Avoiding the Crisis Trap High-Rise May Lessons from a Week Be Aimed for of PR Disasters: New Center

APRIL 17 - 23, 2017

Endeavoring City eases for growth burden on Latest additions sudden spikes to entrepreneur program plan in drain fees expansions. aer backlash. Page 3 Page 3

Development Public relations 20-story-plus Avoiding the crisis trap high-rise may Lessons from a week be aimed for of PR disasters: New Center

Act quickly, and By Kirk Pinho [email protected] don’t make it A large, skyline-changing residential development is under consider- worse ation for the southwest corner of Woodward Avenue and West Grand Boulevard. Nothing is nalized and any possible groundbreaking would be months away, or even longer, but if it is a development of the magnitude being discussed — 20 stories or more — it would be another corner- stone cementing the QLine’s draw for large mixed-use development along its 3.3-mile route. A high-rise is just one of the possibilities for the site, said David Gras- By Bill Shea so, CEO of Grasso Holdings Inc., [email protected] which is behind an entity called 6565 Veterans crisis manage- Woodward Holdings LLC that is un- ment handlers across metro der contract to purchase the proper- Detroit were not surprised to ty from Midtown Detroit Inc. It was watch a couple of major registered in January. brands soil their reputations in “I am considering a number of recent weeks by bungling inci- dierent development plans for that dents that could have been large- property,” he said last week. “I’m ly resolved with a simple apology. also considering developing just the Pepsi drew scorn for a ba ing on- public relations insiders say. existing building, and not something line advertisement that trivialized at’s a huge change from when large. I’m studying all the options.” the Black Lives Matters movement. social media just meant reporters According to a 2016 story in Phila- But United Airlines bookended the in a bar. delphia magazine, Grasso’s soft drink maker with a pair of inci- “A decade ago, the crisis hap- wide-ranging business interests in- dents, the second of which saw a pened in a 24-hour news cycle; now clude restaurants, apartment hotels 69-year-old passenger bloodied by it happens in real time,” said Darci and coworking space. authorities and has cost the brand McConnell, president and CEO of He said he has been in real estate not only goodwill and credibility but Detroit-based McConnell for 25 years and has developed proj- more than a billion dollars in share Communications Inc. “It’s ects in Philadelphia; New York City; value. Atlanta-based Delta Air Lines important to have a plan Washington, D.C.; Baltimore; New Inc. also took heat for days of delays before a crisis happens, Jersey; and Florida. and canceled ights stemming from and it’s equally important is isn’t his rst foray into the storms that aected its Atlanta hub. to be swift and contrite city, which he likened to his home- Companies must be prepared to with your response. But town of Philly. handle a crisis in an instant because the response has to be much “Detroit reminds me of Philadel- the pervasiveness of social media more ambitious in reaching phia 15 years ago,” he said. “ere means an incident can go viral all the channels where a bad are so many similarities. It started quickly, and poor handling com- story can take on a life of its own.” with arts and culture, then emp- pounds the problem just as fast, SEE CRISIS, PAGE 17 ILLUSTRATION FOR CRAIN’S BY ANDREA LEVY ty-nesters started moving in, and young people started moving in.” SEE HIGH-RISE, PAGE 16

© Entire contents copyright 2017 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 33 No 16 $2 a copy. $59 a year. Doctors go slow on telemedicine Michigan laws encourage NEWSPAPER use but obstacles remain. Page 9 2 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017

INSIDE MICHIGAN BRIEFS CALENDAR 13 CLASSIFIED ADS 15 Report: Entrepreneurial capital and business conditions, is DEALS & DETAILS 13 landscape declining outperforming other state’s. Michi- gan now ranks 16, up from 23 in last KEITH CRAIN 6 Despite improvements in busi- year's report. e state's entrepre- OPINION 6 ness conditions, spino s and federal neurial vitality ranks 32nd, up from OTHER VOICES 7 grants, Michigan's entrepreneurial 35th. Metrics in that index include landscape is declining, according to university company spino s and PEOPLE 14 the Michigan Entrepreneurship grant awards. RUMBLINGS 19 Score Card released by MiQuest. But the state continues to struggle WEEK ON THE WEB 19 e report indicates fewer new with growth as Michigan drops to 46 businesses are being established from 23 last year. BLOOMBERG COMPANY INDEX: while existing businesses are grow- Basically, those who have created Nestle wants to withdraw up to 400 gallons per minute from a well in Osceola County. SEE PAGE 18 ing and improving. small businesses are doing very well “In a healthy economy, entrepre- — Michigan ranks third in propri- large amount of information to con- ooding on Detroit-area freeways neurship competes with other ca- etor income growth and fourth in sider. Following Wednesday night's and the collapse of a pedestrian August 2014 that led to ooding of reer and employment options,” Rob favorable business taxes — but en- hearing at Ferris State University in bridge on the Southeld Freeway. Southeast Michigan freeways; $1.8 Fowler, president and CEO of the trepreneurs aren't starting business- Big Rapids, public comments are be- e funding from the agency's million for replacing the Cathedral Small Business Association of Michi- es like they did in early years posting accepted through April 21. emergency relief program is part of a Street pedestrian bridge over the gan, said in a news release. “With Great Recession. Environmentalists critical of the $768.2 million award for emergency Southeld Freeway that collapsed Michigan’s low unemployment and request say the plan could hurt wet- road and bridge repairs in 40 states. in September 2014 when it was hit many growing rms, those opportu- Hundreds turn out for lands if the company were permitted Funding is awarded to roads or by a waste-hauling truck, the driver nities become more numerous and Nestle water hearing to drain more underground water bridges that were damaged either by of which later died; and $2.9 million attractive. For example, nearly a for its Ice Mountain bottling opera- natural disasters or external "cata- for local projects on roads eligible hundred thousand men and women Hundreds of people turned out tion. strophic" events. for federal aid in Gogebic County were forced by economic circum- for a public hearing on a company's Nestle representatives say the in- Michigan received $72,496 in re- after July 2016 storms that produced stances to become sole proprietors proposal to boost the volume of crease wouldn't hurt the environ- imbursements for heavy rains in a tornado and ash ooding. in the 2007-2009 era. ey have now groundwater it pumps for bottling in ment. left entrepreneurship to become West Michigan. employees.” Nestle Waters North America Federal funds to fuel Correction e Score Card assesses 137 met- wants to withdraw up to 400 gallons emergency road repairs rics to determine the health of the per minute from a well in Osceola JJA story on Page 5 of the April 10 issue incorrectly characterized where state's entrepreneurial ecosystem, County — up from 150 gallons per e Federal Highway Administra- online gambling would be allowed under the proposed bill. It would be including climate, change and vitali- minute. e request is pending with tion approved nearly $4.8 million in allowed anywhere in the state, but only brick-and-mortar casinos could ty. state regulators. emergency transportation aid for be licensed to o er it and bets would be legally considered to have taken Michigan’s entrepreneurial cli- e Michigan Department of En- Michigan, which will be used to replace within casino walls. mate, which measures innovation, vironmental Quality says it has a imburse the state for costs related to Not all heroes wear capes. Crain’s Health Care Heroes recognizes today’s industry professionals who are dedicated to helping save lives and improving access to care.

THE DEADLINE TO NOMINATE IS MONDAY, MAY 22. For more information and to submit a nomination visit: crainsdetroit.com/nominate CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 3

Entrepreneurship Endeavoring for growth E-commerce furniture maker Floyd and raw juice maker Drought are the two most recent additions to the Endeavor program, and aim to use it as a springboard to the next level. Raw juice maker sees fruits of its labors By Chad Livengood [email protected] Cold-pressed raw juice maker Drought is preparing to quadruple its production space and open a second store in Royal Oak as wholesale and retail customer demand rises for its fresh drinks. Drought plans to move its production space from a 3,500-square- foot kitchen in Ferndale to a 15,000-square-foot former broom factory in Berkley within the next six months, said Julie James, co-founder and chief marketing ocer of the company. e Royal Oak-based raw juice company run by James and three of her sisters has plans to open a second store in Detroit and two stores in Ann Arbor later this year. e bigger kitchen production LARRY PEPLIN and new retail stores come as the six- Kyle Ho, co-founder and owner of Floyd Design LLC, at Evans Distribution in Melvindale. Floyd Design became the eighth year-old organic juice company is company from metro Detroit to join the nonprot Endeavor’s global entrepreneurship network. planning to expand its scope and COURTESY OF DROUGHT reach into new markets. Drought’s Cold-pressed raw juice maker Drought is plastic bottled raw juice is now sold moving to a larger production space and at 32 retailers in ve Midwest states. plans new stores. Bed maker Floyd aims to use exclusive Drought projects it will sell 400,000 bottles of its juice in 2017, a wing since launching its sought-after program to plot expansion course 40 percent increase from 2016. e entrepreneurship program in South- bottles sell for $9 to $11 each. e east Michigan two years ago. By Chad Livengood global entrepreneurship network. En- month and the company expects sales privately held company does not Other local companies that are [email protected] deavor provides assistance and strate- revenue to top $5 million this year, disclose total sales data, James said. part of the Endeavor program in- What started as a $18,000 Kickstart- gic advice to entrepreneurs looking to Ho said. Floyd’s investors include In December, the company be- clude McClure’s Pickles; nancial er campaign to fund the development scale and grow their businesses. Airbnb co-founder Joe Gebbia and came a member of Endeavor, a glob- and stock news website Benzinga; of a minimalistic set of table legs has Ho and O’Dell’s apartment furni- LZB Investments, the investment arm al nonprot that assists entrepre- chickpea pasta maker Banza; digital morphed into a Detroit e-commerce ture products rm sells an Ameri- of Monroe-based La-Z-Boy, Ho said. neurs with scaling and growing their products company Vectorform; high company selling $600 bed frames for can-made wood bed frame with steel Floyd Design began in 2014 with businesses. school sports broadcaster Varsity big city millennials. legs designed for the transient urban Ho and O’Dell’s invention of the James said the company was sub- News Network; e-commerce furni- Last month, Kyle Ho and Alex dweller who wants a durable piece of Floyd leg, a steel leg that can be used jected to a “very serious vetting pro- ture maker Floyd; and Algal Scientif- O’Dell’s Floyd Design LLC became furniture. to convert any at surface object into cess” to get accepted into Endeavor’s ic Corp., a developer of animal and the eighth company from metro De- Sales of the Floyd Bed grew by 250 a table. program, which now has eight com- human health products. troit to join the nonprot Endeavor’s percent from March 2016 through last SEE FLOYD, PAGE 16 panies under its Endeavor Detroit SEE DROUGHT, PAGE 16

MUST READS Business and government OF THE WEEK Detroit scales back drain fees aer Make plumbers sexy again outcry from businesses, churches Everybody agrees: We need more people in the skilled trades. How do you get young people there, Ron Fournier asks. Page 6 By Chad Livengood [email protected] “This essentially is giving them an Detroit’s water department is pre- opportunity to have ve years to build paring to scale back a controversial green infrastructure projects and get a Rumblings: Belle Isle garden dreams storm water drainage fee after backlash from businesses and churches credit to permanently reduce their costs.” Backers aim to get world-renowned designer to plant a ag on Detroit jewel. that got hit with the hefty $750-per- Gary Brown, DWSD Page 19 acre monthly charge. e city’s Board of Water Com- cels with impervious surfaces such as heat from the city's politically-inu- missioners will vote Wednesday on a roofs and parking lots that “weren’t ential pastors over the fee and the - plan to reduce the drainage fee to paying anything at all,” Brown said. nancial burden it has placed on their $125 per acre until July and then “is essentially is giving them an congregations. phase in increases over the next ve opportunity to have ve years to “ey say it’s not taxation, but to scal years to $677 by July 2022, said build green infrastructure projects me it’s a way to tax the church,” said Detroit Water and Sewerage Depart- and get a credit to permanently re- Everett Jennings, pastor of New ment Director Gary Brown. duce their costs,” Brown told Crain’s. Providence Baptist Church on Plym- Detroit began imposing the fee in Mayor Mike Duggan, who is fac- outh Road. July 2015 on the owners of 22,000 paring re-election this year, has taken SEE DRAINAGE, PAGE 17 4 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017

One Of The World’s Top Sandler Training Companies AK Steel tax credits are $60M question for state, drawing backlash

