AG Seeks Review of Blues Assets

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www.crainsdetroit.com Vol. 28, No. 39 SEPTEMBER 17 – 23, 2012 $2 a copy; $59 a year

Page 3 Henry Ford AG seeks review of Blues assets Health lands chief innovation Move would throw hurdle in front of conversion plan CLOSER LOOK Debate is on officer BY JAY GREENE tions director Joy Yearout, said he wants end game is to make sure seniors and the over mission, CRAIN’S DETROIT BUSINESS to hire an independent expert to assess most vulnerable are protected,” Yearout funding, Page 28 the value of Blue Cross and its charitable said. What would Crop failure bites Michigan Attorney General Bill assets for the taxpayers of Michigan, It is unclear when the asset evaluation conversion state’s cider mills Schuette may have thrown a monkey similar to what was done when the non- would be completed or who would be mean? Page 28 wrench into the six-month timetable profit Detroit Medical Center was sold in hired, but it is expected to be done before Critics speak Gov. Rick Snyder announced last week late 2010 to for-profit Vanguard Health Sys- the Legislature approves enabling legis- up, Page 29 West Michigan Policy Forum that would allow Blue Cross Blue Shield of tems inc. of Nashville. lation this year that would allow Blue Michigan to convert into a nonprofit mu- “His first priority is to make sure the Cross to become a nonprofit mutual. Detroit River bridge tops tual insurance company. assets of Blue Cross (and its affiliated list of priorities, Pages 6-7 Schuette, through acting communica- companies) are evaluated because the See Blues, Page 28 Second Stage Extra Emagine steps up AMC rivalry Biomed company wants reaction from potential Theater planned buyers, Page 11 for Roseville This Just In BY CHAD HALCOM Survey: Innovative firms CRAIN’S DETROIT BUSINESS grow more revenue Paul Glantz’s proposal for an Prism Plastics Emagine Entertainment Inc. theater Companies that emphasize Labor lite co-owners in Roseville is his third and most innovation achieve higher Rod Bricker (left), ambitious yet along the I-94 corri- revenue growth and generate Jerry Williams and dor this year — but it could boost an average of 16 percent of Prism Plastics drives Gerry Phillips. company revenue by $10 million a revenue from new products or year and esca- services, according to a sur- late competition vey by the Detroit-based ac- efficiency with more machines with market counting, tax and consulting leader AMC En- firm Plante Moran PLLC. tertainment Inc. The second annual Innova- and fewer workers. Welcome to the new manufacturing model The Troy- tion Quotient survey, released based compa- last week, identified four tiers BY DUSTIN WALSH en days a week. And with just 58 ity translates into a reduction in ny’s co-founder of innovators that led to in- CRAIN’S DETROIT BUSINESS total employees, Prism is the hiring. Nationally, the automo- and CEO said creased profits. model of modern manufacturing tive industry employs 780,700, the 15-screen At Prism Plastics LLC in Chester- — fewer humans, more ma- down from more than 1.2 million Emagine Ma- “Accident innovators” re- Glantz act to customers or a need to field Township, a mere three em- chines, higher efficiency, in- in 2002. Michigan’s auto employ- comb — an $18 improve quality to innovate. ployees per shift work the 26,000- creased productivity. ment is down to nearly 96,200 million to $20 million investment “Disciplined innovators” square-foot factory, programming But increased productivity is a from more than 190,000 a decade planned on the site of a shuttered create cross-functional teams machines and packing boxes. contentious topic, politically and ago. Kmart store on 13 Mile Road east focused on innovation — led These employees don’t wrench on economically, as Southeast Mich- In other words, manufacturers of Little Mack Avenue — will be by strategy, such as entering parts. Their hands are not cal- igan and the nation continue to are producing more with fewer the only Macomb County location new markets or increasing ca- lused, at least not from their day recover from an economic reces- workers. And work continues to in Emagine’s long-term plans once pacity. job. sion and high unemployment. return to the U.S. from the effects it opens in late 2013. “Top innovators” generated The plastic injection molding Over the past year, manufac- of a global economy, but more of Glantz has shopped locations for 21 percent of revenue from in- supplier produces 500 million turing productivity increased 2.9 that work will be done by ma- a theater on the near east side of novation and “superstar inno- parts across its four plants and percent as output increased 5.5 chines, rather than humans. metro Detroit for some time, start- vators” 23.3 percent. Plante 28 molding machines. The ma- percent, the U.S. Bureau of Labor The reduced workforce has ing with an eight-screen proposal Moran surveyed 550 compa- chines need no sleep, coffee Statistics reported this month. paid off for Prism, which also has to Grosse Pointe city officials, nies. breaks or vacations. They work In the world of economics and plants in Port Huron and Harlin- which he withdrew in May, fol- — Dustin Walsh three shifts, 24 hours a day, sev- labor statistics, higher productiv- See Prism, Page 29 See Emagine, Page 27 JOHN SOBCZAK

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Page 2 CRAIN’S DETROIT BUSINESS September 17, 2012

MICHIGAN BRIEFS Rebuffed in Wisconsin, mining ed earnings in the first full fiscal year after the transaction is com- company considers site in U.P. Horse racers claim state aims to rein in their rights plete. The buyout is expected to A mining company hopes that close in Perrigo’s fiscal second the Upper Peninsula will be more Four harness racers who claim the state accused men have denied wrongdoing. quarter, which ends Dec. 31. receptive to its efforts to build an them of fixing horse races at Sports Creek Raceway in “The Fifth Amendment is the Fifth Amendment,” open-pit iron ore mine after a simi- Swartz Creek have sued to get their racing licenses said their attorney, Hugh Davis. “You cannot be de- MICH-CELLANEOUS lar attempt in northern Wisconsin back. prived of your right to engage in a legal profession ran into opposition. In their suit, John Moody, Donald Harmon, Rick and make a livelihood because you pleaded the Michigan Attorney General Bill Williams, president of Hur- Ray and Wally McIllmurray say the state refuses to Fifth.” Bill Schuette filed suit to stop the ley, Wis.-based Gogebic Taconite, renew their licenses until they appear before the According to the suit, the Gaming Control Board Sault Ste. Marie Tribe of Chippewa Indi- said the company is studying the Michigan Gaming Control Board and answer questions, cited a rule that says the board has the right to take ans from building the Kewadin Lans- results of some exploratory drilling MLive.com reported. away licenses if an individual fails to cooperate in ing casino in downtown Lansing, in the U.P. He told Wisconsin Public At a May 2010 hearing, the men refused to answer, an investigation. the Lansing State Journal reported. Radio that Gogebic was finding less claiming their Fifth Amendment rights not to an- The four say they were accused of conspiring to Dow Chemical Co. CEO Andrew opposition than it did in Wisconsin. swer questions that can be used to incriminate fix the outcome of races at Sports Creek, Northville Liveris said last week at a confer- Republican legislation that was them, according to the lawsuit, filed in U.S. District Downs and Hazel Park Harness Raceway. Authorities ence in New York City that the meant to streamline permitting Court. No criminal charges have been filed, and the have said the tracks are not accused of race fixing. world isn’t in its “normal growth and clear the way for the $1.5 bil- mode” and won’t return to that condition in at least the next six lion mine failed to pass the Wis- firm specializing in architecture, al revenue of $25 million. man and CEO Joseph Papa said in months. Midland-based Dow an- consin Senate. More discussion engineering and interior design. a statement. Omaha, Neb.-based — MiBiz nounced a corporate reorganiza- had been planned, but Williams is- Terms were not disclosed. Sergeant’s is privately held. tion this month. sued a statement saying Gogebic The merger marks the third Perrigo, which plans to fund the was leaving the state because the transaction involving West Michi- Drugmaker Perrigo to buy deal with available cash, said last Find business news from Senate sent a “clear message that gan architectural and design firms Sergeant’s Pet Care for $285M week it expects a tax benefit of around the state at crainsdetroit Wisconsin will not welcome iron since July. Grand Rapids-based about $50 million from the acquisi- .com/crainsmichiganbusiness. mining. We get the message.” Concept Design and Serve Studios Allegan-based Perrigo Co., which tion. The company expects the Sign up for Crain's Michigan merged to form Concept Design LLC makes over-the-counter drugs and deal to add about 12 cents a share Business e-newsletter at crains 2 firms build latest architectural this month, and Holland-based infant formulas that retailers sell to earnings and 20 cents to adjust- detroit.com/emailsignup. GMB Architecture and Engineering as their own brands, plans to buy merger in West Michigan Inc. acquired Visbeen Associates Inc. the animal health care company A busy summer of merger-and- in July. Sergeant’s Pet Care Products Inc. for CORRECTIONS acquisition activity among local ar- The Progressive AE and Design $285 million. A story on Page 33 of the Sept. 10 edition should not have named chitectural firms continues to re- Plus merger will help expand the “This acquisition allows us to David Mielke as the dean of Eastern Michigan University’s College of Busi- shape West Michigan’s competitive portfolio of the new firm, said Pro- penetrate the pet care category by ness. Michael Tidwell became dean in July. landscape for building design. On gressive CEO Brad Thomas, who offering numerous flea and tick, Sam Flanders, M.D., is executive vice president, chief quality and Monday, Grand Rapids-based Pro- will lead the combined company. health and well-being and consum- safety officer at Beaumont Health System in Royal Oak. His title was in- gressive AE and Design Plus said they The firm will operate as Progres- able products to pet owners at af- correct on Page 11 of the Sept. 10 edition. would merge to create a 150-person sive AE and expects to have annu- fordable prices,” Perrigo Chair-

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September 17, 2012 CRAIN’S DETROIT BUSINESS Page 3 Henry Ford exec Meetings and Conventions to launch spinoffs System eyes national standing with new innovation officer

BY TOM HENDERSON has helped launch more than 200 Group business pushes up CRAIN’S DETROIT BUSINESS companies, first in the technology transfer office at Carnegie Mellon hotel occupancy, Page 13 It took more than a year to land University in Pittsburgh and then as Mark Coticchia for the new posi- director of tech transfer at Case tion of chief innovation officer, but Western Reserve University in Cleve- officials at Henry Ford Health System land. say it was time well-spent. The best known launch was that Company index They think they have hired the of Lycos Inc., an Internet search en- These companies have significant mention in this best person to make the health care gine that began as a research pro- week’s Crain’s Detroit Business: organization a national leader in ject at Carnegie Mellon in 1994 and Anton, Sowerby & Associates ...... 17 spinning off high-tech for-profit had an initial public offering on Bank of Ann Arbor ...... 12 companies through its Innovation In- Nasdaq in 1996 that valued the com- Barbara Ann Karmanos Cancer Institute ...... 25 stitute and collaborations with re- pany at $300 million. Beaumont Health System ...... 26 search universities and health sys- Before joining Carnegie Mellon tems across the country. in 1992, Coticchia, now 54, was se- Best Buy ...... 19 This week, officials at the health nior corporate engineer and mar- Best Western Sterling Inn ...... 14 system will announce the hiring of kets manager for the Westinghouse Blue Cross Blue Shield of Michigan ...... 1, 28, 29 Coticchia, a nationally known ex- Electric Corp. Citizens Republic Bancorp ...... 4 pert in economic development who Henry Ford officials began try- Cobo Center ...... 13 focuses on technology born at re- ing to hire Coticchia soon after he Detroit Marriott Renaissance Center ...... 13 search universities and health sys- started coming to town periodical- Detroit Medical Center ...... 26 tems. He also will be a health sys- ly as a consultant for the New Econ- GLENN TRIEST Emagine Entertainment ...... 1 tem vice president. Mark Coticchia, new chief innovation officer at the Henry Ford Health System, Esperion Therapeutics ...... 12 Over the past 20 years, Coticchia See Innovation, Page 26 has helped launch more than 200 companies in 20 years. Galeana Auto Group ...... 17 Gardner-White Furniture ...... 19 Goodison Cider Mill ...... 27 Henry Ford Health System ...... 3 Inforum ...... 24 Ann Arbor data The Inn at St. John’s ...... 13 Squeeze is on for cider mills Lakeshore TolTest ...... 15 McLaren Health Care ...... 19 Sellers look far afield, pay more after crop fails storage firm gets Michigan Association of Health Plans ...... 28, 29 Michigan Nonprofit Association ...... 19 The Mike Cox Law Firm ...... 28 BY RYAN KELLY Molly Maid ...... 17 SPECIAL TO CRAIN’S DETROIT BUSINESS $20M investment MotorCity Casino Hotel ...... 14 After wild spring weather took its toll on NextEnergy ...... 11 this year’s apple crop, deploying trucks to get Nuyen, Tomtishen and Aoun ...... 28, 29 more apples to Michigan became Job One for Online Tech ...... 3 cider mill owner Gary Whittaker. Online Tech to expand Original Equipment Supplier Association ...... 29 Whittaker, owner of Northville-based Three Parmenter’s Northville Cider ...... 27 Cedars Farm, said that since he has an owner- BY TOM HENDERSON Plante Moran ...... 1 ship interest in Detroit-based Industrial Pack- CRAIN’S DETROIT BUSINESS aging, he has started Prism Plastics ...... 1 rerouting company Online Tech Inc., an Ann Arbor-based provider Quicken Loans ...... 7 of data storage and file backup for disaster re- We’re trucks to the moun- Rochester Cider Mill ...... 27 tains of Tennessee covery, is expected to announce today that it Roush Enterprises ...... 15 “ has received an equity investment of $20 million and coastal plains of Royal Park Hotel ...... 14 praying like and will use the money to add four new data cen- North Carolina to SMR Investments ...... 17 load up on apples. ters in the Midwest by the end of 2014. hell that we Society of Manufacturing Engineers ...... 29 Like other mill News-Press & Gazette Co. of St. Joseph, Mo., ac- Swift Biosciences ...... 11 get apples. owners who make quired a majority stake in the data storage com- ” the lion’s share of pany, which has averaged 30 percent annual Three Cedars Farm ...... 3 TriMas ...... 29 Bob Steinheiser, their profits in Sep- growth in revenue over the past six years and is Goodison Cider Mill tember and October, on track to increase revenue from about $6 mil- United Way for Southeastern Michigan ...... 30 Whittaker is scram- lion last year to $8 million this year, President Yates Cider Mill ...... 27 bling to buy and transport apples — and rais- and COO Mike Klein said. ing prices to reflect increased costs. A gallon Current management, which includes CEO of Three Cedars cider now costs $9.75, up from Yan Ness, will remain in place. It also includes $6.50 last fall. Jason Yaeger, who on Sept. 27 will be honored Department index Michigan’s apple crop this year was re- as CIO of the year for companies with revenue JOHN SOBCZAK duced to about 3 million bushels from last under $10 million at Crain’s CIO Summit at The BANKRUPTCIES ...... 29 Gary Whittaker has been buying apples from out of Fillmore in Detroit. year’s 26 million — a plunge of almost 90 per- state for his Three Cedars Farm in Northville. BUSINESS DIARY ...... 22 Ness, Klein and two unidentified investors cent — said Diane Smith, executive director CALENDAR ...... 20 of the Michigan Apple Committee. share what is now a minority stake in the firm. Heading into the busy season for cider Wild weather “Basically, nothing will really change. We’ll CLASSIFIED ADS ...... 25 mills and family orchard visits, the supply- Apple trees in Michigan started to show continue to run the company and stay with the JOB FRONT ...... 24 and-demand disconnect is causing owners to pre-blooming buds a month early, in mid- vision,” said Klein, who said he and Ness decid- KEITH CRAIN...... 8 find alternative suppliers and brainstorm LETTERS...... 8 See Apples, Page 27 See Data, Page 25 more out-of-state sources. MARY KRAMER ...... 8 OPINION ...... 8 Nosh news Business of nonprofits OTHER VOICES ...... 9 Crain’s rounds up the week’s nonprofit news THIS WEEK @ Check out Nathan Skid’s blog, Table Talk, PEOPLE ...... 24 every Thursday for juicy nuggets on the every Thursday in the Nonprofit Newsletter. WWW.CRAINSDETROIT.COM area’s food and beverage industry. Sign up at crainsdetroit.com/getemail. RUMBLINGS ...... 30 WEEK ON THE WEB ...... 30 20120917-NEWS--0004-NAT-CCI-CD_-- 9/14/2012 4:52 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 17, 2012 Citizens CEO: Sale to FirstMerit was best move for shareholders What’s It’s been a whirlwind Illinois and Wisconsin. The Bloomberg report mentioned few weeks for Citizens Re- On Friday, Cathy Nash, Huntington Bank specifically as a that public Bancorp Inc., one of Citizens president and bank interested in buying Citizens. the state’s oldest banks CEO, spoke with Crain’s Can you confirm its interest? and a survivor of several reporter Tom Henderson Nope. economic booms and about how the deal came ticking Cathy Nash, Were there other would-be buyers? busts in its home city of together, why it was not Citizens Republic You can interpret my silence as Flint since it was founded just a good time to sell, Bancorp. Inc. an answer. (Laughter.) sound? in 1871 as the Citizens Com- but necessary, what it mercial & Savings Bank. means for Flint and Did you negotiate yourself out of a Back then, Flint was an econom- whether or not she has negotiated job? What’s your role moving forward? Given the changes ic dynamo, a lumber mill town herself out of a job. My role is to make sure on behalf working around the clock to saw of our clients, employees and share- You were promoted to president in the financial marketplace, the white pine that came out of holders that we get this deal closed. and CEO on Feb. 1, 2009. That was northern Michigan by the train I’ll stay as long as I’m helpful to your life insurance policies may not like being named captain of the ship load. Paul in that process. be performing as intended. during a hurricane. As the lumber played out and It was a fateful day. Citizens had the mills closed, Flint reinvented What if you’re so helpful that Paul acquired Republic (Bancorp Inc. of itself as a hub of the new auto in- says, “Hey, why don’t you run Michi- A periodic analysis and review can: Ann Arbor) in 2006 as a merger of dustry, and Citizens played its gan operations?” equals. Republic Save premium dollars part, making a loan in 1886 to help Once you’ve was a real estate- W.C. Durant, later one of the been a CEO, it’s oriented bank, Improve, extend or guarantee your coverage founders of General Motors Corp., es- kind of hard not and by the end of tablish his first vehicle company. to be a CEO. 2008, real estate Generate cash On July 26, Citizens (Nasdaq: was a pretty Does that mean CBRC) reported its best quarter looking for another Make sure your plan is on track dark place. since it was founded, with net in- bank to run? come of $297.1 million, much of Citizens went I’m going to that as a result of being able to put through years of take a little vaca- federal tax credits back on its huge losses. As Call for a complimentary analysis and review. tion before I make books after a year of sustained the feds shut down any decisions profitability. a series of Michi- about my life. A week later, Bloomberg News gan banks, did you reported that the bank had enlist- ever think: “We’re Is there any ed the services of J.P. Morgan Chase not going to make overlap in the Citi- BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM & Co. to find a buyer. Last Thurs- it, either”? zens and FirstMer- day came the announcement that Not at all. I it footprints? And, the bank had been bought by First- have an office at if so, are any Merit Corp. (Nasdaq: FMER) of home with a Lu- branch closings Akron in a stock transaction val- cite plaque that planned? ued at $912 million. says: “Failure is There’s a little The deal also requires FirstMer- not an option.” overlap in the Legal Experience President and CEO Cathy Nash says Cleveland area, it to pay the federal government At no time did I she never doubted that Citizens but it’s way too the $345 million Citizens owes in think we were Republic Bancorp Inc. would make it early to know In Your Corner. TARP money. going to fail. We through the recession. what will hap- On Friday, Paul Greig, chair- laid out a plan, pen. Day one is too early. man, president and CEO of First- we carried it out and we delivered. Merit, told Crain’s that his bank After all that time getting back to How many are employed at the Flint had looked at 30 profitability, why sell now? headquarters? prospective ac- Our job as senior managers is to About 600. quisitions since bring value to shareholders. We May 2010, and Any decisions on what happens analyzed a variety of strategies to this one was by there? Will it be headquarters for do that. far the largest Michigan operations? Will that many One way was to seek out a part- and most attrac- employees be needed? ner with someone like FirstMerit. tive, allowing We don’t know yet. We’ll put an We could have become an acquirer the bank to ex- integration team together. We’ll ourselves. Or we could have stayed pand into Michi- look at systems and operations the course. gan and Wiscon- and pick those that make the most Greig The three paths weren’t difficult sense. We have a lot of work ahead sin. Citizens, to analyze. The organic path was which also has 14 branches in of us before we start making deci- going to be very difficult. Our con- sions. Ohio, has about 2,000 employees cern in this prolonged cycle, with and 215 branches, including 37 in interest rates being kept very low I’ll lob you a softball. In addition to Southeast Michigan, and assets of by the Fed, now through 2015, was the dollars and financial reasons be- nearly $10 billion. margins were going to be very hind the deal, what were the other rea- “At FirstMerit, we made it small, and we’re a margin-depen- sons you liked FirstMerit as a partner? through the economic downturn dent bank. The organic path would I’ve known Paul about four in the top quartile of banks in the have squeezed profits even more. years. We’re on a committee of the country. We came out of the down- As for the acquisitive path, we American Bankers Association to- turn with a lot of capital, a very would have had to raise enough gether. And we’ve been on some good loan book and an acquisitive money to do acquisitions and to re- roundtables together. Over the way of looking at life,” said Greig. pay TARP, and that was going to three and a half or four years, you “To get into two states in a very be tough. The third option, to find find out you have the same way of credible way, we needed to do it on a partner, became the clear path. talking about clients, the same a big scale, and this acquisition al- way of talking about risk. We have lows us to do that,” he said. How did you come to enlist J.P. Mor- the same approach, and the cul- Marla Carew The acquisition, which requires gan to find a buyer? tures of our organizations are very approval by state and federal regu- We had already been working similar, which is clearly impor- lators and by shareholders of both with J.P. Morgan for a number of tant, more important than you’d banks, is expected to close in the months to help us think about the think, when putting companies to- First Tier Ranking second quarter of 2013. most appropriate way to repay gether. We can tell our employees in Tax Law It will create a bank with $24 bil- TARP and to pursue acquisitions. and our customers that this is a lion in assets, $15 billion loans, $19 When it became clear that that company you can connect with. billion in deposits, more than 5,000 couldn’t get enough of a return on Tom Henderson: (313) 446-0337, I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing employees and 415 branches in capital for shareholders, it made [email protected]. Twitter: Pennsylvania, Ohio, Michigan, sense to have them look for buyers. @tomhenderson2 DBpageAD.qxp 5/10/2012 1:20 PM Page 1 20120917-NEWS--0006-NAT-CCI-CD_-- 9/14/2012 4:53 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 17, 2012

