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www.crainsdetroit.com Vol. 28, No. 48 NOVEMBER 19 – 25, 2012 $2 a copy; $59 a year

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Page 3 Keeping up with the market: Makeover for Ann Arbor inn Duggan: City on wrong road Survey says: Health care Detroit costs rise, but more slowly Medical Good management, not Detroit Works Center CEO Mike Duggan Seneca Partners split is not yet or EFM, is what Detroit needs creates more VC options a declared candidate BY CHAD HALCOM the state to take over Belle for Detroit CRAIN’S DETROIT BUSINESS Isle Park at a $6 million sav- mayor, but Second Stage Extra he says a If Mike Duggan gets to ings to the city, in part be- turnaround cast his own role as a can- cause it did not adequately ‘is not as far didate in next year’s De- address a cleanup plan for away as it neighborhood city parks. appears.’ troit mayoral race, it would likely be as the He thinks a state-appointed turnaround expert who emergency financial man- thinks the current turn- ager is all wrong for the around strategy isn’t work- city, wouldn’t take such a ing. position if asked, and won’t He opposes the 30-year comment on reports that Logistics firm finds it pays he’s been asked. to move into staffing, lease proposal in September for He finds it “hard to imag- Page 11 ine anything more mishan- dled” than the Detroit

Innovation center aims to See Duggan, Page 22 boost small manufacturing, Page 13 VIDEO Mike Duggan on core issues facing Detroit, crainsdetroit.com/duggan Crainsdetroit.com: Come in, look around next week NATHAN SKID/CRAIN’S DETROIT BUSINESS Crain’s Detroit Business is having a holiday open house! Online, that is. Suppliers, OEMs ride ups and downs Full plate to keep Crain’s will open its website to all — subscribers and non- subscribers, for one week, Nov. Challenges change contingency plans lame ducks hopping 25-Dec. 1. The website, www. BY DUSTIN WALSH automotive law. crainsdetroit.com, is continually CRAIN’S DETROIT BUSINESS “Companies know volumes are rising right Biz property tax on menu updated with breaking news, now, but they don’t know the effects of health blogs, analyses and multime- A better-than-expected rise in demand for care, the fiscal cliff — all related to consumer BY CHRIS GAUTZ dia. Content will be accessible new cars, combined with the extraordinary confidence. I don’t know how we get off this CAPITOL CORRESPONDENT free for the entire week. events of Superstorm Sandy and the federal ride.” Paid subscribers have access debt crisis, is putting already taxed auto sup- Changes to the state’s personal property tax all the time but must register. pliers into overdrive. and the conversion of Blue Cross Blue Shield of The open house is a chance to But suppliers, on aver- Obstacles around every turn Michigan into a nonprofit mutual insurance company are likely to top Lansing’s post- introduce Crain’s to a co-work- age already running their The newest pressure is the Sandy factor. er or colleague. plants at nearly 90 percent Thanksgiving lame-duck menu. The storm destroyed as many as 250,000 cars The Blues conversion in particular tops Gov. Crain’s produces several capacity, are hesitant to across the Eastern Seaboard, according to the e-newsletters that also require shift things up any further. Rick Snyder’s list. From there, the state House National Automobile Dealers Association. Au- and Senate will begin deciding what needs to registration. The newest, Crain’s Managing capacity and tomakers report scrapping 16,000 brand new Michigan Morning, is a start-the- making contingency plans get done and what some want to get done. vehicles damaged by the storm. Also on the list is a possible reworking of a day compilation of business are the new normal in an The devastation expedited demand for new news in Southeast Michigan and unpredictable economy. year-old tax on health insurance claims, im- cars to replace the casualties. posed to provide federal matching funds for around the state. See www. “The world was ending a But the latest hurricane is only one of the crainsdetroit.com/newsletters. few years ago; now we’re Sharkey Medicaid but which hasn’t raised as much mon- challenges facing suppliers as they react to ey as anticipated. Questions? Contact Nancy riding this roller coaster,” said Dan Sharkey, immediate needs and plan for next year on Hanus, digital content strategy partner at Birmingham-based law firm Brooks Other issues not yet scheduled that could manager, at [email protected]. Wilkins Sharkey & Turco PLLC and a specialist in See Suppliers, Page 25 See Lame ducks, Page 24 COMING Website Open House All content unlocked and FREE to visitors for one week only! November 25 - December 1 | www.crainsdetroit.com

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Page 2 CRAIN’S DETROIT BUSINESS November 19, 2012

MICHIGAN BRIEFS Legislation aims to boost tracks 17 event will have more than 200 shows and will take place at more Legislation pending in the GR’s ‘wage theft’ response: Promise you won’t do it than 40 venues in Grand Rapids, Michigan Senate aims to put a lit- Lowell, and Holland. LaughFest, tle giddyap in the state’s struggling Businesses that do work for the city of Grand wanted the city to establish an enforcement mecha- which raises funds for Gilda’s Club horse racing industry. MLive.com Rapids have to promise to pay employees for the work nism. But the city “did not see that as being viable, Grand Rapids, honors the memory reported that the measure would they did, including overtime they might deserve, un- as there are already state and federal laws” govern- of comedian Gilda Radner. permit horse tracks to install ma- der a “wage theft” administrative policy change the ing wage theft. Ⅲ Wyoming-based Gordon Food chines allowing customers to bet Grand Rapids City Commission approved last week. The Mayor’s Wage Theft Task Force was commis- Service has completed its $40 million, based on past races. Bettors get If they break the promise, the city can stop doing sioned by Grand Rapids Mayor George Heartwell two 386,000-square-foot headquarters on some information about the prere- business with them. However, City Manager Greg years ago to investigate wage theft in the city. The pan- a 50-acre campus. MLive.com re- corded races provided in programs Sundstrom said, the policy change does not include el had wanted companies doing $10,000 or more in ported that nearly all the invest- for live races, but not details about any enforcement provisions. Because of that, the work for the city to put up posters explaining state and ment was local, from the contrac- the races’ outcomes. measure fell short of the approach favored by work- federal wage theft laws to workers and including a tors to the Steelcase furniture and The measure was approved 91-16 ers’ rights advocates — led by the Grand Rapids- phone hotline number. But after push-back from the Haworth floors to the artwork. Gor- in the House. based Micah Center. Grand Rapids Area Chamber of Commerce, the City Com- don Food Service is the largest fami- Supporters say it would give Sundstrom said the Micah Center — a spiritually mission removed the requirement for the poster. ly-operated food distributor in horse tracks a modern gambling based organization advocating social justice — — Rod Kackley North America, with estimated an- attraction. But some casino inter- nual sales of over $8 billion. ests say that because of a 2004 con- Ⅲ Flint-based Richfield Manage- stitutional amendment, state and is that your building has been Frank Peters, who owned the build- portation Security Administration area, ment LLC will be sold for $7 million, local voters also must approve the around for a long time, meaning re- ing during Prohibition, changed a widened corridor linking two sec- with two parties buying its con- change. Tracks with live racing in- pair costs can add up. And in the the name to the White Horse Inn. tions of the airport, about 47,000 tracts and equipment out of bank- clude Mt. Pleasant Meadows, Sports end, the need for “immediate ma- square feet of new terminal space ruptcy. The buyers are Halton Recy- Creek Raceway in Swartz Creek, jor repairs to insure the safety of Flint area hopes Bishop Airport and four new gates, MLive reported. cling of Ontario and Sterling Hazel Park Harness Raceway and our staff and guests” is what Heights-based Rizzo Environmental Northville Downs. caused owner Tom Wilkins to close expansion helps region take off Services. what had been considered the MICH-CELLANEOUS state’s longest-running restaurant. Bishop International Airport in Flint Ⅲ Comedian Lewis Black, for- Find business news from After 162 years, White Horse Inn Wilkins and wife Lisa took over the has completed a $16.8 million ex- mer “Saturday Night Live” cast around the state at crainsdetroit hangs up ‘closed’ sign for good White Horse Inn 11 years ago. pansion, doubling capacity to 2 mil- member Jim Breuer and “Commu- .com/crainsmichiganbusiness. Lorenzo and Lucy Carpenter lion passengers a year. A dedication nity” cast member Joel McHale Sign up for Crain's Michigan Obviously, a number of good Hoard bought the two-story build- ceremony last week marked the are among the acts for next year’s Business e-newsletter at crains things can be said about a restau- ing in 1850, according to records of completion of the expansion, which Gilda’s LaughFest. The March 7- detroit.com/emailsignup. rant that has been open for 162 The Flint Journal, and renamed it was done in five stages. Community years. The food must be good. Ser- the Hoard House while operating it leaders told MLive.com that the ex- vice, too. So the Historic White Horse as a restaurant and inn. The loca- pansion could boost trade and CORRECTION Inn Restaurant in Metamora east of tion is said to have been a stop on transportation business and help Ⅲ A story on Page 3 of the Nov. 12 issue should have said that Moose- Flint has that going for it. the Underground Railroad, dance the airport compete with other re- jaw’s temporary pop-up store on Woodward Avenue will be open Thurs- But one problem with being in hall, boarding house, bar and other gions in Michigan. day-Saturday through Dec. 22, rather than Thursday-Sunday. business for 162 years in one place businesses including restaurants. Bishop now has a larger Trans-

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The Detroit Historical Society Mr. Terence E. Adderley Mr. and Mrs. Kevin P. A. Janette Ferrantino Masco Corporation Foundation would like to thank the Mr. Frederick M. Alger III Broderick David and Jennifer Fischer McGregor Fund City of Detroit following individuals and Bob and Maggie Allesee Benson and Edith Ford Fund Sandy and Mimi McMillan Sean and Nancy Cotton organizations who provided Marcia and Eugene General Motors Foundation PVS Chemicals/ Applebaum Family Foundation Detroit Salt Company The Nicholson Family leadership gifts to our Hudson-Webber Foundation John A. and Marlene L. DTE Energy Foundation Kid Rock Foundation The Matilda R. Wilson Fund Past>Forward Campaign: Boll Foundation 20121119-NEWS--0003-NAT-CCI-CD_-- 11/16/2012 6:25 PM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 3

Inside UAW retiree trust short; No room for outdated at the inn stock market blamed, Page 6

from Tom Monaghan in March Future looking sweet for Ann Arbor Holiday Inn to get $4M makeover 1993. expanding Avalon bakery, The state’s Pure Michigan cam- BY SHERRI WELCH paign and the Ann Arbor Area Con- Page 14 CRAIN’S DETROIT BUSINESS Renovations will soon change the vention and Visi- look of the Holiday Inn Near the tors Bureau University of Michigan (left) inside The Holiday Inn Near the University brought in more and out. By July, it should of Michigan in Ann Arbor has citywide con- Company index launched a $4 million renovation resemble the rendering below. ventions and These companies have significant mention in this to update the hotel from the top business last week’s Crain’s Detroit Business: down and inside out by July. year, Sefcovic Planned are updates to the Algal Scientific ...... 15 said: “The city Ann Arbor Farms Hotel Corp...... 3 building’s exterior, ballroom, 225 … did very The Armored Group ...... 21 guest rooms and suites, lobby, bar well.” Avalon International Breads ...... 14 and restaurant Guy Hollerin’s, with COURTESY OF ANN ARBOR FARMS HOTEL CORP. The hotel, Sefcovic Bank of America ...... 11 plans to add a new “e-bar” and me- which has a dia lounge where guests can sip said, with David Lonsway of Rock- guest experience for the next 10 green lodging certificate from the BBK Ltd...... 25 coffee or a drink while getting on- ford serving as president. Sefcovic years.” state attesting to operating proce- Blue Cross Blue Shield of Michigan ...... 1 line or catching the TV news. declined to name the other princi- The project is the first compre- dures such as energy conservation Brinks Hofer Gilson & Lione ...... 16 Franchise operator Ann Arbor pals. hensive renovation under Ann Ar- and hotel-wide recycling, also con- Brooks Wilkins Sharkey & Turco ...... 1 Farms Hotel Corp. recently signed a The renovation was a condition bor Farms Hotel Corp., Sefcovic tinued to see high demand from Cascade Partners ...... 3 third 10-year franchise agreement of getting the franchise license re- said, though the owners have com- visitors to the University of Michigan Compuware ...... 23 with Holiday Inn that begins in newed, but the ownership group is pleted other updates as needed. and the University of Michigan Health Deloitte ...... 13 April, general manager Joseph Se- going beyond required updates The hotel’s 2011 revenue exceed- System, he said. Detroit Mutt ...... 21 fcovic said. and minimum levels of finishes, he ed $7 million, Sefcovic said, noting Sefcovic projects that the hotel, Dykema Gossett ...... 25 The principals of Ann Arbor said. that last year produced the highest on the north side of Ann Arbor at Eastern Michigan University ...... 4 Farms Hotel Corp. are business- “We want to position the hotel results of any year since the own- Economic Alliance for Michigan ...... 24 men from the Chicago area, he in the marketplace to enhance our ership group acquired the hotel See Hotel, Page 23 Evans Distribution Services ...... 11 Fisker Automotive ...... 4 Freudenberg-NOK ...... 25 Garden Fresh Gourmet ...... 14 Grand Valley State University ...... 4 Harvard Drug Group ...... 16 Survey: State health benefit costs up 5.4% Henrob ...... 21 Holiday Inn...... 3 BY RYAN KELLY years from now, 18 percent of large Hospitality Advisors Consulting Group ...... 23 SPECIAL TO CRAIN’S DETROIT BUSINESS HOLDING THE LINE ON HEALTH COSTS employers nationally say they ex- Hostess Brands ...... 21 pect to offer it as their only plan, InPore Technologies ...... 15 Michigan’s health benefit costs Selected results for Michigan from the survey on health benefit costs by New York-based Mercer Inc.: up from 11 percent in 2011. James Group International ...... 12 rose 5.4 percent in 2012 to $10,122 The cost of coverage nationally Ⅲ Asked about their 2013 costs, directed health plan with a health Key Plastics ...... 25 per employee, according to a sur- for a plan with a health savings ac- respondents estimated that if they savings account or health Key Safety Systems ...... 3 vey by New York-based Mercer Inc. count is about 20 percent lower, on made no changes to their current reimbursement account this year. KPMG ...... 25 The finding is part of a nation- average, then the cost of PPO cov- plan, costs would rise by 7.2 Ⅲ 66 percent of employees covered Kymeira Advanced Materials ...... 15 wide survey that drew responses erage — $7,833 per employee com- percent. However, they expect to in respondents’ health plans are Lemon Peel ...... 15 from 2,800 employers, 104 of which hold their cost increase to 4.6 enrolled in PPO/point of service pared to $10,007, the survey said. Level One Bancorp ...... 4 were from Michigan. The national percent by making changes to plan plans, 17 percent in HMOs, 17 For example, last year, Sterling benefit cost increase, at 4.1 per- design and/or plan vendors. percent in consumer-directed plans Heights-based Key Safety Systems Living Essentials ...... 4 cent, is the smallest in 15 years, ac- and none in traditional indemnity Inc. began a program offered by Michigan Association of Health Plans ...... 24 Ⅲ 61 percent planned to shift costs plans. cording to the survey, which found to employees next year by raising Blue Cross Blue Shield of Michigan Michigan Chamber of Commerce ...... 24 an average nationwide per-em- Ⅲ Only 6 percent of respondents Michigan Economic Development ...... 13, 21 deductibles, co-pays/co-insurance or said they were likely or very likely to called GlidePath, a defined contri- ployee cost of $10,558. Michigan Manufacturers Association ...... 24 out-of-pocket maximums, increasing terminate their medical plans in the bution benefit health plan that Employers are continuing to employees’ share of the premium next five years. More than two- helped the company control costs, Michigan Municipal League ...... 24 keep health care cost increases at contribution, or some other way. thirds of the respondents had more said human resources Manager NanoMAG ...... 15 bay by fixing costs or shifting Ⅲ 39 percent offered a consumer- than 500 employees. Eileen Vernor. National Center for Manufacturing Sciences . . . . . 13 them to employees through con- Under the program, employers Oxford Bank ...... 4 sumer-directed health plans and ally consumer-directed plans were panies with 500 or more employees determine how much they plan to Omaha Automation ...... 11 wellness incentives, the survey offered by 22 percent of companies, — 36 percent, up from 23 percent. spend on health benefits and allo- Plunkett Cooney ...... 6 up from 17 percent a year ago. The When asked if they expect to of- said. Seneca Partners ...... 3 The survey showed that nation- trend is more pronounced in com- fer a consumer-directed plan five See Survey, Page 23 SkySpecs ...... 15 UAW Retiree Medical Benefits Trust ...... 6 United Way for Southeastern Michigan ...... 23 University of Michigan ...... 4 Seneca’s amicable split creates more VC options Vitro SA de CV ...... 12 BY TOM HENDERSON Skaff, will continue as managing vest in future deals. And Cox and Department index CRAIN’S DETROIT BUSINESS directors at Seneca. Alfred Robert- Kothari will continue to serve on son will also remain at Seneca as a the investment committee for BRIEFLY ...... 4 The co-founders of Birmingham- managing director. Seneca Health Partners. BUSINESS DIARY ...... 19 based Seneca Partners Inc., an in- One result of the breakup is that “I’m confident we’ll continue to CALENDAR ...... 19 vestment banking and venture entrepreneurs will have one more invest together, possibly as early CLASSIFIED ADS ...... 21 capital firm, have agreed to an am- option when looking for venture as next month,” said Zambelli. icable breakup that will create an capital. Seneca has invested near- “Mike and I had one take on how JOB FRONT ...... 20 additional venture capital fund in ly all of the $14.1 million in its first best to move the company forward, KEITH CRAIN...... 8 Southeast Michigan. fund, Seneca Health Partners, and Raj had another. LETTERS...... 8 Rajesh Kothari and Thomas had been planning on a new fund. Kothari Zambelli “It was as friendly as you can MARY KRAMER ...... 9 Cox, who helped co-found Seneca That fund, targeting $15 million get. Raj stayed in our offices for OPINION ...... 8 in 2002, have formed a new invest- to $35 million, is still on track to Principals at both firms say the three months while he looked for PEOPLE ...... 20 ment banking and VC firm, Cas- begin raising money early next breakup at Seneca, over philosoph- office space and was getting orga- cade Partners LLC, on Northwestern year, according to Zambelli. ical differences over how best to nized,” he said. “I’ll still be invit- RUMBLINGS ...... 26 Highway in Southfield. Kothari said Cascade will also grow the company and manage a ing Raj to my tailgate parties.” WEEK ON THE WEB ...... 26 The two other Seneca co- raise a fund, of between $25 mil- new fund, was friendly enough founders, Tony Zambelli and Mike lion and $50 million. that the two firms likely will co-in- See Seneca, Page 23

