20150223-NEWS--0001-NAT-CCI-CD_-- 2/20/20156:42PMPage1 of 2014,Page11 The bigbusinesscases 5-year plans;they’resecret Energy suppliershave planned forAnnArbor Hub fortechstartups an outdoorpatio. ple insideandatleast60on opened in2010,seats80peo- usual. changes arealsoplanned,as $100,000; seasonalmenu vation willcostatleast town. Grill who alsoowns and bad,”saidLambrecht, down hereforthegoodtimes nesspeople whohavebeen and 30s,thecorebusi- of youngerpeopleintheir20s mographic rightnow—alot brecht said. more approachable,”Lam- make therestaurantalittle will alsoberemoved“to The tableclothsinthebistro changing thecolorscheme. adding awaitressstationand new floors,lighting, expected toreopenApril2. leased spaceMarch2andis the restaurantwillcloseits troit 300Conservancy aged andoperatedbythe completed. Theparkisman- as interiorrenovationsare will closeforseveralweeks rant in NEWSPAPER revamp, reopeninApril Fountain Bistrowillclosefor Focus: Law This JustIn Page 3 The Fountain Bistro,which Lambrecht saidthereno- “Downtown hasagreatde- The renovationsinclude Owner on CassAvenueinFox- Fountain Bistro Campus MartiusPark Jay Lambrecht Bookie’s Bar& — KirkPinho . ©Entire contentscopyright2015byCrainCommunicationsInc.Allrightsreserved restau- www.crainsdetroit.com Vol.31,No.8 said De- Group LLC)werepromisedtaxcred- S losses duringthatperiod. of themorethan800,000totaljob ing jobsbetween2000and2009out industry toleveragenewjobs were authorizedfortheautomotive businesses overthepast20years. tax creditspromisedtoasmany240 to thenearly$11.7billioninbusiness get shortfallin2015,largelyattributed to roost. recession, arecominghome big-time budgettrouble program plantedtheseedsof outstanding, otherssaythe than $9billionincreditsstill taxpayers here.Butwithmore industry, savejobsandkeep incentives helpedsavetheauto Some sayMichigan’s corporatetax and a MEGAmess? or Good policy more than219,000automanufactur- big-time budgettrouble program plantedtheseedsof outstanding, otherssaythe than $9billionincreditsstill taxpayers here.Butwithmore industry, savejobsandkeep incentives helpedsavetheauto Some sayMichigan’s corporatetax a MEGAmess? or Good policy A largeportionofthosecredits The statefacesa$289millionbud- Ford MotorCo. and retainjobsduringan decade —whichclaimed industry bleed-outlast FCA USALLC CRAIN’S DETROITBUSINESS B during lastdecade’s the autoindustry tax incentives,whichaided tate-sponsored corporate Y D USTIN , General MotorsCo. (formerly Chrysler W ALSH FEBRUARY 23–MARCH1,2015 Manufacturers Association not havehappenedifthe during therecessionwould vested bytheautoindustry lators lastweekthebillionsin- opment Corp. government affairsforthe tive forthestateeconomy. ued in2011,willresultanetposi- the program,whichwasdiscontin- experts areleftwonderingwhether ing, electedofficialsandtaxpolicy credits overallstilloutstand- program didn’texist. Michigan EconomicGrowthAuthority cy committee. program,” hetoldtheHousetaxpoli- the budgetchallengetoMEGA the Michigan through2032,accordingto retain morethan86,000jobsin its worthnearly$4.5billionifthey Mike Johnston,vicepresidentof But with$9.38billionin “Some policymakersareattributing Michigan EconomicDevel- See Credits,Page22 , toldlegis- Michigan ISTOCK PHOTO sion toproceedwithadditionalhigh-volume the hydraulicfracturingindustryforpermis- natural gas—seemtooutweighpressurefrom market dynamicsdrivingcheaperenergyfrom Michigan report releasedlastweekbythe regulations onthepractice,accordingtoadraft depth environmentalimpactstudyandfurther temporary moratoriumtogivetimeforanin- deep-well hydraulicfracturingistoimposea public healthinthestateonpracticeof sorting outtheanswertothatquestion. the neighborhood. its northernedgeisn’tgettingawelcomefrom fordable seniorlivingcomplexplannedalong stock inDetroit’sMidtownarea,butanewaf- avenues foranundisclosedamount. at 59SewardbetweenWoodwardandSecond gan, haveanagreementtopurchaseabuilding planned, needsadifferentkindofdevelopment lieves SewardStreet,wherethecomplexis ment groupworkingtorevitalizethearea,be- weigh impactoffracking UM report:Take timeto Mosey to bring biz,Moseysays Mixed incomeneeded Midtown concerns complex prompts Affordable senior For now,environmentalconcerns—plus One optiontosafeguardwaterqualityand To frackornottofrack?Michiganisstill Midtown DetroitInc Demand isreportedlyoutstrippinghousing ’s Graham SustainabilityInstitute CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B B Y Y S lars Ltd J also own Michael andBobJacobson sultants LLC President SueMosey. said MidtownDetroitInc. have tomixedincome,” tail andcommercial,you ment there. to furthereconomicdevelop- HERRI AY Ann Arbor-based “If youwanttoattractre- ., theeconomicdevelop- G REENE W . innorthernMichi- See Fracking,Page24 See Midtown,Page25 ELCH $2 acopy;$59year Leelanau WineCel- , whoseprincipals University of . LC Con- ® 20150223-NEWS--0002-NAT-CCI-CD_-- 2/20/2015 6:02 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS February 23, 2015
MICHIGAN BRIEFS One way Grand Rapids handles It’s owned and operated by the Han- nahville Indian Community, a band of parking problem: Sell your space Report gives mixed grades to charter school authorizers the Potawatomi Nation. The number of passengers de- When Bill Kirk became mobility A new report from The Education Trust-Midwest Ferris State University, Grand Valley State University and manager for Downtown Grand Rapids parting from and arriving at Gerald found huge disparities in performance among Michi- Bay Mills Community College, all B’s; and Central Michi- R. Ford International Airport in Grand Inc., he decided to pocket an extra gan’s charter school authorizers. The report released gan University received a C. $149 a month by forgoing a compa- Rapids — 181,049, to be precise — by the Royal Oak-based nonpartisan research, policy The grades were based on the authorizers’ deci- ny-supplied parking space. Kirk is rose 15 percent last month com- and advocacy organization shows that of the nearly sions regarding charter school openings and the among the growing number of peo- pared with January 2014, 150 charter schools opened since the state charter quality of their operators, setting performance stan- ple benefiting from what’s known as MLive.com reported. “Apparently, school cap was lifted in fall 2011, about 20 percent dards for current schools and improving chronical- a parking cash-out program, which West Michigan has learned to get were authorized by authorizers that received “D” or ly failing schools. has been gaining traction in Grand out of the snow in January,” said “F” grades in the nonprofit’s report. Of the 16 authorizers evaluated, their total enroll- Rapids, MiBiz reported. airport spokeswoman Tara Hernan- Authorizers receiving a D were Oakland University, ment of about 135,000 students represents about 95 Executives at the city’s economic dez, who gets points for sarcasm Detroit Public Schools and Saginaw Valley State Universi- percent of the statewide charter enrollment of 140,000. development organization think the above and beyond her pay grade. ty. Eastern Michigan University and Northern Michigan “We are looking at the methodology of this new program is just one option to help If the craft brewing industry University received F’s. report and haven’t had a chance to review it in handle demand for parking in one day looks back in lamentation The highest-ranked authorizers: Washtenaw Com- much detail yet,” said C. Robert Maxfield, interim downtown Grand Rapids. Studies at its “jump the shark” moment, it munity College, Washtenaw Intermediate School District, dean of OU’s School of Education. “That letter grade commissioned by the Grand Rapids could be this: Brewery Vivant in Grand Rapids Public Schools, Wayne RESA, Hillsdale In- is not consistent with our experience and track City Commission have found that the Grand Rapids created a “Fat Pacz- termediate School District and Macomb Intermediate record in helping our charter schools excel.” supply of parking in the central ki” brew in honor of Mardi Gras — Kirk Pinho business district does not necessari- School District, all A’s; Lake Superior State University, last week. It is made with prunes ly match demand. and powdered sugar, “with actual Andy Beachnau, Grand Valley’s currently used for freight, also Gov. Rick Snyder said the agree- paczki tossed into the mash for good Growing Grand Valley approves associate vice provost of student af- would make stops in cities includ- ment will reduce electricity rates measure,” MLive.com reports. fairs, said the university has had ing Cadillac, Mt. Pleasant and for U.P. residents and businesses. Find business news from $44.8M in construction projects strong enrollment for first-year stu- Owosso. The Hannahville Tribal Council around the state at crainsdetroit dents and was at capacity in fresh- The Land Use Institute hopes to plans to expand and renovate its Is- .com/crainsmichiganbusiness. The Grand Valley State University man housing. begin conducting feasibility studies land Resort & Casino in Harris Town- Sign up for the Crain’s Michi- board of trustees approved $44.8 next summer. Officials estimate the ship, about 15 miles west of Escana- gan Morning e-newsletter at million for building projects to ac- commuter train service could be ba, The Associated Press reported. crainsdetroit.com/emailsignup. commodate growing demand, the Group to study train service linking ready by 2025. Grand Rapids Business Journal re- ported. Projects include a nearly Ann Arbor, Traverse City CORRECTIONS 145,000-square-foot housing and aca- The Traverse City-based Michigan MICH-CELLANEOUS An editorial on Page 8 of the Feb. 16 issue gave an incorrect street demic building and a 16,900-square- Land Use Institute launched a cam- for the unfinished Wayne County Jail. It is on Gratiot Avenue. foot addition to the existing Recre- paign to establish commuter train Wisconsin Energy Corp. and Cliffs A Rumbling on Page 26 of the Feb. 16 issue should have included ation Center on its Allendale service connecting Traverse City Natural Resources reached a deal in the information that Chef George Vutetakis, former owner of Inn Sea- campus. Construction on both pro- and Ann Arbor, The Associated an effort to find a solution to the Up- son in Royal Oak, is consulting and has developed the menu for Green- jects is expected to be completed by Press reported. The proposed train, per Peninsula’s energy problems, Space Café, expected to open in Ferndale in April. August 2016. which would run on a 240-mile line The Associated Press reported.
Read AheadOfTheCurve.wnj.com, the definitive law blog for navigating the automotive supply chain.
Keeping automotive suppliers ahead of the curve
Warranty disputes, recalls, intellectual property theft, government investigations...there’s a lot at stake in the auto supply industry. So much, in fact, that our automotive attorneys represent ONLY suppliers. We represent more than 200 automotive suppliers, safely steering them through some serious hairpin turns. Contact us about preparing for the curves ahead.
A BETTER PARTNERSHIP® F=9 R^\~'%% $"" " ' 20150223-NEWS--0003-NAT-CCI-CD_-- 2/20/2015 6:43 PM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 3 Vision for AA: Hub for tech startups Inside
who is one of the investors in the real estate Former execs buy 2 project.“There are startups scattered around downtown, hidden in back offices on the third floor. They don’t know each other. There’s no downtown buildings sense of community,” said another investor, Nutshell co-founder Guy Suter. “They don’t BY TOM HENDERSON want to be in office parks; they want to be CRAIN’S DETROIT BUSINESS downtown. They want to be able to walk to nice Using the Madison Building in downtown De- restaurants. We want to get them into one area troit as the model, a group of former Barracuda TOM HENDERSON and build a startup ecosystem that has density. Nutshell Inc. CEO Joe Malcoun (center) and co- We need a vibrant tech scene downtown.” Networks Inc. executives wants to create a large founder Guy Suter (left) plan to open a tech The investors say they will launch operations hub for tech startups in downtown Ann Arbor. incubator in downtown Ann Arbor and have their first Go Shoe: UM student’s hobby They have signed a purchase agreement to tenant: Jordan Breighner and his Coolhouse Labs. with at least 12,000 square feet and could have as buy two adjacent office buildings downtown and much as 25,000, if two more buildings are bought. has legs as a biz, Page 18 are negotiating to buy one or two more buildings. tions in downtown Ann Arbor are too hard to They say they will offer short-term leases that They hope to close on the first deal in about a come by. startups generally can’t find in the tight office month and have a build-out done in six months. “Developers want you to sign a five-year market in downtown Ann Arbor, as well as ser- Pending the closing on the real estate sales, lease, and for a startup, that makes no sense. In vices startups can share to reduce costs. they declined to specify the specific location. But five years, you’ll either need four times the But the investors have already landed their Company index the premise of the idea is that startups in the space, or you’ll already be dead,” said Joe Mal- These companies have significant mention in this area need a place to call home, and current op- coun, CEO of Ann Arbor-based Nutshell Inc., See Tech, Page 25 week’s Crain’s Detroit Business: A123 Systems ...... 22 Altair Engineering ...... 15 American Society of Employers ...... 13 On Feb. 25, 1985, Crain’s reported on Associated Builders and Contractors of Michigan . 11 Keys to energy LOOKING BACK afilmmaker film designed Sue Marx’s to bring promotional business to Association of Businesses Advocating Tariff Equity . 3 Autocam ...... 12 Detroit.work for Thirty Detroit. years Thirty later, years Sue later, Marx she assesses assesses the the city, city, PAGE PAGE 4. 4 Autocam Medical ...... 12 suppliers’ Beaumont Health System ...... 16 30 YEARS AGO THIS WEEK Carlson Gaskey & Olds ...... 11 Choon’s Design ...... 11 Consumers Energy ...... 24 5-year plans: Coolhouse Labs ...... 25 Detroit Creative Corridor Center ...... 6 DTE Energy ...... 24 Confidential Fountain Bistro ...... 1 Ghafari & Associates ...... 6 BY JAY GREENE Global Titanium ...... 6 CRAIN’S DETROIT BUSINESS A life in LC Consultants ...... 1 Loft Warehouse ...... 21 More than two dozen regulated McLaren Health Care ...... 16 utilities, alternative energy suppli- Michigan Economic Development ...... 1, 22 ers and other electricity coopera- Michigan Manufacturers Association ...... 1 tives and distributors last week filed reports to the Michigan Public Michigan Municipal League ...... 11 Service Commission on how they Michigan Public Services Commission ...... 3 plan to supply electricity to their rewind Michigan State Housing Development Authority . . . 25 customers over the next five years. Midtown Detroit ...... 1 But there’s a catch. The main Moceri Cos...... 9 findings of the reports are marked Nutshell ...... 3 as confidential and not available to Plunkett Cooney ...... 12 the public. St. John Providence Health System ...... 23 “I don’t know what their energy Shelborne Development Group ...... 25 plans are because all the data that Sideline Sneakers ...... 18 would be useful Stout Risius Ross ...... 25 on how sound Sue Marx Films ...... 4 the plans are United Auto Workers ...... 17 have been filed University of Michigan ...... 1, 25 under seals,” U.S. Health and Life Insurance ...... 23 said Robert Strong, general counsel of the Association of Businesses Advo- cating Tariff Strong Equity, a Birm- ingham-based industrial power user group, adding that he is asking the PSC how they will make the data available for review and public Department index comment. Strong said customers need to BANKRUPTCIES ...... 6 know the energy suppliers’ sales BUSINESS DIARY ...... 20 forecasts over the next five years CALENDAR ...... 19 and the precise breakdown of how CLASSIFIED ADS ...... 21 they will supply required capacity KEITH CRAIN...... 8 during that period. “They have filed summer energy LETTERS...... 8 plan reports and three-year reports OPINION ...... 8 in the past and they did not have as PEOPLE ...... 20 much secrecy,” Strong said. “This RUMBLINGS ...... 26 See Energy, Page 24 WEEK ON THE WEB ...... 26 GLENN TRIEST A little bird told you THIS WEEK @ Crain’s will be live tweeting Wednesday’s Newsmaker luncheon featuring Kevyn Orr, bankruptcy Judge Steven Rhodes and WWW.CRAINSDETROIT.COM mediator Gerald Rosen. Follow it on @crainsdetroit. 20150223-NEWS--0004-NAT-CCI-CD_-- 2/20/2015 5:59 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS February 23, 2015 Oscar-winning Detroit filmmaker reflects on changes in the city and movie industry
BY AMY HAIMERL CRAIN’S DETROIT BUSINESS LOOKING In 1988, Sue Marx won an Oscar BACK for her documentary, “Young at Heart,” about her widower father’s ON THE WEB romance with a widow in her mid- Thirty years ago, Crain’s reported 80s. But before she was hitting the on Sue Marx’s production work on red carpet, she was in charge of “Detroit Means Business,” a short putting Detroit in its best light. film aimed at attracting more Thirty years ago this week, the business for the city. Read that filmmaker was awarded a contract 1985 story and see more Detroit to produce history at crainsdetroit.com/30. “Detroit Means Busi- What would you call that movie? ness” as a way “Detroit Open for Business” is a Q&A to sell the city. really good title. It’s just a dynam- Such well- ic and exciting time in the city of Sue Marx, known Detroi- GLENN TRIEST Detroit. We were told three or four Sue Marx Films ters as Lee Ia- Sue Marx on the Detroit story she years ago when Midtown started would tell: “I think there is a lot of cocca, Walter to grow that it was too soon. We hopefulness. And yet I wouldn’t want McCarthy, Esther Edwards and to have to deal with the racial issues.” had done some spec shooting, Dave Bing all made appearances. thinking we have a helluva pro- Crain’s called Marx to catch up need. It had a pool. The grandkids of posal, so we went to some heads of with changes in the film industry our neighbors were now swimming foundations but they all came back and changes in the city. When we in it. It wasn’t necessarily because with the message to give us a little reached her, she was deep into an we were ready to move, it just felt more time. archival review of her profession- like it was the right time. This is the They were right, but there is al- al life. She was a prolific filmmak- first time in my life with a house ways more time. er, starting her career in the early with attached garage, so I’m as hap- 1970s at WDIV-TV (then WWJ-TV), py as a clam in Birmingham. What story would you tell? where she created the “Profiles in There is a new feeling, I think, in Black” series that featured Stevie You started Sue Marx Films in 1980. the city of Detroit. I think there is a Wonder, Rosa Parks, Marvin Gaye What did you learn in 35 years? lot of hopefulness. And yet I would- and others inside their homes and I somehow always lucked out to n’t want to have to deal with the workspaces. find someone that I was compati- racial issues. I wouldn’t know how That work has all disappeared ble with. I’m a collaborator. I al- to handle those stories that down- over the years, but she’s sifting ways want to be able to say, “What town and Midtown are white. I through her more than two-dozen do you think?” don’t know that there was hopeful- Emmys for such projects as a series I didn’t know how to grow a com- ness to the same degree that is now on the Detroit Zoo that featured nar- pany, I’m embarrassed to say it. My after ’67 or ’70, but the city wasn’t ration by James Earl Jones, Jeff husband was in business, but there as polarized as it is now. Daniels, Tim Allen and more. She’s was no reason he could help me, it How does that fit into a film that also reflecting on more than five was such different fields. Thank is honest? It’s a very strange time. This is my home, this is Detroit. decades in Detroit, having followed God I didn’t have to support myself. If the story were told today it her husband from Lake County, Ind. That’s what I look upon with a lot of would be in a strange way, it the young people now doing every- would be the same story with dif- You’ve done so many high-profile thing on their own. I was lucky to ferent images. The story is about films; do you remember “Detroit Means have someone to help pay the rent. Business”? looking forward with hope. I don’t We lived a great life. I got to meet a know, but I guess all cities have I remember it very well. That lot of people. film and another one we did about a the same yearning. I don’t think year later, both of them were done we’re there yet— and I don’t know How did the evolution of digital me- during Coleman Young’s early what there is or where there is — dia impact your work? years and they both won awards. and maybe that’s just life. When I first started the compa- It’s been buried for so many years, ny, I was Sue Marx Films. I had an so I called someone at the Free Press You were a big supporter of Cole- attitude about video that was like because of their film festival. man Young. What do you think of the Maybe it’s time to show them again. I’m never going to do video. I had a leadership today? fabulous editing table in my house. I think Mike Duggan is as fabu- How does the city compare then to Those were the film years and the lous a leader as we could possibly now? most wonderful times. have. There are so many positive signs. Physically it’s different, but the Gradually it became obvious But I remember when Duggan story is still the same. I lived in the that video was going to replace was at Wayne County and he and city until 2000. We were late in mov- film. It was a little more affordable (Wayne County Executive Ed) Mc- ing out, but my husband, who died and it got more and more, until it Namara decided it was time to put in 2007, decided it was time to move. was very affordable. So I was grad- ually accepting of a new format a nursery school in the building, which is a gorgeous building, and and then appreciative of it. What was it like living here? Mike’s kid was there. Mike would Now all these young people have I got that job at Channel 4 and de- come down from his office, like their own Macs and they can cut and cided it was fun to live in the city. many of the parents did, coming So we just sort of developed a differ- shoot and do everything for $2.95. It’s down to play with him. ent group of friends than our a different world. But people’s appre- A few years ago, I went to a par- friends who had already moved out. ciation for quality still exits. ty and saw Duggan and he says, I have three daughters, none of “You’ve got to meet Eddie.” Now whom live here. At the time I was Why did you quit making films? he’s a lawyer practicing law. feeling like I should get out of The last film I did was for the town. My oldest daughter went to RiverFront Conservancy. I decided What do you see for the city’s future? Cass Tech High School at a time that enough was enough. Growing I can’t picture Detroit 15 years when there were very few white up sort of changes your life. I had from now, 20 years. I wish I could kids at Cass. So I ask them if we some aches and pains. I thought it peer into the future and see what should have left, and they say, “No was time to clean house and go would really happen. But if there mom, you did the right thing.” through films. I kept paper files on was an opportunity to do a film on Did we do the right thing? It was almost every project I ever did. the city again, I would do it. I wish a challenging time to raise kids. But I’ve talked about doing some- I were younger right now and thing about the city again, and I’ve could take on a big heft project. What caused you to finally leave? talked to other people who are be- This interview was edited for It was a house that we didn’t ginning to think it’s time. length and clarity. DBpageAD_DBpageAD.qxd 1/6/2015 11:39 AM Page 1
Advertisement Retooling Globalization Strategies for Auto Suppliers By Gary Anglebrandt
he automotive industry team at a cash management system to handle the expanded global Our client wanted to buy their competitor, but it was three Bank of America Merrill Lynch enterprise and we’re now reevaluating the capital structure times its size, and was majority owned by a German hedge (BofAML) spends its days fine-tuning to position the company for the next phase of growth. fund and a collection of individual investors. This supplier and funding the strategic plans of The company has made five acquisitions in the last 18 needed help financing the purchase and navigating German middle-market parts suppliers. months in Europe and the U.S. The next project is a joint laws concerning tender offers and shareholder rights. What do these companies say are venture in China. It had asked a few banks for ideas and nobody came back their most pressing concerns as the new Another client of ours was thinking about buying a for- with a great answer. They came to us and we recommended
Matthew Elliott year begins? Globalization and capacity. eign company for the first time. The first thing on their plate and executed a strategy for them, getting them financed and Michigan State But there is a new twist on these famil- was arranging a financial package — before getting into working through all the legalities, while arranging a cash President Bank of America iar pressures — a paradigm shift toward deep discussions with potential buyout targets. management system for what had become overnight a Merrill Lynch what the BofAML team calls “manufac- Their big concern in picking a financial partner was they global company. turing in theater.” OEMs expect suppliers wanted to know we had done it before, that we knew how We were able to do this in a short time because of our to follow them around the globe, setting to structure a deal and had the people who know how in-market expertise. up shop near assembly plants instead of to do it. Clients like these are looking for an international shipping parts around the world from bank. They’re saying, “We need a partner that can help us WHAT OTHER PRESSURES ARE SUPPLIERS FACING? one country to another. go to places like Europe, China, India, Brazil.” Lightweighting (removing weight from vehicles), powertrain This presents considerable risk to sup- We have bankers who structure and advise automotive electrification, autonomous vehicle technology and mobility pliers who must weigh which countries clients in those markets and they work alongside our local are coming into play. These developments will drive change, to enter first, then figure out how to go U.S.-based teams to deliver the entire global firm to the client. and change requires investment, talent and experience. Brian Kundich about it. All options are costly, but also Senior Credit Products Another big issue we consistently hear from business Manager potentially very profitable. WHAT ISSUES DO COMPANIES FACE IN THESE Bank of America owners is that lack of talent is handicapping growth. Merrill Lynch BofAML sees these forces at work SITUATIONS? They’re also wondering about the sustainability of the from the inside out as it helps its clients There’s a lot of risk and complexity when entering a current sales volume. Every supplier is skeptical of sales manage capital investments, acquisitions, foreign market, and much of that stems from jumping into projections they get from customers. Excess capacity in this joint ventures, international cash flow an unknown regulatory environment, which is why it’s industry is not your friend if you’re a supplier. It’s a classic and currency fluctuations. These clients important to bring in knowledgeable people. greed-versus-fear dilemma. cover the industry spectrum: raw materi- One supplier, a smaller public company, always had als producers, parts suppliers, OEMs, used a contract manufacturer to make its product, in what To learn more, visit go.bofaml.com/auto and contact our dealerships and consumers. really was a two-player market — this company and a dedicated automotive team: [email protected], Covering the full spectrum of the European company. [email protected], [email protected]. David K. Komrska automotive ecosystem helps BofAML see Senior Credit Products Officer trends and pressures before they become Bank of America apparent to much of the rest of the Merrill Lynch world. Here’s more on these trends from my conversation with the BofAML team that included Matt Elliott, Michigan state president and commercial banking market executive, and senior credit officers Brian Kundich and David Komrska.
