20130812-NEWS--0001-NAT-CCI-CD_-- 8/9/20135:56PMPage1 ©Entire contentscopyright2013byCrainCommunicationsInc.Allrightsreserved until Oct.1tomove. Metro Times Electronic MusicFestival. Gould PC Bloomfield Hills-based to attorneyDeanGouldof Slate LLC Blues inthesale. UGL Equis president for hau, relocate. Thatincludes ing’s tenantsareexpectedto said, buttherestofbuild- will bemaintained,Stojic Grille clined toprovideasaleprice. in anemailto rate communications,wrote len Stojic its secondandthirdfloors, about 100Bluesemployeeson toine St.isexpectedtohouse Slate Co. Times ing thathousesthe the 24,000-square-footbuild- this weekonthepurchaseof Michigan that houses Blue Crosstobuybuilding homes in...Detroit It’s aseller’s marketfor ash borer, Page19 Rising fromtheashesof culture andbeyond,Page11 Honorees influencepop

NEWSPAPER www.crainsdetroit.com Vol.29,No.33 Page 3 Health CareHeroes This JustIn MICHIGAN BUSINESS Brian Piergentili Both Paxahauandthe The leasefor The former Blue CrossShieldof organizer ofthe , thefirst-floortenant, , amongothertenants. wastheseller. , building at733St.An- anentityregistered , CRAIN’S is expectedtoclose , directorofcorpo- , representedthe Metro Times Metro Detroit Cornice& Crain’s say theyhave DTZ — KirkPinho Flood’s Bar& , seniorvice , formerly Cornice & Movement . Shede- Jackier Metro Paxa- He-

JOHN SOBCZAK nomic developmentgroups,work- distinct regions. the stateinto10geographically out infavorofanewmapdividing provide servicesisbeingthrown agencies fordecadeshaveusedto maps thatstatedepartmentsand State initiativedrawsnewmapforregionalorganizations I heavy unionsupport. dog, whileNapoleonhasgarnered mary asavoters’favoriteformerunder- the Nov.5election. and outreachtovotersintherun-up to spendthosefundsonadvertising contributions fortheircampaigns,and continue solicitingbusinessandunion perts expectthemayoralhopefulsto ing thetwocandidates.Politicalex- of advertisingcenteredondifferentiat- whole lotoffundraisingandabarrage for mayor A moneygame last 2standing must play … Write-in counting done; for mayor A moneygame last 2standing must play … Write-in counting done; And themultitudeoflocaleco- A mishmashofboundariesand Duggan emergedfromlastweek’spri- For thenextthreemonths,expecta needs moreofit.Fast. in theDetroitmayoralrace,he Mike Dugganarunforhismoney f BennyNapoleonwantstogive CAPITOL CORRESPONDENT B Y C CRAIN’S DETROITBUSINESS HRIS B Y G K AUTZ IRK See Election,Page41 P INHO ANDRE J.JACKSON/AP nomic developmentaddressthe organizations contributingtoeco- to havetwomajorgoals:Haveall through, buttheinitiativeappears der rolledoutThursday. ty Initiative system, calledthe come theirwayunderthisnew now learningwhatchangescould other regionalassociationsare force developmentagenciesand AUGUST 12–18,2013 Details arestillbeingworked SPONSORED BY week. of Electionslast votes attheBoard sheets ofwrite-in containing tally envelopes organize Election officials , whichGov.RickSny- policy specifics Duggan: Needs campaign cash Napoleon: Needs AFTER Page 41 bankrupt Detroit, plans forpost- Snyder makes G VO LIFE ON OV MEDIA SPONSORS Regional Prosperi- C H . 9 workplaces. healthyemployeesand foryourbestpracticesthatpromote Be recognized tion LLC Hills-based stantial costfromFarmington could havetobuyitbackatsub- of ownershipunresolved,thecity next monthwiththelegalquestion Maple RoadandCoolidgeHighway courts cansaythesame. center projectbeforetheMichigan will befinishedwithitstransit tion, thereisagoodchanceTroy on ownershipremains resumes, butdispute Construction funding on transitcenter Troy moves ahead near MapleRoadandCoolidgeHighway. A workerscrapesawayexcessconcreteonthesiteofTroytransitcenter makes upanother. example. TheUpperPeninsula counties makeuponeregion,for Wayne, OaklandandMacomb regions thathavebeencreated. points ofcontactforeachthe10 will beorganizedtohavespecific same serviceareas. state departmentsoperatewiththe same setofstrategiesandhaveall The And ifthecenteropensnear At thecurrentpaceofconstruc- To enter, pleasevisit in along-runningdispute. Currently, somestatedepart- State governmentdepartments last weeknotifiedTroyit CRAIN’S DETROITBUSINESS B Federal RailroadAdministra- Y C Grand/Sakwa Properties HAD H ALCOM crainsdetroit.com/nominate where mostoftheconstructionis titled toreclaim2.7acresofland and ruledthatGrand/Sakwaisen- Circuit Court overturned a2011 gineer SteveVandette. expenses sincethen,saidCityEn- million inreimbursablebuilding city. Troyhasrackedupabout$1.6 longed toGrand/Sakwa,notthe ruled inMaythatthepropertybe- after the nearly $10milliontransitcenter the federalfundingportionof railroad administration. public affairsspecialistforthe trol fromthecity,saidRobKulat, ceiving aplanforcontinuouscon- halted forseveralmonths,afterre- transit center,whichhadbeen the cityforconstructionon would resumereimbursementsto know whomtocontact. sion whenlocalofficialsneedto partments thatcancauseconfu- between divisionswithintheirde- ments havedifferentserviceareas like dairyandfoodinspections, uses toprovideservicesforthings example, has15differentzonesit culture andRuralDevelopment A three-judgeappellatepanel Reimbursements hadstoppedon The NATHAN SKID/CRAIN’SDETROITBUSINESS Michigan DepartmentofAgri- Michigan CourtofAppeals ruling inTroy’sfavor, $2 acopy;$59year See Troy,Page37 See Map,Page38 Aug. 16 for entries Deadline Oakland County

® , for 20130812-NEWS--0002-NAT-CCI-CD_-- 8/9/2013 4:05 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 12, 2013

MICHIGAN BRIEFS Saginaw Co. becomes 3rd muni to Ⅲ The ninth annual Traverse City Film Festival, whose six-day run halt bond sale after Detroit’s Ch. 9 Expanding Meijer plans to hire 4,400 in Michigan ended Aug. 4, broke all records, the The number of Michigan munic- Traverse City Record-Eagle report- ipalities to delay bond offerings af- Walker-based Meijer Inc. plans to hire 4,400 work- wide. Nearly one in 10 — 880, to be exact — will be in ed. All told, 123 of 188 screenings ter Detroit’s record bankruptcy fil- ers in Michigan in the months ahead because it is the Grand Rapids area. Last year, Meijer said it sold out. Admissions totaled ing last month grew to three last growing beyond its current 100-plus stores across would hire 12,000 workers companywide. 119,000, up 28,000 from last year. week after Saginaw County post- the state and because the fall and holiday selling Most of the new positions this time around will be Ⅲ An $80 million development poned a planned $61 million bond seasons are approaching, MLive.com reported. part time, the company said. has been proposed for Bath Town- sale, Bloomberg News reported. A The retailer has opened five of six new stores Most new Meijer stores require 200-250 employ- ship, near East Lansing, the Lans- spokesman for Cincinnati-based planned for this year, including its first in Detroit. It ees. Besides the traditional retail roles of stocker ing State Journal reported. The Fifth Third Bancorp, lead under- has nine openings planned for 2014. and cashier, stores also will hire meat cutters and plan includes residential buildings writer on the offer, confirmed the Overall, Meijer plans to hire 9,000 workers chain- cake decorators. surrounding covered parking ar- postponement. eas along a commercial main street, as well as restaurants and Saginaw County, which had Michigan has an Old National, af- the first group of wannabe doctors, Farmington Hills-based private retail space. been set last Thursday to hold the ter Evansville, Ind.-based Old Na- The Associated Press reported. The equity firm Beringea LLC has in- Ⅲ What do you call someone biggest bond deal in the state since tional Bancorp acquired 20 Bank of 64 students in the first class will vested $3 million in Freeosk Inc., a who promises “outlandishly high Detroit sought court protection America Corp. branches in south- spend their first two years on marketing services company interest rates” and suggests that July 18, joined Genesee County west Michigan. Now the company CMU’s Mt. Pleasant campus and the with operations in St. Joseph and your investment is safe? In the and Battle Creek in delaying sales. wants to extend its reach from the final two years in Saginaw. The Chicago. Freeosk provides a case of Greg McKnight of Swartz Genesee County’s sale, planned for area around Kalamazoo into Grand Saginaw facilities include a CMU quick way for consumers to re- Creek, you call him a prisoner, af- Aug. 1, was to be $54 million in Rapids, a market four times larger, campus and sites linked to Covenant ceive free samples of new prod- ter a judge in Flint sentenced him bonds; Battle Creek was to sell $16 MiBiz reported. HealthCare and St. Mary’s of Michigan. ucts and has pilot tests in a hand- to more than 15 years for a finan- million in bonds this week. “We’re very encouraged by our Speaking of new medical schools, ful of retail operations, with plans cial scam that involved more than The Saginaw County and Battle growth prospects” in Michigan MLive.com reports that more than to roll out nationwide this year. $45 million and more than 3,000 in- Creek securities are rated Aa3, the and northern Indiana, said Bob 2,100 students have applied for the Ⅲ Christopher Shires, director fourth-highest level, by Moody’s In- Jones, Old National’s president 50 openings at the Western Michigan of interpretation and programs at Find business news from vestors Service. The localities have and CEO. He said the bank wants University School of Medicine, which the Edsel & Eleanor Ford House in around the state at crainsdetroit been delaying sales amid investor to make additional acquisitions in doesn’t open until 2014. Grosse Pointe Shores, will become .com/crainsmichiganbusiness. speculation that Detroit Emergency the state. Ⅲ After losing more than $5.2 mil- executive director of the Holland Sign up for Crain's Michigan Manager Kevyn Orr’s treatment of Old National has nearly 190 of- lion over the previous nine years, Museum next month, The Holland Business e-newsletter at crains general-obligation debt could set a fices in Indiana, Illinois, Kentucky the DeVos Place convention center Sentinel reported. detroit.com/emailsignup. precedent, especially in the state. and Michigan, and assets of $9.7 in downtown Grand Rapids posted billion. an operating surplus in the recently Banking’s latest First says you concluded fiscal year, the Grand CORRECTION ICH CELLANEOUS Rapids Business Journal reported. Ⅲ A story on Page 23 of the Aug. 5 issue should have listed Scott haven’t heard the last from it M - The preliminary and unaudited fig- Ⅲ Miller, owner/operator of detpokerz.com, as fundraising chairman for Let’s see. You have First Nation- Central Michigan University has ures show $95,725 in the black. the Band Boosters Association of West Bloomfield rather than president. als. You have Fifth Thirds. Now opened its new medical school to Ⅲ MiBiz reported that the

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August 12, 2013 CRAIN’S DETROIT BUSINESS Page 3 Detroit: A seller’s market? Inside City home prices jump, so do bidding wars

BY AMY HAIMERL erty to buy. Prices have doubled over CRAIN’S DETROIT BUSINESS DIS-CREDIT the past year, inventory is shrinking, and bidding wars are breaking out in Three months after Diana Bowman Ⅲ Loss of state some of the city’s most desirable tax credit hurts bought a grand Victorian home with a neighborhoods. wraparound porch in southwest De- redevelopment, Page 40 “We have more buyers than we troit, the city declared bankruptcy. have sellers,” said Ed Potas, real es- Now she is fielding calls from her far- tate development manager for Mid- Sale clears way for hotel at flung friends and family expressing shock and town Detroit Inc. “We’re seeing value come concern for her decision. back. We’re seeing buyers in the market who Detroit firehouse, Page 31 She is not deterred. are bringing more cash to the table. We’re in “It is interesting to see the various spins be- the meat of the rebound.” ing put on this story by the international me- Median home prices in the metro area Company index dia,” said Bowman from her native Australia, jumped nearly 20 percent between May 2012 These companies have significant mention in this where she is visiting family. “I think it is going and May 2013, according to the S&P/Case-Shiller week’s Crain’s Detroit Business: to be a really interesting period for all of us liv- Home Price Index. That’s more than double the 21 Century Holdings ...... 31 ing in Detroit, and I am really excited to be a national rate. American Axle & Manufacturing Holdings ...... 19 Art Van Furniture ...... 33 part of it.” And prices aren’t just rising in the suburbs. TONY BARCHOCK AudioNet America ...... 13 The problem now, in a city known interna- The city itself posted an 11.7 percent increase Autoliv ASP ...... 27 in the first quarter of 2013, putting the median Diana Bowman, who teaches at the University of tionally for its swathes of vacant land and end- Michigan, bought a house in Detroit so she could help BarFly Ventures ...... 24 less derelict homes, is actually finding a prop- Beaumont Health System ...... 12, 14 See Homes, Page 40 the city through her research and work. Belfor Holdings ...... 27 Biggby Coffee ...... 30 Bistro Joe’s ...... 39 Blue Cross Blue Shield of Michigan ...... 1, 17 Capitol Park Partnership ...... 40 Catholic Social Services of Washtenaw County . . . . 4 Center for Automotive Research ...... 10 Telemus Center for Healthcare Research and Transformation 16 Citizens Research Council of Michigan ...... 26 Clark Hill ...... 4 Commonwealth Café ...... 39 Compuware ...... 27 plans growth Contech Castings ...... 10 Continental Automotive ...... 10 Con-way ...... 27 Cooper-Standard Automotive ...... 27 Delphi Automotive ...... 10 with stake Diamond Electric Manufacturing ...... 4 Domino’s Pizza ...... 27 Dow Chemical ...... 27 Dow Corning ...... 27 Dykema Gossett ...... 37 sale to Focus Foley & Lardner ...... 4 Ford Motor ...... 10 Forest Grill ...... 39 BY SHERRI WELCH Foster McCollum White & Associates ...... 41 CRAIN’S DETROIT BUSINESS General Motors ...... 27 Grand/Sakwa Properties ...... 1 Southfield-based Telemus Capital Grassroots Midwest ...... 41 Partners LLC plans to use capital Hatch Detroit ...... 6 from the sale of a minority stake of Henry Ford Health System ...... 12 the firm to New York City-based Hospice of Michigan ...... 14 Kelly Services ...... 27 Focus Financial Partners LLC to fund Key Safety ...... 27 the acquisition of other Michigan Legacy Advisors ...... 40 investment advisers. Loomis Sayles ...... 38 Focus, one of the largest groups Main Street Strategies ...... 41 Media … Period ...... 41 of independent wealth manage- Metaldyne ...... 27 ment companies in the country GLENN TRIEST Michigan Chamber of Commerce ...... 32 with more than $60 billion under Townhouse Bistro owner Jeremy Sasson said his restaurant’s smaller size allows him to fill it more often during the Michigan Inst. of Urology Men’s Health Foundation 12 management, has invested an summer, making up for lower traffic in the winter. Michigan Lending Solutions ...... 40 Midtown Detroit ...... 3 undisclosed amount in Telemus in Miller Law Firm ...... 4 exchange for the minority stake, MSX International ...... 27 company executives told Crain’s Muskegon River Lodge ...... 23 last week. Telemus, in turn, has se- Bistros feed Birmingham’s O’Connor Real Estate ...... 40 Real Estate One ...... 40 cured an undisclosed share in Fo- Recycle Ann Arbor ...... 20 cus. Rockford Construction ...... 19 Focus was included on Inc. mag- St. John Providence Health System ...... 16 azine’s list of fastest-growing pri- appetite for smaller restaurants Shiloh Industrial ...... 10 vate companies in 2010 and 2011. Sinai-Grace Hospital ...... 11 Social Kitchen ...... 39 Crain’s New York Business named BY NATHAN SKID “It’s part of an overall shift,” Bruner said. “Birm- Superior Capital Partners ...... 6 it to its 2012 list of the “Fast 50” list CRAIN’S DETROIT BUSINESS ingham is not a cheap place to do business, and the TI Automotive ...... 27 of New York City’s 50 fastest-grow- economics can be difficult, especially with the dining TonTin Lumber ...... 19 ing companies. ver the past 2½ years, downtown Birm- Townhouse Bistro ...... 39 public trending toward smaller, more intimate TRW Automotive Holdings ...... 27 The deal is the fifth this year for ingham’s largest restaurants — South Bar, places.” University of Michigan ...... 4, 10 Focus, the third in the Midwest Chen Chow Brasserie and Zazios — shut- Mary Chapman, director of product innovation Urban Ashes ...... 22 and second in Michigan, following O tered their doors, pushed out by poor for Chicago-based food industry research firm Tech- Wayne County Airport Authority ...... 33 Zingerman’s Deli ...... 30 its Aug. 1 investment in Grand management or slow sales. nomic Inc., said Birmingham’s boom in smaller, chef- Rapids-based investment adviser In their wake, the downtown area has been filling driven bistros is following a national trend. Department index LaFleur & Godfrey Inc. up with smaller bistros, about two per year since it be- Chapman said guests are choosing the bistros Telemus, with assets under gan offering bistro licenses in 2007, to the current 16. over their larger counterparts for several reasons; BANKRUPTCIES ...... 32 management of more than $2 bil- The bistros share several commonalities: smaller mainly, customers are looking for high-end cuisine BRIEFLY ...... 33 lion, will continue to operate un- footprints, seasonal menus with thoughtfully without the pretension. BUSINESS DIARY ...... 35 der the direction of its current sourced ingredients, and casual atmospheres. “If there is comparable quality of food to a white- CALENDAR ...... 34 partners while securing access to Bob Bruner, city manager for Birmingham, said tablecloth restaurant for less money, of course it will CAPITOL BRIEFINGS...... 32 capital and expertise in areas such there has been a noticeable move away from large- CLASSIFIED ADS ...... 37 scale, white-tablecloth restaurants. See Telemus, Page 38 See Bistros, Page 39 KEITH CRAIN...... 8 LETTERS...... 8 Don’t let summer slip by Inside scoop OPINION ...... 8 See what’s on the minds of reporters on THIS WEEK @ Check out what the weekend holds in store with PEOPLE ...... 36 “10 Things to Do in Detroit,” posted every Thursday the front lines of gathering Crain’s WWW.CRAINSDETROIT.COM afternoon at crainsdetroit.com/tenthings. business news at crainsdetroit.com/blogs. RUMBLINGS ...... 42 WEEK ON THE WEB ...... 42 20130812-NEWS--0004-NAT-CCI-CD_-- 8/9/2013 5:29 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 12, 2013 New charges, stay request signal more supplier price-fixing prosecutions ahead

BY CHAD HALCOM and some subsidiaries between Aiello of Foley & Lardner LLP in De- CRAIN’S DETROIT BUSINESS 2003 and 2010. The two companies troit both said it’s possible that re- are the first new charges in eight quest means the government ex- Federal officials who eased up months other than a pair of indi- pects its second wave of cases the pace of prosecuting automotive vidual charges in May against for- soon, but wouldn’t speculate on a supplier price-fixing for eight mer Denso Corp. executives Yuji timetable or scale for that. months could be ready to punch the Suzuki and Hiroshi Watanabe. Justice attorneys have also said accelerator again, if recent court- Suzuki and Watanabe also entered that some plaintiff attorneys in the house activity is any indicator. their pleas and were sentenced last Battani civil case have said the U.S. District Judge Marianne week before Steeh. Previously the stay should be six months instead Battani for the Eastern District of federal government had charged of a year, but Miller said he is not Michigan could decide by next and sentenced nine supplier com- making that objection. week whether to grant the U.S. De- panies in just over one year, culmi- “We want to build our case as partment of Justice Antitrust Divi- nating last December. much as possible, but our case is sion’s request for a one-year stay on The new charges, coupled with mainly parallel with the govern- portions of the expansive civil law- the new stay that the Department ment’s, and we certainly don’t want suit alleging price-fixing over the of Justice is seeking on the related to get in the way of that,” he said. past decade — in order to protect its civil cases in Battani’s court, sug- William Kohler, co-chair of the ongoing criminal investigation. gest much is to come in the next automotive and manufacturing A stay might not sound like few months in terms of federal practice group at Detroit-based things are heating up, but attor- prosecutions, attorneys said. Clark Hill PLC, said other variables neys said the timing suggests the “That’s the reward for coming are likely in play as well, like the government’s case will be much clean, as a conspirator your com- time it takes to convince certain further along by this time in 2014, pany has its portion of the case re- auto executives of the need to take with several more companies and solved early, when the govern- a plea versus facing a worse out- executives taking fines and prison ment is still doing some come from going to court. terms like those who have already fact-finding, and The government also could try made deals. it comes with a to time a wave of cases together for Shareholder problems? Last week, Osaka, Japan-based legal require- media exposure that helps con- Changing the Odds in Our Clients’ Favor Panasonic Corp. entered guilty ment to cooper- vince other suppliers that Justice pleas before U.S. Judge George ate with the rest is taking collusion very seriously, Brian E. Etzel Jayson E. Blake Marc L. Newman Kevin O’Shea Steeh, also for the Eastern District, of its investiga- he said. on three counts of conspiracy to re- tion,” said E. “The Justice Department wants strain trade in violation of the Powell Miller, its settlements to have impact, and Sherman Antitrust Act. Panasonic president of The they will hold out for a resolution or is the first company to do so in De- Miller Law Firm set of resolutions that are sure to get troit since Tokai Rika Co. Ltd. did in PC in Rochester noticed,” he said. “It’s sort of a Miller mid-December. and liaison Martha Stewart effect, where the Diamond Electric Manufacturing counsel for a prospective class of defendant does have an interest in Co., an Osaka company with U.S. auto customers affected by price- an offender who had a specific headquarters in Dundee, has fixing in the Battani lawsuit. transaction, but also in an outcome agreed to enter a guilty plea on a “But then as the cooperation that is high-profile, it encourages similar charge brought July 16, as builds, the strength of the govern- cooperation in the same field.” will the former vice president of ment’s case builds. And after that In the meantime, local suppliers its Toyota Global Business Unit, first wave of actions, another one have been putting a lot of effort into Takayoshi Matsunaga. But no date can be expected to follow based on new or expanded internal compli- E. Powell Milller Richard “Tony” Braun is set in court for either case. that cooperation. That’s usually ance programs to monitor their Shareholder and partnership disputes Corporate governance litigation Diamond has agreed to $19 mil- how these cases progress.” sales staff and prevent future collu- lion in criminal fines and Pana- Minority oppression litigation Corporate control contests Until now, Justice has mostly sion, said Aiello, who co-chairs the sonic another $45.8 million for gone along with civil attorneys re- auto industry team at Foley. Breach of fiduciary duty Securities fraud and derivative claims their role in the collusion, bring- questing discovery or depositions “It’s very company-specific. But ing the total fines to about $874 from segments of the auto supply almost all companies we’ve been 248-841-2200 million against 11 supplier compa- chain where the government con- dealing with have done at least millerlawpc.com nies since fall 2011. siders its own investigation large- something by now, whether it’s es- Panasonic admits to conspiring ly over — like among wire harness tablishing new internal controls, with other suppliers to fix the suppliers, where it has landed con- or employee education policy,” he prices of steering wheel and turn victions of Furukawa Electric Co. Ltd. said. signal switches, headlamp regula- (U.S. subsidiary in Plymouth “And it absolutely takes some tors, door courtesy switches and Township) and Yazaki Corp. (U.S. commitment, in terms of person- wiper controls sold to Toyota Motor headquarters in Canton Town- nel and expense. There’s a time Co., Honda Motor Co. and then-Ford ship), or among suppliers of heat value in the portion of the employ- Motor Co.-controlled Mazda Motor control panels. ee’s own work that now gets devot- Co. Ltd. between 1998 and February But the new request, to put a ed to compliance, whether it’s 2010. Panasonic houses its U.S. stay on discovery and depositions making new reports or attending subsidiary in Secaucus, N.J., and a on what the government is calling training sessions to follow an HR sales office in Farmington Hills. “subsequent product cases” (or the policy.” Diamond will admit to rigging industry segments where Justice’s Chad Halcom: (313) 446-6796, bids for ignition coils sold to Ford, investigation isn’t done yet), may [email protected]. Twitter: Toyota and Fuji Heavy Industries Ltd. be more telling. Miller and Mark @chadhalcom UM family clinic transferred to Catholic Social Services The University of Michigan School abuse and neglect and their fami- Now the clinic will be able to ex- of Social Work has spun off its lies shifts to Ann Arbor-based pand its services, and the UM Family Assessment Clinic to Catholic Social Services. school will be able to focus on its Catholic Social Services of Washte- Students and faculty from UM’s related research and training. naw County. schools and departments of social President Larry Voight said he The transfer took place in May work, law, education, medicine expects the costs of operating the but was announced last week. and psychology continue to be in- clinic will be covered through the Through the transfer, the loca- volved with the clinic in its new lo- tion of the Ann Arbor clinic and cation, said Laura Lein, dean of state contract and through fee-for- the responsibility for administer- the UM School of Social Work. service counseling. CSS is operat- ing assessment and treatment of It made sense to shift the ser- ing on a 2013 budget of $7.5 million, children who are victims of physi- vices to CSS because of its long his- Voight said. cal, sexual and psychological tory of providing clinical services. — Sherri Welch DBpageAD_DBpageAD.qxd 8/5/2013 12:36 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS August 12, 2013 10 small businesses make it to

Manufacturing is not semifinals in Hatch Detroit contest BY AMY HAIMERL and skin planned for CRAIN’S DETROIT BUSINESS Corktown. The just coming back, We see founder is Dameshia First there were almost 200 com- “ Edwards. petitors. Then there were 10. independent retail Ⅲ HenriettaHaus it’s moving forward. Hatch Detroit unveiled the semifi- Coffee Roasters, a cof- nalists for its third annual Comeri- as the lifeblood of fee roaster and café, ca Hatch Detroit Contest on Thurs- plus waffles, planned day night, revealing what area neighborhoods. in a building pur- "
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 tor pitches to a panel of judges, ural and organic products for hair founder is Sarah Pavelko. Superior Capital acquires two glass, aluminum companies

BY CHAD HALCOM CRAIN’S DETROIT BUSINESS

Detroit-based private equity firm Superior Capital Partners LLC has acquired two architectural glass and aluminum companies — Aldora Glass Holdings in Florida and Coastal Glass Distributors Inc. in South Carolina — from its initial equity fund. Did you kknow?? Terms of the deal, which took ef- fect July 26, were undisclosed. The The Health Care industry drives 1/6 of the U.S. economy. combined operation, to be bundled under platform company Aldora Holdings Inc., is based in Miramar, ® Fla., and represents about $20 mil- TCF Bank in Michigan has lent over $100 million to lion in combined revenue and more than 160 employees in both states, with more than 1,250 customers in health care related businesses. several southeastern U.S. states. Aldora Glass owner Leon Silver-

® stein becomes CEO of Aldora Hold- Did you know that TCF Bank : ings. Managing Director Scott Hauncher at Superior Capital said s Has health care banking experts on its team? Aldora and Coastal are the fund’s s Is committed to growing its loan portfolio in the health care segment? 14th and 15th acquisitions, and both companies retain their names as s Finances medical practices? subsidiaries of Aldora Holdings, the s fund’s sixth platform company. Finances long term care projects? Aldora and Coastal are fabrica- s Finances the senior-living industry? tors and distributors of architec- tural glass and aluminum prod- ucts, including storefront and To learn more, contact: entrance doors, table tops, shelves, window and curtain wall systems. Janet Pasco at 248-740-1622 or [email protected] Superior Capital launched its first fund in 2007 with a $50 million fund to invest in distressed compa- nies in need of turnaround help, and ©2012 TCF National Bank. Member FDIC. www.tcfbank.com told Crain’s in July it is preparing this year to raise a second fund. DBpageAD_DBpageAD.qxd 8/7/2013 11:00 AM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS August 12, 2013 OPINION An artful solution amid bankruptcy rt patrons are incensed over a New York City auction house’s contract to appraise the value of the art held A by the Detroit Institute of Arts. Appraisers, hired by Detroit Emergency Manager Kevyn Orr, will focus solely on art purchased with city funds versus works that have been donated. Such valua- tions will be made of other city assets, such as the Coleman A. Young International Airport and the city- owned portion of the Detroit-Windsor Tun- nel. Diego Rivera Court at the Detroit Institute of But the art is emo- Arts tional — and political. In public debates, for example, mayoral candidate Benny Napoleon made it clear: If Belle Isle, the water department and other city assets are on the table, the DIA’s art should be, too. This is an opportunity for Detroit, the DIA and art patrons to create a path to protect the museum from financial raids now and in the future. It is a city asset unlike any other. How? LETTERS First, the DIA has benefited from public investments from out- side of Detroit for years; from 1989 until 2009, the state of Michigan pumped about $130 million into the museum in City retirees aren’t the villains recognition that it was an asset for the entire state. More recently, voters in the tri-county area last summer Editor: pending on when a person retired, Crain’s Detroit Business agreed to support museum operations with a millage over 10 Regarding your article on the it could have been calculated on welcomes letters to the editor. city of Detroit retirees and Kevyn the last six years of employment. years to the tune of an estimated $23 million a year initially. A All letters will be considered for sale of art could lead those governments to rescind the pay- Orr’s stand regarding the pension publication, provided they are So much misinformation print- ments, arguing that the game had changed. fund and bankruptcy (“Detroit Ch. signed and do not defame ed and stated through the media 9 may set pension precedent,” needs to be corrected. Even one of So why shouldn’t the DIA voluntarily offer to sell some individuals or organizations. Aug. 5, Page 1), there is one state- Letters may be edited for length the councilwomen has been quot- works it could live without? Two reasons: First, it means that ment I find very upsetting due to and clarity. ed as stating a retiree receives false information. $100,000 a year. In reality, the aver- any time the city has a financial problem, the piggy-bank Write: Editor, Crain’s Detroit A portion of the article says precedent is set: In the red? No problem! Just go sell a painting! Business, 1155 Gratiot Ave., age civilian pensioner receives “some employees have been able to Detroit, MI 48207-2997. about $16,000 or less yearly. Also, Second, such a sale violates professional canons. Which stockpile large chunks of vacation Detroit police retirees do not re- Email: [email protected] means the DIA could kiss goodbye any hopes of getting works and sick time over the years … .” It ceive Social Security. on loan from museums worldwide for future exhibits. should also be acknowledged that if Retirees are not the villains of The solution may come in a transition to a different kind of an employee has accumulated a over only a limited amount of va- the city of Detroit. We were the large amount of vacation time, they cation time from the previous backbone of the city, and we sacri- ownership of the works, an ownership that would protect the had worked years without even year. If you did not use the time, ficed greatly during employment. art for future generations. That restructuring could be consid- taking vacation days they had you lost the time. Retirees have been laid off, taken ered as part of a bankruptcy plan, perhaps with the DIA mak- earned. Regarding sick time: You could numerous pay cuts, worked with- ing a significant contribution to the city through its endow- Please be mindful that employ- only get paid for half of sick leave out pay, were overworked due to upon retirement. So you gave the ment. ees only earned 14 days of vacation staff cuts and no replacements, per year. So if they accumulated city back time you earned over the have worked 18-hour shifts due to If this current crisis leads to such a resolution, Detroit’s any vacation days, that meant years. manpower shortages, lost cost-of- bankruptcy may be the best thing for the Detroit Institute of they worked the entire year for Also, retirement is not calculat- living pay, and were paid less than Arts and the public who visit, after all. years. Also, workers could carry ed by your last year of service. De- See Letters, Page 9