Jobs resource Subscribers can dig deep THIS WEEK @ Crain’s and HiredMyWay offer help to Get unlimited access to articles dating employers, job-seekers and job referrers. back to 1994 at crainsdetroit.com. WWW.CRAINSDETROIT.COM Find it at crainsdetroit.com/jobfront. Online subscriptions cost $36 a year. 20121119-NEWS--0004-NAT-CCI-CD_-- 11/16/2012 6:12 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 19, 2012

Let Olympia Entertainment BRIEFLY Fisker Automotive plans of the bond, was also at a record tionwide search for a chef. Once add the Sparkle to your Season high of 11.501 percent. they find one, he said, they will de- tech center, possibly in region The rating doesn’t affect day-to- cide what kind of food Gold Cash Unforgettable Holiday Celebration Ideas to Fit Every Size and Style Fisker Automotive says it plans to day operations, as the bond was is- Gold will serve. For a list of ideas visit: OlympiaEntertainment.com/HolidayParties open a tech center in the Midwest, sued on a 9.5 percent fixed rate. — Nathan Skid possibly in Southeast Michigan, to But the decreased value and high- aid development of the Atlantic, er rate will affect the company if it GVSU, EMU add to boards the hybrid automaker’s second ve- goes back to the lending market, hicle. said Bob Schwartz, partner at Clark Gov. Rick Snyder made appoint- A company statement offered no Hill PLC in Birmingham. ments to the governing boards at details about the center’s size or The company “is unaware of Grand Valley State University and expected number of employees. It any deaths proven to have been Eastern Michigan University. was unclear if Irvine, Calif.-based caused by the consumption of 5- Appointed at Grand Valley were Fisker would build a center or Hour Energy,” Living Essentials Crain’s Detroit Business publisher lease existing space. said in a statement to Bloomberg. Mary Kramer and CEO John Rus- Almost three years ago, Fisker “It is important to note that sub- sell of CMS Energy Corp. decided to close its Pontiac engi- mitting a serious adverse event re- Kramer and Russell were ap- neering office and moved about 30 port to the FDA, according the pointed to fill eight-year terms ex- full-time employees to California. agency itself, is not construed by piring Dec. 31, 2020. The appoint- Creating Championship Level Events A spokesman declined to give FDA as an admission that the di- ments are subject to state Senate Call For Details: 313-471-3333 specifics on the new center. He etary supplement was involved, approval. said many of Fisker’s key suppli- caused or contributed to the ad- Kramer replaces trustee Kate ers are in the upper Midwest, and verse event being reported.” Pew Wolters. Russell replaces a tech center in the region would — Dustin Walsh Noreen Myers. be more convenient for the compa- Appointments at EMU were ny’s factory in Delaware. UM plans $17.5M investment Mary Treder Lang, director of new Fisker has delayed Atlantic pro- business development for Baker duction for at least two years and to expand research space Tilly Virchow Krause, an accounting now plans to start in late 2014 or The University of Michigan plans and advisory firm; and James 2015, Reuters reported. to invest $17.5 million to further Webb, chairman of Aon Risk Ser- The Atlantic is a mid-sized plug- expand research space at its North vices Inc. of Michigan. They also will in hybrid sedan expected to cost Campus Research Complex. fill eight-year terms once approved $50,000 to $60,000. The school said its Board of Re- by the Senate. — Automotive News gents on Thursday approved a pro- Treder Lang replaces Roy ject to renovate and open 68,000- Wilbanks, the current chairman. square feet of biomedical research Webb replaces Thomas Sidlik. Rance Crain to join space on the site. advertising hall of fame Nearly 1,700 people already Oxford Bank sold to Level One work in the laboratories and of- Rance Crain — president of Crain fices at NCRC, and hundreds more The shareholders of Oxford Bank Communications Inc., parent compa- are preparing to move to the site. Corp., the oldest bank in Oakland ny of Crain’s De- — Associated Press County, last week approved its troit Business, sale to Level One Bancorp Inc. of and editor-in- Farmington Hills, a deal an- chief of Adver- Slows co-owner strikes ‘gold’ nounced Sept. 13. tising Age, The golden pawnshop building The sale is subject to the ap- Crain’s Chicago on the corner of Wabash Street and proval of the Federal Reserve Bank Business, Michigan Avenue in Detroit’s of Chicago and the Michigan Office Crain’s New Corktown neighborhood is set to of Financial and Insurance Regulation. York Business be the latest endeavor by Ryan Coo- Approval is expected to be a for- and Television- ley, co-owner of the well-known mality, and the deal is expected to Week.com — Crain Slows Bar BQ. close in the first quarter next year. has been named Once owned by the Gold family After the close, Level One would to the American Advertising Federa- of “Hardcore Pawn” fame, the have about $750 million in assets tion’s Advertising Hall of Fame. building is set to be a restaurant and 15 branches. Oxford has eight Crain joins his father, G.D. with six residential lofts above. Af- branches and $385 million in as- Crain; his mother, Gertrude Crain; ter the $2 million makeover, it will sets. and Sid Bernstein, former editor, be known as Gold Cash Gold. Level One President and CEO editorial director and publisher of Cooley, a partner in Slows with Patrick Fehring told Crain’s in Advertising Age, as hall of fame in- his brother, Phillip, and co-owner of September that all of Oxford’s ductees. Rance Crain is the broth- O’Connor Real Estate, said the own- branches would remain open. er of Keith Crain, chairman of ership group is currently on a na- — Tom Henderson Crain Communications and edi- tor-in-chief of CDB. Bond rating falls in wake of deaths tied to 5-Hour Energy The 13 deaths associated with 5- Hour Energy drinks took a toll last week on at least one aspect of its Farmington Hills-based maker Liv- ing Essentials LLC — the rating of its $450 million in bonds, issued in July. The energy shot was linked to 92 adverse event reports, including 13 deaths and 32 hospitalizations, Shelly Burgess, a U.S. Food and Drug Administration spokeswoman, told Bloomberg News. On top of the possible public backlash, Living Essentials was also contending with a dropping bond rating. The worth of the bond dropped to its lowest rating since being issued, to 90.75 percent of its initial value, according to Bloomberg data. It dropped 1.25 percentage points Thursday morn- ing, following the report. The yield price, or interest rate DBpageAD.qxp 8/9/2012 5:50 PM Page 1 20121119-NEWS--0006-NAT-CCI-CD_-- 11/16/2012 5:38 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS November 19, 2012 Sluggish stocks leave UAW trust short

BY JAY GREENE rising medical costs did not con- CRAIN’S DETROIT BUSINESS tribute materially to the increase This means they in underfunding. A second straight year of poor “ “Our obligations did not in- stock market performance has in- either kick it on crease due to any increase in actu- creased the funding shortfall to $33 al or expected health care infla- billion for the Detroit-based UAW down the road (to tion,” the trust said. “To the Retiree Medical Benefits Trust, contrary, if we were to measure which covers about 809,000 retired find a solution), or the obligations excluding the pre- autoworkers, according to federal viously mentioned discount rate documents. something needs to effect, they would have decreased At the end of 2011, medical cost by about $5.4 billion in total.” obligations to cover the retirees change. The UAW trust — known as a rose 8 percent to $85.3 billion, ” VEBA, or voluntary employee ben- while the assets of the trust Doug Bernstein, Plunkett Cooney PC eficiary association — was created dropped 11 percent to $52.4 billion, in 2007 as part of a collective bar- said financial audits filed with the gaining agreement among the U.S. Department of Labor. leader in banking with Bloomfield UAW and Detroit Three automak- The $33 billion long-term pro- Hills-based Plunkett Cooney PC, said ers General Motors Co., Ford Motor jected shortfall is up 63 percent underfunding of trust accounts is Co. and Chrysler Group LLC. from $20 billion in 2010, the first not unusual because of the ups and The trust manages health care year the trust began delivering downs of the stock market. costs as a single fund that com- Continuity benefits to retirees. “The magnitude is the alarming bines all the automaker contribu- Trusted for 70 years. We’ll be here for generations. “The primary driver of the part; but given the lack of avail- tions, although it has separate ac- change in funded status for the able investments, it is not surpris- counts for GM, Ford and Chrysler plans was the change in the rate by ing,” Bernstein said. “This means to pay the medical benefits for We work with our clients and their advisors to: which the plan obligations were they either kick it on down the each company’s retirees. discounted,” according to a state- road (to find a solution), or some- To deliver benefits to retirees, Reduce estate and income tax Enhance fixed income ment from the trust to Crain’s. thing needs to change.” the trust contracts with four “Lower discount rates account- Bernstein said the trust has sev- health plans in Michigan and Blue yields Solve family and business issues Improve ed for almost $6 billion of the eral options: reduce medical costs, Cross Blue Shield of Michigan. Annu- change,” the statement said. “The alter retiree benefits, modify in- al health care costs average about existing life insurance policies. remaining change of $6.5 billion vestment strategy or wait for the $4.4 billion and have been rising at compared to 2010 was due to the economy and investment returns about a 5 percent yearly clip. performance of assets during to improve. The four health plans in Michi- 2011.” “As a practical matter, they gan are Health Alliance Plan of Michi- The trust statement said stock need to do everything. There is gan, HealthPlus of Michigan, Blue market performance varies during nothing they can do to make im- Care Network and Priority Health. the year and “2011 was challenging provements overnight,” Bernstein Jay Greene: (313) 446-0325, due to market conditions.” said. [email protected]. Twitter: BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM Doug Bernstein, practice group But the trust said unexpected @jaybgreene

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Association of Fundraising Professionals Greater Detroit Chapter Congratulates the 2012 National Philanthropy Day Honorees! 2012 Philanthropy Awardees

Max M. Fisher Award for George W. Romney Award for Lifetime Edmund T. Ahee Jewel Award for Outstanding Philanthropist Achievement in Volunteerism Outstanding Volunteer Fundraiser Lynn and Paul Alandt - Eugene A. Gargaro Jr. - Nominated by: Matthew P. Cullen - Nominated by: Henry Ford Nominated by: College for Detroit Institute of Arts Health System Creative Studies

Neal Shine Award for Media Dr. John S. Lore Award for Outstanding Corporation Award Commitment to Philanthropy Outstanding Fundraising Executive PNC Bank - Nominated by: Mitch Albom - Nominated by: College for Dan Alpert - Nominated by: Detroit Starfi sh Family Services and the Creative Studies Public Television Detroit Public Schools Foundation

Sparky Anderson Award for Youth Outstanding In Philanthropy Foundation Award Teen Grant-Making Initiative at the Center for Fred A. and Barbara M. Erb Family Foundation - Arab American Philanthropy - Nominated by: The Heidelberg Project Nominated by: ACCESS 2012 Distinguished Volunteers

Mary Abouljoud - Henry Ford Health System Geoff rey and Mary Ann (Mixie) Hockman - Beaumont MemberFocus Community Credit Union - Henry Ford Adrianne L. Abrams - Lawrence Technological University Foundation/Beaumont Health System Community College Foundation Cindy Alix - CARE House of Oakland County Denise Hubbard - St. John Providence Health Allan Nachman - Jewish Federation of Mario Apruzzese - Society of St. Vincent de Paul System Foundation Metropolitan Detroit Robert E. Baker - Rose Hill Center Jean Ice - Macomb Community College Foundation Charles Neal - Detroit Inter-Alumni Council of the United James Bernacki - Vista Maria Mark Jacobs - Jewish Family Service Negro College Fund (DIAC/UNCF) Carl Bloom - Grace Centers of Hope Christopher Kelly - Planned Giving Roundtable of Dr. Anthony Nehra - Crittenton Hospital Medical Jane Bolender - Presbyterian Villages of Southeast Michigan Center Foundation Michigan Foundation Cindy Kochendorfer - Grace Centers of Hope Paul Palazzola - McLaren Macomb Healthcare Foundation Rebecca Boylan - Starfi sh Family Services Cynthia Kot - Walsh College Gina and Jeff rey Petherick - Oakland University Barrett O. Brink - Beaumont Foundation/Beaumont Sally Krugel - Jewish Federation of Metropolitan Detroit Nancy Philippart - Girl Scouts of Southeastern Michigan Health System Mary Jo Kurily - Grace Centers of Hope Leroy Richie - Detroit Public Schools Foundation Julius Cicchini - Macomb Community Colleen and Richard Landry - Vista Maria James I. Rosenthal - Beaumont Foundation/Beaumont College Foundation John Latella - The Salvation Army Health System Jonathan Citrin - Starfi sh Family Services Bernice Lindke - Women in Philanthropy at Eastern Gay Ann Schirs - McLaren Macomb Susan Citrin - Starfi sh Family Services Michigan University Healthcare Foundation Ellene (Nina) Tratras Contis, PhD - Women in Mykel Lindsay - E.A.S.Y. Incorporated Cathy and Norman Schmitt - University of Detroit Mercy Philanthropy at Eastern Michigan University Kristen Lingenfelter - Alzheimer’s Association Jane Schwyn - Oakwood Healthcare Foundation Ella and William “Pip” Dooley - Think Detroit PAL Vicki Lock - St. John Providence Health Jeff rey Seregny - University of Detroit Jesuit High School Steve Dunbar - St. Vincent and Sarah Fisher Center System Foundations and Academy Suzanne Elder - Crittenton Hospital Medical Pam Lowry - Lawrence Technological University Howard Sherizen - American Technion Society Center Foundation Dr. Aaron Lundgaard - Presbyterian Villages of Jason Torrez - The Children’s Center of Wayne County Rose Fenster - St. John Providence Health Michigan Foundation Loren Treadwell - First Step System Foundations Laurie Maass - Marian High School Lisa Vallee-Smith - St. John Providence Health Dr. Lynette Findley - Women in Philanthropy at Eastern Barbara J. Mahone - Beaumont Foundation/Beaumont System Foundations Michigan University Health System Wendy Waszkiewicz - Grace Centers of Hope Barb Fioravante - Marian High School Dr. Richard E. Marburger - Lawrence Technological Ed and Rhonda Welburn - College for Creative Studies Gayle Good - LEAVE A LEGACY® Southeast Michigan University Janice Westenberg - The Holley Institute Allen and Barbara Gough - Oakland University Webb Martin - Presbyterian Villages of Rob Whitty - Marian High School Jeff rey Groen, CPA - Walsh College Michigan Foundation Sharon Wood - Grace Centers of Hope Phyllip Hall - Cranbrook Schools Horizons- Jackie Mauro - Marian High School William Zweng - St. John Providence Health Upward Bound System Foundations Thank you to the 2012 AFP National Philanthropy Day Sponsors