HOW DOES THE CAPACITY SITUATION LOOK? The capacity envelope left after the economic crisis has been filled up. Now expansion is required to support an increase in sales volume. The slow growth of sales after the recession really delayed capacity concerns, but everyone knew we’d hit that wall eventually. Now we’re at the tipping point.
WHY ARE AUTOMAKERS SO KEEN TO BRING SUPPLIERS CLOSER TO PLANTS? For one, OEMs want to shorten and strengthen their CashPro®. It goes with you. It grows with you. supply chains — it’s a lesson from the 2011 tsunami in Japan that highlighted weaknesses in the supply chain. It’s integrated. It’s smart. And it lets you stay At the same time, OEMs also expect suppliers to work on top of your working capital in real-time. at an international scale to support the automakers’ global platforms. So, for example, a manufacturer that wants to Most importantly, it’s totally pro-business. supply a part in North America also has to produce it in two or three other geographies. We call this “manufactur- baml.com/explorecashpro ing in theater,” and it means the supplier either has to find a local partner or build a plant in that new location. Each option costs money and entails risk, but has the potential to be very lucrative.
WHAT DO SUPPLIERS HAVE TO DO TO GET STARTED, AND WHAT’S THEIR BIGGEST CONCERN WHEN PLANNING THESE GLOBAL STRATEGIES?
Getting the finances in place is usually one of the first TM orders of business. The power of global connections We have a client, a small public company, that knew it needed more of a global manufacturing footprint but was behind the curve. We first helped them increase debt For marketing disclaimer, visit baml.com/disclaimer ©2015 Bank of America Corporation 12-14-0526 capacity to make acquisitions. Then we helped implement 20150223-NEWS--0006-NAT-CCI-CD_-- 2/20/2015 4:57 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS February 23, 2015 Ex-Im Bank sees opportunity to increase Detroit exports
BY AMY HAIMERL It was a $17 billion than $10 billion in total export value enue back to the hometown.” CRAIN’S DETROIT BUSINESS project with a $3 bil- since 2007. And while the bulk of The support could have a shelf lion cut for Ghafari. that — $7.3 billion — comes from life, however. Ex-Im’s charter is up The chairman of the Export-Import But financing that the bank’s support of Ford Motor Co. for renewal by Congress this June. Bank of the United States was in De- deal would tie up all during the recession years, 74 per- And while Gov. Rick Snyder and troit last week, looking at the resur- his lines of credit and cent of firms assisted are small both of Michigan’s senators, Deb- gence of design-related manufac- jeopardize the compa- businesses. That, in turn, helps bie Stabenow and Gary Peters, are turing here and discussing how to ny’s existing clients. cities grow and add jobs, Hochberg supportive of the agency, there has increase export opportunities. So Bank of America explained. been criticism. “I’m confident Detroit can be the connected him with “There is more to growth than U.S. Rep. Justin Amash, R-Grand center of this,” Fred Hochberg told the Ex-Im Bank, convention centers and stadiums,” Rapids, introduced legislation in a group of small-business owners, which issued a $7 mil- he said. “We tap local small busi- 2012 to end the bank and is not sup- bankers and government aides lion guarantee of nesses and help them to grow into porting its reauthorization now. gathered by the Detroit Creative Corri- working capital. international markets.” And Mike LaFaive, director of fiscal dor Center at the Taubman Center ANDREW HARRER/BLOOMBERG “When you’re going The bank does that without any policy for Midland-based conserva- on Tuesday. Fred Hochberg, chairman of the Export-Import Bank overseas, it’s difficult cost to U.S. taxpayers. Ex-Im is an tive think tank Mackinac Center for The bank, which is an indepen- of the United States, on Ex-Im’s role: “We are Plan B. for a bank to lend on independent, revenue-generating Public Policy, told Crain’s last fall dent agency of the U.S. government, Commercial banks are Plan A. We’re not here to those assets,” said agency that contributed $675 mil- that he doesn’t believe the federal provides export credit and guaran- compete with banks.” Robert Kling, who rep- lion to the U.S. Treasury in 2014. government should be involved in tees for working capital loans. Many Bank of America for more than 30 resented Bank of Having this assistance is critical the private markets. banks, for example, won’t lend years. The firm now provides archi- America at the event. “When to helping reignite Detroit’s design- “If a company claims they could- based on foreign receivables — even tecture, engineering, consulting you’re generating a great deal of focused manu- n’t find financing without Ex-Im if the business is well-qualified. The and construction services to a vari- receivables overseas, how do you facturing indus- Bank, one would question whether deal can be too risky for traditional ety of clients, from American Airlines leverage those? The Ex-Im facility tries, according they should be in the export busi- underwriting because it’s hard to to Ford Motor Co., across the globe. was the perfect fit for Ghafari to do to Matt Clayson, ness if a private bank isn’t willing track down the money if the buyers But when it started, owner Yousif that.” director of DC3, to take that risk,” he said. “It’s sim- default. Ghafari focused Being able to export services in- who helped orga- ply not the proper role for any level But if the Ex-Im Bank steps in and on designing ternationally has propelled the nize the meeting. of government to provide this type guarantees the loan, banks can manufacturing company’s growth: Ghafari & Asso- Unlike in other of export encouragement; it distorts loosen the purse strings. Because facilities for au- ciates grew by 3 percent domestical- countries where the marketplace, unfavorably.” the deals are based on strong rev- tomotive firms. ly in 2014 — and 28 percent interna- small businesses And yet Ghafari said that he enue streams, the bank had less tionally. start by export- In 2004, how- Clayson would not have been able to grow than a .2 percent default rate as of ever, a friend Across the country, Ex-Im has ing because bor- without the loan guarantees of- September 2014. connected him underwritten deals for 8,973 firms, ders are so small, U.S. companies of- fered by the Ex-Im Bank. Instead, “We are Plan B,” Hochberg said. with ministers generating $279 billion of total ex- ten don’t consider the option or the airport contract — and the “Commercial banks are Plan A. in Doha, the cap- port value since 2007. That support- even understand how to make it American jobs created — would We’re not here to compete with ital city of ed more than 164,000 jobs in 2014, possible. Ghafari have gone to another firm in an- banks.” Qatar, and Gha- the bank said. “One of our goals is to connect other country. For Dearborn-based Ghafari & As- fari won a contract to design and In Michigan, Ex-Im Bank has as- to markets,” Clayson said. “We That’s the same for Detroit- sociates, Plan A didn’t work even manage the construction of the sisted 224 companies to finance want to become more internation- based Global Titanium Inc., which though it had been a customer of New Doha International Airport. their export plans, generating more al and connected and get more rev- buys titanium scrap on the global market, refines it and then sells it to steel makers. Ex-Im Bank pro- vides a $2 million loan guarantee to Wells Fargo so that it can extend THE MILLER LAW FIRM a line of credit to Global Titanium. Changing the Odds in our Clients’ Favor “We get into areas where we’re not sure the quality of the receiv- able,” said Vice President and CFO Dennis McCarthy. “We’re a cash in- tensive business. Having a lot of cash tied up and waiting for a re- ceivable, well, a lot of exports can be 90 days, which is more like 100 or 120 days; that’s hard. Ex-Im Bank is a great resource. It helps us with the stability and making sure our cash is safe and making sure that we’re going to collect the money.” Amy Haimerl: (313) 446-0416, [email protected]. Twitter: @haimerl
BANKRUPTCIES The following businesses filed for pro- tection in U.S. Bankruptcy Court in De- troit Feb. 13-19. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation: Chair Covers and Linens Inc., 25914 John R Road, Madison Heights, voluntary Chapter 11. Assets: $502,918.98; liabili- ties: $2,294,734.86. The Miller Law Firm is Recognized Chair Covers Leasing Inc., 25914 John R Road, Madison Heights, voluntary Chapter 11. Assets: $986.18; liabilities: as a Leader in Complex Business Litigation $84,496. Chair Covers Inc., 25914 John R Road, Madison Heights, voluntary Chapter Q Automotive supplier counseling Q Commercial and business lawsuits 11. Assets: $400,829.72; liabilities: $1,194,291.40. Q Employment litigation Q Shareholder and partnership disputes Detroit Intermodal Transport Inc., 7475 Holland Road, Taylor, voluntary Chapter 7. Assets: $6,878; liabilities: Referral fees honored on contingency fee cases $675,061. 950 West University Drive, Suite 300 Polar Heating & Cooling Inc., 6986 Rattalee Lake Road, Clarkston, voluntary Chap- Rochester, Michigan 48307 248-841-2200 millerlawpc.com ter 7. Assets: $2,502; liabilities: $135,711. — Compiled by Natalie Broda DBpageAD_DBpageAD.qxd 2/17/2015 11:56 AM Page 1
SWITCH YOUR BUSINESS TO VERIZON GET $150 ACCOUNT CREDIT for each smartphone line. Credit available for each port-in-eligible number brought to Verizon & activated on new 4G LTE smartphones. Requires new 2-yr. activation on $34.99+ plans. Offer expires 2/28/15.
Be unstoppable. Enjoy up to 48 hours of battery life,1 and get up to 8 hours of battery life in just 15 minutes† with Turbo Charger. $14999 (32 GB)
New 2-yr. activation on $24.99+ plan required. Offer expires 3/31/15.
Get the coverage, speed and reliability your business needs with America’s Most Reliable Network. Experience why more small businesses choose Verizon than any other wireless carrier.*
AMERICA’S LARGEST AND MOST RELIABLE 4G LTE NETWORK
CALL: 1.800.VZW.4BIZ | CLICK: vzw.com/business-bill-credit | VISIT: vzw.com/storelocator
1Based on an average user profile that includes both usage and standby. Actual battery performance will vary and depends on signal strength, network configuration, features selected and voice, data and other application usage patterns. †Charging speeds vary based on battery emptiness; usage based on average user profile and may vary based on network signal, configuration and usage patterns. * Results based on third-party study. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan & credit approval. Up to $350 early termination fee/line. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. © 2015 Verizon Wireless. I4016 20150223-NEWS--0008-NAT-CCI-CD_-- 2/20/2015 6:10 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS February 23, 2015 OPINION Bridge plan may be model for funding t last. The last major financing obstacle to building a new bridge linking Detroit to Canada was resolved last Aweek with an announcement that a “P3” partnership created by the Canadian government will take on the U.S. cus- toms plaza, too. The entire bridge project will be built under this structure. The government in Ottawa is not spending the cash but will back private-sector financing, with the “public-private part- nership” repaid through tolls. So the construction jobs will be coming soon; the bridge is scheduled for completion in 2020, of- fering redundancy to a critical trade crossing. While we celebrate progress, we lament that it has taken this long and with no investment by President Barack Obama, who did not include any money for the customs plaza in his budget this year — or any year. That makes many Canadians wonder just how valued they are as allies. Meanwhile, U.S. Rep. Candice Miller is a mite irked with Washington leadership because she proposed virtually the same model to fund a customs plaza for the Blue Water Bridge in Port Huron a year ago. That project has languished for a decade. The good news: The spotlight on the P3 model may lead to its use in other projects. Michigan, and the U.S. as a whole, have billions of dollars in infrastructure needs. And an anti- tax climate among voters. We need more strategies to fund infrastructure invest- LETTERS ments. Our Canadian neighbors might have the right idea. Tax structure fix took too long Health study too focused on Detroit It could be worse. Editor: Only two city indicators were Crain’s Detroit Business As Dustin Walsh reports on Page 1, Michigan’s liability on The Jan. 26 issue of Crain’s used (accounting for 40 percent welcomes letters to the editor. tax credits given to mostly large employers during the state’s reported in a Rumblings item All letters will be considered for of the final score): 1. The number economic doldrums in the 2000s could have been four times (“Ranking: Detroit is an unhealthy publication, provided they are of doctors per 1,000 residents; greater if the state hadn’t dumped its Michigan Business Tax. city”) on a study from signed and do not defame 2. The percentage of doctors Some companies simply abandoned the credits when the state BetterDoctor.com that ranked De- individuals or organizations. who were highly rated on troit as the 40th-healthiest city out BetterDoctor.com. adopted a corporate income tax model under Gov. Rick Sny- Letters may be edited for length of the 50 tracked. and clarity. Let us be very clear that these der; to claim the credits, a company has to stay on the old tax This is how the article began: Write: Editor, Crain’s Detroit measures do not reflect on the resi- “It’s probably not a surprise that structure. Business, 1155 Gratiot Ave., dents of Detroit. Rather, this is an Hindsight suggests the credits — awarded primarily dur- Detroit is at the bottom when it Detroit, MI 48207-2997. indicator of how the medical estab- comes to health.” Later it says, “A ing Gov. Jennifer Granholm’s tenure as a way to hang on to Email: [email protected] lishment has abandoned the inner high number of uninsured resi- city over the years, as doctors, hos- thousands of jobs — were too generous. dents and a poor American Fitness pitals and hospital beds head to Will there be a legislative remedy? If the state can find a way Index score contributed to De- measures. So it wasn’t the city the suburbs. to increase revenue without eternal litigation, we’re sure there troit’s dismal health rating.” alone contributing to the dismal Let us be clear on our measures will be many other states in the same boat that will follow. If one had taken the time to ex- ranking but suburbanites who ac- and not blame the residents of De- plore the study’s methodology, as I count for a much larger share of The lesson here may be: Michigan would have been better troit, who are the victims. am wont to do, one would see that the population. And these two Kurt Metzger off fixing its business tax structure years ago rather than pil- the rate of uninsured and the AFI measures accounted for 60 percent Mayor, Pleasant Ridge ing on the credits. score were both regional, not city, of the final score. Director emeritus, Data Driven Detroit KEITH CRAIN: There are some folks who are smiling You always figure that when we that their customers Hardware stores are the changing climates. It seems like forever these days get really bad winter weather, aren’t freezing in the smiling as we load up on Somehow, we may think that — but it won’t be long before the everybody hates it. dark. salt and shovels and our winters are getting tougher, golf courses open and the ski Well, I am happy to report that Regardless of what snowblowers for our with colder temperatures and slopes close. there are a lot of people in South- Detroit Edison says, homes. Of course, the more snow. But if we check the And businesses all over Michi- east Michigan who are smiling all every time there is an- landscape companies records, we might discover that gan will switch once again from the way to the bank. other power outage, I are keeping busy until our seasons are about the same as winter to summer, and we’ll all I don’t mean just the snowmo- am sure hundreds of spring making sure that always, despite the threats of glob- look forward to the next season. bile dealers who are, no doubt, DTE customers call up our driveways are clear. al warming. More business for some, differ- having one of the best years ever. their local auxiliary We live in a seasonal In a couple of months, we’ll see ent businesses for others. But let’s The guy who plows our driveway power company to have climate, and for busi- lots of businesses change their in- enjoy our seasons. Especially is smiling because once again I a home power supply in- ness all over Michigan, ventory and put away the snowmo- since we don’t really have any said we’d pay by the plow, not the stalled. I sure hope DTE we get used to seeing biles and bring out the motorcy- choice. season. And let us not forget there doesn’t have an interest in any of seasonal businesses learning to cles. Snowblowers will be Winter will end and summer are a lot of folks who have furnace those companies that seem to be adapt to the ever-changing seasons. switched for lawn mowers, and will appear. And we’ll stop rooting and heating companies that have doing a land-office business these From hockey rinks to golf cours- salt will be replaced by chemicals for the Red Wings and start check- been busy all season making sure days. es, we learn to live with and enjoy for our pools. ing out the Tigers. 20150223-NEWS--0009-NAT-CCI-CD_-- 2/20/2015 12:17 PM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 9 Oakland Township faces lawsuits over proposed Moceri development
BY KIRK PINHO the aesthetic pleasure and benefit of ment even though the township ways get what you want. You have the Royal Oak office of Howard & CRAIN’S DETROIT BUSINESS current residents at the expense of has a designation in its zoning or- to make an accommodation so that Howard Attorneys PLLC, also said se- the owners of vacant land.” dinance for multifamily. the disabled are able to participate nior or assisted living housing can’t Oakland Township finds itself The zoning ordinance prohibits “Under federal law and state in your community.” be prohibited through zoning. in federal court facing a pair of multifamily buildings taller than law, you have to vary from what Jack Dolan, a partner at Clinton “If the zoning had been changed housing discrimination lawsuits 35 feet, more than two stories, or you’d like to do and make some ac- Township-based York Dolan & Tom- to accommodate assisted living centered on the proposed develop- more than 135 feet in length. In ad- commodations for the handi- linson PC who has represented mu- and then changed back based on a ment of a $93 million senior and dition, no building can have more capped so they can participate,” nicipalities in the past, said com- referendum, there is probably a disabled living community. than 16 units, according to the law- said Edward Kickham, member of munities can’t discriminate with good argument to be made that the If the court sways in favor of suit. Royal Oak-based Kickham Hanley regard to housing based on age un- change in zoning or the intent in Auburn Hills-based developer Mo- “Those restrictions render as- PLLC, the firm representing Moceri der provisions of the state’s Zon- change in zoning may have been ceri Cos., which is suing the town- sisted living facilities with com- in the lawsuit. ing Enabling Act of 2006. based upon discriminating against ship in a zoning dispute over a pro- mon dining and other amenities “If there is a demonstrated need assisted living (development) or ject proposed in 2011, the Blossom “Oakland Township has refused impracticable and cost prohibi- for a lawful land use, then a zoning people who need it,” he said. Ridge development of 134 apart- to do this. They will have a whole tive,” the lawsuit says. ordinance should accommodate it, ments, 60 single-family homes and litany of reasons why they don’t Kirk Pinho: (313) 446-0412, kpin- not prohibit it.” 44 duplexes for senior and assisted It says the township has no land want assisted living in the town- [email protected]. Twitter: @kirkpin- living care at Adams and Dutton zoned for multifamily develop- ship. But the law says you don’t al- Timothy Wittebort, member in hoCDB roads can move forward and be completed in about two years. If the legal tangle results in a ruling in favor of the township, the 42-acre site will remain zoned for up to 61 single-family residential homes only. In December, Moceri/DM Invest- ments LLC, a wholly owned sub- sidiary of Moceri Cos., and former township supervisor Joan Buser, now a South Carolina resident, and the Michigan Paralyzed Veterans of America filed separate lawsuits against the township alleging viola- tions of the federal Fair Housing Act, the Americans with Disabili- ties Act, the Michigan Persons with WE BELIEVE Disabilities Civil Rights Act, and the equal protection guarantee of the U.S. Constitution, among others. This month, Daniel Kelly, part- ner at Troy-based Giarmarco Mullins PERSONAL ATTENTION & Horton PC who is representing the township, filed a response in U.S. District Court denying the allega- tions. Voicemails and an email left IS BEST GIVEN IN PERSON. with Kelly last week were not re- turned in time for deadline Friday. Jamie Moore, interim township When you work with the Huntington Private Client Group, we meet with you face-to-face. manager, and township Supervi- sor Terry Gosner declined to com- Using our Listen, Plan, Advise® approach, we work with you to create a clear plan that fits ment last week. In August 2012, the township your needs, giving you meaningful advice about the options available for meeting your board approved rezoning the land to accommodate the Blossom Ridge de- objectives. As your goals change over time, we help you review your plan to make any velopment, which would sit on prop- necessary revisions. And we keep you involved every step of the way. erty that Dominic Moceri, partner of Moceri Co., said his company has owned for about three decades. A referendum on the rezoning the next month, however, was ap- proved to go on the ballot following public outcry from what the Moceri lawsuit calls “a relatively small and Eric W. Dietz uninformed, but impassioned and vocal minority of residents.” In November 2012, five new mem- Senior Vice President and Regional Manager bers of the township board were Private Client Group elected, replacing the majority that had voted in favor of the rezoning. Huntington National Bank In August 2013, township voters overturned the rezoning in a 73-27 vote. 220 Park Street Opponents of the development have cited concerns about traffic Birmingham, MI 48009 congestion and depletion of housing 248.637.8206 phone values due to the development. They 248.824.4441 cell have also said other communities could accommodate Blossom Ridge. [email protected] The company has developed about 1,400 of the 6,000 homes in the township, including the $137 million Pinnacle development on Silverbell Road east of Adams Road, Moceri said. The Moceri suit alleges that the HUNTINGTON PRIVATE CLIENT GROUP township’s zoning requirements The Huntington Private Client Group is a team of professionals that includes Private Bankers and Personal Trust Administrators and Portfolio Managers from The Huntington are “unreasonably narrow, restric- National Bank and licensed investment representatives of The Huntington Investment Company, who work together to deliver a full range of wealth and financial services.