By Lindsay VanHulle talks and the belief among some that a which has led to operating losses. Learn how to create an ELITE team Crain’s Detroit Business/Bridge Magazine deal to transfer credits would amount A company the size of AK Steel pre- to take your company to the next level! to an expansion of an expensive and sumably would have had tax advisers LANSING — e state’s economic unpopular — not to mention, defunct who were aware of the conict be- Featuring development agency is trying to gure — tax credit program that will cost the tween the corporate income tax and Murray Feldman Gerry Weinberg Alana Nicol out how it legally can allow an Ohio- state billions of dollars in payouts by the Michigan Business Tax, said Gina based steelmaker to claim business the time it ends. Staudacher, a partner in the corporate tax credits it believes it inherited when “Someone has set this up as a cur- tax group of Howard & Howard Attor- it bought the former Rouge steel plant tain where I can’t look behind,” state neys PLLC in Royal Oak. in Dearborn nearly three years ago. Rep. Peter Lucido, R-Shelby Town- Standard MEGA agreements might e Michigan Economic Develop- ship, told Crain’s. “If I’m giving away allow credits to transfer as part of a ment Corp. won’t conrm how far something, I want all my colleagues merger or acquisition, she said, but WWJ CEO of President of along it is in the process with AK Steel — both in the House and the Senate the language does not specify that the Business Editor Gerry Weinberg & Associates, Inc. Corp., saying only that it’s still re- — to make that decision.” exchange is allowed when the two searching legal options. But AK Steel Lucido and a parties in the transaction le under If you’re a CEO, President or Business Owner, who is: says the state is on board, rankling en- handful of House dierent tax structures. • frustrated with unpaid consulting and how long it takes vironmental groups and lawmakers colleagues — in- “It happens rather routinely in the to close business? from both parties over what they per- cluding Republi- M&A world that (tax credits) are transi- ceive as closed-door bargaining. can Martin How- tional items that can be carried for- • unsure your existing salespeople have what it takes to e transparency questions are rylak of Troy and ward to the resulting company,” she grow your company? swirling as the MEDC and AK Steel Democrats said, and it likely inuenced the price. • disappointed that your vision isn’t met? discuss job retention and browneld Stephanie A solution that might satisfy both credits that now total $50 million to Chang, of De- the state and the company could be Wednesday, May 17th $60 million, by one estimate. AK Steel, troit, and Abdul- to budget Severstal’s credits as part of which bought the Dearborn opera- Abdullah lah Hammoud, the current business development 11:30 AM – 2:00 PM tions of Russian steelmaker OAO Sev- Hammoud: of Dearborn — program within the MEDC, and in- Andiamo Bloom eld Twp. erstal in 2014 for $707 million, be- Opposed to tax issued a news re- clude requirements for environmen- lieves the tax credits originally credit transfer. lease in March tal upgrades, Staudacher said. Investment: awarded to Severstal are among the citing concerns Sponsored by Gerry Weinberg & Associates and WWJ Newsradio assets it now controls. with the MEDC’s process. Environmental issues Here’s the rub: Michigan’s tax code Michigan’s liability under MEGA To Register or For More Information, Visit: prohibits AK Steel from claiming the topped $9 billion, largely because the AK Steel’s en- www.gerryweinberg.sandler.com or credits because the company pays its program was expanded to include in- vironmental re- Call (248) 353-4030 | RSVP Required business taxes under the state’s new 6 centives for retaining jobs during the cord is one rea- percent corporate income tax, not the recession. e state’s payouts created son cited by Registration must be con rmed by a team member from old Michigan Business Tax that carved budget holes in recent years because some opponents Gerry Weinberg & Associates, Inc. out the credits. e MEDC says there’s of volatility stemming from when to transferring no precedent for what happens to tax companies chose to redeem the cred- the credit. credits when the two companies in- its, and have made some legislators e plant is volved le under dierent tax codes. gun-shy to approve new incentives. located near an “We are pleased that the state has Legislators in the House and Sen- industrial cluster agreed to deliver on its promise under ate last year attempted to change the Gina Staudacher: that has contrib- the contract,” AK Steel spokeswoman state’s tax laws to allow a company to Tax credits likely uted to pollution Lisa Jester said via email. “ is tax claim a credit that had been awarded in uenced price. and public credit, as permitted under our con- to a company it acquired, but the ef- health concerns, tract, is important to help us manage forts failed. such as asthma, in portions of Dear- our business and continue to support Short of a legislative x, “we’re born and southwest Detroit. jobs and the economy of southeastern evaluating the situation,” MEDC ompson said AK Steel in- Michigan.” spokeswoman Emily Guerrant said. creased its environmental compli- Jester declined additional com- “We would prefer the Legislature ance sta at the Dearborn facility ment. e MEDC would not conrm weighing in and creating a clear inter- from two under Severstal to ve af- Jester’s account. pretation.” ter the purchase closed, and spent In dispute are a 20-year credit un- $29 million in 2015 on pollution der the old Michigan Economic Dierent tax structures control equipment. He also said Growth Authority program, which Severstal had 23,896 reported air was awarded to Severstal in 2005 and AK Steel (NYSE: AKS) bought the permit deviations in 2013, a number worth an estimated $55 million to $60 plant it calls Dearborn Works in 2014 that fell to 33 in 2016 under AK million, and a 10-year browneld from Severstal as the Russian compa- Steel’s ownership. credit against the Michigan Business ny sold o its U.S. facilities. e pur- AK Steel has received four viola- Tax approved in 2011 and worth an chase was part of a plan to locate its tion notices since Jan. 1, 2016, ac- estimated $40 million, according to carbon steelmaking business near its cording to Michigan Department of AK Steel and the nonpartisan House large automotive customers. Environmental Quality spokeswom- Fiscal Agency in an analysis of legisla- e plant traces its roots to the an Melody Kindraka, including one tion that failed to advance in last 1920s, when it was part of Ford Motor issued Feb. 23 this year for fallout year’s session. Co.’s iconic Rouge plant. Severstal from a large brown plume that spilled Severstal’s MEGA credit was set to bought it out of bankruptcy from over from the Dearborn property in expire in 2026 at an original estimated Rouge Steel Co. in 2004 for $285 mil- December 2016. value of $48.6 million, according to lion. Hammoud, a rst-term Democrat the MEDC. Roughly 1,500 employees work from Dearborn, has asked that AK While West Chester, Ohio-based there today, AK Steel said. Steel and MEDC include plans for AK Steel is believed to be the rst e company since has spent more capital improvements during the company seeking to do this, it’s possi- than $30 million at the Dearborn next ve to 10 years that could lead to ble that a favorable outcome for AK plant to expand a steel production fewer emissions and environmental Steel could set a tax precedent for oth- line, Jester said via email. violations in an agreement, but said er companies that wind up in a similar AK Steel reported a net loss of $7.8 he has heard the provision so far has scenario through a merger or acquisi- million in 2016 on sales of $5.9 billion. not been included. tion. Allan ompson, AK Steel’s corporate Neither the MEDC nor AK Steel AK Steel’s request has unleashed tax manager, told lawmakers in No- have disclosed details of the ongoing criticism over the steelmaker’s envi- vember that the company is commit- legal review. ronmental violations in Michigan, a ted to its Dearborn operations despite Lindsay VanHulle: (517) 657-2204 lack of transparency surrounding pressure from foreign producers, Twitter: @LindsayVanHulle BRAND SUMMIT

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OPINION Make plumbers sexy again e were gathered around a table going to college.’” next decade with average annual Michigan” advertising campaign cre- in a glass-walled conference She smiled at Blaker. “Moms like wages of $51,000, according to the ated a marketing drive that sold mil- Wroom at the Shinola factory, seven me are making your job tougher.” Michigan Labor Market Information lennials on the merits of skilled labor? business leaders and their host, Su- Nelson is right, but Michigan par- & Strategic Initiatives. Down the hall in another confer- zanne Clark, senior executive vice ents were prodded by politicians. “We created a mentality that every ence room, the U.S. Chamber hosted president of the U.S. Chamber of As my colleague Dustin Walsh re- single student is a college student,” Jo- a second group of business leaders as Commerce. ported in January, legislators and ed- seph Cipriano, founder and president part of its cross-country “listening I kicked o the conversation with ucation advocates began devaluing of Constructeam, a water and re tour” focused on economic growth. two sets of statistics: RON FOURNIER vocational education and skilled damage restoration company, told Paul Glantz, founder of Emagine En- J Michigan’s unemployment rate is Publisher and Editor trades decades ago in favor of pushing our group at Shinola. “We wiped out tertainment, was part of that discus- 5.3 percent, a slight incline this year students into four-year colleges. the trades.” sion, and the business leaders at that after being at historic lows during skills among Michigan’s young work- e goal was noble: Increase the “e pipeline is drying up,” added table suggested that a “Pure Michi- 2016. ers, and the need for high-speed rail pipeline of students going to four-year Chuck Dardas, president of Alpha gan” approach to skilled trades could J By 2020, the U.S. is predicted to be that would link Detroit to Ann Arbor institutions to prepare them for a USA, a family-owned company in Li- be broadcast inside Glantz’s theaters. short 5 million workers with skills in like San Jose is tied to San Francisco. global economy. e tactic was vonia that makes fastener assemblies, Emagine that. Promoting tourism high-growth industries like manufac- All good points. But the business short-sighted: Skilled labor is a build- clamps and stampings for the medi- is nice, but there might be a bigger re- turing and IT — both at the heart of leaders kept returning to Blaker’s ing block of the 21st century. cal, military and infrastructure indus- turn on taxpayers’ investment if Michigan’s economy. questions: How do we make skilled e number of students taking vo- tries. Michigan’s marketers put the sizzle “What is the single biggest barrier trades sexy to millennials? cational education classes statewide To make the work sexy, Dardas in- back in skilled trades. to economic growth?” I asked Lori “I can hire a body shop technician dropped from 136,000 in the 2006-07 vites young students and their parents We need to make plumbers sexy Blaker, owner and CEO of Rochester today repairing new aluminum vehi- school year to 108,000 during the to his company, where they experi- again. Hills-based TTi Global, a global sta - cle frames, and that individual can be 2015-16 school year, widening the gap ence life in the trades. He proudly re- EDITOR’S NOTE: e U.S. Cham- ing/training company she began 40 making $100,000 a year,” Blaker said. between supply and demand. called the day when some of the kids ber of Commerce hired Crain Content years ago in her parents’ garage. “What marketing major do you know Skilled labor includes plumbers, sat on the shop oor during a demon- io, the custom content division of “ere is such a signicant lack of that could come out of MSU and mak- welders, electricians and other sorts stration, a scene captured by a local Crain’s Detroit Business, to plan and skilled trade workers here in the state,” ing $100,000 out of the gate?” of trades you might remember from newspaper photographer with this manage the event at Shinola. is col- she replied. “It’s dicult for our cus- Across the table, Rita Nelson nod- shop class. But it now includes ad- caption: “Modern-day manufacturing umn was not part of that agreement, tomers to expand. We’re not attract- ded her head. e manager of Fair- vanced aspects of industry, such as so clean, kids can eat o the oor.” and none of the parties had prior ing young people into the industry. lane Town Center in Dearborn said green building standards in construc- Nelson said businesses should knowledge or approval of its content. We’re not making it sexy.” she’s part of the problem. “I’m the tion alongside carpentry; agricultural work together to market skilled And so began a meandering con- mom of two boys, and when they sciences including hydroponics; ro- trades, o ering Dardas and others the Ron Fournier is publisher and editor of versation about the barriers to growth were 12, I told them, 'You’re going to botics and design; and computer net- use of her mall to stage demonstra- Crain’s Detroit Business. Catch his in Michigan, including globalization, college.' My husband, who did not go working and development. tions. take on business news at 6:10 a.m. trade agreements, sti competition to college, says, ‘Why not a vocational According to Walsh’s reporting, I liked another idea Nelson had, Mondays on the Paul W. Smith show for talent from other states, lack of so- school? You know how much an elec- there is a need for 15,000 new skilled one that ended the hourlong discus- on WJR AM 760. cial graces and other so-called soft trician makes?’ But I say, ‘No, they’re trades workers annually through the sion: What if the makers of the “Pure It is a noble ambition Our new adminis- with a higher local content. tration in Washing- For economic and political reasons, ton is putting a lot of imported vehicle brands have set up shop pressure on U.S. in the United States and spent billions of companies, particu- dollars on facilities as well as hiring thou- larly Detroit automo- sands of U.S. factory workers. tive companies, to ey understand it is important to build everything in have a local presence where they sell KEITH the United States. It’s hundreds of thousands of their vehicles. CRAIN a noble thought, but American companies do the same in Editor-in-chief hugely impossible. overseas markets where they do business. For quite a while, In most products more complicated American industry has used parts from all than a pencil, there are lots of compo- over the world. Manufacturers have as- nents from all over the world. Mexico has sembled cars and trucks that are primari- been popular for its low-cost labor, and ly American with hundreds of parts from NAFTA made it more attractive. all over the world. But the real challenge is to convince While it may be possible to create a customers in America that they want U.S. product with all American products, it products. would tend to be a very simple, basic Locally, our own Shinola has been un- product and not have the complexity of believably successful by marketing a say, an automobile. product assembled in Detroit. Shinola If President Donald Trump wants to uses parts from all over, but the assembly encourage the purchase of Ameri- has always been right here in the Motor can-made products, the best way to ac- City. complish that would be to convince folks Trying to convince folks to pay a bit here to buy American. more for American products could be dif- ere is a great deal of nationalism cult or impossible. It will take a massive around the world in other countries, public relations campaign to convince where there is a strong feeling about buy- even a small number of citizens. Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not ing locally made products. at is a far at journey could take decades. But it defame individuals or organizations. Letters may be edited for length and clarity. more e ective strategy than beating up is it a worthy endeavor to try to nd what Email: [email protected] U.S. manufacturers to make products works. CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 7 Advocacy groups believe HMOs would fail on behavioral health An April 2 Other Voices column by grams, being directly connected to like entities have disenrolled. managing their behavioral health MeridianHealth’s Jon Cotton had fas- government, are more transparent J Service coordination isn’t achieved care. ose who comment on Section cinating comments on the question of with greater public accountability. by nancial integration at macro-ad- 298 for their own purposes conve- whether Michigan should turn Med- J MHPs have limited experience with ministrative levels. It happens at local niently omit this information. ey icaid behavioral health funding and severe behavioral disorders or con- provider levels, and those providers also fail to acknowledge that no ani- clients over to the state’s Medicaid cepts like beneciary involvement in will have contracts with CMH pro- ty group, including the ones for pro- Health Plans (MHPs). planning; consumer self-determina- grams and MHPs, regardless of where viders and payers, recommended is issue began February 2016, tion; and social supports. the state rst sends its money. adoption of the governor’s proposal. when Gov. Rick Snyder proposed OTHER VOICES J Michigan has run a nancial inte- Most important are the voices of Legislators must ask if their respon- such action take place by September Mark Reinstein gration demonstration project in four service recipients and their families. sibility is to the public or to well-fund- 2017. e state has subsequently tak- regions for persons with both Medic- Last fall, 31 of the 45 statewide anity ed and lobby-heavy private insurers en three major reviews of the issue; at and Dohn Hoyle aid and Medicare. Eligible people are groups involved consumers and fami- who seek to control more money. each stage, the governor’s proposal Reinstein is president and CEO of the automatically enrolled in MHP-like lies (767 people out of 1,113 total af- Advocates bring the unied voice was rejected. Mental Health Association in Michigan. entities, with the option to subse- nity group attendees). e consum- of Medicaid beneciaries and their First, Lt. Gov. Brian Calley appoint- Hoyle is public policy director for the Arc quently un-enroll. After almost two ers and families couldn’t have been families, whose lives are on the line. ed a large workgroup in early 2016. Michigan. years, over 60 percent of those the clearer that, overwhelmingly, they Where Michigan goes will speak en the state’s Department of Health state automatically placed with MHP- didn’t want Medicaid health plans volumes about our state. and Human Services held anity groups last fall, involving over 1,000 people. Finally, a 23-person DHHS Section 298 Workgroup issued reports to the Legislature in January and March. e author of the April 2 column complained the state’s MHPs had “a dicult time winning a seat at the table.” Representatives of those plans were on the lieutenant governor’s workgroup and the smaller DHHS Workgroup that followed. DHHS also CALLING LOCAL assured that one of its anity groups was for service payers. In fact, the Michigan Association of Health Plans co-drafted most of the TRAILBLAZERS! key recommendation adopted by the Section 298 Workgroup in December, and the MAHP voted for the nal ver- sion of that recommendation. at Crain’s Detroit Business is now seeking nominations for recommendation stated that Michi- gan should retain a Community Men- its 2017 class of 40 under 40. We’re looking for today’s tal Health system to lead behavioral brightest under 40 who continue to make their mark health care and a Medicaid health within their company, their industry and their plan system to lead other medical care. e recommendation ended by community. Winners will be proled in the saying proposals for care coordina- Oct. 2 issue of Crain’s and honored at an tion models or pilots could come from awards event in November. “competent, public, risk-based con-