KEITH CRAIN: It’s nice to have something to cheer about

Last week, Detroit voters took hope that through all grow and prosper. every game. There is still a lot of baseball un- surprising action and overwhelm- the muck, we’ll be able Meanwhile, the De- Sure, we have our superstars, til the World Series, and in be- ingly picked Mike Duggan with al- to learn something, troit Tigers are giving but I am pleasantly surprised at tween, we’ll be able to watch and most half of the ballot on a write-in however slight, about us something to cheer how all the players seem to take root for football, as well. And let us along with Benny Napoleon. The how the many candi- about. It’s exciting to turns each game to be today’s not forget that we’ll see the start of top two vote-getters for mayor dates plan to build the see America’s pastime hero. college football very soon. were no surprise — the surprise economy of Detroit getting the attention It seems bizarre that while the Detroit needs something to was the overwhelming response to when and if the emer- that it deserves in the Tigers are on a tear, we have the cheer for, and the Tigers have giv- Duggan’s write-in candidacy. gency manager leaves Motor City. Lions opening up for business next en us that. Let’s hope we can con- But we have our candidates for the city. We all love a winner, door. It’s been more than half a tinue to enjoy their victories for mayor and all the Detroit City The EM’s job is to get and we all love our century since we’ve seen the Lions the next couple of months, and Council districts as well as the two the financial house in sports heroes. What win it all, but amazingly we still with a little luck and a prayer, we at-large positions. I have no doubt order. These elected seems to be so great have a ton of optimists who know might even see the Lions have that it will be a vigorous mayoral politicians are going to have to about the Tigers is the number of that this year will be the year. Like their own winning ways. campaign with lots of mudslinging concentrate on economic develop- heroes we have on our team. There the rest of Detroit, I hope they are Heck, we might be able to toler- and plenty of racial talk. I can only ment if we want to see Detroit are plenty of players to root for right. ate the election campaign after all. 20130812-NEWS--0008,0009-NAT-CCI-CD_-- 8/9/2013 10:17 AM Page 2

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 9 LETTERS CONTINUED TALK ON THE WEB ■ From Page 8 their lives to line his pockets. If he the private sector and other gov- Re: Wayne sees extra yield for debt Reader responses to stories and blogs that appeared on Crain’s website. did the same with a knife or gun, ernment agencies. But retirees soar in wake of Detroit bankruptcy Comments may be edited for length and clarity. this would not be a question. I hope stayed through it all and provid- Wayne County is not a victim of any- he enjoyed fleecing the public till ed great services. Retirees stayed thing. The prices of its bonds, and looking at that before the Chapter stances in Detroit. However, those and really enjoyed the money. And with the knowledge they would the demanded yield on those bonds, 9 bankruptcy for Detroit was filed. dire circumstances will not stop the don’t forget to pull his medical li- receive a pension upon the com- are only reflective of investors’ as- New York averted bankruptcy. … handout of hundreds of millions of cense; he shouldn’t even work at a pletion of the 30-plus years. sessment of Wayne County’s fiscal I am sure Snyder would be de- dollars for a hockey arena for one of doll hospital. Retirees have also invested mismanagement. I will not be sur- lighted with getting Detroit out of Michigan’s richest families. Timothy Dinan their own money into the pen- prised when Wayne County has an Carolyn Mazurkiewicz sion fund from the low income emergency manager take over. The bankruptcy in the fall of 2014. The they received. Retirees did this sooner the better. election for Michigan governor is Re: Voting not easy in Detroit with the understanding that this 257244 in November 2014. Re: Judge to say if doc gets released I had no problems, either at the was a guarantee provided by the It is apparent that Snyder has the polling place for my mom (a Yes. Keep him in, please. Unlike a law under the Michigan Consti- Re: Snyder and post-bankrupt Detroit Ilitch family’s best interests at school) or my polling place (a tution. heart. He seems to have no problem notorious felon whose violent acts church). Both were easy to find, Additionally, Mr. Orr has com- Gov. Snyder is looking at New with 80- and 90-year-old people los- are readily apparent, Dr. Fata vio- and parking was easy. Please pared himself to a city of Detroit York City’s brush with bankrupt- ing pension money or selling DIA lated the fundamental rights of his don’t generalize. retiree, saying he does not have a cy? Maybe he should have been art because of the dire circum- patients and recklessly endangered WritingItRightForYou pension, and he has to pay his own insurance. How can he com- pare himself with a city of Detroit employee/retiree when he is be- ing paid more than $250,000 and has his accommodations and meals paid by the city? Had em- ployees been paid the money he is being paid for 18 months of ser- Nursing education vice, surely we could have invest- ed our money in other funds oth- that changes lives er than the Detroit general pension system. Certified Nurse Practitioner Davida Kruger The city of Detroit retirees should also have a voice. Justice is devoted to diabetes patient care and should be served, and the truth research. For more than 30 years, she has should be told. Cynthia Haskin studied the illness that affects more than Detroit 25 million Americans while also teaching her patients how to manage the disease. Detroit residents made right election choices Davida received her master’s degree from the Wayne State University College Editor: Detroit residents’ voice of Nursing. Honored by the American emerged as the loud and clear Diabetes Association for her work, she winner in the election results on Tuesday. What an extraordinary is part of a National Institutes of Health- victory. Residents seemed to un- funded study and has co-authored more derstand the difficult tasks at hand, the opportune moment as than 70 articles. And every day, she the eyes of the nation are focused on Detroit again, and the special demonstrates our college’s steadfast historical firsts involved. commitment to excellence in clinical This strong resident “voice” is an emerging asset that will help practice, scholarship and research. build Detroit’s next chapter. En- gaged, caring citizens chose to af- Sooner or later, most of us will need a firm and reaffirm the connection nurse. And at the Wayne State University between place (in these first dis- trict elections) and political effec- College of Nursing, we’re graduating tiveness. They selected candi- dates, by and large, with strong the best. neighborhood roots (like Scott Benson, Raquel Castanada-Lopez and Adam Hollier) and candi- dates with demonstrated commit- ment to leadership for the public good (like James Tate and Saun- teel Jenkins, as well as others). They acted to move forward a historically unprecedented write- in candidate, but more impor- tantly, they chose two candidates for mayor who are ethical, decent leaders. They both exude positive Davida Kruger, C.N.P. in the Henry Ford Health System Division energy, possess distinguished ex- of Endocrinology, is past chair of the American Diabetes ecutive track records and display Association’s Research Foundation, editor-in-chief of the journal willingness to raise the real and the tough issues. Detroit voters Clinical Diabetes, and a 1982 graduate of the Wayne State soundly rejected the politics of University College of Nursing. Aim Higher. hate, exclusion and divisiveness. College of Nursing Bravo, Detroit residents. This strong voice will be the frame- work for building a better tomor- row. Edward Egnatios CEO EK & Associates LLC 20130812-NEWS--0010-NAT-CCI-CD_-- 8/9/2013 10:13 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS August 12, 2013 Hot topics among suppliers: Electronics, downsizing

BY DUSTIN WALSH Systems Inc. that is designed to of- and chief technologist for Troy- the Web or a mobile app, the device tendees on the connected-vehicle CRAIN’S DETROIT BUSINESS fer next-generation connectivity. based Delphi Automotive plc, said provides remote access such as testing happening in Ann Arbor. Tejas Desai, head of electronics the industry is well down the rab- command of door locks and remote More than 2,750 cars are TRAVERSE CITY — At the Center for Continental Automotive in Auburn bit hole of technology, and that start, plus diagnostic testing. equipped with connected devices for Automotive Research’s Manage- Hills, said the technology provides connectivity will redefine it again. Information gathering is helping and are being tracked by the Trans- ment Briefing Seminars conference reliable network connectivity and “Transportation is being trans- the industry cope with the quick in- portation Research Institute. The last week, suppliers announced new enhanced security, which is needed formed by the smartphone,” Brown novation cycle, Brown said. Connected Vehicle Safety pilot pro- plants and products while automak- to solidify the automobile as a mo- said. “We will all be astonished by “We’re all working to tackle the gram is testing active safety tech- ers talked about the redefined sup- bile device. the solutions we have in 10 years.” industry’s greatest challenge” from nologies and interactions between plier-customer relationship. “The expectations for connectiv- Delphi is also conducting data a technology standpoint, Brown vehicles and infrastructure for the One of the hot topics executives ity and safety are a large step up mining using a cloud-based telemat- said. The telematics device is a risk U.S. Department of Transportation. pointed to: Suppliers are doubling from consumer electronics,” Desai ics device through Verizon Communi- getting into the consumer electron- The two-year program, which down on vehicle connectivity and said. “Losing a signal on a mobile cations Inc. The consumer product, ics market, he said, “but we must captures data from personal and planning for the future. phone or tablet happens, but in Vehicle Diagnostics by Delphi, pro- try to stay ahead of the wave.” commercial vehicles of volunteers, Continental AG unveiled a proof- auto, we’re not willing to tolerate vides buyers troubleshooting and Jim Sayer, program manager of launched Aug. 21, 2012. It has of-concept vehicle at the confer- that loss.” monitoring of their vehicle from a the University of Michigan Transporta- logged more than 37,500 vehicle-to- ence with technology from Cisco Andrew Brown, vice president smartphone or computer. Through tion Research Institute, updated at- vehicle interactions and more than 9 billion safety messages from more than 6 million miles driven by the cars, Jim Sayer, program manager of the Transportation Research In- stitute, told attendees at a briefing seminar. DENTAL IS ALL WE DO— The inner circle? Speaking of communication, the supplier-automaker relationship was another major topic at the AND WE DO IT BETTER! CAR seminars as automakers and large suppliers continue to shrink their supplier rosters. Referred suppliers to Ford Motor Co. will get a bigger share of the automaker’s purchasing budget — 70 percent, up from 65 percent — as the automaker continues to reduce its network of suppliers. Birgit Behrendt, the company’s vice president of global programs, said 104 suppliers in Ford’s Aligned Business Framework will get a big- ger share of the pie. However, Behrendt did not indicate how long it would take to shift more of Ford’s purchasing to these vendors. Behrendt also said the automak- er will continue to facilitate the creation of minority-owned joint When switching to Delta Dental, you may ventures such as Detroit Manufac- experience something you haven’t had with turing Systems LLC and Detroit Ther- mal Systems LLC, both created last other carriers—silence. year. DMS is a joint venture between Wayne-based Rush Group and With 9 out of 10 Michigan dentists participating, French supplier Faurecia SA. DTS was created between Redford Town- Delta Dental offers your employees in-network ship-based V. Johnson Enterprises LLC savings by improving the chance that their and French supplier Valeo SA. Behrendt said the joint ventures preferred dentists participate in one or more create opportunities for both sup- of our programs. That, in turn, results in less pliers and allow Ford to consoli- date its supply base. employee noise and helps us deliver greater plan savings to you. Silence really is golden! The big M&A deal Shiloh Industries Inc., which oper- ates a technical center in Canton To learn more about how Delta Dental can do Township, announced during the dental better for you, please contact your agent conference the acquisition of Rev- stone Transportation LLC subsidiary or visit deltadentalmi.com/dentaldonebetter. Contech Castings LLC for $54.4 mil- lion. The acquisition of Southfield- based Contech gives Shiloh with four plants — in Alma; Clarksville, Ohio; Auburn, Ind.; and Pierceton, Ind. — as well as new contracts with Ford Motor Co., General Motors Co., Chrysler Group LLC and Nexteer Automotive Inc. That’s according to Ramzi Hermiz, president and CEO of Shiloh. Shiloh gains capacity through the deal, which is constrained in the stamping and die-casting sup- ply base, Hermiz said. Dustin Walsh: (313) 446-6042, [email protected] Twitter: @dustinpwalsh 20130812-NEWS--0011,0012-NAT-CCI-CD_-- 8/9/2013 11:27 AM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 11

HOME IS WHERE SAVINGS IS Blue Cross touts medical home project, Page 17

Crain’s 12th annual Health Care Heroes People awards honor people in area health care roles in five categories. Stories on the win- Ⅲ The American Osteopathic ners and honorable-mention recipients be- Association elected Craig Magnatta, D.O., an osteopathic family physician in gin here and continue through Page 16. private practice at Rochester Medical Group, as first vice president. Ⅲ Crystal Holmes, D.P.M., a clinical assistant professor at the University of Michigan Health System, was appointed by Gov. Rick Snyder to the Michigan Board of Podiatric Medicine and Surgery to serve a four-year term. Ⅲ Ariel Barkan, M.D., a professor of internal medicine at the University of Michigan Health Holmes System, was elected to a one-year term as president of The Pituitary Society. Ⅲ Dottie Deremo, president and CEO of Hospice of Michigan, was appointed to a three-year term on Ascension Health’s board of trustees. Ⅲ James Froehlich, M.D., director of Reginald Eadie’s vascular medicine at the University of effort to educate Michigan’s Samuel and Jean Frankel employees at Sinai- Cardiovascular Center, was installed as Grace Hospital on president of the Society of Vascular the dangers of Medicine. obesity led to a Ⅲ Jim Giordano, president and CEO of hospital-wide and Troy-based CareTech Solutions Inc., has city-wide campaign been appointed chairman of the St. John called ‘Say No to Providence Health System board of Soda Pop.’ trustees. JOHN SOBCZAK Ⅲ Anne Fischer, M.D., has joined Beaumont Children’s Hospital, Royal WINNER: OUTSTANDING PHYSICIAN ACHIEVEMENT Oak, as the surgeon-in-chief and chief of pediatric surgery for Beaumont Health ‘Say No’ campaign against obesity catches on System. She also is a professor at the Reginald Eadie, M.D. He even wrote a book about obesity, How to wide campaign that blossomed into a city- Oakland University President Eat & Live Longer. wide campaign to “Say No to Soda Pop.” William Beaumont But it was as CEO of Sinai-Grace Hospital in At least 500 employees of the 2,200-person Detroit Medical Center’s Sinai-Grace Hospital School of Medicine. Detroit that Eadie was able to stimulate the workforce at Sinai-Grace raised their hands Previously, Fischer Detroit Fischer imagination of hundreds, if not thousands, of and pledged not to drink soda during Novem- was a faculty people on the dangers of obesity. ber 2012. member at the University of Texas s an emergency physician in Detroit, “I gave a speech last year on obesity before After word got out, Eadie began to work Southwestern and a surgical director at Reginald Eadie, M.D., saw firsthand employees and was asked what the number with officials of the Detroit City Council, Wayne the Children’s Medical Center of Dallas. A the effects of obesity: diabetes, high one source of weight gain was,” he said. “I County Commission and Wayne County Health Ⅲ The Michigan Peer Review blood pressure, shortness of breath, heart said, ‘soda pop.’ ” Organization has elected its executive disease, cancer. That answer last fall sparked a hospital- See Eadie, Page 12 leadership positions: David Herbel, president and CEO of LeadingAge Michigan, to chairperson; Gregory Forzley, M.D., chief medical HONOREES BY AWARD CATEGORY WINNER CATEGORIES information officer of health networks Outstanding Physician Achievement Corporate Achievement Trustee Ⅲ Corporate Achievement in Health for Trinity Health, to chairperson- in Health Care Care: Honors a company that has elect; Beverly Allen, CEO of Ⅲ Winner: Reginald Eadie, Ⅲ Winner: Sister Xavier created an innovative health benefits CoventryCares of Michigan Inc., Sinai-Grace Hospital, above Ⅲ Winners: Colleen Shefferly, Balance, St. John Providence plan or solved a problem in health treasurer; and Linda Dean Hamacher, Ⅲ Honorable mentions: William AudioNet America Inc., Page Health System, Page 16 care administration. executive director of Genesee Health O’Neill, Henry Ford Health 13; Jeffrey Band, Beaumont Ⅲ Honorable mention: Jack Ⅲ Advancements in Health Care: Honors Plan Corp., secretary. System; Edward Walton, Health System, Page 14 Billi, Center for Healthcare a company or individual responsible for a discovery or for developing a Ⅲ Michael Genord, M.D., a board- Beaumont Health System; Research & Transformation, Michael Lutz, Michigan Institute Page 16 procedure, device or service that can certified ob-gyn at Beaumont Hospital in of Urology Men’s Health Allied Health save lives or improve quality of life. Royal Oak, was elected to the Michigan Foundation, Page 12 Ⅲ Winner: Dottie Deremo, Ⅲ Physician: Honors a physician State Medical Society board of directors Hospice of Michigan, Page 14 whose performance is considered as a representative for Macomb and exemplary. Oakland counties. Ⅲ Allied Health: Honors an individual Ⅲ Kris Rutkowski, manager of from nursing or allied health fields pediatric speech and language THE JUDGES whom patients and peers deem pathology at Beaumont Health System in Ⅲ Mahir Elder, M.D., director of the cardiac care Ⅲ Lisa McDowell, manager of clinical nutrition, exemplary. Royal Oak, was selected by the unit at the Detroit Medical Center pharmacy department, St. Joseph Mercy Health Ⅲ Outstanding Physician Achievement Michigan Autism Council to serve on its Ⅲ Robert Hoban, president of the care continuum System, Ann Arbor and Trustee: Honors leadership and early identification and early intervention and a senior vice president of St. John Providence Ⅲ Robert Naftaly, board member, UAW Retiree distinguished service on a health care advisory group. Health System, Warren Medical Benefits Trust, Detroit board. 20130812-NEWS--0011,0012-NAT-CCI-CD_-- 8/9/2013 11:09 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS August 12, 2013 Health Care HONORABLE ject after six years of fundraising. Michigan campers are being Eadie: Taking fizz out of soda craze MENTION: PHYSICIAN served around the country by other ■ From Page 11 members of the SeriousFun Children’s Network of camps, but the ultimate Department and students who During that same time, sales of William O’Neill goal is to serve all local campers at served as anti-obesity ambas- bottled water and other healthy Cardiologist the new campsite outside of Pinck- sadors from Dr. Benjamin Carson This isn’t a war drinks increased. Henry Ford Health System ney, said Walton, director of pedi- High School and Cornerstone Charter “ Eadie said the effects from last Detroit atric emergency medicine at Beau- Health High School. against soda pop year’s “Say No” campaign are still mont Health System in Royal Oak. “This isn’t a war against soda pop being felt. Walton, who is on the North Star companies,” said Eadie, 44, a native companies. This is a “People are begging for more This year, Henry Ford Health Sys- camp’s board, was recognized for Detroiter who graduated from Cass gym equipment,” he said. “They tem cardiologist William O’Neill his efforts with the American Camp Technical High School and received war against the lack are thinking about their health was the first to Association when the Martinsville, his medical degree from the Wayne of knowledge the more.” successfully re- Ind.-based organization presented State University School of Medicine. Eadie said he thinks the cam- pair a ruptured him its 2013 Hedley S. Dimock “This is a war against the lack of public has regarding paign also has increased morale, heart and open Award for outstanding service. He knowledge the public has regard- loyalty, teamwork and engagement five blocked also received the 2012 Summit ing the dangers of soda pop.” the dangers of soda at Sinai-Grace. blood vessels us- Award from the Center for Associa- While Eadie said he hasn’t “Our employee satisfaction ing a catheteri- tion Leadership for the ACA’s tracked or studied the number of pop. scores are going up,” he said. “Last zation process. healthy-camp research initiative. people who actually quit or slowed ” year we increased the participa- In 2012, his Walton served on the ACA’s team performed their intake of soda — generally Reginald Eadie, M.D. tion rate for our surveys to 63 per- board of directors and was its vice about 200 calories for a 12-ounce cent from 32 percent.” the first lariat O’Neill president from 2010 to 2013. drink — employees continue to Over the next several months, procedure in At Beaumont in the past two talk about their pop-drinking habits. Eadie said, Sinai-Grace will begin several healthy Michigan, using a catheter-based years, he led the creation of a divi- “People stop me in the halls and tell me they food programs, including adding artificial sweeteners technique that limits the risk of sion of pediatric emergency medi- stopped drinking soda,” he said. “Some became veg- while reducing fried foods and drinks high in sugar. stroke in patients with atrial fibril- cine and a pediatric emergency etarians. I go to the cafeteria and people hide the fat- “We have talked with our food vendor about lation who can’t take blood thin- medicine fellowship. ty foods and sodas they are drinking.” bringing in healthier foods for our cafeteria,” Eadie ners. Walton also is a U.S. Navy re- Sales of pop in the Sinai-Grace cafeteria fell said, noting that the hospital offers a 10 percent dis- He also pioneered the use of an- servist scheduled to deploy to Kan- roughly 15 percent in November 2012 compared count on water. gioplasty for treatment of heart at- dahar, Afghanistan. with October, said Jennie Miller, public relations Jay Greene: (313) 446-0325, [email protected]. tacks, and in 2004 performed North — Ross Benes and marketing manager for Sinai-Grace. Twitter: @jaybgreene America’s first heart valve re- placement through a catheter. While he has many accomplish- Michael Lutz ments, O’Neill thinks his greatest Founder was leading a research partner- Michigan Institute of Urology ship between Beaumont Health Sys- Men’s Health Foundation tem and the University of Michigan St. Clair Shores THE LEUKEMIA & LYMPHOMA SOCIETY from 1985 to 1992 that “established CONGRATULATES OUR 2013 MAN & WOMAN OF THE YEAR angioplasty as the definitive treat- When asked about his greatest ment for heart attacks,” he said. professional achievement, Mich- CANDIDATES ON A RECORD BREAKING YEAR! Since August 2012, O’Neill has ael Lutz points been the medical director of the to the Michigan Making an impact in the fight against cancer Center for Structural Heart Disease at Institute of Urolo- Henry Ford Hospital in Detroit. He gy Men’s Health previously was dean for research at Foundation, the University of Miami Health System. which he co- O’Neill said he’s now trying to founded. The treat structural heart disease with foundation, catheter-based techniques and which funds less-invasive surgeries. prostate cancer “This will improve the lives of research and Lutz those who are unable to have open work involving heart surgery by extending their life men’s health issues, raised nearly and improving life quality,” he said. $500,000 over the past two years. O’Neill’s plans include estab- For the past five years, the foun- lishing the Structural Heart Dis- dation has held a Father’s Day ease Center “as one of the pre-emi- prostate cancer benefit run at the nent centers for fixing heart Detroit Zoo. valves and heart tissues,” he said. Lutz also helps stage the insti- Plans also include links to other tute’s Men’s Health Event at Ford centers in South America and Field, where hundreds of men get Canada by starting clinical trials an opportunity to evaluate their there and transporting the trials to health with free screenings, as the United States. These trials will well as educational and treatment Left to right: Dr. Jeffrey A. Zonder, Nancy Mendicki, 2013 Woman of the Year, Brenda Jenkins, test new medical devices for treat- opportunities. Dr. Andy Harris, 2013 Girl of the Year, Nicole Burton, 2013 Boy of the Year, Kyle Peterson, ing heart problems, he said. “Every time our foundation con- Jon Brief, Renata Crooms, Tom Connelly, 2013 Man of the Year, Ryan LaFontaine, — Ross Benes ceives, develops and implements a John Ruggero, Adrian Vido. (Not Pictured: Dr. Tom Simmer) new community opportunity, a Edward Walton new memory is created, becoming a special part of my urological ca- Director of pediatric emergency medicine reer,” Lutz said. Since Lutz joined the Troy-based Beaumont Health System Institute of Urology in 2008, the Royal Oak practice has doubled in size and now has 55 multi-subspecialty- Simply put, we are closer than ever to cures for many kinds of blood cancers. The North Star Reach camp in Ann trained urologists. We are on the brink of historic breakthroughs that will literally change people’s lives. Arbor now has 11 health system Lutz also said he’s involved with Cures today. Not someday. That’s the goal. And you are at the heart of it. Help us finish the job. sponsors, thanks new technologies to detect prostate in part to Ed- cancer, including 3-D mapping, and For more information or to get involved, please visit www.mwoy.org/mi or call 248.581.3904 ward Walton, efforts to minimize invasive treat- M.D. ments. THANK YOU TO OUR SPONSORS The camp, He has been a co-chairman of dedicated to pro- the American Cancer Society Great viding life- Lakes Division’s prostate cancer changing experi- task force since 1999. He also co- ences for founded the first Us Too prostate children and cancer support group in Michigan. families with se- Lutz is an assistant professor of Walton rious health urology at the Oakland University problems, is on pace to break William Beaumont School of Medicine. ground on a $26 million capital pro- — Ross Benes 20130812-NEWS--0013-NAT-CCI-CD_-- 8/9/2013 11:09 AM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 13 Health Care WINNER: CORPORATE ACHIEVEMENT IN HEALTH CARE Current, retired UAW members turn a listening ear Colleen Shefferly Before flat fees were negotiated, cause a real hunger exists for Shefferly said, people were being health care cost containment. President and founder billed $3,000 to $8,000 for a pair of “Hearing loss used to begin at AudioNet America Inc. hearing aids. age 75,” she said. “Now it is hap- AudioNet, founded Clinton Township “We save companies up to pening earlier, at age 70.” by Colleen 51 percent for our current clients Sixty percent of people with Shefferly, currently Colleen Shefferly created Au- over what they were paying be- hearing loss are below retirement has 100,000 dioNet America in 2008 because the fore,” Shefferly said. Participating age, Shefferly said, adding, “The retirees and auto industry wanted to improve companies choose to offer two amount of occupational noise in workers receiving hearing care while reducing costs standard digital hearing aids to the auto industry and in the envi- hearing aid benefits through the UAW and increasing access for workers workers and retirees instead of ronment has increased.” VEBA and through a and retirees. one, she said. Jay Greene: (313) 446-0325, program for active As a longtime consultant to the She expects her company will [email protected]. Twitter: @jay- GM employees and UAW, Shefferly knew the union double over the next two years be- bgreene dependents. sought to lower costs and was look- LARRY PEPLIN ing for hearing aid providers that could meet the requirements of a collective bargaining agreement. “No one was out there that could do that,” she said. “As a result, I created an entire managed care company for hearing aids.” AudioNet’s first contract was in July 2008 with UAW retirees at Ford How Beaumont doctors are saving the lives Motor Co. The contract was assumed in January 2010 by the UAW Retiree of patients they will never meet. Medical Benefits Trust commonly re- ferred to as a Voluntary Employees’ Beneficiary Association. “We had no intent to go outside of autoworkers. We started realiz- ing we were unique and had a It took months of painstaking product corporations would be in- detective work by a team of terested in,” Shefferly said. Beaumont epidemiologists led by Jeffrey Band, M.D. “ As baby boomers have They uncovered a bacteria increased and in ultrasound gel causing technology in the life-threatening infections in critically ill patients. A workplace increases, discovery that led to a more people need national recall enhancing hearing aids and patient safety. Not just at suffer from hearing Beaumont but everywhere. loss. ” That’s why Dr. Jeffrey Band Colleen Shefferly, AudioNet and his team are our heroes.

