Flint:Treading Water

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CRAIN’S MICHIGAN BUSINESS Powering up: Law firms, others add strength in lobbying, PAGE 11 FEBRUARY 8-14, 2016

“We are constantly testing our Lions water as we want to protect our visitors, not just the art.” look to John Henry,Flint Institute ofArts spruce up their lair Options include converting suites into gathering space

By Bill Shea [email protected] The Detroit Lions may turn some of Ford Field’s 132 suites into club or other gathering space under a plan to refresh the $500 million stadium that opened in 2002. New President Rod Wood said the team MARTI BENEDETTI has asked the Detroit office of M. Arthur Gensler Jr. & Associates Inc. to re-examine, pri- oritize and update costs for a Ford Field improvements master plan created last year. Wood, 55, was elevated out of a job as the Ford family’s investment adviser to become Flint: Treading water team president in November after Lions owner Martha Firestone Ford fired Tom Lewand as part of a radical overhaul of the City’s biz community hopes crisis doesn’t wash away downtown rebound long-struggling National Football League team’s front office. By Marti Benedetti Those declines flattened out over the past In a wide-ranging telephone conversation [email protected] couple of years. “But people thought values last week with Crain’s, Wood addressed po- The Flint water crisis is taking a toll on the would go up again,” Schwartz said. “Now, no tential improvements at city that goes beyond lead poisoning. one knows what will happen.” the stadium. He said the The Flint Cultural Center, considered a Flint Tax Assessor William Fowler said “Ford Field 2.0” plan jewel with its expansive neighborhood of property values assessed before last fall — Lewand hinted at in theaters, museums and a large public li- when the water crisis came to the forefront recent years is some- brary, could be hurt by declining property — were likely higher than they are now. He is thing he’ll take a seri- values and tax collections as a result of the prepared for some property owners to ask SEE WOOD, PAGE 25 water crisis. At the same time, Flint business KathyJackson: “I’ve Ron Sims: “Everybody for lower assessments at March’s board of re- owners hope water woes won’t stem the invested in Flint’s future. is worried, but the flip view meeting. Inside downtown renaissance of recent years. ... But with this water fi- side is we will get money “They may say their property is devalued More from Crain’s Rod Kay Schwartz, director of library services asco, you feel like Flint’s for improved infrastruc- SEE FLINT, PAGE 26 Wood interview: Building for the Flint Public Library in the cultural cen- image is falling further.” ture like new pipes.” a new front office, ter, said the water crisis has the potential to Inside hurt library financing, but it has weathered fi- ■ Page 25. nancial crises before. In 2009, in the midst of dropped in recent years. “We are at 4 mills A roundup of news on Flint’s water crisis, the recession and General Motors’ bankruptcy, now because our wonderful citizens voted an Page 2. a library millage of 2.9 mills produced $4.7 increase in 2010, and again in 2015,” ■ Though government immunity makes million. The library relies on a property tax Schwartz said. “But 4 mills now translates to them tricky, lawsuits start to pile up. Page 27. millage for 90 percent of its income. just $2.7 million, meaning the library lost $2 ■ Snyder seeks OK for SBA emergency What has happened since provides a million in funding due to falling property val- lending tied to crisis, Page 27. glimpse of how much Flint property values ues. We have had to make enormous cuts.”

© Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 32 No 6 $2 a copy. $59 a year. NEWSPAPER 20160208-NEWS--0002-NAT-CCI-CD_-- 2/5/2016 3:51 PM Page 1

2 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016

had an agreement on a $600 million aration of a trio of businesses fo- MICHIGAN federal aid package for Flint that cused on plastics, agricultural prod- INSIDE would be added to a bipartisan ener- ucts and specialty materials. THIS ISSUE gy bill, but found that Republicans BANKRUPTCIES ...... 5 CALENDAR ...... 24 were blocking it over a procedural MICH-CELLANOUS CAPITOL BRIEFINGS ...... 5 issue. Stabenow said she would Ⅲ CLASSIFIED ADS ...... 25 block further work on the energy bill Kalamazoo-based medical MARY KRAMER ...... 11 BRIEFS until Republicans agree to move for- technology company Stryker Corp. OPINION ...... 8 ward on the package for Flint. said it has agreed to buy Sage Prod- PEOPLE ...... 24 Emails: Snyder’s aides knew cerns about the safety of the com- Ⅲ Businesses and organizations ucts LLC, a maker of products to pre- RUMBLINGS ...... 30 about Legionnaires’in March munity’s drinking water. continued to donate money, goods vent hospital-acquired conditions, STAGE TWO STRATEGIES ...... 20 Meanwhile, Michigan lawmakers and labor to help those affected by for nearly $2.8 billion in cash. Stryk- WEEK ON THE WEB ...... 30 High-ranking officials in Gov. moved late last week to start ap- the crisis. Walker, Mich.-based Mei- er is buying Cary, Ill.-based Sage Rick Snyder’s administration were proving $30 million to help pay the jer Inc. announced it would donate from Madison Dearborn Partners, a aware of a surge in Legionnaires’ water bills of Flint residents facing a $500,000 to help Flint residents, and Chicago-based private-equity firm. COMPANY INDEX: disease potentially linked to Flint’s lead-contaminated water supply, Detroit Pistons players and execu- Sage, with more than 800 employ- SEE PAGE 29 water long before Snyder reported AP reported. The bill, passed unani- tives committed a total of $500,000 ees, will operate under that brand as the increase to the public last mously by the Senate a day after to the FlintNOW relief effort part of Stryker’s medical division. highway in Michigan — and possi- month, internal emails show. Snyder formally announced the launched by team owner Tom Ⅲ The insurance industry annual- bly even higher on portions of two When he disclosed the spike in plan, goes to the House for its con- Gores, who grew up near Flint. ly provides a substantial boost to heavily traveled interstates — under Legionnaires’ cases on Jan. 13, Sny- sideration as early as this week. Michigan’s economy, adding $37.1 a measure a committee sent to the der said he had learned about it a In other Flint water-related news: Dow CEO Liveris says he’ll billion in spending, 114,000 jobs and state House last week. The package couple of days earlier. But emails Ⅲ In Washington, officials fought step down after merger $6.3 billion in earnings throughout of five bills would raise some of the obtained by the liberal group over who was to blame for the water the state, according to a new report 70 mph speed limits across the state Progress Michigan through public- crisis at a combative congressional Dow Chemical Co. CEO Andrew by the East Lansing-based Anderson and hike limits from 55 to 60 mph records requests and shared with hearing, AP reported. Joel Beauvais, Liveris will leave the company after Economic Group LLC. The report, for another 900 miles of highway, The Associated Press showed Sny- acting water chief for the U.S. Envi- the completion of its merger with based on 2014 data, was commis- The AP reported. A chunk of I-75 der’s office was aware of the out- ronmental Protection Agency, said DuPont Co., marking a victory for ac- sioned by the Michigan Chamber of north of Bay City and a portion of I- break since last March. Others in Michigan officials ignored federal tivist investor Dan Loeb, who had Commerce and several other busi- 69 between Flint and Lansing might the administration were scrambling advice to treat Flint water for corro- called for his removal, Bloomberg ness associations and groups. be eligible for an 80 mph speed to respond to suggestions that bac- sion-causing elements last year and reported. Ⅲ Grand Rapids-based injection limit, officials said. teria in the city’s new water source, delayed for months before telling the Liveris, who has spent four molder Agape Plastics Inc. expanded Ⅲ The Grand Rapids Public Museum the Flint River, could be the culprit. public of health risks. Keith Creagh, decades at Midland-based Dow, manufacturing space and added is hosting a new exhibit about civil The outbreak was also well known director of the Michigan Department will depart once the newly created equipment to serve sales growth rights icon Rosa Parks. “Rosa Parks within state agencies, according to of Environmental Quality, acknowl- DowDuPont is ready for a planned driven largely by the auto industry. — An American Legacy” runs emails obtained separately by AP edged the state should have required three-way split, no later than the Agape added 53,600 square feet to its through March 26. Parks, who died and other news organizations. Flint to treat its water, but said the second quarter of 2017, he said last existing facility for a total of about in 2005, became a pioneer in the Together, the emails offered EPA “did not display the sense of ur- week on Dow’s fourth-quarter earn- 125,000 square feet of manufactur- civil rights movement by refusing to more evidence that some state offi- gency that the situation demanded.” ings call. Dow and Delaware-based ing space, Plastics News reported. give up her bus seat to a white man cials were dismissive of county Ⅲ Sen. Debbie Stabenow, D- DuPont have announced a merger Ⅲ The speed limit could jump to in Montgomery, Ala., in 1955. She health authorities who raised con- Mich., said Democrats thought they of equals, to be followed by the sep- 75 mph on some 600 miles of rural later moved to Detroit. Ⅲ

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CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 3 Will robots zap the job market? Growth in knowledge-based automation could make machines the new workforce

By Dustin Walsh Merrill Lynch is serving clients with online force must play catch-up, and fast, to face [email protected] robo-advisers, which use algorithms to a world where a large portion of current David Sowerby, who has managed in- assess dozens of factors and generate in- jobs will be done by computers. vestment portfolios for more than 25 vesting advice. At Bank of America, robo-advisers are years, does not fear the robot revolution. Bank of America, in an extensive study a win-win for the bottom line. The firm is But should he? published late last year, predicts advance- able to target clients with investable as- The rapid innovation of automation, ments in robotics and automation will sets below $250,000, who generally don’t largely originating in manufacturing op- displace up to 25 million workers globally get access to its live Merrill Edge advisers, erations, is expanding into new indus- in the financial and legal services sectors at lower cost to the client. tries, such as the financial sector, and will by the end of 2025, with the potential to “Really, we’re targeting the untapped challenge our concept of the labor force, do the work of more than half the 230 market (with robo-advisers),” said Beijia according to experts. And it’s coming million-person global base of knowledge- Ma, strategist on the thematic investing more quickly than you think — in less based workers in the same timeframe. team at Bank of America in London and than a decade. Experts are split on the ill effects of au- researcher on automation. “But, as that This quarter, Bank of America Corp.’s tomation, but they agree that the labor SEE ROBOTS, PAGE 28 State seeks to eliminate RISING tax credit for from the auto insurers Industry: Policy covers ASHES costs for uninsured RECLAIM DETROIT By Lindsay VanHulle Reclaim Detroit Executive Director Craig Varterian says the nonprofit has been in Crain’s Detroit Business/Bridge Magazine negotiations to move to another location in Detroit. LANSING — Nearly 100 auto insurers in Michigan last year claimed a previously unavailable tax credit that is expected to cost the state $80 million in annual revenue. Some state lawmakers now say they want to fix what they’re calling an unintended consequence of a 3-year-old policy change that shifted administra- tive oversight of Michigan’s assigned claims plan, which covers medical ex- Reclaim Detroit,burned out of Highland Park,was already in talks for Midtown digs penses for people injured in crashes in which no party has auto insurance. By Kirk Pinho material from vacant homes and creates outer buildings that are an additional The issue could become a thread in and Marti Benedetti jobs in the reuse industry, discussions 20,000 square feet. a bigger debate related to reforming [email protected], [email protected] continue, said the planned developer, Ed “The site is about 4 acres, so it’s perfect Michigan’s no-fault auto insurance Out of the ashes may come some un- Siegel, a co-owner of the Urban Bean Co. for our storage needs. The entire com- law, which covers the assigned claims expected good luck for Reclaim Detroit. coffee shop in Capitol Park. plex will be Reclaim Detroit’s,” he said. process, even as bills to update the Months before a massive fire engulfed The redevelopment of the building on The nonprofit leased about 60,000 program stall in the Legislature. the nonprofit’s space in a Highland Park Piquette Avenue would cost between square feet in the Highland Park ware- On one hand, representatives for warehouse last week, the company had $2 million and $3 million, he said. Con- house that burned. the insurance industry say the credit been working with the city of Detroit and tractors and construction timelines John Roach, spokesman for Mayor compensates for the amount insurers a local developer to secure new space in haven’t been chosen yet, pending finaliza- Mike Duggan, said there is no agreement pay each year to reimburse the Michi- Midtown. tion of a development agreement with on the building, which was the subject of gan Automobile Insurance Placement Fa- Although no agreement has been fi- Detroit City Council approval, Siegel said. a request for proposals from developers cility for the cost of medical treatment nalized to redevelop the city-owned for- Reclaim Detroit Executive Director to turn it into a “deconstruction hub.” it is required to cover for uninsured mer South District Recreation Center build- Craig Varterian said the Piquette com- “The city does not comment on devel- crash victims — costs, they say, that ing for Reclaim Detroit, which salvages plex is about 46,000 square feet with SEE FIRE, PAGE 28 ultimately are passed on to Michigan SEE INSURANCE, PAGE 29 PHOTO BY KIRK PINHO

MUST READS OF THE WEEK Hiring boom Whistle blowback As supply of talent wanes relative to Proposed rule meant to head off demand as baby boomers retire, nondisclosure agreements with potential businesses find creative ways to find new whistleblowers could have unintended employees, Page 17 consequences, Page 21 20160208-NEWS--0004-NAT-CCI-CD_-- 2/5/2016 4:01 PM Page 1

4 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016

Machine Mental health board reverses EXPANDING: manufacturer with a $1 million CEO’s ending of ICA contract line of credit By Jay Greene ones with Wayne State University, quired ICA/Synergy last year after [email protected] Western Michigan University and purchasing a 49 percent minority The board of the Detroit Wayne Wayne County Retirement System, interest in ICA in 2014. The sale of Mental Health Authority has voted 7-2 without board objections, accord- ICA was intended to help bolster to reverse a decision by CEO Tom ing to authority records. the organization’s finances. Helping staffi ng companies, Watkins, who in December termi- Over the past five years, however, Molina officials told Crain’s it was nated a contract with Integrated Care the Detroit Wayne board has au- purchasing ICA because of its recent consultants, distributors and more with Alliance, a Detroit-based develop- thorized $17.5 million in additional strategy to integrate physical and be- mental disability provider agency, funds to ICA in addition to contract- havioral health care for members. business cash fl ow solutions. over breach of contract issues. ed payments, according to docu- Over the past several months, Authority board Chairman Her- ments on the authority’s website. Medicaid HMOs and the Michigan man Smitherman, M.D., declined Moreover, ICA was the lowest- Association of Health Plans have been › A/R Financing several requests ranked of the three developmental lobbying state government officials › Lines of Credit for an interview disability service providers under to take over the $2.4 billion public with Crain’s. contract with the authority. The mental health system, which is cur- Watkins was on other two are Consumer Link Network rently managed by nonprofit be- (248) 658-1100 www.hitachibusinessfi nance.com vacation last and Community Network Services. havioral health organizations. week and un- Because of ICA budget issues and “In no way does this motion alter available for low ranking, Watkins and manage- our belief that nonprofits are the comment. ment did not want to offer a con- most effective method of providing In terminat- tract with ICA for 2015. However, mental health services in Wayne Tom Watkins: ing the $48 mil- the authority board voted last year County,” the authority board con- Cited terms of his lion contract on to offer ICA another contract. cluded in its resolution. Ⅲ contract as CEO. Career Opportunity Dec. 4, Watkins In a previous statement to Jay Greene: (313) 446-0325 had contended Crain’s, Molina confirmed it ac- Twitter: @jaybgreene ICA, which was acquired last summer by Long Beach, Calif.-based Business Coach Molina Healthcare Inc., was in viola- Successful Marketing Strategist looking to form a tion of four contractual terms, in- BEFORE YOU DO SOMETHING YOU MIGHT REGRET, RETHINK. partnership with a small business coach/consultant cluding failing to notify the authority of an ownership change. I’ve developed a process where I can find more than $10,000 Watkins cited terms of his em- for ANY small business owner… and do so in less than 45 minutes. ployment contract as CEO as the I've been offering this service to small business owners and it's basis to sever the ICA pact, according resulting in more business than I can possibly handle. to documents obtained by Crain’s. “The board will be responsible If you’re an experienced business coach, for setting policy and for general or you’re interested in becoming one and oversight of the agency/authority’s you have a solid business background, I operations, whereas Watkins will be would like to speak with you. responsible for day-to-day adminis- trative activities,” according to Willing to train the “Right Candidate” if Watkins’ employment agreement. you have what it takes. But in the Jan. 20 meeting, the authority board passed a two-part For more information resolution after a legal analysis and email [email protected] opinion issued to it by Detroit- based Allen Brothers PLLC. or call 248-231-5205 The board hired Allen Brothers in December to render a legal opinion on Watkins’ right to terminate the ICA contract and whether there was breach of the contract with the authority. In the resolution, the board said: “ICA did not create a breach of con- SINCERELY INVESTED IN YOU tract with the authority board upon At our firm, we value our team and clients like family. the sale of their company to Molina, and that the authority to terminate Our investment advice is tailored for each institution a contract rests with the authority and individual. board and not with the CEO.” Moreover, the authority board said future proposed contract ter- minations must be presented to the board for approval. Voting in favor of the resolution were Smitherman, Cheryl Munday, RETHINK Cynthia Taueg, Bernard Parker, Constance Rowley, Iris Taylor and Heather Underwood. Voting against were Timothy Killeen and Frank Before considering a commercial coverage makeover, Invested alongside Ross, former chairman of the authority in 2015. Marsha Bianconi have the Sterling Insurance Group “RETHINK” your risk you since 1976. and Angelo Glenn abstained, and exposure and effectively lower your insurance costs. Terence Thomas was absent. Despite the legal opinion, it is still 888.525.7575 | 586.323.5700 | sterlingagency.com Member FINRA/SIPC unclear why the authority board Commercial Insurance • Employee Benefits • Personal Insurance overturned Watkins’ decision on Investment Advisors s (866) 644-2701 s www.GJSCO.com ICA. Watkins previously had terminated several contracts, including 2015 20160208-NEWS--0005-NAT-CCI-CD_-- 2/5/2016 5:23 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 5 Bill would stop advertising spending for Healthy Michigan Plan LANSING — A Republican state has been educated enough?” state removes the 60-day limit and also nal provision. Gov. Rick Snyder signed senator has floated a bill to prevent Sen. Rick Jones, R-Grand Ledge, would allow “factual and strictly the bill, but urged lawmakers to follow the state from advertising or encour- asked DHHS administrators. neutral information concerning the it up with clarifying legislation. aging enrollment in the Healthy Michi- Even though enrollment has far direct impact of a local ballot ques- On Friday, a federal district judge gan Plan, the state’s Medicaid expan- surpassed expectations, enrollment tion on a public body or the elec- granted a preliminary injunction bar- sion program. fluctuates month to month, said torate, except if the communication ring the state from enforcing the law But Sen. Tonya Schuitmaker, R- Geralyn Lasher, DHHS’ external rela- can reasonably be interpreted as an ahead of the March 8 election. The Lawton, told members of the Sen- LINDSAY tions director. That’s because some attempt to influence the outcome bill moves to the House for a vote. ate’s health policy committee last VANHULLE people become newly income-eligi- of a local ballot question.” Lindsay VanHulle: (517) 657-2204 week that she revised the bill to clari- Capitol Briefings ble while others fail to file paperwork Lyons was the sponsor of the origi- Twitter: @LindsayVanHulle fy that she’s only seeking to stop the [email protected] to determine continued eligibility or state from spending money on paid Twitter: @LindsayVanHulle take jobs that have private coverage. advertising. Frequent turnover requires con- “Nothing in this bill prevents state first year of the program, which stant education, Lasher said. employees from discussing Healthy ended in March, and eventually The committee didn’t vote on the Michigan, or from providing infor- reach 470,000. bill. A spokeswoman for Senate Ma- mation written or otherwise or pro- The state spends $2 million per jority Leader Arlan Meekhof said he viding it on a website to residents,” year on advertising, half of which is doesn’t consider the bill a priority. Schuitmaker said during testimony. federal money, a DHHS spokes- ‘Gag order’ bill advances The distinction is important, in part woman said. The remaining $1 mil- because enrollment in Healthy Michi- lion comes from the state’s roughly The House elections committee gan has soared past expectations. $10 billion general fund. approved changes to a new law that As of January, the program has Some Republican senators ques- prevents municipalities and school 613,747 participants, up nearly 7,300 tioned whether the funds could be districts from sending mass mail- members from the month before. better spent on other services within ings about ballot proposals 60 days The Michigan Department of Health and the Healthy Michigan program, before an election. Human Services projected the program rather than on advertising. House Bill 5219, introduced by would enroll 320,000 people in the “Don’t you think this population Rep. Lisa Posthumus Lyons, R-Alto,

BANKRUPTCIES

The following businesses filed Ⅲ Joseph Investment LLC and Sec- bilities $424,000. for Chapter 11 bankruptcy during ond Avenue Liquor Inc. dba Grocer Ⅲ Decarloan Enterprises Inc., 49556 the week of Jan. 29-Feb. 5. Chapter Farm Market, 3435 Second Ave., De- Lakewood St., Macomb Township, 11 bankruptcy involves reorgani- troit (related cases). Voluntary Voluntary Chapter 11. Assets and li- zation. Chapter 11. Assets not available, lia- abilities not available.

