Blue Cross Likes That Mutual Feeling

Home , Alanna Masterson, DTE Energy Headquarters, Minoru Yamasaki, Temple Beth El (Detroit)

20150309-NEWS--0001-NAT-CCI-CD_-- 3/6/20155:50PMPage1 – that’s good,maybe,Page15 Hotel demandraisessupply innovators toseetheD 2 Coboeventsallowyoung park bizups,downsareOK At RoushIndustries,theme to adviseongovernment Honigman hiresCarlLevin their favoritefeatures. breaking newsbutstillfind page soreaderscanbrowse media orinanemail. share storylinksonsocial site. what youthinkaboutthenew ister. one page,withclicktoreg- mation aboutaneventfrom lows userstogetalltheinfor- glance lookatthelateststories. lowing busyreadersanat-a- is atthetopofeverypage,al- tures include: tent hasn’tchanged.Newfea- your desktop. mobile phonetoyourtablet on everydevice,fromyour resize toimprovereadability story elementsautomatically is “responsive.”Thatmeans easier. your experiencejustgotalot your mobilephone?Ifso, NEWSPAPER Check itout,givefeedback The newCrainsdetroit.com: Page 3 MICHIGAN BUSINESS Take alookandletusknow Ⅲ Ⅲ Ⅲ Ⅲ Do youread At itscore,thesite’scon- The newCrainsdetroit.com A TopStoriesfeaturebox digital strategymanager The Eventssectional- A simplermethodto A streamlinedhome CRAIN’S — NancyHanus, Crain’s ©Entire contentscopyright2015byCrainCommunicationsInc.Allrightsreserved www.crainsdetroit.com Vol.31,No.10 on lines itwasbannedfrombefore. Michigan HealthInsuranceExchange lion annuallyinunderwritinglosses. which hassavedtheinsurerupto$100mil- money-losing individualmarketplans, during thenext18months. says staytuned:Morebigchangeswillcome niversary nextmonthasBlueCross’CEO, al healthinsurancecompany. during itsfirstfullyearasanonprofitmutu- changes at COURTESY OFBLUECROSSSHIELDMICHIGAN chart growth chart mutual statusto new nonprofit Insurer usesits Ⅲ Ⅲ Ⅲ So far,thenewcorporatestructurehas: But Loepp,whowillreachhis10-yearan- Dan Loeppsaystherehavebeenmany Allowed BlueCrosstocanceltwodozen Participated thepasttwoyearsin Entered specialtyinsuranceproduct CRAIN’S DETROITBUSINESS Blue CrossShieldofMichigan B Y J One yearintolife One yearintolife AY as anonprofit as anonprofit G expect more expect more CEO Loepp CEO Loepp REENE change, change, mutual, mutual, says. says. , whereit mutual feeling likes that Blue Cross MARCH 9–15,2015 Loepp How toletgo How toletgo Cross toforcetheDetroit-basedinsurerdi- ucts,” saidCox,whopreviouslyhadsuedBlue lines ofinsuranceandbundletheseprod- life insuranceandevenautoinsurance. property casualtylines,long-termdisability, age workers’compensationcontractswith said theBlues’AccidentFundcannowpack- heading Livonia-based looking atopportunities.” sell otherlinesofproducts,andtheyare pensation insurance,“nowhastheabilityto profit subsidiarythatsellsworkers’com- Insurance Co.ofAmerica with otherBluesplans,hesaid. experts. made theleapandfortipsfrom hear fromtwocompaniesthat port thatbeginsonPage 11 port delegating to. that theCEOfeelscomfortable — andbuilddevelopateam pain point:Howtodelegate many aCEOfacesthiscommon “They cangetintothesehigher-margin Michael Cox,formerattorneygeneralnow For example,Loeppsaid,the Turn toour While growingacompany, Second Stage re- panies orjointventures vestments inhealthcom- looking” atpossiblein- are inaspotwherewe mutual,” Loeppsaid.“We we arenowanonprofit nity togrownationallyas to lowerprices. guably forcedcompetitors 100,000 subscribersandar- has garneredmorethan “We havetheopportu- Mike CoxLawFirmPLLC , aBlueCrossfor- See Blues,Page34 Accident Fund ISTOCK PHOTO to , in Farmington Hills in Farmington Hills the ArchivesofMichigan. Harvey, statearchivistat malism cool,”saidMark legacy, expertssaid. masaki’s architectural sity Center Gregor MemorialConference Creative Studies Building Temple BethEl including tures Yamasakidesigned, local buildingsandstruc- Park andmanyoftheother story ran. 73, lessthanayearafterthe ter known forprojectsincludingthe be amongthelastdesignedbyMinoruYamasaki. years ago,noonehadanyideatheprojectwould W ‘cool’ legacy buildings hedesigned,includingTempleBethEl. works ofMinoruYamasakibutonemanylocal Brookfield OfficePark(above)wasoneofthefinal Yamasaki’s The architect’sworkhasaworldwidefollowing. Yamasaki “mademini- But BrookfieldOffice The acclaimedJapanese-Americanarchitect, in NewYorkCity,diedFebruary1986,atage , standon,asdoesYa- at at the was developinginFarmingtonHills30 Brookfield OfficePark hen Wayne StateUniver- One Woodward Crain’s CRAIN’S DETROITBUSINESS , the College for B and the Y Park,Park, ahigh-endcomplex ahigh-endcomplex to designBrookfield Office to designBrookfield Office YamasakiYamasaki washired washired OKN BACK BACK LOOKING LOOKING S Yamasaki HERRI reported onthehigh-end Mc- , W death in1986. concrete legacyuponhis Minoru Yamasakilefta See Yamasaki,Page37 that ELCH $2 acopy;$59year COURTESY OFARCHIVES COURTESY OFETKINLLC World TradeCen- Etkin EquitiesInc. Minoru Minoru MICHIGAN ® 20150309-NEWS--0002-NAT-CCI-CD_-- 3/6/2015 1:31 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 9, 2015

MICHIGAN BRIEFS Report: Grand Rapids area near ed. Bronk is president of the company, whose presence includes an the top in temp employment Planning a joint venture? Here’s a cautionary tale office in downtown Detroit. The Grand Rapids area was sec- According to a report from ond in the nation among metro ar- The lesson: Don’t let your startup start up. ness Insurance, the appeals court (and we’re a bit MLive, the most expensive coffee eas for its concentration of workers Kasey McDermott of Bay City, whose home was chagrined that this didn’t go to the Supreme Court, in the world, civet beans, is made in temporary employment, report- insured by Nationwide Mutual Fire Insurance Co., had so we could refer to the high court) affirmed a lower with Indonesian cat poop. So natu- ed MiBiz, citing a report from the reason to think she was covered when her husband court ruling that Nationwide wasn’t obliged to be on rally, you’d want to bookend your jobs website CareerBuilder.com. accidentally burned their abode to the ground. A their side because McDermott and then-husband day of ritualistic beverage con- The 24,739 temp workers in the number of complications, however. Brien Mathews, who had a medical marijuana card, sumption with a beer with coffee Grand Rapids-Wyoming metropoli- Her husband was producing marijuana in the neglected to inform the insurer that, hey, we’re made with cat poop. Enter the folks tan statistical area constitute 4.7 basement. growing pot back over by the furnace. at Perrin Brewing Co. in Comstock percent of the workforce, more than She and her husband failed to tell Nationwide. Nationwide also is entitled to “subrogation for Park and their Big Konas, which double the national average of 2 per- Or maybe it just slipped their minds. (Hmm.) payments it made to the policyholder before it will set you back $6 for an 8-ounce cent. The only MSA with a higher The 6th U.S. Circuit Court of Appeals. Yes, that’s a learned of the cause of the fire.” Translation: Fork mug of the hairball of the cat. concentration of temps was Mem- complication. over that $140K. Find business news from phis, Tenn., at 5 percent. As reported by Crain’s sibling publication Busi- So the takeaway: Even doobies need due diligence. around the state at crainsdetroit .com/crainsmichiganbusiness. Amway kin buy piece of Cubs; let ries since shortly after the cannon ors supplier that spun off of Johnson founder Dan Behm retires from Sign up for the Crain’s Michi- smoke cleared from the skies over Controls Inc., acquired Leon Automo- the information technology com- gan Morning e-newsletter at the countdown to regret begin … Fort Sumpter, thus commencing tive Interiors, MLive.com reported. pany after 18 years, MiBiz report- crainsdetroit.com/emailsignup. One of the families behind Ada- the Civil War. Kalamazoo-based Stryker Corp. based Amway Corp. appears poised boosted its share repurchase fund to risk its empire. Rich DeVos and by $2 billion to the highest level in kin have bought a minority inter- MICH-CELLANEOUS at least three years, damping spec- CORRECTIONS est in the Chicago Cubs, MLive.com Truven Health Analytics’ list of 100 ulation that the surgical-implant A story in the March 2 edition reported. Top Hospitals for 2015 includes four maker would make a takeover bid about the office building boom of for London-based Smith & Nephew DeVos, who owns the Orlando from Michigan: Holland Hospital, the mid-1980s included two pho- Plc, Bloomberg News reported. Magic of the National Basketball Asso- Southfield-based Providence Hospital tographs on Page 21 that misiden- The website Stadium Journey ciation, is one of six new minority and Medical Center and St. Joseph Mer- tified the individuals pictured. investors. The Ricketts family, ranked Van Andel Arena, home of cy Hospital and Ann Arbor-based Uni- Steve Morris of Axis Advisors LLC which owns the controlling inter- the Grand Rapids Griffins of the Amer- versity of Michigan Hospitals and Health and Doug Etkin of Etkin LLC are est, recently sold minority interests ican Hockey League, the best place Centers. Truven evaluates 3,000 hos- correctly identified here. in Chicago Baseball Holdings to help to watch a minor league hockey In the March 2 story “Ap- Morris Etkin finance the $375 million renovation pitals on their clinical quality, ex- game, the Grand Rapids Business tended 30-day outcomes, efficiency, proaching funding cuts threaten of Wrigley Field, informally known as Journal reported. The Griffins are federally qualified health centers,” the Wellness Plan Health Centers in “The Place Where Hopes Go to Die.” financial performance and how pa- an affiliate of the Detroit Red Wings. tients assess the care they provide. Detroit was improperly identified as a federally qualified “look-alike” It’s unclear how much the De- Meredith Bronk will become health center. The Wellness Plan has been certified as a federally quali- Holland-based Motus Integrated Vos family spent for a piece of a CEO of Grand Rapids-based Open fied health center the past eight years. team that hasn’t won a World Se- Technologies, an automotive interi- Systems Technologies Inc. as co-

Rocking the Intellectual Property World

Warner Norcross & Judd attorneys blaze new trails in intellectual property law. Raymond Scott and Greg DeGrazia represent KISS Catalog, Ltd., providing trademark solutions and litigation that protect the licensing of the rock stars’ images. When the U.S. Patent and Trademark Ofﬁce said that faces of entertainers couldn’t be trademarked, they were persuaded to approve precedent-setting trademarks for the iconic face paint of KISS. Trademarks for the face paint and logo are now registered in more than 40 countries.

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 3 Ex-Sen. Levin to join Honigman Inside To advise government relations, regulatory practice group

BY DUSTIN WALSH state and previous posts serving on the “A lot of this will be a walk in the park CRAIN’S DETROIT BUSINESS Detroit City Council. compared to where he’s coming from At Honigman, Levin will serve as an (Washington, D.C.),” Foltyn said. Former Michigan Senator Carl Levin adviser to the firm’s government rela- Foltyn said Levin will not participate will join Detroit-based law firm Honigman tions and regulatory practice group, the in any of the firm’s lobbying efforts. Miller Schwartz and Cohn LLP in April as firm told Crain’s. He will also assist Levin said it was his work with the Levin will advise senior counsel. Honigman’s corporate clients with inter- late David Paige — a partner with the Honigman on Levin, 80, retired from office, after nal investigations, crisis management, firm who died in July 2014 — on the De- government choosing not to seek a seventh term in compliance issues and alternative dis- troit Riverfront Conservancy that got him relations and TechTown’s departing leader regulations. the U.S. Senate, in January. That fol- pute resolution, Honigman CEO David lowed a 36-year career representing the Foltyn said. See Levin, Page 33 sits for exit interview, Page 4