Presenting Sponsor Silver Sponsors Lawrence Technological University Crain’s Detroit Business Children’s Hospital of Michigan Foundation Macomb Community College Foundation Clark Hill PLC McClaren Macomb Healthcare Foundation Edmund T. Ahee Jewel Award for Outstanding Gary Dembs – 4th Sector Consulting Presbyterian Villages of Michigan Foundation Volunteer Fundraiser Sponsor Plante & Moran PLLC Rose Hill Foundation Starfi sh Family Services Edmund T. Ahee Jewelers Bronze Sponsors The Salvation Army Think Detroit PAL Platinum Sponsors The Children’s Center College for Creative Studies UHY Advisors of Michigan Beaumont Foundation University of Detroit Jesuit High School and Academy Rock Ventures LLC Community Foundation for Southeast Michigan Cranbrook Schools Horizons – Upward Bound Walsh College Crittenton Hospital Medical Center Wayne State University Gold Sponsors Detroit Free Press Honigman Miller Schwartz and Cohn LLP Detroit Public Television Richard and Jane Manoogian Foundation Franco Public Relations Group Sponsors listed as of 11/7/12. St. John Providence Health System Henry Ford Health System Strategic Staffi ng Solutions 20121119-NEWS--0008-NAT-CCI-CD_-- 11/16/2012 5:36 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS November 19, 2012 OPINION LETTERS For Sonny days and Give Port Authority support Editor: Pension tax hurts Hoekstra loss It is about time our port has the necessary tools to help its con- Editor: not about money Please allow me to add some bal- stituent companies and region Editor: ance to the recent Other Voices ar- more, we say thanks with economic development. The In the Nov. 12 article “Money a key word here is “help,” as it ticle by Rob Fowler, president and key factor in Stabenow’s defeat of s we roll into the long Thanksgiving holiday weekend, should be a collaborative effort CEO of the Small Business Associ- Hoekstra,” Amy Lane quoted Greg the reporters and editors of Crain’s Detroit Business of- (“Port Authority, DEGC at odds ation of Michigan (“State gives big VanWoerkom, Hoekstra campaign fer humble thanks for many blessings, including: over bonding bills,” Nov. 5). boost to small businesses,” Nov. manager, as stating “the funding A We are a part of port Detroit and 5). Ⅲ The gift of Sonny Eliot and his decades of Sonny-isms on difference was a major factor” in the take great pride in our company Mr. Fowler lavishly praised TV and, later, radio. Hoekstra loss. I would suggest mon- being a recognized global leader in Gov. Rick Snyder and the Michi- ey was not the major issue at all. It Ⅲ That the election is over and we are blessed by the ab- our business. However, we also gan Legislature for overhauling was the poor messages that his cam- sence of persistent robo-calls and poorly produced campaign recognize the importance of our the state’s tax policy to favor paign was sending, particularly the commercials — or as we like to think of them, ads nauseam. port being a global leader. The De- small business. However, he failed “Asian” TV ad and the “Debbie troit Wayne County Port Authori- Ⅲ That the auto industry continues to rebound; Chrysler to acknowledge the Michigan pen- Spend It Now” nonsense. Chalk up ty has been proactive in reaching sion tax that went into effect this has announced adding a third shift at its Warren Truck plant the loss to his campaign approving out to the companies that make up year, along with the burden those messages, not the money. Peo- and more investment at the Mack Engine complex in Detroit. port Detroit and offering its ser- placed on retirees living on a fixed ple will only buy what you’re selling News like that — and growth from second-stage companies vices. income. The amount of state in- if they buy what you’re saying. (Page 11) and startups (Page 15) — supports the University of To say that the port is a failure come tax withheld from my pen- Ed Szykula demonstrates how misinformed sion check every month equates to Berkley Michigan economic forecast released last Friday that Michi- DEGC President George Jackson gan will add an estimated 111,000 jobs in 2013-14. an extra car payment … without is. We take great pride in our port the car. Send your letters: Crain’s Detroit Ⅲ That baseball writers got it exactly right by naming De- and just want our city of Detroit to Business will consider for I would have spent every last compete effectively with our publication all signed letters to the troit Tigers slugger Miguel Cabrera the American League’s penny supporting our local econo- neighboring Great Lakes cities. editor that do not defame Most Valuable Player. It was the second consecutive year a my. Raising taxes on seniors as we Our port authority is a critical individuals or organizations. try to ramp up our economy is pen- Tiger got the nod from members of the Baseball Writers Asso- component to making that happen. Letters may be edited for length ny wise and pound foolish. ciation of America; pitcher Justin Verlander won last year. David Usher, and clarity. Email On more personal notes: Chairman, Marine Pollution Control John Vraniak [email protected] Detroit Plymouth Ⅲ Food beat reporter Nathan Skid — who hails from St. Louis, no less — is thankful for Michigan’s craft breweries. Take that, Anheuser-Busch! Ⅲ Retail reporter Sherri Welch is thankful for new pop-up stores downtown, convenient for lunch-hour gift shopping. Ⅲ And, though Twinkies may not be on the national menu TALK ON THE WEB much longer, those with a sweet tooth need have no fear: De- From www.crainsdetroit.com troit’s Avalon International Breads LLC is expanding with a The cars will have to do the same, baking and distribution center, and Ann Arbor’s Zingerman’s Re: Reports of deaths impact Reader responses to stories and or you’ll continue getting dissatisfied Deli is expanding, too. (Maybe there’s an index here for Uni- bond rating of 5-Hour Energy blogs that appeared on Crain’s website. Comments may be customers. But maybe it’s a back- versity of Michigan economists). Ninety-two adverse reports in edited for length and clarity. handed way to make money by get- four years. They sell 9 million bot- ting people into the dealerships for tles a week. There probably are sort communities begin to expire. repairs. The tech stops working Is it a fair name or fowl? more deaths attributable to eating If 10,000 baby boomers are retiring without the update, so people are salami sandwiches than 5-Hour En- every day, then at some point forced to go to the dealership to get Michigan lawmakers have a full plate on their lame-duck ergy drinks. there is going to be a correspond- the upgrades and get the tech Michael Weinstein working again. While you’re there menu, Crain’s new Capitol reporter Chris Gautz reports on ing culling of baby boomers. The other thing not cited in the article — “oh, we noticed you need an Page 1. Re: Brewster-Douglass towers to fall is that many college grads are not alignment, a new air filter, oil fil- But is it really a lame duck? The political balance remains sticking around Michigan. ter, tires ...” $6.5 million just to take buildings in Republican control after Jan. 1, after all. mkogrady Sknygrydg07 down. Pretty sickening when you So where does the phrase “lame duck” come from? think about it. Tied today to outgoing politicians in their waning days of Re: Mulally on auto gadgets john md Re: Financial emergency process office, the original term may in fact have described financially The MyTouch tech is great, but ruined stockbrokers in 18th century London. Brokers in Ex- Re: Blue-collar vacation home it needs a lot of improvement. As in limbo after Prop 1’s defeat change Alley came in two flavors — bears and bulls. But when dreams fade with auto jobs far as going to the dealership every I believe the electorate has spo- brokers lost it all, they became known as “lame ducks” — be- six months to upgrade, most peo- ken: No government intervention, The vacation home market will ple aren’t going to do that. It’s a cause they couldn’t fly with the rest of the flock or, in one ac- let Detroit succeed or fail on its experience another slowdown as major inconvenience, when smart- own. No oversight, no monetary count, because of the way they waddled out of the alley. baby boomers who own vacation phones and computers auto-up- It may be time for a new term. homes or residences in these re- date through Internet connection. See Talk, Page 9 KEITH CRAIN: There appears to be no bright spot for city I still haven’t figured out the De- lion (with a “B”) dollars for bankruptcy. Sadly, ing to all of us who have watched who hired him. He saved the DMC. troit City Council. I haven’t fig- to tide them over until it looks like we now will the city spiral out of control for But for him, Dave Bing and ured out the top lawyer for the somehow things turn watch that process hap- decades. Only it finally has come maybe others who are circling the city, either. I think the mayor around. pen. home to roost. city to declare their interest in be- knows what’s going on and is mys- It doesn’t seem to No one knows how It is impossible for me to under- ing the next mayor, you need a cer- tified as to how to effect any matter how many peo- dire it will be once stand why anyone would actually tain experience and temperament change. ple tell them that they bankruptcy is deter- be interested in running for the that few if any others beside Dug- The city of Detroit is sinking are wrong. The few mined. It will be ugly; mayor of Detroit. Mike Duggan gan and Bing have in their charac- faster than the Titanic. folks in City Hall who all those politicians will was in our offices last week, talk- ter. No one seems to care or believe have a grip on reality be out of work. Or ing about a run. For him, taking on They don’t even know if there it. I can only assume that those and the city’s finances maybe they’ll have an the Detroit Medical Center almost will be a job as mayor if the city poor lost souls in Detroit govern- have to be tearing their unpaid job and nothing a decade ago is not unlike running falls into bankruptcy. Under bank- ment think that they’re going to hair out. to do. It will be a bank- the city of Detroit. He was a great ruptcy, all bets are off. get a Christmas card from Presi- Along with many others, I have ruptcy judge making decisions. hire, and I should know. I was one The ship is sinking. No one dent Obama with a couple of bil- predicted that the city is heading The whole ordeal is so frustrat- of many on the board of trustees knows how long it will stay afloat. 20121119-NEWS--0009-NAT-CCI-CD_-- 11/16/2012 11:16 AM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: The unlikely – and likely – mayor

Will he or won’t he? Second, the other po- ple from his stint as in- tion. Voila! Maintenance costs ly — or for free — to city-owned What a tease. Is there really a tential candidates — in- terim manager of the dropped, and with turnover of 12 homes. doubt that Mike Duggan will run cluding Wayne County heavily unionized percent, the overall headcount As for race, Duggan said one for mayor of Detroit in 2013? Sheriff Benny SMART system: He dropped, too. black pastor told him he was re- Duggan appeared a confident Napoleon — will look to found mechanics play- On the issue of land control, considering the notion of “black candidate in a Crain’s editorial voters like “more of the ing cards in a mainte- Duggan says: “The most asinine empowerment” from meaning board last week, buoyed by sup- same.” nance garage while thing is the Wayne County trea- blacks running the show to mean- port gathered through his exten- Duggan is pushing buses sat idle, waiting surer auctioning off 20,000 parcels ing black people in control of se- sive community and business ten- his ability to find win- to be fixed. He learned to speculators.” lecting the best person for mayor. tacles and through the more than wins with organized la- that mechanics worked He would try to stop the county I suspect other Detroiters will 20 meetings he has held in homes bor and getting control under narrow job clas- auctions and begin aggressive weigh that same thinking. all over the city. of Detroit’s land. sifications — just like code enforcement on negligent Mary Kramer is publisher of He suspects he will have to raise He argues that De- the auto companies property owners. Crain's Detroit Business. Catch her between $5 million and $7 million troit doesn’t need an once had. A transmis- Neighbors of city-owned homes take on business news at 6:10 a.m. to make a successful run. Again, emergency manager — just a may- sion mechanic could sit around if would be encouraged to entice Mondays on the Paul W. Smith show any doubt he can do that? or who can find the common the bus needed, say, brake work. friends and relatives to buy cheap on WJR AM 760 and in her blog at Barring some huge misstep, ground in workers’ interests and So Duggan negotiated job security housing, and people in blighted www.crainsdetroit.com/kramer. Duggan will make history and be- management’s. He uses an exam- in exchange for a single classifica- neighborhoods could move cheap- E-mail her at [email protected]. come the first white mayor of De- troit since 1973. Here’s why: First, despite the “professional protestors” you hear at every pub- lic meeting, Detroit residents are yearning for someone who can actually make the city work. Duggan will run on a fix-the-neigh- borhoods campaign, using his turnaround experience at DMC and the SMART bus system to set him apart from other candidates.

TALK CONTINUED ■ From Page 8 assistance from the government. Business in the burbs

The state should not merely alle- viate Detroit’s problems. Unless the City Council demonstrates that it is willing to sacrifice its as- set control, it should not receive additional assistance. Detroit management allowed the crisis to build over many years. They need to recognize that, like any busi- ness or household, when you have excessive assets and spending, you have to shed those obligations in order to survive. David Ameel

Re: Money key in Hoekstra’s defeat It appears that Hoekstra’s camp is in denial. For a candidate who served in Congress for 17 years to blame lack of name recognition and inability to establish himself as a “credible candidate” due to lack of airtime sounds like sour- grapes excuses. His message was negative. Calling Debbie Stabenow the worst senator ever puts Hoek- stra in the same class as Rush Lim- baugh with his “The Anointed One,” “The Messiah” and “Oba- ma’s regime.” The American pub- lic is sick of politicians and party YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. spokesmen who have nothing You get to know your more to offer than insults. customers, treat them fairly, and build relationships. Don’t you deserve that same kind DSF56 of treatment from your bank? With Citizens Bank, you’ll get the right solutions and Re: Rock about to roll out retail plan products from people with the experience to know what’s right. After all, we’ve been It is so refreshing to read of a around over 140 years, helping businesses just like yours grow. So if you want a bank person or company with the abili- BECAUSE WITH US, IT’S PERSONAL. ty to find reasons why we should do that shares your passion, call us. things as opposed to not doing them. Vision and tenacity are far too uncommon in today’s world. I $)&$,*/(  4"7*/(4 r -0"/4  -*/&4 0' $3&%*5 r .&3$)"/5 4&37*$&4 am thankful for Dan Gilbert and 53&"463: ."/"(&.&/5 r 41&$*"-5: '*/"/$*/( r 8&"-5) ."/"(&.&/5 his group of visionaries. And I will definitely be shopping downtown on my biweekly trips to Detroit, 1-800-946-2264 which I call my fix. There is no place like Detroit, and I for one CITIZENSBANKING.COM/BUSINESS love it. jpd101 DBpageAD_DBpageAD.qxd 10/17/2012 12:22 PM Page 1 BUSINESS CAN’T WAIT ON OLD TECHNOLOGY FROM THE PHONE COMPANY.

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November 19, 2012 CRAIN’S DETROIT BUSINESS Page 11 Extra

growing small businesses

NOTEBOOK Lending up, but Smoothing the ride still needs hand

Now that downtown Detroit and nearby areas are filling up with Staffing sideline helps trucking firm avoid employment potholes residents, and the hip thing for local businesses to do is announce a move BY GARY ANGLEBRANDT into the heart of the city, one might SPECIAL TO CRAIN’S DETROIT BUSINESS expect that money is opening up to people who want to start or grow hen a company needs extra workers, businesses. it turns to … its trucking vendor? A perfect place to find out was the W OK, maybe not usually. But it’s not Inner City Capital Connections as outlandish as it sounds. seminar held by the Boston-based For logistics company Evans Distribution Initiative for a Competitive Inner City at Systems in Melvindale, providing staffing the Madison Building in late October. to customers was just the trick it needed to The group holds the seminars to bring weather the recession —and exit it as a investors and lenders into the same growing company. room as small-businesspeople for a About eight years ago, company Presi- day of financial education. dent John Evans and Leslie Ajlouny, vice Lending from traditional banks has president of business development, had picked up compared to 2009, said grown tired of hiring and training scores of Karl Bell, senior vice president of workers to meet cyclical demand only to see Invest Detroit, who sees more them leave after three or four months. This opportunities for retailers as density went on year after year for decades at the in the downtown area increases. family-run business, formed in 1929 and “It’s starting to open up,” Bell said. now in its But times are still tough, said fourth gener- Christine Coady Narayanan, president We said, ‘We’re ation. and CEO of the Lansing-based nonprofit “ “We were Opportunity Resource Fund, which does really good at paying a lot most of its lending in Detroit. of outside “It’s still a tight credit market in the recruit- money to small-business arena,” she said. temporary Startups and existing small ing and companies — businesses still rely on alternative millions of funders like hers to fill gaps in train- dollars a meeting banks’ lending requirements, year,” Evans she said. ing said. Marshall Kleven, a Bank of America The season- senior vice president who works out of dock al work that the company’s Livonia office, said Evans had, third-party lenders are still necessary workers such as help- for many loans to be approved by ing alcoholic traditional lenders like BOA. But the and supervisors; increasing density in downtown is beverage dis- encouraging, he said. tillers meet let’s offer those peak holiday “Anytime we see an aggregation of demand, was people in an area, the opportunity services.’ increases for lending,” Kleven said. long-term and ” consistent, Phillip Cifuentes, co-owner of Leslie Ajlouny, Evans said. Detroit-based Omaha Automation Inc., Evans Distribution Systems “There was said although the automotive industry has bounced back, he still finds it hard no reason we couldn’t have a core of peo- to find interested lenders, no matter ple who, although temporary in nature, how high his purchase orders grow. they would be with us long term,” he said. With such a predictable cycle, surely “Nobody wants to give any money to anybody in Detroit,” he said. there must be a way around this, they thought. And there was. They started a Hyacinth Vassell, manager of Inner staffing business to keep their workers City Capital Connections, said her GLENN TRIEST busy year-round, shipping them to Evans’ organization does biannual surveys of President John Evans turned a perennial problem for Evans Distribution Systems into a revenue the companies it works with, and customers for work during slower periods generator that helped pull the logistics company through the recession. lending is improving among those of the year. businesses. But small-business “We have people trained in a lot of the services to Technicolor,’ ” Ajlouny said. into staffing — from which it can draw la- owners have had to be more diligent things our customers do,” Evans said of The staffing division, Evans Resource So- bor as needed, be it for Evans or its cus- about getting their hands on loans, by the thinking at the time. “We might as lutions, now provides workers for light as- tomers. doing things such as having more well go out and see if any of them are in- sembly, packaging, forklift operating, This allows Evans to pitch the extra ser- meetings with their bankers and terested in us staffing some of their posi- warehouse supervision, quality inspec- vice to customers, selling the flexibility attending seminars like the one at the tions.” tions, shipping and receiving, and related that an outsourced workforce provides. Madison. One person even brought a One of the first staffing customers was types of work. The division has about 12 This selling point came in handy during banker to the seminar, she said. Technicolor, which needed help setting up a core customers. the recession when few companies wanted Demonstrating strategic, financial short-term distribution center to meet Evans’ staffing business isn’t a temp to hire permanent staff, Evans said. and marketing specifics is more surging demand from the video game in- agency, where the business tries to match It also fit in with the other main parts of important than ever, she said. dustry. Evans provided the supervision people looking for work with companies Evans, a third-party logistics operator that “A bank’s not going to sign up on and labor for offloading containers from looking for labor. Evans hires workers di- offers trucking and warehousing. Many passion,” Vassell said. China. rectly, providing benefits as it would to businesses, still stinging from seeing their — Gary Anglebrandt, “It was the first time we said, ‘We’re re- any employee. This gives Evans a pool of buildings empty and trucks sitting quietly special to Crain’s Detroit Business ally good at recruiting and training dock trained workers — it now employs 600 peo- workers and supervisors; let’s offer those ple, up from 200 when it started this foray See Staffing, Page 12 20121119-NEWS--0012-NAT-CCI-CD_-- 11/16/2012 11:12 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS November 19, 2012 Second Stage Extra Staffing: Sideline helps trucking firm “An SBA ■ From Page 11 in parking lots, were not ready to portation and warehousing opera- sign leases or buy trucks after tions with packaging and sorting loan meant 2009, Ajlouny said. We have to be services. It also performs quality “As things started to come “ inspections for customers who back, they wanted to take less more have long supply lines coming big business risk and look for more flexi- from Brazil, Costa Rica and China. bility and scalability, ... and versatile. Our In some cases, a company wants staffing fit in really well with competitors some basic assembly done before for me.” that,” she said. the products move. Evans said Some customers have cho- there are even logistics companies sen to keep this practice as are in Memphis, Tenn., that repair the economy has bounced Dell computers. back. Some customers even exponentially “People have taken this a long use Evans’ workers year- larger than way,” he said. “We’re the last line round to staff the entire operations of defense. We make sure the prod- “It was First State Bank who recommended at particular locations. we are. uct gets to the customer the way it One of those customers is Vitro ” was intended to.” an SBA loan to refinancemy loans, revive my SA de CV, a Monterrey, Mexico- Lorron James, based glass manufacturer. The James Group International cash flow and refocus my efforts.” company has a distribution center Take it slow in Westland that serves the auto Growth expert Gary Kunkle – Al, First State Bank Business Customer industry. Evans provides the cen- Ajlouny said. Evans had 2010 rev- said the best way to jump into a ter’s 50 workers, who do light as- enue of $29 million, $5 million of new line of business is not to do it sembly, inserting moldings and which the company chalks up to all at once, but incrementally. As your local SBA Preferred Lender, our processes are pins into glass. its staffing business. Last year, it Kunkle is a research fellow for the streamlined so you can get right to business with the Luis Corona, manager of the posted $43 million in revenue, with Institute for Exceptional Growth Com- right mix of products and services. center, said it was easier to use $10 million of that coming from panies, part of the Cassopolis- Evans, which Vitro already had a ERS, and this year the company based Edward Lowe Foundation, and s3"! 4ERMAND2EAL%STATE,OANS long relationship with, to staff the expects to bring in $48.5 million, owns Huntersville, N.C.-based s,INESOF#REDIT center when it opened in 2008. with $14 million of that coming consultancy Outlier LLC. “Being an outside company from staffing. Kunkle has made a career of s"USINESS#REDIT#ARDS from Mexico, we wanted some- When revenue sank 40 percent studying fast-growth companies, s#ASH-ANAGEMENT3ERVICES body with experience handling all during the bottom of the recession interviewing hundreds of leaders the HR side,” Corona said. “It was to about $21 million, Evans’ move of such businesses to understand Earning your trust today…and every day. better to have somebody local to do into staffing turned out to be fortu- what makes the companies tick that.” itous. and how they contribute to the When there is less need for the “We actually grew a lot on the economy. workers, Evans can find work for staffing side when nothing else Kunkle said Evans rolled things them elsewhere, saving Vitro the was happening,” Evans said. out the right way. headache of layoffs, he said. “We didn’t just say one day, 866-372-1275 | www.thefsb.com/sba The staffing division helped ‘We’re going to go out and be a Evans beat its past revenue peak of High expectations temp company,’ ” Evans said. “We $35 million, reached in 2007, The move also fit in with a trend took it one step at a time.” in the logistics world. Eventually, the company saw it Companies are expected to pro- could present this service as part vide all sorts of additional services of its lineup of offerings. beyond moving boxes from point A Before launching the division, to point B, Evans said. (Think of Evans sought advice from business the UPS commercials showing the connections who’d worked in company as the go-to place for all staffing in the past. Then he moved business needs.) some management personnel over Lorron James, vice president of to the new operation and hired some Detroit-based logistics company new managers. A key hire was a re- James Group International, said there cruiter who could speak Spanish. is pressure on smaller logistics The incremental approach has companies like Evans and James kept things smooth, Evans said. Group to do more to stay competi- The company is still getting used to tive with large nationals. having workers who don’t go to “We have to be more versatile,” work at an Evans building every James said. “Our competitors are day but is building an intranet so exponentially larger than we are.” they can see where things are going James Group is working with an with the organization and check in IT company to start making sup- on their benefits and pay records. ply-chain software for its automo- Kunkle said another problem tive customers. And the company companies often face when enter- doesn’t even directly do trucking ing these situations is in how to anymore; it contracts that work price new combinations of ser- out as it focuses on other compo- vices, and further, how to track nents of logistics, such as handling which combinations are profitable. exports or breaking down and fill- It’s hard to allocate costs to specific ing up parts containers for its auto iterations of product and service customers. offerings, but very large, complex James said a logistics company organizations are good at identify- doing staffing was a new one for ing which combinations to keep him, but for smaller companies, and which ones to jettison. it’s a matter of doing whatever it Businesses seeking growth takes. through wholly new offerings must Shipping companies happen to be able to do the same. “, he said. be situated at a key spot: the point “The degree to which they act on at which product arrives. It’s easi- that determines whether they er to have that company deal with grow,” Kunkle said. certain tasks rather than hire Putting in statistical analysis more workers or do more shipping systems is the way to go. They can to other third parties. track all operations, cost alloca- “No matter what, we possess the tion and the results of marketing product at some point. For anybody efforts, he said. else to do anything with it, it has to “Big data, even in a small com- go somewhere else,” Evans said. pany, can be very valuable,” Kun- Evans supplements its trans- kle said. 20121119-NEWS--0013-NAT-CCI-CD_-- 11/16/2012 10:14 AM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Extra Innovation center aims to boost small, midsize manufacturing

