20150406-NEWS--0001-NAT-CCI-CD_-- 4/3/2015 6:17 PM Page 1 CRAIN’SReaders first for 30 Years BUSINESS April 6-12,2015

OPENING DAY Will The News’ Cuts threaten Big money not fate be mental health always best decided soon? authority PAGE 3 PAGE 6 PAGE 10 Mexican mogul tied to Marquette deal Downtown building sale signal of more to come? [COURTESY OF SAFE ROADS YES] The pro-Proposition 1 ad campaign emphasizes safety concerns about poorly main- By Kirk Pinho ourian, managing director of the track record, that he could build. tained roads.Would more facts build more support? [email protected] Southfield office of Colliers Interna- There is need for lots of apartments An entity with ties to Carlos Slim tional Inc. “If they show some suc- and a need for office space.” Helú, the Mexican business mogul cess with it, the floodgates could See MARQUETTE, Page 28 with a net worth Forbes magazine open. With that much ability, what Roads tax ad push pegs as $77.1 billion, has pur- might be a small investment for chased a office him could be huge in the city of building. Detroit. A fraction of his net worth Real estate brokers are watching could be a monster investment.” hitting potholes the deal closely and speculating Steve Morris, principal of Farm- that the purchase marks the begin- ington Hills-based Axis Advisors ning of an effort by Helú to scoop LLC, said the purchase might be Prop 1 message concern: Emotion over detail up other Detroit properties. considered a market test. The 164,000-square-foot Mar- “The probability is that this quette Building at West Congress building certainly has a demand By Dustin Walsh cation funding as well as road safe- Street and Washington Boulevard now with what’s going on, and that [email protected] ty, would have made a difference. was sold to 243 Congress LLC, he’s just getting his feet wet and Proposal 1, the May 5 ballot The proposal would have faced which is linked to Helú, late last will look to do other things,” Mor- measure to provide additional an uphill battle with either strategy. year for $5.8 million. ris said. funding to repair ’s crum- Other obstacles are the expected December’s purchase, docu- “You can’t buy major office bling infrastructure, faces its own low voter turnout common to mented in county records, of the buildings that have a lot of va- rough road as the advertising cam- stand-alone elections and the com- 115-year-old vacant office building cancy that you can turn paign may be falling flat. plex nature of the overall proposal gives Helú an entry to a Detroit around. Those are gone. The campaign surrounding the — only part of which is on the ballot real estate landscape dominated So this gets the ap- proposal, which would generate — which is difficult to explain in by another billionaire, Dan Gilbert. petite wet and $1.2 billion for roads repairs soundbites. “It’s unlikely he would stop at there is the pos- through a sales tax increase, has The ads, led by Lansing-based one, isn’t it?” asked Paul Chouk- sibility, with his been focused on the dangers of public relations firm Martin [AP] Carlos Slim Helú Michigan roads. But is feeding on Waymire and Lansing-based GOP the emotions of drivers enough? advertising agency WWP Strategies, That’s the question being asked by focus on a campaign called “Safe some advertising and public rela- Roads Yes.” Blue Cross cash kept HMO afloat tions experts who assert the cam- The Safe Roads Yes effort had paign is too thin on the education more than $3 million on hand at the of Insurance and Financial Services. needed for voter buy-in. last campaign finance reporting $30M needed to meet state requirements Flint-based HealthPlus Partners lost And if the proposal fails, it could mile marker, on Feb. 10, according $8.9 million in 2014. raise questions about whether an to an analysis by MLive.com. By Jay Greene All of the state’s 13 Medicaid The financial losses for Blue earlier proposed strategy, which [email protected] HMOs have increased member- Cross Complete were attributed, in emphasized improvements to edu- See PROPOSAL 1, Page 29 Blue Cross Complete, a Medic- ship in the past year as Michigan part, to the Medicaid plan adding aid HMO owned by Blue Care Net- has added more than 600,000 administrative staff, technology and © Entire contents copyright 2015 work, needed a $30 million cash people through its Healthy Michi- infrastructure to support a push for by Crain Communications Inc. All rights reserved. infusion last year to stay financial- gan Medicaid Expansion. Nearly greater market share over the next crainsdetroit.com Vol. 30 No 14 $2 a copy. $59 a year. ly solvent and meet the state’s re- 20 percent, or about 1.8 million, of several years. Blue Cross Complete serve requirements. the state’s population is now cov- is licensed to enroll Medicaid mem- Under health care reform and ered by Medicaid. bers only in Washtenaw, Livingston Healthy Michigan Medicaid ex- But Blue Cross Complete — and Wayne counties. pansion, Blue Cross Complete has one of two Medicaid HMOs that New Medicaid patients also used more than tripled in size to more lost money in 2014 — has lost medical resources at a slightly high- than 75,000 members in the three $22.7 million during the last two er rate than expected. counties years, according to annual reports NEWSPAPER where it is licensed to do business. filed to the Michigan Department See BLUE CROSS, Page 28 20150406-NEWS--0002,0003-NAT-CCI-CD_-- 4/3/2015 4:08 PM Page 1

2 CRAIN’S DETROIT BUSINESS // April 6, 2015 MICH-CELLANEOUS Inc., Amway Corp., auto supplier MICHIGAN Faurecia SA, Meijer Inc., Spectrum INSIDE Ⅲ Comstock Park-based Perrin Health and Priority Health are also THIS ISSUE Brewing Co. LLC was acquired by involved in the Seamless Coalition BANKRUPTCIES ...... 6 BUSINESS DIARY ...... 23 Colorado-based Oskar Blues Brew- and Accelerator. CALENDAR ...... 24 ing Co. Ⅲ Michigan Department of , MiBiz reported. Terms of The CLASSIFIED ADS ...... 21 the deal were not disclosed. In Environmental Quality awarded a $1 CRAIN’S LIST ...... 17 2014, Perrin produced almost million grant to help the city of KEITH CRAIN ...... 8 BRIEFS 14,000 barrels, while Oskar Blues Grand Rapids clean up the future OPINION ...... 8 produced 149,000 barrels. Joe In- site of the Biomedical Research OTHER VOICES ...... 9 fante, a Grand Rapids-based attor- Center being built by Michigan State PEOPLE ...... 22 Metro Health CEO in CHS in January said it plans to ac- ney at Miller Canfield Paddock & University’s College of Human Medi- RUMBLINGS ...... 26 whistleblower lawsuit quire 80 percent of Metro. The Stone PC who runs the firm’s alco- cine, MiBiz reported. The Grand WEEK ON THE WEB ...... 26 sale is subject to review by Michi- holic beverage team, said M&A ac- Rapids Press building used to be on Metro Health CEO Michael Faas gan Attorney General Bill tivity will continue to increase the site. is the target of a whistleblower Schuette. among craft brewers, particularly Ⅲ The Western Michigan Universi- COMPANY INDEX: lawsuit filed by Laura Sacha- among the larger players and pub- ty Thomas M. Cooley Law School SEE P 25 Staskiewicz, former director of Dow Chemical to sell lic companies. added two directors to its board, Metro’s foundation. Sacha-Stask- chlorine business to Olin Ⅲ Benton Harbor-based MiBiz reported. They are Kenneth processing the annual harvest of iewicz accuses Faas of “a pattern Whirlpool Corp. will become the ex- Miller, a principle in the Kalama- sugar beets, the Bay City Times re- of illegal and unethical conduct,” Midland-based Dow Chemical clusive supplier of home appliances zoo-based investment manage- ported. The Monitor Township- questioning his actions regarding Co. agreed to sell almost all its for Dan Ryan Builders, MiBiz report- ment firm Havirco and the owner based, grower-owned cooperative the proposed sale of the 208-bed chlorine business, the world’s ed. Dan Ryan Builders has built and CEO of Millennium Restaurant produces sugar under the Pioneer hospital in suburban Wyoming to largest, to Olin Corp. in a $5 billion nearly 10,000 homes and operates Group, also in Kalamazoo; and Sugar and Big Chief Sugar brands. an out-of-state for-profit compa- deal as it pares less-profitable in six Eastern states. Richard Suhrheinrich, a judge on In the fall, growers delivered more ny, MiBiz reported. products, Bloomberg reported. Ⅲ Chemical Financial Corp. the U.S. Court of Appeals for the 6th than 4.72 million tons of beets, up Sacha-Staskiewicz alleges she The deal allows Dow Chairman closed on the $27.2 million acquisi- Circuit. from more than 4.17 million tons in was fired in January after raising and CEO Andrew Liveris to ex- tion of Coldwater-based Monarch Ⅲ California-based Gourmet 2013. concerns about plans to dissolve ceed his target of selling $7 billion Community Bancorp Inc., MiBiz re- Mushrooms Inc. acquired Diversified Ⅲ In March, J.C. Huizenga sold Metro’s charitable foundation be- to $8.5 billion of low-margin as- ported. Monarch will operate as a Natural Products Inc. in Scottville, Holland-based J.R. Automation and fore the sale is approved with Ten- sets as he focuses on products subsidiary until the bank’s IT sys- east of Ludington, in a deal worth its smaller sister company, nessee-based Community Health such as genetically modified corn tems are converted, at which point about $3.3 million, MiBiz reported. Stevensville-based Dane Systems, to Systems. She alleges the goal was seed and plastics for autos and all Monarch branches will take the Gourmet Mushrooms hopes to an investment firm. At which point, to divert $50 million in proceeds packaging. Dow was founded in Chemical Bank name. produce up to 1 million pounds of his parent company, Huizenga Au- from the sale to Metro-CHS rather 1897 as a producer of bleach. Ⅲ Start Garden LLC in Grand various fungi from an operation tomation Group, gave bonuses to the than to the hospital’s charitable Clayton, Mo.-based Olin, North Rapids launched a new business that largely had been idled since employees at the two factories foundation. Metro Health had not America’s oldest maker of chlo- accelerator with six corporate par- 2008. The company currently em- ranging from $500 to more than responded last week to a request rine, now will become the world’s ticipants to support startups seek- ploys 45 and has plans to hire 35 $50,000, MLive.com reported. The for comment. largest producer, said its CEO, ing to design Internet-connected more by the end of the year. payout to 570 employees totaled After months of discussions, Joseph Rupp. devices, MiBiz reported. Steelcase Ⅲ Michigan Sugar Co. finished $5.75 million.

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CRAIN’S DETROIT BUSINESS // April 6, 2015 3

BY THE NUMBERS: DETROIT TIGERS Opening Day: A revenue bonanza Big money By Bill Shea [email protected] It’s Opening Day in Detroit, and De- Park. That involved amassing enor- isn’t always troit Tigers fans will descend on down- mous quantities of everything from town to not only celebrate the start of soda to peanuts. the 2015 season, but to spend money. Concessions and ticket sales from is big money, nearly 3 million fans last season, along and the Tigers and their concession- with TV deals and other income best for Tigers aire, Delaware North Sportservice, are streams, generated $254 million in rev- prepared to meet fan demand for enue for the Tigers in 2014. Team aims for salary balance as season opens beer, soda, hot dogs, chips and team- Below is a look at some key metrics branded merchandise at Comerica for Opening Day. By Bill Shea fielder Anthony Gose ($515,000); in- [email protected] fielder Andrew Romine ($520,000); When $28 million Detroit Tigers backup catcher James McCann delivers a ($507,500); and Shane fastball that’s hit on the ground Greene ($515,000), Bruce Rondon down the left-field line, he’ll rely on ($510,000) and Ian Krol ($515,000). $525,000 third baseman Nick The team’s middle class — guys Castellanos to field the ball. making more than $1 million but Their 2015 less than $10 million — include salaries provide a pitchers Alfredo Simon, Joakim stark contrast that Soria, Joba Chamberlain, Al Albur- illustrates the vast querque and Tom Gorzelanny, and economic dispari- positional players Alex Avila, J.D. ty between the top Martinez, Jose Iglesias and Rajai and bottom of ros- Davis. ters that exists on Players with just a year or two of every MajorLeague MLB experience, like Castellanos Baseball club. De- Justin and Greene, serve a couple of pur- troit will rely on Verlander: poses, said Raymond “Skip” Sauer, those low-paid $28M a year former president of the North Amer- players in the ican Association of Sports Econo- team’s quest for a mists and chair of the economics fifth consecutive department at Clemson University. playoff berth. “First, you need some balance in Verlander, 31, the squad in terms of proven play- will be paid ers and those who are developing $153,005 each day for the future. If experience was to of the 183-day become concentrated among, say, baseball season, 30-year-old players, the whole ros- while Castellanos, ter could depreciate in playing abili- 23, will be paid Nick ty (due to aging) at once,” he said. $2,868 per day in Castellanos: “Balance with youth coming that time — or 1.8 $525,000 a year through helps avoid this. percent of what “Second, young players are Verlander earns per day during the cheap relative to players with lots of season. major league experience. As players The Tigers this season will field a get closer to eligibility for arbitra- $173.8 million Opening Day roster, tion and free agency, their bargain- a number that includes salary and ing power improves as does their pro-rated signing bonuses calculat- salary. ed by BaseballProspectus.com. “Unless you are the (New York) Of that total, $137 million will be Yankees or the (Boston) Red Sox, it paid to eight players who will earn doesn’t make sense to have a roster at least $10 million or more in 2015. full of high-priced players. Only The remainder will be spread nine can be on the field at the same over nine players making between time.” $1 million and $7 million, and 23 One baseball insider says the players who will be paid between Tigers have done a good job of find- $525,000 and MLB’s contractually ing not just the superstar talent, but negotiated minimum salary of the cheaper guys who play well. $507,500. “When you have guys who are Besides Castellanos, other inex- that good and that expensive at the pensive players Detroit is expected to rely on this season include out- See TIGERS, Page 26

MUST READS of the week ... Looking back ... Ready for avant-garde? PowerMoves The price of beauty Crain’s catches up with Ronald Dan Gilbert’s ambitious plans The New Orleans program that Tiny fragments of plastic are Goldsberry, who in 1985, as CEO for the former Hudson’s site is helps link minority entrepreneurs wreaking havoc on the Great Lakes of Parker Chemical Co., was one just one of several projects to with venture capital comes to — our cosmetics and sweaters are of the most read-about men in watch. Detroit later this month. to blame. University of Michigan America. Page 18 Page 25 scientists are on the case. Page 4 Page 20 20150406-NEWS--0004,0005-NAT-CCI-CD_-- 4/3/2015 4:33 PM Page 1

4 CRAIN’S DETROIT BUSINESS // April 6, 2015 Crain’s April 8, 1985, issue looked at Ronald LOOKING BACK Goldsberry’s expanding profile: in ads for Fortune magazine as well as a rare African-American CEO. Now, he can look back at a varied, productive career in Silicon Valley as well as . More at crainsdetroit.com/30 Goldsberry’s career spans Detroit to Silicon Valley and back

By Amy Haimerl from Michigan State University in Silicon Valley and even Detroit’s fi- co, I went to Stanford business [email protected] chemistry, MBA from Stanford Uni- nancial review board. school, but while I have a lot of con- In 1985, Ronald Goldsberry was versity, CEO of a $100 million rev- Crain’s caught up with Goldsber- tacts in the Bay Area, I can have a one of the most read-about men in enue firm — were burnished by the ry about where his career has taken bigger impact in Michigan. America. fact that he was one of the few him and what he’s learned since the That spring, Fortune magazine African-American faces in the days of Parker Chemical and For- Considering your background in selected Goldsberry, president and country’s C-suites. tune. Silicon Valley, what do you think of CEO of Parker Chemical Co. — then “They wanted to use me because the effort to build a startup commu- based in Madison Heights and a my background was somewhat You are originally from Wilming- nity here in Detroit? I’m a big fan of subsidiary of Ford Motor Co. — to be unique and appealing to the busi- ton, Del. What brought you to De- it. I was one of the charter members a spokesman for the publication in ness readers they want to reach,” troit? I came to Detroit about in the of the NewEconomyInitiative, which ads that ran in national magazines Goldsberry told Crain’s 30 years ago. early 1980s when I was the head of with Gov. Rick Snyder helped come such as The New Yorker and Sports Goldsberry was just 42 at the Parker Chemical. I grew up with my up with the concept of investing in Illustrated. time, still at the beginning of what mom, but my dad was a surgeon at entrepreneurship in Detroit. I’m Goldsberry’s professional cre- would become a distinguished ca- Mt.Clemens Hospital, so it was really impressed by what the foundations dentials — U.S. Army captain, Ph.D reer spanning corporate America, a significant point in my life that I and the executives like Dan Gilbert was able to be here to start my ca- have done. reer and to start a relationship with As an anecdote, I tell some of my my dad, who was estranged at the friends, when I’m in downtown and time. That was a very important I come out of a building and close time. my eyes, I think I’m back in Silicon “When I’m in Valley. The euphoria. The atmos- downtown How was Detroit for you profes- phere. The optimism you get. It is (Detroit) and I sionally? As the metro area looks to not by any stretch of imagination at attract new talent, one of their con- a place where it could be called a come out of a cerns is career trajectory in the re- Silicon Valley, but I think the foun- building and close gion. How did it work for you? From dation is there. a business standpoint, Detroit was a my eyes, I think major turning point. Ford Motor Co. What advice would you have for I’m back in Silicon acquired Parker, and Ford asked me those trying to grow that sector? It if I would stay on to the compa- can’t be an island to itself. Regional- Valley. The ny. I became one of the first African- ization becomes a critical factor. euphoria. The American VPs at Ford Motor Co. How do you connect what’s hap- Before Ford Motor Co., I had not pening downtown and midtown atmosphere. The stayed on a job more than about with the rest of the city, the rest of optimism you get. three or four years. I could not can- the state? How do you get the re- didly tell you I had a career plan to gionalization from a transportation ... I think the stay at Ford or in Southeast Michi- standpoint? An inclusion stand- foundation is gan. It was just one of those things point? there.” that just worked out. You served as a member of the De- Ronald Goldsberry You took an early retirement from troit Financial Advisory Board, the Ford in 2000.What came next? I was precursor to the Detroit Financial Re- Then we decided to put the city approached to do a number of dif- view Commission that was created in under an emergency manager. We ferent things, but what got my at- the city’s bankruptcy. Your business were hated for that. They called us tention was a chance to do a startup experience and time with Deloitte carpetbaggers, Uncle Toms and company based on utilizing con- made you a good choice, but how did threatened our lives. That was so nected technology to allow busi- it come about? Quite frankly, I was surprising because I thought I was nesses to communicate. It sounds pretty shocked when I got a call doing this as a friend to help the so obvious now, but then it was real- from the governor’s office. I was city. I didn’t know I was going to be- ly innovative. It was during the hesitant at first. I was never that in- come the villain. whole dot-com era. terested in getting directly involved It was very challenging and diffi- GHDForensicsLLC I got there at the top and then, of in politics. But the committee re- cult. Even some of my friends said, course, the bust. cruiters — Gary Brown, Andy Dillon “You’re crazy; this is not a financial and the governor’s head of person- crisis. This is being made up by the That must have been difficult. nel — did a great job of explaining state.” But the numbers were all Experience Expertise. How did you manage through the not just the financial condition but there. bust? It was tough. We started out the barriers to having politicians with a lot of enthusiasm, a lot of make the tough decisions to deal What advice do you have for young professionals in the region? • Accounting work as it pertains to capital, great ideas. For me, the with the issues. I told them that if I Don’t litigation matters most exhilarating thing was that we can be independent and make the think you have to have a full had all these really bright young tough decisions, I’m open to take planned road map of what you • Representing plantiffs and defendents in people who had dreams and fasci- that on. want to do. Get the education and civil and criminal cases nations. People were either going to start off. Do a little, learn a lot. Do a go to Harvard or Stanford for MBAs Did anything surprise you about lot more. That’s my philosophy. A wholly owned David J. Hammel, CPA, CFE, CFF but had a dream to do this. the financials? Or in the outcome of That will lead you to the right place. subsidiary of: President For it not to work the way we the bankruptcy? One of the first Once you have learned what you thought we had planned or things the board had to do was to want to do, always follow your pas- For information regarding the services dreamed was one of the more diffi- declare that the city was in a finan- sion. I’m a big believer that we com- provided by GHD Forensics, LLC, contact cult points of my life. But we kept cial crisis. I thought that was hilari- pete around the world and you have +,ˆ( David J. Hammel, CPA, CFE, CFF at '4%7 %(:-7367 [email protected]. transforming the model and then ous because you had all the facts to be able to differentiate yourself. eventually sold it. and figures there. I was just shocked Everything else being equal, your in all the public meetings we had competitive advantage is your pas- What brought you back to Detroit with the mayor and City Council sion. Ⅲ 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 from the Bay Area? The big decision that we had to prove that there was Amy Haimerl: (313) 446-0416 586-772-8100 | www.ghdcpa.com for me was this: I loved San Francis- a financial crisis. Twitter: @haimeralad

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CRAIN’S DETROIT BUSINESS // April 6, 2015 5 Growth-minded companies to lead MiQuest gala honorees