tive and exclusionary, and are de- Member FDIC. ®, and Huntington® and Listen, Plan, Advise® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.™ signed to exclude multifamily is a service mark of Huntington Bancshares Incorporated. ©2014 Huntington Bancshares Incorporated. rental housing and to discourage all but luxury housing in the township and preserve a ‘rural character’ for DBpageAD_DBpageAD.qxd 2/18/2015 8:46 AM Page 1
When Companies Turn to Dealmaking, They Turn to Dykema.
These are but a few of the major deals that the law firm of Dykema helped its clients close in 2014. From middle-market businesses to publicly traded institutions, privately held enterprises to large-scale public financings, clients nationwide look to Dykema for sophisticated counsel, top-tier representation and customized solutions. When you consider your next transaction, choose Dykema.
Compuware Corporation AGM Automotive, Inc. Essen BioScience Sale of Changepoint, Uniface and Equity investment by Trive Capital Strategic investment by SFW Capital Partners Professional Services Business Units $160,000,000 January 2014 January 2014 April 2014
Michigan Growth Capital Partners
Michigan Growth Capital Partners U.S. Manufacturing Corporation Cooper-Standard Automotive, Inc. Mezzanine financing and equity Sale to Wynnchurch Capital Sale of thermal and emissions product line co-investment in Gas Station TV to Halla Visteon Climate Control Corp. $46,000,000 June 2014 June 2014 July 2014
CSIG Holding Company LLC Qualitor, Inc. Dorilton Capital Advisors, LLC Acquisition of Hub International Midwest Sale of Qualitor, Inc. by HCI Equity Partners Acquired majority interest in to Wellspring Capital Management Western Energy Support & Technology, Inc.
November 2014 November 2014 December 2014
Detroit Water and Detroit Regional Convention City of Detroit Downtown Sewerage Department Facilities Authority Development Authority Revenue and Revenue Refunding Bonds, Special Tax Revenue Bonds, Tax Increment and Concession Series 2014 Series 2014 Revenue Bonds Series 2014A & 2014B $1,790,710,000 $295,350,000 $450,000,000 September 2014 October 2014 December 2014
Exceptional service. Dykema delivers.
www.dykema.com California | Illinois | Michigan | Minnesota | Texas | Washington, D.C. © 2015 Dykema Gossett PLLC Attorney Advertising 20150223-NEWS--0011-NAT-CCI-CD_-- 2/20/2015 11:33 AM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 11
REPORTER’S NOTEBOOK
Chad Halcom covers litigation and the defense industry. Call (313) 446-6796 or write chalcom @crain.com. Law Chad Halcom Rainbow Loom gains tool for knockoff fight A series of patent infringement lawsuits may finish weaving their way Big biz cases of 2014 through the courts soon as Choon’s Design LLC readies a new tactic for coping with knockoff products. 014 was a year in which long-simmering experts believe they will either reshape public The Wixom-based maker of Rainbow Loom bracelet craft kits, owned by legal controversies over Obamacare, policy through upcoming rulings from the U.S. inventor-engineer same-sex marriage and a state law gov- Supreme Court or its counterpart in Michigan, or Cheong Choon Ng erning businesses with public contracts generate future litigation. and his wife, Fen 2 Chan, won a Feb. reached pivotal trial court orders or appellate de- Cases included here could also become guide- 11 ruling from a cisions. posts in future cases involving environmental U.S. International Some of these disputes are not over, and legal contamination, theft of trade secrets and more. Trade Commission administrative law judge that 10 companies, including six based in or importing Ng goods from China, infringed on Ng’s patent. Conflicting prevailing-wage rulings head to state’s high court The matter now goes to the Trade Commission board to sign off on a BY CHAD HALCOM general counsel for the proposed exclusion order to U.S. CRAIN’S DETROIT BUSINESS JUDGMENT SUMMARIES Ann Arbor-based Michigan Customs and Border Protection, barring Municipal League, said not Hobby Lobby ruling on birth control coverage such products from the country and court battle 90 years in the making all local governments authorizing agents to seize them. has just landed before the Michigan left wiggle room over definition of ‘closely held’ firm, Page 12 have the same views to- “We’d already had a trademark Supreme Court, and it could rewrite ward prevailing wage, but A federal judge’s decision to strike down approved to help enforce the name, the wage and benefit rules for mu- A Michigan’s ban on same-sex marriage could the court case is about bal- nicipal construction and government con- so we had the power to get customs shape a new national policy on such ancing state and local con- to look into things that were named tracting for businesses statewide. marriages, Page 13 trol. the same … or similar,” said Choon’s The high court in December agreed to hear Altair Engineering case could have impact on “Aside from how commu- attorney, John Siragusa of Carlson, an appeal from the Associated Builders and Con- valuations of trade secrets, Page 15 Mathewson nities might feel politically Gaskey & Olds PC in Birmingham. tractors of Michigan, which prevailed before an Other verdicts and settlements, Page 14 about this particular ordi- “But a lot of infringers had stopped Ingham County judge in 2012 but then lost at nance, this (issue) is something that could, and using the word ‘loom’ or anything that the Michigan Court of Appeals last May in its found it did not have to adhere to Lennane, should, be decided at the local level,” said obvious, and if it wasn’t similar enough challenge to a prevailing-wage ordinance in Mathewson, adding that the league expects to there wasn’t an argument to help you which relied on a 1908 version of the state Lansing. file its own brief in the court case supporting stop that shipment — before this ruling.” constitution that was replaced in 1963, and The May ruling on local prevailing wage cities. An ITC exclusion order, he said, will ordinances is significant because it directly upheld a Lansing prevailing-wage ordinance governing municipal building contracts. “Lansing clearly feels this is in the best in- allow customs enforcement against conflicts with a 2009 appeals court ruling terest of its own community. Some on the knockoffs based on structural or design “But that position is also at odds with the over Detroit’s living-wage ordinance. The board of our legal defense fund felt maybe similarities to Rainbow Loom as well. cases tackled different laws, but they both court’s own ruling in the (Detroit) case,” said Chris Fisher, president and CEO of Lansing- this potential ruling from the court could af- Choon’s Design has filed 14 federal hinge on a 1923 court ruling that the state fect other ordinances their cities enact, even lawsuits since August 2013 for patent hadn’t given local governments power to gov- based Associated Builders. “And I think infringement against would-be ern wages or working conditions. that’s one of the reasons the Supreme Court See Wage, Page 12 competitors. Ten have been settled or It now falls to the Supreme Court to decide wants to take this up now — just to be consis- otherwise closed, while four are pending. which interpretation is correct. tent in (the courts’) position on these issues.” Siragusa said litigation grew when At issue before the court are prevailing- The court wants to hear arguments on Rainbow Loom sales were rapidly wage ordinances, which are local govern- whether cities have authority to make pre- expanding about a year ago but ment rules modeled in part on a 1965 state vailing-wage ordinances, and whether should abate now that sales are law requiring the state, its school districts Lennane should be overturned. normalizing. The company says it has and public universities to pay the going rate Senate Bills 1-3 and House Bills 4001-4003, a sold more than 7 million Rainbow of wages and benefits negotiated with con- tie-barred package of legislation to repeal the Looms since the product was state’s prevailing-wage laws, were the first launched in late 2011. tractors in that area. The Detroit case involved a group of em- bills introduced in the new legislative ses- “A year ago last holiday season, it ployees suing Guardian Protective Services Inc. sion of both chambers last month. Gov. Rick was the kind of turnaround where a Snyder, however, has opposed the legisla- Rainbow Loom product gained some over alleged living-wage violations in its con- tract to provide security guard services at tion, and the bills haven’t seen any move- exposure and became popular in a ment in committee since mid-January. September-October time frame, and by Cobo Center. The Court of Appeals found that the 1923 case, Attorney General ex rel The state law doesn’t cover municipal gov- November-December there were copies ernments, but many have passed ordinances in mall kiosks all over the country,” Lennane v. Detroit, was long obsolete, but it of their own. William Mathewson, Siragusa said. still “is binding precedent and we must fol- Ng has said he developed the low it,” siding with Guardian. Rainbow Loom in 2010 after watching But in May, on the Lansing case, the ap- his daughters twist ponytail bands peals court, with a different set of judges, into rubber band bracelets. He and Chan invested $10,000 to bring it to market, and the company reported revenue grew to $44 million in 2013. The company has rolled out several new products, Siragusa said. The travel- sized Monster Tail loom debuted last year, and the company showcased its Alpha Loom and Hair Loom products at the New York toy fair Feb. 14-17.
ISTOCK PHOTO 20150223-NEWS--0012,0013-NAT-CCI-CD_-- 2/20/2015 11:34 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS February 23, 2015 Law Wage: Who will prevail? Hobby Lobby ruling left wiggle room ■ From Page 11 if they have nothing to do with pre- whatever authority has been given vailing wage.” to them, otherwise power remains Fisher said the issue is one of with the state, while the current over definition of ‘closely held’ firm competition and opportunity for constitution says cities now have all small business, and also of return- authority except that which the ing value to taxpayers on costly state has withheld from them,” said BY CHAD HALCOM Wixom-based weapons sight- fied as closely held for purposes construction projects. Michael Bogren, CRAIN’S DETROIT BUSINESS ings manufacturer Trijicon Inc., of Hobby Lobby, said Patrick Small contractors often have a dis- chairman of the Oxford-based defense industry Gillen, an attorney for the compa- incentive to add the administrative board of Bloom- Ever since the U.S. Supreme Court supplier Barron Industries Inc., Uti- ny and an associate professor at and personnel costs of overseeing field Hills-based held that some corporations with ca-based Weingartz Supply Co. and Ave Maria School of Law. prevailing wage job classifications Plunkett Cooney religious owners don’t have to of- Ann Arbor Township-based Domi- Autocam Medical LLC, an affiliat- and labor markets on government PC, which is rep- fer insurance for birth control, no’s Pizza Inc. were among about a ed medical device component projects, which larger contractors resenting Lans- many employers and attorneys dozen Michigan businesses in lit- maker that is still owned by the typically manage as a routine busi- ing in the case. have wondered who qualifies for igation with the federal govern- devoutly Catholic Kennedy fami- ness function. Fixed overhead costs “So the issue that exemption and how far it goes. ment over some forms of contra- ly, went forward with its portion can also make it difficult to compete for us isn’t the or- The court found that “closely ception coverage, before the high of the case after the sale. That with a larger bidder without the off- dinance itself, it’s held” companies like Hobby Lobby court’s Burwell v. Hobby Lobby company won a ruling in Janu- Bogren set of a wage advantage, he said. the authority of Stores Inc. or Conestoga Wood Spe- Stores ruling in June. ary that it’s covered by Hobby “If the court sides with us, it’s a the city.” cialties Corp. did not have to cover Barron, Weingartz and Domi- Lobby and the government must big win for competition for con- The Municipal League and some forms of contraception that its no’s have since obtained court in- pay its legal bills. struction firms of all sizes as long labor groups are expected to sub- owners object to on religious junctions in their favor in those The high court found that the as they’re qualified and able to do mit briefs for the court to review, grounds. But what makes a com- cases. Trijicon has been sparring federal Religious Freedom Res- the work required,” he said. “It’s along with Lansing and the pany closely held, and can those with federal officials in another toration Act of 1993 forbade the also a win for taxpayers, and it’s ul- builder association. Fisher said employers also object to other court about the language of a pro- government from requiring com- timately even a win for construc- Associated Builders hopes to see a federal regulations? posed ruling in its own favor. panies like Hobby Lobby and Con- tion jobs, because you can increase ruling by late summer or early fall. The Internal Revenue Service de- Autocam Corp., a Kentwood auto estoga to offer contraception cov- the scope of construction you’re Associated Builders and Contrac- fines a closely held corporation as parts supplier with more than erage under a 2012 edict from the able to do if each dollar goes far- tors of Michigan v. City of Lansing, being more than 50 percent owned 2,100 employees, bowed out of a U.S. Department of Health and Human ther and costs are better man- Docket #149622, Michigan Supreme by five or fewer individuals in the legal challenge to a contraception Services. Court. Kraig Schutter, partner, Ma- mandate by the U.S. Department of aged.” last half of a tax year, and not a The ruling did not fully define But if the Supreme Court also sud, Patterson, Schutter, Peters & Health and Human Services after personal service corporation. But what constitutes a closely held strikes down Lennane, it could Vary PC, Saginaw, for Associated Johnson City, Tenn., private eq- the court opinion doesn’t refer- company, however, since there strengthen living wage ordinances Builders. Michael Bogren, partner, uity firm NN Inc. in July acquired ence IRS or define the term, and was no dispute that Hobby Lobby like Detroit’s and affect companies Plunkett Cooney PC, for Lansing. a majority stake in Autocam in a local experts told Crain’s the de- and Conestoga qualify as family- that have non-construction con- Chad Halcom: (313) 446-6796, deal worth $300 million. bate isn’t over which corporations owned businesses. Gillen said he tracts with local governments. “The [email protected]. Twitter: might have religious views — or Partly at issue after the sale old constitution said cities have @chadhalcom acquire them. was whether Autocam still quali- See Next Page 20150223-NEWS--0012,0013-NAT-CCI-CD_-- 2/20/2015 11:34 AM Page 2
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 13 Law
From Previous Page cedures outside of contraception. But he did not expect it to affect did not know if Autocam Corp. many Michigan companies. now covers contraceptives, but it “I have no doubt someone, some- is not exempted by the January where might raise those kinds of ar- court injunction in favor of Auto- guments. But the Hobby Lobby rul- cam Medical. ing was an uphill battle, where an Meanwhile, legislatures in six employer had to really demonstrate .FFU states — Georgia, Indiana, North a need to have its policy a certain Carolina, Texas, Utah and way,” he said. “Most employers do Wyoming — have seen bills intro- not have that same depth of convic- duced to create or expand a state tion, they just want to do business Miriam law similar to the federal religious and do it the right (legal) way.” freedom act. Gillen, however, said the owner- Michigan, which doesn’t have a ship issue and scope of Hobby Lob- state RFRA law of its own, saw one Rosen by is likely to come up again, even proposed during the lame-duck ses- sion of the Legislature in Novem- if private equity co-owned Auto- ber. The bill, which then-Speaker cam Corp. didn’t choose to raise Attorney. Advisor. Advocate. Jase Bolger proposed to pair with a the issue in court. proposed protection of sexual ori- “The court ruled on the case in entation under the state Elliott- front of it in Hobby Lobby, and did- Larsen Civil Rights Act, cleared the n’t have to answer this broader $IBJS /BUJPOBM-BCPSBOE House but died at the end of the leg- question (of who is covered),” he islative session in December. said. “But the logic of the decision &NQMPZNFOU1SBDUJDF The 1993 religious freedom law applies to all corporations, much applies to the federal government, like Citizens United (v. Federal not to states. State bills introduced Election Commission in 2010), in the past year have often been as- which engages the question of the sailed as an attempt to authorize First Amendment rights of corpo- some forms of discrimination rations and individuals who own against gays and lesbians. them. Local attorneys have said they ex- “I think the court’s going to pect other cases to emerge about reg- have a hard time limiting Hobby ulations that violate business own- Lobby just to the most closely held McDonald Hopkins PLC ers’ rights under the religious corporations.” freedom law, in other areas, even Justice Ruth Bader Ginsburg, in 8PPEXBSE"WFOVF 4VJUF #MPPNöFME)JMMT .*t though the lead opinion in the a dissenting opinion, was inclined James J. Boutrous II, Detroit Managing Member Supreme Court case states the ruling to agree. is limited to contraception insurance. “Although the court (lead opin- For example, the National Right to ion) attempts to cabin its language $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI Work Legal Defense and Education to closely held corporations, its logic Foundation Inc. also tried to argue extends to corporations of any size, mcdonaldhopkins.com Carl J. Grassi, President to the National Labor Relations public or private,” she states. Board that Hobby Lobby bolstered “(There’s) little doubt that RFRA Pacific Lutheran University’s chal- claims will proliferate, for the lenge to a unionization election for court’s expansive notion of corpo- non-tenure-track professors. The rate personhood — combined with NLRB in January found the profes- its other errors in construing RFRA sors didn’t per- — invites for-profit entities to seek form a religious religion-based exemptions from reg- function, and ulations they deem offensive to sided against their faith.” the university. Studies by Columbia University Michael and New York University indicate 52 Burns, executive percent of all private sector em- vice president of ployees work for “closely held” the American So- corporations — those with a small ciety of Employers number of shareholders, no ready Burns in Southfield, market for company stock and said it’s possible substantial shareholder involve- the ruling could have implications ment in management decisions. for employee dress codes, or per- Chad Halcom: (313) 446-6796, haps an employer’s choice to cover [email protected]. Twitter: vaccinations or other medical pro- @chadhalcom Same-sex marriage dispute could shape national policy Engineering/ Business Computers Education Health Human Technology Services BY CHAD HALCOM and three others from the 6th U.S. CRAIN’S DETROIT BUSINESS Circuit Court of Appeals. At issue was whether April De- A Detroit federal judge’s decision Boer and Jayne Rowse, two nurses to strike down Michigan’s 2004 ban from Hazel Park, can adopt children “TO FIND QUALIFIED EMPLOYEES, I RELY ON on same-sex marriage was widely as a couple. Michigan law allows BAKER COLLEGE.” anticipated when it came last March only married couples or single peo- out of a Hazel Park couple’s lawsuit. ple to adopt. Rowse has individually But the dispute has taken on a few adopted two of the three children in twists in the courts since then, and their home, and DeBoer the third. could shape a new national policy on But the Friedman ruling March .com such marriages. 21 prompted about 300 same-sex Ready. Trained. Hire. U.S. District Judge Bernard couples to obtain marriage licens- Friedman found the voter-approved es before Michigan Attorney Bill Michigan Marriage Amendment to Schuette appealed and obtained a the state constitution violates the stay on the decision the next day The service is free—the result is just the person you’re looking for. Equal Protection Clause of the fed- from the 6th Circuit. FIND THE RIGHT CANDIDATE FOR THE JOB AT HIREQUALIFIED.COM eral one. The U.S. Supreme Court 6482HQ agreed last month to hear that case See Marriage, Page 14 20150223-NEWS--0014-NAT-CCI-CD_-- 2/20/2015 11:35 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS February 23, 2015 Law
obtained a separate $9.5 million judgment against Onyx Capital, deal, but one of them is Health Alliance Plan of Michigan, which OTHER VERDICTS AND SETTLEMENTS Farr and Dixon, who has since appealed. claims in its own suit brought last fall that the deal undervalued its damages from Blue Cross practices. General Retirement System and Police and Fire Retirement The Shane Group Inc. et al v. Blue Cross Blue Shield of System of Detroit, Board of Trustees of Pontiac General Michigan. Judge Denise Page Hood, U.S. District Court, $30 Precious Holder, Darwin Watts et al v. Enbridge Energy LP, Employees Retirement System v. Onyx Capital Advisors LLC, million, June 24 (subject to final approval). Enbridge Pipelines Lakehead LLC et al. Judge Gordon Quist, Second Chance Motors LLC et al. Judge Denise Page Hood, U.S. U.S. District Court – Grand Rapids, $6.25 million, Dec. 24. District Court, $119.1 million, March 26. Several million businesses, unions, insurance companies and individuals in Michigan could get partial refunds for health care The settlement stems from a 2010 oil spill in the Kalamazoo Attorneys for city employee pensions in Detroit and Pontiac won costs in a Blue Cross settlement preliminarily approved by River and Talmadge Creek, from a pipeline belonging to a pair of default judgments in a 2010 lawsuit: one for $71.1 Hood in June. The $29.99 million deal would resolve a lawsuit Calgary, Alberta-based Enbridge Inc. The pipe spewed more million against private equity firm Onyx Capital and two related consolidating several cases that surfaced after the Michigan than 800,000 gallons of crude oil, and the company has companies, and another for $48 million against Georgia car attorney general and the U.S. Department of Justice filed their previously estimated the cleanup cost to be about $1.2 billion, dealer Michael Farr and three businesses he controlled. The own suit over the Blues’ “most favored nation” and “most including $227 million on environmental consultants. A class lawsuit said the pension funds deposited $23.9 million with favored nation-plus” clauses in contracts with hospitals. The action settlement reached in December covers owners and Onyx to invest in middle-market, primarily Midwestern most-favored-nation agreements allegedly required only that occupants of land within 1,000 feet of the river, between companies. Instead it invested nearly $16 million in a dealership Blue Cross get a billing rate at least equal to any other insurer, Talmadge Creek and Morrow Lake. The size of payments company and two related finance companies for Farr, a former but the plus agreements allegedly caused hospitals to charge depends on whether each parcel of property is commercial or Detroit Lions player and friend of Onyx founder Roy Dixon. It also its competitors more. Anyone who paid for health care at an noncommercial, and its distance from the water, but most allegedly did not disclose that a $7 million investment deal had acute care hospital between 2006 and last summer is eligible claims fall into “bands” based on distance increments of 200 failed and the money raised for it was diverted to a Farr because they ostensibly bought a service at a noncompetitive feet. Payments within those bands of property are expected to investment, and Dixon collected excessive management fees price because of the contracts, which then-Michigan Insurance total around $2.2 million. Another $1.5 million is allocated to and converted some Onyx investment capital to personal use. Commissioner Kevin Clinton formally banned in 2013. Less cover claims for general expenses like meals, lost wages and The U.S. Securities and Exchange Commission in January than 0.1 percent of plaintiffs have opted out of the settlement relocation expenses during the spill cleanup.