BY DUSTIN WALSH NCMS will leverage its software said in a press release. round, a smaller manufacturer and the Michigan Manufacturing CRAIN’S DETROIT BUSINESS vendor members, including “With the help of this center, may deem a full suite beyond its Technology Center, as well as the Siemens AG, Microsoft Corp. and GE, small and midsize manufacturers budget and may need it only on an NCMS. The group was awarded Ann Arbor’s National Center for to provide simulation software to will be able to deliver solutions interim basis anyway, she said. $2.19 million over three years to Manufacturing Sciences and the small and midsize manufacturers faster and expand their supplier The center will provide access to connect local manufacturers able Michigan Economic Development in the region in an effort to pro- reach to large companies. It is in- the software and technical sup- to support low-volume, custom Corp. plan to create an innovation duce more globally competitive credible to imagine the hundreds port. projects to new global contracts. center to accelerate manufactur- companies, said Alissa Roath, of small companies in Michigan The innovation center will open The pilot program is open to ing in the state. membership services manager for that will have the potential to grow to companies in the first quarter of new-product contract manufactur- The center, which will be NCMS. as a result of this premier facility.” 2013. ers — defined as companies that housed in General Electric Co.’s Van “When you talk about creating The need stems from smaller Among the first group to use the manage, execute and improve the Buren Township campus, will pro- jobs and growing the economy in manufacturers being unable to ac- center will be manufacturers par- manufacturing function for cus- vide digital modeling and simula- Michigan, these are the kind of cess a modeling software suite in ticipating in a federally funded tomers that are developing new tion tools for Southeast Michigan’s long-range opportunities that will the traditional sense, Roath said. program led by the Workforce Intel- products under the customer’s small to midsize manufacturers. really make a difference,” NCMS Whereas large manufacturers can ligence Network for Southeast Michi- brand. To participate, email The center, announced last President and CEO Rick Jarman buy the software for use year gan, the Detroit Regional Chamber [email protected]. week, is supported by a $1 million grant from the MEDC and another $1 million from NCMS members. Holiday cheer: Survey finds shoppers in better spirits

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

Good news for local retailers: Michigan consumers’ outlook on the economy is improving just in time for the holiday season, ac- cording to an annual survey. Forty-nine percent of 500 Michi- gan people who responded in Sep- tember to the national survey com- missioned by Deloitte LLP said they believe the economy is still in re- cession or heading back into one. That’s down from 70 percent who believed that to be the case last year. You Make Additionally, 64 percent of It Look Michigan respondents said their Eas current household financial posi- y tion is the same or better than last year, and nearly half expect the economy to improve in 2013, the highest percentage with a positive outlook since 2010. ar Deloitte said its retail and distri- Those ound you marvel at the manufacturing bution practice forecasts total holi- business you’ve built. day spending in the U.S. will in- crease 3.5 percent to 4 percent this But from the cockpit, the view’s vastly different. A year, to between $920 billion to $925 billion. dashboard lit with production inefficiencies. Extreme The region and country have pressure to balance costs and cash flow. Risk as you seen some good news related to the rely on your pilots to fly in high-speed formation toward housing market and the revival of the auto industry that may be help- growth objectives. Ultimately, it is you who must steer the ing consumers feel a little better business to a perfect landing. about the economy and their fi- nancial positions, according to Like trusted copilots, Doeren Mayhew helps manufacturers Mark Davidoff, Michigan manag- ing partner of Deloitte Financial Ad- like you navigate through price fluctuations, raw material visory Services LLP. shortages, labor issues, profit-draining waste and However, he noted in a press re- competitive challenges. So, when you’re ready to take off lease, consumers “continue to be cautious as the recession remains again, we can help you achieve your mission with precision. fresh in their minds. High gas and food prices and debate about the fiscal cliff still weigh on them.” Michigan shoppers expect their holiday budgets to remain flat at Insight. Oversight. Foresight.SM an average of $950 this year, with an average of $383 spent on gifts, 248.244.3000 | doeren.com on par with more than 5,000 con- sumers nationally who responded to the survey. 20121119-NEWS--0014-NAT-CCI-CD_-- 11/16/2012 12:27 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS November 19, 2012 Immigration Experience In Your Corner.® Sweet-toothed customers feed expansion plans for Avalon Breads

BY NATHAN SKID ve-through. neighborhoods and support small- CRAIN’S DETROIT BUSINESS Perrault said she and Victor are business growth in neighborhoods,” entertaining the idea of opening sev- she said. It was only a matter of time be- eral local retail outlets modeled af- Nathan Skid: (313) 446-1654, fore Detroit-based Avalon Internation- ter the current Avalon’s store. [email protected]. Twitter: al Breads LLC outgrew its modest “The plan for us is to help build @nateskid 2,000-square-foot home at 422 W. Willis St. in Midtown. Avalon is spending about $2.2 mil- lion to open Avalon City Ovens, a 50,000- square-foot baking and distri- bution center three miles away, at Why Should 6555 E. Forest Ave., to help the com- pany meet demand for its growing They Trust YOU? list of wholesale clients. Ann Perrault and Jackie Victor, co-owners of Avalon Breads, have seen steady growth over the past few years buoyed by demand for its line of sweets at retail locations and by wholesale customers. BBB Accredited Businesses For example, Perrault said that are committed to honest, ethical when Avalon introduced a line of sea salt chocolate chip cookies two years ago, it was making about eight and fair business practices. dozen batches a day. Now, she said, Nina Thekdi the company is making 1,200 batch- [email protected] es at least five times a week. Perrault said sweets sales in- Show Your Customers What creased from $400,000 a year and a half ago to $975,000 in 2012, due pri- YOU Stand For marily to adding grocery shelf space in stores including Plum Markets and Holiday Market in Royal Oak and I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing Whole Foods Markets in Michigan (except for Grand Rapids). In July, Avalon opened a retail location, Eat Well. Do Good. Café, in Henry Ford Hos- pital in Detroit. Perrault said sales at the hospital

café have reached $725,000, much ® higher than she expected. The company plans to open the bake house by Jan. 1; it will be staffed by current employees and new hires. Total Avalon employee ® count will grow to about 100. Start With Trust Scaling up requires a thoughtful approach, said Dave Zilko, presi- dent of Ferndale-based Garden Fresh Gourmet Inc.. It’s important for an ex- Join the Better Business Bureau Serving Eastern Michigan and the Upper Peninsula panding company to maintain qual- ity as it increases capacity, he said. For more information: “When we tried to scale up, we brought in process engineers and bbb.org or 248-223-9400 tried to make our salsa in 400- and 600-gallon tanks, but the consistency was wrong and the onions were sinking,” Zilko said. Garden Fresh went back to small batches, five gallons at a time. It just makes more of them. In 2009, Avalon was generating about $1.8 million in revenue. By 2011, revenue increased to $2.2 mil- lion. Perrault said the goal for 2013 is to reach $3.2 million. “I want to try to build the busi- ness by $1 million over the next year,” Perrault said. “We have a lot of contracts that are pending until the bake house is fully open.” Need growth When businesses face the organic demands Perrault said the bake house will of growth, purchasing goods, or even to have new machinery capable of capital? make payroll, Crestmark’s service and making items like cheesecakes and innovative working capital solutions can be torts that Avalon is unable to do in the answer. its current location. Providing accounts receivable financing and Avalon City Ovens is just one asset-based lending to small- and mid-sized phase of Avalon’s growth plan. businesses nationwide for over 15 years. Avalon Breads is moving its cur- rent location at 441 Canfield St. in Willy’s Overland Lofts into a bigger Contact us today! space less than a quarter-mile away. Scott Frederick The 3,000-square-foot location will Matt Dekutoski have 45 seats and drive-though capa- www.crestmark.com 888.999.8050 Anntreal Hemmingway-Smith bility, although Perrault said it will take at least one year to open the dri- 20121119-NEWS--0015-NAT-CCI-CD_-- 11/16/2012 12:27 PM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 15 Politics, investing collide in talk by ex-RNC chairman

BY TOM HENDERSON nal affairs for the New York-based “We expect our leaders to appeal “Both parties know they need to Quicken Loans Inc., the Michigan Eco- CRAIN’S DETROIT BUSINESS private equity firm of Kohler Kravis to a broader spectrum of voters get something done. And if they nomic Development Corp. and the Roberts & Co. LP (NYSE: KKR), than this candidate did,” said don’t, markets have a way of Michigan Venture Capital Association. Discussion of high-level invest- which has $66.3 billion under man- Mehlman, who said when he ran changing minds and hearts,” he It also included a chart-based ment mixed with politics Thursday agement. He said he couldn’t un- Bush’s re-election campaign, the said, referring to sharp declines in presentation by Aaron Cunning- when a former White House advis- derstand, in particular, the poor first event he put on was at Howard markets that will greet legislators ham, director of research and ana- er turned private equity executive job Romney did of countering criti- University, a historically black uni- early next year if they can’t come lytics for Pensions & Investments, weighed in on the election and the cism of private equity in general versity in Washington, D.C. to an agreement. on investment trends in recent impact on investors. and of his private equity firm, Bain Mehlman said President Barack Mehlman made his comments in years. Ken Mehlman, chairman of the Capital, in particular. Obama deserved much of the credit a one-on-one discussion with Sam Public pension funds and en- Republican National Committee from “He never explained what he did for his victory; that he had a much Valenti III, executive chairman of dowments have all moved much 2005-07 and manager of President at Bain. It’s a mystery why he didn’t better organization, which did a TriMas Corp. and president of Valenti more into the alternative invest- George W. Bush’s re-election cam- explain his career at Bain and de- better job of getting out the vote; Capital Management LLC, a Bloom- ment class — which includes real paign in 2004, said Mitt Romney ran fend what they did,” said Mehlman, that he stayed on message better field Hills-based wealth-manage- estate, venture capital and private a perplexing campaign that made who said that a series of Romney and made far fewer gaffes; and that ment firm. equity — and away from fixed-in- him seem less presidential and gaffes, such as talking about his despite ongoing concerns about the Valenti was one of the early in- come investments as interest rates more like a notorious cartoon char- wife’s Cadillacs, the notorious economy, he deserved the credit the vestors in KKR after it was found- have remained at record lows. acter. video about the 47 percent of the electorate gave him for an improv- ed in 1976. And it included a keynote ad- “People thought he was Mr. American population that he could- ing economic climate. Their discussion was part of an dress by state Treasurer Andy Dil- Burns from ‘The Simpsons,’ ” said n’t worry about and his offering to “No president has ever lost an invitation-only afternoon event at lon, who told the audience of the Mehlman, referring to the cur- bet Texas Gov. Rick Perry $10,000 election who has had an increase the Westin Book Cadillac in Detroit dramatic increase in venture capi- mudgeonly millionaire owner of during a debate, just added to the in jobs,” he said. for chief investment officers, man- tal and private equity activity in the fictional Springfield nuclear public perception of a candidate out As for the looming so-called fiscal agers of pension funds and corpo- the state since he was a private eq- power plant. of touch with their concerns. cliff that hits Jan. 2 if Congress rate investments, and CFOs. uity investor in the 1990s, much of Mehlman was keynote speaker But the chief reason Romney can’t agree on revenue increases In addition to the between it supported by a variety of state for an event for institutional in- lost was not reacting to demo- and spending cuts before then, Valenti and Mehlman, the Crain’s funds created in recent years. vestors co-hosted by Crain’s De- graphic shifts in the electorate, Mehlman said, “If I had to bet mon- and P&I program included a panel “When I was a lender and a pri- troit Business and Pensions & In- said Mehlman. ey, I’d say there’s a 55 percent discussion by Jeb Burns, CIO of vate equity guy, it was hard to jus- vestments, a national financial “Romney won the largest percent- chance they take care of it,” he said. Michigan’s Municipal Employees’ tify buying a Michigan company,” publication. Both publications are age of the white vote since 1988. He He said the difference between Retirement System; Reggie Saun- he said. “Now, we’ve got a good owned by Crain Communications Inc. won the seniors, and he won the in- Republicans and Democrats on the ders, director of investments for story to tell here. We’ve become a The conference was held in con- dependents. Five years ago, that issue of entitlements such as the Battle Creek-based W. K. Kel- state that’s attractive to investors junction with the third annual Ac- would have been called a landslide,” Medicare and Social Security “is logg Foundation; and Shirley Hay, and entrepreneurs. … We’re a celerate Michigan Innovation event. said Mehlman, who said the loss negligible,” and that Republicans director of investments for Livo- great example of state government (See related story below.) was a result of a “huge demographic are ready to agree to some tax in- nia-based Trinity Health. partnering with the private sec- Mehlman oversees global exter- shift” that Romney ignored. creases. The session was sponsored by tor.” Maker of algae-based animal feed wins top spot at Accelerate Michigan

BY TOM HENDERSON weren’t,” he joked from his lab in founder of Biotronic, an early med- ics Inc. of Albany, N.Y., medical de- There was also a student divi- CRAIN’S DETROIT BUSINESS the Michigan Life Science and Innova- ical device company in Ann Arbor. vices; and Protean Payment Inc. of sion, which drew 312 applicants tion Center in Plymouth Township. Companies that won $25,000 by Ann Arbor, products and services. from 332 colleges around the state. Algal Scientific Corp., a biotech- Horst said he would use the having the best business plan in Companies do not have to be one The first-place winner of $25,000 nology company that developed a money to fund three trials in com- industry sectors were: InfiniChem of the 10 finalists to win sector was Kymeira Advanced Materials of the process for creating a byproduct ing months, of swine, chickens and Polymers LLC of Sterling Heights, awards. University of Michigan for its creation from algae to be used as a food sup- fish, to validate early results that advanced materials; Eco-Fueling Retia Medical LLC of East Lansing of a high-performance ceramic; with plement for pigs and chickens on show the benefit of using the algae LLC of Saline, advanced trans- won the People’s Choice award of Lemon Peel of Hope College winning traditional farms and for fish and byproduct, called beta-1, 3-glucan, portation; Ideomed Inc. of Grand $10,000, given each year to one of $15,000 for a noise-cancellation de- shrimp in aquaculture, won the in animal feed. Rapids, information technology; the finalists who did not win an vice that allows hospital patients to first-place prize of $500,000 Thurs- He said he also will be able to Ornicept Inc. of Ann Arbor, alterna- award, based on a vote of attendees. get better sleep; and SkySpecs LLC of day night in the third annual Accel- hire a technician to add to his staff tive energy; BioSavita Inc. of Ply- Companies from other states UM won $10,000 for designing un- erate Michigan Innovation event at of six full-time employees and sev- mouth Township, life sciences; Col- and countries were eligible provid- manned aerial vehicles that use ar- Orchestra Hall. eral part-timers. iant Corp. of Warren, next ed they were willing to move to tificial intelligence to gather data in The second-place award of Algal was founded in 2009 and generation manufacturing; Breon- Michigan upon winning an award. hazardous locations. $100,000 went to NanoMAG LLC of was one of the first tenants of the Ann Arbor, with InPore Technolo- high-tech incubator when it opened gies Inc. of East Lansing getting the that year. Algal won the first-place third-place prize of $50,000. prize of $65,000 in a contest spon- NanoMAG makes lightweight or- sored by DTE Energy Co. in 2009 and IT’S NOT WHOSE NAME YOU DROP, thopedic devices and implant mate- since has raised nearly $1 million rials made of magnesium. The ad- in funding, including $180,000 from vantage of its magnesium screws, the Michigan Pre-Seed Fund adminis- IT’S WHOSE NAME YOU ADD. used to secure bones in place during tered by Ann Arbor Spark on behalf of surgery, is that they are biodegrad- the Michigan Economic Development able and dissolve as the bone heals, Corp., and a follow-on investment of eliminating problems traditional $250,000 by the MEDC. Matthew Swegles is now affiliated with Raymond James. metal screws can cause over time. The Accelerate Innovation event InPore Technologies, profiled in was created by the New Economy Ini- Crain’s in October, makes polymer tiative for Southeast Michigan, with powders that improve the filtering the idea to provide enough money capabilities of membranes used to for the winner of a business-plan purify water in large-scale manu- competition to dramatically change facturing processes. the prospects for the winner. The Spirit of Michigan Award, This year’s event drew 300 appli- given to an entrepreneur who has cants from around the U.S. and MATTHEW SWEGLES had a long and significant effect on Canada, with the field winnowed Senior Vice President, Investments the state, was awarded to Dan to 53 semifinalists who made oral Gilbert and accepted on his behalf pitches Wednesday and Thursday 15 Kercheval Avenue // Grosse Pointe Farms, MI 48236 by Josh Linker, his partner at the at the Westin Book Cadillac. T 313.885.9470 // T 800.598.0027 // D 313.343.6591 // F 313.882.0210 venture capital firm of Detroit Ven- The 10 finalists then made follow- [email protected] // matthewswegleswealthmanagement.com ture Partners. up five-minute presentations at Or- Winning company Algal’s chestra Hall before a panel of founder and chief science officer, judges, which included state Trea- Geoff Horst, said Friday, “I went surer Andy Dillon, a former private home and tried to sleep, but I was equity executive; Marc Gardner, pretty wound up. president and CEO of Troy-based “Everyone in the lab was pretty North American Bancard; Lizabeth excited, though I guess I’d have to Ardisana, CEO of Dearborn-based ©2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC 12-BR35T-0026 CR 10/12 get new employees if they ASG Renaissance; and H.B. Calder, 20121119-NEWS--0016-NAT-CCI-CD_-- 11/16/2012 11:17 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS November 19, 2012 Harvard Drug gets contract modification worth up to $53M