More than 50 companies from egories, are represented among it had grown so fast in the past few ber significantly in the coming sponsored by MiQuest. across Michigan — half from metro the winners. Manufacturing, IT years that MiQuest had assumed year. Ⅲ The Government Contractor Detroit — will be honored at the and professional services had the their revenue projections were a Ⅲ The group’s Main Street USA of the Year award winner is Kings- upcoming 11th annual Michigan highest representation, according typo. winner is Detroit-based Walker- ford-based Oldenburg Group, a Celebrates Small Business awards to Miche Suboski, managing direc- “They were growing so fast and Miller Energy Services LLC, an energy shipbuilding parts manufacturer. gala. tor of MiQuest. The list also in- doing so well that we were as- efficiency services provider, which Other individual award win- The companies being honored at cludes technology ventures, soft- tounded. We said if this is true, was named one of Crain’s Cool ners, including Small Business the May 7 event collectively ware companies, property they have to be one of the most in- Places to Work in 2014. Person of the Year and Small Busi- achieved more than $308 million in management, retail and product novative companies. Because how Ⅲ The Small Business Innova- ness Exporter of the Year, will be revenue and employed 1,748 peo- development, among others. can you sell T-shirts and find a new tion winner is Civionics LLC of Ann announced at the May 7 gala, ple last year, according to Lansing- Every major region in the state is way to do it?” Durance said. Arbor, a developer of wireless at the Lansing Center in downtown based MiQuest, the managing part- represented on the list. This year, the companies are sensing systems to give manufac- Lansing. More than 1,000 people ner for the event. “Some of them started in a planning to create 798 new jobs turers advance notice of potential are expected to attend. Tickets Diane Durance, president of garage and now they employ more within those fields. equipment failure. The company can be purchased at MiQuest, said she believes the com- than 100 people,” Suboski said. The review team received 300 recently won an elevator pitch www.michigancelebrates.biz. mon thread between the winning One such company, Gaylord- nominees, up 100 from last year, contest at the annual Collabora- Natalie Broda contributed to companies is their leadership. based SunFrog Shirts LLC, claimed and hopes to increase that num- tion for Entrepreneurship event this report. “These are growth-focused, am- bitious entrepreneurs who are dedi- cated to their company. Across the board, these companies are not standing still,” Durance said. “All these different industries all over the state are being driven forward by someone with a vision.” A highlight of the event is the Michigan 50 Companies to Watch list, which considers companies with between six and 99 employees that generate between $750,000 and $50 million in annual revenue or have working capital from investors or received grants in 2015. (See list, this page.) A total of 22 industries, including one “Other” option with 18 sub-cat-

Local honorees Metro Detroit firms on the Companies to Watch list: AirTime Trampoline & Game Park,Novi Algal Scientific, Northville Apex Digital Solutions, Sterling Heights Armor Protective Packaging, Howell Beet Analytics Technology LLC, Plymouth Benzinga, Southfield Detroit Labs, Detroit Detroit Gun Works,Troy Digital Roots, Northville Energy Power Systems,Troy FirstSense Medical, Pontiac GamerSaloon.com, Royal Oak HistoSonics Inc., Ann Arbor InfoReady Corp., Ann Arbor Innovative Learning Group, Royal Oak jacapps, Bingham Farms Marvel Apps LLC, Royal Oak Mighty Good Coffee Roasting Co., Ann Arbor New Eagle, Ann Arbor NewFoundry, Ann Arbor Oxford Cos., Ann Arbor Rickman Enterprise Group LLC, Detroit Rubicon Genomics, Ann Arbor Troy Gymnastics,Troy For a full list of the Michigan 50 Companies to Watch, see www.michigancelebrates.biz 20150406-NEWS--0006,0007-NAT-CCI-CD_-- 4/3/2015 5:30 PM Page 1

6 CRAIN’S DETROIT BUSINESS // April 6, 2015 Report: Fate of Detroit Newscould soon be decided

A new report from the Nieman nership, which operates under a new owner to take it on, given fi- alone pages as a section within its Journalism Lab at Harvard Univer- joint operating agreement approved nances. I would assume then that rival (as the Las Vegas Sun does in- sity raises questions about the fate by the U.S. Justice Department, Apollo-owned DFM wouldn’t want side the Las Vegas Review-Journal). of The Detroit News. maintains separate newsrooms, to operate The Detroit News and Lastly, The News could become Newspaper industry analyst Ken both of which are financed by the would negotiate any exit from it. a purely digital publication, aban- Doctor wrote Thursday that New partnership’s revenues. “I would think the two parties — doning print altogether (something York-based private-equity firm Crain’s has been told by a Gannett and Apollo — are right-siz- the Freep could do, as well, to save Apollo Global Management is “near- BILL SHEA source familiar with the finances of ing their deal, and The Detroit on the enormous cost of printing ing completion” of its $400 million [email protected] the partnership that it was not prof- News’ fate will hang in the balance.” and delivery). acquisition of News owner, Digital itable as of early 2014. Partnership So that raises a question for mid- The Seattle Post-Intelligencer First Media — a deal that will not News, and executives at Digital First executives had said the same thing 2015, when Gannett orchestrates its went online-only in 2009. include The News. Media. Previously, all involved have publicly in 2009 and 2010, amid newspaper spinoff, he said. While there are opt-out clauses Doctor has been the go-to source declined to comment. Charles home delivery cutbacks and rounds “What are the financial advan- within the Detroit JOA, events seem of information on the sale of the Zehren of Rubenstein Associates Inc., of staff reductions to save money. tages to Gannett of keeping The to be happening more quickly than Digital First properties by its hedge outside media relationship handler Doctor offered some speculation News or of ending or curtailing it? what the opt-out language covers. fund owner, New York City-based for Apollo, declined comment. on Detroit, and he believes the fate Whatever is financially best — and An early-termination clause within Alden Global Capital LLC, and I asked Doctor reported that Gannett of The News is known to the top can be done within the law — is a 25-year joint operating agreement him if he had any additional insight. Co. Inc., owner of the Detroit Free executives. likely to happen.” that created the current partnership “All I know is that (Digital First Press, is acquiring 10 Digital First “Gannett clearly has been part So does The Detroit News join on Aug. 3, 2005, states that after 10 Media’s Detroit) ownership isn’t in- newspapers elsewhere in the coun- of these negotiations, through the newspaper graveyard with the years from that date, either party cluded,” he said via email. try as it also prepares to be spun off (DFM CEO John) Paton and the Cincinnati Post, Rocky Mountain may opt out if the partnership has “In a sense, that’s a puzzlement, this summer as a new standalone board,” he said. News and Honolulu Advertiser — sustained three consecutive years of since DFM as a whole, other than newspaper company separate from “(Gannett) is taking the proper- major daily newspapers that either financial losses. the properties going to Gannett, its digital and broadcast holdings. ties it wants, unspooling the pool. folded or were merged with rivals? If a sale does occur, the JOA in- seems to be moving to Apollo, lock, Digital First has a 5 percent equity So, it would make sense that in the Perhaps a savior comes along to cludes language that outlines owner- stock and barrel, with pensions, stake in the joint business partner- Gannett/DFM discussions, the De- prop it up, which seems a long-shot ship changes: Gannett, as general labor agreements, etc.” ship that operates the advertising, troit partnership would have been notion. partner with a 95 percent ownership A message was left for Jon Wol- circulation, printing and delivery of decided. Another possibility: It folds into stake in the partnership, must sign man, editor and publisher of The The News and Free Press. The part- “(There is) not much reason for a the Free Press and produces stand- off on any sale of a limited partner’s stake in the JOA. The JOA language limits Gannett’s ability to block a sale to whether the buyer has “experi- ence in and a good reputation within the publishing industry.” Gannett doesn’t need permission from The News’ owner for a sale of the Free Press, under the JOA lan- guage. The JOA expires in December 2025, but it automatically will renew for five years if neither party opts out. McLean, Va.-based Gannett bought The Detroit News and other newspapers and several tele- vision stations for $717 million in 1986 from the Detroit-based Evening News Association. In 2005, Gannett bought the De- troit Free Press for $262 million from the now-defunct Knight Rid- der Inc. and sold The Detroit News for $25 million in stock to Denver- based MediaNews Group Inc. A version of this originally appeared as a blog at crainsdetroit.com.

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in Detroit March 27-April 3. Under Chapter 11, a company files for re- organization. Chapter 7 involves 123Net has a high-speed fi ber optic network stretching 2,700 total liquidation. miles across Michigan, and we’re not stopping anytime soon. Mid-America Diesel Inc., 414 N. We’re always ready to go the extra mile, ensuring Michigan businesses have access to reliable, high-capacity connectivity. Saginaw St., Holly, voluntary Chap- ter 11. Assets and liabilities not available. Brian J. Benner PC, P.O. Box 441, Keego Harbor, voluntary Chapter 11. Assets and liabilities not avail- able. Scientific Image Center Properties Inc., Scientific Image Center Staffing Inc., Scientific Image Center Man- YOUR BACKBONE FOR BUSINESS agement Inc., Lifestyle Lift Holding FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET Inc., Pacific Seaboard Management Inc.,100 Kirts Blvd, Suite A, Troy, vol- untary Chapter 11. Assets and liabil- ities not available. — Natalie Broda 20150406-NEWS--0006,0007-NAT-CCI-CD_-- 4/3/2015 5:02 PM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 7 Macomb asst. county exec to Building your business head nonprofit By Chad Halcom requires the right tools [email protected] Macomb County Assistant Ex- ecutive Melissa Roy is stepping down to join Advancing Macomb, a nonprofit focusing on community From analyzing your indirect costing system to reinvestment and economic de- evaluating performance-based incentive compensation, velopment. our comprehensive services are designed with your John Paul Rea, 31, a senior plan- success in mind. ner and nine-year employee of the Macomb County Planning and Just think of us as the world’s best-dressed toolbox. Economic Devel- opment Depart- Contact me today to learn more. ment, replaces her in the posi- tion starting April 6. “I’ve been dedicated to Melissa Roy: helping raise Named executive the profile of director of Macomb Coun- Robert Nagle, CPA, CGMA Advancing Macomb. ty,” Rea said in a Principal statement on 248.579.1100 his promotion. [email protected] “Now, working alongside Execu- tive Hackel and his team, we can continue to advocate for all the wonderful things that happen here.” Detroit, Ann Arbor, Farmington Hills, Troy Roy, 39, an assistant to county Executive Mark Hackel since 2011, rehmann.com | 866.799.9580 becomes the first executive direc- tor of the nonprofit organization, formed about two years ago after a 2012 request from Hackel to local business community leaders. Her last day in the position was April 3. Formerly known as Leaders Ad- vancing Macomb, the nonprofit organization seeks to foster com- munity and economic develop- ment, and to be a philanthropic mechanism for funding major projects or to build public and pri- vate sector collaboration in the county. Advancing Macomb just opened an office in Mt. Clemens, the county seat, this spring. Its board includes Chairman David Girodat, president of Fifth Third Bank eastern Michigan region; Treasurer Paul Trulik, president of Apparatus Solutions Inc. in Detroit; and Secretary Maria Silamianos, president of Omega Solutions LLC. Before joining Macomb County, Roy was senior director of govern- ment relations at the Detroit Re- gional Chamber, where she had worked for 12 years. “Melissa was an exciting hire and now, an exciting new partner,” Hackel said in a statement. “She brought a new perspective to the county that helped modernize our communications, give us a region- al and state-wide reach and estab- lish quality relationships through- out those communities.” In the new role, Roy is expected to focus primarily on Macomb County, but will also look for re- gional collaboration opportuni- ties. Ⅲ Chad Halcom: (313) 446-6796 Twitter: @chadhalcom 20150406-NEWS--0008,0009-NAT-CCI-CD_-- 4/3/2015 5:31 PM Page 1

8 CRAIN’S DETROIT BUSINESS // April 6, 2015 CRAIN’S LETTERS DETROIT BUSINESS Road tax confusing,but worth passing Editor: accounting rule is null and void of reasons that do not relate to non- I read Keith Crain’s column about with respect to this proposal. Politi- compete agreements. the road funding (“Roads tax hike: cians: Keep your grubby fingers off But let’s assume that banning or OPINION What’s a person to do?” March 16, our road money. restricting noncompetes in Michi- Page 6), and I also think a lot of peo- 2) In the past, we always stayed gan would help keep inventors in ple are very confused about this on top of our U.S. Senators and the state. The article focuses on em- proposal. However, from what I congressmen, pressing them to ployees and ignores the impact on know of the legislation, the confu- bring some of the federal gas tax job creators. Businesses prefer to Snyder should embrace sion is not due to the legislation it- money that D.C. grabbed from us at protect their interests with reason- self. Rather, the confusion is due to the pump (18+ cents/gallon) back able noncompete agreements to a persistent problem with Republi- to Michigan for our roads. Where is ensure that the investment made in can-run legislatures: lack of com- the pressure on Debbie Stabenow employees will not lead to disaster school panel proposals munication. Here’s what I know of and Gary Peters and our represen- when that employee bolts to a com- the funding arrangement: tatives in Congress to do this? petitor with the company’s cus- First, the gas tax portion. At least 3) What will be done to ensure tomer lists and product knowledge. he majority of tax-supported K-12 schools in Detroit half of the state of Michigan portion that partisan political bickering As the article points out, even with are failing children. Gov. Rick Snyder knows that. of the gas tax at the pump is due to doesn’t withhold this increased noncompetes essentially unlawful TAnd more than 20 years of charter school expan- sales taxes. Less than half the state road funding to areas of Michigan? in California, Apple and Google had sions and a parade of state-appointed emergency man- tax is actual gas tax, for funding of Just as an example, the Republican- agreed not to poach employees agers haven’t solved the problem. The question is: What the roads. This is the reason that run Township of Canton never ex- from each other. Michigan needs to Michigan has one of the higher pects the Democrat-run Wayne attract business to the state, and will the governor do next to try and fix education? state gas taxes in the U.S., while County to pay attention to its roads. businesses prefer the protections a He can start by embracing some of the most creative spending much less on its roads. It’s Again, at first glance, this road noncompete can offer. recommendations the Coalition for the Future of Detroit the sales tax that’s been added to funding scheme can be quite con- It is this reasonable balance of in- Schoolchildren delivered to him last week. the pump, doing nothing for the fusing. But, when you learn about it, terests that makes Michigan’s non- The best of the bunch: Create an “education commis- roads. The Legislature needed to re- it sounds like a decent proposal, compete law so beneficial. The sion” — appointed by Detroit’s mayor — to oversee open- solve this, increasing the tax that with bipartisan backing. Bloomberg article ignores the prac- goes to fixing roads, while not hurt- tical way Michigan’s noncompete ing and closing all tax-supported schools while holding all ing folks whose wages have been Mike Beeman statute operates. Under Michigan’s schools to the same high standards. stagnant — at best — for the past Financial professional, CFO, controller law, a noncompete must be reason- A single authority with the power to open and close few years. Canton Township able to be enforced. This includes a schools is critical; right now, 14 different entities run De- But what the sales tax at the gas realistic protection of business in- troit’s hodgepodge of publicly financed schools, creating a pump did do fund schools, and a Noncompetes hurt workers terests. For instance, Jimmy John’s host of other things. Not wanting to attempting to restrict its delivery patchwork — too few students spread across too many decrease funding in these areas be- Editor: personnel from competing simply under-utilized buildings. cause sales tax has been removed On March 18, Crainsdetroit.com will not be enforced since there is The coalition also recommended that the governor cre- from fuel purchases, the Legislature published a Bloomberg News arti- no business interest in doing so. ate common enrollment and common transportation sys- created the increase in the sales tax. cle titled “Laws on noncompete The “freaky-fast” delivery guy does tems to serve all tax-supported schools. This is not an It also goes the rest of the way in agreements hurt Michigan, new not have the company’s customer anti-charter proposal; helping parents find quality providing additional funding for study says.” The article argues that list or knowledge of a secret Jimmy roads, so that we aren’t relying total- Michigan can reverse a drain of tal- John’s recipe, and therefore there is schools — and giving them transportation to reach those ly on gas taxes. ent by banning noncompetes. This no basis to prevent competition. schools — helps charters. The coalition recognized that When you look at the entire pro- article comes on the heels of a bill On the other hand, a court will many parents choose schools based on location because posal, it doesn’t seem too bad, after proposal in the Michigan Legisla- uphold a noncompete that protects transportation around the 139-square-mile city forces all. It has bipartisan support in ture to limit noncompete agree- an employer’s reasonable business them to do so. Lansing. Have the Republicans in ments to business owners. interest and is still fair to the em- Lansing done their usual thing of The study on noncompetes itself ployee. For example, consider a Some analysts have fixated on the coalition’s call to re- not communicating, once again? seemingly has numerous flaws, company that provides medical turn control of Detroit Public Schools to the elected board. Unfortunately, yes. But both parties such as the assumption that non- support services to hospitals. Be- But the proposed commission is key; the elected board have come up with a pretty good so- competes are the sole factor of why cause the company spends a great must focus on educational quality and results — or risk lution for our road funding, given all “inventors” would move to states deal of money to train its employ- having more schools closed by the appointed commission. the options available. without noncompetes. It also ig- ees, it is known as producing high- Gov. Snyder has invested more of his political capital A couple things Lansing needs to nores the history of Silicon Valley as quality talent. As such, competitors, pay attention to, though: a technology destination, the avail- rather than investing in their own into helping Detroit become sustainable than any of his 1) As an accountant, I’m aware of ability of venture capital and the ex- training, attempt to poach the com- predecessors. Detroit’s economy, population growth and a governmental accounting rule isting tech companies that give in- pany’s employees. Thus, after in- future rest on fixing schools. which states that one fund may bor- ventors a start before going out on vesting a great deal of money in The coalition, which cut a broad swath through De- row from another, larger fund, as their own. This assumption ignores these employees, they would leave troit’s education, nonprofit, business and civic leadership, long as it returns the money at a other social, economic and demo- for a competitor and end up in the later date. I think Lansing needs to graphic trends of Michigan’s talent same hospital where they were offers an opportunity to build a base of community sup- include in this legislation wording drain. For instance, many non-in- port for continued school reform. that states that this governmental ventors leave Michigan for a myriad See Next Page Detroit – a perfect sports town

the Pistons will end up, once again, sports teams. I don’t know whether for our fans. business quotient mixed in with with a short season and no playoffs. that has been used effectively in our But without keeping those win- their passion to win. There probably isn’t another city city, but it’s a great draw. ning streaks going, as the Pistons Winning is a dollars-and-cents KEITH CRAIN in the country that has as many big- Sports are a big business, and have learned, it is a much tougher proposition for sports teams and time sports franchises, both profes- they deserve the attention that all fight to make a profitable business. usually makes the ultimate differ- Because of our printer deadlines, sional and college, as Detroit. big businesses deserve. I am The Lions can thank a lucrative tele- ence in the bottom line. I don’t know how the MSU fans feel Detroit loves its sports teams, and pleased we will be giving sports vision contract for remaining prof- We aren’t sure how the Tigers are on Monday. But it was a spectacular fans show it every year by spending business a better look with our new itable all these years. That, indeed, going to fare this year and the Red feat for MSU to get to the Final Four. millions of dollars at the gate as well weekly e-newsletter, championed is the exception, not the rule. Wings always promise to be compet- And to think that the Tigers are as buying all the sports parapherna- by Bill Shea. There are not many businesses itive. And the NCAA playoffs always launching their 2015 season at the lia that is available. And with a win- But I am not sure that it would that combine such passion with seem to end with lot of excitement. same time is quite remarkable. We ning team, that amounts to a lot of work in many other cities. Here, we business and consistently come out But the bottom line for these believe that the Red Wings will be shirts and jackets, just to name a few. have the combination of profes- a winner. teams is red or black. competing in their season playoffs One great attraction for econom- sional, college and even high school Certainly motor sports and rac- Let’s keep rooting for our home for the umpteenth time — and, sadly, ic development has always been sports that create great enthusiasm ing have the added element of a big teams. Even if it is big business. 20150406-NEWS--0008,0009-NAT-CCI-CD_-- 4/3/2015 10:43 AM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 9 Detroit should be in autonomous-vehicle driver’s seat

grab the lead now and avoid tearing Ⅲ AVs and AV fleets could tie resi- ence beyond venues directly adja- local OEMs developing AV products things up later. In the technology dential property to Detroit’s enter- cent to parking destinations. This and an interested federal govern- space, asserting early leadership is tainment and commercial centers could get more people downtown ment — are in place. We just need a critical. I could easily envision the while reducing lifestyle costs and and build Detroit’s brand. vision and the right leadership to OTHER VOICES following: traffic in the central city. AVs could Ⅲ Foreign OEMs will come to De- see it through. W. Patrick Dreisig Ⅲ AV expansion east and west also provide a real neighborhood troit. The ability to develop AVs in Leadership should consist of a from the M-1 Rail line. Commuters solution for underserved popula- real-life conditions will drive foreign concentrated group of decision- W. Patrick Dreisig is vice president and need to get to and from the M-1 tions with little or no access to automakers and their supply bases makers with the background and co-chairman of Butzel Long’s global Rail line to reach their destina- transportation while reducing lega- to Detroit. The job pool to support passion to get this done. Dan automotive industry practice group. tions. This could happen by order- cy costs in operating the system. such an influx of new business Gilbert, Mike Ilitch, Mayor Duggan ing up an AV from home to reach The results would be transforma- would grow enormously beyond and empowered representatives of the system and ordering another tive. what is now available. This would AV development in each of the do- os Angeles Mayor Eric when departing the system to Ⅲ Electric AV fleets should be of- fuel the growth of our region and mestic OEMs are choices that im- Garcetti recently said that reach the ultimate destination. fered for transportation within the potentially lead it back to the mediately come to mind. L LA could be the first place in There would be no need to wait for city. Transportation to and from en- prominence it once had. Leadership should assemble now an urban center where au- a bus or park a car to get to and tertainment and sporting venues Everything needed for success — and determine how to get this done. tonomous vehicles could be from the M-1 line. will expand the downtown experi- including political will, financing, The time is now. Ⅲ promptly ordered up like a car service in a real neighborhood and not just in a protected area. My re- sponse: Why not Detroit? This is the perfect time for De- troit to decide to become Motor City 2.0: the worldwide capital of autonomous vehicles. Detroit is already in the early stages of redeveloping its down- town. The state of Michigan al- ready has enacted legislation pro- viding for the testing of AVs. Enormous research and develop- ment investments in AVs have been made by Detroit OEMs. The legal community — including sub- ject-matter experts at firms like IT’S NOT HOW WELL THEY WORK FOR US. mine — are ahead of the curve in developing the legal infrastructure to support a testing “safe zone” in IT’S HOW WELL THEY WORK FOR YOU. the city of Detroit. The infrastructure needed to support AV development could be integrated with ongoing efforts to Eric W. Dietz Shari Krasinski, CTP, CPCP SVP, Regional Manager SVP, SaleS Manager LETTERS Private Client Group Treasury Management From Previous Page    oFlCe    oFlCe    Cell    Cell working, but now competing eriCDieTZ HUnTingTonCoM SHariKraSinSKi HUnTingTonCoM against the company. The imposition of a reasonable two-year law that prevents these employees from competing at the same hospitals where they worked Brian Marshall Brad Norman for the company is a reasonable SVP, #oMMerCial Region Manager SVP, MiCHigan Regional SaleS Manager Middle Markets Auto Finance & Dealer Services way to help prevent damage to its business. In this way, the employee    oFlCe    oFlCe is not prevented from working at    Cell    Cell any hospital, she just cannot turn BrianMarSHall HUnTingTonCoM BraDnorMan HUnTingTonCoM around and compete at the same hospital where she worked for the company. The company, in turn, has a reasonable protection from Terrance B. Pryor Scott Wolffis the investment it made in the em- SVP, Regional Manager SVP, !rea Manager oF MiCHigan ployee. Commercial Real Estate Business Banking But Michigan’s noncompete law goes even further to protect em-    oFlCe    oFlCe ployee interests. The law allows a    Cell    Cell judge to rewrite, or “blue pencil,” a TerrYPrYor HUnTingTonCoM SCoTTWolFlS HUnTingTonCoM noncompete that is unfair. There- fore, if a company were to try to en- force an unfair noncompete, a court could rewrite the unfair provisions in favor of the employee. The current bill before the Michi- gan legislature to restrict noncom- petes is sold as a protection for workers. But in reality, it would only hurt job creators, and that is not good for workers. The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington Brett Miller Bancshares Incorporated. Kitch Law Firm, Detroit 20150406-NEWS--0010-NAT-CCI-CD_-- 4/3/2015 10:45 AM Page 1