Company index These companies have significant mention in this week’s Crain’s Detroit Business: Archives of Michigan ...... 1 Asset Acceptance Capital ...... 26 Blue Cross Blue Shield of Michigan ...... 1 Chrysler Group ...... 21 Cobo Center ...... 3 Coliant ...... 12 Detroit Metro Convention & Visitors Bureau ...... 15 Domino’s Pizza ...... 21 Dow Chemical ...... 21 Edward Lowe Foundation ...... 11, 13 Etkin ...... 37 Experience Grand Rapids ...... 16 Foley & Lardner ...... 6 General Motors ...... 21 Generations Home Care Group ...... 14 GiveYoung.org ...... 29 Greater Lansing Metro Convention & Visitors Bureau . 15 Honigman Miller Schwartz and Cohn ...... 3 Impact Management Services ...... 28 Jolly Pumpkin Artisan Ales ...... 33 LARRY PEPLIN Michigan Association of Health Plans ...... 34 Theme park work “utilizes all of the company’s core competencies and capabilities,” says Christopher Ableson of Livonia-based Roush Entertainment. Mike Cox Law Firm ...... 1 Nikki’s Ginger Tea ...... 11 PeachWorks ...... 27 Prefix ...... 36 Roush Entertainment Systems ...... 3 Roush rides designed to thrill Roush Industries ...... 3 TechTown Detroit ...... 4 TEDxGR Grand Rapids ...... 17 BY DUSTIN WALSH Since establishing the division in Toering Law Firm ...... 14 CRAIN’S DETROIT BUSINESS Company unit engineers, builds 2007, it has grown to represent Triad Services Group ...... 36 roughly 12 percent of Roush’s total University of Michigan ...... 21 Roush Industries LLC’s Building systems for world’s theme parks business, which generated revenue Van House Foundation ...... 29 50B on Plymouth Road in Livonia of $440 million in 2014. Entertain- Varnum ...... 6 is part skunk works, part produc- ment industry clients are now its Wayne State University ...... 4, 36 tion plant. the longtime Ford Mustang perfor- and animatronics for the world’s fourth largest global clients, behind West Michigan Policy Forum ...... 17 Inside the 450,000-square-foot mance retrofitter’s newest, and top theme parks. Ford Motor Co., FCA USA LLC and Gen- WhenToManage ...... 27 space, Roush is building the wide- most surprising, divisions — Roush Entertainment has done eral Motors Co. Yamasaki ...... 37 Roush Entertainment Systems. ly-reported electric neighborhood work for The Walt Disney Co., Univer- “(Theme parks) are absolutely a vehicle for Google Inc. — which re- The Livonia-based firm engi- sal Parks and Resorts, SeaWorld growth market for Roush, as it uti- mains shrouded in secrecy. But neers, designs and builds ride seat Parks & Entertainment Inc. and oth- Department index the building is also home to one of systems, show-action equipment ers around the world. See Roush, Page 36 BANKRUPTCIES ...... 4 BUSINESS DIARY ...... 32 CALENDAR ...... 31 CLASSIFIED ADS ...... 33 KEITH CRAIN...... 8 Conferences at Cobo set to attract young innovators LETTERS...... 8 MARY KRAMER ...... 15 BY TOM HENDERSON is about automotive technology. OPINION ...... 8 CRAIN’S DETROIT BUSINESS SPRING BREAK FOR THE SMART A common thread is putting De- OTHER VOICES ...... 9 troit in the center stage role of con- It has become a common sight in Engage International Investment PEOPLE ...... 32 Education Symposium: March 26- vening innovators. RUMBLINGS ...... 38 the past couple of years to see 27. Number of attendees: 2,500 The first, March 26-27, is the En- throngs of young people filling Shell Eco-Marathon: April 10-12. gage International Investment Educa- STAGE TWO STRATEGIES ...... 14 Campus Martius and the office Number of attendees: about 1,000 tion Symposium, where 2,500 stu- WEEK ON THE WEB ...... 38 buildings nearby that are part of dents, professors and business the emerging tech and entrepre- professionals from the U.S. and neurial scene in downtown De- other young people converging COURTESY OF ROYAL DUTCH SHELL Canada will gather for an annual During the Shell Eco-Marathon in the troit. from around the country for a pair conference aimed at finance stu- Philippines this month, students Later this month and in April, of conferences at Cobo Center. One posted ideas on an interactive wall. they will be joined by thousands of is focused on finance and the other See Cobo, Page 36

Location, location, location ... his vocation THIS WEEK @ So many buildings, it’s hard to keep track of real estate in real time. So catch up with Kirk Pinho’s blog, WWW.CRAINSDETROIT.COM crainsdetroit.com/kirkpinho

COSTAR GROUP INC. 20150309-NEWS--0004-NAT-CCI-CD_-- 3/6/2015 4:50 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 9, 2015 TechTown CEO’s departing vision: Helping midsize companies grow

On Thursday morning last we’re spinning week, you could find Leslie Lynn back in a mutually Smith mixing pancake batter in the beneficial way. community kitchen of TechTown Detroit. The networking breakfast What are you most was part of her last day as the CEO proud of in your of the business accelerator and in- tenure? cubator that she had led for the The SWOT pro- past five years. This week, she gram. I think our leaves for Memphis, where she decision to carry will helm the Entrepreneurship Pow- the resources and ered Innovation Center, a public-pri- assets of the city vate partnership with a goal of cre- center into De- ating 500 new companies and 1,000 troit’s neighbor- new entrepreneurs by 2025. hoods, and the In the past seven years, Tech- board’s support of Town, by comparison, has served that, has fundamen- 1,026 companies, which raised tally changed the more than $107.26 million in start- way we talk about DAVID KIDD up capital and economic develop- TechTown Detroit CEO Leslie Lynn Smith is leaving contributed ment in the city. Detroit for Memphis to lead the Entrepreneurship 1,190 jobs to the Powered Innovation Center. local economy. How did you get the Q A It also created board to support that? critical element of any comprehen- & SWOT City I asked for it after I did it. We sive strategy, but it’s only a single !30!24.%23 9/5'%44/&/#53/. Leslie Lynn Smith, (Strengths, had been talking about it for a real- element. I feel like Goldman Sachs TechTown Weaknesses, ly, really long time, but once I had 10,000 Small Businesses is trying to Opportunities a committed partner in Kirk get that. "5),$).'9/52"53).%33 and Threats) to offer technical sup- Mayes and the Brightmoor Alliance I’m talking about the types of 7(),%7%&/#53/.&).!.#).')4 port to small businesses in De- and a funder (the Marjorie S. Fisher companies where the walker troit’s neighborhoods. In the first Endowment Fund of the Community works. The injection molding two years of the program, it assist- Foundation), I sort of said to them firm with maybe 10 to 20 employed 225 existing businesses, such as we have this opportunity to move ees that with a little bit of techni- Sweet Potato Sensations, and into Brightmoor and pilot a pro- cal assistance, advice and support helped launch eight others. More gram that is potentially provoca- and capital infusion could grow to than 90 percent of those it reaches tive and powerful. So I brought 30 employees. I feel like if you are African-American. them the partner and the funding took 50 companies and added 10 Now Smith turns over that work and asked for support and they jobs at each, that’s a big-ass deal. to Ned Staebler, Wayne State Univer- granted it. And those are real jobs. They pro- sity’s vice president for economic vide living wage and benefits and development. He will act as CEO What is the most important lesson and maintain his role at the uni- you’ve learned? all the things associated with a versity. This happens as Tech- This work and funding of this “job.” Town prepares to remerge with work require a long-term vision Founders are not that. We count the university, which founded the and commitment to change and them as jobs, but they are not sort organization in 2000 and then later willingness to tolerate setbacks. of full-time, middle-class participa- Increase your cash flow and pursue spun it off. One thing that concerns me is that tive jobs. So I feel like we need to bigger opportunities with our customized, Crain’s Entrepreneurship Edi- we don’t want this work to be spend some time focusing on those flexible lending solutions. tor Amy Haimerl sat down with transactional and not have trans- midsized companies. Smith last week to talk about what formed the nature of our city and That’s one of the strategies the s!2&INANCING (248) 658-1100 she’s learned — and the changes the opportunities. That takes a SWOT team has been working on s,INESOF#REDIT www.hitachibusinessfinance.com coming to TechTown as the orga- long view. for the past 18 months. How do we nization prepares to roll back into do more B2B and deeper engage- Wayne State University. Where do you think Detroit is right ment with procurement opportu- now in looking at that long view? Is nities? We need to figure out how What is the future of TechTown? that happening? to get the right sources of capital We have proactively positioned We’re coming to it. I think we’re priced appropriately to meet the TechTown and Wayne State more beginning to understand. I really demands of the new contracts. And closely together to leverage our give Detroit Future City a lot of credit then we need to help them to man- longstanding relationships. We’ve for this part of it. Detroit Future age that growth. been together since the beginning City laid out that extraordinary, I’ll tell you, they don’t know and both have developed powerful, visionary plan for the city and al- how to manage that growth. productive programs surrounding ways said it was a 50-year plan. Amy Haimerl: (313) 446-0416, innovation and economic develop- They forced us to think about the [email protected]. Twitter: ment and communitywide engage- length of commitment in terms of @haimerlad ment. It also alleviates this perva- decades, and I think it reset the sive challenge that TechTown has conversations we were having had to identify continuous reliable about how long we had to do this funding. work. And while we should contin- President M. Roy Wilson has ue to look for a series of sort of in- understood the value of TechTown termediate victories, it’s a long BANKRUPTCIES since the day he arrived and that it game. The following businesses filed for pro- adds valuable programs to the uni- tection in U.S. Bankruptcy Court in De- versity. What’s the thing you would like to see troit March 2-5. Under Chapter 11, a happen here in terms of entrepreneur- company files for reorganization. Chapter 7 involves total liquidation. It sounds like TechTown is spinning ship? A-1 Specialty Services Co. LLC, 214 back into Wayne State. Because of the work we’ve done Yes. As Ned says, it’s like the kid Farrand Park, Highland Park. Chap- in the neighborhoods, I would love ter 7. Assets: $855; liabilities: $17,906. coming back to the family busi- to see a focus on medium-sized H&M Party Store Inc., 3355 Dix High- ness. The kid goes out and learns companies that need expertise and way, Lincoln Park. Chapter 11. Assets: all the tricks of the trade and ma- investment to grow and to add new $80,550; liabilities: $344,020. tures and develops its own sense of customers and jobs at a clip of five, Infiniti Homes International Inc., 29193 self and then comes back and the six, 10 at a time instead of continu- Northwestern Highway, No. 721, strength of the relationship is ob- ing to have an overarching focus Southfield. Chapter 11. Assets and lia- vious and apparent to everyone. bilities not available. on the startup economy, which is a And that’s exactly how I feel. So — Chad Halcom DBpageAD_DBpageAD.qxd 3/2/2015 12:57 PM Page 1

In the spirit of Girl Scout founder, Juliette Gordon Low and in celebration of Women’s History Month, Girl Scouts of Southeastern Michigan honors women for their outstanding contributions to our community with the “One Tough Cookie” Recognition. The Leadership recognition honors female leaders of character in their personal and/or professional lives and the Community Service recognition honors women for their volunteer/philanthropic activities in the community. We wish to recognize the 16 women that have been nominated for 2015. They are truly an inspiration to the next generation of female leaders. 2015 Honorees Recognition for Leadership: Recognition for Community Service: TERRY BARCLAY KAREN PALKA SHARON AGNEW CAROLYN CASSIN CYNTHIA J. PASKY BARBARA ELKRIDGE LYNN DRAKE VICKY RAD MICHELE HODGES THE HONORABLE PAM FARIS MAXIMILIANE STRAUB COLLEEN PETERS MICHELE HODGES KYM L. WORTHY KATRINA STUDVENT LAURENE H. HORISZNY ELREE WATKINS

Past recipients of the recognition: 2014 Honorees Recognition for Leadership: Recognition for Community Service: ELIZABETH L. ADERHOLDT DR. GLENDA D. PRICE SHERRI ABBULONE SUE ELLEN EISENBERG THERESA RICH, Ph.D. BRENDA BROWN, Ph.D. SANDRA K. ENNIS ALICE RIEVES JOAN FOGLER MONICA L. MARTINEZ DR. TONI SOMERS DEBORAH L. MACON DARA T. MUNSON JESSICA SUZIO DARCI E. MCCONNELL LYNN MARIE OATES The top honoree for this category: ALICE RIEVES DR. GLENDA D. PRICE MARY TURNER COURTENEY ZAGACKI The top honoree for this category: BRENDA BROWN, Ph.D. 2013 Honorees Recognition for Leadership: Recognition for Community Service: CHRISTINA CARLIN KATHLEEN MCCANN MAGGIE ALLESEE COURTNEY CARPENTER PAMELA MOFFITT DEBORAH I. KEY DR. NANCY CORATTI CINDY NORLIN AMAL MAZEH SHAPRINA EVANS DR. SUSAN PAURAZAS, D.D.S. KATHLEEN MCCANN JOANNE FAYCURRY NANCY L. PHILIPPART BARBARA JEAN PATTON LINDA D. FORTE LISA SARKISIAN GLENDA LEWIS KATHLEEN SWANTEK The top honoree for this category: DENISE WILLIAMS MALLETT CASANDRA E. ULBRICH, Ph.D. MAGGIE ALLESEE FLORINE MARK EQUILLA WAINWRIGHT The top honoree for this category: LINDA D. FORTE

Our 2015 honorees will be recognized at the annual Cookie Gala on March 25, 2015 at the DTE Energy Headquarters in Detroit. Cookie Gala Presenting Sponsor 20150309-NEWS--0006-NAT-CCI-CD_-- 3/6/2015 4:51 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS March 9, 2015 Varnum to expand regional reach with Detroit law office

BY CHAD HALCOM passing the 40 attorneys in the city technology startups and height- without a signifi- ed its headquarters from Grand CRAIN’S DETROIT BUSINESS for Foley & Lardner LP and about 40 in ened federal regulation in certain cant presence in Rapids to Livonia in 2004. Southfield and Sterling Heights for industries, may make it more ap- downtown De- Varnum followed with what was The new Varnum LLP office expect- Grand Rapids rival firm Warner Nor- pealing lately to a small subset of troit. That’s originally a small Novi office in ed to open in Detroit’s Federal Re- cross & Judd LLP. firms elsewhere, attorneys said. probably a key 2005, but it expanded and added a serve Building by July reflects a Metro Detroit has not been a “We had some debate about ex- driver in the de- local tax law focus by acquiring change in how at least one out-of- destination for top national law panding by moving into a second cision.” the attorneys of Raymond & Prokop town law firm sees the region. firms to make major inroads in re- suburb (of Detroit), but that debate Kyros said PC, formerly of Southfield. Since The Grand Rapids business law cent years — every local merger or didn’t last very long,” Varnum Ex- Varnum, a 127- then, it has picked up other busi- firm expects to have 45 or more lo- acquisition reported since 2007 has ecutive Partner Thomas Kyros year-old firm ness through a combination of pro- cal attorneys within two years be- either been an outbound transac- said about the new office. Kyros with about 145 grams assisting local tech star- tween its new Fed building lease tion with a Detroit firm expanding “It was not a target we were try- attorneys, tried tups, new client recruitment and a from Bedrock Real Estate Services outside the area, or two law firms ing to shoot for, to be bigger than in fits and starts to enter Southeast brisk local market for attorneys LLC and the metro Detroit office in combining here at home, accord- Warner or anyone else in that re- Michigan in the 1990s with an occa- making lateral moves between De- Novi it opened in 2005. ing to legal management consult- gion. But we think we can be in that sional lateral hire. But nothing troit firms, he said. That would give Varnum the ing firm Altman Weil Inc. same kind of position in the market gained traction until one of its The leadership team noticed largest presence in the region of any But its recent manufacturing there that we have held in West largest clients, Tower International something was going on about five firm not actually based here, sur- comeback, along with a surge in Michigan, and we can’t get there LLC (then R.J. Tower Corp.), relocat- years ago, Kyros said, during its effort to open a new Chicago office that never materialized. “... We had noticed Novi was really growing in an organic way. With laterals and new clients, Novi was picking up with practi- cally no effort, while the Chicago expansion we were attempting was “ WHAT’S DTE ENERGY going nowhere, with tons of effort. So we regrouped.” The Novi office now has about 30 attorneys, including 10 that Var- DOING TO MAKE IT num has added in the past year — many of them making lateral moves from positions in Jaffe Raitt Heuer & Weiss PC or Keller Thoma PC in South- EASIER ON BUSINESS?” field, Dykema Gossett PLLC in Detroit and the Bloomfield Hills office of Cleveland’s McDonald Hopkins PLC. In July, Kyros said, at least seven The new interactive eBill from DTE Energy makes it easy to analyze energy usage and pay your attorneys will relocate from Novi to bill. The new, simple layout shows your usage at a glance, gives you links to energy-saving ideas, the Federal Reserve Building, where Varnum will have nearly and lets you pay your bill in a snap. There are even sections speciﬁc to your business that can 10,000 square feet on the fifth floor, and he expects to grow to 15 attor- help you understand and manage what you use, and pay. neys or more within about two years. Meanwhile, he expects Novi will continue to add new attorneys. The firm also reports that about 40 of the 140 startup, early-stage and growing companies to take part in Varnum’s MiSpringboard legal assistance program since 2011 were in Southeast Michigan — 27 in Detroit and 13 in Ann Arbor. Sally Like, Owner MiSpringboard is a Varnum ini- Marcile’s Fashions & Bridal tiative to provide $1 million of legal services to entrepreneurs and startup businesses. About 32 companies statewide that obtained free legal services through MiSpringboard have gone on to become paying Varnum clients, the firm reports. The firm is about halfway to its $1 million program goal, Kyros said. Like Varnum, Foley & Lardner also has a large number of automotive supplier and other manufacturing clients in the region — the large national firms with a larger manufacturing practice are more likely to be attracted to Detroit than their competitors. “The larger firms you see around the country are more financial services-centered, and are likely to look at markets with those clients like Chicago, or greater San Francisco,” said Daljit Doogal, Foley’s managing partner in the Detroit office; the firm’s headquarters is in Milwau- kee. “But the firms who do come here are more likely to have a stronger manufacturing client base.” Foley has picked up six new attorneys in the past year, Doogal said, about half of which were lateral hires from other firms. Kyros said revenue for Varnum in recent years is “in the ballpark” of $50 million. DBpageAD_DBpageAD.qxd 3/2/2015 1:07 PM Page 1