gurations.” (In making this recommendation, If you consider yourself a trailblazer the Section 298 Workgroup didn’t ac- or have been inspired by one, cept everything as is today. Over 70 we invite you submit a nomination other recommendations were sent to the Legislature. Many called for im- to Crain’s 40 under 40. provements to the publicly funded behavioral health system. ere was also a recommendation for expansion and broadening of joint programs between Medicaid health plans and SUBMIT A community mental health programs.) NOMINATION TODAY e April 2 column also claimed at crainsdetroit.com/nominate that behavioral health interests opposed to the governor’s recommendation must “believe that not only would managed care organizations succeed in managing the behavioral health benet, but that we would be better at i t .” Speaking for the state’s leading behavioral health advocacy organizations, that is completely untrue. Advo- cacy groups, who were outnumbered 15-8 by providers and payers in the DHHS Section 298 Workgroup, and who have no nancial stake in where money gets appropriated, aren’t afraid of HMO success. Rather, we and the beneciaries and families we represent believe the HMOs would fail: J Medicaid health plans have been responsible for a limited “mild-to-moderate” mental health benet for 20 years, and have done a poor job with it. J Community mental health pro- 8 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 SPECIAL REPORT: HEALTH CARE

JACOB LEWKOW Trevor Ripley, M.D., a family physician at Beaumont Hospital Troy and clinical faculty member at Oakland University William Beaumont School of Medicine, was part of a telemedicine pilot program to test how electronic medical visits can be incorporated into Beaumont’s online patient portal, MyBeaumontChart. Some physicians slow to adopt telemedicine Health, hospital systems like Beau- adopting. Not all payers pay well for it patients through two-way video and But Michigan’s laws encourage use mont Health and consulting rms and don’t oer it with same level of audio communication, Burton said. like Bloomeld Hills-based My ePhy- copay,” Majcher said. “Some patients e company sells licenses to physi- Inside: By Jay Greene sicians are helping physicians get are used to calling in to physicians for cians for E-Visit, a Mesa, Ariz.-based [email protected] started and become procient in a free consult. is would replace telemedicine software rm. n Trinity to expand advanced home Physicians in Michigan appear to communicating and conducting on- ‘free,’ and patients would have to pay My ePhysicians also provides stra- health telemedicine system, be slow in adopting telemedicine, line electronic visits with their pa- a copayment. ere is education (re- tegic advice to physician organiza- Page 9 despite state enabling laws and tients through telemedicine. quired) on both sides.” tion on how to integrate telemedi- n Blues look to expand telemedicine growing reimbursements from pri- Physicians are reluctant to oer Je Burton, a nurse, is also busi- cine into their practices. e other payments to physician organizations, vate, Medicare and Medicaid payers. telemedicine services for many rea- ness development lead and co-owner co-owner is Kimberly Coleman, a Page 11 Some of their patients are reluctant sons, ranging from competing priori- of My ePhysicians. His company is pediatrician who is also chief medi- to try high-tech medical visits, too. ties to lack of uniform reimbursement working with physician organizations cal ocer with United Physicians, a at's an obstacle to a practice from payers, said Alicia Majcher, like Huron Valley to help primary Bingham Farms-based physician or- that advocates say could be more quality and operations director with care physicians and specialty practic- ganization. convenient for patients, eliminate ex- Ann Arbor-based Huron Valley Phy- es adopt telemedicine in their prac- Burton said many physicians don’t pensive emergency room visits and sicians Association, a 30-physician tices, through education, training and understand the potential clinical uses bring patients in for visits they might independent practice association. software. of telemedicine. He said they don’t otherwise have skipped. Patients may be reluctant because of e company oers a comprehen- know how to t telemedicine into Initiatives from Blue Cross Blue additional costs, she said. sive software platform that allows their daily work ow. Shield of Michigan and Priority “ ey have good reasons for not physicians to conduct e-visits with SEE LEADS,PAGE 10 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 9

SPECIAL REPORT: HEALTH CARE Trinity to expand advanced home health telemedicine system By Jay Greene [email protected] A Trinity Health program aimed at helping patients get care remotely is growing beyond its Michigan test bed into six other states, part of a growing move toward telemedicine by an industry looking to save money and improve care. It’s also a way to take advantage of a home health care, an industry pro- jected to grow more quickly than any other, fueled by aging baby boomers. Like most home health agencies a liated with hospitals, Trinity is seeking to avoid costly, unnecessary hospitalizations or emergency department visits by using technology to assist nurses and home health aides. Trinity Health At Home’s two-way video from Texas-based Vivify Health allows patients at home to communicate directly with nurses any time of day. Each Trinity Home Care Connect telemedicine kit includes a wireless-enabled tablet and devices that let patients collect weight, blood pressure and other vital information. After brief training by a home health nurse, patients turn on the device and begin to share vital information through voice and text in- LARRY PEPLIN structions. e patient’s data is mon- Trish Bindus, registered nurse/case nanager from St Joseph — Mercy Home Care & Hospice, demonstrates home health monitoring gear with patient Richard Smith at his itored, in real time, by medical sta. home in Brighton. If necessary, nurses can get doctors to consult with the patients through the tablet connection. “It’s part of our strategy for deliv- ering people-centered care,” said Erin Denholm, president of Trinity Health At Home, IP Experience a division of Li- ® vonia, Mich.- based Trinity In Your Corner. Health, one of Erin Denholm: the nation’s larg- Domestic and international intellectual Can help seniors est not-for-prot property strategy development. living alone. health systems with 86 hospi- Patent, trademark and copyright tals, including 12 in Michigan. procurement for companies and In Southeast Michigan, Home entrepreneurs. Care Connect will launch April 17, with patients expected to receive Focused on both mechanical and electrical their devices the next week. Clinical arts with experience in automotive, teams are being trained using the medical devices, consumer goods, mobile new remote monitoring devices and referring hospitals and doctors also applications and sensor technology. are being consulted. Nationally and in Michigan, home health, like many outpatient services, is booming, primarily because of the aging population but also because of the eort by hospitals and health insurers to reduce costs of care. By 2029, when the last round of baby boomers reaches retirement age, the number of Americans 65 or older will climb to more than 71 million, up from about 41 million in 2011, a 73 percent increase, according to U.S. Census Bureau. A huge proportion of seniors will switch from commercial plans to Medicare, which provides the bulk of funding for home health care. Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Contact Erin Klug at [email protected] SEE TRINITY, PAGE 10 10 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017

SPECIAL REPORT: HEALTH CARE

types of telehealth services it pays the eVisit software. School of Medicine, was part of a Other Beaumont physicians using bill also requires the prescribing pro- LEADS for; many payers, including Blue "Each physician who uses tele- telemedicine pilot program to test video are billing when patients use vider to make sure the patient knows FROM PAGE 8 Cross, follow Medicare’s lead and medicine can cover the cost of li- how electronic medical visits can be the software, said a hospital ocial. where to go in an emergency and “ere is a large knowledge gap pay for the same services that Medi- censing by about four e-visits per incorporated into Beaumont’s on- “It supplements what we do in the that a referral for follow-up care is with telemedicine because it is so care covers. Medicare covers well- month," he said. "You have to do a line patient portal, MyBeaumon- oce and if we do it right, I can see available, he said. brand new,” Burton said. “We can ness, behavioral health and extend- handful of visits to cover the costs." tChart. doing it for 10 to 15 patients per day,” Telemedicine improves access to evaluate practices and help them ed-care telehealth visits. Michigan Burton said there are several ad- e Beaumont telemedicine pro- Ripley said. “You have to do it with care for people who live in remote with adoptions.” Medicaid covers services that in- vantages to physicians who use tele- gram has since been expanded to at the right patients and the right areas and enhances psychological Michigan is one of the more ad- clude consultation, oce visits, psy- health: most e-visits are reimbursed least 1,000 of its physicians, who use symptoms, but it is the future." services by allowing psychiatrists to vanced states to encourage tele- chotherapy, pharmacologic man- by payers and physicians can cap- MyChart electronic health record support clients between visits and health. Since 2006, when Medicaid agement and end stage renal ture visits that patients may never software by Epic Systems Corp. Telemedicine services write prescriptions, he said. began oering limited video tele- (kidney) disease related services. physically come into a practice for; “I get maybe two visits per week” conrmed for mental Lezotte said the recent expansion medicine services, telehealth laws Majcher said Huron Valley is con- patient satisfaction goes up because from some of his 1,000 patients, Rip- health patients of telehealth laws in Michigan is have gradually expanded to allow tracting with My ePhysicians to inte- they avoid ER or urgent care visits. ley said. e patients have registered helping to shorten the distance be- the use of telemedicine services. grate telemedicine into its 18-clinic Huron Valley also is one of about for an e-visit, submitted a 12-ques- Last month, Gov. Rick Snyder tween patients and physicians or Landmark telehealth legislation network. Initially, three oces and 20 physician organizations in Blue tion form about their symptoms and signed Senate Bill 213, which clari- other health care providers, increas- approved in 2012 stimulated cover- 13 physicians will participate, using Cross’ edgling telemedicine work- have been screened by a nurse. es that state law allows physicians ing access and making the customer age by banning the requirement that eVisit as the software platform, she group that begin meeting in January. “If I feel it is safe enough, general- and mental health providers to pre- experience more convenient and ef- physicians have face-to-face contact said. Blue Cross is encouraging physician ly I can treat them” with an e-mail, scribe controlled substances fective. with patients to qualify for treatment “Our plan is to begin this all organizations to develop more so- Ripley said. “I have seen many of through telehealth services. e bill “ere are still some issues out coverage. around behavioral health integra- phisticated telemedicine and care these patients in person for the same was supported widely by hospital there, like licensure across jurisdic- Covered video-based telehealth tion with two psychiatric oces do- management programs and is ex- issue, like chronic sinusitis. It is a and physician organizations and en- tions. e doctor has to be in the services include the following: inpa- ing collaborative care with primary pected to eventually integrate tele- nice option for them. ey don’t sures timely access to care and med- same state where the patient is,” tient and outpatient consultations, care physicians,” said Majcher, add- medicine into value-based pay- have to call or schedule an appoint- ication for mental health patients, Lezotte said. “at is the next (bill) psychiatric diagnostic procedures, ing that the video conferences will ments and its physician group ment. It streamlines the process for regardless of where they live. pending. Michigan wants to allow” diabetes training services, end stage be reimbursed. incentive program, Majcher said. patients.” Mark Lezotte, a health care attor- physicians to prescribe across state renal disease (ESRD) services, men- Besides fee-based consultation Trevor Ripley, M.D., a family phy- Ripley said he does not bill pa- ney with Butzel Long, said SB 213 lines in co-licensure agreements tal health or substance abuse treat- services, Burton said My ePhysicians sician at Beaumont Hospital Troy tients for the service because he xed problems in SB 753, a tele- with other states. ment and health education. also charges each physician who and clinical faculty member at Oak- doesn’t oer video telemedicine ser- health bill that was approved last fall Jay Greene: (313) 446-0325 In 2015, Medicare expanded the uses telemedicine a licensing fee for land University William Beaumont vices, which is required for billing. and went into eect last month. e Twitter: @jaybgreene