10 CRAIN’S DETROIT BUSINESS // April 6, 2015 More cuts threaten Oakland County Mental Health

By Jay Greene “We were able to stave off “We do not anticipate any re- Kinch said Macomb County [email protected] duction in services during this fis- has enrolled 47,000 people in The $29 million deficit that further cuts because we used cal year and without further state Healthy Michigan Medicaid the Oakland County Community Men- our reserves. The problem is or federal reductions will be able past year, which has helped fund tal Health Authority faced two to maintain and strengthen servic- the authority and its 30,000 recip- years ago has been reduced to a we don’t have any more es in 2016,” said Watkins. ients. more manageable $11 million reserves to use.” “We have aggressively worked “We still have 35,000 uninsured deficit heading into fiscal 2016, to enroll consumers into Healthy people that require services, and but more layoffs and provider rate Willie Brooks, Oakland County Community Mental Health Michigan and to maximize tradi- that is a challenge,” he said. “We are cuts could happen if a solution tional Medicaid for persons we fully funded for next year, unless isn’t found soon, Oakland officials gan’s 10 regional mental health au- state,” Brooks said. “We will meet serve,” he said they further cut” Macomb’s pay- said. thorities. Overall, five regional au- with our providers next month to From 2013 through 2015, Watkins ments. Executive Director Willie Brooks thorities received increases and five come up with a plan” to balance the said, the Wayne County authority But Brooks, like Watkins and said he has been meeting with had their budgets cut. authority’s budget. experienced a $60 million reduction Kinch, told Crain’s that Community state legislators, the Michigan De- The three Southeast regional di- Oakland’s service providers in- in state reduced general funds. Health needs to rethink how it di- partment of Community Health, rectors — who service about 62 per- clude Common Ground, Communi- “We have successfully moved vides up funding to the 10 regional mental health providers and fellow cent of the state’s mental health ty Housing Network, Community over general fund (non-Medicaid) authorities. directors in Macomb and Wayne Medicaid recipients — predicted Living Services, Community Net- consumers and uninsured per- “We service 62 percent of the counties seeking a solution for the cuts could lead to service dis- work Services, Easter Seals Michi- sons to Healthy Michigan,” people but are dictated in our fund- Oakland’s funding shortfall for the ruption or reduction to the 140,000 gan, Macomb-Oakland Regional Watkins said. ing by 38 percent of the people,” year that starts Oct. 1. beneficiaries they serve. Center, Oakland Family Services John Kinch, executive director Brooks said. “We were able to stave off further For Oakland County, the cuts led Inc. and Training and Treatment In- with the Macomb County Communi- “We need a joint effort to be cuts because we used our reserves. to a 10 percent reduction in staff last novations. ty Mental Health Authority, said Ma- more effective statewide.” The problem is we don’t have any year, provider rate cuts and some But the directors in Oakland and comb has weathered about $23 mil- Kinch said the three regional au- more reserves to use,” Brooks said. service cuts to non-Medicaid, low- Macomb counties say they are in lion in total cuts the past two years thorities hope to host Community In 2014, Community Health cut income people, Brooks said. The pretty good financial shape for fiscal and also doesn’t expect problems in Health Director Nick Lyon this state funding by an average of authority serves about 27,000 resi- 2016, as long as the state doesn’t 2016. month to further explain their fund- 5 percent, or $48 million, to the re- dents with developmental disabili- make further cuts in rates. “We used our surplus the first ing problem and to at least end the gional mental health authorities in ties, adults with mental illness or Tom Watkins, executive direc- year, and the second year we re- rebasing formula change. Oakland, Wayne and Macomb substance use disorders, and chil- tor of the Detroit Wayne Mental duced provider rates 5 percent to 7 “The problem we have is that counties. dren with serious emotional distur- Health Authority, said belt tight- percent,” Kinch said. “The state Oakland County has some of the The cuts — called rebasing — bances. ening and efficiency improve- took away state dollars, but in a lot sickest people here,” Brooks were part of a multiyear effort that “We are looking at increasing effi- ments the past two years have of cases federal money from said. Ⅲ began in 2010 to move to a new ciency, but we are already one of the paid off. The authority serves Healthy Michigan (Medicaid) made Jay Greene: (313) 446-0325. statewide Medicaid rate for Michi- most efficient authorities in the about 75,000 people. up for it.” Twitter: @jaybgreene

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CRAIN’S DETROIT BUSINESS // April 6, 2015 11 SPECIAL REPORT

KIRK PINHO Reporter’s Notebook WEB: [email protected] TWITTER: @kirkpinhoCDB REAL ESTATE Lunch, hoops and big real estate deal It wasn’t at a fancy restaurant or in a board room that Dennis Bernard realized he had all but sealed the deal for the largest non- recourse commercial mortgage- backed securities loan in Detroit. Ever. Deals building higher What’s a nonrecourse CMBS loan? Well, the short answer is that in this type of loan the lender looks solely to the real estate collateral for More office lease deals top the recovery of amounts due under 100,000 square feet; Detroit “Companies are feeling more the loan; thereby “no recourse” to stabilized today than in the the borrower or guarantors other locations in demand than for certain exceptions. Basical- past few years.” ly, it’s a fixed-income or floating rate security which uses commercial By Kirk Pinho Paul Choukourian, Colliers International real estate loans as collateral. [email protected] But more on that later. ast week, downtown Detroit’s big office First, let’s talk about the layups leasing news came in the form of Ally Fi- leading up to the Compuware Corp. L nancial Inc. signing on to a mammoth building sale. lease — 13 full floors — at One Detroit Center. Yes, those kind of layups. The 320,000-square-foot lease and headquar- The loan closing for the purchase ters relocation just as Dan Gilbert closed on his was at , eating purchase of the landmark lunch from a food truck and then building is the latest exam- shooting hoops with representa- ple of an upward trend in tives of the lender, Greenwich, the number of large local Conn.-based Starwood Capital, in leases totaling more than the Compuware HQ, which was 100,000 square feet. about to be sold to Dan Gilbert’s The Ally lease will also Bedrock Real Estate Services LLC put the squeeze on office and Detroit-based Meridian Health tenants looking for prime, for $142 million. Class A space downtown, “It was a nice day and they ate where large blocks totaling lunch at picnic tables and they were 100,000 square feet are be- looking around saying, ‘This is like coming few and far be- New York, Chicago or San Francis- tween, real estate brokers co.’” said Bernard, founder and said. president of Southfield-based Those include 210,000 Bernard Financial Group Inc. Bernard square feet available at Financial originated the $125 mil- [COSTAR] the 500,000-square-foot lion CMBS debt for the 1.1 million- One Detroit Center. Stroh River Place and vir- square-foot building and an at- tually all of the 100,000- tached 2,600-space parking deck. square-foot Madison Office Building on St. An- Ten national lenders were ap- toine Street. With the Ally deal, there will be [CDB/DAVID HALL] proached, and there were serious about 250,000 square feet freeing up at the Re- Tied for the top spot for local office leases is Meridian Health’s deal for 300,000 square feet in the Compuware offers from five or six of them. naissance Center, as well. headquarters building,which it bought in a joint venture with Bedrock Real Estate Services. So, it’s a big statement to the mar- “With many buildings in Detroit, it’s difficult ket that the large-dollar transaction to put that kind of space together in a contigu- in two separate deals. term for the space they need to grow, reversing a was both nonrecourse and had a ous fashion,” said Fred Liesveld, managing direc- A variety of factors — including some not nec- trend where many corporate tenants were only vote of confidence from big out-of- tor of the local offices of Newmark Grubb Knight essarily related to the bottom line — will come interested in baby steps like short-term leases or town lenders. Frank. “When you’re looking for more than into play when large tenants consider urban ver- small-space deals. “It’s key because five years ago, 100,000 square feet, you have to kind of cast your sus suburban leasing, said Jim Becker, principal Local real estate experts said the industry can you could shoot a rocket down vision to those buildings that can accommodate and managing director thank a whole host of drivers for the overall jump Woodward Avenue and not hit a that, and there’s going to be some in the city and of the Detroit office of in leased space, including lender,” Bernard said. some in the suburbs.” Toronto-based broker- an improved economy, The complex, five-year deal age firm Avison Young. Connect with lists companies having more Big is back closed in 50 days. It involved two “When a tenant Find more of the area’s top confidence in their futures, companies setting up a 50-50 joint- Last year, there were a dozen such large leases, looks at the down- office leases, industrial leases a trend toward consolidat- venture, a city that historically has topping 100,000 square feet, up from five in town market vs. the and building sales on Pages 13, 15 ing multiple office locations not been seen as a good invest- 2013, according to data reported to Crain’s by suburban market, and 16, respectively, and on our into one, and the ripple ef- ment, and three companies — local brokerages. From automotive to financial it’s a $10 to $11 (per searchable database at fects of the recession. Also Quicken, Meridian and Com- services to health care, a wide variety of employ- square foot) difference because of crainsdetroit.com/realestatedeals fading out of fashion are puware — changing their foot- ers had the need for much larger blocks of space. the (city income) tax and other very short-term leases. prints. The purchase by 1000 Web- Of the 2.2 million square feet included in the factors,” he said. “That’s a natural These days, as office leases ward LLC, the entity created for the very large-space leases last year, 730,000 (33 per- deterrent. I think it’s also true that people make are set to expire, it’s more likely to sign a client to deal, closed in December. cent) were downtown spread out in three deals. decisions that are beyond the economics to a longer commitment. And with those several dozen In 2013, the five 100,000 square-foot-plus leas- come downtown.” “When you see what everyone went through strokes of a pen, the non-recourse es totaled just 820,000 square feet, with 240,000 And also fading away in both Detroit and the loan was on the books. square feet (29 percent) of that being downtown ’burbs are tenants too skittish to sign on longer- See OFFICE LEASES, Page 12 20150406-NEWS--0011,0012-NAT-CCI-CD_-- 4/3/2015 11:17 AM Page 2

12 CRAIN’S DETROIT BUSINESS // April 6, 2015 SPECIAL REPORT: REAL ESTATE OFFICE LEASES,from Page 11: Larger deals

in 2009, 2010 and 2011, everyone was just trying to buckle down, do some short-term deals to hold them over — and they are getting out of that stage,” said Paul Choukourian, managing director of the Southfield office of Colliers International Inc. Liesveld said it’s a relief that com- panies are thinking long-term again. “Companies are feeling more sta- bilized today than in the past few years, and as a result, decision-mak- ers are more comfortable committing to longer-term decisions. Companies are beginning to look and plan for five and 10 years out,” he said. But he said that with “plenty of available spaces around town to move into,” there are still a lot of landlords offering tenant incentives to fill up vacant blocks of space. All told, there are 72.3 million square feet of office space in metro Detroit, according to data from Newmark Grubb. Need for construction? Of the office space in the region, 14 million square feet is in the greater downtown Detroit area, which had a 20.7 percent vacancy rate in the first quarter, while 58.4 million square feet is in the suburbs, which also had a 20.7 percent vacancy rate, according to Newmark Grubb. Yet for major, 100,000-square- foot-plus users in metro Detroit, only a handful of contiguous blocks of quality office space are readily available, said Ron Gantner, partner “The challenge is if there is avail- Health’s deal for 300,000 square feet in in the Southfield office of Plante able space in the market,” he said. the Compuware Corp. headquarters Moran Cresa. “We may get to a point where we building, which it purchased in a 50- see some build-to-suit projects or 50 joint venture with Dan Gilbert’s spec buildings. If you’re a 100,000- Bedrock Real Estate Services LLC in De- square-foot user, what is really the cember. Meridian had leased space availability that’s out there?” in two buildings for its 980 employ- In the suburbs, large blocks of ees: at 777 space are available the 2.2 million- Woodward Ave. and the Gilbert- square-foot owned building. and the 1 million-square-foot Galleria This should be another year of a Officentre in Southfield, for example. significant number of sizable office Sam Munaco, president of the re- leases, Choukourian said. gional office of Chicago-based Ad- “There are not a ton of compa- vocate Commercial Real Estate Advi- nies over 100,000 square feet in this sors LLC, noted that companies are market, but a lot of the ones that are looking to consolidate multiple lo- (that big) are looking around,” he cations under one roof. said. Ⅲ WAYNE STATE UNIVERSITY For example, tied for the largest Kirk Pinho: (313) 446-0412 lease of 2014 is Detroit-based Meridian Twitter: @kirkpinhoCDB MBA OPEN HOUSE Office vacancy rates in metro Detroit Rates, first quarter 2015 SOUTHFIELD DOWNTOWN Size: 17.2 million square feet 4 to 7 p.m. • MBA Size: 12.8 million square feet Vacancy rate: 24.3 percent Wednesday, April 22 • MS in Accounting Vacancy rate: 20 percent McGregor Memorial • MS in Taxation AUBURN HILLS TROY Conference Center • Grad CertiÀcate in Business Size: 2.4 million square feet Size: 13.3 million square feet Vacancy rate: 14.6 percent Vacancy rate: 24.4 percent

GMAT WAIVER TO QUALIFIED APPLICANTS BLOOMFIELD HILLS Size: 3 million square feet ALL SUBURBS Vacancy rate: 7.2 percent Size: 58.4 million square feet FARMINGTON HILLS Vacancy rate: 20.7 percent Size: 6 million square feet Register today at business.wayne.edu. Vacancy rate: 19.6 percent SOUTHEAST MICHIGAN LIVONIA Size: 72.3 million square feet Size: 3.1 million square feet School of Business Vacancy rate: 20.7 percent Vacancy rate: 15.9 percent Source: Newmark Grubb Knight Frank 20150406-NEWS--0013-NAT-CCI-CD_-- 4/3/2015 11:19 AM Page 1

CRAIN’S DETROIT BUSINESS // April 6, 2015 13 SPECIAL REPORT: REAL ESTATE CRAIN'S LIST: OFFICE LEASES Ranked by square feet Rank Building Owner, owner city Tenant Broker Square feet B Compuware Corp. headquarters, Detroit Bedrock Real Estate Services Quicken Loans Inc. NA 300,000 1 LLC, Detroit Compuware Corp. headquarters, Detroit Bedrock Real Estate Services Meridian Health NA 300,000 1 LLC, Detroit Clark Street Cross Dock, Detroit General Development, Group LLC DTZ 189,960 3 Southfield C Haggerty Corridor Corporate Park, Novi Northern Equities Group, Harman Becker Automotive Savills Studley 188,042 4 Farmington HiIls Systems C Allied Center Building, Southfield Redico LLC, Southfield Blue Care Network of Redico LLC and DTZ 180,291 5 Michigan Metro Office Complex, Southfield American Landmark Properties Federal Mogul CBRE Inc. 178,655 6 Corp., Stokie, Ill. C Fairlane Business Park, Allen Park Griffin Capital, El Segundo, Roush Transwestern 169,200 7 Calif. [PHOTOS BY COSTAR GROUP] Travelers Tower II in Southfield, owned Northern Equities Park, Novi Savills Studley, New York City Harman, Beckes Automotive Friedman Integrated Real 165,000 8 Systems Estate Solutions LLC by New YorkCity-based Time Equities, The Wickfield Center, Ann Arbor Wickfield Properties LLC, Ann Truven Health Analytics CBRE Inc. 134,927 has Accretive Health as a tenant. 9 Arbor C Compuware Corp. headquarters, Detroit Bedrock Real Estate Services Compuware Corp. Bedrock Management 130,000 10 LLC, Detroit Services LLC C 11 Executive Hills North, Auburn Hills Peter Burton, Southfield Chrysler Group LLC DTZ and Core Partners 127,700 12 Travelers Tower II, Southfield Time Equities, New York City Accretive Health CBRE Inc. 107,572 Federal Reserve Building, Detroit Bedrock Real Estate Services Detroit Free Press & The Bedrock Management 86,000 13 LLC, Detroit Detroit News Services and CBRE Inc. 14 12501 Grand River Ave., Brighton Township Osprey Ltd., Brighton Bryllan LLC Signature Associates 85,939 C Omni Officentre, Southfield Nemer Group, Southfield Blue Cross Blue Shield of DTZ and Nemer Property 80,440 15 Michigan Group Inc. C One Detroit Center , Detroit iStar Financial, New York City Clark Hill PLC Advocate Commercial Real 76,335 Estate Advisors of Michigan 16 LLC and Signature Associates B , Southfield Redico LLC, Southfield Sun Communities Operating Redico LLC 71,513 17 Limited Partnership C Seven Mile Crossing, Livonia U.S. National Bank Association, Workforce Software Friedman Integrated Real 71,298 18 Ambler, Pa. Estate Solutions LLC C 19 New Center One, Detroit Farbman Group, Southfield Henry Ford Farbman Group 67,476 C American Center in Southfield , owned Southfield Crossing II, Southfield LNR Properties Inc., Miami Auto Club Group Plante Moran Cresa and 66,195 20 Beach, Fla. Transwestern by Redico, houses Sun Communities. , Detroit Bedrock Real Estate Services Fifth Third Bank of Eastern Bedrock Management 62,000 21 LLC, Detroit Michigan Services LLC and CBRE Inc. C North Troy Corporate Park, Troy Friedman Integrated Real Quicken Loans Inc. Friedman Integrated Real 59,740 Estate Solutions LLC, Estate Solutions LLC and 22 Farmington HIlls Bedrock Real Estate Solutions LLC C 23 Troy Technology Park, Troy The Hayman Cos., Troy Raytheon The Hayman Cos. 59,472 C 2367 E. Walton Blvd., Auburn Hills Singer Investments, Bloomfield Chrysler Group LLC DTZ 55,350 24 Hills C North Troy Corporate Park, Troy Friedman Integrated Real Benesys Inc. Friedman Integrated Real 53,770 25 Estate Solutions LLC, Estate Solutions LLC and Farmington HIlls Jones Lang LaSalle C One Kennedy Square, Detroit Redico LLC, Southfield Marketing Associates LLC Redico LLC and Advocate 51,402 26 Commercial Real Estate Advisors of Michigan LLC New Center One in Detroit is owned by 27 One Detroit Center, Detroit iStar Financial, New York City McCann-Erickson USA Inc. Signature Associates 49,376 Southfield-based Farbman Group. 150 W. Jefferson Ave., Detroit Piedmont Office Realty Trust, CW Professional Services Mohr Partners and 48,915 28 Johns Creek, Ga. Transwestern B 29 Oakland Towne Square, Southfield Redico LLC, Southfield Verizon Wireless Redico LLC and CBRE Inc. 48,210 Oakland Office Commons, Troy Stuart Frankel Development Magna Powertrain of America, Signature Associates 47,897 30 Co., Troy Inc. 31 Seven Mile Crossing III, Livonia Merrill Lynch, New York City Siemens Real Estate CBRE Inc. 46,564 D Chicago Research Center, Troy John R. Spring Service Inc., Gallagher-Kaiser Signature Associates 46,500 32 Troy C First Center Office Plaza, Southfield Corp., United Healthcare Jones Lang LaSalle and Core 45,366 33 Southfield Partners 34 Fairlane Business Park, Allen Park Ford Motor Land, Dearborn PSCU Financial Services CBRE Inc. 45,138 TCF Michigan headquarters, Livonia TCF National Bank, Wayzata, U.S. Ecology Signature Associates 44,495 35 Minn. C Freeway Industrial Park, Farmington Hills LNR Properties Inc., Miami Iron Mountain Jones Lang LaSalle and 42,930 36 Beach, Fla. Transwestern D 37 Cambridge Crossings, Troy Robert Salsberry, Tecumseh The Woodbridge Group Signature Associates 42,000 Metro West Technology Park, Plymouth Township Genoa Development Co., Shiloh Industries, Inc. Signature Associates 40,000 38 Bloomfield Hills

List is based on information from CoStar Group Inc., CPIX, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information.

