumi’s Passion Gluten-Free Bakery ...... 24 Social Sushi ...... 6 Edibles complexity: Gluten-free Stage 2 Innovations ...... 1 University of Michigan ...... 21, 24 bakers rise to meet the demand Wayne State University ...... 12 BY NATHAN SKID In April 2011, Bommarito returned to the CRAIN’S DETROIT BUSINESS food fair, which offers an opportunity to market to celiac consumers, but this time she Department index The line winding around the entrance to the brought her gluten-free Pecan Dandys and Hot BANKRUPTCIES ...... 4 Tri-County Celiac Support Group’s food fair in 2009 Blondies to test the market. caught Jill Bommarito off guard. She said she was overwhelmed by the favor- BUSINESS DIARY ...... 19 The future founder of St. Clair Shores-based able response; she was then approached by CALENDAR ...... 18 Ethel’s Edibles Gluten Free Baking Co. LLC was at Plum Market and Hiller’s Markets asking Bom- CAPITOL BRIEFINGS...... 10 the Farmington Hills event to support a family marito to put Ethel’s Edibles products (the CLASSIFIED ADS ...... 21 member suffering from the disease. name is in honor of her late grandmother) in KEITH CRAIN...... 8 their stores. According to the Mayo Clinic, celiac disease is LETTERS...... 8 There was only one problem: LARRY PEPLIN an immune reaction to eating gluten, a protein MARY KRAMER ...... 9 Jill Bommarito got the idea for Ethel’s Edibles found in wheat, barley and rye, making it all “I didn’t have a product line, and I never OPINION ...... 8 Gluten Free Baking Co. while attending an event to but impossible for celiac sufferers to eat prod- even made a sale at that point,” Bommarito support a family member with celiac disease. ucts made from those ingredients. See Edibles, Page 24 PEOPLE ...... 20 RUMBLINGS ...... 26 Life on the food beat is rough, huh? WEEK ON THE WEB ...... 26 THIS WEEK @ Crain’s Nathan Skid snagged an invite to the James Beard Foundation’s Celebrity Chef Tour. Like his (very bitter) colleagues, WWW.CRAINSDETROIT.COM you can read about it at crainsdetroit.com/blogs. That’s duck breast, by the way. (Sigh.) NATHAN SKID/CDB 20140303-NEWS--0004-NAT-CCI-CD_-- 2/28/2014 4:25 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 3, 2014 Reaction mixed to Duggan’s idea of city-owned auto insurance company

BY JAY GREENE Buhs said there are about 150 file claims, especially when they CRAIN’S DETROIT BUSINESS auto insurers operating in Michi- are injured in car accidents. gan. The last company licensed “We are concerned about limit- Detroit Mayor Mike Duggan’s was in 2006, but that company was ing benefits” to $50,000, Sinas said. proposal to study the feasibility of affiliated with a larger corporation “Someone who is economically a city-owned auto insurance com- that already had capital in place, disadvantaged should not be limit- pany met mixed reactions from he said. ed to a small portion of the cover- the insurance industry, legisla- In a statement to Crain’s, Speak- age that is available to everyone.” tors and insurance reform advo- er of the Michigan House Jase Bol- Hollowell said the feasibility plan cates. ger, R-Marshall, for D-Insurance should be complet- In his first State of the City ad- said he plans to ed this summer and presented to dress last week, Duggan repeated discuss ideas the City Council and Emergency campaign promises to look seri- with Duggan on Manager Kevyn Orr for approval. ously into creating a company he how to lower Hollowell emphasized that the plan calls D-Insurance. auto insurance is not limited to Detroit creating its Duggan is pushing for low-cost rates for Detroit own insurance company. options as a way to retain city resi- residents. “We could structure a relation- dents and remove one of the “Reforms that ship with an existing (auto insur- biggest barriers to people moving protect (Michi- er) like a preferred provider orga- back to Detroit — the high cost of gan’s) nation- nization under a group policy for auto insurance, said Melvin Bolger leading benefits qualifying residents,” Hollowell “Butch” Hollowell, Detroit’s corpo- while driving down (the state’s) said. ration counsel. nation-leading costs would be nec- For example, Hollowell said, De- “Detroit’s auto insurance aver- essary to help Detroit’s residents,” troit could act as a broker to bring age is north of $5,000 a year. That Bolger said. a group of low-income citizen dri- is $1,200 more than the No. 2 high- Last month, Bolger proposed a vers to an auto insurer for lower est of Philadelphia,” Hollowell told no-fault auto insurance reform costs. The broker option also could Changing the odds Crain’s. package that includes a pilot plan lead to other group-type insurance Duggan has often told the story option for low-income motorists to policies, including property insur- in our clients’ favor of how his auto insurance premi- purchase $50,000 in personal in- ance, he said. ums doubled to $6,000 annually jury protection coverage. Another option would be for the when he moved to Detroit in 2012 The pilot plan in Bolger’s pro- city to create an insurance compa- from Livonia. posal originally was Senate Bill ny to cover drivers for comprehen- “At Detroit Medical Center, Mike 326, introduced by Sen. Virgil sive and collision coverage. Then started a (medical malpractice lia- Smith, D-Detroit. Bolger’s plan it could collaborate with an auto bility) company for physicians would allow injured motorists who insurer to cover motorists for per- that lowered costs and made a incur injuries above the $50,000 sonal injury protection and liabili- good return. He plans on doing the policy limit to be covered by Med- ty. same thing for drivers and the city icaid or the driver’s health insur- “We have thought about split- of Detroit,” Hollowell said. ance policy. ting up the companies and opening Besides creating a new insur- “We should see if this pilot pro- the up market,” Hollowell said. ance entity, other ideas include gram works,” Kuhnmuench said. “The (state) insurance code allows the city serving as a broker and ad- “Let’s test the marketplace and see this.” vocate for city residents or work- if it moves the needle” on lowering Sinas said offering separate poli- ing with an existing insurer as a costs to about $50 per month and cies for health care and auto liabil- Securities fraud and shareholder rights preferred provider. insuring more low-income drivers ity could create competition that Peter Kuhnmuench, executive Automotive supplier disputes Shareholder and partnership disputes under 133 percent of the federal could lower prices. director of the poverty level. “Health care only costs 18 per- Commercial and business lawsuits Family law and probate litigation Insurance Insti- Michigan offers unlimited cent of premiums,” Hollowell said. tute of Michigan, health coverage for injuries. Bol- “More than 60 percent of costs are a Lansing-based ger’s plan would limit medical on the comprehensive and colli- 248-841-2200 trade group, millerlawpc.com claims to $10 million and guaran- sion side. We need to do something said starting a tee 125 percent of workers’ com- about the prices that repair facili- new insurance pensation rates if claims are paid ties get.” company is not within 30 days. Hollowell said the city also easy, especially Hollowell said Duggan is op- could extract volume discounts by for a city going posed to Bolger’s plan, but the contracting with efficient and rep- through bank- Kuhnmuench mayor plans to lobby Bolger to in- utable auto repair shops. ruptcy proceed- clude several other methods to Jay Greene: (313) 446-0325, ings. lower auto insurance premiums. [email protected]. Twitter: @jay- “Be careful what you ask for. It They include mandating insurers bgreene &5<67$/ is a tough business, especially one to refund consumers for over- that includes the health care side charges and prohibiting the use of 0$'211$ of it,” Kuhnmuench said. “It is a credit scores to set premiums, a pretty significant undertaking, es- practice that he said increases pecially starting one from ground costs for Detroit residents. BANKRUPTCIES zero.” Some of the no-fault reform pro- Kuhnmuench said it could take posals were part of a package of The following businesses filed for protection in U.S. Bankruptcy Court in De- the city up to 18 months to get a bills — the Fair and Affordable In- new company licensed and opera- troit Feb. 21-28. Under Chapter 11, a surance Reform initiative — Hol- company files for reorganization. tional. lowell presented in 2009 when he Chapter 7 involves total liquidation. Under state insurance regula- was Michigan’s insurance advo- DTS Inc., 21741 Fenkell St., Detroit, 6&+2/$56+,3)81'5$,6(5 tions, new auto companies are re- cate under former Gov. Jennifer voluntary Chapter 11. Assets and lia- 3UHVHQWHGE\)RUG0RWRU&RPSDQ\Gala quired to file an application that Granholm. bilities not available. shows they have funding and a George Sinas, legal counsel for Israel Bros. Inc., 125 Newberry St., solid business plan. Require- the Coalition for Protecting No-Fault Romeo, voluntary Chapter 11. Assets 7XHVGD\$SULOSP ments include $7.5 million in min- Auto, a Lansing-based health care and liabilities not available. 'HDUERUQ,QQɴ2DNZRRG%OYGɴ'HDUERUQ0, imum capital, access to additional advocacy group, said Duggan’s Shefa LLC, 16400 J.L. Hudson Drive, capital based on a state solvency Southfield, voluntary Chapter 11. As- plan could provide an alternative sets and liabilities not available. SHUUHVHUYDWLRQɴSHUWDEOHRI review, a business plan that to high-cost auto insurance for De- shows adequate support staff, and Residential Group 231 LLC, 8155 Anns- 3URJUDPDGVDYDLODEOH troiters. bury Drive, Suite 100, Shelby Town- systems to collect premiums, pay “It could improve the affordabil- ship, voluntary Chapter 11. Assets and $QXQIRUJHWWDEOHLQVSLUDWLRQDOHYHQLQJɴFRFNWDLODWWLUH claims and provide customer ser- ity of insurance, making it more liabilities not available. vice, said Caleb Buhs, public in- humane and fair,” he said. Zebra Group Inc., 9355 Beck Road, Ply- )RUPRUHLQIRUPDWLRQFRQWDFW/RULDW formation officer with the Michi- Sinas said the existing auto in- mouth, voluntary Chapter 7. Assets RUYLVLWPDGRQQDHGX gan Department of Financial and surance system is too adversarial and liabilities not available. Insurance Services. and makes it difficult for drivers to — Bridget Vis 20140303-NEWS--0005-NAT-CCI-CD_-- 2/28/2014 5:16 PM Page 1

March 3, 2014 Page 5 Huron Capital to build company focused on energy

BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

Detroit-based Huron Capital Part- ners LLC will commit up to $100 million from its newest fund to build a platform company by buying companies in the U.S. and Canada that focus on energy efficiency and providing services to the electricity Helping Yo grid. u Build O According to Brian Demkowicz, n Your S Huron’s managing partner, a letter ucces of intent was signed last Wednes- s day for the first acquisition. The platform company, Albireo Energy LLC., is named for Albireo, a An internationally recognized, top 100 U.S. ﬁrm twin star 430 light years from with more than 80 years dedicated to construction accounting, earth that is visible to the naked eye. The name was chosen to re- Doeren Mayhew knows your industry inside and out. flect the nature of the partnership behind the new company and the Whether you’re a mid-sized construction company or a contractor doing fact that stars are at the center of business around the globe, count on Doeren Mayhew’s Construction massive energy processes, said Huron partner James Mahoney. Group to help you capitalize on your strengths and continue to build on Huron’s partner in forming Al- your successes. bireo is Phil Bomrad, a 20-year veteran of the clean-tech and energy- efficiency sectors. Mahoney and We invite you to see how we can provide insight to help senior partner John Higgins are navigate industry issues, oversight to ensure best practices spearheading Huron’s efforts with Insight. Oversight. Foresight.® and foresight for what’s ahead. Call us at 248.244.3000. the new company. Bomrad was most recently CEO doeren.com of Chicago-based Clean Urban Ener- gy Inc., a company that monitors grid-based operations for commercial buildings. Before that, he led the energy services group at Siemens Industry Inc. Demkowicz said Huron will invest in Albireo from its fourth and largest fund, the $500 million Huron Fund IV LP. “We are officially entering the game here,” he said. “The hope is to acquire 10 companies in the next three years, and I hope to close three or four deals for the platform this year.” He said investment in the platform won’t be limited to $100 million. He said Huron would likely also seek senior debt from banks to fund acquisitions. Mahoney said Huron will typically invest in well-run companies with revenue of at least $15 million, strong balance sheets and strong customer bases. He said Huron will target companies with expertise in building automation, control-systems inte- gration and energy efficiency retrofitting of older buildings in what is seen as a fast-growing $20 billion build-efficiency market. Mahoney said he has met with CEOs at more than 10 companies doing business in 22 states and Canada. He said he’d like to close on a first deal in the second quarter. He said he has met with one Michigan company, “but I don’t expect that deal to be an early one.” Mahoney said a lot of the early meetings have been a result of Bomrad’s contacts in the industry. Huron also has engaged a local investment banker he declined to name to help find acquisition tar- gets. Tom Henderson: (313) 446-0337, [email protected]. Twitter: @tomhenderson2 20140303-NEWS--0006-NAT-CCI-CD_-- 2/28/2014 4:28 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS March 3, 2014 Students aim to spruce up park with building for restaurant

BY KIRK PINHO It’s there that the nine under- Bar BQ in Corktown. a rustic icon, so putting a new marily going toward park mainte- CRAIN’S DETROIT BUSINESS graduate and graduate Lawrence With the 40-foot-long by 8-foot- building in that space wouldn’t do nance. Rent money could also be Tech students and 39 Western In- wide shipping containers and re- anything for the park,” said Phil used for park improvements and In the shadow of the abandoned ternational students, who have purposed materials like floor Lucas, a 23-year-old first-year events, Cooley said. Michigan Central Depot building dubbed themselves the Roosevelt boards, wall paneling and timber MBA student from Monroe who is Although Roosevelt is one of the in Corktown, students from Proxy group, plan a building made from abandoned Detroit houses, taking the class, called better-maintained parks in Detroit Lawrence Technological University from four reclaimed shipping con- the group hopes the worn look of Design/Build Civic Engagement. because of its city designation as a and Southwest Detroit’s Western In- tainers as part of a multidiscipli- the building will complement the The pop-up restaurant Social premier park, the group wants to ternational High School see an oppor- nary Lawrence Tech class taught aesthetic of the hulking, century- Sushi would lease the building at a help the city save on maintenance tunity to improve the adjacent by Associate Professor Steven Coy old train station south of the park. rate of about $1,000 to $1,200 per costs for things like grass cutting, Roosevelt Park. and Phil Cooley, owner of Slows “The train station itself is really month, with rent payments pri- and attract more people there. “This isn’t about us doing all the work,” Cooley said. “The city is still mowing it and maintain- ing it.”

INTELLECTUAL PROPERTY ATTORNEYS Jay Rayford Jr., co-founder

you know the what. of Social Sushi, now hire the how. said the restaurant would have They are not just “ no more than 40 seats and that an official open- “patent lawyers, but Cooley ing would be in mid- or late June, pending various our trusted advisors. approvals, including those from the Michigan Liquor Control Commis- sion for a liquor license and Detroit JAMES SCAPA, CEO Altair Engineering City Council of site plans. “We are hopeful that time frame is realistic,” Cooley said. “We are hopeful that this is something that Ä¦®ÄÙ®Ä¦Ö½ÄÄ®Ä¦ÝçÙòù®Ä¦Äò®ÙÊÄÃÄã½ÊÄÝãÙçã®ÊÄÃÄ¦ÃÄã won’t see a lot of resistance, some- YOUNG BASILE. Advisors to the world’s most innovative companies. thing that people will rally behind.” ƚǁĞůů͛ƐĐŽŶƐƵůƚĂŶƚƐ͕ĞŶŐŝŶĞĞƌƐ He said the building is expected ĂŶĚƉƌŽũĞĐƚŵĂŶĂŐĞƌƐƚƵƌŶ to be donated to the city when com- ŽďƐƚĂĐůĞƐŝŶƚŽŽƉƟŽŶƐƚŚƌŽƵŐŚ ANN ARBOR TROY SILICON VALLEY plete and that the council would 248.447.2000 ŝŶĚƵƐƚƌǇĞǆƉĞƌƟƐĞ͕ůŽĐĂů • • have to accept the donation. Various donors have con- www.atwell-group.com ŬŶŽǁůĞĚŐĞĂŶĚĨŽĐƵƐĞĚƐƚƌĂƚĞŐǇ͘ WWW.YOUNGBASILE.COM tributed to the effort, including the Detroit-based Skillman Foundation, which chipped in $15,000. Cooley said a donation of an undetermined size from the Chicago-based Coleman Foundation is expected to be finalized this week. In addition, Roosevelt Proxy has submitted a request for funding from the Mia- mi-based John S. and James L. Knight Foundation, Cooley said. Total build-out costs are estimated at $200,000, with $100,000 coming THE FORMATION OF from donated funds and $100,000 in donated goods and services. Several SCHECHTER INVESTMENT ADVISORS, LLC experts and contractors have donated goods or in-kind services. LED BY: Cooley said the building would likely be constructed off-site and BERNIE KENT JD, CPA, PFS JOHN STEIN MBA, CFA then transported to Roosevelt Park & and installed. Coy and Cooley spent about Schechter Wealth, an investment advisory and advanced life eight months organizing and de- signing the course, for which the insurance design firm, is expanding its investment services and Western International students receive college credit, Crandell said. we’re happy to welcome Bernie Kent and John Stein to lead the team. “What they got was an eclectic, very enthusiastic team that repre- Nationally renowned financial planner Bernie Kent spent 32 years sents almost every different department of the university — architects, at PricewaterhouseCoopers, where he was the Midwest regional industrial designers, graphic designers, motion graphics design- partner in charge of the personal financial services group. John Stein, ers,” said Breck Crandell, a 22-year- BERNIE KENT JOHN STEIN old first-year master’s of JD, CPA, PFS a former director of PwC’s Investment Advisory Practice, has more MBA, CFA architecture student who grew up in the Ypsilanti area but has lived Chairman, Senior Advisor than 17 years of investment advisory experience. CEO, Senior Advisor Schechter Investment Advisors Schechter Investment Advisors downtown for the past four years. For 17-year-old Carlos Gonzalez, a Western International senior, the project is an opportunity to improve the park and get his foot in the door at Lawrence Tech, where he has applied to attend in the fall. “When you have a chance to do something good and learn some- 248.731.9500 | BIRMINGHAM, MI | NEW YORK, NY | WWW.SCHECHTERWEALTH.COM thing, go for it,” he said. A public meeting on the project For information about registration status and business operations, please consult Schechter Investment Advisors’ Form ADV disclosure documents, available on the SEC’s Investment will be held Friday at 5:30 p.m. at Adviser Public Disclosure website at www.adviserinfo.sec.gov. Ponyride, 1401 Vermont St. Kirk Pinho: (313) 446-0412, [email protected]. Twitter: @kirkpinhoCDB 20140303-NEWS--0007-NAT-CCI-CD_-- 2/28/2014 4:26 PM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 7 Mobile health initiative’s goal: Cut hospital costs, readmissions