THE 2015 SPRINTER

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Page 8 CRAIN’S DETROIT BUSINESS March 9, 2015 OPINION Snyder, Schuette collide on Prop 1 pring thaws will produce more potholes, which may help strengthen support for Proposal 1, the May 5 ballot Sproposal asking for a one-cent increase in the state sales tax to steer more funding to Michigan roads. It wasn’t warm everywhere last week. In Lansing, we felt deep-freeze, historic lows after Attorney General Bill Schuette made his bid to succeed Gov. Rick Snyder official. (Actually, Schuette only issued a statement opposing Proposal 1.) Schuette didn’t even wait for some kind of public forum where he could be asked about Prop 1 to air his views. Instead, he issued a formal statement — an in-your-face act, considering his Republican colleague, Snyder, is pushing Prop 1. We’ll see how long memories are among major donors who support Snyder and his bid to put more money into roads. Miller a Great Lakes defender U.S. Rep. Candice Miller has been an effective voice for her 10th District. As she prepares to retire late next year, her con- gressional colleagues can provide a special gift: support for stop- ping Asian carp and other invasive species from entering the Great Lakes. LETTERS An accomplished sailor, Miller knows how critical the lakes are, for everything from drinking water to tourism. The economic impact of fishing and recreational boating alone in the region is pegged at more than $20 billion. Watch care, costs for seniors Last month, Miller, a Republican, joined U.S. Sen. Debbie Editor: is a check every two hours, and for Crain’s Detroit Business Stabenow, a Democrat from Michigan, to introduce bipartisan As the owner of an assisted living people who have any form of de- welcomes letters to the editor, facility in White Lake Township as mentia, that will not be safe. Sure, legislation on these threats. Dubbed the Defending Our Great provided they are signed and do Lakes Act, the bills would give federal agencies the power to well as a private duty home care not defame individuals or there are 24-hour home care ser- take specific and immediate actions to halt the spread of inva- company and Medicare-certified organizations. Letters may be vices available, but that will be home health agency, I wanted to edited for length and clarity. $10,000 or more per month just for sive species. And it would require federal agencies to work comment on Crain’s article on se- the care services. Write: Editor, Crain’s Detroit with local authorities to create long-term measures to block nior housing developments (“Se- Crain’s hit the nail on the head Business, 1155 Gratiot Ave., the species from advancing from the Mississippi River basin. nior housing development surges with the fact that we are just not Detroit, MI 48207-2997. as population ages, but low-income developing enough low-cost op- projects lag,” March 2, Page 11). Email: [email protected] tions. Medicaid needs to be re- Quality, not quantity, for charters There are two main points: formed to allow for more dollars to 1) The rates quoted in this article for someone who needs a high lev- flow to home care and assisted liv- On his way toward retirement, state Superintendent Mike do not include any form of actual el of care. It’s been my experience, ing instead of directly to skilled Flanagan last week offered an important recommendation to care. So you are going to pay $2,800- as I have worked with families for nursing, as it does currently. But other state leaders: Cap the growth of charter schools. 5,500 per month in rent. Then any years, that keeping that apartment that takes Lansing making moves Flanagan favors school choice — just not the way Michigan type of care or assistance will be an filled often outweighs doing what to stir up developers to start build- additional charge. These are inde- is best for the person, moving ing that type of model, also. has chosen to offer it. In public comments last week, he warned pendent living facilities for people them to an environment that pro- This industry is confusing for that allowing an unlimited number of charter schools dilutes relatively independent. vides actual 24-hour care. These fa- most consumers, and the way ser- strong performers and cripples schools trying to improve. The comment is made that ser- cilities have their place, of course, vices are advertised makes things Gov. Snyder is awaiting recommendations from a Detroit vices are available as people’s but it’s irresponsible to think that even more confusing. coalition of political “odd couples” before deciding how best to needs increase so that they don’t they can provide care to the end of Nathan Mazur have to move. This may be true up life. That’s just not the case. President manage Detroit public schools. to a point, but do not be fooled. 2) Why are we letting home care Mazur Senior Care Services Inc. Some way to rationalize the supply of schools will be an im- What is offered is nowhere near companies provide assisted living portant piece of that puzzle. assisted living, and it is dangerous services? The best that they can do See Letters, Page 9

KEITH CRAIN: It’s too soon for Candice Miller to retire Last week, my favorite Michi- woman’s age — Candice that her role is to repre- won re-election I have no idea what her plans gan secretary of state and seven- Miller is far too young sent her constituents in some years by are at this time. And I am sure that term congresswoman announced to hang up her spurs Macomb County and 30-, 40- or nearly if anyone asks her, she will tell you that she would not run for an and sit in a rocking most of Michigan’s 50-point mar- that she is intent on working hard eighth term in the U.S. House of chair. Thumb. Nothing very gins. at her present, elected job until her Representatives. She was a remarkably highfalutin’ about that When she is term is over, and she is only con- Candice Miller says she is com- good secretary of state — just represent the finished with cerned about that at this time. Her ing home to Michigan. and has done nothing voters in her district the current term official statement speaks to that. I hope she is not through with short of a great job rep- and bring home the ba- and returns to But I hope that there are plenty public office. She would be a very resenting Macomb con. She has brought a Michigan, it will of folks in Michigan who under- formidable candidate for any state County. I have always lot of value to her dis- Miller be early 2017, so stand that she has been a very ef- office in Michigan — particularly marveled at how she re- trict. she’ll have plen- fective elected official. governor when Rick Snyder finally understands her She does her job with- ty of time to look around and see It would be a real shame not to ishes his second term. role, as a House member, in the out worrying about the next job — how Michigan could best use her see that talent continue to serve At age 60 — I know, never tell a U.S. government. She understands with little or no fanfare. She has talents. folks in Michigan. 20150309-NEWS--0008,0009-NAT-CCI-CD_-- 3/6/2015 11:28 AM Page 2

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Michigan’s growth depends on natural gas

In many ways, Michi- Michigan’s natural gas make sure the Rover pipeline is Rover would be a new under- ardous Materials Safety Commis- gan’s job providers repre- wells produce only 18 per- approved by federal and state au- ground superhighway for natural sion and the Federal Energy Regu- sent the very best of the cent of the state’s annual thorities and is built as planned. gas and would ensure Michigan’s latory Commission. American spirit. Despite consumption; the remain- For a natural gas-hungry industri- natural gas supply for generations. While Rover would be overseen tough economic condi- ing 82 percent is delivered al state like Michigan, Rover Furthermore, Rover would bring a by the federal government, it tions, these companies — by an interstate transport means the full benefits of Ameri- $3.7 billion capital investment by would be financed by private in- from small companies to network that is dangerous- can domestic energy sources will Energy Transfer Partners. It vestors at no risk to taxpayers — large manufacturers — ly close to saturation. travel to Michigan and will sup- would also employ 1,500-2,000 lo- and the economic benefits would help keep the United We are facing a natural port the resurgence of our state’s cally skilled laborers for construc- remain here in Michigan. States running. gas traffic jam that could manufacturing sector. tion and have long-term operator The numbers add up: The Rover Michigan employers create spot shortages and When complete, the Rover positions. pipeline project is a win-win for have helped the state re- Jim Holcomb drive up cost. In fact, the pipeline would stretch from Penn- Natural gas pipelines are the our state. It would assure that bound from an unemployment rate Michigan Public Service Commis- sylvania to West Virginia and Ohio. safest way of transporting natural Michigan’s growing economic re- of more than 14 percent in 2009 to sion believes the state will face a It would then cut north and cross gas. Rover will meet or exceed covery doesn’t run out of gas. just over 7 percent in 2014, and the generation capacity shortfall of 3 southern Michigan and connect to state and federal safety require- Jim Holcomb is senior vice presi- trend continues to improve. But to gigawatts by 2016. existing pipeline infrastructure, ments. It will be built and operated dent for business advocacy and as- keep our economy growing, Michi- The facts speak for themselves; bringing affordable domestic ener- under the strict supervision of two sociate general counsel for the gan needs new access to afford- it is in Michigan’s best interest to gy to the Midwestern market. federal agencies: the Pipeline Haz- Michigan Chamber of Commerce. able, clean and efficient energy sources without shackling growth to foreign energy sources. Affordable, domestically pro- duced natural gas is a key component to jump-starting America’s manufacturing comeback. As the cleanest burning fossil fuel, it sup- ports cleaner air and is also in high demand by manufacturers. Our challenge is to get the natural gas to the key utility points — and Michi- gan is definitely one of those points. Not only is natural gas key for many of Michigan’s industries, but in this state synonymous with cold winters, 80 percent of house- holds are heated with natural gas. WE BELIEVE In contrast, Michigan’s demand for natural gas has never been matched by the state’s ability to produce it. According to recent data, PERSONAL ATTENTION LETTERS CONTINUED IS BEST GIVEN IN PERSON. ■ From Page 8 Mind infrastructure When you work with the Huntington Private Client Group, we meet with you face-to-face. Editor: Using our Listen, Plan, Advise® approach, we work with you to create a clear plan that fits “A warning: Watch pension plans” (Mary Kramer column, your needs, giving you meaningful advice about the options available for meeting your March 2) was insightful and true. All local (and state) governments objectives. As your goals change over time, we help you review your plan to make any have to moderate future promises they make to their employees. necessary revisions. And we keep you involved every step of the way. Many refer to the pensions and other post-employment benefits municipalities have on their books (liabilities) as the elephant in the room. However, the bigger elephant is the cost of above- and below-ground infrastructure maintenance and replacement. Eric W. Dietz A city could ultimately shed the liabilities associated with pen- Senior Vice President and Regional Manager sions and retiree health care. We Private Client Group have seen this in Detroit, and as your article pointed out, Lincoln Huntington National Bank Park will likely have to alter its past promises. But as a service provider, a local government must be able to push water, collect sew- 220 Park Street erage and have passable roads. If a Birmingham, MI 48009 large water main breaks, a sink- 248.637.8206 phone hole erupts or a bridge collapses, they must be fixed. Yet many local 248.824.4441 cell governments don’t have the re- [email protected] serves to deal with any cata- clysmic infrastructure issues. It’s time the public pays more attention to what’s going on deep in their local governments (municipalities and schools). While residents don’t necessarily care about HUNTINGTON PRIVATE CLIENT GROUP the accounting associated with a “discretely presented component The Huntington Private Client Group is a team of professionals that includes Private Bankers and Personal Trust Administrators and Portfolio Managers from The Huntington National Bank and licensed investment representatives of The Huntington Investment Company, who work together to deliver a full range of wealth and financial services. unit fund,” they do want clean water to come out of the tap when Member FDIC. ®, and Huntington® and Listen, Plan, Advise® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.™ is a service mark of Huntington Bancshares Incorporated. ©2014 Huntington Bancshares Incorporated. they turn it on. Bob Kittle President. Munetrix LLC Keego Harbor DBpageAD_DBpageAD.qxd 2/27/2015 9:41 AM Page 1 20150309-NEWS--0011-NAT-CCI-CD_-- 3/6/2015 11:02 AM Page 1

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 11

FIGHT THE LAWSUIT ... OR SETTLE? Whatever the decision, a business should make a choice — and fast, Page 14

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship editor and covers the city of Detroit. She can be reached at (313) 446-0416 or at [email protected]