TUESDAY, TITLE SPONSOR FEB. 16 5 - 9 p.m. Roostertail, Detroit Join Crain’s as we reveal 25 of the biggest deals in 2015. Then meet the people behind them.

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6 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 Dental Centers to move HQ, add jobs

By Chad Halcom [email protected] Over $2 Billion recovered for Bloomfield Hills-based Great Ex- pressions Dental Centers could add our clients up to 100 new jobs in Oakland County by the summer, under a plan to move its corporate headquarters and consolidate two practice support centers into the Onyx Office Plaza in Southfield. Parent company ADG LLC, formerly American Dental Group, is leasing about 30,000 square feet in the Onyx building, compared with an estimated 15,000 square feet at its previous Bloomfield Hills headquarters. It plans to gather 250 local employees in Southfield from its current corporate offices and a practice support center, along with 80-100 jobs from another practice support center in Norcross, Ga. “We had an opportunity to first get the office space in the Onyx, and an opportunity to move out of a Georgia facility, and we think we’ll end up with some efficiencies from it,” said CEO Richard Beckman. “It will help us create much better communication in the field with professionals, and for management it’s easier to talk with one voice, out of one location.” AGD claims more than 2,000 employees through practice support centers and other offices, and man- ages about 400 dentists, hygienists, orthodontists, periodontists and other related professionals through Daily Monitoring and Systematic Rebalancing can capture more affiliated Great Expressions Dental gains from market volatility. Come learn how our process is Centers PC companies in 10 states. Systematic Beckman said about 25 of the 125 designed to keep your investments in balance. employees in Georgia will be trans- Rebalancing ferred or assimilated into other offices in the area, while the remain- Is your advisor ing jobs will relocate to Southfield equipped to monitor and combine with the Bloomfield Hills practice support center. your asset allocation The company has management everyday? service contracts for dental and oral hygiene professional groups in Michigan, Ohio, Texas, Georgia, Florida, Virginia, New York, New Jer- sey, Connecticut and Massachusetts. The consolidation means ADG will be hiring clerical and adminis- trative employees who typically earn $15-20 per hour to help handle purchasing, accounting, human resources and other “back office” functions for its professional practices, Beckman said. Great Expressions has maintained the Norcross support center since it acquired Nanston Dental Group in 2010 and contracted to manage its dental practices in Atlanta. 248.731.9500 | WWW.SCHECHTERWEALTH.COM The company expects to have its Bloomfield Hills personnel in the Southfield office plaza by March, Investment Advisory Services offered through Schechter Investment Advisors, LLC. and finish consolidating the Georgia office support staff by the summer. Ⅲ Securities offered through NFP Advisor Services, LLC (NFPAS), Member FINRA / SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC (SIA). NFPAS Chad Halcom: (313) 446-6796 is not affiliated with Schechter Wealth or Schechter Investment Advisors. NFPAS does not provide legal or tax advice, and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public Disclosure website. Twitter: @chadhalcom DBpageAD_DBpageAD.qxd 9/21/2015 1:13 PM Page 1 20160208-NEWS--0008-NAT-CCI-CD_-- 2/5/2016 5:23 PM Page 1

8 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 CRAIN’S DETROIT BUSINESS OPINION Detroit ed reform merits high priority etroit is at the bottom of urban school districts in the country, and about half of the just over 100 charter Dschools operating in the city fare no better. For all the progress Detroit has made since bankruptcy, it cannot be a strong and sustainable city when its children can’t read and are unprepared for a competitive world of work. There are three basic issues: Finances, governance and educational success. To get to the third, you have to also solve the first two. Mayor Mike Duggan told state lawmakers last week that he backed a plan to restore local control of the schools and separate the district into “old company” and “new company” divi- sions — a la General Motors’ bankruptcy, with the “old company” continuing to pay down debt with voter-approved millages. But the key to the reform, Duggan said, is creating an edu- TALK ON THE WEB cation commission that would restore order to school open- ings and closings, charter and traditional public. The com- Re: Snyder plans $30 million Reader responses to stories and The MPSC approved an increase credit for Flint water customers blogs that appeared on Crain’s of $238.2 million that went into ef- mission would make decisions based on how well schools fect Dec. 17, and DTE now wants perform. Children are not served, he noted, when 11 high website. Comments may be edited I am very impressed by the ambi- for length and clarity. another $344 million, probably be- schools are clustered in or around downtown where the high tious support to right the ship in cause they didn’t get as much as school population is tiny, and only three are on the west side Flint and help all of its residents, es- they asked for in December. They where 4,000 students live. pecially the children. I am confused Successful retail requires either stuck it to residents then, and they Good charter operators should welcome the commission why the residents of this state are al- population density or a lot of safe, plan on sticking it to us again. lowing our governor to push for leg- convenient parking. North of the calliffy2 because it would reduce competition from poor performers, islation that would send large downtown core, much of Wood- whether charter or public. amounts of money that would have to ward has neither. The new trolley It is essential that lawmakers approve a plan to get true edu- be paid back by all state residents. should help when it’s operative, but Re: Reclaim Detroit tries to cation reform in Detroit underway this year. The issue already Futurist610 Woodward retail is going to be a recover from Highland Park fire has been deferred for too many years, and further delay will crapshoot until overall development is much further along. Sad. They really make some cool continue the consequences — to the entire region — of incon- Re: Christine Beatty to host radio call-in show Citymec stuff. I hope they can bounce back. sistent educational quality and catastrophic school debt. Trexinmichigan I have no grudge whatsoever. At Re: DTE files $344M rate request least she went with MPSC Re: WSU’s medical school to Water quality needs to be priority away and is at- begin curriculum overhaul tempting to get A 7.5 percent hike for homeown- As we all learned from the crisis in Flint, clean and safe her life together. ers and an average 5.6 percent cut I graduated about 20 years ago, drinking water is not a resource to be taken lightly. (See sto- However, she for large industrial users? This and the curriculum was undergoing ries, Pages 1, 27) should not be con- sounds like a massive public sub- evaluation and changes back then. Last week, The Associated Press reported on an analysis of sidered some sort of sidy of big business. How is that fair? What in the world happened? We had a an Environmental Protection Agency report that estimated hero and some- Making the system more secure for very diverse class, we had great edu- one who has all users is great, but since we all cation, great residency placements, Christine Beatty nearly $80 billion is needed over the next 20 years to reduce overcome adver- benefit equally, why not an equal good spirit, great relationships with sewage overflows and protect drinking water in the Great sity. Her adversity was self made. rate hike for all users? all the hospitals of Detroit. Lakes region. cowgirl_betty Citymec contrarian90 When needed, the federal government can provide low-interest loans to help communities upgrade sewer and water sys- Good for Christine that doors are tems. If upgrades are deferred or water sources aren’t checked opening back up for her. Just move on past the ones who can’t seem to adequately for contaminants, water quality isn’t all that can suf- forgive — the perfect ones who fer. Communities can see related losses, including beach clos- have NEVER done anything wrong. ings or a decline in tourism-related industries such as fishing. Enjoy the opening doors. Those sorts of problems can all be a side effect of sewer over- Aj flows or stormwater runoff that isn’t properly managed. The federal government should continue — and expand Re: Financing finaled for Scott — low-interest loan programs. And the EPA needs to be a at Brush Park development firm enforcer and aid in community problem-solving. But, Good news, but I’ll believe the re- beyond that, states and local communities need to take own- tail piece when I actually see it. We’re ership of their water quality. hearing about retail plans and There should never be another Flint scenario. But unless space all of the time, especially on Woodward, with very little of that WAYNE STATE UNIVERSITY we stop deferring infrastructure upgrades and keep water having panned out so far. Wayne State’s curriculum doesn't meet new standards of one medical education quality as a front-burner topic, there undoubtedly will be. Marco Ramirez accreditation group, according to a memo. 20160208-NEWS--0009-NAT-CCI-CD_-- 2/5/2016 11:32 AM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 9 Moceri,Oakland Township settle housing plan dispute

By Kirk Pinho site next year, Opponents of the development of the proposed settlement include: board approved rezoning the land [email protected] with buildings have cited concerns about traffic Ⅲ The township’s insurance carri- at Adams and Dutton roads to ac- The settlement of a five-year legal being construct- congestion, density and depletion er, the Michigan Municipal Risk commodate Blossom Ridge . battle between Moceri Cos. and Oak- ed in late 2017 or of housing values due to the devel- Management Authority, matching A referendum on the rezoning land Township will result in an even early 2018. opment. “Blossom Ridge can go for- the $400,000 Moceri is contributing the next month, however, was ap- bigger housing development than “We cannot ward now for the first time within to the veterans association for rental proved to go on the ballot following the township fought in the first survive on our density requirements,” Ferriolo assistance for veterans who want to public outcry from what the Moceri place. McMansions said. “Carillon Creek, which was in- live in the Blossom Ridge/Carillon lawsuit called “a relatively small and The deal was reached in a dis- alone,” he said. tegrally tied to allowing that density Creek development who have an an- uninformed but impassioned and pute over a proposed $93 million Dominic Moceri: “You need diver- for Blossom Ridge, can go forward.” nual income of less than 80 percent vocal minority of residents.” community for veterans, seniors Housing needed for sity for a com- The new development costs are of the Oakland County statistical In November 2012, five new and people with disabilities. It lets elderly, veterans. munity to be expected to top $165 million, Mo- area median income. members of the township board the developer, Auburn Hills-based sustainable. The ceri said. Ⅲ The township raising $125,000 were elected, replacing the majority Moceri Cos., add more living units housing stock that’s growing the About 30 acres of Blossom Ridge to match Moceri funding of that had voted in favor of the rezon- and amenities to the project. most is for the elderly, and we also and Carillon Creek are being donat- $125,000 for a veterans memorial ing. In August 2013, township voters A news release said U.S. District need to make certain that our veter- ed as public park lands. on the Moceri-donated land. overturned the rezoning in a Court Judge Terrence Berg still must ans have the housing they need.” The release says that other parts In August 2012, the township 73-27 vote. Ⅲ approve the settlement before it takes effect. Township Manager Dale Stuart declined to comment other than to say that the township board agreed to enter into the settlement. In December 2014, Moceri/DM In- vestments LLC, a subsidiary of Mo- ceri Cos., and former township Su- pervisor Joan Buser, now a South Carolina resident, and the Michigan Paralyzed Veterans of America filed separate lawsuits against the township alleging violations of the federal Fair Housing Act, Americans with Disabilities Act, Michigan Persons with Disabilities Civil Rights Act and the equal protection guarantee of the U.S. Constitution, among others. The complaints were in response to a zoning dispute involving the Blossom Ridge project at Adams and Dutton roads on 42 acres of Moceri Cos.-owned land proposed in 2011 with 134 congregate care living units, 60 fourplex ranch units and 44 duplexes. All 238 residences were designed for the elderly and people with disabilities. Frank Ferriolo, a township trustee, said the settlement holds all parties harmless and the township admits “no guilt and our ordinances remain unchanged as we had been stating in our defense.” The settlement allows for another development on a second parcel of land, a veterans memorial park, rental assistance for lower-income veterans with disabilities and an additional 30 acres of community parks, the news release says. The new development, spread over the Blossom Ridge land and property in the Carillon Creek development at Adams and Silver- bell roads north of Blossom Ridge, is expected to include 329 residences broken down as follows: Ⅲ 100 congregate care residences in Blossom Ridge. Ⅲ 21 two- and three-bedroom cottages in Blossom Ridge. Ⅲ 20 duplexes in Blossom Ridge. Huntington is proud to have recently been recognized Ⅲ 48 fourplex ranch-style resi- as a Regional and National 2014 Greenwich Excellence dences in Blossom Ridge. Award in Middle Market Banking for Cash Management Ⅲ 56 assisted living health and wellness suites in Carillon Creek. Overall Satisfaction. We’re even more proud of our Ⅲ 84 townhomes in Carillon treasury management team, who earned this award Creek. through their hard work and dedication to our customers. Dominic Moceri, partner of Mo- ceri Cos. and vice president of Moceri Management Co., said in an Member FDIC. ¥® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® interview last week that the final en- Welcome.TM is a service mark of Huntington Bancshares Incorporated. © 2016 Huntington Bancshares Incorporated. gineering phases are expected to take place throughout the year and improvements are expected at the DBpageAD_DBpageAD.qxd 2/2/2016 5:04 PM Page 1 20160208-NEWS--0011-NAT-CCI-CD_-- 2/5/2016 11:54 AM Page 1

SPECIAL REPORT: Winery words

MARY KRAMER Publisher [email protected] Twitter: @MKramerCrain ‘The Big Short’ MICHIGAN BUSINESS How Chateau Chantal’s new CEO sheds light on will lure next generation. Page 14 2008 meltdown

Once in a while, a movie comes along that I think is “required viewing.” “The Big Short” is one of them. Based on the book by Michael (“Moneyball,” “The Blind Side”) Lewis, it takes a highly complicated story — the mortgage meltdown of 2008 — and makes it understandable. Not defensi- ble, but understandable. The movie’s cynical ending questions why nothing has happened to Wall Street to prevent another meltdown. In this presidential election year, it’s clear a lot of Americans aren’t happy. They don’t feel like they are getting ahead financially. But they read about a lot of folks who are, including people on Wall Street with multimil- lion-dollar payouts. Linda Paullin-Hebden, a partner at Warner Norcross & Judd LLP, read Lewis’ book. She thinks it’s ironic that the general public wasn’t more outraged by the bailouts of the big banks. Yet the rescue of the domestic auto industry was criti- cized. “Banks were making risky bets with all of our money,” says Paullin-Hebden, whose practice includes representing investment advisers. “Auto companies were actually making something. There’s a big difference.” Dan Broxup, meanwhile, thinks another meltdown looms, but it could hit the rich who have taken out low-interest loans backed by their own stock portfolios. The big loans are used to pay for anything from weddings to exotic vacations. When the market is going up, it’s a great deal because the client is still making money on his or her portfolio. But what if the market tanks? The lender may demand that you put more LANSINGpower brokers securities up as collateral or pay off the loan. Broxup, with the Grand Rapids- Law firms, others strengthen their lobbying corps Top spenders: Multi-client firms based firm Mika Meyers, primarily repre- Here are top lobbyists in the state, ranked by 2014 sents investors against brokers and in- By Lindsay VanHulle leaders enlisted the help of their lawyers and spending. Expanded list at crainsdetroit.com/lobby vestment advisers. He thinks he could Crain’s Detroit Business/Bridge Magazine lobbyists — namely, Detroit-based law firm see more consumers filing claims LANSING — At times during the past few Honigman Miller Schwartz & Cohn LLP and Gov- Governmental Consultant Services Inc., against brokers or advisers if the market years, leaders of the Detroit Institute of Arts ernmental Consultant Services Inc., a Lansing- Lansing. $1,704,720 tanks. But these would be wealthy folks, regularly invited Michigan lawmakers to based lobbying firm — to convince lawmak- James H. Karoub Associates, Lansing. $1,479,059 not “average Joes.” tour the Midtown museum. ers that saving the DIA was of statewide Kelley Cawthorne, Lansing, Detroit. $1,335,613 Wealthy or middle class, Paullin- The invitations were strategic. In 2013, the necessity. Hebden thinks a “lot of people just don’t museum was in survival mode to keep its “It’s pretty hard to do that sitting at a table RWC Advocacy (formerly Wiener Associates), understand this stuff,” including the tax city-owned collection amid fear and specu- in Lansing,” said Gene Gargaro, the DIA’s Lansing, $632,326 rates on some of the big Wall Street pay- lation the art might be sold in federal bank- board chairman. Once lawmakers can see Michigan Health & Hospital Association, outs. If you’re in a hedge fund, your mil- ruptcy court to appease Detroit’s creditors. the art for themselves, he said, “the case gets Okemos, $547,920 lions are taxed at capital gains rates ver- Strategic lobbying and negotiating were a lot more meaningful to them.” Public Affairs Associates LLC, Lansing, $503,399 sus the much higher personal income invaluable during a sensitive time. Increasingly, lobbying isn’t just the work of rate. Is that fair? Most people don’t get it, Preserving the DIA art would require hun- traditional multi-client firms in state capi- Muchmore Harrington Smalley & Associates she says. dreds of millions of donated dollars, includ- tals. Some law firms with offices in Michigan LLC, Lansing, $474,741 Another reason to go see “The Big ing from the state, where approval from out- are hiring more in-house lobbyists or form- Midwest Strategy Group of Michigan LLC, Short.” Ⅲ state legislators wouldn’t be an easy sell. The ing other partnerships to handle meetings Lansing, $446,668 “grand bargain” was not an easy pitch to with legislators, prepare testimony for com- Michigan Education Association, Mary Kramer is publisher of Crain’s Detroit make, even with influential nonprofit, city mittee meetings and build the relationships East Lansing, $399,498 Business. Catch her weekly take on business and judicial leaders involved. needed to help swing the pendulum in favor Michigan Legislative Consultants Inc., Lansing, at 6:10 a.m. Mondays on WJR AM 760’s Paul To aid in making that pitch, museum SEE LOBBYING, PAGE 12 $398,839 W. Smith show and in her blog at crainsdetroit.com. PHOTO BY BOB ALLEN Source: Michigan Campaign Finance Network 20160208-NEWS--0012-NAT-CCI-CD_-- 2/5/2016 11:11 AM Page 1