AudioNet currently has 100,000 retirees and active-duty members receiving benefits through the UAW VEBA and the program en- acted last July for active General Motors Co. employees and their de- pendents, Shefferly said. By Jan. 1, AudioNet’s network will be available for active Ford and Chrysler Group LLC workers repre- sented by the UAW, Shefferly said. “We hope to add GM and Chrysler retirees sometime,” she said. “We are also talking with local and national health insurers to add AudioNet as the network manager for their existing hearing benefits.” Under the hearing aid benefit program, Shefferly said, Au- dioNet’s national provider net- work offers annual hearing assess- ments by 4,500 audiologists for a Jeffrey Band, M.D. is the flat fee. Two hearing aids are of- fered every three years. Chair of Epidemiology at “Hearing used to be a small item Beaumont Health System and in the overall health care benefit recipient of the 2013 Crain’s program,” Shefferly said. “But as baby boomers have increased and Healthcare Hero “Advancement technology in the workplace in- in Healthcare” award. creases, more people need hearing aids and suffer from hearing loss.” 20130812-NEWS--0014-NAT-CCI-CD_-- 8/9/2013 11:10 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS August 12, 2013 Health Care WINNER: CORPORATE ACHIEVEMENT IN HEALTH CARE Beaumont team found source of life-threatening infection

Jeffrey Band, M.D. brief three weeks to complete the Health system chairman, investigation. epidemiology and Culture tests on the gels came international medicine back positive for pseudomonas Beaumont Health System and were confirmed by DNA fin- Royal Oak gerprinting to be the strain found in patients. “The unopened gels had the An unusually high number of same DNA molecular type” as patients were becoming ill with a found in the patients, thereby pro- mysterious infection after under- viding a link to the manufacturer going cardiovascular surgery in of the gel, he said. December 2011 at Beaumont Hospi- Band already had alerted the tal in Royal Oak. CDC, Michigan Department of Com- Beaumont’s infection control munity Health and U.S. Food and Drug team, under Jeffrey Band, M.D., Administration. Warnings were identified a fivefold increase in pa- quickly posted on the CDC’s Mor- tients testing positive for pseu- tality and Morbidity Weekly Re- domonas aeruginosa, which can port — the “bible for chiefs like cause pneumonia and urinary tract me,” Band said. and blood infections. The FDA shut down the gel man- So far, 16 patients had become ufacturing plant in April 2012 and sick. issued its own safety warning not What was the source of the infec- to use the product. The plant re- tion? No one had a clue. mains closed, Band said. Band, a former investigator and “I have tremendous pride and head of the special pathogens satisfaction that we were the only branch at the federal Centers for Dis- institution (in the U.S.) that identi- ease Control and Prevention, chal- lenged his personally recruited 15- fied this as a problem,” Band said. member team to solve the mystery “This is because of the way we con- JOHN SOBCZAK duct our comprehensive surveil- before more patients became sick or Jeffrey Band and his team at Beaumont tracked the source of a life-threatening infection to a brand of ultrasound gel. worse. lance. Band, who has led Beaumont’s and becoming a medical detective post-operative unit, and all had un- “We found the longer the probe “In getting this removed, it really epidemiology department since was a natural to me,” said Band, a dergone cardiovascular surgery. was in place, the more the chance did result in saving many patients’ 1983, earlier in his career had Detroit native who received his The infected patients also had a of infection,” Band said. lives, because if you do develop helped solve the mysterious Le- medical degree in 1973 from the Uni- procedure performed during sur- But tests showed all ultrasound pneumonia from (the pseu- gionnaire’s disease in 1976 and in versity of Michigan Medical School. gery called an intraoperative trans- devices were negative for domonas), it is a life-threatening 1981 won a commendation medal Band’s team, which includes in- esophageal echocardiogram. The pseudomonas. It had to be the ul- event with a very high morbidity for his groundbreaking work in fectious-disease specialist Paul procedure consists of inserting an trasound gel, he concluded. and mortality rate.” identifying toxic shock syndrome Chittick, M.D., quickly determined ultrasound probe into a patient’s “We got rid of all the gels, and al- Jay Greene: (313) 446-0325, in menstruating women. that all patients had respiratory throat and esophagus, creating an most immediately we had no cas- [email protected]. Twitter: @jay- “The process of problem-solving tract infections, all were in the same image of the heart for the surgeon. es,” said Band, noting that it took a bgreene

WINNER: ALLIED HEALTH Model of care for pre-hospice patients finds success

Dottie Deremo for hospice care. and the end of last year, @HOMe President and CEO Those services included regular Support provided services for an physical, emotional and social sup- average of 150 patients per day and Hospice of Michigan port to the family caregiver during 270 by the end of the year. Detroit the day, round-the-clock tele-sup- Its wraparound services de- port with a nurse, care coordina- creased ER visits for that popula- When Dottie Deremo joined De- tion and at-home crisis care. tion by 9 percent during that eight- troit-based Hospice of Michigan as The idea was to improve the pa- month period, hospital admissions its top executive 15 years ago, she tients’ quality of life, while cutting by 33 percent, hospital readmis- was tasked with meshing the oper- costs by minimizing the time they sions by 57 percent, and it hit all of ations of the 10 hospices that had spent in emergency rooms or hos- its quality markers. merged to create the organization. pitals and rehabilitation or long- Its overall patient and family sat- She set to work establishing a term care units. isfaction was 4.86 on a 5 scale, Dere- single standard of quality care, Hospice of Michigan’s testing mo said. And it spurred $3.5 million just-in-time pharmaceutical deliv- led it to launch a wholly owned in related savings for Michigan Pio- ery and inventory systems and an subsidiary, @HOMe Support. neer ACO, reducing health care online university to educate hos- Its clients include Genesys ACO, costs by 30 percent or more for that pice staff. Blue Cross Blue Shield of Michigan, 5 percent cohort of patients. She also put in place a common Blue Care Network, Health Alliance @HOMe Support makes revenue ARA HOWRANI Dottie Deremo’s list of accomplishments at Hospice of Michigan include an electronic medical record system Plan, HealthPlus of Michigan and De- based on the cost savings per pa- electronic medical record system, a subsidiary for pre-hospice care, and an app for the hospices, a decade before troit Medical Center’s Michigan Pio- tient when compared to the pa- that alerts family members when a nurse, doctor or staffer visits a client. federal health care reform tied fi- neer ACO. tient’s costs the 12 months before nancial incentives to adoption of The concept of providing wrap- services began. believes is a first: a mobile applica- comes more ill. the systems. around services to pre-hospice, se- Hospice of Michigan began of- tion called “HOM Cares,” which Hospice of Michigan plans to li- Under her direction, Hospice of riously ill patients is paying off. fering a franchise-like option for sends alerts to a client’s family cense the app nationally, likely Michigan developed its own re- One example: Hospice of Michi- @Home Support in November and members when a nurse, doctor or this fall, Deremo said, providing source and education center to pro- gan mined Michigan Pioneer today is talking with 54 home care- other staffer visits that client. not only a new revenue stream to vide education and research and to ACO’s raw claims data to find the 5 givers, health systems and health The alert includes the staff support its mission, “but more im- test innovations in end-of-life care. percent of its Medicare population plans and hospices from around member’s name and a little back- portantly ... a way of connecting In 2001, Hospice of Michigan be- that was accounting for half of its the country who are interested in ground on them, along with the families that are spread across the gan testing a model that provided total Medicare costs, Deremo said. delivering services according to date, duration and reason for their country.” wraparound services to seriously It began providing services to its model, Deremo said. visit with a client, information Sherri Welch: (313) 446-1694, ill people who had 18-24 months the first patient from that 5 percent Under her direction, Hospice of about the caregiving process and [email protected]. Twitter: @sher- left to live but were not yet eligible group in April 2012. Between then Michigan also developed what it what to expect as the patient be- riwelch 1 DBpageAD_DBpageAD.qxd 8/5/2013 10:43 AM Page 1

355 BCBSM* PCMH Designated Physicians

Thank you for your commitment and dedication to improving health care delivery and patient care quality.

Marie Abiragi, MD Stephen Driker, MD Ehud Kapen, MD Gregory Montpetit, MD Carl Sarnacki, MD Nelia Afonso, MD Janet Dubeck, MD Bridget Karle, MD Donald Moore, MD Micah Scharer, DO Kevin Agrest, DO Elizabeth Dubina, MD Christine Karle, DO Craig Mueller, MD Steven Schlabach, DO Dennis Ainhorn, MD Erin Duchan, MD Carl Karoub, MD Elie Mulhem, MD Daniel Schnaar, MD Nancy Ajemian, MD Amy Dunn, MD Frederick Karoub, MD Peter Muller, MD Thomas Schnur, MD Roger Ajluni, MD Jay Eastman, MD Stacey Kastl, MD Alina Murariu-Dobrin, MD Siegfried Schweighofer, MD Zulekha Ali, MD Brandy Eberhardt, DO Lakshmi Kaza, MD Beth Nadis, MD Niraj Shah, MD Mark Alrais, MD Margaret Eckel, DO Lucia Kemennu, MD Manhal Naoumi, MD Kalpana Shah, MD Zeena Al-Rufaie, MD Derek Einhorn, MD Colleen Kennedy, DO Keisha Nelson, MD Lalit Shah, MD Hannan Alsahlani, DO Luke Elliott, MD Dana Kerges, MD Michael Nichols, MD Rita Sharma, MD Robert Amsler, DO Rhonda Elton, MD Urmilla Khilanani, MD Carolyn Nine, MD Wissam Shaya, MD Momtaz Anar, MD Aimee Espinosa, MD Shree Kilaru, DO Kathleen Norton, MD Teri Shermetaro, DO Steven Antone, MD Rolando Estupigan, DO Paula Kim, MD Kevin Nurmi, MD Christa Shilling, MD Marc Arens, DO Matthew Ewald, MD Xandrea Kirtley, MD David Obudzinski, MD Nidhi Shishu, MD George Artzberger, DO Seth Faber, MD Lisa Klein, MD Andrew Oleszkowicz, MD Michael Simpson, MD Sami Asmar, MD Samuel Fawaz, MD Jeffrey Klein, MD Reginald O’Neal, DO Mark Sinkoff, MD Ryan Barish, MD Florante Fermil, MD Walter Klimkowski, MD Anna Maria Oniciu, MD Joseph Skoney, MD Bradley Barnes, MD Lori Finn, MD James Kohlenberg, MD Silvia Operti-Considine, MD Katherine Sloan, DO Thomas Barriger, MD Jeffrey Fisher, MD Karl Kolbe, MD Kelly Ortwine, MD Jami Small, MD James Bauer, MD Laurie Fisher, MD Myra Kolin, MD Mary O’Shea, MD Kamilia Snyder, MD Larry Baylis, DO Sumit Fogla, MD Marcus Koss, MD Neethi Patel, DO Prakash Soares, MD Harjaneet Bedi, MD Jenny Folcik-Gerken, MD Steven Kotsonis, DO Parag Patel, MD Lisa Speck, MD Muna Beeai, MD Kumudinie Fonseka, MD Kimberly Koval, MD Prameela Patel, MD Daniel Stachelski, MD Susan Bellefleur, MD Seth Forman, MD Jeffrey Kraft, DO Zoy Patouhas, MD Mary Steele, MD Ronald Bellisario, MD Neil Fraser, MD Anna Kulczycki-Mittag, MD Lowell Paul, MD Paul Steffan, MD Stacey Beltz, DO Brent Fuller, MD Kenneth Kulik, MD David Pawlowski, DO Stuart Stoller, DO Thomas Bering, MD Mala Gaind, MD Susan Lagrou, MD Renee Paye, MD Anna Strumba, MD Lalitha Bhogineni, MD Stephanie Galdes, DO Deborah Lambrecht, MD Nicole Peltz, DO Jennifer Supol, DO Michelle Biddinger, MD Denise Gavorin, DO Gary Langnas, DO Suzanne Peplinski, DO Ramkrishna Surendran, MD Bret Bielawski, DO Mara Geiger, MD Zinaida Laska-Sobol, MD Ratnavali Perla, MD Bindu Suresh, MD Herminia Bierema, MD Sharon Geimer, MD Jonathan Lauter, MD Sasenarine Persaud, MD Mary Sue Sylwestrzak, MD John Blanchard, MD Habib Gennaoui, MD Carrie Leff, DO Susan Pikal, MD Shawn Syron, MD Marshall Blondy, MD Vasilios Gikas, DO Danielle Leskie, MD Susanna Pinelis, MD Jason Talbert, MD George Blum, MD Michael Gilbert, MD Thomas Li, MD Srilakshmi Pinnamaraju, MD Theodore Tangalos, MD Robert Blum, DO Steven Glickfield, DO David Lick, MD Pamela Pirzada, DO Steven Thibault, MD Linda Bolton, MD James Golden, MD Charles Line, MD Mirjana Popovic, MD Timothy Tinetti, MD John Bonema, MD Sandra Golden, MD Katherine Ling-McGeorge, MD George Popp, MD Keith Tom, DO William Bowman, MD Umesh Gowda, MD Susan Little-Jones, MD Sangita Pradhan, MD Kien Tran, DO James Bragman, DO Glenn Gradis, DO Karen Lockwood, MD Julie Price, MD Michael Treblin, MD Joel Buchanan, MD Steven Grant, MD Michael Lumberg, MD Jennifer Prohow, DO Jennifer Tucciarone, MD Anne Butry-Bluj, MD Anna Groebe, DO Denise Mackey, MD Jeffrey Provizer, DO William Tuuri, MD Raymond Buzenski, MD Amber Gruber, DO Andrew Madak, DO J Patrick Quigley, MD Rachael Ustruck, DO Annetta Byrne, MD Tristan Guevara, DO Michael Maddens, MD Michael Raad, DO Anuradha Vempati, MD John Byrne, MD Ceres Guzman-Morales, MD Nicole Mahoney, MD Sumitra Raam, MD Salvatore Ventimiglia, MD John Calado, DO Corey Haber, DO Vikram Mali, MD Jennifer Raffin, MD John Vollmer, MD David Calton, MD John Habicht, MD Nancy Mannisto, MD S Bhimsen Rao, MD Jennifer Wang, MD Sumner Camisa, MD Todd Hachigian, MD Michael Margolis, MD Aya Rifai, MD Ping Wang, MD Alan Carbajo, Sr, MD Jennifer Haener, DO Steven Margolis, MD Trevor Ripley, MD LoriAnn Washe, MD Maria Cardozo, MD Lisa Hall, MD George Maristela, MD Aleida Rivera, MD Rebecca Wasvary, MD Tamara Carlin, MD Jeffrey Haller, MD Norman Markowitz, MD Nabil Rizk, MD Rebecca Wegner, MD Avinash Chawla, MD Nada Hana, MD Nicolas Marsheh, MD William Rizzo, MD Richard Weiermiller, Jr, MD Saif Cheema, MD Wafaa Hanna, MD Frank Martilotti, MD Jeffrey Rochlen, MD Lee Weinstein, MD Keith Christmon, MD Majda Hannish, MD Lillian Marzouq, MD David Rodgers, MD Marc Weisman, DO Sarah Clune, DO Charles Hartley, MD Tamer Massarani, MD Peter Rodin, DO Christopher Wilhelm, MD Jennifer Cohen, MD Kristen Herman, MD Joseph Masternick, DO Kathleen Rollinger, DO Michael Williams, MD Kimberlee Coleman, MD Charles Heth, DO Ami Mavani, MD Suzanne Romadan, MD Stephen Williams, MD Erin Considine, MD Jennifer Hichme, MD Steven McClelland, MD Robert Roman, MD Sarah Wilson, MD Richard Cooke, MD Donna Hoban, MD Keith McKenzie, MD James Rosbolt, DO Leanne Wisniewski, DO Jonathan Copeland, MD Stephen Hoerler, MD Sharon McManus, DO Arthur Rose, MD Stacey Wittenberg, MD Genevieve Crandall, MD Gary Hollander, DO Sheila Meftah, MD Daniel Rosenberg, MD Kenneth Wolok, DO Nancy Crossley, MD David Hug, MD Abdel-Wahab Meri, MD Herbert Roth, Sr, MD Maria Wozniak, MD Kim Dang-Schlabach, DO Russell Hug, MD Demetrios Mermiges, MD Marlene Roth, MD Kwan Yee, MD Renda Dawud, MD Robin Hugen, MD Bradford Merrelli, MD Ronald Rothenberg, DO Joyce Yeghissian, DO Jeffrey Deitch, DO Neil Jaddou, MD Leia Meyers, MD Sulafa Roumayah-Elia, MD Cordell Yoder, MD Ernestina Delos Santos Mac, MD J Mark Joliat, MD Kenneth Meyers, DO Fiona Rubenstein, MD Amy Youn, MD Mark Deprez, MD Johnathan Joliat, MD Christopher Milback, MD Veena Sabharwal, MD Ghazala Zafar, MD Michael Dionne, MD Elizabeth Joslin, MD Beth Miral, MD Bradley Sabin, MD Alan Zakaria, DO John Dorsey, MD Jyothi Kadambi, MD Paul Misch, MD Neda Saker, MD Nahed Zakaria, MD Hina Doshi, MD Melinda Kakish, MD Jay Mitchell, MD Camelia Salanta, MD Megan Zawaideh, DO Jaime Dreyer-Laezza, MD Norman Kakos, MD Pratibha Modi, MD Robin Samyn, MD Shoshan Zolo, MD Jennifer Driker, MD, MPH Hanit Kalo, MD Syed Mohiuddin, MD Jay Sandberg, DO Erik Zuckerberg, MD

Congratulations on earning this designation and your outstanding performance!

* Blue Cross ® Blue Shield ® of Michigan is a nonprofit corporation and an independent licensee of the Blue Cross and Blue Shield Association. 20130812-NEWS--0016-NAT-CCI-CD_-- 8/9/2013 11:12 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS August 12, 2013 Health Care Just three of the reasons WINNER: TRUSTEE to book our bus.

MIKE DONNA MITCH Driver Customer Service Mechanic St. John trustee’s biggest challenge: You’ll love this Our girl Friday (... and If it ain’t broke, he’ll man in uniform. every other day, too!) check it anyway.y y Merger that formed Ascension Health Sister Xavier Balance Board member on the continuum-of- care and quality committees, St. John Providence Health System, Warren After 56 years as a member of the Daughters of Charity congregation, a hospital administrator, a board chairman and a trustee, Sister Xavier Balance still works 40-hour weeks and has an office at St. John Providence Hospital in Southfield. Known for her sense of justice and sense of humor, Balance has

been a lifelong advocate for the LARRY PEPLIN poor and vulnerable. She helped Sister Xavier Balance’s many years of experience as a nurse and hospital build Providence’s community out- administrator has proven beneficial in her helping improve patient care at St. reach and was an early proponent John Providence Health System. and key driver in helping found cension Health. Ascension now op- of St. John’s quality committee and Providence Park Hospital in Novi. erates 113 hospitals in 22 states, in- 15-member continuum-of-care “I was president of Providence cluding 12 in Michigan. board. Her experience as a nurse Hospital from 1975 to 1986, and we “It was an interesting experience and hospital administrator has saw population beginning to move to merge two cultures,” said Bal- proved valuable to helping the sys- out to South Lyon and Novi,” Bal- ance, who at the time was vice tem improve patient care across all ance said. “Our team was very en- chairman of the Daughters of Char- settings. t NEWNEW MODELMODEL COACHESCOOACCHES trepreneurial, and we began stak- ity system. “The only place where “We need to improve care after t
FREE WIFI t
24/7 DISPATCH ing out the hospital site in the 1980s. the two cultures met was in South- patients leave us (at the hospital) t
ECO-FRIENDLY “We started out with three trail- east Michigan when Providence and they are taken care of in the ers in Novi.” Hospital and St. John Hospital ambulatory, home health and hos- t
EXPERT BOOKING CONSULTANTS In 2008, St. John Providence Health AFFORDABLE RATES merged” into one system. One of pice” settings, said Balance, who t
System opened the $229 million, her most gratifying assignments as now is a special adviser to Michael 100-bed Providence Park Hospital. a trustee has been the continuing Wiemann, president of Providence Balance’s biggest challenge as a oversight of St. John Providence, Hospital and executive vice presi- trustee came in 1999 when the the five-hospital system. dent of the western region of St. indiantrails.com 800-292-3831 Daughters of Charity National Health “We (Providence Hospital) were John Providence. System merged with the Sisters of the flagship in the east region of “Our bigger plan is to organize St. Joseph Health System to form As- the Daughters. It was extremely our system in a network fashion,” hard to come together because Balance said. “We can’t treat pa- most of the leadership for the new tients in silos anymore. We are in system came out of the old St. John the population health business Hospital,” she said. “We felt disen- now. We are in the process of de- franchised and left out. veloping this, keeping patients “It has been a journey to create well and out of the hospital.” system-ness, and there is still Jay Greene: (313) 446-0325, some angst there.” [email protected]. Twitter: @jay- Currently, Balance is a member bgreene

HONORABLE MENTION: TRUSTEE What would a true hero do? Jack Billi more local problem-solving and de- Founder cision-making,” he said. “More and more, leaders realize they Center for Healthcare Research & Transformation shouldn’t just jump to solutions. More often, I hear them asking Put the mission and Ann Arbor what we know about the problem Seven years ago, Jack Billi led and its root causes. This is a huge the people first. the creation of the Ann Arbor- and positive shift.” based Center for Billi also leads UM’s Michigan Healthcare Re- Quality System, which has trained Congratulations to Dottie Deremo, one of search & Transfor- more than 4,000 nurses, physicians mation, which and staff members in “lean think- Detroit’s Healthcare Heroes. aims to improve ing” — an approach that focuses health care de- on identifying and removing barri- livery to Michi- Congratulations to Dottie Deremo, president and CEO of Hospice of Michigan, ers to delivering efficient care. gan residents. “Although lean thinking was for being honored as one of Crain’s 2013 Healthcare Heroes. Billi has made famous in other industries, Dottie knows that it’s the mission that matters. served as either we desperately need this form of chairman or And the people who deliver on the mission. Billi root-cause scientific problem-solv- And the people whose lives are made better because of the mission. vice chairman ing in health care,” he said. of the board since the founding of Billi said that mindset helped re- We are proud of what we do at Hospice of Michigan, the center, a research and policy duce the length of stay and short- and we are proud of our leader. partnership between the University ened the time to angioplasty for of Michigan Health System and Blue heart attack patients. Cross Blue Shield of Michigan. Billi also is on the board of the After working for the UM Michigan State Medical Society, Health System for 36 years, Billi Washtenaw County Medical Society, has seen a change in leadership Michigan Quality Improvement Con- philosophy. sortium and Greater Detroit Area “There is less ‘the leader has all Health Council. 888-247-5701 | www.hom.org the right answers’ mindset and — Ross Benes 20130812-NEWS--0017-NAT-CCI-CD_-- 8/8/2013 3:51 PM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 17 Health Care Blue Cross touts $155 million in Need a savings with medical home project New Bank?

BY JAY GREENE for children by 12.2 percent. CRAIN’S DETROIT BUSINESS Aside from financial gains, Blue We always had Cross continued to document high- David Share, M.D., senior vice “ er quality scores within the prac- president of value partnerships at some tices but also compared with non- Blue Cross Blue Shield of Michigan, medical home physician groups. has been shepherding the Blues’ data that Last year, Blue Cross found patient-centered medical home higher quality scores in a number project during its five years of ex- medical of other areas. istence. homes are In comparing medical home-des- With more than 3,000 physicians ignated doctors with nondesignat- and 994 groups participating in working, ed doctors within Blue Cross’ Michigan, Share has slowly seen Physician Group Incentive Pro- physicians move from skepticism but now gram, medical home doctors in to acceptance and advocacy, to pa- 2012-2013 have: tient care improvements and now we have strong A 19.1 percent lower rate of to real cost savings. adult hospital discharges for cer- Let ours compete for “We always had some data that evidence. tain “ambulatory care sensitive” medical homes are working, but ” conditions that include gastroen- your business. now we have strong evidence” of David Share, Blue Cross Blue Shield teritis, angina, pneumonia, asth- cost and quality savings, Share said. ma, congestive heart failure, hy- Loan amounts: $1,000,000.00 and above. During the first three years of pertension and diabetes. disease management and patients’ s Investment Real Estate s Accounts Receivable the program, Blue Cross has docu- Medical home physicians help personal health goals. s Owner Occupied Real Estate s Equipment mented $155 million in savings by patients avoid admissions by Using University of Michigan re- s Lines of Credit s Bank Workouts avoiding hospital admissions and evening appointments, weekend searchers, the Blue Cross study is readmissions, emergency depart- and same-day appointments. ment visits, and through increased the first major look at the financial An 8.8 percent lower rate of generic drug use and less reliance savings from the use of patient- adult emergency department visits. on expensive radiologic studies, centered medical homes by prima- A 7.3 percent lower rate of according to a study in the July 5 ry care physicians. Blue Cross adult high-tech radiology usage Health Services Research Journal. sponsors the nation’s largest pa- than other non-designated prima- Share said preliminary data tient home project. ry care physicians. show that the medical home project “The problem with the past stud- 800.509.3552 For children under age 17, a saved $155 million in 2012 alone, in- ies, which have been much smaller www.eclipsecapitalgroup.com 17.7 percent lower rate of ER visits. creasing the savings to $310 mil- in scale, is they aren’t as robust as 2207 Orchard Lake Road, West Bloomfield, MI 48320 lion. Some 2 million patients are ours,” Share said. “We have spent Jay Greene: (313) 446-0325, “Since 1997” participating through their prima- quite a few years in helping these [email protected]. Twitter: @jay- ry care physicians, Blue Cross said. practices implement these homes. bgreene Each year, said Share, as physi- It takes time to see the effects.” cians added preventive and evalu- Share said physicians might put ative services and became more a medical home component in sophisticated in monitoring and place — a disease registry or engaging patients, savings have evening hour appointments — and increased. the results might not appear until For example, savings totaled the second year. $14.9 million from July 2008 to July “Our study has shown steady 2009, $47.3 million in July 2009- improvement from year to year. WE CAN HELP July 2010 and $92.9 million from Physicians, nurses and staff need July 2010 to July 2011, the study time to ingrain them into the prac- found. For adults, the monthly sav- tices,” he said. ings amounted to $26.37 of medical While medical homes reduced YOUR BUSINESS SAVE costs per member. costs dramatically for adult pa- A patient-centered medical tients, Share said, there was no home is a physician-office care change in costs for pediatric pa- ENERGY AND MONEY. team, led by a primary care physi- tients. cian, that coordinates care across Overall, however, medical homes all settings, focusing on wellness, increased preventive quality scores Start saving today!