WEST MICHIGAN POLICY FORUM Forum attendees back bridge, oppose ballot proposals

FROM STAFF REPORTS At the close of the two-day West as a new Detroit River rail tunnel. shoemaker in home care workers. Michigan Policy Forum in Grand What didn’t crack the top five is- the world be- In his public remarks, Kennedy GRAND RAPIDS — West Michi- Rapids last Thursday, attendees sues: making Michigan a right-to- hind Nike and referred to Proposal 4 as an exam- gan and metro Detroit business- voted on top public policy issues to work state — a disappointment to Adidas, said the ple of “larceny without consent.” If people may have more in common improve the state’s economy. the forum planners, who included new bridge was approved, home care workers — than many think, at least when it No. 1 on the list: building the Peter Secchia, former U.S. ambas- “absolutely es- including family members with se- comes to opinions on business- New International Trade Crossing sador to Italy, and Doug DeVos, sential.” The rious disabilities — would be friendly public policy priorities. linking Detroit and Canada as well president of Amway Corp. company runs forced to pay union dues deducted Only about a third of attendees 15-18 trucks a from state subsidies paid to them participated in those final policy week between for their care services. votes, which were tallied on a spe- Krueger Michigan and West Michigan business leaders cial iPad app. Canada, and the are leading the charge to defeat all The strong showing of support backups cost time and money. five ballot proposals that would for the bridge followed sessions on In their end-of-forum votes, at- amend the state constitution — in- Wednesday featuring Canadian tendees may have been lukewarm cluding the proposal to require a Consul General Roy Norton, Direc- about right-to-work, but they were statewide vote for new interna- tor Kirk Steudle solidly against Proposal 2 on the tional bridges or tunnels. of the Michigan November ballot — voting 91 per- Business leaders oppose a sixth Department of cent against the labor-backed plan proposal — to repeal the emer- Transportation, to undo recent labor-related re- gency manager law supported by Wolverine World- forms affecting public-sector em- Gov. Rick Snyder. But in a quirk of wide Inc. Presi- ployees and place collective bar- ballot language, favoring the cur- dent Blake gaining guarantees in the rent emergency manager law re- Krueger and Michigan Constitution. quires a “yes” vote. Marge Potter, John Kennedy, president of Auto- Business groups have estimated executive direc- cam Corp. in Grand Rapids and a that mounting a pro-business bal- tor of corporate speaker at the forum, told Crain’s lot education campaign would cost Norton affairs for Conti- he wasn’t really pushing right-to- about $50 million — focusing espe- nental Rail Gateway, which wants to work because it wouldn’t affect his cially on promoting “no” votes on build a new rail tunnel linking De- 500-employee business. But he said Proposals 2, 3 and 4 while saying troit and Windsor to accommodate Proposal 2 — and two other pro- “yes” to preserving the emergency modern, double-stack container posed amendments to the state manager law. rail cars. constitution — had “galvanized” One executive involved in the Steudle said one in seven jobs in the business community. planning said that if only $35 mil- the Grand Rapids area is tied to He referred to Proposal 3, to es- lion to $40 million is raised, the de- trade with Canada. And Krueger, tablish a 25 percent standard for cision may be made to drop em- whose Rockford-based company is renewable energy sources, and phasis on the EM law. on track to be the third-largest Proposal 4, which would unionize Jared Rodriguez, president of the policy forum, also is president of Protecting Michigan Taxpay- ers, the coalition raising money Presented by to defeat Propos- al 2. He would not reveal how much money his group had raised but told Crain’s YOU’RE INVITED Rodriguez that so far, funding for the anti-ballot campaign had come from inside Michigan. IMPROVING THE CLOSE “But a lot of taxpayers outside of Michigan are watching this; they don’t want it to serve as a model PROCESS UTILIZING FINANCE that would be replicated in other states,” he said. GOVERNANCE TECHNOLOGIES The next filing deadline for campaign financing data is in late Oc- tober. DeVos, chairman of the board that convened the West Michigan SEPTEMBER 26 2012 WHO SHOULD ATTEND Policy Forum, told Crain’s the im- This session is intended for anyone who is involved in supporting mediate goal is defeating Proposal Join us at UHY’s Farmington Hills office the execution of an efficient and effective monthly, quarterly, or 2. But he hasn’t given up on right- annual financial reporting process. In addition, customers of the to-work legislation. 8:00AM–10:30AM EST financial reporting output, such as Tax, FP&A, and Regulatory, “The two are linked, especially should gain insight into how the quality and timeliness of their when we have a state next door that data can be improved. Companies that are heavy users of Excel, has taken that path,” he said. refer- ring to Indiana. In February, Indi- have very manual close and reporting processes, or have complex ana became the 23rd state — and the Please join UHY Advisors and BlackLine Systems for customer, legal entity, or trading partner relationships should see only Midwestern manufacturing an exclusive networking breakfast discussing the opportunities to reduce complexity. state — to become right-to-work. challenges organizations currently face in creating Business Leaders for Michigan, the an efficient and effective record to report process collection of CEOs and presidents and how new Finance Governance Technology of Michigan’s 80 largest companies and universities, also opposes Pro- tools help address these challenges. Learn ways to create posal 2. But Mike Jandernoa, a REGISTRATION “ Business Leaders board member, an efficient and told forum attendees that pushing Advance registration for this complimentary event right-to-work legislation similar to is recommended as seating is limited. Breakfast will effective record to Indiana’s never had been “on our be provided. Multiple registrations are welcome. priority list.” To RSVP please contact Courtney Gray by email report process. “But the union bosses” put col- [email protected] or phone at 586 843 2533. Mark Bealin lective bargaining on the Novem- CPE credit is available. Managing Director & National ber ballot, he said, and Business Project Solutions Group Leader Leaders strongly opposes the so- ” called Protect Our Jobs proposal. 20120917-NEWS--0007-NAT-CCI-CD_-- 9/14/2012 4:55 PM Page 1

September 17, 2012 CRAIN’S DETROIT BUSINESS Page 7

WEST MICHIGAN POLICY FORUM Gilbert: Detroit could use an intern turnaround The most effective single way to move the stance, that manufacturers connect more needle in Detroit? Hire more interns, Dan with local schools to conduct plant tours for Gilbert told the West Michigan Policy Forum students to introduce them and their par- last week. ents to highly skilled, high-paying jobs such Gilbert told about 600 businesspeople from as machinist or mechanic and to help them around the state at the Grand Rapids event understand what the job requires. that Quicken Loans Inc. had 8,700 applications The governor plans to convene a summit from 157 colleges and universities for 600 full- in April on education to “talk about the sup- time internships this sum- ply side” of talent and may precede that mer. In 2013, if major em- event in February or March with an eco- ployers coordinated nomic summit on what skills are in demand. recruiting, “you could — MiBiz have 25,000 interns downtown,” he said. Young adults want to be Spectrum Health CEO: System should in cities, he said, and “De- troit sells itself once you reward quality of medicine, not quantity get them here.” With an estimated 400,000 to 600,000 more In an earlier speech at Gilbert people accessing Medicaid in Michigan if the Detroit Athletic Club, the new federal health care law is fully im- Gilbert said he hoped to convene a meeting plemented amid the rising tide of baby of major employers to try to ignite plans to boomers, health care providers are going to draw 13,000 interns in the summer of 2013. have to achieve the same productivity gains Gilbert was part of a policy forum panel that industries such as manufacturing have about urban revitalization. Other panelists posted over the past decade. were Dan Loepp, CEO of Blue Cross Blue Shield of Michigan, and Dick DeVos, president Ways to achieve those gains are “the kind Shery L. & David B. Cotton, MD Family Birth Center of Ada-based Amway Corp. of issues that keep us up at night,” Rick Bre- — Staff reports on, president and CEO of Grand Rapids- based Spectrum Health, told attendees of the West Michigan Policy Forum. Canadian consul general: If you want Much of the problem is that the national a new bridge, stop sitting on the fence health care system rewards the number of Why do some families procedures rather than outcomes, said Bre- His tone was polite and understated, but on, who heads the largest not-for-profit his words were direct: Don’t be “held health care system in West Michigan, with care as much about our babies hostage or made small in your thinking” by 18,000 employees and 1,800 physicians. “But the “cynical, manipulative and greedy” pri- there’s a real movement afoot to change that vate interests of Manuel “Matty” Moroun, based on payment for outcomes — not how as they do about their own? avowed foe of the proposed new Detroit Riv- many procedures you do, but what were er bridge supported by Gov. Rick Snyder. your outcomes from those procedures.” The strong words from Roy Norton, the — Matthew Gryczan consul general of Canada, brought an equal- Behind the technological advancements and state-of-the- ly strong applause from the audience at the art labor and delivery suites at Beaumont are families West Michigan Policy Forum. Business Leaders video shows state’s like the Cottons. The lion’s share of Norton’s 15-minute speech outlined the basis for building a sec- CEOs making their pitch for Michigan ond bridge linking Detroit and Windsor. As a tribute to their mother and father, a high risk Business Leaders for Michigan showed off its More than $120 billion worth of goods passed obstetrician who cared for the most acute expectant new, upbeat video “starring” many of the over the 83-year-old Ambassador Bridge last state’s leading CEOs touting state assets and mothers, the family has equipped Beaumont, Grosse year, which Norton referred to as a choke pushing the group’s plan to make Michigan point with a life expectancy of only 50 years Pointe with the most innovative and comforting a top 10 state for economic and personal in- when it was built. come growth. birthing facility in the area. Bridge owner Moroun has launched a campaign under the umbrella organization The The video was created by Birmingham- Through the family’s generosity, parents will enjoy the People Should Decide to persuade Michigan based Brogan & Partners Convergence Market- voters to approve ballot Proposal 6. The pro- ing and Royal Oak-based Radish. latest labor, delivery and recovery suites, some with posal would change the state constitution to The six-minute video can be found on the whirlpool tubs. And the Cottons are also supporting force statewide votes on whether new bridges group’s website, businessleadersformich research on maternal and infant health. or tunnels should be built with Canada. igan.com, or on YouTube.com. “We do more trade with Michigan than — Staff reports any country in the world except the United All of us at Beaumont are grateful for the philanthropy States as a whole,” Norton said. “Half of of families like the Cottons. everything Michigan sells to the world is Outtakes purchased by Canadians.” Ⅲ Former GOP gubernatorial candidate And they remind us that a gift that will save new lives is — Matthew Gryczan Dick DeVos was asked to grade Gov. Rick the most precious one of all. Snyder. Great policies and action, DeVos Snyder tells W. Michigan execs: Help said, a lot of good things, but “maybe four years too late. Maybe eight years too late.” state cultivate the talent you need Ⅲ During the policy forum panel on urban Calling it “one of the very most important revitalization, DeVos said:, “A strong core things we really need to work on,” Gov. Rick city is critical to our vitality as a state; ener- Snyder urged West Michigan business lead- gy moves from the center outward.” But, he ers to work more closely with the public sec- said — in a reference to a key policy of his tor to cultivate the talent base needed now political foe, former Gov. Jennifer A Not-for-Proﬁ t Provider and in the future. Granholm — “I don’t want to hear a word “My simple view of the world is we’re go- about ‘cool cities.’ ” ing to lead the world and North America in Ⅲ Consumers Energy has doubled its “buy having the most talented people, and that’s Michigan” commitment in Snyder’s “Pure more important than tax incentives or regu- Michigan Business Connect” program. When lation or a whole bunch of other stuff,” Sny- the program began in June 2011, Consumers Find out how you can save lives, too. If you would der said during a keynote address Thursday had pledged to increase spending on Michi- like to make a gift, please go to our website at at the West Michigan Policy Forum. gan products and services by $250 million To make that happen, Snyder encouraged over five years. Snyder said Consumers Pres- foundation.beaumont.edu or click on the code the private sector to tell educators and the ident and CEO John Russell had pledged to with your phone. state what’s needed. He suggested, for in- increase that to $500 million over five years. 20120917-NEWS--0008-NAT-CCI-CD_-- 9/14/2012 4:55 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 17, 2012 OPINION MARY KRAMER Blue Cross conversion Work for right-to-work goes on Oops. would continue their In Grand Rapids, efforts to orga- About 600 people at- push while they also fo- nize furniture workers stalled in tended last week’s two- cus on five new priori- the early 1900s, in part because important for Snyder day West Michigan ties set by attendees’ Christian Reformed Church lead- Policy Forum in Grand votes. (See story, Page ers forbade their members to join a t’s a little early to be talking legacy for a governor in his Rapids, the third held 6.) “worldly” labor union. Unions just first term. in that city since 2008. To some attendees, never caught on. I But Gov. Rick Snyder’s announcement last week of a Sessions were short; including some from Forum leaders should consider plan to convert Blue Cross Blue Shield of Michigan into a non- topics were many and Southeast Michigan, the 2012 edition a big success, with profit mutual insurance company could be looked on in the fu- deep. Attendees could the steady right-to- more than 600 attendees from 48 communities and counties. ture as a game changer for his first term. use an iPad app to ask work messaging may questions, keep track of have seemed like Ryan Maibach, president of (Other nominees for that list: overhauling Michigan’s busi- the schedule and vote overkill. But a handful Southfield-based Barton Malow ness tax structure, reducing long-term debt by $5 billion and on a lot of topics. of powerful Grand Rapids business Co., was part of a contingent from signing an agreement to build a new bridge to Canada.) The topic with the most airtime leaders — including Secchia and Southeast Michigan, led in part by Key to the conversion will be the creation of a $1.5 billion — six sessions out of more than 20 Amway Corp. President Doug De- the Detroit Regional Chamber. nonprofit fund created by Blue Cross surplus funds, ear- — was making Michigan a right- Vos — believe following Indiana’s Maibach, the fourth generation of family leadership at the company, marked for spending on health care-related missions. to-work state. In right-to-work lead would put Michigan at the top states, workers can choose to join of site selectors’ lists for business drew a parallel to Detroit. Snyder said he wanted the legislation passed and signed by a union, and paying union dues is expansions. “I read a story about the 25 most year’s end to give Blue Cross the time it needs to align with not compulsory. Indiana became Thursday’s vote didn’t mean the powerful people in Grand federal health care reform. If it doesn’t make the changes, it the 23rd right-to-work state this crowd was pro-labor. On another Rapids,” he said. “I think they’re won’t be able to participate in a health insurance exchange year. tally, 91 percent voted “no” on Pro- all here. Just think of what might where individuals and companies will purchase coverage. Yet at the close of the forum, posal 2, the labor-led drive to re- happen in Detroit if the most powerful people were in the same There are two potential land mines. with just over 200 of the 600 atten- verse recent labor-related laws room working to make something First, as Jay Greene reports on Page 1, Attorney General dees voting, that issue didn’t crack and protect collective bargaining the top five of public policy priori- in the state constitution. happen.” Bill Schuette says he will hire his own expert to assess the val- ties. It’s gutsy that the Grand Rapids Mary Kramer is publisher of ue of Blue Cross’ charitable assets. He is clearly not on the gov- A forum founder, longtime Re- leaders put right-to-work on the Crain's Detroit Business. Catch her ernor’s “dog years” timetable. publican power broker Peter Sec- policy table, first in 2008. take on business news at 6:10 a.m. Second, Snyder must ensure that community health direc- chia, was visibly disappointed. But Detroit and Grand Rapids have Mondays on the Paul W. Smith show tor Jim Haveman not take a leading role in the conversion since the issue was already on the such different labor histories. In on WJR AM 760 and in her blog at talks. Haveman was appointed to the Blues board — whose forum’s to-do list from past confer- Detroit, the auto industry became www.crainsdetroit.com/kramer. ences, forum leaders said they unionized in the 1930s and 1940s. E-mail her at [email protected]. members can be paid more than $100,000 a year, depending on their specific duties — in March by Snyder. He resigned last month after being appointed to his current post, but the talks could be hurt by the appearance of conflicted interests. Counter anti-bridge campaign LETTERS Build the bridge. And while you’re at it, build a larger rail tunnel, too. Those emerged as the top priorities set by attendees at the Break the cycle of illiteracy West Michigan Policy Forum in Grand Rapids. About 600 people from 48 communities and counties attended the two-day forum. Editor: there could be generations of facto- What was striking in the aftermath of the vote is that Am- I read the Other Voices “To Crain’s Detroit Business ry workers in a family, and possi- bassador Bridge owner Manuel “Matty” Moroun has spent leave no child behind, teach welcomes letters to the editor. bly many of them lacking literacy, All letters will be considered for millions to persuade voters to block the new bridge. adults” in the Sept. 10 edition and had not occurred to me. publication, provided they are was so encouraged to read Diane I am thankful for the wake-up But even though business organizations agree with Gov. signed and do not defame Renaud’s analysis/perception of Snyder that the bridge is an important economic engine, no- individuals or organizations. call and am committed to combat the root of the issues in education body is stepping up to spend money on ads to counter Mo- Letters may be edited for length illiteracy through volunteering in Detroit. and clarity. with the United Way. I agree with roun’s claims. The argument: No matter how much they For a few years, my husband Renaud’s statement of the necessi- spend, the Moroun family will spend more. and I have wondered what could Write: Editor, Crain’s Detroit Business, 1155 Gratiot Ave., ty to reclaim the lost generations be behind the lack of enthusiasm The Nov. 6 ballot is crowded with six ballot proposals. Ma- Detroit, MI 48207-2997. in order to assure we leave no jor business groups oppose five, supporting just Proposal 1, and thirst for education. We knew child behind. We can do this by re- standards had changed, and a high Email: [email protected] which would support Snyder’s emergency manager law. moving the embarrassment and school graduate or dropout could fear that exists in the adults and Businesses and PACs need to put money in this election no longer depend on going to the cure retirement 30 years later. children who cannot read. factory for a job that practically where the state’s best economic interests lie. Concern about That was no longer a reality. Tanya Mattox being out-shouted isn’t enough reason not to speak up at all. guaranteed a good life and a se- Somehow, the possibility that Detroit KEITH CRAIN: Hasn’t anyone ever heard of a toll road? The state of Michigan has made parks in Michigan for thought, maybe they careful with the city’s finances, There are a lot of communities an offer to take over the cost of run- something like $10 per are used to getting they will be paying fees for a lot of in this country that understand ning Belle Isle for the city of Detroit. car. Not a bad deal for a everything for nothing. services that their diminishing tax the idea of a fee for services. That cost is in the millions of dol- year’s access. The state is offering a dollars are now paying. Whether you pay a tax on gasoline lars to basically do the minimum, Michigan may be the deal of the century, or It seems as if there are too many to build and maintain your roads since the city really doesn’t have only state in the union at least 30 years. The people in this city and on the City or a fee to enter a park, it makes a any money for improving the is- without any toll roads. state will invest in Belle Council who somehow think all lot of financial sense to charge the land. It needs a lot of investment to Except for the Mackinac Isle and nurture it as it services are a right without costs. I user. come anywhere near its potential. Bridge and a bridge to deserves. Citizens of had hoped that the financial crisis That would be particularly true But the state feels, and rightful- Grosse Ile, you don’t Southeast Michigan would be a reality check. But it when you have a small percentage ly so, that users should pay for the pay tolls in our state. will be able to enjoy all would appear that there are still of the population using the partic- use of what would become one of Maybe too many peo- the state parks for one too many people who are not con- ular service. Detroit is in a deep fi- many state parks. A fee for Belle ple are used to getting small annual charge. tributing to the common welfare nancial crisis. It’s amazing that Isle would give access to all state something for nothing. On second If the citizens of Detroit aren’t but expect all city services. anyone could object. 20120917-NEWS--0009-NAT-CCI-CD_-- 9/13/2012 4:00 PM Page 1