12 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 SPECIAL REPORT: MICHIGAN BUSINESS To be sure, lobbying isn’t new to policy and practice group for Dyke- the first carmaker to do so, Cotter Hawks, a director with GCSI. It’s dif- LOBBYING law firms. But it is a way to diversify ma. The firm’s ninth-floor office is said. Yet that poses other chal- ficult to account for the day-and- FROM PAGE 11 their revenue streams; the billable across the street from the Capitol. lenges: Because it was hired to ad- night work of meeting with law- of their clients. hour common to legal work, for in- “If you can change the law to do vocate for Toyota, she added, Dyke- makers and staffers when billing by The investment in lobbying stance, often is replaced with what you need more efficiently and ma probably wouldn’t agree to the hour, he added. bandwidth isn’t without its critics, monthly retainer contracts for lob- effectively, for less money, that’s a lobby on behalf of sales competitors Some lawyers told Crain’s they but nontraditional shifts in hiring — bying work. service to the client.” Ford Motor Co. and General Motors Co. don’t attend such events, preferring and consultants who serve as these The activity also comes at a time Different paths At Clark Hill, Del Chenault, the to leave them to non-attorney lob- behind-the-scenes dealmakers and of increased spending — and firm’s Lansing-based governmental byists on staff who specialize in re- educators — are a trend as clients heightened scrutiny of Michigan’s A law firm’s lobbying activities affairs director, said lobbying rev- lationship-building. seek to save money on litigation or lobbying disclosure laws. The state commonly take one of several enue has grown an estimated 300 Adding horsepower influence policy decisions. Another earned an F for transparency in a re- forms — employing its own non-at- percent in the past seven years. He motivation is to educate existing port last fall published by the Wash- torney lobbyists, or attorneys who would not disclose revenue figures. Several firms said Honigman ap- staff on legislative issues of the day. ington, D.C.-based nonprofit inves- also are registered lobbyists with the The firm has 25 people in its gov- pears poised to boost its lobbying Honigman, for one, is bulking up tigative news organization The state, to retain legal clients or attract ernmental affairs practice group in work, in large part because of its government relations practice by Center for Public Integrity. new ones; working with established seven offices, Chenault said. Twelve Muchmore’s hire. hiring Dennis Muchmore, Gov. Rick Lobbying in Lansing is dominat- multi-client lobbying firms that lobbyists work out of Lansing, three Muchmore joined Honigman last Snyder’s former chief of staff and a ed by traditional multi-client firms, share clients on major issues or of whom are not attorneys. week after roughly five years as Sny- founder of Lansing lobbying firm led for years by GCSI, according to campaigns; or forming affiliations “Having a law degree is a great der’s chief of staff. He will be chair- Muchmore Harrington Smalley & Asso- the Michigan Campaign Finance Net- with lobbying firms to refer clients background,” he said. “Having expe- man of the firm’s government rela- ciates LLC. Honigman plans to cre- work. Michigan lobbyists last year to one another. rience in parliamentary procedure, tions and regulatory practice group, ate a “faculty” that can educate its spent more than $21 million The goal of all law firms that ex- having experience in the political dy- with oversight of a team of attor- younger attorneys, lawmakers and through July, the most recent data pand their lobbying practices is to namics and the political environ- neys who focus on health care, others in public policy and the leg- available, up more than 1 percent keep legal clients with governmen- ment, understanding the arena from gaming and hospitality policy. islative process. from the same period in 2014. tal affairs issues in-house. not only the issue perspective but “Certainly, there’s a lot of intellec- Milwaukee-based law firm Foley The big legal players in the Capi- “That’s what we’ve been trying to also a campaign perspective — that tual horsepower at Honigman, a lot & Lardner LLP, which employs two tol — Honigman, Dykema Gossett say: ‘We’re a one-stop shop,’” Cotter provides a lot of depth.” of built-up experience and persua- attorney lobbyists in Michigan, said PLLC and Clark Hill PLC — in general said. Lobbyists with multi-client firms sion,” said Rich Robinson, the for- last month it has retained Lansing- have spent more on lobbying each Dykema has three lobbyists in say teaming up with law firms can be mer director of the Michigan Cam- based Michigan Legislative Consul- year, according to state lobbying Lansing, she said. The firm also has advantageous for clients with com- paign Finance Network. “It’s quite a tants Inc. as its Michigan lobbying records. Attorneys say their interest added three lobbyists in Washing- plex issues, since lawyers can offer natural (thing) for a law firm to exert firm for an undisclosed fee. in growing this part of their busi- ton, D.C., two in Chicago and one in both legal advice and an understand- itself in that way.” The partnership, described as an ness is to offer clients options for Minneapolis, in addition to attor- ing of the political environment. The new faculty concept, of which “affiliation,” is expected to generate solving problems that don’t require neys who also are registered lobby- Yet even as the industry evolves Muchmore will be part, “is really to referrals in both directions for legal a courtroom. ists, she said. and law firms increase their share of add value,” said David Foltyn, and advocacy work, said Rob Neder- “Sometimes litigation can take Dykema counts numerous au- the business, multi-client firms Honigman’s chairman and CEO. “For hood, who is senior counsel in years and years and years and be tomakers as legal clients. Toyota have retained their influence be- us, it’s not just billing time to clients. Foley’s Detroit office and a former very, very expensive,” said Sandra Motor Corp. was interested in hiring cause they focus 100 percent of manager in Snyder’s administration. Cotter, who leads the government the firm to do some lobbying work, their efforts on lobbying, said Mike SEE NEXT PAGE

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CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 13

SPECIAL REPORT: MICHIGAN BUSINESS Muchmore reflects on long career 105 By Lindsay VanHulle calls a childhood in politics, accom- tion become financially sound. Crain’s Detroit Business/Bridge Magazine panying his mother, a Democrat, His role as Snyder’s chief of staff LANSING — Dennis Muchmore while she campaigned door to door wasn’t easy, either. As one of the returned last week to lobbying, a job in southern Illinois. governor’s top advisers, Muchmore he had nearly 30 years ago in Lans- “My brother has often reminded found himself involved in the un- 145 ing with the launch of a firm that me she’d probably roll over in her folding crisis over lead-tainted still bears his name. grave if she knew I was doing this drinking water in Flint. E N G I But Muchmore said he’s not job,” Muchmore said of working for Muchmore said the state has S N E E R 60 E R S planning to go back to the same Snyder, a two-term Republican. taken responsibility for the crisis N

I G day-to-day lobbying work in his Yet despite his early interest, but that failures at the local and fed- S E D new position with Detroit law firm Muchmore wasn’t looking to politics eral levels contributed to the prob-

Honigman Miller Schwartz & Cohn LLP. as a career. He received his bachelor’s lem.

Muchmore, degree in theater arts and English — Recently released emails show

69, is the new more specifically, he said, 18th cen- Muchmore at times expressing con-

INSPIRING

chairman of tury English poetry — and taught cern that Flint residents felt as

Honigman’s gov- high school in Warren for six years. though they were being “blown off” RESULTS

ernment rela- Muchmore founded what is now by state administrators and ques-

tions and regula- Muchmore Harrington Smalley & Asso- tioning the state’s role in switching

tory practice ciates LLC, a multi-client lobbying Flint’s water source.

group. He also firm in Lansing, in 1988. He sold his With the benefit of hindsight, it’s

S Dennis will be part of a interest in 2003. clear that there were a series of C new “faculty” After he sold his partnership in breakdowns locally, with the state I E Muchmore: The N T team being cre- the firm, Muchmore spent several and with the federal government,” I S job has changed T S too much. ated to train years with Chicago-based executive Muchmore told Crain’s. mostly newer at- search firm DHR International Inc. “Those with direct oversight torneys within Honigman on public and agreed to take a two-year con- should have ensured that corrosion policy and the legislative process. tract to run the Michigan United Con- controls were properly implement- He had served as Gov. Rick Sny- servation Clubs. ed and, when that did not occur, of- der’s chief of staff since 2011. “It was the toughest job I ever ficials throughout the chain of com- Muchmore came to Lansing in had,” said Muchmore, who was mand in the state should have 1973 to work in the Senate. He re- tasked with helping the organiza- caught the error and corrected it.” Ⅲ

FROM PREVIOUS PAGE or two after leaving government, ac- said. “When you have firms like that FISHBECK, THOMPSON, CARR & HUBER, INC. cording to the National Conference of … the ability to talk about and resolve engineers | scientists | architects | constructors We’re bringing value to clients.” State Legislatures. issues is enhanced and it’s not simply, Novi | Macomb | 800.456.3824 | ftch.com Muchmore, though, is not the “(In) a lot of states, Muchmore ‘See you in court.’ That’s the least fa- only lobbyist to translate his experi- wouldn’t even have been allowed vorable option today.” Ⅲ ence in the Snyder administration to take that job with Honigman,” Lindsay VanHulle: (517) 657-2204 to private practice. said Chad Selweski, a former re- Twitter: @LindsayVanHulle Nederhood and Steven Hilfinger, porter at The Macomb Daily and both attorneys and lobbyists for freelance journalist who wrote Foley & Lardner in Detroit, left the Michigan’s transparency report. law office to work for state govern- “The concern there is that if you ment before returning to the firm a know you’ve got a job lined up with few years ago. Both spent time with a lobbying firm … you can start to the Michigan Department of Licensing push things a little bit in favor of and Regulatory Affairs, while Hilfinger that lobbying firm and clients be- 58th Annual also was an administrator with the fore you even walk out the door.” Michigan Economic Development Corp. Lobbyists are required to report That experience led the pair to only their total spending and their Detroit Boat Show approach Michigan Legislative client lists, not how much they Consultants about a possible part- spend per client or per issue. nership. The firms work in similar Muchmore said he planned to areas, such as cutting through bu- register as a lobbyist this week. reaucratic red tape. “I’m not interested in going out Critics of ‘cozy’ and going over to the Legislature and eyeballing people and then going to a Some critics, though, say Michi- client and saying, ‘I can beat these gan law is too cozy toward lobbyists guys,’ ” Muchmore said. “I’m not in- who previously worked for state terested in that kind of stuff, and government. that’s not Honigman anyway. The lack of prohibitions in Michi- Gargaro, of the DIA, would not say gan against state government work- how much the museum paid its lob- ers moving directly into a lobbying byists on what would become the firm, often called “revolving door” “grand bargain,” a deal topping $800 laws, are one reason the state ranked million that preserved the museum’s last of the 50 states in a national collection against being leveraged for transparency scorecard last fall by city debt payments. the Center for Public Integrity. State records show the museum Reap the rewards of your success! Michigan law prevents legislators paid $16,236 in 2013 and $64,207 in who resign from office from lobby- 2014 on “other lobbying expenses.” You’ve conquered the business world…now it’s time to chart your next course. ing for the rest of the term they va- The DIA was “very close” to filing a Explore the best in boats and marine gear, engines and electronics at Michigan’s cated, but makes no such provisions lawsuit to defend the collection, but for administration employees. held off because its attorneys recom- premier marine sales event. At least 33 states have some ver- mended trying to negotiate a solu- sion of a revolving door law. Some tion, Gargaro said. That decision ulti- prevent lawmakers, other elected mately led to the grand bargain. Discount Tickets and more information at DetroitBoatShow.net officials or state department heads “What you’re really saying is clients Show Hours: Saturdays 11am–9pm; Monday 11am–6pm; Tuesday–Friday 3pm–9pm; Sundays 11am–6pm from lobbying for a period of a year today are paying for results,” Gargaro 20160208-NEWS--0014,0015-NAT-CCI-CD_-- 2/5/2016 11:05 AM Page 1

14 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016

CRAIN’S MICHI GA Northern Michigan winery tailo r

By Seth Schwartz president and CEO of Chateau Chan- ation, which is our core customer, Special to Crain’s Detroit Business tal, a 65-acre winery and bed-and- and the millennials that we need to Marie-Chantal Dalese grew up breakfast her parents founded in court for the future,” Dalese said. traversing the rich, fertile soil of Old 1983. “While retaining the largest de- Mission Peninsula. Dalese was in second grade mographic footprint for wine con- Now she’s drawing on her north- when her family first planted the sumption, baby boomers are now ern Michigan wine country roots to vines for the vineyard. Today, she’s beginning a slow decline in con- help market the region — and its 37 and representative of the cus- sumption, which will accelerate in wine — to a new demographic. tomer base the wineries are trying the next six years.” Last year, Dalese was named to capture. To reach that younger crowd, “For the past five years, our mar- Dalese is expanding Chateau Chan- Chateau Chantal overlooks the water on keting plan has been segmented tal’s offerings beyond wine tastings JOHN RUSSELL northern Michigan’s Old Mission Peninsula. into two targets: the boomer gener- to wine experiences — something her peers are watching. Early training After spending her childhood at the family business, Dalese took the advice of her dad, Robert Begin, and sought experience outside the vineyard. “ WHAT’S DTE ENERGY That advice took her to Chicago, where she earned a degree in marketing and management at DePaul DOING TO MAKE IT University and where she later worked for a wine distribution company; to France, where she spent time at a winemaking farm and EASIER ON BUSINESS?” bed-and-breakfast; and to Australia, where she earned a graduate degree in wine business — and met her fu- The new interactive eBill from DTE Energy makes it easy to analyze energy usage and pay your ture husband, Paul. In 2009, the Daleses came home bill. The new, simple layout shows your usage at a glance, gives you links to energy-saving ideas, to Michigan and Marie-Chantal and lets you pay your bill in a snap. There are even sections speciﬁc to your business that can took over as director of marketing at Chateau Chantal near Traverse City. help you understand and manage what you use, and pay. That next year, she began appren- ticing for CEO Jim Krupka; she took the reins of the family company last spring. At Chateau Chantel, Dalese man- ages a staff of 80, including 60 employees in the vineyard and tasting room and 20 at the bed-and-breakfast. Sally Like, Owner Chateau Chantel produces Marcile’s Fashions & Bridal 18,000 cases of its 27 wines annually. The winery also produces three distilled spirits. In 2004, it purchased a 55-acre Malbec vineyard in the Mendoza region of Argentina, rounding out its wine portfolio with a hot climate red. Over the past two years, the company’s growth has been steady at 2 to 4 percent; its annual revenue is $4 million. A ‘sensory tour’ Last year, the winery hired Chef Reuben Rosales. A native of Sagi- naw, Rosales returned to Michigan after training at Le Cordon Bleu Culi- nary Institute in Las Vegas and working as sous chef for Viceroy Hotels in Aspen, Colo., and Beverly Hills and Santa Monica, Calif. Rosales soon put a focus on farm-to-table, wine- themed dinners, as well as informal cooking classes. Those classes and theme dinners, as well as wine boot camps, are some of the ways Chateau Chantal is reaching out to that mil- lennial demographic: Dalese is using video content to promote the events through social media. In addition, the winery is relying on trends to capture that new customer base: Last year it introduced 20160208-NEWS--0014,0015-NAT-CCI-CD_-- 2/5/2016 11:05 AM Page 2

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 15

HI GAN BUSINESS o rs tastings to younger drinkers

a hard cider to its beverage lineup, “Marie-Chantal is always pre- and a new experience this year will For love of wine pared, sharp and very thoughtful; feature small-plate pairings. More than 59,000 people visited she’s a great addition to the indus- Dalese calls that experience a Chateau Chantal in 2015. Here’s try,” Lutes said. “Our industry, with- “sensory tour.” where they came from — and what out intent, is a bit of a boys’ club. It’s “This will be a sit-down tasting they spent — for a glimpse at the great to have more women at the focusing on how wine interacts with customer base of northern helm of their businesses.” your senses; your specialized tour Michigan’s wine industry. Karel Bush, executive director of guide will lead you through our the Michigan Grape and Wine Industry vineyard, cellar and winemaking About half of the guests are from Council, worked with Dalese when process,” she said. “Once in the cel- metro Detroit, with 30 percent she was a governor-appointed lar, you’ll enjoy five small-bite food from West Michigan and the rest member of the council. and wine pairings designed to treat from Chicago and the Midwest. “Chateau Chantal has achieved your taste buds.” 46 percent visited between July its success because the owners and Other changes in the works for and September; 24 percent came in partners have great business sense,” this year are an expansion of the the spring and fall. Bush said. “They’ve diversified. winery’s group tasting room and a They really offer the whole package 60 percent of the winery’s sales reservation-only policy for tour with food and wine. Marie under- were through distribution; 40 groups. stands the younger demographic percent were through the tasting “By providing a special area dedi- and has the knowledge to expand room. cated to the group, we can better the customer base.” serve both the group themselves Half of the customers who come and the non-bus group guests in through the winery bought at least the tasting room,” Dalese said. “It one bottle of wine; bottles were can be incredibly busy and hectic in between $12 and $16. the tasting room, and we want to ease that pressure by investing in a JOHN RUSSELL separate area.” ation of winemakers stepping in Marie-Chantal Dalese grew up on the vine- Lee Lutes, a winemaker since with ideas for change. Lutes and yard where she now operates her family’s 1998 for Black Star Farms on the Dalese have worked together on Chateau Chantal as president and CEO. nearby Leelanau Peninsula, said several boards, including the Michi- One of her goals is to attract a younger Dalese is a model of the next gener- gan Wine Producers Association. generation of wine tasters.

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16 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 WORLD WATCH WHERE MICHIGAN DOES BUSINESS