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you’d expect a 5 percent rate. ... ey telemedicine systems for medical TRINITY can call every hour and see a nurse if monitoring of patients and a 24-hour Michigan rolls out new automated online prescription system FROM PAGE 9 they have problems or questions.” nursing call center. Under Medicare rules, physicians National data shows that 20 per- “Telemonitoring is a critically im- By Jay Greene must write a prescription or order for cent of all Medicare patients are portant component of any world- [email protected] home health services when a patient re-admitted to hospitals within 30 class telehealth program,” said CEO As the number of heroin overdoses is discharged from a hospital. Medi- days and 33 percent are readmitted William Deary of Great Lakes Caring. and drug poisonings have quadru- care pays for up to 60 days of home within 90 days, costing Medicare “Telemonitoring technology has ad- pled in Michigan since 1999, Michi- health services if a physician certi es more than $17 billion annually. Cut- vanced signi cantly in the past three gan has launched an improved sys- the patient needs the services and ting readmissions to under 5 percent years.” tem that doctors and other controlled submits a plan of care. Patients may could save billions of dollars, experts For example, Great Lakes Caring substance providers are encouraged be recerti ed for another 60 days if say. uses communication portals for the to use to more accurately track pre- physicians believe it is necessary. From a satisfaction standpoint, the patient’s primary care or specialty scription drugs in an eort to combat In a study released in December Trinity pilot study also showed that 90 physicians and family care-givers. rising overdose deaths. 2015, the U.S. Bureau of Labor Statis- percent of patients felt more comfort- is addresses care coordination But only an estimated 30 percent tics concluded the compound annual able knowing a nurse was checking problems between providers and can of physicians who prescribe opi- growth rate for home health services vital signs every day. And 100 percent help to reduce duplicative services. oid-based painkillers used the old over the next decade could be 5 per- of patients found using remote moni- e recent introduction of advanced TRINITY HEALTH Michigan Automated Prescription cent, the highest among all industries. toring technology helpful to more predictive software technology for The Trinity Home Care System, a percentage that Lt. Gov Bri- Last year, Trinity conducted a pilot clearly understand their conditions. computer-based telemonitoring also Connect telemedicine kit an Calley, State Sen. Toyna Schuit- program with the two-way Connect Most large home health agencies, alerts nurses to risks that could lead includes a wireless-enabled maker and other supporters of the telemonitoring system with 62 seniors including Jackson-based Great Lakes to hospital readmissions, unneces- tablet and devices that let new tracking system hope to change. with an average age of 75. None of the Caring Home Health and Hospice sary ER visits and changes in chronic Over the next several months, patients collect weight, blood Reluctance of doctors to use MAPS patients, including those with a high and Troy-based Residential Home disease conditions, he said. Trinity Health At Home will deploy pressure and other information. primarily has been the 10-minute risk of hospital readmission such as Health, use a variety of telemedicine “e most important capability of its Home Care Connect remote care wait to verify prescriptions and the congestive heart failure were readmit- mobile remote monitoring devices. our telemonitoring program is our management technology to all its diculty in reading data as it was pre- ted to a hospital within 30 days of dis- Great Lakes has one of the nation’s ability to immediately triage a pa- agencies in Michigan, Indiana, Iowa, ture also can help seniors with de- sented, said David Krhovsky, an an- charge to their home. most sophisticated information tech- tient’s health status (24 hours a day) Illinois, California, Maryland and pression, said Denholm, who also is a esthesiologist and president of the “e evidence shows remarkable nology systems. It features two-way to provide the best clinical interven- Ohio, where it cares for about 10,000 nurse. “is allows for a safety net for Michigan State Medical Society. decreases in admissions,” Denholm patient-to-clinician video communi- tion, as soon as we identify the pa- home health patients. people who are living alone.” “e new system provides detailed said. “For patients with chronic dis- cation, a wireless patient care report- tient’s change in condition,” Deary Because elderly patients who live Jay Greene: (313) 446-0325 information about patient prescrip- eases like congestive heart failure, ing system, patient education videos, said. by themselves can get lonely, this fea- Twitter: @jaybgreene tion history as well as analytical re- CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 11

SPECIAL REPORT: HEALTH CARE

Other Beaumont physicians using bill also requires the prescribing pro- video are billing when patients use vider to make sure the patient knows the software, said a hospital ocial. where to go in an emergency and Blues look to expand telemedicine payments “It supplements what we do in the that a referral for follow-up care is By Jay Greene “The physicians ognize the need to incorporate tele- fying practices pay for contracts with oce and if we do it right, I can see available, he said. [email protected] health into their primary care vendors for technology platforms, doing it for 10 to 15 patients per day,” Telemedicine improves access to Blue Cross Blue Shield of Michi- recognize the practices to avoid the fragmentation educating sta or physicians on use Ripley said. “You have to do it with care for people who live in remote gan and Blue Care Network are need to of care and overuse of antibiotics of telemedicine technology or ser- the right patients and the right areas and enhances psychological working with 23 physician organiza- that could occur if their patients use vices. symptoms, but it is the future." services by allowing psychiatrists to tions to encourage the use of tele- incorporate stand-alone urgent care telehealth In 2012, Michigan legislation vast- support clients between visits and medicine services. telehealth into centers.” ly expanded the types of telehealth Telemedicine services write prescriptions, he said. e Michigan Blues also are ex- So far, 17 physician organizations and telemedicine video services re- con rmed for mental Lezotte said the recent expansion pected to create additional nancial their primary care have submitted telemedicine plans imbursed by private payers. Medi- health patients of telehealth laws in Michigan is incentives under their physician practices to avoid that could lead to additional pay- care and Medicaid already pays for a helping to shorten the distance be- group incentive program, a quality the fragmentation ments in May, ocials said. Six of wide range of services, although it Last month, Gov. Rick Snyder tween patients and physicians or improvement program for medical the groups have launched telehealth limits payment to specic health signed Senate Bill 213, which clari- other health care providers, increas- groups. of care and services in some of their practices care sites, excluding home use. es that state law allows physicians ing access and making the customer In a meeting earlier this year, Blue overuse of and another six groups are assessing On the other hand, private payers and mental health providers to pre- experience more convenient and ef- Cross ocials discussed plans to ex- options. like Blue Cross pay for privacy-com- scribe controlled substances fective. pand such telemedicine services as antibiotics...” Blue Cross’ PGIP program includes pliant video encounters and tele- through telehealth services. e bill “ ere are still some issues out electronic visits initiated by patients, Margaret Mason, Blue Cross health more than 40 physician organizations phone encounters from their home was supported widely by hospital there, like licensure across jurisdic- urgent care visits and other online care value business consultant and 19,000 doctors in Michigan. ey or another originating site. Patients and physician organizations and en- tions. e doctor has to be in the reimbursed services like scheduled are paid to meet nearly 30 initiatives can participate using their smart- sures timely access to care and med- same state where the patient is,” primary care visits, specialist consul- vey,” Margaret Mason, Blue Cross or measurements that includes oer- phones or tablets, a Blue Cross o- ication for mental health patients, Lezotte said. “ at is the next (bill) tations, care management and be- health care value business consul- ing evening and weekend hours, dis- cial said. regardless of where they live. pending. Michigan wants to allow” havioral health, Blue Cross ocials tant, said in a statement. ease registry, quality and cost mea- Services include e-visits for ur- Mark Lezotte, a health care attor- physicians to prescribe across state told Crain’s. “In our meetings with providers, sures and the patient-centered gent care initiated by patients, ney with Butzel Long, said SB 213 lines in co-licensure agreements “We found a great deal of interest we discussed reimbursement and medical home program. scheduled primary care visits, spe- xed problems in SB 753, a tele- with other states. in telehealth after including a series the type of technology required to While details on the measure- cialist consultations, care manage- health bill that was approved last fall Jay Greene: (313) 446-0325 of questions about it in our 2016 implement telehealth in their oc- ments for telemedicine are under ment and behavioral health, Blue and went into eect last month. e Twitter: @jaybgreene PGIP Physician Organization sures,” Mason said. “ e physicians rec- development, PGIP will help quali- Cross said.

Michigan rolls out new automated online prescription system By Jay Greene “The data is in cent to 1,745, according to a report by tem,” Gaedeke said. “ e data is require doctors to use MAPS when [email protected] the Michigan Department of Health more readily available to practi- prescribing controlled substances As the number of heroin overdoses real time versus and Human Services. Nationally, opi- tioners.” on schedules 2 through 5. SB’s 236 and drug poisonings have quadru- 24 hours it took to oids, including prescription opioid Providers can also view alerts on and 237 would facilitate the devel- pled in Michigan since 1999, Michi- pain relievers such as hydrocodone patients, Gaedeke said. Alerts could opment of a lesson plan that out- gan has launched an improved sys- upload to the and morphine, as well as illegal drugs tell a provider if the patient has a sub- lines the dangers of prescription tem that doctors and other controlled system. The data such as heroin, killed more than stance abuse problem or that treat- drugs to be used in stateschools. e substance providers are encouraged 28,000 people in 2014, more than any ment isn’t working. For example, an bills are in the Senate Committee on to use to more accurately track pre- is more readily year on record. At least half of all opi- alert could show a provider that a pa- Health Policy. Last year, Schuitmak- scription drugs in an eort to combat available to oid overdose deaths involve a pre- tient has seen more than six doctors er introduced similar legislation rising overdose deaths. practitioners.” scription opioid. in last 60 days, a sign they could be that died. Some legislators wanted But only an estimated 30 percent Under the new MAPS, physicians shopping for prescriptions. to wait until the MAPS system was of physicians who prescribe opi- Kim Gaedeke, state director of the are required to rst enroll in the pro- “ e provider can ask questions of up and running before approving oid-based painkillers used the old bureau of professional licensing gram before checking patients and patients, maybe look to see if there is the bill. TRINITY HEALTH Michigan Automated Prescription reporting prescriptions lled. e a problem, a substance abuse pro- Gov. Rick Snyder has said he sup- The Trinity Home Care System, a percentage that Lt. Gov Bri- ports that really streamline the inter- state spent $2.47 million to replace gram, or treatment not addressing ports the four-bill package. Connect telemedicine kit an Calley, State Sen. Toyna Schuit- action doctors have with the current the old MAPS system and another $2 the pain,” she said. Brad Bauer, an executive with Lou- includes a wireless-enabled maker and other supporters of the system versus the prior platform,” million for ongoing maintenance. e MAPS system, however, does isville-based Appriss Health, which is tablet and devices that let new tracking system hope to change. Krhovsky said. “ e accuracy of the Kim Gaedeke, state director of the not mandate the provider report data the state’s MAPS vendor, said the patients collect weight, blood Reluctance of doctors to use MAPS data and the speed at which the infor- bureau of professional licensing, said to the state or law enforcement, she company is in 43 states with similar pressure and other information. primarily has been the 10-minute mation can be obtained by the pre- 17,000 prescribers have registered said. online systems. wait to verify prescriptions and the scriber is vastly improved over the during the rst week, which is 36 per- Over the past two months, Schuit- “Every state is dierent,” he said. diculty in reading data as it was pre- previous iteration.” cent of the 51,000 licensed prescrib- maker, R-Lawton, and a dozen other “In voluntary states, 30 percent to 40 ture also can help seniors with de- sented, said David Krhovsky, an an- With the system up and running ers for Schedule 2-5 controlled sub- lawmakers introduced several bills to percent of providers are registered. In pression, said Denholm, who also is a esthesiologist and president of the since April 4, Krhovsky said physi- stances. Last year, about 30 percent require doctors who prescribe Sched- states mandated by state law, you see nurse. “ is allows for a safety net for Michigan State Medical Society. cians are telling him and the society of prescribers were registered, but ule 2-5 controlled substances pre- a spike ... up to 80 percent are regis- people who are living alone.” “ e new system provides detailed that the new system is an upgrade. there were duplicate registrants. scriptions dispensed by pharmacies tered.” Jay Greene: (313) 446-0325 information about patient prescrip- In 2014, the number of drug over- “ e data is in real time versus 24 and practitioners to use MAPS. Jay Greene: (313) 446-0325 Twitter: @jaybgreene tion history as well as analytical re- dose deaths in Michigan rose 14 per- hours it took to upload to the sys- Senate Bills 166 and 167 would Twitter: @jaybgreene 12 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 CRAIN'S LIST: LARGEST STAFFING-SERVICE COMPANIES Ranked by 2016 revenue Company Revenue Revenue Average daily No. of W-2 Address ($000,000) ($000,000) employment Annual payroll forms issued No. of offices in Rank Phone; website Top local executive(s) 2016 2015 2016 2016 2016 metro Detroit 2016 Kelly Services Inc. Carl Camden $5,276.8 $5,518.2 150,000 NA 500,000 7 1 999 W. Big Beaver Road, Troy 48084 president and CEO (248) 362-4444; www.kellyservices.com Strategic Staffing Solutions Inc. Cynthia Pasky 350.0 303.0 NA NA NA 2 2 645 Griswold St., Suite 2900, Detroit 48226 president and CEO (313) 596-6900; www.strategicstaff.com The Bartech Group Inc. B David Barfield 345.0 305.5 2,200 130.0 3,400 1 3 27777 Franklin Road, Suite 600, Southfield 48034 CEO (248) 208-4300; www.bartechgroup.com Acro Service Corp. Ron Shahani 331.8 318.3 4,023 150.0 13,665 1 4 39209 W. Six Mile Road, Suite 250, Livonia 48152 president and CEO (734) 591-1100; www.acrocorp.com AccessPoint LLC Greg Packer 229.3 227.4 5,634 195.2 12,869 3 5 28800 Orchard Lake Road, Farmington Hills 48334 CEO and chairman 866-513-3861; apteam.com Stefanini Inc. Spencer Gracias 221.0 220.0 1,401 0.0 2,078 1 6 27335 W. 11 Mile Road, Southfield 48033 CEO (248) 357-2866; www.stefanini.com Vision Information Technologies Inc. David Segura 210.0 251.0 NA NA NA 1 3031 W. Grand Blvd., Suite 600, Detroit 48202 CEO 7 (877) 768-7222; www.visionit.com Christine Rice president Danlaw Inc. Raju Dandu 85.0 118.2 203 20.2 240 3 8 41131 Vincenti Court, Novi 48375 founder and chairman (248) 476-5571; www.danlawinc.com TTi Global Inc. Lori Blaker 82.7 82.4 280 15.4 336 1 9 3903 W. Hamlin Road, Rochester Hills 48309 president and CEO (248) 853-5550; www.tti-global.com Rapid Global Business Solutions Inc. Nanua Singh 71.8 69.0 815 64.9 2,211 1 10 1200 Stephenson Highway, Troy 48083 chairman and CEO (248) 589-1135; www.rgbsi.com Epitec Inc. Jerome Sheppard 68.0 67.5 900 48.0 1,800 1 24800 Denso Drive, Suite 150, Southfield 48033 CEO 11 (248) 353-6800; www.epitec.com Josie Sheppard president Reliable Software Resources Inc. Ravi Vallem, CEO; 63.2 58.0 614 NA 696 1 12 22260 Haggerty Road #285, Northville 48167 Sridhar Kodati, CFO; (248) 504-6869; www.rsrit.com Venkat Gone, president The Dako Group Scott Baker 58.0 51.0 NA NA NA 1 2966 Industrial Row Drive, Troy 48084 CEO 13 (248) 655-0100; www.dakogroup.com David Kosuth president G-TECH Services Inc. Kouhaila Hammer 56.0 56.0 585 NA 850 1 14 17101 Michigan Ave., Dearborn 48126 chairman (313) 441-3600; www.gogtech.com W3R Consulting Eric Hardy 49.0 57.0 390 18.0 627 1 15 1000 Town Center, Suite 1150, Southfield 48075 chairman, president and CEO (248) 358-1002; www.w3r.com Modis Inc. Carl Lucke 48.0 42.0 650 34.0 960 1 16 3000 Town Center Drive, Suite 2600, Southfield 48075 vice president (248) 357-4200; www.modis.com Kyyba Inc. Thiru Ganesan 42.6 39.2 NA 31.4 679 1 17 28230 Orchard Lake Road, Suite 130, Farmington Hills 48334 president and CEO (248) 813-9665; www.kyyba.com CrossFire Group Deborah Schneider 36.0 41.0 NA NA NA 2 691 N. Squirrel Road, Suite 118, Auburn Hills 48326 co-founder and CEO 18 (248) 364-0007; www.xfiregroup.com Martin Rosenau co-founder and COO Malace & Associates Inc. Larry Malace 34.1 33.1 1,080 25.0 2,130 1 19 5700 Crooks Road, Suite 112, Troy 48098 president (248) 720-2500; www.malacehr.com Contract Professionals Inc. James Cowper 32.5 32.5 500 NA 800 1 20 4141 W. Walton Blvd., Waterford 48329 president (248) 673-3800; www.cpijobs.com Brightwing Aaron Chernow 29.4 30.5 297 24.7 509 1 431 Stephenson Highway, Troy 48083 CEO 21 (248) 585-4750; www.gobrightwing.com George Opitz president Automotive Quality & Logistics Inc. Sangeeta Ahluwalia 28.0 24.0 NA NA NA 1 22 14744 Jib St., Plymouth 48170 CEO (734) 459-1670; www.aql-inc.com Blue Chip Talent Nicole Pawczuk 14.5 11.0 NA 7.6 NA 1 23 43252 Woodward Ave., Suite 240, Bloomfield Hills 48302 CEO (248) 858-7701; www.bctalent.com ASG Renaissance LLC C Lizabeth Ardisana 13.6 15.3 135 10.6 323 2 24 22226 Garrison, Dearborn 48124 CEO (313) 565-4700; www.asgren.com Human Capital Staffing LLC Mary Oxendine Adams 5.8 7.7 125 5.8 441 1 25 6001 Adams Road, Suite 208, Bloomfield Hills 48304 president (248) 593-1950; www.hcsteam.com