B Lease renewal plus expansion. C Lease renewal. D Expansion. 150 W.Jefferson Ave. is owned by Pied- LIST RESEARCHED BY KIRK PINHO mont Office Realty Trust ofJohns Creek, Ga. 20150406-NEWS--0014,0015-NAT-CCI-CD_-- 4/3/2015 11:18 AM Page 1

14 CRAIN’S DETROIT BUSINESS // April 6, 2015 SPECIAL REPORT: REAL ESTATE Space crunch prompts spec projects for local developers

By Kirk Pinho Associates Inc. space came online and more than [email protected] Overall, the vacancy rate for the 2 million more square feet is on the The rebound of the automotive in- region was 7.7 percent in the first way by the third quarter, with over dustry since the recession is one of quarter and 2.9 million square feet half of that (1.3 million square feet) the triggers driving local developers was absorbed. In 2014, 6.1 million being in southern Oakland County, to begin construction on — or start square feet was leased, up from 5.7 according to Newmark Grubb. planning — several new speculative million square feet in 2013, accord- Gary Weisman, principal of Gen- industrial projects in metro Detroit. ing to Newmark Grubb. eral Development, said his South- Facing a dearth of modern space, Scarcity is also bumping up lease field-based company’s first specula- companies like General Develop- rates, brokers said, which is good tive construction since the ment Co., Novi-based Amson Dembs news for developers. recession will be a 52,000-square- Development Inc. and Troy-based The lack of available space and foot building in the Novi Corporate Stuart Frankel Development Co. all increase in demand for all industrial Campus at 12 Mile Road and West have new speculative industrial product types — warehouse/distri- Park Drive co-developed with projects — which are projects con- bution, general light industrial and Amson Dembs. Groundbreaking is structed without a tenant lined up high-tech space — is causing rents in the next 30 days. — in the pipeline. to increase, which is making financ- Ryan Dembs, principal with The reason? The existing supply ing for projects easier to obtain, said Amson Dembs, said his company’s is nearly full. Dan Labes, senior managing direc- other two spec industrial projects Areas like southeast Oakland tor in Newmark Grubb’s Farming- are a completed 110,000-square- County and Macomb County have ton Hills office. foot building in Lyon Township industrial vacancy below 5 percent, “Demand remains relatively high with a development cost of $8 mil- according to the Southfield office of because our vacancy rates are at an lion and a 75,000-square-foot build- Newmark Grubb Knight Frank. all-time low. As rental rates rise, de- ing in the Beck North Corporate “Of the existing inventory that re- velopers can now afford to build a Park that is expected to cost be- Luxury suites available: mains now, that 5 percent, it almost spec building, and interest rates are tween $6 million and $6.5 million to should be taken out of the pool” be- still at 40-year lows,” he said. build and be complete by June. Fri, Apr. 10 – Pistons vs. Pacers at 7:30 p.m. cause the space is so antiquated, In the fourth quarter last year and “My company did two spec said Mark Woods, agent/broker in the first quarter this year, more than builds last year, and both were Sun, Apr. 12 – Pistons vs. Hornets at 3:30 p.m. the Southfield office of Signature 600,000 square feet of new industrial moved very quickly,” he said. The Wed, June 10 – Bette Midler at 6:30 p.m. two buildings in the Beck North Corporate Park were leased to Fujit- Sun, June 14 – Rush at 6 p.m. su Ten Corp. of America and Cre- form Corp. Darren Frankel, principal of Stu- art Frankel Development, said his company is constructing a 300,000- square-foot spec building at the 150-acre Oakland Park develop- ment in Highland Park at I-75 and the Davison Freeway. It could open in three to five months once a user is identified and brownfield tax credits are secured, Frankel said. In January, the RACER Trust an- nounced that 25 acres of vacant Detroit land was sold to General Development and Farmington Hills-based Friedman Integrated Real Estate Solutions LLC for a 190,000-square-foot logistics center employing more than 200 people in the Clark Street Technology Park. “The market has been primed for speculative buildings for probably two years now, but I think the cau- tious nature of developers and SUITES START AT $999 lenders has played a large role in not speculating as quickly in a re- Including: VIP parking, private restrooms, covery market as in previous recov- and up to $600 in catering credits! ery markets,” Weisman said. Kevin Hegg, vice president in the Canton Township office of Ashley Capital, said there is partic- ularly a lack of large quality in- dustrial space over 200,000 square feet. “The basic gap is that when the economy turned down, rents fell, but the materials costs did not fall,” he said. “The gap (between rents and Pistons.com/premium building materials costs) is starting to (248) 377-8477 shrink. It’s getting within reach of jus- tifying moving forward.” Ⅲ Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDBS 20150406-NEWS--0014,0015-NAT-CCI-CD_-- 4/3/2015 11:19 AM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 15 SPECIAL REPORT: REAL ESTATE CRAIN'S LIST: INDUSTRIAL LEASES Ranked by square feet Rank Building Owner, owner city Tenant Broker Square feet 128 Spring St. (former Visteon Plant), Ypsilanti Angstrom Capital Holdings LLC, Spring Road LLC Signature Associates 600,000 1 Taylor B 2 16630 Southfiled Road, Allen Park Time Equities, New York City Roush Industries Colliers International Inc. 586,723 B 3 4815 Cabot St., Detroit Industrial Realty Group, Los Angeles Cabot Street Real Estate LLC Signature Associates 421,794 C 4 Plymouth Road Technical Center, Livonia Ashley Capital, Canton Twp. Roush Enterprises Inc. Ashley Capital 418,451 5 38481 Huron River Drive, Romulus Ashley Capital, Canton Twp. W.F. Whelan Co. CBRE Inc., Colliers International Inc. 347,532 B 6 6331 Schooner Drive, Van Buren Twp DeMattia Group, Plymouth Constellium Automotive USA LLC Colliers International Inc. 320,680 B 7 38481 Huron River Drive, Romulus Home Depot, Atlanta Home Depot Colliers International Inc. 285,400 B 8 7525 Cogswell Road, Romulus Welsh Investments, Minneapolis Archway Marketing Services Colliers International Inc. 285,200 Oakland Technology Park, Auburn Hills General Development Co. LLC, Faurecia USA Holdings Inc. Colliers International Inc. 278,000 9 Southfield 10 Cardinal Health Distribution Center, Detroit Kirco Distribution, Troy Cardinal Health CBRE Inc. 275,951 B 6703 Haggerty Road, Van Buren Kojaian Management Corp., Archway Marketing Services Colliers International Inc. 250,800 11 Bloomfield Hills C 12 Orion Commerce Center, Lake Orion Ashley Capital, Canton Twp. Fuyao Automotive N.A. Inc. Signature Associates 247,936 B Brownstown Business Center, Brownstown Twp. Ashley Capital, Canton Twp. The Butcher Engineering Enterprises Ashley Capital 236,146 13 Ltd. B 14 Romulus Business Center, Romulus Ashley Capital, Canton Twp. Plastipak Packaging Inc. Signature Associates 225,765 15 6501 E. Nevada, Detroit Gary Fish, Detroit Integrated Manufacturing CBRE Inc. 223,250 B 16 Plymouth Road Technical Center, Livonia Ashley Capital, Canton Twp. NYX Inc. Ashley Capital 215,621 B 17 Metro Commerce, Wayne Farbman Group, Southfield PAE Applied Technologies LLC Farbman 207,724 7408 Metropolitan Parkway, Sterling Heights American Realty Capital Global Trust Kuka Systems North America Signature Associates 200,000 18 Inc., New York City 2860 Clark St., Detroit General Development Co. LLC, Chrysler Group LLC DTZ 190,000 19 Southfield 20 Saleen Building, Troy Glen Dixon, Fort Wayne QEK Global Solutions CBRE Inc. 183,000 B 21 225 South Industrial, Saline Core Partners, Bingham Farms JAC Products Signature Associates 179,285 22 100 Brighton Interior Drive, Brighton Granite Reit Americas Inc., Toronto TG Fluid Systems USA Corp. Lee Associates, Signature Associates 178,650 B 23 20495 - 20501 Pennsylvania Road, Brownstown Twp. Ashley Capital, Canton Twp. Cabot Street Real Estate LLC Signature Associates 158,736 D 24 Romulus Business Center, Romulus Ashley Capital, Canton Twp. Progressive Distribution Centers Inc. Signature Associates 158,154 25 275 Rex Boulevard, Auburn Hills Portfolio Real Estate, Auburn Hills Concorde Manufacturing CBRE Inc. 151,200 26 Cherry Creek Corporate Park, Shelby Twp. Redico LLC, Southfield Transform Automotive LLC Signature Associates 150,116 B 27 23400 Haggerty Road, Farmington Hills Diamond Moba, Weston, Fla. Diamond Moba Plante Moran Cresa 142,754 B 28 Plymouth Road Technical Center, Livonia Ashley Capital, Canton Packaging Corp. of America Ashley Capital 139,314 B 11820 Globe Street, Livonia The Grossman Co., Phoenix Motor Engineering & Signature Associates, Burger & Co. 137,750 29 Manufacturing D 30 Lyon Business Center, Lyon Township Ashley Capital, Canton Twp. Hirata Corp. of America Signature Associates 133,848 9071 & 9075 Haggerty Road, Plymouth Stag Industrial Management LLC, Mobis North America CBRE Inc. 129,500 31 Boston 32 Brownstown Business Center, Brownstown Township Ashley Capital, Canton Twp. ThyssenKrupp Colliers International Inc. 128,269 B 33 Lyon Business Center, Lyon Township Ashley Capital, Canton Twp. Ferguson Enterprises Inc. Ashley Capital 127,533 B 34 Plymouth Road Technical Center, Livonia Ashley Capital, Canton Twp. Virginia Tile Co. Signature Associates 127,218 Airport Distribution Center, Romulus Dalfen America Corp., Westmount, Nippon Express USA Inc Newmark Grubb Knight Frank, Colliers 123,750 35 Quebec 9075 Haggerty, Plymouth Stag Industrial Management LLC, Whelan Co. CBRE Inc. 120,085 36 Boston Oakland Technology Park, Auburn Hills General Development Co. LLC, Atlas Copco Colliers International Inc. 120,000 37 Southfield B Pinnacle Corporate Center, Auburn Hills Viking-Auburn Development Co., Grupo Antolin North America Inc. Signature Associates, Plante Moran Cresa 111,798 38 Troy B 39 Plymouth Road Technical Center, Livonia Ashley Capital, Canton Twp. NYX Inc. Ashley Capital 108,868 13500 Huron St., Taylor MYM 13500 JC Property Owner LLC, United States Postal Service Signature Associates 108,850 40 East Lansing B Metro Airport Center, Romulus Detroit Metro Airport Center LLC, Expeditors International Colliers International Inc. 105,169 41 Romulus D 42 Warren Business Center, Warren Ashley Capital, Canton Twp. Faurecia Automotive Seating LLC Colliers International; L. Mason Capitani 105,168 Van Buren Business Center, Van Buren Kojaian Management Corp., Denso International CBRE Inc. 103,047 43 Bloomfield Hills 44 1750 Porter, Detroit Neal MacLean, Pleasant Ridge American Lightweight CBRE Inc. 100,740 45 5949 Jackson Road, Ann Arbor Kevin Griffendorf, Ann Arbor Edwards Brothers Malloy Inc Colliers International Inc. 100,452

List is based on information from CoStar Group Inc., CPIX, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information.

B Lease renewal. C Lease renewal plus expansion. D New lease.

LIST RESEARCHED BY KIRK PINHO 20150406-NEWS--0016,0017-NAT-CCI-CD_-- 4/3/2015 11:20 AM Page 1

16 CRAIN’S DETROIT BUSINESS // April 6, 2015 SPECIAL REPORT: REAL ESTATE CRAIN'S LIST: LOCAL SALES Ranked by price

Rank Building Buyer Seller Broker/advisers 1 Southfield Town Center, Southfield 601 W. Cos., New York City Blackstone Group LP, New York City HFF Inc., Farbman Group

The Mall at Partridge Creek, Fairlane Town Center, Starwood Capital Partners Inc., Taubman Centers Inc., Bloomfield Eastdil Secured LLC 2 Clinton Township, Dearborn Greenwich, Conn. Hills

Compuware Corp. headquarters, Detroit Bedrock Real Estate Services LLC, Compuware Corp., Detroit Bedrock Management Services LL 3 Meridian Health, Detroit

Pines of Cloverlane, Hamptons of Cloverlane, Hayman Co., Belfor Holdings Sterling Equities Inc., New York City Hendricks-Berkadia Apartment R 4 Pittsfield Township Inc., Troy, Birmingham Estate Advisors

Victor Corporate Center, Livonia American Realty Capital LLC, Kojaian Management Corp., CBRE Inc. 5 New York City Southfield 6 Valley Ranch Apartments, Ann Arbor Capreit Acquistions, Toronto McMullen Properties, Ann Arbor CBRE Inc.

Robbins Executive Park, Troy Physicians Realty Trust, Wayne State University Physicians Newmark Grubb Knight Frank 7 Milwaukee Group, Detroit

1833 Frenchtown Center Drive, Monroe Gladstone Commercial Corp., Spirit Realty Capital, Scottsdale, Ariz. Jones Lang LaSalle 8 McLean, Va.

Fairlane Center, Allen Park Lormax Stern Development Co., Archon Group, Irvin, Texas Lormax Stern Development Co. 9 West Bloomfield Township CBRE Inc. [PHOTOS BY COSTAR GROUP] Southfield Town Center,which covers Oakland Plaza, Troy RAIT Financial Trust, Urban Retail Properties Co., Chicago CBRE Inc. 2.2 million square feet,was sold for 10 Philadelphia $177.5 million to New York’s 601W. Cos. North Troy Corporate Park building, Troy , Troy Friedman Integrated Real Estate Friedman Integrated Real Estate 11 Solutions LLC, Farmington Hills Solutions LLC 12 Eagles Landing of Troy Apartments, Troy Kaftan Communities, Southfield BDB Properties, Auburn Hills Fourmidable Group Inc.

Oakland Square, Troy RAIT Financial Trust, Urban Retail Properties Co., Chicago CBRE Inc. 13 Philadelphia

3000 High Meadow Circle, Auburn Hills Hirotec America Inc., Auburn General Development Co., Southfield Plante Moran Cresa 14 Hills

1250 Brown Road, Auburn Hills Randal Bellestri, Naples, Fla. Shamrock Holdings Inc., Burbank, Signature Associates 15 Calif. Victor Corporate Center in Livonia was Northeast Corporate Center, Ann Arbor Oxford Cos., Ann Arbor CWCapital Asset Management LLC, CBRE Inc. 16 Bethesda, Md. purchased by American Realty Capital.

Long Lake Crossing Campus, Continental Automotive Sovereign Partners, New York Piedmont Office Realty Trust, Johns Transwestern 17 Building, Troy City Creek, Ga.

Old , Detroit 600 Randolph SN LLC, New York Old Wayne County Building LP, Jones Lang LaSalle, Klugman 18 City Southfield Commercial Properties

Ferndale Plaza, Ferndale A.F. Jonna Development LLC, Model Properties, Flushing Signature Associates 19 Bloomfield Hills

Kercheval Place, Gross Pointe Versa Development, Southfield Lormax Stern Development Co., West Mid-America Real Estate Corp. 20 Bloomfield Township

Palladium Building, Birmingham A.F. Jonna Development LLC, The Related Cos., New York City Farbman Group, Mid-America Re 21 Bloomfield Hills Estate Corp.

Premier Medical Office Building , Novi Griffin-American Healthcare American Healthcare Investors, Friedman Integrated Real Estate 22 REIT, Irvine, Calif. Irvine, Calif. Solutions LLC, Paragon Corporat Realty Services Inc. 22 Unity Studio site, Allen Park Time Equities Inc., New York City City of Allen Park CBRE Inc.

42400 Merrill Road, Sterling Heights Mayco International LLC, Gladstone Commercial Corp., Newmark Grubb Knight Frank 24 Sterling Heights McLean, Va.

Airport Distribution Center, Romulus Dalfan America Corp., Westcore Properties, San Diego Newmark Grubb Knight Frank, 25 Westmount, Quebec Jones Lang LaSalle

Grand River Plaza, Howell Northeast Capital Group, DDR Corp., Beachwood, Ohio Mid-America Real Estate Corp. 26 Brooklyn, New York The Old Wayne County Building in Detroit was bought for $13.4 million. 1886 West Auburn Road, Rochester Hills American Realty Capital JDB Property Management, CBRE Inc. 27 Healthcare Trust, New York City Birmingham

1 Dauch Drive, Detroit Industrial Realty Group, Los American Axle & Manufacturing, Colliers International Inc. 28 Angeles Detroit 28 Willits Building, Birmingham Seligman Group, Southfield The Related Cos., New York City Mid-America Real Estate Corp.

List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain in a transaction, but in some cases brokers may have been omitted.

LIST RESEARCHED BY KIRK PINHO

Birmingham’s Palladium Building is now owned by A.F.Jonna Development LLC. 20150406-NEWS--0016,0017-NAT-CCI-CD_-- 4/3/2015 11:13 AM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 17 SPECIAL REPORT: REAL ESTATE CRAIN'S LIST: LARGEST GENERAL CONTRACTORS Spotlight: Contractors Ranked by 2014 revenue Construction surge Revenue Value of new contracts Company ($000,000) ($000,000) Address Top local executive(s) 2014/2013/2012 2014/2013 boosted revenue Rank Phone; website Walbridge Aldinger Co. John Rakolta Jr. $1,550.0 $1,436.5 The combined revenue of the top 10 1 777 Woodward Ave., Suite 300, Detroit 48226 chairman and CEO $1,307.0 $1,325.0 general contractors on the Crain’s list (313) 963-8000; www.walbridge.com $1,291.1 has quadrupled since 1986, climbing Barton Malow Co. Ryan Maibach $1,498.0 $1,803.3 from $1.56 billion to $6.28 billion. 2 26500 American Drive, Southfield 48034 president $1,145.5 $524.8 No. 1 on the list in 1986 was Barton (248) 436-5512; www.bartonmalow.com $1,005.9 B Malow Co., at $614.4 million in rev- Belfor Holdings Inc. Sheldon Yellen $1,453.9 $1,480.3 enue. The top company on today’s list, 3 185 Oakland Ave., Suite 150, Birmingham 48009 CEO $1,313.8 $1,260.4 (248) 594-1144; www.belfor.com $1,261.0 Walbridge Aldinger Co., comes in at Walsh Construction Co. Sam Bahou $350.1 $172.0 $1.55 billion a 152 percent increase in 4 3011 W. Grand Blvd., Suite 2300, Detroit 48202 business group leader $176.1 $420.2 revenue between the two. (313) 873-6600; www.walshgroup.com $126.2 There are many reasons for the in- Commercial Contracting Group Inc. William Pettibone $321.0 $225.0 crease in revenue of the top compa- 5 4260 N. Atlantic Blvd., Auburn Hills 48326 chairman $285.0 $204.0 nies over the years, including the rise (248) 209-0500; www.cccnetwork.com $304.0 in the cost of materials and labor to be Aristeo Construction Co. Joseph Aristeo $315.6 $353.6 passed on to the customer. But among president $228.0 6 12811 Farmington Road, Livonia 48150 $221.0 the biggest factors was a surge in con- (734) 427-9111; www.aristeo.com $206.0 struction in Michigan around 1996, Roncelli Inc. Gary Roncelli $247.0 $145.0 7 6471 Metropolitan Parkway, Sterling Heights 48312 chairman and CEO $223.0 $247.0 due to contracts with the Detroit 3 au- (586) 264-2060; www.roncelli-inc.com Thomas Wickersham $185.0 tomakers, hospitals, K-12 schools and president and COO universities. The construction of Com- Black & Veatch James Doull $214.1 $44.9 erica Park, Ford Field and the casinos 8 3550 Green Court, Ann Arbor 48105 Sr. vice president $192.8 $23.5 also factored in. (734) 665-1000; www.bv.com $171.0 In addition, many contractors have Frank Venegas Jr. NA Ideal Contracting $191.6 added services and expanded their 9 2525 Clark St., Detroit 48209 chairman and CEO $231.0 $151.8 (313) 849-0000; www.idealcontracting.com $182.0 reach geographically. Take the top two George W. Auch Co. Vincent DeLeonardis $140.3 $166.3 on today’s list, for example. 10 735 S. Paddock St., Pontiac 48341 president and CEO $134.1 $169.8 Walbridge Aldinger in 1995 signed (248) 334-2000; www.auchconstruction.com $122.7 an agreement with Brown & Root Inc., a Sachse Construction and Development Co. LLC Todd Sachse $135.2 $207.5 Houston-based contractor, to form a 11 1528 Woodward Ave., Suite 600, Detroit 48226 CEO $138.0 $158.6 separate entity to provide design and (313) 481-8200; www.sachse.net Steven Berlage $115.4 president and COO construction services for automakers outside North America. Today, its work Turner Construction Co. David Kelly $122.9 $136.3 535 Griswold St., Suite 1525, Detroit 48226 business manager $200.3 $195.1 can be found all over the world, in- 12 (313) 596-0500; $282.0 cluding South America and the Middle www.turnerconstruction.com/michigan East. Its services have expanded to in- DeMaria Joseph DeMaria Jr. $100.1 $131.8 clude construction management, vir- 13 45500 Grand River Ave., Novi 48374-1305 president $101.6 $80.1 tual design and digital mapping. (248) 348-8710; www.demariabuild.com $122.1 Barton-Malow has expanded to take Rudolph/Libbe Inc. Kenneth Swartz $89.0 NA on projects throughout the country, 14 47461 Clipper St., Plymouth 48170 vice president and general $61.4 NA (734) 455-0600; www.rudolphlibbe.com manager Michigan $31.1 including an office in Atlanta in 1986, a operations mid-Atlantic office in 1989, a full-serv- FutureNet Group Inc. Perry Mehta $85.0 $74.0 ice Phoenix office in 1999 and an Ohio 15 12801 Auburn St., Detroit 48223 president and CEO $100.0 $68.0 office in the late 1990s. Among its more (313) 544-7117; www.futurenetgroup.com $65.0 notable projects include Camden T.H. Marsh Ryan Marsh $80.5 NA Yards, the stadium of the Baltimore Ori- 32121 Woodward Ave., Ste. 300, president and CEO $71.0 NA oles and the Georgia Dome and a 16 Royal Oak 48073 $64.0 (248) 586-4130; www.thmarsh.com Shriner’s hospital in Florida. Its servic- Frank Rewold and Son Inc. Frank Rewold $70.1 $104.2 es have expanded to include program 17 333 E. Second St., Rochester 48307 president and CEO $60.1 $58.1 management, equipment installation (248) 651-7242; www.frankrewold.com $65.7 and 3-D building modeling. The Colasanti Cos. Christopher Colasanti $66.9 $134.8 Doug Maibach, excecutive vice 18 24500 Wood Court, Macomb Twp. 48042 president $69.7 NA president at Barton Malow, attributes (586) 598-9700; www.colasantigroup.com Angelo Colasanti $102.4 its revenue growth to the number of CEO projects and size of projects, particu- C.E. Gleeson Constructors Inc. Charles Gleeson II $65.9 $72.0 19 984 Livernois, Troy 48083 president and CEO $54.7 $57.0 larly in industrial and manufacturing (248) 647-5500; www.gleesonconstructors.com $47.0 industries. Kasco Inc. Michael Engle $61.9 $65.0 Maibach said that demand and 20 226 E. Hudson St., Royal Oak 48067 vice president $45.2 NA competition were also factors in rev- (248) 547-1210; www.kascoinc.com $47.6 enue growth in the industry, especially The Christman Co. Ronald Staley, FAPT $61.1 $445.0 as colleges and universities upgraded The , 3011 W. Grand Blvd., Detroit senior vice president, $15.6 $550.0 housing and research facilities in an ef- 21 48202-3030 Southeast Michigan $60.9 (313) 908-6060; www.christmanco.com operations fort to attract students. Some of its sig- nature projects include helping in the This list of general contractors is a compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not redevelopment of the Daytona Interna- a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with tional Speedway, expanding and reno- headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. vating the football stadiums for the University of Michigan and Michigan B In 2014, 92 percent of revenue for Belfor, a disaster recovery firm, was from construction management. The figure was 95 percent in 2013 and 2012. State University, and building automo- tive facilities which he described as LIST RESEARCHED BY SONYA D. HILL “not real glamorous … but rewarding.” — Sonya D.Hill