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The following are selected fil- Decisions business can be more energy-efficient. ings from the month of June. William Beaumont Hospital, Letters of intent Royal Oak: Construct four-story Shelby Crossing Health Campus, north pavilion emergency depart- Shelby Township: Lease nursing ment; $140 million. Approved. home facility for 10 years with two Oakland Health Campus, Novi: renewable five-year extensions; Build single-story 60-bed nursing $16.3 million. home facility; $4.7 million. Denied. Executive Ambulatory Surgical Applications received Center, Dearborn: Renovating free- St. Joseph’s Healthcare Center, standing surgical outpatient facili- Hamtramck: Acquire 27 beds ty; $6 million. Approved. from St. Anne’s Convalescent Cen- ter and enter new lease for initial United Diagnostics, Rochester five-year term with five five-year Hills: Host new mobile CT scanner renewal options for a total of 30 network for five-year agreement; years; $29.6 million. $5.6 million. Approved. Select Specialty Hospital-Downriv- Harbor Oaks Hospital, New Bal- er, Taylor: Began operations of 35- timore: Add 12 adult psychiatric bed long-term acute care hospital beds to current campus; $1.9 mil- that will be hosted within Henry Ford lion. Approved. Wyandotte Hospital; $8.7 million. — Ross Benes DBpageAD_DBpageAD.qxd 8/5/2013 11:04 AM Page 1

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August 12, 2013 CRAIN’S DETROIT BUSINESS Page 19

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Detroit’s loss was Three Rivers’ gain Rising Tiny Three Rivers, south of Kalamazoo, is enjoying a boom from the expansion of its American Axle & Manufacturing Holdings Inc. plant: $100 million from the and 500 more jobs by the end of this year, on top of more than $50 million and 300 jobs in 2012. The Dauch investments solidify American Axle’s status as the largest employer ashes in St. Joseph County, population 61,000. The investments also validate the 2008 vote by members of the plant’s UAW local to accept Businesses sprout concessions American Axle said it needed to compete globally. to recycle wood from Other locals rejected the concessions. Those plants are now closed; American Axle plans to raze trees killed by its shuttered complex in Detroit and Hamtramck. Dick Dauch — the guy most emerald ash borer responsible for creating American Axle and leading it through the downturn and closing those plants — died Aug. 2, just hours after making one last journey to the Detroit headquarters for a board of directors meeting. He was diagnosed with pancreatic cancer soon after the board appointed his son David CEO last September. This wall at Rockford Construction in Grand Dauch’s passing led Crain’s to do Rapids is made from the wood of ash trees that were killed by the emerald ash borer. something we have never done before: A tree recycling program saved them from We turned off the ability to post becoming a pile of wood chips. comments on our online story of his passing. The vitriol of former employees PHOTO COURTESY OF ROCKFORD CONSTRUCTION CO. INC. from the now-shuttered plants was off the charts. And inexcusable. A public Facebook page was even worse. BY MATTHEW GRYCZAN it also may be bringing a big gang to the party. But he had a couple of defenders: CRAIN’S MICHIGAN BUSINESS Kent and nearby Ottawa, Allegan and “Who MADE you work for him?” asked Muskegon counties have 272 companies in the one. “I applied for his company; he nside the new headquarters of Rockford forest products industry, compared with didn’t come looking for me.” Construction Co. Inc. in Grand Rapids, a about 361 companies in Wayne, Oakland, Ma- Dauch followed a path to save the wall of beautifully stained and carefully comb and Washtenaw counties, according to a Michigan Department of Natural Resources direc- company he co-founded. Ironically, the arranged ash planks curves gracefully concessions came just a few months tory. And those companies are learning how before General Motors Co. and Chrysler and rises three stories to the ceiling, fill- to prosper from the sale of rescued wood. Group LLC would seek two-tier wage ing the building’s atrium with warmth. structures coming out of bankruptcy. It represents tree recycling, or Why chop more? Last week, hundreds of people stood “treecycling,” at its best, as the ash JON BROUWER as long as two hours at a Royal Oak Hypermarket giant Meijer Inc. is gearing up a trees used to make the wall were killed Emerald ash borers leave these trails of funeral home to pay respects to larger demonstration of what can happen when prematurely by the emerald ash borer destruction just under the bark of ash trees, Dauch’s widow, Sandy, and the the skills of several companies converge. in Kent County and were destined to be where they girdle the layer that transports couple’s adult children. Hundreds nutrients between leaves and roots. In renovating its Walker headquarters, attended the service, including ground into chips for burial in dumps. Meijer has ordered five times the amount of luminaries such as Mitch Daniels, ex- Instead, a supply chain of small busi- on the urban harvesting of trees. rescued ash lumber that Rockford Construc- Indiana governor and now president of nesses within a 25-mile radius of Grand “California does this extensively, but what tion used in its 4,500-square-foot atrium wall Dauch’s alma mater, Purdue Rapids rescued the logs from what is lacking in California that exists in Michi- and flooring. Rockford carpenters who came University, where Dauch played football would have been an ignominious end. gan and what makes Michigan unique is or- up with a way to form the radius of the wall, and studied industrial management. Conservation advocates nationwide cite ganization. The businesses in California sim- and stain and arrange wood in a pattern that Dauch had always been a vocal Michigan as a leading example of how prof- ply don’t know about one another.” appears random, now will turn their atten- champion of keeping manufacturing in Iitable businesses can be built on the rescue of Because the emerald ash borer — the worst tion to the Meijer project. the United States. But he could not trees in urban settings that need to be removed destructive forest pest ever seen in North Flush with success in supplying Rockford control national industrial policy — or because of disease, infestation, storm damage America — was first discovered in metro De- and Meijer, TonTin Lumber Co. in Grand lack of it. Nor could he control fair or interference with construction. troit and Windsor in 2002, Southeast Michi- Rapids will build a saw that can handle logs trade policies around the globe. “Michigan is at the head of the line in ur- gan led the charge in developing market- larger than 5 feet in diameter that are har- But he could control where the ban harvesting,” said Sam Sherrill, an au- places for rescued lumber and a supply vested in urban settings. company invested. And that’s good thor and advocate who has organized confer- network of sawmills, kilns and lumber mills. news for Three Rivers. ences in San Francisco and Asheville, N.C., Although West Michigan may be a bit late, See Ash, Page 20 20130812-NEWS--0020,0021,0022-NAT-CCI-CD_-- 8/8/2013 3:53 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS August 12, 2013 CRAIN’S MICHIGAN BUSINESS Advertisement

THE MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY GUIDE TO ENJOYING THE 2013 CRAIN’S HOUSE PARTY EVENTS IN DETROIT & GRAND RAPIDS

The term “placemaking” did not exist when the Michigan State Housing Development Authority (MSHDA) partnered with Crain’s Detroit Business newspaper in 2006 to launch the inaugural Detroit House Party. Today, placemaking is commonly employed in mainstream media to recognize a trend that MSHDA and Crain’s understood early on. Knowledge workers, entrepreneurs and the creatively talented increasingly want to live in urban settings that foster innovation

and share a sense of place – with amazing architecture, historic homes and buildings PHOTOS BY JON BROUWER renovated to meet the lifestyle needs of the 21st century, walkable neighborhoods with Owner Daryl Weaver (right) and Nick Kaleefey of TonTin Lumber Co. stand by a nearby parks, and diverse cultural, dining and entertainment amenities. truckload of ash wood that they cut and is off to be kiln-dried. The 2013 Crain’s House Party events in Grand Rapids on Aug. 28 and Detroit on Sept. 26 now represent Michigan’s premiere placemaking showcases. Ash: Businesses rising From Midtown to Corktown to Downtown in Detroit, and from Heritage Hill to the ■ From Page 19 “Medical Mile” to the Eastown neighborhood in Grand Rapids, MSHDA and Crain’s “We’ll be working on it this win- sources specialist with the South- have combined with civic leaders in both communities to offer a stunning display ter, and it will be big enough to cut east Michigan Resource Conservation again this year of historic homes, lofts, condominiums and apartments. slabs that can be used for entire and Development Council in Ann Ar- tabletops,” said TonTin’s owner, bor. “It’s taking trees that were cut Maximize your experience by considering Daryl Weaver. “Ash is stunningly out for another reason — trees that these three House Party tips: beautiful wood and a real viable were thought of as waste — and product. finding ways for those trees to be 1. Discover What’s New “I couldn’t stand to see that kind used at their highest added value.” of wood go to waste. And now we Urban logging always will be a In Grand Rapids, check out the $17 million Baker Lofts do all species of wood that are cut niche opportunity in Michigan for project. Due to be completed in 2013, the project was in the city: elm, oak, maple, walnut small businesses because of vari- named for one of several furniture manufacturers that as well as ash.” ous factors. Trees growing in a That kind of talk thrills Jessica community are not groomed for occupied the 125,000-square-foot building during Grand Rapids’ heyday as the Simons. the large-scale harvesting that for- Furniture Capital. The renovated furniture factory boasts wood-beamed spaces “This being Michigan, people est product giants such as Weyer- with 11-foot ceilings and exposed brick walls that will be preserved for the loft-style tend to think of forests as something haeuser Co. and Potlatch Corp. prac- one- and two-bedroom apartments. A courtyard that was filled with a boiler building being up north — tice in northern Michigan. Rather, forestry is a busi- they spread out throughout city and abandoned wood kilns is being transformed into a garden. The project also ness that hap- streets in places that may make will include 15,000 square feet of retail space for restaurants and pens up north,” them hard to reach. shops and is near the new Grand Rapids Marketplace. said Simons, a Quantities of trees that can be consultant who harvested in cities are unpre- 2. Rediscover Greatness helped organize dictable, and the trees themselves the Urbanwood can be studded with nails from In Detroit, 1300 Lafayette is one of the Project for Recy- garage sale signs or even some- most significant architectural landmarks in cle Ann Arbor. “I thing as large as an ax head, said the metro area – the views of Greektown don’t think peo- Simons ple tend to think Casino, Eastern Market and Ford Field/ of themselves as living within Comerica Park at night are breathtaking – forests, yet we do. and offers a taste of New York Style Contemporary Hi-Rise Living in Motown. “What the emerald ash borer did Be sure to ask the hosts to point out Kid Rock’s new mansion on the Detroit Riverfront, was to bring a forest problem into cities and force them to acknowl- where he is known for hosting dazzling summer fireworks extravaganzas. edge that they live within forests. And that raised the question: Are 3. Bring Business Cards these trees a waste to be disposed of or a resource?” The House Parties are places to see and be seen. To help people view Southeast The tour’s festivities and afterglow receptions attract a Michigan as a hub for sustainable “who’s who” of each city’s movers and shakers, artists, forestry, the Urbanwood Project architects, developers, journalists and politicians. If you and Recycle Ann Arbor will host a Sawmill Day on Saturday in Ann don’t leave these soirees without at least six new business Arbor. or social connections, you’re not trying. MSHDA and Crain’s are proud to help promote Cities: A lumbering giant Michigan’s vision of placemaking and bring A study done by Michigan State national attention to what makes urban living University estimated that urban in Grand Rapids and Detroit special. communities throughout the state generate a total of more than 73 mil- For information about the 2013 Crain’s lion board feet of lumber from dead and dying trees annually. But even House Party events in Grand Rapids with that ready supply of trees for and Detroit, call 313-446-0300 or visit lumber, city dwellers needn’t wor- www.crainsdetroit.com. ry about lumberjacks and log skid- ders running through their neigh- borhoods anytime soon. “It is far more like recycling than it is logging,” said Simons, who also serves as a natural re- Kim Dalenburg of TonTin Lumber Co. uses a custom 20130812-NEWS--0020,0021,0022-NAT-CCI-CD_-- 8/8/2013 3:54 PM Page 2

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 21 CRAIN’S MICHIGAN BUSINESS

TonTin’s Weaver. Those metal contaminants can wreck the ex- pensive circular saw blades that What the sawmills generally use. “ TonTin got around the problem emerald ash borer by using inexpensive band saw blades in its sawing operation of did was to bring a butt logs — basically the trunk of the tree before it extends its limbs. forest problem into TonTin, established in 1983, em- ploys a dozen people primarily as a cities and force them provider of custom millwork. It got into the business of rescuing urban to acknowledge that trees and sawing its own slabs they live within strictly by chance, Weaver said. The company holding the contract forests. with the city of Grand Rapids for ” tree removal needed a place to park Jessica Simons, Urbanwood Project its trucks, and it asked TonTin whether the vehicles could be locat- The rescued ash lumber may cost ed on its lot. only about 10 percent more than Weaver inquired about what the normally harvested ash lumber for tree service did with the butt logs, small jobs. On larger jobs, such as and the response was “grind them Rockford Construction, the materi- up and throw them in the dump.” al cost is about the same. In a barter arrangement, TonTin George Colvin Jr., a project su- now picks up the logs on location perintendent for Rockford Con- in exchange for free parking. struction, said his company was On the plus side of urban harvest- examining different ways to incor- ing, TonTin doesn’t need the gigan- porate natural wood into the head- tic equipment and workers’ com- quarters, which opened in mid- pensation insurance that forest July, and hit upon using either product companies require because rescued wood or wood reclaimed the trees are already cut and acces- from old barns or factories. sible by roadside pickup, Weaver With the rescued ash, “each said. The company processes 250- piece was individually stained to 300 logs a year. show our workmanship, then ran- domly selected to create a wall From log to lumber with character,” Colvin said. “We thought it would be a better use Cutting the logs into slabs is than them just becoming pallets.” only the first step in what can be Grand Rapids forester Tyler an involved process to get a fin- Stevenson said the city has been ished wood product. spending about $250,000 a year Hardwood tree slabs cut by Ton- since 2011 to remove ash trees, Tin are taken to a kiln where they which are prized in communities are dried for about a month until as being hardy and tolerant of the moisture content reaches less harsh street conditions such as than 6 percent, because the lumber compacted soils, salt and drought. will shrink and crack without such Ironically, they were often used as treatment. The dried slabs are then a replacement for elms killed by the cut into dimensional lumber and Dutch elm disease. milled and sanded. TonTin uses a The city has taken out about 3,600 molder machine to mill in the infested ash trees since the removal tongue and groove on the edges of program was launched in 2007, and planks destined for work such as about 6,600 ash trees still remain on Rockford Construction’s headquar- ters. See Ash, Page 22

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www.itctransco.com es a custom-built saw to square an ash log at the Grand Rapids plant. 20130812-NEWS--0020,0021,0022-NAT-CCI-CD_-- 8/8/2013 3:54 PM Page 3

Page 22 CRAIN’S DETROIT BUSINESS August 12, 2013 CRAIN’S MICHIGAN BUSINESS Ash: Project targets urban trees ■ From Page 21 city streets and in parks, Stevenson said. Grand Rapids chemically treated about 650 ash trees last year as part of its effort to preserve 1,400 ash trees on streets and in parks. In- secticide is injected into soil or sprayed on tree trunks annually or every other year, so treatments can be relatively expensive. Simons said the emerald ash borer — a beetle that burrows un- derneath the bark and girdles the layer of the tree that transports nutrients between roots and leaves — has killed tens of millions of ash trees in Michigan. “It has, for the most part, done its damage in Southeast Michigan and moved JON BROUWER on,” he said. The insect is now John Iden of TonTin Lumber Co. debarks planks of ash wood at the Grand Rapids found in more than 20 states and plant. parts of eastern Canada. sawmill,” she said. that commercially sold lumber “Like the elm and Dutch elm dis- “Sometimes a tree has to be cut doesn’t have. ease, this may not be the end of ash up just to be removed in the first “In addition to that value, it can trees,” Simons said. “But it’s the place, but we do love to see woods be sawn in a way that plays to its end of ash trees as we previously used at the highest and best value. grain and character in a way that a knew them.” That could be fuel for the power fungible commercial product would Even with the declining popula- plant in Flint that runs off of wood never be cut.” tion of ash, the lessons learned or mulch. Our stock policy is that For TonTin, the rescued wood about how to recycle urban trees all of those uses are good.” represents a business opportunity are useful for any species of tree. Sherrill, author of Harvesting for customers that want to preserve When the scourge of the emerald Urban Timber: A Complete Guide the West Michigan connection. ash borer appeared, the U.S. Depart- and who runs a kiln for drying ur- “When you have a business, it al- ment of Agriculture funded programs ban wood in Asheville, said busi- ways seems that you have to rein- in Southeast Michigan that eventu- nesses that trade in lumber from vent yourself,” Weaver said. “And ally spawned the Urbanwood Pro- urban settings understand that this has worked out well for us.” ject, a partnership between Recy- the wood “has a story, it has an Matthew Gryczan: (616) 916-8158, cle Ann Arbor and the Southeast origin. It has sentimental value to [email protected]. Twitter: Michigan Resource Conservation the owners or to the community @mattgryczan and Development Council in Ann Arbor. The project brought togeth- er small sawmill owners and other interested groups to collectively market wood products from re- claimed urban trees. The Urbanwood Project now has marketplaces in Ann Arbor, Flint and Haslett, near Lansing, where customers can buy a variety of woods native to Michigan. “The marketplace grew very slowly,” Simons said. “But what started off as a single shelf of lum- ber is now about 2,000 square feet of warehouse space (at Recycle Ann Arbor) with about 30 different wood species that can be found in Southeast Michigan. None of the wood came from more than a cou- ple of counties away.” Rescued wood: The kindest cut of all The Traverwood branch of the Working Capital In Action Ann Arbor Dis- trict Library made rescued We provide businesses accounts receivable and inventory financing ash wood a cen- needed to address growth opportunities and increase cash flow. terpiece of its Our experienced staff and network resources connect construction when it was entrepreneurs with the tools they need to succeed and expand. built in 2008, and other Michigan busi- Need Cash to Grow? We Have the Solution. nesses such as Urban Ashes in Ann Arbor make picture frames and oth- Ash logs milled into er home fur- these moldings. nishings from the rescued wood. Furniture designer Paul Hickman launched the company in 2008 specifically to use the wood. Simons said only a small portion of the state’s urban wood is being 248.658.1100 HennesseyCap.com recycled, but it’s a start. “There is no possible way that all of the logs are good for a 20130812-NEWS--0023-NAT-CCI-CD_-- 8/8/2013 3:55 PM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 23 The Engineering Society of Detroit CRAIN’S MICHIGAN BUSINESS Engineering & Technology Job Fair Is fly-fishing the new golf? September 9, 2013- 2 pm -7 pm | Suburban Collection Showplace, Novi LOOKING FOR A JOB? Hundreds of Opportunities; Lodge reels in business clients Major Michigan Companies; Proven Results Recognized as the premier job fair for engineers & IT professionals, BY SHANE TRITSCH Grand Rapids, books the lodge the event will provide you with: CRAIN NEWS SERVICE about three times a year to enter- tain customers and hold company • Opportunities to meet the best companies in MI When he wants to mix business sales meetings. He finds the prop- • Job openings in your field with pleasure, Grant Brown does- erty’s privacy and layout suited n’t go in for golf, that time-honored • Chance to grow your career for work and play. Visit www.esd.org today for more information or to register. lubricant for sealing deals and “I haven’t found another lodge nurturing professional ties. And that has the layout to have an inti- Brown, a financial adviser, would mate, quiet setting, no one else rather not ply his wealthy clients around, with the boardroom up over slabs of beef at a Chicago above and the ability to be down- steakhouse. stairs (in the Man Cave) and hang Instead, he likes to build busi- out as a larger group, with the ness relationships on a trout catered meals,” Rudolph said. stream, fly-fishing. “You don’t have to go very far to “If I’m going to spend money en- PHOTO COURTESY OF STEVE KUIECK get into great fishing on the river, LOOKING FOR TALENT? tertaining my clients, I’d rather it The Muskegon River Lodge, north of and the guides do a really nice job” If you have job openings and looking to recruit your next workforce, be for a day of fishing,” he said. Grand Rapids, has become a favorite — even for people who never have spot for some businesspeople to mix then consider exhibiting at ESD’s Job Fair: Besides his personal interest in fished before. the sport — he is past president of business and pleasure. Although he has shot plenty of • Draws the best pool of qualified candidates Chicago’s Elliott Donnelley Chap- guides and meals cooked on-site rounds of golf, Rudolph finds the • Showcases diverse skills and backgrounds ter of Trout Unlimited, a conserva- runs $445 per person a day for a leisurely rhythms of fishing more tion group — Brown said, “If you • Produces proven results minimum of two people. conducive to mixing work and play. spend eight hours in a boat with To exhibit, visit www.esd.org today. For more information, call The lodge is busiest from October “Golf appeals to a limited audi- someone, you’re going to get to Leslie Smith, CMP, at 248-353-0735, ext. 152 or [email protected]. to early December — when salmon ence,” he said. “Fishing there is know them, and they’re going to migrate into the river from Lake open to anybody, male or female. It get to know you. You’re going to Michigan to spawn, followed by allows us to bring anybody out know if you like each other. You’re steelhead (rainbow trout that have that wants to experience the out- going to learn about a guy’s tem- turned silvery after several years in doors, and between dinner and perament, the people he knows.” the lake and matured into big, fast, hanging out in the lodge and fish- When fishing for business, powerful, coveted game fish) — and ing together, we have a chance to Brown’s destination of choice is from March through early May, really get to know (our customers) the Muskegon River Lodge, north of when the steelhead spawn. and understand their business and Grand Rapids near the town of John Rudolph, owner of two Newaygo. Originally a private res- where we’re trying to go together.” manufacturing companies in idence, this under-the-radar lodge From Crain’s Chicago Business is built of massive white pine logs and perches on a forested ridge with views of the Muskegon River. Andy Kirkulis, owner of Chicago Fly Fishing Outfitters, said the Muskegon River Lodge is compa- rable to some of the fly-fishing lodges he has visited in Montana and other trout meccas out west. Indeed, for people accustomed to the high-end amenities of such places, he said, the lodge is the Midwest’s “premier venue for a guided fly-fishing experience with accommodations.” The lodge’s co-owner, Steve Kuieck of Grand Rapids, invested PROUD TO BE IN in the property in 2008 with his business partner, David DeVries, to complement Riverquest Charters, the fly-fishing guide service he founded in 1996. The idea was to offer an inti- mate private retreat — only single parties at a time, typically of two to 10 people, book the lodge — to Riverquest’s fishing clients. Because no staff works on the premises, guests have the run of the place. They can cook their own meals in the well-appointed kitchen or drive 10 minutes into town for DETROITWhen you’re serious about intellectual property law … food. Or, for an additional charge, they can have chefs prepare Use Brinks, now in Detroit. Brinks is a recognized national leader in gourmet breakfasts and dinners. intellectual property law. With its new Detroit Office located in the same Although anyone can book the lodge, most guests opt to go fish- building as a U.S. Patent and Trademark Office, domestic ing. Riverquest’s guides pick them and international clients can participate in on-site patent up by boat after breakfast and re- turn them after a day on the river. examination and administrative trial proceedings. In the early evening, the action usually shifts to the property’s recreational nerve center, a former Serving innovators in Michigan and beyond: three-bay garage reconstituted as Detroit Offi ce Ann Arbor Offi ce the “Man Cave.” Although women U.S. Patent Suite 1775 Suite 200 No. 129,843 are equally welcome there, it con- 300 River Place Drive 524 South Main Street tains all the accoutrements its Steam engine lubricator by Detroit, MI 48207 Ann Arbor, MI 48104 name suggests: overstuffed leather 313.393.5400 734.302.6000 furniture, a big-screen TV, a bar, Detroit inventor Elijah J. McCoy, pool and foosball tables, a dart granted in 1872. Chicago | Ann Arbor | Detroit | Indianapolis | Research Triangle Park Area | Salt Lake City | Washington, DC | www.usebrinks.com board and well-stocked humidor. A package that includes lodging, 20130812-NEWS--0024,0025-NAT-CCI-CD_-- 8/8/2013 3:56 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS August 12, 2013 CRAIN’S MICHIGAN BUSINESS Buyer sought for Titanic artifacts; one estimate: $189 million

BY MATTHEW GRYCZAN Sellers, 45, a er value by scouting for potential now by purchasing a share of PRXI, CRAIN’S MICHIGAN BUSINESS successful res- buyers and assessing what they are which traded in a range of $1.65 to taurateur and willing to pay for the one-of-a-kind $1.75 last week. Depending on the As they file past authentic bar owner in collection. value that they assign to the Titanic wreckage from one of the most Grand Rapids, Very likely candidates include artifacts, some investors said the devastating maritime disasters in has taken on the the Mariners’ Museum in Newport stock may be worth more than $4.25 history, visitors to the Titanic ex- task of finding a News, Va.; the Titanic Belfast muse- a share. But others have sold their hibit that showed at The Henry Ford buyer for about um in Northern Ireland; the Luxor positions in the stock after years of in Dearborn and is now at the 5,500 artifacts hotel in Las Vegas; or even waiting for the deal to be done. Grand Rapids Public Museum can’t brought up by wealthy individuals such as “Ti- That has a whole host of people help wondering what a dish or Sellers deep-sea expedi- tanic” movie director James — investment fund managers, ex- chandelier retrieved from that wa- tions of the Ti- Cameron or philanthropist Phil ecutives, museum curators, attor- tery grave in the North Atlantic tanic. As the unpaid chairman of Anschutz. Or it could be a combi- neys — all asking the same thing: COURTESY OF GRAND RAPIDS PUBLIC MUSEUM would be worth. A hook and pulley from the Titanic are the board of Atlanta-based Premier nation of any of the above. What is it worth? The response part of the exhibit now showing at the Mark Sellers III wonders, too. Exhibitions Inc. (Nasdaq: PRXI), part In a real sense, anyone can own a seems simple enough: It’s worth Grand Rapids Public Museum. Only it’s more than idle curiosity. of his job is to maximize sharehold- tiny piece of the Titanic collection what someone is willing to pay. “I think one of the caveats of all of this is the scientific and histori- cal value of the Titanic assets,” said Chris DeMuth Jr., the founder and portfolio manager of Rangeley Capital Partners in New Canaan, Conn., who visited Sellers in Grand Rapids to make an evalua- tion of PRXI stock as an invest- ment. “That’s not my area of ex- pertise, but I believe that people in that area would say that it has modest scientific and historical value. We know the history, and there isn’t anything untested. “But the Titanic assets have im- mense cultural value. It may have the same kind of cultural value of, say, the cultural value in a baseball stadium that is going to be razed. There may be small historic or sci- entific value to the stadium, but the Ready to grow cultural value can be immense — perhaps worth more than when the structure was built.” Sellers has become a celebrity of your business? sorts in West Michigan for adding to the nightlife of downtown Grand Rapids over the past six years by launching the HopCat, Grand Rapids Brewing Co. and Stel- Let’s customize a plan to la’s Lounge from scratch with his wife, Michele. Along with another pub called McFadden’s, all of which are owned make it happen. by the Sellers’ BarFly Ventures LLC, the restaurants and bars are all within a stone’s throw of one an- other in the city’s entertainment district that surrounds Van Andel Arena. In addition, BarFly Ven- tures expects to open at the end of CITIZENS BANK FIRSTMERIT BANK. the month its first operation out- IS NOW side of Grand Rapids: the HopCat East Lansing, in the hometown of Michigan State University, where Sellers received a bachelor’s de- gree in accounting in 1998. He credits the success of his We’re here to help. restaurants to keeping true to what he himself likes and is good at. At FirstMerit Bank, we make it our business to know your business. “The reason that the HopCat con- With over one hundred years of experience creating tailored solutions cept works is that it’s a beer bar started by beer lovers,” Sellers said. to meet unique business needs, we can help you make the best choices “I started it with my wife, and we ba- sically cater to people who love beer. for your business. So, whenever you’re ready to chat, we’ll be here. “We don’t try to compromise to please everyone,” Sellers said of the HopCat East Lansing, which Sell- ers says will feature the most beers on tap of any in Michigan — 100. When the East Lansing location opens Aug. 22, HopCat and Short’s Brewing Co. of Bellaire will try to host the most brews on tap at one TO LEARN MORE, CONTACT: bar from a single brewery. David Lochner, President, Michigan, “For most businesses, particu- at 248-324-8555 or david.lochner@firstmerit.com. PERSONAL BUSINESS COMMERCIAL PRIVATEBANK larly a beer bar,” he said, “if you try to please everyone, you can end up pleasing no one.” Member FDIC Sellers said he never aspired to 1403_FM13 FirstMerit.com/MeetUs taking control of a company that See Next Page 20130812-NEWS--0024,0025-NAT-CCI-CD_-- 8/8/2013 3:57 PM Page 2

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 25 CRAIN’S MICHIGAN BUSINESS

From Previous Page eventually would be declared sav- ior-in-possession of actual arti- facts from the Titanic — the ocean liner that sank in 1912 in the North Atlantic, taking more than 1,500 souls with it. He took a minor posi- tion in Premier Exhibitions sever- al years ago as a manager of Sellers Capital LLC, then waged and won a proxy battle that allowed his fund to install its own board of directors and management after being dis- appointed by the progress of prior management. Since that time, the company has improved financially. At the end of fiscal 2013, which ended Feb. 28, PRXI posted net income of $1.95 mil- lion, or 4 cents per share, on rev- enue of $39.5 million — the first prof- itable fiscal year of the past four. That compares with a loss of $5.78 million, or 12 cents a share, on rev- enue of $31.7 million in fiscal 2012. The primary revenue source of PRXI is developing and operating museum-quality exhibitions that include self-operated venues in At- lanta; Las Vegas; Orlando, Fla.; and one that opened at the begin- ning of August at the former Movieland Wax Museum site in the Buena Park, Calif. Investors who analyze the valua- tion of PRXI stock generally dis- cuss its breakup value by looking at two aspects: the sale value of the Titanic artifacts and the compa- ny’s ongoing exhibition business. PHOTOS COURTESY OF GRAND RAPIDS PUBLIC MUSEUM In a number of court documents Among the attractions of the Titanic exhibit are ship artifacts and blueprints (left) and and a nonbinding letter of intent, complete lists (above) of surviving and lost passengers. Each visitor is given a name of a experts have bandied about the passenger, and that name can be checked against the list to learn the person’s fate. $189 million figure for the artifacts. One organization that may be in- volved in negotiations to buy the Titanic artifacts would be the Mariners’ Museum. In his com- ments to investors, PRXI President and CEO Samuel Weiser referred to a “consortium based in the Hamp- ton Roads area of Southeast Vir- ginia” that had signed a nonbind- ing letter of intent with PRXI in October to buy the Titanic assets. ContinuityTrusted for 70 years. y “We still believe that the Hamp- We’ll be here for generations. ton Roads location contemplated by this consortium remains a suit- able and desirable destination and Personal life insurance consulting an ideal permanent home for the asset,” a transcript of the call said. in a non-salesy environment. The Mariners’ Museum, consid- ered among the foremost marine- themed museums in North Ameri- Reducing estate and income taxes ca, has exhibited Titanic artifacts and holds events regarding the tragedy. Museum officials did not Enhancing fixed income yields respond to requests from Crain’sas to whether the organization was in- Solving family and retirement issues volved in a consortium to buy the Titanic assets. Sellers said he understands that Optimizing existing life insurance policies some investors are impatient about the sale of the Titanic assets, but the company has decided that Business succession planning it isn’t going to sell the artifacts “at a discount just to get a fast sale.” and corporate benefits “It’s very important that people realize that there is a trade-off be- tween value and time, and we eval- uate that trade-off all the time,” he said. “There is some pressure on us to do it quicker, but I don’t be- lieve that’s in the best interest of the shareholders.” Sellers wouldn’t comment be- yond what is reported in public fil- ings but said: “I’m not selling any shares. We have a lot of optimism about the future of this company.” BIRMINGHAM, MI | NEW YORK, NY Matthew Gryczan: (616) 916-8158, 248.731.9500 | WWW.SCHECHTERWEALTH.COM [email protected]. Twitter: @mattgryczan 20130812-NEWS--0026-NAT-CCI-CD_-- 8/8/2013 3:57 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS August 12, 2013 CRAIN’S MICHIGAN BUSINESS Consolidation sensation? Urge to merge easier said than done

BY ROD KACKLEY glas, where residents will vote on City Council met July 18 — the same Grand Rapids in the village of Dou- “It’s easy to say from the outside, SPECIAL TO CRAIN’S MICHIGAN BUSINESS consolidating the two governments day Detroit filed for Chapter 9 bank- glas and the city of Saugatuck. On ‘It just makes sense,’ ” he said. in November. ruptcy — to discuss a police and fire Nov. 5, residents there will be “What we have seen, though, is that For more than two years, Gov. In his monthly video blog record- consolidation plan offered by asked to approve a merger of the community identity tends to mean Rick Snyder has tried to make it eas- ed July 22, Grand Rapids Mayor Leonard Matarese, director of re- communities’ governments. a lot to the people who are actually ier for communities to consolidate George Heartwell said he is confi- search and project development for Saugatuck and Douglas have involved.” services or merge governments. dent that offi- the International City/County Manage- done what Grand Rapids, Kentwood Jim Storey, an adviser to the So now, when Detroit leads the cials in his city ment Association, an organization and Wyoming may be unwilling to committee that has been pushing a parade of Michigan communities and the two sub- that provides technical and man- do — they share police and fire de- Saugatuck-Douglas merger for that could face financial calamity, urban communi- agement assistance to local govern- partments. However, the next step more than three years, would why aren’t more cities, villages and ties would come ment professionals. — bringing these two communities rather talk about saving $500,000 townships getting into that line? up with a way to Matarese told the officials that under a common name with one and improving the efficiency of Terry Stafford, a Michigan De- merge their six they were not asking an important government for all — is turning out government. partment of Treasury spokesman, police and fire question: What we have now is to be a more contentious debate. To him, it makes no sense for a said that in the 2012 and 2013 fiscal departments working, but how long can it last? They would not be the first Saugatuck city snow plow to have years, 74 communities off the list into two regional Even with that in mind, and al- Michigan communities to merge. to “lift its blade when it enters the of 83 counties, 533 municipal gov- departments. though the consolidation plan Iron River, Stambaugh and Miner- portion of Douglas that it has to run ernments and 1,242 townships in Heartwell “However, to would cut spending by $10 million a al Hills took that honor in 2000 after through to get to the other side of Michigan applied for Competitive say it is possible and to say there is year among the three cities, only a November 1999 vote. Saugatuck,” then put it back down. Grant Assistance program money the political will to do it are two dif- Grand Rapids city commissioners However, he understands the to help pay the bills for consul- ferent things,” he said. Like the Upper Peninsula com- grudgingly said they were willing emotions of the debate. tants, lawyers, surveyors, tax ex- The political will to merge Kent munities that became the “new” to keep talking. Most Wyoming and perts and everyone else who is County and the city of Grand Rapids Iron River, Saugatuck and Douglas “There are too many people in Kentwood officials hated it. needed to make consolidations and into a single government in 2011 — are small. They don’t spend more office who say, ‘If consolidation oc- mergers happen. as proposed by Dick DeVos, the son Yet it’s not as if these three com- than $3.3 million a year between curs, what is going to happen to While it is within the power of of one of the founders of Amway Corp. munities haven’t consolidated. them to serve the 1,232 people in me?’ ” Storey said. Snyder and the Michigan Legisla- and a former Republican candidate They share The Rapid mass transit Douglas and the 925 full-time resi- Saugatuck Mayor William Hess ture to trim bureaucracy standing for governor — was lacking. The system with three other communi- dents of Saugatuck. Studies done by opposes the merger. He believes in the way of municipal marriages, idea died for a lack of support from ties and are members of the Grand Plante Moran PLLC and the Citizens the $500,000 savings figure is too they can do nothing to make it emo- most everyone involved in Kent Valley BioSolids Regional Authority. Research Council of Michigan indicate high. But he also will be the first to tionally easier to join hands. County and Grand Rapids govern- Heartwell is not giving up. He that the communities would share say that this debate is not about Those emotions are evident in ment, including Heartwell. said the conversations will contin- annual savings of about $500,000 if money. It is about Saugatuck be- Grand Rapids, Kentwood and Yet the past two years of finan- ue and expects the three cities to the merger were approved. ing Saugatuck. Wyoming, where officials in those cial strife faced by many cities in hold public hearings on consoli- Yet Eric Lupher, director of local “Whether you would call the cities are talking about consolidat- Michigan has changed some minds. dating police and fire. affairs for the Citizens Research new city Saugatuck-Douglas or ing their police and fire depart- The Grand Rapids and Kentwood Another emotional debate is be- Council, understands money isn’t Doug-a-tuck,” Hess said, “it’s just ments, and in Saugatuck and Dou- city commissions and the Wyoming ing heard 40 miles southwest of always the most important factor. not the same.”