BY JAY GREENE of about 130 patients to determine not pulling them away from a com- CRAIN’S DETROIT BUSINESS if Parastar’s system reduces costs fortable environment they are in Greg Beauchemin says and protects patient safety. unless they have a real medical Community EMS, a Southfield- “We will prove to payers (and emergency.” based ambulance and consulting Community EMS can make a the Centers for Medicare and Medic- Vieder said many 911 ambu- company, has begun pilot testing a aid Services) that from a long-term lance calls are avoidable by assess- mobile health initiative to use house call for one-tenth of the cost perspective, patients are better off ing patients and providing at- paramedics and telemedicine to and costs are lower by treating (pa- home paramedic or nursing care. assess the health of chronic dis- of an ambulance run to a hospital. tients with non-emergency condi- Besides reducing unnecessary ease patients who develop non- tions) at home,” Beauchemin said. hospital readmissions or admis- emergency health problems. Center in Farmington Hills to test ford) ER physician screens the Vieder said the problem is that sions, Bersche said, the project The pilot is viewed as a way to its system on patients who have call,” Vieder said. “We go through a Medicare and private payers don’t also could reduce ER utilization reduce costly hospital readmis- been screened by nurses and series of questions and determine if have a reimbursement code to pay that could lower staffing costs. sions and unnecessary visits to physicians, said Kevin Bersche, a patient is a candidate. If we don’t for paramedic house calls or the At Botsford Hospital, for exam- emergency departments. Parastar’s director of operations. think so, 911 is called.” use of telemedicine. ple, 26 percent of patients who en- “When a patient is discharged Bersche said the advanced prac- When paramedics arrive at nurs- “We hope Medicare and payers ter the ER are admitted to the hos- from a hospital to home or long- tice paramedics will be in close ing homes, Vieder said, they will adopt a shared savings model where pital. Of total hospital admissions, term care facility and they have a contact with emergency physi- help evaluate the patients and con- the money saved by eliminating 70 percent come through the ER, chronic illness, many things can cians at Farmington Hills-based nect them to “VideoDoc” telemedi- transport and treatment costs can Vieder said. trigger a patient being sent back to Botsford Hospital, which owns Com- cine devices provided by Wixom- be shared” with providers, Beau- “There is no doubt that if we re- the hospital,” said Greg Beau- munity EMS and is collaborating based Health Net Connect Inc., a chemin said. The shared savings duce the number of people coming chemin, CEO of Community EMS. on the initiative. subsidiary of J&B Medical Supply Co. model could be a precursor to a for- into the ER, we would have fewer in- “Some symptoms can be ad- He said similar community para- Inc. mal reimbursement code, he said. appropriate hospital admissions dressed by home health agencies. medicine programs in Texas and Health Net’s VideoDoc, which Bersche said Community EMS and lower costs to the system,” he But after hours, they use an ambu- Minnesota are showing promise. features high-definition cameras has applied for a $3.9 million CMS said. lance,” Beauchemin said. “We want to legitimize that and two-way audio systems, allows Innovation Center federal grant to Gregory Berger, M.D., executive Because the average cost of an treatment can be done and that it physicians to remotely examine fund the test program. If approved, medical director with Detroit Med- ambulance run to a hospital is does not jeopardize care,” said patients, talk with them and moni- the funds would help pay for the ical Center’s Michigan Pioneer ACO, $3,700, Beauchemin said, Commu- Bersche, who was deputy chief of tor vital signs. mobile health initiative, he said. said the Community EMS initiative nity EMS can make a house call the Farmington Hills Fire Department “Under the supervision of a Vieder said elderly patients at is a promising method that can for “one-tenth of that cost.” He for 32 years before joining Paras- physician, paramedics will use nursing homes and residencies are save money and improve quality. said at least 50 percent of the am- tar last June. VideoDoc to find out why (pa- often unnecessarily sent by ambu- “A lot of people end up at the bulance runs in the city of De- Sanford Vieder, D.O., Botsford’s tients) are wheezing, coughing or lance to hospital emergency rooms hospital for many reasons,” Berg- troit’s Detroit EMS are unneces- ER director, said nurses at Botsford having a problem,” Vieder said. when they have some sort of med- er said. “There might be a social sary. Continuing Care have been trained “They will give antibiotics or ical distress. problem or a prescription or food Under the mobile health initia- to determine when a patient needs steroids and treat them as needed. “If they have a medical problem, program. The idea of getting extra tive, Community EMS and its con- an ambulance or could be served by If they are not improving, they will they frequently get put into a truck, eyes at the home is valuable.” sulting firm subsidiary, Parastar, the mobile health program. be transported to the hospital.” brought to a chaotic ER, treated, Jay Greene: (313) 446-0325, will send advanced practice para- “Based on our protocol, the nurs- Beauchemin said the mobile then sent back to the nursing [email protected]. Twitter: @jay- medics to Botsford Continuing Care es call a 1-800 number and a (Bots- health initiative will test the care home,” Vieder said. “The benefit is bgreene

How Danialle and Peter Karmanos, Jr. are sharing the joy of natural childbirth.

After giving birth to four healthy educating women about the beneﬁts sons, they wanted to make natural of natural birth.” childbirth an option for others. Opening in 2014, the Karmanos Their vision was to create a center Center for Natural Birth will be that would make the beneﬁts of located within Beaumont, Royal natural childbirth available to other Oak’s recently renovated Danialle parents – set in an environ ment and Peter Karmanos Jr. Birth Center, including spa-like suites, a roof-top a state-of-the-art labor, delivery and garden and specially trained nurses recovery unit dedicated to provid- and obstetricians. ing care for both low and high risk pregnancies. “Natural childbirth is not for everyone, but we hope to inspire women All of us are grateful for the gener- to learn more about the choices they osity of the Karmanos family. have in creating their own personal birth experience,” Danialle said. Her And they remind us that it doesn’t husband, Peter, agreed, “We want to take a medical degree to improve change the way babies are born by lives. All it takes is a heart. 20140303-NEWS--0008-NAT-CCI-CD_-- 2/28/2014 5:05 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS March 3, 2014 OPINION LETTERS Toughen state laws OCC ceramics could mold future Editor: And, if anyone should wonder Crain’s Detroit Business In reference to the Feb. 24 edito- “Why ceramics?,” an article about welcomes letters to the editor. rial, “Faculty must serve public All letters will be considered for Dr. Wolfgang Rossner, a top inno- against metal theft needs, not own,” regarding the publication, provided they are vator at Siemens AG who is called controversy at Oakland Communi- signed and do not defame the “king of ceramics,” should ty College, it may be helpful if the etal theft is the scourge of Michigan cities. From individuals or organizations. convince OCC board members writer takes a broader look at the that, rather than eliminating or Muskegon to Flint, Grand Rapids to Detroit, businesses, Letters may be edited for length possibilities that exist at OCC. My and clarity. downgrading the ceramics pro- homeowners and property owners feel powerless to comments refer specifically to the M Write: Editor, Crain’s Detroit gram, they should focus on a thwart thieves who have devastated many neighborhoods. ceramic technology program; how- Business, 1155 Gratiot Ave., search for additional ceramics fac- The laws need to be tougher. ever, they have implications for Detroit, MI 48207-2997. ulty. The article, on Siemens’ web- OCC and community colleges in In his luncheon speech last Tuesday as Crain’s Newsmaker Email: [email protected] site, states: “Ceramic materials general. can be found in products as di- of the Year for 2013, Detroit Mayor Mike Duggan urged passage Although I’ve not researched verse as X-ray detectors, light- of HB 4593 in the Michigan Legislature. the history of the program, it is semiconductors or to clinical ap- emitting diodes and turbine clear from the program’s name plications of bioceramics is large- If passed, the law would change how “scrappers” get paid blades. The special quality of these that, at one time, decision makers ly unexplored. Yet the trail has and create a paper trail, including a photo of individual scrap- substances … is the fact that they at OCC recognized the technologi- some markers. Detroit’s Pewabic pers who bring in scrap metal for payment. But the rules would cal aspects inherent in the study of Pottery grew in part from the for- are the key components of so many apply only to three types of material: catalytic converters, air- ceramics, including clay and glaze tuitous friendship between a pot- products.” conditioning units and copper. chemistry, material science and ter and a dental supplier who de- Discussions about the future of Some scrap yards oppose the bill, which has strong support heat technologies. Those aspects veloped a kiln for firing dental Oakland Community College continue in a framework of tiresome from city officials, police agencies, neighborhood associations continue to embody ceramics in- enamel. Pewabic Pottery continues to be a leader in ceramic art and contentious arguments pitting and utilities that are trying to stay ahead of the crooks. struction. The technological aspects of the program, combined and design; unfortunately, its con- faculty against administrators. In- As we reported on crainsdetroit.com (“Duggan to business with the historically strong contri- tributions to bioceramics are only stead, the educational community, community: Help stop scrap metal theft …”), metal thefts cost butions made by OCC to the devel- historical. backed by leaders in business and DTE Energy Co. millions of dollars a year. Sherri Welch report- opment of the ceramic arts, pro- If decision makers will look be- industry, should be considering ed that in one six-week period, thieves broke into 22 of DTE’s vide the foundation for an yond data from present programs how we can create curricula that to envision new possibilities, they power substations to steal copper cable. An investigator found innovative STEM (science, tech- will contribute to the growth of the nology, engineering and math) to could be the among the first to de- state and be worthy of the intelli- 2,000 pounds of cable clearly marked as DTE property in a local STEAM (STEM plus art) program sign a curriculum that would take gence of students — curricula that scrap yard, but the owner got off with a misdemeanor. Under that could make OCC a leader in students from high school chem- will create “new abilities to make HB 4593, knowingly buying stolen scrap could bring five years workforce development. istry and physics courses to an in- new things, which creates new in jail and a $5,000 fine. The path from the clay and troduction to material science and wealth.” Michigan cities — and even rural areas — have been devas- glaze tubs at OCC’s ceramics lab to design engineering, fields that Debra Henning high-tech ceramic capacitors and lead in technological innovation. Detroit tated by metal thieves. This is a bipartisan issue. Tougher rules are needed. Speaker points way to revival TALK ON THE WEB Historian Thomas Sugrue, whose research has focused on From www.crainsdetroit.com Detroit’s recent history, offered his own road map for Detroit’s of the change being imposed on revival at a conference last week created by the Detroit Region- Re: John Dingell to retire Reader responses to stories and this college, not a resistance to John Dingell will go down in his- blogs that appeared on Crain’s al Chamber. change itself. It was about a chan- tory as one of the greatest legislators website. Comments may be We think at least three points bear repeating: cellor who, for about two years be- ever to serve our country, and cer- edited for length and clarity. fore the no-confidence vote, re- One, Detroit needs a diversified labor market with good, secure tainly to serve Michigan. Also, fused to meet with faculty groups, jobs to replace low-skilled jobs that disappeared in recent decades. winning re-election for decades is Re: Editorial: Faculty must serve public stopped listening to faculty input, Two, without quality schools, the city can’t hope to have a not luck, it is the result of deliver- made bad decisions and was gener- ing on your promises and remain- needs, not own diverse population, either racially or by income. “The funda- ally not trusted. ing incorruptible in an increasing- The Crain’s article about Oak- mental problem is education policy tends to gather students Cabie ly corrupt Congress. Kudos and with the most disadvantages in districts with the most disad- land Community College states heartfelt thanks to John Dingell. that recent problems at that insti- vantages,” Sugrue said. 246767 tution are the result of a comfort- Re: Post-bankruptcy Detroit to keep Three, a “go-it-alone” strategy for the city won’t work. “Re- able faculty who are resistant to defined benefit pension plan gion matters,” Sugrue said, “now more than ever.” Detroit can’t Good riddance! Selfish people like change. This is nonsense. I have Dingell who think being a con- taught at OCC for over 20 years, Why? Nearly ever stable govern- be left to fend for itself. Since inner-ring suburbs are now shar- ment has converted to a defined ing some of Detroit’s problems, it could be a platform for greater gressman is a birthright are part and can assure Crain’s readers of the reason for the collapse of that the February vote of no confi- contribution plan. Why would De- regional approaches. Not a metro government, he said, but good governance in our nation. dence in the leadership of Chancel- troit continue a failed program? Oh, coalitions to help address problems with state support. Greg Thrasher lor Tim Meyer is about the nature See Talk, Page 9 KEITH CRAIN: The problem is wider than just potholes Whether we like it or not, De- tial as well. That prob- pipes that are decades hope that we are studying some of ing to be cheap. My guess is that troit is more than 300 years old lem exists not just in old. They too, like our the more successful highways in repairs and replacements will cost and, sadly, much of its infrastruc- Southeast Michigan but streets and roads, have the world to make sure that we a lot more and create a lot more in- ture, if not as old as that, is simply all over the state. The simply outlived their copy the process in Detroit and in convenience than starting fresh. wearing out. repairs, if they are done useful lives. To repair, Southeast Michigan. Unfortunately, 300 years later, we This winter has been particularly correctly, will create rebuild and replace our In addition to our roads, there are starting fresh. severe, and certainly the streets and massive amounts of inwater and sewer system are plenty of bridges and overpass- It’s time we acknowledge the roads in Southeast Michigan have convenience and con- will probably be expen- es that have to be repaired or re- challenges and condition of all of taken their toll on themselves and gestion. But they are sive enough to make placed in the coming years. And our systems in our community. It’s on the customers and trucks. One of necessary. any accountant cry. the sooner, the better. always painful as people age, and the simple problems is that cold Unfortunately, the It will not be enough Chances are pretty good that De- it’s just as painful for cities. De- patching is nothing more than a potholes we’re seeing to just patch our roads. troit has been kicking the can troit is certainly one of the older very inexpensive Band-Aid. are, in all likelihood, As we are discovering down the road for repairs and communities in our country. Our roads need substantial just the tip of the iceberg. The on some of our newest express- maintenance on our infrastruc- Detroit is going to need a lot of amounts of money. If the money number of water main breaks this ways, deterioration has been mas- ture for many years and decades. repairs, and it’s time we allocated becomes available, the inconve- winter has been substantial. Our sive and severe, and quicker than Now, sadly, we are all going to be an adequate amount for mainte- nience to drivers will be substan- water and sewage system have we thought possible. I can only paying the price — and it’s not go- nance. It’s painful, but it’s true. 20140303-NEWS--0009-NAT-CCI-CD_-- 2/28/2014 11:49 AM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Age isn’t the only reason to yield power

When is it time to go? and I want to do the job Conyers, 84, has held a what many folks have been whis- nouncements from Dingell and Some companies have mandato- I can and should do,” he congressional seat pering for years. Sheffield, 59, U.S. Rep. Candice Miller, the Re- ry retirement ages. said. “I don’t want peo- since 1965. Conyers an- plans to challenge Conyers in the publican from Macomb County’s DTE Energy Co. said farewell to ple to feel sorry for me. nounced he planned to August primary. He is pastor of Harrison Township who champi- Paul Hillegonds last week when he … I don’t want to go out run again, perhaps New Destiny Christian Fellowship ons defense and protecting Michi- reached his 65th birthday. He feet first.” prodded by potshots Church in Detroit and the father of gan’s water resources. joined DTE in 2005 as senior vice Dingell, 87, is the from a political rival. newly elected Detroit City Council But John Conyers? Tough to president for corporate affairs. longest-serving mem- The Detroit News member Mary Sheffield. name anything he has brought to Fortunately for the region, Hille- ber of Congress. We quoted the Rev. Horace Conyers has a lot of history be- his district in recent years. And gonds will remain active, includ- have watched his body Sheffield III saying that hind him. But maybe Detroiters age may not have anything to do ing as chairman of the new region- fail in recent years, the Conyers wasn’t mental- should be asking, “What have you with that. al transit authority. cane, the stoop. But the ly sharp and “other done for me lately?” We get a lot of Mary Kramer is publisher of Sixty-five is young when “60 is mind? It’s still there. people” were making press releases at Crain’s, including Crain's Detroit Business. Catch her the new 40” has become the It’s still sharp. decisions for him. To announcements from congression- take on business news at 6:10 a.m. mantra for baby boomers. But how But he knew it was time to go. WJR’s Frank Beckmann, Sheffield al reps touting grants and other Mondays on the Paul W. Smith show about folks in their 80s? When That example did not inspire a said: “The congressman is not all ways they “bring home the ba- on WJR AM 760 and in her blog at should they move over to make similar announcement from his there.” con.” www.crainsdetroit.com/kramer. room for another generation? colleague in the 13th District. John Sheffield only voiced publicly It’s easy to remember such an- E-mail her at [email protected]. Last week, U.S. Rep. John Din- gell answered that question when he announced he would not run again for the 12th District seat. “I want to serve honorably and well,

TALK CONTINUED ■ From Page 8 the question is answered right there. William J

Had they changed to a defined contribution plan when everyone else went that way, they wouldn’t First Place Now proud be in the trouble they’re in now. YaDontSay

Re: Probation for 2 Detroit building Bank. to be Talmer inspectors who took bribes If I understand this right, ignor- While our name may be different, the ing the electrical violations could Bank and Trust. names of the people who take care of have resulted in a fire where people died. And do we really think this you, and the personalized service they is the only time this has been done? provide, are still the same. So is our Given the city’s history, it wouldn’t surprise me if they were strong commitment to this community. still working there. Notice no mention of them being fired. In fact, the name “Talmer” is a tribute MikeInMI by the Bank’s two principals to their What kind of a message does grandfathers (named Talmage and this send with such a light sentence? I don’t understand, especially with Merzon), who both dedicated their all of the corruption that has oc- lives to community service. curred in Detroit over the past 65 years on the city government level. What’s more, Talmer Bank, just like Therightage First Place, is a Midwest-based Re: Five-story Royal Oak apartment community bank—and one with building to break ground in spring demonstrated ﬁnancial strength. So I grew up in Royal Oak, and I’m you can count on us to take care of sick of all the development. Royal your business needs for many years Oak used to be a family community, but now it’s an alcoholic-narcis- to come. sistic-materialistic-singles community, and it’s extremely crowded. The people on the plan- Please stop by soon. You’ll quickly ning commission only care about discover that we’re now an even greater business owners and tax revenue. They don’t give a rip about the asset to your community. homeowners in the city. Most of the green spaces that were around 20 years ago are gone and have been filled end-to-end with condos and apartments. ReformedWingNut

I like it, but I would be surprised if it happens. It will be great for the area, but just being a pessimist. So, right now there are fairly sizable projects around the city. Exciting, www.talmerbank.com | 855-882-8824 but need folks to start shopping retail in downtown Royal Oak. cdd 20140303-NEWS--0010-NAT-CCI-CD_-- 2/28/2014 12:30 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS March 3, 2014 New plan moves personal property tax to forefront

It looks like local communities on the August ballot. Calley has during the lame-duck session in De- ernments were receiving in De- ning in 2016 a series of major tax will be made whole on personal been the point person for the gover- cember 2012, if approved by voters cember 2012. credits for business given out un- property tax after all. nor on the issue. this August. That gave supporters When the phaseout of the PPT be- der the Granholm administration After a year of negotiations be- The plan, as originally pro- of the repeal time to build their gins in 2016, the state will dedicate will begin to expire. tween lawmakers and business and posed, would have guaranteed case, and opponents time to work $380.6 million to reimburse local Right now, those tax credits cost local government groups, Lt. Gov. only 80 percent reimbursement, with the administration to ensure governments. By 2023, once the tax the state between $500 million and Brian Calley announced last week but it would have allowed commu- that the loss of revenue the tax pro- is fully phased out, the state’s contri- $600 million each fiscal year in lost that use tax revenue will be used to nities to seek a special assessment duces does not cause shortfalls in bution goes up to $548 million. tax revenue, but that will diminish fully reimburse local governments to make up the difference. municipal budgets around the state. The diversion of the use tax over the next several years. “This if the local personal property tax The Michigan Legislature re- Full reimbursement is defined won’t hurt other recipients of state plan will work,” Calley said. paid by some businesses is repealed pealed the personal property tax as the amount of money local gov- funds, Calley said, because begin- A bipartisan, 10-bill package (Sen- Capitol ate Bills 821- Briefings 830) making the change is PLATINUM STANDARD expected to FRACTIONALFRACTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PRPROGRAMS.OGRAMS. be approved SERVING ALL SOUTHEASTERN MICHIGAN. by the full Senate this week. After approval in the Senate, Chris Gautz the House is FINANCIAL SOLUTIONS expected to move just as swiftly, with the goal of having the bills in BUILT ON GENERATIONS OF TRUST front of Gov. Rick Snyder by the end of the month. Then the work begins on educating the public Insurance about the August vote. • Business groups had already be- • Employee Benefits gun pouring money into a fund to mount a campaign in support of the • Retirement Planning ballot question. But with passage of these bills that ensure local governments will be made whole, their

535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 lobbying organizations are now in support, making any organized op- A Member Firm of M Financial Group. position to the proposal negligible. Registered Representative with M Securities: Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. CORPORATEEAGLE.COM Chris Gautz: (517) 403-4403, LoVasco Consulting Group is independently owned and operated. [email protected]. Twitter: @chrisgautz