Amy Haimerl Pair unlikely city partners Dear Mayor Duggan: Let’s talk about small business. You’re a booster; I’m a booster. Even if Monique Sasser (right) could stand We agree that supporting the heat, she got out of the kitchen where entrepreneurs is critical to the future she was simultaneously concocting and of the city. You’ve even hinted at a building Nikki’s Ginger Tea. To be more few bold new programs, from an accurate, says her top executive, “innovation corridor” along Woodward Andrena, “I kicked my mom out.” Avenue to Motor City Match, which will provide $2 million worth of grants, loans and in-kind services this year to help small businesses find and renovate space. But here’s what else we need: an

advocate who can both assist small JOHN SOBCZAK businesses with city licensing and permitting and coordinate the efforts of the many business development programs. Seriously. Our problem is not a lack of support but such a plethora — in an impenetrable fog of acronyms — that it is confusing to navigate. It’s not just me seeing this. A How to let go recent report by the Federal Reserve Bank of Chicago found that “the city of Detroit is a resource-rich place” with thousands of programs to connect small-business owners. But it also Leaders of growing businesses share lessons learned found that black business owners feel disconnected from the resources, calling that “one of the most BY GARY ANGLEBRANDT Signore is manager of entrepreneur- Delegation means giving up authori- important impediments” to their SPECIAL TO CRAIN’S DETROIT BUSINESS ial education at the Edward Lowe Founda- ty to people who may not have the same growth and development. tion in Cassopolis, where he helps owners passion or appetite for risk, Signore Big-think blue-ribbon panels are ino Signore speaks to hun- great, but we also need to put people of second-stage businesses — defined as said. But to grow the business into this such as Devita Davison of FoodLab dreds of second-stage business those with annual revenue of $1 million stage, and someday out of it, the Detroit in the same room as Antonio owners a year. During his sem- to $50 million and 10 to 99 employees — founder must accept this new reality by Luck, managing director of Endeavor inars, he likes to ask how Detroit. D evolve from the seat-of-the-pants startup letting go and forming a management Historically, these two groups would many of them signed up to be managers days to the more bloodless manager role. structure. never meet. One helps small food when they launched their businesses? “Now all of a sudden they’re becom- Crain’s talked to Signore and two lo- entrepreneurs; the other mentors How many attended a business class? ing more of an executive — becoming cal businesses about their tips and men- companies facing explosive growth. But connecting the spectrum of Not many hands go up for either managers. Many of them don’t like tal approaches that can make this tran- entrepreneurship is good for our question. that,” Signore said. sition less painful. economy. After all, these small neighborhood joints and second stage companies make up 72 percent of firms in the U.S. fire was Jim Hiller, founder of Hiller’s Markets first were her daughter, Andrena Sasser, and account for more than half of the Nikki’s Ginger Tea LLC and guest speaker, who made the surprise an- who became vice president, and Katherine country’s jobs, according to the nouncement at the event that his stores Randolph, who was her kitchen manager. Cassopolis-based Edward Lowe Owner: Monique Sasser Foundation. There is power in numbers. would carry Nikki’s Ginger Tea. But it was a few years more before circum- Struggle: Rapid growth leading But with the growth came the problems. In stances forced her to really let go. Or, more Both feed off each other. One to inconsistent product creates a sense of stability and the first months of 2012, as Nikki’s took up accurately, it was Andrena who forced her. “I kicked my mom out of the kitchen,” she strength in neighborhoods; the other he last time Crain’s heard from Hiller on his offer, product issues emerged. said. provides jobs to support those Monique Sasser, she was on stage at The bottles were swelling on the shelf and the neighborhoods. T the 2011 Salute to Entrepreneurs taste was inconsistent from bottle to bottle. What tasks were delegated? Detroit has the ability to be more awards event, facing the crowd and a bal- That’s when Sasser got serious about let- Up to this point, Monique had been whip- than a collection of boosters talking looning business. ting go and delegating more. about how entrepreneurs can save ping up batches on the fly. Sasser, owner of Detroit-based Nikki’s Gin- this city. Let’s show the country that it “I’m like a mad scientist in the lab, stirring ger Tea LLC and a Salute winner that year, What precipitated the decision to put others in is possible to create, value and grow pots. Everything is in my head. We needed to told the audience at Greektown Casino-Hotel charge of operations? all entrepreneurs, from neighborhood- get recipes,” Monique said. supporting Good Cakes and Bakes on how she’d gone from cleaning houses to get- Sasser began selling her teas in 1997 to Livernois Avenue to high-growth ting her products into a Whole Foods Market bring in some money on the side. It wasn’t Skidmore Studios downtown. store the previous month. Adding fuel to the until 2010 that she brought in managers. The See Let go, Page 12 20150309-NEWS--0012,0013-NAT-CCI-CD_-- 3/6/2015 10:16 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 9, 2015 Second Stage Let go: Turn over reins with less pain ■ From Page 11 This is when Andrena stepped Trusting a person in her 20s, It’s a work in progress. Coliant is in. who also happens to be her daugh- in the middle of its third search for “She would be throwing stuff to- ter, to manage her business was a company president in two years; gether, and I said, ‘Mom, there’s no the biggest challenge for Monique. the last two tries didn’t work out. way to tell people the nutrition facts “People would say, ‘Why do you “Going from an entrepreneurial or why this batch is milder from an- want to make her vice president? state to a professionally managed other,’ ” Andrena remembered. She’s so young.’ I wanted her to state is the art of making 4,000 de- Andrena dove into research on grow into that title. I was tired of cisions in a two-year span. A lot of shelf stability and ingredients, de- wearing so many hats,” Monique things are moving fast,” said CEO veloping the recipe and setting a said. John Swiatek. repeatable process. This protected She was able to let go by trusting not just the consistency of flavor her daughter — keep the personal What precipitated the decision to but also the stated nutrition facts separate from business when it put others in charge of operations? on the bottle. comes to working with family, she Coliant for many years focused Then she trained Randolph to advises — and reminding herself solely on the consumer market — take over the day-to-day kitchen that the business would stagnate if motorcycle and powersports en- management. Andrena now is in she kept “doing things mom-and- thusiasts. Then three years ago, charge of making sure overall oper- pop.” work started picking up for the ations run smoothly, and watching “It’s up to the younger generation companies that make those con- orders and deliveries. She also man- to take this baby into the future.” sumers’ motorcycles and power- ages current accounts, gets new ac- sports machines. And a third type counts and attends meetings with What advice do you have to others of customer came along, too — the corporate customers and vendors. who foresee going through similar Department of Defense, for Coliant’s “Any little problem, she won’t tell growth? clothing products. me she solved it. She doesn’t want Change is tough, but it has to be Coliant suddenly was in multi- me to get upset,” Monique said. done, even if that means giving up ple original equipment supplier re- Andrena brings Randolph with some degree of control and watch- lationships that called for differ- her to some of these meetings to ing others make mistakes. ent, and specific, business skills build redundancy into the man- “You’ll only stifle your business and experience than its consumer agement structure and continue if you keep doing it the same way,” business relied on. About a year the line of delegation. That added Monique said. later, the company began search- managerial know-how will be ing in earnest for experienced ac- needed this year as Nikki’s Ginger count man- Tea expects to double the number agers, project of stores where its product appears Coliant Corp. and product to more than 120. managers, and CEO: John Swiatek engineers. What can the founder do now that Struggle: Finding someone “I needed to managers have taken over operations? who can lead the day-to-day bring in guys Delegation has uncluttered operations who could navi- Monique’s days, giving her the gate the waters clarity to take a longer view of the oliant Corp. has been transi- of a given industry,” Swiatek business. She talks to distributors, tioning from an entrepre- Swiatek potential investors, lenders and Cneurial culture to a profes- said. economic development people as sionally managed one during the As business grew, Coliant she looks ahead to next stages of past two years. worked with more distributors of growth. Launched by three partners in products instead of owners of inde- She also has the time to speak at 2004, the Warren-based company pendent powersports shops that its events, meet with nonprofits and makes electronic powersports ac- staff was used to working with. women’s groups, give presenta- cessories, such as power outlets This required business travel and tions at schools and make appear- for motorcycles and heated cloth- came with different professional ances at product samplings. “Peo- ing for riders. expectations. ple want to see the face behind the New corporate customers pushed It’s often said that people who product,” she said. the company into a cultural and are great for a startup business are structural reformation, as industry ill-suited to the formal procedures What was challenging for you per- specialists were injected into the of a professionalized company. sonally in all this? What mental company and new heads of opera- Swiatek said that held true for his change did you make to let go? tions installed. company’s transition. Coliant added five people to its staff of 20. About five existing employees were guided into the new way of doing things. Another five or so either chose to leave the new, more managed culture or were forced out. Swiatek wanted to keep as many of the trusted people who helped build the company as he could. Managing the cultural transition is the way to do this — communi- cating the direction of the company and what would have to happen, helping those who wanted to stay for the ride to do so and, for those who didn’t, giving them letters of recommendation. “Don’t come at this heavy-hand- ed,” he said.

What tasks were delegated? Swiatek’s spare time dwindled with the newfound work. “As I became busier as the face of the company and not the doer inside the company, I had less time for operational needs,” he said. It was important to identify

See Next Page 20150309-NEWS--0012,0013-NAT-CCI-CD_-- 3/6/2015 10:17 AM Page 2

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 13 Second Stage

From Previous Page

weaknesses, not to dwell on the company’s strengths, as is the ten- Tips to survive the transition, mistakes and all dency of most companies. A strong operations person, some- Mistakes will happen. Let them. person to the curb; you’ll freak out the rest of one to mind day-to-day activities Even if you see new managers stepping right the staff,” he said. across all departments, was need- into a mistake you once made, resist the urge to You’re supposed to Signore said part of becoming a profession- ed because the company didn’t hold their hand — also known as micromanag- “ ally managed company is setting up the orga- have one, either among its staff or ing. Instead, let them learn it on their own. paint the vision. nizational architecture to match its strategy its two other founders, Adam Bon- The emotional toll will ensure they don’t and customer needs: clearly-defined roles and islawski, vice president of sales forget the lesson while creating a sense of own- Then the job descriptions, and looking ahead to see and business development, and ership to the business. what will be needed in a year or two as the Dave Meerhaeghe, head of finance “Trust them. As they make mistakes, they’ll executive team company looks at longer-term goals. and IT. get it worked out through experience, as long as “Anticipate in advance the skill sets it will “No matter how many founders they have the passion. I made mistakes, too,” helps execute take to do it, as opposed to making it up as you you pull together, there always will said Monique Sasser, owner of Nikki’s Ginger Tea. go along, which is what happens in the first be a hole somewhere,” Swiatek Here are five other strategies. that vision. stage,” Signore said. said. Ⅲ Don’t expect your top execs to be just like you. ” Ⅲ Delegation allows you to get back to being en- This is when it was decided that Expecting managers to have the same attitude Dino Signore, trepreneurial. There is no getting around the a company president was needed, and perspective as the founder is a common mis- Edward Lowe Foundation fact that for some period of time the founding in addition to managers with in- take, said Dino Signore, manager of entrepre- entrepreneur will have to be more of a manag- dustry experience. But that task of neurial education at the Edward Lowe Foundation. working in a stiffer environment of proce- er and less of a visionary. But when the every- delegation remains unfinished: Co- “They say, ‘I don’t see why you’re not as pas- dures and processes. day operational matters are comfortably no liant has burned through two pres- sionate about the business as I am?’ Well, It’s understandable to feel a connection and longer your concern, you can get back to lead- idents and is looking for a third. they’re not. They’re managers you hired,” he want to promote them into managerial roles. But ing the charge, and being a leader is closer to The first two presidents came said. “You’re supposed to paint the vision. Then this can be dangerous and possibly unfair to the the entrepreneurial spirit that got you in this from much bigger companies, the executive team helps execute that vision.” employees. Putting them in positions in which business in the first place. were used to having their own Ⅲ Don’t undercut. Not understanding the pre- they’re destined to fail doesn’t do anyone any Leading executives, team building, speak- staffs and were well-versed in one vious point leads to undercutting and micro- good. “And whose fault is that?” Signore asked. ing at conferences, being creative and looking subject matter but unaccustomed managing. The founder sees hires not doing “You may want to get them back to doing for opportunities are the job now, not monitor- to the turbulent ways of a young things exactly the same way the founder the things they do well. That’s easier said than ing orders. “You’re working on the business company, Swiatek said. would and jumps in. done,” he said. as opposed to in the business,” Signore said. He advises other businesses in It is better to let the hires work out their own Then comes the awkward conversation Ⅲ Seek psychological help. Consider sending his situation to make sure they processes, give them a chance to be creative and where the employee is offered the old job back executive candidates to a business or clinical communicate to prospective hires provide the resources for them to do their job. — with that role’s lesser pay and stature. Most psychologist to assess the candidates. After all, precisely what they’re getting into. “When entrepreneurs begin to hire man- choose to leave at this point. a lot will be invested in this person. “You may “These might be people who are agers, they often begin to second-guess them,” But that doesn’t mean you don’t try first. be surprised to learn that they were not telling used to having a staff. Can you ac- Signore said. “Get out of their way. Let them John Swiatek, CEO at Coliant Corp., advises the truth in the interview,” Signore said. tually be a doer also?” he said. do their job. Observe but don’t interfere.” clearly going through the new roles and expec- But weigh this tactic carefully. You don’t want He also recommends trial peri- Ⅲ Be prepared to let some people go. Some of tations for those who want to grow their ca- to turn off talented people unwilling to suffer the ods of about six months for top ex- the dedicated people who were invaluable dur- reers. Some work out; some don’t. But at least indignity of a psycho-plumbing just to get a job. ecs, an idea that was borne out of ing the early years simply won’t be up for you tried. “You’re not just going to kick this — Gary Anglebrandt hard experience. “That’s what we’ll be doing on the next one,” Swiatek said.

What can the founder do now that managers have taken over operations? Delegation of operational responsibilities has freed him to focus on Invest Wisely matters of company direction, team building, company culture and rais- Choose an Advisor Who Sees the Bigger Picture ing expansion capital. The company plans to invest in all areas of the WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING business this year, including equipment and hiring. As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many advisors What was challenging for you per- face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. Come discover the sonally in all this? What mental change did you make to let go? independent difference, where our clients get our best advice, solutions, and products no matter what.Trusted for 75 years. Becoming a manager necessitat- ed that Swiatek, whose back- ground is in engineering, learn how to be a salesman. “The challenge was understanding how to move from a product-feature mind- set to salesmanship,” he said. He took the challenge as an opportunity for personal growth and reminded himself that he has stakeholders and employees who depend on him.