September 17, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Detroit ideal place to debate U.S. future

Forget the recently com- Romney on how to bring and increased employment. and his challenger unequivocally pleted party conventions back Detroit — the undis- Is the antidote to Detroit’s ills define one of the most crucial — and nonstop orchestrated puted epicenter of Ameri- How Obama and more or less government? What yet curiously ignored — issues in campaign events that are ca’s urban crisis “ policies will put Detroit’s long- the upcoming election: the exact ongoing until Election Why Detroit makes for Romney would term unemployed back to work? relationship between the federal Day. the perfect starting point How much influence should pub- government and the citizenry it is If you really want to to debate America’s fu- propose to fix lic-sector unions actually have? charged to serve. draw contrasts between ture couldn’t be clearer. Can poverty in the city actually be After all, that relationship could the visions of President From its shockingly Detroit would speak quelled? end up permanently altering De- Barack Obama and Repub- high unemployment rate, volumes. Let Obama defend the efficiency troit’s fate and that of the country lican presidential nomi- John Sitkiewicz billions in unsustainable and effectiveness of government for better or worse. nee Mitt Romney, see ex- debt, anemic economic ” institutions that have consistently There’s never been a better time John Sitkiewicz actly how they come down on ways growth, crumbling infrastructure, failed Detroit. to have a substantive debate about to fix Detroit. public-sector union strangleholds, How Obama and Romney would Let Romney explain why the America’s future. And there’s nev- Though it won’t happen, noth- failing public schools and rising propose to fix Detroit would speak bailouts of GM and Chrysler were er been a better place to start from ing leading up to Nov. 6 would be poverty, Detroit is the poster child volumes regarding how each would handled poorly and set a danger- than Detroit. more telling than a no-holds- for the problems that must be tack- attempt to put the country on a ous precedent. John Sitkiewicz is a freelance barred debate between Obama and led nationally. path to renewed economic growth But mainly, let the president business writer.

TALK ON THE WEB From www.crainsdetroit.com WE BELIEVE IN Reader responses to stories and blogs that appeared on Crain’s website. Comments may be edited for length and clarity.

Re: UM, MSU on U.S. News list It is great to have two nationally leading universities in our state. Walt Re: Belle Isle Aquarium reopens I’d love to see the aquarium expand to become a real tourist draw and attract ticket revenues as the Chicago aquarium does. gehad18 Re: Casino revenue up in August Hooray! More gaming means less money in productive sectors in the economy. Timothy Dinan Re: Roush to expand in Livonia Roush must have a great management team to be able to show that kind of revenue growth and to continue to grow different business areas in this tough economy. We need more like them. WJW Re: Troy DDA may default on bond debt I thought all you had to do to run a successful suburb was add water and cars. Cinc Re: Pure Michigan video praised I believe Michigan should make every effort to sell itself — as a tourist location and a location for commercials, conventions and fea- OVER 140 YEARS — THAT’S HOW LONG WE’VE BEEN HELPING MICHIGAN ture films. Every city, town or vil- BUSINESSES START UP, RAMP UP AND BUILD UP. As the largest bank lage has a beauty spot, a feature that would attract people to visit. If headquartered in the state, we know this market, we know the potential, and we the state is averse to incentives for film, another path would be to know Michigan is coming back stronger than ever before. So if you want expertise have a strategy to really sell the that comes from experience, and a relationship that’s more, well, Michigan, call us. state as a prime location for all of BECAUSE WE’RE HERE FOR YOU. LITERALLY. these things. Mark Adler $)&$,*/( 4"7*/(4 r -0"/4 -*/&4 0' $3&%*5 r .&3$)"/5 4&37*$&4 Re: Biz role in Kilpatrick trial 53&"463: ."/"(&.&/5 r 41&$*"-5: '*/"/$*/( r 8&"-5) ."/"(&.&/5 Wow! Seems like there could be a number of highly visible “civic/business” leaders who are 1-800-946-2264 going to skate even though it sounds like some of them were aw- CITIZENSBANKING.COM/MIBUSINESS fully close to Kilpatrick. Guess pros- ecutors are willing to let them off the hook so they can nail the big fish. john md DBpageAD.qxp 9/6/2012 10:44 AM Page 1

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September 17, 2012 CRAIN’S DETROIT BUSINESS Page 11 Extra

growing small businesses

A CONVERSATION WITH

Jean Redfield, NextEnergy

In July, Jean Redfield was named president and CEO of NextEnergy, the Detroit-based nonprofit that promotes emerging energy technologies and serves as an incubator. On Nov. 1, NextEnergy will host Accelerating Ener- gy Through Collaboration, a matchmak- ing event that hopes to connect large energy companies with early and second-stage companies looking to grow their client bases and revenues. Red- field, an engineer and member of the 1995 class of Crain’s 40 under 40 while manager of corporate strategy at Detroit Edison, talked with Tom Hender- son about her new job and the event.

You had been vice president of public policy there. How did the top job open up and what was the attraction? Ron Gard- house (the former CEO and president) had done a great job of creating financial stability here and hiring the right team. I had a long history in the energy industry, and it was felt to be the right LON HORWEDAL time for me to step in. I want to really From left, Swift Biosciences Inc. CEO David Olson, Chief Scientific Officer Vladimir Makarov and Chief Commercial Officer Steve Spotts are at the put NextEnergy on the map as an inno- heart of the Ann Arbor lab, which makes liquid reagents for cancer research. vation center for advancing energy technologies, attracting investments, and creating companies and jobs. People tend to think of NextEnergy as an incubator and may not be aware of the other services, such as finding Mixing focus, flexibility grant money and venture capital for companies and consulting. We provide a range of services, and incubation is just one of them. We can only work with Biomed innovator wants to get a reaction from potential buyers six or eight companies in our labs, but we can impact hundreds of other companies through our consulting. BY CONSTANCE CRUMP Staying nimble SPECIAL TO CRAIN’S DETROIT BUSINESS Tell me about the event on Nov. 1. I don’t care how they Because many other companies are in It’s bringing together management nn Arbor-based Swift Biosciences Inc. “ the same market, Swift’s product develop- from large energy companies looking makes niche products for biomedical evaluate us. Our goal is to ment cycle is measured in days or weeks to add technology capability and small A research testing. Now it’s trying to per- rather than months. And customers are and second-stage companies looking fect the formula for taking its business to make our technology as applying the company’s products and to grow. the next level. processes in new ways. Founded in 2010, the tiny lab is on the “We sell products for research use only. Who are some of the attendees? interesting to customers west side of town and doesn’t look like We’ve got Doug White of Dow Chemi- However, through partners, our technolo- cal Ventures, we’ve got Reg Modlin of much from the outside — its tidy one-sto- as possible. gy can be useful for in vitro diagnostics,” Chrysler, we’ve got Knut Simonsen of ry office with wet lab sits among similar ” Olson said. DTE Energy Ventures, we’ve got Roc anonymous offices. David Olson, Olson estimated revenue will be $1 mil- Marcone of General Dynamic Land Sys- Swift keeps the lid on expenses by buy- Swift Biosciences Inc. lion to $2 million in 2013. Swift is still ven- tems, and we’ve invited others. ing used furniture and foregoing a recep- ture-capital backed, with a current $2 mil- tionist, among other cash-saving mea- months,” Olson said. “Best case, there are lion infusion expected to last until next And what are you looking for in the sures. But when it comes to scientific two options: Develop relationships with summer. The company has 11 employees; way of small companies? How do they research, industry watchers and investors large product-based companies such as eight of them are scientists working in the get involved? It’s invitation only, but if say Swift is an innovator. Life Technologies Corp., or with companies lab. they think they’re a fit, they can send Swift makes liquid reagents used by re- an email to Dan Radomski, vice that specialize in diagnostics and services, One product line, called myT Primers, president of new markets, at danr@ searchers for detecting mutant cancer such as Roche.” helps researchers analyze more samples nextenergy.org. genes. A reagent is used to cause a chemi- Life Technologies is based in Grand Is- quickly and cheaply, according to the cal reaction or to test if one occurs. land, N.Y. Roche, based in Basel, Switzer- company. Test kits are sold in sets of 30 for If you know someone As it seeks to gradually grow and per- land, is one of the world’s largest biotech $1,500, Olson said. Tom Henderson haps become part of a larger biomedical companies. The company earns additional revenue should interview, group, the company’s emphasis has been “It’s best to have as many companies as from licensing agreements. Swift has few- write him at on staying focused but flexible and on col- possible bidding for you, regardless of sec- er sales and more licensing revenue than thenderson@crain laborating with key customers in develop- tor. I don’t care how they evaluate us. Our first planned, Olson said. .com or call him at ing product lines and licensing deals, said goal is to make our technology as interest- “Revenue is an excellent thing. But like (313) 446-0337. CEO and President David Olson. ing to customers as possible. We could see many startups, (Swift’s) revenue demon- “We have no plans for dramatic expan- a bidder within six to 18 months,” Olson strates market interest and strategic value. sion of the company in the next 12 said. See Biomed, Page 12 20120917-NEWS--0012-NAT-CCI-CD_-- 9/13/2012 3:27 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 17, 2012 Second Stage Extra Biomed: Looking for potential buyers ■ From Page 11 It’s a means to having the company tage, experts and investors say. Olson told news service acquired,” Olson said. With an active revenue stream, GenomeWeb for a Feb. 23 story that He keeps a close eye on expens- “you’re not dependent on the fi- Swift’s corporate strategy is to pro- es. If a purchase isn’t strategic, the nancial market duce products that will work on company doesn’t do it, he said, ob- for venture capi- existing instrumentation. The pro- serving that Silicon Valley star- tal. It’s non-dilu- prietary reagents and matching tups seem to have money to spend tive, not a bad protocols help customers do things on things that don’t matter. situation to be with their existing instruments Swift’s landlord at the utilitarian in right now. that they couldn’t do before. space, Henry Brown, is also an in- You can have a For a small company, the chal- vestor. partnership lenges are immense. First, Swift Olson says he has to remind with somebody had to leap from R&D to commer- himself that science is not his job or all kinds of cialization with quality products, — his job is to worry about cash other things Olson said. Swift has had repeat flow. A molecular biologist by Newton that you could customers, as well as contacts training, he’s co-founded six never do in a therapeutics compa- from multiple companies interest- biotech startups, including Ann ny,” said investor Roger Newton, ed in licensing its technology. Arbor-based Accuri Cytometers, CEO and president of Esperion Ther- In the year between announc- which was acquired by New Jer- apeutics Inc., a Plymouth-based ing its R&D program and product sey-based Becton Dickinson in 2011 drug development company. launch, Swift concentrated on for $205 million. Walt Young, a Swift investor strategic and financial planning Swift’s other co-founder is Chief and director with broad experi- by Chief Commercial Officer Scientific Officer Vladimir ence with tech startups, likes Steve Spotts and consulting CFO Makarov. Makarov co-founded two Swift’s leadership and flexibility. Eric Halvorson to determine how biotech startups. Most recently, he He was also an Accuri Cytometers much capital it needs to raise, Ol- served as chief scientific officer of investor. son said. Rubicon Genomics Inc., where he in- Young points to “Now, what are vented the Ann Arbor company’s the results of a the next products? products. At Swift, Olson said, the global DNA study That The challenge is company has a strong focus on so- released a few “ making the right called targeted gene sequencing, weeks ago, which leadership of strategic choices. where the goal is to examine col- he calls game- We have lots of tech- lections of a few critical genes, changing. Such an- Vladimir and nology,” Olson not- such as genes related to specific nouncements have David – that ed. “I’m making cancers. an immediate im- sure we make the The company has a half dozen pact on research pairing is right choices. We products in the pipeline at any giv- direction. want to anticipate en time. “It’s is a very ex- unique. ... They what customers plosive area, get- will need in two to ting a lot of atten- bring talent from three years.” Hot segment tion from all sorts Swift’s leadership style and rev- of areas: big phar- around the enue track record give it an advan- ma, drug, hard- Making milestones ware and wetware country. Young said the (liquid reagents) ” company had a companies. It’s a Walt Young, Swift investor breakthrough year dynamic segment, making revenue but a most flexible area,” Young said. must remember the delicate bal- “That leadership of Vladimir ancing act that faces second-stage and David — that pairing is companies. unique. They attract talent and Swift has gone from its found- When I needed to purchase inventory to add value. They bring talent from ing to getting its first revenue, he around the country.” said. Now, the company has the secure a large contract, I needed cash Swift is gradually hiring scien- skills and capabilities — and tists as it expands its product growing credibility — to change quickly. By accessing my First State Bank lines. It has two positions posted markets. line of credit, it was like having a life line… one for a molecular biologist, bio- “Focus, focus, focus. The other chemist or biophysicist, and one ‘f’ word is flexibility. It sounds like for my line of business. for an applications scientist. yin and yang: two conflicting ideas Part of the company’s predica- at the same time,” he said. ment is sharing enough informa- Ann Arbor banker Michael Cole -Brad tion to build business without says remaining small and nimble First State Bank sharing so much that it risks an in- is key. He is president of the tech- Business Customer tellectual property breach. nology industry group at Bank of The Swift staff meets weekly to Ann Arbor. share progress and monthly to “If you’re trying to build a busi- strategize. Many ideas are simply ness based on unique intellectual filed for future development, but property, any acquirer is going to all are documented. They become be interested in that intellectual part of the company’s intellectual property,” Cole said. assets, adding value for a future The future of second-stage com- buyer. panies in general depends on With our business lines of credit, you can have quick Protecting new IP is a challenge, whether they are financed with and easy access to funds to cover purchases or even Olson said. venture capital or backed by their payroll. As a cornerstone in our community since 1917, “There’s a little dance we have entrepreneurs, he added. we’re committed today – and every day – to lining up to do. We can’t let customers and “Companies that are VC-backed businesses for success. potential partners know what tend to be focused on some type of we’re doing before we get things exit — a liquidity event for in- s,INESOF#REDIT patent-protected. But we also need vestors. Achieving milestones to s#ASH-ANAGEMENT3ERVICES to make products available rapidly increase valuation would be im- s3"!,OANS to select customers and business portant to potential buyers,” he s4ERMAND2EAL%STATE,OANS partners,” Olson said. said. “Non-VC-backed companies #ALL866-372-1275 and ﬁnd out how we can move your Young concurs: “I’d be so protec- want to become profitable stand- business forward. www.thefsb.com/businessloans tive — you can’t hide behind alone businesses.” 866-372-1275 patents. You still want to keep qui- Said Olson: “We are in a very ac- Earning your trust today…and every day. et, have a competitive edge. Keep tive, exciting area for acquisition key collaborators, key projects un- and mergers. There’s a lot of activ- der wraps. They’re in an exciting, ity. It requires that we move swift- hot field.” ly as an organization.” 20120917-NEWS--0013-NAT-CCI-CD_-- 9/13/2012 3:25 PM Page 1