Amway Corp. Lincoln dealerships across the Canada and Latin America country More information: Kelly Services Based: Ada CANADA Employees: 7,000 opened its first international office Operations: One facility in Lon- Vancouver Products/Services: Ford Edge, in Toronto in 1968. don, Ontario ith a 2014 nominal GDP Montreal Ford Flex, Lincoln MKX and Lin- Products/Services: More than 450 of $1.785 trillion, Cana- coln MKT and the 5.0L V8, 5.4L V8 NSF International health, beauty and home products W da is the 16th-largest and 6.8L V10 engines. Employees: 65 economy in the world and is the Top executive: Dianne Craig, Based: Ann Arbor Top executive: Lydia Ayora, coun- world’s fifth-largest oil producer, Aurora president and CEO for Ford Motor Operations: Offices and laborato- try manager for Amway Canada according to the CIA World Fact- Brampton Oshawa Co. of Canada ries in Guelph, Ontario, and Auro- More information: Amway opened book. Canada, similar to the Unit- Mississauga Toronto ra, Ontario, and one office in Mon- its operation in Canada in 1962, the ed States, is a high-tech industrial Hamilton General Motors Co. treal company’s first international oper- and market-oriented economy. Employees: 253 ation outside the U.S. Canada is also the largest foreign London Based: Detroit Products/Services: Standards de- supplier of energy to the U.S. Operations: Headquarters, as- velopment, auditing, testing, certifi- Autoliv Inc. Canada’s biggest exports are in- Leamington sembly plant and Canadian engi- cation and training for the food and dustrial machinery, motor vehi- neering center in Oshawa, Ontario; beverage industries Based: Auburn Hills cles and parts, aircraft, telecommunications equipment, chemicals, fer- a powertrain facility in St. Top executives: Serban Teodores- Operations: Facilities in Tilbury, tilizers, wood pulp, aluminum, plastics, natural gas, electricity and crude Catharines, Ontario; an assembly cu, global strategic consulting man- Collingwood and Markham, petroleum. Its largest export partner is the United States (76.8 percent). plant in Ingersoll, Ontario; and aging director; Petra Schennach, Ontario Canada’s biggest imports are motor vehicles and parts, machinery and about 460 dealers as well as sales training and education global man- Employees: 1,200 equipment, crude oil, electricity and durable consumer goods. Its largest offices and parts distribution cen- aging director for NSF International Products/Services: One-piece import partners are the U.S. (54.5 percent), China (11.5 percent) and ters throughout the country global food division woven inflatable curtain airbag, Mexico (5.6 percent). Employees: 9,000 textile manufacturing, automotive Each World Watch features a different country. If you know of a Michi- Products/Services: Assembly, en- TI Automotive Inc. seatbelt webbing, restraint central gan company that exports, manufactures abroad or has facilities abroad, gineering and sales of Chevrolet, module, satellite sensors and radar email Gary Piatek, senior editor, at [email protected]. Buick, GMC and Cadillac vehicles Based: Auburn Hills Top executives: Dan Garceau, Top executive: Steve Carlisle, pres- Operations: Fluid-carrying sys- president, Autoliv North America; Coming up ident and managing director of tems plants in Bramalea and Cam- Steve Rode, president, Autoliv pas- Ⅲ March: China Ⅲ April: Australia, New Zealand General Motors Canada bridge, Ontario sive safety electronics; Stefan Kroe- Employees: 150 nung, president, Autoliv active safe- Tire, London Drugs, Sears, Home Hard- International Automotive Products: Brake and fuel lines, ty electronics ware, Lowe’s, Rona, Costco, Home Components Group fuel assemblies Clients: General Motors, Ford, Fiat, Outfitters and Amazon Top executives: Derek McDonald, Chrysler, Nissan, Honda, Toyota, Based: Southfield plant manager; Carson Hodder, Hyundai, KIA, Daimler, Tesla and Daifuku North America Operations: One manufacturing plant manager Mazda Holding Co. facility in Maple, Ontario Clients: Hitachi, MEC Products, Employees: 500 Ivaco Rolling Mills, Atlas Hydraulics, elfor Holdings Inc. Based: Farmington Hills Products/Services: Vehicle interi- Transfer Flow Inc., YH America, Toyota Operations: Plant with manufac- or components and systems and internal Based: Birmingham turing and office space in Hamil- Top executive: Mike Renner, sen- Operations: A headquarters in ton, Ontario ior vice president of operations Vancouver, British Columbia, and Employees: 200 Clients: Ford, GM, Toyota and FCA 34 full-service restoration facilities Products/Services: Conveyors and across the country with office, pro- conveyor parts and specialized Inteva Products LLC duction and warehousing space in equipment COURTESY OF FCA eight provinces Top executive: Rob Meijer, intra- Based: Troy FCA’s R&D center in Windsor. Employees: 1,371 company operations manager Operations: A tier-one automo- Products/Services: Property dam- Clients: General Motors, Chrysler, tive manufacturing and assembly age repair including restoration Ford and automotive suppliers FCA US LLC facility in Whitby, Ontario after water, fire and smoke Based: Auburn Hills Employees: 300 Top executive: William Cook, Domino’s Pizza Inc. Operations: A headquarters, as- Products/Services: Production president of Belfor Canada sembly plant and R&D center in and assembly of automotive cock- Based: Ann Arbor Windsor; an aluminum casting pits and headliners COURTESY OF ZIEBART Operations: Headquarters in plant in Etobicoke, Ontario; an as- Top executive: Ralph Burlingham, A Ziebart franchise in Montreal. Leamington, Ontario, with 400 sembly and satellite stamping plant manager stores across the country plants in Brampton, Ontario; and Clients: General Motors Employees: 700 440 dealers as well as sales offices Ziebart International Corp. Top executive: Michael Schlater, and parts distribution centers Kelly Services president of Domino’s Pizza of Cana- across the country Based: Troy da Employees: 11,000 Based: Troy Operations: A master licensee in COURTESY OF BISSELL More information: Canada was the Products/Services: Chrysler, Dodge, Operations: A headquarters in Laval, Quebec, and 86 franchise lo- Bissell’s office in Mississauga. first international market for Domi- Jeep, Ram, Fiat, Mopar and Alfa Toronto and a network of 22 com- cations across the country no’s. Michael Schlater opened a Romeo vehicles and products. pany-owned and operated offices Employees: 114 Bissell Homecare Inc. store in Winnipeg in 1983. Top executive: Reid Bigland, pres- across Canada Products/Services: Appearance ident and CEO of FCA Canada Employees: 200 and protection services, including Based: Grand Rapids Faurecia North America Inc. Products/Services: Outsourcing professional detailing, paint protec- Operations: One office in Missis- Ford Motor Co. and consulting services as well as tion coatings, under body sound sauga, Ontario Based: Auburn Hills staffing in the fields of finance and barrier, sprayed-on bed liners, au- Employees: 10 Operations: One emission control Based: Dearborn accounting, engineering, informa- tomotive glass repair, architectural Products/Services: Sales for vacu- technologies facility in Brampton, Operations: A headquarters and tion technology, science, health film, window tint, paint protection ums, deep carpet cleaning ma- Ontario assembly complex in Oakville, On- care, office services, contact center, film, truck accessories, electronics, chines, steam mops, sweepers and Employees: 180 tario; two regional offices in Ed- light industrial and electronic as- scratch repair services, vehicle rental carpet cleaning machines Products/Services: Full exhaust monton, Alberta, and Montreal, sembly wraps and vehicle graphics Top executive: Craig Emmerson, systems Quebec; two parts distribution cen- Top executives: Byrne Luft, coun- Top executive: Thomas Wolfe, vice president and general manager Top executive: Joel Kennedy, plant ters in Bramalea, Ontario, and Ed- try general manager for Canada; president and CEO of Ziebart Inter- of Bissell Canada manager monton; two engine plants in Sergio Gomez Luengo, vice presi- national Clients: Walmart Canada, Canadian Clients: Ford and FCA Windsor; and 400 Ford and Ford- dent and general manager for Natalie Broda 20160208-NEWS--0017-NAT-CCI-CD_-- 2/5/2016 11:07 AM Page 1

HealthRise SPECIAL REPORT: expects to hit revenue highs

By Dustin Walsh [email protected] SECOND STAGE For HealthRise Solutions, 2016 is expected to be a breakthrough year, followed by a breakout year in 2017, said CEO David Farbman. The Southfield-based firm, which focuses on helping hospitals improve billing, collections and other processes that contribute to revenue, is growing quickly, reaching $7 million in revenue in 2015 and projecting revenue to top $11 million in 2016. The firm’s products and services cover what is known as health care’s “revenue cycle,” the time when patients are admitted to the hospital, receive services and are billed. The end steps of the revenue cycle include the collections as hospitals seek payments from patients and private or government payers. “We use people, processes and technology with boots on the ground, helping hospitals get the job done,” Farbman said. “It’s really all about infused management David Farbman: and processes, All about “infused helping them do management.” a better job of screening patients and collecting revenue.” HealthRise has expanded its Michigan client base from a lone customer, Oakwood Hospital, in 2012 to include Botsford, Beaumont and Bronson hospitals. But Farbman said it’s about to cross state lines with new contracts. “We’re growing our business out of state, taking our technology to the next level then working on even bigger plays,” he said. “If we don’t double our revenue in 2017, I’d say we didn’t perform well.” Farbman has amassed a board of industry experts to help push the firm to new heights. HealthRise’s board includes Richard Helppie, founder of Bloomfield Hills-based Vineyard Capital Group and chairman and CEO of Santa Rosa Consulting Inc.; Andrew Echt, COO and director Shelving Inc. President and of Applebaum philanthropy at Arbor CEO Joe Schodowski found a Investments Group LLC; David gem in a nontraditional hire. Madgy, chief of otolaryngology at JACOB LEWKOW Detroit Medical Center and clinical professor at Wayne State University School of Medicine; Florine Mark, As boomers retire, employers need to break with tradition to find new hires president and CEO of Farmington Hills-based The WW Group Inc.; and By Rachelle Damico workforce than entering,” said to start getting creative and figur- dents, war veterans and the like David Victor, president and CEO of Special to Crain’s Detroit Business Pete Davis, founder and CEO of ing out how they can get in front can bring value, diversity and a the American Education Institute. With the talent gap continuing Southfield-based Impact Manage- of that.” fresh perspective to a company “There comes a point in every to widen, second-stage businesses ment Services LLC, which provides For some, that means thinking looking to expand its pool of company’s growth cycle where you are going to have to come up with outsourced human resource serv- about moving away from tradi- talent. need an influx of experts to be a different tactics for finding talent. ices such as employee training tional cookie-cutter candidates in This approach could mean sac- game-changer,” Farbman said. Demand is outpacing the sup- and consulting. He’s worked with favor of nontraditional hires. One rificing certain skills for more valu- “These people come from rich ply of talent as baby boomers hit companies that are starting to way to do that is to look in differ- able ones and putting a greater board backgrounds and a different retirement age and the economy groom people over the next five ent places for people who other- emphasis on cultural fit. “There understanding of the elements of improves, putting pressure on years for jobs that don’t even wise may have no reason to ever are more jobs than talent that is the business we’re in. This board companies to try new angles. exist yet. come across a company. Immi- qualified for them,” Davis said. will help us fuel future growth.” Ⅲ “More people are leaving the “Companies are going to have grant workers, international stu- SEE HIRING, PAGE 18 20160208-NEWS--0018-NAT-CCI-CD_-- 2/5/2016 11:08 AM Page 1

18 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 SPECIAL REPORT: SECOND STAGE HIRING FROM PAGE 17 Visa rules do allow for hiring international students “You have to be open. Some skills are more easily trainable than others.” Steve Tobocman, head of Glob- which allows students to work in sion, which allows international Tobocman said the rules But specialists say there are extra al Detroit, said many employers the U.S. by engaging in practical students majoring in STEM allow an opportunity for an em- business rewards, beyond immedi- misunderstand how the visa training during or after their fields to stay in the U.S. an addi- ployer to work with internation- ate hiring needs, for securing talent process works. program ends, as long as a uni- tional 17 months after gradua- al students and see if they’re in- off the beaten path. “What we find is a lack of aware- versity verifies that the student tion if employers use an elec- terested in sponsoring an H1B1 There are many of these less-ob- ness on the rules and processes by is working in the chosen field of tronic verification system. visa. This visa provides three vious pools of talent out there. Here which an employer can pursue tal- study. Under new rules proposed in years of work authorization and are five: ent,” said Tobocman. International students major- October, the Department of Home- can be extended another three 1. Immigrants Most international students ing in STEM (science, technolo- land Security would extend the to six years. come to the U.S. on an F1 visa. gy, engineering and mathemat- 17-month extension to 24 Bringing in international tal- “There is a very large population International students using ics) fields can stay in the U.S. months. Altogether, business ent pays “enormous dividends of highly educated, skilled immi- an F1 visa can stay in the U.S. for longer if they are using the OPT owners would have the opportu- over time,” Tobocman said. grants here in the United States who up to 12 months after graduation program. In 2008, President nity to bring STEM talent into “It can really give companies have a college education, profes- if they are using the Optional George W. Bush’s administration their company for three years at a competitive edge.” sional experience and are fluent in Practical Training program, created the STEM OPT exten- no extra cost to the employer. Rachelle Damico English and permanently work-authorized,” said Allie Levinsky, Mid- west program director of Upwardly your business to the needs of differ- Lutheran Social Services of Michigan company’s best employees. 2. International students Global, based in San Francisco. The ent communities and customer when he was in need of an installer “Our expectations were to find nonprofit helps skilled immigrants bases.” for his company, which provides somebody that was willing to do the Another group to consider is in- and refugees integrate into the U.S. Many organizations offer candi- shelving and racking systems for work and learn how to enhance ternational students. workforce. dates that are already authorized to warehouse manufacturing and dis- their skills,” said Schodowski. “His Global Detroit, an immigrant-fo- Levinsky said hiring immigrants work in the United States, do not re- tribution centers. work ethic was second to none.” cused nonprofit led by Steve Toboc- helps fuel business growth, espe- quire sponsorship and are on their The nonprofit suggested a Bosn- Schodowski said he had to work man, works with international stu- cially if a company is targeting in- way to citizenship. ian refugee, who did not require with his installer for a few years to dents and studies their impact on ternational customers or markets. “A lot of people don’t understand visa sponsorship. improve his English. He also flew Southeast Michigan’s economy. “When you have diversity of the immigration process,” said “(Immigrants) have to do a lot of and paid for his installer’s trip back Tobocman said two-thirds of thought, it creates innovation and Levinsky. “Refugees are coming work to get over here,” said to Bosnia when his father passed Michigan international students are helps to drive better business out- here and have work authorization. Schodowski. “To me, that already away. majoring in STEM fields — science, comes,” said Levinsky. “Having peo- It doesn’t cost the employer demonstrates that they have drive, “It’s always hard to find good technology, engineering and math- ple who work within your organiza- anything.” which you can’t teach.” people, and when you find some- ematics — which are in high de- tion who understand different Joe Schodowski, president and The installer has been with one that’s good, you do everything mand among employers. customers can only help you to be CEO of Auburn Hills-based Shelving Shelving Inc. for more than 14 years. you can to retain, train and keep “It’s incumbent upon us to have a more effective in the way you align Inc., reached out to Detroit-based Schodowski said he is one of the them,” said Schodowski. strategy to attract those students and help them articulate into the workforce,” said Tobocman. Tobocman said many international students want to stay in the U.S. to work but are forced to leave the country once their student visas expire and have a limited time upon graduation to get a job and a work visa to stay. Companies can sponsor a visa and get top talent as a result. “They bring a diversity of perspective that can help Michigan companies have a competitive edge and find customers from across the globe, suppliers from across the globe and benefit from innovation from across the globe,” said Toboc- man. Tobocman said visas can cost up to $5,000, including legal fees. It’s not cheap, but employers should consider the long-term investment. “The notion that you’re stopped somehow from considering almost two-thirds of an available talent pool because you’re unwilling to consider a $5,000 expense is penny wise and a pound foolish when you’re talking about that kind of top talent,” said Tobocman. Sophia Chue, office manager at Detroit-based Process Control & In- strumentation LLC, recruits many international students because she said that the company values their work ethic. The firm hires and sponsors international students because many CONNECTING YOUR DETROIT BUSINESS TO THE WORLD major in STEM fields — a plus for an industrial control systems engi- Locally based facilities, fleet and full-time professional team allow us to provide our Southeast neering company. Michigan members best-in-class personalized services, flight availability and cost efficiencies. “Their aptitude for learning is Connecting Detroit to the rest of the world, one way or round trip. Now scheduling private tours. there,” said Chue. “They want to corporateeagle.com | 248.461.9001 succeed because they’re given an

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CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 19 SPECIAL REPORT: SECOND STAGE

FROM PREVIOUS PAGE ness,” said Barnes. “Veterans will “Employers are really at the relocate to where jobs and oppor- point in Detroit — because things opportunity here that they’re often tunities are.” are growing and moving and sec- not allowed at home.” MVAA has seen retention rat- tors are growing so fast — that the Chue said PCI often finds inter- ings of above 90 percent when em- old rules don’t apply anymore,” national student ployers commit time and invest- said Moore. “There used to be a candidates at ment into training veterans. time when you saw that gap and hiring events “You tend to see a lot of loyalty set the résumé to the side, but you held by Wayne that gets bred in your DNA as a mili- don’t do that now.” State University. tary service member,” said Barnes. 5. Ex-convicts “We see the “When they identify with a mission, value of the stu- feel like they’re part of a team and Moore said companies should dents when we they’ve got a future with the organi- also consider former prisoners get their ré- zation, they tend to stay.” who are trying to establish new Sophia Chue: Re- sumés,” said 4. Long-term unemployed lives. cruits international Chue. “They dig “They’re probably older, more students. in, get involved Don’t discount a candidate be- mature, have some work experience and pay atten- cause of résumé gaps. and know how to show up every day tion to everything.” Pamela Moore, president and and come to work,” said Moore. 3. Military veterans CEO of Detroit Employment Solutions Employers can also benefit fi- Corp., a nonprofit that connects nancially when hiring those with a Veterans are another often-over- employers and jobseekers, said criminal record. looked group. there are many reasons candidates Community Ventures Resources Inc., “Our veterans come back with may have a gap on their résumé. an initiative of the Michigan Econom- job-ready skills, but they’re also Reasons can include medical ic Development Corp., gives employ- very trainable,” said Jeff Barnes, issues, layoffs and returning back ers up to $5,000 over time and can director of the Michigan Veterans Af- to the workforce after having a also help qualifying employees fairs Agency, which connects em- child. with transportation and other ployers and veterans. “A really responsible employer services. “It’s that proven leadership, doesn’t just dismiss a résumé that The U.S. Department of Labor pro- strong work ethic and trainability has that gap,” said Moore. “Dig vides bonding programs and tax that makes them very adaptive,” deeper and find out what those incentives for companies hiring said Barnes. reasons are. It’s usually not that the at-risk job seekers. Barnes said there are incen- employee isn’t employable or Moore said she has worked with tives for veterans. The military doesn’t have skills.” employers who say returning citi- will pay for the last move of a Moore said that as the talent zens are their best employees. veteran and the veteran’s family. gap continues to widen, em- “They have the right attitude A veteran can also receive up to ployers will do themselves a dis- because they’re grateful that five years of free health care. service to ignore candidates be- somebody has given them that “That reduces costs for the busi- cause of résumé gaps. second chance,” said Moore. Ⅲ Crain’s seeks 20s nominees It’s that time of year — time to nominate a 20-something professional who is making his or her mark in metro Detroit. This program recognizes the hard work of local rising stars while also giving them the opportunity to further propel their careers. Employers, take note: This is your chance to boast about internal talent. Candidates for Crain’s 20 in their include up-and-comers making waves within a company, men and women who have shown success or originality as entrepreneurs, or those who have made an impact in civic or community leadership roles. Winners will be profiled in an edition of Crain’s Detroit Busi- ness and on its website. Nominees must be 29 or younger before June 1. Nomina- tions are due Feb. 29. To fill out the form, visit crainsdetroit.com/nominate. Read about last year’s class at crainsdetroit.com/20. Questions? Contact Assistant Managing Editor Kristin Bull at [email protected] or (313) 446- 1608, or Special Projects Coordi- nator Keenan Covington at [email protected] or (313) 446-0417. Ⅲ 20160208-NEWS--0020-NAT-CCI-CD_-- 2/5/2016 11:34 AM Page 1

20 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 SPECIAL REPORT: SECOND STAGE Ad agency gains clients without sales reps

Michael Watts co-founded Hook most ad company founders do bouncing from agency to agency. industry. It’s even more so in adver- Studios in 2006 with fellow freelance when they go out on their own. That worked well for Hook. As tising, an industry all about sales. designer Aaron Schwartz and more In other words, they didn’t have contacts at one client company Employees at advertising agencies talent than industry expertise. salespeople. They were left to whip moved to another, they took their usually exist in one of two sides of They had experience, and clients, up work from their existing contacts goodwill toward Hook with them the workforce: accounts (sales) or as commercial artists but hadn’t and take it from there. “We didn’t and sent more business Hook’s way. creative. To forgo accounts alto- Hook Studios LLC worked for an agency or been know we were supposed to have “Our clients became our sales gether is to disregard an ingrained Location: Ann Arbor groomed as managers. They rolled salespeople and didn’t have the force,” Watts said. industry practice. the dice anyway and started their money anyway,” Watts said. After a while, Watts and his team But Hook saw advantages. For Description: Advertising agency own digital creative agency. Solution: The solution came recognized this and decided to stick starters, the company shaves 15 Managing director: Michael Watts Clients have included YouTube, about less by planning and more by with it: They hadn’t needed account percent to 20 percent off expenses Employees: 68 Coca-Cola, Google and Old Spice. simply not worrying about it. managers so far; why bother with every year. Second, it’s more effi- Problem: Being new to the indus- The advertising industry is an in- them at all? cient. With the middle man be- Revenue: $11.5 million in 2015 try, they didn’t have the contacts cestuous one, with workers readily This is a bold step to make in any tween clients and creatives eliminated, jobs get done faster. Watts and his team made this the company’s modus operandi, in- stalling brand and product managers as direct contacts with clients. “These are the people in the room who can speak with expertise about what is possible,” Watts said. Hook still has no account managers, and that doesn’t seem to be causing the agency any problems. Revenue grew to $11.5 million last year, a 75 percent increase from 2014. The company has worked with more than 150 brands and agencies. “Being ignorant of the standards the industry relies upon let us not fall into the same traps,” Watts said. Risks and considerations: The drawback of this approach is that it relies on happenstance events outside the company’s control. Con- tacts at client companies could very well stay put rather than take their Have a good day, for a long time to come. love of Hook to new employers. “We couldn’t tell people who are being advocates for us to go some- In the discipline of wealth management, you might ask if Greenleaf Trust is good where else,” Watts said. at everything. If that means everything you’ve worked for, everything you’ve That doesn’t deter Hook. It dou- bles down on the strategy by work- saved and invested for, and everything you hope your wealth can make ing harder to develop relationships possible from this generation forward, the answer is yes, yes and yes. with clients. It was relationships developed at Google and YouTube that With our client centric focus, goals-driven investment approach, and pushed last year’s growth. Expert opinion: Startups common- the stability enabled by nearly $8B in assets, we achieve remarkably ly forgo salespeople out of necessity, good things for our clients day after day after day. said Dave Haviland, owner of Phi- mation Ventures Inc., a consultant in Please call us to learn more. Ann Arbor. For later-stage companies, it’s less common. That’s because people who are good at one thing, like creative work, are pulled away to handle sales, which they might not be so good at. “There’s no right answer. It’s a constant tension you have to manage,” Haviland said. Another way to handle this is to send in the expert-type manager at first, then pull the person back once the deal is done. This person can “assess the situation and wow the customer” before handing off follow-on tasks to a salesperson, Havi- land said. Eventually, though, companies the size of Hook and larger need a formal sales team. “At the scale they’re at, it makes sense to have someone devoted to the sales function. The upside is, I bet they win a lot of bids because they don’t just have some schmuck 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 salesperson going in. They have an expert go in, and it looks good,” Haviland said. Gary Anglebrandt 20160208-NEWS--0021-NAT-CCI-CD_-- 2/5/2016 11:10 AM Page 1