IS YOUR PLACE A COOL PLACE TO WORK? TIME TO NOMINATE Crain’s biennial Cool Places to Work in Michigan awards returns this year, and once again Real Estate Litigation Experience Crain’s is working with Best Companies Group ® of Harrisburg, Pa. The competition has In Your Corner. 2014 two parts: one questionnaire for employers, another for employees. The ■ Real estate litigation in state and federal combined, weighted results will courts, landlord-tenant and lease disputes determine who qualifies for Cool Places designation. ■ Construction lien and quiet title matters Best Companies supplies all participating companies — ■ In Your Corner. regardless of whether they win the Cool Places recognition — with a Best Companies Group employee feedback report based on employee responses to the 72- question survey. The report can help company executives identify strengths and weaknesses in their company culture and practices. To be considered for Cool Places to Work in Michigan, companies must register at coolplacestoworkmi.com by April 18. Other important dates, samples of the surveys and other information are on the website. Once registered, companies will be invited to participate in the surveys. Businesses and nonprofits can apply. Applicants must have a minimum of 15 employees working in Michigan and have been in business at least one year, among other criteria. Companies pay a fee based on First Tier Ranking company size to Best Companies Brad Defoe Real Estate Litigation to cover survey costs. The cost

Contact Brad at [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing ranges from $610 to $895 for online surveying, and $765 to $1,660 for paper surveying. 20140303-NEWS--0011,0012,0013-NAT-CCI-CD_-- 2/28/2014 11:48 AM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Kirk Pinho covers Crain’s lists real estate, higher Local sales, ranked by price, Page 14 education, and Oakland and Offices leases, ranked by square feet, Page 15 Macomb counties. Industrial leases, ranked by square feet, Page 16 Call (313) 446- Largest general contractors, Page 17 0412 or write kpinho @crain.com. Real estate Kirk Pinho PLANNED, PROPOSED DEVELOPMENTS Detroit rents Wayne County Consolidated Jail mixed-use redevelopment; 1.7 million square feet; $500 million; Detroit still a bargain Developer: Rock Ventures LLC, Detroit Status: Due diligence underway. It’s getting pricier to rent an Former Michigan State Fairgrounds site; apartment in the trendiest parts of mixed-use redevelopment; 1 million square Detroit these days, but landlords still feet; $150 million; Detroit can expect more upside in rental Developer: Redico LLC, Southfield rates. Status: Master planning underway; Renters in Detroit continue to construction expected in 2015. spend less than the 30 percent of their income for monthly housing Meridian Health Plan headquarters; expenses, considered to be the rule 320,000 square feet; $111 million; Detroit of thumb of affordability. That’s Developer: Schostak Bros. & Co. according to Apartment List, a San Status: Schostak is determining which tax Francisco-based website that has incentives to apply for; building to be ready more than 1.7 million monthly for move-in in 2017. visitors and features listings for Adell Towers mixed-use development; more than 600,000 apartments 500,000 square feet; $100 million; Novi nationwide. Developer: Burton-Katzman Development Apartment List found that Co., Bingham Farms Detroiters spend 27 percent of their Status: Seeking tenants. income on rent. Ford Lake mixed-use development; Monthly rent for a one-bedroom 700,000 square feet; $50 million; Ypsilanti apartment increased by 2.09 percent Township to $620 and by 1.74 percent to $744 Developer: Delaware Lake Shore LP, for a two-bedroom Detroit apartment Newport, Calif. in 2013, according to Apartment List. Status: Preliminary site plans are being “Detroit is still reasonable in terms reviewed by township; construction to start of rental costs,” said John Kobs, COURTESY OF SCHOSTAK BROTHERS & CO. this year. Meridian Health Plan is planning to move into a new building in downtown Detroit, as shown in this artist’s founder and CEO of Apartment List. rendering. It will be the first new major office construction downtown since 2006. Wayne State University mixed-use “Detroit has one of the lowest rents in development; 410,000 square feet; $60 America — it is the eighth lowest out million; Detroit of the top 100 cities by population.” Developer: Broder & Sachse Real Estate Austin Black II, president of City Services Inc., Detroit Living Detroit, said Status: Development agreements are being he has seen finalized and hotel operators are being recent average evaluated; construction slated for 2015. rental rates Building demand between $1.20 Rivertown mixed-use development along the Detroit River; 400,000 square feet; $55 and $2 per square million; Detroit foot. New office, industrial construction on the rise as Developer: McCormack Baron Salazar “Prices are on Development Inc., St. Louis the rise, and Status: Planning/pre-construction; Detroit City people are being Council approved the brownfield priced out” of the tenants seek own space, particular location redevelopment plan late last year. downtown, Black II square feet of new space came online, demand Midtown and BY KIRK PINHO Former Showcase Cinemas site Corktown rental markets, he said. CRAIN’S DETROIT BUSINESS for modern industrial buildings is fueling lo- redevelopment; 320,000-400,000 square feet; $50 million; Auburn Hills “That’s converting some people to cal and out-of-state developers to plan build- he pipeline for new office and industrial buyers: ‘I can own a home for the to-suit projects. About 700,000 square feet was Developer: Amson Dembs Development Inc., Novi same amount, if not less, than paying building construction in metro Detroit built in both 2012 and 2013, up from 200,000 rent.’ And, people now are looking at T is getting busier. square feet in 2011, according to CoStar. Go- Status: First building, a 168,000-square- foot headquarters for GKN Driveline and GKN neighborhoods near the downtown There are 8.4 million square feet of pro- ing forward, some of the new construction posed office buildings and 8.5 million square Sinter Metals, is under construction. It will area” like Boston-Edison, East Village will redevelop or expand upon existing devel- be complete by the end of the year. and Indian Village, and Lafayette feet of proposed industrial space construction opments. Park. in Wayne, Oakland, Macomb, Livingston and For example, Novi-based Amson Dembs Devel- Third Towne Square office building; Black said he believes rents will Washtenaw counties, according to Washing- opment Inc. purchased a former Showcase Cine- 300,000 to 350,000 square feet; $37.5 million to $49 million (estimated); Southfield level off in Midtown, Corktown and ton, D.C.-based real estate information service mas building in Auburn Hills, razed it and Developer: Redico LLC, Southfield downtown as new apartment and loft CoStar Group Inc. plans to turn the site into a high-tech business developments there hit the market. While the timelines for many projects will park with two buildings between 160,000 Status: Seeking tenants. Kobs said even though Detroit isn’t depend on success in landing tenants, devel- square feet and 200,000 square feet each. Faurecia North America Inc. headquarters; following the trend, in most markets opers and brokers say demand for the new Also in Auburn Hills, Faurecia North America 300,000 square feet; $30 million; Auburn people are spending more on rent buildings is being driven by tenant needs for Inc., the fifth-largest auto supplier, is building Hills while earning less. specific kinds of space, or the desire to be in a a three-story, 300,000-square-foot North Amer- Developer: General Development Co., Southfield New York City remains the most particular part of town. ican headquarters on 211 acres at I-75 and Uni- expensive place. The average rent for “The existing facilities, for a myriad of rea- versity Drive in the Oakland Technology Park. Status: Under construction; opening in March. a one-bedroom unit is $3,269, sons, don’t often fit with what the current de- The new headquarters will be a $30 million de- highest in the nation and 58 percent mand is and it’s sometimes better to build velopment by Southfield-based General Devel- American Axle & Manufacturing Holdings of household income. new,” said Kevin Hegg, vice president of the opment Co. Inc.’s former Detroit manufacturing complex; industrial build-to-suit buildings at Boston residents spend the Canton Township office of Ashley Capital LLC. In addition, developers like Southfield-based greatest percentage of their “There’s been a consolidation within the sup- undetermined square footage and Redico LLC and California-based Industrial Realty development cost; Detroit household income on rent. The plier groups of the larger, top-tier companies, Group LLC plan build-to-suit industrial projects average rent for a one-bedroom is and as they are growing and becoming more so- Developer: Industrial Realty Group LLC, for large tenants in western Wayne County and California $2,663, or 62 percent of household phisticated, the demands as far as amenities the city of Detroit, respectively. Status: Seeking tenants. income, according to Apartment List. and features — have become more specific.” Redico purchased 59 acres of vacant land in Rents in Portland, Ore., increased Northville Technology Park; industrial build- the most from January 2013 to the Northville Technology Park on the northeast to-suit buildings; undetermined square footage January 2014. They rose by 10.01 Industrial corner of Five Mile and Beck roads in and development cost; Northville Township Northville Township in September. percent to $1,321 for a one-bedroom Although nowhere near Detroit’s industrial Developer: Redico LLC, Southfield unit. construction peak in 1998 when 17 million See Building, Page 12 Status: Seeking tenants. 20140303-NEWS--0011,0012,0013-NAT-CCI-CD_-- 2/28/2014 11:37 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS March 3, 2014 Focus: Real Estate Building: New office, industrial construction on the rise ■ From Page 11 The company plans build-to-suit projects on 27 of those acres; Redi- co sold 32 of the acres to an undis- closed buyer. Last month, Industrial Realty Group closed on the purchase of the majority of Detroit-based Amer- ican Axle & Manufacturing Holdings Inc.’s former Detroit manufacturing complex at I-75 and Holbrook Street. “The deals that we’re seeing — a lot of these are overseas companies, and that continues to bode COURTESY OF BIDDISON ARCHITECTURE well for Detroit being the epicenter Left: Construction is expected to begin next year on Wayne State University’s for automotive business in the $60 million mixed-use development on 1.5 acres at Cass and Canfield, shown in world,” said Gary Weisman, prin- an artist’s rendering. Above: Amson Dembs Development purchased a former cipal of General Development. Showcase Cinemas building in Auburn Hills, razed it and plans to turn the site into a high-tech business park, shown in an artist’s rendering. There are 23 proposed industrial COURTESY OF BRODER & SACHSE REAL ESTATE SERVICES INC. construction projects of 100,000 just 100,000 square feet of space was based Meridian Health Plan is plan- quindre Cut Greenway and Riopelle square feet or more in metro De- Office built, down from 300,000 in 2011 and ning to relocate into a new 16-story, Street. That’s where St. Louis-based troit, according to CoStar. The office construction market 200,000 in 2012. $111 million office tower on Monroe McCormack Baron Salazar Develop- “Fifteen to 20 percent of our busi- also has several planned building Of the 23 proposed office con- in the central business district so it ment Inc. plans 500 residential units ness is now construction money,” projects that could change the lo- struction or redevelopment pro- can consolidate employees from and retail and restaurant space. But said Dennis Bernard, founder and cal landscape. jects totaling 100,000 square feet or two buildings into one. The 320,000- the largest planned mixed-use de- president of commercial mortgage The region’s office market hit its more, all but two of them are in square-foot building by Livonia- velopment for the region would be broker Southfield-based Bernard Fi- peak in 1986, when 8.4 million Wayne and Oakland counties, ac- based Schostak Bros. & Co. would be by Dan Gilbert. nancial Group Inc. “It was never that square feet of space was construct- cording to CoStar. the first new major office construc- Gilbert’s Rock Ventures LLC is plan- big.” ed, according to CoStar. Last year, Among the big projects, Detroit- tion downtown since construction ning a $500 million mixed-use rede- of One Kennedy Square was com- velopment of the failed Wayne pleted in 2006. County Consolidated Jail site that And with Redico’s two Towne would feature 1.7 million square feet Square towers in Southfield total- of space, with 700 residential and ho- ing about 670,000 square feet, and tel units and 200,000 square feet of almost fully occupied, the company retail space and parking. It would be may construct a third building at adjacent to Greektown Casino-Hotel, the site, said Dale Watchowski, which came under majority control CEO, COO and president of Redico. of his Rock Gaming LLC’s Athens Acqui- That build-to-suit Class A tower, sitions LLC in April 2013. which would be 300,000 to 350,000 There are also mixed-use pro- square feet on the site northeast of jects in the suburbs, including a $50 Northwestern Highway between million development in Ypsilanti Civic Center Drive and Lahser Township planned by Newport, Road, is “a very distinct possibili- Calif.-based Delaware Lake Shore LP. ty,” Watchowski said. (Crain’s first This would include commercial reported the plans in the Feb. 24 edi- and restaurant space, along with tion.) 600 apartment units, planned on “We think that is indicative of the east side of Ford Lake. the demand for quality space in Plus, the former Novi Expo Cen- the metro area,” Watchowski said. ter is planned to get a $100 million Depending on the size and num- mixed-use development by Bing- ber of stories the tower has, con- ham Farms-based Burton-Katzman struction costs could be as high as Development Co., the developer for $49 million, construction experts property owner Kevin Adell. Adell estimate. owns the land at I-96 and Novi Road and is president of Clinton Town- ship-based Adell Broadcasting Corp. Mixed use The two-building, 500,000-square- In addition to new office con- foot Adell Towers development is struction, several major mixed-use expected to consist of either two projects are also on the horizon, eight-story office buildings or an of- many of them in the city of Detroit. fice building and a hotel. Retail is There is the redevelopment, also expected on the first floor of at least by Redico, and the Magic Plus LLC one of the buildings. THE STRENGTH investment group of the former ® Michigan State Fairgrounds site at Market drivers BEHIND OUR CLIENTS 8 Mile Road and Woodward Av- enue, a mixed-use project valued Bryce Kelley, director of the at about $150 million. Wayne County Economic Development Business leaders turn to Plunkett Cooney for determined, Another is the 410,000-square- Growth Engine, said the improved distinctive and fearless legal advice to achieve the right result foot mixed-use project of 248 resi- economy triggered the renewed de- from the boardroom to the courtroom. dential units for Wayne State Univer- mand for new construction in 2013, sity at Cass Avenue and Canfield, when there was nearly $600 mil- Q Banking & Finance QBusiness Law Q Insurance Law according to CoStar. Construction lion in private investment in con- on the Wayne State project, a $60 struction and redevelopment pro- Q Q Labor & Employment Law Business Litigation million development, is expected to jects in Wayne County. QConstruction Law QMergers & Acquisitions begin next year. Detroit-based He expects the county to attract QReal Estate Law QHealthcare Law Broder & Sachse Real Estate Services at least that much in new projects Inc. will develop the 1.5-acre site. this year. Plans also include 19,000 square feet “We now have a sense that there of retail space, a hotel with up to 120 is a need for more space,” Kelley ATTORNEYS & COUNSELORS AT LAW rooms and a conference center that said. “I think 2014 will certainly Randall R. Hall can accommodate 300 people. match last year, and I think it has Business Law Department Leader In addition, there’s the $55 mil- the potential to go beyond that 248.901.4002 | [email protected] lion, 400,000-square-foot mixed-use number.” development facing the Detroit The need for more space overall is riverfront along Atwater and triggered by the returned health of WWW.PLUNKETTCOONEY.COM Franklin streets between the De- See Next Page 20140303-NEWS--0011,0012,0013-NAT-CCI-CD_-- 2/28/2014 11:28 AM Page 3

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 13 Focus: Real Estate Commercial mortgage defaults fall … but could rise

BY KIRK PINHO What happens to the real estate field Town Center, was weighing CRAIN’S DETROIT BUSINESS market if the loans mature and bor- four purchase offers ranging from rowers can’t pay them off is any- $160 million to $170 million for the Lending experts warn that the body’s guess, said Jason Jarjosa, Class A complex. next three years could bring a wave 3000 2000 Blackstone Tower managing partner of Birmingham- Blackstone is in default on its of high-profile commercial mort- Tower Group LP, based Bloomfield Capital Partners. original $235 million mortgage 4000 1000 gage defaults in metro Detroit — owner of the “It has to do with the underlying from Irving, Calif.-based Greenwich Tower Tower Southfield the volume will depend on the state values of those buildings,” Jarjosa Capital Financial Products Inc., with of property values and underwrit- Town Center, is in default said. “It is about how robust the liq- $138 million owed, according to ing standards as loans come due. on its original uidity markets will be. The ques- data from Bloomberg LP. Two of the region’s largest office $235 million tion is whether there will be enough Nemer Property Group, owner of complexes, the Southfield Town Cen- mortgage, capital that other lenders are will- the 1 million-square-foot Galleria ter and the Galleria Officentre in with $138 ing to lend.” Officentre off Northwestern High- Southfield, are in default by more million owed. Bernard also said the 2005-07 debt way west of Telegraph, owes more than $220 million on mortgages; could mature without a significant than $84 million on its original both are poised to get new owners. real estate mar- “It was a combination of cheap spike in defaults occurring. “It may $89.6 million GE Capital mortgage How often are commercial bor- ket is seeing money, loose lending standards not be as bad as we all fear,” he said. for the four-building complex, for rowers in Detroit missing pay- higher occupan- and a voracious appetite for CMBS, That’s because the commercial which it purchased majority ments? Over the past year, the rate cy rates and just like in the residential market,” real estate market is improving, rights in 2007, according to Bloom- of default on debt from commercial rents are rising, Bernard said. and loan underwriting standards berg. mortgage-backed securities out- meaning bor- “We weren’t as bad as residen- are relaxing, “but not to the point The Galleria and Town Center paced national averages, according rowers are bet- tial, but we weren’t much better.” of crazy,” Bernard said. And while have plummeted in value since to data from New York City-based ter able to make In 2005, $1.65 billion in debt from special servicers are prepared to 2005. According to Bloomberg, the Trepp LLC. debt service pay- commercial mortgage-backed secu- take back properties, they aren’t Galleria was valued at $112 million In January, there was a 14.79 ments, said Den- rities was issued in metro Detroit, as inclined as they were to unload in October 2006 but was most re- percent default rate ($780 million) Bernard nis Bernard, according to Trepp. That tapered them at discount prices simply to cently valued at $47 million in July in the metro Detroit market on founder and off over the next two years, as $1.44 recoup some of the debt, he said. 2012, a 58 percent drop. A new ap- $5.27 billion of outstanding com- president of Southfield-based Ber- billion was issued in 2006 and $1.22 Last year, $1.05 billion in debt praisal is being conducted. mercial mortgage-backed securities nard Financial Group Inc. billion in 2007. from commercial mortgaged-back The Town Center was appraised debt, according to Trepp. The na- However, it could be the calm “Our industry is going to have a securities was issued, according last summer at $177.5 million, 45 tional average was 7.25 percent. before the storm. In 2005, 2006 and massive rollover in 2015-17,” to Trepp. That dwarfs the previ- percent below a 2004 appraisal of In January 2013, there was a 2007, record levels of debt from Bernard said. “That’s where we ous two years: In 2012, there was $321 million, Bloomberg reported. 17.32 percent default rate on $5.81 commercial mortgage-backed se- may see problems with maturity $454 million and in 2011 $216 mil- The Galleria ranks behind only billion of debt in the Detroit mar- curities were issued before the defaults and payoff problems. The lion. There was $142 million in the Town Center and the 5.5 mil- ket for a total of $1 billion in de- real estate crash and credit properties may not be worth 2010 and none in 2009, according to lion-square-foot Renaissance Center fault. The national average was crunch. Most of that debt is matur- enough under today’s underwrit- Trepp. in downtown Detroit in total size. 9.57 percent, according to Trepp. ing in 2015, 2016 and 2017. ing criteria to be able to pay off the In November, New York City- Kirk Pinho: (313) 446-0412, In the short term, default rates A series of factors caused the existing debt without bringing in based Blackstone Group LP, owner of [email protected]. Twitter: are improving here because the lending boom last time around. additional equity by the borrower.” the 2.2 million-square-foot South- @kirkpinhoCDB

From Previous Page

the automotive industry, which has prompted suppliers to expand their workforces, Weisman said. Last year, new car production went over the 16 million mark for the year for the first time since the recession. “In the Detroit area, we lost about a third of our suppliers,” Weisman said. “Then as the bailout took hold, it actually trickled down into the supplier base. The suppliers that re- mained, they all needed more capacity, and lots of them came off the fence all at the same time.” Watchowski agreed that improved economic conditions, and the corporate real estate needs that relate to that, have sparked demand for real estate. “Five years ago, Michigan was in a recession and the rest of the country was going into one,” he said. “The companies in Michigan really didn’t know ultimately if they were going to get larger, if they were going to contract, if they were going to go to another market or if they were going to survive at all.” Weisman said he expects 2014 to be on par with last year in new construction and redevelopment. “The market continues to be good,” he said. “There is a reason for new facilities because there just aren’t alternatives in the marketplace right now.” All told, things seem to be looking up, Bernard said. “We don’t have a building boom going on, but we certainly have building and development where we didn’t before,” he said. Kirk Pinho: (313) 446-0412, [email protected]. Twitter: @kirkpinhoCDB 20140303-NEWS--0014-NAT-CCI-CD_-- 2/28/2014 10:25 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 3, 2014

CRAIN'S LIST: LOCAL SALES Ranked by price

Price Rank Building Buyer Seller Broker/advisers Square feet ($000,000) A NEW SEASON Earhart Corporate American Realty Kojaian Management Jones Lang LaSalle Inc. 200,000 $43.9 Capital Properties, Corp., Bloomfield Hills 1. Center, Ann Arbor IS CLOSER THAN YOU THINK. New York City Sherwood Distribution Angelo Gordon & Sherwood Associates LP, CBRE Group Inc. and 1,180,980 $37.8 2. Center, Warren B Co., New York City Aspen, Colo. DTZ

Canton Corners Retail Schostak Bros. Co, Joe Cassic, Bloomfield CBRE Group Inc. 195,528 $28.0 3. Center, Canton Township Livonia Hills

Travelers Towers I and Time Equities Inc., Lehman Holdings LLC, Newmark Grubb Knight 790,000 $26.0 New York City New York City Frank 4. II, Southfield

One Northwestern Plaza, Alrig USA, Southfield Hines Interests LP, Jones Lang LaSalle Inc. 241,400 $19.3 5. Southfield Southfield

2190 Executive Hills Susquehanna Flagstar Bancorp Inc., Signature Associates Inc. 94,000 $12.1 , Auburn Hills (office Holdings & Troy 6. Blvd. Investments LLC, GUARANTEE YOUR building) Apopka, Fla. Eight properties , Plymouth Alidade Capital LLC, C-III Realty Services, NAI Farbman 334,000 $12.0 7. (3 industrial, 1 office, 4 office/ Bloomfield Hills Irving, Texas OPENING DAY TICKETS flex) FULL, 41 AND 27-GAME PLANS STARTING 38150-38220 Plymouth Hackman Capital LNR Property Corp., Transwestern 285,306 $10.7 , Livonia (industrial Partners/Oak Pass Miami Beach, Fla. 8. Road Capital Management, AS LOW AS $15 PER GAME building) Los Angeles Gulley Road Industrial M-Gad General Blue Dog Properties Trust, CBRE Group Inc. 1,060,126 $10.3 GREAT BENEFITS* INCLUDING: 9. Park, Dearborn Trading, Troy Jefferson, Wis. • Season Ticketholder discount 19401 Victor Parkway, Vorbeck Equities, Northern Equities Group, CBRE Group Inc. 46,297 $10.2 • Postseason ticket priority 10. Livonia (part of Victor Corporate Sarasota, Fla. Farmington Hills • Many more! Park) Madison Center, Madison Mahmoud Al-Hadidi, Wharton Realty Group, Friedman Integrated Real 227,088 $10.1 *Some restrictions apply 11. Heights Orchard Lake Eatontown, N.J. Estate Solutions LLC

Distriplex Metro One, ZYNP USA, Romulus Dennis Griffin, Pleasant Signature Associates Inc. 260,000 $9.0 Romulus Ridge and Colliers International 12. Inc.