September 17, 2012 CRAIN’S DETROIT BUSINESS Page 13

REPORTER’S NOTEBOOK

Sherri Welch writes about nonprofits and services. Call (313) 446-1694 or write [email protected] Meetings and conventions Sherri Welch Bookings rise as Cobo changes The third and largest phase of construction is just beginning at Cobo Center, but the buzz around its renovation — and what’s happening in Detroit — already is generating new bookings, General Manager Thom Connors said. Working with the Detroit Metro Convention & Visitors Bureau and its Detroit Sports Commission, Cobo attracted seven conventions this summer, or twice as many as last summer, he said. Those bookings drew 20,000 to Companies 25,000 visitors this summer and “ included several events that never are still watching had been to Cobo: the National Baptist Congress, the National budgets closely, Veterans Small Business Conference and Expo, the American Federation of but they still need Teachers’ convention and the Acrobatic Gymnastics National to have Championships. In October, the Detroit conference meetings. center will host the Teams Conference ” and Expo, an annual event hosted by Tawnya Johnson, the national governing bodies of The Inn at St. John’s sports and organizations that sponsor BOB CHASE championships and tournaments around the country, Connors said. The event could open the door to more individual athletic events and championships in Detroit, he said. The sports commission also has persuaded the Junior Olympics to Registering growth come to Cobo next summer, Connors said. “We had more long-term requests for proposals from potential groups in Corporate bookings, private parties (August) than I’ve seen since I’ve been here the past two years,” he said. Cobo’s $299 million renovation, push up hotel occupancy rates launched in 2010, is to be completed in time for the American BY SHERRI WELCH Detroit’s three casino hotels are excluded Society of Association Executives CRAIN’S DETROIT BUSINESS from the report because they offer customers convention booked for summer complimentary rooms, which could 2015, Connors said. otels in metro Detroit have filled more skew rates. Work began this year on a new rooms during the first seven months of The growth, atrium entrance along the riverfront H the year than they did during the same pe- some hotel and is expected to be completed in riod in the previous six years or more. managers say, time for January’s North American A bump in group sales is the driver. Man- is coming in International Auto Show, he said. agers point to increased events in general — group business — largely from corporate A new ballroom and meeting rooms ranging from corporate meetings to wed- bookings but also from weddings, showers NOT SO DISTURBING that are being built into the old Cobo dings. and other private events. Arena will come online in mid-2013. On average, through the first seven months And large hotels such as the Detroit Marriott Strong occupancy rates in June and July helped increase the Construction then will move to the of the year, about six of every 10 rooms at ho- Renaissance Center and MotorCity Casino Hotel January-July rates at hotels in the interior and exterior of the south tels within the Detroit metropolitan statisti- aren’t the only ones reporting increased Detroit metropolitan statistical meeting rooms on the river side of the cal area were filled every night, according to group business; independents such as The Inn area to their highest point since building to create new meeting rooms Hendersonville, Tenn.-based Smith Travel Re- at St. John’s in Plymouth are also seeing an before 2006. The Detroit MSA and two junior ballrooms. search. uptick. encompasses Lapeer, Finally, construction will move to the Those occupancy rates topped 70 percent in “Demand for our hotel for both corporate Livingston, Macomb, Oakland, north end of the building with meeting June and reached nearly 69 percent in July, and wedding groups for 2012 (is) up quite a St. Clair and Wayne counties. room renovations and a complete marking the two highest months since before bit,” said Tawnya Johnson, director of sales Occupancy rate averages for update of the main concourse fronting 2006. (See chart at right.) and marketing at The Inn at St. John’s. hotels in Detroit MSA, January- Washington Boulevard to incorporate a For hotels in Ann Arbor, the occupancy For the year to date, the inn’s wedding July: street-level food court to be finished by rate topped 69 percent during the first seven business is up about 22 percent over the same the end of 2013, a glass curtain wall months of the year, up 4.4 percent year over period of 2011, Johnson said. Corporate group 60.9% and video display board. 58.9% year. business is up 15 percent. 60 56.9% To date, about $90 million has The Detroit MSA occupancy rate was 3.4 The inn’s golf course and the return of the 58.9% been spent on renovations, which percent above the same period of 2011 and Concours d’Elegance of America to the property 57.9% Detroit-based SDG Associates LLC 55 slightly outpaced the year-to-date increase of this year have helped strengthen the inn’s 53.1% oversees as lead architect, working 3.2 percent for the top 25 U.S. hotel markets, brand, she said. with Albert Kahn Associates and 50 which had a collective occupancy rate of 69.7 And after six years of operating the hotel — Atlanta-based tvsdesign. 46.9% percent during the seven-month period. in addition to the conference center — the inn 45 Corporate bookings are also picking The hotels in the Detroit MSA closed 2011 is beginning to see repeat business. up, with events hosted this year for with occupancy rate averages of 59.8 percent, “I think the reality is companies are still 40

companies such as Novo Nordisk A/S, PHOTO: ISTOCKPHOTO.COM up from 54.4 percent in 2010 and 47.5 percent ’06 ’07 ’08 ’09 ’10 ’11 ’12 BASF Corp., and ViSalus Inc., Connors See Hotels, Page 14 Source: Smith Travel Research said. in 2009. 20120917-NEWS--0014-NAT-CCI-CD_-- 9/13/2012 3:25 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 17, 2012 Focus: Meetings and Conventions Why Should Hotels: Business bookings on the rise They Trust YOU? ■ From Page 13 watching budgets closely,” John- coming on the business rather than son said, “but they still need to social side of group bookings. have meetings.” The news right “It’s a confi- “ dence thing — Budget-conscious groups now is the companies don’t BBB Accredited Businesses book things six In contrast to metro De- increase in months to a year are committed to honest, ethical troit’s 3.4 percent growth in out unless they occupancy through July, group feel some confi- and fair business practices. Chicago-area hotels reported dence in the an increase of 4.5 percent, business. business level those in St. Louis a 4.8 percent ” continuing or increase and hotels in Orlan- Judy Booth, still increasing,” Martin do, Fla., a 2.1 percent increase, Detroit Marriott Martin said. Show Your Customers What according to Smith Travel Re- Renaissance Center “You’re starting to see confidence search. that a slow improvement is going to YOU Stand For The average daily room rate for The downtown Detroit hotel — maintain.” metro Detroit hotels through July which has 1,298 rooms — has seen a In Rochester, the Royal Park Hotel was $79.43, up 3.2 percent over last 10 percent increase in business year is a little lighter on the corporate year. Ann Arbor hotels recorded over year through July, she said. side than it would like to be, Gen- an average nightly rate of $88.70, The Detroit Marriott has also eral Manager Jay Haratsis said. up 6 percent over the same period seen a marked increase in the The hotel is seeing more demand of 2011. number of weddings, with 42 from people in town for social That compares with an average booked this year, compared with events such as weddings, showers, daily rate of $127.28 for the top 25 five in 2011. fundraisers and U.S. markets, which overall But catered events such as holi- memorial ser- ® recorded a 4.7 percent rate in- day parties are not coming back as vices and from crease during the same period. quickly, Booth said. “Event plan- entertainers in Revenue per available room — ners are finding it difficult to justi- town to perform an indicator of the revenue a hotel fy large catering dollars. … or sports teams is making on each room — rose 6.8 They’re spending less, and they’re in town to play. ® percent to $48.40 at hotels in the on a tighter budget.” For the year Start With Trust Detroit MSA and 10.7 percent to The hotel has clients meet di- to date, occu- $61.43 at Ann Arbor hotels. rectly with its executive chef to pancy at the 143- The top 25 U.S. hotel markets re- customize a menu that best fits room Royal Haratsis Join the Better Business Bureau ported an 8.1 percent increase in their budget, Booth said. Rather Park is up 4.5 Serving Eastern Michigan and the Upper Peninsula room revenue through July, to than a heavy, meat entrée, for ex- percent, Haratsis said. $88.72. ample, clients can substitute a sal- “We were a little higher earlier For more information: At the largest hotel in this mar- ad or pasta or a smaller cut of in the year,” he said, adding that ket, “the news right now is the in- meat. Or they can skip a salad this summer’s construction work bbb.org or 248-223-9400 crease in group business,” said course or substitute a tray of on Main Street in downtown Judy Booth, director of marketing desserts in the center of the table Rochester has “knocked us back a for the Detroit Marriott. for individual desserts at each tad.” place setting. But the hotel expects occupancy Business travel also has been to increase even more as construc- fairly flat, Booth said — but even tion is completed, he said. that is good news of sorts. Group business at MotorCity “It’s probably the first year Casino Hotel is up a reported 40 we’re not losing ground in busi- percent for the year to date. More ness travel since 2010,” she said. local companies have booked Booth credits the increased events at MotorCity’s Sound Stage group business to the strength- theater, which seats 1,600 to 1,800, ened automotive industry and and its former Amnesia club area, heightened interest in downtown which now caters solely to private Detroit. social events, said Randy Villareal, The Detroit Marriott has seen a MotorCity’s vice president of hotel “nice increase” in the average daily operations. rates it charges, Booth said, without That number excludes the com- disclosing them. The Renaissance plimentary Center hotel forecasts average occu- stays the hotel pancy this year of between 55 per- extends to some cent and 60 percent. During the re- guests as a perk. cession, the hotel saw occupancy The hotel’s in- rates of 50 percent and below. dividual book- We’re growing to serve you better! The Marriott and other hotels ing or transient put a lot of trust in the Cobo Center business is up 7 renovation (See story, Page 13) and percent through Announcing the Hyatt Place® hotel and Diamond Center Expansion at the the vibe it’s producing about De- July, excluding troit, Booth said. comp stays, Vil- Suburban Collection Showplace Villareal “There’s a big buzz about De- lareal said. troit,” she said, “more positive than Opening 2013 “The overall market is much I’ve ever seen it,” thanks to positive better” this year, he said. stories in national media about An increasing number of com- everything happening downtown. panies in the automotive and medical industries are hosting events at the hotel, Villareal said. Future bookings pick up MotorCity’s average daily rate A healthier auto industry is hav- is holding steady, he said, declining a good effect on many of De- ing to provide it. at the troit’s suburban hotels, too. “Historically, this market ran In Sterling Heights, the Best basically the same occupancy” 46100 Grand River Ave. Western Sterling Inn is seeing an in- year after year, Villareal said. Novi, MI 48374 crease in bookings for future “What’s encouraging is we’re see- www.SuburbanCollectionShowplace.com events, said Victor Martin, the ho- ing steady growth now. tel’s general manager and owner. “And once Cobo is fully online, He projects the Sterling Inn will we expect great things.” see a 3 percent increase in occupan- Sherri Welch: (313) 446-1694, Hyatt and Hyatt Place names, designs and related marks are trademarks of Hyatt Corporation. ©2012 Hyatt Corporation. All rights reserved. cy this year and a 5 percent increase [email protected]. Twitter: in 2013, with most of the growth @sherriwelch 20120917-NEWS--0015-NAT-CCI-CD_-- 9/13/2012 3:50 PM Page 1

September 17, 2012 CRAIN’S DETROIT BUSINESS Page 15 Roush buys Livonia building for growing liquid propane fuel subsidiary

BY DUSTIN WALSH But the cost savings make it at- efficient, you’re reducing emis- sources from a staffing and finan- Plymouth Road between New- CRAIN’S DETROIT BUSINESS tractive to fleet owners, Carney sions and using a local energy cial perspective was the best path burgh and Levan roads, including said. source.” forward to make an automotive museum, manufac- Roush Enterprises Inc. is expand- Current propane prices are near About 90 percent of the propane the most out of turing center and various testing ing near its global headquarters in $1.80 a gallon, but fleet owners can auto gas sold in the U.S. is domes- the situation we facilities, according to its website. Livonia with the acquisition of a secure an annual locked-in price, tically produced, with the majori- see right now Roush Enterprises generated 60,000-square-foot building for Carney said. The Mass Transporta- ty of the rest coming from Cana- with our prod- $305.14 million in revenue last growth of its liquid propane fuel tion Authority in Flint locked in its da, according to large uct and how it year, up from $215.3 million in systems subsidiary, Roush Clean- fleet price for propane at $1.29 per Kansas-based producer Ferrellgas plays into our 2010, excluding revenue from Tech LLC. gallon, Carney said. Partners LP. national energy Roush’s NASCAR racing team, The new industrial space at Mesa Public Schools in Arizona, In an email interview with policy,” he said. Roush Fenway Racing. 12170 Globe St. will support pro- a customer of Roush CleanTech, Crain’s in 2010, Roush founder and The expan- The firm employs 1,975 in South- duction and assembly of propane is saving 36.5 cents per mile using CEO Jack Roush said the move to sion brings east Michigan, excluding motor- fuel systems for the new Blue Bird the company’s technology, he start production of the propane Roush Roush’s pres- sports employees from its racing Vision school buses, the company said. systems was to capitalize on the ence in metro Detroit to 20 build- team. said in a release. “It’s pretty compelling when federal government’s emphasis on ings. Dustin Walsh: (313) 446-6042, Roush declined to comment on you look at cost savings,” Carney energy independence. Roush has 11 industrial spaces [email protected]. Twitter: the purchase price. Colliers Interna- said. “And even though it’s not as “We agreed that dedicating rein a Livonia industrial park off @dustinpwalsh tional in Southfield represented Roush on the real estate deal. Roush renovated and upgraded the building to support production of liquid propane systems for Ford Motor Co. F-Series trucks and E-Se- ries vans for customers such as DHL Express, Frito-Lay, ThyssenKrupp Elevator and various school systems. Roush will hire additional staff to support the expansion, but Bri- an Carney, director of marketing, declined to provide a specific fig- ure. Employee satisfaction. Roush founded its liquid propane business unit in 2010 but has been producing the propane- Available in handy wallet size. powered engines since 2006. Since 2010, Roush CleanTech has grown from eight employees to 70. While other companies are boosting miles per gallon, Roush CleanTech is actually achieving fewer miles per gallon using propane. Roush’s retrofitted technology achieves about 8.5 mpg with propane for every 10 mpg in a traditional gas-powered engine.

TolTest’s new Navy contract could

reach $50 million Thousands of small businesses across the state have chosen Blue Cross Blue Shield of Michigan or Detroit-based Lakeshore TolTest Blue Care Network because they understand the importance of a plan that embraces total body Corp. could perform up to $50 mil- health for their employees at a price that won’t break their budget. We can help your business find lion of repair, construction, demo- the best health plan for your needs. lition and renovations to Camp Lemonier in Djibouti, under a five- BCN HMO HSASM year contract awarded through the An affordable, customizable option that combines a high-deductible health care plan with a tax- Washington, D.C.-based U.S. Naval advantaged savings account. You pay lower premiums, and your employees control their health care. Facilities Engineering Command. Lakeshore was the winner É1SFWFOUJWFTFSWJDFTDPWFSFEBUQFSDFOU OPUBQQMJFEUPEFEVDUJCMF among five competing bids for an É*OUFHSBUFEQIBSNBDZQMBO indefinite-delivery, indefinite- É%FOUBMBOEWJTJPOCFOFGJUDIPJDFT quality contract for general build- É$PPSEJOBUFE POMJOFIFBMUITBWJOHTBDDPVOU XFCQPSUBMBOEEFCJUDBSE ing projects and construction ser- É-BSHFTU).0OFUXPSLPGQIZTJDJBOTBOEIPTQJUBMTJOUIFTUBUF vices through September 2017. The award has a ceiling value of Simply BlueSM $50 million, but the Navy has no "DPNQSFIFOTJWF110IFBMUIQMBOUIBUPGGFSTZPVSFNQMPZFFTUIFDPWFSBHFUIFZ¼WFBMXBZTXBOUFE task orders for Lakeshore as yet, BUBQSJDFZPVDBOBGGPSE.PSFUIBO QFPQMFJO.JDIJHBOIBWFBMSFBEZDIPTFO4JNQMZ#MVFSM and work would be assigned as needed over the contract period. É.VMUJQMFEFEVDUJCMFBOEDPQBZNFOUQMBOPQUJPOT Camp Lemonnier, a barracks of É1SFWFOUJWFDBSFGVMMZDPWFSFE the French Foreign Legion until É'MFYJCJMJUZUPNFFUZPVSCVTJOFTTOFFET the U.S. military assumed its operation in late 2001, is the primary Find out what thousands of Michigan businesses already know. base of Navy operations in the Call 1-877-547-BLUE (2583) or visit bcbsm.com/grow. Horn of Africa. The new defense contract fol- lows a $54.3 million award earlier this year by the U.S. Army Corps of Engineers, to oversee construction Leading Michigan to a healthier future.SM of the National Police Command Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. Center in Kabul province, Afghanistan, by October 2013. — Chad Halcom DBpageAD.qxp 9/7/2012 1:40 PM Page 1

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September 17, 2012 CRAIN’S DETROIT BUSINESS Page 17 Broker works string of deals to turn around property’s value

BY NANCY KAFFER CRAIN’S DETROIT BUSINESS (Galeana) had just spent When a business fails, the land- “ owner has to call a real estate bro- $1 million to secure this piece of ker to find a new business for the land. And when that one fails? property, and it suddenly turned Consider calling Joe Sowerby. In a series of Warren real estate into a red herring. deals between 2007 and 2012, a for- ” Joe Sowerby, Anton, Sowerby & Associates mer Chili’s restaurant became a car dealership — which failed — and “They came to me and said, rant on the site, the Van Dyke then a McDonald’s. COSTAR GROUP ‘Whoa, what are we going to do property was suddenly much more At the center of the deals was Creative dealing turned this empty Chili’s restaurant into a McDonald’s site. here?’ ” attractive. Sowerby, a principal with Mt. Sowerby had a few tricks up his Sowerby’s final deal for the site Clemens-based Anton, Sowerby & As- 2007 purchase of the site to expand Galeana “had just spent $1 mil- sleeve. was to find Royal Oak-based SMR sociates. its Saturn of Warren operation. But lion to secure this piece of proper- The golden arches came to Investments LLC as an investor to “At the end of the day, you want it was just a year before the auto ty,” Sowerby said. “And it sudden- mind. purchase the land in April, with to find the win-win for everyone,” industry began to unravel, result- ly turned into a red herring.” Sowerby made a call to a contact the 20-year McDonald’s lease he said. “It’s nice when you can ing in General Motors Corp.’s elimi- Then, in 2010, Frank Galeana Sr. at McDonald’s — which he thought “Based on the revenue the Mc- pull a rabbit out of your hat.” nating the Saturn brand — and died. would be a perfect use for the site. Donald’s was generating over the The string of deals started when Saturn of Warren with it. “His widow came to me and told The franchisee didn’t want to next 20 years, we sold it for $1 mil- the Chili’s restaurant at 32155 Van “I sold them that just before the me they got all of his real estate ap- buy the land but lease it. Sowerby lion,” he said. Dyke Ave., just south of 14 Mile, Armageddon,” Sowerby said. “The praised, and this out-of-business negotiated a 20-year land lease for “So what was a half-million failed in 2007. timing couldn’t have been worse.” Chili’s restaurant they paid $1 mil- the franchisee, with the Galeana hole, turned out after some dips Sowerby represented Warren- The auto industry — and auto lion for now appraised for family still owning the site. and swirls and curls, we got all of based Galeana Auto Group in the dealers — took a tremendous hit. $500,000,” Sowerby said. With a booming fast-food restau- the money back.” Molly Maid’s new head stresses tech, marketing