What tips do you have for others who expect to face the same chal- Bernie Kent, JD, CPA, PFS | Jason Zimmerman, MBA, CLU, CAP | Marc Schechter, CLU | John Stein, MBA, CFA lenges? Brad Feldman, JD, CLU | Ilana Liss | Jeff Vieder | Aaron Hodari | Jordan Smith, JD, LLM | Paul Snider | Chris Hale Swiatek recommends building a strong board that can help find and Kevin Beauchamp | Larry Leib, JD | Brian Young, JD, CLTC | Clune Walsh III vet managerial talent, as well as advise on compensation and incentives matters. Coliant is seeking new board members who have certain experience and credentials to bring to the table. Contact a Schechter Expert to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM He also said it’s important to let Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY people make their own mistakes and learn from them; the default Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with should be to trust them to do a NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public good job and fix their own mis- Disclosure website. takes, rather than to assume they don’t know what they’re doing and micromanage them. “Trust and verify,” he said. 20150309-NEWS--0014-NAT-CCI-CD_-- 3/6/2015 10:18 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 9, 2015 Second Stage Businesses must decide quickly whether to fight suit or settle

BY GARY ANGLEBRANDT the agency realized that Genera- That sparked a thorough inves- and later a second one, Charles

SPECIAL TO CRAIN’S DETROIT BUSINESS tions, which provides in-home tigation of owner Vincent Salvia’s GENERATIONS HOME CARE GROUP Taunt of The Taunt Law Firm in Birm- books, including interviews with ingham. He maxed out his credit health care providers for the elder- Location: Rochester Hills employees, before the two sides cards and lines of credit to pay for The beginning of Generations ly, children and recuperating Description: Provider of at-home reached a small settlement of the lawyers. He cut costs wherever Home Care Group’s challenges start- adults, was treating most of its health care services $3,300. he could. ed with a call from the U.S. Depart- nurses as independent contractors President and CEO: Vincent Salvia “They pretty much cleared us of Meanwhile, Salvia still had a ment of Labor in 2010. While on-site, instead of employees. everything,” Salvia said. Employees: 120 business to run. He insulated his That wasn’t the end of his prob- Revenue: $3.5 million in 2014 employees, some of whom were lems, though. plaintiffs, from Problem: In 2011, not long after the the legal battle Department of Labor cleared him, STAGE 2 as best as he an employee filed a civil suit claim- What I did was could to pre- ing Generations owed overtime pay “ STRATEGIES vent it from be- for all the hours worked beyond ing a distrac- illegal, not A look at 40 during weeks while improper- tion. problem-solving ly employed as a contractor. The willful. I “We had to by growing present the plaintiff’s attorneys turned it companies into a class-action lawsuit, seek- will pay right face to ing about $1 million. clients and em- MADONNA Compounding the problem, what I ployees,” Salvia said. He spent time praying and medi- many employees didn’t like tating. Frame of mind was impor- working as employees rather should pay, VISIT DAY tant; it was about “fearing failure than independent contractors. but not or seeking success,” he said. “If I Under the old system, Genera- was going in fearing failure, I 4BUVSEBZ .BSDI tBNoQN tions paid its contractors more to triple damages. wouldn’t have made it.” DISCOVER ALL MADONNA HAS TO OFFER! help them manage payroll taxes ” Generations also hired a hu- and other expenses. Vincent Salvia, man resources management firm, Talk with faculty, staff and current students about the many opportunities Under the new system, it paid Generations Home Care Group Human Capital LLC in Rochester offered at Madonna. Discover our 100+ academic program offerings, less and limited the hours to 40. At Hills. “They can help a small com- speak to current students, explore our numerous support services, stroll least a dozen people quit and busi- willfully wronged his employees pany make a lot fewer mistakes in campus, and enjoy a complimentary lunch during your visit. ness declined 20 percent. would mean paying damages. human resources. They’re like my Solution: Salvia never disputed “What I did was illegal, not will- director of personnel,” Salvia that he owed his employees the ful,” he said. “I will pay what I said. REGISTER ONLINE AT money; he disputed the contention should pay, but not triple damages.” Risks and considerations: When it that he willfully avoided paying He hired Andrew Baran of Giar- all started, Salvia considered pack- madonna.edu/visit them. A determination that he marco, Mullins & Horton PC in Troy, ing up and closing down. The cost would be so great that even if he won it would be like having to buy his company from the people coming after him. And if he didn’t win, he would probably have to shut down. “Is it worth it? Just to preserve my little business?” he asked himself. WORKPLACE 2015 When it all washed out, Genera- tions ended up paying the overtime amounts that Salvia agreed he owed “almost to the penny,” he said. Expert opinion: Douglas Toering Grand Rapids – March 11, 2015 of Toering Law Firm PLLC in Troy, who chairs a Metro Detroit – March 18, 2015 small-business forum for the State Bar of Michigan, said litigation can drain any small business of resources better applied to pursuing growth Toering and adversely affect relationships with vendors, customers and employees. “Although there certainly are circumstances where it’s appropriate for a business to take the matter to trial, in most circumstances it is best for owners of small businesses to resolve legal disputes as quickly and as efficiently as possible,” he said. Early mediation with a neutral party or offering to make special deals with business plaintiffs are two ways to speed things up.

WHAT’S He advises quickly gathering as much information about the issue as possible and examining the VARNUM’S LABOR & EMPLOYMENT LAW SEMINAR costs of litigation, including the loss of executive time. For details or to register visit: “Then, make a business decision as early as possible about www.varnumlaw.com/2015laborseminar what is best for the business, and set aside the emotional issues,” To- ering said. 20150309-NEWS--0015,0016-NAT-CCI-CD_-- 3/6/2015 9:39 AM Page 1

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 15

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Prevailing-wage battle could hurt jobs initiatives

Early this year, state Sen. Majority Leader Arlan Meekhof, a Republican from the Holland area, announced plans to repeal the state’s “prevailing- wage law.” Timing is everything. And this assault on wages paid to construction workers at job sites financed by the state may seem poorly timed. At least to Gov. Rick Snyder. The Snyder administration has been working with skilled-trade unions on a couple of initiatives. First up: finding more jobs in construction for Detroiters — i.e., African-Americans. A new international bridge and the massive redevelopment around a new hockey arena on the edge of downtown — both are opportunities to lift some Detroiters out of poverty. And I’m pretty sure the guv wouldn’t mind having a few voices from COURTESY OF GREATER LANSING CONVENTION & VISITORS BUREAU COURTESY OF EXPERIENCE GRAND RAPIDS NEIL TYSON organized labor — and political muscle — behind approving a sales tax increase in May to boost road funding. A battle over prevailing wage could harm both initiatives. Once again, this Republican governor seems bedeviled by members of his own party. Downside of demand The current leaders in the state House and Senate aren’t from Southeast Michigan, so maybe they don’t share the governor’s passion for Spurt in hotel development can flatten a rising market leveraging these huge projects to help employ more Detroiters. BY SHERRI WELCH ... in 2015 and 2016,” he said. 2014 2009 And a lot of people elected to office CRAIN’S DETROIT BUSINESS But continued increases in room supply AVERAGE OCCUPANCY in Lansing in recent years seem driven eventually will catch up to the demand, lead- by ideology versus more of the “begin hen are new hotel developments ing to a flattening of occupancy rates across with the end in mind” strategy. a mixed blessing? the state’s hotel markets, Freitag said. In recent weeks, the furor over When the number of new Michigan’s average occupancy increased prevailing wage seems to be more W rooms coming online outpaces to 58.9 percent last year but still lagged the muted. Maybe they’re waiting for the increased demand in the market. national average of 64.4 percent, STR said. outcome on May 5 — and then the Michigan and its top two meeting and con- “You’re growing, but the nation on aver- governor could be faced with a vention markets, Detroit and Grand Rapids, age grew faster,” Freitag said. decision: Should he veto legislation to saw a fifth consecutive year of increases in av- abolish prevailing wage? erage hotel room occupancy rates last year. Since 1965, publicly financed But the state’s third-largest meeting mar- Pendulum swings 47.5% 57.6% 58.9% 59.9% 47% 65.1% 44.5% 47.3% projects have paid nonunion workers ket, Greater Lansing, saw a slight decline in There’s no arguing with the cyclicality of on school and government average occupancy rates in 2014 as more ho- Michigan Detroit Grand Rapids Lansing- the hotel industry, said Michael O’Callaghan, E. Lansing construction projects the same wages tel rooms came on line, according to Hender- executive vice president as those set by union workers in that sonville, Tenn.-based STR Inc. and COO of the Detroit Metro AVERAGE DAILY ROOM RATE area. Hence, the projects pay the The market, as defined by STR, includes Convention & Visitors Bureau, “prevailing wage.” the Brighton, Howell and Hastings areas, which claims to be the first How you view that practice might which are not represented by the Greater Lans- CVB in the world. “It’s ba- depend on geography; West Michigan ing Convention & Visitors Bureau, said the bu- sic supply and demand.” is less open to it than union-friendly reau’s CEO, Jack Schripsema. And the new But O’Callaghan pro- metro Detroit. hotel rooms in 2014 came online in those jects demand will rise for Meanwhile, 32 states have some markets, not Lansing and East Lansing. the next several years, form of a prevailing-wage law. If you’re Regardless, with only 4,400 hotel rooms in even as more rooms come keeping score at home, only 24 have Greater Lansing as defined by STR, it doesn’t online. The renovated Cobo right-to-work laws. Michigan adopted O’Callaghan take much to shift the supply and demand Center and the revitaliza- right-to-work in 2012, giving workers growth rates equation, affecting average oc- tion in Detroit are attracting attention from the chance to opt out of paying union cupancy rates. The slip in occupancy rates meeting planners. dues, as had been required in there is a harbinger of what’s to come for $89.91 $97.80 $89.06 $78.92 $78.06 $79.20 $82.09 unionized workplaces prior. So, too, is the Suburban Collection Showplace $91.63 Michigan and the U.S., STR said. in Novi, he said. In 2013, it added 25,000 Supporters of repealing prevailing Demand for rooms from corporate, group square feet of meeting space, giving it 80,000 Michigan Detroit Grand Rapids Lansing- wage insist it has cost municipalities and leisure travelers is likely to continue to E. Lansing and universities millions of dollars in total, and the 126-room Hyatt Place Detroit. rise with U.S. GDP, said Jan Freitag, STR’s Those have made the Suburban Collection Source: STR Inc. higher wages over the years. Detroit data is for the Detroit-Warren-Livonia MSA, senior vice president for strategic develop- Showplace competitive for state and regional Maybe an irony is whether the covering Wayne, Oakland, Macomb, Livingston, St. Clair ment. association business, O’Callaghan said. market today would insist on those and Lapeer counties. Because performance metrics have been so Average occupancy rates for metro Detroit Lansing-East Lansing data includes Brighton, Howell wages because skilled labor is in strong the past couple of years, “we also ex- and Hastings, per the Greater Lansing Convention & such demand. pect new development of hotels will increase See Hotels, Page 16 Visitors Bureau. 20150309-NEWS--0015,0016-NAT-CCI-CD_-- 3/6/2015 10:20 AM Page 2

Page 16 CRAIN’S DETROIT BUSINESS March 9, 2015 CRAIN’S MICHIGAN BUSINESS Hotels: Inn demand ■ From Page 15 increased to 65.1 percent in 2014 last year, Small said. “I expect the from 62.6 percent the year before, ac- next couple of years we’ll start to cording to STR. Average daily room really see the fruits of our labor.” rates also rose, increasing 5.8 per- As in Detroit and other places, cent to $89.06. the demand for hotel rooms is lead- Metro Detroit hosted 12 or more ing to development, Small said. A “multiple hotel” meetings last limited-service Hampton Inn & year, twice the number in 2013, the Suites is under construction about DMCVB said early in the year. a mile from downtown Grand People attending events had Rapids and set to open in October booked about 236,000 hotel room with 142 rooms. A 110-room, limit- nights in 2014, compared with ed-service Hilton Homewood Suites 129,000 hotel room nights associat- in downtown is also set to open in diego rivera ed with meetings for all of 2013. December. Among the Detroit hotels open- “We feel we can absorb these frida kahlo in detroit ing in 2014 was the Aloft Detroit in rooms” and they won’t lead to an march 15-july 12 tickets at dia.org the David Whitney Building, with oversupply in the market, Small ONLY AT THE 136 rooms. The Foundation Hotel, be- said. ing developed in the historic fire- house and a nearby structure across from Cobo Center, is expect- Lansing area ed to open this fall with 100 rooms. For the Lansing market, 2013 Experience the advantage of group reservations And a Holiday Inn Express and pos- was the best year in a decade, and sibly a Hampton Inn are expected to 2014 was better, • Discounted Rates for Groups of 15 or More open in Dearborn, O’Callaghan said. led by double- • Exclusive Special Exhibition Tours “But a few hundred rooms relative digit increases to more than 40,000 in the region is- in demand for • Dedicated Group Entrance n’t too significant.” groups and con- • Dining Opportunities The large number of hotel rooms ventions, said and national and international Schripsema, the E-mail [email protected], visit dia.org or call 313.833.1292 “air lift” from Detroit Metropolitan Greater Lansing Airport, along with the strong inter- CVB’s CEO. est in Detroit, puts the region in a Last year, position to attract events ranging Schripsema girls’ high from trade shows to international school softball The exhibition has been organized by the Detroit Institute of Arts. Generous support for the exhibition has been provided by Bank of America. Additional support has been provided by the Henry and Mary Ellen Bellaimey Family Foundation. events, O’Callaghan said. state championships were held in Martin Munkácsi (Frida Kahlo and Diego Rivera, Mexico City), 1933 ©The Estate of Martin Munkácsi, Courtesy Howard “I don’t think this metro Detroit the region for the first time, and Greenberg Gallery, NY and International Center of Photography © 2014 Frida Kahlo Corporation. All Rights Reserved. hotel market bubble is ready to the boys’ high school softball state pop yet,” he said. “I think we still championships came back to Lans- have about five good years.” ing for the first time in at least 25 years, as did other groups, Schripsema said. Grand Rapids Though they have increased the Grand Rapids has seen similar past few years, “our average rates growth in the past five years, fueled ... are still lower” than Detroit’s by increases in and Grand Rapids’, he said, which convention and helps make the area competitive leisure business, by price. said Douglas As the state’s capital, Lansing is Small, president also attractive to state associa- and CEO of Expe- tions looking to meet with legisla- rience Grand tors or tap them as speakers at Rapids. their events, Schripsema said. The The region region’s “sweet spot” is groups of saw a 10.1 per- 100-500 people with events booked Small cent increase in at such venues as Lansing Center hotel room rev- and the Breslin Student Events Cen- enue last year, bringing total rev- ter at Michigan State University. enue to $160 million, up from $97 The Greater Lansing CVB has million in 2008, he said. also begun pursuing regional and Among other strategies aimed at national association groups. Reliable, modernized grid increasing travelers from the cor- New demand will help fill new porate, group and leisure seg- rooms slated for the market this Energy is essential to the way we live, work and play. ments, the group began airing a year. Hotels including a Residence national Grand Rapids Pure Inn by Marriott, Hyatt Place Lansing Michigan commercial two years Eastwood and Fairfield Inn and Suites ITC operates, builds and maintains the region’s ago. That was after a campaign of are expected to bring 345 more electric transmission infrastructure. We’re a Michigan- regional commercials. rooms to the Lansing area, Schrip- According to a study commis- sema said. based company working hard to improve electric sioned by the state, Experience Other projects, including a new Grand Rapids’ $677,000 investment full-service Hyatt as part of the $276 reliability and increase electric transmission capacity in the commercial in 2013 alone million redevelopment of the for- throughout the Midwest. brought 531,000 incremental visits mer Red Cedar Golf Course, and a to the region and $161 million in boutique the city of East Lansing is incremental spending in 2013 and considering as part of a multiuse into the first quarter of 2014. redevelopment plan for several “We’re trying to create more shuttered buildings just northwest We’re ITC – your energy superhighway. brand buzz, and it’s driving new of MSU’s campus, are planned. business we haven’t had before,” But Schripsema has a different Small said. outlook on what the new rooms — Last year, 378 groups booked by specifically the full-service ones — Experience Grand Rapids brought will mean. 237,390 people to the region for “Anytime we can add some full events at venues like DeVos Place service, it helps us go after more of Convention Center, DeltaPlex Arena & that conference business,” Conference Center and the Amway Schripsema said. www.itctransco.com Grand Plaza Hotel. Sherri Welch: (313) 446-1694, That totaled 40 more groups than [email protected]. Twitter: in 2013 and over 17,000 more people @sherriwelch 20150309-NEWS--0017-NAT-CCI-CD_-- 3/5/2015 12:01 PM Page 1