This list of temporary-employer/staffing-service companies and companies that provide such services is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. 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. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Tata Technologies Inc. which was No. 2 on last year's list was not able to submit data before publication. Technical Engineering Consultants which was No. 10, Millennium Software Inc. which was No. 15, Arrow Strategies which was No. 19 and Industrial Control Repair which was No. 20 on last year's list all declined to participate this year. NA = not available. B Acquired by the U.K. staffing company Impellam Group plc in December 2015. C Kyyba Inc. purchased all staffing contracts belonging to ASG Renaissance in January.

LIST RESEARCHED BY SONYA D. HILL CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 13 CALENDAR RELAX THIS WEDNESDAY, APRIL 19 John Eaton, client strategist for the bers. Website: econclub.org. Macomb-Oakland University Incuba- SPRING BREAK... Who Do You Trust? Leading in an tor, will discuss resources the state of Hacking Health Windsor-Detroit III. WITH PRIVATE Era of Populism. 11:30 a.m.-1:30 Michigan oers including: business 5 p.m. May 5 to 4 p.m. May 7. WEtech p.m. Detroit Economic Club. Rich- incubators, SmartZones, various sup- Alliance and TechTown Detroit. A AVIATION. ard Edelman, port services, university technology weekend-long cross-border hack- president and acceleration and commercialization, athon for healthcare innovation with $W$ 33HQHQWDVWDU$QWWDVWWDUD $YLYLDWLRQRXUGHGLFDWLDWDWLRRQ RXUU GHGHGLFL DWHGHHGWWHDHDPP CEO of Edel- and funding programs. Velocity Cen- IT and healthcare professionals across LVDYDLODEOH³EHIRUHGXULQJDQG man, will dis- ter, Sterling Heights. Free. 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Deals & Details item as a model for N. John R, Rochester Hills. e loca- Telephone: (248) 681-1200. Website: your release, and look for the tion will house its construction boothpatterson.com. appropriate category. Without L J Ross Associates, Inc. company. Phone: (248) 413-5201. complete information, your item will 4 Universal Way, Jackson, MI 49202 Website: freshstarthomesmi.com. NAME CHANGE not run. Photos are welcome, but we (517) 544-9100 J Fidelis SecureCare of Michigan cannot guarantee they will be used. www.ljross.com J Motor City Carpet & Flooring, Inc., Troy, is now operating as Mich- 14 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 Benzinga says it was among victims SPOTLIGHT Karmanos names in pump-and-dump schemes development chief Barbara Ann Karmanos Cancer In- By Dustin Walsh Jason Raznick, CEO of Benzinga, said its stitute named Katrina Studvent its [email protected] “Indeed, we are victims contributor site is now curated, vetted and new chief development o cer, a posi- Detroit-based financial and stock news as well, as we were edited internally — a move that occurred in tion created in the website Benzinga found itself among several unaware that the 2015 after the site was overrun by spam. wake of Nick Kar- caught up in an announcement this week of “Anyone could post there; we got no mon- manos’ departure federal charges of illegal stock promotion by writers had been ey from it,” Raznick said. “We’re of the belief in September. outside writers and companies who plied compensated for these that we’re not the smartest people on stocks, Studvent, 41, the sites. so we felt (that site) was a way to get outside will oversee the None of the sites, including Benzinga, or stories, which also ideas. We’re better off this way, and we don’t cancer research their employees were charged with wrong- appeared on multiple, run the risk of something like this happen- and provider net- doing. But they were identified as publish- ing again.” work’s philan- ing content from outside contributors that well-respected During the time of the scheme, Benzinga thropy and fund the U.S. Securities & Exchange Commission nancial websites.” published third-party contributor content Katrina Studvent development, re- alleges were paid by publicly traded compa- Anthony LaVerde, Benzinga on a section of its site where anyone could porting to Presi- nies to play up stocks as part of pump-and- publish. It ran the disclaimer, “The follow- dent and CEO Gerold Bepler, M.D. dump schemes. The cases highlight the risks ing article is from one of our external con- Studvent, who has been at Kar- to media sites that offer a forum for such nies and writers were paid to pen flattering tributors. It does not represent the opinion manos since 2010, previously served contributed content. stock commentary under the guise of im- of Benzinga and has not been edited.” as director of breast cancer special In a statement, Anthony LaVerde, Benzin- partiality on popular stock news sites. In a The SEC alleges the writers were involved programs at Karmanos and director ga’s chief content officer, said Benzinga is a lawsuit, the SEC claims 494 articles written in a scheme, where insiders and the authors and race chair of the Susan G. Komen victim, not a culprit. about stocks between 2011 and 2014 omit- would buy up shares, publish especially flat- Detroit Race for the Cure, Michigan’s “Indeed, we are victims as well, as we ted or misled readers about whether the au- tering stories urging investors to buy, then largest breast cancer event, accord- were unaware that the writers had been thor got paid by a third-party source for the sell them for a profit. The authors were al- ing to the news release. She will step compensated for these stories, which also coverage. legedly paid as much as $200,000 a year to down as race chair after this year’s appeared on multiple, well-respected finan- Benzinga published seven of these arti- publish dozens of stories a month, accord- event on May 13 at Comerica Park in cial websites,” LaVerde said in the state- cles, according to the filing, which amounts ing to the lawsuit. downtown Detroit. ment. to a small blip compared to other sites like The authors used aliases and fictional On Monday, the SEC charged 27 individ- Seeking Alpha. Benzinga operates on a dif- credentials to appear legitimate to the sites uals and companies with fraud as part of a ferent business model than Seeking Alpha, and readers. Diplomat Pharmacy scheme to publish favorable articles with Forbes and Motley Fool, also tied to the suit. The conspirators were linked to public hires new CFO the aim of inflating stock prices. Overall, 17 Benzinga’s news team reports on financial companies, such as Galena Biopharma, Im- Atul Kavthekar has been named have agreed to settlements, the SEC said. and stock news, where the others primarily munoCellular Therapeutics and Lion Bio- the new CFO and treasurer of Diplo- Litigation is continuing against 10. publish contributor content with no in- technologies, which agreed to pay more mat Pharmacy Inc., an independent The SEC alleges communications compa- house reporting staff. than $4.8 million in settlements and fines. Flint-based specialty pharmacy. He will assume his post May 1. Kavthekar, 49, will be responsible ADVERTISEMENT SECTION ARCHITECTURE MANUFACTURING for the nancial operations and in- vestor relations by Amy Chesterton Steve Brennan managing liquidi- Director of Urban Vice President of Atul Kavthekar ty, balance sheet Planning Data Strategy and risk and capital ROSSETTI Analytics market transactions. He will report to Amy Chesteron, AICP, Carhartt, Inc. CEO and Chairman Phil Hagerman. RLA joins ROSSETTI as Carhartt has hired Steve Sean M. Whelan stepped down as their Director of Urban Planning, a er 15 Brennan as its vice president of data CFO, e ective Dec. 31, as part of oth- years at Hamilton Anderson Associates. At strategy and analytics. Brennan will aid er leadership changes last year. ROSSETTI, Amy will lead the rm’s urban various business functions in their ADVERTISING & planning services, addressing complex decision-making processes and improve urban challenges with intelligent, creative customer experience by driving an Gleaners names CFO, MARKETING solutions and will strengthen ROSSETTI’s enterprise data management strategy. development o cer abilities in research, mapping, policy, Gleaners Community Food Bank Je Marston transportation, retail environments, of Southeastern Michigan has hired Vice President community and stakeholder engagement ENGINEERING & Ryan Hoyle as chief development of- Comcast Business that enable their clients to experience new cer and Linda Makris as CFO. ey possibilities. replace Gleaners leadership mem- Je Marston has been CONSULTING bers who left for other opportunities. promoted to vice Hoyle, 41, replaces Doug Czajkow- president of Comcast Susan A. Cook ski, who took a post as associate dean Business’ Heartland region, which includes BOARDS Technical Director, for development at Western Michi- Michigan, Indiana and Kentucky. In this NEPA Services gan University in Kalamazoo. Hoyle, role, Marston is responsible for all general Ingrid Tighe a Rutgers University graduate, comes management of Comcast Business’ Partner Engineering Executive Director to Gleaners from a previous position Heartland region, including sales, cash and Science, Inc. as vice president of business develop- ow, revenue, P&L, operations and Birmingham (Partner) ment and talent acquisition for New marketing. He leads an organization of Shopping District Partner has warmly welcomed Susan Jersey-based consulting rm GalaxE. more than 200 individuals across the The Birmingham Cook to the rm as Technical Director of Solutions Inc. three states. Shopping District Board National Environmental Policy Act (NEPA) Before taking the position of CFO, of Directors recently announced the Services. Ms. Cook provides technical Makris was chief nancial specialist appointment of its new Executive Director, oversight and assistance to sta and for Plymouth-based Financial One Ingrid Tighe. Tighe brings 12 years of clients on projects nationwide. Formerly a For more information about Accounting, Inc. She replaces Mi- experience in economic development, division manager for ATC Group Services, advertising in this section, chelle Sherman, who is now CFO at business development, commercial real she brings 20+ years of experience and Detroit-based Southwest Solutions. contact Lynn Calcaterra at estate and federal/state government. Her leadership in transactional due diligence Markis is a certi ed public accoun- (313) 446-6086, or email professional experience, in combination and NEPA services. Partner provides tant and graduated from the Univer- [email protected] with her Master’s Degree in Public engineering, environmental and energy sity of Michigan. Administration, will be invaluable in serving assessments and solutions for the the Birmingham Shopping District. commercial real estate industry. April 17, 2017 CRAIN’S DETROITCRAIN BUSINESS’S DETROIT BUSINESS // APRIL 17, 2017 Page15 15