4425 Purks Road, Auburn Shannon Precision Namdar Realty Group, Newmark Grubb Knight 183,919 $8.2 Hills (industrial building) Fastener LLC, Great Neck, N.Y. Frank and NAI Farbman 13. Madison Heights

Weather is no problem for precast. Lincoln at Ivy Hills, Harvest Properties C-III Realty Services, NAI Farbman and C-III NA $7.8 14. Pontiac (351-unit apartment LLC, Detroit Irving, Texas Realty Indoor manufacturing means we’ll have your product ready complex) and waiting for install as soon as the weather breaks. Alpha Tech Corporate Alidade Capital LLC, Lehman Holdings LLC, Signature Associates Inc. 232,000 $7.7 15. Park, Wixom Bloomfield Hills Portland

Market Place Shopping SOBB Investment, C-III Realty Services, NAI Farbman 258,333 $7.6 16. Center, Sterling Heights Torrance, Calif. Irving, Texas

Country Squire Coseo Properties Inc., Slatkin Corp., Southfield Signature Associates Inc. 202,400 $7.5 17. Apartments, Clinton San Diego, Calif. Township

43700 Glen Mar, Novi Gladstone Stag Industrial CBRE Group Inc. 156,200 $7.3 (industrial building) Commercial Corp., Management LLC, Boston 18. Mclean, Va.

The Centennial, Troy Mamta Holdings LLC, LNR Property Corp., Friedman Integrated Real 306,720 $7.2 19. Troy Miami Beach, Fla. Estate Solutions LLC

Gateway Park, Southfield Stag Capital Partners Kirco Holdings LLC, Troy CBRE Group Inc. 113,000 $7.2 19. LLC, Boston

5225 Crooks, Troy (office The H.N. and Frances Alidade Capital LLC, CBRE Group Inc. 56,000 $6.3 building) Berger Foundation, Bloomfield Hills 21. Palm Desert, Calif.

Gratiot Crossing Retail AZP Retail Investment C-III Realty Services, NAI Farbman 165,544 $6.0 Group, Scottsdale, Irving, Texas 22. Center, Chesterfield Township Ariz.

Stoneridge III, Bloomfield Alidade Capital LLC, Farbman Group, NAI Farbman 60,436 $5.9 23. Hills Bloomfield Hills Southfield

Weathervane Paragon Properties Slakin Corp., Farmington Signature Associates Inc. 110,800 $5.4 24. Apartments, Clinton Co., Bingham Farms Hills Time is everything these days. Township Precast is the answer. The Gateway Building, JFK Investment Co. C-III Realty Services, NAI Farbman 165,198 $5.4 Production during excavation so 24. Farmington Hills LLC, Bloomfield Hills Irving, Texas product can be installed in a snap. List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. KERKSTRA PRECAST B Lease renewal. www.kerkstra.com LIST RESEARCHED BY KIRK PINHO 20140303-NEWS--0015-NAT-CCI-CD_-- 2/28/2014 10:25 AM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 15

CRAIN'S LIST: OFFICE LEASES Ranked by square feet DOWNTOWN DETROIT PARKING

Rank Building Owner, owner city Tenant Broker Square feet Up to 800 paved surface parking spaces available in 2800 High Meadow Drive, General Development Faurecia North America Colliers International Inc. 278,000 Downtown Detroit at John C. Lodge Freeway (M10) on 1. Auburn Hills B Co. LLC, Southfield Howard (EXIT 1C) for your parking solution

North Troy Corporate Park, Rialto/Friedman Magna Mirrors of Colliers International Inc. 190,031 Troy Integrated Real Estate America Inc. and Friedman Integrated Real 2. Solutions LLC, Miami/ Estate Solutions LLC Farmington Hills Exceptional location with immediate access to all major freeways Ford Field, Detroit DLI Properties LLC, Lowe Campbell Ewald Jones Lang LaSalle Inc. 121,787 Long-term and Short-term leasing options 3. Detroit Features Lighted and Fenced in parking with Barrier Gate Arms (card access control ready) First National Building, Detroit Bedrock Real Estate Title Source Inc. Bedrock Real Estate Services 118,500 Shuttle Service and Security can be arranged 4. Services LLC, Detroit LLC Also available 600,000 SF of office space for lease (120,000 SF Wilshire Office Centre, Troy Magna International N.S. International Ltd. Core Partners LLC and 111,313 5. Inc., Toronto Newmark Grubb Knight minimum) at 1200 Sixth Street in Downtown. Office Site features Frank Prominent Exposure along the John C. Lodge Freeway. Triatria Office Building, Pearlmark Real Estate TRI-A Professionals LLC Transwestern and Grand 92,074 6. Farmington Hills Partners LLC, Chicago Sakwa Properties LLC Call Derrick or Sam today: 313.962.9595 PNC Center, Troy Kojaian Management Beaumont Health System Jones Lang LaSalle Inc. 78,724 7. Corp., Bloomfield Hills

6900 Orchard Lake Road, Kirco Health Partners, Beaumont Health System Jones Lang LaSalle Inc. 77,055 8. West Bloomfield Township B Troy

Laurel Park Place Office Schostak Bros. & Co., Tower International Inc. Schostak Bros. & Co. 76,363 9. Center, Livonia B Livonia

Farmington Hills Corporate Friedman Integrated North American Lighting Friedman Integrated Real 75,286 10. Real Estate Solutions Inc. Estate Solutions LLC and Campus, Farmington Hills LLC, Farmington Hills Mohr Partners Inc.

North Troy Corporate Park, Rialto/Friedman Magna Mirrors of Friedman Integrated Real 72,712 Integrated Real Estate America c/o Magna Estate Solutions LLC and 11. Troy, Troy Solutions LLC, Miami/ International Inc Colliers International Inc. Farmington Hills Metro West Technology Park, Metal Ply Systems, AVL North America Jones Lang LaSalle Inc. and 70,000 12. Plymouth Township B Cedar Springs Plante Moran Cresa LLC

Madden Building, Detroit B Piedmont Office Realty Miller, Canfield, Transwestern and CBRE 69,974 13. Trust, NA Paddock and Stone PLC Group Inc.

1001 Woodward Ave., Detroit Bedrock Real Estate Quicken Loans Inc. Newmark Grubb Knight 65,400 14. Services LLC, Detroit Frank and Bedrock Real Estate Services LLC

Albert Kahn Building, Detroit B Farbman Group, Albert Kahn Associates NAI Farbman and Newmark 62,700 15. Southfield Inc. Grubb Knight Frank

Northeast Corporate Center, McKinley Inc., Ann Cole Taylor Bank Jones Lang LaSalle Inc. 62,353 16. Ann Arbor B Arbor

North Troy Corporate Park, Kojaian Management Plex Systems Inc. L. Mason Capitani Inc. and 62,116 17. Troy Corp., Bloomfield Hills Skyline Property Group Inc.

One Kennedy Square, Detroit B Redico LLC, Southfield Caidan Management Co. Redico LLC 61,628 18. LLC

North Troy Corporate Park, Rialto/Friedman Quicken Loans Inc. Friedman Integrated Real 59,740 Integrated Real Estate Estate Solutions LLC and 19. Troy, Troy Solutions LLC, Miami/ Bedrock Management Farmington Hills Services LLC Bingham Office Center, Farbman Group, Comcast NAI Farbman and Real 58,710 20. Bingham Farms B Southfield Partners

17900 N. Laurel Park Drive, Schostak Bros. & Co., AAA Life Insurance Signature Associates Inc., A 58,596 Livonia B Livonia Cushman & Wakefield 21. Alliance Member and Schostak Bros. & Co. City Center Building, Troy B Redico LLC, Southfield New World Systems Redico LLC 56,875 22. Corp.

Seven Mile Crossing, Livonia B CW Capital Asset WorkForce Software LLC Friedman Integrated Real 56,559 23. Management LLC, NA Estate Solutions LLC

985 W. Entrance Drive, HP Enterprise Services Faurecia North America Colliers International Inc. 55,692 24. Auburn Hills LLC, NA

One Woodward Ave., Detroit B Bedrock Real Estate Kitch Druchas Wagner Advocate Commercial Real 54,600 25. Services LLC, Detroit Valitutti & Sherbrook PC Estate Advisors

List is based on information from CoStar Group Inc., CPIX, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information. B Lease renewal. LIST RESEARCHED BY KIRK PINHO 20140303-NEWS--0016-NAT-CCI-CD_-- 2/28/2014 10:26 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 3, 2014

CRAIN'S LIST: INDUSTRIAL LEASES Ranked by square feet

Rank Building Owner, owner city Tenant Broker Square feet 1. Sherwood Distribution Center, Warren B Sherwood Associates LP, Aspen, Colo. Chrysler Group LLC CBRE Group Inc. and DTZ 1,180,980

2. Brownstown Business Center, Brownstown Township B Ashley Capital LLC, Canton Township Cabot Street Real Estate LLC Signature Associates Inc. 522,492 3. Brownstown Business Center, Brownstown Township C Ashley Capital LLC, Canton Township GM Subsystems Manufacturing LLC Ashley Capital LLC 479,268 7900 Haggerty Road, Canton Township Equity Industrial Partners, Needham, Plastipak Packaging Inc. Signature Associates Inc. 442,500 4. Maine 5. Brownstown Business Center, Brownstown Township Ashley Capital LLC, Canton Township Dakkota Integrated Systems LLC Newmark Grubb Knight Frank 429,970 6. Plymouth Road Technical Center, Livonia Ashley Capital LLC, Canton Township Mastronardi Produce-USA Inc. Ashley Capital LLC 367,000 7. Brownstown Business Center, Brownstown Township Ashley Capital LLC, Canton Township Chrysler Group LLC Newmark Grubb Knight Frank and DTZ 366,648 8. 6505 Cogswell, Romulus Welsh Investments, Minnetonka, Minn. Piston Properties LLC CBRE Group Inc. and Noble Realty Inc. 364,620 9. Brownstown Business Center, Brownstown Township B Ashley Capital LLC, Canton Township Penske Logistics LLC CBRE Group Inc. 360,749 Warren Commerce Center at the Arsenal, Warren Swervo Development Corp., Minneapolis, KUKA Systems North America LLC Newmark Grubb Knight Frank and Signature 339,903 10. Minn. Associates Inc. Detroit Manufacturing Complex, Detroit American Axle & Manufacturing Holdings LINC Logistics Co. Colliers International Inc. 289,023 11. Inc., Detroit Shelby Industrial Park, Shelby Township Phoenix Shelby Industrial 1 LLC, Century Plastics Inc. Newmark Grubb Knight Frank 289,000 12. Chesterfield 13. Oakland Technology Park, Auburn Hills General Development Co. LLC, Southfield Faurecia USA Holdings Colliers International Inc. 278,000 14. 36555 Ecorse Road, Romulus Bay Logistics Inc., Hamtramck Romulus Real Estate LLC Signature Associates Inc. 263,550 15. Brownstown Business Center, Brownstown Township B Ashley Capital LLC, Canton Township Chrysler Group LLC DTZ 262,648 First Distribution Building, Romulus American National Insurance Co., UTi Integrated Logistics LLC Newmark Grubb Knight Frank and Lee & Associates 228,067 16. Galveston, Texas of Michigan LLC 17. Allied Commerce Center, Livonia Livonia Estates Ltd., Southfield Victory Packaging LP Newmark Grubb Knight Frank 200,000 18. Crossroads Distribution Center, Belleville Ashley Capital LLC, Canton Township Rose Moving & Storage Co. Inc. Ashley Capital 190,751 19. Crossroads Distribution Center, Belleville Ashley Capital LLC, Canton Township Glovis Alabama LLC Signature Associates Inc. 190,401 15030 23 Mile Road, Shelby Township Phoenix Contracting Corp., Mt. Clemens Century Plastics LLC L. Mason Capitani Inc. and Newmark Grubb Knight 179,917 20. Frank 5400 S. State Road, Ann Arbor Industrial Realty Group LLC, Torrance, Extang Corp. Signature Associates Inc. 166,535 21. Calif. 22. Orion Commerce Center, Lake Orion C Ashley Capital LLC, Canton Township Fuyao Automotive N.A. Inc. Principal Associates LLC 165,292 23. Mound Business Center, Warren Ashley Capital LLC, Canton Township William Beaumont Hospital Signature Associates Inc. and Jones Lang LaSalle Inc. 162,859 Romulus Business Center, Romulus Ashley Capital LLC, Canton Township Progressive Distribution Friedman Integrated Real Estate Solutions LLC and 162,146 24. Signature Associates Inc. Gateway Industrial Center, Detroit Hagar Pacific Properties, Newport Beach, Integrated Manufacturing & Assembly CBRE Group Inc. 155,000 25. Calif. 27767 George Merelli Drive, Warren B Warren Industrial Investors LLC, Android Industries-Sterling Heights LLC Signature Associates Inc. 150,000 26. Bloomfield Hills 27. 38220 Plymouth Road, Livonia Hackman Capital Partners, Los Angeles McKesson Corp. CBRE Group Inc. 145,232 28. Northline Industrial Center, Romulus Northline LLC, NA CHAT of Michigan Inc. Colliers International Inc. 143,599 29. Oakland Park, Highland Park Stuart Frankel Development Co., Troy Lear Corp. CBRE Group Inc. 141,729 30. Warren Business Center, Warren B Ashley Capital LLC, Canton Township Magna Modular Systems LLC Signature Associates Inc. 140,882 31. 27027 Mound Road, Warren H.B. Stubbs Co., Warren Beaumont Hospital Signature Associates Inc. and Jones Lang LaSalle Inc. 139,185 32. Airport Distribution Center, Romulus B Westcore Properties, San Diego, Calif. Cardinal Health Jones Lang LaSalle Inc. 136,500 Romulus Business Center, Romulus Ashley Capital LLC, Canton Township Focus Hope Enterprises LLC Colliers International Inc. and Signature Associates 135,385 33. Inc. 34. GM Powertrain Livonia Engine Plant, Livonia RACER Properties LLC, Detroit Bay Logistics Inc. Signature Associates Inc. and CBRE Group Inc. 132,535 36501 Van Born Road, Romulus B Ashley Capital LLC, Canton Township Progressive Distribution Centers Inc. Signature Associates Inc. and Newmark Grubb 127,160 35. Knight Frank 36. 27027 Mound Road, Warren Ashley Capital LLC, Canton Township William Beaumont Hospital Signature Associates Inc. and Jones Lang LaSalle Inc. 126,442 37. Lyon Industrial Research Center, New Hudson B Kellogg Co., Battle Creek Kellogg Co. Jones Lang LaSalle Inc. 125,775 Romulus Business Center, Romulus B Ashley Capital LLC, Canton Township Progressive Distribution Friedman Integrated Real Estate Solutions LLC and 121,160 38. Signature Associates Inc. 39. 5600 Bow Pointe Drive, Independence Township BC & JC Investments Inc., Gardenia, Calif. Magneti Marelli Holding USA Inc. Signature Associates Inc. and Lee & Associates 120,375 40. Oakland Technology Park/Cross Creek, Auburn Hills General Development Co. LLC, Southfield Atlas Copco USA Holdings Inc. Colliers International Inc. 120,000 41. 3300 University Drive, Auburn Hills B Sierra Capital Realty, NA GKN Driveline North America Inc. Signature Associates Inc. 114,000 42. 16630 Southfield Road, Allen Park City of Allen Park, Allen Park Roush Inc. CBRE Group Inc. 110,000 Brownstown Business Center, Brownstown Township C Ashley Capital LLC, Canton Township Transfreight LLC Newmark Grubb Knight Frank and Signature 97,033 43. Associates Inc. 6101 McKean Road, Ypsilanti BlueLinx Corp., Atlanta, Ga. BlueLinx Corp. Jones Lang LaSalle Inc. and Friedman Integrated Real 94,600 44. Estate Solutions LLC 2190 Executive Hills Drive, Auburn Hills B Flagstar Bank FSB, Troy Huntsman Corp. Signature Associates Inc., A Cushman & Wakefield 94,000 45. Alliance Member and CBRE Group Inc. Brownstown Business Center, Brownstown Township B Ashley Capital LLC, Canton Township Transfreight LLC Signature Associates Inc. and Newmark Grubb 93,922 46. Knight Frank Romulus Business Center, Romulus B Ashley Capital LLC, Canton Township Progressive Distribution Centers Inc. Signature Associates Inc. and Friedman Integrated 93,308 47. Real Estate Solutions LLC 48. 19 Mile Industrial Park, Sterling Heights The Sterling Group, Indianapolis, Ind. Kelsey Hayes Co. Colliers International Inc. 93,000 1450 McPherson Park Drive, Howell C Brio Development, Wixom Export Corp. Signature Associates Inc., a Cushman & Wakefield 90,000 49. Alliance Member 49. 13031 Prospect St., Dearborn MacLean Enterprises LLC, Taylor General Transit & Warehouse Inc. Newmark Grubb Knight Frank 90,000