BY SHERRI WELCH recently sold 1-800-DryClean to Cer- CRAIN’S DETROIT BUSINESS tified Restoration Dry Clean Network We were able to for an undisclosed amount, Rob- The new president of Ann Arbor- “ erts said. based Molly Maid Inc. says she plans shore up the Technology and marketing to examine ways that technology are key company priorities. can help the business and its fran- business ... “Marketing and technology chisees operate more efficiently. are going to be what drives this Meg Roberts was promoted last by making business — they make us more week to president from vice presi- available to the customers and dent of marketing. Molly Maid, ourselves help us provide a better experi- which reports close to $200 million ence for the customer,” Roberts in annual revenue and has 55 em- visible said. ployees at its Ann Arbor head- online. She also plans to look at quarters, is a division of Service ways to make the Molly Maid fran- Brands International. ” chise concept more affordable to Meg Roberts, Molly Maid Inc. Roberts said she plans to lead ef- people looking to open a business, forts to look at ways that technolo- strategy to elevate the Mr. Handy- such as offering smaller territories gy can help — such as online ser- man brand. But Molly Maid ac- for markets in Northern Michigan. vice booking and using GPS to give counts for the bulk of Service “We don’t have a market in Tra- customers a better idea of when Brand International’s roughly $250 verse City,” Roberts said, “but we their staff will arrive. million in annual revenue, Roberts certainly could.” Roberts, 39, succeeds Kristi Mail- said. Sherri Welch: (313) 446-1694, loux, who stepped down last month Service Brands is also parent [email protected]. Twitter: after six years to pursue different company to ProTect Painters and @sherriwelch opportunities, the company said. Roberts joined Molly Maid as director of marketing in 2007. She was named vice president of marketing overseeing Molly Maid and another of Service Brands’ divi- sions, Mr. Handyman, last year. An Ann Arbor native who moved back to the area from Chicago, Roberts holds a bachelor of arts in communication from the University of Michigan and a master of arts in advertising research from Michigan State University. Want to grow Start with bankers who She has spent the past four years elevating Molly Maid’s online your business? grew up in business. presence through a revamped website; social media, including Face- book and “mommy blogs” from Don’t let our local, community focus customers around the country; fool you. We offer the sophisticated and paid advertisements. commercial lending products and She dialed up those efforts in experienced senior lenders the big 2009 when the company’s 250-plus banks do, along with something franchisees around the country they don’t – the personal service and were suffering business declines. responsiveness only a community- “That’s when people were cutting based bank can deliver. back on services,” Roberts said. “We certainly had customers canceling on us. But we were able to shore up the business by adding … (new) customers by making ourselves visible online.” Headquarters: 2301 West Big Beaver Road | Suite 525 | Troy, MI 48084 | 800.456.1500 | www.talmerbank.com Roberts has been working for the past year and a half on a similar DBpageAD.qxp 9/6/2012 9:31 AM Page 1

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September 17, 2012 CRAIN’S DETROIT BUSINESS Page 19

BRIEFLY

Bill that could help McLaren’s dinary nonprofit sector leader- 8,000 square feet in Bloomfield ship.” Town Square, on Telegraph Road plan introduced in Senate Kelley Kuhn, MNA’s vice presi- north of Square Lake Road, and Legislation has been introduced dent and chief strategy officer, will 10,000 square feet in the West Oaks in the state Senate that would step up Jan. 1 as interim CEO Best Buy across from 12 Oaks Mall make changes to the state’s certifi- while the association conducts a — is set to open Friday. cate of need regulations and could national search for a permanent “This brand-new retailing con- allow McLaren Health Care Corp. to successor. cept works because furniture and move hospital beds from Pontiac Caldwell joined MNA as presi- consumer electronics are two When businesses face the organic demands dent five years ago, following the Need growth to Independence Township. product categories that fit really of growth, purchasing goods, or even to merger of the former ConnectMichi- Senate Bill 1269, sponsored by well together,” Steve Tracey, pres- capital? make payroll, Crestmark’s service and gan Alliance, an organization he Mike Kowall, R-White Lake Town- ident of Gardner-White Furniture, innovative working capital solutions can be had also led, into the association. ship, is believed to — among other said in a statement. “In fact, the the answer. things — benefit Flint-based Under his watch, MNA has fo- first time we offered a free TV with McLaren, which wants to transfer cused on training the state’s non- the purchase of furniture, the cus- Providing accounts receivable financing and 200 beds from its Pontiac hospital profits in advocacy and in develop- tomer demand was overwhelm- asset-based lending to small- and mid-sized to a proposed new hospital near ing best practices for helping to ing.” businesses nationwide for over 15 years. engage people civically and phil- Clarkston in Oakland County. The Gardner-White and Minneapo- anthropically and for managing Michigan Department of Community lis-headquartered Best Buy have Contact us today! volunteers. Health denied McLaren’s applica- collaborated since 2009 on elec- — Sherri Welch Scott Frederick tion to transfer the beds in June. tronics and furniture combina- Matt Dekutoski Bed transfers are currently re- www.crestmark.com tions, according to a news re- 888.999.8050 Anntreal Hemmingway-Smith stricted to within two miles of an lease. existing hospital; Kowall’s legisla- Justice Dept. asks hospitals — Ryan Kelly tion would establish an eight-mile radius for relocation. Construc- to check defibrillator surgeries tion would have to commence Many hospitals in Southeast within one year. Michigan have received an email Other changes in the bill include from the U.S. Department of Justice expanding the 11-member certifi- that asks them to examine any in- cate of need commission to 13 by appropriate implantable defibril- adding two public members, one of lator surgeries on Medicare pa- whom must serve as chairman. tients. Those new appointees must be In an unusual request, the de- members of the general public who partment also wants the hospitals do not have an ownership interest to identify the number of improper in or a contractual relationship surgeries and estimate potential with a health facility and who do penalties under the federal False not hold, or did not hold within the Claims Act. 12 months preceding their appoint- Officials for Beaumont Health ment, a material financial interest System and Detroit Medical Center, in the provision of health services. which is owned by for-profit Van- Current CON members include guard Health Systems Inc., have ac- health care, corporate and labor knowledged receiving the Justice union representatives. Department inquiries. — Jay Greene Officials for Henry Ford Health System and St. John Providence Michigan Nonprofit’s Caldwell Health System said they have not received the communication from to join Mott Foundation the Justice Department. One of Michigan’s nonprofit The implantable defibrillators, leaders is stepping down to take which cost about $40,000 each, reg- the reins of a national grant pro- ulate irregular heart rhythms. gram. Over the past two years, Justice Michigan Non- Department lawyers have investi- profit Association gated hundreds of unnecessary President Kyle surgeries related to the devices Caldwell plans to and have been seeking monetary leave the organi- damages, which allows for up to zation at year’s triple the amount under the False end to become Claims Act. director of the — Jay Greene Flint-based Charles Stewart Caldwell Mott Founda- Gardner-White Furniture to open tion’s Pathways Out of Poverty program. in two area Best Buy stores “Mott is very much aligned Gardner-White Furniture Co. Inc., with my values; it’s a great growth the Warren-based furniture chain, opportunity for me and for MNA,” announced it will open locations said Caldwell, 48. inside of Best Buy stores in Bloom- MNA “is strong and will contin- field Township and Novi. ue to define and exemplify extraor- Each store-within-a-store — at

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Page 20 CRAIN’S DETROIT BUSINESS September 17, 2012 CALENDAR

TUESDAY County prosecutor; Barbara man, Global LT; Maureen Huber, CFO a.m. Oct. 5. Medical Main Street. With McQuade, U.S. attorney, Eastern Dis- CRAIN’S LAUNCHES and managing director, Trubiquity; L. Brooks Patterson, Oakland County SEPT. 18 trict of Michigan; and others. Wayne Ronia Kruse, president and CEO, executive, Thomas Novelli, Medical De- State University main campus, De- OpTech LLC; Anna Maiuri, principal vice Manufacturers Association, and ESD Master Series — Proactive Project troit. Free. Contact: Francine CIO CONFERENCE SEPT. 27 and energy, environmental and regu- others. Royal Park Hotel, Rochester. Management. 8 a.m.-5 p.m. Engineer- Wunder, (313) 577-8155; email: Hear a dynamic cast of speakers latory practice group leader, Miller, $95 includes all events. Contact: Nicole ing Society of Detroit. With Christo- [email protected]; website: at Crain’s inaugural CIO Canfield, Paddock and Stone PLC; Thomson, (248) 858-7995; email: pher Webb, institute director, ESD. www.events.wayne.edu. Conference 2-7 p.m. Sept. 27 at moderated by Julie Garrisi, manager [email protected]; website: ESD headquarters, Southfield. $125 Crain’s Detroit House Party. Afterglow The Fillmore, Detroit. Speakers will government and community rela- www.medicalmainstreet.com. ESD members, $10 off with a group 7:30-10 p.m. Crain’s Detroit Business, include Robert Childs, chancellor, tions, Meritor Inc. MSU Management or multi-course registration, $150 non- Michigan State Housing Development National Defense University Education Center, Troy. $18 Troy members, $209 to attend and join Global Automotive and Energy Summit Authority. The Roostertail, Detroit. $85 Information Resources chamber members, $23 nonmembers. — Economic Parity: One Voice, One ESD at a 50 percent discount on first Contact: Jaimi Brook, (248) 641-8151; at the door. Contact: (313) 446-0300; web- Management College; David Behen, Goal. 8 a.m.-9 p.m. Oct. 3, 9 a.m.-1 p.m. year’s membership. Contact: email: [email protected]; site: www.crainsdetroit.com/events. CIO, state of Michigan; Steve Oct. 4. Rainbow Push Automotive Leslie Smith, (248) 353-0735, ext. 152; website: www.troychamber.com. email: [email protected]; website: Carrington, senior vice president Project. With Steve St. Angelo, vice www.esd.org. and CIO, Valassis Communications president of manufacturing, Toyota FRIDAY Inc.; Greg Davidson, CIO, Urban HealthcareNext: Career Positioning Motor Engineering & Manufacturing SEPT. 21 Science; Steven Robert, CIO, Proactively Developing Your Profes- N.A.; Diana Tremblay, vice president Disney Institute. 8 a.m.-5 p.m. Sept. 18- Billhighway, and others. sional Career. 7:30-10 a.m. Sept. 27. In- of manufacturing, General Motors Co. 19, Michigan First Credit Union. An DEC Luncheon. 11:30 a.m.-1:30 p.m. De- forum. With Elaine Coffman, princi- North America; Judge Greg Mathis; educational program for service and troit Economic Club. With Mark Em- The summit will offer interactive pal, practice leader, McGraw, Peter Brown, publisher and editor of leadership excellence. Michigan First mert, president, National Collegiate sessions, meetings with innovative Wentworth; Michael Duggan, CEO, Automotive News; and others. MGM Credit Union headquarters, Lathrup Athletic Association. Ford Field, De- solution providers and networking Detroit Medical Center; Kathy Oswald, Grand, Detroit. $275 includes meals, Village. Sessions $750 together or $399 troit. $45 members, $55 guests of mem- opportunities with peers and senior vice president and chief human sessions and awards reception. Con- separately. Contact: Luke Capizzo, bers, $75 nonmembers. Contact: (313) potential customers. resource officer, Henry Ford Health tact: Alfreda Weathers, (313) 842-3883; (248) 258-2333; email: lcapizzo@ 963-8547; email: [email protected]; Tickets are $99 for current CDB System; Luanne Thomas Ewald, vice website: www.rainbowpush.org. identitypr.com; website: www. website: www.econclub.org. subscribers, $85 for those in president, DMC Children’s Hospital of michiganfirst.com. Michigan; and Mary Zuckerman, exec- groups of 10 or more, $125 for DiversityNext Kick-Off Event. 8-10 a.m. utive vice president and COO, Detroit nonsubscribers, and $123.50 in a Oct. 4. Inforum. DiversityNext is a COMING EVENTS special CDB subscription offer. Medical Center. DMC Children’s Hos- pital, Resident Auditorium, Detroit. network of professionals representing THURSDAY Commercialization Breakfast Panel. For more information, call (313) $10 Inforum members; $20 nonmem- all industries, dedicated to promoting SEPT. 20 8:30-10:30 a.m. Sept. 26. Macomb-OU 446-0300 or go to bers; RSVP with payment by Sept. 20. the advancement of women in the Incubator. With Francis Criqui, princi- www.crainsdetroit.com/events. Contact: (877) 633-3500; website: workplace through innovative think- FOCIS presents: City Under Siege: A pal and PMO; Robert Horvath, vehicle University Forum on the Crime Crisis www.inforummichigan.org. ing and sharing of best practices. Mer- launch lead; James Masiak, principal Detroit Chapter. With Lin Cummins, itor Inc., Troy. Free members, $25 in Detroit. Noon-7 and product technology; Margaret p.m. Sept. 20; 9 president and CEO, Lin Cummins nonmembers. Contact: (877) 633-3500; Palmer, business development officer; Connections Inc. Birmingham Bloom- Fall Engineering & Technology Job website: www.inforummichigan.org. a.m.-5:30 p.m. and John Rupp Sr., principal and pro- Fair. 2-7 p.m. Oct. 1. Engineering Soci- Sept. 21. The Fo- field Art Center, Birmingham. $28 duction processes, Technology High- AWC member, $35 nonmember. Con- ety of Detroit. Suburban Collection rum on Contem- DEC Luncheon. 11:30 a.m.-1:30 p.m. way. Macomb-OU Incubator at Veloci- tact: (866) 385-1784; email: info@ Showplace, Novi. Free ESD members, porary Issues in Oct. 9. Detroit Economic Club. With ty Center, Sterling Heights. Free. womcomdetroit.org; website:www. $15 nonmembers (includes a one-year Society at Wayne Contact: Joan Carleton, (586) 884-9324; John Zogby, managing director, JZ State University. womcomdetroit.org. membership to ESD; offer good for email: [email protected]. first-time members only). Contact: Analytics. Detroit Athletic Club, De- With Ralph God- Top of Troy: Troy’s Women of troit. $75 nonmembers, ticket dis- (248) 353-0735; website: www.esd.org. bee Jr., chief, De- Influence. 8-9:30 a.m. Sept. 27. Troy counts available for DEC members. troit Police De- Lin Cummins Shares Tools for Chamber of Commerce, Health Al- Contact: Maggie Sisco, (248) 626-0006; partment; Kym Success. 6-9 p.m. Sept. 27. The Associ- liance Plan. With Hortensia Neely Al- Inno-Vention Conference. 6:30-8:30 p.m. email: [email protected]; Worthy, Wayne Godbee ation for Women in Communications bertini, owner, president and chair- Oct. 3, 7:30 a.m.-4 p.m. Oct. 4 and 9-11 website: www.econclub.org.

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Page 22 CRAIN’S DETROIT BUSINESS September 17, 2012

BUSINESS DIARY ACQUISITIONS Renaissance Center, Detroit, to its ros- ment, resident and property Drive, Suite 400, Brighton. Telephone: www.formcode.com. ter of social media clients. operation services, announced the (734) 662-5544. Website: Huron Capital Partners LLC, Detroit, Hay There Social Media LLC, Birming- opening of a new office at 500 E. Wash- www.prservices.com. announced it has sold its interest in BrassCraft Manufacturing Co., Novi, ham, launched Saving Face for Par- ington St., Ann Arbor. Website: Labstat International ULC, Kitchener, chose Big Rivers Marketing LLC, Fen- ents of Tweens, a social media tool kit www.nwpsc.com. Ontario, through its holding compa- ton, Mo., to represent it throughout NEW PRODUCTS for parents providing information to ny, Apex Laboratories International southern Illinois and eastern Missouri. The Sargent Consulting Group LLC, Bright House Networks, Livonia, has guide 8- to 14-year-olds in making Inc. Apex was recapitalized by Alaris C & B Machinery Co., Livonia, was se- Chicago, Ill., a firm specializing in launched its Whole House Digital smart online decisions. Website: Royalty Corp., Calgary, Alberta, a pri- lected by Klein Tools Inc., Lincolnshire, forensic accounting and financial in- Video Recorder in Detroit. Website: www.haytheresocialmedia.com. vate investment firm, and Labstat Ill., to provide a double disc grinder vestigations, opened a new office at www.brighthouse.com. management. used in the manufacture of pliers. 615 Griswold St., Suite 723, Detroit. STARTUPS Telephone: (313) 986-1300. Website: CFI Group USA LLC, Ann Arbor, a cus- FutureNet Security Solutions, a sub- The U.S. Army Contracting Command, www.sargentconsultinggroup.com. tomer experience management com- Unified Smiles LLC, a company to sup- sidiary of FutureNet Group Inc., De- Warren, awarded General Dynamics Ar- pany, announced the official rollout of Dietz Trott LLC, Farmington Hills, an- port independent dental practices by troit, announced that it has reached mament and Technical Products, Char- its new Document Management Mod- offering a portfolio of services ranging lotte, N.C., a business unit of General nounced it will open a Cleveland- an agreement with Smith & Wesson ule. The module is fully integrated from savings on products and services Dynamics Corp., West Falls Church, based office. Holding Corp., Springfield, Mass., to with CFI Group’s Customer Feedback to seminars and networking opportu- acquire the assets of the company’s Va., a $6.1 million delivery order to pro- Insights Platform. Website: nities, at 300 E. Long Lake Road, Suite perimeter security division, Smith & duce more than 25 Army standard fami- MERGERS www.cfigroup.com. 145, Bloomfield Hills. Telephone: Wesson Security Solutions Inc., ly expandable mobile shelters. Wilcox Professional Services Inc., (248) 633-2460. Website: Franklin, Tenn. PublicCity PR LLC announced the ad- Farmington Hills, has merged with NEW SERVICES www.unifiedsmiles.com. dition of The Townsend Hotel, Birm- Bradley J. Butcher & Associates PC, University of Michigan Health System, ingham, to its client roster. CONTRACTS Gaylord, an architecture and plan- Ann Arbor, announced UMSkinCheck, KUKA Systems Corp. North America, Brendy Barr Communications LLC, ning firm. a new free skin cancer mobile app for Sterling Heights, has been named sup- Rochester Hills, was chosen to handle iPhone and iPad, also available to DIARY GUIDELINES plier partner for developing the manu- public relations initiatives for this MOVES download on iTunes. summer’s opening of Sky Zone Indoor Send news releases for Business facturing line for the new Bell 525 Re- Jackson and Partners LLC, an adver- Domino’s Pizza Inc., Ann Arbor, re- Trampoline Park, Canton Township. Diary to Departments, Crain’s lentless super medium-class tising agency, moved from Las Vegas leased the Domino’s Pizza app into the Detroit Business, 1155 Gratiot commercial helicopter by Bell Heli- Burroughs Inc., Plymouth, has entered to 41 Burroughs St., Suite 105, Detroit. Amazon Appstore for Android. Ave., Detroit, MI 48207-2997 or copter Textron Inc., Fort Worth, Texas. into an agreement with Ellsworth Sys- Website: www.jackson-partners.com. WXYZ-TV, Southfield, announced that tems LLC, Franklin, Tenn., to distrib- send email to cdbdepartments@ That’s All LLC, West Bloomfield Town- The Detroit Impression Co. Inc., dba this fall it will introduce Bounce TV, a ute and provide support services for crain.com. Use any Business Diary ship, a publisher of humorous greet- Detroitprinter.net, moved from 450 W. broadcast network for blacks. self-service and desktop coin-handling item as a model for your release, ing cards, retained Out of the Box Li- Fort St. to 1111 Bellevue, Detroit. Tele- Website: www.wxyz.com. censing, Calabasas, Calif., as its technology in the United States. and look for the appropriate phone: (313) 784-9292. Email: detroit , Troy, has de- licensing agent. Formcode Design Group category. Without complete [email protected]. Website: signed and launched a new website for information, your item will not run. Franco Public Relations Group, Detroit, EXPANSIONS www.detroitprinter.net. Deal LLC, Farmington Hills, a sports Photos are welcome, but we cannot announced the addition of CBRE Group NWP Services Corp., Costa Mesa, PR Services Inc. moved from 115 E. agency management firm, at guarantee they will be used. Inc., Los Angeles, and specifically the Calif., a provider of utility manage- Ann St., Ann Arbor, to 5797 Felske www.thedealllc.com. Website:

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Page 24 CRAIN’S DETROIT BUSINESS September 17, 2012

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE

CONSULTING Katie Mullin to marketing director, Hennessey Capital LLC, Rochester,

INTELLECTUAL PROPERTY ATTORNEYS Richard Lane to IN THE SPOTLIGHT from interactive content manager, director for the Flagstar Bank, Troy. Inforum has named Jacqueline military and de-

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September 17, 2012 CRAIN’S DETROIT BUSINESS Page 25 Karmanos to open state’s Data: Firm gets $20M Survey: Macomb ■ From Page 3 residents want 1st ICU for oncology patients ed to look for investment capital be- Ann Arbor site used to belong to cause of the high cost of growing Thomson Reuters, and its site at Avis that business. Farms in Ann Arbor was owned by retail growth BY JAY GREENE setting,” Bepler said. “This is a capital-intensive busi- Fidelity Information Systems. CRAIN’S DETROIT BUSINESS The ICU will admit patients ness when you’re buying a lot of Klein said the company will also Retail businesses could with medical servers. To take advantage of the look at acquisitions but has no prove a particularly promising The Barbara Ann Karmanos Can- oncology com- model we were building and keep up plans to be a build a center. source of economic develop- cer Institute in Detroit plans to plications and the growth rate, we needed to take “If we take over an existing site, ment for Macomb County, open the state’s only intensive those under- on some new investment,” he said. we can start servicing clients with- based on the results of a new care unit designed specifically going ad- Klein said that based on Online in 90 days, which is a lot quicker Community Climate Survey to for oncology patients Sept. 24, vanced Tech’s growth and strong market and cheaper than building,” he be released this week. said Gerold Bepler, M.D., Kar- surgery for tu- niche — it focuses on data storage said. The report, by the Macomb manos’ CEO. mor removal. for cloud-based computing in sensi- He said the company will look County Planning and Economic De- Funded in part by $3.7 million The interme- tive industries that face strict com- throughout the Midwest for loca- velopment Department, found “rein donations, the six-bed ICU is diate care unit pliance issues and close auditing, tions, in addition to locations in tail opportunities” ranked third on the fifth floor of the Karmanos is designed for such as health care, financial ser- Michigan. out of nine factors where resi- Cancer Center, located within the Bepler cancer pa- vices and e-commerce — a prospec- “We’re doing our market analy- dents expect quality of life to im- Detroit Medical Center campus at tients who need less intensive tive deal attracted investment sis right now. By the end of the prove in the county, even 4100 John R. The 8,000-square- care. bankers and offers from around the year, we’ll have a pretty good idea though it ranked fifth out of nine foot space had been used for clin- Karmanos is advertising for at country. of where we want to be,” he said. in current satisfaction levels. ical research operations that re- least 16 registered nurses for RBC Capital Markets, a New York- “The plan is to add two next year Only access to emergency cently moved to the newly full-time and part-time positions based investment banking arm of and two the following year.” medical help and recreational opened Eisenberg Center for Trans- to staff the ICU. the Royal Bank of Canada, brought Klein said the company would opportunities ranked higher in lational Therapeutics. The Karmanos Cancer Insti- NPG to the table. like to have 10 data centers in 2016. residents’ outlook for the future. Bepler said Karmanos had tute is one of the nation’s 41 Na- “We started the process in the He said the company has 30 em- About 1,000 residents were sur- been renting space at DMC Harp- tional Cancer Institute-designated second quarter, and after three ployees now, plans to be at 35 by veyed between May and July. er University Hospital for the ICU comprehensive cancer centers. months he had narrowed it down to year’s end and expects to have The survey also found that and a five-bed intermediate The nonprofit institute sees two offers, and we closed with NPG about 70 by the end of 2014. about 80 percent of residents care unit, which it opened earli- about 6,000 patients each year on Aug. 31,” said Klein. Employees NPG is a family-owned business have no plans to leave the coun- er this year. Karmanos also and operates on a budget of $265 were notified last week. that owns 40 television and four ra- ty within five years, an outlook uses a lower-acuity ICU for pa- million. The company currently has three dio stations, in Arizona, California, that did not vary much by age tients who do not need critical The institute also conducts data centers, two in Ann Arbor and Colorado, Idaho, Kansas, Missouri, group. care. more than 700 cancer-specific one in Flint Township that was for- Oregon and Texas; 14 daily, weekly Al Lorenzo, assistant Ma- “Harper’s ICU is geared for scientific investigation pro- merly a data recovery center for or monthly publications in Mis- comb County executive, said patients with all kinds of dis- grams and clinical trials each EDS. Klein said he will look to buy souri and Kansas; and two data the county plans to use the re- eases. Our ICU has been de- year. data centers from companies that storage centers in Missouri. port, which comes out Wednes- signed for cancer patients (with Jay Greene: (313) 446-0325, no longer need them, which is how Tom Henderson: (313) 446-0337, day, as a tool in courting new a ventilator unit). We will be [email protected]. Twitter: the company has acquired each of [email protected]. Twitter: business development. able to deliver better care in that @jaybgreene its current centers. Its downtown @tomhenderson2 — Chad Halcom

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Page 26 CRAIN’S DETROIT BUSINESS September 17, 2012 Innovation: New exec targets spinoffs ■ From Page 3 omy Initiative to evaluate technolo- in strengthening innovation in a gy capabilities at such local insti- region is the addition of people tutions as the Detroit Medical Cen- I said to myself, who are proficient at the difficult ter, Henry Ford, Wayne State “ process of turning technology into University, NextEnergy and ‘He gets health real products, companies and jobs, TechTown. and Mark brings a lot of experi- Based in part on Cotic- care, he gets ence in that area,” he said. chia’s evaluations, last “Between the DMC, Henry Ford March the NEI announced the scientists Hospital, Wayne State, CCS, Tech- more than $30 million in Town, NextEnergy and others, grants to area institutions and the there is a growing pocket of inno- as part of a 10-year program vation in Midtown that has the it billed as the Regional In- physicians. chance to be an incredibly power- novation Network. He has the ful collaborative community. I’m “We had to make him fall in love hoping Mark can play an impor- with us,” joked Bob Riney, presi- background. This tant role in making that happen,” dent and COO of the health sys- he said. tem, who said he first heard of could work.’ John Shallman, director of Beau- Coticchia about a year and a half ” mont Commercialization, a unit of ago from Dave Egner, NEI’s execu- Bob Riney, the Royal Oak-based Beaumont Re- tive director and president and Henry Ford Health System search Institute of the Beaumont CEO of the Detroit-based Hudson- Health System, said he welcomed Webber Foundation. into an institution and build an or- collaboration with Henry Ford and BlueWater The NEI was formed in 2008 as a ganization second to none,” said hearing from Coticchia. Technologies’ $100 million initiative by 10 re- Coticchia. “I told Bob, ‘Look, a lot “There’s a multitude of reasons gional and national foundations to of places say they want to do this why organizations like ours can boost economic activity in South- stuff, about most don’t want to do work together to help each other. Annual 2012 east Michigan. it right.’ This is something we’re absolutely Soon after Egner’s call, Riney “I needed to be convinced they excited about. There’s no down- Tech Expo and Coticchia found themselves at were serious. I wouldn’t have done side. There are no drawbacks,” he a meeting of area health care exec- this if I didn’t think we had the said. utives and doctors. recipe for success here. This stuff Riney said collaborating with Join more than 500 attendees and 30+ “There was a bunch of people is hard work, and you need people Beaumont and DMC “is absolutely unique technology suppliers at the metro there and Mark was talking and I passionate about it.” essential. We believe organiza- Detroit event of the year! said to myself, ‘He gets health care, Part of the proof for Coticchia tions can compete for patients and he gets the scientists and the that Henry Ford was serious was still collaborate and co-exist. We’ll physicians, he has the back- Riney’s commitment of a fund compete in the marketplace, but BlueWater’s Annual Tech Expo showcases ground. This could work,’ ” re- raised internally of up to $10 mil- we can get better results in innova- the latest solutions to enhance your called Riney. “I didn’t know what lion to fund operations at Innova- tion and commercialization ‘work’ meant, whether it was con- tion Institute startups for their through collaboration.” events, streamline communications, and sulting with us or as a member of first five years. Riney said he ex- Coticchia said he has begun dis- enforce your brand using unique and the team, but I wanted him.” pects the fund to grow substantial- cussions with people at universi- At the time, Henry Ford was ly from personal investments by ties and companies around the memorable approaches. about to announce the creation of doctors and health care executives country that he’s worked with be- the Innovation Institute in an Al- and from local and national ven- fore about collaborating on re- Date: September 26, 2012 bert Kahn building on the health ture capital firms. search and product development, Time: 10am-7pm system’s main campus. It was in- “We’ve already had a lot of inter- including Carnegie Mellon, the tended to be a collaborative effort est from VCs,” he said. University of Michigan; the University Location: The Fillmore Detroit by local institutions, including Speaking on behalf of DMC, of California, San Diego; Stanford Uni- Free valet at the door! Wayne State University’s engineer- Chris Rizik, who serves on an ad- versity; the Massachusetts Institute ing department and the College for visory board there and is fund of Technology; New Hampshire- Food & beverages all day: cocktails begin Creative Studies, to design medical manager and CEO of the Ann Ar- based DEKA Research and Develop- devices and equipment and form bor-based Renaissance Venture Capi- ment Corp., founded by Dean Ka- at 4pm companies to make and sell them. tal Fund, said he has met with men, the inventor of the first Detroit Circus performs: 1pm – 3pm Madhu Prasad, a cancer surgeon Coticchia several times and hopes insulin pump and the Segway two- at Henry Ford, his hiring does lead to meaningful wheeled vehicle; and Columbus- Local musician Jill Jack performs: had been named collaboration between the two based Battelle, a global research 4:30pm – 7pm the institute’s Midtown health care heavy- and development organization. director, but weights. Tom Henderson: (313) 446-0337, Riney wanted “It is great news Mark is coming [email protected]. Twitter: Walk into a world of technology someone with a to Detroit. One of the key elements @tomhenderson2 that inspires ideas! background in tech transfer to · Innovative Meeting & Event Technology help with na- · Experiential Marketing Solutions tional collaborations, attract · Interactive Displays Prasad venture capital · Enhanced Corporate Office Technology funding and grants and speed up the complex process of turning a There’s more! good idea into a company that has products to sell to the market. · Networking & Collaboration Prasad agreed with Riney that · Educational Seminars Coticchia was the one to do it, but it took a while for Coticchia to · Win Great Prizes agree. · Experience the Technology He had recently left Case West- ern to form a successful consulting practice, Redwind Innovations LLC, Complimentary event! Register at: so he wasn’t looking for a job. And www.BlueWaterTech.com/Tech-Expo he needed to be convinced that Henry Ford was a large organiza- #TechExpo12 tion that wasn’t just giving lip service to claims that it was serious about changing corporate culture and serious about attempting collaboration on commercialization projects with competitors such as Beaumont Health System and the De- troit Medical Center. www.bluewatertech.com “Frankly, I had to give it a lot of thought, about whether I could go 20120917-NEWS--0027-NAT-CCI-CD_-- 9/14/2012 5:26 PM Page 1