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August 12, 2013 CRAIN’S DETROIT BUSINESS Page 27

Monthly Germany WHERE MICHIGAN DOES BUSINESS

Holdings Corp., Volkswagen AG and ZF Group. Autoliv Inc. ermany has weathered the aftereffects Crain’s World Watch Monthly seeks Top executives: Christoph Guhe, vice presi- Based: Auburn Hills of the most recent economic recession G to showcase Michigan companies that dent and general manager, forged products di- Operations: Technical centers are in much better than most of its European are already international business vision, and Juergen Depp, vice president/en- Elmshorn and Dachau. Production plants counterparts. That helps explain why EU fis- leaders — and those that are making gineering and business development. are in Braunschweig and Döbeln. Develop- cal and monetary policies often hinge on the plans for expansion in emerging mar- ment center is in Schweinfurt. kets. Employees: 2,100 decisions of German politicians. MSX International Inc. Each month features a different Products: Seatbelts, front and side airbags Germany has the world’s fifth-largest econo- country or group of countries. If you Based: Warren and radar systems my with GDP of $3.1 trillion in 2012. It makes know of a Michigan company that ex- Operations: European headquarters in Clients: All automotive OEMs in Germany up about one-fifth of the total EU’s GDP of ports, manufactures abroad or has fa- Cologne; hotline centers in Dietzenbach, Top executives: Franck Roussel, Jens Eis- $15.6 trillion. cilities abroad, email Jennette Smith, Cologne and Flörsheim feld and Frank Kohrs, managing directors Employees: About 305 Germany’s biggest exports include motor ve- managing editor, at [email protected]. Products: MSX provides staffing services Belfor Holdings Inc. hicles, machinery, chemicals, metals and phar- for automotive, industrial, transportation maceuticals. Big imports include machinery, COMING UP and consumer packaged goods companies. Based: Birmingham data processing equipment and vehicles. Ger- Its retail network unit manages warranty Operations: German headquarters in Duis- many’s top trading partners include France, the September: France programs, parts and accessories sales opti- burg with 29 offices throughout Germany October: India mization, and service and technical train- United States and the United Kingdom. Employees: About 500 ing for auto dealers. Products: Building restoration after fire and Clients: Ford Motor Co., Jaguar Land Rover water damage; property restoration, machin- Chrysler Group LLC, Audi AG, BMW AG, Ferrari Ltd., Peugeot Citroën, BMW AG, Kia Motors, Fiat ery restoration and document drying. SpA, Land Rover brand of Tata Motors Ltd., SpA, Mondelez International Inc. and Volvo Car Clients: Anyone who suffers property Porsche AG, Nissan Motor Co., Fiat SpA, Volk- Elmshorn Corp. damage ranging from large corporations to swagen AG and others Hamburg Top executives: Dirk Bott, retail network private customers. Top executive: Fernando de Miguel, presi- Bremen solutions managing director of Germany, Top executive: Elvir Kolak, managing di- dent Europe Berlin Switzerland, Austria, Sweden, Denmark, rector GERMANY Norway, Finland and the Baltics Domino’s Pizza Inc. Braunschweig Bochum Compuware Corp. Based: Ann Arbor TI Automotive Ltd. Dusseldorf Böhlen Based: Detroit Operations: Seven pizza stores in Germany Eisenach Cologne Döbeln Based: Auburn Hills Operations: German headquarters in Employees: 100 Operations: 12 manufacturing plants and Neulsenburg; satellite locations in Ham- Products: Pizza, pasta, wings, breadsticks Koblenz Frankfurt Schweinfurt three tech centers Rüsselsheim burg, Ratingen and Munich Clients: Retail customers Mannheim Nürnberg Employees: 1,800 Employees: 84 Top executive: Lance Batchelor, CEO of Saarlouis Heidelberg Products: Fuel tank systems, brake and Products: IT software and services such as Domino’s Pizza Group fuel lines, fluid carrying systems bundles, Stuttgart Dachau application performance management solu- Baden Munich fuel pumps and modules, powertrain com- tions, which helps with identifying and re- Dow Chemical Co. Baltringen ponents, HVAC systems, steel and plastic solving IT performance issues; Uniface, a de- automotive tubing velopment language for apps; Covisint, Based: Midland Clients: Daimler AG, Audi AB, Volkswagen AG, Clients: Industry leaders in natural re- which connects people through the cloud; Germany operations: Plants in Ahlen, Bal- BMW AG, Ford Motor Co., General Motors Co., sources, high tech and life sciences as well and Changepoint, software for professional tringen, Bitterfeld, Böhlen, Bomlitz, Leuna, Jaguar Land Rover Ltd., MAN, Porsche AG, Lam- as midsized companies services and portfolio management. Com- Rheinmünster, Schkopau and Stade borghini SpA, Volvo Car Corp, Renault-Nissan, Top executives: Leif Agneus, senior vice puware also provides products and services Employees: About 5,200 Kautex Textron GMBH & Co., Inergy Automotive president of Europe, Middle East, Africa and for developing and maintaining mainframes. Products: Base and specialty chemicals Systems LLC, TI Automotive LLC and Magna In- Asia Pacific; Stefano Giorgetti, vice presi- Clients: Commerzbank, Allianz, Generali, Im- Top executive: Ralf Brinkmann, president ternational Inc. dent and general manager for Germany mobilienScout24 and CEO of Dow Germany Top executives: Bogdan Mieszczak, manag- Top executives: Tim Van Baars, director of ing director, FCS Europe; Albert Boecker, application performance assurance for the Dow Corning Corp. Key Safety Inc. global product and advanced engineering region composed of Germany, Austria and director, tank systems Switzerland; Herbert Gettert, director of Based: Midland Based: Sterling Heights mainframe, also for the region including Operations: Manufacturing plant in Wies- Operations: Technical Center in Raunheim Germany; and Mareike Jacobshagen, direc- baden and satellite facility in Munich tor of Europe, Middle East and Africa field Employees: About 360 Employees: 250 marketing Products: Specialty lubricants, power ad- Products: Development and testing of safe- ditives, liquid silicones, high consistency ty restraint systems including airbags, rubber, curing agents for silicone adhe- steering wheels and seatbelts. The GmbH Con-way Inc. technical center also supports administra- sives, mold-making silicones and other sili- tion, finance, program management, and Based: Ann Arbor cones and gels for electronics sales functions for Key Safety Systems Eu- Operations: Menlo Worldwide Logistics, a Top executive: Karl Koob, site manager Con-way subsidiary, has three warehouses ropean facilities in Italy and Romania. for automotive and high-tech customers. Clients: Audi AG, BMW AG, Fiat SpA, Ford Mo- TRW PHOTO tor Co., General Motors Co., Hyundai Motor Co., Employees: 50 General Motors Co. TRW’s braking technical center and production Peugeot S.A., Toyota Motor Corp. and Volkswa- site in Koblenz, Germany. Products: Warehousing, transportation Based: Detroit gen AG management and third-party logistics solu- Operations: Adam Opel AG, a wholly owned Top Germany executive: Joachim Ver- TRW Automotive Holdings Corp. tions GM subsidiary, is based in Rüsselsheim. heugen, vice president and managing direc- Based: Livonia Top executive: Tony Gunn, managing di- There are also production plants in tor KSS Deutschland GmbH rector, Menlo Europe Bochum, Kaiserslautern and Eisenach. Operations: 17 manufacturing plants; at Employees: About 20,000 least six research and development and en- Products: Insignia, Astra, Zafira, Mokka, Metaldyne LLC gineering centers; aftermarket headquar- Cooper-Standard Automotive ters is in Neuwied. Meriva, Adam, Cascada and Corsa vehicles Based: Plymouth Employees: Based: Novi Top executive: Karl-Thomas Neumann, Operations: Technology center in Dieburg; About 10,722 Operations: German headquarters in chairman of the board manufacturing plants in Zell am Harmer- Products: Steering systems, brake parts, Mannheim and five plants throughout Ger- basch and Nürnberg chassis modules and other auto parts. many Kelly Services Inc. Employees: 618 Top executive: Alex Ashmore, vice presi- Employees: About 2,100 Products: The manufacturing plants spe- dent, TRW Automotive aftermarket, Europe Products: Sealing and trim systems, fuel Based: Troy cialize in forged components and advanced and Asia Pacific. and brake delivery systems, fluid transfer Operations: Headquarters in Hamburg and machining operations. The technology center More information: The bulk of TRW’s 2012 systems, thermal and emissions systems and 17 offices throughout the country focuses on vibration damper applications. sales — $7 billion, or 43 percent — is in Eu- technical rubber for industrial applications Employees: About 130 Clients: Audi AG, BMW AG, Robert Bosch rope. TRW’s biggest customer is Volkswagen Clients: Many automobile manufacturers Products: Staffing services for manage- GmbH, Dana Corp., Daimler AG, Getrag, Magna AG. including Ford Motor Co., General Motors Co., ment positions, vendors and leasing Powertrain, Schaeffler Group, TRW Automotive — Compiled by Ross Benes DBpageAD_DBpageAD.qxd 8/5/2013 11:16 AM Page 1 OLD PHONE COMPANY TECHNOLOGY SLOWING YOU DOWN?

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August 12, 2013 CRAIN’S DETROIT BUSINESS Page 29

CRAIN'S LIST: GREATER MICHIGAN PRIVATELY HELD Ranked by 2012 revenue

Company Revenue Revenue Worldwide Address ($000,000) ($000,000) Percent employees Rank Phone, website Top executive(s) 2012 2011 change Jan. 2013 Type of business Meijer Inc. Hank Meijer $14,600.0 B $14,400.0 B 1.4% NA Supercenters and grocery stores 2929 Walker Ave. NW, Grand Rapids 49544 co-chairman and co-CEO 1. (616) 453-6711; www.meijer.com Mark Murray vice chairman and co-CEO Alticor Inc. (Amway) Steve Van Andel 11,300.0 10,900.0 3.7 21,000 Consumer products and business opportunities supported by a global 2. 7575 Fulton St. E., Ada 49355-0001 chairman and co-CEO agribusiness, manufacturing and logistics supply chain (616) 787-1000; www.alticor.com Doug DeVos president and co-CEO Gordon Food Service Inc. Dan Gordon 9,200.0 8,600.0 7.0 NA Food service distributor and grocery retailer 3. 1300 Gezon Parkway SW, Wyoming 49509 chairman (888) 437-3663; gfs.com Dow Corning Corp. Robert Hansen 6,120.0 6,430.0 -4.8 12,000 Silicon-based materials and technology 4. 2200 W. Salzburg Road, Midland 48686 president and CEO (989) 496-4000; www.dowcorning.com Auto-Owners Insurance Co. Inc. Jeffrey Harrold 5,247.8 5,172.5 1.5 3,966 Property, casualty and life insurance 5. 6101 Anacapri Blvd., Lansing 48917 chairman and CEO (517) 323-1200; www.auto-owners.com Jackson National Life Insurance Co. Michael Wells 5,106.9 4,184.8 22.0 NA Life insurance and retirement planning 6. 1 Corporate Way, Lansing 48951 president and CEO (517) 381-5500; www.jackson.com Dart Container Corp. Kenneth Dart 3,000.0 C 1,500.0 100.0 NA Foam cups and containers 7. 500 Hogsback Road, Mason 48854 president (517) 676-3800; www.dartcontainer.com Alro Steel Corp. Alvin Glick 1,350.0 D 1,350.0 E 0.0 NA Metal servicing 8. 3100 E. High St., Jackson 49204 chairman and CEO (517) 787-5500; www.alro.com Haworth Inc. Franco Bianchi 1,310.0 1,380.0 -5.1 5,589 Furniture, interior architecture and technology solutions 9. 1 Haworth Center, Holland 49423 president and CEO (616) 393-3000; www.haworth.com Diplomat Pharmacy Inc. Phil Hagerman 1,126.9 772.0 46.0 779 Specialty pharmacy 10. 4100 S. Saginaw St., Flint 48507 CEO (888) 720-4450; www.diplomatpharmacy.com Serra Automotive Inc. Joseph Serra 1,119.6 F 992.1 12.9 NA Auto dealerships 11. 3118 E. Hill Road, Grand Blanc 48439 president (810) 694-1720; www.serrausa.com Accident Fund Holdings Inc. Elizabeth Haar 755.4 701.0 7.8 NA Workers' compensation insurer 12. 200 N. Grand Ave., Lansing 48901-7990 president and CEO (517) 342-4200; www.afhi.com Garber Management Group Inc. Richard Garber 577.8 F NA NA NA Auto dealerships 13. 999 S. Washington Ave., Saginaw 48601 president (989) 790-9090; www.garberauto.com Mill Steel Co. David Samrick 565.0 G 510.0 E 10.8 NA Steel processor 14. 5116 36th St., Grand Rapids 49512 chairman, president and (616) 949-6700; www.millsteel.com CEO Fox Motor Group LLC Daniel Devos 523.8 F 489.4 F 7.0 NA Auto dealer 15. 3060 Broadmoor Ave. SE, Grand Rapids 49512 president and CEO (616) 942-5000; www.foxmotors.com Frankenmuth Mutual Insurance Co. John Benson 492.2 H NA NA NA Mutual insurance 16. 1 Mutual Ave., Frankenmuth 48787-0001 president and CEO (989) 652-6121; www.fmins.com Lacks Enterprises Inc. Richard Lacks Jr. 475.0 430.0 10.5 2,700 Injection molding, assembly, painting and plating 17. 5460 Cascade Road SE, Grand Rapids 49546 president and CEO (616) 949-6570; www.lacksenterprises.com Fabri-Kal Corp. Mike Roeder 350.0 I 300.0 I 16.7 NA Thermoformer 18. 600 Plastics Place, Kalamazoo 49001 president and COO (269) 385-5050; www.f-k.com JSJ Corp. Nelson Jacobson 330.0 300.0 10.0 NA Durable goods and services 19. 700 Robbins Road, Grand Haven 49417 chairman, president and (616) 842-6350; www.jsjcorp.com CEO Cascade Engineering Inc. Fred Keller 300.0 I 285.0 I 5.3 1,100 Plastics systems and components 20. 3400 Innovation Court SE, Grand Rapids 49512 chairman and CEO (616) 975-4800; www.cascadeng.com Autocam Corp./Autocam Medical John Kennedy 292.0 215.0 35.8 1,878 Global manufacturing companies that produce high-precision components 21. 4436 Broadmoor SE, Kentwood 49512 president and CEO (616) 698-0707; www.autocam.com Request Foods Inc. Jack Dewitt 278.0 256.0 8.6 650 Manufacturer of frozen prepared foods 22. 3460 John F. Donnelly Drive, Holland 49424 president (616) 786-0900; www.requestfoods.com Magic Steel Sales LLC Joseph Maggini 275.0 G 265.0 E 3.8 NA Steel servicing 23. 4242 Clay Ave. SW, Grand Rapids 49548 president (616) 532-4071; www.magicsteelsales.com Two Men and a Truck International Inc. Brig Sorber, CEO 261.2 220.0 18.7 4,277 Home moving and corporate relocation services, packing and unpacking 3400 Belle Chase Way, Lansing 48911 Jon Sorber, executive services (800) 345-1070; www.twomenandatruck.com vice president 24. Melanie Bergeron, chair Mary Ellen Sheets, founder Clark Construction Co. Charles Clark 230.0 150.0 53.3 106 Commercial construction, general contractor, construction manager, design 25. 3535 Moores River Drive, Lansing 48911 CEO builder (517) 372-0940; www.clarkcc.com

This list of privately held companies is an approximate compilation of the largest companies headquartered in Michigan outside of metro Detroit that do not have stock traded on a public exchange. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Supermarket News estimate. C Plastics News estimate. Dart Container Corp. purchased Solo Cup Co. in May 2012. D Crain's estimate. E Metal Center News. F Automotive News. G Metal Center News estimate. H From the National Association of Insurance Commissioners. I Plastics News. LIST RESEARCHED BY BRIANNA REILLY 20130812-NEWS--0030-NAT-CCI-CD_-- 8/9/2013 11:17 AM Page 1

Page 30 CRAIN’S DETROIT BUSINESS August 12, 2013 Groupon pins turnaround on controversial co-founder

BY DOUGLAS MACMILLAN Other candidates worth more than $951 million, ac- In 2001, he founded printing-ser- BLOOMBERG NEWS cording to data compiled by vice provider InnerWorkings Inc., “That degree of ownership that Bloomberg. He also owns shares of which went public in 2006. He also Groupon Inc.’s choice of Eric Lefkofsky has, coupled with his Echo Global Logistics Inc. and Inner- helped found Echo Global Logis- Lefkofsky as permanent CEO en- serving in an operating capacity, Workings Inc., two other Chicago tics Inc., a shipping-technology trusts the daily deals site’s turn- probably made it next to impossi- companies he co-founded, worth company, in 2005. That company around plans to a controversial ble to get an outside CEO to take a $97.6 million. held its IPO in 2009. Chicago billionaire with a history look at actually joining,” Charlson Lefkofsky got the daily deal of failed endeavors. said. provider off the ground with a Lefkofsky — one constant at a Leonsis was approached by nu- $1 million investment in The Progress report company that has cycled through merous qualified candidates who Point, the predecessor to Groupon, Groupon’s second-quarter earn- executives and dabbled in new were interested in taking the job, and in 2008 prodded Mason into fo- ings report gave a glimpse of the business models to make up for said Paul Taaffe, a spokesman for cusing on the e-commerce startup. early progress in Lefkofky’s efforts waning demand in its main Groupon. In 2011, Lefkofsky caused a stir to jump-start growth by targeting coupon business — has shored up Lefkofsky takes over the deals and attracted the attention of the smartphone and tablet users. Al- control after jostling with his co- business as it works to stay rele- U.S. Securities and Exchange Com- most 50 percent of North American founder Andrew Mason, whom he vant in the age of smartphones and mission when he told Bloomberg transactions in June came from helped oust from the CEO role in tablet computers. Started in 2008 News just after Groupon filed its mobile devices, up from about a February. as a service for distributing dis- prospectus for an initial public of- third a year earlier, the company The move puts Chicago-based counts to spas, restaurants and fering that he expected the compa- said in a statement. More than 50 Groupon in the hands of a known other local services via once-a-day ny to be “wildly profitable.” million people have downloaded quantity, who as interim co-CEO emails, the company now focuses Groupon later updated its IPO fil- Groupon’s apps globally. helped oversee a 79 percent stock on offering thousands of deals at ing, telling investors to disregard Third-quarter revenue is fore- rally this year, but it also dashed once, available any time on the the comments. cast to rise to $585 million to optimism that the board would tap Web or mobile applications, $635 million, Groupon said. That an outsider with experience lead- Lefkofsky said in an interview. Varied ventures compares with an average analyst ing corporate overhauls. BLOOMBERG NEWS PHOTO “Our primary vision is to build estimate of $621.5 million, accord- In May, the company said the Detroit-born Eric Lefkofsky has out a marketplace which people Lefkofsky’s investment in increased his control over Groupon ing to data compiled by can come to when they have a Groupon followed a series of past search for a new chief was under- since ousting its CEO in February. Bloomberg. way and it was talking with re- need,” he said. “We’re fortunate ventures, some of which stumbled. On top of keeping the company that Groupon is inherently mobile cruiting firms. Lefkofsky was born Wednesday. In the 1990s, Lefkofsky and his growing in mobile, Lefkofsky faces by nature. We’re very focused on in Detroit, grew up in Southfield “The next few years are critical, business partner, Keywell, bought the challenge of wooing users out- that. We’re also focused on this and graduated from the University and we’re confident that Eric is children’s clothing company Bran- side the U.S. Even after Groupon fundamental shift in consumer be- of Michigan. He and fellow UM grad the right leader for this stage of don Apparel Group. It later faltered invested heavily in an overseas ex- havior.” Brad Keywell invested the first Groupon’s evolution.” after taking on too much debt and pansion, international sales de- $1 million in Groupon. Lefkofsky, 43, owns 17 percent of a shift in fashion trends, Lefkofsky clined in the second quarter, with Last week, newly appointed the company’s common stock and ‘Day One’ explained on his blog. revenue dropping 24 percent in Eu- Chairman Ted Leonsis said that in controls 26 percent of shareholder Lefkofsky also co-founded Star- rope, the Middle East and Africa, the end Groupon looked no further votes, and his influence over the “They certainly picked someone belly.com, an online promotional- and falling 26 percent in other in- than Lefkofsky, who provides con- board may have hindered who’s been there since Day One,” merchandise seller, in 1999 and ternational markets. tinuity as the company reshapes Groupon’s ability to attract quali- Tom Forte, an analyst at Telsey Ad- then sold it to Ha-Lo Industries Inc. “There’s a handful of countries itself. fied candidates, said Adam Charl- visory Group in New York City, said for $240 million. Ha-Lo filed for we need to turn to and focus on,” “We have too much to do to take son, executive vice president of in an interview. “He’s extremely bankruptcy protection from credi- Lefkofsky said in the interview. “It’s a transition right now,” Leonsis Chicago-based recruiting firm DHR familiar with the business.” tors in July 2001 after writing a matter of focusing on those mar- said in an e-mailed statement International Inc. Lefkofsky’s stake in Groupon is down the acquisition. kets that are underperforming.”

FREE WEBINAR: AUGUST 21, 12–1 P.M.

In Partnership with: Presented by:

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Employee Facts: New Rights and AARON ECKELS Protections Under the Law Weinzweig: “Don’t expend energy on ideas that are not part of your vision.” MESSAGE FROM ENTREPRENEURS: DON’T LOSE SIGHT OF VISION The importance of having a long-term vision was the overriding message About the Webinar from the keynote panelists at the Crain’s Salute to Entrepreneurs awards The Affordable Care Act means changes for employees too. breakfast last week at the Somerset Inn in Troy. “For us, it’s always about vision, not just about strategy,” said Ari While there’s a requirement for individuals to have coverage, Weinzweig, president of Ann Arbor-based Zingerman’s Deli. “Don’t expend there are rights and protections under the law as well. energy on ideas that are not part of your vision.” Weinzweig and Michael McFall, president of Biggby Coffee, spoke at Tuesday’s event about their organizations’ corporate evolutions. Zingerman’s has expanded its deli into food service, catering, mail order Discover: and even a Zingtrain corporate training program. Lansing-based Biggby seeks to become the largest coffee franchisor in Michigan and then expand What changes are coming for employees under the law in the Midwest. It has more than 150 locations. Zingerman’s stays on mission by operating within 10-year plans. For Options available for getting insurance coverage example, it is not interested in opening restaurants elsewhere, even when Walt Disney World called. Similarly, Biggby realized early on that it wanted Resources available to guide decision-making franchisees to operate its stores instead of getting bogged down in the day- to-day management of company-owned stores. Biggby’s role is to give them a business model to duplicate. The keynote panel, moderated by Dan Duggan, Crain’s managing editor of Register today at crainsdetroit.com/webinars custom and special projects, followed an awards presentation to the Crain’s 2013 Salute to Entepreneurs award winners. To read stories and see photos of the winners and from the event, see crainsdetroit.com/salute. 20130812-NEWS--0031-NAT-CCI-CD_-- 8/9/2013 11:53 AM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 31 Sale of Detroit firehouse gives nudge to hotel plan

BY SHERRI WELCH state, confirmed Sonya Mays, se- ciates, will begin the tedious work ered by public lighting systems, he CRAIN’S DETROIT BUSINESS nior adviser to Emergency Manag- of checking every brick on the said. er Kevyn Orr, in an email. building’s exterior to find out what Cohen said the plan is to retain Gov. Rick Snyder last week The approvals process needed needs to be fixed or replaced, in the fire poles in the building. The signed off on the $1.25 million sale for the sale of city-owned buildings keeping with the building’s his- area where the fire engines are now of the historic firehouse across has since been refined and stream- toric designations. housed probably will be converted from Detroit’s Cobo Center, moving lined, she said. The renovation has to be ap- into a hotel-operated restaurant forward a boutique hotel planned proved by local, state and federal and small meeting rooms, Cohen for the site. Between now and the target historic preservation bodies to said. Local developer Walter Cohen, opening date for the hotel, much of qualify for federal historic preser- owner of 21 Century Holdings LLC, the foundation work will take “We think this area, which has- ANDREW JAMESON/WIKIMEDIA COMMONS place, Cohen said. vation tax credits, Cohen said. n’t had a lot of foot traffic outside said he and Chicago developer It took longer to sell the firehouse The developers will need to redo of events at Cobo, will have a lot Aparium Hotel Group have lined up because Detroit is operating under an Environmental studies have more between the Crowne Plaza and much of the $23 million needed for emergency manager. turned up asbestos in the building, all the plumbing in the 1929 fire- the 75-80-room hotel. Cohen said. The developers are house, design new heating and (us) when we get open,” he said. They plan to also seek historic was one of the first deals subject to bidding out the work to remove it. cooling systems and work with DTE Sherri Welch: (313) 446-1694, preservation and brownfield tax a multi-approval process by the Soon, the project’s architect, Birm- Energy Co. to run electricity to the [email protected]. Twitter: credits to convert the five-story city, emergency manager and ingham-based McIntosh Poris Asso- building since it’s currently pow- @sherriwelch building at Washington Boulevard and Larned Street into a hotel that will emphasize the earliest days of Detroit, from its French roots to its days as a timber capital, to a man- ufacturing history ranging from bicycles to pharmaceuticals to au- tomobiles, he said. Cohen is no stranger to historic renovation. Among other projects, he co-developed the Stroh River Place apartments and townhouses in historically renovated buildings in Detroit with the late Peter Stroh and was general partner in the re- development and renovation of the Park Shelton, a hotel transformed into residential units. Cohen is developing the Detroit firehouse into a hotel with Apari- um, a company formed by three Tuesday, Oct. 29 veterans of the hotel industry: Tim Dixon, Mario Tricoci and Kevin San Marino Club, Troy Robinson. The three have ties to Milwaukee’s acclaimed Iron Horse 7:30 a.m. – 2 p.m. Hotel, a motorcycle-themed luxury hotel in a 100-year-old warehouse along a river; and the Elysian Hotel Chicago, now operating as the Wal- dorf Astoria Chicago after its sale in November to billionaire Sam Zell for $95 million. KEYNOTE SPEAKER: When Crain’s broke news of the plan for the boutique hotel in the Maureen Bisognano, CEO, historic Detroit firehouse in Institute for Healthcare Improvement, March, Cohen, who also owns Southfield-based Arco Construction, Boston and author of Pursuing the said the developers hoped to have Triple Aim, shares examples of how the hotel open in time for the 2015 health care systems are lowering North American International Auto Show. costs and improving care at the But the longer approvals process, local level. with signoffs from not only the mayor and Detroit City Council but also the emergency manager, gov- ernor and state treasurer — needed because Detroit is operating under an emergency manager — delayed the project three to four months, Cohen said. “Now we’re moving forward as fast as we can,” he said. “I would Be among the fi rst hope we’d be open by the spring of 2015, if not before.” 250 registrants and Per the state’s emergency man- ager law, any asset sale of more get a FREE copy of than $50,000 not included in the emergency manager’s financial Pursuing the Triple Aim A luncheon program honors Crain’s and operating plan requires state approval, Sara Wurfel, press sec- by Maureen Bisognano annual Health Care Heroes awardees. retary for the governor, wrote in an email. The state treasurer signed off on the sale before Sny- der did. But the sale was driven locally, To register, please visit www.crainsdetroit.com/events or call 313.446.0300 as the firehouse no longer is need- ed because of the new public safety headquarters in the city, Wurfel PREMIER SPONSORS LUNCH SPONSOR MAJOR SPONSORSROUNDTABLE SPONSOR REPORT SPONSOR PORTFOLIO SPONSOR BREAK SPONSOR said. “We think it’s a good story and smart use of the property,” she said. The firehouse sale transaction 20130812-NEWS--0032-NAT-CCI-CD_-- 8/9/2013 10:25 AM Page 1