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18 CRAIN’S DETROIT BUSINESS // April 6, 2015 SPECIAL REPORT: REAL ESTATE Projects to watch around metro Detroit Laurel Park Place owner plans new look

Laurel Park Place is getting a new look. CBL & Associates Properties Inc. (NYSE:CBL) last week announced several planned updates to the Livonia shopping center. The Chat- tanooga, Tenn.-based real estate in- vestment trust did not disclose the exact amount it plans to invest in the renovation project, scheduled for completion by November. Changes planned for the nearly 500,000-square-foot mall include new seating, carpeting, tile and light fixtures, reconfigured ceilings to allow more natural sunlight and a refreshed Laurel Park Place logo atop the main entrance along Six Mile Road. [CBL & ASSOCIATES PROPERTIES INC.] New furniture is planned for the An artist's rendering shows the potential new look inside Laurel Park Place in Livonia. common area, and some mall rest- rooms will also get new tile flooring, woman, and features about 70 spe- fore the end of the year, mall offi- fixtures and refinishing, mall offi- cialty stores, including Chico’s, cials said. cials said in a news release. Coldwater Creek, Francesca’s, John- In addition to Laurel Park Place, Located at I-275 and Six Mile ston & Murphy, Jos. A. Bank, Nine CBL owns four other Michigan Road, Laurel Park Place is anchored West, Rogers & Hollands Jewelers, properties: Fashion Square Mall, by department stores Carson’s Talbots, Teavana and White Saginaw; The Lakes Mall, and Von Maur. House | Black Market. Muskegon; Meridian Mall, Okemos; The mall was 95 percent occu- European fashion retailer H&M and Midland Mall, Midland. pied in 2014, according to a spokes- is expected to open at the center be- — Sherri Welch

[MCINTOSH PORIS ASSOCIATES] Groundbreaking for DuCharme Place in Detroit is set forJune 11. Construction on DuCharme Place to begin in June

Construction on the $42 million Franklin Wright Village. fitness center, rooftop gardens, a DuCharme Place apartment devel- A groundbreaking is scheduled business center, a swimming pool opment near Lafayette Park is for June 11, according to Mark Ben- and around-the-clock security, ac- scheduled to begin in June, and the nett, managing director of Birm- cording to a news release. Some development will begin accepting ingham-based MJBennett PLLC, units will have private balconies or residents in its 185 planned units which is providing legal and advi- terraces, and fireplaces. in the first quarter of next year. sory services to Cohen on the de- Project funding comes from a Plans call for 12 studio units, 66 velopment. U.S. Department of Housing and Urban one-bedroom and 107 two-bed- Located at 1544 E. Lafayette Development mortgage, state equity room apartments. DuCharme Blvd., the four-building develop- and brownfield tax credits, among Place is being developed by ment will have apartments ranging other sources. DuCharme Place LLC, the co-manag- from 500 to more than 1,000 Detroit-based Sachse Construc- ing member of which is Walter square feet that will rent from $900 tion is the general contractor on Cohen of 21st Century Holdings, who to $1,800 per month. the project. Birmingham-based has been behind other city devel- The 3-acre project site is vacant McIntosh Poris Associates is the opments like Stroh River Place, land. project architect. University Club, and There will be on-site parking, a — Kirk Pinho 20150406-NEWS--0018,0019-NAT-CCI-CD_-- 4/3/2015 12:13 PM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 19 SPECIAL REPORT: REAL ESTATE

Is Detroit ready

for an avant- 7 garde building T A t downtown? T 1 Opinions about building architecture can generate the same kinds of visceral reactions in people as a modern art sculpture or painting. Is the swooped metal, avant-garde look [ROCK VENTURES] (rendering, right) proposed in a concept for a Concept for Hudson’s site redevelopment in Detroit.Architect: Hamil- redevelopment of Detroit’s Hudson site the ton Anderson Associates, right look? Time will tell, but it’s what Dan Shop Architects P.C. Gilbert and Rock Ventures released as a possi- ble look for the 2-acre gaping slot on Wood- ward Avenue. The site is being designed by Detroit-based [CRAIN’S ARCHIVES] Hamilton Anderson Associates and New York Eli & Edythe Broad Art Museum, City-based Shop Architects PC, which has de- Michigan State University, East signed Google Inc.'s headquarters in Silicon Lansing.Architect: Zaha Hadid Valley; the East River Waterfront in New York; the Georgia Dome in Atlanta; and Barclays Center at Atlantic Yards in Brooklyn. More information on the site will be avail- able soon; it is expected to include at least 225,000 square feet of mixed-use space, at least 250 residential units and at least 900 parking spaces, according to DDA documents. Submission of a development plan is expected CHOUETTE MARKETING by the end of the year. For comparison’s sake, Crain’s has gathered Marketing images of other statement buildings found around the world. This is not a comprehensive architecture review. But it’s clear there are plenty of bold buildings around for design inspiration. Send your opinions on the Hudson’s site proposal to reporter Kirk Pinho at [BLOOMBERG] BMW Welt.Wolf D. Prix and the Viennese architecture [email protected] firm Coop Himmelb(l)au

ZOYES CREATIVE GROUP Creative

[WIKIPEDIA] Queen Sofia Palace of the Arts Architect: Santiago Calatrava [WIKIPEDIA] Guggenheim Bilbao.Architect: Frank Gehry Detroit-based businesses win early Wings arena pacts Olympia Development of Michigan The project is said Detroit-based businesses have part of a larger won $25 million of the first $30 mil- plan to improve lion in contracts for the $535 million the arena area hockey arena soon to be under con- and four neigh- struction downtown. borhoods ODM is the real estate develop- around it. SIGNATURE ASSOCIATES ment arm of Leasing/Management owners Mike and Marian Ilitch’s business holdings, and is leading the arena project expected to break under the bids; for which specific Olympia has a stated goal of 30 ground in coming weeks. bids the companies received work; percent Detroit business participa- The $30 million in bid packages which specific work the companies tion and 51 percent Detroit resident were for abatement and demolition; will do; or where the non-Detroit employment in construction of the abatement; mass excavation/earth- based companies are located. arena, which will be the Red Wings work; temporary shoring/earth re- The Detroit-based firms awarded home and also an events center. tention systems; and site work under the bids: Blaze-Iafrate Olympia still is seeking zoning utilities/underground utility pene- Joint Venture LLC; Brooks Lumber; approvals from the city before it can trations through concrete founda- Detroit Dismantling Corp.; DMC Con- begin construction, but it is permit- tions and earth retention systems. sultants Inc.; Giffels Webster; Mc- ted to begin some earth-moving The list of companies provided Coig Concrete Co.; Motor City Elec- and site-prep work. The venue is by ODM didn’t indicate how much tric Co.; Superior Materials; Testing scheduled to open by summer each package was worth; how much Engineers & Consultants; and Wa- 2017. money each company will receive terfront Petroleum Terminal Co. — Bill Shea 20150406-NEWS--0020,0021-NAT-CCI-CD_-- 4/3/2015 12:06 PM Page 1

20 CRAIN’S DETROIT BUSINESS // April 6, 2015 Great Lakes researchers target microplastics pollution

By Catherine Kavanaugh Crain News Service Microplastic particles — not just in the form of tiny beads but fibers and fragments, too — are polluting the Great Lakes and launching new areas of study for scientists. From face scrubs to fleece jack- ets, the list of threats to the five lakes, which hold about 20 percent of the Earth’s surface freshwater, is growing. The latest concerns are polymer particles under 5 millime- ters in size, and there are calls to start scrutinizing water samples for nanoplastics under 0.33 mm. [ALLIANCE FOR THE GREAT LAKES] Overall, the Great Lakes studies Several states have outlawed microbeads in personal care items, and a handful of to date just scratch the surface of state legislatures have bills pending. the problems polymers could be posing, said Jennifer Daley, a re- have been asking: What about are probably coming from our search fellow at the University of freshwater systems, particularly the washing machines,” Daley said, Michigan. Great Lakes?” Daley said. “They’re pointing to fabrics made from plas- “What we saw most were poly- host to 30 million people, 21 per- tics such as polyester and nylon. [5 GYRES INSTITUTE] ethylene, polypropylene or nylons, cent of our freshwater and $4 billion Microfibers also were found in Researchers found the highest concentration of particles near Buffalo, N.Y. which makes sense because these in fishing alone. When you have the gastrointestinal tracts of some dominate plastics production,” that many people on a system, fish and a double-crested cor- Daley said during a lecture last there are bound to be stressors.” morant, which eats fish. effects from highly publicized mi- sushi?” month at the Cranbrook Institute of Another field study, this time of crobeads and small fragments from Scientists have a lot of other Too much fiber Science in Bloomfield Hills. 100 fish by UM researchers, found degrading macroplastics. questions about the effects of mi- Cranbrook has an exhibit called One recent threat to make waves similar results for the five species of croplastic litter on the marine envi- Energy reduction “Plastic Waters: From the Great in the mass media came in January fish tested. ronment. Lakes to the Oceans,” which is with coverage of water samples “While they didn’t find mi- One of the 5 Gyres exhibit pieces As a physical contaminant of or- being presented by the Chicago- taken in 2013 from Lake Michigan. crobeads, they did find fibers in 11 at Cranbrook shows a picture of a ganisms, Daley showed a slide that based Alliance for the Great Lakes Scientists sounded the alarm that to 36 percent of the fish,” Daley said. gutted fish next to about 15 little says ingested microplastics could and the California-based 5 Gyres In- 12 percent of the debris consisted of Scientists now are trying to deter- shards of blue, yellow, white, black, have both behavioral and morpho- stitute. microfibers. mine the risks posed by the fine beige and brown plastic. logical effects. They could hinder “In the last few years, people “To be honest, most microfibers fibers on aquatic life along with the The caption asks, “What’s in your mobility, reduce vigor, block intes- tines and gastric enzyme secretions, diminish feeding stimulus, hamper breathing and delay ovulation. Then, there are the chemical contaminants. Some research sug- gests aquatic organisms also are ex- posed to the chemicals associated with plastics. Finance Experience “This is all really early research, and we need to do more work,” Daley said. ® In Your Corner. Beads, fragments Microplastics, which are techni- cally 0.33 to 5 millimeters, find their Ŷ Commercial, asset-based and real way into the waterways from wind, storm runoff, boats, wastewater estate fi nance. treatment plants, and accidental and intentional dumping. The plas- Ŷ Loan restructuring and workouts, tic bits float on the surface, are sus- mergers and acquisitions. pended in the water column, sink to bottom sediment and wash up on beaches. Most of the marine litter is plastic fragments from larger items that degraded into smaller pieces be- cause of weathering, mechanical breakdowns and microbes. Sarah Neville, stewardship coor- dinator for the Alliance for the Great Lakes, said that even the adopt-a- beach cleanups are getting more challenging because of teeny bits of plastic. Still, 14,500 volunteers in the eight Great Lakes states removed 51,797 pounds of trash from about 350 coastal areas in 2014. “Unlike the river cleanups, we don’t find refrigerators and tires,” Neville said. “These are small, small First Tier Ranking in Corporate Law and pieces of plastic that people are Commercial and picking up, and they are adding up Construction Litigation to these enormous values. … Plastic pollution is so problematic because Contact Michael Romaya at [email protected] Ŷ Metro Detroit Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing

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CRAIN’S DETROIT BUSINESS // April 6, 2015 21

From Previous Page pany Metabolix announced it is partnering with Honeywell to create this might break down into smaller a microbead, perhaps with Mirel Gibraltar steel plant to get new pieces, but it’s not something that’s PHA biopolymers, which tests show going away. We’re finding it in are similar to cellulose and paper. wildlife, and we know it’s nega- Daley said marine scientists tively affecting the environment.” also want to delve deeper into life with $53M investment plan Daley said the first and only pub- questions about new life forms in lished peer-reviewed article about microbial communities growing microplastics in the Great Lakes on the surfaces of plastics — so- The plant will operate under Fer- Economic Development. was released in 2013. Tests were called plastispheres — and By Dustin Walsh rolux Metals Co. LLC, which also op- Detroit-based McLouth Steel done on 21 water samples taken whether the particles’ movement [email protected] erates a plant in Wayne. built the plant in 1954. The plant from Lakes Erie, Huron and Superi- could “introduce alien species” to The former McLouth Steel Corp. The Gibraltar plant is expected to changed hands several times until or during a 2012 expedition led by other areas. In addition, they plant in Gibraltar is set to reopen be operational by the summer of 2003, when it went idle. Steel Marcus Eriksen, researcher and co- wonder whether microplastics after the Wayne CountyCommission 2016, following the removal of haz- Rolling Holdings acquired the plant founder of the 5 Gyres Institute. are interacting with chemicals in last week unanimously approved a ardous materials, interior demolition in 2006. The researchers found that the the environment, like legacy con- brownfield plan for the 42.5-acre and retrofitting. The plan is expected “This is a terrific reuse of an inac- lakes are teeming with debris — such taminants such as PCBs. property. to create at least 100 jobs, though Fer- tive steel plant, and the jobs are as glass, metal and aluminum silicate “At this point, the literature tells Ferrous Cal Co., a subsidiary of rous said 15 employees will maintain most certainly welcome,” Commis- from coal ash — and they estimated us that plastics can absorb and con- Cleveland-based metal processor the site until cleanup is complete. sioner Joseph Palamara, D-Grosse that 60 percent to 80 percent of the centrate pollutants,” Daley said. Ferragon Corp., acquired the The redevelopment is supported Ile Township, said in a statement. marine pollution is plastic. “Degraded plastics can leach chem- 600,000-square-foot plant and by $9.9 million in reimbursable in- “The cleanup also is very good news The highest concentrations ical additives — bisphenol A, phtha- property in February from Steel centives, which will be covered over because of the environmentally were found in Lake Erie near Buf- lates, flame retardants. The next Rolling Holdings Inc. Terms of that 30 years of incremental tax revenue sensitive nature of the area due to falo, N.Y. Two samples near this question is, what does it mean to deal were not disclosed. capture, according to the brown- the refuge, the nearby , city contained 85 percent of all secondary impacts to organisms Ferrous plans to invest $53 million field contract. marshes and other wetlands.” the microplastic particles collect- compared to other sources?” to upgrade the plant, which has been The brownfield plan was previ- Contamination of the soil and ed — including many green, blue And how about other threats? idle for more than a decade, and ously approved by the Wayne Coun- groundwater on the property was and purple-colored spheres, con- “Nobody is really looking at property to produce steel for auto- ty Brownfield Redevelopment Au- discovered in 2006, according to the sistent with microbeads found in nanoplastics,” Daley said. “A motive companies in the region, the thority, Gibraltar City Council and commission. Ⅲ facial cleansers. number of articles have suggested commission said in a news release. the Commission’s Committee on Dustin Walsh: (313) 446-6042 Also, Lake Superior showed we look at them. We should start slightly higher particle counts thinking about all plastics — not than Lake Huron, but that could just stopping at 0.33 mm but also Nominations sought for 40 under 40 awards be because water samples were looking at the really small-ranged Since 1991, Crain’s Detroit Business has gathered 40 of the colleagues, clients, family and friends to celebrate. taken closer to the shore, which is microplastics.” community’s high achievers for a special salute. Past To be eligible, nominees must be age 39 or younger as of winners have started companies, found success at a young closer to sources of pollution. UM has formed a research plat- Oct. 5, 2015. Nominations must be received by April 27. form with eco-toxicologists, age at established businesses and made nonprofits What’s next? Winners will be notified this summer. chemists, biologists and social stronger. Nominations are submitted online and can be found at The findings from the expedi- scientists to address some ques- Crain’s is seeking nominations for the 2015 class of 40 crainsdetroit.com/section/nominate. tion Erickson led brought about tions about microplastics in the under 40, which recognizes achievers across metro Detroit calls to ban microbeads from per- Great Lakes. under age 40 based on factors such as financial impact and For questions regarding the nominations: Contact sonal-care products. Illinois was Daley said they will study food community leadership. Bill Shea at [email protected] or (313) 446-1626. the first to outlaw them in June dynamics, physical characteris- For technical questions regarding the nomination 2014, banning the manufacture of tics of the plastics, source track- Winners will be profiled in the Oct. 5 issue and honored at personal-care products contain- ing, environmental health and an awards event in November. With more than 680 alumni form: Contact YahNica Crawford at [email protected] ing microbeads by the end of 2017 best methods for sampling. invited, the event brings together the current class with or (313) 446-1641. and the sale of those personal “With young science, it’s benefi- care products by the end of 2018. cial to look at other focus areas to New Jersey followed, and similar do our research, and some of those proposals are pending in Michigan, directions I can see in the future New York, Minnesota, Wisconsin, would be understanding the types Indiana, Colorado, California, Ver- of microplastic that are the biggest mont, Connecticut and other states current threat,” Daley said. Possible is everything. as well as at the federal level. “Is it microbeads, microfibers, Some businesses in the plastics fragments? What is the risk of ex- Today, more than ever, global competition, new technologies, and industry also are scrambling to posure to Great Lakes organisms, develop biodegradable ingredi- and what does realistic environ- corporate streamlining require innovative thinking and leadership abilities. Continuing Ⅲ ents for personal-care products. mental concentrations mean?” your education can be key to your success. From urban design and industrial Last month, biomaterials com- From Plastics News engineering to architectural management and business administration, Lawrence Technological University offers innovative degrees and fast-track certificate programs to prepare you for the careers of the future.