September 17, 2012 CRAIN’S DETROIT BUSINESS Page 27 Apples: Mills squeezed Emagine: Roseville theater planned ■ From Page 3 ■ From Page 1 March, because of early spring lowed by a 12-screen theater con- lot, and we’re very happy with already owns 94 theaters in that warm weather. During an early State may make loans cept at 12 Mile at Little Mack in St. how we’ve done with (beverage country. But Glantz said he does- bloom, apple trees are suscepti- Clair Shores, which he withdrew sales) at our theaters in the Forum n’t see the recent AMC invest- ble to frosts, which happened for available to fruit industry in July. and in Livonia,” said Ryan Noo- ments or in-theater alcoholic bev- nearly two-thirds of April. “The land we’re acquiring bor- nan, director of public relations erage sales in metro Detroit as a Gov. Rick Snyder in June The weather affected the apple ders St. Clair Shores; it’s a 15- for AMC. “So it’s something we’re threat or a response to Emagine. signed a bill to make low-inter- harvest throughout the Eastern minute drive from Grosse Pointe looking at very closely.” AMC estimates at least 23 out-of- est loans available to Michigan U.S., but Michigan’s fruit belt, and has plenty of complementary Noonan wouldn’t confirm that state theaters served alcohol be- fruit growers, handlers and from Berrien County along Lake retail and easy access to I-94,” the Madison Heights theater is fore it won licensing approvals in processors that were affected by Michigan to Charlevoix, was hit Glantz said. “And all the other ar- adding a bar, but Madison Heights the spring from Sterling Heights, weather. The Legislature still the hardest, Smith said. eas in Macomb County are already City Clerk Marilyn Haley told Livonia and the Liquor Control Com- has to approve up to a $15 mil- Cider mill owners are left call- well-served or adequately served Crain’s that AMC management mission. lion appropriation that would ing extensive lists of growers, in in the theater market.” visited the city last month and is “AMC had been offering alcohol be used to reimburse banks for state and out of state, to find out The new theater is to include a going through site plan approval, in other parts of the country be- up to 5 percent of the loans. who has fruit to spare. signature 450-500 person auditori- hoping to remodel the theater and fore they started offering in De- Administering the loans are “We’re praying like hell that um that will house a larger screen open a bar by November. troit. I wouldn’t attribute their de- East Lansing-based Greenstone we get apples,” said Bob Stein- than the Imax theater at The Henry AMC will need to acquire and cision to offer necessarily to us,” Farm Credit Services and Ohio- heiser, owner of Rochester-based Ford in Dearborn. transfer a Class C liquor license Glantz said. “They are a terrific based Huntington Bank. Goodison Cider Mill. “I got enough Glantz expects to close on a pur- from outside the city to offer beer competitor, and we have great re- Greenstone, which can only to last me through September. chase agreement with First Berk- and wine sales at the Star John R, spect for them. But in decision for service growers, said it expects Then I’m going to have to get the shire Business Trust in Buffalo, N.Y., since no local escrowed licenses my movie business, I really could- to process more than 80 percent list out and call around again.” as early as this week, after the Ro- are available in the city, Haley n’t care less what my competitors of the disaster relief loans. It is Another resource for cider mill seville City Council approved a said. do.” working with Huntington Bank operators is the Michigan Vegetable new commercial rehabilitation Marketing research firm IBIS- Glantz estimates that Emagine on loans that involve processers. Information Network, a database for district for the site last month. The World last month projected a mar- Macomb could seat 2,800-3,000 peo- Up to $400,000 for individual commercial vegetable producers acquisition is subject to local site ket of very high competition ple in its 15 theaters. farmers, $800,000 for individual that the Michigan State University plan approval and an environmen- among movie theater companies He said he believes it could pro- processors and handlers, and Extension helps to maintain. tal due diligence review of the vying for only a modest 0.2 percent duce about $10 million in annual $1 million for processors with property. growth in total U.S. theater indus- revenue between ticket office, con- No bargains multiple locations would be Signature Associates Inc., South- try revenue, to $13.2 billion. cessions, beverage and other sales available under the plan. field, represents Emagine as buyer AMC alone accounts for almost after a couple of years and grow Cider mills face prices from — Ryan Kelly and Birmingham-based Broder & 20 percent of that market, with $2.4 companywide revenue to $60 mil- out-of-state suppliers that are two Sachse Real Estate Services Inc. rep- million annual revenue, and IBIS- lion, meaning the other seven lo- to three times the cost they nor- he said, ‘Yeah, I don’t know if I resents the seller in the pending World expects buyer Dalian Wanda cations would generally produce mally pay for apples in Michigan, will be able to take care of you transaction. Emagine is again us- Group Corp. Ltd. “to finance addi- about $50 million revenue. Emag- managers said. Goodison is pay- this year,’” Titus said. “That’s ing Studio 3 Architects of Indianapo- tional investment in theaters” af- ine has about 500 employees coming nearly $275 to $300 for a bulk when I began hunting.” lis, designers of its Novi, Canton ter closing on a $2.6 billion pur- panywide, more than three-quar- bin of apples, equal to 18 bushels. Trevor Barkham, who man- Township and Royal Oak theaters, chase of AMC this month. Dalian ters of them part time or seasonal. Last year, a bulk bin was $100. A ages Rochester Cider Mill, owned as project architect for Emagine Wanda is a retail and entertain- Chad Halcom: (313) 446-6796, bushel contains about 200 apples. by his parents, said his mill Macomb. ment commercial real estate con- [email protected]. Twitter: It takes around 35 apples to couldn’t afford to hire a trucking If all goes well, Glantz hopes to glomerate in Dalian, China, which @chadhalcom make a gallon of cider, which is company to pick up apples. So he complete state and local regulato- what most mills use their apples and some other employees gath- ry approvals for the theater and a for. Other apple products, like ered trucks and trailers owned pies and breads, are more expen- by the family and started making liquor license before the end of the sive, too. calls to growers down South. year, in time to start construction “Pricing has gone up across the He and others then drove to in early spring and open for busi- board in terms of anything that places like Tennessee to pick up ness next fall. “The Thanksgiving and Christ- Your Bank’s involves apples,” said Rob Nelson the apples. of Parmenter’s Northville Cider. He said the transactions were mas holiday season is a very good Whittaker has tried to coordi- tough, because everyone was time of year in the theater busi- nate the truck runs to save the scared of getting burned. ness. Summer is also obviously a very good time, but if we’re fortu- Not Lending? most money, often ordering “It’s hard to do business with deadheads — trucks traveling people a couple hundred miles nate we can be operating here by back to Michigan empty — to away that you’ve never met be- October, use that time of year to pick up apples on the way. fore,” Barkham said. “There is a work out any issues and then have But a truck from out of state can lot of tension there.” all oars in the water by Novem- generally carry only half of what ber.” owners like Whittaker are used to Overlooked source The Roseville site would put Emagine Macomb just three miles carting in from Michigan growers. One region that may be over- Truck weight limits in Michigan from the AMC Star Gratiot 21 in looked in bulking up the local Clinton Township. AMC is ex- are nearly double that of many supply is Washington state, ac- panding its own use of in-theater states — like Tennessee, where the cording to Phil Schwallier, liquor in Detroit after trying alco- apples are coming from, said Mike Grand Rapids horticulture agent hol service for the first time in Titus, owner of Rochester Hills- for the MSU Extension. Washing- Michigan over the summer. Previ- based Yates Cider Mill. ton had a 20 percent increase in ously, Emagine was the only such From out of state, Titus can re- apple production this year. company in the state offering al- ceive a refrigerated trailer of 36 Though Washington is three coholic beverages — at its the- bulk-bins or an open load of 50 times farther away than Pennsyl- bulk bins. If he were ordering vania or Tennessee, which means aters in Novi, Canton Township, from Grand Rapids or elsewhere higher freight prices, the apple Woodhaven, Birch Run, in West Michigan, he could get 96 prices will be much lower than in Rochester Hills and Royal Oak. ours are bulk bins per load. The differ- the nearby Eastern states. The Clio Square Cinema is also . ence increases shipping prices Also, Schwallier said, buyers owned by Emagine but does not Call for a consultation. offer adult beverages. sharply for most mill owners. are guaranteed stock — whereas Loan amounts: $1,000,000.00 and above. Titus is getting about a third of in Pennsylvania, for instance, Kansas City, Mo.-based AMC his apples from out of state — opened its MacGuffins in-theater buyers might come back with s Investment Real Estate s Accounts Receivable places like Tennessee, North Car- only half the expected purchase. lobby bar and lounge at the AMC s Owner Occupied Real Estate s Equipment olina and Pennsylvania. A truck To cut the cost of freight, buyers Livonia 20 in June and the AMC s Lines of Credit s Bank Workouts run costs him $3,200 plus the price might also look to trains, he said. Forum 30 in Sterling Heights in of the apples. He said that’s about In any scenario, Schwallier July, its first such locations in the double what he normally pays. added, Michigan will lose some region, making AMC the first the- Titus normally gets apples market share to out-of-state com- ater company other than Emagine from Jack Brown Produce Inc., a petitors. in the adult beverage market. Sparta-based co-op. “It will take them two, three or MacGuffins offers drinks priced After the April freeze, Titus five years to recover from the from $5 to $9.75 and desserts and got concerned and called the sup- stress that they’ll be under,” he appetizers. AMC is going through plier, even though he said it was- said, adding that partly because of local site plan approvals in Madi- n’t apparent at first to most grow- the buy-local movement in Michi- son Heights to open a third lounge 800.509.3552 ers and mill owners how much of gan, the majority of suppliers in at the AMC Star John R by Novem- www.eclipsecapitalgroup.com the crop was lost. 2207 Orchard Lake Road, Sylvan Lake, MI 48320 the state are financially sound ber. “Since 1997” “When I called him in April, and can withstand the damage. “Detroit is a market we like a 20120917-NEWS--0028,0029-NAT-CCI-CD_-- 9/14/2012 5:27 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS September 17, 2012 Blues: Attorney general seeks review of Blue Cross’ assets ■ From Page 1 Under Snyder’s proposal, Blue Cross would transfer about $1.5 bil- WHAT A CONVERSION WOULD MEAN lion of its estimated $2.78 billion Ⅲ customers could save about No shortage of opinions surplus to fund a new nonprofit As one of about 20 mutual $200 million a year in premiums with a mission that is not yet clear- companies in Michigan, Blue Cross would be owned by the company’s because the subsidies Blue Cross ly defined. (See story at right.) The approximate 4.4 million are required to collect to fund other final amount would be set in the policyholders in Michigan and lines of coverage will end, on Blues’ mission, funding legislative process. 1.1 million policyholders in other according to Blue Cross. “We want to make sure there is states. The Blues board must give Ⅲ Legislation would ensure that The debate has begun over the lenges. They include reducing in- enough funding (for the new com- final approval to legislation that Blue Cross continues as a carrier of mission and funding of the pro- fant mortality, childhood and pany) to fulfill the charitable mis- would allow the conversion to a last resort until Jan. 1, 2014, at posed nonprofit that would be adult obesity, hypertension and sion going forward,” Yearout said. mutual. which time new federal laws will formed early next year if Blue Cross helping seniors stay in their Under state statute, Act 169 of Ⅲ A new nonprofit would be formed require all insurers to offer Blue Shield of Michigan becomes a homes and avoid nursing homes. 1965, Schuette has the authority to early next year with a mission coverage to anyone regardless of nonprofit mutual health insurer. “Michigan has to be a healthier designed to improve the health of health status. challenge Blue Cross’ conversion Under a plan announced last state,” said Haveman, who re- the people of Michigan. It is Ⅲ Blue Cross would lose its state into a nonprofit mutual if he be- week by Gov. Rick Snyder, Detroit- signed from the Blue Cross board lieves the transaction will not re- expected Blue Cross would pay at tax exemptions, worth an estimated least $1.5 billion over 18 years into based Blue Cross would transfer in August before starting his new sult in a fair value of the charitable $100 million to $112 million, the company, but the final amount according to various estimates. As an estimated $1.5 billion over 18 post in September. “If you look at assets, said Joe Aoun, health care would be determined by the a 501(m) corporation, Blue Cross years — about $83 million annual- our state, we are not near the top attorney with Ann Arbor-based Legislature. Attorney General Bill has paid federal income taxes ly — into a new nonprofit entity. when it comes to health of chil- Nuyen, Tomtishen and Aoun PC, Ann Schuette plans to commission an since 1986. In 2011, Blue Cross The entity is described as a dren, access to care, stress on Arbor. For example, if the asset re- audit of the Blues’ nonprofit assets paid $74 million in federal income “nonprofit company,” but that has families, early identification of view of Blue Cross finds the compa- to determine their value. taxes on net income of not been defined. It also hasn’t autism and diabetes.” ny is worth $6 billion and only $1.5 Ⅲ Individuals and small-business $114.4 million. been said whether the nonprofit While the suggestions are all billion is being transferred into the would be a federal 501(c)(3) or a worthy projects, Aoun said, the new nonprofit, Schuette could sue UILDINGS OWNED BY LUE ROSS LUE HIELD trust or special nonprofit creation mission of the nonprofit should to block the transaction, Aoun said. B B C B S of the state. It would be overseen reflect the original purpose of Sara Wurfel, Snyder’s press sec- Ⅲ Detroit: 600 E. Lafayette Blvd., Ⅲ Marquette: 415 S. McClellan by a nonprofit board with a com- Blue Cross: provide affordable retary, said enabling legislation on 758,000 square feet, Detroit Ave., 15,000 square feet, munity advisory committee mak- health insurance coverage for the plan will be introduced this Service Center Marquette Service Center ing grant recommendations. everyone in Michigan. week by Sen. Joe Hune, R-Ham- Ⅲ Detroit: 500 E. Lafayette Blvd., Ⅲ Lansing: 232 S. Capitol Ave,, But what activities or pro- Haveman said he thinks Blue burg Township, chairman of the 160,000 square feet, Bricktown 193,000 square feet, Lansing grams would the nonprofit fund? Cross will continue its existing Senate Insurance Committee. Customer Service Center Capital Building, former Accident Fund Holding Inc. site. And how much of Blue Cross’ mission if it becomes a mutual. The committee will hold a hear- Ⅲ Detroit: 441 E. Jefferson Ave., 178,000 square feet, Jefferson Ⅲ Grand Rapids: 611 Cascade ing Wednesday morning to discuss $2.78 million surplus should be “Blue Cross is already doing Building Parkway, 79,000 square feet, The the bill and hear a presentation transferred into it? these things. They have a fairly Ⅲ Lyon Township: 53200 Grand Cascade Building, Blue Care from state Insurance Commission- Rick Murdock, executive direc- sophisticated social mission, and River Ave., 166,000 square feet, Network tor of the Michigan Association of I don’t see them backing off that er R. Kevin Clinton. Lyon Meadows Conference Center The bill would spell out the de- Health Plans, said Blue Cross one bit,” he said. tails of the deal negotiated over the Source: Blue Cross Blue Shield of Michigan should be required to divest its Former Attorney General past six months between the Sny- accumulated surplus gained over Mike Cox, now president of The der administration and Blue Cross of last resort, Blue Cross is the the past 32 years while governed Mike Cox Law Firm PLLC in Livo- officials. “This will allow Blue BLUES’ ESTIMATED VALUE only insurer in Michigan that is under Public Act 350. nia, agreed that the nonprofit Cross to transition into a nonprofit required by law to write policies Murdock said Snyder’s pro- formed by Blue Cross assets mutual insurance company like OF TAX EXEMPTIONS, 2008 for anyone will- posed $1.5 billion Blue Cross con- should be legislatively required many others in Michigan that are Figures were projected in a 2007 ing to pay its tribution to the new nonprofit is to expand patient access to care. mutuals,” Snyder said at a press report by Anderson Economic Group premiums. too low. Cox said the nonprofit should conference last week. LLC, East Lansing, based on 2006 “Blue Cross “That is less than $100 million fund free clinics, give low-income “Blue Cross will be a market- and 2007 data. No more recent has long advo- a year. That number probably people rate relief, increase the place competitor, working under estimate has been conducted. Also, cated for all should be more,” Murdock said. number of physicians by funding normal insurance company regula- the Michigan Business Tax was health insurers “They can pay that off from earn- hospital graduate medical educa- phased out last year and replaced tory rules,” he said. “They can to play by the ings off their surplus.” tion programs and pay hospitals with a 6 percent corporate tax. Blue compete with everyone else, and of- same rules,” Joe Aoun, a health care attor- and doctors higher reimburse- Cross told Crain’s that it is Daniel Loepp, fer lower costs and better choices.” comfortable with these estimates. ney with Ann Arbor-based Nuyen, ment rates, especially those who Blue Cross’ CEO, Tomtishen and Aoun PC, said that treat the poor. Rep. Pete Lund, R-Shelby Town- Tax Amount Loepp ship, chairman of the House Insur- said in a state- as part of its fiduciary responsi- Aoun said the new nonprofit Michigan ance Committee, said he will hold ment. “This plan is not exactly what bility, the Blue Cross board also also should earmark money to Business Tax $85.7 million hearings before a bill is introduced Blue Cross would have proposed, should independently evaluate help the state fund an expansion Real and personal to allow a full discussion of the but it does create a fair and bal- assets and the amount it should of Medicaid under the new health property taxes $22.1 million merits of Blue Cross’ transition anced set of rules for health insur- contribute to the new nonprofit. care law, which could add more Sales and use into a mutual. ance.” “It is important that a trust be than 500,000 currently uninsured taxes $4.2 million But Snyder said he expects to Hetzel said as a Michigan-based created if Blue Cross is going to residents. Total $112 million have legislation approved and on mutual, Blue Cross would continue convert into a mutual, but the an- Some Republican legislators in his desk before the end of the year its mission that includes investing nual amount they are talking Michigan are balking at the provi- riers to cover all people, regardless to give Blue Cross time to make in projects that improve patient about is peanuts in the world of sion in the Patient Protection and of whether they have a pre-exist- changes under the Patient Protec- health outcomes. elephants,” Aoun said. Affordable Care Act that would al- ing medical condition. tion and Affordable Care Act. “There are 20 other nonprofit “Blue Cross has invested assets low states to expand Medicaid pro- Primarily because of health care Snyder’s timetable could allow mutuals that exist in Michigan,” of $6 billion. If it earns 1.4 percent grams to 133 percent of the federal reform, Snyder last fall called for a for the Blue Cross board, which he said. “We are very comfortable on those investments, they fully poverty level — or $29,700 for a review of Public Act 350, the 1980 must approve any corporate with that structure as long as we cover the $83 million-a-year pay- family of four and $14,400 for an in- legislation that governs Blue Cross changes, to review the bill in De- are in a regulatory system as the ments” to the nonprofit, Aoun dividual — because the state even- as the state’s of- cember or January. This timing others (insurance companies).” said. “The amount should be sub- tually would need to contribute ficial insurer of would give the insurer time to pre- In the late 1980s, Blue Cross lob- stantially more than $1.5 billion.” matching shares. last resort. pare in early 2013 to create specific bied to convert into a nonprofit During a press conference last The federal government would Steve Hilfinger, insurance products that would be mutual, but then-Michigan Attor- week announcing the Blue Cross pay 100 percent of the additional director of the sold on a federal-state private ney General Frank Kelley opposed plan, Snyder said the new non- costs for the first three years, state Department it and the plan died. health insurance exchange start- profit should concentrate on help- through 2017. States would be of Legislative and Over the past 20 years, some 17 ing in October. ing improve the health of children paid a declining share through Regulatory other Blue Cross plans have con- “We believe that Michigan will and seniors, improve preventive 2020, but the federal government Affairs, said “the verted into mutual insurers, in- be much better off with a fair and services, lower mortality rates still would pay at least 90 percent. governor wants cluding Blues plans in Arkansas, balanced regulatory system early and make Michigan a more com- Don Hazaert, director of Michi- in 2013, where all companies are to modernize Florida, Hawaii and Louisiana. Hilfinger petitive state for job growth. gan Consumers for Healthcare, said operating under the same ap- that regulatory Two of those plans have converted Snyder said the nonprofit also the new nonprofit also should proach to rate setting,” said Andy structure of Blue Cross that has re- into investor-owned companies. should fund initiatives that “fos- help increase physician reim- Hetzel, Blue Cross’ vice president mained the same over the last 32 While Snyder first proposed the ter healthier lifestyles, provide bursement rates and expand of corporate communications. years.” possibility of Blue Cross convert- better access to health care and adult dental services. However, the Snyder adminis- Clinton said the state Office of Fi- ing into a for-profit mutual, Hetzel improve public health.” “This proposal needs to im- tration also is working on a transi- nancial and Insurance Regulation will said the Blue Cross board and man- Jim Haveman, director of the prove and expand health care tion plan that would require Blue continue its oversight of Blue Cross agement has always maintained Michigan Department of Community coverage and access in Michi- Cross to continue as the carrier of under PA 350 now and through the that its future is as a nonprofit. Health, said the new nonprofit gan,” Hazaert said, “or it is not a last resort until Jan. 1, 2014, at state insurance code if the company Jay Greene: (313) 446-0325, also could help the state address good deal for consumers.” which time the federal health care eventually becomes a mutual. [email protected]. Twitter: some of its top public health chal- — Jay Greene law will require all insurance car- As the state’s designated insurer @jaybgreene 20120917-NEWS--0028,0029-NAT-CCI-CD_-- 9/14/2012 5:27 PM Page 2