Page 32 CRAIN’S DETROIT BUSINESS August 12, 2013

WORLD-CLASS INFORMATION SERVICES FOR MICHIGAN BUSINESS A lane opens to tackle transportation funding

Now that the state being and Medicaid is a tax increase, no matter when you budget is done, and, after close to being done. vote on it, and members know they a great deal of debate, the Capitol Rich Studley, presi- could be attacked for it. Legislature appears Briefings dent and CEO of the This, in part, is why talk has been poised for a vote at the Michigan Chamber of Com- surfacing again in Lansing about a end of the month on Med- merce, which supports ballot proposal to help solve the icaid expansion, where Snyder’s plan, said if the transportation funding issue. DATA CENTERS does that leave Gov. Rick Medicaid expansion vote It would be used to ask voters to Snyder’s transportation ends well, it could pro- raise the sales tax to either 7 or 8 plan? vide the momentum and cents, from the 6-cent mark it is at FIBER TO YOUR BUSINESS When Snyder unveiled trust needed to move for- now. The increase would go to re- his budget presentation ward together and finish plenish education funds if the FIXED METRO WIRELESS in February, it included transportation. sales tax customers pay at the an expansion of Medic- Chris Gautz “I still think there is a pump is eliminated. Much of the aid and an annual in- window of opportunity,” sales tax people pay on their gas MPLS | SIP | PRI crease in transportation revenue he said. purchases goes to education, to the tune of $1.2 billion. And that window doesn’t extend rather than to the roads. That revenue would come in much past this fall. Studley said the chamber still part from raising registration fees With each day that passes, the prefers a solely legislative solution, an average of 20 percent and elimi- roads get worse and the problem rather than going to the voters. nating the state’s 19 cents-per-gal- gets more expensive to fix, which A statewide campaign to support www.123.net lon gas tax — and moving to a tax proponents of Snyder’s plan say is a ballot measure can cost anywhere at the wholesale level. just one more reason why getting from $1 million to $5 million, if there 866.603.4774 By June, the budget was done, but it done now is so important. is not much in the way of an orga- Medicaid was a heavier lift than But the 2014 election is also get- nized opposition. But if there is vo- was expected and was given priority ting closer, and every seat in the cal or a well-financed opposition, by Snyder over transportation be- House and Senate is up for grabs. you can double or even triple that cause there were federal deadlines For those running for re-elec- amount, Studley said. the state needed to meet to make tion in 2014, Studley said, it may be “The more complicated a ballot sure the expansion worked. better to vote on the transporta- proposal is, the easier it is to at- So in the final weeks of session tion package this fall so that voters tack and the more likely it is to before the summer break, the fo- will see construction and improve- fail,” Studley said. cus was on Medicaid and contin- ment to the roads next fall before Chris Gautz: (517) 403-4403, ued there throughout the summer, going to the polls. [email protected]. Twitter: when the Senate left without vot- But for some, a tax increase is still @chrisgautz ing on Medicaid expansion. That took away focus and mo- mentum from Snyder’s transporta- tion plan, as did high gas prices — the price for a gallon of gas reached upward of $4 around the time the House Transportation Com- mittee was considering voting on pieces of the plan. Lawmakers already hesitant about voting for a tax increase be- came even more reluctant given the pain at the pump their con- stituents were already feeling. Entry deadline: AUG. 16 The wide variety of fee increases being contemplated, largely con- crainsdetroit.com/nominate tained in HB 4632, also drew consid- erable opposition. During hearings in June, a variety of groups testified against the bill. While their testimo- ny varied, they could largely be boiled down to, “Don’t raise our fee, raise the other guy’s.” But what the House members 60$//2)),&(Ř+20(2)),&( working on the issue have been Outstanding Selection For Small trying to do all along is come up Professional Office or Home Office with a system of fee increases that makes the system more equitable,  Free Design Assistance which means everyone is going to  Customization - Sizes & Finishes pay more. That, of course, means  Professional Installation just about everyone is going to  Contemporary or Traditional have some level of opposition to it. Then it becomes clear why law- makers haven’t done a large-scale revision to transportation funding since 1997 — it’s hard. But now there is hope, as gas prices have stabilized for the time BANKRUPTCIES The following business filed for bank- FEATURING ruptcy protection in U.S. Bankruptcy Court in Detroit Aug. 2-8. Under Chapter 11, a company files for reorga- nization. 6287+),(/'ō752< 129,ō/$.(6,'( Raheel Foods Inc., 415 S. West St., Roy- *5$1'5$3,'6 al Oak, voluntary Chapter 11. Assets www.gormans.com and liabilities not available. SPBT0405 — Ross Benes 20130812-NEWS--0033-NAT-CCI-CD_-- 8/9/2013 10:16 AM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 33

BRIEFLY NOMINATIONS SOUGHT FOR NONPROFIT CONTEST Land near Metro Airport was still waiting to see the lawsuit This year’s Crain’s Best and didn’t yet have a comment. Managed Nonprofit Contest is focused on good management available for commercial use — Ross Benes practices of nonprofits with Prime land near the entrance of budgets of $3 million or less. Detroit Metropolitan Airport is being Regional Mattress World stores Applicants are asked to give made available for commercial de- examples of how they deploy their velopment in an effort known as converting to Art Van PureSleep mission and resources, among other information. the Gateway Project. Art Van Furniture said it plans to The Wayne County Airport Authori- convert 31 Mattress World locations Applications are due Aug. 26. Finalists will be interviewed in ty, which oversees Metro, said last in Michigan and Indianapolis to week it is seeking requests-for- person by judges the morning of Art Van PureSleep stores by the Nov. 5. qualifications from companies po- end of the year. tentially interested in turning the Applicants for the award must be The Warren-based furniture re- a 501(c)(3) with headquarters in two parcels into developments that tailer acquired the Howell-based Wayne, Washtenaw, Oakland, passengers could use. Mattress World chain in May 2011, Macomb or Livingston counties. The authority said it didn’t have gaining its first presence outside Applications must include an specifics on what it wants to see of Michigan through the deal. entry form, a copy of the developed there, but instead is PureSleep stores use a diagnostic organization’s code of ethics, a seeking ideas. Because the land is system with customers to sell mat- copy of the most recent audited away from airline use, it is expect- tresses and pillows most comfort- financial statement and a copy of the most recent IRS 990 form. ed to be commercial development able for their sleeping preferences. that could include food, retail, fuel Specialty sleep stores are one of Previous first-place winners are not eligible; neither are hospitals, and other businesses. the fastest growing retail cate- HMOs, medical clinics, business Whatever is built would gener- gories, Art Van said in a press re- and professional organizations, ate revenue for the authority by to- lease. schools, churches or be-determined leases or other fi- The company began converting foundations. nancial agreements. The land is all Mattress World stores to The winners will be profiled in the within the airport’s footprint and PureSleep stores Aug. 1 and ex- Nov. 25 issue, receive a special would remain owned by the au- pects to complete the changeover, “best-managed” logo from thority. which will retain all employees, by Crain’s for use in promotional One plot is 4 acres and the other year’s end. material and will be recognized at is 4.5 acres. They’re adjacent to Art Van operates PureSleep the Crain’s Newsmaker of the each other and located between stores inside all 35 of its furniture Year lunch early next year. Rogell Drive (the airport’s main stores and 10 freestanding For an application form, please entrance road from I-94’s Merri- PureSleep stores in Michigan and email YahNica Crawford at or visit Ohio. Four more outlets are sched- [email protected] man Road exit) and Delta Air Lines www.crainsdetroit.com/nonprofit Inc.’s hangars and offices near the uled to open in Michigan before contest. For information about North Terminal. the end of the year. the contest itself, email Executive On the sites now are two ware- Art Van said the conversion will Editor Cindy Goodaker at house/office facilities and a for- give it a total of 76 PureSleep stores. [email protected] or call mer post office that the authority — Sherri Welch (313) 446-0460. said will be demolished under a separate engineering contract. The RFQ deadline is Sept. 17. Any project requires the seven- member authority’s public ap- proval. Seventy-five percent of Metro’s 16 million passengers pass the two parcels annually, the authority said. Employment Law Experience — Bill Shea ® Silverdome owner sues insurance company after storm damage In Your Corner. The owner of the Pontiac Silver- dome filed a $23 million lawsuit ■ Labor relations, state/federal agency work, last week against its insurance employment litigation, union election campaigns, company for denying coverage af- unemployment insurance taxation matters, and ter the Silverdome’s roof devel- arbitration of employment disputes oped a hole during a storm last winter. ■ Facilitative mediator for the U.S. District Court, Triple Properties, the Toronto- Western District of Michigan and the Michigan Courts based owner of the Silverdome, is suing Connecticut-based The Hart- ■ Arbitrator and mediator with National Arbitration ford Steam Boiler Inspection and In- and Mediation, Inc., the American Settlement Centers surance Co. for more than $23 mil- and the National Arbitration Forum lion for denying the building coverage, said David Shea, attor- ney at Southfield-based Shea, Aiello & Doxsie PLLC, who represents Triple Investment Group in the lawsuit. “The insurance company denied CELEBRATING coverage without substantive in- 12 YEARS vestigation,” Shea said. 5 The roof repair will cost $22 mil- lion and the cleanup will cost $300,000, Shea said. There is no es- timate yet on the damages to be sought for lost business income since the roof damage, he said. The lawsuit was filed in U.S. Dis- trict Court in Detroit. The suit is First Tier Ranking in before Judge Gershwin Drain in Labor Law – Management federal court, Shea said. Richard A. Hooker Dennis O’Shea, vice president of ■ ■ ■ ■ ■ [email protected] communications for Hartford Metro Detroit Grand Rapids Kalamazoo Grand Haven Lansing Steam Boiler, said the company 20130812-NEWS--0034-NAT-CCI-CD_-- 8/9/2013 10:24 AM Page 1

Page 34 CRAIN’S DETROIT BUSINESS August 12, 2013

CALENDAR TUESDAY CRAIN’S EVENT HONORS THURSDAY Kyle Sasena, VP, International Banking Specialist AUG. 13 AUG. 15 Fred Fordon, SVP, Commercial Banking Manager FAST-GROWING COMPANIES Ann Arbor Open Coffee. 8-9:30 a.m. Ann Coffee, News and Networking. 8:45- Arbor Spark. Networking event for en- Join Crain’s Detroit Business from 10:30 a.m. Troy Chamber. Open to The Entrepreneurial Bank. trepreneurs, investors and those in in- 5 to 9 p.m. Sept. 11 at the Colony chamber members from all communi- novation businesses, particularly in Club, Detroit, to salute Crain’s ties. Rehmann, Troy. Free. Contact: IT, clean tech and life sciences. Ann Fastest Growing Companies. Troy Chamber, (248) 641-8151; email: Arbor Spark, Ann Arbor. Free. Con- The July 15 CDB issue showcased [email protected]; website: tact: Alissa Carpenter, (734) 372-4071; the profiles of companies from www.troychamber.com. Level One Bank makes international email: [email protected]; web- Crain’s annual list of fastest- site: www.annarborusa.org. growing companies. At the event, Informal Networking Event. 5:30-8 p.m. trade easy. Import and export, safe hear the stories on what’s driving Asian Pacific American Chamber of Inside the CEO their growth. All companies on the Commerce, Philippine Chamber of and efficient. Mind. 8-10 a.m. De- list will be invited, and some will Commerce of Michigan. Chrysan In- troit Regional provide speakers. dustries, Plymouth. APACC enter- Chamber. With prise and corporate members free; $10 Level One, your international bank, Tickets are $60 for subscribers, other APACC members; $20 nonmem- Gene Michalski, $99 for nonsubscribers, $85 with president and bers. Contact: Sarah Lalone, (248) 430- right here at home. an offer that includes a one-year 5855; email: [email protected]; web- CEO, Beaumont subscription to Crain’s, and $10 Health System. site: www.apacc.net. for guests in groups of 10 or more. Call us. Beaumont Hospi- tal, Royal Oak. For tickets and more information, $20 members, contact Kasey Anderson at CALENDAR GUIDELINES $50 nonmembers. (313) 446-0300, or visit If you want to ensure listing online Contact Greg Wernette Michalski Contact: Mari- www.crainsdetroit.com/events. and be considered for print anne Alabastro, publication in Crain’s Detroit Entrepreneur and Chief Lending Officer (313) 596-0479; email: malabast@de Business, please use the online 248-737-0300 troitchamber.com; website: www.de for Empowerment and Economic De- calendar listings section of troitchamber.com. velopment. Learn how to secure alter- www.crainsdetroit.com. Here’s native financing for your small busi- how to submit your events: Marketing Roundtable Summer Work- ness. Oakland County Business From the Crain’s home page, click shop. 5-7 p.m. Ann Arbor Spark. Con- Center, Waterford Township. Free. “Detroit Events” in the red bar sult with experts in marketing strate- Contact: Karen Lear, (248) 858-0783; near the top of the page. Then, gy, search engine optimization, email: [email protected]; click “Submit Your Entries” from blogging and other topics. Ann Arbor website: www.advantageoakland.com. the drop-down menu that will Spark, Ann Arbor. Free. Contact: Alis- appear and you’ll be taken to our sa Carpenter, (734) 372-4071; email: Business After Hours. 5:30-7:30 p.m. online submission form. Fill out [email protected]; website: the form as instructed, and then www.annarborusa.org. Michigan Association for Female En- 32991 Hamilton Court Farmington Hills, MI 48334 levelonebank.com trepreneurs. Networking. BlackFinn, click the “Submit event” button at Commercial Banking Retail Banking Mortgage Services Royal Oak. $15 members, $20 non- the bottom of the page. That’s all WEDNESDAY members, $25 at the door. Contact: there is to it. More Calendar items can be found AUG. 14 Tonya McNeal-Weary, (866) 490-6233; email: [email protected]; website: on the Web at Microloan Orientation. 9-11 a.m. Center www.mafedetroit.org. www.crainsdetroit.com. 20130812-NEWS--0035-NAT-CCI-CD_-- 8/9/2013 10:14 AM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 35

BUSINESS DIARY $30+ MILLION AVAILABLE IN APPROVED TAX CREDITS ABSOLUTE AUCTION Starting Bid: $0 ACQUISITIONS Auto Club Group, Dearborn, signed a Hart County, Ga. Website: www.fse Deposit: $25,000 multiyear contract with United Shore qualityimprovement.com. BID ONLINE SEPT 9-11 Computing Source, Southfield, a full- Financial Services LLC, Troy, to sell service legal support firm, acquired Sachs Waldman PC from 1000 Farmer SEARCH CODE: B113-100 AAA-branded home loan products to Evidence Express, a demonstrative ev- St., to the UAW-Chrysler National Detroit, MI AAA members in Illinois, Indiana, idence and trial graphics firm with of- Training Center Building, 2211 E. Jef- Mixed-Use • 302,398 SF Iowa, Minnesota and Wisconsin. fices in Detroit and Birmingham. ferson Ave., Suite 200, Detroit. Tele- Websites: www.michigan.aaa.com. Website: www.computingsource.com, phone: (313) 965-3464. Website: www.unitedshore.com. www.evidenceexpress.com. www.sachswaldman.com. Ryan Snoek PKC Group plc, a Finnish company Lic. No.: 6501366711 CONTRACTS with an office in Farmington Hills, NEW PRODUCTS (248) 720-7898 was awarded a $16 million contract for Jekyll & Hyde Advertising and Market- Preh Inc., Novi, a control system spe- [email protected] wiring harnesses from Deutz Corp., cialist and subsidiary of Joyson Elec- ing, Redford Township, was selected The Detroit Free Press building features over 289,000 SF of downtown development opportunity. The Norcross, Ga., the world’s largest in- tronics, Ningbo, China, developed a as the agency of record for UrgentRx, project is an extremely rare and unique opportunity due to its approval for over $30 million in local, state dependent diesel engine manufactur- solution for the rear climate control Denver. Website: www.jekyllhyde and federal tax credits and incentives. er. Website: www.pkcgroup.com. system for the new Mercedes-Benz agency.com. ImageSoft Inc., Southfield, was select- S-Class. Website: www.preh.com. VIEW DETAILS AT WWW.AUCTION.COM/DETROITFREEPRESS Dietz Trott Sports & Entertainment ed by the California First District Eloquest Healthcare, Ferndale, a sub- Management, Farmington Hills, a BROKERS AND OWNERS, SELL YOUR COMMERCIAL OR RESIDENTIAL PROPERTY Court of Appeal, San Francisco, to im- sidiary of Ferndale Pharma Group Brokers retain your commission. No auction listing fees. Call 888-774-3852 or visit www.auction.com/sell marketing and advertising firm, was plement TrueFiling, an electronic fil- Inc., launched the ReliaFit male EXAMPLE: selected as the agency of record for De- USE THE SEARCH CODE TO EASILY FIND A FEATURED ASSET. ing solution, as the court’s e-filing sys- urinary device, an external catheter Simply enter the code in the Auction.com search bar B113-100 troit Opera House, Detroit; Michigan tem. Website: www.imagesoftinc.com. that minimizes the risk of urinary Rehabilitation Specialists LLC, Ham- Meritor Inc., Troy, completed the sale tract infections often associated with WWW.AUCTION.COM The nation’s leading online burg Township; and Midway Corban of its 50 percent ownership interest in indwelling catheters. Website: real estate marketplace. Dental Supply, Farmington Hills. Tele- Suspensys Sistemas Automotivos www.eloquesthealthcare.com. phone: (248) 207-3312. Ltda., Brazil, to its joint venture part- PSI Repair Services Inc., Livonia, a Up to $30+ million in approved tax credits available, subject to special terms and conditions. Auction.com, LLC, 1 Mauchly, Irvine, CA 92618, (800) 499-6199. MI Auction.com RE Brkr Altair Engineering Inc., Troy, an- ner Randon S.A. Implementos e Par- 6505355610. The information being provided in connection with the auction is for informational purposes only. No representations or warranties are being made as to the accuracy or subsidiary of Phillips Service Indus- completeness of any information provided. Documents and pictures may not represent the current condition of the property at the time of sale. All properties, notes and/or loan pools are nounced that Frewer & Co. Engineers ticipacoes. The purchase price closing tries Inc., Livonia, introduced a cost- being sold “AS IS, WHERE IS, WITH ALL FAULTS AND LIMITATIONS” and all sales are “FINAL.” Prospective bidders are encouraged to conduct their own due diligence and investigate all matters Ltd., an aerospace and composites de- relating to the properties, notes and/or loan pool that they are interested in purchasing. No prospective bidder may trespass on any property, disturb the occupants, or contact the borrowers, if for Meritor’s ownership interest was effective drop-in replacement for obso- any. It is recommended that prospective bidders seek independent advice, including legal advice, to perform due diligence and to fully understand the auction process in general. Subject to sign and analysis consultancy in the $195 million in cash and other consid- lete Xantrex Matrix Inverters found auction terms and conditions as may be posted for the event. United Kingdom, invested in and is erations. Website: www.meritor.com. in GE 1.5 MW S Series wind turbines. employing HyperMesh, Altair’s mesh- Royal Park Hotel, Rochester, is now af- PSI also offers repair services for ing tool included in the HyperWorks filiated with Worldhotels’ Deluxe Xantrex Matrix Inverters from GE suite, to prepare and design large fine- Collection, an exclusive collection 1.5MW S Series wind turbines. Web- element analysis models for aerospace of independent hotels. Websites: site: www.psi-repair.com. components to investigate the struc- www.worldhotels.com, www.royal Marley Beverage Co., created in part- tural integrity of composite material. parkhotel.net. nership with the family of late reggae Websites: www.altair.com, www.frew musician Bob Marley and a joint part- er-engineering.com. EXPANSIONS nership with Viva Beverages LLC, Burroughs Inc., Plymouth, a provider Southfield, launched Marley’s One Creative Circle LLC, Los Angeles, a of technology services, entered into a Drop, a ready-to-drink iced coffee specialized staffing agency represent- software distributor agreement with made with Jamaican coffee. The com- ing advertising, creative marketing, Jaguar Software Development Inc., pany’s line of Marley drinks is avail- visual communication and interactive Sullivan, Ill., a software engineering able at convenience, grocery and mass professionals, opened an office at 2000 company in the financial industry. merchandise retailers nationwide. Town Center, Suite 1900, Southfield. Burroughs will sell and distribute Website: www.drinkmarley.com. Jaguar’s MirrorImage suite of appli- Website: www.creativecircle.com. Comcast Corp., Philadelphia, an- cation modules. The Jaguar Software SHW Group LLP, Berkley, an architec- nounced the launch in Michigan of suite will be available to Burroughs’ ture and engineering and planning Xfinity Home Control, which offers end clients in conjunction with ATM firm, completed a 13,480-square-foot video monitoring, real-time alerts and product and service sales, and allows expansion that doubles the size of its the ability to schedule or remotely ac- customers to enable their ATMs office. Website: www.shwgroup.com. cess lighting and thermostat controls. to mirror a teller line transaction. Consumers Energy Co., Jackson, com- Website: comcastcorporation.com. Websites: www.burroughs.com, pleted a $175 million natural gas sys- xfinity.com/home. www.jaguarsoftware.com. tem upgrade at its Ray Compressor Scleroderma Foundation Michigan Station, Armada Township. The main Chapter, Southfield, named Brogan & focus was the installation of five en- Partners Advertising Consultancy Inc., gines to drive compressors so that nat- NEW SERVICES Birmingham, as its agency to manage ural gas can be stored underground Henkel Corp., Madison Heights, and integrated marketing communica- for delivery to the transmission sys- its longtime partner Cavist Corp., tions, including brand strategy, cre- tem and customers. Website: Reno, Nev., announced the ability to ative production, public relations and www.consumersenergy.com. provide local prototyping for low-pres- social media. Websites: www.sclero Parks Title Co., Royal Oak, opened an sure injection molding at Henkel’s au- derma.org, www.brogan.com. office at 17197 N. Laurel Park Drive, tomotive headquarters in Madison Technical Writing Solutions LLC, Suite 273, Livonia. Telephone: Heights. Website: www.henkel.com/ Rochester, was selected by Acromag (734) 838-3910. Website: www.parksti automotive. Inc., Wixom, to develop and write the tle.com. Hino Trucks U.S.A., Novi, announced user manuals for an upcoming line Art Van Furniture, Warren, signed an HinoCare, a two-year or 60,000-mile of computer-based input/output de- agreement with Erickson Appliance & preventative service care program vices. Websites: www.twsinfo.com, Furniture to open a franchise store available free on all 2013 and 2014 www.acromag.com. called Art Van Furniture & Erickson model year 915 and 195 double-cab Newmark Grubb Knight Frank, South- Appliance, 3889 I-75 Business Spur, trucks delivered between July 1, field, was selected by Times Equities Sault Ste. Marie, Mich. The store, lo- 2013, and March 31, 2014. Website: Inc., New York, as the exclusive leas- cated in the former Shunk Furniture www.hino.com. ing and management agent for Travel- building, is being renovated and is ers Towers I & II in Southfield. Web- scheduled to open later this year. STARTUPS Website: www.artvan.com. site: www.ngkf.com. S.E.T. Products Inc., designer and Sachs Waldman PC, Detroit, is open- Brendy Barr Communications LLC, manufacturer of the S.E.T. system of Rochester, was chosen to handle ing an additional office at 1423 E. 12 Mile Road, Madison Heights. The loca- patented steel covers used to protect public relations initiatives for the ex- the door and window openings of va- pected September opening of Huerto tion will be home to the law firm’s em- PARTNERSHIP AVAILABLE ployee benefits practice. Website: cant, foreclosed and abandoned prop- Restaurant & Tequila Bar, West www.sachswaldman.com. erties, opened at 3631 Parkinson St., Bloomfield Township. Web- Detroit. Telephone: (248) 914-0138. We invite you to experience the difference that sites: www.barrcommunications.com, Website: www.set-products.com. www.huertotequilabar.com. MERGERS private flight travel can make. Schock, Solaiman, Ramdayal PLLC, a Versa Development, Southfield, a pri- Fraunhofer USA Inc., Plymouth, with law firm formed by attorneys Ben- vately owned real estate development the University of Connecticut, Storrs, jamin Schock, Erin Solaiman and Far- Conn., established the Fraunhofer company, and Helm Realty Partners UÊ œÊ >ÃÏiÊi˜ÌÀÞʏiÛiÊÊ LLC, Beverly Hills, merged and re- rah Ramdayal, opened at 37060 Center for Energy Innovation to devel- Garfield Road, Suite C-1, Clinton ÊÊÊ«>À̘iÀà ˆ«ÃÊ op advanced technologies related to tained the name Versa Development. UÊœÜiÃÌʜ«iÀ>̈˜}ÊVœÃÌÃÊÊÊÊÊÊÊ Website: www.versacos.com. Township. Telephone: (586) 239-0871. energy storage, fuel cells, in-stream Website: www.ssrlawoffice.com. ÊÊʈ˜ÊÌ iʓ>ÀŽiÌÊ hydro, power management and distri- Bliss McGlynn PC, Troy, joined UÊ
VViÃÃÊ̜ʜÛiÀÊx]äääÊÊ Howard & Howard Attorneys PLC, Roy- bution through contract research. The ÊÊÊ1°-°Ê>ˆÀ«œÀÌÃÊ center will closely cooperate with the al Oak. Founded in 1994, Bliss McG- DIARY GUIDELINES Fraunhofer Center for Sustainable En- lynn PC will carry on under the UÊ*ˆœÌÃÊޜÕʎ˜œÜÊ>˜`ÊÌÀÕÃÌÊ ergy Systems in Boston. Website: Howard & Howard name. Website: Send news releases for Business UÊ/À>ÛiÊœ˜ÊޜÕÀÊÃV i`Տi]ÊÊ www.fraunhofer.org. www.howardandhoward.com. Diary to Departments, Crain’s ÊÊʘœÌÊÌ iÊ>ˆÀˆ˜i½ÃÊ Hirschmann Car Communication Inc., Detroit Business, 1155 Gratiot UÊ->viÊ>˜`ÊÃiVÕÀi Auburn Hills, worked together with MOVES Ave., Detroit, MI 48207-2997 or Freightliner Trucks, a division of Continuity Programs Inc., a provider send e-mail to cdbdepartments@ Daimler Trucks North America LLC, of customer relationship marketing crain.com. Use any Business Diary Portland, Ore., to improve aerody- and client retention strategies, moved item as a model for your release, American Jet Management namics. A film antenna package devel- its headquarters from 4375 Pineview and look for the appropriate >Ê ˆŽiÊ>ÌÊn£ä°ÓÎÓ°{{{ÎʜÀʈ“Ê>ÌÊÓ{n°nÈä°ÈÎÇn oped by Hirschmann eliminates cab Drive to 8451 Boulder Court, Walled category. Without complete and roof antennas that cause air resis- Lake. Telephone: (800) 521-0026. Web- information, your item will not run. tance on large trucks, protecting an- site: www.continuityprograms.com. Photos are welcome, but we cannot tennas during operation. Website: Field Service Engineering, Troy, is guarantee they will be used. www.hirschmann-car.com. moving its corporate headquarters to 20130812-NEWS--0036-NAT-CCI-CD_-- 8/9/2013 10:15 AM Page 1

Page 36 CRAIN’S DETROIT BUSINESS August 12, 2013

PEOPLE ARCHITECTURE CONSULTING HEALTH CARE MEDIA Kent Hatcher to director of business IN THE SPOTLIGHT Dennis Tsilimin- development, Humantech Inc., Ann gras, M.D., to co- Arbor, from managing consultant/ Advantage One Federal Credit program director, ergonomics engineer. Union, Michigan Area Brownstown Health Education EDUCATION Township, has Center, Detroit, a named Jessica Wayne State Uni- John Satkowski to Barefoot COO. versity program. vice president of She succeeds He is an assistant financial ser- Dwight professor and di- vices, Henry Ford Emanuel, who rector of patient Community Col- left the safety in the De- Henderson Pinterpe lege, Dearborn, company. Tsilimingras partment of Fami- McCann Boyle from vice presi- ly Medicine and Barefoot, 31, Jake McCann to director of sales, dent of finance most recently Public Health Sciences at Wayne and administra- Barefoot State University School of Medicine. Greater Media Detroit, Ferndale, from was the credit general sales manager, 97.5 The Fanat- tion, Owens Com- union’s vice president of marketing munity College, ic/950 ESPN, Greater Media Philadel- and communications. INSURANCE Toledo. phia, Bala Cynwyd, Penn. Satkowski She earned an associate degree in Rosanne Genise to director of credit Jim Boyle to senior consultant, New fine arts/graphic design from and billing services, Amerisure Mutu- Economy Initiative, The Community Henry Ford Community College, al Insurance Co., Farmington Hills, Foundation for Southeast Michigan, FINANCE from control assessment lead, strate- Dearborn, and a Bachelor of Detroit, from vice president of inte- gic process design and controls de- grated marketing for Lovio George Business Administration with a partment. major in marketing from Davenport Communications and Design, Detroit. University, Dearborn. Stockwell Valeri LAW Daniel Bliss to PEOPLE GUIDELINES Dwayne Henderson to technology ser- Tilly Virchow Krause LLP, Southfield, partner, Howard vice group leader, SHW Group, from accountant. Also, Nicole Kuhn, and Howard Attor- Announcements are limited to Kirstyn Reinholm, Nick Theis and Berkley, from technology designer, neys PLLC, Royal management positions. Send Kevin Welch to senior accountant, Heapy Engineering, Dayton, Ohio. Oak, from found- submissions to Departments, from accountant. Also, Beth Pinterpe to associate and ing shareholder, Crain’s Detroit Business, 1155 senior project manager, from associ- Bliss McGlynn Gratiot Ave., Detroit, MI 48207- ate, senior architect, Integrated De- GOVERNMENT PC, Troy. Also, 2997, or send email to sign Solutions Inc., Troy; Troy Stock- Madland Miller Joseph Colaianne Gerald McGlynn [email protected]. well to engineering building to corporate coun- III to partner, Releases must contain the person’s information modeling coordinator, Heather Madland to vice president of sel, Huron-Clinton from founding name, new title, company, city in Metroparks, Brigh- from lead building information mod- deal origination, Huron Capital Part- shareholder, Bliss which the person will work, former eling drafter/Revit standards coordi- ners LLC, Detroit, from SPP Capital ton, from attorney Bliss McGlynn PC. and insurance ad- title, former company (if not nator, Wightman & Associates Inc., Partners LLC, San Francisco. Also, ministrator, Oak- promoted from within) and former Portage; and Joseph Valeri to project Mark Miller to vice president, transac- MANUFACTURING tion team, from senior associate, Glen- land County Wa- city in which the person worked. manager, from facilities project man- Leonard Fox to director of operations, coe Capital LLC, Birmingham. ter Resources Photos are welcome, but we cannot ager, Federal Reserve Bank of Chica- Commission, Wa- Integrated Manufacturing and Assem- guarantee they will be used. go, Detroit. Jeff Grad to senior accountant, Baker Colaianne terford Township. bly LLC, Detroit, from plant manager.