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 17 CRAIN’S MICHIGAN BUSINESS Use of social media widens event’s reach EXPERIENCE NEW STYLE AND FLLEEXIBILITY BY ROD KACKLEY the forum’s existing social media IN THE HEART OF DETROIT. SPECIAL TO CRAIN’S DETROIT BUSINESS platforms to conduct conversations and gauge feedback before, during · 1,298 stylish new guest rooms with soaring city views A communications team posted and after its 2014 conference. · 100,000 square feet of dynamic new event space and tweeted snippet quotations and A link to the app was given to fo- · The latest technology at your fingertips photographs on Facebook and Twit- rum attendees before the event so ter to followers around the world they could view speaker bios, con- Set your group on the downtown river walk and explore an iconic meeting last May from the fourth annual versation topics, a list of other atten- destination redesigned to make events easier, bolder and unforgettable. TEDxGR Grand Rapids. dees and key logistical information. That same attention was given Wallace and Langlois said keep- to live streaming and social media TAKE CHARGE AND BOOK TODAY AT 313.568.8300 ing an audience engaged during an OR VISIT DETROITMARRIOTT.COM. last September at the West Michi- event is only one leg of a three- gan Policy Forum in Grand Rapids. legged stool. Attraction and reten- © 2015 Marriott International, Inc. No one at either conference tion are also critical components would have dreamed of asking of a social media strategy. members of the audience to silence Over the past four years, DETROIT MARRIOTT® AT their smartphones, tablets or lap- TEDxGR used Twitter, Instagram, THE RENAISSANCE CENTER tops. Those devices played impor- Facebook and YouTube to attract a 400 RENAISSANCE DRIVE tant social media communication total of more than 3,000 people to its DETROIT, MICHIGAN 48243 roles for not only the audience but annual events. PHONE 313.568.8300 also event organizers. Langlois said it is easy to share DETROITMARRIOTT.COM Eddie Tadlock, assistant general photos and pictures from previous manager for the DeVos Place conven- TEDxGR events on Facebook, and tion center, DeVos Performance Hall sharing stories from people who and Van Andel Arena in downtown have attended TEDx events in Grand Rapids, said attendees of Grand Rapids has proved to be an meetings and conferences in his excellent way to expand the audi- venues carry, on average, 2.5 devices ence the next year. — laptops, tablets and smartphones. Wallace said an event’s target Those with devices are connect- population should drive how heav- ed to social media in the rest of ily an organiza- their lives, so why shouldn’t they tion invests be at a business conference? time and effort “You want them alive, enthusi- in social media astic and engaged. And that can be to attract an au- facilitated through the use of tech- dience. But it nology,” said Adrienne Wallace, can’t be ignored, digital director for 834 Marketing she said. and Design, a Grand Rapids market- “Creating an ing and communications agency. audience on so- An audience full of people reach- Wallace cial before you ing for their smartphones is actu- need them to ally helping event organizers de- work on behalf of the event is espe- liver their messages to the people cially critical in this endeavor,” within their networks who might Wallace said. “Don’t build the MAKE THIS SEASON not even be in the room. bridge as you walk on it, if you can With social media, an event that help it.” attracts hundreds or thousands to a Langlois said the creation of an brick-and-mortar venue can be ex- official hashtag before the event is panded to hundreds of thousands or also close to mandatory. It can be EXTRA SUITE even millions around the world who used to combine conversations join the event through Twitter, Face- into a single stream. By booking a book or a live stream broadcast. But the hashtag is also one more Austin Langlois, who is in thing to worry about and monitor. party suite at charge of public relations and com- “When you have a really promi- munications for nent hashtag, it catches the atten- TEDxGR, said Comerica Park tion of a lot of robots online and a social media and lot of spammers,” Langlois said. live streaming of • $300 catering credit.* “There’s a big burst, and then it the event, held in usually levels out and dies off in the Grand Rapids • Opening Day tickets included with select the first 30 minutes.” Civic Theatre * Wallace said using social media to suite packages. downtown, al- stay engaged with your convention lows the organi- • Private restrooms, convenient parking in the zation to reach a audience members after they have worldwide audi- gone home can be as important as Tigers garage, in-suite waitstaff and much more. Langlois ence. engagement during the event. She “If someone is tweeting a ques- advised creating an established con- • Great matinee games available in April & May. tion or something someone just tent calendar for recurring events said, we kind of chime in as the offi- that can be used year round to help • Tickets as low as $100 per game. cial voice of the organization to create the event environment. steer the conversation,” he said. “If you have an engaged audi- Any organization that plans to ence, keep serving them content use social media during an event and share-reuse their content,” she should have a war room ready to said. “A big mistake planners make go with at least two or three people is only using social for the time that on duty, Langlois said. the event is taking place.” “It’s a lot of work for just one per- The most important thing to re- son to be posting at the same time as member about social media, Lan- responding to comments and block- glois said, is also the most impor- ing spammers,” he said. tant thing about TEDxGR. Organizers of the West Michigan “It is about engaging our commu- Policy Forum used a custom-made, nity in a conversation,” he said. “So- temporary app in connection with cial media is a part of that strategy.” *Restrictions apply. 20150309-NEWS--0018,0019-NAT-CCI-CD_-- 3/5/2015 12:02 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 9, 2015 CRAIN’S MICHIGAN BUSINESS For convention that needs the unconventional ure, you can start your due diligence by perusing Crain’s Slist of the largest meeting venues in Michigan, on Pages 23 and 25 of this week’s issue. But what if unique is what you seek? Here are some options in Michigan for those occasions when PowerPoint shouldn’t be the high point of an event. Ann Arbor

Ⅲ The University of Michigan Gov. Rick Snyder; thegoeicenter.com Museum of Art, in the center of campus, features a variety of diverse Ⅲ New Vintage Place, built in a spaces available in the Alumni renovated power plant on the Memorial Hall and the Maxine and northwest side of Grand Rapids, is Stuart Frankel and the Frankel Family scheduled to open this month; Wing; umma.umich.edu/about- newvintageplace.com umma/event-rentals.html Ⅲ The Cheney Place is a meeting Ⅲ The Michigan Theater’s 200- space in an old warehouse on the seat screening room is available for northwest side of downtown Grand rental during the daytime. Rental of Rapids. When you rent it, you get all the historic lobby is also available; 14,000 square feet; (734) 668-8397, ext. 21 Ⅲ thecheneyplace.com A variety of settings are available Ⅲ The Bissell Tree House at the through Michigan Athletics, with John Ball Zoo has to be the most event rental available throughout Michigan Stadium. A rental request unusual meeting and convention form is available at mgoblue.com/ space in Grand Rapids; specialevents/rentals.htmlmgoblue.com/specialevents/rentals.html johnballzoosociety.org/rentals- treehouse Grand Rapids Ⅲ John Ball Zoo. If you need more than the Bissell Tree House, rent the Ⅲ The Goei Center is one of the entire zoo. What better way to newer conference and meeting venues impress on employees that it really is in Grand Rapids. It also houses the a jungle out there; International Center for johnballzoosociety.org/rentals-rentzoo Entrepreneurial Excellence. The center, on the southwest side of Kalamazoo downtown, was started by businessman Bing Goei, who was Ⅲ The Air Zoo is an aviation appointed the first director of the museum off I-94 that includes Get in Michigan Office for New Americans by conference and meeting space; on the airzoo.org Ⅲ The Henderson Castle Bed and conversation Breakfast includes an inn, restaurant, spa, and meeting and convention space; hendersoncastle.com Muskegon Ⅲ Century Club Ballroom in downtown Muskegon was built in Shifting 1891. Seating capacity of 250 with free parking (lots of room to park in COURTESY OF PIONEER CONSTRUCTION downtown Muskegon); gears New Vintage Place in Grand Rapids centuryclubballroom.com FRIDAY, MARCH 20 | 9 AM - 7 PM SATURDAY, MARCH 21 | 9 AM - 4 PM

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 19 CRAIN’S MICHIGAN BUSINESS

Sure, you can rent the entire John Ball Zoo for an event. But also available is the Bissell Tree House (left and above), with its view of downtown Grand Rapids. If you like to view your motivational speeches through stain-colored glass, there’s Kirkbride Hall in Traverse City (below).

Ⅲ Frauenthal Center for the Performing Arts in downtown Muskegon offers the Hilt Building for meetings and conventions in addition to the Frauenthal Theater, Beardsley Theater and Bettye Clark- Cannon Gallery; frauenthal.org

COURTESY OF KIRKBRIDE HALL

Luxury suites available: Sat, Mar. 21 – Pistons vs Bulls at 7:30 p.m. The Hitching Post – yes, a real barn. Tue, Mar. 31 – Pistons vs Hawks at 7:30 p.m. Ravenna (between Grand Wed, June 10 – Bette Midler at 6:30 p.m. Rapids and Muskegon) Sun, June 14 – Rush at 6 p.m. Ⅲ The Hitching Post is a converted barn that offers space for meetings along with “fresh country air and a welcoming hay field”; hitchingpostevents.com

The Century Club in Muskegon Traverse City There are two fairly new event spaces at the Village at Grand Traverse Commons. SUITES START AT $999 Ⅲ Cathedral Barn is the newer. It opened in February at what used to Including: VIP parking, private restrooms, be the farm for the Traverse City State Hospital, now part of what’s Call Joe Haney and up to $600 in catering credits! called Historic Barns Park. This area is going to be the site of Traverse President-Principal City’s botanical gardens, but the Certiﬁed Risk Architect barn itself has been restored as an event space; gtrec.org Ⅲ Kirkbride Hall opened in May 2014. This 129-year-old chapel building, once a venue for civic and cultural events for the entire community, is outfitted with all the modern-day amenities amid its It’s time to rethink your insurance strategy original stained glass windows and Pistons.com/premium domed ceiling. It can accommodate 888.525.7575 | 586.323.5700 | sterlingagency.com 250 for theater-style seating and up (248) 377-8477 to 150 for banquets; kirkbridehall.com Sterling Insurance Group is a Michigan based company. — Compiled by Rod Kackley DBpageAD_DBpageAD.qxd 2/6/2015 9:40 AM Page 1

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 21

Monthly Egypt WHERE MICHIGAN DOES BUSINESS

Chrysler Group LLC gypt, with a 2013 GDP of $271 billion, year: A recent improvement in tourism and has seen its fair share of economic chal- Each World Watch features a differ- manufacturing segments has helped Egypt’s Operations: Chrysler Group Egypt Ltd., a ent country. If you know of a Michi- joint-venture with the Arab Organization for E lenges in recent years. economy grow by 4.5 percent in the first six The country’s big economic drivers — gan company that exports, manufac- months of the 2015 fiscal year. Industrialization, is based in Cairo. tures abroad or has facilities abroad, Employees: 24 tourism, manufacturing and construction — Egypt’s major exports are crude oil, petrole- have been hit the hardest. According to a Feb- email Jennette Smith, managing editor, um products, metal products, chemicals and Products: Assembly of the Jeep Cherokee at [email protected]. sport utility vehicle, Wrangler and the J8 ruary analysis story from Bloomberg News, cotton. Its major export partners are Italy (7.9 military Wrangler Egypt’s economy has been trying to recover percent), India (6.9 percent), the United States Top executive: Maciej Ratynski, CEO from its deepest slump in two decades ever COMING UP (6.8 percent) and Saudi Arabia (6.2 percent). since the 2011 ouster of former President Hosni Its major imports are machinery and equip- More information: Chrysler Egypt assem- April: Russia Mubarak.Successive governments have tried to ment, food products, chemicals, fuels and bles about 3,000 units per year, representing May: Japan roughly 55 percent of the over-2.0 liter sport entice foreign investors to reinvest while the wood products. Egypt’s major import partners utility vehicle market in Egypt. country grapples with protests and violence. are China (9.5 percent), the U.S. (7.6 percent), But things are moving in the right direction so far this fiscal Germany (6.7 percent) and Russia (5.3 percent). Domino’s Pizza Inc. Based: Ann Arbor ISRAEL Operations: 21 locations throughout the country JORDAN Employees: 400 Cairo Products: Pizza, chicken, bread sides and beverage products SAUDI Top executive: Ibrahim Al Jammaz, CEO of ARABIA Almar Foods LIBYA EGYPT Clients: Retail pizza customers Dow Chemical Co. Based: Midland Operations: One representative office in Cairo, and a polyurethane system in Ra- SUDAN madan City with a market development lab Employees: 80 Operations: Manufacturing facility in Products/services: Polyurethane systems Cairo and Egypt representation Employees: 2,000 Top executive: Mohamed Sabry, country Products: Opel passenger, Chevrolet com- manager mercial and passenger vehicles Clients: Mayson Industrial Chemicals CYP, El Top executive: Tarek Atta, managing direc- Araby Co. for Engineering, Confortchem Inc., tor for Egypt and North Africa COURTESY OF DOW CHEMICAL CO. RKW, KAPCI, Eagle Polymers, Polymed Distribu- Midland-based Dow Chemical employs 80 in Egypt. tion Fze, Agrin Serve Co., KIRIAZI University of Michigan (project center) Employees: 20 Top executive: James Holloway, vice Based: Ann Arbor Services: Social science surveys, training provost for global and engaged education, General Motors Co. Operations: Projects and partnerships in for health professionals, economic research, UM Based: Detroit Cairo public health studies — Compiled by Natalie Broda 2015