BY CHAD HALCOM years and a supplier to the Defense ther on the defense contract, but The Rugby OTC product line in- CRAIN’S DETROIT BUSINESS Logistics Agency for more than he did discuss the kinds of deci- cludes beauty aids and various four years. The new award is a It’s too early to tell sions it would be making on its cough and cold, allergy, pain re- Generics and over-the-counter modification to a pre-existing con- “ business lines based on a new ac- lief, nausea relief, nicotine gum, drug maker Harvard Drug Group LLC tract in its major pharmaceuticals what will happen in qusition. vitamin and nutritional supple- last week landed a one-year con- division, said company CEO Terry Harvard Drug closed in late Oc- ment products sold through tract modification worth up to Haas. the (product) tober on the $117 million acquisi- health-care outlets across the U.S. $53.5 million from the U.S. Defense The DLA announcement said tion of Rugby Laboratories Inc.’s “It’s too early to tell what will Logistics Agency. the new award would be “for vari- integration plan. over-the-counter product portfolio happen in the (product) integra- Combined with a freshly closed ous pharmaceutical products,” de- ” from Parsippany, N.J.-based Wat- tion plan,” Haas said. “There is $117 million product line acquisi- liverable through next November, Terry Haas, Harvard Drug Group son Pharmaceuticals Inc. (NYSE: some overlap in the product lines, tion, the Livonia-based company for the U.S. Army, Navy, Air WPI), after obtaining clearance where we’ll have to make some de- also faces the new task of how it Force, Marine Corps and some tamin supplements. The contract from the Federal Trade Commission. cisions about whether to proceed will or won’t integrate product civilian government agencies. includes more than 100 types of Haas said the defense contract was with one brand or two. But there’s lines, brand names and other de- Examples of pharmaceuticals medications like acetaminophen, a pre-existing one within the ma- a tremendous amount of goodwill tails to serve its customers. that will be supplied to the mili- allergy treatment Loratadin, and jor pharmaceuticals division and built up in many different labels, The company has been a govern- tary under the contract include iron supplements. is unrelated to the Rugby pur- and we’ll need to make sure of the reasons for each of those integra- ment contractor for more than 20 common pain releif, allergy and vi- Haas declined to elaborate fur- chase. tion decisions. “But major (pharmaceuticals) is an extensive line of generic phar- maceuticals, and Rugby tucks into it nicely.” The purchase agreement calls for Harvard Drug to acquire the Rugby trademark and all rights to market, sell and distribute over- the-counter and nicotine gum products. Watson retains all rights to manufacture, sell and distribute all store-branded nicotine gum products, as well as other non-Rug- by OTC products in its portfolio. “I am confident that major (pharmaceuticals), with its leader- ship position as a marketer of OTC products, will be more strategical- ly positioned to maximize the val- ue of the long-known and respect- ed Rugby name,” Watson President and CEO Paul Bisaro said in a statement. Chad Halcom: (313) 446-6796, [email protected]. Twitter: @chadhalcom Employee satisfaction. Chicago IP firm Available in handy wallet size. to open branch in Detroit patent

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November 19, 2012 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR BUSINESS DIARY

CONTRACTS nology with a new family of cam COMING EVENTS phasers for I4 engines. Website: Visteon Corp., Van Buren Township, Internet Marketing: Qualifying Leads www.borgwarner.com. a global supplier, in collaboration to Closing Sales, 8-11 a.m. Nov. 27. with Cohda Wireless Pty Ltd., Saline, RIIS LLC, Southfield, an IT services Marketing & Sales Executives of De- is providing vehicle-to-vehicle com- firm, introduced HoseDex2Jar, a mo- troit. With Dunrie Greiling, COO of munications equipment for the U.S. bile security tool that can prevent Pure Visibility. Maximize your web- Department of Transportation Safety Android decompilation by hackers site’s ability to turn visitors into leads Pilot program. on mobile devices. Website: www.de and monitor the path from marketing Doctors’ Hospital of Michigan, Ponti- compilingandroid.com. outreach to a sale. The Management ac, has awarded Bashore Green Law Resort Advantage LLC, Royal Oak, a Education Center, Troy. $70 MSED Group PC, Shelby Township, an ex- FinCEN and IRS compliance soft- members, $85 nonmembers. Cost in- clusive contract to pursue, on its be- ware company for the gaming indus- cludes Greiling’s book, Internet Mar- half, unrecovered auto insurance re- try, announced Slots Jackpot Accel- keting Start to Finish. Contact: (248) imbursements for patient services erator, a mobile jackpot payout 643-6590; email: meetings@ provided under personal injury pro- processing software. Website: meeting-coordinators.com; website: tection benefits. www.resort-advantage.com. www.msedetroit.org. Industrial Visions Co., Troy, a busi- CHEP Automotive Solutions, Troy, a ness development advisory firm, has container pooling services company, been selected by Hydrite Chemical announced the introduction of the Exploring the Differences in Gender Co., Brookfield, Wis., to train man- IcoQube, a container designed to im- Communications. 6-8 p.m. Nov. 27. As- agement in high-level strategic mar- prove shipping capacity while with- sociation for Women in Communica- keting planning. standing the extreme conditions in- tions Detroit Chapter. With Laurie side sea containers. Website: Horvath, director, Baker Tilly Vir- EXPANSIONS www.chep.com. chow Krause LLC. Ways women and SVS Vision Inc., Mt. Clemens, opened men can communicate better in the a new location, at 5761 12 Mile Road, NEW SERVICES workplace. Baker Tilly Virchow Warren. Telephone: (586) 619-3600. Wow Writing Workshop LLC, Hunt- Krause LLC, Southfield. $25 WIC Website: www.svsvision.com. ington Woods, launched Wow Online members, $35 nonmembers. Contact: Trekt Outdoors, a subsidiary of Aleva — College Essay, a self-guided online Sally Ann Brown, (248) 514-8687; Stores, Rochester Hills, opened an tutorial for college application essay email: [email protected]; website: outdoor apparel and recreation store writing. Website: www.wowwriting www.womcomdetroit.org. at 425 S. Main St., Rochester. Tele- workshop.com. phone: (248) 845-2907. Website: www.trekt.com. Blue Ox Entertainment LLC, Bloom- Small Business: Unlocked — Lessons field Hills, an application develop- Over Lunch. 11 a.m.-1 p.m. Nov. 28. De- MOVES ment firm, announced the launch of troit Regional Chamber. Network an upgraded SideBets app, a peer-to- with CEOs and business leaders dis- Amanda’s Airbrush Tanning moved peer sports betting application with a cussing focused business topics. With from Troy to 822 N. Main St., social focus. Website: www.side Matt Stephens, sales development Rochester. Telephone: (248) 941-3541. betme.com. Website: www.amandasairbrushtan trainer, Gerry Weinberg & Associates. Molecular Imaging Inc., Ann Arbor, ning.com. Gerry Weinberg & Associates, South- has expanded its preclinical nuclear field. $20 chamber members, $50 fu- medicine program with the addition ture members. Contact: Emily Doerr, NEW PRODUCTS of Single Photon Emission Computed (313) 596-0377; email: edoerr@ BorgWarner Inc., Auburn Hills, will Tomography imaging. Website: detroitchamber.com; website: expand its variable cam timing tech- www.molecularimaging.com. www.detroitchamber.com.

Are Your Employees Fully Engaged? The Choice Is Yours. 7:30-9:30 a.m. Nov. 29. Central Michigan University. Learn strategies to fully engage your Presented by employees. With Sherene McHenry, consultant, Fully Engaged LLC. CMU Global Campus Troy Center. $40. Con- tact: Jennifer Boyce, (800) 950-1144; email: [email protected]; website: global.cmich.edu/infocus. YOU’RE INVITED Selling Smart Workshop – Overcoming With the business environment in Prospecting Paralysis. 9-11 a.m. Dec. 5. “ Ann Arbor Spark. One hour of practice constant change, companies are selling followed by hour presentation on a sales topic. Free. Spark Central, DECEMBER 5 2012 increasingly concerned about the latest Ann Arbor. Contact: (734) 372-4071; email: [email protected]; regulatory changes and interested in website: www.annarborusa.org. Join us at the MSU Management Education what other companies are focusing on. Fundamentals of Marketing Your Busi- Center in Troy, MI ness. 6-9 p.m. Dec. 5. Course focuses on practical applications of marketing concepts to help small businesses ” grow. Oakland County Business Cen- ter, Waterford Township. $40. Con- tact: Karen Lear, (248) 858-0783; email: ANNUAL TAX ANNUAL ACCOUNTING [email protected]; website: www.advantageoakland.com. FORUM & REGULATORY UPDATE 12:00PM-6:00PM EST 8:30AM-6:00PM EST CALENDAR GUIDELINES If you want to ensure listing online Learn more about the latest tax laws, Full-day program geared towards CFO’s, audit committee and be considered for print trends and developments impacting both members and chairs, on the latest accounting, regulatory, publication in Crain’s Detroit individuals and businesses. legal and SEC updates. Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, click “Submit Your Entries” from the drop-down menu that will appear and you’ll be taken to our online submission form. Fill out Todd Bensley, CPA Scott Earls, CPA Scott Miller, CPA Thomas Alongi, CMA, CPA Marc Lichtman, CPA the form as instructed, and then click the “Submit event” button at REGISTRATION the bottom of the page. That’s all there is to it. Pre-registration for these complimentary programs is required. Multiple registrations are welcome. Please contact Courtney Gray at More Calendar items can be found [email protected] or 586 843 2533 to RSVP. Please declare which event you’re registered for. Technical programs conclude at 4:45 on the Web at and complimentary cocktail reception immediately follows. CPE credit will be offered. www.crainsdetroit.com. 20121119-NEWS--0020-NAT-CCI-CD_-- 11/16/2012 10:16 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS November 19, 2012

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

ARCHITECTURE chief information officer. FOOD and treatment specialist, Detroit Cen- tral City Community Mental Health Cynthia Enzer Radecki to director of Josh Bartlett to brand manager, Faygo IN THE SPOTLIGHT Inc., from psychiatric physician, business development, Lord Aeck & FINANCE Beverages Inc., Detroit, from district Green Oaks Hospital, Dallas. Detroit-based Coleman A. Young Sargent Inc., Ann Arbor, from busi- Julie Truskowski to assistant manag- marketing manager, Michigan, Vita- Foundation has named Khary Charles Schwartz, M.D., to director of ness development manager, Midwest. ing director, McGraw Wentworth Inc., minwater and Smartwater, Coca-Cola Turner its new executive director. Troy, from account director. Refreshments, Detroit. cardiothoracic surgery, St. Joseph Mercy Oakland, Pontiac, from assis- Turner, 42, EDUCATION Gregory Alkhas to director, Angle Advi- succeeds HEALTH CARE tant professor of cardiothoracic Diane Jones to chief strategic officer, sors LLC, Birmingham, from vice pres- surgery, New York University Med- Claudette Detroit Public Schools, remaining ident, Lincoln International, Chicago. Tracy Snell, D.O., to clinical recovery ical Center. Smith, who is retiring. Turner most recently served for as director of admissions for Corinthian Colleges Inc.’s Everest Turner Institute in Detroit. Turner earned his bachelor’s degree in communication from Xavier University in Cincinnati and a master’s degree in adult education from the University of Phoenix. The Coleman A. Young Foundation awards $20,000 college scholarships to qualified high school graduates over four years to help cover the costs of attending a four-year accredited Michigan college or university or an accredited historically black college or university. It also coordinates mentors for those students to help them succeed.

NONPROFITS Nanci Ballantyne to major gifts di- rector, Make-A- Wish Foundation of Michigan, Brighton, from chief develop- ment officer, The Children’s Center of Wayne County, Ballantyne Detroit. SUPPLIERS Kevin Dombrows- ki to mechanical engineering man- ager, Coe Press Equipment Corp., Sterling Heights, from operations and engineering manager, Serapid Inc., Sterling Heights. Dave Jones to se- Dombrowski nior vice presi- dent, industry and automotive USA, Sika Corp., Madison Heights, from senior vice president, automotive USA.