SPECIAL REPORT: EMPLOYMENT LAW Whistle blowback Proposed contractor rule could have unexpected pitfalls

By Chad Halcom [email protected] A proposed rule that could bar some companies from federal contracting based on their whistleblower practices could have unforeseen pitfalls, like bid protests and employee lawsuits, local attorneys said. The amendment to the Federal Acquisition Regula- tion, proposed Jan. 22 by the U.S. Department of Defense, General Services Administration and National Aeronautics and Space Administration, would forbid the government from spending money on businesses or nonprofits who require employees or subcontractors to sign “confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting (any) waste, fraud, or abuse.” Local attorneys said that may sound clear-cut, but government contractors and major law firms are likely to raise concerns about it during a comment and response period that lasts until March 22. The rule could lead to possible competitor bid protests, extensive review of supply-chain agreements, enforcement questions and “retaliation” suits from employees who feel their reporting rights were chilled by the company. Maureen Rouse-Ayoub, chairwoman of the Work- place Law Group at Detroit-based Bodman PLC, said the SEE WHISTLE, PAGE 22

Court ruling may change use of ‘pickoff’tactic in class-action lawsuits

By Chad Halcom cision last month collective-action lawsuit, and then ployer will accept a court judgment wasn’t accepted is void — essential- [email protected] switched its posi- get the case dismissed even if the against itself and pay the highest ly taking that defense strategy off A new U.S. Supreme Court ruling tion on a 2013 offer goes unanswered. sum an employee stands to gain in the table. against Detroit-based Campbell employment It’s a strategy sometimes called a court. If the employee doesn’t re- It’s unclear whether Campbell Ewald Co. could close off or drasti- case and said “pickoff” in class-action or collec- spond in two weeks, the company Ewald will continue to fight the text cally change a tactic businesses na- companies can- tive-action cases: A person brings a can ask the court to dismiss the suit messages lawsuit at a California tionwide sometimes use to defuse not get certain suit on behalf of himself and others on the grounds that the offer made court. The Navy moved its advertis- employee class-action lawsuits, be- kinds of suits he claims have suffered the same vi- the controversy moot, even if it was ing account to rival firm Young & Ru- fore they can gain traction. Deborah Brouwer: tossed out just by olation. But the class isn’t a class not accepted or paid. bicam Inc. of New York last year, and Campbell-Ewald v. Gomez is not Dismissal tactic is making offers to until a judge says so by certifying The justices had previously Campbell Ewald parent company itself an employment lawsuit — the not widespread. individual em- one in court, and defendants some- found in Genesis HealthCare Corp. v. Interpublic Group (NYSE: IPG) fired ad agency is accused of violating the ployees in the times offer to pay the individual Szymczyk that an employment law- the ad shop’s CEO, Jim Palmer, Jan. federal Telephone Consumer Pro- early stages of claim before that happens. Why? To suit in Philadelphia over meal break 29 after an unrelated racist email by tection Act via mass-marketing text litigation. head off much more expensive time for nurses could be dismissed a staffer at its San Antonio office be- messages through subcontractor At issue was whether lawsuit de- class-action litigation. that way. But local attorneys said came public. Mindmatics LLC to mobile phone fendants can make an “offer of judg- Pickoffs can take various shapes, other rulings were split about that Kevin Wertz, the agency presi- users, on behalf of the U.S. Navy. ment” to an individual with a pro- but one approach is to make an subject, and the court in the Camp- But the court majority in that de- posed class-action or offer of judgment, where an em- bell Ewald case found an offer that SEE TACTIC, PAGE 23 20160208-NEWS--0022-NAT-CCI-CD_-- 2/5/2016 11:19 AM Page 1

22 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 SPECIAL REPORT: EMPLOYMENT LAW

Transportation Act of 2015, which you have one already, you have to Are they going to refuse to pay which have gained popularity in dis- WHISTLE includes a modified Motor Vehicle notify employees that it’s changed,” you on work done? Are they cancel- crimination cases before the EEOC. FROM PAGE 21 Safety Whistleblower Act to incen- she said. “But who’s going to be the ing the contract?” she said. “What’s The EEOC reports receiving al- proposed rule is a piece of a larger tivize automotive employees and appropriate law enforcement offi- the remedy here? What is the in- most 38,000 complaints for retalia- framework of recent decisions and insiders to bring forward informa- cial to report these things? What is tended outcome?” tion against an employee for report- rules from President Barack Obama’s tion about safety defects. ‘lawful reporting’ under this rule? In an industry like defense, ing claims of workplace administration that redefines or sets Rouse-Ayoub expects many busi- And someone is going to have to where engineers and program discrimination or civil rights viola- other limits on confidentiality, nesses with government contracts, in- enforce this.” managers or suppliers often move tions in 2015, compared with just through agencies like the National cluding local employers, to weigh in Rouse-Ayoub and Erin Toomey, from one company to another, 18,200 in 1997 — even though total Labor Relations Board and the Equal on some ambiguities in this proposal. partner in the government procure- Toomey said, it’s possible one bid- EEOC complaints are only up about Employment Opportunity Commission. “The statute is really quite vague. ment practice in Foley & Lardner LLP’s der could even protest a contract 11 percent over the same period. Obama in December also signed It provides that you cannot require a Detroit office, both noted that the award to another one if any of its Whistleblower cases as a whole the new Fixing America’s Surface confidentiality agreement, but if rule requires contractors to notify employees used to work at the win- before the Occupational Safety and employees of subcontractors of ning bidder firm and still have Health Administration are also up changes in their agreements to com- handbooks that suggest employees about 65 percent between 2005 and ply with the new law, which could re- are chilled from reporting abuses. last year, according to an OSHA an- quire an extensive review of records. Michael Brady, a partner at Warn- nual statistical report. It’s possible the Intellectual Property | Litigation | Technology But Toomey added that the rule er Norcross & Judd LLP’s Southfield of- new rules for defense and other gov- will also require contractors to in- fice, said the larger emphasis on in- ernment contract reporting could clude a statement in contract bids centives and protections for also generate more cases for employ- or offers that it does not require whistleblowers by the Obama ad- ers to grapple with, attorneys said. such confidentiality agreements — ministration, including the FAST act “At the EEOC, when you just Transactional possibly opening themselves to liti- signed in December, can create dif- compare the number of cases on gation if competitors or employees ficulties for auto suppliers who try to more traditional claims of discrimi- experience on par can challenge it. handle waste and abuse internally. nation, those have actually been with the major Silicon “Under the new rule, every time a “That’s definitely a concern for more flat. Those are essentially the company submits a proposal they us, the fact that incentives can same (now) as in 1997. But the total Valley law firms. must also expressly certify they are mean an individual employee who volume is up” due to retaliation – BRAD KANCIGOR,KANCIGOR, ASSOCIATEASSOCIATE GC not preventing or chilling reports of doesn’t have all of the available in- claims, Klotz said. Synopsys,Synopsys, IncInc fraud or waste and abuse. The fact formation or an agenda of their own “It’s just become the theory du that you gave a certification and it might be overly encouraged to run jour. You can allege retaliation for turned out to be inaccurate could to the Department of Justice instead claiming discrimination, which is a give rise later to a (federal) False of letting the company look into the separate claim from whether or not YOUNG BASILE. Claims Act lawsuit,” she said. “And if problem,” he said. you prove actual discrimination, Strategic advisors to the world’s you can’t certify that, you might be Gary Klotz, shareholder in the and it gives you another bite at the most innovative companies. at risk of losing the award.” labor and employment practice at apple of making a case.” Rouse-Ayoub said another part Butzel Long PC, said it’s possible a new The government is expected to of the proposal that’s unclear is rule could also drive up federal take industry comments and other ANN ARBOR TROY SILICON VALLEY CHICAGO what the government will do if a agency complaints and civil lawsuits, proposals from the comment period www.youngbasile.com contractor doesn’t comply. including possible retaliation claims, under review starting this spring. Ⅲ Bioindustry seeks better policies,capital Michigan ranks high in academic Labor & Employment Experience research and development and in technology innovation in the bio- ® science sector, but more investment In Your Corner. capital and C-suite expertise, as well as better state policies, are needed for a vibrant and growing bioecono- Ŷ Former member of the National Labor Relations Board and my. Commissioner of the U.S. International Trade Commission. That is the conclusion of the Dennis has served as a presidential appointee under four bioindustry roadmap unveiled last U.S. presidents week as a joint effort of MichBio, the Ann Arbor-based nonprofit trade Ŷ Involved in signifi cant international trade initiatives, organization for the state’s life sci- including creation of the World Trade Organization, the ence industry; Business Leaders for North American Free Trade Act, and the Free Trade Area Michigan; and the University Research of the Americas. Corridor. “The reality is that Michigan’s biosciences cluster, despite its strengths, is not currently competitive enough in the global bioindustry, either with peer states or with nations that in many ways are out- performing this state,” read an in- troduction to the report. The report also found that Michi- gan ranks: Ⅲ Fourth among states for the number of science and engineering workers and eighth for the number of scientists and engineering graduates. Ⅲ 11th among the states for aca- First Tier Ranking in Labor Law – Management demic bioscience R&D annually, about $1.3 billion. Ⅲ Contact Dennis Devaney at [email protected] 13th in total bioindustry em- Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings ployment, with about 42,000 jobs. Tom Henderson 20160208-NEWS--0023-NAT-CCI-CD_-- 2/5/2016 11:22 AM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 23 TACTIC FROM PAGE 21 LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES

dent who has replaced Palmer as CEO, did not respond to requests for comment on the case. Laura Voted “Best Bank” 2011 - 2015* Wytsma, lead attorney for Campbell Macomb Daily Ewald at Loeb & Loeb LLP in Los An- geles, also could not be reached. Jason Thompson, head of the complex litigation department at Sommers Schwartz PC in Southfield, and partner Deborah Brouwer of Best bank...5 years running. Detroit-based Nemeth Law PC, both said the dismissal tactic used in Campbell-Ewald is not widespread. But employers sometimes use it if a case is nearly past the Best-in-class products. statute of limitations to be heard in court, or if no other employee at the same company is likely to bring a similar lawsuit later. Best of all… “It’s a strategy that works well in wage and hour cases because they’re very susceptible to a party being able to figure out exactly what is owed to local decision making. one person,” Brouwer said. “And that area is one of the hottest in employment law right now, for a couple of reasons. They’re very predisposed to class actions, and if there is a class, there’s incentive for plaintiff firms to As a Michigan-based bank, we’ve been getting to work helping businesses since 1917. By providing area expertise and loan take the cases. decisions that come out of our local office and not out-of-state, our services are enhanced to optimize cash flow and finance “But I don’t think this (dismissal) growth to help businesses move forward, even faster. And with best-in-class banking resources like Positive Pay, Business tactic is all that common, because it Express Deposit and SBA loans, you’re always banking big…even when you’re banking local. would really be limited to cases where there is unlikely to be another plaintiff.” Learn more about how big doesn’t always mean best. Thompson said his law firm has Give us a call today. handled at least 100 lawsuits under www.thefsb.com/business | 866-372-1275 the federal Fair Labor Standards Act nationwide, like Genesis Healthcare, *Voted “Best Bank” by Macomb Daily (2011: 3rd; 2012: 1st; 2013: 1st; 2014: 1st; 2015: 2nd) since the court made that ruling in 2013, and he estimates five or fewer tried to use that specific strategy. But it is an occasional defense strategy for “running out the clock,” or Niche manufacturing in Detroit? settling with individuals until the al- leged violation was too far back in We’ve got your accounting systems ALL SEWN UP. the past for a new class action to be filed, he said. “When Genesis Health came out, a lot of us in the plaintiff’s bar were screaming that the sky was falling, and companies were going to pick off a lot of suits this way, and that Our client, Detroit Denim, is a high-quality didn’t really happen,” he said. “For one thing, they have to allow the denim manufacturer poised to scale the judgment to be entered against brand nationally. Emerging startups like them in federal court, where other parties can reference it, and not this require accounting advice that can see many attorneys are comfortable the company through its next stage of with that.” Both attorneys also said the rul- growth. We work with founders to ensure ing may have eliminated one pickoff strategy, but it remains to be the business' tax and accounting systems seen if the court will allow a differ- are right, right from the start. Because ent approach — like actually at- tempting to pay the judgment, not when it comes to choosing an accountant, just offering one, by depositing the it should be a custom fit. sum into an escrow account or with a court clerk. Thompson said he actually had a potential class action under the same Telephone Consumer Protec- tion Act law get dismissed just in the past few months, after a client actually accepted an individual offer and Contact for Inquiries left the case without a controversy. Steve Wisinski, CPA, CFE, CFFA “(Putting up the money) might Partner not succeed as an actual strategy, but someone’s probably going to try www.ShindelRock.com | 248.855.8833 it. Because the Supreme Court al- Eric Yelsma, Founder Steve Wisinski, Partner Detroit Denim ShindelRock 28100 Cabot Drive Ste. 102 | Novi, MI 48377 most invited it, by the way the ruling was made,” Brouwer said. Ⅲ Chad Halcom: (313) 446-6796 Twitter: @chadhalcom 20160208-NEWS--0024-NAT-CCI-CD_-- 2/5/2016 11:17 AM Page 1

24 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 PEOPLE: UPCOMING EVENTS groups, Miller Canfield; Tom Kelly, COO SPOTLIGHT Fireside chat. 5-8 p.m. Feb. 18. Mar- and director of entrepreneurship, keting and Sales Executives of De- CALENDAR Automation Alley; Bryce Pilz, clinical Burns to return to Wayne troit. Global business leaders Steve assistant professor, UM Law School; State to lead foundation Miller, CEO of IAC, and Steve Kiefer, Technology Industry Outlook. 8-11 The 2015-16 Detroit Red Wings Season, Matt Gibb, deputy Oakland County vice president of global purchasing a.m. Feb. 22. Automation Alley. The 11:30 a.m.-1:30 p.m. Feb. 25. Detroit executive. Automation Alley, Troy. St. John Providence Foundations and supply chain for General Motors, key findings of Automation Alley’s Economic Club. Players and coach- $30; $40 walk-ins. Phone: (800) 427- President Susan Burns will re- are the speakers. John McElroy will annual technology industry report es discuss the season. MotorCity 5100; email: info@automation turn to Wayne State University lead the discussion. Westin, South- will be discussed. Detroit Institute Casino Hotel, Detroit. $45 DC alley.com. this week to field. $45 members; $60 nonmem- of Arts, Detroit. $25 members, $45 members, $55 guests of members, again lead bers. Website: msedetroit.org. nonmembers. Contact: Lori Podsi- $75 nonmembers. Phone: (313) 963- Government Forecast Breakfast. 9- the Wayne adlik, (248) 457-3212; email: 8547; email: [email protected]. 9:30 a.m. March 7. Birmingham State Universi- The Unlocked Summit. 9 a.m.-5 p.m. [email protected]. Bloomfield Chamber of Commerce. ty Foundation Feb. 20. A la carte Galore and Em- Autonomous vehicles are coming: Op- Speaker: U.S. Sen. Gary Peters. The and serve as pireLifeMag.com Learning experi- Young Professionals Panel. 7:30-9:30 portunities and challenges. 7:30-11 Townsend Hotel, Birmingham. $50, vice presi- ence for entrepreneurial-minded a.m. Feb. 24. Leadership Oakland. a.m. March 2. Automation Alley. $40 members, $290 corporate table dent for de- women. The goal is to help partici- Moderator: Jennifer Korman, prod- Seminar explores the challenges of eight. Phone: (248) 644-1700; velopment pants execute their plans and “un- uct and change management ana- and opportunities that self-driving email: [email protected]. Susan Burns and alumni lock” their goals, dreams and fu- lyst, Mercedes-Benz Financial cars will pose to our region, includ- affairs. tures as professional women. Services. Panel: Ryan Bladzik, village ing legal, economic growth and Calendar guidelines. Visit Burns, 54, will succeed veter- Includes 10 workshops and a panel council president, Holly; Kim Martin, policy considerations. Speakers in- crainsdetroit.com and click “Events” an fundraiser Chacona Johnson, discussion on the “State of the New systems manager, performance im- clude: John Maddox, assistant direc- near the top of the home page. Click 62, who is retiring. Detroit.” Keynote speaker and Un- provement, Henry Ford Health System; tor, University of Michigan Mobility “Submit Your Events” from the drop- Prior to serving at St. John lock the City award recipient is De- and Treger Strasberg, co-founder/ Transformation Center, and director down menu. Fill out the submission Providence Foundations, Burns troit City Councilwoman Mary CEO, Humble Design, on perspec- of Collaborative Program Strategy, form, then click “Submit event” at held various leadership develop- Sheffield. TechTown, Detroit. $100- tives to leadership. MSU Manage- UM Transportation Institute; Richard the bottom of the page. ment roles at WSU between $150. Contact: TaQuinda Johnson, ment Education Center, Troy. $32 Walawender, corporate group co- 2001 and 2008. More Calendar items can be phone: (248) 716-0240; email: members, $36 nonmembers. Web- leader and director, international found at crainsdetroit.com/events. [email protected]. site: leadershipoakland.com. practice and automotive practice Amherst adds Lewis to lead capital-raising group ADVERTISING SECTION Amherst Partners LLC, a Birm- ingham-based investment banking firm, has recruited Gary Lewis as a partner to head its LAW MANUFACTURING new capital-raising group. Lewis was most recently a managing director at Southfield- Lisa Hamameh, Heather Menary, based investment banking and Shareholder, Chief Financial Officer private investment firm Cascade Foster Swift Collins & (CFO), Partners LLC and has worked at Smith PC Dee Cramer, Inc. Grosse Pointe-based Bainbridge Ventures Inc., among other firms. Lisa Hamameh is a municipal Dee Cramer announced litigation attorney in the that Heather Menary has ADVERTISING Farmington Hills office who practices in: joined the company as their new CFO to help Bassett & Bassett hires & MARKETING municipal, zoning and land use, and liquor guide the financial and strategic direction of heads of overseas offices licensing law. A graduate of Wayne State the 78-year old firm. Heather brings deep Detroit-based Bassett & Bas- Tom Ussery, University Law School, Hamameh has been manufacturing experience. She received her sett Communication Managers and selected as a dBusiness Top Lawyer, Best Business Intelligence degree in Accounting from Michigan State Counselors has hired managing Lawyers in America® 2016 and was also Director, University and became a CPA in 1999. Her directors for its newly opened chosen for "Women in the Law" by Michigan career foundation in public accounting and JR Thompson and offices in Lebanon and India. Lawyers Weekly. Hamameh serves on three subsequent experience in Risk Management, Competition Graphics Bassett & Bassett named sections and two committees of the State Bar capital planning, financial reporting, supply Nasser Beydoun to lead its Middle Tom Ussery has been of Michigan, in addition to numerous, chain, sales and operations provide her with a East office in Beirut. Beydoun, appointed Business Intelligence Director at J.R. associations and community service widespread business perspective. who has been vice president, Thompson Company. Ussery and his team will organizations. identify patterns within market conditions and multicultural marketing, for the company, is a former executive customer behavior, creating a strategy “DNA Ray Littleton, map” that will serve as the foundation for future director of the Dearborn-based Shareholder, American Arab Chamber of Com- creative, messaging and program execution for HIDDEN merce respective clients. Ussery's group will support Foster Swift Collins & and former CEO of Qatar- Wataniya Restaurants Inc. current marketing efforts and identify new Smith PC based TALENT He was a 2002 Crain’s 40 under marketing opportunities for customer outreach. Ray Littleton has been 40 honoree. elected as a shareholder in Vidya Moorthy, former vice the firm of Foster Swift Collins & Smith, PC. A A better way to find president, client services, for graduate of Yale University and Marquette the best candidates Bassett & Bassett, was named to AUTOMOTIVE University Law School, Littleton is a litigation lead its Asia Pacific operations attorney in the Farmington Hills office where he office in Pune, India. specializes in three areas: insurance litigation William R. Patterson, and claim disputes, employment and Senior Vice President, management disputes and business and Walker-Miller names Treasurer, contract disputes. He is a member of both the Walker COO,Batie CFO State Bar of Michigan, serving on the Ziebart International Detroit-based Walker-Miller Representative Assembly and the State Bar of Corporation Energy Services announced the Wisconsin. In addition to his current hiring of Greg Walker as COO and responsibility as Treasurer and overall Cornell Batie as COO. management of accounting, purchasing, Walker has had decades of treasury, warehouse, and logistics functions, leadership experience in For- Bill will also be responsible for Human Crain’s has moved its complete list CrainsDetroit.com/JobConnect tune 500 companies, including Resources, Licensing and Trademarks. Prior to of appointments and promotions to Wal-Mart, Home Depot and Sears. his promotion, Mr. Patterson served as Vice www.crainsdetroit.com/peopleonth Batie formerly was executive President and Treasurer of Ziebart International vice president, CFO and COO Corporation. Mr. Patterson joined Ziebart in emove. Guaranteed placement in for the Detroit Jazz Festival. He 2005 as Director of Finance from Prestolite Wire print and online can be purchased was a finalist for the 2012 Crain’s Corporation, most recently as Corporate at this website. CFO of the Year award. Ⅲ Controller. 20160208-NEWS--0025-NAT-CCI-CD_-- 2/5/2016 4:45 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 25 Detroit Lions president details his game plan