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 23

CRAIN'S LIST: LARGEST GREATER MICHIGAN MEETING FACILITIES Ranked by total square feet of meeting space Total square Square feet Capacity of largest Number Facility feet of of largest theater/classroom of Address meeting meeting banquet/cocktail meeting Rank Phone; website Top executive(s) space space style rooms Amenities DeVos Place Convention Center &$5&#+ 240,000 .9=DDD ." 9D:,DDD =9 +%$->6-5;-56>5&;B+>&-?&6>)-*/+B 1. 5+;62 0 .81"<%8"DD7)+6&+#+;52-* DeltaPlex Arena & Conference Center -)+#)-&6 105,000 ="DDD 9 DD:=DDD 8 &%&3>&/*+;5+;)-5;&+#3>&/*+;)5#-+%6&;/5(&+# =%--;%$&#$ 3. = DD>5+5E?25+/&6", "" /56&+; . DD:= DD &)&+#)-&+#-(5&?&+--56 09.91<9"%,DDD7);/)A2-* Grand Traverse Resort & Spa &*-5*+ 86,500 .,DDD == D:.=DD <9 -)>))%65?&6/&+--5:->;--5$);$)>&+--5@;5/)B#5->+:/--)6 4. .DD5+5?56&))#)?2E*",9.D #+5)*+#5 . DD:E &+--5;++&65;&)6$-/6B556;>5+;6="%$->5-#5&5/-5;6$>;;) 0DD18"%D*2-* Kalamazoo County Expo Center ?&$-@&C 62,000 ="DDD = DD:.=DD 8 >;--56;&?)6/5/5(&+#&%&66>&-66-+66&-+6E 6. =,DD(;2)*C--",D" &5;-5 . DD:. DD -+%6&; 0=9,1<<%887()*C--A/-+;52-* McMorran Place &*E//) 48,000 . DDD E:E E E>&-?&6>)3>&/*+;+>));$;5&)5/&+# 7. 8D.-55+)?2-5;>5-+"D9D #+5)*+#5 E:E 0.D1, %9.997@@@2**-55+2-* Amway Grand Plaza Hotel &$5&++ 47,000 8 D ..DD:9DD "= &#$;56;>5+;6+)->+#6>6&+66+;5@&5)66+@&5$&#$%6/ 8. .8-+5-E?25+/&6", D< /56&+;+ 8=D:.. D +;5+;>&-?&6>)3>&/*+;>))%65?&6)-++6/6(B@)(-++;&+#$-;) 09.9188"%=DDD7*@B#5+2-* ;--6)-+?+;&-++;5 Broad Art Musem &$)>6$ 46,000 "9 9 .=D:" " +&3>?+>@&;$6;;%-%;$%5;>&-?&6>)3>&/*+;@5%@&++&+# 9. "82&5)5&?6;+6&+#"=" &5;-5 .=D:8 D 5$&;;>5+@-5)%)66-+;*/-55B5; 0 .81"%"DD75-*>6>*2*6>2> Radisson Plaza Hotel of Kalamazoo &*B*+ 44,000 .DDDD E:E == )-++6/;$);&)>6@&**&+#/--)-6$-/6$&-+->;&3>->5 10. .DD2&$&#+E?2)*C--",DD8 &5;-5-$-;)6 E:E >+&3>56;>5+;6-+&5#)->+#.DD6; 0=9,1<"<%<<<<75&66-+(C--2-* Grand Rapids Art Museum +5&&6%+6+ 37,667 .D"<8 &-?&6>)3>&/*+; 11. .D.-+5-+;55+/&6", D< &5;-5+ < D:8DD 09.91<.%.DDD7@@@25;*>6>*#52-5# Boyne Mountain Resort 5& 37,000 .DDDD .DDD:9DD =D -)6/C&/)&+E?)+$B@;5/5(6(&&+#6+-@-5&+#&(&+#$-56 12. +-B+->+;&+--B+))6",8.< #+5)*+#5 8"D:.DDD ;5&)5&6;++&6!6$&+##@B;->56-*/)&*+;5B&%&+/5(&+#-+%6&; 0=<.1 ",%9DDD7-B+2-* 56;>5+;6 Shanty Creek Resorts ;&#-5 36,000 ,9DD .DDD:8DD =D ->5$*/&-+6$&/#-)->566;@-*->+;&+6@&;$ <E)/&+5>+676/+!;+66 13. 8D$+;B5(-))&5",9. #+5)*+#5+ 8DD:.DDD +;57;@-&+--5+;$5->;--5/--)67;++&6->5;67!?56;>5+;67&+%5--* 0=<.1 <<%9=.76$+;B5(2-* &+&+#7-*/)&*+;5B6$>;;)65?& Boyne Highlands Resort &($>*)5 31,500 , DD "DD:=DD .9 -)6/C&/)&+6(&&+#6+-@-5&+##@B;->56-#6)&+#$-56;5&) 14. 9DD&#$)+5&?5-5/5&+#6",8"D #+5)*+#5 " D: DD 5&&+#6@&**&+#&++5;$;5&(&+#;++&6!6$&+#-;&+#-*/)&*+;5B&% 0=<.1 =9%5+;6 Van Andel Arena &$5&#+ 30,772 E .="8=:. DD E-A-!56;>5+;+5-+66&-+6 15. .);-+;25+/&6", D< 5#&-+)#+5) "D:E 09.918"=%99DD7?++)5+2-* *+#5 Dennos Museum Center >#+++*+ 30,000 E <98:8D E $&))&(+E>&;-5&>*$-)6<98/)>6$+&//6;&+#2;$6)5#6;# 16. .8D.25-+;;25?56&;B",99 A>;&?&5;-5 =DD:"DD +>))E/&;B2 0=<.1,, %.D 7@@@2++-6*>6>*2-5# Kellogg Arena ++)6 30,000 E E:E E E);--**-;?5&;B-?+;65-*6/-5;&+#?+;6;--+5;6;5 16. +*)B3>5;;)5(",D.8 -/5;&-+6*+#5 E:E 6$-@6;-*;&+#62 0=9,1,9<%"DD7@@@2())-##5+2-* Kewadin Casino Sault Ste. Marie &6&6$5 30,000 E E:E . >))%65?&+3>;&)&;&6+<.5--*-+%6&;$-;)))-*/);@&;$6->+ 16. =.9$>+(->);;25&",8< #+5)*+#5 E:E )&#$;&+#>&-?&6>)3>&/*+;A65?&+@&5)66&+;5+;-+%6&;6; 0DD1 <,%=<"97@@@2(@&+2-* -+?+;&-+--5&+;-56 Wharton Center for Performing Arts &(5+ 30,000 .DDDD =DD:E = ->56;#6&)&;B5+;)6;->56 8 D2$@+6;+6&+#"=" A>;&?&5;-5 .9D:= D 16. 0 .81< <%.,=7@$5;-++;52-* &+5&> #+5)*+#5 McCamly Plaza Hotel -5;-)6;+ 25,000 E E:E E &+))5--*+.9;$!--55--;-/6/ D4!;65++6->+ 20. D/&;)E?2;;)5(",D.8 #+5)*+#5 E:E 6B6;* 0=9,1,9<%8D D7@@@2**)B/)C2-* Frauenthal Center for Performing Arts &+* 25,000 "98D .8==:= D .8==%6;$&6;-5&;$;575;#))5B7+3>;A$&&;+*;&+#6/ 20. "= 26;5+E?2>6(#-+",""D 6)6+*5(;&+# = D:= D 0=<.18==%=,D75>+;$)2-5# *+#5 Grand Hotel +B@5 24,450 8DD .DDD:<= .= -/+);B-5#>6;5--*;;5&;&-+-*/)&*+;5B*;&+#+>+;&-+6/ +5+E?2(&+6)+",8 8 A>;&??& . DD:. DD -*/)&*+;5B@&5)66+;5+;>6->&-?&6>)3>&/*+;-&;+ 22. 0,D91"8%<<<.7#5+$-;)2-* /56&+;+ )*-+-5*;&+#6-*/)&*+;5B*>6&@&;$/5&?;&++5&6&5 *+#&+#&5;-5 The Groves Center at KVCC 5&#5 22,374 <= D E:.=" , &%&5-+?+&+;/5(&+#6+&)-;&-+?&--+5+&+#/-5;) 8.D8)*))B5&?)*C--",DD, ?&/56&+;-5 .DD:.=" -*/>;5) 0=9,1< <%.= <7(?#5-?6+;52-* 6;5;#&+ 23. -+-*& ?)-/*+; FireKeepers Casino-Hotel ++&>$*+ 20,642 .8 DD =D=":,<9 , +%6&;>&-+?&6>)3>&/*+;6>//-5;6; 24. ...882&$&#+E?2;;)5(",D." 3>)&;B65?& .."":.."" E7@@@2!5(/566&+-2-* *+#5 L.C. Walker Arena &#)@5B)&@ 20,200 .9=DD E:E E .DD%6;*>);&%/>5/-65+ 25. , ->5;$;2>6(#-+",""D 66&6;+;*+#5 E:E 0=<.18=9%=,<,7@@@2)@)(55+2-* Treetops Resort >66)))6B 20,016 .DDDD .DDD: DD 9 -)&+6;5>;&-+6/-@+$&))6(&&+#6+-@*-&)&+#7*;&+#5--*653>&// 26. <,9=&)(&+6-+-B)-5",8< &5;-5-6)6 D:.=DD ;-$+)>&-?&6>)3>&/*+;+&+)>$&#$%6/+;5+;-++;&-+6 0,,18<=%98..7;5;-/62-* JW Marriott Grand Rapids -5#E3>&+- 20,000 .=<=D ..D:8=D +%$->6>&-?&6>)3>&/*+;6@))65;&?&+%$->6;5&+#;-*(B->5 27. =< ->&6*/>;25+/&6", D< #+5)*+#5 "D:.DDD ?+;;5>6>662-*/)&*+;5B@;5+&6/+6+/65&+)>&+ 09.91="=%. DD7@@@2&)-?;$'@2-* $*;&+#5--*2 Fricano Place B5)6-+ 20,000 .DDDD DD:=DD < 56?&@6->6(#-+(+->;--5;55+-/+!--5/)++/555 27. .D D26;5+>6(#-+","". -/5;&-+6*+#5 DD: D ;556;-$--65-*2 0=<.18==%=9DD75&+-/)2-* The Pinnacle Center &))-56; 20,000 .DDD .DDD:9DD --*6;%>/76;#&+#@&;$;$;5(5-/7@&%65+/5-';-56 <<6-+?&))","=< *+#&+#**5 DD:. DD *56+5-5&+#7)&?%6;5*5-6;&+#7*&5-/$-+67)>%5B 27. 09.9199=%<<67)/;-/$--(%>/7;$+&&+@&5+ @&5)66+;5+;75/5(&+#76-;5&+(6@&;$&++50.DD/56-+*&+&*>*1