Marriage: Same-sex ruling in Mich. may resonate in high court ■ From Page 13 The appeals court upheld the for both individuals and employers. Eight of those couples filed a law- pedient resolution that will allow authorizing gay marriage has state ban in November along with The Obama administration has suit in April before U.S. District people in Michigan, as well as other grown from 12 to 36, and four ap- similar laws in Ohio, Tennessee said it recognizes such marriages Judge Mark Goldsmith in Detroit, states, to move forward together on pellate circuit courts have sided and Kentucky — even though four for federal benefit purposes, but who ruled Jan. 15 the state must the other challenges we face.” against bans in various states. other appellate circuits had struck originally the state did not. That recognize those marriages as well. The high court in June 2013 After the 6th Circuit ruling, down such state bans and same-sex was interpreted to mean couples On Feb. 4, Gov. Rick Snyder de- struck down a section of the feder- however, the Supreme Court marriage supporters saw more than could file jointly in federal tax re- cided that the state would not ap- al Defense of Marriage Act re- asked attorneys from Michigan 30 other federal court victories na- turns but not state ones; or an em- peal. stricting marriage to a union be- and three other states to argue on whether the federal constitution tionwide since the Supreme Court ployee could take a leave of absence “Our nation’s highest court will tween a man and a woman, but requires states to license same- last ruled on the issue in June 2013. under the federal Family Medical decide this issue,” Snyder said in a also deferred to states to decide sex marriages, and to recognize That created an unusual status Leave Act to care for a spouse, but statement. “I know there are strong about such marriages on their them when legally performed else- for couples who wed before the stay gay couples still could not adopt feelings on both sides of this issue, own. where. took effect — and some confusion children together in Michigan. and it’s vitally important for an ex- Since then, the number of states Carole Stanyar, attorney for De- Boer and Rowse in the 2012 case, said oral arguments are expected in late April, and Michigan and Kentucky attorneys will argue the marriage licensing issue. Attor- neys from Ohio and elsewhere will Invest Wisely argue the recognition question. “The court may limit the argu- Choose an Advisor Who Sees the Bigger Picture ments to one person on each side of the issue, or President Obama may also be afforded time (to pre- WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING sent the federal government’s posi- tion) through his solicitor gener- As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many advisors al,” Stanyar said via email. The April lawsuit, by the Michi- face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. Come discover the gan couples who wed after Fried- independent difference, where our clients get our best advice, solutions, and products no matter what.Trusted for 75 years. man’s ruling, also alleges some cou- ples were unable to receive health insurance benefits from their em- ployers for their spouses on the grounds that Michigan law does not recognize their marriages. At- torneys said it was not immediately clear if Goldsmith’s January ruling addresses employers or only com- pels the state government to recog- nize the marriages. A Supreme Court decision is ex- pected in June. April DeBoer and Jayne Rowse v. Gov. Rick Snyder and Attorney General Bill Schuette et al, Docket No. 14-571, U.S. Supreme Court. Ca- Bernie Kent, JD, CPA, PFS | Jason Zimmerman, MBA, CLU, CAP | Marc Schechter, CLU | John Stein, MBA, CFA | Brad Feldman, JD, CLU role Stanyar, attorney, for the Ilana Liss | Jeff Vieder | Aaron Hodari | Jordan Smith, JD, LLM | Paul Snider | Chris Hale | Kevin Beauchamp | Larry Leib, JD plaintiffs. Joseph Potchen, Michi- gan attorney general corporate oversight division, for the defense. Marsha Caspar and Glenna De- Jong et al v. Snyder, former Depart- ment of Human Services Director Maura Corrigan et al, Docket No. Contact a Schechter Expert to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM 14-cv-11499, U.S. District Court, De- Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY troit. Jay Kaplan and Michael Steinberg, ACLU of Michigan, for Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with the plaintiffs. Michael Murphy, NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public Michigan Department of Attorney Disclosure website. General, for the defense. Chad Halcom: (313) 446-6796, [email protected]. Twitter: @chadhalcom 20150223-NEWS--0015-NAT-CCI-CD_-- 2/20/2015 11:35 AM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 15 Law Even with smaller judgment, Altair trade secrets case could have impact
BY CHAD HALCOM duce competent evidence at trial of law firm, who declined to comment. CRAIN’S DETROIT BUSINESS the damages suffered by the misap- MSC Software Corp. v. Altair En- The case deals largely in the proper way to propriation,” Judge Cohn’s post-tri- gineering Inc., Marc Klinger, Rajiv A $26 million-plus judgment in al order states. Rampalli and Michael Hoffman. April against Troy-based Altair En- compute a royalty payment for the damages Patrick Hickey, an attorney for Docket No. 07-cv-12807, U.S. District gineering Inc. for misappropriation MSC and partner at Detroit-based Court, Detroit, Judge Avern Cohn. of trade secrets and breach of con- that can be attributed to theft of a trade secret, Dykema Gossett PLLC, said the com- Dykema Gossett PLLC and Antho- fidentiality agreements was origi- pany will likely appeal the ruling, ny Rusciano of Plunkett Cooney PC, nally one of the largest Detroit fed- which isn’t as fully explored as the theft or but not before the second trial Bloomfield Hills, for MSC Soft- eral court verdicts of the year, takes place. ware; Fish & Richardson PC and before a judge set aside most of it misappropriation of a patent . Christopher Dillon, an attorney Young Basile Hanlon & MacFar- in November. for Altair and partner at Fish & lane PC, for Altair. But even as a modified $442,000 attributable to that program was than not Altair misappropriated Richardson PC, referred a query Chad Halcom: (313) 446-6796, judgment awaiting a partial retrial actually less than $2 million. three trade secrets of MSC. … What about the case to a public relations [email protected]. Twitter: this year, the verdict could have sig- MSC “proved it was more likely MSC did not do, however, was intro- representative for the Boston-based @chadhalcom nificance for other businesses in computing the value of royalties owed on trade secret theft cases. The case deals largely in the prop- er way to compute a royalty pay- ment for the damages that can be at- tributed to theft of a trade secret, which isn’t as fully explored in prior court rulings as the theft or misap- propriation of a company patent has been. A new trial later this year, or an appeal if one follows, could lead to new standards for computing those damages in future cases. To improve on the future, Jurors took nearly three days of deliberation in April before U.S. District Judge Avern Cohn before we asked our clients about the past. awarding $26.5 million for Califor- nia-based MSC Software Corp. in a 2007 lawsuit. Just over $26.3 million of that was against Altair, and an- other $170,000 was against three for- 99.6% find our team members to be easily accessible mer MSC employees who left in 2005 and 2006 and later joined Altair. At issue was source code as well 99% feel their questions and concerns are answered in a prompt and as concepts or processes that get satisfactory manner used to write code for 3-D model prototyping software products us- ing computer-aided design and 96% are satisfied with the frequency of contact simulating real-world conditions, at both companies. But Cohn scrapped all but about 96% feel as though they are treated as a very important client $400,000 of the award as excessive, finding in part that MSC attorneys had improperly speculated in esti- 97% believe we listen to and understand their goals and objectives mating Altair’s revenue from its appropriated version of the soft- ware. The case returns to court for 97.5% believe their accounts are tailored to meet their financial goals a pretrial conference July 14, with a new trial to follow to re-deter- and objectives mine damages. Altair had grown from revenue of about $105.6 million in 2008 to 97% believe we’re successful in meeting their investment needs more than $171 million in 2012, with about 90 percent of that rev- enue coming from HyperWorks, a 96% say they would refer an individual to us suite of software products, accord- ing to evidence presented at trial. Satisfaction scores with our account statements, performance reports and One of the HyperWorks programs is MotionSolve, which competed newsletters uniformly exceeded 94%. directly with an MSC product called Adams/Solver. Altair began putting resources into MotionSolve after it began hiring some former MSC employ- Through our 2014 survey, we scores we can always do better. Call us ees, according to the MSC lawsuit, and the jury found in part that Mo- asked clients to rate our attentiveness, to learn how you, too, can benefit from tionSolve had appropriated three features also found in MSC’s own performance and success in meeting Greenleaf Trust’s exceptional perfor- Adams/Solver. objectives. With billions of their MSC attorneys argued in court mance and continuous improvement. that some evidence indicated Mo- hard-earned dollars entrusted to us, Because when it comes to your well tionSolve accounted for about 10 percent of HyperWorks revenue we’re profoundly interested in what being and long-term financial security, over the period, or about $60 mil- lion, and an MSC executive testi- they have to say. We listen closely, the best is yet to come. fied in court the company would Financial Security from Generation to Generation not have sold the trade secrets for knowing that even in light of high any less than $30 million. But a defense expert for Altair had testified that MotionSolve ac- 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6202 counted for less than 1 percent of total HyperWorks usage time re- ported by customers, so revenue 20150223-NEWS--0016-NAT-CCI-CD_-- 2/20/2015 11:36 AM Page 1
Page 16 CRAIN’S DETROIT BUSINESS February 23, 2015 Beaumont breaks ground on $40M proton beam center in Royal Oak
BY JAY GREENE ton International, an Atlanta-based Bloomington, Ind., to build the CRAIN’S DETROIT BUSINESS proton therapy consultant with ex- $100 million center. pertise in all phases of proton ther- While the Beaumont project was Beaumont Health System got the apy development and operations. on hold, advancements in proton ball rolling in early 2008 for a pro- Jones Lang LaSalle Inc. will oversee technology cut the cost of the pro- posed $100 million proton beam design and construction. Kasco Con- ject in half and improved the dose therapy cancer center when it filed struction Services is the contractor, delivery accuracy, Stevens said. the region’s first certificate of need and SmithGroup JJR is the architect. But why did Beaumont decide to application. “This technology (intensity build now? But a failing economy later that modulated proton therapy) is very “Couple things,” Stevens said. year, plus fast-changing technolo- precise. Real-time CT image guid- “First, intensity modulated proton gy and competing hospital inter- ance can target a tumor with mil- therapy really allows you to paint ests, led to a six-year delay on any limeter precision,” said Stevens, a dose in a very precise way. Two, hospital building an alternative to noting that the patented cone we needed daily image guidance standard radiation treatment for a beam technology was developed by built into the treatment. Only in limited number of cancers. Beaumont researchers. the last year did this commercially Last week, Beaumont an- Stevens estimates the proton become available.” nounced it had broken ground on a beam center will create at least 30 Stevens said other improve- smaller, $40 million single-room clinical positions at Beaumont. ments, due to better compensators proton therapy center at its Royal Several physicians and physicists to direct beams, allow clinicians to Oak campus. skilled already have been hired, he quickly treat patients; the health While Beaumont was the first said. system expects to double the vol- hospital to propose proton beam Beaumont received state certifi- ume of patients treated because of therapy in Southeast Michigan, cate of need approval to build a the new technology. McLaren Health Care Corp. in Flint proton center in July 2008. It had Jay Greene: (313) 446-0325, will be the first to open a proton formed a for-profit joint venture [email protected]. Twitter: @jay- beam center. It will be located at with ProCure Treatment Centers of bgreene McLaren’s Great Lakes Cancer Insti- tute, adjacent to its 458-bed McLaren Regional Medical Center in Flint. McLaren officials told Crain’s they hope to begin treating cancer patients in the three-room, $70 mil- lion proton beam center in March. Proton-beam therapy, which de- livers a narrow beam of radiation to destroy cancerous cells, is a contro- versial form of megavoltage radia- tion that has been suggested by some to be effective in some prostate and pediatric cancers because it causes less damage to surrounding tissues while directing high dosages of radiation at tumors. In 2008, the Economic Alliance for Michigan opposed plans for several proposed proton beam centers. However, those plans called for large proton or carbon ion therapy centers that were said to cost be- tween $150 million to $300 million to build. At the time, Beaumont experts stated they believed the state could support up to three proton beam centers. When Beaumont completes its proton center in the spring of 2017, the two-story, 25,200-square-foot fa- cility will be located next to its cancer center in the southeast sec- tion of the Royal Oak campus. It will feature a cyclotron that produces the proton beams on the first-floor treatment room, and an 8,000-square-foot second floor that will house Beaumont Children’s Hos- pital’s pediatric oncology and hematology program. “This technology will allow us to define future treatment strate- gies for cancer,” said Craig Stevens, M.D., Beaumont’s chair- man of radiation oncology, in a statement. “We will have the capa- bility to treat cancer that would have otherwise been considered unsalvageable and incurable.” Stevens said proton beam thera- py is very effective in treating sol- id and localized tumors, including some pediatric cancers, soft tissue sarcomas, brain tumors, and head and neck cancers. Beaumont selected Ion Beam Ap- plications of Belgium to construct the proton system. It also hired Pro- 20150223-NEWS--0017-NAT-CCI-CD_-- 2/20/2015 12:00 PM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 17 As the rich get richer, unions are poised for comeback
BLOOMBERG NEWS retailer that has thwarted unions The Detroit Three are loath to in- the labor relations professor. trying to organize its stores, crease their labor costs since that’s Is tumult re-emerging from play- One of the challenges for labor strikes back at critics who say it What are the what helped nearly drive them out ers in the U.S. labor movement? leaders is overcoming a perception underpays employees. of business. They prefer to reward After years of avoiding con- among Americans rich and poor triggers? Union workers with profit-sharing checks frontation, labor is reasserting it- that union workers are overpaid that can shrink or disappear in self as contracts come up for re- and protected even if they perform Wage hit leaders are taking tough times. Detroit autoworkers view, including those for auto poorly on the job. A 2011 study drew a link between have received record profit sharing industry workers, and threats of The Pacific Maritime Association, the decline in union membership advantage of a for the last five years. strikes appear on the horizon. which represents port employers, since 1973 and expanding wage dis- But Detroit’s automakers may From OEM and some supplier says dock workers make $147,000 a parity. Those trends have since tightening labor have to boost wages, said Art plants to the ports of Los Angeles, year. Craig Merrilees, a spokesman continued, said Bruce Western, a Schwartz, a former GM labor nego- unions are demanding payback for market and favorable for the longshore union, calls the professor of sociology at Harvard Uni- tiator who runs Labor & Economics As- sacrifices they say helped revive calculation “demonstrably false” versity who co-authored the study. sociates, a consulting firm in Ann Ar- the economy. political and says workers earn about $80,000 Union workers say they took a bor. What are the triggers? Union a year and can reach the higher hit on wages and benefits after the If the UAW wins traditional wage leaders are taking advantage of a environment. wage only by working maximum financial crisis to help keep compa- increases, “that will embolden oth- tightening labor market and favor- overtime on weekends and holi- nies and the economy afloat and ex- er unions to try and get more,” able political environment. With days. pect to be rewarded for their sacri- strike saber. Williams stressed the Schwartz said. middle-class wages stagnating and “Workers are seeing the high pay fice. importance of the right to strike. the affluent Americans getting rich- chipped away, and they’re con- “You don’t want to be the senior During the last contract talks, in er, income inequality has become a Price cudgel cerned about outsourcing,” said partner in failure and the junior 2011, the UAW gave up that right at rallying cry for Democrats and Re- Shaiken, the Berkeley professor. partner in success,” said Gary Chai- GM and Chrysler to help the au- The United Steelworkers, which publicans alike. Reviving opportu- “It’s not that they’re lower paid, but son, a professor of labor relations at tomakers recover from their bank- represents oil refinery workers, is nity for all resonates with many they gave up a lot to get there. That’s Clark University in Worcester, Mass. ruptcies. Now, seeking better wages, benefits and Americans who feel left out as why you’ve got this collision.” Since 2009, management compen- that power has restrictions on the use of nonunion growth picks up and the market For the first time in a genera- notches record highs. sation has grown about 50 percent been restored. contract workers. The companies faster than union workers’ income. tion, the labor movement is In metro Detroit, union leaders The current are expected to use the worldwide In the auto industry, real wages aligned with millions of Ameri- girding for contract talks this year four-year auto collapse in crude prices as a cudgel have declined 24 percent since 2003, cans who don’t belong to a union will push for the first raise veteran contract expires in negotiations, but the unions may according to the Center for Automo- but feel marginalized. autoworkers have received in a Sept. 15. dig in. When oil workers across the tive Research. decade. “The right to country last walked off the job, 35 “This is a political opportunity years ago, the strike lasted three for organized labor,” said Western, Concurrently, oil workers have Dennis Williams, the United Auto collective bar- months. walked off the job for higher wages Workers’ new president, has made gaining is a the Harvard professor. “Although getting his members a raise a top building block to “The oil companies think they the inequality discussion is open- and better working conditions. Williams Dock workers have snarled West priority in contract talks with Gener- good economics, have a strong case because the in- ing up a space, the conversation Coast ports. Personnel staffing oil al Motors Co., Ford Motor Co. and FCA shared prosperity, a strong middle ternational price is down so much, has so far not really addressed the terminals at the Port of Long US, formerly known as Chrysler Group class and a country that believes in but they have made such phenom- problems of parents trying to raise Beach, Calif., are threatening to LLC. balanced democracy,” Williams enal profits in the past, they don’t their children, trying to guarantee strike. And he’s not above rattling the said in a statement. have a strong case,” said Chaison, them a better future.” “Employers seem to think that they can push unions — the roots of the American working class — off a cliff,” said Dave Campbell, whose union local represents oil terminal workers at the Port of Long Beach. “Well, these corpora- CONGRATULATIONS TO tions have made a significant mis- calculation in our ability to fight back. There’s a lot of labor strife Varnum’s H ealth Care Litigation Team now, and they could have a major confrontation on their hands.” Campbell’s combative rhetoric ONE OF evokes an era when unions had the 2014’S LARGEST JUDGMENTS clout to win significant lifestyle up- grades for their members. Wielding the threat of strikes and work slow- IN MICHIGAN downs, organized labor helped gen- CASE Hi-Lex Controls, Inc. et al, v. Blue Cross and Blue Shield of Michigan erations of Americans join the mid- dle class and stay there. ACTION ERISA violation Union power COURT U.S. District Court, Eastern District of Michigan In recent years, however, global- AWARDED $6,025,672 plus costs and fees ization and weak economic growth have hollowed out union power. In ATTORNEYS 1979, 21 million American workers belonged to a union. By last year, FOR 14.6 million did. In the 1980s, strikes PLAINTIFF averaged 75 a year, according to the Bureau of Labor Statistics. Last year, there were 11. Harley Shaiken, a labor profes- sor at the University of California at Berkeley, has long watched the ebbing of union power and won- dered if walkouts were an endan- gered species. The surge in labor Perrin Rynders Aaron Phelps unrest has caught his attention. Shaiken says the main catalyst is inequality, considered the defin- ing economic challenge of this era First Tier Rankings in by everyone from President Seven Areas of Litigation Barack Obama to Republican pres- In Your Corner.® idential aspirant Jeb Bush. On Legal Experience Thursday, Wal-Mart Stores Inc., Ranked by Chambers USA as a leading Michigan law fi rm 866/482-7686 America’s largest private employ- in Commercial Litigation er, said it would raise wages to $9 an hour, well above the $7.25 feder- ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing al minimum wage. The move, by a 20150223-NEWS--0018-NAT-CCI-CD_-- 2/20/2015 11:47 AM Page 1
Page 18 CRAIN’S DETROIT BUSINESS February 23, 2015 UM student ties academics, hobby into startup that has legs