By Bill Shea kept by the team — and that money the team’s salary cap guru — a criti- lated meetings with the Ford family [email protected] Rod Wood is what can drive improvement on cal job that affects all football per- for a year before being hired and Rookie Detroit Lions President Age: 55 the football field, Wood said. sonnel decisions. advised the Fords on whether Rod Wood doesn’t have experience Job: President of the Detroit Lions Player salaries are governed by Harriss spent 10 seasons in the Lewand and Mayhew should be in pro football but is using his years since November the NFL’s salary cap (likely $155 mil- New York Giants football operations fired. He did not say what his rec- in the corporate world to reshape lion per team in 2016), but spending department. Accorsi was general ommendation was. Past jobs: Hired in 2007 as president the long-struggling team. on coaches, staff, facilities, pro- manager of the Giants and hired Now that he’s president, he said, and CEO of Ford Estates LLC, which Wood spoke with Crain’s last grams, etc., has no limit. Harriss in 2006. his strategy is to rebuild the Lions’ cul- provides financial and lifestyle advice week about his retooling of the The more revenue the Lions can Wood said he’ll be adding more ture by making the best hires and en- to the Ford family. Starting in 1999, he business side of the Lions’ front of- generate locally, the more money names to his Rolodex in coming suring the best person is in each job. was executive vice president of wealth fice and the decision to nab Bob they spend on enhancements to the days and months. “The main thing I’m trying to do management for Wilmington Trust Quinn from the New England Patriots stadium and practice facility, and After the Super Bowl, Wood will is build a great organizational cul- Co. and held various executive to oversee the football operation. on coaches and staff, Wood said. spend two full days meeting with all ture, with the right people in right positions at Comerica Bank. Wood was the Ford family’s finan- “All those things fall outside the business heads at the NFL’s New York spots,” he said. cial adviser as head of Ford Estates, Education: Graduated from salary cap,” he said. office to get to know them, he said. He also believes he brings addi- and his hiring by Lions owner Goodrich High School; earned a More money makes it easier to “I really want to get to know tional value to the role because of Martha Firestone Ford caught fans bachelor’s degree from the University win, he said, and winning makes it these people and have a relation- his deep connection to the Ford and media by surprise. He ignored of Michigan and a graduate degree easier to generate more money. ship with them,” he said. family, especially Martha Ford and the initial round of criticism and en- from the ABA Graduate Commercial The Lions’ $298 million in revenue, While he’s tapped some non- daughter Sheila Ford Hamp, who is gaged in a front office shakeup that Lending School. as estimated by Forbes.com for 2014, football people for advice, those said to have her mother’s ear re- began when Ford fired his predeces- Family: Wife, Susan; daughter, ranked 27th in the 32-team NFL. who work inside pro football offer garding the Lions. sor, Tom Lewand, and General Man- Allison; son, Taylor Football changes the best counsel, Wood said. “One advantage of me being ager Martin Mayhew in November. “People inside the NFL have been here, I do know ownership’s wishes Perhaps Wood’s most critical busi- Kozole were split. Wood was part of the search team way more valuable to me,” he said. and communicate back to them Ⅲ ness move came Feb. 1 when he pro- “That wasn’t the most optimal that hired Quinn away from the Pa- (Ford) family man what’s going on,” Wood said. moted the team’s vice president of structure,” Wood said. triots, where he was a key manage- Bill Shea: (313) 446-1626 events, Kelly Kozole, to senior vice Kozole is akin to a chief revenue ment figure in that club’s four Super Wood said he attended Lions-re- Twitter: @Bill_Shea19 president of business development. officer in the corporate world, he Bowl victories since 2001. She will oversee events, market- said. She functionally replaces “We’re clearly partners and working, corporate partnerships, ticket- Parkinson, but retains oversight of ing together,” Wood said. “He’s a ing, retail merchandising, corporate non-football events at Ford Field, phenomenal addition to our organ- communications, digital media, an area of revenue growth. ization. He has a great approach, a MARKET PLACE broadcasting, community relations “I think she’s the right person,” he lot of energy, and he’s smart.” and the football education division, said. “She’s got the revenue side.” Quinn and Wood are parallel on HEALTH BENEFITS BUSINESS OPPORTUNITIES the team said in a statement. Kozole will be building out her or- the organizational chart and both LAUNDROMAT - DOWNTOWN DETROIT - $225K Kozole, 44, has been with the ganizational structure, and searches report directly to Ford, the same Laurel A. Sills, Psy.D., PLLC, Licensed Clinical TIME SHARE CONDO - NEW YORK, NY - $10K Lions since 2002. She fills the open- are underway for more senior hires arrangement under which Lewand Psychologist LAND CONTRACT & FINANCE OPTIONS AVAIL. Discreet Therapy for Issues of Intimacy CALL LANAY FOR DETAILS ~ 313-964-6884 ing made when Wood fired Elizabeth in marketing and sales, Wood added. and Mayhew operated. Individuals & Couples Therapy Parkinson, who had been the team’s Some business units don’t report Wood and the Lions hired long- Dr. Laurel A. Sills 31313 Northwestern Highway μ Suite 120 senior vice president of marketing directly to Kozole. Team CFO Allison time NFL consultant Ernie Accorsi for Farmington Hills, MI 48334 (248) 788-4230 μ www.DrLSills.com JOB and partnerships since 2012. She Maki reports to Wood, as do the their general manager search. He and Jennifer Cadicamo, the team’s heads of media relations, informa- continues to rely on Accorsi’s counsel. vice president of marketing/partner- tion technology, human resources “We’ve talked about a number of INVESTMENT OPPORTUNITIES FRONT ship activation who reported to and facilities management. things, about people we have hired Parkinson, were terminated Jan. 26 Kozole’s job is to boost local rev- and didn’t hire,” Wood said. INVESTMENT OPPORTUNITY as part of Wood’s reorganization. enue, a critical practice for all 32 Na- For example, Accorsi advised Current partners seeking an owner/ FINANCE operator to buy into and run an upscale Wood said he wanted to combine tional Football League clubs. Wood on Matt Harriss, whom the coffee shop in S.W. Oakland Co. Great all sales and marketing efforts While the NFL apportions its $12 Lions hired on Jan. 29 as their vice staff in place now with positive cash flow. under one person. Previously, sev- billion in annual revenue among all president of football administration. Serious inquiries only: eral of the business units now under the teams, certain local spending is That’s a long title that means he’ll be Email Inquiries to: [email protected] Vice President of Finance Reference box #2001 in subject line Directs the organization’s financial planning and accounting practices as well as its relationship MISCELLANEOUS with leading institutions and the financial community. Preparation of current financial ball’s Detroit Tigers and Cleveland Indi- come with courtside seats. reports as well as summaries and forecasts for WOOD ans NEED WAREHOUSING? future business growth and general economic in recent years converted stadi- Gensler has a prior relationship outlook. Responsible for the development and FROM PAGE 1 um suites into club or gathering with the Lions: It co-designed the Plymouth & Livonia Area administration of risk management and loss prevention program in order to maintain ous look at later this year. spaces. Lions’ $35.5 million, 115,000-square- • Cross-Dock Services • Trucking Services maximum protection of the organization’s assets “Now that it’s been open for more The Lions will seek to create the foot headquarters and training facili- • Diverse Supplier • Reasonable Rates at the most economical rates. May investigate and report on accident involving company than a dozen years, we need to be re- right mix of suites, club seats and pre- ty in Allen Park that opened in 2002. Call 810-701-0833 products, with resulting coordinating between insurance companies and attorneys. Reviews freshing the stadium,” he said. mium gathering spaces, Wood said. A September 2014 analysis by and analyzes data, and devises risk minimization Any changes likely would begin in “That’s being done at a lot of other Bloomberg showed that the Lions’ programs. Qualified candidates will have a Master’s degree with CPA or CMA designation 2017, Wood said. stadiums,” he said. top single-game suite rental price of REAL preferred, ten years of experience in a financial While details remain fluid, Wood Sports industry insiders agree. $10,300 was the least-expensive pre- accounting role with eight years in a public accounting firm and/or non-profit organization. At did say the Lions will take a hard look “The appetite for premium is mium cost in the NFL. least five years at the supervisory/managerial ESTATE level with direct experience in Financial and Risk at reducing the number of suites in evolving. What used to be 14-16 Detroit’s entry price of $9,300 for a Management. favor of larger, open club spaces, ac- person suites are changing,” said 20-person single-game suite was OFFICE SPACE Send Resumes to: cess to which would range in price. Amanda Verhoff, executive director among the lowest, but well ahead of [email protected] That would follow a sports industry of the Cincinnati-based Association the Oakland Raiders’ $4,610. BRIGHTON - GRAND RIVER FRONTAGE MISCELLANEOUS trend of building fewer suites or con- of Luxury Suite Directors. “Clients want The Lions are still determining NEW OFFICE SPACE - FOR LEASE verting traditional suites into other to entertain in smaller doses, so some pricing for 2016. 2,000 - 32,000 S.F. Suites types of premium spaces. new products are hitting the “We’re evaluating our ticket strate- Chestnut Development, LLC SURVEY “The suite market has changed market.” gy right now,” Wood said. While 6253 Grand River, Brighton MI STEVE GRONOW ~ 810-599-5147 over time as companies want to en- Examples include 4-6 seat loge specifics aren’t yet in place, he said www.chestnutrealestate.com/chestnut-landing ANALYZE tertain in different ways,” Wood said. boxes (something the new Detroit Red the prices will remain in the NFL’s The Lions already have converted Wings arena will include), and “living lower quartile for ticket costs. Call Us For Personalized MATCH some Ford Field spaces into clubs, room” spaces that have cushioned Season ticket holders were in- Service: (313) 446-6068 such as the MGM Grand Detroit Tunnel club or premium seats facing TVs. formed last week via email that FAX: (313) 446-0347 Club that is a bar through which play- Another trend are bunker suites prices would increase slightly for the E-MAIL: cdbclassified @crain.com INTERNET: ers enter and exit their locker room. that don’t have views of the third consecutive year. They will www.crainsdetroit.com/section/classifieds Other NFL teams have created court/game, she said. The Palace of range from $399 to $2,238. Ⅲ See similar spaces, such as the Dallas Cow- Auburn Hills has such suites, which Bill Shea: (313) 446-1626 Crainsdetroit.com/Section/Classifieds boys and Cleveland Browns, and base- are for high-end entertaining that Twitter: @Bill_Shea19 for more classified advertisements CrainsDetroit.com/JobConnect | 20160208-NEWS--0026-NAT-CCI-CD_-- 2/5/2016 4:50 PM Page 1

26 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016

happening downtown recently,” said investment gains over the past three FLINT Ron Sims, owner of The Torch Bar and to five years will be rolled back by FROM PAGE 1 Grill, a downtown fixture for 70 years. the crisis. because their water tested positive “Then we started having a slowdown “This water thing is horrendous. for lead or because of the city’s poor in November and December.” People in Flint need jobs, but why image right now,” he said. Sims said sales were down 5 per- would any business want to invest The cultural impact cent to 6 percent in January, al- in Flint now with this water crisis?” though that month is typically slow- Thinking positive The Charles Stewart Mott Founda- er, he said. “Still, people are every tion, headquartered in a stately day, a hundred times a day, asking Franklin Pleasant and Erin high-rise in the heart of downtown us about the water.” Caudell, owners of The Local Grocer, Flint, is doing what it can to keep The Torch, like several downtown are taking a glass-half-full view. the city’s image from further deteri- Flint restaurants, had a reverse osmo- “Flint is our home,” Pleasant said oration. The $2.7 billion foundation sis filter installed in the fall and also in an email. “Throughout our lives granted $4.9 million to the Flint Cul- offers patrons bottled water. Reverse and careers, we have chosen differ- tural Center last August. osmosis allows water pressure to ent ways to give back to our com- Ridgway White, the foundation’s push tap water through a membrane, munity. Nourishing Flint with president, said the organization “does- which filters out contaminants. healthy food and contributing to a n’t want to let the water crisis reverse Sims bought The Torch in 2006 healthier economy is something we the progress of the many revitalization and did well even during the reces- are both passionate about.” efforts that have been taking root.” sion as downtown Flint saw some After running a business at the John Henry, executive director of revitalization. Now he is not sure downtown Flint Farmers’ Market, the the Flint Institute of Arts, said a third what will happen. couple in December opened a gro- of the institute’s funds come from “Everybody is worried, but the cery store just outside of downtown. Mott, but the rest flows in from flip side is we will get money for im- It sells locally produced, all-natural memberships, sales and admis- proved infrastructure like new products. They also farm and serve sions, tuition from its community pipes,” he said. ready-to-eat food at the store. arts school, and endowments. Robert Kittel, who owns the Before opening the store, the “A situation like this causes a lot of downtown building that houses The couple had a water filtration system anxiety in the people in the city and Mad Hatter hat and sundries store, installed for the whole building. outside,” he said. “We are constantly said it is hard to tell if his property Tim Goodrich and Cinthia Mon- testing our water as we want to pro- has lost value. tague, co-owners of Sutorial, a shoe- tect our visitors, not just the art.” “Not much has changed hands making operation downtown, opened He said the water plight has had a downtown to know,” he said. “I think their business in Flint three years ago. slight impact on operations, partic- the city’s real estate as a whole might “We certainly realize the good ularly income from people who rent lose value, but not the downtown. and the bad here,” Goodrich said. the facility for events. People are still upbeat on downtown.” He said water issues are not im- “The media has assassinated this Kathy Jackson, owner of Healthy pacting their business. They are not community. It’s like we’re Cher- Dollar in downtown Flint and a for- tied to the local economy, but sell nobyl,” Henry said. “Water is a na- mer reporter for Crain’s Detroit their boots primarily online. “But I’m tional (problem). Why did this small Business and its sibling publication surprised at the extent of how far- town get so much attention from it?” Automotive News, said her business reaching the water situation is,” John Bracey, executive director of has not been affected by the water he said. the Michigan Council for Arts and Cul- crisis. But she fears her 8,000- Jessica Buchanan, 27, a barista tural Affairs in Lansing, recently square-foot, three-story retail build- and crepe maker at Flint Crepe Co., reached out to 13 Flint cultural enti- ing, where she also lives, could be pointed to Sutorial as one of “the We Are Your ties to see how they are coping. losing its investment value. many wonderful things going on in Event Branding “The larger organizations are She bought the property in 2008 the city.”She added that she grew up Partner having more issues than the smaller when it was in foreclosure and has in the area, left for a while and came ones,” he said. invested considerably in building back to embrace the city’s arts and Downtown on upswing improvements. culture scene. “Things are popping “The businesspeople down here up here,” she added. “Flint will come Amid the image disaster, down- are taking a chance and betting on back.” town Flint business owners are the resurgence of this place,” Jack- The crepe restaurant is one of four keeping their fingers crossed that son said. “I’ve invested in Flint’s fu- downtown businesses in which Robb downtown’s momentum over the ture. People have purchased prop- Klaty is a managing partner. A Flint past five years will continue. erty that was abandoned, but with native, he started the crepe restau- “We were having year-over-year this water fiasco, you feel like Flint’s rant in 2011 and has since opened in growth with (the infrastructure im- image is falling further.” the same downtown building as provements and loft developments) Jackson worries that real estate Merge, a bar with Asian-inspired fare; Table & Tap, serving Michigan beers and barbecue; and Tenacity Brewing, a microbrewery and restaurant. He lives above the crepe shop with his wife and six children. “I want to be part of bringing Flint’s core back,” Klaty said. Klaty was ahead of the curve because in 2011, three years before the water crisis, he bought a reverse osmosis system with demineraliza- tion capabilities for his building of businesses. He acquired a carbon Event and Exhibit Signage Solutions: Banners, Flags, filtration system for the brewery. Vehicle Wraps, Wayfinding and Transportation Directionals. Meanwhile, Schwartz said, the We do more than provide graphic branding solutions that attract and CEOs of the cultural institutions inspire. Our mission is to evoke a unique emotional experience and leave have been meeting monthly and a lasting impression on our partners and their clients. As a national talking about the disturbing effects leader in large format graphics, we set the benchmark for quality. From of the water crisis. our passionate team of creative designers, expert printers, and “It has been a slow crash since professional installers to our world-class facility and state-of-the-art April 2014,” she said. She is hopeful technologies—we make you look remarkably good. Flint will continue to support its cultural offerings. “Take the Flint Institute of Music. Kids come from all over to attend,” she said. “I don’t think parents will stop iMBranded.com / (866) 717-4467 sending their kids there just because they have to drink bottled water.” Ⅲ 20160208-NEWS--0026,0027-NAT-CCI-CD_-- 2/5/2016 5:10 PM Page 2

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 27 Lawsuits flow over Flint water crisis