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22 CRAIN’S DETROIT BUSINESS // April 6, 2015

SPOTLIGHT FINANCE ANIMESH ANAND: CAO PEOPLE Satish Jasti to Special Tree Rehabilitation System senior vice presi- dent and senior Animesh Anand has been named to the newly created loan officer, Bank position of chief administrative officer at Special Tree of Ann Arbor, Rehabilitation System, Romulus. The facility provides ON THE MOVE Plymouth, from rehabilitation, care and treatment to children and Send news items and photos to [email protected] vice president adults who have brain or spinal cord injuries. It also of- and senior loan fers other neuro-rehabilitation needs in sub-acute, resi- CONSTRUCTION to dean of business and computer officer. Jasti dential, outpatient, home and community settings. Anand Todd Doenitz to director, Barton technologies, from interim dean; Anand will be responsible for developing, imple- Malow Co., Southfield, from vice and Brandon Tucker to dean of ad- GOVERNMENT menting and evaluating Special Tree’s clinical and business operations. president and co-owner, Fastdecks vanced technologies and public Jordie Kramer Previously he was executive director for rehabilitation strategies and Inc., Walled Lake. service careers, from interim to director of operations at Glacier Hills Senior Living Community, Ann Arbor. dean. human re- Anand, 40, has a doctorate in occupational therapy from the Rocky EDUCATION Edgar Vann III to district director sources, Oakland Mountain University of Health Professions, based in Provo, Utah. He is Kristin Good to dean of math of government relations, Wayne County, Water- pursuing a master’s in management from Harvard University Extension and sciences, Washtenaw Com- County Community College District, ford, from labor School. munity College, Ann Arbor, from Detroit, from district associate dean relations super- interim dean. Also, Kimberly Hurns of student services. visor. Hassan Saab to deputy direc- tor, department Kramer of public works, City of Westland, from director of public services and environment, Wayne County, Detroit. Give your employees MANUFACTURING Norman Davis Jr. to president, Enmet LLC, Ann the duck. Arbor, from southeast regional manager, Anything else is just Baseline-Mocon Inc., Mars, Pa. Ramon Davis Kuczera to vice chicken. president, global product technology, GKN Driveline Americas, Auburn Hills, from vice president, engineering. Also, Steven LaChance to vice president, More than 50 ppercentercent of ememployeesployee engineering, from global chief wish their employers offered engineer. voluntarvoluntaryy insurance1. MEDIA Eileen Gikas to sales manager, WCSX-FM (94.7), Greater Media The question is, who will you choose? Detroit, Ferndale, from sales manager, Comcast Spotlight Inc., a division of Comcast Corp., Bingham Why not offer coverage from Afl ac, the No. 1 Farms. provider of worksite/voluntary insurance sales for 13 consecutive years2? NONPROFITS Tom Anderson to CEO, Danialle Karmanos’ Work It Out Inc There’s no direct cost to you for offering it, and ., Detroit, from director of wellness and work getting started is as simple as adding a payroll life, Compuware Corp., Detroit. deduction. That’s why small business owners like Nancy Gerhardt Davies to human you have chosen Afl ac for 60 years. It’s also resources officer, Community why we’re so confi dent Afl ac is the right solution Foundation of Southeast Michigan, Detroit, from human resource for your business. director, Bodman PLC, Detroit.

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CRAIN’S DETROIT BUSINESS // April 6, 2015 23 DEALS & DETAILS Submit news to [email protected] ACQUISITIONS & MERGERS Drew Technologies Inc., Ann Arbor, a manufacturer of vehicle communication and diagnostic equipment for the vehicle inspec- Join us for a Plante Moran Webinar tion and automotive service indus- Covering topics from healthcare cybersecurity try, has been acquired by Opus In- spection Inc., East Grandby, Conn., to doing business in Mexico, Plante Moran’s a subsidiary of Opus Group AB, 2015 spring webinar series offers insights Sweden. Websites: drewtech.com, about top-of-mind business challenges. Our opusinspection.com. CPE-approved* webinars draw thousands CONTRACTS of attendees every year. Double-booked? Computing Source, Madison Don’t worry. Visit the webinar archives and enjoy Heights, a digital evidence and the presentation at your convenience. Join us legal support firm, announced it and find out why Plante Moran’s webinars offer has enhanced its electronic discov- ery services by becoming a Relativ- ity premium software hosting part- a higher return on experience. ner. Relativity software was developed by kCura, Chicago. Web- sites: computingsource.com, kcura.com.

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24 CRAIN’S DETROIT BUSINESS // April 6, 2015 Eight Mile Boulevard Detroit debut for Association luncheon CALENDAR Join the Eight Mile Boulevard WEDNESDAY Kelley LaFontaine, LaFontaine Scripps Interactive Networks & Linkner startup Association for its 16th Annual APRIL 8 Automotive Group; Jill Ford, spe- TV. The Townsend Hotel, Birm- Detroit is the debut stop April 13 for Josh 8MBA Leadership Luncheon. Grow Your Own Business On- cial mayoral adviser and head of ingham. $45 DEC members, $55 Linkner’s newest startup, Fuel Leadership LLC. The event is 11 a.m.-2 p.m. line With Google. 2:30-4:30 p.m. innovation and entrepreneur- guests of DEC members, $75 The inaugural event, Fuel: Detroit, will April 24. It includes networking Troy Chamber of Commerce. ship, city of Detroit; and Marie nonmembers. Ticket sales end at take place at Sound Board in the MotorCity opportunities and a panel dis- Learn how to get found on Alexander, government relations, noon April 14. Contact: (313) 963- Casino Hotel. The Detroit conference will be cussion featuring the “Big 4”: Google and hear from a panel of Ford Motor Co. Adoba Hotel, 8547; email: [email protected]; followed by leadership conferences in Cleve- Detroit Mayor Mike Duggan, experts from SS Digital Media; Dearborn. $30 chamber mem- website: econclub.org. land and Minneapolis. Wayne County Executive War- Elefant Design & Strategy; Media bers, $35 nonmembers. Contact: Sponsors in Detroit include Ernst & Young, ren Evans, Macomb County Ex- Genesis and Snap321. North- Ron Hinrichs, (313) 584-6100; 11th Annual Economic Forum Inc. magazine and Crain’s Detroit Business. ecutive Mark Hackel and Oak- wood University, Troy. Free for email: rhinrichs@dear- Breakfast. 7:30-10 a.m. April 22. Speakers include Michigan Gov. Rick Sny- land County Executive L. Brooks members, $15 nonmembers, bornareachamber.org; website: Michigan Hispanic Chamber of der; Ford Motor Co. CEO Mark Fields; basket- Patterson. Charlie Langton, legal walk-ins free for members, $20 dearbornareachamber.org/events. Commerce. Guests include ball star-turned-business- analyst, WWJ 950, will moder- nonmembers. Contact: Jessica Steve Arwood, CEO and presi- man Magic Johnson; retired ate the panel. Hruska, (248) 641-8151; email: Cutting Through the Red Tape: dent, Michigan Department of U.S. Navy commander and The group will focus on cur- [email protected]; Resources That Can Help Your Talent and Economic Develop- author Michael Abrashoff; rent public policy issues facing website: troychamber.com. Business. 7:15-9 a.m. April 15. Au- ment; Alejandra Castillo, nation- actress Jessica Alba, who Eight Mile Road and the region. tomation Alley. Oakland County al director, Minority Business De- co-founded The Honest Co., More than 600 business own- UPCOMING EVENTS Executive L. Brooks Patterson; velopment Agency; G. Mustafa a maker of eco-friendly ers, elected officials, depart- The Ohio Comeback Model. Donald Fracassi, acting mayor, Mohatarem, products; and author and ment heads and regional cor- 11:30 a.m.-1:30 p.m. April 13. De- city of Southfield; and Irene chief econo- Godin entrepreneur Seth Godin. porate managers will also troit Economic Club. Ohio Gov. Spanos, director of Oakland mist, General Tickets are $895 to $1,695. gather for networking and dis- John Kasich is guest speaker. County Economic Development Motors; and More information is at fuelleadership.com. cussions. Raffles and a silent Cobo Center, Detroit. $45 DEC & Community Affairs, share or- John Rakolta Godin, an author on creativity and market- auction are planned to help members, $55 guests of mem- ganizations’ programs and serv- Jr., chairman ing, founded Internet direct marketing com- raise money for improvements bers, $75 nonmembers. Ticket ices. Southfield Public Library, and CEO, Wal- pany Yoyodyne in 1995. He sold it to Yahoo Inc. to Eight Mile Road. sales end at noon April 12. Con- Southfield. Free for foundation bridge Aldinger in 1998. He later founded community site The luncheon will be at tact: (313) 963-8547; email: members; otherwise, $25. Con- Rakolta Co. Cindy Squidoo, which was sold to HubPages. Cobo Center, Detroit. Tickets [email protected]; website: tact: (800) 427-5100; email: Goodaker, ex- “There’s an endless amount of insight and are $60 in advance, or $70 at econclub.org. [email protected]; ecutive editor, Crain’s Detroit creativity in Detroit, Sarasota, Dubai, etc. the door. A table of 10 costs website: automationalley.com. Business, will moderate. Detroit There’s no shortage,” Godin told Crain’s. “What $500. Advancing Women to the Top. Athletic Club, Detroit. $75 we have everywhere is a shortage of people To register or learn more, call 7:30-9:30 a.m. April 14. Dearborn Rules of the Game: 10 Strate- members, $100 nonmembers. who instigate and who act as impresarios. (248) 398-3388 or visit eight Area Chamber of Commerce. gies for Women in the Work- Contact: Barb Lange, (248) 792- That can happen and will happen in Detroit. mile.org/Leadership_Luncheon. Panelists include Donna Inch, place. 11:30 a.m.-1:30 p.m. April 2763, ext. 101; email: Resources are more underused there. You can Online registration ends April 21. CEO, Ford Land; Stan Jensen, 15. Detroit Economic Club. [email protected]; more easily buy a theater, lease a building, etc. president, Henry Ford College; Susan Packard, co-founder of website: mhcc.org. It’s not overheated.” 20150406-NEWS--0025-NAT-CCI-CD_-- 4/3/2015 4:11 PM Page 1

CRAIN’S DETROIT BUSINESS // April 6, 2015 25 Report: State VC climate improves

By Tom Henderson thanks in part to the recent recession. [email protected] But people differ on whether an- A new report from the Ann other fund-of-funds by the state, set Arbor-based Michigan Venture Capi- up differently, should be used to Featuring: MCMANUS ROGER L. MYERS tal Association shows the sector continue to investing in the growing DISTINGUISHED BUSINESS LECTURE President and CEO continues to gain steam in Michi- VC community. Presbyterian Villages of Michigan gan as lawmakers in Lansing debate The MVCA says yes, Arwood says Entrepreneurial Ventures how and if they should continue to possibly and many legislators say for the Senior Market provide economic support. definitely not. By all metrics, the report shows a “We’ve spent more than a decade TUESDAY, APRIL 14, 2015 much healthier venture capital cli- “The growth in the building a venture capital commu- 7 p.m. Lecture mate locally, compared to five years number of nity in Michigan that can support Madonna University Kresge Hall ago. the state’s extraordinary startup 4DIPPMDSBGU3PBEt-JWPOJB .* There are 129 venture capital- fundraisings and companies and contribute to the backed companies in Michigan, a venture-backed diverse economy that is crucial to Lecture is open to the public at no charge 70 percent increase in the five years. the state post-recession,” said Mau- Seating is limited Fifty-one companies in Michi- companies is a reen Miller Brosnan, the MVCA’s ex- R.S.V.P. to Lori by April 7 734-432-5589 or [email protected] gan received more than $204 mil- result in part of ecutive director, in a news release lion from state VC firms in 2014, up that accompanied the report. 89 percent in five years. programs and “We’re now at a point where, INSPIRING ENTREPRENEURS SINCE 1989 In 2007, there were 11 VC firms investments the despite significant increases in Presented by the Aging Studies Department and the School of Business madonna.edu based in Michigan, and no out-of- state of Michigan venture capital under manage- state firms had offices here. Today, ment at Michigan-based venture there are 26 VC firms based here and has made.” firms, it’s still not enough to meet 11 out-of-state firms have opened future funding demands by offices here to source local deals. Jim Adox, MVCA chairman and Michigan startups.” Last year, Michigan-based ven- managing director of the Ann Arbor “The growth in the number of ture capital firms had $1.7 billion in office of Madison, Wis.-based Venture fundraisings and venture-backed MARKET PLACE capital under management, an in- Investors LLC companies is a result in part of pro- crease of 45 percent in the last five grams and investments the state of years. The amount of capital under Both those funds were created Michigan has made,” said Jim BUSINESS OPPORTUNITIES LEGAL SERVICES - IMMIGRATION management by national VC firms through loans backed by state tax Adox, the MVCA chairman and  LOOKING TO START, EXPAND OR  Immigration Law Firm, AV-rated with offices here was $3.1 billion, up vouchers, and legislators, Michigan managing director of the Ann Arbor SAVE YOUR BUSINESS? Antone, Casagrande & Adwers, P.C. 122 percent. Economic Development Corp. CEO office of Madison, Wis.-based Ven- An experienced Detroit area executive has Dedicated to Business, Employment, There are 115 venture capital Steve Arwood and even MVCA mem- ture Investors LLC, told Crain’s. capital and time to invest in the right and Family Immigration Matters opportunities. Must have established business professionals working in the state, bers agree that it wouldn’t make “We think these numbers strongly with two year financial history or 31555 W. 14 Mile Rd. Ste. 100, up 139 percent in five years. sense to borrow money to start an- support further funding efforts by patented/proprietary product. Farmington Hills, MI 48334 (248) 406-4100 www.antone.com The two current funds the state other state fund to invest in VC firms. the state so Michigan can become Send response to: [email protected] created to invest in venture-capital According to the House Fiscal the clear leader in job growth and BUSINESSES FOR SALE firms, the $95 million Venture Michi- Agency, the state could be on the company creation in the state,” he MISCELLANEOUS gan Fund I LP in 2006 and the $120 hook for as much as $140 million in said. MARINA & BOAT DEALERSHIP million Venture Michigan Fund II LP the next three years as returns from Tom Henderson: (313) 446-0337 Northern, Michigan FREE in 2010, are both fully committed. VMF I come in slower than expected, Twitter: @TomHenderson2 Thriving Turnkey Business 225’ Commercial Lake frontage ENERGY AUDITS 4.6 acres - Store/shop 3,000 sf State of Michigan 2 Pole barns w 13,000 sf (888) 749-7886 Forum helps link minority entrepreneurs with VC Call for Details - 989-709-0761 www.michigan.gov/retap Call Us For Personalized PowerMoves, a program of the To register Participating companies with De- Service: (313) 446-6068 New Orleans Startup Fund that con- troit ties are Evolve, learning support WEDDING SERVICES nects underrepresented entrepre- Registration can be found at systems for high school students; FAX: (313) 446-0347 neurs with venture funding, is ex- www.powermovesnola.org and FlashDelivery, restaurant and gro- E-MAIL: cdbclassified @crain.com panding to Detroit. clicking on the registration link cery delivery service; Guidesmob, in- INTERNET: Waterfront Weddings www.crainsdetroit.com/section/classifieds The three-day event, April 13-15 for the Detroit event. teractive city guides; Networkingout, Straits of Mackinac at several Detroit venues, showcas- virtual workout club; Paralee Boyd See DestinationWeddingsUpNorth.com es local and nationally recruited mi- Salon, hair care; and Warranty Ninja, Crainsdetroit.com/Section/Classifieds nority entrepreneurs competing in follow-up activities. simplified warranty management for more classified advertisements 906-643-8621 public, venture capital-style pitch Crain’s Detroit Business is media for consumer products. events, vying for $120,000 in direct sponsor. Other events: prizes and a chance to raise their Featured during the event are: A Detroit medical technology visibility to other investors. Morgan Stanley Power Pitch startup, Functional Fluidics, will High-growth minority-owned Competitions. Two pitch competi- pitch its device and business plans REAL ESTATE companies typically don’t have the tions will each feature five com- at an invitation-only opening din- same networks to connect to angel panies competing for a total of ner event, raising its visibility in the COMMERCIAL PROPERTIES COMMERCIAL PROPERTIES and venture investors, said Rodrick $80,000 in cash prizes in an Angel VC arena. Miller, president and CEO of the De- Round and a Series A Round. Two A lunchtime panel discussion RECEIVER MUST SELL BY APRIL 30TH COMMERCIAL FINANCING troit Economic Growth Corp. and a firms with Detroit connections will feature Lisa Price, founder of Offer Deadline April 23rd Rate low 4’s ~ 10, 15 or 20 yr. balloon, co-founder of the program in New are entered in these events: Gap- Carol’s Daughter, and Robin 25 yr. Am. Non-recourse (no pers. guar.), ALL OFFERS REVIEWED Industl, Multi-Fam., Seniors Housing, Orleans. Pro, a cloud-based insurance veri- Richards, founder of CareerArc and Retail, Off. Bldgs., & Self Storage. Internships.com Bringing the program to Detroit fication system, in the Angel , and focus on GERALD MARINO also is chance to showcase the city pitch, and Maker’s Row, an online launching a startup that grows with 26 Yrs Local Banker ~ 586-506-4399 as a good option for entrepreneurial B2B platform, in Series A. a clear path to an exit. It will be companies, he said. PowerUp Boot Camp. An addi- moderated by Carla Harris, vice STERLING HEIGHTS - 17 MI. RD. “We’re much more likely to grow tional 14 early-stage entrepreneurs of chairman, global wealth manage- 70945 VAN DYKE, BRUCE TOWNSHIP a Google or a Microsoft than to re- color have been receiving help for ment, director and senior client ad- 29,750 Square Feet / Retail Condo Office Building, 14,000 Sq. Ft., 10 CAP $875,000 8 Acres on 16 Mile in Harrison Twp., SEV cruit one for the market,” Miller several months developing fundable viser at Morgan Stanley. 100% Vacant - Was Asking $449,000 $305,000. Sale Price $300,000. Can be said. “This is fundamentally an es- business models with advice from The Morgan Stanley Power Pitch Assisted Living or Apartment Houses sential program, not just for Detroit, successful entrepreneurs and in- Competition sessions, PowerUp Boot BILL McMACHEN but for the state of Michigan.” vestors. PowerUp will culminate with Camp Demo Day, and the panel and (586) 915-4441 ~ [email protected] The event is hosted by the DEGC a Demo Day presentation where luncheon are free and open to the Anthony Rubino - 586-254-0900 x101 Call or email today for information and Invest Detroit. Morgan Stanley is companies will pitch their ideas to public. The venues have limited seat- on a custom advertising plan! the presenting sponsor. The New thought leaders and sector experts ing, so pre-registration is strongly en- [email protected] Economy Initiative has contributed and compete for a $20,000 cash prize couraged. On site registrations will Boyd Kraft - 586-254-0900 x109 [email protected] money for prizes and is investing in and potential capital from investors. only be accepted if space permits. [email protected] 313.446.6068 20150406-NEWS--0026,0027-NAT-CCI-CD_-- 4/3/2015 6:21 PM Page 1

26 CRAIN’S DETROIT BUSINESS // April 6, 2015 TIGERS, from Page 3: Big money isn’t always best; team aims for salary balance