PEOPLE GUIDELINES Announcements are limited to management positions. Send submissions to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997, or send e-mail to [email protected]. Releases must contain the person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former city in which the person worked. Member FDIC Photos are welcome, but we cannot guarantee they will be used. 20121119-NEWS--0021-NAT-CCI-CD_-- 11/16/2012 5:32 PM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 21 Hostess store and warehouse closures expected for Michigan BLOOMBERG NEWS strike,” CEO Gregory Rayburn 12, blaming a labor strike. bakeries and 565 distribution cen- to ask the judge to hold a liquida- said in a statement Friday. “Host- The Bakery, Confectionery, Tobac- ters, Hostess said. tion hearing today, he said. The planned closure and liqui- ess Brands will move promptly to co Workers and Grain Millers Interna- “The crisis facing Hostess Hostess, based in Irving, Texas, dation of Hostess Brands Inc. facili- lay off most of its 18,500-member tional Union went on strike Nov. 9 Brands is the result of nearly a filed under Chapter 11 for a second ties is likely to result in the clo- workforce and focus on selling its after a bankruptcy judge in White decade of financial and opera- time in January, listing assets of sure of 20 Michigan stores and two assets to the highest bidders.” Plains, N.Y., imposed contract con- tional mismanagement that result- $982 million against liabilities to- local warehouses this week. According to Washington, D.C.- cessions that 92 percent of the ed in two bankruptcies, mountains taling $1.43 billion. Hostess, the maker of Wonder based real estate information ser- union’s workers rejected. of debt, declining sales and lost The company, founded in 1930, Bread and Twinkies, announced vice CoStar Group Inc., Hostess Hostess had already reached a market share,” the union said was fighting battles beyond labor Friday it would shut down and liq- owns and leases a 21,000-square- contract agreement with its Thursday in a statement. The com- costs. Competition is increasing in uidate after a strike by members of foot retail and distribution center largest union, the International pany “attempted to resolve the the snack space, and Americans its bakery workers’ union crippled at 37051 Amrhein Road in Livonia. Brotherhood of Teamsters. mess by attacking the company’s are increasingly conscious about the company’s operations. It has been at the facility since Hostess said it determined last most valuable asset — its work- healthy eating. Hostess also makes Hostess suspended bakery oper- 1967, according to the real estate week that not enough employees ers.” Dolly Madison, Drake’s and Na- ations at all its factories and said service. had returned to work to restore Rayburn said the company ture’s Pride snacks. its stores will remain open for sev- Hostess also owns a 27,000- normal operations. The wind- would seek authorization to shut Crain’s staff and The Associated eral days to sell already-baked square-foot building at 33801 De- down will close the remaining 33 down entirely on Tuesday. It plans Press contributed to this story. products. quindre Road in Troy. In May, Hostess told Michigan It leases a 10,000-square-foot officials that it could lay off all of building at 1100 Oakman Blvd. in its 381 employees at 20 locations in Detroit for a thrift shop. The build- the state if the company liquidat- ing is owned by Dearborn-based ed. Oakwood Group. A phone message REAL ESTATE “We deeply regret the necessity was left by Crain’s to Oakwood of today’s decision, but we do not CEO Richard Audi on Friday. AUCTIONS OFFICE BUILDING VACANT LAND have the financial resources to Nationally, Hostess closed three weather an extended nationwide of its 36 plants permanently Nov. 28,000+sf Mixed Use LIVE AND WORK IN Building Space PETOSKEY AREA on 5± Acres, Zoned B-2 Commercial 8 Units in Prime Commercial Location 4 Currently houses 5 tenants with potential for 8 HORIZON Profitable Business 684 Grand River (M-43), Williamston, MI 4 72 Slip Marina BUSINESS CENTER WEST 4 Growth Potential Armored Group among ONLINE-ONLY The Beacon of Downriver’s Business Community 20600 Eureka Rd, Taylor, MI 48180 4 50 Businesses for sale TheHorizonBuilding.com AUCTION 3 MONTHS FREE RENT th LET US TAILOR A LEASE TO FIT YOUR MEDC grant recipients Wed, December 5 BUDGET AND PUT YOU IN A BETTER BIDDING ENDS AT 2PM SPACE! NOW LEASING WITH AGGRESSIVE RATES BY CHRIS GAUTZ new jobs. Inspection Dates: Wednesday, November 21st (4-6pm) ON-SITE PROPERTY MANAGEMENT CAPITOL CORRESPONDENT Ⅲ Detroit Mutt LLC will receive a Wednesday, November 28th (12-1pm) MULTIPLE BUILDING UPDATES $38,000 Community Revitalization PROMINENT DOWNRIVER LOCATION Dearborn Heights-based The Ar- Program performance-based grant SECONDS FROM I-75 Joe Blachy mored Group, which supplies SUV for a historical renovation project GROUND FLOOR SPACE AVAILABLE ballistic vehicles, SWAT vehicles in the Corktown district that will CALL JAKE TODAY AT 313-805-2890 (231) 409-9119 and armored vehicles to govern- include retail and commercial (517) 676-9800676-9800 Call anytime between 7am & 10pm 7 days a week!" ments, will receive $1 million in space as well as residential units. www.sheridanauctionservice.com 420 Howard St., Petoskey, MI 49770 state assistance as it plans to cre- It will create two full-time jobs and ate 240 new jobs and invest $1.5 is expected to generate a capital million to expand local operations. investment of up to $486,414. Call or email today for information It is one of six Michigan compa- M Elsewhere, Shiawassee Center, ARKET on a custom advertising plan! nies that are planning to expand an entity formed by the nonprof- after receiving grants from the it Owosso Community Players, PLACE [email protected] state Friday. The six projects are will receive a $446,000 grant on a 313.446.6068 expected to create a total of 616 $6.74 million plan to create two jobs with $110 million in invest- EDUCATION new jobs and renovate the down- ments. AUCTIONS town Joseph H. Lebowsky The- The Michigan Economic Develop- The University of Detroit Mercy - invites applications atre; Summit Polymers will receive a and nominations for Dean, School of Law. For more in- ment Corp. announced that the formation go to: http://www.eflassociates.com (open PUBLIC AUCTION Michigan Strategic Fund approved $370,000 grant on a $9.3 million in- positions). Confidential inquires,questions and nomina- vestment to create 70 new jobs and tions may be directed to: Ms. Jan M. Asnicar, Vice Michigan Business Development President-EFL Associates, at 2 Story 14,000 SqFt Office and Community Revitalization pro- expand operations in Portage, 913-234-1561 or [email protected]. Sturgis and Vicksburg; and Under- Building - Large Lots - Office & gram incentives to the companies. Engraving Equipment & Misc The other approved metro De- car Products Group, with an opera- FINANCIAL SERVICES Art Work troit projects: tion in Wyoming, Mich., as a sub- Ⅲ Livonia-based Henrob Corp., sidiary of Canada-based ABC Group, Liquidation of Great Lakes manufacturer of self-piercing riv- will receive a $475,000 grant on a Engraving Corp ets for the automotive industry, $26 million investment to create Wed., Dec. 5th, 2012 @ 10:00 AM will receive a $300,000 grant as it up to 150 new jobs. expands and relocates its opera- Chris Gautz: (517) 403-4403, Location: 2726 Monroe St., Toledo, OH 43606 Real Estate Sells First tions to Lyon Township. It plans to [email protected]. Twitter: Attractive well maintained 2 story office building on a full basement. 7500 Sqft Per Floor. 1st floor in invest $68.5 million and add 152 @chrisgautz currently large open space for customer service & product display - 2nd story is laid out w/ private BUSINESSES FOR SALE offices, & conference rooms, restrooms, & break area. The basement is deep & offers a lot of utility - The building has a customer elevator & 2 stairways between the main floor & the 2nd level. There is Personal Image Improvement Company For Sale five years of growing success, revenues $500k, profits a freight elevator between the basement & the main floor. We will offer this property together or in 2 COMING SOON 40%-50% of gross. Substantial fixed asset investment Tracts as follows: included. Sale price 4xEBITDA with owner financing Tract 1: The Building w/ the 50' Lot It sits on and the 50' lot to the north west, adjoining along w/ 7" availble. Please send inquiries to: [email protected] vacated Alley to the rear. Total of 100' x 157'. Tract 2: Triangular Vacant Lot. Behind the building w/ access from Bancroft St & Monroe St. The lot INVESTMENT OPPORTUNITIES is .264 +\- Acres. This property offers a lot of good, attractive, usable space. Be sure to look it over & be prepared to All BUYERS BROKERS bid. This property will make a good investment or own cheaper than rent. Call for appt to view. Small Bus./Real Estate We Can Help! Call Mel or Bill Terms of Real Estate: 10% Down Day of Sale, Balance at closing. 2% Buyers Premium to be added. access to (248) 505-5840 / (248) 330-3823 Taxes: $4,424.08/yr for all 4 parcels. Prorated at Closing. crainsdetroit.com For More Information, go to our Website: www.wilsonauctionltd.com Call Us For Personalized Service: (313) 446-6068 **BROKER PARTICIPATION WELCOME!!** FREE to WILSON AUCTION & REALTY CO., LTD. FAX: (313) 446-1757 Toll Free 866-870-5500 visitors for E-MAIL: [email protected] INTERNET: Auctioneers: Wayne M. Wilson, CAI —— Brent J. Wilson, CAI one week only! www.crainsdetroit.com/section/classifieds Denver N. Geitgey CAI, Fred Nott, Keith Whitman, William H. Retcher, Nov. 25 - Dec. 1 See Shad T. Ridenour CAI, Richard Reed, Sam Kunsman, Crainsdetroit.com/Section/Classifieds Rick Roth, Bart Westfall, Justin Vanalstine for more classified advertisements www.WilsonAuctionLtd.com 20121119-NEWS--0022-NAT-CCI-CD_-- 11/16/2012 5:46 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS November 19, 2012 Duggan: Detroit on wrong road, needs good management ■ From Page 1 Works Project initiative of Mayor emergency manager law in the April created a financial advisory the question for me is, is he elec- confidence right now in his ability Dave Bing, and thinks it “im- state Legislature might be the sole board of city and state appointees table?” Brown said. to get community organizations moral” to cut off streetlights to en- deal-breaker. to oversee the city’s finances in “I know there are a number of behind him, or that he’s right to courage longtime homeowners to “Other than that, I don’t see any- lieu of a state-appointed emer- groups in the city who just want continue for that position,” she migrate into seven to nine of De- thing that would stand in the way gency manager. the streetlights on. They don’t care said. troit’s most viable neighborhoods (of a mayoral bid),” he said. But Bing and Treasurer Andy about the color of the person turn- “Not all of the people he’s put in in order to make the city more Why does he want the job? Dillon signed a new agreement ing them on. I’ll be interested in leadership have been shown to functional. “I looked at who the alternatives Thursday outlining 10 key reforms seeing a complete platform of his necessarily have good moral char- He also opposes the prolifera- were, and that it looks like the city the city must implement over the positions and plans in January, if acter, and I think in the business tion of new public authorities like is one step away from bankruptcy, next several weeks to access the he comes out with that.” community we’re hoping our one proposed to manage the Public and what they need is someone funds held in escrow by the state. Duggan also said it was “hard to friend Benny (Napoleon) will seek Lighting Department, or the nonprof- who does financial turnarounds,” These include retaining one or imagine things going better than a different position within Wayne it Institute for Population Health to he said. “I don’t see anyone else on more operational assistance firms they have been in the last couple County.” manage outsourced programs of the horizon who does financial to review the management and op- months” in building momentum Sandy Baruah, CEO of the De- the city Department of Health and turnarounds, and I thought maybe erations of Detroit’s law, trans- for a mayoral bid, and that he can troit Regional Chamber, also said he Wellness Promotion. I could do something to improve portation, police and fire depart- “get past whatever racial gulf has seen momentum building for a “The mayor and the governor quality of life in the city.” ments, assessor’s office and other there is” on the prospect of elect- Duggan mayoral campaign, but he are going down a wrong road, and functions for management, labor, ing Detroit’s first non-African- said the organization would not they are fragmenting the adminis- IT and other constraints and look American mayor in 40 years. make an endorsement decisions trative responsibility in this city. Government in flux for “departmental restructuring “We’ve been in some meetings until next summer at least. The next mayor is going to come in Whether Detroit survives until opportunities.” where we’ve had white and black He also thought Duggan’s race and find 14 or 15 authorities, and a the 2013 election under the model After December, any future bor- residents get in discussions with and recent relocation to the city corporation counsel that doesn’t of government Duggan wants to rowing would be contingent in each other about what it’s been from Livonia were not insur- answer to anybody, and have to try see is anything but clear. part on maintaining a minimum like living in the city. And it’s been mountable obstacles. to run government,” he said. “The City program management di- $50 million escrow balance (the very comfortable conversation,” “I don’t think he needs to worry water department has been run by rector William Andrews told the fund currently has about $80 mil- he said. “I can feel the racial dis- about being seen as an outsider a federal judge for 30 years, and Financial Advisory Board oversee- lion, prior to the two scheduled trust dissipate in the course of an carpet-bagging his way into the the financial services under a fi- ing Detroit’s finances last week payments) and a review of other hour-and-a-half meeting every city. He’s been a Detroit figure and nancial advisory board. There is a that the city could run out of cash departments including the Detroit night.” businessperson for a long time, pattern here.” by year’s end. Department of Transportation. Duggan expects he would run a and the breadth of his outreach In an interview with Crain’s, Projections call for Detroit’s Duggan notes that he has experi- neighborhood-centric campaign has been incredibly impressive,” Duggan didn’t quite commit to be- cash on hand to drop from $53 mil- ence overhauling bus services, and has attended about 20 house Baruah said of Duggan. “He has a ing a candidate for mayor, but he lion as of Nov. 10 to $3.6 million by from his days as interim general parties in recent weeks to discuss record of making government did say that decision will come be- Dec. 21. The city is still waiting on manager of the Suburban Mobility his mayoral plans with neighbor- work, and for turning around a fore the end of the year, when he two funding distributions from the Authority for Regional Transportation hood leaders and ministers. very successful business.” steps down as CEO of the Detroit state totaling $30 million, one on in 1993-1996. Key to his strategy is control of Medical Center. Tuesday and another Dec. 14, un- He recalls a department with the property, and he took issue with He said voter rejection of the der a borrowing agreement most costly vehicle maintenance the Wayne County Treasurer’s of- Starting with homes beefed-up state emergency manag- reached earlier this year. budget in the country, and meet- fice for mass auctions of thousands Duggan proposes a city program er law earlier this month brought The financial stability between ing a group of mechanics in a of residential and other lots to to focus on acquiring foreclosed his decision closer, and that a new the city and state formalized in garage who played cards while “speculators” in the city. He also residential properties and selling SMART buses were sitting idle on advocates a block-by-block stabi- them to city police office officers lifts. lization program like in his days and firefighters well below market None would perform the neces- as a Wayne County prosecutor, value, with the provision they can- sary renovations to the air condi- when the department would file not flip or resell those homes with- tioning systems, because it didn’t civil suits over abandoned homes out giving 80 percent of the fit their job classifications and a and then host auctions over the In- markup on those homes back to new “general mechanic” classifi- ternet while encouraging neigh- the city in the first year, 60 percent cation would cause the depart- bors to buy. if they sell the following year, then ment’s workforce demand to drop Bing press secretary Anthony 40 percent and so on, to encourage by 25 percent. Neely said the mayor and Duggan residency and help stabilize city Duggan knew department has discussed Duggan’s plans re- neighborhoods. turnover was about 12 percent per cently, but that Bing is still finaliz- He also supports streamlining year, so he proposed a pledge to lay ing his own decision on whether to the permitting process for small- off no one for two years in ex- seek another term. business owners to locate startups change for the new job classifica- A former Wayne County prose- in Detroit, says startup owners tion. The union accepted, the bus cutor and deputy county executive want to locate in the city and can fleet was fixed, ridership improved under the late Edward McNamara, benefit from Quicken Loans chair- and the authority received a com- Duggan also thinks he can cooper- man Dan Gilbert’s efforts to con- mendation for efficient garage op- ate well with the city’s labor gregate tech companies in the erations. unions and would like to help city Madison Building, and supports “Every place I’ve been, I’ve been employees buy homes at below the Hantz Farms hardwood tree able to find an alliance between market value in the city to help farm pilot project under way near the union’s interest and the man- shore up neighborhoods, without Mt. Elliott Street on the city’s east agement’s interests,” he said. reinstating the residency require- side. “When people say, ‘My God, these ment that legislators scrapped in Duggan also says he could sup- problems are unsolvable,’ really 1999. port a broader form of commercial the leadership hasn’t solved them “Every place I’ve been, the pre- urban farming regulated by city or- yet.” dictions of (financial) doom turned dinance, and that unions should be out not to be true. The underlying a partner in the budget-balancing problems were mismanagement,” process, rather than an obstacle to New face of City Hall? he said. “I believe that to also be be overcome by contract review Duggan is also confident he can true with the city today. I do not powers of an emergency manager raise the $5 million to $7 million believe the city is well-managed. or a municipal bankruptcy. campaign war chest necessary for The turnaround is not as far away “How would you like to be the a “tough race” that could include as it appears, and we need to re- union president who sold conces- incumbent mayor Bing and Wayne cruit some talent in and get the sions to your members at great per- County Sheriff Benny Napoleon. strategy going the right direction.” sonal cost, as necessary to balance Detroit City Council President Lydia Gutierrez, owner of Ha- the budget, then a year later come Pro Tem Gary Brown has known cienda Mexican Foods LLC and for- back and tell them there’s another Duggan for years and has no trou- mer board chairwoman of the deficit again and you need another ble believing he can get the fund- Southwest Detroit Business Associa- round of concessions?” he said. ing and the necessary leadership tion, said she attended one of Dug- “If the workers don’t have any team for a campaign, but winning gan’s recent house parties and be- confidence that what you’re ask- is another story. lieves the business community ing them to do will actually solve “He would be a formidable can- could get behind him as a candi- the problem, you have to expect didate. I have worked with him on date. them to act pretty much the way some past projects, and I know his “(Bing) is a man of tremendous they have been.” experience at getting results. His integrity, and we’re thankful he Chad Halcom: (313) 446-6796, experience with both the private took that position when he did, but [email protected]. Twitter: and public sectors bodes well. But I don’t think people have enough @chadhalcom 20121119-NEWS--0023-NAT-CCI-CD_-- 11/16/2012 5:34 PM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 23 Hotel: Holiday Inn in Ann Arbor starts in on $4M makeover ■ From Page 3 Plymouth Road and U.S. 23, about lounge in the restaurant and bar early October, with two new hotels, There were no maintenance is- also near developing retail. four miles from downtown, will area, a new front desk and a 24- TownePlace Suites by Marriott and the sues at the hotel, Skelton said. Its ownership group is under see revenue this year that’s close hour, seven-day pantry that will Hilton Garden Inn, opening three “It was just that the brand saw contract to sell about an acre of to 2011’s. sell cappuccino, beverages, mi- miles south of downtown. The ho- an opportunity to say, ‘You either land on Plymouth Road in front of Renovations of the hotel’s in- crowavable meals and sundries. tels added a combined 227 rooms to do all these the hotel to Ohio-based Diverse De- door/outdoor pool and deck were Sefcovic declined to disclose the the market, which already offered things, or we’re velopment, which plans to construct completed in October. Work is hotel’s average room rate but said, 3,484 rooms across 30 properties. going to go get a single-story, 9,490-square-foot re- now focused on landscaping and “Obviously, with providing a bet- When a hotel operator’s fran- another fran- tail building that will house the guest room hallways, Sefcovic ter product, we’ll have to raise the chise agreement with a national chisee.’ ” Shoppes at Plymouth Road, a retail said. Brivar Construction Co. of rate. That’s typical with any hotel brand is nearly up, the brand typi- With the uni- and restaurant development. Brighton is contractor on the inte- renovation.” cally comes to the operator with a versity, health The development is consistent rior work. The hotel’s website quoted room list of upgrades that it requires to system and local with other retail projects under The hotel plans to complete ren- rates during the week after keep the hotel in line with its stan- amenities, the way in the area and meant to serve ovations for the public areas of the Thanksgiving and the following dards. That might include the ad- Ann Arbor mar- residents as well as visitors stay- hotel — the ballroom, meeting weekend from $91-$189 a night. dition of 32-inch flat screen televi- ket consistently ing at the hotel, the developers rooms and lobby — by March and All of the full-service hotels in sions, doorbells, new furniture runs the highest Skelton have said. then move on to work on the exte- Ann Arbor have spent significant and mattresses in the rooms or hotel occupancy rates in the state, “They have good bones at this rior and guest rooms, adding new amounts on renovation recently, new signs out front, said Chuck Skelton said, and the barriers to Holiday Inn,” and the owners lighting, furniture, carpet, said Sefcovic, who is president of Skelton, president of Ann Arbor- entry into the market — land clearly deemed the investment draperies and art to each in stages, the Washtenaw County Hotel and Mo- based Hospitality Advisors Consulting prices, access to utilities, land worthwhile, Skelton said. with expected completion of the tel Association. Group Inc., which does feasibility preparation required by the city, “If you put a lesser brand on that entire renovation in July. Those hotels include the Shera- studies, appraisals, valuations and and likelihood of having to use property, even though it’s on that The hotel, which will remain ton Ann Arbor Hotel, Weber’s Inn, management consulting for hotel union labor for projects given the corner, in a good location, you open during the renovations, also Marriott Courtyard Ann Arbor and the clients around the country. city’s pro-union stance — would could probably expect business to plans to expand its lobby, restau- Holiday Inn Hotel & Suites on the A brand like Holiday Inn will be give any current owner pause be- drop 10-20 percent.” rant and bar areas, adding new south side of Ann Arbor. a little tougher on a hotel in a com- fore refusing updates required by Sherri Welch: (313) 446-1694, flooring, furniture, ceiling and The Ann Arbor hotel market has petitive market like Ann Arbor, a national brand. [email protected]. Twitter: wall coverings, a new e-bar/media become more competitive since he said. The Holiday Inn’s location is @sherriwelch Seneca: Amicable split creates more venture capital options ■ From Page 3 “They’ve been great colleagues. fund he’ll start raising in January. LLC; and raising $42 million in tion, recently left Seneca to become We just had different visions of He said two are in manufacturing funding for a California client, president and COO at NWP. success. I wanted to do a larger, They’ve been great and one is in health care. NWP Service Corp. Tom Henderson: (313) 446-0337, more institutionally focused “ Zambelli said the new fund will Ron Reed, a former president of [email protected]. Twitter: fund,” Kothari told Crain’s last colleagues. We just target, in order, acquisitions in the Michigan Venture Capital Associa- @tomhenderson2 week in his new office’s confer- manufacturing, business services ence room. had different visions and health care. And the office was new. The cof- Kothari, a member of the 2006 fee machine wasn’t hooked up, and of success. class of Crain’s 40 Under 40, said the interview was delayed briefly ” Cascade’s fund will focus on niche while Kothari helped his adminis- Rajesh Kothari, manufacturing, health care and trative assistant get her computer Cascade Capital Partners technology-based business ser- up and running. There were a vices. bunch of possible tag lines to pro- Zambelli said he preferred what Both Seneca and Cascade will mote the company written on a he calls a pledge fund, where continue a strong focus on invest- white board at the end of the room. Seneca will get specific dollar com- ment banking, as well. Kothari said he settled on “Cas- mitments from investors, but they In 2011, Seneca was named 2010 cade” because he’s always loved will have the option to invest in adviser of the year in Crain’s an- mountains “and I think it works deals of their choice instead of nual Mergers and Acquisitions well with what we want to do: Help putting their money into a pool to Awards. people reach new heights. fund all deals. It did a divestiture and an acqui- “I thought about Mt. Arvon, but “On a deal-by-deal basis, we’ll go sition from its health care fund it didn’t have that ring,” he said as to our investors and ask them if that year and was honored for a joke, referring to the tallest point they’re interested. We think our helping to broker eight M&A in Michigan, with a peak at 1,900 investors will like that better. Peo- deals, including an $18 million ac- feet in the Huron Mountains in the ple have a bit of an aversion to a quisition by Bloomfield Hills- Upper Peninsula. blind pool, where they don’t know based TriMas Corp.; two acquisi- Kothari said he wanted to raise what they’ll be investing in,” he tions for NSF International of Ann a traditional VC fund, targeting in- said. Arbor; the formation of Wolverine stitutional investors whose money Zambelli said Seneca is raising Assemblies LLC of Wixom, a joint would be put into a single pool and money for three current deals it is venture of Sumitomo Corp. of Amer- invested as needed in deals. negotiating, separate from the ica and Troy-based TAG Holdings