List is based on information from CoStar Group Inc., CPIX, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information. B Lease renewal. C Lease renewal and expansion. LIST RESEARCHED BY KIRK PINHO 20140303-NEWS--0017-NAT-CCI-CD_-- 2/28/2014 10:26 AM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 17 CRAIN'S LIST: LARGEST GENERAL CONTRACTORS 7KHURDGWRWKHFRUQHURIÀFH Ranked by 2013 revenue Value of new STARTS HERE. Revenue contracts Company ($000,000) ($000,000) Address Top local executive(s) 2013/2012/2011 2013/2012 Rank Phone; website A business degree from Belfor Holdings Inc. Sheldon Yellen $1,313.8 B $1,260.4 1. 185 Oakland Ave., Suite 150, Birmingham 48009 CEO $1,261.0 B $1,328.0 Wayne State University (248) 594-1144; www.belfor.com $1,280.0 B does more than Walbridge Aldinger Co. John Rakolta Jr. $1,307.0 $1,325.0 2. 777 Woodward Ave., Suite 300, Detroit 48226 chairman and CEO $1,291.1 $1,393.0 provide an academic $1,130.0 (313) 963-8000; www.walbridge.com foundation for success Barton Malow Co. Ryan Maibach $1,145.5 $524.8 3. 26500 American Drive, Southfield 48034 president $1,005.9 $1,562.3 — it helps open doors. (248) 436-5512; www.bartonmalow.com $1,164.1 Our graduates join a Commercial Contracting Group Inc. William Pettibone $285.0 $204.0 strong network of more 4. 4260 N. Atlantic Blvd., Auburn Hills 48326 chairman $304.0 $188.0 (248) 209-0500; www.cccnetwork.com $248.0 than 31,000 successful Roncelli Inc. Gary Roncelli $223.0 $247.0 alumni across Metro 5. 6471 Metropolitan Parkway, Sterling Heights 48312 chairman and CEO $185.0 NA (586) 264-2060; www.roncelli-inc.com Thomas Wickersham $243.0 Detroit and worldwide. president and COO Whether you’re landing Aristeo Construction Co. Joseph Aristeo $221.0 $228.0 6. 12811 Farmington Road, Livonia 48150 president $206.0 $168.0 that ﬁrst job or making $227.0 (734) 427-9111; www.aristeo.com your way to the Turner Construction Co. David Kelly $200.3 $209.6 7. 535 Griswold St., Suite 1525, Detroit 48226 business manager $282.0 $149.0 executive suite, there’s (313) 596-0500; $314.1 www.turnerconstruction.com/michigan likely a Wayne State Anthony Frabotta, BA ’73 Black & Veatch James Coyle $192.8 $23.5 alum nearby, ready Chairman and CEO, 8. 3550 Green Court, Ann Arbor 48105 senior vice president $171.0 $22.7 to help. UHY Advisors MI, Inc. (734) 665-1000; www.bv.com $117.5 Co-CEO, UHY Advisors, Inc. Walsh Construction Co. Sam Bahou $176.1 $420.2 9. 3011 W. Grand Blvd., Suite 2300, Detroit 48202 business group leader $126.2 $303.8 (313) 873-6600; www.walshgroup.com $87.6 Ideal Contracting LLC Bob Kohut, vice president $162.0 $151.8 2525 Clark St., Detroit 48209 estimating/business $110.5 $151.5 (313) 843-8000; www.idealcontracting.com development $131.2 Jon Hautau, vice president 10. program management Kevin Foucher, vice president operations School of Business Administration Dan Kovoch, vice president and general manager business.wayne.edu Sachse Construction and Development Co. LLC Todd Sachse $138.0 NA 11. 1528 Woodward Ave., Suite 600, Detroit 48226 CEO $115.4 $103.5 AIM HIGHER (313) 481-8200; www.sachse.net $64.5 George W. Auch Co. Vincent DeLeonardis $134.1 $169.8 12. 735 S. Paddock St., Pontiac 48341 president and CEO $122.7 $143.5 (248) 334-2000; www.auchconstruction.com $127.6 Devon Industrial Group David Burnley $118.5 $113.4 13. 535 Griswold St., Suite 2050, Detroit 48226 president $109.0 $93.7 (313) 221-1550; www.devonindustrial.com $79.5 DeMaria Building Co. Inc. Joseph DeMaria Jr. $101.6 $80.1 14. 45500 Grand River Ave., Novi 48374-1305 president $122.1 $89.0 (248) 348-8710; www.demariabuild.com $108.0 Alberici Constructors Inc. Mark Okroy $86.3 $119.8 15. 13040 Merriman Road, Livonia 48150 vice president and general $57.0 $31.1 (734) 367-2500; www.alberici.com manager $99.2 The Colasanti Cos. Christopher Colasanti $79.0 NA 16. 672 Woodbridge, Suite 100, Detroit 48226 president $102.4 NA (313) 567-0060; www.colasantigroup.com Angelo Colasanti $104.0 CEO T.H. Marsh Construction Co. Ryan Marsh $71.0 NA 17. 300 Balmoral Centre, 32121 Woodward Ave., president and CEO $64.0 NA Royal Oak 48073 $45.9 (248) 586-4130; www.thmarsh.com FutureNet Group Inc. Perry Mehta $65.0 NA 18. 12801 Auburn St., Detroit 48223 president and CEO $53.9 C $35.5 (313) 544-7117; www.futurenetgroup.com $33.5 Micco Construction LLC Tedd Thompson $63.8 $73.7 19. 715 Auburn Ave., Pontiac 48342 president $55.0 $35.0 (248) 334-7753; www.miccoconstruction.com $63.7 Rudolph/Libbe Inc. Kenneth Swartz $61.4 NA 20. 47461 Clipper St., Plymouth 48170 vice president and general $31.1 $39.0 (734) 455-0600; www.rudolphlibbe.com manager $27.1 Frank Rewold and Son Inc. Frank Rewold $60.1 $58.1 21. 333 E. Second St., Rochester 48307 president and CEO $65.7 $43.7 (248) 651-7242; www.frankrewold.com $43.0 C.E. Gleeson Constructors Inc. Charles Gleeson II $54.7 $57.0 22. 984 Livernois, Troy 48083 president and CEO $47.0 $54.0 (248) 647-5500; gleesonconstructors.com $42.0 Kirco Manix Douglas Manix $47.0 $49.0 23. 101 W. Big Beaver, Suite 200, Troy 48084 president $35.0 $33.0 (248) 354-5100; www.kircomanix.com $25.0 Kasco Inc. Stephen Kassab $45.2 NA 24. 226 E. Hudson St., Royal Oak 48067 president $47.6 NA (248) 547-1210; www.kascoinc.com Michael Engle $44.0 vice president O'Brien Construction Inc. Timothy O'Brien $37.7 $34.0 25. 966 Livernois Road, Troy 48083 president $53.3 $49.6 (248) 334-2470; www.obriencc.com $44.4

This list of general contractors is a compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. The Christman Co., No. 18 on last year's list, which Crain's believes would make the list, was unable to provide figures, and a reliable estimate could not be made. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. B 95 percent of Belfor Holdings Inc.'s total revenue is from construction management. The company's business is disaster recovery, and so it handles many smaller projects rather than the large building projects typical of other general contractors on this list. C Acquired Smith & Wesson Security Solutions Inc. July 2012. LIST RESEARCHED BY BRIANNA REILLY 20140303-NEWS--0018-NAT-CCI-CD_-- 2/28/2014 10:27 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 3, 2014 CALENDAR WEDNESDAY Educating With Questions: The Socrat- Administration Building, Beverly gan Turnaround Plan’s New Michigan ic Technique for Sales. 9-11 a.m. Ann Hills. $10 BBCC members, $20 strategy and what more can be done to CRAIN’S PRESENTS M&A MARCH 5 Arbor Spark. Learn to use the Socrat- nonmembers. Contact: Andrea Kacz- grow a healthy economy. With Doug ic questioning technique to qualify marek, (248) 644-1700; email: Rothwell, president and CEO, Busi- AWARDS Grow a Business Through MBE Certifi- prospective customers while leading [email protected]; website: bbcc.com. ness Leaders for Michigan; Joseph cation and Minority Business Develop- them to discover the value of a prod- Nardone, director of development, Join Crain’s Detroit Business and the ment Agency Services. 3-5 p.m. Asian uct or service. Spark Central, Ann Ar- The Michigan Energy Entrepreneurial Wayne County Airport Authority; Jay Association for Corporate Growth – Pacific American Chamber of Com- bor. Free. Contact: Alissa Carpenter, Baron, chairman, president and CEO, Detroit Chapter 5-9 p.m. April 16 Ecosystem. 5-7 p.m. Ann Arbor Spark. merce, Michigan Hispanic Chamber (734) 372-4071; email: alissa@annar Center for Automotive Research; Learn how communities can encour- for the Crain’s M&A Awards, of Commerce. With Diane Lee, project borusa.org; website: annarborusa.org. Cindy Larson, president, Muskegon age greater innovation and entrepre- honoring companies and director, Detroit Minority Business De- Lakeshore Chamber of Commerce; neurial efforts in the energy industry. executives in the following velopment Agency, providing infor- Jean Redfield, president and CEO, Spark Central, Ann Arbor. Free. Con- categories: Best Small Deal of the mation on becoming certified as a mi- THURSDAY NextEnergy; Kevin McLeod, managing tact: Alissa Carpenter, (734) 372-4071; Year, Best Large Deal of the Year, nority business enterprise, leveraging MARCH 6 director, Michigan Medical Device Ac- Dealmaker of the Year – Adviser, MBE status to compete for corporate email: [email protected]; web- celerator; David Munson Jr., dean, Uni- site: annarborusa.org. Dealmaker of the Year – and government contracts, and maxi- Professional Edge Workshop. 7:30-9:30 versity of Michigan College of Engi- Buyer/Seller and Lifetime mizing global business development a.m. Birmingham Bloomfield Chamber neering; and others. Kellogg Hotel & Achievement. Select award and access to capital and markets of Commerce. With Dan Santonocito, UPCOMING EVENTS Conference Center, Michigan State winners will share best practices through MBDA services. Free. Regis- managing principal at Basso Design University, East Lansing. Free. Con- and inside stories from their top ter by March 4. Contact: Christina Building a New Michigan. 8 a.m.-1:30 tact: Jennifer Hayes, (313) 259-5400; Group, exploring search engine opti- deals. Mui, (248) 430-5855; email: mization, looking at the SEO landscape p.m. March 10. Business Leaders for email: jenniferh@businessleaders [email protected]; website: and providing insights for leveraging Michigan. Industry leaders will ad- formichigan.com; website: business The event takes place at the Troy apacc.net. its power. Birmingham Public Schools dress the progress made on the Michi- leadersformichigan.com. Marriott, Troy. The title sponsor is Honigman Miller Schwartz and Cohn LLP, Detroit. Tickets are $75 for ACG members or nonmembers in groups of 10 or more or $80 for individual sales to nonmembers. For ticket information, call Kacey Anderson at (313) 446-0300, DEVELOPERS WANTED email her at [email protected] or visit crainsdetroit.com/events. Join the conversation with #crainsma.

Small Business: Unlocked – Maverick Marketing Monday. 11 a.m.-1 p.m. March 10. Detroit Regional Chamber. With Sharmilla Chatterjee, academic head, enterprise management track, MIT Sloan School of Management, on effective content marketing and sharing best practices for creating a smart content marketing strategy. Emagine, Royal Oak. $20 chamber members, $50 nonmembers. Contact: Marianne Al- abastro, (313) 596-0479; email: Detroit Public Schools currently has more than 100 properties [email protected]; web- available for sale in prime development locations, including site: detroitchamber.com. along the waterfront, in Midtown, around Downtown Great Lakes Business Intelligence & Big Data Summit. 8 a.m.-5 p.m. March and throughout Detroit’s neighborhoods. 13. Wit Inc. Presentations will include two tracks of business intelligence case studies and best practices and one track of technology innovations from companies such as Qlikview, Informatica, Microsoft and iDash- Sites in Detroit Ready for Innovative Redevelopment boards. With Rebecca Costa, sociobi- ologist and author of The Watchman’s Rattle; Gary Robinson, program direc- 13000 Dequindre Herman Kiefer/Crossman Property tor, IBM’s Big Data organization; Lori Wagner, business intelligence manag- Former Detroit Transition School Massive 40-acre site jointly marketed by the er, Bosch; Michael Masciandaro, Square Feet: 58,223 City of Detroit and Detroit Public Schools. business intelligence director, Dow Chemical Co.; Shaun Connolly, vice Acreage: 5.6 Zoning: R2 Square Feet: 500,000+ Zoning: R2/R6 president, corporate strategy, Hortonworks; and others. Troy Marriott, Troy. $129. Contact: Aman- 10461 American 1095 Hibbard da Mansour, (248) 641-5900, ext. Vacant Land Former Trombly School 244; email: [email protected]; I-96 Freeway Frontage Square Feet: 52,475 website: greatlakesbisummit.com/2014. Acreage: 8 Zoning: R2 Acreage: 3.3 Zoning: R5 Passing the Leadership Baton. 8:30 a.m.-3:30 p.m. March 25. Council of Michigan Foundations, Wayne State 12611 Avondale 15055 Hubbell University. Nonprofit and foundation Former Stark School Former Cooley School leaders from Southeast Michigan will share experiences and perspectives at Square Feet: 51,877 Square Feet: 321,000 a full-day workshop targeting those Acreage: 4.3 Zoning: R1 Acreage: 17.9 Zoning: R1 younger than 40 who have worked in the nonprofit field less than five years or want to move into that field. With 744 W. Adeline Barbour Property Tonya Allen, president and CEO, The Skillman Foundation; Donna Murray- Vacant Land Two adjacent buildings totaling 204,918 Brown, president, Michigan Nonprofit square feet at 4209 Seneca & 8411 Sylvester. Association; William Weatherston, State Fairground Frontage vice president, Harvey Hohauser & As- Acreage: 3.3 Zoning: R2 Acreage: 5.2 Zoning: R5 sociates; Lynn Perry Wooten, associate dean, undergraduate programs, and clinical associate professor, 355 Philip 4811 Martin Stephen M. Ross School of Business, Vacant Land University of Michigan; Jodee Fishman Former Guyton School Raines, vice president, programs, Square Feet: 47,264 I-94 Freeway Frontage Fred A. and Barbara M. Erb Family Acreage: 4.3 Zoning: R2 Foundation; Katy Locker, program Acreage: 4.5 Zoning: R1 director/Detroit, John S. and James L. Knight Foundation; and Katie Brisson, vice president, programs, Community Foundation for Southeast Michigan. McGregor Memorial Conference For more information on these properties, and to see the full listing, Center, Wayne State University, please visit www.detroitk12.org/realestate or call (313) 421-6015. Detroit. $20. Contact: Melissa Freye, (616) 850-2126; website: michiganfoundations.org. 20140303-NEWS--0019-NAT-CCI-CD_-- 2/28/2014 10:28 AM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 19 BUSINESS DIARY

ACQUISITIONS Trust Building, 735 Griswold St., De- troit. Telephone: (313) 782-4820. Web- Thomson-Shore Inc., Dexter, acquired site: anytimefitness.com/gyms/3418/ and its subsidiary PublishNext Seattle detroit-mi-48226. Book Co., both in Seattle. The companies will maintain separate brand iden- tities. Websites: thomsonshore.com, MOVES publishnext.com, seattlebookcomp Fifth Third Bank, Eastern Michigan, any.com. Southfield, moved its Canton finan- Agree Realty Corp., Farmington Hills, cial center from 43433 Joy Road to a acquired a 43,000-square-foot proper- newly constructed, energy-efficient ty, leased to PetSmart and Michaels, and environmentally friendly facility in Anderson, S.C. The company also at 42370 Ann Arbor Road, Plymouth. acquired an 8,500-square-foot property Also, the Troy financial center moved leased to Sherwin-Williams in Tulsa, from its temporary location — 2100 Okla. The aggregate purchase price is Big Beaver Road, Suite 117 — to 2282 about $6.5 million. Agree sold the Iron- Big Beaver Road. Website: 53.com. wood Commons shopping center, an- chored by Kmart and Miner’s Super NAME CHANGES One Foods, in Ironwood, for about $5 STS Marketing LLC, Ferndale, dba million. Website: agreerealty.com. STS-Griot, is expanding its office space and now is dba Territory. Website: CONTRACTS territorypost.com. Henniges Automotive Holdings Inc., Auburn Hills, signed an agreement NEW PRODUCTS with AD Plastik Inc., Solin, Croatia, to Meritor WABCO, Troy, a provider of supply a U.S. automaker in the region integrated safety systems and efficien- out of AD Plastik’s Togliatti, Russia, cy technology for the North American extrusion seal plant. Henniges did not commercial vehicle industry, released name the automaker. Website: Toolbox 11.2, an updated version of hennigesautomotive.com. the company’s diagnostics and trou- Azure Solutions Inc., Rochester Hills, a bleshooting software. Website: technology integrator specializing in meritorwabco.com. wireless technologies, announced a NovoDynamics Inc., Ann Arbor, a de- contract with Beaumont Health Sys- veloper of advanced pattern recogni- tem, Royal Oak, to supply Sapphire tion and analytics technologies, an- Wi-Fi performance monitoring and nounced the availability of optimization to complement Beau- NovoImage+ automated image en- mont’s existing wireless network hancement software, version 1.1. The management platforms. Website: software handles multipage docu- azuresol.com. ments, eliminating the need to re-col- The Detroit Red Wings announced an late files after optimizing pages. Web- agreement with Rehmann LLC, Sagi- site: novodynamics.com. naw, that includes the financial services company’s exclusive naming STARTUPS rights to the executive suite level at Nerdageddon Comics, Cards & Col- Joe Louis Arena and on-ice advertis- lectibles opened at 117 E. Grand River ing. Website: rehmann.com. Ave., Brighton. Telephone: (810) 522- Hospice of Michigan Inc., Detroit, 6185. Website: nerdageddon.com. launched a pilot program with Senso- ry Technologies of Canada Inc., Lon- don, Ontario, a developer and mar- keter of wireless, smartphone-based enterprise systems for the Canadian community health care market. Hos- pice of Michigan will use Sensory Technology’s eShift system, one nurse to monitor four or more patients in their homes from a remote setting, providing direction to certified nursing assistants or technicians who are already in the home and working with families. Websites: hom.org, sensorytech.ca. ArborMetrix Inc., Ann Arbor, a provider of health care analytics, and Physician Resource Management Inc., Ann Arbor, a management service organization, are launching a program that will integrate Physician Resource Management’s protocol and program management with ArborMetrix’s clinical oncology analytics. Websites: prmbiz.com, arbormetrix.com. EXPANSIONS Art Van Furniture Inc., Warren, opened a location at 311 Coliseum Blvd., Fort Wayne, Ind. Telephone: (260) 481-1300. Website: artvan.com. Salvation Army Southeast Michigan Adult Rehabilitation Center opened an expanded thrift store at 26065 Green- field Road in the Sherwood Square Plaza, Southfield. Telephone: (248) 552- 9585. Website: salarmythrift.com. Air Center Inc., Troy, a provider of assembly tools and compressed-air equipment, opened a sales and service center at 8051 Clyde Park SW, Byron Center. Telephone: (800) 247-2959. Website: teamaircenter.com. Coburn-Kleinfeldt Eye Clinic, with offices in Dearborn and Livonia, opened an office at 301 W. 13 Mile Road, Madi- son Heights. Telephone: (586) 354-9190. Website: ckeyeclinic.com. Stephen James Associates, Hanover, Md., a staffing firm specializing in the recruitment of accounting and finance professionals, opened an office at 20750 Civic Center Drive, Suite 500, Southfield. Telephone: (248) 728-9300. Website: stephenjames.com. Anytime Fitness LLC, Hastings, Minn., opened a franchise at the Security 20140303-NEWS--0020-NAT-CCI-CD_-- 2/28/2014 10:29 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS March 3, 2014