top end, you do have to keep a steady pipeline of the cheap guys New Comerica Park restaurant to include Tiger Stadium artifacts coming,” said ESPN senior baseball writer Buster Olney. By Bill Shea The concoction retails for $8. They The criticism that Detroit’s farm [email protected] will be sold at a portable cart near system has been sapped of talent The Detroit Tigers and their Section 125 and at the Michigan because of past trades is invalid, concessionaire, Delaware North craft beer stand. Olney added. Sportservice, are replacing the Other new offerings include “They’ve managed to generate Leo’s Coney Island on Witherell pork rinds with queso dip, a hot enough that it allows them to be Street at Comerica Park with a nos- dog topped with potato chips and top-heavy with their payroll,” he talgia-based eatery that will include French onion dip, and a Southwest said. the original Tiger Stadium dugout pork/mac-and-cheese on a waffle The Tigers also benefit from the bench. creation. willingness of team owner Mike Il- The Corner Tap Room will open The trick for the kitchen is creat- itch, a billionaire thanks to co- May 8. The plan was to have it open ing items people want, but also can founding the Little Caesars pizza for Opening Day, but the interior be sold en masse, Szubeczak said. chain, to spend on players as if the woodwork needed more time, said “When you make things, you have team was in a far larger city. Mark Szubeczak, Sportservice’s ex- [BILL SHEA/CDB] to be able to prepare them in huge “They’re less tied to market size ecutive chef at the ballpark. New on the Comerica Park menu for the 2015 season is a Southwest pork/mac- quantities,” he said. than any other team in baseball,” News of the restaurant, which and-cheese on a waffle creation. Some items, like a chicken Olney said. will be open for lunch during the Parmesan sandwich and a meat- Since his first full season as week and lunch and dinner on Szubeczak said. That will include No cost was disclosed. ball sandwich last season, were not owner in 1993, Ilitch has spent $1.8 game days, broke during a media artifacts from when the facility was New concession fare includes popular and were scrapped for this billion on player payroll. food tasting the team hosted at the Navin Field and Briggs Stadium, “bacon and eggs,” which is thick- year. stadium to introduce the 2015 sea- he said. cut, maple-coated bacon topped On the drawing board for the fu- The rich are different son’s new concession and retail of- The concessionaire and team with three deviled eggs and option- ture is pancake-wrapped bacon, he Life for players at the bottom of ferings. worked with an archivist for the in- al fried jalapenos. said. the roster isn’t flashy compared to The Corner Tap Room will seat terior display. The entryway will be To assuage concern about eating There also will be healthy food the multi-millionaire with the head- 140, including patio seating when made of bricks taken from Michi- deviled eggs in the summer heat, options available at different con- line-grabbing contract. weather permits, and feature signs, gan Avenue. Szubeczak said the recipe calls for cession points inside Comerica, Paychecks, which begin April 15 seats and other nostalgia elements The project is a joint venture be- spicy sriracha instead of mayon- Szubeczak added, including vegan, and end Sept. 30 for the regular sea- saved from the old Tiger Stadium, tween the club and concessionaire. naise, and the eggs are kept chilled. vegetarian and gluten-free items. Ⅲ son, include deductions that leave less net cash for the low-paid play- guys sometimes will pony up about ers. $150 a day,” ex-Tigers reliever Todd Like the rest of us, baseball play- Jones wrote in The Sporting News in ers pay federal, state and local taxes 2007. “Clubhouse dues plus a room- — which easily can consume al- service burger and soda at the nice most half a paycheck — and most hotels in which we stay can eat up a pay into a 401K and for other bene- day’s meal money in a hurry. We pay fits. the same dues at home, too, where Players can be hit for taxes where we don’t get meal money.” they live in spring training, where While the total amount of the de- they live during the regular season, ductions often surprise young play- and where they live in the offsea- ers when they see their first check, son. they usually don’t mind all the fees, “You could have three resi- charges and payments, said Robert dences. Those attendant costs are Raiola, a CPA and senior manager more inflated in their impact for the for New Jersey-based O’Connor guys at or close to the minimum,” Davies LLP who specializes in tax said former Montreal Expos pitcher planning for individuals and their Steve Rogers, now the Major League families in the sports and entertain- Baseball Players Association’s spe- ment industries. cial assistant for player services “It’s good that they have to do Taxes and benefit costs aren’t the that — they’re in the major leagues,” only expenses coming out of pay- he said. checks: Union dues are $70 a day, or And they’re no longer in the $12,810 a season, regardless of a minor leagues, where compensa- player’s total compensation. tion is far stingier. Players also typically pay 3 to 5 Minor-league players average percent in fees for their agents, but $3,000 and $7,500 in salary for the en- MLB rules forbid any agent fee that tire five-month season — a level that MLB salaries continue to clear fences would take a player’s gross salary has sparked a lawsuit against base- under the league minimum. ball, and labor union rallies at MLB The average Major League Base- Twenty years ago, Major League roster players. They also pay clubhouse dues that spring training sites (including the ball salary this season will be $4.25 Baseball-wide revenue was $1.4 The team collected $84 million range from $20 or $30 per day every Tigers’ spring camp in Lakeland, Fla.). million, up from $3.95 million to billion. in gate receipts last season, ac- game for young players, to $150 per There is no union for the minor start 2014, according to an analysis Baseball’s minimum salary this cording to Forbes.com, and $254 day for high-salary veterans. leagues. by The Associated Press of all season is $507,500, a number ne- million in total revenue. That in- The clubhouse dues are for the A group of former minor-league major league contracts on the gotiated via the collective bargain- cludes the $50 million a year the staff that provides food and services players is seeking to have the Fair books for Opening Day. ing agreement and indexed club gets from its local broadcast in the clubhouse, such as cleaning Labor Standards Act applied to The Detroit Tigers have a dozen against the federal Bureau of Labor rights deal with Fox Sports Detroit, uniforms and equipment. minor-league players in hopes of players earning more than that. Statistics’ annual Consumer Price and its 1/30 fraction of the shared Players pay the dues partially out improving wages and working con- The average broke the $1 mil- Index for Urban Wage Earners and portion of MLB’s $9 billion in 2014 of their per diem, which this year is ditions, despite MLB’s antitrust ex- lion mark in 1992, topped $2 mil- Clerical Workers. revenue. $100.50 a day for each of the 81 road emption, according to USA Today. lion in 2001 and reached $3 mil- Of course, the lowest-paid base- The 30 clubs share national games (and any days spent travel- Major-league clubs pay the salaries lion in 2008, the AP reported. ball player earns far more than broadcast rights deals and na- ing). for their minor-league affiliates. The salaries are fueled by base- most Americans: Inflation adjust- tional merchandise and licensing That’s at least $8,140.50 tax-free Being sued are Major League ball’s $9 billion in gross revenues ed U.S. median household income agreements, along with baseball’s that all players receive for meals Baseball, former commissioner Bud from last season, which was gener- was $51,939 in 2013, the most re- lucrative digital operation. Each while traveling during the season, Selig and all 30 big-league clubs, ated by enormous broadcast rights cent data available from the U.S. team also shares 34 percent of its although the clubs usually provide with a trial scheduled for February deals, digital media, merchandise Census Bureau. local revenue, such as ticket sales all meals while traveling. 2017, the newspaper reported. licensing and sales, luxury suites The Tigers are not starved for and regional sports network “Most guys pay at least $50 a day Some minor-leaguers do earn leases and premium seating, ticket cash to pay their superstar deals. in clubhouse dues, though the big See Next Page sales, and concessions. salaries, or their bottom-of-the- — Bill Shea 20150406-NEWS--0026,0027-NAT-CCI-CD_-- 4/3/2015 6:21 PM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 27 From Previous Page Crain’sHomecoming among more. Prospects on the 40-man major-league roster make at least $41,400 annually while they’re still in the mi- Detroit-area Knight winners nors, the AP reported, but that’s a category that covers only up to 15 of By Amy Haimerl Hajj Flemings, owner of Brand vacant lots. There will be workshops the 150-plus minor lea- [email protected] Camp University, will use his funds to that teach mowing and pattern- guers in most organiza- Five Detroit innovators — in- help startups and entrepreneurs in making techniques. tions. cluding Crain’s Detroit Home- underserved areas brand their com- Ⅲ LIVE Detroit Major league teams coming project — are winners panies and ideas. He envisions a Funding: $40,000 use a 25-man roster of of the first Knight Cities training and mentoring program Rachel Perschetz wants to create the starting and reserve Challenge, hosted by the John S. that helps them tell their stories and a one-stop shop for information active players. The 40- and James L. Knight Foundation. create a digital presence. about neighborhoods and living in man roster is those play- The Miami-based foundation Ⅲ Brick + Beam Detroit the city. ers plus those on the announced last week that 32 or- Funding: $87,424 Ⅲ The Urban Consulate (shared disabled list, and minor ganizations spread across 12 Emilie Evans of the Michigan His- with New Orleans) leaguers the club is like- cities would share $5 million. toric Preservation Network plans to Funding: $150,000 ly to call up when need- The winners were whittled down create a community of Detroit re- Claire Nelson of the Urban Inno- ed under the optional from 126 finalists nationwide habbers who can work together to vation Exchange plans to promote assignment system. and more than 7,000 entries. combat blight and reactivate vacant cross-city cultural and civic ex- Detroit had the highest num- buildings. She intends to provide change by setting up a network of How to get rich in ber of finalists – 25 – and turned training, social events and forums to new “consulates” for American cities baseball in the second-largest number of help people of all skill levels. instead of countries. Initially, they Low-paid players be- winners, just behind Philadel- Ⅲ The Buzz will be in Detroit, Philadelphia and come high-paid players phia. In total, the five local win- Funding: $84,055 New Orleans and offer events and by being good at their ners were awarded nearly Erin Kelly of Detroit Future City in- entrée into local culture. Ⅲ job, and being patient $500,000. The city also can lay tends to pair barbers with landscape Amy Haimerl: (313) 446-0416 within baseball’s service claim to a sixth winner, though it’s contractors to transform overgrown Twitter: @haimeralad time schedule, which is shared with New Orleans. the road map for most “Knight was astounded by the players to get significant response that Detroit offered,” raises. said Katy Locker, Knight’s Detroit The big money usual- program director. “What the pan- ly comes for most play- elists saw in Detroit’s ideas was a ers when they have ac- commitment to entrepreneur- crued six years of service ship, a commitment and re- time in the majors, al- sponse to vacant buildings and lowing them to become vacant lands, and an interest in free agents — the point engagement and connections at which teams bid for across our community.” their services with hefty Crain’s scored on the engage- contracts (if the player’s ment front, earning $100,000 to services are in demand build a digital community that by that point). can reconnect former Detroiters Until then, players with their home city. Your single source for comprehensive asphalt and must wait for salary ar- The proposal was an offshoot concrete solutions. Our newly increased capacity bitration. of the three-day Detroit Home- is perfect for large commercial projects. Highly touted young coming event Crain’s con- players can get multi- vened in September along with a  L HL/  H L Í0K  L ÍHK ÙH L/ H Í0KI0   million-dollar deals at the Downtown Detroit Partner- IL K ÜÍ/ H  LKÍ(ÞI   HK ÍÛÝ  HK IL the start of their careers, ship, Detroit Economic Growth 0I 0KHÜ  HK ILÍHJI LK/ H Í(ÞHÝHK ILÍ(  L/ H  often via signing bonus- Corp. and other high-profile * IK ÞK  ÓLKHHK IL3 ILKK ILÍÛHÝ  LKÚ  L0IK IL es, but most work for foundations and businesses. The near the league mini- initiative brought back more Call today for more information at 586.427.7283 or visit us at mum until they’re eligi- than 150 high-profile former De- www.hutchpaving.com to learn more or to request a quote. ble for salary arbitration. troiters, including Dan Docto- Players with three or roff, former deputy mayor of more years of service, New York City, and Ron Fournier, but less than six years, editorial director of the National may file for salary arbi- Journal. tration, according to MLB’s rules. A slightly more than the players. “We discovered in the Home- select few, known as “Super Two” Tigers starting pitcher David coming that thousands of people players, can do so after two seasons Price got a one-year, $19.75 mil- who grew up in the metro area in the majors, if they meet certain lion deal in January to avoid salary but now live and work elsewhere service time requirements. arbitration, CBSSports.com base- still ‘carry the D’ in their hearts,” For example, if he plays well, ball writer Jon Heyman reported at said Crain’s Publisher Mary Castellanos could see a consider- the time. That was a record in- Kramer. “We can build a com- able pay bump when he becomes crease in salary arbitration. His munity around that affection eligible for salary arbitration in salary in 2014 was $14 million. that can be an economic force 2017. Price is eligible for free agency for Detroit.” In salary arbitration, the player after this season. Homecoming will repeat this and the team exchange proposed In January 2014, pitcher Max fall, and the grant will be used to contracts in January. The team can- Scherzer got a one-year, $15.5 mil- keep expats in touch with news not offer less than the player’s total lion deal to avoid arbitration with about the city, career opportuni- pay from the past season. the Tigers, and that was a raise from ties and each other. Already, a Most cases result in a one-year his $6.7 million salary in 2013. twice-monthly email newsletter deal and a raise based on perform- Scherzer became a free-agent goes to more than 30,000 people, ance and salaries of similar players. after last season, and left Detroit in and the funding will help the Clubs and players avoid going to January for a seven-year, $210 mil- project expand. arbitration about 90 percent of the lion contract with the Washington The other local proposals are: time, and in those cases that do go Nationals. Ⅲ Ⅲ Brand Detroit: Innovating De- to the three-person arbitration Bill Shea: (313) 446-1626 troit Neighborhoods panel, the teams have prevailed Twitter: @Bill_Shea19 Funding: $164,810 20150406-NEWS--0028,0029-NAT-CCI-CD_-- 4/3/2015 6:22 PM Page 1

28 CRAIN’S DETROIT BUSINESS // April 6, 2015 BLUE CROSS, from Page 1: Blue Cross HMO needed $30 million infusion from parent Last June, Blue Care Network Largest plans sold a surplus note to Blue Cross Financials ofstate Medicaid HMOs Complete for $30 million at a 1.51 According to the Michigan Department of Insurance and percent interest rate to cover losses, NAME 2014 REVENUE 2014 NET INCOME MARGIN DIFS said. Blue Care is a subsidiary Financial Services, the state’s of Blue Cross Blue Shield of Michigan, largest Medicaid HMO plans in terms Meridian Health Plan $1.4 billion $3.4 million 0.23% of enrollment are: which provides care to about United Healthcare Community Plan $1.1 billion $30.4 million 2.8% 4.4 million people through its vari- Ⅲ Meridian Health Plan of ous insurance operations. Michigan, with about 379,000 Molina Health Plan $1.1 billion $26.8 million 2.5% A surplus note is a subordinated members and a 0.5 percent profit McLaren Health Plan Community $722.6 million $12.2 million 1.7% security issued primarily by a mutual margin. HAP Midwest $381.7 million $19.1 million 5.0% insurance company that pays inter- Ⅲ United Healthcare Community est at the end of a designated period. Plan, with about 275,000 members Priority Health Choice $341.1 million $203,306 0.06% In the past two years, Blue Care and a 1.4 percent margin. HealthPlus Partners $295.9 million ($8.9 million) (3%) has also contributed another $19 Ⅲ million in capital to Blue Cross Molina Healthcare of Michigan, Total Health $272.3 million $5 million 1.85% with about 242,000 members and a Complete, which includes a $2 mil- Blue Cross Complete $259.3 million ($13.7 million) (5.3%) lion capital infusion last December 0.8 percent margin. and another $17 million in 2013, — Jay Greene Aetna Better $187.5 million $6.2 million 3.3% DIFS said. Upper Peninsula Health Plan $150.4 million $4.6 million 3.0% In an email statement, Andrea infusion of capital from its parent. Miller, a DIFS spokesman, said it is “What I think is most interesting PHP Family Care $67.5 million $853,304 1.3% not unusual for companies to re- is, not the details about the insur- Harbor Health Plan $21.9 million $422,656 1.9% ceive additional surplus from a par- ance filings, but Blue Cross’ new Source: Michigan Deparment of Community Health, 2014 ent company when premiums or commitment through the HMO to business growth is significant. be a major player in the Medicaid “Companies are expected to have managed care program” in Michi- well,” he said. two other Blue Cross plans with ing pains. “The fact they had to add sufficient capital and surplus to gan, said Rosen, adding: “I expect Last year, despite the $50 million more than 800,000 members in $50 million in capital is not that sur- support premium (and) business they will go from 20,000 to several in capital infusion, Blue Cross Com- three states. prising because of their growth. The growth,” she said. hundred thousand members.” plete’s surplus dropped to $12.8 “This year we will see some im- financial losses are surprising.” CEO Kevin Klobucar of Blue Care Rosen believes Blue Cross is million from $30.7 million in 2013. provement” in administrative ex- Baumgarten said Blue Cross Network said Blue Cross Complete’s preparing for a dramatic expansion Moreover, Blue Cross Complete’s pense costs on a per-member per- Complete’s medical expenses were financial losses and $50 million in its membership. administrative expense ratio — month basis and “expect any loss about 2 percent higher than other capital transfers were expected and “If they pursue statewide pres- which measures the amount of will be significantly reduced and ap- HMOs and its medical loss ratio was necessary to support planned ence, they will be a major new com- overhead costs to revenue — bal- proaching break-even,” he said. 88.2 percent, slightly higher than growth in the company. petitor in every community,” he said. looned to 17 percent last year from The other 12 Medicaid HMOs the approximate 85 percent “The way I view Blue Care Com- During 2015, DIFS is taking ap- about 9 percent in 2013, DIFS said. operating in Michigan have mar- statewide average. plete is this is almost like a startup plications from Medicaid HMOs to Typical administrative expense ra- gins that range from 1 percent to While Klobucar said the new company. We are really focused on do business in the state’s 83 coun- tios in Michigan range from about about 6 percent, according to the Healthy Michigan Medicaid en- growth strategy at this point in ties starting Jan. 1. 10 percent to 12 percent. 2014 Michigan Health Market Re- rollees aren’t sicker than the general time,” said Klobucar. “The growth Klobucar confirmed that Blue Klobucar said the administrative view. Overall, HMOs average mar- Medicaid population, the 30,000 came from the Healthy Michigan Cross Complete will apply to ex- expense increase was caused by hir- gins were 1.2 percent for the first six new members last year had pent- population. We are focused on pand into additional counties. He ing additional employees, case man- months of 2014, down from 1.8 per- up demand for primary care servic- working with the state to reduce the declined to specify how many and agement nurses and managers to cent in 2013, Michigan Market said. es that increased medical costs and uninsured.” which ones. support Medicaid expansion; negoti- Baumgarten said Michigan Med- led to some of the financial losses. But Allan Baumgarten, a Min- ating provider contracts; investing in icaid HMOs are doing more poorly While not a Medicaid HMO, Growth plan neapolis-based health care consult- member web portals; and onetime financially than in Wisconsin and HealthPlus of Michigan last month Blue Care acquired Blue Cross ant who also publishes the Michigan costs associated with transferring Minnesota, two other states he has was placed under state supervision Complete, formerly called M-Caid, Health Market Review, said the fi- some administrative service func- studied. The problem, he said, is after mounting losses over two in 2006 from the University of Michi- nancial losses and capital infusion tions to AmeriHealth Caritas. Michigan’s relatively low reimburse- years lowered its reserves below the gan. Its membership hovered at needs may work against Blue Cross’ “We are planning for growth” and ment model. required state minimum. Health- about 20,000 until 2012, when Blue application to grow very fast in hired staff and built infrastructure “Medicaid over the last five years Plus, which has lost more than $24 Cross decided to embark on a Med- Michigan Medicaid. to prepare for membership expan- has become a thin margin line of million since 2013, was ordered to icaid growth strategy. “One criteria the state looks at is sion, he said. business for Michigan HMOs, and find a financial partner. Jay Rosen, president of Lansing- the financial stability of the organi- In 2011, Blue Cross began its that margin is getting thinner looking Miller said HealthPlus is continu- based Health Management Associ- zation. I would think they would get strategic growth in Medicaid by in- at 2014,” Baumgarten said. “Some ing to negotiate with several inter- ates, said he isn’t surprised a small docked some points because of the vesting $215 million for a minority HMOs are doing better than others.” ested financial partners. Ⅲ and growing Medicaid HMO like losses and the rapid growth and interest in AmeriHealth, a national Baumgarten called Blue Cross Jay Greene: (313) 446-0325 Blue Cross Complete would require how they handled it, which is not so Medicaid HMO also co-owned by Complete’s financial issues “grow- Twitter: @jaybgreene

MARQUETTE,from Page 1: Real estate community watching Mexican mogul’s moves

Near Mexico City, Helú County dated Dec. 10 lists an ad- sidiaries. The address also appears across the street from the Metropolitan A statement Parker provided at bankrolled the first phase of the dress for 243 Congress LLC in Mexi- for Helú in this year’s proxy state- Museum of Art for $44 million in 2010, the time of the sale only identified sprawling Plaza Carso mixed-use co that is the same as Impulsora del ment for The New York Times, of Forbes reported at the time. the buyer as “an out-of-state in- development with retail space and Desarrollo y el Empleo en America which he became the largest share- Attempts to reach Helú or a rep- vestor.” an art museum, built on a former Latina SAB de CV (Driving Develop- holder in January with an owner- resentative Thursday and Friday The statement said renovations glass factory, to the tune of about ment and Employment in Latin ship of 27.8 million shares. through his personal website, the are planned and the building will $650 million. America), or IDEAL, of which Helú The 75-year-old Helú’s Grupo Carso IDEAL website, and the New York remain as office space, but exactly His Inmuebles Carso SAB de CV is the chairman of the board. A list- SA de CV is a holding company with Times were unsuccessful. Attempts what the renovations include, how development built the project. ing by New York City-based proper- interests in construction, retail and were also made through the media much they will cost and when they Nico Gatzaros, managing partner ty research firm Real Capital Analyt- industrial materials industries. His relations office of Philip Morris Inter- will be complete has not yet been of Detroit-based 400 Monroe Asso- ics Inc. names Carlos Facha Lara, holdings are also in telecommunica- national Inc., of which Helú is a determined. Summit Commercial is ciates LLC and son of the late Greek- director of legal affairs and non- tions through America Movil SAB de CV member of the board of directors, responsible for managing and leas- town Casino-Hotel developer Ted member assistant secretary of the and mining through Minera Frisco SAB and legal counsel. ing the building, which is currently Gatzaros, whose estate sold the IDEAL board, as the buyer. de CV. Bunia Parker, principal of Detroit- vacant, according to CoStar Group building to Helú, said offers from The Mexico address is also listed It’s not known whether Helú al- based Summit Commercial LLC, which Inc., a Washington, D.C.-based real “all over the world” were made on in U.S. Securities and Exchange ready has ties to any other real estate represented 243 West Congress in the estate information service. the building. Commission documents as being for purchases in metro Detroit, but he purchase, said he could not confirm Detroit-based Exclusive Realty rep- “We were getting offers from Rus- Grupo Financiero Inbursa SA de CV, a does own real estate elsewhere. For Helú was the buyer. He also declined resented 400 Monroe in the sale. Ⅲ sians, Chinese,” he said. group of financial companies con- example, he purchased the Duke-Se- to provide a direct contact for 243 Kirk Pinho: (313) 446-0412 A warranty deed filed in Wayne trolled by Helú, and some of its sub- mans mansion in New York City West Congress LLC. Twitter: @kirkpinhoCDB 20150406-NEWS--0028,0029-NAT-CCI-CD_-- 4/3/2015 6:23 PM Page 2