Survey: Benefit costs rise 5.4 percent ■ From Page 3 cate pre-tax dollars in employee “We assume there is going to be eastern Michigan saw an 11 percent health accounts. Employees then inflation each year, and we take a increase in health care benefits use the money to purchase health conservative approach to that … costs for its 110 employees. coverage that meets their needs. but we don’t know,” Kalina said, United Way doesn’t offer con- Detroit-based Compuware Corp. adding that employee participa- sumer-directed plans, but that will introduced a consumer-directed tion in the new higher deductible change if costs continue to rise, plan in 2010, which allows employ- offering is small. said John Fredrickson, director of ees to choose a lower premium- The average employee contribu- finance for United Way. higher deductible option. tion amount in Michigan for em- “Right now, our HR people are Budget decisions are made mid- ployee-only coverage is $110 per in the process of working with our way through the previous year, month for a PPO/point of service broker to determine what our in- said Rich Kalina, Compuware’s plan, $120 monthly for an HMO creases are going to be for the next benefits director, and Compuware, and $59 monthly for a consumer- year,” he said, “and if the increas- which is self-insured, assumes a directed plan, according to the re- es are going to be significant, then number largely based on its year- port. you have to look at deductibles … over-year trends. Last year, United Way for South- you have to look at all options.” 20121119-NEWS--0024-NAT-CCI-CD_-- 11/16/2012 5:31 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS November 19, 2012 Lame ducks: Full plate will keep state lawmakers hopping ■ From Page 1 make their way onto the agenda “We can’t talk about creating include regional transit, no-fault jobs without creating vibrant com- auto insurance reform, income tax Airport project behind Port Authority bills? munities,” Harkins said. cuts, medical marijuana reforms and a changing of the certificate- BY CHRIS GAUTZ trying to get a contract to run the Fixing claims tax shortfall of-need process, which is key to CAPITOL CORRESPONDENT airport for some time. McLaren Health Care’s ability to open Before the end of the year, law- “They’re looking for just any- a new hospital in Independence makers may have to revisit a A two-bill package in the thing to make money,” he said. Township. In addition, Snyder is health claims tax they created in Michigan Senate that aims to The 263-acre airport has a leaving the door open to a state 2011 and raise its rates. broaden the bonding powers of largely empty 53,000-square-foot health insurance exchange, the MI To ensure the state received its the Detroit-Wayne County Port Au- passenger terminal, several air- Health Marketplace, if federal ex- full amount of federal matching dol- thority may lapse at year’s end in craft hangars, a 5,100-foot instru- change deadlines move again or if lars for Medicaid, Republican law- favor of reconsideration in 2013. ment-landing runway and a 4,100- the state House approves a health makers swallowed hard and voted But it appears that one motiva- foot visual-landing runway. exchange bill. to create a 1 percent health claims tion behind the bills could be to Rep. Lisa Howze, D-Detroit, The lame-duck session begins Jackson Jamian tax, which began in January. The allow the port to issue bonds for whose district includes the air- Nov. 27 and is currently scheduled new tax replaced the previous 6 per- renovation work at the Coleman A. end of the year and disagreed port, said she has been working to last at least three weeks in the cent use tax that managed care orga- Young International Airport. with the idea that the issue was with the port authority about the House, although that could be ex- nizations paid. According to those familiar too complex to handle in just a possibility of improvements at the tended to a fourth week. Members The law capped the amount the with the negotiations, the admin- few weeks. airport. She said it makes sense also could decide to fit everything tax could generate at $400 million, istration and Senate Majority “It is not a big thing to tackle. It for the port to be able to bond for into two weeks. which was the amount needed to Leader Randy Richardville, R- is the right thing to tackle, be- projects related to transportation. Phyllis Browne, House GOP guarantee a full federal match. How- Monroe, are still in talks regard- cause it’s about economic devel- “I see the two being very much communications director, said ever, the tax did not generate as ing the bills, but Gov. Rick Sny- opment,” Jamian said. “It’s about tied together. We have to do some- that chamber also may focus on a much revenue as expected. der’s office is leaning toward growing the port and jobs.” thing different to promote eco- replacement for the Public Act 4 Kurt Weiss, public information having the bills reintroduced in If the legislation is signed into nomic development,” she said. emergency manager law, rejected director at the Michigan Department the new year when there will be law, Jamian said the port has pro- “(The airport is) a jewel in our by voters this month. of Technology, Management and Bud- more time to spend on the issue. jects in line, though he declined to city that has been underutilized.” Browne said House Speaker Jase get, said the tax is projected to fall “Things have to happen for it to discuss what they were. He did say Howze gave up the chance to Bolger, R-Marshall, is trying to bal- short by $123 million. About $25 get consideration, and the gover- all of the projects are related to the run for a second term in the House ance the will of the people who vot- million will be made up from un- nor’s office wasn’t on board,” said port, and none are inland projects. to run for mayor of Detroit and in- ed to throw out the law this month spent funds from several state George Jackson, president of the One of the main points of the cluded making improvements at against the need to ensure that tax- agencies, he said. Detroit Economic Growth Corp., bills would allow the port to issue the airport as part of her platform payers around the state will not end Snyder is working with lawmak- which opposes the bills. bonds for inland projects not re- for her 2013 mayoral run. up on the hook for communities ers to fill the roughly $100 million The bills, SB 1301-1302, would lated to the Detroit River or port She said she would like to see that are unable to make payroll. hole, Weiss said, and it is expected amend the Port Authority Act of infrastructure. an extension of the runway and a “It’s about finding that bal- to be filled by year-end to avoid los- 1978 (PA 639) and were introduced return of commercial jets. ance,” Browne said. ing federal matching dollars. in September by Sen. Mike Going back to Dennis Archer’s The House Insurance Commit- Aid for airport? The plan to solve the problem Kowall, R-White Lake Township. tenure as mayor, Howze said, comes in the form of SB 1359, intro- tee is slogging through the Blues Speculation in recent days cen- Kowall and a spokesperson for there have been plans for reno- duced by Sen. Roger Kahn, R-Sagi- conversion bills, but there is opti- tered on a potential reason for the Snyder could not be reached. vating the airport, but they have naw Township. His bill would elimi- mism the work can be completed legislation, which would be to is- Richardville said he did not never been followed through. nate the dollar cap on the amount by the end of the year. sue bonds for renovation work at know yet where the bill would fall “The city has not demonstrated the tax could generate and instead Amber McCann, press secretary the former Detroit City Airport. on the lame-duck priority list. any vision for the airport,” she tie it to the medical inflation rate. for Senate Majority Leader Randy Jamian would not answer di- Legislation to broaden the said. The measure also allows the Michi- Richardville, R-Monroe, said he is rectly if the port would be interest- bonding ability of the port au- Over a 10-year period, a run- gan Department of Treasury to increase meeting with senators individual- ed in issuing bonds for the airport. thority has come up in years past way extension is estimated to cost or decrease the rate to whatever per- ly to discuss bills they are interest- “Like all great port cities, port but has faded away amid con- between $168 million to $274 mil- centage it needs if revenue falls ed in to help formulate the Senate’s authorities can really provide a cerns it would almost create an- lion, and renovations without a short in the preceding year. Kahn lame-duck agenda. Those meetings lot of transportation help, and it other Michigan Economic Develop- runway extension would cost was unavailable for comment. have not concluded, McCann said. is my hope that at some point in ment Corp. in the city. about $55 million, a report last “Medicaid needs to be funded, time we will be able to provide John Jamian, the port authori- year from Lansing-based QoE Con- but there needs to be limitations. that help to fortify our trans- Personal property tax: ty’s executive director, said he is sulting found, Howze said. There are none in this bill,” said portation infrastructure in the continuing to work with Kowall’s Chris Gautz: (517) 403-4403, Bret Jackson, president of the Compromise? state of Michigan,” he said. office and the administration to [email protected]. Twitter: Economic Alliance for Michigan. Jackson said the port has been The personal property tax mea- move the legislation before the @chrisgautz “They got it wrong” in the previ- sure, Senate Bills 1065-1072, has ous bill, he said. “They didn’t do been sitting in the House since May ernments that depend on the rev- tion, he would not get into due diligence enough to meet their without action. But there is chatter enue the tax generates to wildly specifics, except when it came to needs. The tax will be higher and a about finding a compromise during varying degrees around the state. We are pushing the poison pill. greater burden to business.” the lame-duck sessions. Tricia Kinley, senior director “ “That’s going. There’s no doubt The Michigan Manufacturers Asso- Several sources said Lt. Gov. of tax and regulatory reform for for action about that,” Gilbert said. ciation opposes the bill. Brian Calley has been meeting the Michigan Chamber of Com- Samantha Harkins, director of “Businesses can’t operate in a with interest groups in recent days merce, said the chamber general- in the final state affairs at the Michigan Munici- state that has uncapped and unpre- to discuss using some revenue ly has supported the package of pal League, said her group expects dictable taxes,” said Delaney from the state’s use tax to replace bills — which would phase out remaining some type of reform to happen in McKinley, the association’s direc- some of what local governments the personal property tax over 10 weeks. We the lame-duck session. tor of human resource policy. would lose if the personal property years. It especially likes the “The bigger question is not if it’s Rick Murdock, director of the tax were eliminated. phaseout on industrial property. view this as going to happen but what the final Michigan Association of Health Plans, A use tax, a companion to the “There are still some things product will look like,” she said. said he was surprised to see the state sales tax, requires that a 6 per- we would seek to amend that unfinished But, she said, the league has bill introduced. cent tax be paid on the total price of were added at the 11th hour,” Kin- been told that the poison pill is un- “We’re just coming to grips with all taxable items brought into the ley said. business. likely to remain, and so her group this,” Murdock said. “The lan- state, on items purchased from re- She is referring to the poison ” is focused on what type of new guage change is not anything we tailers outside Michigan and on cer- pill amendment, added just before guarantee can be put in place. Tricia Kinley, are very comfortable with.” tain services including telecommu- the Senate passed the bills in May “That is key to our neutrality,” Michigan Chanber of Commerce He said it was a struggle to bring nications and hotels. Local to keep the groups representing lo- she said. members on board last year at the 1 governments would receive 100 per- cal units of governments from op- tax as a top legislative priority. While the business community percent rate, and “anything above 1 cent of the funds they get for police posing the bills. The amendment “We are pushing for action in says the tax discourages invest- percent becomes a problem.” and fire service through the person- states that if future legislatures the final remaining weeks,” she ment and discourages businesses That is because health plans al- al property tax revenue and 80 per- did not supply replacement rev- said. “We view this as unfinished from growing, Harkins said busi- ready are looking at a premium cent of the revenue from the tax that enue for municipalities, the per- business, and we are pushing very nesses also look at quality-of-life tax in 2014 to underwrite the Pa- they receive for all other services. sonal property tax would return. hard.” issues such as schools and public tient Protection and Affordable The key piece of the deal struck “It injects a lot of uncertainty,” Rep. Jud Gilbert, R-Algonac, safety in communities where they Care Act and additional expenses in the Senate this spring to secure Kinley said. “You can’t have busi- chairman of the House Tax Policy consider locating. related to participating a health passage of the legislation — a pact nesses making planning decisions Committee, said he thinks his Years of declining revenue shar- care exchange, he said. known as the “poison pill” — is go- with that out there. If revenue chamber can wrap up the bills dur- ing and lost property tax revenue “This does create a lot of con- ing to be removed in the House, comes back even a penny short, ing the lame-duck session, al- have hit some communities hard, cern for us.” those involved in the discussions the tax comes back.” though changes will be made. and so repeal of the personal prop- Chris Gautz: (517) 403-4403, say. A new solution is being craft- Kinley said the chamber views But Gilbert said that, per the erty tax without a full replacement [email protected]. Twitter: ed to allay concerns from local gov- reform of the personal property wishes of the Snyder administra- would be devastating, she said. @chrisgautz 20121119-NEWS--0025-NAT-CCI-CD_-- 11/16/2012 5:35 PM Page 1