PEOPLE CONSTRUCTION IN THE SPOTLIGHT Farmington Hills-based marketing firm J.R. Thompson Co. has named Jim Yetter its first chief marketing officer. Yetter, 58, had been a consultant to JRT since 2010 Binkowski Benvenuto following a 22- year career at Chuck Binkowski to senior vice presi- Chrysler, where dent, central region operations, Bar- Yetter his roles ton Malow Co., Southfield, from vice included president, central region operations. director of Dodge brand global Also, moving to vice presidents are communications and senior Joe Benvenuto, energy markets, from senior director, energy markets; Sue executive, new-vehicle launches. Rogers, business development, from He will head JRT’s marketing and director, business development; Bruce strategic planning, helping drive Rysztak, automotive markets, from se- new business development. nior director, automotive markets; Yetter earned a bachelor’s degree and Jennifer Sulak Brown, human re- in business administration from sources, from senior director, human the Crummer School of Business resources. at Rollins College, Winter Park, Fla., and a master’s degree in CONSULTING marketing from Michigan State Amy Moore to di- University. rector of client service, applica- tions, C/D/H, De- LAW troit, from consul- Thomas Davis to partner, Kienbaum tant. Opperwall Hardy & Pelton PLC, Birm- EDUCATION ingham, from associate, Jones Day, Washington, D.C. Alexander Klatt to MFA chairman of MARKETING transportation de- William Rozek to Moore sign, College for Creative Studies, CFO, Mars Adver- Detroit, from vice president, global de- tising Inc., South- sign, Fisker Automotive Inc., Ana- field, from CFO, heim, Calif. Budco Holdings Inc., Highland Park. Also, Scott Reid to executive creative director, from partner and creative director, Reid Mars Advertising Inc., Toronto; and Theresa Lyons to senior vice president, retail consultancy, from vice president, strategic planning. NONPROFITS Nicki Inman to senior director of patron development and engagement, Maximize efﬁciencies with Detroit Symphony Orchestra, Detroit, from vice president, patron engage- an operational assessment ment, Memphis Symphony Orchestra, Memphis, Tenn. Melissa Stewart to director of program services, Jarc, Farmington Hills, Forecasts call for the construction industry to from assistant director of community improve at a rate faster than the overall economy. supports. An operational assessment from Rehmann’s REAL ESTATE construction team can help ensure you are utilizing Christopher Chesney to director of best practices and maximizing opportunities. property management accounting, Signature Associates Inc., Southfield, from senior property management ac- Contact me today to learn more. countant. RETAIL

Patrick A. Cebelak, CPA, CCIFP Principal [email protected] | 517.316.2400

McNamara Taucher Jeanette McNamara to director, Scott Shuptrine Interiors, Warren, from corporate district manager, Pottery Barn Kids and Teen, a division of Williams- Detroit, Ann Arbor, Farmington Hills, Troy Sonoma Inc., San Francisco. Emily Taucher to marketing and spon- rehmann.com | 866.799.9580 sorship director, Twelve Oaks Mall, Novi, from account supervisor, Taub- man Centers Inc., Bloomfield Hills. 20140303-NEWS--0021-NAT-CCI-CD_-- 2/28/2014 6:37 PM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 21 Auto: Suppliers fight hacker attacks on technology with hackers ■ From Page 1 diligence to maintain safety. Street Journal last month that the target,” Weimerskirch said. “Car- the industry is developing reac- the vehicle securely — where we Andrew Brown, vice president hack occurred through a third- makers and suppliers need to be tionary and defensive measures, it can’t or haven’t in the past.” and chief technologist for Troy- party refrigeration, heating and prepared so they are always ahead must include cybersecurity early Brown said the next step is for based Delphi Automotive plc, said cy- air conditioning subcontractor. of the hacker — because we’re in the developmental process. the industry to create standard- berattacks are one of the greatest WSJ reported that the hack oc- talking about the safety of people, “Security needs to be included ized protocols to mitigate attacks. threats to the industry. curred from stolen credentials not a home computer.” in the design from the very begin- “(The industry) lacks broadly “We’re in the from the subcontractor. Karl Heimer, senior research di- ning; you can’t develop a car and based standards,” Brown said. infancy of figur- rector of cyber innovation for then drop in security because it “We are concerned as (automak- ing out cyberse- Planning for chaos Columbus, Ohio-based research and doesn’t work,” Weimerskirch said. ers) develop their own standards, curity, but we’re development nonprofit Battelle “Always assume that someone can we’ll be left to develop to multiple all working to Federal regulators are paying Memorial Institute, said that while hack into your system and how standards.” be proactive,” more attention to cybersecurity cars are a “low-volume target” for your architecture can prevent Brown said General Motors Co. is Brown said. than in the past. In the auto realm, hackers now, the increase in tech- them from gaining access.” developing its own standards and “We can’t have that has focused on driverless car nology will only drive them into the Delphi is placing IT employees requiring levels of cyber protec- any vehicle out technology (expected to be market- space. in many of its engineering and de- tion for its supplied products. of control be- ready by 2020) and the security “Hackers are extremely econo- sign units to make sure cyber safe- GM declined to comment on cause of a Del- risks inherent with connected Brown my-conscious; they spend their ty measures are developed with specifics, but confirmed it is devel- phi subcompo- cars. time on dominant platforms, creat- new products, Brown said. oping protocols. nent or subsystem.” Testifying in front of a Senate ing more chaos,” Heimer said. “We need to stay ahead of the “Data security is very important Sen. Ed Markey, D-Mass., is lead- Commerce Committee in May, “But the future brings a coming evolution of hacking; as we move to us at GM, and the issues in- ing an inquiry into automotive se- then-head of the National Highway convergence of (software) archi- forward with newer and newer volved are complex and ever- curity. In December, lawmakers Traffic Safety Administration David tectures in cars. And when that evolving,” Tom Henderson, global sent letters to 20 carmakers asking Strickland said, “These intercon- technology, we have to maintain happens, it’s going to become an purchasing communications man- how the industry is working to pre- nected electronics systems are an advantage,” Brown said. emerging target like cellphones ager for GM, said in an email to vent cyberattacks. Responses were creating opportunities to im- are now.” Crain’s. expected last month, but Congress prove vehicle safety and reliabili- Reliable vendors has yet to release them. ty, but are also creating new and Battelle has spent the past 18 Heimer said that as long as the Much of the fear stems from what different safety and cybersecurity months developing a coding sys- Auburn Hills-based Continental industry maintains vigilance in its hackers have been able to accom- risks.” tem for automotive software to de- Automotive Systems Inc. chose to efforts, it can stay on the forefront plish in recent years to disrupt busi- Andre Weimerskirch, associate tect hacks and alert companies. work directly with proven technol- of preventing a hack like the one ness. research scientist of transporta- The U.S. Department of Transporta- ogy companies, such as network- on Target. The December cyberattack on tion cybersecurity and privacy at tion has already evaluated the sys- ing provider Cisco Systems Inc., to “Consumer demand is going to Target Corp. remains at the epicen- the University of Michigan Transporta- tem, and Battelle expects to begin protect its software. make vehicles more and more con- ter of the cybersecurity debate. tion Research Institute, said the real implementing the system in 2015, “We see a key advantage in nected wirelessly,” Heimer said. Hackers gained access to the pri- threats aren’t materializing in cur- Heimer said. finding partners in the industry,” “To get in front of the security vate information of as many as 100 rent cars. The future automobile, “This is a defensive prototype,” said Tejas Desai, director of Con- problem, we have to be serious; million Target customers, opening though, is ripe for hacking if the Heimer said. “The industry is tinental’s interior electronics so- and we’re at a point where, as long the door to rampant credit card industry isn’t prepared. more than 15 years away from cre- lutions group. as we move quickly, we can avoid fraud — and a more than 5 percent “There’s no need to panic today, ating preventative measures. “We have systems we develop most of the bumps in the road.” decline in Target revenue and but as the knowledge of these sys- Right now, we’re working to miti- internally, but as I start to bring Dustin Walsh: (313) 446-6042, drop in its stock price. tems becomes widely available, gate threats.” big data into the car, they can help [email protected]. Twitter: Target executives told The Wall they also become a more attractive Weimerskirch said that while me manage it coming in and out of @dustinpwalsh

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Page 22 CRAIN’S DETROIT BUSINESS March 3, 2014 Duggan: Thinking lean ■ From Page 1 request,” he added, “but it was an would talk to those people who The Duggan Cabinet: T issue of the capacity to absorb know the processes the best and the help. There is a growing know what the customers want. sense of Mayor Duggan’s ability Then you use their knowledge to Ike McKinnon, 70, Jonathan Jackson, County and the Lions to build Ford to absorb it.” come up with creative ideas for Field. He also served as former Brandon Boudreau and Ben improvement.” Deputy Mayor 44, Interim Fire Gov. Jennifer Granholm’s facilita- Schomer are two executives who She reiterated that when lean is McKinnon Commissioner tor in restructuring the gover- were moved to donate their time used by public agencies, it’s a way joined the De- Jackson is a nance at the Detroit Medical Center. after hearing Duggan’s remarks. to improve inefficiencies, but it is- troit Police De- 25-year veteran And he’s served on the boards of As the COO and senior vice presi- n’t designed to promote privatiza- partment in of the Detroit Fire organizations including the Michi- dent of strategic partnerships, re- tion. In fact, the consortium 1965, rising Department and gan Economic Development Corp. and spectively, they want Metro-West worked with Bing on several pro- through the most recently Wayne County Economic Development Appraisal Co. LLC to be a part of De- jects, including analyzing the De- ranks. In 1993, was the second Corp. troit’s future. They moved the partment of Workforce Development. McKinnon former Mayor Jackson deputy fire com- company from Novi to downtown That department was later pri- Dennis Archer last July — in part, they said, to missioner. Duggan tapped Jackson Charlie vatized, but Levantrosser said that appointed him police chief, a posi- to take the lead spot after former attract and retain talent, but also was not her group’s recommenda- tion he served in until 1998. He Beckham, 66, to be a part of rebuilding Detroit. Commissioner Don Austin resigned tion. “We recommended more graduated from the University of De- in December. Duggan is conducting “We are the largest indepen- Group Executive ways to keep it in-house, but to troit Mercy, where he now teaches, a six-month search to see who will dent appraisal firm in the coun- for make it more efficient,” she said. and the FBI Academy in Virginia. lead the department permanently. try,” Boudreau said, “and we’ve The consortium also worked McKinnon was an early supporter Neighborhoods been hiding in the suburbs for 25 with Bing on his blight removal of Mike Duggan’s candidacy. Beckham years.” programs. The mayor had the John Hill, 59, CFO will lead the The company has 200 apprais- goal of demolishing 3,000 proper- Duggan and Lisa Howze, 40, newly created ers across 35 states who value ties a year, and he brought in the Orr hired Hill Beckham Department of 5,000 to 6,000 properties a month. consortium to help streamline the Chief of Staff out of Washing- Neighborhoods as well as manage To manage all of that from the cor- process. Former State ton, D.C., where the city’s building and safety and porate headquarters, Boudreau Rep. Howze, he was the CEO “We brought in a whole team of engineering services. This will be said he’s had to become a master who represent- of the Federal his front-line people and reduced a critical role, as the mayor has of processes. ed Detroit’s sec- City Council. Hill the waste and cut steps out of the promised to install a person in “The mayor was talking about ond district, ran jointly serves process,” Levantrosser said. every city council district whose all these different crews,” he said. against Duggan on Orr’s re- “They were so excited about it. “only job will be to flight blight,” “That’s a lot of what we do, send- in the 2013 may- Hill structuring The employees were so happy that Duggan said in his first State of ing people to homes all over the oral primary. team as well as leading the city’s people were listening to them.” Howze the City address. Beckham would country. I’m pitched daily on up- She lost, but he finance department. A certified Of course, the goal was never oversee that program. dated technology and process tapped the certified public accoun- public accountant who specializes realized. That’s because lean prin- Beckham has served as an advis- management and new work tant to co-chair his transition team in municipal finance, he worked ciples and politics often collide. In er to every Detroit mayor since flows.” and then elevated her to chief of with a presidentially appointed this case, then-COO Robert Buck- Coleman Young and worked in A request of this kind is unusu- staff. Howze previously worked as board to restructure D.C.’s finan- ler stepped down due to health nearly every city department. He real among mayors. Typically, they an analyst for DTE Energy Co. and cial and operational management reasons and that left the project in signed as chief administrative offi- rally the business community for had an unsuccessful bid for Detroit systems and improve the delivery flux. cer to Mayor Dave Bing in 2010, fol- campaign donations for policy City Council in 2009. of services to residents and busi- But Levanstrosser thinks Dug- lowing a legal challenge to his support. Occasionally, they ask nesses. gan is committed to implement- ability to serve. In 1984, Beckham for an executive be “loaned” to a ing lean techniques, as he did at Melvin ‘Butch’ was convicted of taking $16,000 in city, or they embed business peo- the Detroit Medical Center, and Gary Brown, 61, bribes while acting as the city’s wa- ple in their cabinets. Hollowell, 54, making them part of the city’s ter and sewage department director. “What the mayor is proposing COO culture. The consortium has Corporate is an interesting idea,” said reached out to Duggan’s offices, Orr hired Thomas Sugrue, a University of Counsel Dan Dirks, 62, but it does not have any assign- Brown last July Pennsylvania history professor, De- Hollowell is ments. to be his chief Director of troit native and author of the ur- president of “The leadership has to be on compliance offi- ban planning bible The Origins of Melvin Butch Hol- Transportation the front lines so they can prob- cer. He had been the Urban Crisis. “I haven’t seen lowell PC and Duggan ap- lem-solve,” she said. “From Day the president anything quite like this.” general counsel pointed Dirks to One, Duggan has been out with Hollowell pro tem of the In particular, the lean princi- for the Detroit begin in mid- the snowplow crews talking with Brown Detroit City Coun- ples are interesting to Sugrue be- branch of the NAACP. He served as January as di- the guys who are driving the cil, having spent cause they are focused on the chief legal counsel to Duggan’s rector of the De- trucks. That’s what you have to about four years on the council. front lines of an organization. campaign. He and Duggan were Before being elected, he spent 26 troit Department do.” deputy Wayne County executives Leaders of lean organizations years in the Detroit Police Depart- Dirks of Trans- That commitment is also mov- together in the Edward McNamara spend much of their time with ment, most recently as deputy chief portation, which has been man- ing larger firms, such as Price- administration. He has also served employees who actually interact of its Professional Accountability aged since last August by Dallas- WaterhouseCoopers LLC, off the as co-chair of the state Democratic MV Transportation Inc with customers, talking to them Bureau. Brown now reports to based . under sidelines. Ray Telang, the Detroit Party. a contract that expires in Septem- about what can be done better or Duggan as part of the agreement of managing partner for PwC, is ber. Dirks was general manager more efficiently. It’s a more powers between the mayor and considering involving his team of the Suburban Mobility Authority grass-roots than top-down ap- James Craig, 57, emergency manager. once he knows more about the for Regional Transportation from proach. Brown is no stranger to contro- city’s priorities and how his Police Chief 1998 to 2007, and most recently “It’s interesting to take best versy: Former Mayor Kwame Kil- more than 700 consultants, ac- Emergency ran his own transportation con- practices and use it as a way to patrick fired Brown in 2003 for counts, auditors and others can Manager Kevyn sulting company in Louisville, rethink how the city agencies are unauthorized investigations, and a organized,” added Sugrue, who be of use. Orr hired Craig Ky. subsequent lawsuit by Brown and was a speaker at the Detroit Re- And, the Detroit native said, in July 2013, lur- another officer eventually gional Chamber’s Detroit Policy Con- many of his young employees ing him away spawned criminal charges against Beth Niblock, 53, ference last Thursday. have indicated a desire to be from his post as more involved in Detroit and the Kilpatrick, who resigned in 2008. CIO The Michigan Lean Consortium chief of the community. has been offering those services to Craig Cincinnati Police Niblock start- the city and state since it was “Mayor Duggan’s ask is right Department. He’d served in that F. Thomas Lewand, ed last week as founded in 2008. Lt. Gov. Brian where it needs to be,” Telang role for about two years and spent 67, Group Detroit’s new said. “Lean, from my perspec- Calley sits on the nonprofit’s a previous two years as chief of the CIO. The city’s tive, and as Duggan indicated, is Executive for Jobs board of advisers and has worked Portland Police Department in director of infor- a perfect first step toward execut- mation technol- with the group on specific pro- Maine. and Economic ing toward his citizen-focused ogy services of jects. Orr in December gave Duggan Growth plan given its simplicity and abil- six years, Chuck “Lean utilizes the brainpower some city operations oversight Niblock ity to have it embraced by every- Lewand is for- Dodd, now re- of the people who are closest to under an agreement to delegate body. mer chairman ports to Niblock. She was previ- the process,” said Debra Lev- powers under the state emergency antrosser, who is on the board of “Improving the city and dri- of the Michigan ously CIO for 11 years of Louisville manager law — but Orr retains directors and has her own lean ving talent is very important to Lewand Democratic Party Metro, the consolidated local gov- police department control. Craig consulting firm, Arbed Solutions our practice. We all have a stake and former part- ernment of the city of Louisville started his police career in 1977 in LLC. “You would talk to police- in the future of the city.” ner at Bodman PLC. Lewand, the fa- and Jefferson County, Ky., estab- men who are on patrol, you Amy Haimerl: (313) 446-0416, Detroit, but after a downsizing ther of Detroit Lions President Tom lished in 2003. In that position, she would talk to the front-line work- [email protected]. Twitter: here he spent 28 years in the Los Lewand, helped broker the deal managed 75 IT employees and vari- ers for the departments. You @haimerlad Angeles Police Department. with the city of Detroit, Wayne ous technology-based services. She 20140303-NEWS--0022,0023-NAT-CCI-CD_-- 2/28/2014 7:15 PM Page 2