BY BILL SHEA The Converse-style sneakers, age and sell all marketing and spon- sorship deals for UM athletics. University of Michigan CRAIN’S DETROIT BUSINESS which have a custom sole, are sold student Jordana Schrager online at Skicks.com, and in fan Skicks isn’t the only college- has sold more than 10,000 University of Michigan junior Jor- shops and college bookstores. branded footwear maker. CLC’s pairs of footwear in dozens dana Schrager is an arts major with The high-tops retail on the com- database shows nine companies of college logos and colors a business minor on pace to gradu- pany’s website for $69.99 and low- alone licensed for Michigan sneak- through her Sideline ate next year — but she’s already tops sell for $59.99. Selling more ers, including Gladwyne, Pa.- Sneakers LLC. putting both disciplines to work. than 10,000 since August translates based Reversus LLC, which makes a Schrager, 21, took her hobby of into more than $600,000 in rev- Keds-like two-tone shoe, and making custom artwork shoes for enue. Matthews, N.C.-based Renaissance her friends and classmates and Sideline Sneakers has a license Imports Inc., which does sandals made it into a business that has with each university, and the and casual footwear. sold more than 10,000 pairs of li- schools typically get about 10 per- Other schools, such as Michigan censed footwear in dozens of col- cent of the retail sales price as a li- State, directly license products lege logos and colors. censing fee. such as Skicks rather than using a She is co-owner of Boca Raton, Licensing deals generate mil- third-party company, Meryl Fla.-based Sideline Sneakers LLC, lions in revenue for universities. Schrager said. which markets the high- and low- Collegiate Licensing Co., based in Besides the two Michigan col- top canvas sneakers under the Atlanta, handles UM’s apparel and leges, the schools available now in- brand name Skicks. merchandise licensing, which has clude Indiana, Wisconsin, Florida Since launching in August, the generated $3.2 million to $6.8 mil- State, Syracuse, Penn State, Miami single largest-seller is the line of lion annually for the university (Fla.), Tennessee, Georgia, Auburn, University of Michigan shoes, fol- over the past decade. Cincinnati, Louisville, Baylor and lowed by Michigan State University, CLC is an arm of Winston-Salem, Clemson. said Jordana’s mother and busi- N.C.-based IMG College, which has Skicks is currently applying for COURTESY OF SIDELINE SNEAKERS LLC ness partner, Meryl Schrager. been contracted since 2007 to man- a license from Ohio State University — a potentially hot seller because which are made in China, also re- profiles in Teen Vogue and Seven- the Buckeyes won college foot- sist weather. teen magazines, and she has more ball’s national championship in “The kids wear (homemade than 10,000 Instagram followers at January. shoes) to a tailgate and they get ru- sneakersbyjordana. Soon to be added to the Skicks ined in 5 minutes. They never had Once she graduates in 2016, !3 0!24.%23 9/5 '%4 4/ &/#53 /. lineup are Mississippi, Massachu- sneakers to go with outfits,” Meryl Schrager’s plan is to keep doing setts, Rutgers, Maryland, Florida, Ari- Schrager said. what she’s doing already. "5),$).' 9/52 "53).%33 zona, Nebraska, Tulane and Cal. The UM shoes come in five styles “I want to continue to grow both — three high-top and two low-top, Skicks and 7(),% 7% &/#53 /. &).!.#).' )4 the most of any Skicks. Other SneakersByJordana.com,” School days schools have two styles, a high and she said. Jordana Schrager began deco- low top. That includes expanding into rating shoes as a high school The company also makes a pink other licensed merchandise, but sophomore, starting with doodles low-top sneaker for breast cancer the ideas remain under wraps be- on an old pair of white Vans. Her awareness. cause they’re still in the concept friends began wearing them. She phase. kept it up once she enrolled at Custom kicks Michigan. Business education “She did a Michigan-themed The non-Skicks custom sneakers pair for herself and her friends. on the SneakersByJordana.com site In the meantime, Schrager’s Everybody wanted that Michigan- are an array of colorful footwear real-world business education has themed sneaker,” said Meryl collages that include famous retail included a glimpse at the ultra-pro- Schrager, who is co-president. brand logos, bands and musicians, tectionist side of the footwear in- When students began putting celebrities, pro and college sports dustry — which is nearing $200 bil- the sneaker on their social media teams, states, and famous artwork. lion in annual U.S. sales overall. Increase your cash flow and pursue accounts, the university noticed Some are made on off-the-shelf In October, Nike-owned Converse bigger opportunities with our customized, and posted a photo on its official Vans and Converse sneakers. sued more than 30 shoemakers in The non- U.S. District Court in Brooklyn, al- flexible lending solutions. Instagram account. That was free mar- Skicks custom leging trademark infringement s !2 &INANCING (248) 658-1100 keting. So is having You just knew sneakers — over its iconic Chuck Taylor sneak- s ,INES OF #REDIT www.hitachibusinessfinance.com students “ she’ll put up to ers, The New York Times reported. wearing her she was 15 designs on a Skicks isn’t among those being shoes. shoe for $250 to sued, but to avoid being caught up “It was going to be $400 — can in any legal entanglements, the walking ad- take up to company this fall will use a newly vertising,” successful. three months designed shoe to ensure it is easily Jordana said. to ship because distinguished. Before She’s got of a 50-order Schrager’s colorful shoes caught long, she and backlog and the attention of a UM faculty mem- her mother, good focus her busy col- ber, Len Middleton, an adjunct pro- along with lege schedule. fessor of corporate strategy, inter- her mother’s and She also sells national business, and close friend since non-collegiate entrepreneurship at the Ross School their days at Syra- discipline. artsy shoes on- of Business cuse University, Lisa ” line for $150 a He taught her entrepreneurship Len Middleton, UM adjunct professor Benedict, launched pair. studies class last year, and advised Sideline Sneakers “It’s hard her as Sideline Sneakers was and began the hard work of getting work and I’m always busy, but I re- launching. collegiate licensing. Benedict also ally enjoy creating all the sneak- “You just knew she was going to is co-president. ers. It’s relaxing. It’s really fun. I’m be successful. She’s got good focus Jordana creates the designs, and really learning a lot with the busi- and discipline,” he said. “I like the her mother and Benedict handle nesses,” she said, adding that she facts she’s mixing her passion for the business side. typically completes four pair of art with her passion for business. Most of the college shoes are rel- custom shoes a week. That’s really unique. You need both atively simple designs, but Jor- What helped launch her career, aspects to be successful. dana continues to create her hand- she said, was being contacted by Middleton said he’s impressed made custom shoes as a separate Barclays Center in Brooklyn to cre- with what she’s done with the com- business. ate shoes for the arena’s gifts to pany, in part because it’s had early For the handmade shoes, she performers as part of a gift selec- success without a major corpora- uses Sharpie paint pens that en- tion. tion’s marketing dollars behind it. sure the designs are water-resis- Now, entertainers such as Nick “This is only going to get bigger tant and allow her to create small, Cannon, Selena Gomez and Pink and bigger,” he said. vivid details. all wear custom sneakers designed Bill Shea: (313) 446-1626, The professionally manufac- by Schrager. [email protected]. Twitter: tured university logo/color Skicks, Her shoe success has resulted in @bill_shea19 20150223-NEWS--0019-NAT-CCI-CD_-- 2/20/2015 11:33 AM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 19 CALENDAR WEDNESDAY Stuart Hoffman, senior vice president 2014 NEWSMAKER OF THE YEAR and chief economist, PNC Financial FEB. 25 Services Group, is the featured speak- Who made news in 2014? Find out er. Westin Book Cadillac Detroit. $45 Commercial Real Estate Financing at Crain’s Detroit Business’ DEC members, $55 guests of DEC A-Z. 4-6 p.m. CREW Detroit. Speakers Newsmaker of the Year luncheon. members, $75 nonmembers. Ticket include Claudia Cassa, vice president It takes place 11:30 a.m.-1:30 sales end at noon March 23. Contact: and alternate group manager, Comeri- p.m. Wednesday. (313) 963-8547; email: info@econ ca Bank; Jenny Meier, executive vice club.org; website: econclub.org. president and chief revenue officer, Hear the dramatic details from key Bank of Birmingham; and Clarissa players involved in Detroit’s Chartier, chief credit officer and exec- historic bankruptcy as Crain’s Inside the CEO Mind. 3 p.m.March 25. utive managing director, Talmer honors the city’s former emergency Detroit Regional Chamber. Frank Bank. Crowne Plaza Hotel, Detroit. $40 manager, Kevyn Orr, and Judge Venegas Jr. of the Ideal Group will members, $75 nonmembers. Register Steven Rhodes of U.S. Bankruptcy speak; a tour follows the presentation by Feb. 23. Contact: Norma Lee Court. Gerald Rosen, chief judge of and question-and-answer session. The Beuter, (248) 646-9629; email: the U.S. District Court for the Ideal Group Inc., Detroit. $25 chamber [email protected]; website: crew Eastern District of Michigan, who members, $50 nonmembers (cost goes detroit.org. Walk-ins accepted. also acted as chief bankruptcy toward membership). Contact: Maggie mediator, will moderate. Also, Oldenburg, (313) 596-0482; email: mold 2014’s Best-Managed Nonprofit [email protected]; web- THURSDAY winner will be honored. site: detroitchamber.com/events. FEB. 26 The event will be at MotorCity Casino Hotel, 2901 Grand River 2015 Great Lakes Business Intelli- Detroit Policy Conference. 7:30 a.m.- Ave., Detroit. Walk-in registration is gence and Big Data Summit. 8 a.m.-5 4 p.m. Detroit Regional Chamber. Fo- $90 per person. p.m. March 26. WIT Inc. Summit is a cus on “Power Perspectives” as Ro- cross-industry educational and net- drick Miller, Detroit Economic Growth For more information or to working event for IT and business ex- Corp. president and CEO, and Paul Pa- register, contact Kacey Anderson ecutives interested in big data topics storek, education adviser to Gov. Rick at (313) 446-0300 or and trends. Keynote speakers include Snyder, will discuss the future of eco- [email protected], or visit Boris Evelson, vice president at For- nomic development in the Detroit re- crainsdetroit.com/section/ rester Research, and Don Farmer, vice gion and the importance of education CrainsEventsUpcoming. president of innovation and design at in a changing world. MotorCity Casi- Join the conversation with Qlik. Somerset Inn Hotel, Troy. $149. no Hotel, Detroit. $99 for chamber #crainsnewsmaker. Contact: Amanda Mansour, members, $165 for nonmembers (cost [email protected] or (248) 641- includes membership). Contact: 5900, ext. 244; website: greatlakes Suburban Collection Showplace, Janelle Arbuckle, (313) 596-0340; bisummit.com. email: jarbuckle@detroitchamber. Novi. $235 members, $295 nonmem- com; website: detroitchamber.com/ bers. Contact: (248) 353-4500; website: aseonline.org. Business Leaders for Michigan Lead- events. ership Summit: Building a New Michi- gan. 8 a.m.-noon March 26. Business Fundraising in Your Own Backyard. Leaders for Michigan. Speakers and FRIDAY 8:30-10:30 a.m. March 5. New Solutions panelists include Doug Rothwell, pres- FEB. 27 for Nonprofits. Learn five tactics for ident and CEO, Business Leaders for board, staff and volunteers to raise Michigan; Hans-Werner Kaas, senior 19th Chinese New Year Gala. 5-11 p.m. money, and discover how to launch a partner and director, McKinsey & Co.; Detroit Chinese Business Association. successful giving campaign. Hannan Ray Leach, CEO, JumpStart Inc.; Brian Keynote speaker Gov. Rick Snyder House, Detroit. $25. Contact: (734) 998- Hicks, president and CEO, Hicks Part- among government and industry lead- 0160 or [email protected]; website: ners, and chief architect of Ohio Third ers. Reception, dinner, entertainment. new.org. Frontier; Steve Arwood, director, Tal- MotorCity Casino Hotel, Detroit. $250. ent & Economic Development Dept., Registration ends 4:30 p.m. Feb. 24. Project Give Gala. 6:30-11:30 p.m. and CEO, Michigan Economic Devel- No walk-ins accepted. Register: (248) March 7. Canton Community Founda- opment Corp.; Michael Jandernoa, 918-0391 or www.dcba.com; email: tion. The foundation celebrates 25 board of directors, Perrigo Co.; [email protected] or [email protected]. years with music from the Michigan Charles “Chip” McClure, managing di- Philharmonic Youth Orchestra and rector, Michigan Capital Partners LLC; Steve King and the Dittilies. The Hen- and Sandra Pierce, chairman and UPCOMING EVENTS ry Ford, Dearborn. $175. Contact: Beth CEO, Business Leaders for Michigan. Hearts for the Arts. 6-10:30 p.m. Feb. 28. Meade, (734) 495-1200; email: Lansing Center, Lansing. Free. Con- Ann Arbor Symphony Orchestra. [email protected]; web- tact: Jennifer Hayes, (313) 259-5400, Fundraiser honors Cheryl Elliott, re- site: cantonfoundation.org. email: jenniferh@businessleaders- tired Ann Arbor Area Community Foun- formichigan.com; website: busi dation president and CEO, and Bruce Five Steps to Creating a Successful nessleadersformichigan.com/events. Elliott, partner at the Law Offices of Wellness Program. 8-10 a.m. March 11. Conlin, McKenney & Philbrick PC. An Michigan Wellness Council. Speakers Health Care Leaders Forum. 7:30 a.m. auction, champagne reception, dinner include Kandi Lannen, director of well- March 31. Detroit Regional Chamber. and performances by orchestra musi- ness services, Priority Health; and Lind- The forum will focus on the Patient cians are planned. Barton Hills Coun- sey DesArmo, health wellness special- Protection and Affordable Care Act’s try Club, Ann Arbor. $175. Contact: ist, Grand Valley State University. $25 in wins, losses and consequences for pa- (734) 994-4801; email: [email protected]; advance, $30 day of event. Priority tients and the business community, as website: a2so.com/fundraisers/ Health, Southfield. Contact: Rita Patel, well as offer a five-year forecast of the heartsforthearts. (917) 913-8394; email: rita.patel@michi health care industry. Federal Reserve ganwellnesscouncil.org; website: Bank of Chicago-Detroit Branch, De- Cirque – Empire. 8:30 p.m. Feb. 28. michiganwellnesscouncil.org. troit. $129 chamber members, $179 Founders Junior Council. The Detroit nonmembers (fee includes member- Institute of Arts’ Rivera Court is trans- Managing Global Volatility: A 90-Year ship). Contact: Janelle Arbuckle, (313) 596-0340; email: jarbuckle@det formed into a 1930s speakeasy in hon- Track Record. 11:30 a.m.-1:30 p.m. roitchamber.com; website: det or of the museum’s upcoming Diego March 11. Detroit Economic Club. roitchamber.com/events. Rivera and Frida Kahlo in Detroit ex- Douglas Oberhelman, chairman and hibition; features music, cocktails, ap- CEO, Caterpillar Inc., is the keynote petizers and a masquerade competi- speaker. Daniel Howes, business tion. Detroit Institute of Arts, Detroit. columnist and associate business edi- CALENDAR GUIDELINES $110; $125 at the door (valet parking in- tor, The Detroit News, will moderate. If you want to ensure listing online cluded). Contact: (313) 833-4005; web- The Westin Book Cadillac Detroit. $45 and be considered for print site: dia.org/fjc. DEC members, $55 guests of DEC publication in Crain’s Detroit members, and $75 nonmembers. Tick- Business, please use the online Java @ the Junction. 8:30-10 a.m. et sales end at noon March 10. Con- calendar listings section of March 3. TechTown. Scott Trossen, tact: (313) 963-8547; email: info@econ www.crainsdetroit.com. Here’s founder of the Michigan HR Group, dis- club.org; website: econclub.org. how to submit your events: cusses how to find the right employ- From the Crain’s home page, click ees. TechTown, Detroit. Free. Contact: Taste of Leadership Oakland. 4:30-7 “Events” in the red bar near the (313) 879-5250; email: info@tech p.m. March 19. Leadership Oakland. top of the page. Then, click towndetroit.org; website: techtown Event features an address by “Submit Your Events” from the detroit.org. L. Brooks Patterson, presentation of drop-down menu that will appear, “Leader of Leaders” awards, a silent and you’ll be taken to our online People, Profit, Progress Conference auction, strolling hors d’oeuvres and submission form. Fill out the form a cash bar. Troy Marriott, Troy. $25 and Workshops. 7:15 a.m.-4:15 p.m. as instructed, and then click the members, $40 non-members. Contact: March 5. American Society of Em- “Submit event” button at the (248) 952.6880; e-mail: info@leader ployers. Event equips HR profession- bottom of the page. That’s all shipoakland.com; website: leader als and leaders to develop their orga- shipoakland.com. there is to it. nizations’ people. Keynote speakers More Calendar items can be found are John O’Leary, president, Rising on the Web at Above; and Greg McKeown, CEO, This DEC Presents. 11:30 a.m.-1:30 p.m. www.crainsdetroit.com. Inc.; 12 breakout sessions are planned. March 24. Detroit Economic Club. 20150223-NEWS--0020-NAT-CCI-CD_-- 2/20/2015 10:33 AM Page 1
Page 20 CRAIN’S DETROIT BUSINESS February 23, 2015
PEOPLE FINANCE LAW MANUFACTURING Michael Brennan Donelle Buratto to Alex Guerrero to IN THE SPOTLIGHT to managing di- shareholder, Ogle- general merchan- Greg Little has been named CFO of Troy-based rector, Mackinac tree, Deakins, dising manager, Re/Max of Southeastern Michigan. Partners LLC, Nash, Smoak & Carhartt Inc., Bloomfield Hills, Stewart PC, Birm- Dearborn, from In this newly created position, Little oversees all from director. ingham, from as- vice president finance and accounting operations of the region, which sociate. merchandising/ encompasses nearly 800 sales associates and 46 offices. INSURANCE Paul Galea to part- general manager, Sandra Gulick to ner, Gallagher U.S. men’s busi- Before he joined Re/Max, Little was controller and director, Aon Risk Sharp, Detroit, ness, Jockey In- director of finance for Advanced Customer Services in Gulick Services Central Galea from shareholder, ternational Inc., Madison Heights. Inc., Southfield, from senior broker. Foster, Meadows & Ballard, PC, Detroit. Guerrero Kenosha, Wis. Little, 59, has a bachelor’s degree in accounting from Oakland University and a master’s in finance from NONPROFITS Little Walsh College. Request for Proposals for General Counsel for the Police and Fire Retirement System associate, Environmental Law Insti- Hills, from vice of the City of Detroit tute, Washington, D.C. president of sales The Trustees of the Police and Fire Retirement System of the Martha Foreman and marketing, City of Detroit are seeking proposals for General Counsel Services. to director of pro- OPS Solutions Individuals or rms are invited to submit a proposal. The request for proposal gram manage- LLC, Novi. will be available on Feb. 9, 2015. The RFP will be posted on the Police and Fire ment, OpTech Zack Urlocker to Retirement System of the City of Detroit’s web site at www.pfrsdetroit.org. LLC, Troy, from COO, Duo Securi- The RFP will be on the PFRS home page. global business ty Inc., Ann Ar- development ex- bor, from senior Responses are due on March 2, 2015 by 3 p.m. EST. ecutive, VisionIT vice president of Edgar Ingram For all correspondence and inquiries concerning this RFP, contact: Inc., Detroit. product and mar- David Cetlinski, Assistant Executive Director, [email protected]. David Helt to turf Urlocker keting. Rana Edgar to director of exhibi- division director, tions/art market, Paint Creek Center Residex LLC, for the Arts, Rochester, from exhibi- Foreman Novi, from U.S. EOPLE GUIDELINES tions coordinator, Savannah College P Do you want to manager of sales and marketing, Di- of Art and Design, Savannah, Ga. Find new Reach the right people? rect Solutions LLC, Aurora, Colo. Announcements are limited to Also, Ellie Ingram to manager of the management positions. Email them Trevor Peitz to vice president of sales Generate content? art school, from adjunct instructor of to [email protected] and business development, Export drawing and printmaking, Herron or mail notices to Departments, customers School of Art and Design, Indianapo- Corp., Brighton, Organize, summarize Crain’s Detroit Business, 1155 and distribute fi ndings? lis. from project man- ager. Gratiot Ave., Detroit, MI 48207- through Be seen as a thought leader? REAL ESTATE 2997. TECHNOLOGY Releases must contain the person’s Sharyl Shereda to general manager, name, new title, company, city in NAI Farbman, Detroit, from property Christopher Bala engaging Crain’s Can Help! which the person will work, former manager. to vice president title, former company (if not Contact Marla Wise at of sales and promoted from within) and former [email protected] or SERVICES marketing, content. (313) 446-6032 city in which the person worked. J. Cory Connolly to clean energy pro- Hirschmann Car Communication Photos are welcome, but we cannot ject manager, Levin Energy Partners guarantee they will be used. LLC, Southfield, from senior research Bala Inc., Auburn
BUSINESS DIARY