By Chad Halcom SBA economic disaster lated cases assigned to Genesee Cir- [email protected] cuit Judge Archie Hayman. Wherever plenty of outrage and declaration sought In other suits, Southfield-based blame are going around, plenty of lit- Gov. Rick Snyder is seeking an Fieger, Fieger, Kenney & Harrington PC igation is likely to follow — and so far economic disaster declaration from accuses McLaren Regional Medical the Flint water crisis is no exception. the U.S. Small Business Center of gross negligence and At least nine lawsuits have land- Administration for Flint and Genesee premises liability on behalf of two ed over the past three months in County as the city struggles with Otisville residents and two Flint res- Genesee County Circuit Court, U.S. Dis- lead-tainted water. idents who allegedly contracted the trict Court in Detroit and the Michi- Legionella virus that causes Legion- Snyder’s office says the request was gan Court of Claims over lead con- naires’ disease within days of being made Thursday and would pave the tamination, a surge in Legionnaires’ admitted to McLaren’s hospital in way for financial assistance for city disease or other public health issues Flint — including Debra Kidd, 58, residents and business owners connected to city water drawn from who later died at Genesys Regional affected by the contaminated water the Flint River over 18 months. Medical Center last August. from aging water pipes. Most are brought as potential class- “A hospital won’t make money if it action suits on behalf of all city resi- If approved, low-interest loans would discloses a Legionnaires’ outbreak dents and businesses that might be af- be made available for small from contaminated water, and a fected by corrosion or contamination businesses and private, nonprofit governor will stop hearing whispers of the city’s aging water infrastructure. organizations that suffered that he’s being considered for higher And while experts think governmental substantial economic injury as a office if he reveals a water and Le- immunity and court precedents make direct result of the contaminated gionnaires’ crisis. We know what suing Flint and the state a longshot, public water supply. happened here,” Geoffrey Fieger some are taking a novel approach by The Associated Press said in a statement. instead targeting companies that con- Laurie Prochazka, vice president tract with Flint or operate in the city, or City of Flint’s water treatment plant. of marketing and communication specific government employees. LAN has provided those services in a at McLaren-Flint, said the hospital Eight residents allege professional responsible and appropriate manner received that lawsuit only last negligence in a Genesee County law- in accordance with industry stan- Thursday and does not comment suit against Houston-based Lockwood, dards,” Pete Wentz, executive director on pending litigation. Andrews & Newnam Inc., an engineer- of Chicago-based Apco Worldwide E. Powell Miller, president of the ing services and program-manage- and a spokesman for Lockwood An- Miller Law Firm PC in Rochester who ment company hired to oversee a refit drews, said in a statement on the specializes in class actions, securi- of the city’s nearly century-old Water company’s behalf. “We believe that ties litigation and high-stakes com- Treatment Plant when Flint separated this lawsuit has no merit and will vig- mercial litigation, said getting a itself from the Detroit Water and Sew- orously defend our position in court.” judge to sign off on a class action erage Department in April 2014. Mark McAlpine, owner of McAlpine will be difficult, because of govern- The company, which has Michigan PC in Auburn Hills and attorney for mental immunity and court prece- offices in Flint and Lansing, has made the residents in the lawsuit, said Lock- dents in personal injury cases. more than $3.5 million on various city wood Andrews was advised in No- “Here especially you’re likely to contract awards since preparing an vember 2014 of a need to correct high have cases where some (residents) analysis in 2011 for then-Mayor trihalomethane levels in the Flint had no real injury at all, and some Dayne Walling about using the Flint water supply, possibly suggesting the people have serious injury, and some River as a water source. water was aggressively chlorinated to had only minor injuries or different The lawsuit alleges the company eliminate other chemicals it knew kinds of injuries — and so by person- knew that river water needed anti- were present. al injury law their claims aren’t simi- corrosion treatment chemicals, did- “The engineers are by far the lar enough to go forward together as n’t require them and didn’t evaluate most knowledgeable people in- a class (in court).” he said. water coming out of the tap before volved … and that’s why we think “My heart goes out, but this is a completing the switch to river water. LAN has such pronounced liability case that has spurred several inves- But the company defended its serv- in this case,” he said. “In municipal tigations and has the attention of ices to Flint in a statement last week. contracts like these, everyone else the president of the United States. “(The company) provided a limit- relies on them, even the regulatory So hopefully the parties come up UPCOMING GAMES ed scope of engineering services to structure that’s been put in place.” with a quick solution or some legis- address specific components of the The case is one of at least four relation comes to provide help. Be- cause the law is very tough when you try to sue the government.” SUN, FEB. 21 VS. Neither the McAlpine suit nor the 3:30 PM Fieger suit targets the state, the city or ONE FIRM Gov. Rick Snyder, although the Fieger case does name current and former BETTER TOGETHER employees Stephen Busch, Liane Shekter-Smith and Brad Wurfel of the Michigan Department of Environmen- SAT, MAR. 19 VS. GHD CPAs & Advisors is tal Quality as defendants. 7 PM now Cohen & Company Two other proposed class-action lawsuits at U.S. District Court both Achieving success requires a team name Snyder, former Flint Emer- that stands out. As part of Cohen gency Manager Darnell Earley, & Company, we are able to provide Walling and the city, among other de- Ameri- our clients with greater depth and fendants, while a third, by the can Civil Liberties Union of Michigan and experience — without sacriﬁcing the Natural Resources Defense Council personal service. along with the Concerned Pastors for Social Action and parent/resident Melissa Mays, names the members of the Flint Receivership Transition Ad- visory Board and State Treasurer Nick Khouri. Mays is also a plaintiff in law- Pistons.com/premium GH•D suits in Genesee County and the CPAS & ADVISORS Court of Claims. Ⅲ (248) 377-8477 cohencpa.com | 586.772.8100 Chad Halcom: (313) 446-6796 Twitter: @chadhalcom 20160208-NEWS--0028-NAT-CCI-CD_-- 2/5/2016 4:51 PM Page 1

28 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 “A lot of people sidiary of France-based Dassault our taxation and economic struc- ROBOTS Systemes SE. “Our system allows ture, Ford said, automation will lead FIRE FROM PAGE 3 associate manufacturers to know what’s hap- to mass unemployment and unrav- FROM PAGE 3 software gets better, me and my automation with pening in real time, and the system el the purchasing power automa- opments during the selection or ne- colleagues, the thundering herd can make optimized decisions. So tion is designed to create. gotiation process,” he said. of Merrill Lynch, maybe we low-wage jobs often, decision-making happens at “This isn’t only about unem- In the interim, Reclaim Detroit wouldn’t be as necessary.” and factories ... the local level from the gut, without ployment, it’s about economics,” has been temporarily operating out Robo-advisers use the same taking in the big picture. That’s Ford said. “We have to have peo- of space in a building at 1314 Hold- software as their human counter- but the big where we come in.” ple who can buy the products en St., owned by the Henry Ford parts and relay portfolio manage- disruption is not Dassault works in 12 industries, we’re producing, and without dis- Health System, that Reclaim Detroit ment advice but are not involved going to be in mostly manufacturing, but Michel cretionary spending, that’s not had been using for bulk storage, in more complex scenarios such said the company could expand in going to happen and will lead to Varterian said. as tax or estate planning. manufacturing, the future to other industries, such economic stagnation.” But that doesn’t make the ur- Robo-advisers could advise it’s going to be in as the financial sector, that are in- Ford’s theory to alleviate the neg- gency for new space any less, he clients on holdings totaling $2.2 terested in identifying patterns and ative effects of automation is to cre- said. Just part of that is because the trillion by 2020, up from $16 bil- the white-collar improving overall efficiency. ate a minimum income, guaranteed Holden Street building is about lion in 2014, according to a June sector.” A remade economy by the government through taxes, to one-third the size of the space it had 2015 report by Southfield-based allow citizens to maintain purchas- on Hamilton Avenue. business management consult- Martin Ford, author of the book Rise The use of robo-advisers is only a ing power and, hopefully, spur in- “This entire situation with the fire ant A.T. Kearney Inc. of the Robots: Technology and the microcosm of the potential scope of novation. has created a situation where we re- But for Sowerby, the threat of Threat of a Jobless Future automation, Ma said, which is cre- “There’s a utopian outcome alize we have to expedite this,” he automating senior investing ana- ating concerns of how economies possible where no one has to do a said. “Highland Park is a wipe-out lysts seems trivial. will handle the potential displace- dangerous job and have more over there.” “I certainly don’t dismiss it. I From line to foreman ment of millions of jobs. leisure time, but we need to make Varterian said Reclaim Detroit think robo-advising is, and will “A fear definitely exists out a conscious choice,” Ford said. had $472,000 in assets — between be, embraced by the younger Robots are nothing new to the there,” Ma said. “I don’t think “Without a guaranteed income, reclaimed wood, mill shop equip- generations, who are more likely factory floor — General Motors Co. there’s a clear answer whether companies and the wealthy are ment, finished goods, field equip- to trust the algorithms that used the first industrial robot in we’re going to adapt (jobs) fast going to own the machines and ment and vehicles — and insurance brought us Facebook, Twitter, 1962 — but now even decision- enough to keep up.” undermine the mechanism that will reimburse, at most, $100,000 of etc., than a financial adviser,” making is automated. Martin Ford, a University of Michi- gets purchasing power into the that inventory value. said Sowerby, the portfolio man- At Dassault Systemes Corp. in Troy, gan graduate and author of the hands of consumers.” While he is grateful for even that ager and chief market analyst for software engineers have created the book Rise of the Robots: Technolo- Ma agrees that fundamental reimbursement, there are still head- Loomis Sayles & Co. LP in Bloom- digital factory, allowing manufac- gy and the Threat of a Jobless Fu- changes to our system must occur, winds in the future. field Hills. turers to monitor in real time their ture, believes automation will such as increased taxing of compa- “The rest, that’s the challenge. “But we gain our value by entire operation from product as- bring with it radical change and nies like Google Inc., Apple Inc., and We are going to have to go out to thinking forward on investing sembly to logistics. immense job losses. others that control as much as 75 our community and seek support during troubling times, not by The Dassault system lets manu- “A lot of people associate au- percent of artificial intelligence in- with foundations and individu- how well the market performed facturers design and test parts in a tomation with low-wage jobs and tellectual property, but that au- als,” Varterian said. yesterday,” he said. “I’m not sure simulated production environ- factories ... but the big disruption is tomation is necessary. To help, a Crowdrise fundrais- a robo-adviser could have talked ment, then monitors all resources not going to be in manufacturing, While automation could, in theo- ing campaign launched last week a client off the proverbial ledge from staff, to production, to cus- it’s going to be in the white-collar ry, replace millions of jobs, it’s need- had raised just over $7,800 as of when the market was in peril in tomer delivery. sector,” Ford said. “We’re going to ed to push gross domestic product Friday morning. 2009. But, hey, if at minimum “We’re not to artificial intelli- automate jobs even though they re- growth, said Ma. It’s not just Reclaim Detroit that robo-advisers get these young gence yet, but we’re getting closer,” quire a college degree. It’s an in- “Historically, GDP growth has was affected. people in the (investing) pool, said Patrick Michel, vice president escapable global phenomenon.” been driven by population, but the Plymouth-based Helm Inc., which then applause.” of user experience at the U.S. sub- Without a radical rethinking of labor force is shrinking,” Ma said. owned the 565,000-square-foot “Our global GDP growth will be building until 2012 when it sold it lower, so the only way to push for $325,000 (58 cents per square growth is with productivity or au- foot) to an entity registered to Jef- tomation.” frey Seskin, also lost its branded The U.S. labor force — defined as merchandise inventory. those who either have a job or are But Helm had business continu- actively seeking one — dropped to ity and disaster recovery plans in 62.6 percent, a 38-year low, place that have helped in the days throughout much of 2015 from since the fire, said Erica Konner, the more than 66 percent in 2007. Labor company’s director of marketing force dropout remains an issue in and communications. Andra Rush the U.S., especially as the baby “We are saddened by what hap- boomer generation continues to re- pened, but business was running and tire — at a rate estimated at more and it was great that we had these than 10,000 per day. plans to rely on,” she said, adding Rush Group LLC Fewer workers mean a weaker that the company also has locations economy, but growth can be in Livonia, Atlanta and California. buoyed by increases in productivity. “We are still working with our Crain’s 2015 Productivity, often cyclical, rose clients to determine what’s next.” Congratulate sharply coming out of the Great Re- Helm leased 155,000 square feet Top Newsmakers of the Year cession at 7.9 percent in the second of the 70-year-old building, she quarter of 2009, but has fallen re- said, and employed five people cently by 3 percent in the last quar- there. The company has about 150 Father-and-Son Dynamic Duo ter of 2015. employees total. Mike Ilitch Christopher Ilitch It’s no surprise that Japan and Some of Helm’s clients include and Germany, countries with the oldest Ford Motor Co., Dodge and the state average age, have embraced rapid of Michigan. integration of automation, Ma said. Attempts to reach Seskin last The average U.S. work week week were unsuccessful. was 34.4 hours in 2015, compared There were three other tenants in to just 26.37 hours in Germany, the building, including Recycling according to data by the Organisa- Revolution LLC, a plastics recycling tion for Economic Co-operation and company that Varterian said occu- Development. pied a majority of the warehouse. “If we can maintain the growth The cause of the fire has not yet and create jobs fast enough, it’s been determined. Varterian said in going to be a good thing,” Ma said. an email he was told by a fire in- “We’re going to be left with more spector it may have started in the free time, and people won’t be back of the building in the recycling doing as much physical labor.” Ⅲ operation space. Ⅲ © 2016 Rush Group LLC Family of Companies. All Rights Reserved. Dustin Walsh: (313) 446-6042 Kirk Pinho: (313) 446-0412 Twitter: @dustinpwalsh Twitter: @kirkpinhoCDB 20160208-NEWS--0029-NAT-CCI-CD_-- 2/5/2016 5:19 PM Page 1

CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 29

“Nobody reading the bill would Miller said. would be forced to pass on any in- CRAIN’S INSURANCE have said, ‘Oh, wow, this is going to Pete Kuhnmuench, executive di- creases in the amount they pay into DETROIT BUSINESS FROM PAGE 3 do something with the taxes. We rector of the Insurance Institute of the assigned claims program to pol- www.crainsdetroit.com should have the tax people look at Michigan, which represents proper- icyholders if the credit were Editor-in-Chief Keith E. Crain policyholders as higher premiums. it,’ ” said David Zin, chief econo- ty and casualty insurers in the state, eliminated. Group Publisher Mary Kramer, (313) 446-0399 or [email protected] Yet redemption of the tax credit mist with the Senate Fiscal Agency, told Crain’s the organization About half of the state’s assigned Editor Jennette Smith, (313) 446-1622 or will have budget implications. The which analyzes the fiscal impact of learned the credit existed late in the claims come from Wayne County, [email protected] Director, Digital Strategy, Audience Development new claims caught the state by sur- proposed legislation. “I mean, it’s a legislative process, but it wasn’t dis- with 40 percent from Detroit, Miller Nancy Hanus, (313) 446-1621 or prise: It wasn’t until December that bill that just moved something from cussed because “that wasn’t the said. Detroit has some of the na- [email protected] Treasury Department Managing Editor Michael Lee, (313) 446-1630 or officials linked one office to another. focus of the debate.” tion’s highest auto insurance rates, [email protected] several months of lower-than-ex- “The fact that this hasn’t become Most insurance companies that and driving without coverage is Managing Editor/Custom and Special Projects pected state insurance tax collec- an issue until this year and we made write auto policies in the state — common. Daniel Duggan, (313) 446-0414 or [email protected] tions with the new incentive. the change three years ago suggests but especially those headquartered Costs of uninsured crashes also Assistant Managing Editor Kristin Bull, The credits were expected to cost at the time (insurers) may not have in Michigan — can redeem, dollar- have been rising. Assessments to in- (313) 446-1608 or [email protected] News Editor Beth Reeber Valone, (313) 446-5875 the state’s general fund $60 million known it was going to be an issue, for-dollar, the amount they pay to surers have jumped from $141.4 or [email protected] in the 2015 fiscal year, which ended either.” the MAIPF under a provision in the million in 2008 to $238.7 million in Senior Editor Gary Piatek, (313) 446-0357 Sept. 30, and $80 million annually state’s tax code. That credit, in turn, 2015, data show. or [email protected] ‘Big tax reduction’ Research and Data EditorSonya Hill,(313) 446-0402 going forward, according to treas- reduces the companies’ state insur- A tax credit draws revenue from or [email protected] ury estimates. Michigan’s assigned claims pro- ance tax liability. the state’s general fund — thus, Editorial Support (313) 446-0419; YahNica Craw- ford, (313) 446-0329 News of the insurance credit sur- gram processes between 3,000 and Zin said insurance tax collections from all taxpayers — rather than Newsroom (313) 446-0329, FAX (313) 446-1687 , faced last month during a state rev- 4,000 claims each year, said Terri are roughly 20 percent of the state’s only from motorists who purchase TIP LINE (313) 446-6766 enue estimating conference. That Miller, executive director of MAIPF. total tax revenue. insurance policies, Miller said. REPORTERS drop in state revenue will be one It covers medical care for people “It’s a big tax reduction,” he said Kuhnmuench calculated the cost Jay Greene, senior reporter Covers health care, in- factor in the 2017 fiscal-year budget injured in auto accidents who don’t of the credit. per vehicle of the credit to be rough- surance, energy, utilities and the environment. (313) 446-0325 or [email protected] Gov. Rick Snyder presents Wednes- have insurance. That can include Kuhnmuench met last week with ly $31.73, based on $238 million in Chad Halcom Covers litigation, the defense indus- day. pedestrians hit by an uninsured or House Speaker Kevin Cotter, who payments from insurers last year di- try and education. (313) 446-6796 or [email protected] In all, 93 auto insurance compa- hit-and-run vehicle when the wants to learn the effect of the credit vided by an estimated 7.5 million Tom Henderson Covers banking, finance, tech- nies claimed the new credit for the pedestrian also doesn’t have his or to date and what effect it could have auto insurance policies in nology and biotechnology. (313) 446-0337 or [email protected] 2014 tax year, which affected the her own coverage, or children riding if eliminated, Cotter spokesman Michigan. Kirk Pinho Covers real estate, Oakland and Ma- 2015 fiscal year’s revenue, state in an uninsured vehicle who are in- Gideon D’Assandro said. “If we eliminate that credit, auto- comb counties. (313) 446-0412 or [email protected] Treasury Department spokesman volved in a crash. Senate Minority Leader Jim matically our costs go up that much Bill Shea, enterprise editor Covers media, Terry Stanton said. He would not Seven private insurers handle as- Ananich, a Flint Democrat, plans to because we can’t write it off any- advertising and marketing, the business of sports, and transportation. disclose the names of the compa- signed claims as they would for any propose a bill that would end the more,” he said. “Is that the right (313) 446-1626 or [email protected] nies or the amount of individual other policyholder, with one no- credit and dedicate the $80 million public policy that the cost of this so- Robert Snell, reporter Covers city of Detroit and regional politics. (313) 446-1654 or credits, citing privacy laws. table difference — the recipient of in revenue to fix old pipes that have cial benefit should only be imposed [email protected] The 2012 law that triggered the assigned claims benefits does not leached lead into the city’s upon the folks that actually obey Lindsay VanHulle, Lansing reporter. (517) 657- 2204 or [email protected] credit moved management of the pay an auto insurance premium. drinking water. the law and buy the car insurance Dustin Walsh, senior reporter Covers the busi- Ⅲ assigned claims program from the The cost of that care, then, is Rising costs like they’re supposed to?” ness of law, auto suppliers, manufacturing and Michigan Department of State Lindsay VanHulle: (517) 657-2204 steel. (313) 446-6042 or [email protected] , where shared among all insurance compa- Sherri Welch, senior reporter Covers nonprofits, it had been housed since its cre- nies that write auto policies in the Insurers, however, say they Twitter: @LindsayVanHulle services, retail and hospitality. (313) ation in 1973, to the Michigan Auto- state through an assessment MAIPF 446-1694 or [email protected] mobile Insurance Placement Facili- charges. More than $238 million ADVERTISING ty, or MAIPF, the state’s residual was charged to insurers last year, Sales Inquiries (313) 446-6032; FAX (313) 393-0997 insurance market that assigns unin- according to the Insurance Institute Senior Account Executive Matthew J. Langan Focus: Hope CEO plans to retire Advertising Sales Catherine Grace, Joe Miller, sured injury claims to participating of Michigan. Sarah Stachowicz carriers. For years, the insurance industry By Sherri Welch Since then, the program has relied on Classified Sales Manager Angela Schutte, (313) [email protected] 446-6051 The facility also serves as Michi- had pushed for legislation that piecing together funding from the Classified Sales Lynn Calcaterra, (313) 446-6086 gan’s insurer of last resort and writes would move the assigned claims Focus: Hope CEO William Jones Jr. state, corporations and donors. Events Manager Kacey Anderson policies for drivers who can’t buy program into an organization with plans to retire at the end of the year. The nonprofit reported positive fi- Creative Services Director Pierrette Templeton one on the open market because of more expertise in vetting claims. At The Detroit-based nonprofit’s nancial results in recent years as it Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black poor driving records. the time, the Department of State board of directors has formed an closed out a long-term, $100 million Special Projects Coordinator Keenan Covington Legislative fiscal analysts and agreed, saying it wasn’t designed to executive search committee led by campaign that exceeded its goal by $2 Sales Support Suzanne Janik, YahNica Crawford some lawmakers were surprised in be an insurance claims adjuster, ac- board member Elliot Forsyth, vice million and raised $30 million be- Editorial Assistant Nancy Powers Production Manager House Fiscal Agency Wendy Kobylarz January when they learned of the cording to a president of business operations at tween the end of 2012 and end of 2014. Production Supervisor Andrew Spanos credit, in large part because few had analysis of the original 2012 bill. Michigan Manufacturing Technology But Jones said there were times connected the tax code implica- The MAIPF has hired more Center, to conduct a nationwide when the nonprofit had to use cam- CUSTOMER SERVICE Main Number: Call (877) 824-9374 tions to the legislative changes to claims adjusters and is auditing search for Jones’ successor. paign proceeds to keep its work- or [email protected] the state’s insurance code. medical costs and catching fraud, Jones, 64, has been planning his force training programs going. Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside retirement for nearly a year with the Last year, Focus: Hope fur- U.S.A., add $48 per year to out-of-state rate for sur- Focus: Hope board, the nonprofit loughed employees, cut pay, idled face mail. Call (313) 446-0450 or (877) 824-9374. Single Copies (877) 824-9374 INDEX TO COMPANIES said in a statement. its machinist and information tech- Reprints (212) 210-0750; or Krista Bora at These companies have significant mention in this week’s Crain’s Detroit Business: The retired COO of Chrysler Finan- nology workforce training programs [email protected] To find a date a story was published (313) 446- Amway ...... 16 Governmental Consultant Services...... 11 cial, Jones served as chairman of the and laid off 17 employees after 0406 or e-mail [email protected] Autoliv...... 16 Great Expressions Dental Centers...... 6 Focus: Hope board before coming nearly $3.2 million total in work- Crain’s Detroit Business is published by Belfor Holdings ...... 16 HealthRise Solutions ...... 17 out of retirement in 2009. force training and related grants Crain Communications Inc. Bissell Homecare...... 16 Helm ...... 28 Chairman Keith E. Crain During his tenure, Focus: Hope from the Michigan Economic Develop- Bodman...... 21 Honigman Miller Schwartz & Cohn...... 11, 13 President Rance Crain Treasurer Mary Kay Crain Butzel Long ...... 22 Hook Studios ...... 20 launched the Hope Village Initiative, ment Corporation and Detroit Employ- Executive Vice President/Operations Campbell Ewald...... 21 Impact Management ...... 17 a long-term initiative to improve the ment Solutions Corp. expired or were William A. Morrow Charles Stewart Mott Foundation ...... 26 Insurance Institute of Michigan...... 29 lives of the families in the 100-block awarded to other nonprofits. Executive Vice President/Director of Strategic Chateau Chantal...... 14 Integrated Care Alliance...... 4 neighborhood, and it brought An- Focus: Hope said in November it Operations Chris Crain Clark Hill...... 12 International Automotive Components Group.16 Executive Vice President/Director of Corporate droid Industries and the Oakland Uni- had secured $4.36 million in cash do- Operations KC Crain Daifuku North American Holding ...... 16 Inteva Products...... 16 versity School of Nursing programs nations, pledges and equipment Vice President/Production & Manufacturing Dassault Systemes ...... 28 Kelly Services...... 16 Dave Kamis Detroit Employment Solutions...... 19 Loomis Sayles ...... 28 to its campus, the nonprofit said. from corporate funders during its an- Chief Financial Officer Thomas Stevens Detroit Institute of Arts...... 11 M. Arthur Gensler Jr. & Associates...... 1 Focus: Hope credits Jones with ex- nual corporate leadership breakfast Chief Information Officer Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) Detroit Lions...... 1 McAlpine ...... 27 panding services for seniors, reinvig- in early November, with much of it Mrs. G.D. Crain Jr. Chairman (1911-1996) Detroit Wayne Mental Health Authority...... 4 Mich.Automobile Insurance Placement Facility.3 orating its early childhood learning in-kind donations rather than cash. Editorial & Business Offices Domino’s Pizza...... 16 Michigan Department of Treasury ...... 29 programs and advancing manufac- But the nonprofit has not yet 1155 Gratiot Ave., Detroit MI 48207-2732; Dykema Gossett...... 12 Michigan Veterans Affairs Agency...... 19 (313) 446-6000 Faurecia North America...... 16 Miller Law Firm ...... 27 turing programs and partnerships restarted the idled training. It is, Cable address: TWX 248-221-5122 AUTNEW DET FCA US ...... 16 Moceri Cos...... 9 with multiple universities and insti- however, recruiting students for CRAIN’S DETROITBUSINESS ISSN # 0882-1992 is published weekly,except fora special issue the third weekof Fieger, Fieger, Kenney & Harrington...... 27 Nemeth Law ...... 23 tutions over the past seven years. those programs and doing assess- November,and no issue the third weekofDecemberby Flint Institute of Arts...... 26 NSF International...... 16 Still, his tenure has been marked by ment testing in preparation for Crain Communications Inc.at 1155 Gratiot Ave.,Detroit Flint Public Library...... 1 Process Control & Instrumentation ...... 18 MI 48207-2732.Periodicals postage paid at Detroit,MI funding challenges in the face of de- restarting them, said Rich Donley, and additional mailing offices.POSTMASTER: Send ad- Focus: Hope ...... 29 Reclaim Detroit ...... 3 clining federal and state support for its senior vice president of public rela- dress changes to CRAIN’S DETROITBUSINESS,Circula- Foley & Lardner ...... 12, 22 Sommers Schwartz...... 23 tion Department,P.O.Box07925,Detroit,MI 48207-9732. Ford Motor...... 16 TI Automotive...... 16 workforce development programs. tions and marketing communica- GST# 136760444.Printed in U.S.A. Those programs have not had sus- tions at Mort Crim Communications Inc. Entire contents copyright 2015 byCrain Communica- General Motors...... 10 Warner Norcross & Judd...... 22 tions Inc.All rights reserved.Reproduction oruse ofedi- Global Detroit ...... 18 Ziebart International...... 16 tained funding since 2011 when feder- Sherri Welch: (313) 446-1694 torial content in anymannerwithout permission is al earmarks for its programs were cut. Twitter: @SherriWelch strictly prohibited. 20160208-NEWS--0030-NAT-CCI-CD_-- 2/5/2016 5:19 PM Page 1

30 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 ON THE WEB RUMBLINGS WEEK JAN. 30-FEB. 5 QStride moves Detroit Digits OTHER NEWS A numbers-focused look at last Ⅲ Darnell Earley will step down HQ to downtown week’s headlines: as state-appointed emergency manager of the embattled Detroit COURTESY OF CRYSTAL CRUISES Public Schools at month’s end. Ear- Renderings show that some of the SS United States' superstructure would be modified Detroit from Troy 4th ley was also emergency manager along the lines of a modern cruise ship, but its general look, including its two massive fun- echnology solutions Where physicians educated by the of Flint during its controversial Wayne State University School of nels and elongated prow and after lines and colors, would remain the same. provider QStride Inc. has shift from Detroit regional water Medicine T relocated its headquarters rank nationally by to the Flint River. Meanwhile, the from Troy to the Fifth Third Bank at patient reviews, according to the state Senate Government Opera- Vitals Patients’ One Woodward in downtown De- eighth annual tions Committee held the first Local auto supplier plays part Choice Awards troit. The new offices are in about . WSU scored hearing on Gov. Rick Snyder’s plan University of Illinois at 3,000 square feet on the 16th floor behind the to restructure the district. Chicago Indiana University to save historic ocean liner of the skyscraper owned and , and Ⅲ Odis Jones, CEO of the Detroit Ohio State University managed by Bedrock Real Estate . Public Lighting Authority, resigned he historic ocean liner SS candidate to run away with the Services LLC. QStride moved 10 20 months after his hiring amid a United States, rusting along nomination. employees to the new space and $65 million power struggle with Mayor Mike T a Philadelphia pier in the expects to hire another 30. Lease The finalized financing package for Duggan over authority manage- Delaware River for nearly 20 years, Oakland County shows terms were not disclosed. The Scott at Brush Park project in ment, said a source familiar with may sail again, thanks in part to a it’s sweet on biz Detroit to create 199 apartments. their relationship. metro Detroit company’s fundrais- Ⅲ COMPANY NEWS The funding comes from Fifth State Rep. Derek Miller, D- ing efforts. Oakland County Executive Third Bank, the Detroit Warren, resigned his post to be In 2012, Livonia-based AlphaUSA L. Brooks Patterson announced last Ⅲ The former Dearborn Hyatt Neighborhoods Fund, the Detroit sworn in as Macomb County helped launch a campaign for the week the county government Regency, now operating as the Ed- Investment Fund and others. treasurer, replacing Ted Wahby, nonprofit SS United States Conser- would send chocolate cars to the ward Village Michigan, was sold to who died in December. Miller is a vancy in which donors bought own- CEOs of 100 automakers and sup- an offshore group with properties former county assistant prosecu- ership of the vessel, docked since pliers with locations in the county in the Toronto area, said Michael $400,000 tor. 1997, for $1 a square inch. as Valentine’s Day gifts for their in- The amount raised by the semipro O’Callaghan, executive vice presi- Ⅲ The Detroit Lions fired Sheldon Los Angeles-based Crystal vestment and employment. Detroit City Football Club in a dent and COO of the Detroit Metro White, vice president of pro per- Cruises, owned by a Malaysian Getting the wheeled, edible community financing campaign to Convention & Visitors Bureau. The sonnel since 2009 and interim tourism conglomerate, last week valentines will be Chairman and fund renovations of its future facility, one of the state’s largest general manager since November. announced at the Manhattan CEO Mary Barra of General Motors Co. home, Keyworth Stadium in hotels, had operated as the Royal Ⅲ Bill Brazier, executive director Cruise Terminal that it has signed a and CEO Sergio Marchionne of FCA Hamtramck. The soccer team met Dearborn Hotel & Convention Center of the Society of St. Vincent de Paul purchase option for the SS United US LLC. Also rating sweets are the the minimum goal to begin work under the ownership of Israel- of the Archdiocese of Detroit for 12 States with the goal of returning the top executives at Lear Corp. in on the stadium. based Royal Realties LLC. It went years, said he plans to retire. ship to oceangoing service out of Southfield; BorgWarner Inc. in on the market last June. Ⅲ The Detroit Police Athletic New York City. It will conduct a Auburn Hills; Brose North America Ⅲ Sterling Heights-based Key connect primary care physicians League said it reached its initial nine-month feasibility study and Inc. of Auburn Hills; Magna Safety Systems Inc. will be ac- with pharmacists. “Kids on the Corner” fundraising cover maintenance costs and dock International Inc. of Aurora, Ontario; quired by Chinese auto conglom- Ⅲ Hundreds of jobs will go to goal of $12 million, allowing the rental during that time. Valeo Inc., the French supplier with erate Ningbo Joyson Electronic Corp. Shelby Township as Flint-based nonprofit to break ground in April The renovation and moderniza- North American headquarters in in a $920 million deal expected to hospital system McLaren Health on a multisport complex for De- tion cost was estimated by Crystal Troy; and many others. close in the first half of this year. Care centralizes billing and collec- troit children and new PAL head- Cruises CEO Edie Rodriguez at $700 The cars measure 8 inches long Ⅲ French engineering firm Seg- tions in one location. quarters at the site of the old Tiger million. The company would pay and slightly over 2 inches high. ula Technologies acquired Ply- Ⅲ Aerospace-defense private Stadium. the makeover cost, which rivals the They were designed by an in-house mouth Township-based Griswold equity firm Admiralty Partners Inc. Ⅲ The former Metropolitan Hotel price of a new cruise ship. county graphic designer and Engineering Inc. Terms were not in California announced it is in- in Romulus, shuttered since 2012, assembled by Birmingham Chocolate. disclosed. Griswold will report to vesting $3 million in Ann Arbor- will reopen this summer as the Detroit,Flint to host Speaking of Valentine’s Day Segula’s Troy-based subsidiary, based Arotech Corp. Radisson Hotel Detroit Metro Airport, presidential debates candy, recreation apparel and gear Segula Technologies Group USA. Ⅲ Detroit-based DTE Energy Co. owned by Henderson, Nev.-based retailer Moosejaw is up to its zany Ⅲ Detroit-based online mort- filed a $344 million rate hike re- RKJ Hotel Management LLC. Michigan will play host to two promotions again. The Madison gage lender Quicken Loans Inc. ex- quest with the Michigan Public Ser- Ⅲ The city of Detroit slashed presidential debates days ahead of Heights-based company is spurn- panded into the personal loan vice Commission to upgrade its property assessments for most the March 8 state primary. Republi- ing the “cutesy” candy hearts, with business by launching Rocket- Southeast Michigan electric dis- homeowners, with cuts for about can candidates will debate issues in their endearing words and phrases Loans, an online service. tribution system. 95 percent of residential property Detroit on March 3, and Democrat- for couples and would-be pairs, Ⅲ Ann Arbor-based RPM Ven- Ⅲ Saks Fifth Avenue Off 5th owners to start next summer and ic candidates Hillary Clinton and with its release of limited-edition tures is to raise a $100 million ven- opened its second Michigan loca- range from 5 percent to 15 per- Bernie Sanders will face off in Flint “Moosejaw Bitter Heart” candies. ture capital fund, according to a tion, in the Hunters Square Shop- cent, Mayor Mike Duggan said. on March 6. Instead of “kiss me,” you’ll find filing with the U.S. Securities and ping Center in Farmington Hills. Ⅲ Detroit’s 200 or so medical The two-hour GOP debate, pre- “kiss this” on Moosejaw’s heart Exchange Commission. The other location is at Great Lakes marijuana dispensaries can begin sented by the Fox News Channel, will candy and other phrases like “Eww” Ⅲ Nonprofit health plans Crossing Outlets in Auburn Hills. putting in bids to operate in the air at 9 p.m. across Fox’s various and “Get a Job” to turn would-be HealthPlus of Michigan in Flint and Ⅲ U.S. Citizenship and Immigra- city on March 1, Corporate Coun- media platforms including Inter- Lotharios in another direction. Health Alliance Plan in Detroit re- tion Services awarded the Dear- sel Melvin “Butch” Hollowell said at net, TV and radio. The location of Moosejaw is offering its Bitter ceived final state and federal regu- born nonprofit Arab Community a Detroit City Council meeting. that debate has yet to be finalized, Hearts free with any order on latory approval to merge. Center for Economic and Social Ser- Ⅲ Max Wicha, M.D, founder and but the Fox Theatre is reportedly in moosejaw.com or in its Moosejaw Ⅲ Connecticut-based XPO Lo- vices $250,000 in grants to provide director emeritus of the University the running. Megyn Kelly of Fox News Shops while supplies last. gistics Inc., which acquired Ann citizenship services to area of Michigan’s Comprehensive Cancer will again be a moderator, leaving Arbor-based Con-way Inc. in 2015, refugees and immigrants. Center, received a $6.5 million candidate Donald Trump’s atten- Crain’seditor wins said it cut about 160 jobs in its Ⅲ The Detroit Metro Convention grant from the National Cancer In- dance an unknown. women’s career award less-than-truckload business. & Visitors Bureau said it will collab- stitute to continue research into Details on the Democratic Party Ⅲ Ann Arbor-based NSF Interna- orate with Travel Michigan and cancer stem cells. debate have yet to be determined. Jennette Smith, editor of Crain’s tional, a food safety auditing, Washington, D.C.-based Brand Ⅲ Wayne County has slashed The debates come only days Detroit Business, is one of 20 training and consulting company, USA to promote Detroit as a desti- its retiree health care liability by after Super Tuesday, which will fea- women to be honored at the up- said it is in the process of acquir- nation for events from the United 64 percent as part of a broader ture primaries or caucuses in 14 coming Career Mastered Awards, ing Belgium-based competitor Kingdom, Germany and China. plan to stabilize county finances, states, and less than a week before produced by HR consultant Linwick Euro Consultants Group. The deal is Ⅲ The Meadow Brook Music Fes- Executive Warren Evans said. Michigan’s primary. & Associates LLC as part of Women’s expected to close this spring. tival in Rochester Hills has a new Ⅲ Former Mumford High School The GOP and Democrats will History Month. Ⅲ Rochester-based health care name: Meadow Brook Principal Kenyetta Wilbourn Snapp hold 22 and 18 primaries and cau- The event is March 14 at the management organization Med- Amphitheatre, announced by pleaded guilty for her role in an cuses, respectively, ahead of the Crowne Plaza Detroit Downtown River- NetOne Health Solutions and Novi- Auburn Hills-based Palace Sports ongoing public corruption scan- Michigan primary, which could front. A Living Legend award is based Sav-Mor Drug Stores an- & Entertainment, which operates dal and faces up to 46 months in cause several GOP candidates to going to U.S. Rep. Brenda Lawrence. nounced a deal that aims to the concert venue. federal prison. Ⅲ drop out of the running or a single Details are at careermastered.com. Ⅲ DBpageAD_DBpageAD.qxd 1/26/2016 9:06 AM Page 1 DBpageAD_DBpageAD.qxd 2/1/2016 2:43 PM Page 1

1-25-16 | 10:34 PM | GMRENCEN, NORTH LOBBY

KY AND BARB ARE reflecting A NEW DETROIT. COLLABORATORS. ORGANIZERS. STRONG DETROITERS.

WE’VE ALL HEARD IT TAKES A VILLAGE. And, Eastside Community Network proves it. Ky Lindberg, ECN’S Resource Director, and board chair Barb Martin have seen ƓUVWKDQGKRZDFRPPXQLW\FDQPDNHDEHWWHUIXWXUH(&1ZRUNVZLWKSDUWQHUVRQ Detroit’s Lower Eastside to drive change: rebuilding commercial corridors, supporting youth, engaging residents, and repurposing vacant land. For over 30 years, ECN has positively impacted more than 3,000 young people and put 700+ people to work. Detroiters, we’re stronger together! GMRENCEN is celebrating the spirit and vision RIWKHSHRSOHRI'HWURLW/HDUQPRUHDWUHŴHFWLQJGHWURLWFRP

#REFLECTINGDETROIT