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 23 The mayor’s supporting cast

was also part of the municipal At the DMC, Martin’s portfolio in- as water utili- came the pres- technology team led by the White cluded implementing lean process ties director in ident and CEO House Office of Science & Technology principles. Now Duggan hopes she January 2001, of the newly Policy that visited Detroit last No- can do the same for the city of De- and previously formed Insti- vember, to identify ways IT could troit. worked for the tute for Popula- aid growth and improve city ser- Lansing Board of tion Health. vices. Water and Light Anthony had Other key executives for 22 years. been the di- Portia Roberson, During her rector of the tenure in De- Michigan De- 44, Group CRAIN’S AMERICAN DREAMERS: Melissa Smiley, McCormick troit, the depart- Anthony partment of Executive, Ethics 36, Deputy Chief ment came out Public Health, IMMIGRATION SUCCESS STORIES and Civil Rights from under federal oversight after an assistant county executive In many ways, metro Detroit was of Staff more than 35 years, by a March with Wayne County, director of built by the hopes and dreams of Commission Smiley 2013 court order from U.S. District public health nursing for the people from other countries. And Roberson served as re- Judge Sean Cox. city of Detroit and CEO of the foreign-born entrepreneurs will be came to the city search director Greater Detroit Area Health Coun- vital to the region’s future. Crain’s Detroit Business wants to tell of Detroit in for Duggan’s cil. Bradley Dick, 48, Director, General their stories. Roberson 2013, when Bing transition team. Services Department appointed her to Prior to that, We are seeking nominations of Smiley Beau Taylor, 39, immigrants who have had lead the law department as corpo- she was assis- Dick started as the deputy direc- business success for an tant director of operations and a tor of the department when it was Interim Director, ration counsel after her predeces- American Dreamers feature to be formed in 2006. Before that, he was sor, Krystal Crittendon, was re- health analyst for Data Driven De- Public Lighting published in the June 2 issue of moved from office. Prior to that, troit. She holds a doctorate in epi- the general manger of operations Department Crain’s Detroit Business. demiologic science and master’s at Delaware-based TechCentral LLC. she was an assistant Wayne Coun- Nominations — either for yourself ty prosecutor and a lawyer for the degrees in urban planning and He has been on the front lines of Taylor was named inter- or someone else — are due Detroit Medical Center. Roberson public health from the University of Detroit’s image problem, running March 10. Visit also had a post at the White House Michigan and was a fellow in the the department charged with keep- im director of crainsdetroit.com/nominate for Office of Domestic Policy Council as Detroit Revitalization Fellows Pro- ing city-owned lots mowed and city’s Public details. Lighting De- the leader of the federal Strong gram at Wayne State University from maintained. Taylor For questions, contact Senior Cities, Strong Communities Initia- 2011 to 2013. partment last Reporter Sherri Welch at tive. Ron Brundidge, 54, Director, August after two years serving [email protected] or (313) 446- as assistant to the COO. Prior 1694. For technical questions Vicky Kovari, 59, Neighborhoods Department of Public Works Bryan Barnhill II, to that, Taylor’s work experi- about the form, contact Ashley Department General Manager Brundidge was promoted to di- ence centered on international Henderson at [email protected] or (313) 27, Chief Talent Duggan recruited Kovari from rector of the Department of Public relief and aid in countries 446-1685. Officer the Detroit-based Harriet Tubman Works under Mayor Bing. The posi- such as Afghanistan and Tajik- Center’s Michigan Organizing Col- tion opened after former DPW Di- istan. , A Detroit na- laborative, where she had served rector Alfred Jordan became tive and Harvard as lead organizer for the past two Bing’s group executive for utilities University gradu- years. departments in 2011. Brundidge ate, Barnhill Monday , April 7, 2014 had previously served as deputy 2:00 p.m. - 7:00 p.m. served as cam- director of DPW and manager of paign director Kirk Mayes, 36, Deputy Jobs Director the department’s Street Mainte- Suburban Barnhill II for Duggan’s Mayes has served as the execu- nance Division. Collection Showplace campaign and as chief talent offi- tive director of the Brightmoor Al- cer for the then-mayor-elect’s tran- liance in Detroit since October 46100 Grand River Avenue sition team.He was chief of staff to 2010, coordinating issues of blight Norm White, Novi, MI 48374 former Detroit City Council Presi- removal, job training and housing Director, Parking dent Charles Pugh and a financial for the economically disadvan- Department analyst for Kushner Cos. in New taged. He served for two years as York City. program associate of the National White has Community Development Institute in been kicking EXHIBIT TODAY & FILL YOUR John Roach, 48, California. around Detroit city government JOB OPENINGS WITH THE Director of MOST QUALIFIED TALENT POOL Rick Wiener, 66, Director, Detroit Land for years. The Communications current head of Bank Authority White the parking de- Hailed as the premier recruitment event for Roach was ap- engineers, students, trained technicians and Duggan appointed Weiner to partment was the former director pointed to the allied professionals with all levels of experience, lead the newly formed Detroit of the Detroit Department of Trans- current city post The Engineering Society of Detroit Engineering Land Bank in late January. Previ- portation before Mayor Kilpatrick in December by appointed him to be the city’s CFO & Technology Job Fair will provide you with the

ously he served as chief of staff to 2014 Duggan after in 2008. unique opportunity to: working as com- former Gov. Jennifer Granholm, Roach munications di- and he spent two decades as a se- • Meet hundreds of highly qualiﬁed nior adviser to several elected of- rector for Duggan’s 2013 election Alicia Minter, 44, Director, professionals—all levels of expertise ficials. campaign and later a spokesman Recreation Department • Cultivate your future workforce He also spent four years as a leg- for the mayor-elect’s transition islative staff member in the Michi- In his State of the City address, ADDED BONUS: ESD JOB BANK team. He was previously a gan House of Representatives and Duggan said at least 150 parks spokesman and manager of com- served as director of Michigan op- would be maintained this summer. The ESD Job Bank is the premier recruitment munity relations at the Detroit Po- That will fall to Minter, who has resource for the industry. Each job fair exhibitor erations for U.S. Sen. Carl Levin, FAIR lice Department, a communications in addition to holding adviser been the director of the depart- will receive one complimentary posting on the director for the Wayne County Sher- roles to former Gov. Jim Blan- ment since May 2010. She joined ESD Job Bank, jobs.esd.org. iff’s Office under then-Sheriff War- the department in 2001 as the man- chard and former U.S. Rep. Register before March 7, 2014 and qualify for ren Evans, and a communications William Brodhead. He is also the ager of Belle Isle. She has been a director at the county Department city employee since 1989, holding a second complimentary posting—a value founder of Lansing-based law firm of more than $500! of Public Services. Wiener Associates. positions in public works and human resources. She is a board SPRING ENGINEERING AND TECHNOLOGY TAILORED EVENT FOR ENGINEERS & TECHNOLOGY PROFESSIONALS EVENT FOR ENGINEERS & TECHNOLOGY TAILORED For exhibit package information, as well as the Mary Martin, 37, Director, Lean member of the Detroit RiverFront JOB event schedule and downloadable forms, scan Conservancy. Process Management Sue McCormick, 59, Director, Detroit the QR Code, or visit www.esd.org. Duggan got to know Martin at Water and Sewerage Department Vernice Davis Anthony, 69, Director, Visit www.esd.org the Detroit Medical Center, where A holdover appointee of former For more information, she worked from 2004 to 2013. Mar- Department of Health and Wellness Mayor Bing, McCormick became contact Leslie Smith, CMP at 248-353-0735, tin then worked a short stint as re- the department director in Janu- Promotion gional executive director for Imag- ary 2012 after serving as public Mayor Bing appointed Anthony ext. 152 or email [email protected] ing Advantage before agreeing to services administrator for the city in December 2012, after the cur- joint the Duggan administration. of Ann Arbor. She joined that city rent director, Loretta Davis, be- 20140303-NEWS--0024-NAT-CCI-CD_-- 2/28/2014 5:02 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 3, 2014 Tickets: Tigers can expect extra $1M with new pricing policy ■ From Page 3 Two-thirds of Major League Base- menting with dynamic pricing soft- ball’s 30 teams, including the Tigers, ware in the mid-2000s, and it is be- have deals for dynamic pricing soft- How teams determine when the price is right coming more common. ware from Austin, Texas-based “Dynamic pricing is based on con- QCue Inc. (pronounced Q-Q). Metro Detroit’s other major sports teams use ei- Under the variable pricing system, the Lions will sumer demand and generally affords “There’s a significant boost in ther dynamic or variable pricing for their single- charge one price for two preseason games and have fans who buy early to save more,” that revenue for teams. It’s typically game tickets. two prices for regular-season games at 64,500-seat Duane McLean, the Tigers’ execu- a double-digit percentage increase,” Variable pricing is when ticket prices are set by Ford Field based on the desirability of the matchup. tive vice president of business opera- said QCue CEO and founder Barry the expected popularity of the opponent, and teams The costlier regular-season tickets will be for tions, said in a statement. “With dy- Kahn. He said $1 million to $1.5 mil- typically have two or three levels of prices. prime-time games and high-profile matchups such namic pricing, you could see the lion is a common revenue increase Dynamic pricing is when ticket prices change as the annual Thanksgiving Day game, which is a value of ticket prices increase and for teams. “We have clubs that have based on an algorithm of factors, and the price can national broadcast. decrease based on demand.” surpassed that number. It does real- be changed at any time by the team (or automatical- The team hasn’t disclosed how much new revenue ly vary club to club,” he said. ly by the software). it might see from variable pricing. Neither the Tigers nor QCue The Detroit Red Wings, also owned by the Ilitch The University of Michigan’s athletic department The bottom line would disclose the software price, family, went to a dynamic pricing system beginning last summer bought dynamic pricing software for A $1 million increase in ticket but it typically ranges from $100,000 with the 2010-11 season. The team did not disclose its football and men’s basketball team, and it revenue doesn’t represent a great to $200,000 annually, Sports Business how the system has affected single-game ticket rev- reached its goal of adding $1 million in new football leap in profits, but the Tigers are Journal reported in March 2012. enue. The Wings have approximately 14,000 season ticket revenue because of dynamic pricing in 2013, seeking new money where it can ticket holders at 20,066-seat Joe Louis Arena, mean- said Hunter Lochmann, UM’s senior associate ath- be found because the team is car- How it works ing there’s a smaller pool of tickets available to be letic director and the athletic department’s chief rying a $160 million payroll. dynamically priced, so the revenue boost for each of marketing officer. The Tigers had $95 million in to- Dynamic pricing allows teams the 41 home games is likely smaller than what the Lochmann said there was some initial criticism of tal ticket revenue for the 2012 sea- to fluctuate single-game ticket Tigers could see. the pricing change, but it affected only about 5,000 son, and $245 million in total rev- prices in real time. Seat prices are The Detroit Pistons use a four-tiered ticket price seats a game, and post-season satisfaction surveys enue, according to a team-by-team manually set by the team or auto- system that’s based on the opponent, with more pop- showed general approval for the system. financial analysis compiled by matically via the software. ular teams being pricier. The most expensive games Derby County, a professional soccer club in Eng- Bloomberg and published in Octo- at the 22,076-seat Palace of Auburn Hills are Elite, land bought for $100 million in January 2008 by an The pricing system will be ap- ber. Those are the most recent rev- followed by Premium, Select and Value. The team investment consortium led by Andy Appleby, chair- plied only to single-game tickets, enue estimates available. has about 6,000 season ticket holders. man and CEO of General Sports and Entertainment LLC and not season tickets, which ac- Detroit drew 3,083,397 fans to The Pistons, whose attendance has dropped in Rochester, since July 2012 has used a dynamic counted for just more than half of Comerica Park last season and sold steeply in recent years because the team has strug- ticket pricing system from Indianapolis-based Comerica Park’s seats in 2013. out 33 of 81 home games — despite gled, said per-game revenue has increased 15 per- Digonex Technologies Inc. Derby was the first British The software’s algorithms factor an increase in most ticket prices. cent to 20 percent for premium games since intro- soccer club to use such pricing. such metrics as team records, Those attendance numbers are ducing variable pricing in 2011. Currently, the team “Due to a myriad of variables, it is impossible to weather forecast, seat location, second in the team’s 113-year his- is averaging about $600,000 a game in revenue, and put a figure on the increased revenues attributable historic demand, resale market tory, trailing only the 3,202,654 the goal is to reach the NBA norm of about $1 mil- to dynamic pricing alone. Suffice to say I could put a prices, pitching matchups and re- tickets sold and 41 sellouts in 2008. lion for each of the 41 home games. strong argument together that £200,000, (just more maining inventory. Scarcity dri- The Detroit Lions in January said they are in- than 1 percent of total revenues) is attributable to “Goal No. 1 for the Tigers is mak- ves up the prices. creasing regular-season ticket prices for 2014 and in- dynamic pricing for this season,” said Brandon ing sure they sell 3 million tickets,” “The Tigers have a couple of op- troducing a three-tiered ticket pricing system. This is Furse, Derby’s head of ticketing, analytics and tech- Kahn said. “Our conversation with tions in how they use the system. the first year the NFL has allowed variable pricing, nology. the Tigers is repeatedly to help They can view those as recommen- and is seen as the first step before dynamic pricing. — Bill Shea make sure they maintain that.” dations and log onto the system and The software system should al- choose how frequently, and if and low the Tigers to get more people game ticket to cost $31 in 2014, a namic pricing,” said Connor Gre- would have been locked into a stat- when to push that pricing, or they in the ballpark and sell out more slight increase from last season’s goire, an analyst for New York City- can automate those prices,” Kahn ic set of prices for (soon-to-retire games, Gregoire said. $29.54. That would put Detroit in the based ticket search engine SeatGeek. New York Yankees star) Derek said. “In theory, dynamic pricing middle of MLB’s 30 teams. Jeter’s last games at Comerica, Teams using QCue mostly set “Generally, while teams do should increase attendance by sell- prices themselves, but a few have Single-game tickets for 41,681-seat manage to sell a higher volume of they now charge an even higher ing more tickets to unpopular allowed the automated pricing to Comerica Park will range in start- lower-priced tickets to less popu- premium for tickets to those games at lower prices while still follow free-market forces. ing price from $9 to $95. Those were lar games via dynamic pricing, it’s games than for other ‘premium’ selling out the popular games at The ticket prices are a rounded the base prices when tickets went on the high-demand games with high- games like other summer weekend higher prices,” he said. “Of course, amount, down to a quarter, he said. sale March 1, and dynamic pricing er ticket prices that make the real dates or (Boston) Red Sox games.” things can change a lot depending The Tigers, who are seeking their will begin March 3. difference, especially for a win- The airline, hotel, concert and on team performance.” fourth consecutive American League “It’s fair to expect the Tigers to ning team like the Tigers,” he said. cruise line industries for years Bill Shea: (313) 446-1626, Championship Series appearance, generate an added $1 million to $1.5 “For example, whereas under have used similar systems to man- [email protected]. Twitter: said they expect the average single- million in ticket revenue via dy- last year’s pricing system the team age tickets. Pro sports began experi- @bill_shea19 Edibles: Gluten-free bakers rise to meet demand for products ■ From Page 3 said. “It took a while to get going.” three-pack of Pecan Dandys costs his gluten-free cakes and cookies now,” Hiller said. “At first I was a in real danger, and we didn’t feel Now, her gluten-free products from $8.50 to $10 in grocery stores. out of an 800-square-foot kitchen skeptic. I really thought this was safe taking it on.” are in 30 retail outlets around “I want to be known for having with nothing more than a small sizzle and not steak.” Avalon does not offer any metro Detroit and will be carried in high standards, like the gluten- convection oven capable of hold- Hiller said he now believes gluten-free items, but Victor said 19 Sparty’s stores in East Lansing free Zingerman’s,” she said. “People ing just five baking trays at a time. gluten-free is more than a fad and that could change. and Michigan State University’s Com- will pay for a food experience.” That didn’t last long. even has two employees dedicated “I know a lot of people who don’t bo-X-Change, which offers food to But she isn’t the only one cash- By 2010, he moved into a 6,000- to finding new gluten-free prod- eat gluten because it’s more of a students, faculty and visitors. ing in on the gluten-free craze. square-foot facility, at 41120 Five ucts to carry in his markets. lifestyle choice,” she said. “Now Ethel’s Edibles will also be sold at Steve Ciric, owner of Plymouth- Mile Road in Plymouth, and has “Demand for good-tasting that it isn’t just about a health con- Joe Louis Arena starting Thursday., based One Bite at a Time Corp. dba more than 40 retail clients. gluten-free products is growing ex- cern, we are starting to look at and she is working to get them into Rumi’s Passion Gluten Free Bakery, “Now that I have a larger facili- ponentially now,” he said. “Once what can we introduce product- Comerica Park this summer. owned and operated a convention- ty, I am looking for larger deals be- you reach a taste profile that is wise, never wanting to sacrifice Bommarito is also working with al bakery called Wild Flours before cause I now have the capacity,” identical, there is no reason not to taste or quality in any way.” Austin, Texas-based Whole Foods switching over to a 100 percent Ciric said. be gluten-free.” Although his gluten-free bakery Market Inc. to supply all of its 43 gluten-free operation. He said sales doubled from 2008 But gluten-free wasn’t always an has seen five years of consecutive Midwest grocery stores. After studying the dangers of to 2009 and increased 30 percent in attractive selling point. growth, Ciric remains cautious. “I can have as many clients as I cross-contamination, which can be 2010, and 20 percent in 2011, 2012 Jackie Victor, vice president of “My concern is that I’ve seen fads want,” she said. “I just need the deadly to those suffering from celi- and 2013. Ciric said revenue could retail for Detroit-based Avalon Inter- come and go,” Ciric said. “I am not a space and equipment because, ac disease, he closed down his tra- hit $500,000 this year. national Breads, said the customer nutritionist or a medical profes- right now, I can’t meet demand.” ditional bakery. Jim Hiller, founder of South- base for gluten-free items has sional, so I don’t promote a gluten- In 2012, Ethel’s Edibles, located “I came to the conclusion that in field-based Hiller’s Markets, said changed dramatically over the last free lifestyle and I don’t lecture peo- at 22314 Harper Ave., generated order to do gluten-free, I needed a he carries more than 5,000 gluten- decade. ple about it. I just want to make $146,000 in revenue. This year, new workplace,” he said. “You free products at his largest stores “Ten years ago, the only people great-tasting gluten-free products.” Bommarito said, she is on pace to can’t do gluten-free and conven- and gluten-free products make up who were eating gluten-free had Nathan Skid: (313) 446-1654, generate about $600,000 in sales. tional baking in the same place.” about 15 percent of his total sales. celiac disease,” Victor said. “If you [email protected]. Twitter: Ethel’s Edibles are not cheap. A So in 2008, Ciric began baking “It’s growing exponentially screw that up, you can put people @NateSkid 20140303-NEWS--0025-NAT-CCI-CD_-- 2/28/2014 6:38 PM Page 1