CONTRACTS company that holds master franchise Hills, an engineering, computer-aided Altair Engineering Inc., Troy, a rights to Domino’s in Azerbaijan. design, computer-aided engineering, provider of computer-aided engineer- Domino’s has also opened a store in metrology 3-D scanning and quality ing and computing software and ser- Phnom Penh, Cambodia, owned by D. control inspection service provider, vices, was selected by Artemis Racing, Pizza PLC, a joint venture between has a new patented fastener/rivet in- Alameda, Calif., to serve as a techni- CBM Corp. Co. Ltd. and Evolution Cap- spection technology and process for cal supplier in the team’s bid to win ital, Thailand. Website: dominos.com. automotive OEMs and assembly the America’s Cup in 2017. Altair’s plants to help improve quality control OptiStruct composite optimization MOVES while saving cost and time on the pro- duction line. Website: adapt- technology helps companies design Computing Source, a digital evidence techteam.com. composite structures. Websites: and legal support firm, has moved its altair.com, artemisracing.com. headquarters from 26877 Northwestern ProQuest LLC, Ann Arbor, is digitiz- ing early 20th century British maga- Arotech Corp., Ann Arbor, a provider Highway, Southfield, to 29401 Stephen- zines. The new British Periodicals of defense and security products for son Highway, Madison Heights. Web- Collection III digitizes the archives of military, law enforcement and home- site: computingsource.com. the most important magazines of the land security markets, said that it has period and extends the scope of the retained Hayden IR, a national in- NEW PRODUCTS popular British Periodicals program, vestor relations consulting firm, with which is rescuing rare, important and offices in New York City, Phoenix and Acromag Inc., Wixom, has introduced fragile print works and making their Minneapolis, to lead a new strategic its new 6U VME fourth-generation In- contents available to researchers. investor relations effort. Websites: tel Coresingle board computer that al- When complete in April, the collec- arotech.com, haydenir.com. lows users to update their systems rather than undergo a total redesign. tion will encompass more than 850,000 Simons Michelson Zieve Inc., Troy, an Website: acromag.com. pages. Website: proquest.com. advertising agency, has been named Rent My Rink LLC, Detroit, has the creative agency of record for the Hallite Seals Americas Inc., Wixom, a global manufacturer of high-perfor- launched a website that helps hockey Mackinac Island Tourism Bureau to coaches, managers and ice arenas buy promote guest stays and visits to the mance hydraulic sealing solutions and member of the Fenner PLC group of and sell their excess ice time. Website: island. SMZ also has been named the rentmyrink.com. agency of record for Group 10 Man- companies, announced the a new test agement Co. Inc., Farmington Hills, procedure for assessing the amount of owner and operator of three of Detroit dirt and dust that enters a typical hy- Metropolitan Airport’s primary off-site draulic system through the rod wiper. DIARY GUIDELINES parking lots in Romulus: Qwik Park, The process was developed in coopera- Airlines Parking and U.S. Park. Web- tion with Milwaukee School of Engi- Email news releases for Business sites: smz.com, mackinacisland.org, neering’s Fluid Power Institute. Web- Diary to cdbdepartments@ group10management.com. sites: hallite.com, msoe.edu/fpi. crain.com or mail to Departments, Washtenaw Contractors Association, Crain’s Detroit Business, 1155 EXPANSIONS Ann Arbor, introduced its job board, Gratiot Ave., Detroit, MI 48207- where employers can list available in- 2997. Use any Business Diary item BarFly Ventures LLC, Grand Rapids, as a model for your release, and has opened HopCat Ann Arbor, 311 dustry internships and full-time or look for the appropriate category. Maynard St., Ann Arbor. Telephone: part-time positions or view candidate Without complete information, your (734) 436-2875. Website: hopcat.com. profiles. Website: wcaonline.org. item will not run. Photos are Domino’s Pizza Inc., Ann Arbor, has NEW SERVICES welcome, but we cannot guarantee opened a new store in Baku, Azerbai- they will be used. jan, owned by Fides, a private equity Adapt Technology LLC, Rochester 20150223-NEWS--0021-NAT-CCI-CD_-- 2/20/2015 5:17 PM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 21 Couple’s job dissatisfaction yields real estate success story
BY KIRK PINHO smoke, has no cholesterol prob- The company, which opened a CRAIN’S DETROIT BUSINESS lems, exercises regularly and eats second office in Royal Oak last healthily. Yet, he had a heart at- year, has also taken an active role A stress-related heart attack in tack in the summer of 2010. The in commercial redevelopment. 2010 was the first in a string of culprit? Work-related stress, the The Loft Warehouse brokered a events that persuaded Jerome 45-year-old Huez said. $1.3 million deal last fall for a pair Huez to abandon his 18-year career That was the first in a chain of of Texas investors to buy four as an electronics and software en- events that led the graduate of buildings in the New Center area gineer in favor of a second career École Supérieure d’Électricité — con- that are planned for 24-27 loft-style in real estate. sidered the Massachusetts Institute residential units. The company In his previous career, he of Technology for electronics and will be responsible for securing worked long hours and traveled software in France — to quit Va- the financing and filling the units extensively for French automotive leo the next year and join The Loft as part of the $2.7 million redevel- supplier Valeo SA. Warehouse full time. (He had been opment. Similarly, years of frequent relo- working there part time.) They also brokered a deal late cations for work prompted his He was also fed up with work. last year for the same investors, wife, Sabra Sanzotta, a Case West- Even though he and Sanzotta had a ern Reserve University-trained con- Bill Ball and Jerry Lindenmuth, to newborn girl at home, he was told struction engineer, to leave her job buy a 119,000-square-foot industri- he should be spending 50 percent nine years earlier. al warehouse for $2.5 million on of his time in Mexico for his job. The pair’s story is one of profes- Trumbull Street north of I-94 that He said he tried for a different po- sional burnout and reinvention, could turn into more loft-style sition that allowed him to work taking risks in Detroit real estate multifamily units. The building is primarily in Detroit, but didn’t get and, ultimately, success in the leased through 2019. Boston-based it. greater downtown multifamily document management company market for their company, Detroit- “(Sanzotta and I) sat down and Iron Mountain Inc. is a tenant in the based The Loft Warehouse. said, ‘You make this much and you building and has a lease that ex- For founder and broker Sanzot- make this much … can we sur- pires at the end of 2019. ta, the draw to real estate came vive?’ We said, ‘Yes, we can.’ It was LARRY PEPLIN from her love of downtown devel- scary. For a long time we didn’t Sabra Sanzotta and Jerome Huez both left their jobs to find satisfaction and Experienced staff success with their company, The Loft Warehouse. opments. make much money.” “I don’t want any part in subur- Other employees at The Loft ban sprawl, and downtown condo Moving on Warehouse also boast many years sales and marketing fulfills those in other corporate roles. interests for me,” she said. Similarly, it was 13 years ago Jerome Poisac, real estate in- The company — which primari- that Sanzotta had enough of her vestment adviser for the company, work-related stress. was project manager for Sogeti and MARKET PLACE ly sells and leases lofts, condomini- Between 1995 and 2002, she was ums and apartments and whose project manager Ford Motor Co. be- overseeing construction projects agents’ and brokers’ gross com- fore receiving his MBA from IE WEDDING SERVICES FRANCHISE OPPORTUNITIES across the U.S. as senior project missions since 2011 increased from Business School in Madrid. manager for the former London- $218,000 to $1.23 million last year Todd Sykes, a Michigan State Uni- )UDQFKLVHVDYDLODEOHDFURVV0LFKLJDQ based Bovis Lend Lease. But it was Waterfront Weddings — didn’t always seem poised for versity graduate, spent 10 years in $QQ$UERU&DQWRQ wearing on her. Straits of Mackinac the success it’s seen. construction management for %ULJKWRQDQG “I didn’t want to do any more of Things were tough in the early Tempe, Ariz.-based Sundt Construc- RWKHUFLWLHVDUHDYDLODEOH it,” she said. DestinationWeddingsUpNorth.com years as condo sales shriveled dur- tion and two years as an LEED con- &OLFNRU&DOOIRUPRUHLQIR After starting a construction ing the recession because of con- sultant for San Diego-based Eco- 7XEE\V*ULOOHGFRP company that closed within a year 906-643-8621 %LOO.LU\DNR]D stricted lending. Developers were Logic Studio before becoming and working in real estate for bringing little, if any, new units to property manager and then real what is now Berkshire Hathaway the market to sell for the then- estate agent for The Loft Ware- BUSINESSES FOR SALE HomeServices in Birmingham, she fledgling company, founded in house. REAL started working for Colin Hubbell, Darin McLeskey received his Mobile Auto Interior Cleaning Business. 2006. Cash Flow $80,000.Gross Sales $191,000. Est. the late developer of The Art Center “I wanted it to be the biggest master’s in environmental engi- b2b opp. Work with metro Det. new car dealers. Town Homes, 55 West Canfield and neering from the University of Michi- [email protected] (248) 714-5532 ESTATE (real estate company) in Detroit,” the Canfield Lofts in Midtown. said Sanzotta, 46, who married gan and worked as an engineer for “I ended up with those listings Plymouth-based Soil and Materials Huez in 2009. He became company BUSINESS FOR SALE OFFICE BUILDING because he didn’t have a broker’s Engineers Inc. before making the ca- president in 2011. license. And when we finished sell- reer shift, becoming a full-time But recently, the wave of inter- ing those off in 2007, it was really agent late last year. est in greater downtown has been Class A Offices tough,” she said. a boon for The Loft Warehouse, TWO PRIME LEASE OPPORTUNITIES which today employs 18 people in Anticipating growth brokerage and property manage- Exclusive client Austin Black II, president of ment, up from seven in 2011, and It was in 2012 that The Loft City Living Detroit, a Detroit-based " Complete Turnkey Bar/Restaurant has increased unit sales from 11 in Warehouse began to make more of real estate brokerage firm, ex- " 6,500 Sq. Ft. Building 2011 with a combined value of $3.11 " Including 2 Fully Furnished Condominiums a name for itself when it picked up pects continued growth for The " million to 106 last year with a com- Great Opportunity in Growing Northern the exclusive listing for The Resi- Loft Warehouse. Michigan Market of Boyne City bined value of $29.37 million, ac- " Very Tastefully Done dences at the Westin Book Cadillac “For a lot of businesses that cording to company-provided fig- " Business comes complete w/Liq. Lic & Fixtures. Detroit, which has 63 condo units made it through the recession, ures. For Your Personal Tour: developed by Cleveland-based The now with what’s going on in the Call or Text Marty Moody 231-633-2500 That gives the company 32 per- Ferchill Group along with the hotel city, many of us are benefiting or Chris Christensen 231-675-1144 cent of the Detroit condo market in a $180 million redevelopment. from the city’s growth, and the Bloomfield Hills Office Complex share, the highest in the city. “Everyone started to know us long-term prospect is to continue up to 8,000 Sq. Ft. FOR LEASE It’s not just sales. Leasing is also and trust us because we have been to grow more than today,” he said. 6001 N. Adams Road up, from 79 to 102 leases in the here through the tough times of Even people who work for other 27 S. Lake Street, Boyne City, MI 49712 same period. 2008, 2009, 2010 and 2011,” Huez real estate companies like Dennis www.whylyndas.com In addition to Huez and Sanzot- said. The company still has the Kefallinos’ Detroit-based Boydell ta, three other employees have en- listing. Development Co., which has devel- gineering backgrounds, which The Loft Warehouse added prop- oped loft buildings throughout the Huez said is beneficial to the com- erty management to its list of ser- city, say they’ve used The Loft JOB pany. vices in 2009 and currently man- Warehouse in their personal “We can speak the same lan- ages 330 units, including 135 lives. condos, in the greater downtown FRONT guage as builders, developers, in- “If you are in a relationship Auburn Hills ON University DRIVE vestors and even bankers as we all area. with them, you’ll find it’s pretty 375 to 40,000 SF SUITES for lease have had financial training in one “It was an adaptation to a sales easygoing,” said Eric Novack, se- POSITIONS AVAILABLE 3250 University Drive form or another,” Huez said. market where values crashed but nior project manager for Boydell. where the rental market stayed “It’s good for the owners and the ACCOUNTING MANAGER Some individual entrances available very strong, thus attracting many Taylor Truck Dealership clients. They are an excellent bro- . BA with 5+ years “Class A” Offices with “Class A” Locations Chain of events investors who needed a full-ser- kerage firm for luxury living.” exp. with full charge accounting req., manage staff of 5, HR duties. CPA helpful but not req. Very Competitive Rates at $14.75 Per Ft Huez didn’t have any of the ear- vice offering: purchase assistance, Kirk Pinho: (313) 446-0412, ADP experience a plus. Full time. Excellent Leasing Broker: Colliers 248-540-1000 marks in his health profile to point rehab, leasing and property man- [email protected]. Twitter: pay and team. or call Owner: 248-322-9118 to a risk of heart attack. He doesn’t agement,” Huez said. @kirkpinhoCDB Email resumes to: [email protected] for inspections and information 20150223-NEWS--0022,0023-NAT-CCI-CD_-- 2/20/2015 5:56 PM Page 1
Page 22 CRAIN’S DETROIT BUSINESS February 23, 2015 Credits: Were tax incentives good policy ... or a MEGA mess? ■ From Page 1 “I would submit that the budget this month to make $102 million in challenge would be far greater if budget cuts to state agencies — in- the $16.3 billion in auto investment Mich. may pave the way to tax credit fix cluding the Michigan State Police, had not come to Michigan and in- Department of Corrections and the stead went to another state. With- Department of Community Health. out (MEGA), Michigan would be Michigan isn’t alone in its corporate tax incentive lumbia passed laws that will require regular evalua- MEDC CEO Steve Arwood told languishing in the doldrums of burden. tion of these tax incentives and are designed to im- the House committee last week 2009.” States such as Oklahoma, Louisiana and others prove existing evaluation processes, according to a there will be no amendments to But officials question whether face budget constraints tied to business tax credits January analysis by The Pew Charitable Trusts. MEGA deals but that his adminis- the program was too much for too and incentives, but Michigan may be the road map However, the states remain on the hook for exist- tration had been revising agree- long. to alleviate the woes nationwide, experts say. ing tax credits. ments. The state is asking compa- Rep. Jeff Farrington, R-Utica State and local tax incentives cost taxpayers as Gov. Rick Snyder and his administration have nies to take their credits in the year and chairman of the House tax pol- much as $70 billion annually, the Wall Street Journal been open about potential pitfalls from the Michigan they are certified, to annually pro- icy committee, said “too much fer- reported. And many of these entities are unaware of Economic Growth Authority tax credit program, ject a three-year credit redemption tilizer was used on economic gar- the liability, created by the incentives, said Norton which was eliminated in 2011. schedule, The Associated Press re- dening” for the program. Francis, a senior research associate at Washington Francis said interstate competition created the ported. Farrington said the job reten- D.C.-based think tank The Brookings Institution. problem; now other states will look to Michigan as it Farrington, however, said the tion program, which accounts for “These credits make revenue estimating very dif- sorts out its own issue with tax credits. Legislature could take action to nearly $7.5 billion of the total cred- ficult,” Francis said. “While people are getting bet- “What’s happening in Michigan will make this combat the MEGA liability. ter about reporting, which means we’re getting a much more transparent for the other states that its authorized, was overused dur- “I don’t think anyone wants to better warning for problems, many states don’t will need to take a hard look at this overhead,” ing the recession to benefit the cut MEGA tomorrow, but we know how much they have outstanding.” Francis said. auto industry at too high a cost to added a benefit to companies with From 2012 to 2014, 10 states and the District of Co- — Dustin Walsh the taxpayer. the elimination of the MBT and the “We paid an enormous amount personal property tax (for compa- to keep employees here, and that ings Institution, said the downturn perception that companies were and is expected to claim the other nies),” Farrington said. “Compa- doesn’t make a lot of sense,” Far- spurred these programs to unsus- going to leave if you (government) $50 million this year, Forcier said. nies came to us when it was to rington said. “Were most of those tainable proportions. didn’t do something.” The state has paid out $1.5 bil- their advantage. Well, the playing jobs going to leave the state? We’re “The credit program seemed to Johnston told the House com- lion of the current $9.4 billion in li- field has changed. We shouldn’t not sure.” get out of size for its scope; it got mittee that the state had no choice abilities, the MEDC confirmed. have a kneejerk reaction, but it’s Norton Francis, a senior re- bigger than anyone intended,” but to offer these incentives to Many credits were not claimed disingenuous to say we’re not search associate at Washington, Francis said. “During the reces- compete with other states offering due to the repealing of the Michi- looking at making some changes.” D.C.-based think tank The Brook- sion, it was hard to argue with the similar measures. gan Business Tax in 2011. Dustin Walsh: (313) 446-6042, “When you think about the Companies were forced to choose [email protected]. Twitter: (plant) closures around the coun- between keeping the tax credits and @dustinpwalsh try, other states didn’t play the remain under the MBT until those game as aggressively and lost,” credits expire or enter the new flat Johnston said. “The discussion of Corporate Income Tax structure, MEGA is essentially a discussion which applies only to C-Corps. Change in of the never-ending interstate bat- tle for high capital investment. … If Michigan had not been aggres- formulas led to sive with a MEGA-style program, Were most of we would not have beaten the “ other states … and we did.” those jobs miscalculations Jason Forcier, CEO of A123 going to leave Systems LLC, said MEGA cred- The Michigan Economic Growth its were directly responsible the state? Authority job retention tax cred- for the lithium-ion battery its, estimated at nearly $9 bil- maker’s plants in Livonia We’re not lion, remain an unpredictable and Romulus. liability for the state. A123 was authorized for sure. Volatility exists due to for- $100 million in MEGA credits ” mulas used to calculate the from the state in 2009, but did- Rep. Jeff Farrington credits, which do not limit n’t redeem the credits until last when the credits are redeemed year due to its Chapter 11 filing in and fluctuate with rises in 2012, Forcier said. S-Corps likely made the choice wages and health care costs. In 2009, the U.S. Department of En- to ditch the MBT and the MEGA Before 2008, there were as ergy awarded then-Massachusetts- credits because S-Corps don’t pay many as 12 calculation formu- based A123 a $249 million grant corporate income tax under the las that were not affected by through the American Reinvest- new rules, said Lynn Gandhi, part- health care costs. Those formu- ment and Recovery Act. ner at Honigman Miller Schwartz and las were condensed to one for- A123 spent $300 million to retro- Cohn LLP and adjunct professor at mula in April 2008, which then fit a plant in Livonia — the former Wayne State University Law School. allowed for health care cost and home of Technicolor Inc., which “Many companies did the math wage growth cost fluctuations. vacated the building more than a and walked away from the cred- For instance, under the old for- decade ago. its,” said Gandhi, who is also the mula, a project retaining 3,000 Its Michigan operations, now former assistant general counsel jobs with wages at $60,000 per housed in its Livonia headquar- for Visteon Corp. “The current lia- employee would generate credits ters, once employed more than bility would have been four or five worth $3.83 million. That same 1,000, now down to 500. MEGA re- times larger had the administra- project, post-April 2008, would quired A123 to create and main- tion not eliminated the MBT.” cost the state nearly $8 million by tain only 300 jobs in Michigan, at a But the state remains on the adding in health cost fluctua- value of more than $33,333 per job. hook for $9.4 billion in remaining tions, according to the Michigan Forcier said it’s too early to be credits, with no clarity on when Economic Development Corp. critical of the MEGA program. companies will redeem them un- But once rising wages, mostly Call Paul Mattes “If it hadn’t der the MEGA agreements. This attributed to the auto industry Vice President-Principal been for the creates volatility in revenue esti- resurgence, and rising health care costs, are added in, those fig- Certified Risk Architect MEGA credits, mating for the state, Francis said. ures rise by another 30 percent. we would have “The state may have an idea of These formulas led to the never built facto- the flow of credits, but it’s impossi- state’s $3 billion miscalculation ries in Michi- ble to know the liability at any giv- of its MEGA credit liability in gan,” Forcier en point,” Francis said. “Most of January. The state had calcu- said. “There’s an these credits were given out dur- lated the totals based on origi- argument that ing a recession, now (Michigan) is projecting its revenue on the cur- nal estimates when the MEGA It’s time to rethink your insurance strategy $100 million is credits were authorized. expensive for 300 rent economy, and these factors Forcier from the previous economy come The state now has an estimat- 888.525.7575 | 586.323.5700 | sterlingagency.com jobs, but let’s ed liability of $9.4 billion on the look at the outcome over 10 years to into play.” To combat the budget shortfall credits, with most not expiring see the real results.” until 2030. Sterling Insurance Group is a Michigan based company. tied to the MEGA program, Snyder A123 claimed $50 million in 2014 — Dustin Walsh in two installments from the state signed an executive order earlier 20150223-NEWS--0022,0023-NAT-CCI-CD_-- 2/20/2015 6:46 PM Page 2
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 23