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MARKET JOB FRONT CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS PLACE POSITIONS AVAILABLE Fewer than eight ights depart on an average daily basis from Detroit’s Coleman A. FRANCHISE OPPORTUNITIES Young International Airport on Conner Street. RETIREMENT SYSTEMS OF THE CITY OF DETROIT Joint Personnel Committee Detroit seeks nonaviation 500 Woodward Ave, Suite 3000 Detroit, Michigan 48226 uses for city airport JOB TITLE: Executive Director - Retirement Systems SALARY: $150,000 - $200,000 By Chad Livengood company purchased from the city. (Starting salary is dependent upon [email protected] “Industrial users like being near qualifications and experience) Mayor Mike Duggan’s administra- other industrial users, so there may The City of Detroit has two distinct and separate retirement systems: the General Retirement System; and the Police and tion is seeking proposals from real be some rationale for that,” Howbert FRANCHISES AVAILABLE CHECK US OUT AT Fire Retirement System. The legal and fiduciary responsibility for the general administration, management, and proper operation of the Retirement Systems, and for estate developers about how the 264- said. “But we need the consultant to WWW.PASSPORTPIZZA.COM making effective their provisions, is vested in each Retirement System’s Board of Trustees. acre Coleman A. Young International go through that in detail.” CALL (586) 992-8800 OR EMAIL [email protected] The Retirement Systems provide services and benefits to approximately 9000 active Airport could be used for nonavia- Coleman A. Young International members and 12,000 retirees and beneficiaries. Currently, combined Retirement System tion purposes amid continued oper- Airport, which was formerly called INDUSTRIAL SERVICES assets are in excess of $4 billion. ating losses and limited use. Detroit City Airport, has two run- Each Retirement System is comprised of two distinct plans: a legacy traditional defined e City of Detroit’s Oce of Con- ways that are 5,090 feet and 4,025 C.W. JENNINGS benefit plan and a new hybrid defined benefit plan. Information about each Retirement tracting and Procurement issued a feet long. INDUSTRIAL EXCHANGE System is available on the RSCD website at www.RSCD.org. Global Industrial Consulting Please refer to the website for the full job description and benefits. request for proposals ursday seek- e Duggan administration’s new Submit information for this job posting to: [email protected] ing plans from development rms openness to redeveloping the air- Construction • Acquisitions and land use consultants that would port comes as the facility continues Exporting • Financing MISCELLANEOUS POSITIONS AVAILABLE create the most “economic impact to mount losses that city taxpayers (855) 707-1944 and job creation in either aviation or ultimately shoulder. Webasto Roof Systems, Inc. has an no-aviation capacity.” e airport is expected to generate BUSINESSES FOR SALE SURVEY opportunity at our Rochester Hills, MI facility for a Product Engineer - Senior to Detroit’s RFP seeks proposals for $819,824 in revenue this year, but cost WHITTEMORE, MI WOODSHOP provide technical leadership and direction redeveloping the airport land for an $2,124,195 to operate — a $1.3 million to customer-focused teams of design Fully Equipped Millwork/Cabinet Shop ANALYZE industrial or mobility park, which operating loss. It posted operating engineers on new products and customer 6888 Whittemore Rd, Whittemore, Mi programs. Requires a Bachelor’s degree or could eectively end private and cor- losses of $736,751 in the 2016 scal 20,000 sq ft - $225,000 MATCH equiv. in Mechanical Engineering or a porate aviation at the east side airport year and $396,132 in 2015. For the Call Pete @ 989 239-3666 related engineering field and 5 years of related, progressive post-baccalaureate that has just 66 full-time workers. 2018 scal year, the airport’s operating Sahasa Realty Corp experience in product engineering on City ocials also want proposals loss is estimated to be $885,000. mechanical assemblies. Must also have about what it would cost to increase ere are fewer than eight depar- Call Us For Personalized demonstrated ability with each of the following: 1) establishing drawing datums aviation use of the airport, which tures at Coleman A. Young Interna- Service: (313) 446-6068 using GD&T and reviewing with supply hasn't had commercial passenger tional Airport on an average daily FAX: (313) 446-034 7 base to ensure components can be CrainsDetroit.com/JobConnect | airline service since 2000 when Pro basis. e airport directed the take- E-MAIL: cdbclassified @crain.com produced to meet the functional requirements; 2) utilizing 8D, CAD, DOE, Air discontinued service. o of 2,085 ights in 2016, according INTERNET: DG&T, DFMEA, ECM, Robust Design, and “We haven’t done a study of the to the city's RFP. www.crainsdetroit.com/section/classifieds Call or email today for information PTS in an automotive engineering airport of this nature in a very long Federal Aviation Administration See on a custom advertising plan! environment and applying specifically to the development of wind deflector systems; time – and a lot has changed in the regulations have prevented the city Crainsdetroit.com/Section/Classifieds [email protected] 313.446.6068 and 3) utilizing understanding of customer city,” said Jed Howbert, executive di- from simply closing the airport or for more classified advertisements specifications and competitive technical rector of the mayor’s jobs and econ- solutions. All experience may have been ceasing taxpayer support without al- gained concurrently and must have been omy team. “We need someone to ternative nancial support. acquired after completion of the Bachelor’s look at the facts, walk us through the “Other communities around the degree program. Minimal travel. If options and help us come up with a country have chosen to shut down interested, please email CV to: REAL ESTATE [email protected]. EOE set of proposed recommendations.” airports and have found ways to nav- Any attempt by the Duggan ad- igate that,” Howbert said. “We want INDUSTRIAL PROPERTY OFFICE SPACE POSITIONS AVAILABLE ministration to shut down the airport the consultant to help us understand would have to be approved by City that to inform the decision.” ROMEO, MI STUDIO SPACE COFFEE IS FOR CLOSERS Council, whose members have On the capital expense, the cost to (9/WOODWARD) BUSINESS DEVELOPMENT 75 Ac. Vacant Ind’l zoning, poss. multi- DIRECTOR WANTED passed resolutions in recent years city taxpayers for continued mainte- resid’l or comm’l. opp. All Util’s. 1,334 2,500 Sq. Ft. ~ $1,500 Per Month Rd. Frontage, 1/2 Mi. from X-way exit. Also A large Michigan non-profit, membership calling for more investment in the fa- nance of the airport escalates. association is seeking a driven Call George @ 586-531-2436 1,000 Sq. Ft. ~ $500 Per Month. cility to lure more private and com- “Airport management has re- Business Development Director [email protected] Call 248-398-7000 mercial planes to land in Detroit. quested $29,658,620 in capital ex- with integrity, execution, vision and “I believe that this is a viable asset penditure funding for FY18,” accord- professionalism to join our growing team. that needs to be invested in and it ing to the city’s RFP. AUCTIONS Great work environment and excellent benefits package. could be a huge revenue generator, a Ann Arbor-based Avight Corp. COMPLETE LIQUIDATION | LIVE AUCTION & WEBCAST job creator in the city of Detroit,” said has a contract with the city through 160,000 SF CNC Send resume and salary requirements to: Councilman Scott Benson, whose June 30, 2019, to provide aeronauti- BURTEK ENTERPRISES MACHINING & E-mail: [email protected] 3rd District includes the airport cal services, manage the main termi- 50405 PATRICIA STREET IN CHESTERFIELD, MI 48051 FABRICATION VICE PRESIDENT OF MEMBER along Conner Street. “I do not sup- nal building and provide day-to-day FACILITY port shutting the airport down." maintenance of the airport, its park- WEDNESDAY, APRIL 26TH AT 9AM EDT ENGAGEMENT & VOLUNTEERISM Redevelopment of their airport ing lots and aircraft taxi areas. • CNC Machining MATERIAL INVENTORY EXECUTIVE OFFICE FURNITURE Dynamic professional association is • Fabricating land for industrial uses could be e city’s Oce of Contracting • 300,000-lbs. Steel (100+) Lots Late Model Furniture seeking an exceptional leader with • Toolroom Plate to 8” Thick marketing or non-profit experience to linked with the nearby I-94 Industri- and Procurement has set a June 8 • Forklifts Sold Online Only take its membership efforts to the next • 100,000-lbs. Steel al Park, where Urbana, Ill.-based deadline for rms to submit propos- • Trucks Bidding Ends: April 27th at 11AM level.

PUBLIC AUCTION • Paint Equipment & Aluminum Stock supplier Flex-N-Gate Corp. is build- als for future use of the airport. Buyer's Premium: 15% Onsite, 18% Online Send resume and salary ing a 500,000-square-foot manufac- Chad Livengood: (313) 446-1654 requirements to: turing plant on 30 acres of land the Twitter: @ChadLivengood 513/738-3311 | myronbowling.com [email protected] 16 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017

path’s northern edge. And those are just a handful of the HIGH-RISE It was part of a large deal that in- projects being spurred forward by FROM PAGE 1 cluded 11 buildings totaling about the incoming transportation system, Grasso Holdings had the Gabriel 64,000 square feet along Woodward which is expected to open in less Richard Building on Michigan Ave- between Milwaukee Street and than a month. nue downtown under contract but it Grand Boulevard. Maurice Cox, the city’s planning ultimately was purchased by Joe Sue Mosey, executive director of director, said he has not been briefed Barbat. A source said he also had a Midtown Detroit, said two years ago on Grasso’s plans and cautioned that pair of apartment buildings at Mar- that the buildings, which range from he “can’t count the number of specu- tin Luther King Jr. and Cass avenues 1,072 to 25,092 square feet, were ex- lative development projects that and on Charlotte Street totaling pected to be converted into mixed- come on our radar and amount to about 90 units but never closed on use with retail, multifamily residen- nothing.” them. tial and perhaps even boutique hotel “I think we get about a dozen a If a new development there hap- space. week,” he said. pens to the scale being discussed, it But he also said the QLine has would rival 15-story Cadillac Place The QLine eect been a key factor in boosting devel- and the 28-story Fisher Building for opment interest along the streetcar’s prominence along the Grand Boule- e QLine, set to begin operations route. vard corridor, where developers like next month, has been one of the “ere is no question that the e Platform LLC, run by Peter driving forces behind new invest- QLine, with that singular, 3.3-mile Cummings and Dietrich Knoer, have ment along Woodward downtown investment, all of the neighborhoods staked a claim to large residential north to New Center. to the east and the west of it have be- projects capitalizing on new street- In particular, a new 52-story resi- come transit-oriented development car transportation coming to the dential tower on the former J.L. Hud- opportunities,” he said. “at’s a area as well as demand for new son's department store site is good thing for Detroit, and it talks apartments. planned by Dan Gilbert. about the power of that xed transit e project faces any number of e Platform has a bevy of new investment that developers can potential snags, the largest of which apartment projects in the construc- count on being in place in perpetu- is securing nancing in a greater tion or development phases on and ity.” downtown market that has seen lots immediately surrounding Grand Grasso, adding that he wouldn’t of development interest from local, Boulevard. Gilbert also has a resi- demolish the existing building on national and international players dential tower planned to the east of the site, said the QLine is a key rea- but still almost always requires gap the QLine route on a two-block area son for him looking to develop in nancing and incentives to make in the central business district Detroit. projects work nancially. known as e Monroe Block. “If it wasn’t for the QLine, I proba- Perhaps most immediately, a pur- e Roxbury Group, a De- bly wouldn’t be considering it, hon- chase agreement for the property troit-based development company, estly, because if there was no rail line could fall through, as well. is redeveloping the 12-story former coming in, I would have to build a lot Multiple messages to Midtown Professional Plaza building in Mid- more parking.” Detroit were not returned. town in a $22 million project that will Reporter Annalise Frank contrib- Midtown Detroit purchased the bring 72 apartments and 2,000 uted to this report. KIRK PINHO/CRAIN’S DETROIT BUSINESS property in 2015 as part of a broader square feet of retail space to the mar- Kirk Pinho: (313) 446-0412 A large, skyline-changing residential development is under consideration for the strategy to reshape the streetcar ket by the end of the year. Twitter: @kirkpinhoCDB southwest corner of Woodward Avenue and West Grand Boulevard.

FLOYD “A lot of the FROM PAGE 3 network that Endeavor brings From there, they began developing a three-piece wood bed frame to the table … is and steel legs that could be shipped applicable to us, by mail. More than 50 percent of the company’s sales are in Chicago, thinking about New York, Los Angeles, San Fran- growth.” sisco and Washington, D.C., Ho Kyle Ho said. “Our core market is a millennial build furniture that could be or- who lives in a city,” he said. dered online after struggling to fur- Ho said he wants to use Endeav- nish an apartment in Chicago when or’s network of business owners he worked for an architecture rm who mentor young entrepreneurs to there. expand the company’s sales and “Getting out to the Ikea in the distribution reach into Europe and suburbs was looking like it was go- develop a fulllment center on the ing to take my entire weekend,” West Coast. e company currently Ho said. “at was the beginning packages and ships its bed frame and the impetus of thinking about sets through Evans Distribution Sys- furniture and how could we build a tems in Melvindale. better furniture company.” “A lot of the network that En- e company is named Floyd in COURTESY OF DROUGHT deavor brings to the table … is ap- honor of Ho ’s father, grandfather Beet juice is bottled at Drought, a raw juice maker. plicable to us, thinking about and great grandfather, all of whom growth,” Ho said. “We have a lot of were steelworkers named Floyd in pull to go into international mar- Youngstown, Ohio. but also we’d like to see more of our in the next few weeks on the west kets.” e bed frames are entirely made DROUGHT namesake stores.” side of Woodward just south of 14 Metro Detroit companies in En- in the U.S. e steel feet are fabricat- FROM PAGE 3 James’ sisters who run the juice Mile Road, James said. Drought’s deavor’s entrepreneurship pro- ed in Akron, Ohio, and powder-coat- Drought hopes to use Endeavor’s maker include: CEO and co-founder other Royal Oak store is south of 12 gram include raw juice producer ed and shipped from suburban De- network of entrepreneurs to help Caitlin James; COO Jenny James; and Mile Road on the east side of Wood- Drought, McClure’s Pickles, nan- troit. e wood planks are build a national presence in the raw Jessie James, head of new business. ward. cial and stock news website Ben- manufactured in Virginia and Indi- juice market, James said. eir company began with a $13,000 “We’re going to capture north- zinga, chickpea pasta maker Banza, ana. “ey’re opening you up to a com- Kickstarter campaign in 2011. bound (Woodward Avenue) trac, digital products company Vector- Floyd has a six-person oce in munity of very serious businesspeo- Drought’s other three stores are in which we already have, and south- form, high school sports broadcast- Corktown, but will be moving to ple who could take you to the next Bloomeld Hills, downtown Plym- bound trac with this new location,” er Varsity News Network and Algal Eastern Market in the coming level,” James said. “We realized that outh and inside the Chrysler House James said. Scientic Corp., a developer of ani- months, Ho said. wholesale is probably the quickest building in downtown Detroit. Chad Livengood: (313) 446-1654 mal and human health products. Chad Livengood: (313) 446-1654 way to get there, in terms of reach, e new Royal Oak store will open Twitter: @ChadLivengood Ho said he was inspired to Twitter: @ChadLivengood CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 17