March 3, 2014 CRAIN’S DETROIT BUSINESS Page 25 First State: Conservative focus kept bank standing www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] tortoise, the hares it was competing banks still eager to buy those loans. First State opened its 12th tion of Nine Mile Road and Gratiot, ASSOCIATE PUBLISHER Marla Wise, (313) 446- with didn’t just finish behind it. At the end of 2007, the bank decid- branch in Sterling Heights in De- launched with a capitalization of 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- They collapsed and died along the ed to aggressively take write-downs cember. In January, it consolidat- $25,000. 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- way. on troubled commercial loans by ed a banking branch and a stand- The area was first settled by 1622 or [email protected] As the recession began making adding significantly to its provi- alone loan office into a new Irish and German immigrants in MANAGER, DIGITAL STRATEGY Nancy Hanus, itself felt in 2007, the competitive sions for loan losses on the balance location in Clinton Township, and the 1830s, and in October 1897, a (313) 446-1621 or [email protected] MANAGING EDITOR/CUSTOM AND SPECIAL banking landscape in Macomb sheet. in January it signed a lease dou- U.S. Post Office branch was opened PROJECTS Daniel Duggan, (313) 446-0414 or [email protected] County was filled. “We wanted to deal with it and bling the space in a mortgage of- with the name of Half-way, be- SENIOR EDITOR/DESIGN Bob Allen, (313) 446- There was Community Central Bank get it behind us,” said Lovell. fice it opened in Oakland County cause it was about halfway on the 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or of Mt. Clemens; Warren Bank; Lake- The loan-loss provisions went at Orchard Lake and 14 Mile roads long trip up Gratiot Avenue from [email protected] side Bank of Sterling Heights; Peo- from $4.6 million in 2006 to $19.1 in December 2012. downtown Detroit to the county WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] ples State Bank of Madison Heights; million in 2007, and the bottom Lovell would like to add to the seat in Mt. Clemens. WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- and Citizens State Bank of New Balti- line from net income of $1.6 mil- bank’s presence with a retail bank- The village of Halfway was incor- 8158 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, more. lion to a loss of $8.7 million. ing branch there, too. “I’d like to ex- porated in 1924 and reincorporated [email protected] And community banks based in The bank has steadily grown the plore that as a possibility, if not later as the city of East Detroit, now East- WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] other counties had a strong pres- bottom line since then, with net in- this year, then next year,” he said. pointe, in 1929. That’s when the EDITORIAL SUPPORT (313) 446-0419; YahNica ence in Macomb County — Para- come hitting $4.7 million in 2013. “Gene Lovell is a good, conserva- bank changed its name to the First Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- mount Bank of Farmington Hills, Fi- “I can’t say we foresaw how bad tive banker with a good reputation. State Bank of East Detroit, just in 1687 TIP LINE (313) 446-6766 delity Bank of Dearborn and Citizens it was going to be. The problems It’s a very well-run bank. They’ve time for the Great Depression. First Bank of Port Huron. kept on coming, but we were a been around a long time, and Struggling to stay afloat, the REPORTERS None of them remain. All were very solid bank to begin with, and they’ve gone through a lot of eco- bank was reorganized in 1935, tak- Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. shut down by federal and state reg- when things kept on snowballing, nomic cycles. To weather them all is ing on capital from new investors, (313) 446-0325 or [email protected] ulators after their loan portfolios we were prepared,” said Lovell. “I impressive. It really is,” said J. which included Christian Nill, a Amy Haimerl, entrepreneurship editor: Covers entrepreneurship and city of Detroit. (313) 446- had blown up and their losses had knew we’d come through it.” Grant Smith, president and CEO of butcher who was also the city’s 0416 or [email protected] gone on for years. First State Bank The key metric eyed by regula- Clarkston State Bank, which barely mayor, who joined the board of di- Chad Halcom: Covers litigation and the defense industry. (313) 446-6796 or [email protected] is the only bank left based in Ma- tors is the Tier 1 ratio of equity weathered the last cycle itself but is rectors. His nephew, William Nill, Tom Henderson: Covers banking, finance, comb County. And large regional capital to assets. Anything below a thriving again. is a former president of the bank technology and biotechnology. (313) 446-0337 or [email protected] banks such as LaSalle and Nation- 2 percent ratio put a bank on death “They did a good job of navigating and the retired chairman. Kirk Pinho: Covers real estate, higher education, al City that had large market watch, a level hit by every other the recession, and they’ve done a The Nill family remains the Oakland and Macomb counties. (313) 446-0412 or [email protected] shares in the county were bought bank based in Macomb County. great job as a community bank. bank’s largest shareholder, with Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, in fire sales by other large banks. First State’s never got below 8.1 They’ve built a good footprint in Ma- four members on the board of direc- and transportation. (313) 446-1626 or “I knew we’d survive, but I did- percent. Today, it stands at 10.76. comb County,” said Patrick Mc- tors. The bank moved its headquar- [email protected] Nathan Skid, multimedia editor: Also covers the n’t know how much pain we would Lovell has beefed up his mort- Queen, the former state banking ters to St. Clair Shores in 1989. food industry and entertainment. (313) 446-1654, have to bear,” said Lovell, who gage group in the last three years, commissioner who consults for his Lovell said the family tradition [email protected] Dustin Walsh: Covers the business of law, auto joined the bank as an auditor in from a team of three at the bottom son Charles’ firm, McQueen Financial kept the bank grounded during the suppliers, manufacturing and steel. (313) 446- 1991, became CFO in 2004 and was of the recession to 15 now, and he Advisors of Royal Oak, and BBK Ltd. in go-go days that preceded the reces- 6042 or [email protected] Sherri Welch, senior reporter: Covers nonprofits, named president and CEO in 2008, wants to be more active in com- Southfield. sion. services, retail and hospitality. (313) 446-1694 or just as the recession hit. mercial lending. “First State has a long and rich “The family structure lends it- [email protected] LANSING BUREAU First State’s loan portfolio has history and has been a jewel on the self to caution,” Lovell said. “To Chris Gautz: Covers business issues at the Capitol climbed steadily, from $281 million east side,” he said. being conservative. This has never and utilities. (517) 403-4403 or [email protected] Dealing with the downturn in 2010 to $368 million now. been an investment strictly to gen- ADVERTISING The bank had seen warning signs “We never stopped lending. erate earnings. The focus has al- SALES INQUIRIES (313) 446-6052; FAX (313) of a downturn early in 2007 and be- When other banks were getting The Halfway Bank ways been on building value.” 393-0997 gan selling off a large chunk of what out of Dodge, we kept lending. We First State opened its doors on Tom Henderson: (313) 446-0337, SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. had been its bread and butter, its were here to serve the communi- Oct. 20, 1917, as the Halfway State [email protected]. Twitter: Langan home-mortgage portfolio, to other ty,” said Lovell. Bank, in a building at the intersec- @tomhenderson2 ADVERTISING SALES Christine Galasso, Jeff Lasser, Dale Smolinski, Sarah Stachowicz CLASSIFIED SALES Angela Schutte, manager, (313)-446-6051 DIRECTOR OF MARKETING AND EVENTS Elizabeth Buscher DIGITAL MARKETING MANAGER Jennifer Chinn Bhargava: New firm will invest in water, energy AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo EVENTS MANAGER Kacey Anderson ■ From Page 1 SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg managing directors, Kevin O’Con- company based in California that Avoiding the box of companies that help drive ener- SENIOR ART DIRECTOR Sylvia Kolaski nell and Rick Manner, all recently was bought earlier this month by gy efficiency. (See story, Page 5.) SALES SUPPORT Suzanne Janik, YahNica Crawford O’Connell said having a single in- PRODUCTION MANAGER Wendy Kobylarz left Stage 2. the Wanxiang Group, a Chinese auto John Higgins, a senior partner PRODUCTION SUPERVISOR Andrew Spanos “We’ll have several big launches parts conglomerate. vestor frees Oakland Energy from at Huron Capital, said the timing CUSTOMER SERVICE the fixed investment parameters this year, very interesting and large Stage 2 originally had a focus on is right for Oakland Energy. MAIN NUMBER: Call (877) 824-9374 or write that private equity companies gen- [email protected] projects,” Bhargava told Crain’s water and energy as well as med- “There is a lot of focus on better erally have when taking on part- SUBSCRIPTIONS $59 one year, $98 two years. Friday. ical technologies, and Bhargava managing energy consumption,” he Out of state, $79 one year, $138 for two years. ners for limited-partnership funds. Outside U.S.A., add $48 per year to out-of-state He said Oakland Energy doesn’t told Crain’s in 2012, without nam- said. “There’s a lot of government rate for surface mail. Call (313) 446-0450 or Typically, private equity funds have a fund with a fixed amount of ing any company names, that he money to support it, there’s a lot of (877) 824-9374. have upper and lower limits for the SINGLE COPIES: (877) 824-9374 money. had invested in a seawater desali- money available through utilities, revenue of companies they invest REPRINTS: (800) 290-5460, ext. 125; nating project, a hydroponic agri- and there’s a lot of interest by com- (717) 505-9701, ext. 125; or lindsay.wilson “Deal by deal, we’ll spend the in, or minimum amounts of EBID- @theygsgroup.com cultural system to use in vacant panies to reduce their energy costs. money,” he said. TA (earnings before interest, depre- TO FIND A DATE A STORY WAS PUBLISHED: warehouses, an additive to make “There’s a lot of opportunity to ap- (313) 446-0406 or e-mail [email protected] When asked how much in total ciation, taxes and amortization) for diesel fuel 20 percent more effi- ply technology developed over the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY he was willing to invest in portfo- potential portfolio companies. Lim- CRAIN COMMUNICATIONS INC. cient and a way to remove mer- last 20 years to use less energy and to CHAIRMAN Keith E. Crain lio companies for Oakland Energy, ited-partnership funds may also be cury emissions from coal. spend less money on energy. There’s PRESIDENT Rance Crain Bhargava said: “The limiting fac- locked only into deals where they TREASURER Mary Kay Crain certainly an overlap between what Executive Vice President/Operations tor isn’t capital. The limiting thing Bhargava said he spun Oakland can acquire controlling interest. we are doing and what they are do- William A. Morrow is how much can we do without Energy out to give it a clear focus “We’re trying not to put our- Executive Vice President/Director of Strategic on energy and water. He said that ing. We might be able to kick up Operations Chris Crain running out of brainpower. We selves in a box. We’re looking to in- Vice President/Production & Manufacturing some opportunities for each other.” need to have the right manage- the diesel-fuel technology and the vest in innovative ideas. We want Dave Kamis mercury emissions technology hit While Oakland Energy’s manag- Vice President/Chief Human Resources Officer ment. But if something really re- to be broad-based. We don’t want to Margee Kaczmarek markable comes along, we’ll figure dead ends, but that there will be be a typical fund that puts things ing directors have yet to go over- Chief Information Officer big news coming from Stage 2 in a seas, they said they will pursue en- Anthony DiPonio out a way to make it work.” into neat buckets,” said O’Connell. G.D. Crain Jr. Founder (1885-1973) Brower was a member of the few months about the seawater The result is flexibility when ergy- and water-related companies Mrs. G.D. Crain Jr. Chairman (1911-1996) project and the commercialization and markets around the world, with EDITORIAL & BUSINESS OFFICES: Crain’s 40 under 40 class of 2011 looking to invest. Oakland Energy 1155 Gratiot Ave., Detroit MI 48207-2732; when he was manager of transac- of medical technologies. will pursue license agreements, a focus on the Third World, where (313) 446-6000 energy and clean water are lacking. Cable address: TWX 248-221-5122 AUTNEW DET tion and restructuring in the De- He said he hadn’t decided yet joint ventures, partnerships and CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 whether to keep the desalinization “We’re looking for innovative is published weekly, except for a special issue the troit office of KPMG LLP. O’Connell controlling or noncontrolling in- third week of August, and no issue the third week has more than 20 years in energy- project under the Stage 2 umbrella terests in both small companies projects that can enhance the way of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. related businesses, including 14 or move it over to Oakland Energy. with interesting but barely com- people live,” Manner said. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send years as director of the electric Brower, O’Connell and Manner mercial technologies and large Said Bhargava: “We want home address changes to CRAIN’S DETROIT BUSINESS, power business for Michigan CAT, a say they have been doing due dili- well-established companies. runs. Big successes. We don’t want Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in seller and renter of construction gence on possible investments since Detroit-based Huron Capital Part- singles. We want to affect people U.S.A. throughout the world.” Entire contents copyright 2014 by Crain equipment. Manner has 30 years of December and have looked at ners LLC, the state’s most active Communications Inc. All rights reserved. management experience in supply dozens of companies in Michigan, private equity company, has just Tom Henderson: (313) 446-0337, Reproduction or use of editorial content in any manner without permission is strictly chain management, including the East Coast and the South and launched a new platform company [email protected]. Twitter: prohibited. Fisker Automotive, an electric car will be on the West Coast this week. that will look to make acquisition @tomhenderson2 20140303-NEWS--0026-NAT-CCI-CD_-- 2/28/2014 5:05 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 3, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 22-28

lo Park, Calif., but Detroit is expected later this year. nology nonprofit EWI and the first market Gardner is Rofin-Sinar Ⅲ Detroit-based Greektown Ohio State University. Leaders show rolling out. Holdings LLC pushed back to Ⅲ Michigan Congress- “This is really the place next year its plan for $125 man John Dingell, 87, an- and the culture that I think buys Oregon million or more in structur- nounced he will not run for is the seed around which we al renovations to Greektown a 30th full term. Debbie Din- support for want to develop Startgrid,” Casino-Hotel but will move gell, 60, launched a bidfor he said. laser company forward with $40 million to the U.S. House seat held by Of course, there is al- $50 million in near-term fa- her husband, a Democrat, ready a BizGrid in town that lymouth-based Rofin- cility improvements. since 1955, AP reported. lists all the resources avail- Sinar Technologies Ⅲ The PGA Tour is closing State Sen. Rebekah Warren ‘Keeper’ effort able to entrepreneurs. That, P Inc., a manufacturer on a deal for Detroit-based said she is exploring a run too, was funded by NEI. But of lasers and laser systems, etroit was represent- them, according to the Quicken Loans Inc. to become for the seat. Meanwhile, De- the chamber doesn’t see the announced Friday it has ed among the digni- White House. title sponsor of Tiger Woods’ troit Democrat John Conyers, two groups overlapping. bought the assets and intel- D taries attending “This act complements tournament at Congressional 84, announced plans to run “There has been a blos- lectual property of Portland, President Barack Obama’s the work of many regional Country Club in Bethesda, for a 26th term; a victory in soming of organizations Ore.-based FiLaser USA LLC, “My Brother’s Keeper” ini- foundations like the Skill- Md., AP reported. Quicken November would make him dedicated to entrepreneur- which specializes in laser tiative announced at the man Foundation in Detroit Loans could begin its spon- the new dean of the House. ship over the past few processes for brittle materi- White House on Thursday. that have executed this sorship before the next tour- Ⅲ Detroit’s General Retire- years,” said Ben Erulkar, the als like glass, silicon and nament June 26-29. ment System and Police and More than $200 million agenda because of the ur- chamber’s vice president of gent and pertinent needs in sapphire. The price was not Ⅲ Detroit Medical Center Fire Retirement System will from 10 foundations across new development strate- our communities,” Allen disclosed; the deal is expect- and Medical Weight Loss Clin- evenly divide a net payout of the country, including the gies. “It’s not that we think said in a statement. “Invest- ed to close this month. ic signed an agreement un- nearly $5.2 million after a Battle Creek-based W.K. Kel- Startgrid can do anything ing in this work can show der which patients who pur- Wayne County Circuit Court logg Foundation, will fund ef- better or different. In fact, great returns. For example, chase services at Medical judge approved a settlement forts to find and spread solu- we want to help those agen- investments over the last ON THE MOVE Weight Loss will be able to in two 2009 lawsuits on be- tions to problems facing cies do better.” boys and young men of color. eight years have increased Ⅲ Gerald Piro left nonprofit seek consultation with DMC half of pension beneficiaries. Tonya Allen, president and graduation rates for education organization Boys bariatric surgeons, and Ⅲ The University of Michi- CEO of the Detroit-based African-American and His- Local school wins top prize Hope Girls Hope of Detroit to DMC will gain access to gan is under federal investi- Skillman panic boys in Detroit.” in Future City Competition lead Detroit-based Covenant Medical Weight Loss pro- gation for its handling of Foundation, John Roach, Duggan’s House Michigan as Covenant grams. sexual assaults on campus, attended spokesman, said the mayor St. John Lutheran School in founder, Sam Joseph, 72, be- Ⅲ The General Motors Co. the U.S. Department of Educa- the an- would like to replicate here Rochester Hills took the title came CEO of the four char- Powertrain Engine Plant in tion’s Office for Civil Rights nounce- a Chicago program aimed at of “National Champion” at ter schools it operates as Livonia was sold to Schostak told the school. The office is ment as a decreasing dropout rates last week’s Future City Compe- Covenant House Academy. Bros. & Co. for an undis- looking at how UM respond- and violence. member of tition in Washington, D.C. Named to succeed Piro, 60, closed price. The 1.2 million- ed to a reported violation of the Execu- The competition, which as executive director was square-foot manufacturing the school’s sexual miscon- tives’ Al- Chamber, NEI collaborate awards student groups for Suneil Singh, 35, formerly complex was owned by the duct policies by a member of liance to Ex- the best sustainable city con- CEO of CNS Foundation and RACER Trust. the football team. Allen pand on new entrepreneur site cept, is held annually during chief communications offi- Ⅲ Auto suppliers that rate Ⅲ Redevelopments of two cer of Girl Scouts of South- highly on several General former Detroit hotels into Opportunities for Boys and Welcome the Startgrid. National Engineers Week. Motors Co. key measures will apartments were among lo- Men of Color, a group of lo- The new online communi- St. John’s theme of “To- eastern Michigan. Ⅲ get such perks as better ac- cal projects receiving incen- cal, regional and national ty is devoted to being the morrow’s Transit — Design Susan Goodell, 50, is cess to GM purchasing tives in the Michigan Com- foundations. “connective tissue” between a Way to Move People in and stepping down March 21 as brass, joint strategic plan- munity Revitalization Detroit Mayor Mike Dug- entrepreneurs, funders, men- Around Your City” won the Forgotten ning and training under Program, the Michigan Eco- gan also attended. tors and even hangers-on. $7,500 top prize. The concept Harvest GM’s new Strategic Suppli- nomic Development Corp. said. The foundation money The site, startgrid.com/ also took home the People’s president will aid the initiative’s ef- detroit, is funded through a Choice Award, which won and CEO to er Engagement program, Grants of $3.5 million and $1 take a top Automotive News reported. million, respectively, will fort to improve things such $100,000 grant from the New the team a trip to Space Camp Ⅲ as early childhood develop- Economy Initiative and mar- in Huntsville, Ala. job at an Aggregate revenue for back redevelopment of the ment, parenting, literacy, keted by the Detroit Regional The school’s design was a East Coast Detroit’s three casinos to- vacant Strathmore Hotel in educational opportunities, Chamber. city built in 2164 called Gong- nonprofit, taled $1.35 billion in 2013, re- Midtown and Milner Hotel criminal justice system in- Startgrid founder Peter pin, in the Guangxi region of which she flecting a 4.7 percent decline near Comerica Park. declined to year over year. Gaming tax- Ⅲ Rebuilding Detroit will teractions and economic op- Gardner likens it to a “col- China. They designed a sys- Goodell portunity, according to the laborative platform,” but at- tem called FAIR (Flexible, name in ad- es from MGM Grand Detroit, not be easy, but is possible if White House. tendees at the Detroit Policy Accessible, Integrated and vance of the organization’s MotorCity Casino Hotel and the city focuses on its Obama signed a presiden- Conference, where it was un- Renewable) Transport, announcement. Greektown Casino-Hotel to- strengths — not hipsters, tial memorandum creating veiled, dubbed it Google+ which links cars, mass tran- taled $109.3 million, down said Detroit native Thomas the My Brother’s Keeper Task meets LinkedIn meets Face- sit and cargo systems OMPANY NEWS from $114.8 million in 2012, Sugrue, a University of Penn- Force, which will determine book because it’s structured through a voice-activated C said the Michigan Gaming sylvania history and sociolo- the impact of federal poli- as a message board where communication system. Ⅲ Detroit-based iRule LLC Control Board. gy professor, in the keynote cies, regulations and pro- entrepreneurs can network. The group was invited to will be able to pitch its busi- Ⅲ Beaumont Hospital, Troy; address at the Detroit Region- grams on boys and men of Eventually, there may even the competition after win- ness plan to Google Inc. exec- Southfield-based Providence al Chamber’s 2014 Detroit Poli- color, as well as incentives be a function where biz own- ning the Engineering Society utives in April after winning Hospital; and St. Mary Mercy cy Conference. for adopting strategies that ers can rate advice. of Detroit’s Michigan compe- Detroit’s Google Demo Day Livonia Hospital were named Ⅲ Detroit Mayor Mike provide opportunities to Startgrid is based in Men- tition on Jan. 27 in Novi. competition. The startup, among the nation’s top 50 Duggan will give the keynote which created an app that performing hospitals by Col- address at Gleaners Communi- lets people use smartphones orado-based research com- ty Food Bank during a March and tablets to control de- pany HealthGrades, and Pon- 13 property development vices such as lights and TVs, tiac-based St. Joseph Mercy conference on reusing the will join six national win- Oakland was in the top 100. more than 80 vacant Detroit ners at Demo Day events in Ⅲ The Detroit Zoo said it public schools and other BEST FROM THE BLOGS plans to break ground on buildings. Silicon Valley, Calif. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ Dearborn-based Oak- the $26 million Polk Penguin Ⅲ Two Detroit building wood Healthcare Inc. is re- Conservation Center in April. inspectors received proba- Whose tweets do you follow? Beard’s a dinner to remember naming its four metro De- Over the past six months, tion after pleading guilty to troit acute-care hospitals. it’s raised $10 million, giv- bribery charges for taking Challenge Detroit, The James Beard This month, Oakwood Hospi- ing it $21 million so far. money in exchange for ig- the“ privately funded Foundation’s“ Celebrity tal & Medical Center in Dear- noring code and permit vio- initiative that spreads Chef Tour landed at the born will become Oakwood lations, AP reported. the word about creative Townsend Hotel in Hospital-Dearborn and Oak- OTHER NEWS and professional Birmingham for a sold- wood Heritage Hospital in Ⅲ President Barack Obama opportunities here, out evening of haute Taylor will become Oakwood announced that Canton OBITUARIES posted on its blog the cuisine, fine wine and Ⅲ ‘28 Twitter handles fantastic Hospital-Taylor. The renam- Township will become home Detroit native Chokwe every Detroiter should conversation. ing of Oakwood Annapolis this spring to a $148 million Lumumba, a prominent civil follow.’ Hospital in Wayne to Oak- Lightweight and Modern Met- rights attorney and former ” wood Hospital-Wayne and als Manufacturing Innovation human rights activist, died Kristin Bull’s “#Detroit” blog about” social media is at Nathan Skid’s “Table Talk” blog on Detroit-area Oakwood Southshore Medical Institute, to be led by the Uni- Feb. 25 in Jackson, Miss., www.crainsdetroit.com/section/blogKristinBull restaurants is at www.crainsdetroit.com/skid Center in Trenton to Oak- versity of Michigan, Ohio- where he served as mayor. wood Hospital-Southshore is based manufacturing tech- He was 66. PN Full pg_PN 2/21/2014 3:44 PM Page 1

MEDICAID: PROGNOSIS FOR PROVIDERS

Can regional physician capacity accommodate new patients? FREE WEBINAR What are the legal issues when accepting Medicaid patents? .BSDIt/PPOQN Has physician sentiment related to Medicaid changed? 3FHJTUFSBUDSBJOTEFUSPJUDPNXFCJOBST