BRIEFLY Ascension subsidiary plans Toyota to consolidate, moving Winter’s deep freeze turns most State appeals court upholds N. Amer. R&D base to Ann Arbor of Great Lakes’ surface to ice ruling on GM retiree benefits to buy U.S. Health and Life Toyota Motor Corp. is consolidat- For the second consecutive win- The Michigan Court of Appeals up- ing its North American R&D base ter, bitter weather threatens to held a magistrate’s 2011 ruling BY JAY GREENE “The acquisition makes a lot of turn the surface of the Great Lakes in a step that moves it closer to which found that General Motors Co. sense,” Aoun said. “Hospitals into a vast frozen plain. CRAIN’S DETROIT BUSINESS creating the carmaker’s first truly had improperly reduced workers are now expected to manage pop- The federal Great Lakes re- self-sufficient product develop- compensation benefits to some re- A subsidiary of St. Louis-based ulation health and owning a search laboratory in Ann Arbor ment center outside Japan. tired workers. Ascension Health plans to buy health plan provides both infra- reports Friday that nearly 81 per- The shift will bring most of the The three-judge panel ruled that Sterling Heights-based U.S. structure and a way to connect cent of the five lakes’ surface area company’s regional development a 2009 deal struck between the Unit- Health and Life Insurance Co. for more directly with insurance is ice-covered. On Thursday, the functions to its technical center in ed Auto Workers and a financially $50 million, according to docu- purchasers.” Ann Arbor. It also includes $126 ice cover exceeded 85 percent. distressed GM to coordinate pen- ments filed with the Michigan De- The lab’s George Leshkevich In 2013, USHL reported $67.4 million in new investment in pow- sion and workers compensation partment of Financial and Insurance says the small drop-off probably million in net premiums, about ertrain operations. benefits was improper. Services. happened because winds broke half of which was from Michi- The upgrade will allow for more The now-deceased plaintiff in the USHL is licensed in about 20 apart some ice, creating open spots. gan. Its surplus was approxi- case, Clifton Arbuckle, began work- states, including Michigan, Ohio, enhanced vehicle and powertrain Still, satellite imagery shows mately $8 million. USHL is also ing at GM in 1969 and was awarded Illinois and Indiana. Ascension development and move about 85 this year’s ice cover has grown affiliated with Automated Bene- jobs to Michigan from California workers compensation benefits in Health is the parent company of rapidly, nearly doubling over the 1995 at a fixed rate of $362.78 a week. fits Services, a Michigan third- by 2016. It follows another shift, past couple of weeks. Warren-based St. John Providence party administrator, according announced last year, which will In November 2009, GM sent Arbuck- Health System, a five-hospital sys- Records show the lakes’ most le a letter informing him that as of to documents filed with the in- transfer 250 procurement and sup- widespread freeze was 94.7 percent tem, and nine other hospitals in surance department on Jan. 14. plier engineering jobs to Michi- Jan. 1, 2010, his benefits would be re- Michigan. in 1979. The ice cover topped out at duced to $262.55 per week in light of The proposed acquisition of gan from Erlanger, Ky. 92.2 percent last March. Joseph Aoun, health care the coordination agreement struck USHL will be through a newly The expansion is part of Toy- — Associated Press lawyer with Nuyen, Tomtishen and with the UAW. formed subsidiary, Ascension ota’s plan to establish a new Aoun PC in Ann Arbor, said the In March of 2011, Kenneth Birch Care Management LLC, which North America headquarters in acquisition of USHL will provide of the Michigan Workers’ Compen- states its “primary business is to Plano, Texas. Texas will get man- Grow Mich. issues 5 new loans, Together Health Network LLC, a sation Board of Magistrates issued own and operate businesses that ufacturing, sales and marketing physician-led clinically integrat- ups 4Q investment to $11.1M a ruling that found that GM had im- are part of the population health and corporate functions; Michi- ed network, with the ability to Grow Michigan LLC, an investment properly reduced Arbuckle’s bene- management platform of Ascen- gan will become the regional hub participate on the state’s health fund founded through a joint effort fits. Arbuckle died in April 2014. sion.” for product development. insurance exchange with its nar- of the Michigan Strategic Fund and GM appealed Birch’s ruling and row provider network. Tony Tersigni, Ascension Building an independent U.S. 19 Michigan banks, has announced in 2012, the Michigan Compensa- Health’s CEO, is a one of three R&D hub has been a top priority USHL’s target market is em- five new loans, totaling $11.1 million tion Appellate Commission re- ployers of less than 100 employ- directors of Ascension Care for Toyota President Akio Toyo- in the last quarter of 2014. versed the magistrate’s decision. Management. The other two are da, who wants to give regional op- ees. It has received approval Receiving funding to grow oper- The ruling by the state appeals from the Centers of Medicare and top Ascension executives, CFO erations greater autonomy in run- ations are: court reverses the compensation Medicaid Services to sell various Anthony Speranzo and Joseph ning their businesses. Barracuda Industries LLC, a appellate commission’s decision. policies for small employers un- Impicciche, general counsel. The Ann Arbor Toyota Techni- Wixom specialty glass fabricator. In their ruling, the judges said the der the Affordable Care Act. After the acquisition, USHL cal Center already leads develop- Fire Pros Inc., a Grand Rapids- union did not have the authority Together Health is owned by will be a wholly owned sub- ment of such vehicles as the Aval- based provider of commercial fire under federal labor law to change two of the nation’s largest health sidiary of U.S. Health Holdings on sedan and the Tundra and system and suppression services. the collective bargaining rights of care systems, Ascension Health Ltd, a Michigan-based corpora- Michigan Custom Machines Inc., Tacoma pickups. Toyota has the retirees. and Livonia-based Trinity Health. tion. a machine manufacturer in Novi. named five American chief engi- A spokesman for GM said the The two systems own 27 hospitals Jay Greene: (313) 446-0325, PF Michigan Group LLC, a neers to pilot those programs. But company will appeal the decision. with more than 5,000 physicians [email protected]. Twitter: bolstering powertrain develop- Northville-based franchisee for — Business Insurance health and fitness facilities. on medical staffs in Michigan. @jaybgreene ment is one of the last gaps to fill. Ann Arbor still leans on Japan for Turbo Components Inc., a maker of turbochargers in Fruitport. engines. Grow Michigan has invested $31.8 As part of the overhaul, Toyota million in 19 Michigan companies also is shifting prototype opera- since May 2013. Grow Michigan was tions to Ann Arbor from two other founded in February 2013 with $60 metro Detroit sites. million in capital to provides capital Toyota is building two large ex- for growing small businesses in the tensions to its main technical cen- form of subordinated debt. ter campus in Ann Arbor. One Combined with partnering loans will accommodate the new proto- from Michigan banks, the total typing unit, the other workspace loaned to Michigan companies is for parts procurement. more than $200 million. — Automotive News — Tom Henderson 20150223-NEWS--0024-NAT-CCI-CD_-- 2/20/2015 5:58 PM Page 1
Page 24 CRAIN’S DETROIT BUSINESS February 23, 2015 Energy: Utilities have 5-year plans – but they’re under wraps ■ From Page 3 (five-year) report seems to be a com- Supply plans sumers Energy said it is projecting tomers), all that recovery and bur- “(Consumers Energy) says they plete departure from that. Each util- sufficient power supplies over the den of the costs would be placed on have all these new programs for de- ity is trying to guard its own future At least nine power suppliers, in- five-year planning period to meet our customers,” Sparks said. “We mand side management, but when by not revealing how they meet the cluding Detroit-based DTE Energy the needs of its full-service utility don’t think that is fair.” will they put them in place?” critical needs of their customers.” Co., filed their five-year electricity customers. Strong said. “We don’t know. There The PSC asked for five-year supply plans under seal because However, Tim Sparks, Con- is a cost for customers, well over plans because of a recent finding by they contained proprietary infor- sumers vice president for energy Division of power $1,000, so there is some doubt peo- the Midcontinent Independent System mation. More than 12 others, in- supply, said Con- In Consumers’ report, the utility ple will sign up for it. How will they Operator, the regional entity that cluding Jackson-based Consumers sumers Energy said it plans to generate 8,000 fund the conversion and how much oversees electric grid reliability, Energy Co., filed reports that had does not plan to megawatts of electricity, which in- will they charge the customer?” that it expects a 3,000-megawatt some public portions. increase genera- cludes peak load and required re- On the renewable energy side, electric supply shortfall in the Low- Wolverine Power Supply Coopera- tion capacity to serves, from coal, hydroelectric, Sparks said Consumers does not er Peninsula by 2016. tive Inc., a nonprofit cooperative meet the needs of natural gas and renewable energy. plan to add future generation with The shortfall is expected primar- with seven members based in the 300 former Of that, about 5,400 megawatts renewable energy beyond a 10- ily because at least nine coal-fired Cadillac, said it plans to add 384 customers that are owned generation with the re- megawatt community solar pro- power plants in Michigan will be megawatts of electricity over the chose to pur- mainder made up from purchase ject announced earlier this year. retired by 2016 due to plant age and next five years to meet demand. chase about 600 agreements, including from the Pal- “Renewable energy doesn’t pro- to comply with more stringent air Some 214 megawatts will come megawatts of isades Nuclear Power Plant in Covert, vide you as much capacity as one quality regulations from the U.S. En- from power generated in 2017 from Sparks power from al- and the rest from various customer might think,” Sparks said. “A 100- vironmental Protection Agency. two wind power plants — Deerfield ternative energy suppliers. incentive programs, Sparks said. megawatt wind farm, Cross Winds Strong said utilities could be Wind Farm and Apple Blossom Wind Officials for Consumers and But when Consumers retires its Energy Park, only counts 14 percent planning additional power plants Farm — through Wolverine member DTE have said they would support seven coal-fired plants by April of installed capacity, or 14 and not want the public to know Spartan Renewable Energy Inc., ending the 2008 customer choice 2016, Sparks said, that will reduce megawatts based on a three-year because that could jeopardize po- Wolverine said. law that creates a hybrid regulated peak power generation by about rolling average. … Solar counts 30 tential rate increases they may be Spartan sells renewable energy utility system. 900 megawatts. to 40 percent of its capacity.” planning to request. to industrial and commercial cus- “These (alternative energy sup- The company plans to replace Sparks said Consumers is look- Several energy sources told tomers under Michigan’s 2000 Cus- pliers) traditionally rely on pur- that power with the purchase of a ing to the state Legislature this Crain’s that if Michigan does not tomer Choice and Reliability Act chases from the MISO (regional) 524-megawatt gas-fired plant in year for additional guidance on re- have a enough power generation and later amended through Public electricity market to meet the pow- Jackson, 30 additional megawatts newable energy, energy efficiency capacity, one outcome is that the Act 286 of 2008. er needs of their customers,” by upgrading generators at the Lud- and customer choice. PSC could order electricity Michigan’s 6-year-old customer Sparks said. ington Pumped Storage Plant and The 2008 energy law expires Dec. providers to build new power choice cap limits the number of But if the suppliers are unable to by purchasing additional capacity 31, and most observers expect the plants to meet demand, although business customers that can leave purchase excess electricity be- on the regional power market, he Legislature to take some action to it’s unclear how a plant could be the state’s utilities to purchase cause of a shortfall or raise rates to said. renew all or parts of the energy law. built and brought online in that electricity from the state’s 24 alter- choice customers, Sparks said Sparks also said Consumers “If we are required (to add re- time frame. native energy suppliers. The cur- those customers could choose to go plans to reduce peak power needs newable energy), we will,” he said. PSC officials declined further rent cap is 10 percent of the aver- back to DTE or Consumers. by incentivizing customers to re- Jay Greene: (313) 446-0325, comment since the case (U-17751) age sales of a power company. “If we planned to build a power duce power through “demand side [email protected]. Twitter: is pending before the commission. In its 46-page public filing, Con- plant (to serve the choice cus- management programs.” @jaybgreene Fracking: UM report offers options but no recommendations ■ From Page 1 projects in the state. fined by the state of State of the industry cal use and water quality, possibly “Banning (high-volume hy- Michigan as a well including the full disclosure to state draulic fracturing) provides the that uses more than As of last December, there were officials of all chemicals used in the most comprehensive solution for 100,000 gallons of hy- 13 high-volume hydraulic fractur- hydraulic fracturing process — addressing concerns about the po- draulic fracturing flu- ing wells producing natural gas in even substances considered to be tential risks of unconventional id — a mixture of wa- Michigan and 11 sites where trade secrets.” shale gas development,” said the re- ter, sand and more drilling has been completed, ac- For years, environmental port, noting that more than 11 com- than 750 chemicals — cording to the report. groups like the Michigan chapter munities support a statewide ban. some considered car- Fracking has occurred in Michi- of Sierra Club and Michigan Clean “However, this option comes at cinogenic, such as gan since the late 1940s, but those Water Action have been cautioning the cost of reducing income to the lead, benzene, mer- approximately 12,000 oil and gas of the dangers posed by fracking mineral rights owners, industry, HEATHER ROUSSEAU/CIRCLE OF BLUE cury, formaldehyde, wells were relatively shallow wells operations on potable water sup- As of December, 13 high-volume hydraulic fracturing and the state by preventing devel- methanol, ethylene — up to 2,000 feet — with lower vol- ply, soil, air and human health. wells were producing natural gas in the state. opment of the resource,” said the glycol and hydrochlo- umes of water, some 50,000 gallons. 240-page report released Friday. ing in Michigan. The first part was ric acid. “With the intensity of waste- Despite concern from the envi- issued in 2013 and discussed the But because natural gas prices water generation associated with Parallel rules? ronmental community about the history of fracking, the potential have dropped in recent months, high-volume hydraulic fracturing, Another option brought up by potential for a dangerous deep-well environmental dangers and eco- Michigan appears to have time to it is not clear whether the laws and UM researchers is to remove the ex- chemical spill, Shaw Lacy, a former nomic benefits. develop additional regulations on regulations written at a time of emption that fracking operations Graham researcher now with the UM researchers reiterated that high-volume water hydraulic frac- small-scale, shallow hydraulic have from the regulations govern- Catholic University of Chile in Santia- the Hydraulic Fracturing in Michigan turing, said the UM researchers in fracturing options will be ade- ing deep water withdrawal.“One op- go, said Michigan has no history of report does not offer any recom- a previous report, the Hydraulic quate,” the report said. tion is to include it” in water with- water pollution intrusion from mendations for public policy, leg- Fracturing in Michigan Integrated As- Michigan is among 24 states that drawal rules, Shaw said. “DEQ deep-water injection of chemicals islation, regulations or permitting. sessment. require well operators to disclose proposed regulation would bring during the fracking process. It is meant as a science-oriented the chemicals used in hydraulic more in line with how the water In 2013, a surface water spill of review of fracking that presents fracturing fluids. But operators withdrawal process is for other about 400 gallons of fracturing fluid the strengths, weaknesses and out- Plan B have 60 days after the well is users (including agriculture), but occurred in Kalkaska County from comes of various courses of action, Another option cited by the UM drilled to submit the list to the still it wouldn’t be an exact parallel. a well operated by Calgary-based said John Callewaert, Graham’s scientists in the current report state and can protect the identity Another is to rescind the exemp- Encana Corp. The state Department of project director. “It takes into ac- would be to require fracking opera- of certain chemicals. tion.” Environmental Quality investigated count the possibility that (frack- tors to create emergency response Sara Gosman, lead author of the Currently, frackers are required but did not issue a fine. ing) could become more wide- plans before drilling some 10,000 chemical use chapter and a former to use only Michigan’s Water spread due to a desire for job feet into the ground begins and wa- lecturer at the University of Michigan Withdrawal Assessment Tool, an creation, economic growth, energy ter withdrawals of up to 10 million Law School, said the biggest con- online program managed by DEQ Scientific review independence and lower-carbon gallons of water used. cerns and objections center on the to evaluate long-term groundwater The UM report’s seven chapters fuels,” the report said. The report said frackers could composition of the fracking fluid. withdrawal impacts. offer various options covering pub- But Callewaert said the draft re- be required to immediately notify “States take various approaches The UM report said, however, lic participation, water resources port will be shared with more than the public and state officials if to limit the chemicals or require dis- that the assessment tool may not and chemical use related to high- 1,200 individuals, including Michi- spills occur. closure,” said Gosman, who now is effectively “address short-term, in- volume hydraulic fracturing — the gan legislators, government offi- Moreover, operators could be re- at the University of Arkansas. “Michi- tensive withdrawals such as those practice of removing natural gas cials, industry experts, other acad- quired to carry a liability insur- gan’s policies are built around re- associated with hydraulic fractur- and oil from deep within the earth. emics, environmental advocacy ance policy of $1 million per well mediation and adaptation.” ing operations.” The two-part report is one of the groups and the general public. and bonding policies improved. The report said Michigan could Jay Greene: (313) 446-0325, most comprehensive looks to date How does high-volume hy- Michigan has no laws to require impose “more extensive require- [email protected]. Twitter: at the practice of hydraulic fractur- draulic fracturing work? It is de- insurance coverage. ments for information about chemi- @jaybgreene 20150223-NEWS--0025-NAT-CCI-CD_-- 2/20/2015 6:51 PM Page 1
February 23, 2015 CRAIN’S DETROIT BUSINESS Page 25 Tech: Bringing startup hub to heart of Ann Arbor www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 first tenant: Coolhouse Labs, a tech of Ann Arbor, LevelEleven of Detroit, of Harbor Springs from London, ciate vice president for research or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- incubator that was launched in Ablative Solutions Inc. of Kalamazoo, San Francisco, Denver, Houston, and director of technology transfer 6032 or [email protected] downtown Harbor Springs in 2013. and AdAdaptive Inc. of Ann Arbor. Chicago, Philadelphia, New York, at the University of Michigan. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] It will open up another incubator Suter, Snider and Ian Berry, a Toronto and Taipei, Taiwan. UM operates an 18,000-square- MANAGING EDITOR Jennette Smith, (313) 446- under that name in Ann Arbor, former lead engineer at Barracuda For the first two groups, Breigh- foot tech incubator called the Ven- 1622 or [email protected] DIRECTOR, DIGITAL STRATEGY Nancy Hanus, with plans to have eight to 12 star- who is a co-founder and chief tech- ner invested $25,000 in each com- ture Accelerator at the school’s (313) 446-1621 or [email protected] tups taking space next January. nology officer at LiftMail, joined pany in exchange for 6 percent of north campus complex. MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or “We’re going to create a really with Malcoun to form a dba called equity and provided them with on- It’s not space available to the pub- [email protected] high-end environment. We want Space to purchase downtown Ann site design help. lic, and even many of its tenants SENIOR EDITOR/DESIGN Bob Allen, (313) 446- 0344 or [email protected] this to be the Madison Building of Arbor office buildings to help grow He said six of the companies are would probably prefer a downtown SENIOR EDITOR Gary Piatek, (313) 446-0357 or downtown Ann Arbor,” said Mal- the startup ecosystem. still alive, with one in Michigan, location once they graduate from a [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or coun, referring to the Dan Gilbert- Suter said he can’t disclose the Ann Arbor-based Localfu, a Web- need to be incu- [email protected] owned building in the former formal name of the company’s LLC, based trip planner. bated, said Nis- RESEARCH AND DATA EDITOR Sonya Hill, (313) 446-0402 or [email protected] Madison Theatre building that has because it would give away the loca- That may seem like a small sur- bet. WEB PRODUCER Norman Witte III, (313) 446- become the focal point and poster tion of the buildings under agree- vival rate, but the point was to fund “This seems 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica child of the growing startup activi- ment. The total investment in the good ideas and see whether they like a great de- Crawford, (313) 446-0329 ty in downtown Detroit. project also isn’t being disclosed, could evolve to the point that they velopment. Peo- NEWSROOM (313) 446-0329, FAX (313) 446- Nutshell, which offers customer pending the real estate purchases. could attract serious investment. ple want to be 1687 TIP LINE (313) 446-6766 relationship management services “The Space name is a play on the From the start, Breighner said, he downtown. They REPORTERS Jay Greene, senior reporter: Covers health care, to help companies organize and heart of the issue as we see it — one assumed a large failure rate. like to be able to insurance, energy utilities and the environment. manage sales leads, on desktops of the things startups in Ann Arbor Breighner said he will increase congregate,” (313) 446-0325 or [email protected] and through apps, was founded in need most is simply access to office funding for the Ann Arbor compa- said Nisbet. “If Amy Haimerl, entrepreneurship editor: Covers Nisbet entrepreneurship and city of Detroit. (313) 446- 2011 by Suter and Lindsay Snider space downtown,” said Suter. “Our nies to $50,000. He said companies they’re not ask- 0416 or [email protected] while both were high-ranking ex- approach with Space will combine can apply for entrance into the ing top dollar, I’m sure they’ll find Chad Halcom: Covers litigation and the defense industry. (313) 446-6796 or [email protected] ecutives in Barracuda’s Ann Ar- short-term leases with startup- first class of startups at www.cool- plenty of tenants, some of whom Tom Henderson: Covers banking, finance, bor office. friendly services. The idea is to re- houselabs.com, beginning about will make it and some of whom technology and biotechnology. (313) 446-0337 or [email protected] Snider was director of engineer- move barriers so entrepreneurs can Labor Day. won’t, which is the way it works. Kirk Pinho: Covers real estate, higher education, ing, and Suter was head of the data get started