and organizations conduct issues and have a green infrastructure project parcels where Detroiters have bought CRISIS risk management regularly before a DRAINAGE designed,” Brown said. vacant side lots and built additional FROM PAGE 1 crisis ever emerges — identifying and FROM PAGE 3 Water department customers that parking spaces, Brown said. Brands build their reputation partly analyzing potential or emerging issues Jennings said the monthly water bill were originally being charged $852 “Parking lots were a big part of it on powerful images. Now, negative and risks, taking corrective action and for his northwest side church skyrock- per impervious acre will see their — and they weren’t getting a bill be- images can have the same power. properly preparing response plans. eted from $650 per month to $7,500 rate gradually reduced to $677 by July cause they didn’t have an account,” “It can take years to build a brand, “Being prepared in the thick of a cri- per month after the city began assess- 2022 to match the rate charged to the Brown said. but only one second to lose it. And this sis requires investing now in issues ing the storm water drainage fee. 22,000 parcels in the new ve-year Churches in Detroit got big bills is amplied by citizen journalists with management and crisis training,” he e drainage fee and how it was phased-in plan, Brown said. because of their large parking lots. phones in hand capturing every mo- said. “ ere are early warning signs, assessed has been a constant head- “ is all goes away and everybody Shield of Faith Church, 13600 Van ment and posting you just need to look for them and act ache for Phil Cifuentes, owner and goes to one at rate at the end of ve Dyke, has racked up a $65,000 bill instantly on so- upon them. Pay a little now or pay a big CEO of Omaha Automation Inc., a years,” Brown said. with the city water department be- cial media,” said price later.” small automotive and military man- e water department is going to cause the storm water drainage fee Rich Donley, a PR cost cutting by big brands locally ufacturing supplier near the De- oer grants of up to $50,000 for half of costs the 300-member congregation senior vice presi- and nationally fueled some of the troit-Hamtramck border. the cost of water retention projects nearly $5,000 per month, according dent at De- wave of crisis communication bun- “I came into a system that wasn’t on the sites of large churches and to Pastor James Jennings. troit-based gling in recent years, said Matt Fried- charging anyone,” Cifuentes said. businesses to reduce the amount of “It’s actually causing us not to be MCCI. “Public man, co-founder of Tanner Friedman “And then I came into a system that, storm water and impervious surfac- able to meet our expenses, and we’re opinion from public relations rm in Farmington two years later, was charging the larg- es, Brown said. about to go under unless God works a seeing these im- Hills. est water sewerage rates in the coun- Brown has budgeted $5 million for miracle,” Jennings said last week be- Rich Donley: ages says ‘guilty’ “ ey disinvested in PR during the try.” the grants. fore the rollback was unveiled. Need to respond and negatively Great Recession. To the accountants Omaha got billed $15,630 in 2015 Cifuentes said the drainage fee has e drainage fee also was imposed immediately. impacts a brand. who had to order cuts, PR was seen as and the assessment dated back sever- been “a real deterrent” to his plans to to pay for needed sewer infrastructure Companies need an expendable luxury item,” he said. al years, Cifuentes said. buy an adjoining 2.5-acre parcel and upgrades and try to reduce the city’s to respond immediately and sincere- “ e budgets were slashed and com- “If they come down through this build another 40,000-square-foot overall storm water runo that causes l y .” munications became a department of new rate, how does that aect every- manufacturing facility. combined sewage water outows to Donley has witnessed the same cy- low priority. Post-recession, some of one who owes them outstanding “Until this all gets gured out, this discharge into the Detroit River and cle repeat itself over the past 20 years, the budgets have returned, but PR has charges like the $10,000 I owe?” Ci- is just staying idle,” Cifuentes said. River Rouge in violation of state and only now brands can make things lost an important seat at the executive fuentes asked. e drainage fee was partly a re- federal environmental laws. worse instantly with a misguided table in too many companies and is Property owners will still owe the sponse to a 2015 class action lawsuit e U.S. Environmental Protec- tweet. no longer a part of the culture, which water department past-due charges Michigan Warehousing Group LLC tion Agency has required Detroit to And it puts a premium on prepara- is ruled by nance people and law- at the higher rate, but get relief for the brought against the city and its water eliminate all sewage discharges by tion. y e r s .” next few years, Brown said. department for charging some prop- 2022, Brown said. “Many companies and individuals Friedman’s take on the Pepsi and e new phased-in rate structure erty owners the $852 per acre month- e sewage releases vary depend- are not well-equipped to anticipate United incidents is that the damage going before the city water board ly fee and others nothing or as little as ing on heavy rainstorms. and respond in a crisis. ey are not could have been ameliorated with bet- Wednesday will start at $125 eective $20 based on the size of their water Last year, the city released 800 mil- prepared. ( ey’re) insensitive, im- ter, faster handling. April 1, double on July 1, increase to meter pipe. lion gallons of combined sewage and personal, become defensive and usu- “All of the recent corporate situa- $375 in July 2018, $500 in July 2019 “We’re trying to settle that lawsuit storm water, according to DWSD. ally make comments based on emotions have something in common. and $626 in July 2020. In July 2021, by getting everyone on to a more fair In 2014, a torrential August rain tions and limited information, not None started as PR issues. ey be- the per-acre fee will increase to $651, and equitable rate system by putting storm contributed to 6.8 billion gal- facts,” he said. “And then they defend, came PR issues after the companies followed by a nal hike of $26 in July them on the same rate,” Brown said. lons of untreated sewage and storm and that only makes it worse. Ulti- allowed them to quickly escalate,” he 2022. Omaha Automation is part of the water being released — and wide- mately, they may backtrack and give in said. “By having a longer ve-year op- class action lawsuit, Cifuentes said. spread basement ooding in the city due to the pressure. Michael Bsharah, owner of Bsharah portunity to phase in, it gives them e nonpaying customers includ- and northern suburbs. “ e initial statements and rst 24 Public Relations LLC in Dearborn, an opportunity to better budget for ed industrial parcels, commercial Chad Livengood: (313) 446-1654 hours are the most crucial. It sets the said four fundamentals will always be the new cost and also to go out and buildings, churches and residential Twitter: @ChadLivengood tone,” Donley continued. “Show em- relevant in managing a crisis: pathy and sincerity, but don’t force it. 1. Plan as well as possible. Learn the facts and tell the truth. 2. Use good judgment. Don’t blame. Don’t downplay the in- 3. Tell the truth. cident or speculate — this will help 4. Follow through with/ for your au- avoid backtracking and correcting er- dience. rors. Address what is being done and “ e real issue is not so much pre- steps being taken to prevent an inci- venting crises — though doing so is dent from happening again.” important with some structured fore- Despite being able to peddle prod- thought — but, the real question is ucts and services with expensive, so- how to prevent crises from exacerbat- phisticated marketing campaigns, ing or getting out of control, whether large brands often remain inept at it’s being played out through social handling a crisis in the age of Twitter media or otherwise,” he said. and Facebook. Peter Van Dyke, CEO and co-own- “ e omnipresence of social media er of Detroit-based Van Dyke Horn has dramatically changed the way Public Relations (formerly Berg Muir- companies handles crises — and for head and Associates), said a company whatever reason some of the biggest of any size can be prepared to handle haven’t quite caught on,” said Kelly an incident. Rossman-McKinney, CEO at Lan- “You cannot plan for a crisis, but sing-based political public relations you can certainly prepare for one,” he rm Truscott Rossman. “As a result, said. “To start, you need to under- bad news stories go viral before the stand there is an 24/7 instantaneous company even appears to respond — news cycle and in the digital age, any- which is a death knell to its reputa- one can play the role of media.” tion.” at means brands, especially big Responding to an incident with jar- ones, must be ready at all times for an gon instead of clear language is an- incident. other PR mistake, Donley said. “ is doesn’t mean you need to Cheyenne Woods “In the case of United Airlines, us- have all of the answers right away, but ing words like ‘re-accommodate these it does mean you need to know how to customers’ and that the booted pas- position an immediate response with • Tickets senger was ‘disruptive and belliger- condence, yet repentance if appro- • Corporate Hospitality ent’ were out of touch,” he said. “ e priate, and to communicate a sense of company is now paying the price. expectation for next steps,” Van Dyke • Pro-Am ey are not alone — look at the said. “You have then displayed leader- • Sponsorship Opportunities #DeleteUber campaign over its labor ship and responsibility, and allowed practices and then again after sexual for some time to develop a response harassment allegations.” or solution that speaks directly to the Visit volviklpga.com or call 734.707.0789 Donley said the best companies situation at hand.” 18 CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 Kelly Services CEO Watkins to resign from Detroit www.crainsdetroit.com to step down to Editor-in-Chief Keith E. Crain Wayne Mental Health Authority Executive Vice President KC Crain Publisher/Editor Ron Fournier, (313) 446-1674 or become nalist By Jay Greene August 31,” Watkins wrote. “Be as- ty’s 2016 annual report. [email protected] [email protected] sured, I will work with the board and On the clinical side, Watkins said Group Publisher Mary Kramer, (313) 446-0399 or [email protected] Detroit Wayne Mental Health Au- our great sta to facilitate a smooth DWMHA helped to establish 23 cri- Managing Editor Michael Lee, (313) 446-1630 for OU president thority CEO Tom Watkins has re- transition.” sis mobilization teams, trained or [email protected] signed from his job, e ective Aug. Contacted by Crain’s Friday thousands of rst responders and Director, Crain Custom Content Kristin Bull, (313) 446-1608 or [email protected] By Annalise Frank 31, after a tenure marked by the morning, Smitherman said he was in others in mental health rst aid Product Manager/Marketing and Events Kim Winkler, [email protected] transformation of the agency and a meetings and would comment later training, which saved more than 30 (313) 446-6764 or [email protected] Oakland University announced series of disputes with the organiza- in the afternoon on the circumstanc- lives with Naloxone First Responder Digital Product Manager Carlos Portocarrero, (313) 446-6056 or [email protected] one of two nalists in its search for a tion’s board of directors. es surrounding Watkins’ resignation training. Membership Director Nancy Hanus, (313) 446-1621 new president: Carl Camden, who will Most recently, and the future of DWMHA. or [email protected] Creative Director David Kordalski, (216) 771-5169 step down as president and CEO of the board went Watkins, in a short interview Fri- Dispute with ICA, or [email protected] Kelly Services Inc. against recom- day, declined to elaborate on his rea- DWMNA board News Editor Beth Reeber Valone, (313) 446-5875 Camden, 62, has been with the mendations sons to leave the authority. He said or [email protected] Special Projects Editor Amy Elliott Bragg, Troy-based stang company for 22 from Watkins he plans to work through Aug. 31 In December 2015, Watkins (313) 446-1646 or [email protected] years and will leave e ective May 10. and his sta that and then will assess his future plans. moved to terminate a contract with Design and Copy Editor Beth Jachman, (313) 446-0356 Current Execu- the authority at- e DWMHA has called a special ICA, which provides developmental or [email protected] Research and Data Editor Sonya Hill, (313) 446-0402 tive Vice Presi- tempt to claw board meeting for Monday. disability services, over breach of or [email protected] dent and COO back add-on fees Molina has o ered to cover the contract issues. Newsroom (313) 446-0329, FAX (313) 446-1687, George Corona that had been $1.4 million payments in question, In terminating the $48 million TIP LINE (313) 446-6766 will replace him, Tom Watkins: collected by In- two sources told Crain's. Molina o- contract, Watkins had contended REPORTERS Camden said. Oversaw transition tegrated Care Al- cials were unavailable for comment. ICA was in violation of four contrac- Tyler Cliord, breaking news. (313) 446-1612 or tcli[email protected] Camden will at agency. liance, accord- When the two other networks un- tual terms, including failing to notify Annalise Frank, breaking news. (313) 446-0416 or visit Oakland ing to three der contract with the authority — the authority of an ownership [email protected] University on sources close to the matter who re- Consumer Link Network and Com- change to Molina. Jay Greene, senior reporter Covers health care. (313) 446-0325 or [email protected] Monday for in- quested anonymity. munity Living Services — learned Watkins cited terms of his em- Covers Detroit rising. (313) 446-1654 or terviews and a Watkins told Crain’s he didn’t about the 1-2 percent add-on reim- ployment contract as CEO as the ba- Chad Livengood Carl Camden: [email protected] forum open to want to discuss the March 15 board bursements, they also requested the sis to sever the ICA pact, according Breaking news. (313) 446-0337 or Leaves Kelly Kurt Nagl the public at 10 meeting, where his administrative payments, the sources said. to documents obtained by Crain’s. [email protected] Services. Kirk Pinho Covers real estate. (313) 446-0412 or a.m. at the Oak- sta presented a report and recom- But the DWMHA board said it But the board disagreed. [email protected] land Center, university spokesman mendations to the board that the au- could not act on the request imme- A 2016 report by Allen Brothers Bill Shea, enterprise editor Covers the business of sports. (313) 446-1626 or [email protected] Brian Bierley said. thority attempt to collect from ICA diately because Watkins and sta PLLC, which the board had hired to Lindsay VanHulle Lansing reporter. (517) 657-2204 e university is naming its nalists about $1.4 million in unauthorized had not requested the add-on pay- render a legal opinion on Watkins’ or [email protected] one to two days before they visit the payments over the past two years, ments for them, sources said. If ap- right to terminate ICA, concluded Dustin Walsh, senior reporter Covers economic issues. (313) 446-6042 or [email protected] campus, Bierley said. e second - according to DWMHA documents. proved, the sources said, it would that ICA did not breach its contract. Sherri Welch, senior reporter Covers nonprots and nalist, to be announced Tuesday e DWMHA board instead voted cost DWMHA about $10 million. e board also voted that all future philanthropy. (313) 446-1694 or [email protected] morning, is scheduled to host a forum 6-5 to forgive ICA and not request proposed contract terminations ADVERTISING 10 a.m. ursday, he said. repayment, the sources said. Detroit Wayne growth must be presented to the board for Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Camden previously worked as a de- Authority sta found out that ICA under Watkins approval. Director of Sales Lisa Rudy Senior Account Manager Katie Sullivan partment chair at Cleveland State Uni- had tacked on a 1 percent to 2 per- In investigating ICA, Watkins cit- Advertising Sales Gerry Golinske, Sharon Mulroy, versity. He earned three degrees by the cent additional administrative fee In 2013, Watkins oversaw the tran- ed a report that found that Detroit Diane Owen age of 25: a doctorate from e Ohio over the last decade for quality as- sition of the Wayne County Mental Wayne board had authorized $17.5 Classied Sales Manager Angela Schutte, (313) 446-6051 State University, a master’s degree at surance activities, the sources said, Health Authority from a county million in additional funds to ICA in Classied Sales Lynn Calcaterra, (313) 446-6086 Central Missouri State University and and those payments had not been agency to an independent authority. addition to contracted payments Events Manager Kacey Anderson a bachelor’s from Southwest Baptist approved by the authority. Sources As one of the nation’s largest from 2010 to 2015, according to doc- Marketing and Sales Promotions Manager Christina Fabugais-Dimovska University, according to a news re- said those payments amounted to 35 county mental health organizations, uments on the authority’s website. Senior Art Director Sylvia Kolaski lease. percent over the contracted fees. with more than 100 employees and a ICA was the lowest-ranked of the Special Projects Coordinator Keenan Covington “I had long communicated that I Watkins has often butted heads budget of $730 million, the Detroit three developmental disability ser- Sales Support Suzanne Janik Media Services Director Geof Innis wanted to return ultimately to public with the authority’s board on provid- Wayne County Mental Health Au- vice providers under contract with Media Services Manager Hussein Abdallah service after I left the business world er contract issues, primarily Wat- thority funds four managed care pro- the authority. e other two con- CUSTOMER SERVICE and would be open to the right oppor- kins’ decision in December 2015 to vider networks that serve more than tracted providers are Consumer Link Main Number: Call (877) 824-9374 tunity, and Oakland University be- terminate a contract with Integrated 80,000 people with mental health Network and Community Living or [email protected] came that opportunity,” he said. Care Alliance, a provider agency in and other developmental disabili- Services. Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 Camden hasn’t secured the posi- Detroit that shortly before had been ties. Because of ICA budget issues and per year to out-of-state rate for surface mail. Call (313) tion, but he said it would not have acquired by Long Beach, Ca- Before taking his current job, Wat- low ranking, Watkins and manage- 446-0450 or (877) 824-9374. been “ethical” to remain CEO and lif.-based Molina Healthcare Inc. kins was founding CEO of TDW and ment did not want to o er a contract Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at president while a nalist for another In early 2016, the DWMHA board, Associates, a Detroit-based global with ICA for 2015. However, the au- [email protected] job. in a 7-2 vote, reversed Watkins’ ICA consulting and education business. thority board voted last year to o er To nd a date a story was published (313) 446-0406 Returning to academia has always decision and then changed the au- He has since closed the company. ICA another contract. or e-mail [email protected] been a priority, Camden said, but he is thority’s bylaws to strip Watkins from In his resignation letter, Watkins Despite the board's legal opinion, Crain’s Detroit Business is published by also open to jobs in government or termination decisions and instituted cited many accomplishments during it is unclear why it took action on Crain Communications Inc. philanthropic organizations. a new policy to require board ap- his four years with the authority. Watkins’ ICA decision. Watkins pre- Chairman Keith E. Crain President Rance Crain “In our conversations with Carl, he proval for contract changes. ey include retiring $30 million in viously had terminated several con- Treasurer Mary Kay Crain has a unique view of the conuence of On ursday, Watkins, a former legacy debt, generating more than tracts, including ones with Wayne Senior Executive Vice President William A. Morrow higher education and jobs,” said Ric state school superintendent from $30 million in new revenue, increas- State University, Western Michigan Executive Vice President/Director of Strategic Operations Chris Crain DeVore, chair of OU’s board of trustees 2001 to 2005, submitted his resigna- ing direct care sta wages by more University and Wayne County Re- Executive Vice President/Director of Corporate and regional president of PNC Bank. tion when his current three-year than $2 per hour, reducing adminis- tirement System, without board ob- Operations KC Crain “It wasn’t really that he’s a CEO of a contract expires. trative costs and standardizing pro- jections, according to authority re- Vice President/Production & Manufacturing Dave Kamis public company (as much) as it was In his resignation letter to DWM- vider rates, according to the authori- cords. Chief Financial Ocer Bob Recchia that he’s a CEO of a public stang HA Chairman Herbert Smitherman Chief Information Ocer Anthony DiPonio company. If you think about where the Jr., M.D., board members and em- G.D. Crain Jr. Founder (1885-1973) INDEX TO COMPANIES Mrs. G.D. Crain Jr. Chairman (1911-1996) economy is going in the jobs area, he ployees, Watkins didn’t specify a rea- These companies have signicant mention in this week’s Crain’s Detroit Business: Editorial & Business Oces has a pretty competent background.” son he turned down a new contract 1155 Gratiot Ave., Detroit MI 48207-2732; e university’s board of trustees from the authority. Beaumont Health 8 MCCI 17 (313) 446-6000 formed a committee to search for a “While I originally accepted a Blue Cross Blue Shield 10 McConnell Communications 1 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly new president in October, after it de- three-year contract that was extend- Bsharah Public Relations 17 Trinity Health 9 by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI cided to replace outgoing president ed an additional year and I appreci- 48207-2732. Periodicals postage paid at Detroit, MI and additional Detroit Water and Sewerage Department 3 Truscott Rossman 17 mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S George Hynd upon completion of his ate the board’s condence expressed DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, three-year contract that ends in Au- in o ering me yet another contract Drought 3 Van Dyke Horn Public Relations 17 MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2017 by Crain Communications Inc. All rights gust. Hynd is a nalist for the chancel- extension while we explore a new Floyd Design LLC 3 Woodward Holdings LLC 1 reserved. Reproduction or use of editorial content in any manner lor position at Southern Illinois Uni- contract, I have decided to resign Kelly Services 18 without permission is prohibited. versity’s agship Carbondale campus. when my present contract expires CRAIN’S DETROIT BUSINESS // APRIL 17, 2017 19 THE WEEK ON THE WEB RUMBLINGS APRIL 8-14 | For more, visit crainsdetroit.com