CRAIN’S DETROIT BUSINESS // April 6, 2015 29 CRAIN’S PROPOSAL 1,from Page 1: Road tax ad push hitting potholes DETROIT BUSINESS Supporters include the Detroit referendum to voters as both a www.crainsdetroit.com Chamber of Commerce, Business roads and schools measure. What Proposal 1 is intended to do Editor-in-Chief Keith E.Crain Leaders for Michigan Michigan AFL- Group Publisher Mary Kramer,(313) 446-0399 , John Truscott, president of Tr- or [email protected] CIO and Small Business Association uscott Rossman, said the firm Proposal 1, and legislation tied to its passing, is a complex set of pack- Associate Publisher Marla Wise,(313) 446-6032 of Michigan. The Michigan Chamber walked away from the campaign aged bills designed to fix Michigan roads. or [email protected] Executive Editor Cindy Goodaker,(313) 446-0460 of Commerce said last month said it due to a disagreement over the con- The measure would drop the sales tax on fuel and ensure that school or [email protected] will remain neutral on the referen- cept for the campaign with the Sny- aid fund revenue goes only to K-12 districts or community colleges — not Managing Editor Jennette Smith,(313) 446-1622 dum. der administration. universities. or [email protected] Director, Digital Strategy Nancy Hanus,(313) 446-1621 The pro-Prop 1 campaign con- “We do things a certain way,” Tr- Transportation funding would rise by about $1.2 billion a year, giving a or [email protected] centrates on the road repair funding uscott said. “If we couldn’t run it the big boost to the $2 billion now collected through fuel taxes and license Managing Editor/Custom and Special Projects aspect of the ballot measure rather way we know how, it was best they plate fees. And $11.8 billion in annual school funding would jump by at Daniel Duggan,(313) 446-0414 or [email protected] Senior Editor/Design Bob Allen,(313) 446-0344 than explaining the complex related went with someone else.” least $300 million, the equivalent of $200 per student. or [email protected] package of changes, including in- WWP Strategies stepped in to The proposal would also yield an additional $95 million from yearly Senior Editor Gary Piatek,(313) 446-0357 creases to funding for schools and make the pitch to voters and settled registration fees on cars and heavy trucks, with fees for heavy trucks mak- or [email protected] local government. on running three different 30-sec- ing up about half of that total. Web Editor Kristin Bull,(313) 446-1608 or [email protected] Research and Data EditorSonya Hill,(313) 446-0402 “The message that resonates ond TV commercials on cable and Proposal 1 would: or [email protected] with everyone is safer roads,” Gov. network channels in all state mar- Remove the sales tax on gasoline and diesel fuel. Web Producer Norman Witte III,(313) 446-6059, Rick Snyder told Crain’s in March. kets, along with radio spots in some Increase the state sales tax to 7 percent from 6 percent. [email protected] Editorial Support (313) 446-0419; However, voters are lacking the markets, Roger Martin, partner at Accompanying legislation YahNica Crawford,(313) 446-0329 concrete facts needed to make the Martin Waymire, told Crain’s last Newsroom (313) 446-0329,FAX (313) 446-1687 decision, said Ed Sarpolus, execu- month. Legislation tied to the passing of the proposal would recoup the costs TIP LINE (313) 446-6766 tive director of Lansing-based mar- A 30-second TV ad part of the lost from the removal of the gas tax through series of measures, including: REPORTERS Target-Insyght Jay Greene, senior reporter Covers health care,insurance,en- ket research firm . Safe Roads Yes campaign stars a Increase the wholesale fuel tax to 41.7 cents per gallon from 19 cents ergy utilities and the environment.(313) 446-0325 or “All the institutional polling says Michigan family concerned with per gallon for gasoline and 15 cents per gallon for diesel. [email protected] safety is the issue, but jobs and the concrete falling from overpasses on Create a $75 annual surcharge for electric vehicles and a $25 annual Amy Haimerl, entrepreneurship editor Covers entrepreneur- ship and city of Detroit.(313) 446-0416 or economic impact state highways. surcharge for hybrid vehicles. [email protected] on all of us is more “All the “Nobody likes Remove the three-year depreciation discount for new car registra- Chad Halcom Covers litigation and the defense industry. important,” Sarpo- paying more, but tion fees. (313) 446-6796 or [email protected] insitutional Tom Henderson Covers banking,finance,technology and lus said. “The ads we’re voting yes for Dedicate 60 percent of 5 percent of the raised sales tax to the School biotechnology.(313) 446-0337 or [email protected] don’t tell the voters polling says safer roads,” the Aid Fund. Currently, 60 percent of 4 percent of the tax goes to the fund. Kirk Pinho Covers real estate,higher education,Oakland and Macomb counties.(313) 446-0412 or [email protected] how it affects their safety is the mother says. “We’ll Guarantee that the School Aid fund is used exclusively for communi- Bill Shea, enterprise editor Covers media,advertising and mar- pocketbooks down pay more for roads ty colleges, technical career programs and K-12 districts. keting,the business of sports,and transportation. the road; most peo- issue, but jobs that are safer for our Dedicate 15 percent of 5 percent of the sales tax to revenue sharing (313) 446-1626 or [email protected] Dustin Walsh Covers the business of law,auto suppliers,man- ple haven’t had a and the family.” with townships, villages and cities, up from 15 percent of 4 percent of the ufacturing and steel.(313) 446-6042 or [email protected] damaged tire or a Other ads feature tax. Sherri Welch, senior reporter Covers nonprofits,services,retail chunk of concrete economic more concerned Allow municipalities to require competitive bidding on projects at and hospitality.(313) 446-1694 or [email protected] through their wind- impact on all of families along with least 50 percent funded by the community. ADVERTISING Source: Ballotpedia.org; House Fiscal Agency Sales Inquiries (313) 446-6052; FAX (313) 393-0997 shield, so does an us is more police, fire and Sales Manager Tammy Rokowski emotional ad about other emergency Senior Account Executive Matthew J.Langan safety really res- important.” services comment- Advertising Sales Christine Galasso,Joe Miller, onate?” ing on the dangers good strategy to change minds, but cent when those polled actually Sarah Stachowicz Classified Sales Manager Angela Schutte,(313) 446-6051 For example, the Ed Sarpolus,Target-Insyght of Michigan roads. the TV ad I’ve seen is just not very read the proposal language, Sar- Classified Sales Lynn Calcaterra,(313) 446-6086 ballot measure Tim Smith, CEO well executed from an emotional polus said. Audience Development Director Eric Cedo would fundamen- of Detroit-based ad- standpoint.” “We do a cold vote without the Events Manager Kacey Anderson tally reinvent the way K-12 school vertising and design agency Skid- Fred Wszolek, partner for WWP ballot language so we can gauge Creative Services Director Pierrette Dagg aid funding is administered, an as- more Studios, said playing on emo- Strategies, said it is a fact that the what voters are against in the pro- Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black pect of the plan that was initially tions is a widely used and effective roads are unsafe and believes the ad posal,” Sarpolus said. “Clearly the Special Projects Coordinator Keenan Covington planned as part of the advertising strategy, but he still questions the campaign is having an effect. ballot language is too confusing or Sales Support Suzanne Janik,YahNica Crawford blitz, but then removed. effectiveness of the Safe Roads Yes “We needed to start the conver- too complex.” Editorial Assistant Nancy Powers The original campaign, led by campaign. sation where we did. … It’s a fact When asked about the polling, Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos Lansing-based public relations and “Moving people to make a deci- that the roads are dangerous,” Ws- Wszolek said, “It’s complicated. The nonpartisan political consulting sion using emotion is a good driver zolek said. “People need to think of more you try to explain the features, CUSTOMER SERVICE Main Number: Call (877) 824-9374 firm Truscott Rossman LLC, had a for decision-making,” Smith said. the roads as part of their safety be- the more confused (voters) get, but or [email protected] two-pronged strategy of selling the “Using facts and figures is rarely a cause it is.” that’s how the Legislature wrote it. Subscriptions $59 one year,$98 two years.Out of state,$79 There are a number of anti- The fact is that this is a good pro- one year,$138 for two years.Outside U.S.A.,add $48 per year ballot measure efforts organized posal overall and there’s no alterna- to out-of-state rate for surface mail.Call (313) 446-0450 or (877) 824-9374. around the state, but none have tive out there.” Single Copies (877) 824-9374 INDEX TO COMPANIES spent much money to combat But Wszolek said Safe Roads Yes Reprints (212) 210-0750; or Alicia Samuel at [email protected] the referendum. One group, Citi- will begin to air ads explaining other To find a date a story was published (313) 446-0406 These companies have significant mention in Health Management Associates ...... 28 zens Against Middle Class Tax In- aspects of the proposal, including a or e-mail [email protected] this week’s Crain’s Detroit Business: Crain’s Detroit Business is published by Laurel Park Place...... 18 creases, is organized by former guarantee that funds have to be Crain Communications Inc. Advancing Macomb ...... 7 Macomb County Comm. Mental Health .... 10 Snyder adviser John Yob, now spent on transportation and the Chairman Keith E.Crain Ally Financial ...... 11 CEO of Strategic National Consult- road repair warranties. President Rance Crain Martin Waymire ...... 1 Treasurer Mary Kay Crain Amson Dembs ...... 14 ing in Grand Rapids. The campaign has a month to air Meridian Health ...... 11 Executive Vice President/Operations Ashley Capital ...... 14 Yob’s anti-Prop 1 petition calls new ads that will convince voters. William A.Morrow Mich. Dept. of Insurance Financial Services .... 1 the ballot measure “an unafford- Under the proposal, all road Executive Vice President/Director of Strategic Operations Avison Young...... 11 Michigan Venture Capital Association ...... 25 able tax increase on struggling work must be guaranteed by the Chris Crain Axis Advisors ...... 1 Executive Vice President/Director of Corporate Operations MiQuest ...... 5 families.” road and highway construction KC Crain Bedrock Real Estate Services...... 11 And a multimedia campaign op- companies, which exists in other Vice President/Production & Manufacturing Newmark Grubb Knight Frank ...... 11, 14 Bernard Financial Group ...... 11 posing the proposal created by the states, but not Michigan. Dave Kamis Oakland County Comm. Mental Health...... 10 Chief Financial Officer Thomas Stevens Blue Care Network ...... 1 Coalition Against Higher Taxes and Truscott said the campaign was Chief Information Office Anthony DiPonio Olympia Development of Michigan ...... 19 Blue Cross Blue Shield of Michigan ...... 28 Special Interest Deals is backed by going to be a tough sell to voters G.D. Crain Jr. Founder (1885-1973) Plante Moran Cresa...... 12 Saginaw Township businessman from the start, but now he believes Mrs. G.D. Crain Jr. Chairman (1911-1996) Blue Cross Complete...... 1 Paul Mitchell. it’s doomed to fail. Editorial & Business Offices Rock Ventures ...... 19 1155 Gratiot Ave.,Detroit MI 48207-2732; Colliers International...... 1, 12 So far, the pro-Prop 1 ads haven’t “I don’t know if the campaign can Signature Associates ...... 14 (313) 446-6000 Compuware...... 11 been swaying voters, according to recover,” Truscott said. “Everyone Cable address: TWX 248-221-5122 AUTNEW DET Cranbrook Institute of Science ...... 20 Skidmore Studios...... 29 recent polling. knows the roads are bad. It’s time to CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly,except for a special issue the third week of October, Detroit Economic Growth ...... 25 Stuart Frankel Development ...... 14 Sarpolus’ Target-Insyght con- move to the next point, but I don’t and no issue the fourth week of December by Crain Commu- nications Inc.at 1155 Gratiot Ave.,Detroit MI 48207-2732.Peri- Detroit News ...... 6 Summit Commercial ...... 28 ducted a poll earlier this month know if there’s enough time to make odicals postage paid at Detroit,MI and additional mailing of- Detroit Tigers ...... 3, 26 Target-Insyght...... 29 commissioned by the Lansing it work.” fices.POSTMASTER: Send address changes to CRAIN’S political news service MIRS. In Crain’s reporter Bill Shea con- DETROIT BUSINESS,Circulation Department,P.O.Box 07925, Detroit Wayne Mental Health Authority .... 10 Truscott Rossman ...... 29 that poll, 55 percent of voters tributed to this report. Detroit,MI 48207-9732.GST # 136760444.Printed in U.S.A. DuCharme Place ...... 18 University of Michigan...... 20 Entire contents copyright 2015 by Crain Communications Inc. said they’d vote no on Proposal Dustin Walsh: (313) 446-6042 All rights reserved.Reproduction or use of editorial content in General Development...... 14 WWP Strategies...... 1 1. That figure jumped to 65 per- Twitter: @dustinpwalsh any manner without permission is strictly prohibited. 20150406-NEWS--0030-NAT-CCI-CD_-- 4/3/2015 5:09 PM Page 1

30 CRAIN’S DETROIT BUSINESS // April 6, 2015 WEEKON THE WEB/March 28-April 3 RUMBLINGS WXYZ,WMYD Ex-D.C.mayor to speak announce Murri at DDP annual meeting as new GM ormer Washington, D.C., programs in Wayne and Oakland ike Murri was pro- Mayor Anthony Williams counties. moted to vice presi- will deliver the keynote Tickets are $50 and must be pur- dent and general F address at the Downtown chased in advance. For more infor- M manager of South- Detroit Partnership’s an- mation, visit nso-mi.org. field-based ABC affiliate WXYZ- nual meeting April 17. Channel 7 and WMYD-Channel 20, Williams, who served two terms Anti-discrimination isn’t the stations announced. Murri, as mayor from 1999 to 2007 after just for religion,Snyder says 55, who was WXYZ station man- [ARA HOWRANI] serving as the ager, replaces Ed Fernandez, who Zak Pashak, founder and president of Detroit Bikes,will make bicycles to district’s CFO, Gov. Rick Snyder made it clear becomes a divisional general promote Fat Tire Amber Ale. will share his last week that he doesn’t want manager for Cincinnati-based perspective on Michigan to become Indiana. station owner E.W.Scripps Co. plant in Howell and has engineer- boxing gym, a market garden in Detroit based on Snyder said Thursday that he ing and testing programs at its Chaldean Town and an artists mar- his experience in would veto religious objections leg- ON THE MOVE Troy technical center. ket in Southwest Detroit. the nation’s capi- islation unless lawmakers also send Ⅲ PlastipakPackaging Inc., a sub- Ⅲ A report by the new Coalition tal during its fi- him a bill ex- Ⅲ Susan Martin announced she sidiary of Plymouth plastic con- forthe Future ofDetroit Schoolchild- nancial crisis in tending anti-dis- plans to resign in July as Eastern tainers maker PlastipakHoldings ren says the state should remove AnthonyWilliams: the mid-1990s, crimination pro- Michigan University president, Inc., expects to close this summer Detroit Public Schools from emer- Slated to speak. said Eric Larson, tections to gays, then take a one-year sabbatical on a $300 million-plus deal to buy gency-manager control and as- CEO of the DDP The Republi- before teaching as a professor at Wales-based APPE Packaging from sume the district’s debt. The report and founder, president and CEO of can for months the school she has led since 2008. La Seda de Barcelona SA. calls for more transparency, more Bloomfield Hills-based Larson Real- has expressed Ⅲ Simon Boag was named by Ⅲ Detroit-based Huron Capital emphasis on charter schools quali- ty Group. skepticism with founder Tom LaSorda as his re- Partners LLC acquired New York ty, creating a city education com- “He’ll talk a little bit about his a proposed placement as CEO of Birming- City-based SkyTechnologies Inc. mission and dissolving the Educa- views and his experiences as they Rick Snyder: Vow state-level Reli- ham-based IncWell LLC. Boag had for one of its platform companies, tion Achievement Authority. relate to where Detroit is and where to veto. gious Freedom been a partner in the early-stage Albireo Energy LLC. Sky Technolo- Ⅲ County Executive Warren the future lays,” Larson said. Restoration Act venture capital firm. gies installs and manages energy Evans proposed eliminating the About 1,000 people are expected if there is no accompanying meas- Ⅲ RickLoewenstein, CEO of systems for large data centers. Wayne County Economic Develop- to attend the lunchtime event in ure to amend Michigan’s civil rights Farmington Hills-based nonprofit Ⅲ Algal Scientific Corp., a Ply- ment Growth Engine program and Cobo Center’s Grand Ballroom B, law by prohibiting discrimination Jarc for the past seven years, plans mouth-based maker of algae- folding its work into the county’s Larson said. against lesbian, gay, bisexual and to step down May 1 from the based chemicals for the food and economic development corpora- “We will be illustrating how not transgender residents in employ- agency for the developmentally beverage industries, closed on a Se- tion, a move expected to save the only the activity and the strength of ment, housing and public places. disabled. Chief Development Offi- ries B funding round of $7 million. financially troubled county’s gen- the downtown core helps support On Thursday, as Indiana and cer Rena Friedberg, 63, is interim re- Ⅲ Ann Arbor-based Arborlight eral fund $550,000 per year. the overall city, but DDP programs Arkansas scrambled amid criticism placement for Loewenstein, 54. LLC closed on a $1.7 million fund- Ⅲ An economic impact study and initiatives that started in the over religious objections bills, Sny- ing round to commercialize its in- shows Willow Run Airport gener- core and are finding their way into der went further and told the De- COMPANY NEWS door LED-based lighting system. ates more than 950 jobs and and having success in the neigh- troit Free Press he would veto such a Ⅲ The Ann Arbor-based non- $123 million in total economic borhoods,” Larson said. bill if it came to his desk as stand- Ⅲ Detroit Bikes LLC will produce profit Fair Food Network is getting impact in Michigan. The study, Tickets are $100 per person or alone legislation. 2,415 custom-designed fat tire bi- nearly $5.2 million from the U.S. conducted by University of Michi- $1,000 for a table of 10. Tickets are In the meantime, Indiana Gov. cycles to promote a Colorado- Department ofAgriculture to help gan-Dearborn associate business available at downtowndetroit.org or Mike Pence on Thursday signed a bill based beer. The manufacturer will boost the availability of fresh professor Lee Redding, was com- by calling (313) 566-8250 or emailing intended to rectify problems with a make the bikes for NewBelgium fruits and vegetables to people re- missioned by the Wayne County [email protected]. law he had signed just the week be- Brewing Co., brewer of Fat Tire ceiving food assistance. Airport Authority. fore. The new law bars businesses AmberAle, for shipment next year. Ⅲ Lynn Tilton, CEO of Auburn Ⅲ The Detroit Elected Officials J.K.Simmons to headline from refusing to serve gays and les- Ⅲ Sterling Heights-based Rizzo Hills-based Dura Automotive Sys- Compensation Commission ap- NSO benefit in Detroit bians on religious grounds. Environmental Services Inc. added tems, sued the U.S.Securities and proved 2.5 percent pay increases Canton Township to its 38 other Exchange Commission, claiming the for Detroit City Council members Actor J.K. Simmons is scheduled Shinola goes to Brooklyn waste hauler communities in agency’s filing of fraud charges and the city clerk. to headline a fundraiser benefiting metro Detroit through a deal to against her and her New York City- Ⅲ The Southeast Michigan Pur- the Neighborhood Service Organiza- Shinola/Detroit LLC is opening a acquire Canton Waste Recycling based private equity firm Patriarch chasing Managers Index rose tion in Detroit. store in Brooklyn on the Dumbo Inc.Terms were not disclosed. Partners violated the U.S. Constitu- sharply in March to 64.5, 8.5 The event will include a ques- neighborhood waterfront. Ⅲ For the sixth year in a row, the tion, Bloomberg reported. points above February’s level; val- tion-and-answer session and meet- The company is taking nearly U.S.Small Business Administration’s Ⅲ German auto parts giant ues above 50 indicate economic and-greet Mon- 5,000 square feet at Empire Stores, a Michigan district office named Robert Bosch GmbH agreed to plead growth. Meanwhile, the Michigan day morning at former coffee warehouse that is in Huntington Bank as Michigan guilty to price-fixing and pay a Economic Activity Index was up the Sound Board the process of being converted into a Lender of the Year for 2014. Farm- $57.8 million fine for its role in con- slightly in January, growing 0.3 in the MotorCity state-of-the-art office building with ington Hills-based Level One Bank spiring to rig bids for spark plugs, percentage points to 120.6. Casino Hotel. ground-floor retail space. The new was named Community Lender of oxygen sensors and starter motors Ⅲ A federal court jury in Pitts- Simmons is a location will be Shinola’s second in the Year and Export Lender of the sold to the Detroit 3 automakers, burgh rejected the claims of David Detroit native. He the city and its first in Brooklyn. Year. Huntington Bancshares Inc.is said the U.S.Department ofJustice. Wawrzynski, owner of the metro will throw out the In addition to its flagship store in based in Columbus, Ohio. Ⅲ Detroit-based Automotive Detroit-based Wok to You food de- ceremonial first Midtown, Shinola has shops in Ⅲ Dearborn-based Energy De- News, sister publication to Crain’s livery service, that a condiment J.K. Simmons: pitch Monday af- Chicago; Washington, D.C.; Los An- velopment Associates LLC, an elec- Detroit Business, won the Grand package he patented in 1997 led Baseball, benefit. ternoon at Com- geles; Minneapolis; and London. tric vehicle, solar and power elec- Neal Award, the highest award in H.J.HeinzCo. to develop its Dip & erica Park for the tronics engineering company, was national business-to-business Squeeze ketchup packets in 2010. Detroit Tigers’ opener. BITS & PIECES acquired by San Diego-based media, for its coverage of the Gener- Simmons received an Academy Ⅲ Rhombus Energy Solutions Inc. for al Motors ignition switch recall crisis. OBITUARIES Award this year for best supporting Likely 2016 presidential candi- an undisclosed price. actor for his role in “Whiplash.” He date Jeb Bush will be the keynote Ⅲ Ⅲ Ontario-based Magna Inter- OTHER NEWS Mike Fezzey, president of the also played the Tigers’ manager in speaker at the Lincoln Day dinner national Inc., North America’s Eastern Michigan region for the 1999 film “For Love of the Game.” of the Clinton County and Ingham biggest auto-parts maker, is in Ⅲ The Troy-based Kresge Founda- Huntington Bank and longtime Sheilah Clay, NSO president and County Republican parties on May talks to sell its car-interior busi- tion awarded $1.6 million for 18 former president and general CEO, said Simmons has been a 28. Details will be announced later. ness, Magna Interiors, to Spain’s projects run by nonprofits working manager of WJR 760 AM, died of longtime supporter of the nonprof- Wisconsin Gov. Scott Walker will Grupo Antolin, Bloomberg report- to strengthen Detroit neighbor- an apparent heart attack in Flori- it, which offers homeless recovery, attend the Oakland County Repub- ed. Magna Interiors operates a hoods, among them a new youth da. He was 57. mental health services and other lican Party’s Lincoln dinner May 4. DBpageAD_DBpageAD.qxd 4/3/2015 1:54 PM Page 1

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