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August 12, 2013 CRAIN’S DETROIT BUSINESS Page 37 Troy: Ownership dispute goes on as construction continues ■ From Page 3 taking place. last support, which would be con- ownership of the property,” Grand/Sawka in 10 years if the If the Supreme Court refuses to The city asked the Michigan demnation, that we have to initiate Greene said. “Even if they achieve city hadn’t funded a transit center hear the case, or sides with Supreme Court to take up the case a if we don’t get relief in the courts.” ownership, their only real access project by that time. Grand/Sawka, the city would few weeks ago, but has also re- Meanwhile, Grand/Sakwa re- to the site is by way of our private Troy and neighboring Birming- have to make a good-faith offer on quested an assessment on the cently made its own offer to re- road. ham had secured several funding the property backed by an assess- property from an outside consul- solve the dispute with Troy, but “So we’ve been asking about commitments from federal and ment. tant, which is expected soon. The city officials haven’t responded to traffic loads, liability insurance, other sources for the center, with If the company rejects that of- assessment would be a precursor it other than by asking the and how they plan to control traf- a preliminary estimated cost of fer, Troy can take Grand/Sakwa to a possible condemnation case Supreme Court to take up the fic and parking so people don’t $8.4 million that the City Council to court and seek a judge’s order in court against Grand/Sakwa to court case, said Alan Greene, part- park on our property.” later reduced to about $6.4 mil- taking back possession of the cen- retake the site if the courts contin- ner at Dykema Gossett PLLC in De- Grand/Sakwa agreed to sell a lion. ter. ue to side with the developer. troit and attorney for Grand/Sak- portion of its 77-acre development But Grand/Sakwa contended The Supreme Court could con- “We expect a grand opening for wa. He declined to elaborate on the for $1 to develop the transit center, that the project didn’t reach full sider Troy’s request to appeal as the center to be around Sept. 1, as- offer. which broke ground last Novem- funding in time as the consent early as Sept. 17. suming no unforeseen circum- “It’s a proposal to resolve the ber. It transferred title to 2.7 acres judgment requires and sought to Chad Halcom: (313) 446-6796, stances,” said Troy City Attorney whole thing, but really there are to Troy in 2001, but the terms of the revert the property. Birmingham [email protected]. Twitter: Lori Grigg Bluhm. “And we have a other issues for us besides the sale called for the land to revert to withdrew from the project in 2011. @chadhalcom

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Page 38 CRAIN’S DETROIT BUSINESS August 12, 2013 Telemus: Client-centric Quicken pitches ARMs as rates creep up ■ From Page 3 BY JODY SHENN AND HEATHER PERLBERG justable mortgages and 30-year traditional loans to as marketing, technology and management companies and one BLOOMBERG NEWS the biggest since at least 2004. growth-oriented operations, said in Manchester, England, did not Nationally, rates on 30-year fixed mortgages have Chairman and Partner Gary Ran. pursue majority control in the Detroit-based Quicken Loans Inc., the online home climbed to 4.4 percent, from a near-record low 3.35 Being able to remain an inde- Telemus deal, Adolph said. lender that jumped last year to No. 3 in U.S. origina- percent in early May. Five-year ARMs climbed to 3.19 pendent firm “The golden rule in the partner- tions, is pitching more adjustable rate mortgages as percent, from 2.56 percent, according to Freddie Mac rising rates put an end to the refinancing boom. while tapping ship model is you never turn an surveys. The difference between the two reached 1.38 Focus’ exper- entrepreneur into an employee,” About 20 percent of Quicken applications are for ad- percentage points in the last week of June. tise and new in- he said. “We invest, ultimately, in justable rates, up from 5 percent earlier this year, said That gap is where Quicken sees an opportunity, vestment made the people who run the business.” Bob Walters, vice president of its capital markets Walters said. This company last week was offering the deal attrac- The companies aligned with Fo- group. The loans, which typically have fixed rates for five-year ARMs at 2.88 percent and 30-year fixed loans tive for Tele- cus collectively manage well over set periods before adjusting, are now a better option for 4.25 percent, according to its website. The pitch mus, he said. $60 billion in assets. Crain’s New than 30-year fixed mortgages for many borrowers, in- for the ARMs, which it calls “Amazing 5 Mortgages,” Telemus York Business reported 2011 rev- cluding people refinancing fixed loans, since they was anchored in the center of the lender’s home page. plans to use the enue of $179.6 million. They pro- probably won’t own a home for three decades, he said. new capital to vide wealth management services, “People on average move every seven to 10 years,” At the same time, “there are certain risks inher- Ran pursue acquisi- and benefit and investment con- said Walters, who is also Quicken’s chief economist. ent in ARMs that aren’t in fixed-rate” mortgages, tions of other registered invest- sulting services, to individuals, “All that security they’re paying for with a higher said Keith Gumbinger, vice president of HSH.com, a ment advisers in Michigan, among families, employers and institu- rate generally isn’t used.” Riverdale, N.J.-based mortgage data firm. Adjust- other things. tions. The deal between Telemus Mortgage lenders are looking for ways to keep ments are tied to short-term interest rate bench- “We want to be a consolidator. and Focus was more than seven borrowers coming as rising rates choke off demand, marks, which the Fed has held near zero since 2008. There are a lot of (registered in- years in the making. Focus first especially for refinancing, where applications have The trick for borrowers is whether they can move or vestment advisers) we want to talk approached Telemus in the fall of dropped 57 percent from this year’s high in May. refinance before those rates head back toward their to,” Ran said. 2005, Ran said, but Focus’ model Wells Fargo & Co., the biggest U.S. home lender, ex- historic levels, which exceeded 5 percent as recently Telemus is also looking for op- wasn’t fully developed at that pects volume to slide the rest of this year, and J.P. as 2007, or save enough in the meantime. portunities to add asset managers point, and Telemus was just start- Morgan Chase & Co. CEO Jamie Dimon predicted “a There are challenges of ARMs to borrowers, some of to improve its clients’ experience, ing out. dramatic reduction in profits.” who may have been turned down previously, to re- said Partner and Senior Adviser What finally spurred Telemus to Borrowing costs are climbing because of specula- spond to solicitations, Walters said. Quicken goes after Lyle Wolberg. Specific headcount agree to align with Focus? tion the Federal Reserve will scale back its effort to them with general advertising, and also has relation- increases aren’t yet known. Finding capital has been more stimulate the economy with low interest rates. The ships with loan servicers — firms that do billing and Ran, Wolberg and Partner/Se- and more difficult since 2008, Wol- impact on mortgage securities has been uneven, collections on existing mortgages — that don’t have nior Adviser Bob Stone, all for- berg said. widening the gap in June between five-year ad- the ability to originate new ones on their own, he said. mer Merrill Lynch and UBS Financial Telemus’ partners also got the Services executives, were among chance to watch how Focus devel- the founders of Telemus when it oped its business, Ran said. launched in 2005, with about $1.2 “It was an unproven formula; billion in assets under either ad- now it’s proven,” he said. Map: visement or in active manage- Focus’ investment in Telemus Plotting a cooperative course ment. shows not only a vote of confi- ■ From Page 1 Today, Telemus also counts dence in the local company itself, Mary Bakhaus and Joshua Levine but in the growth potential for the but those zones don’t necessarily line up with those A regional prosperity collaborative can receive as partners, employs 10 advisers, Midwest and Michigan, said David used by other departments. The same is true with up to $250,000 to create a five-year regional “prosper- and manages more than $2.2 bil- Sowerby, portfolio managerin the the environmental permitting process, which re- ity” economic development plan. lion in assets for high-net-worth Bloomfield Hills office of asset quires different permits from different departments The next level would be a regional prosperity individual clients and institutions, manager Loomis Sayles & Co. LP. with different service areas. council, which can receive up to $375,000 and would Wolberg said. The metro Detroit financial ser- Aligning those service areas will take time, but is have various economic development related agen- Telemus declined to release rev- vices and investment market is a fairly straightforward. Less so is the consolidation cies shared administrative services through a for- enue, but Ran said fees in the potential growth industry relative of the state’s 14 existing planning and development mal designated agreement. There would be an exec- wealth management industry av- to where it was 20 years ago, he regions in the state into 10 that also encompass vari- utive governing entity and a prioritized list of erage 1 percent. That would put said, adding that the market is ous other entities, such as the Michigan Works regional projects. revenue for the company at “more fragmented than not.” agencies. The most integrated level would be a regional around $23 million. “There’s growth potential via Donald Stypula, executive director of the Michigan prosperity board that can receive up to $500,000 and Focus CEO Rudy Adolph said acquisitions (and) via individuals Association of Regions, said eventually the 14 existing would have consolidated its regional metropolitan his group was attracted by Tele- wanting to do business with people planning and development regions in the state that planning organization board, state-designated re- mus’ position as one of the leading they see at the local grocery store make up his organization could consolidate and gional planning agency board, workforce develop- wealth management firms in the ... or run into at a baseball game, mirror the new 10-region map. The Southeast Michi- ment board and federally designated economic de- country, along with its client-cen- instead of someone who para- gan Council of Governments is one of those. velopment district. tric focus. chutes in from New York,” Sower- “It’s not going to happen overnight,” he said. “We In SEMCOG’s case, it is already the regional met- “We believe it’s a very scaleable by said. are trying to deal as best we can.” ropolitan planning organization, the state-designat- model,” he said. Sherri Welch: (313) 446-1694, The program is voluntary, but Stypula said most ed regional planning agency and the federally desig- Focus, which has invested in 25 [email protected]. Twitter: regions understand they can be stronger if they nated economic development district for the seven other independent, U.S. wealth @sherriwelch combine operations. counties it covers. But workforce, for example, is SEMCOG, for example, would grow under the new separate. system, encompassing two of the 10 new regions. It In the new nine-county region that SEMCOG would lose St. Clair County, but pick up Lenawee, would eventually represent, there are seven work- Jackson and Hillsdale counties, said SEMCOG Exec- force agencies. utive Director Paul Tait. Christine Quinn, director of Michigan’s Workforce SEMCOG also encompasses Wayne, Oakland, Ma- Development Agency, said there are 25 Michigan comb, Livingston, Monroe and Washtenaw counties. Works agencies in the state that will now begin to The Region II Planning Commission represents Jack- work more collaboratively. son, Lenawee and Hillsdale counties now, and She said she does not foresee any consolidation of would have to begin discussions with SEMCOG if those 25, but has been encouraging the directors of the two were to consolidate. Region II’s executive di- those agencies to start reaching out to nearby direc- BUILT TO LAST rector, Steve Duke, did not return a message seeking tors inside the new region with whom they may comment. have not previously had much interaction. The counties involved would also have to vote for There are about a half-dozen Michigan Works DEMO TOUR the change, because they pay dues to Region II and agencies that cover multiple counties, which over- Join Us for Giveaways, Hands on Demos and Great Prizes. would be switching to SEMCOG, Stypula said. lap into more than one of the new regions. In those The initiative provides a voluntary competitive instances, Quinn has told those directors to either grant process that aims to help regions create a com- work with both regions, or pick one or the other. FEATURING: To RSVP visit: mon economic vision. Tait said SEMCOG plans to apply for the regional Smarter Cart Challenge enichols.com/training-and-events Funding for the new $2.5 million program comes prosperity collaborative funding. from a proposal that was included in the 2014 budget Stypula said the changes will take a number of Maneuverability Road Course To contact Nichols, visit as part of Snyder’s executive office budget. years, in part because organizations need to com- Interactive Mobile Showroom enichols.com or call 800-442-0213 Snyder’s initiative sets up three increasingly inte- plete current grants and contracts. grated ways for how state-designated planning re- Tait agrees, but said it will take a few years before 8/21/2013 8/22/2013 gions or metropolitan planning organizations can everything is phased in. 12 PM - 4 PM 10 AM - 2 PM receive funding. “But I think we can make some pretty substantial Oakland University Michigan Coatings All three require participation from representa- strides in the next few months,” he said. 2200 Squirrel Rd 3761 Eastern tives from business and nonprofits, as well as repre- For more information, visit michigan.gov/ Rochester, MI 48309 Grand Rapids, MI 49508 sentatives from local and regional economic devel- regionalprosperity. opment organizations, workforce boards, adult Chris Gautz: (517) 403-4403, [email protected]. education providers and higher education. Twitter: @chrisgautz 20130812-NEWS--0039-NAT-CCI-CD_-- 8/9/2013 4:35 PM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 39 family fun at the Bistros: Small is big in Birmingham ballpark ■ From Page 3 be appealing to a lot of people,” “A chef is more than a cook; you * Chapman said. “I think that if you BIRMINGHAM BISTROS have to push the envelope. When I look at other trends in the nation, see someone on my coattails, I WEEKDAY VALUE PACK The city of Birmingham defines a formality has been toned down. It bistro as a restaurant with a full- move on to the next thing. I say makes sense that dining is follow- service kitchen, interior seating for bring it on.” ë833(55(6(59('7,&.(766 ing suit.” no more than 65 people and He said the region is finally She said another reason for the additional seating for outdoor catching on to European-style din- ë0($/6 +27'2*&+,36 3(36, ,  change is the higher education lev- dining. There are currently 15 ing, in which simple food served in el of diners and their desire to con- bistros open in Birmingham and a relaxed setting is most desirable. sume higher-quality ingredients. another is slated to open this year. “People want casual, approach- Here is a list of Birmingham bistros “Customers are focusing on what able food, and that is exactly what a arranged by date of their bistro JUST $600 a pig eats rather than the ways it license approval, not the opening bistro is supposed to be: a neighbor- has been manipulated to make it date. hood restaurant,” Polcyn said. taste better,” Chapman said. “This Ⅲ Elie’s (2007) “Food and restaurants in Birming- is not an overnight sensation. This ham have to be approachable now.” Ⅲ Salvatore Scallopini (2007) is part of a long-term trend.” Ⅲ Cosi (2007) But the success of Birmingham’s Ⅲ Bistro Joe’s (2007) Playing catch-up at restaurants has as much to do with their layout as their cuisine. Ⅲ Forest Grill (2007) Hubert Yaro says he took what Ⅲ Café Via (2007) he learned from his time in New Ⅲ Toast (2008) York City and Los Angeles and Size does matter Ⅲ Luxe Bar & Grill (2009) brought it to Birmingham when he Jeremy Sasson, owner of Town- Ⅲ Tallulah’s (2009) opened Commonwealth Café at 300 TUES, AUGUST 20 – THURS, AUGUSTST 2222 house Bistro at 180 Pierce St., says Ⅲ Bella Piatti (2010) Hamilton Row in 2010. the economies of scale are too un- Ⅲ Churchill’s (2011) But, he said, it took two years for balanced for large restaurants to Ⅲ Townhouse (2011) the public to catch on to the cuisine make it in downtown Birming- at the breakfast and lunch café. Ⅲ Social Kitchen & Bar (2012) ham. They are too big to fill in the “The first year was a struggle,” at Ⅲ Birmingham Sushi Cafe (2013) summer and have an even harder Yaro said. “But I think there was time staying busy in the winter. Ⅲ What Crepe? (2013) pent-up demand for locally sourced, And the market is showing as Ⅲ Market (2013), not yet open organic cuisine.” much. Since 2010, three of Birm- Now, it’s difficult to get a table That is going to be the difference.” MON, AUGUST 26 – THURS, AUGUST 29 ingham’s largest restaurants at the 44-seat restaurant without a Sasson said the trick to running closed their doors. wait. a successful restaurant is finding When Zazios was open, it had a “The challenge is that you might the balance between table-turns dining room that could seat not instantly get the crowd, and it and check averages. around 210. Bistros top out at 65 in- may take a little while,” Yaro said. “There is a break-even point for door seats, plus seasonal outdoor “There has been a movement in every chair in every restaurant, seating. food; it’s not revolutionary. It’s a from fine dining to fast casual,” he Sasson said the success shared back-to-basics movement that a lot said. *Restrictions apply. by bistros over their larger coun- of people are interested in.” terparts is partly attributed to Commonwealth is open for their ability to provide preferable Dressing down breakfast and lunch from 7:30 a.m. seating outside or near a window, to 4 p.m. Zack Sklar, owner of Social which gives them a competitive Kitchen, says another reason for the On the east side of Woodward advantage during nice weather. movement away from large-scale Avenue, Anthony Curtis, owner of “No one wants to sit 80 feet away restaurants is a change in customer Papa Joe’s Gourmet Market & Cater- from a window in a 10,000-square- tastes. ing LLC, spent just less than $1 mil- foot restaurant during the spring or lion to open Bistro Joe’s overlook- summer, Sasson said. “I wouldn’t ing his Papa Joe’s grocery store. open a restaurant in Birmingham Curtis said he and Jacques Van that didn’t have outdoor seating. People want Staden, the Michelin-rated execu- We are a four-season market; people “ tive chef of Bistro Joe’s, doubled want to experience all of them.” casual, approachable the sales projection they set for the When winter comes, Sasson restaurant’s first year to $4 million said, large restaurants suffer be- food, and that is from $2 million. cause there isn’t enough foot traf- “People here were ready for a fic to fill them. exactly what a bistro change, and they are showing it,” “This is not New York City, said Curtis, who obtained a bistro where bundles of people stand on is supposed to be. license in 2007 but took several the corners looking for restau- ” years to open the restaurant. “Typi- rants,” he said. “It’s not that big Brian Polcyn, Forest Grill cally the restaurants that have been restaurants can’t be successful opening in Birmingham, other than here; I just don’t think they are de- Italian and Mediterranean, are all signed to be successful.” The menu at Social Kitchen, at the same with typical stuff on the Sasson said diners, whether on a 225 E. Maple Road, is wide-rang- menus.” date or in a group, want to be in a ing, from burgers to falafel, but Business has been so good at room full of people and energy. nothing is priced above $28. Bistro Joe’s that Curtis recently “At 8,000 or 10,000 square feet, Sklar said he spent about $1 mil- brought in a professional wait-staff it’s hard to create a small-restau- lion opening Social Kitchen, the trainer to teach his employees to rant feel,” Sasson said. “How do largest of all of the bistros in Birm- handle the crush of customers. you make a big, half-empty room ingham at 5,000 square feet, includ- “We have filled up every single feel electric?” ing the patio and rooftop. day,” Curtis said. “It doesn’t mat- Sasson, who spent $500,000 to “The era of the white tablecloth ter what day it is.” open the 1,200-square-foot Town- is over,” Sklar said. “Even the big- Curtis said the 3,600-square-foot house Bistro in 2011, said its small- name chefs in New York are say- restaurant opened in late June and er footprint allows him to fill the ing the restaurants that make seats 65 inside and another 70 on restaurant more often during the money are their bistros, not the its outdoor patio. summer, subsidizing lower traffic three-star Michelin restaurants.” He said its biggest sellers are the in the winter. Brian Polcyn, owner of Forest spicy tuna tacushi at $11, salade He said Townhouse Bistro turns Grill, at 735 Forest Ave., agrees. nicoise at $16, and the lamb sand- about four tables per night during Polcyn and Nick Janutol, Pol- wich at $16. the spring and summer months, cyn’s new chef de cuisine, recently “People are ready for a change,” about an hour and 10 minutes per dressed down Forest Grill to make Curtis said. “I’ve had people come meal. it more appealing to casual diners. to me that travel the world and say But “the real question is how Gone are the white tablecloths that finally restaurants in Michi- much money a single seat gener- and the black-clad servers, a prod- gan are catching up to the ones in ates over the course of a year,” he uct of the dining public’s changing New York and Los Angeles.” said. “What kind of dollars-per-seat taste. Nathan Skid: (313) 446-1654, does a bistro gross versus a large “We are 5 years old this August. [email protected]. Twitter: restaurant with more overhead? You have to evolve,” Polcyn said. @NateSkid 20130812-NEWS--0040-NAT-CCI-CD_-- 8/9/2013 4:31 PM Page 1

Page 40 CRAIN’S DETROIT BUSINESS August 12, 2013 Houses: Inventory is down, prices up in, of all places, Detroit ■ From Page 3 home price at $9,734, reported Real- Comp, the Michigan Multiple List- ing Service. But even that doesn’t show the Loss of state tax credit hurts redevelopment true price inflation in tiny pockets of the city. BY AMANDA LEWAN projects such as the Westin Book Cadillac Detroit “I ended up having to put $125,000 into my In June, when Detroit’s median SPECIAL TO CRAIN’S DETROIT BUSINESS hotel and the A. Alfred Taubman Center for Design house,” Cooley said. “It needed all new win- home price hit $10,500 — the highest Education, formerly the Argonaut building, as dows, electric and air conditioning. The credit It’s been nearly two years since the state’s level since 2007 — Midtown clocked well as numerous local homes. was definitely an incentive for me to capture historic preservation tax credit was cut from in at $150,000, downtown at $265,000, The largest investments by value occurred in some of the costs back.” the budget, and the loss of the incentive has Corktown/Hubbard Farms at commercial projects, while the largest number In place of the state historic tax credit, many hurt residential and commercial redevelop- $104,000 and New Center area at of investments came on the residential side, ac- commercial developers are seeking loans and ment in Detroit, where almost 19,000 homes are $95,000. cording to Robbert McKay, a historic architect grants from the state’s Community Revitaliza- estimated to head into foreclosure this year. But according to Trulia, home with the State Historic Preservation Office. Overall, tion Program, which targets revitalization ef- “The loss of the credit made real estate de- prices are still very low. “Prices are he said, $42.3 million in state historic tax credits forts in areas with historically declining values. velopment and redevelopment more difficult most undervalued today in Las Ve- were approved, helping to leverage $122.7 mil- “The Community Revitalization Program in an already challenging market,” said David gas and Detroit, even after their lion in federal credits for local developers. picks up the projects that would have used the Howell, managing director for Legacy Advisors price gains in the past year,” read “It was an incredibly popular program,” historic tax credit,” says Richard Hosey, a LLC, a Detroit-based real estate advisory firm. the report on spotting bubble mar- McKay said. “The program has helped not partner in Capitol Park Partnership LLC, which is The credit had incentivized homeowners kets. only the commercial core but also encouraged part of the redevelopment of Detroit’s down- and commercial developers to rehabilitate In fact, it’s still 70 percent cheap- substantial investment in personal and resi- town Capitol Park. “The state wanted to have real estate in Detroit’s historic districts. For er to buy in the Motor City than to dential properties, and that was really unique much better accountability with projects, and commercial developers, it paired the federal rent, making Detroit the nation’s to the state credit.” they achieved it. They are at the table day by historic tax credit of up to 20 percent of a pro- top city where “buying a home is a Ryan Cooley, owner of Detroit-based O’Con- day with our projects.” ject’s cost with an additional 5 percent from no-brainer,” according to the real nor Real Estate, sees residential renovation ef- However, the program offers no relief to the state. For homeowners, the state tax credit estate website. forts drying up in the city since the state his- homeowners rehabbing residential properties. could mean a refund of up to 25 percent of Pushing prices higher is a severe toric tax credit disappeared. That is where there is a gap left in the market. qualified renovation expenses. lack of inventory: There were just He used the credit in 2005 to renovate his “For residential property, it would be a real- During the state tax credit’s shelf life — 2,131 properties for sale in June, a home in Detroit’s Brush Park neighborhood. ly big help to bring the credit back,” Cooley from January 1999 through December 2011 — 34.2 percent decline from the previ- But when he looked at rehabbing a second said. “It’s so hard to get construction financ- nearly 200 projects in the city of Detroit were ous year, according to RealComp. property, the repair costs were too high with- ing in the city, and there are so many houses approved. It played a role in such high-level That’s primarily because the tide out the benefit of the tax credit. that could benefit from rehabilitation.” of foreclosures is slowing. The num- ber of homes in foreclosure dropped still digging out of a deep trough: area, for example, posted just 30 own a pizzeria, I wanted to be able 50 percent in June, compared to last “Although prices continue to re- MEDIAN WELL days in June. to make pizza in my backyard.” year, to just 448, according to Realty- bound, the housing market is far “There’s no haggling room,” said He knew he wanted to stay in the June median home prices for Trac, an online marketer of these from healthy. Metro Detroit’s va- Detroit overall compared with Tom Ball, a realtor with Real Estate area even though the historic dis- homes. And properties in foreclo- cancy rate remains the highest, by sections of the city: One. “Last year, I listed a property trict is one of the city’s tightest real sure made up 12.6 percent of the on- far, of all large metros in the U.S.” Ⅲ Detroit: $10,500 on Burns Street in Indian Village estate markets. So when a complete- market inventory that month, ac- Much of the limited improve- for $174,900. It sold for $150,000. This ly renovated four-bedroom house Ⅲ Midtown: $150,000 cording to RealComp. ment has been fueled by an em- year, I listed another similar house was listed for $139,900, he jumped. Ⅲ Downtown: $265,000 “This is the closest I’ve seen to a ployer-incentive program for on Burns for $165,000. It sold for Mancini just wishes the re- Ⅲ Corktown/Hubbard Farms: normal real estate market, what homebuyers and renters in central $197,000. It was on the market for 40 bound he’s enjoying would spread $104,000 you would see in neighborhoods such as Midtown, days.” farther out into the rest of his city. Ⅲ New Center: $95,000 another large downtown, Corktown and Wood- Those sales were both tradition- He recognizes that the rising city,” said Ryan bridge. Through the Live Down- al mortgages, but for many buyers, prices are only happening in small Cooley, owner of town and Live Midtown programs, in-ready condition, a rarity in many finding financing is a struggle. Set- pockets and that just blocks away O’Connor Real Es- administered by Midtown Detroit of Detroit’s neighborhoods. ting aside tight credit markets, the from his house are burned-out tate in Cork- Inc., participating businesses will “I was prepared to pay a little issue in Detroit is that few lenders shells and overgrown lots. That his town. “This is lend employees $20,000 for a down more,” Bowman said. “I don’t have will write mortgages for less than city is not recovering equally. the busiest we’ve payment — and forgive the loan if the time or expertise to do a full $50,000 — a price many homes still “As somebody who has lived in ever been. It’s they stay for at least five years. renovation. And living in a state of fall far below — or for homes that this city for 20 years, I love this just tough be- “In these incentive areas, prices constant renovation has no appeal need significant rehabilitation. city,” he said. “There are rebounds cause of the lack to me.” Cooley have pretty much doubled — or That means cash is king, and 56 in certain neighborhoods. But it of inventory; we the appraisal values, at least — in Less than six months later, the percent of all sales in Detroit dur- has a lot of warts, and there are have a lot of frustrated buyers. … the last 12-18 months,” Cooley said. median home price for her ZIP ing June were of the cold-hard va- people who are still struggling. Even though everybody is much Buying in Detroit was never a code, which encompasses prime riety, according to RealtyTrac. The revitalization is too limited. I busier than they have been, sales hard sell for Bowman. As an asso- Corktown and a slice of Hubbard The lack of financing is “stalling really wish there was some way to are up just a tiny bit from last year.” ciate professor at the University of Farms, is now $104,000. the markets,” said David Leclerc, send this citywide.” Cooley’s phone rings daily with Michigan School of Public Health, she Quality single-family homes such manager of lending at Detroit-based There may be good news coming. new residents looking to buy in De- wanted to be where her research as those are fewer in these core Michigan Lending Solutions. “Unfortu- As prices in these first-wave neigh- troit — and they are no longer just and work could make a difference. neighborhoods. There is almost no nately, the only product out there borhoods are rising, other areas investors looking to snap up the “There are 200,000 people who inventory for sale, and when some- that is really viable is FHA 203k are acting as release valves. Cooley, city’s infamous $1,000 homes. Most- are underinsured here; Detroit has thing in good condition is listed, it loan. However, it is really expen- Leclerc and Ball are all seeing in- ly, he said, they are people from out the second-worst health status of is snapped up almost immediately. sive, and many lenders don’t want creased interest in Grandmont of town who are looking to move. any major metro in the U.S.,” she Cooley, for example, recently to offer it because it is really te- Rosedale, Palmer Park, Boston Edi- “I’m dealing with a lot of people explained. “So I can do a lot more showed a house in Indian Village dious. We’ve been trying for two son and the southwest side. who are moving here because they in a city like Detroit than in Ann listed for more than $200,000. The years to develop our own program.” “Grandmont Rosedale is seeing want to move here,” he said. “And Arbor. I wanted to be there and get first viewer on the first day bought Buyers — such as Bowman, who great escalation of values — 15 per- that kind of demand, well, I’ve nev- an idea on a day-to-day basis of the house for full price. was financed by Quicken Loans — cent over the past year,” Leclerc er had it in the eight years I’ve what people need and how to help. With the lower inventory and who can get a mortgage still face said. “Palmer Park. Boston Edison. been doing real estate.” That was a key motivator.” slowing foreclosures, buyers are one more hurdle: appraisal. Home There are phenomenal deals to be The number of occupied housing She began house hunting last De- facing bidding wars — and all-cash prices are still so depressed that it had. Same with East English Vil- units — a measure of how many cember and was initially shocked deals — to get into them. can be hard to get the valuation to lage.” people are moving into an area — by the home prices. “Clients ask us all the time, match what people are actually Ball is seeing activity in those has risen in these few pockets of the “I would scan the lists from Tru- ‘Should I be overbidding?’ ” said willing to pay. areas as well as Sherwood Forest urban core. In downtown, home to lia and Zillow every day, and for the Dan Elsea, president of brokerage But, Leclerc explained, it’s not and even farther out. many of Detroit’s new tech work- first few weeks, and I was just services for Real Estate One, which just Detroit. He is finding appraisal “I don’t know if it’s the hipster ers, the rate of occupied homes was laughing,” she said. “I could not his grandfather started in Detroit issues all over the metro area. effect, but people are starting to up 5.6 percent in March, to 3,667 fathom even thinking of buying a in 1929. “It’s not scientific, but the “Last month, I had a problem in buy at Michigan Avenue and I-96,” households, reported Jed Kolko, house for under $30,000.” rule of thumb we tell them is, Royal Oak and Dearborn,” he said. he said. “They are buying the far chief economist for Trulia. After three months, she finally ‘What was the house worth at “The issue in Detroit is maybe a lit- southwest. The housing stock is In Midtown, the rate ticked up 2.6 settled for a 1,700-square-foot home peak?’ If you’re still buying below tle greater than in other areas.” fantastic; there are great houses percent, to 7,166 households; and in built in 1895. She eventually paid peak, you’re probably still OK.” That wasn’t an issue for Dave for not a lot of money. the ZIP code that primarily encom- $80,000 and expects to invest an- The metro area’s average time on Mancini, owner of Supino Pizzeria “People want to be in the city of passes Corktown and a tiny part of other $60,000 in updates. market is now just 66 days — on par in Eastern Market. He recently Detroit. They see it turning Hubbard Farms, occupied housing She saw the house as a deal — de- with the six to eight weeks the Na- traded up from a Corktown condo around. They are being really at- units are up 0.4 percent, to 2,234. spite its sale price being significant- tional Association of Realtors calls a to a single-family home in the tracted with what’s happening.” “The fact that Midtown had popu- ly above the area’s median price of normal, healthy market — but it neighborhood. Amy Haimerl: (313) 446-0416, lation growth, that’s a big deal,” just less than $25,000 at the time — can be even quicker in the city’s hot “I wanted an actual house with a [email protected]. Twitter: Kolko said. But, he added, things are because of its character and move- neighborhoods. The Corktown backyard,” said Mancini. “Since I @haimerlad 20130812-NEWS--0041-NAT-CCI-CD_-- 8/9/2013 5:05 PM Page 1