Florida company J e Henry Ford has put on display Detroit a “cognitive dress” created by IBM gets state deal Corp. and high-end New York wom- Digits enswear brand Marchesa that uses for pot-tracking IBM Watson technology to change A numbers-focused look at last color based on emotions used in so- so ware system week’s headlines: cial media posts. Florida-based software compa- J Fiat Chrysler is planning to move ny has been chosen for a nearly $8 million the U.S. headquarters for its Maserati A$450,000 contract to manage Michi- The cost of the North American brand from New Jersey to the former gan’s new medical marijuana track- headquarters Hutchinson plans Walter P. Chrysler Museum on the ing system. to build in Auburn Hills’ Oakland grounds of FCA’s headquarters in Lakeland, Fla.-based Franwell Technology Park. Auburn Hills, Crain's sister publica- Inc. has been recommended for a tion Automotive News reported. $447,625 award from a pool of 11 180 acres J Detroit’s three casinos had an ag- companies that bid to run Michi- The size of a massive site along gregate revenue of $131.2 million in ROBIN CARLSON/LURIE GARDEN gan’s statewide tracking system, the Detroit River in Trenton that is March, a 5 percent increase from the A Piet Oudolf-designed garden at the Lurie Garden in Chicago. which was created through legisla- now in the hands of the Wayne same time last year and an 11.9 per- Between 28-26pt CDB tion Gov. Rick Snyder signed into law County treasurer aer the owner cent rise from February, the Michi- last year. failed to pay millions in taxes, gan Gaming Control Board reported. A formal contract has not yet been according to The Associated Press. J e city of Windsor is renewing its Renowned Dutch garden Hed 2 SansCondBold_HD completed, according to a spokes- partnership this year with the Chevro- man for the Michigan Department of $34.6 million let Detroit Grand Prix to make it easier designer eyes Belle Isle Licensing and Regulatory A airs. The operating income decit the for Canadian fans to enjoy the June e system will require the “seed- Detroit Tigers ran last year — the 2-4 festivities on Detroit’s Belle Isle. etroit’s Belle Isle could see a according to the Garden Club’s im- to-sale” tracking of marijuana prod- biggest loss in all of baseball that J Detroit Medical Center hospitals Dgarden designed by interna- mediate past President Maura ucts. It was part of a three-bill pack- season. are now considered in good standing tionally renowned garden designer Campbell. He designed the Lurie age that also creates a new tiered with state and federal regulators Piet Oudolf. Garden in Millennium Park in Chi- licensing system for various seg- after DMC Children's Hospital of At the Garden Club of Michigan’s cago, several gardens at Battery ments of the state’s medical marijua- Motor Parts and Components Michigan passed an unannounced request, Oudolf visited Detroit re- Park in New York City and the full na industry, including growers, pro- Group Co. Ltd. to produce electric follow-up inspection. cently to tour a bit of the city, the riv- design of the High Line park in visioning centers or dispensaries power steering systems for Dong- erfront and Belle Isle. Manhattan. and compliance testing labs. feng Motor Corp. Other News: e Dutch designer — who has He is known for designing year- Franwell’s proposal includes a J Two metro Detroit companies, Di- been likened by some to the late round gardens that look good even hosting charge to the state of $35,000 verseNote LLC and Universal Tool J e city of Detroit and three major famed landscape architect Frederick when the plants are dormant. per year for the rst two years, as well Equipment and Controls Inc., are Detroit health systems — Detroit Med- Law Olmsted who designed Central e Garden Club has yet to talk as in each of ve annual contract ex- planning expansions that would ical Center, Henry Ford Health System Park in New York City and Belle Isle numbers with Oudolf but already, tension options. e company also generate a collective $7.3 million in and St. John Providence Health System — was charmed by the island and individuals, foundations and com- noted an additional cost of required private investment and create 105 — will team with Focus: Hope and said it’s there that he can see one of panies like Penske Corp. have ex- tags for tracking plants and jobs. Oakland University to provide training his famed gardens. pressed interest in supporting the packages. J Lyft is the latest business to o er to city residents for entry-level health Oudolf is a rock star in his world, new garden, Campbell said. e state licensing department benets to Detroit residents through care jobs in high demand. will oversee the medical marijuana the Detroit ID program launched in J Democrat Gretchen Whitmer told program through LARA’s new Bu- December. Residents who sign up Crain’s that she would not close De- reau of Medical Marihuana for the ride-share service using their troit’s persistently failing schools if Court: Colorful 9-story Regulation. Detroit ID will receive a $25 credit. elected governor, and instead would Franwell will run Michigan’s pro- J Longtime Detroit developer Joel push to nancially punish govern- mural to stay on Milwaukee gram through a software program it Landy has sold a 60,000-square-foot ment entities that don’t shut down developed called METRC, which Cass Avenue building to De- poor-performing charter schools. DB Body Text test cap goes here stands for Marijuana Enforcement, troit-based Sterling Group for an un- J e Waterford Township Board of Junction building and here. Reporting, Tracking and Compli- disclosed price. Trustees gave the unnamed poten- Detroit-based artist and a CCDB Body Text Test ance, said Scott Denholm, executive J Re:purpose, a tech recruiting mar- tial buyers of the Summit Place Mall Bloomfield Township-based director of METRC for Franwell. e ketplace website, is the rst startup site more time to nalize new devel- Areal estate company have reached products will be able to be traced to launch from the Detroit branch of opment plans. an agreement that will allow Kather- back to the grower and the plant WeWork LLC, an international work- ine Craig’s colorful “e Illuminated from which they are sourced. space chain with locations in Obituary: Mural” to remain in place on the Detroit. side of a Milwaukee Junction Business News: J Radio One Detroit has agreed to J Taft Wallace “Wally” Wrathall, a building. Between 26-24pt CDB Hed sell its WCHB AM 1200 NewsTalk former executive at Comshare Inc. In a joint statement provided to J Max Broock Realtors, a Birming- station to Birmingham, Ala.-based previously based in Ann Arbor, died Crain’s, Princeton Enterprises LLC’s 2 SansCondBold_HD ham-based residential real estate Crawford Broadcasting Co. for an Monday at a nursing home in Livo- law rm in the case, South- brokerage, has been retained to sell undisclosed amount. nia. He was 80. eld-based Ja e Raitt Heuer & Weiss 98 condominiums planned for PC, said the building at 2937 E. downtown Detroit. Slows Bar BQ Grand Blvd. is under contract to De- J Kathy Wendler, longtime presi- plans to open its troit-based e Platform LLC, which dent of the Southwest Detroit Busi- fourth location, in “has agreed to honor — and extend AUCTION.COM ness Association, plans to retire from downtown — a previous agreement allowing Katherine Craig’s “The Illuminated the organization after leading it for Pontiac. ‘e Illuminated Mural’ to stay on Mural” was painted on this building at more than 35 years. She will contin- the side of the building for several 2937 E. Grand Blvd. in 2009. ue to lead the association until her SLOWS BAR BQ years to come.” successor is in place. PONTIAC Crain's reported last month that ment recently due to the rail project J Several businesses opened in e Platform — founded by Peter and a shortage of quality multifami- metro Detroit in the past week: Slows Cummings and Dietrich Knoer — ly rental housing in the greater Bar BQ in Pontiac, Atomic Chicken in has the building under contract. downtown area. Detroit’s New Center area, La Lanter- e building, built for the Detroit Craig, whose nine-story mural na in the city’s Capitol Park neighbor- Storage Co. a century ago, sits just adorns the western wall of the hood, and Under Armour and Avalon east of the northern terminus of the 73,000-square-foot building, sought International Breads’ new café in QLine streetcar project. at makes an injunction in a January 2016 law- downtown Detroit. it a prime redevelopment prospect suit under the federal Visual Artists J Nexteer Automotive Corp. has in a neighborhood just east of the Rights Act of 1990 barring the designed an agreement to form a joint New Center area, which has attract- struction of the mural, created in venture with China-based Dongfeng ed considerable real estate invest- 2009. lEt’S CrEatE EnErgy SolutionS for your buSinESS. • Energy-efficiency rebates • Custom energy-saving solutions • Simplified billing and payments • Dedicated business specialists

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