November 19, 2012 CRAIN’S DETROIT BUSINESS Page 25 Suppliers: Up and down www.crainsdetroit.com UPCOMING EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] PARTNER EVENTS spending capital, renegotiating old days of fixing this are over,” she ASSOCIATE PUBLISHER Marla Wise, (313) 446- contracts or adding workers. said. “(Cus- 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Their customers, the automak- tomers) under- 0460 or [email protected] Crain’s partners with a variety of ers, feel the effects of sharp rises in stand they can’t MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] organizations on events and demand. Ford Motor Co. has added get more out of MANAGER, DIGITAL CONTENT STRATEGY Nancy about 5,200 jobs this year in U.S. these suppliers Hanus, (313) 446-1621 or [email protected] special subscription offers for their members. DEPUTY MANAGING EDITOR Daniel Duggan, (313) plants, which are operating at 114 unless they are 446-0414 or [email protected] Please visit their websites below. percent of capacity, the highest in willing to give.” SENIOR EDITOR Bob Allen, (313) 446-0344 or [email protected] more than three decades, Automakers WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Bloomberg News reported. and large suppli- 8158 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or The Michigan Hispanic Chamber of Commerce Overall, the North American ers are adding [email protected] market has recovered and volumes modifications to SENIOR DESIGNER Jeff Johnston, (313) 446-1608 23rd Annual Fiesta Hispana Gala Miziolek or [email protected] KEYNOTE SPEAKER: Ernesto M. Hernandez, are rising. LMC Automotive forecasts their terms and DATA EDITOR Brianna Reilly, (313) 446-0418, sales of 14.4 million vehicles in [email protected] President and Managing Director of General Motors conditions to assist suppliers dur- 2012, up from 12.8 million last year. ing sharp fluctuations in demand, WEB PRODUCER Norman Witte III, (313) 446- de Mexico. The Fiesta Hispana Gala celebrates 6059, [email protected] It’s not clear how other economic Miziolek said. EDITORIAL SUPPORT Robertta Reiff, (313) 446- the success of Michigan’s Hispanic owned 0419; YahNica Crawford, (313) 446-0329 forces will shift the projections for Northville-based Key Plastics LLC NEWSROOM (313) 446-0329, FAX (313) 446- businesses and attracts up to 600 business, civic 2013. Experts count the so-called fis- mirrors its customer contracts 1687 TIP LINE (313) 446-6766 and community leaders to this formal Black Tie cal cliff, which could lead to tax with supplier contracts, so that ris- REPORTERS Event. The evening begins with a cocktail reception hikes and government spending es are accounted for through the Daniel Duggan, deputy managing editor: (313) 446-0414 or [email protected] followed by dinner and a program that includes cuts; pieces of health care reform; entire system, said Claire Walia, Jay Greene, senior reporter: Covers health care, the keynote address and member recognitions. and consumer confidence among vice president of global purchasing. insurance, energy utilities and the environment. (313) 446-0325 or [email protected] An Afterglow features live music from Dal Bouey, the factors facing the industry. And it’s important to communi- Chad Halcom: Covers litigation, higher education, With all of this going on, suppli- cate any movement in demand non-automotive manufacturing, defense a high-energy band spiced with Latino flavor that contracting and Oakland and Macomb counties. keeps partygoers dancing ‘til midnight. ers are reluctant to add resources through your supply chain, she (313) 446-6796 or [email protected] to handle their side of the boom. said. Tom Henderson: Covers banking, finance, iV°ÊÇÊUÊÊÈÊ«°“°Êqʓˆ`˜ˆ} Ì technology and biotechnology. (313) 446-0337 or The Henry, Dearborn Brad Norton, CEO of Plymouth- “The processes have become [email protected] based supplier Freudenberg-NOK, more formal so we can react to tim- Bill Shea, enterprise editor: Covers media, >VŽÊ/ˆiÊ Ûi˜ÌÊUÊ/ˆVŽiÌÃ\ÊfÓääÊ«iÀÊ«iÀܘ advertising and marketing, the business of sports, said the company’s plants are car- ing of big increases,” Walia said. and transportation. (313) 446-1626 or Corporate Sponsorship Packages Available rying more inventory to offset any “You have to have good visibility [email protected] For more information about MHCC on this topic Nathan Skid, multimedia editor. Also covers the rises in demand to your customer and update that food industry and entertainment. (313) 446-1654, «i>ÃiÊVœ˜Ì>VÌÊi˜˜ˆviÀÊ ˆiÃi˜Ê>ÌÊ­Ó{n®ÊǙӇÓÇÈÎÊ — a move that information to your suppliers.” [email protected] Dustin Walsh: Covers the business of law, auto or email [email protected] proved benefi- Key operates several plants in suppliers and steel. (313) 446-6042 or cial in the re- North America, including facilities [email protected] Sherri Welch: Covers nonprofits, services, retail cent uptick re- in Wisconsin, Tennessee, Alabama, and hospitality. (313) 446-1694 or lated to Sandy. Texas and Mexico. Its projected rev- [email protected] Oakland Chamber Network Mixer LANSING BUREAU Hosted by the Troy Chamber of Commerce “We’ve made enue for 2012 is $400 million. Chris Gautz: Covers business issues at the Capitol and utilities. (517) 403-4403 or [email protected]. Pass business cards with members from nearly sure that we’re generous with ADVERTISING ÎäÊV >“LiÀÃʜvÊVœ““iÀViʈ˜Ê">Ž>˜`Ê œÕ˜ÌÞ°Ê̽ÃÊ the inventory Risks vs. rewards one of the largest business card exchanges in the SALES INQUIRIES: (313) 446-6052; FAX (313) we’re carrying Besides contract changes, the 393-0997 Norton county! Door prize drawings for gift cards, courtesy right now,” he shaky economy is leaving suppli- SALES MANAGER: Tammy Rokowski of HealthPlus of Michigan. Sponsored by HealthPlus SENIOR ACCOUNT EXECUTIVE: Matthew J. said. “We have a little bit more in- ers leery of capital expenditures Langan of Michigan, MLive Media Group and Paesano ventory than we’d like, but it’s and reinvestment. ADVERTISING SALES Christine Galasso, Lori Akkashian, P.C. Appetizers included/Cash bar helped us with short-term blips.” In the September Supplier Tournay Liggett, Dale Smolinski œÛÊÓnÊUÊx\ÎäÊqÊÇ\ÎäÊ«°“°ÊUÊ*iÌÀÕââiœ½Ã]ÊșxäÊ Norton said Freudenberg-NOK Barometer survey from the Troy- CLASSIFIED SALES (313)-446-0351 and its supply base are capable of based Original Equipment Suppliers EVENTS DIRECTOR Nicole LaPointe ,œV iÃÌiÀÊ,`]Ê-œÕÌ Ê Û`°ÊÕÃÌÊÜÕÌ ÊœvÊ ‡x™® DIRECTOR, INTEGRATED MARKETING Eric Cedo f£äÊ">Ž>˜`Ê œÕ˜ÌÞÊ >“LiÀÊ i“LiÀÃÊÉÊ handling the rise in volumes in au- Association, several supplier re- SALES PROMOTION MANAGER Karin Pitrone fÓxÊ œ˜‡ i“LiÀÃÊ­
˜Ê>``ˆÌˆœ˜>ÊfxÊ܈ÊLiÊV >À}i`Ê tomotive. The “X” factor comes out spondents identified capacity as a EVENTS COORDINATOR Kacey Anderson to those registering on the day of the event. RSVP of its diversified customer base. It significant short-term challenge, SENIOR PRODUCER FOR DIGITAL/ONLINE also supplies rubber parts to the with one supplier replying, “We PRODUCTS Pierrette Dagg ̜ÊÓ{n‡È{£‡n£x£]Ê[email protected] or construction and housing indus- must weigh the risks of expanding MARKETING ARTIST Sylvia Kolaski www.troychamber.com/cal. SALES SUPPORT Suzanne Janik, YahNica Crawford tries. in this environment versus the CUSTOMER SERVICE “We have to watch closely risks associated with not ramping where we have common compo- up our capacity.” PRODUCTION MANAGER Wendy Kobylarz Troy Chamber Holiday Luncheon and Best of Troy PRODUCTION SUPERVISOR Larry Williams nents across industries,” Norton Bill Diehl, CEO of Southfield- MAIN NUMBER: Call (877) 824-9374 or write Presentation. KEYNOTE SPEAKER: Tom Wilson, said. “Some of these markets, like based advisory firm BBK Ltd., said [email protected] President and CEO, Olympia Entertainment SUBSCRIPTIONS $59 one year, $98 two years. industrial and construction, re- the lack of available capital and Out of state, $79 one year, $138 for two years. Enjoy power networking during the pre-reception main soft, but if there was a boom talent to smaller suppliers is caus- Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or £ä\Î䇣£\ÎäÊ>°“°]Ê>ʓœÌˆÛ>̈˜}ʎiޘœÌiÊ>``ÀiÃÃÊ in housing or construction, that ing even more constraint. (877) 824-9374. and lots of holiday cheer! Also, attendees will could cause us problems.” “Rising volumes are an issue, SINGLE COPIES: (877) 824-9374 REPRINTS: (800) 290-5460, ext. 125; enjoy a first-class lunch in addition to the superb and it’s not something that is com- (717) 505-9701, ext. 125; or lindsay.wilson service. And to make the event complete, ing at us: We’re living it right now,” @theygsgroup.com Contingency planning he said. “Many are running at max- TO FIND A DATE A STORY WAS PUBLISHED: registrants will leave with Holiday Biz Bags full of (313) 446-0406 or e-mail [email protected] coupons, discounts and chances to win In the new climate of volatility imum capacity levels, and these mi- and unpredictability in the mar- dlevel suppliers are getting hit with CRAIN’S DETROIT BUSINESS IS PUBLISHED BY great prizes. CRAIN COMMUNICATIONS INC. ket, suppliers are turning to their capital and labor constraints. It’s CHAIRMAN Keith E. Crain iV°Ê£ÎÊUÊ£ä\ÎäÊ>°“°ÊqÊ£\ÎäÊ«°“° legal staffs to protect themselves news for the industry that we’re up, PRESIDENT Rance Crain /ÀœÞÊ >ÀÀˆœÌÌ]ÊÓääÊ7°Ê ˆ}Ê i>ÛiÀÊ,`° TREASURER Mary Kay Crain from the unknown, Sharkey said. but it’s a struggle because we’re out Executive Vice President/Operations fÎnÊ/ÀœÞÊ >“LiÀÊ i“LiÀÃÊÉÊf{nÊ œ˜‡ i“LiÀÃÊ Lawyers are adding fail-safe of breathing room.” William A. Morrow Group Vice President/Technology,
˜Ê>``ˆÌˆœ˜>ÊfxÊ܈ÊLiÊV >À}i`Ê̜ÊÌ œÃiÊÀi}ˆÃÌiÀˆ˜} clauses to contracts, asking for high- Betsy Meter, partner for KPMG Manufacturing, Circulation on the day of the event--space permitting. er prices if automaker demand falls LLP in Detroit and its automotive Robert C. Adams Vice President/Production & Manufacturing ,-6*Ê̜ÊÓ{n‡È{£‡n£x£]Êtheteam@troychamber. below contracted parts volume. And audit leader, said the lower-tiered Dave Kamis com or www.troychamber.com/cal. in the case of sharp increases, sup- supply base remains leery of rein- Chief Information Officer Paul Dalpiaz pliers are asking customers for even vesting because banks have not Chief Human Resources Officer more assistance, he said. eased lending requirements. Margee Kaczmarek “The reality of it all is, if a sup- Meter said the downturn trig- Director of Audience Development Operations Save the Date! Reinventing Macomb: The Michelle Roth Business of Politics. This twice yearly event brings plier suddenly gets a 50 percent in- gered more collaboration between G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) together elected officials from both parties and crease from the customer, they automakers and suppliers, and can’t keep up,” he said. “They need these new capacity issues are ex- EDITORIAL & BUSINESS OFFICES: all levels of government with the local business 1155 Gratiot Ave., Detroit MI 48207-2732; (313) more than just higher prices. They pediting the process further. 446-6000 community to share ideas, information and Cable address: TWX 248-221-5122 AUTNEW DET need tooling and new hires, and Regulations and natural disas- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 viewpoints on public policy. they’re really trying to embed that ters continue to force transparen- is published weekly, except for a special issue the third week of August, and no issue the third week >˜°ÊÓnÊUÊnÊ>°“°ÊUÊ iÀÀÞÊ ÀiiŽÊœvÊ ÕL]ÊxÓääÊ it in the contracts.” cy, she said. of December by Crain Communications Inc. at Cherry Creek Drive, Shelby Township In the past, shortfalls in the sup- “This is a more supportive in- 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and fÓxÊ«iÀÊ̈VŽiÌʈ˜VÕ`iÃÊLÀi>Žv>ÃÌ°Ê œÊVœÀ«œÀ>ÌiÊ ply base led to lawsuits, but a new, dustry now,” she said. “No one additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, checks are accepted for this Macomb County more collaborative effort has tak- wants a part of their supply chain Circulation Department, P.O. Box 07925, Detroit, Chamber PAC event. Register at en shape, said Aleksandra to fail — the ramifications are MI 48207-9732. GST # 136760444. Printed in U.S.A. www.macombcountychamber.com Miziolek, partner and director of huge, as we’ve seen.” Entire contents copyright 2012 by Crain Detroit-based Dykema Gossett Dustin Walsh: (313) 446-6042, Communications Inc. All rights reserved. œÀÊV>Ê­xnÈ®Ê{™Î‡ÇÈää° Reproduction or use of editorial content in any PLLC’s automotive practice. [email protected]. Twitter: manner without permission is strictly prohibited. “Everybody is concerned, but the @dustinpwalsh 20121119-NEWS--0026-NAT-CCI-CD_-- 11/16/2012 5:42 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS November 19, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 10-16

nicipal League; Mike Nystrom, ren Truck plant and re- executive vice president of Snyder to push vamp part of its Mack En- Crain’s hires the Michigan Infrastructure gine complex in Detroit to Cancer cause and Transportation Associa- make more Pentastar V-6 tion; Rick Baker, president for a state- engines. Lansing reporter and CEO of the Grand Rapids Research in Motion Ltd. Area Chamber of Commerce; federal exchange plans to showcase the first Crain’s Detroit Busi- becomes hairy Tim Daman, president and two of its BlackBerry 10 ness has hired Chris Gautz as its Capitol correspon- CEO of the Lansing Regional fter yearlong inac- smartphones Jan. 30 and dent in Lansing. Chamber of Commerce; Dear- tion by the state then start selling the de- Gautz, born Heights Mayor Daniel A House regarding im- vices in February. 31, most Paletko; and Michigan Senate plementation of a key piece Bloomfield Hills-based issue for group Appropriations Committee Penske Automotive Group Inc. recently of the Patient Protection worked Chairman Roger Kahn, R- and Affordable Care Act in acquired Jon Lancaster Toy- share it on our Facebook at Gong- Saginaw Township. Michigan, Gov. Rick Snyder ota Scion and Lexus of Madi- page at facebook.com/Crains- wer The group will push a pe- announced Friday he is son, both in Madison, Wis., Detroit. News tition on its website, planning to move forward for an undisclosed amount. Service www.fixthedebt.org, urging with a state-federal health Hertz Global Holdings in Lans- Congress to act. Sikkema insurance exchange. But he Inc. will divest its Detroit Fiscal Cliff meets Great ing, and Baruah also may en- is leaving the door open to Metropolitan Airport location Gautz where he Lakes in debt-fix push courage other groups a state-based exchange, re- after its $2.6 billion acquisi- Sporting mustaches are Skip led the publication’s cov- around the state to get in- ferred to as the MI Health tion of Dollar Thrifty Automo- Simms, Kayo Ramirez and The nation’s debt and the erage of the state House, volved, and possibly meet Marketplace, if federal dead- tive Group Inc. was approved Martin Dober. looming “fiscal cliff” are the Department of Human with members of Michigan’s lines move again or if the by the U.S. Federal Trade hitting home in Michigan, Services and the Michigan congressional delegation. state House OKs the bill. Commission last week. conomic development where business and munici- Public Service Commission. executives were show- pal leaders are adding their Gautz previously worked ing off their mustach- voices to a national cam- Don’t wait for the due date E ON THE MOVE OTHER NEWS for the Jackson Citizen es at the Accelerate Michigan paign pressing Washington Patriot, the South Bend to get that tax deduction Home sales and prices Innovation business plan lawmakers to act. Tim Manganello will (Ind.) Tribune and The in metro Detroit are up 9.1 competition last week in A Michigan chapter of If you’ve ever been caught step down as CEO of Borg- (Adrian) Daily Telegram. percent in 2012 compared Detroit. In particular: three the Campaign to Fix the Debt up in bureaucratic red tape Warner Inc. on Jan. 1 to He earned a bachelor’s with 2011, and foreclosures members of the “PureMus- has been created. It’s part of trying to claim your unborn make way for James Verrier, degree in journalism are slightly down, according tachio” group. the national coalition doing child on your taxes, law- the Auburn Hills-based from Central Michigan Uni- to Farmington Hills-based It’s not just a fashion grassroots organizing and makers in Lansing may company’s president and versity. Realcomp II Ltd. Sales prices statement, it’s part of the advocacy to urge elected soon come to the rescue. COO. Manganello will re- Gautz can be reached rose last month to a median “Movember” effort — men leaders to avert automatic On Tuesday, the House Tax main executive chairman at [email protected] or price of $89,500, up from growing mustaches to raise federal spending cuts and Policy Committee will debate until BorgWarner’s annual (517) 403-4403. awareness for prostate and tax increases that will take a bill, HB 5684, that would al- meeting April 24, when $70,000 in October 2011. The 6th U.S. Circuit testicular cancer. effect next year and to re- low a taxpayer to claim a fe- Alexis Michas is to become or Dave Bing said. Court of Appeals threw out The PureMustachio group duce the nation’s long-term tus as a dependent on their nonexecutive chairman. Several additional re- Michigan’s voter-approved — a play off the Pure Michi- debt. federal income tax return. Michael Renda was tailers set up pop-up stores ban on affirmative action gan brand — has raised Co-chairing the Michigan But don’t try it on your named vice president and on Woodward Avenue in in college admissions and $5,300, led by Martin Dober, a chapter are Sandy Baruah, state taxes, because last general manager of Detroit downtown Detroit for the public hiring, saying the senior vice president with president and CEO of the De- year as Republicans voted Fox affiliate WJBK-TV2. Ren- holidays, joining the more 2006 amendment to the the Michigan Economic Devel- troit Regional Chamber, and to eliminate the Michigan da, who holds the same jobs than 50 merchants taking state Constitution is illegal opment Corp. It’s not an offi- Ken Sikkema, former state Business Tax and shift with the Fox-owned WFLD part in “Holiday DLight: because of its extraordi- cial MEDC venture, but 15 Senate majority leader and much of the burden onto in- Fox 32/WPWR My50Chicago, Made in Detroit.” senior policy fellow at Lans- dividuals, the Legislature nary burden on opponents. MEDC employees are on the will take over the Detroit The University of Michi- team, along with other busi- ing-based nonpartisan think eliminated most deductions, station Jan. 7, the network Neil Thrasher, 37, of West gan’s Stephen M. Ross ness executives. tank Public Sector Consultants. including the $600 per child said. He replaces Jeff Murri, Bloomfield was sentenced to School of Business placed Also sporting the look at The fiscal situation pre- deduction, and a refundable who died in February. 17 months to 10 years in eighth and Michigan State Accelerate Michigan were sents uncertainty that can state tax credit for parents Thomas Ogden, president prison and ordered to pay University’s Broad Graduate Skip Simms of Ann Arbor cause businesses to hold who had a stillborn child. of the Michigan market for restitution of $29,257 to Para- School of Management was Spark and Kayo Ramirez from back on investment deci- Comerica Bank, will retire in lyzed Veterans of America and 35th among the nation’s top the Michigan Small Business sions, said Sikkema. BITS & PIECES July and be replaced by $45,143 to Disabled American business schools in Busi- and Technology Development Among members of a Michael Ritchie, an executive Veterans for creating fake nessweek’s annual ranking. Center. growing Michigan steering Of the 500 technology vice president. charities with names simi- Detroit Tigers slugger Crain’s wants to help oth- committee are Jim Murray, companies in the U.S. David Brooks has been lar to the two reputable vet- Miguel Cabrera won the Ameri- ers show off Movember president of AT&T Inc.’s deemed “fastest growing” named CEO of St. John Hos- erans’ organizations. can League Most Valuable mustaches. Send a photo Michigan operations; Rob by Deloitte LLP, just one pital and Medical Center. He The General Motors Foun- Player Award, and the team along with your name, com- Fowler, president and CEO from Michigan made the succeeds Diane Radloff, who dation and Quicken Loans will signed veteran free-agent pany and how fans can do- of the Small Business Associa- list. LLamasoft Inc., from retired in February. present new floats in De- outfielder Torii Hunter to a nate to your charity to tion of Michigan; Dan Ann Arbor, placed 216th, Southfield-based adver- troit’s Thanksgiving Day Pa- two-year, $26 million deal. [email protected], Tweet Gilmartin, executive director boasting 389 percent growth tising agency Doner Partners rade. Officials say the GM Nearly 6,000 people vis- it to us at @crainsdetroit or and CEO of the Michigan Mu- from 2007 to 2011. LLC has hired Naveen Passey float celebrates the founda- ited the Eli and Edythe Broad as its CFO and COO to re- tion’s partnership with the Art Museum at Michigan State place Larry Kempa, who be- United Way for Southeastern University during the Nov. 9- come a financial consultant. Michigan and commitment to 11 opening weekend, and Neil De Koker, president education. The Quicken MSU President Lou Anna Si- of the Original Equipment float, to be unveiled today, mon announced that the Suppliers Association, an- honors company culture and venue had met its $40 mil- BEST FROM THE BLOGS nounced he is retiring at creativity with a “What If” lion fundraising goal. the end of 2013. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS theme. Avinash Rachmale, CEO of Lakeshore Engineering, told OBITUARIES More Greek in Greektown Kid Rock a holiday treat COMPANY NEWS jurors in a federal public Edmund Brady Jr., long- Detroit-based Quicken corruption trial that in time attorney and former Santorini Even if the Loans Inc. ranked highest growing his business he president of the State Bar of Estiatorio,“ the newest struggling“ Detroit Lions among primary mortgage made sure to keep co-defen- Michigan and the Detroit Greek-themed lose their Thanksgiving dant Bobby Ferguson happy Metropolitan Bar Association, restaurant in Day game to the leaders for a third consecu- Greektown, is outfitted juggernaut Houston tive year in the J.D. Power by cutting him in on multi- died Nov. 9. He was 71. in Grecian Island decor, Texans, they’ll at least and Associates 2012 U.S. Pri- million-dollar contracts, the Sonny Eliot, legendary including Grecian not lose on the public mary Mortgage Origina- Detroit Free Press reported. Detroit weatherman, died shutters, light colors, relations front when it tion Satisfaction Study. The vacant Frederick at his home in Farmington open windows and a comes to the halftime Overall customer satisfac- Douglass Apartments, the four Hills on Friday. He was 91. boat hull. music act. tion with mortgage lenders red-brick towers known as Helen Wallbank Milliken, reached its highest level in the Brewster-Douglass hous- Michigan’s longest-serving Reporter Nathan Skid’s Detroit-area restaurant” blog Reporter Bill Shea’s “Shea’s Stadium”” blog on the six years, the study found. ing projects, will be demol- first lady (1969-83), died Fri- can be found at www.crainsdetroit.com/skid business of sports can be found at www.crainsdetroit.com/sheasstadium Chrysler Group LLC will ished starting in the first day. The wife of former add a third shift at its War- quarter of 2013, Detroit May- Gov. William Milliken was 89. DBpageAD_DBpageAD.qxd 11/14/2012 8:54 AM Page 1

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