quickly making stuff. Malcoun was a mentor for last But they’ll have plenty of available Oakland and Macomb counties. (313) 446-0412 or [email protected] storage unit called Barracuda Back- “This isn’t your typical commer- summer’s crop of tenants at Cool- entrepreneurs.” Bill Shea, enterprise editor: Covers media, up. They left Barracuda just before cial real estate project because its house. UM also manages a small incu- advertising and marketing, the business of sports, and transportation. (313) 446-1626 or the company’s initial public offer- driving goal is to support our local “Joe gave me a call in September bator space for students that is [email protected] ing in November 2013 to concentrate entrepreneurs and help Ann Ar- and asked if I would be interested downtown, called TechArb, which Dustin Walsh: Covers the business of law, auto suppliers, manufacturing and steel. (313) 446- on Nutshell and another startup bor’s startup ecosystem grow and in doing something with him in shares space under a parking 6042 or [email protected] called LiftMail, a company still in gain national visibility. Space is a Ann Arbor. It was a quick ‘yes,’ ” structure with Menlo Innovations. Sherri Welch, senior reporter: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or beta testing that they hope will im- passion project,” he said. said Breighner. Another incubator, the Tech Brew- [email protected] prove the way email is organized Coolhouse Labs had five incuba- Malcoun said the goal is to cre- ery, is in the former Northern Brewery ADVERTISING through the use of artificial intelli- tor companies in its first three- ate a sense of community to entre- Building northeast of downtown. SALES INQUIRIES (313) 446-6052; FAX (313) gence. month summer session in 2013 and preneurs that can be found in “We still don’t have a national 393-0997 Last August, they hired Malcoun, eight in its second session last some other tech centers, such as reputation for our startup ecosys- SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. a former DTE Energy Co. executive, to summer. Its third session begins Austin, Texas, and Boulder, Colo. tem. Having an ecosystem here will Langan be Nutshell’s CEO. Malcoun is a over the Memorial Day weekend. And others who support the en- help us recruit and retain employ- ADVERTISING SALES Christine Galasso, Joe Miller, Sarah Stachowicz member of the Ann Arbor Angels and Thanks to help from a national trepreneur community say the ees and help us recruit companies,” CLASSIFIED SALES MANAGER Angela Schutte, owns his own small venture capital startup support organization called new project will fill a gap. he said. (313) 446-6051 firm, CKM Capital Partners, which TechStars, Coolhouse founder Jor- “When you hear about two build- Tom Henderson: (313) 446-0337, CLASSIFIED SALES Lynn Calcaterra, (313) 446- 6086 has made investments in several lo- dan Breighner has been able to re- ings being bought, you don’t think [email protected]. Twitter: AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo cal startups, including Avegant Corp. cruit companies to the small town Ann Arbor,” said Ken Nisbet, asso- @tomhenderson2 EVENTS MANAGER Kacey Anderson CREATIVE SERVICES DIRECTOR Pierrette Dagg SENIOR ART DIRECTOR Sylvia Kolaski MARKETING COORDINATOR Ariel Black SPECIAL PROJECTS COORDINATOR Keenan Covington SALES SUPPORT Suzanne Janik, YahNica Crawford Midtown: EDITORIAL ASSISTANT Nancy Powers Neighborhood groups oppose project PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Andrew Spanos ■ From Page 1 CUSTOMER SERVICE The building is owned by Kathy on the same block at 69, 90 and 100 trict, given the number of units, she in Jackson. The Downtown Market MAIN NUMBER: Call (877) 824-9374 Makino Leipsitz, president of De- Seward into 100 units of market- said, and it should come from a poli- in Grand Rapids, where Detroit- or [email protected] troit-based Shelborne Development rate apartments, with a small num- cy about what is in the best inter- based Slows Bar BQ plans to open a lo- SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Group Inc. ber of affordable units to comply ests of that part of the district, in- cation, is across from two of LC Con- Outside U.S.A., add $48 per year to out-of-state Following the deal’s closing, ex- with Mayor Mike Duggan’s call for cluding the areas south and to the sulting’s affordable developments, rate for surface mail. Call (313) 446-0450 or pected in July or August, LC Con- the inclusion of affordable housing north in the Virginia Park area he said. (877) 824-9374. SINGLE COPIES: (877) 824-9374 sultants plans to rehab the building units in new developments happen- where investments have been made The presence of affordable hous- REPRINTS: (212) 210-0750; to create 98 units of independent se- ing in the Midtown and downtown in single-family homes, she said. ing isn’t an automatic negative to or Alicia Samuel at [email protected] TO FIND A DATE A STORY WAS PUBLISHED: nior housing, open to people with areas, Leipsitz said. With a destabilized street like other economic development and (313) 446-0406 or e-mail [email protected] incomes of up to 60 percent of area Her goal all along has been to do Seward, the best outcome is for the investment, said Kevin Kernen, CRAIN’S DETROIT BUSINESS IS PUBLISHED BY median income. Jacobson expects some affordable development on developer to work with the com- managing director in the valua- CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain the rehab to take about a year. Seward first, to bring people back munity groups, financing interme- tion and financial opinions group PRESIDENT Rance Crain The $29 million project has at- to the area, and the remaining diaries, and local and state govern- at Stout Risius Ross Inc. TREASURER Mary Kay Crain tracted $2.46 million in low-income buildings at market rate, she said. ment to come up with a financial “Overall ... we don’t find it has Executive Vice President/Operations William A. Morrow housing tax credits from the Michi- Leipsitz said strategy, she said. an immediate negative impact on Executive Vice President/Director of Strategic gan State Housing Development Au- allegations of Jacobson “is very aware we’re ... commercial and retail interest Operations Chris Crain Executive Vice President/Director of Corporate thority, and LC Consultants also mismanagement willing to work with him,” along in the market.” Operations KC Crain plans to pursue historic tax preser- of her buildings with others, to develop the project There’s a need for housing in Vice President/Production & Manufacturing Dave Kamis vation credits, managing member aren’t true. as mixed-income, she said. Detroit as everyone knows, and Chief Financial Officer Bob Jacobson said. She doesn’t “This is not what we need to be generally, it’s a positive, Kernen Thomas Stevens Chief Information Officer To develop the project as market- own a Seward bringing back our neighbor- said. The presence of affordable Anthony DiPonio rate senior housing would require property shown hoods,” Mosey said. “We need housing will, however, impact G.D. Crain Jr. Founder (1885-1973) large public or private subsidies to in the Fox 2 re- mixed-income, well-managed pro- which commercial users or retail- Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: be economically viable, he said. port as evidence jects, especially on that street.” ers choose to locate nearby. 1155 Gratiot Ave., Detroit MI 48207-2732; The investment needed can’t be of mismanage- The affordable senior housing Midtown Detroit and the Vir- (313) 446-6000 Leipsitz offset with rent. “You would need ment, and 59 Se- LC Consultants plans would mark ginia Park neighborhood associa- Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 $2,000 per month in rent,” he said. ward is secure, with boarded win- its second such development in De- tion have been clear they would pre- is published weekly, except for a special issue the third week of October, and no issue the fourth There’s a need for affordable dows and fenced lot. Leipsitz said troit, following Bellemere Apart- fer to have mixed-income housing, week of December by Crain Communications Inc. housing in Detroit, Jacobson said. she bought the building in its dis- ments on Greenfield, north of said Chris LaGrand, MSDHA chief at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and “(And) we think it’s a great part tressed condition in 2012 and has Grand River, which opened eight housing investment officer. additional mailing offices. POSTMASTER: Send of Detroit to be investing in.” been working on plans to develop to nine years ago, Jacobson said. “We don’t disagree ... that ideally address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, LC Consultants and Leipsitz — it since then. The father-son Jacobson duo has mixed-income is better than afford- MI 48207-9732. GST # 136760444. Printed in who Midtown Detroit Inc. alleged But Mosey said Midtown Detroit also done projects in Pontiac and able because of the effects it has on U.S.A. Entire contents copyright 2015 by Crain in a late January story broadcast Inc. believes another affordable Saginaw and currently is finishing the neighborhood. But from our Communications Inc. All rights reserved. Reproduction or use of editorial content in any on WJBK-TV2 isn’t properly main- building on Seward will hamper an affordable development in perspective, a redevelopment manner without permission is strictly prohibited. taining her buildings on Seward — further economic development ef- downtown Grand Rapids, Bob Ja- that’s feasible is better than no de- are also talking about co-develop- forts there. The project could have a cobson said. And it expects to close velopment or (it) remaining a ing three other buildings she owns big impact on a relatively small dis- next month on a nine-story building blighted structure.” 20150223-NEWS--0026-NAT-CCI-CD_-- 2/20/2015 6:14 PM Page 1
Page 26 CRAIN’S DETROIT BUSINESS February 23, 2015 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 14-20
photo of the infamous 1997 about $100 million, sources could have a new military brawl at Joe Louis Arena A123 sues Apple in the real estate communi- ground vehicle program during which McCarty fa- ty told Crain’s. Other locals worth more than $1.5 bil- Caesars gets mously pummeled Col- making it to the final round: lion up for bids by April orado’s Claude Lemieux. over alleged Southfield-based Redico LLC from defense contractors. “We’ll have a great time, and Troy-based The Hayman BAE Systems Inc., which we’ll have a blast, and I won’t worker poaching Co., sources said. houses its Heavy Brigade edgy with have to Lemieux your ass,” Construction is wrap- Combat Team business McCarty says in the video. ping up on Michigan’s first unit in Sterling Heights, is ivonia-based A123 Jason Warzecha, operations Field & Stream store, set to collaborating with Iveco De- Systems LLC has sued director for the Detroit Opera open March 11 outside Oak- fence Vehicles of Italy on a L Apple Inc., alleging House, told WJR 760 AM’s land Mall in Troy. Owned by proposed version of the am- the electronics giant cam- Frank Beckmann that the Pittsburgh-based Dick’s phibious combat vehicle. bacon pizza paigned to poach employ- venue will let the “Tonight Sporting Goods, it is one of Sterling Heights-based Gen- ees amid reports that it’s f you gave up pizza or Fox, beginning later this Show” use its stage for free. 10 Field & Stream stores na- eral Dynamics Land Systems developing an electric car. bacon for Lent, or are year. The latest enticement is a tionally and is unaffiliated is also expected to bid. The lawsuit, in federal I calorie counting, don’t Little Caesars’ current video, shot at Detroit loca- with the magazine of that The shareholders of court, accuses five former read any further. 186,000-square-foot head- tions such as the Dakota Inn, name. Novi-based Lotus Bancorp A123 employees of violating Detroit-based pizza chain quarters will also undergo a Fillmore and Gaelic League, of New York City-based Inc. approved the bank’s ac- nondisclosure agreements Little Caesars last week un- renovation. The new build- locals encouraging Fallon Digital First Media, owner of quisition by Farmington as they either went to work veiled a $12 deep-dish eight- ing also will include a flag- to come here. It went live a group of Michigan news- Hills-based Level One Ban- for Apple or planned to. corner pizza that uses more ship Little Caesars store. Thursday night. papers that are for sale, in- corp Inc. in a deal expected Apple rose to a record last than 3.5 feet of bacon The video, at TVWeekly- cluding The Oakland Press to close this week. The ac- week after people familiar wrapped around the Now.com, was the idea of and Macomb Daily, is ask- quisition had been ap- Detroiters trying to lure with the matter said the Cu- caramelized cheese edges. Dan Criscenti, vice president ing for some nonunion em- proved by state and federal pertino, Calif.-based compa- The “Bacon Wrapped of digital strategy of Troy- ployees to quit their jobs, regulators. Jimmy Fallon to Motown ny is working to develop its Crust DEEP! DEEP! Dish based National Television according to an internal An effort to persuade Jim- own electric car, rocking Pizza” will be available be- Book Media Inc., a publisher memo obtained by Crain’s. my Fallon and his “Tonight the automotive industry. ginning today until late of television magazines Two weeks after re- OTHER NEWS Show” to Apple’s secretive electric- April, the chain said. such as TV Weekly. His ceiving a letter from an ac- broadcast vehicle project, code-named University of Michigan re- The pie is a Detroit-style nephew Ryan Rupprecht shot tivist investor urging the from Detroit Titan, may not lead to the gents approved the $2.4 mil- deep dish pizza, Little Cae- the video and took stills on company to split into two for a week company introducing an au- lion demolition of an Ann sars said in a statement, Valentine’s Day. separately traded public has been tomobile, a person familiar Arbor building, formerly and it uses whole strips of companies, Southfield- gaining “Let’s hope this works. It owned by Edwards Brothers thick-cut bacon around the with the matter has said. based supplier Lear Corp. steam. shines a light on the city,” Malloy and purchased by the edges of the crust. It is The vehicle resembles a said it would increase its The Criscenti said. “It makes school last year, to make topped with cheese, pepper- minivan, the person said. share repurchase program “Bring the sense for us to help out in way for a $168 million sports oni and pieces of bacon. and quarterly dividend. Tonight any way we can, and to help complex on the site, The One slice is 450 calories. Fallon the Detroit resurgence.” Troy-based Talmer Ban- The bacon crust pizza Show to De- ON THE MOVE Ann Arbor News reported. Backers are using the corp Inc. bought back more Under a new deal, the will be available at U.S. lo- troit” Facebook page, as of Janet Tyler, the former hashtag #TonightShowDe- than 2.5 million warrants private sector will finance cations as a Hot-N-Ready Friday morning, had nearly co-CEO of Airfoil Group, a troit on social media. from two funds managed by construction of the Ameri- carryout option from 4 to 8 20,000 “likes.” Southfield-based public rela- Fallon, who took over the W.L. Ross & Co. LLC, the New can inspection plaza for the p.m., or by request all day, It was created by tions and “Tonight Show” franchise York-based private equity $2.1 billion Detroit River the chain said. Rochester resident Greg marketing company that helped fi- last year from Jay Leno, and bridge, said Canada’s trans- Little Caesars, estimated Hummel on Feb. 2, and he’s firm, was nance the growth of Talmer his producers have not re- portation minister, Lisa by PMQ as the third-largest been interviewed by local named COO from a one-branch operation sponded to the campaign. Raitt. U.S. pizza chain with about media as the captain of the of Red Level in 2010 to a public bank. He visited Detroit in No- The Barbara Ann Kar- $3 billion in sales, declined effort to persuade the NBC Networks, Takata Corp., the vember 2013 to promote his manos Cancer Institute in to say how many bacon- weeknight talk show’s pro- an IT ser- Japanese maker of airbags new job. Detroit was the beneficiary edge pizzas it expects to sell, ducers to film in Detroit. vices and that have led to millions of of a recent planned gift to- but did say that it has done The show’s studio is in consulting car recalls worldwide, will taling more than $1.4 mil- well in test markets. New York City, but it also Historian Goodwin tabbed firm based be fined $14,000 for each Tyler lion from the estate of the The chain first screened has aired live from Los An- in Novi. day it fails to cooperate late orthopedic surgeon the bacon crust pizza last geles and Phoenix. It will do as Mackinac keynoter Red Level’s former COO, with a U.S. investigation Kathryn Cramer. Cramer year in Albuquerque, N.M.; shows Chicago in the fu- Doris Kearns Goodwin, the Randy Cummings, was named into the part defect, died of breast cancer in Madison, Wis.; Huntsville, ture, too. presidential historian, director of the firm’s busi- Bloomberg News reported. 2005. Ala.; Butte, Mont.; and Hummel has been getting Pulitzer ness consulting practice. Takata’s North American Four Michigan chefs Great Falls, Minn. help from prominent per- Prize-win- The Auburn Hills- subsidiary is Auburn Hills- are semifinalists in the The pizza chain is owned sonalities. ning author based Michigan Council of based TK Holdings Inc. James Beard Foundation by Mike and Marian Ilitch, the Gov. Rick Snyder on Feb. 6 and former Women in Technology named Mahle GmbH agreed to ’s Detroit Tigers and Red Wings tweeted from his official presidential Sarah Prout executive direc- buy the thermal business of 2015 awards for culinary ex- owners who founded it in @onetoughnerd account: “I adviser, will tor. Prout was executive di- Troy-based Delphi Automotive cellence. The New York Garden City in 1959. They may be in the hospital, but I deliver a rector of Blue Water Safe plc for about $727 million in foundation named Garrett Li- relocated the company am well enough to know keynote ad- Horizons, a Port Huron do- cash to expand the German par, executive chef at Torino headquarters in 1989 from that @JimmyFallon should dress at the mestic violence homeless- auto-component maker’s in Ferndale, a semifinalist Farmington Hills to De- bring ‘The Tonight Show’ to Detroit Re- ness service agency. She technology offerings, as Rising Star of the Year. Goodwin troit’s Fox Theatre and the Detroit!” gional Cham- succeeds Janette Phillips, Bloomberg reported. Marc Djozlija of Wright & Co. existing office space above That message got 218 ber’s 2015 Mackinac Policy Con- now a local vice president Ann Arbor-based Pixel in Detroit, Andy Hollyday of it, which they renovated. retweets and 166 favorites. ference, scheduled for May of business development Velocity Inc., which makes Selden Standard in Detroit In December, they an- Former Detroit Red Wings 26-29 on Mackinac Island. for Indiana-based Chrysalis image-processing hardware and Myles Anton of Trattoria nounced they will build a great Darren McCarty also got Goodwin will share her Global Consulting. and software to help keep Stella in Traverse City were 205,000-square-foot Little in on the effort, recording a expertise on the composi- University of Michigan re- commercial and govern- listed in the Best Chef: Great Caesars headquarters at YouTube video encouraging tion of effective leaders. gents approved the appoint- ment facilities more se- Lakes category. Finalists Woodward Avenue and Co- Fallon to bring the show “to She is the author of six ment of Theodore Lawrence, cure, closed on a funding will be announced March 24. lumbia Street, next to the the D” and pointing to a critically acclaimed and M.D., as director of the uni- round of $10 million. New York Times best-selling versity’s Comprehensive Can- The Emergency Critical OBITUARIES books, among them Team of cer Center. He succeeds Max Care Center at the University Rivals: The Political Genius Wicha, M.D., who is stepping of Michigan Health System Gary Marcicano, execu- of Abraham Lincoln. down from the center he opened within the adult tive vice president and Goodwin won the 1995 founded 27 years ago. emergency department in COO of the Michigan Busi- Pulitzer Prize in history for University Hospital in Ann ness and Professional Associ- No Ordinary Time: Arbor, AP reported. ation and the Michigan Food Franklin and Eleanor Roo- COMPANY NEWS A Ruth’s Chris Steak and Beverage Association, sevelt: The Home Front in Dan Gilbert, founder and House will open in April in died Feb. 14. He was 55. World War II. She was an chairman of Quicken Loans downtown Ann Arbor at Martin “Hoot” McInerney, assistant to President Lyn- Inc. and Rock Ventures LLC, is 314 S. Fourth Ave. It will be a longtime Michigan auto don Johnson in his last year the frontrunner to buy the the third Ruth’s Chris in dealer who was one of the COURTESY OF LITTLE CAESARS in the White House and lat- 957,000-square-foot One De- Michigan, joining locations first to assemble a nation- Little Caesars’ new deep-dish eight-corner pizza uses more than er assisted him in the troit Center and an attached in Troy and Grand Rapids. wide chain of dealerships, 3.5 feet of bacon wrapped around the caramelized cheese edges. preparation of his memoirs. 2,070-space parking deck for The U.S. Marine Corps died Feb. 16. He was 86. DBpageAD_DBpageAD.qxd 2/6/2015 9:40 AM Page 1
$1,000 CAN CHANGE YOUR NEIGHBORHOOD
DETROIT EMPLOYERS: Grow Detroit’s Young Talent is a 6-week summer youth employment program that has been re-tooled to ensure PRE-SCREENING and ON-THE-JOB support for teens and employers. Mayor Mike Duggan invites you to help Detroiters, ages 14-24, get ready for the workforce through a summer immersion.
*URZLQJ'HWURLWŐV:RUNIRUFHLV($6<
Become an employer partner and receive a part-time student worker for up to 20 hours a week for six weeks. GDYT offers a 50/50 compensation split, for up to $1,000 and completes all recruitment and payroll paperwork!
Sponsor a full work experience through a $2,000 Pledge to GDYT. GDYT will manage student recruitment, payroll, work readiness training and match the young person to the right job opportunity.
Contribute to GDYT by directly hiring a City of Detroit youth. GDYT provides the options of helping Make an impact - you recruit and screen summer hires and offers employment support services, free of charge. visit GDYT.org today!
Grow Detroit’s Young Talent is a City of Detroit-endorsed program operated by the nonprofit organization, City Connect Detroit. For questions, contact [email protected]. DBpageAD_DBpageAD.qxd 1/29/2015 4:00 PM Page 1
the future of my business
Blue Cross Blue Shield of Michigan and Blue Care Network have a wide range of comprehensive health plans to help you make the right choice for your business.
GROUP HEALTH PLANS | DENTAL | VISION | bcbsm.com/employer
Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofi t corporations and independent licensees of the Blue Cross and Blue Shield Association.