September 17, 2012 CRAIN’S DETROIT BUSINESS Page 29 Prism: Critics wary More work, fewer workers www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] gen, Texas. Revenue has grown Prism sources many of its raw gree,” he said. “But these jobs re- ASSOCIATE PUBLISHER Marla Wise, (313) 446- of Blue Cross from $5 million in 2009 to $12 mil- materials, including resins, from quire more skill, and I see us (the 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- lion in 2011, with projections of Florence, Ky.-based Ticona’s plant auto industry) moving to a more 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- $18 million this year and $22 mil- in Texas. skilled workforce.” 1622 or [email protected] lion in 2013. Dave Andrea, senior vice presi- MANAGER, DIGITAL CONTENT STRATEGY Nancy conversion But what increased efficiency dent of industry analysis and eco- Hanus, (313) 446-1621 or [email protected] DEPUTY MANAGING EDITOR Daniel Duggan, (313) and further automation mean for nomics at the Short on skills? 446-0414 or [email protected] Competing health insurers, con- SENIOR EDITOR Bob Allen, (313) 446-0344 or the economy remains a debated Troy-based A skilled labor workforce [email protected] sumer groups and other groups issue. Original Equip- shortage looms as productivity WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- are critical of plans for Blue Cross ment Supplier increases. 8158 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or Blue Shield of Michigan to change its Association, In April, Mark Tomlinson, exec- [email protected] corporate structure into a nonprof- Election debate said the manu- utive director of the Dearborn- SENIOR DESIGNER Jeff Johnston, (313) 446-1608 it mutual insurance company. or [email protected] President Barack Obama and facturing in- based Society of Manufacturing Engi- DATA EDITOR Brianna Reilly, (313) 446-0418, Groups contacted by Crain’s for Republican presidential candi- dustry, specifi- neers, called the skilled labor [email protected] statements said their concerns WEB PRODUCER Norman Witte III, (313) 446- date Mitt Romney have told the cally shortage in the U.S. manufacturing 6059, [email protected] center around Blue Cross’ ability public several times during the automotive, is sectors “oncoming tsunami.” He EDITORIAL SUPPORT Robertta Reiff, (313) 446- to raise rates or change in the fu- 0419; YahNica Crawford, (313) 446-0329 election season that the U.S. in a period of said that while the industry should NEWSROOM (313) 446-0329, FAX (313) 446- ture to a for-profit mutual. Andrea 1687 TIP LINE (313) 446-6766 worker is the most productive in transition have been prepared, it failed to Rick Murdock, executive di- the world. where employers are returning maintain training programs. REPORTERS rector of the Michigan Association of Obama has used the productivi- work to the U.S. from overseas, But companies are engaging in Daniel Duggan, deputy managing editor: Covers Health Plans: “We real estate. (313) 446-0414 or [email protected] ty of the American worker as a while manufacturing, and labor- training programs again, Andrea Jay Greene, senior reporter: Covers health care, would argue that battle cry for the U.S. manufac- ers, are going through an evolu- said. insurance, energy utilities and the environment. Blue Cross oper- (313) 446-0325 or [email protected] turing sector to invest more in tion. “When you look at the future Chad Halcom: Covers litigation, higher education, ates as a monop- the U.S., thus creating more jobs. “Are we ever going to get back workforce and the skills, it is non-automotive manufacturing, defense oly under Public contracting and Oakland and Macomb counties. Romney has said increased pro- to the total number of employees much more of a total package,” he (313) 446-6796 or [email protected] Act 350. They ductivity equals increased in- in the industry in the late 1990s? said. “The compensation and the Tom Henderson: Covers banking, finance, have 70 percent technology and biotechnology. (313) 446-0337 or come for workers — a statement Probably not,” he said. “But auto- quality of life and the opportunity [email protected] of the commer- that caused a rift between the can- motive will remain at the top of in the industry all have to go to- Bill Shea, enterprise editor: Covers media, cial market. We advertising and marketing, the business of sports, didates about the definition of the manufacturing sector, and gether, and we’re in that transi- and transportation. (313) 446-1626 or want to make “productivity.” we’re starting to see a structure, tion right now. Our members are [email protected] sure that this is- Nathan Skid, multimedia editor. Also covers the Murdock The problem is that increased pushed by globalization, where becoming more active and creat- food industry and entertainment. (313) 446-1654, n’t a process of productivity guarantees neither offshored work is returning.” ing a workforce map of where we [email protected] converting that monopoly into a Dustin Walsh: Covers the business of law, auto jobs nor income, said Michael are and where we’ll be in five suppliers and steel. (313) 446-6042 or mutual.” MAHP represents 17 Mandel, chief economist at the years or even 15 years.” [email protected] health insurance organizations, in- Sherri Welch: Covers nonprofits, services, retail Washington, D.C.-based Progres- Rethinking outsourcing Prism is recruiting actively and hospitality. (313) 446-1694 or cluding Priority Health, Health Al- sive Policy Institute. The trend of onshoring is real, from Ferris State University’s plas- [email protected] liance Plan of Michigan and McLaren During much of the 20th centu- as companies are reassessing tics program and is looking at lo- ADVERTISING Health Plan. ry, wages, productivity and U.S. manufacturing costs in a differ- cal community college programs, SALES INQUIRIES: (313) 446-6052; FAX (313) Don Hazaert, director of Michi- gross domestic product all grew 4 ent, more accurate method. but it internally trains its opera- 393-0997 SENIOR ACCOUNT EXECUTIVES: Matthew J. gan Consumers for Healthcare: “This percent annually, according to Tom Aepelbacher, vice presi- tors, whose job functions include significantly increases the need Langan, Tamara Rokowski the Bureau of Labor Statistics. dent of global sourcing and pro- programming and monitoring the ADVERTISING SALES Christine Galasso, Lori for the Snyder administration and But that began to fall apart in the ductivity for Bloomfield Hills- molding machines. Tournay Liggett, Dale Smolinski the Office of Financial and Insurance 1980s as automation made its way based TriMas Corp., told Crain’s in The workforce is playing catch- CLASSIFIED SALES (313)-446-0351 Regulation to develop an open and EVENTS DIRECTOR Nicole LaPointe to the production line. March that new manufacturing up, but eventually the industry DIRECTOR, INTEGRATED MARKETING Eric Cedo transparent rate review process.” Mandel said what’s happening efficiencies stateside and rising and economy should rebound Joe Aoun, health care attor- SALES PROMOTION MANAGER Karin Pitrone in the U.S., and especially in foreign labor costs and rising even more, Andrea said. EVENTS COORDINATOR Kacey Anderson ney with Ann Arbor-based Nuyen, Southeast Michigan, is that man- transportation costs are causing “We’re looking to keep the SENIOR PRODUCER FOR DIGITAL/ONLINE Tomtishen and Aoun PC: “We need to ufacturers are automating every manufacturers to rethink out- highest value-added jobs and the PRODUCTS Pierrette Dagg MARKETING ARTIST Sylvia Kolaski prohibit Blue Cross from demutu- production activity they can and sourcing. jobs that have the highest eco- alizing, or converting to a for-prof- SALES SUPPORT Suzanne Janik, YahNica Crawford outsourcing other aspects to low “We used to get nice savings by nomic multiplier that support MARKETING COORDINATOR Jenny Griffith it mutual. The insurance code al- labor-cost countries like China sending work overseas, but those other jobs in the supply chain,” PRODUCTION MANAGER Wendy Kobylarz lows mutuals to convert very and Mexico. days are over,” he said. “We’re he said. “There’s always going to PRODUCTION SUPERVISOR Larry Williams quickly and easily to a stock com- “It’s clear there have been getting a lot smarter at our own be downward economic pressure CUSTOMER SERVICE pany.” gains in productivity, but these manufacturing here, and we’re on output, but the industry is Aoun also said the insurance code MAIN NUMBER: Call (877) 824-9374 or write gains in productivity are about looking to aggregate lower costs working through the transition to [email protected] or legislation needs to recognize an exploiting the supply chain, he here because we know costs are a positive outcome.” SUBSCRIPTIONS $59 one year, $98 two years. order recently issued by Insurance Out of state, $79 one year, $138 for two years. said. “From the point of view of rising there.” In the meantime, while other Outside U.S.A., add $48 per year to out-of-state Commission R. Kevin Clinton that the manufacturer, it’s irrelevant Prism is capitalizing on effi- companies are adhering to a new rate for surface mail. Call (313) 446-0450 or ordered Blue Cross to file a new plan (877) 824-9374. because they are doing more pro- ciencies, making a case for its model of manufacturing, Prism SINGLE COPIES: (877) 824-9374 that increases reimbursement to ductive work, but for the econo- customers to bring work back, will continue to thrive in its low- REPRINTS: (800) 290-5460, ext. 125; large and medium-sized hospitals in (717) 505-9701, ext. 125; or lindsay.wilson my it’s very relevant.” said Gerry Phillips, co-owner and cost, low-labor model, Phillips @theygsgroup.com Michigan. While PA 350 forbids vice president of finance for said. TO FIND A DATE A STORY WAS PUBLISHED: Blue Cross from converting to a for- (313) 446-0406 or e-mail [email protected] Prism. Dustin Walsh: (313) 446-6042, profit company, Aoun said the in- Hourly pay falls “2008 was a wake-up call that [email protected]. Twitter: CRAIN’S DETROIT BUSINESS IS PUBLISHED BY surance code should be rewritten to CRAIN COMMUNICATIONS INC. For the Southeast Michigan (companies) had to be more effi- @dustinpwalsh CHAIRMAN Keith E. Crain include those safeguards. workforce, supply chain efficien- cient in this industry, and a lot of PRESIDENT Rance Crain Blue Cross’ Andy Hetzel, vice SECRETARY Merrilee Crain cy means average hourly earn- injection molders didn’t make it,” president of corporate communica- TREASURER Mary Kay Crain ings in the automotive supply he said. “We’ve taken steps and Executive Vice President/Operations tions, responded by saying Blue William A. Morrow base are down to the lowest point been rewarded by taking work Cross’ board has stated all along it Group Vice President/Technology, in years. The average hourly from Japan, China and Europe Manufacturing, Circulation wants to remain a nonprofit. Hetzel BANKRUPTCIES Robert C. Adams because we’ve taken the whole la- said he can’t comment on insur- earnings in the supply base were Vice President/Production & Manufacturing $19.68 in July, down from $19.80 bor aspect out of the equation, Dave Kamis ance code changes. “Our core prin- The following businesses filed for Chief Information Officer and we’ve invested in technology ciple is that we in 2002 and $21.32 in 2006. Chapter 7 or 11 protection in U.S. Bank- Paul Dalpiaz ruptcy Court in Detroit Sept. 7-13. Un- Chief Human Resources Officer are regulated Manufacturers are importing to help the people we do have to more goods and completing the become more efficient.” der Chapter 11, a company files for re- Margee Kaczmarek like everyone organization. Chapter 7 involves total Director of Audience Development Operations Prism’s largest customers in- Michelle Roth else,” he said. manufacturing process in the liquidation. U.S., creating the large trade clude Takata Corp., Autoliv, Key Safe- G.D. Crain Jr. Founder (1885-1973) Reacting to Global Landscape Center Inc., 12725 Lev- Mrs. G.D. Crain Jr. Chairman (1911-1996) the opposition deficit, Mandel said. ty Systems and TI Automotive Inc. an Road, Livonia, voluntary Chapter EDITORIAL & BUSINESS OFFICES: The U.S. global trade deficit for To expand its Chesterfield 1155 Gratiot Ave., Detroit MI 48207-2732; (313) by the MAHP, 11. Assets and liabilities not available. 446-6000 Hetzel said the manufacturing grew by 7 percent, plant, Prism took out a $2.5 mil- Teddy’s Lawn & Landscape Inc., 12725 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 organization “is or $15 billion, in the first half of lion line of credit, purchasing six Levan Road, Livonia, voluntary Chap- ter 11. Assets and liabilities not avail- is published weekly, except for a special issue the locked into a 2012 compared to a year earlier, Toshiba molding machines, val- third week of August, and no issue the third week ued at about $500,000 each. able. of December by Crain Communications Inc. at lobbying posi- according to the Manufacturers Al- 1155 Gratiot Ave., Detroit MI 48207-2732. Total Printing Services LLC, 8979 Samuel tion that auto- Hetzel liance for Productivity and Innova- And while work is returning to Periodicals postage paid at Detroit, MI and the U.S., more work will be done Barton Drive, Van Buren Township, additional mailing offices. POSTMASTER: Send matically opposes changes in how tion. voluntary Chapter 11. Assets and lia- address changes to CRAIN’S DETROIT BUSINESS, The trade deficit has resulted in by machines, and the few opera- Circulation Department, P.O. Box 07925, Detroit, Blue Cross is regulated. Their bilities not available. MI 48207-9732. GST # 136760444. Printed in member health plans are so advan- as many as 130,000 to 260,000 man- tors of these machines require a Trans-World Investment Co., 2512 W. U.S.A. ufacturing job losses in the U.S., more skilled workforce, Phillips Entire contents copyright 2012 by Crain taged by how Blue Cross is regulat- Grand Blvd., Detroit, voluntary Chap- Communications Inc. All rights reserved. ed now. They want us subject to as Ernest Preeg, MAPI senior advis- said. ter 11. Assets: $300,000. Liabilities: Reproduction or use of editorial content in any manner without permission is strictly prohibited. many regulations as possible.” er for international trade and fi- “These jobs are good jobs, and $24,449.47. — Jay Greene nance, said in a release. they don’t need a four-year de- — Ryan Kelly 20120917-NEWS--0030-NAT-CCI-CD_-- 9/14/2012 4:56 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS September 17, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 8-14

state attorney general today state like neighboring Indi- has been host of “The War Level One to ana. The 2012 Michigan Eco- DEVELOPER TONY Room With Jennifer nomic Competitiveness Study United Way: Granholm” on Current TV, used personal income GOLDMAN DIES the progressive cable chan- acquire Oxford growth, job growth and cor- nel co-founded by Al Gore. porate tax rates to show that states with right-to-work ‘Your winning Nonprofit to offer Bank, expand laws have performed better economically than Michi- women’s biz coaching armington Hills- gan. The complete study can based Level One Ban- be found on the Michigan The New York City-based F corp Inc. announced Chamber of Commerce web- headline here’ nonprofit Count Me In for it has entered into an agree- site, michamber.com. Women’s Economic Indepen- ment to buy the stock of Ox- Detroit and other cities he United Way for The United Way has dence will offer the chance ford Bank Corp., the oldest far from Silicon Valley will Southeastern Michi- aligned its strategies and for up to 100 female entre- bank in Oakland County. be a focal point for high- T gan is seeking funny services in recent years as preneurs to win nine months The acquisition, if ap- tech entrepreneurship in or inspirational headline part of a goal to make of coaching and education to proved by state and federal coming decades, panelists suggestions for its fundrais- greater Detroit one of the help grow their businesses. regulators and Oxford said at Techonomy Detroit at ing campaign launched on top five places to live and The women will be se- shareholders, will give Lev- Wayne State University. They Friday. work by 2030. The nonprofit lected from participants at el One 15 branches and $750 The colorful, controversial said the U.S. must change and self-styled radical The United Way’s “A Bet- calls it “Making Greater De- the nonprofit’s “Urban Re- million in assets. Oxford immigration policies if it developer Tony Goldman — ter Headline” campaign is troit Greater.” bound-Detroit” event Sept. has eight branches and $385 wants to keep its worldwide 30-Oct. 1 at the Detroit Mar- who wanted to redevelop built around what could be million in assets. lead in innovation, and that Detroit the way he did South riott Renaissance Center. positive, albeit tongue-in- Granholm: Pundit, gov, the era of do-it-yourself Beach and SoHo — died in cheek, news headlines from Cost is $49. For details manufacturing and distrib- New York on Tuesday. the year 2030 — if people do- game show queen and to register, visit count- ON THE MOVE ution is here to stay. Having said that people nate to the United Way and mein.org/urbanrebound. who knock down historic In the wake of her much- Southfield seating and The state has the efforts it supports. buildings “should be beaten discussed (and, in some electrical system supplier launched a redesigned Entries can be submitted with a cane” and that the quarters, ridiculed) speech Next ‘Detroit 187’ Lear Corp. appointed former website for its Pure Michi- at liveunitedsem.org. buildings are “like the last at the Democratic National Tower Automotive CEO Kath- gan tourism marketing The 25 best suggestions to be at 1150? good teeth in your mouth,” Convention, ex-Michigan leen Ligocki to its board of di- campaign, including a trip will get a T-shirt, and the he was eager to find new Gov. Jennifer Granholm is Starring in the latest De- rectors. Ligocki is CEO and planner and an interactive uses for the city’s rundown headlines will be put to an back in the spotlight. troit-based detective TV director of Next Autoworks map to access more than buildings. online public vote for the This time, it’s less for a drama will be the David Stott Co. and an operating execu- 12,000 Michigan properties At age 68, he died of a best. madcap kinetic political Building at 1150 Griswold St. tive at Menlo Park, Calif.- and hundreds of events. heart failure after four years The winning headline speech than for the appear- New York-based AMC Net- based investment firm Klein- The nonprofit Belle Isle of poor health. will be put on a billboard ance of a 19-year-old works Inc. has leased three er Perkins Caufield & Byers LP. Conservancy has an agree- featuring it across a huge Granholm as a poofy-haired floors for shooting the She also serves on the board ment with the city of De- the balance. If Congress ap- Crain’s Detroit Business contestant on a 1978 episode show, said Ryan Snoek, a of directors for Covington, troit to reopen the Belle Isle proves the project’s budget front page. Crain’s is spon- of TV’s “The Dating Game.” broker with Farmington Ky.-based chemical supplier Aquarium to the public, free by then, MSU would begin soring the billboard. The grainy, somewhat Hills-based Friedman Inte- Ashland Inc. of charge, every Saturday construction by March 2013. The fundraising drive, garbled clip posted on grated Real Estate Services, The Troy City Council from 10 a.m. to 3 p.m. The In related news, MSU’s nu- which has a $35 million goal YouTube.com — Granholm representing the building’s voted on a contract for Bri- aquarium closed seven clear physics graduate pro- this year, kicked off Friday had a Bernadette Peters owner, Emre Uralli. an Kischnick, manager of years ago because of a lack gram was ranked No. 1 in when Chrysler Group LLC thing going on in ’78 — was The detective drama, Saginaw County’s Tit- of operating funds. Mayor the country by U.S. News & Chairman and CEO Sergio making the rounds online “Low Winter Sun,” has re- tabawassee Township, to Dave Bing attended a rib- World Report in 2010. Marchionne led a ceremony last week. The initial report ceived Michigan film incen- succeed City Manager John bon-cutting event Friday. The Michigan Depart- that relit the United Way was in the Detroit Free tives. It’s to be an adapta- Szerlag starting Nov. 19. In a related story, Gov. Rick ment of Agriculture and Rural torch in downtown Detroit. Press, and it got attention tion of a British miniseries Snyder and Detroit Mayor Development announced a The metal sculpture has from Politico, Huffington Post that “will explore Dave Bing announed that new online tool, MiSafe, been dark for five years as and other news outlets. vengeance and corruption COMPANY NEWS the state will manage Belle that provides information the Detroit-based nonprofit The game show prize was through the lens of a cop Visteon Corp., the Van Isle under the terms of a 30- on inspection results from changed its focus and got a stay at a Palm Springs re- murdering a fellow officer,” Buren Township-based year lease agreement. The more than 19,000 retail food away from what was known sort and tennis racquets. according to IMDB.com. auto-parts supplier, is lean- agreement requires the ap- establishments in the state. as its annual fundraising Granholm, who had stints The deal is among the ing toward naming interim proval of the Detroit City Revenue for Detroit’s Torch Drive. as a beauty queen and Univer- very first for the David Chief Executive Officer Tim Council. No rent would be three casinos rose slightly The decision was made sal Studios tour guide during Stott building, which is Leuliette to the post perma- paid for the lease of the 985- in August, with a 1.6 per- earlier this year to revive her pursuit of an acting ca- launching a leasing cam- nently after ousting CEO acre park, with operation, cent increase compared the workplace donation-dri- reer in Hollywood, never paign under Uralli’s owner- Don Stebbins, Bloomberg maintenance and improve- with the same month of ven Torch Drive, and Dear- went on the date because she ship and recent renovation. News reported. The compa- ment projects considered 2011, according to figures born-based advertising had a boyfriend at the time, AMC on Friday con- ny’s board is also asking ad- compensation. The Michi- released by the Michigan agency Team Detroit created according to reports. firmed that it’s shooting in visers for options about its gan Department of Trans- Gaming Control Board. the headline campaign to Since October, the former Detroit but would not con- electronics unit and may ex- portation would assume re- Farmington Hills attor- support the fundraising. two-term governor and firm the location. plore a sale of the business. sponsibility for roads and ney Richard Bernstein, struck Visteon, spun off from Ford bridges on the island. by a bicyclist while walking Motor Co. in 2000, has been The University of Michi- in New York City’s Central pressured by investors to gan and Michigan State Uni- Park early last month, has boost its share price. versity were No. 29 and No. filed a lawsuit against the Ferndale-based Livio Ra- 72, respectively, in the 2013 city asking it to come up dio announced its first au- U.S. News & World Report with a plan to make the park tomaker contract for soft- “Best Colleges” rankings. safe for people with disabili- BEST FROM THE BLOGS The Detroit Tigers put ware designed to integrate ties. Bernstein, a personal READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS mobile apps into vehicles. individual playoff tickets injury lawyer with Sam Bern- General Motors Co. will use for potential wild card and stein Law Firm PLLC, is recov- Politics not for Gilbert? A flood of music memories the Livio Connect protocol American League divisional ering at a New York hospital software to integrate the series games on sale at from broken bones and hip Dan Gilbert Where do the years mobile app TuneIn for the tigers.com and (866) 668- resulitng from the collision. for“ mayor? go,“ an aging reporter (me) 2013 Chevrolet Spark. 4437. The wild card game is The Michigan Natural Not likely. asked himself while Oct. 5; the league divisional Resources Commission is reading the wonderful series begins Oct. 6. planning an Oct. 24 auction ” music issue his OTHER NEWS Michigan State Universi- of state-owned oil and gas colleagues at Crain’s ty’s planned $680 million Fa- lease rights, AP reported. created. A newly released report by a group of free-market cility for Rare Isotope ” economists from Northwood Beams was approved by the OBITUARIES University and Central Michi- school’s board of trustees for gan University argues that $55 million in construction Melvyn Kates, retired Reporter Dan Duggan’s blog on commercial real estate Reporter Tom Henderson’s blog about accounting, Michigan’s economy could funding. The U.S. Department partner in the law firm now can be found at www.crainsdetroit.com/duggan banking, venture capital and high tech can be found improve dramatically if it of Energy and state of Michi- called Sachs Waldman PC, at www.crainsdetroit.com/henderson becomes a right-to-work gan are expected to cover died Sept. 11. He was 86. DBpageAD.qxp 9/7/2012 5:10 PM Page 1 DBpageAD.qxp 7/17/2012 2:09 PM Page 1