August 12, 2013 CRAIN’S DETROIT BUSINESS Page 41

www.crainsdetroit.com Snyder makes plans for post-bankrupt Detroit EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] BY DUSTIN WALSH What is officially called the Re- makeup is unknown at this time, right team in place and lay the ASSOCIATE PUBLISHER Marla Wise, (313) 446- 6032 or [email protected] CRAIN’S DETROIT BUSINESS ceivership Transition Advisory but will rely on economist projec- right groundwork, we can get this EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Board would consist of the state tions of city tax revenues to help resolved quickly,” he said. 0460 or [email protected] TRAVERSE CITY — In a wide- MANAGING EDITOR Jennette Smith, (313) 446- treasurer or his or her designee generate budgets. Snyder said the review of the 1622 or [email protected] ranging interview with Crain’s at and the director of the Department Snyder also said he was im- city’s assets, including the deci- MANAGER, DIGITAL CONTENT STRATEGY Nancy the Center for Automotive Research Hanus, (313) 446-1621 or [email protected] of Technology, Management and pressed with the write-in voter sion to review art of the Detroit In- MANAGING EDITOR/CUSTOM AND SPECIAL Management Briefing Seminars Budget or his or her designee. The turnout in the city of Detroit’s pri- stitute of Arts, is overblown and PROJECTS Daniel Duggan, (313) 446-0414 or last week, Gov. Rick Snyder [email protected] governor can also appoint to the mary mayoral election — although common practice in any bankrupt- SENIOR EDITOR/DESIGN Bob Allen, (313) 446- opined on Detroit’s bankruptcy board one or more people with rel- he remains agnostic on the candi- cy filing. 0344 or [email protected] and the results of the city’s may- SENIOR EDITOR Gary Piatek, (313) 446-0357 or evant professional experience, in- dates. “It (the review) is just begin- [email protected] oral primary election. cluding one or more residents of “That’s the message here, to say ning, and we shouldn’t really focus WEB EDITOR Kristin Bull, (313) 446-1608 or Snyder said [email protected] the city. that that many people would do on the assets of one organization,” WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- the state is in The board, which serves at the write-ins is impressive,” he said. he said. “The city gets to present 8158 or [email protected] early-stage plan- DATA EDITOR Brianna Reilly, (313) 446-0418, pleasure of the governor, can re- “That’s very difficult to do.” its plan (for exit), and it has to [email protected] ning for a post- quire the city to provide monthly know its assets and liabilities, just WEB PRODUCER Norman Witte III, (313) 446- bankrupt De- 6059, [email protected] cash-flow projections and approve like any bankruptcy.” EDITORIAL SUPPORT (313) 446-0419; YahNica troit, including proposed budgets and budget On financial markets Snyder said while the filing has Crawford, (313) 446-0329 the creation of amendments, among other things. Regarding Battle Creek’s de- further tarnished Detroit’s percep- NEWSROOM (313) 446-0329, FAX (313) 446- an oversight 1687 TIP LINE (313) 446-6766 The governor can also receive a layed municipal bond sale this tion, especially in the national and REPORTERS committee. report from that board at a time of week — the delay was affected by international media, it provides an Jay Greene, senior reporter: Covers health care, The state is his choosing, and if that report Detroit’s filing — Snyder said he opportunity to talk about the city’s insurance, energy utilities and the environment. looking to New shows the financial conditions of expects these delays to continue positive aspects. (313) 446-0325 or [email protected] Snyder Amy Haimerl, entrepreneurship editor: Covers York City’s the city have not improved, the throughout the state and the Mid- “This is an opportunity to talk entrepreneurship, second-stage companies and brush with bankruptcy in 1975, he small business. (313) 446-0416 or governor can appoint a new emer- west as financial markets get a about the facts,” he said. “That’s [email protected] said. That city avoided bankruptcy gency manager. grip on the Chapter 9 filing’s ripple where we can talk about the auto Chad Halcom: Covers litigation, higher education, with the help of a state-facilitated non-automotive manufacturing, defense “People don’t know that the effects. industry … and talk about the contracting and Oakland and Macomb counties. committee of business leaders MAC was around for 20 years, and Snyder said he’s pleased with great things companies are doing (313) 446-6796 or [email protected] called the Municipal Assistance Corp. Tom Henderson: Covers banking, finance, it shows how we can have over- the timeline U.S. Bankruptcy in the city.” technology and biotechnology. (313) 446-0337 or The committee — which Snyder sight (post-bankruptcy),” he said. Judge Steven Rhodes has laid out Dustin Walsh: (313) 446-6042, [email protected] said will be established next sum- Kirk Pinho: Covers real estate and the city of “I don’t want people to think we’ll for getting Detroit out of bankrupt- [email protected]. Twitter: Detroit. (313) 446-0412 or [email protected] mer — is permitted under PA 436 be around for 20 years, but this cy in the fall of 2014. @dustinewalsh Bill Shea, enterprise editor: Covers media, and the consent agreement the advertising and marketing, the business of sports, will take place.” “The judge is moving fairly fast, Crain’s reporter Chris Gautz and transportation. (313) 446-1626 or state has with the city. Snyder said the committee’s and it shows that if you have the contributed to this report. [email protected] Nathan Skid, multimedia editor: Also covers the food industry and entertainment. (313) 446-1654, [email protected] Dustin Walsh: Covers the business of law, auto suppliers and steel. (313) 446-6042 or [email protected] Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or Election: Write-in’s done; time for final 2 to retool [email protected] LANSING BUREAU ■ From Page 1 Chris Gautz: Covers business issues at the Capitol and utilities. (517) 403-4403 or [email protected] Strategy shifts While Duggan has widespread Media blitz? Napoleon, 57, has been Wayne ADVERTISING financial support and endorse- County sheriff since 2009. He was SALES INQUIRIES (313) 446-6052; FAX (313) Napoleon, who came in a dis- ments from the business commu- Both candidates will spend con- assistant Wayne County executive 393-0997 tant second place to write-in can- nity, including the Detroit Regional siderable amounts from their cam- from 2004-09, vice president of SALES MANAGER Tammy Rokowski didate Duggan in Tuesday’s pri- paign war chests for advertising SENIOR ACCOUNT EXECUTIVE: Matthew J. Chamber and corporate leaders, business development and out- Langan mary, “needs to be prepared to Napoleon isn’t “a little sister of the on television and radio, although reach for Capri Capital Partners LLC ADVERTISING SALES Christine Galasso, Jeff talk to labor and the corporate poor, either,” Foster said. political experts disagree about from 2001-04, and Detroit police Lasser, Dale Smolinski, Sarah Stachowicz community that support him and when that should begin in earnest. CLASSIFIED SALES Angela Schutte, manager, Napoleon has a valuable ally — chief from 1995-2001. (313)-446-6051 say, ‘I need checks now,’ ” said “and that is Greg Mathis and his Some expect the campaigns to But Peckinpaugh said Napo- GENERAL MANAGER/BUSINESS DEVELOPMENT Eric Foster, president of Troy- network,” Hood said, referring to wait until around Labor Day to leon’s advertising will focus on AND EVENTS Elizabeth Buscher DIRECTOR, INTEGRATED MARKETING Eric Cedo based political consulting firm the former Wayne County Circuit start making significant ad buys, Napoleon’s message. while others say they should start SALES PROMOTION MANAGER Karin Pitrone Foster McCollum White & Associates, Court judge and host of the syndi- “We have no plans to focus on EVENTS MANAGER Kacey Anderson which advised unsuccessful may- cated “Judge Mathis” television advertising immediately. the other candidate,” Peckinpaugh SENIOR PRODUCER FOR DIGITAL/ONLINE oral candidate Fred Durhal Jr. in show. Duggan’s advertising needs to said. “We want to focus on Benny’s PRODUCTS Pierrette Dagg the campaign. “be aggressive now and finish this MARKETING ARTIST Sylvia Kolaski Mathis has the ability to court vision on the city and how we can SALES SUPPORT Suzanne Janik, YahNica Crawford As for Duggan, the former Detroit out-of-state donors for Napoleon’s off,” Foster said. increase our broader coalition of PRODUCTION MANAGER Wendy Kobylarz Medical Center president and CEO campaign, Hood said. Mathis, who “Wear Benny out. Force them to supporters that we started.” PRODUCTION SUPERVISOR Larry Williams can ride momentum from Tues- could not be reached for comment spend everything they got right How will the mayoral ad blitz CUSTOMER SERVICE day’s election into November but is Friday morning, also contributed now so they have no more money compare to other recent cam- MAIN NUMBER: Call (877) 824-9374 or write expected to shift from the primary left,” he said. [email protected] $3,000 to Napoleon’s candidate paigns? SUBSCRIPTIONS $59 one year, $98 two years. election voter education on the committee, as did his wife, Linda, Napoleon’s campaign also According to the Michigan Cam- Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state write-in process to his specific poli- according to campaign finance re- should be aggressive with his ad- paign Finance Network, a Lansing- rate for surface mail. Call (313) 446-0450 or cy agenda. ports filed last month. vertising after falling at least 16,000 based campaign finance watchdog, (877) 824-9374. Duggan’s efforts to raise more votes behind Duggan on Tuesday, SINGLE COPIES: (877) 824-9374 Napoleon raised $606,000, and PACs for six ballot issues raised REPRINTS: (800) 290-5460, ext. 125; campaign cash will be “a bit sim- Detroit Forward raised about political observers said. more than $154 million combined (717) 505-9701, ext. 125; or lindsay.wilson pler” post-primary now that he has “Napoleon has to go hard or go @theygsgroup.com $70,000, during the pre-primary in 2012. PACs flooded Michigan air- TO FIND A DATE A STORY WAS PUBLISHED: “evidence of Detroiters’ over- election reporting period, which home,” Hood said. “He’s got to waves and mailboxes with ads and (313) 446-0406 or e-mail [email protected] whelming support,” said his cam- ran Jan. 1 until July 21. Duggan highlight his platform, and then he CRAIN’S DETROIT BUSINESS IS PUBLISHED BY direct-mail pieces in 2012 both sup- CRAIN COMMUNICATIONS INC. paign manager, Bryan Barnhill. and Turnaround Detroit reported has to go nuclear on Duggan.” porting and decrying several CHAIRMAN Keith E. Crain “We are going to be aggressively raising about $2.4 million before Expect the statewide ballot proposals. But PRESIDENT Rance Crain approaching all potential donors, Napoleon camp TREASURER Mary Kay Crain the primary election. nothing close to the $25 million Executive Vice President/Operations and the only selective criteria we Bryan Peckinpaugh, Napoleon’s to look for any- mark is expected on the mayoral William A. Morrow thing negative Executive Vice President/Director of Strategic will have is people whose dona- spokesman, said the campaign will race spending. Operations Chris Crain tions won’t raise any red flags for roll out a more detailed economic to highlight Adrian Hemond, partner at Vice President/Production & Manufacturing within Duggan’s Dave Kamis our organization.” development plan in the coming Grassroots Midwest LLC, a Lansing- Vice President/Chief Information Officer Duggan finished the primary un- weeks as a selling point for resume at the based political organizing and ad- Paul Dalpiaz officially with 44,395 votes (45.9 per- prospective donors. DMC and in vocacy firm, said he does not ex- Vice President/Chief Human Resources Officer Margee Kaczmarek cent), setting up a November face- Barnhill said Duggan’s cam- Wayne County pect the same kind of advertising G.D. Crain Jr. Founder (1885-1973) off with Napoleon. Napoleon paign will focus on how he will turn government, onslaught because the candidates Mrs. G.D. Crain Jr. Chairman (1911-1996) finished second with 28,352 votes Hood said. and the PACs supporting them EDITORIAL & BUSINESS OFFICES: the city around as mayor and “who Hood 1155 Gratiot Ave., Detroit MI 48207-2732; (29.6 percent). has the best plan for Detroit.” Duggan, 55, will raise only a small fraction of (313) 446-6000 was president and CEO of the DMC Cable address: TWX 248-221-5122 AUTNEW DET Napoleon and the political ac- Barnhill said he has created a what the ballot committees raised. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is tion committee supporting him, week-by-week campaign strategy, from 2004-12. He was Wayne County “There isn’t going to be a gazil- published weekly, except for a special issue the third week of August, and no issue the third week of Detroit Forward, need to raise $1.50 but he declined to provide prosecutor from 2001-03, co-chair- lion dollars in PAC funds for adver- December by Crain Communications Inc. at 1155 for every $1 Duggan and the PAC specifics on what it entails. man of the Detroit-Wayne County tising” as in 2012, said Harvey Rabi- Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing supporting him, Turnaround Detroit, “Whatever they were doing, Stadium Authority from 1996-2002, nowitz, owner of Bloomfield offices. POSTMASTER: Send address changes to deputy Wayne County executive CRAIN’S DETROIT BUSINESS, Circulation do to counteract Duggan’s momen- they should continue doing be- Hills-based media buying agency Department, P.O. Box 07925, Detroit, MI 48207- tum and fundraising lead heading cause it works,” said Joe DiSano, from 1987 from 1987-2000, and gener- Media … Period Inc. 9732. GST # 136760444. Printed in U.S.A. al manager of the Suburban Mobility Entire contents copyright 2013 by Crain into the general election, said De- CEO of the Lansing-based political Kirk Pinho: (313) 446-0412, Communications Inc. All rights reserved. troit political consultant Steve advocacy firm Main Street Strate- Authority for Regional Transportation [email protected]. Twitter: Reproduction or use of editorial content in any Hood. gies LLC. from 1992-95. @kirkpinhoCDB manner without permission is strictly prohibited. 20130812-NEWS--0042-NAT-CCI-CD_-- 8/9/2013 4:30 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS August 12, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 3-9

unique way,” said Compass founder Daniel Sillman. Meritor names ‘EAT ’EM UP’ PHOTO A WINNER AND A TRIBUTE The event at the Crowdfunding Peter Catalanotte Townsend Hotel is expected Jr.’s photo, “Eat to attract about 400 people Ivor Evans ’Em Up, Tigers,” and include speakers such the winner in Week takes tactics … as Joe Dumars, president of 5 of the Summer in basketball operations for chairman, CEO the City photo the Detroit Pistons. Bernie contest, is a tribute Smilovitz, sports anchor for roy-based commer- to two homeless beer doesn’t hurt WDIV-Channel 4, will emcee cial truck supplier men, James Van Horn and Dreadlock the event, and Les Gold of ca- T Meritor Inc. named , who recently Ivor Evans as chairman of Mike ble’s “Hardcore Pawn” will were killed by a hit- tephen Roginson talks that’s how we’ve been oper- host a live auction. the board, CEO and presi- about crowdfunding ating this whole time.” and-run driver. Both were known by Tigers fans, and Van Tickets range from $750 dent. Evans, 70, held the po- Horn in particular was often seen outside Comerica Park S the way some people for the event plus a private sitions on an interim basis chanting “Eat ’Em Up, Tigers.” Additionally, Catalanotte said talk about their lifelong ca- Michigan football to have VIP reception to $100 for a since May after the depar- he dedicated the photo to a friend who was killed in a hit- reers. strolling dinner for atten- ture of former CEO Charles and-run accident in 2001. Roginson, along with Ja- new radio voice in 2014 dees under age 35. “Chip” McClure. Catalanotte’s image was chosen by the three judges this son Williams and Anthony The University of Michigan Find details and tickets at week without knowledge of this personal story. They said O’Donnell, met their $25,800 they loved the symbolism and perspective. said it will work with its AllStarHoopsFestival.com. crowdfunding goal through ON THE MOVE His prize is a set of tickets for tours by D:hive Detroit. He indiegogo.com to open Batch third-party broadcast rights Ⅲ The Miami-based John also is eligible for one of the two grand prizes, to be awarded Brewing Co. in a 100-year-old firm, IMG Audio, to find a re- More classics on the roads S. and James to the overall Summer in the City photo contest winner after building at 1444 Michigan placement for radio voice Labor Day, when the contest ends. This week’s prize: Two The 2013 Woodward Dream L. Knight Ave. in Corktown. Frank Beckmann, who is re- Serta gel memory foam contour pillows. To enter the contest Cruise officially takes place Foundation They say they still need tiring after the 2013 football or to see the photos, go to crainsdetroit.com/photocontest. Saturday, but gorgeous named Hud- about $75,000 to finish the season. Entries are due by noon Monday. summer weather and new son-Webber project. But $25,800 is noth- IMG said on Friday that legislation in Michigan Foundation which in June became a ing to scoff at. Beckmann was calling it Ⅲ Seventy percent of have classics rolling down Vice Presi- subsidiary of San Diego- Roginson, who spent quits after broadcasting UM Allen Park voters cast M-1 all this month. Enthusi- dent Katy based Encore Capital Group eight years as an experien- football games since 1981. votes for a tax proposal to asts in lawn chairs and im- Locker its Inc., will lay off 110 people, tial marketer for Vitamin Wa- Beckmann, who apolo- maintain public safety ser- Detroit promptu car shows line the new Detroit including 73 in Macomb ter, says that to be success- gized in May for a Locker vices, and Flint-area voters road on weekend evenings, program di- County, to eliminate redun- ful, you have to treat your News column rebuked by narrowed the field for a especially through the com- rector, effective Sept. 16. dant positions. crowdfunding effort like a the university and others as Michigan House of Represen- munities of Berkley, Royal Locker, 39, succeeds Rishi Ⅲ Southfield military ve- real 40-hour-a-week job. racially offensive, calls tatives seat to Democrat Phil Oak and Birmingham. Jaitly, who left to lead hicle and energy systems “You have to plan crowd- Michigan football games on Phelps and Republican Don A recent change to Michi- Twitter’s efforts in India. engineering firm Badenoch funding as a campaign. It’s the school’s flagship sta- Pfeiffer, who will face off in gan law allows cars regis- Ⅲ Michael Mazzeo, a pro- LLC received $1.4 million in not just making a video, tion, WWJ 950. a special general election in tered as historic to be dri- fessor and former chairman federal funds for a more putting it on a platform and Beckmann, who began November, AP reported. ven without restriction of the department of finance cost-effective form of vehi- posting a couple of com- his radio career in 1969, will Ⅲ Gov. Rick Snyder con- during August. Before the at Michigan State University’s cle blast testing and a new ments,” he said. “You have continue to host his daily firmed the findings of a state change, historic-plated ve- Eli Broad College of Business, matching grant via the to build a broader strategy weekday talk show on WJR review team that the Pontiac hicles were limited to dri- was named dean at the Oak- Michigan Strategic Fund. and know who your advo- 760 AM, which he has done Public Schools are in a finan- ving to and from club land University School of Busi- Ⅲ Ann Arbor-based book cates are and know your net- since 2004, IMG said. cial emergency, which could ness Administration. printer Edwards Brothers Mal- work and its limitations.” He replaced Bob Ufer as events, in parades and lead to the appointment of Ⅲ Royal Oak-based Michi- loy Inc. said a need to invest Roginson started the way UM’s play-by-play announc- while participating in other an emergency manager. The gan Youth Arts named Mari- in digital prompted the sale many would-be brewers er in 1981. sanctioned collector-car ac- district has until Aug. 13 to anne Dorais as executive di- of its State Street plant. did: Making beer at home. tivities. request a hearing. rector. Dorais, 48, was Equipment will be moved to “My education is similar to Crain’s sibling publica- Ⅲ The Atlantic Coast Con- Sports gala aids charities foundation and govern- plants in Ann Arbor and a vast majority of home tion for auto enthusiasts, ference signed a six-year ment relations officer for Lillington, N.C. The compa- brewers, searching message Business, nonprofit and AutoWeek, plans extensive deal to play in a college foot- the Detroit Symphony Orches- ny cut 47 of about 600 Ann boards and having friends sports leaders plan a 2013 Woodward Dream Cruise ball bowl game at Ford Field, tra. She succeeds Candy Arbor employees and plans over for tastings. You start Michigan All Star Hoops Festi- coverage starting Thurs- the Detroit Lions, organizers Nguyen Smirnow, who left to to cut another 40-50 jobs. with a kit, then work your val Gala on Aug. 23 to raise day at AutoWeek.com/ of the bowl, announced. become business manager way up to 10-gallon all-grain money for Gleaners Commu- woodward-dream-cruise. Ⅲ A federal judge refused and registrar at the Colburn batches.” nity Food Bank of Southeast- Included will be looks at to acquit or grant new tri- School in Los Angeles. OTHER NEWS Renovations are well un- ern Michigan, the Children’s coverage from past years als to former Detroit Mayor Ⅲ Patricia Mooradian, pres- derway at the fledgling Hospital of Michigan Founda- and news updates. There Ⅲ Metro Detroit’s new Kwame Kilpatrick, his father, ident of The Henry Ford in brewery. If all goes accord- tion and Detroit PAL. will be Dream Cruise photos, Regional Transit Authority Bernard Kilpatrick, and for- Dearborn, was named to the ing to plan, Batch Brewing The athlete business a bit of Woodward Dream said it offered its CEO job mer city contractor Bobby Central Michigan University will open by the end of the management firm Compass Cruise history and recom- to John Hertel, long instru- Ferguson, the AP reported. board of trustees. She re- year, Roginson said. Management Group LLC is mended hotels and restau- mental in the creation of Ⅲ State Rep. Phil places Patricia Maryland, who “That might be a little ag- planning the event as an ef- rants near Woodward Av- many of the area’s ongoing Cavanagh, D-Redford Town- resigned, in an eight-year gressive,” he said, “but fort to “give back in a enue. major transit projects. Her- ship, said he is “strongly term expiring Dec. 31, 2018. tel has been general manag- considering” running to re- er of the Suburban Mobility place Wayne County Execu- Authority for Regional Trans- tive Robert Ficano next year. COMPANY NEWS portation bus system since Ⅲ Detroit City Council in- Ⅲ H.W. Kaufman Financial 2010. cumbents fared well, as did Group, a Farmington Hills- Ⅲ Farid Fata, founder of former state representa- BEST FROM THE BLOGS based specialty insurance the Rochester Hills-based tives, in historic primary line broker, acquired ISI In- Michigan Hematology Oncolo- elections Aug. 6, as voters READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS surance Services for an un- gy Centers PC and the non- chose their members by specified amount, Kaufman profit Swan for Life Cancer district for the first time in Detroit voter turnout typical Look inside Cheesecake Factory officials said. Uniontown, Foundation, was charged nearly 100 years. Council Pa.-based ISI will become with health care fraud at President Saunteel Jenkins Less than one in Superficial as it part of US-Reports Inc., a U.S. District Court in Detroit was the top vote-getter five“ qualified Detroiters may“ seem, there are two Kaufman company that of- for his role in an alleged $35 among all candidates. bothered to vote on types of cities: those fers premium audits, loss million Medicare billing Ⅲ An Ingham County Circuit Tuesday despite it being with a Cheesecake control inspections and scheme. Court judge ruled that no one what many said was one Factory and those risk management services. Ⅲ Wayne County has — including Michigan of the most important without. Maybe that’s Ⅲ Auburn Hills-based TI seen the extra yield in- House Speaker Jase Bolger citywide elections in why a restaurant generations. opening in a mall has Automotive is working with vestors demand to own its — will be indicted for partic- become a Detroit media Deutsche Bank AG on finding debt soar to a record, ipating in a scheme by for- ” magnet. bidders for a sale that could Bloomberg reported. mer State Rep. Roy Schmidt fetch $1.5 billion, Moody’s Investors Service to switch parties at the last Chris Gautz’s “Capitol Briefings” blog on Lansing Nathan Skid’s Detroit-area restaurant” blog, “Table Bloomberg reported. dropped Wayne’s grade to minute and pay a novice to subjects is at www.crainsdetroit.com/gautz Talk,” can be found at www.crainsdetroit.com/skid Ⅲ Warren-based Asset Ac- Baa3, one step above junk, run against him in a fake ceptance Capital Corp., with a negative outlook. campaign, the AP reported. 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