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 25

CRAIN'S LIST: LARGEST MEETING FACILITIES Ranked by total square feet of meeting space Total square Square feet Capacity of largest Number Facility feet of of largest theater/classroom of Address meeting meeting banquet/cocktail meeting Rank Phone; website Top executive(s) space space style rooms Amenities Cobo Center %.+.,,.67 902,500 :>=EEE />EEE;:EEE /EE 6'&'>>EE.,&7'<06)',$70.<7.,'6$,?7',77,<6.,&7'< 1. /7%',$<.,*@3<6.'<#>>: $,6*+,$6 -EEE;/"EEE <6',$.,<6<.67.,&7'<<.06.@'76@'7<.+<',$7,<67%.A7 1=/=299&9998AAA3..,<63.+ The Henry Ford <6''..6', 544,020 >>EEE :EE;>EE >E .67&6A,66'$7.*6'7%'7<.6'6.?7*7<+*..+.<'@%'7<.6' 2. >E-EE)A..*@36.6,#/># 067',< :EE;"EEE 6&,<+,<7,<6<',+,<<.?67?6<.67?'.@'7?*!6A.6)7$6,7, 1=/=2->&:EE/8AAA3<%%,6C .63.6$ 06'@<.?6Joe Louis Arena .+'*7., 439,380 =E/-9 >EEEE;/EEEE />E ,'4?@,<*.<'., .6+<',$7@,<7 ?,6'76706'@<'&7)<',$06<'7 /-<@D6+,6'@<6.'<#>>: 067',<, >"EE;="EE ,.60.6<B06',<'*.00.6# <667<'?+<.?67.,&!*<'@'<'7<<%06)',$7<6?EEE6?7%<3<6.'<#>>: 067',< />EE;="EE 0':>&>EEE8AAA3<6.'<*'.,73.+ 7?006&7/"EEE />EEE;:EEE =E F<<%/>:&6..+C<<*.<*>"EEE74?6 <. 06& ?,<'.,70 5. #:/EE6,'@6F@3.@'#=9# .A,6,067',< :EEE;:EEE /& ..<'*',$7A'6*77,<6,<77+.6<%,>9EE06)',$707 1>#2=#&":EE8AAA37??6,.**<'.,7%.A0*3.+ The Masonic of Detroit .$6.6, 200,000 /-"EE ##E#;:"E =" 0 .6.60.6< ?,<'.,7A'<%E/ 067',< //##;//## **6..+7 ?**&76@'<6',$?'.@'7?*0'*'<'7,@*<.67* &06)',$ 1=/=2=>&9/EE8AAA3<%+7.,'3.+ .0<'.,7 Fox Theatre .+'*7., 125,000 >E=E" "EEE;#EE = '7<.6'@,?',.B<.A,67<.6<.'<7.6'$',*70*,.68.B6,.C. 67 >>//..A6F@3<6.'<#>E/ 067',<, EE;/EEE ',,6,.)<'*60<'.,70,+?*<'0**@*7,?7 .67<6.**',$ 1=/=2#9/&====8AAA3*C+0',<6<',+,<3.+ *C+0' @,<787<$,<%<6,.++.<*.7<."EEE$?7<7 7. ,<6<',+,<;<6.'< ',$7 Michigan Science Center B .,C<<%A7 120,755 9EE >=";F /> ,&7'< A%*%'677@,<+,$+,<<+70'*B%''<7,', "E>E.%,<3<6.'<#>E> 067',<, F;>EEE %,7&.,<'@''*.66,#E 067',< =EE;9EEE .+0*<',&%.?7?'.@'7?*,<6',$76@'7 1":2#-&#/-8AAA3+.+3?;@,<76@'7 Detroit Marriott Renaissance Center %.,.%,7., 100,000 >"E/ >/EE;/>EE =# 7<?6,<76@',$6) 7<*?,%,',,66;*.?,$6..+76@'A%*%'6 9. #EE,'77,6'@<6.'<#>#= 6$,6*+,$6 /EE;>>EE 77,<6,<777* .6@*<06)',$!<,77,<6.,'6$*.?,$+.@' 1=/=2":&EEE8AAA3<6.'<+66'.<<3.+ <%<6 ...?6<7%.07.0*.@67<<'., Great Lakes Golf & Sports Complex '%*F7%*C 95,000 9EEEE >"E;>"E = ?***'4?.6*',7.?<..6+','&$.* .?676'@',$6,$$.* *','7, 11. =-"/.7*C,.F??6,'**7#=9/ 067',<& >EE;9EE +.,7<6<'.,7+?*<'0*&<'6',..670 .6@'A',$,,#3==>3#:"=8AAA3$*$73.+ Emagine Canton ?**,"E;:EE .67<6.**',$',,67,.)<'*06<'7 19=#29>/&=#":8AAA3+$',&,<6<',+,<3.+ Emagine Novi ?**,"3/>'*..@'#=99 .?,6,%'6+, >"E;:EE .67<6.**',$',,67,.)<'*06<'7 1>#2#:&>--E8AAA3+$',&,<6<',+,<3.+ Macomb Community College, center campus +7.7 75,000 >/EEE />9/;>"E >/ .+,<6 .6<%6 .6+',$F6<7,'@67'"E;F ,<6.6,D.?*"E,,.<%6 .606EE3',<.C*)#=E9 .?,6,%'6+, >"E;9EE 0.0*3F**67.+',1',*?',$67<?6,<62,%.7<?0<.:EE0.0*., 1>#2#/#&/EEE8AAA3+$',&,<6<',+,<3.+ : 067',<, 9"E;/EEE ,#2=99&E/EE8AAA30*,<3.+ '7<.,7**. +%+0'.,7%'0<6.0%C'70*C$?'<.?67?7<.++,?7 Adoba Hotel Dearborn/Detroit C F6',,?+0%6C 68,000 /9EEE /EE;/E"E /9 7<?6,<,*.?,$6..+76@'',..60..*7?,;A%'6*0..*!<,77,<6 17. :EE.A,,<66'@6.6,#/>: $*.*%. F. />EE;=EE 606)',$@*<06)',$6) 7<*?,%',,6%'$%&70,<6,<77 1=/=2"->&=:>>8AAA3.6.6,3.+ 6, A%*%'677?7',77,<6 MotorCity Casino Hotel 6',*'<% 67,000 /-:E# >>EE;/=9- // F?'.@'7?*',*?',$@'.,<*., 6,',$0'*'<'7','@'?*'DF 18. >-E/6,'@6F@3<6.'<#>E/ .A,6 /"EE;>>EE +<',$6..+7'<+<',$.,'6$06& ?,<'.,67A'6*77,<6,< 1::29">&-:>>8AAA3+.<.6'";=>" 1=/=2=&-EE/8AAA36C7<*$6,7.,*',3.+ General Motors Heritage Center 6$** 64,500 :#EEE "EE;>#E > %.A6..+0' +,$6 "EE;"EE A'<%.+0?<6&.,<6.***'$%<',$/:5B-56<6<*76,06.(<.6,<6,< 1":2>9:&/#-8AAA3$+%6'<$,<63.+ A'6*77+'6.0%.,70.'?+.+0*<?'.70)67C7<+,

This list of meeting facilities is an approximate compilation of the largest such facilities in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Information is provided by the venue unless otherwise noted. It is not a complete listing but the most comprehensive available. NA = not available. B Formerly Detroit Science Center C Formerly the Hyatt Regency Dearborn ■ An expanded version of this list can be purchased crainsdetroit.com/lists LIST RESEARCHED BY SONYA D. HILL

Spotlight: Meetings, conventions and tourism

COMING ATTRACTIONS: BIG EVENTS OF 2015 BY THE NUMBERS PARTY’S OVER: MEETING, CONVENTION CENTERS OF THE PAST Largest local events, ranked by estimated direct spending in millions: These facilities were on the original list in 1986 and have since dropped off: Avg. occupancy rate Event Est. attendance Month Spending Name ’86 ranking History 1986 2014 National Baptist Convention, USA 25,000 June $76.1 Michigan State Expo and Fairgrounds No. 2 The 157-acre property is vacant and 71% 65% being considered for redevelopment. Evangelical Lutheran Church in Am. 36,000 July $35.0 Avg. number of rooms Pontiac Silverdome No. 3 After the Detroit Lions moved to USA Volleyball 10,000 May $17.0 1986 2014 Ford Field in 2002, its use has Midwest Media Expo 20,000 April $8.0 13,500 40,000 been sporadic. There is a contest for ideas on what to do with it. American Society of Assoc. Execs 7,000 Aug. $7.0 Avg. room rate Fairlane Manor No. 11 In 1994, Ford Motor Co. turned Pentecostal Assemblies of the World 6,000 July $6.9 1986 2014 the facility into a corporate training Youmacon 14,000 Oct. $6.2 $62 $89 center. It now is owned by the University of Michigan-Dearborn. Shell Eco Marathon 32,500 April $6.0 Direct spending events Automotive Service Association 6,000 July $4.2 1986 2014 Veterans Memorial Building No. 12 In 1995, the UAW and city of Detroit reached a lease agreement. It was SAE International 12,000 April $4.1 NA $214 million sold to the UAW’s Ford department Source: DMCVB Source: Detroit Metro Convention & Visitors Bureau Crain’s research in 2014. 20150309-NEWS--0026-NAT-CCI-CD_-- 3/6/2015 11:49 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 9, 2015 Asset Acceptance, Encore to cut jobs BRIEFLY

BY CHAD HALCOM notified of a planned consolida- set Acceptance began expanding House panel votes to end state Chamber chooses neutral stance CRAIN’S DETROIT BUSINESS tion last November. She would to satellite offices in 1997 with a not comment on the size or head Southfield location, followed by film incentives program on state roads ballot proposal Asset Acceptance Capital Corp., count of Asset offices in Warren call centers and other offices in the Warren debt purchaser that Michigan’s film incentives could The Michigan Chamber of Com- or elsewhere, before or after the Florida, Ohio and Pennsylvania, became a subsidiary of San be coming to an end with a bill mov- merce has decided to neither sup- reduction. adding other locations via acqui- Diego-based Encore Capital Group ing through the state House. port nor oppose a May ballot pro- “The call center consolidation sition in Phoenix, Chicago and Inc. in 2013, may soon be less than The House Tax Policy Committee posal that would increase the state results in a workforce reduction Maryland. half its former size by local em- voted 8-3 last week, with two mem- sales tax as part of approximately 150 jobs across Asset Acceptance Capital was ployees and office space, after a bers passing on casting a vote, to of a road funding San Diego and Warren. Call cen- formed as an entity in 2003, and second round of layoffs in less approve a bill to stop the film incen- plan. ter representatives had the op- publicly traded from 2004 until the than two years. tive program, which gives money to Chamber Pres- portunity to relocate to Encore’s Encore purchase. It first leased Encore Capital expects to trim movies, TV and ident and CEO call centers in Phoenix, Ariz., or the Warren building in 2004 ac- about 150 positions from call cen- digital produc- Rich Studley said St. Cloud, Minn., if interested,” cording to CoStar, and relocated ters in Warren and San Diego, in- tions in the state. last week there she said in a statement to Crain’s cluding 125 Asset Acceptance em- its headquarters there in 2005. Last year, the isn’t a consensus last week. “This was a very diffi- ployees, by May 1, according to Asset Acceptance had nearly incentives were among the orga- cult decision, and (we) have been the parent company and an Asset 840 local employees in early 2008 extended to last nization’s mem- supporting our employees notice submitted to the state and revenue of $248 million for until the end of Studley bership on Pro- throughout the transition.” Workforce Development Agency in 2007, to rank among Macomb 2021. But the bill posal 1. late February. The San Diego call center will County’s largest employers at the sponsored by The chamber represents 6,700 Asset announced in August close under the consolidation time. But it had shaved head Rep. Dan Lauw- employers, trade associations and plan, Margolin-Feher said. En- 2013 it would eliminate 73 posi- count to about 640 and reported Lauwers ers, R-Brockway, local chambers of commerce. tions in Warren and another 37 core Capital (Nasdaq: ECPG) revenue of $228 million shortly would end the It has sought additional funding positions in suburban Tampa, closed on the purchase of Asset before the 2013 notice. program Oct. 1, the end of the cur- of deteriorating roads but favors a Fla. The top two floors of its four- Acceptance in June 2013 in a The company has not fur- rent fiscal year. Gov. Rick Snyder fuel tax increase instead of a 1 per- story, 200,000-square-foot head- mixed stock and cash deal valued nished employment data to had proposed allocating $50 million centage-point sales tax hike to raise quarters building along Van at $200 million. Crain’s since the Encore acquisi- for the program in the next fiscal $1.3 billion more annually. Dyke Avenue have been vacant The federal Worker Adjust- tion. The two layoffs together year. Gov. Rick Snyder backs the pro- and available for lease since its ment and Retraining Notifica- could put local head count Supporters of ending the film in- posal. Studley says the chamber is reduction as a tenant last sum- tion Act generally requires mid- around 440 later this year. The centives say the program hasn’t “very supportive” of Snyder and mer, according to CoStar Group size and larger businesses to company also does not have to created enough jobs to be worth commends his “leadership ... to fix Inc., a Washington, D.C.-based notify state and local officials 60 disclose smaller reductions or keeping. the roads.” real estate information service. days before a plant or building positions eliminated by attrition Film incentive advocates say the If the chamber hadn’t stayed neu- Lisa Margolin-Feher, manager closure affecting more than 50 under the WARN Act. program has created good-paying tral, it might have spent millions of corporate communications for employees, or for a non-closure Chad Halcom: (313) 446-6796, jobs and that it’s a model other advocating the proposal’s passage Encore Capital, confirmed the major workforce reduction. [email protected]. Twitter: states are following. or defeat. layoffs and said employees were Founded in 1962 in Detroit, As- @chadhalcom — Associated Press — Associated Press

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 27 Software firm moves to Southfield with new CEO, funding – and name

BY TOM HENDERSON and Kruse and Muer. round, I decided to join. Original- CRAIN’S DETROIT BUSINESS Symonds said the company em- ly, I was excited about the health ploys about 30, and he expects to care space, but this is wide open Veteran software CEO Mark hire about 12 more employees this for someone to come in with pow- Symonds was considered the right year and about 25 next year. erful but easy-to-use software. person to run a fast-growing soft- Symonds is the former CEO of There’s no dominant back-of-the- ware company. So much so, in fact, Troy-based Plex Systems Inc., a house restaurant operator.” that the company has moved to provider of production-manage- The company’s move here was a Southfield from Norwalk, Conn., ment software for manufacturers. necessity because Symonds lives and in conjunction with his taking He left the company in 2013 after 12 here and because of its investors. the helm, an Indianapolis-based years, and helping grow revenue Allos only invests in Midwest com- venture capital 10-fold, to form a consulting firm, panies, generally within a five- firm has led a Lake Angelus-based TruWin Part- hour drive of offices in Indianapo- Series A invest- ners Inc., to help early-stage tech lis or Cincinnati, and Invest ment round of $4 companies plan their growth Detroit is affiliated with Business million. strategies. Leaders for Michigan. The company He has also been a business Symonds joined the company was formally coach at TechTown. Nov. 1. The round was subsequent- named When- Symonds said he was intro- ly raised, and the company ToManage Inc. duced to WhenToManage founder adopted PeachWorks and but as of last Jeff Schacher in August 2013 by a launched its new website, week had begun Symonds private equity company looking to www.peachworks.com. doing business invest in a company he could run. Schacher, a native of Flint, will as PeachWorks. PeachWorks makes He said a deal with the PE firm be chief product officer. cloud- and app-based tools for didn’t work out, “but I hit it off Tom Henderson: (313) 446-0337, restaurant and food-service man- with the founder. When it came [email protected]. Twitter: agement, including recipe and in- time for the company to raise an A @tomhenderson2 ventory management, point-of-sale analytics and staff scheduling. Symonds said he will use the new investment round to roll out a new platform and beef up Peach- Works’ sales and marketing team. The round was led by Allos Ven- tures Management Co. Ltd. and joined by Huron River Ventures of Ann Arbor, Invest Detroit and Win- ter Park, Fla.-based Arsenal Venture Partners, through its Birmingham office. Symonds said the new platform will allow customers to create their own apps to solve their par- ticular problems or needs. Current customers include Lone Star Steakhouse, Buffalo Wild Wings, Chili’s, Panera Bread, Olga’s Kitchen

WHO ARE STATE’S BEST CFOS? Crain’s is seeking nominations for the CFO of the Year Awards, a program that recognizes Michigan’s top CFOs. Winners will be selected by a panel of CFOs and other executives, evaluating the accomplishments of the candidates. In addition to a CFO of the Year honoree, there will be a rising star award. Profiles of the winners will run in the May 25 edition of Crain’s. The winners and finalists will be gathered together for a summer event to celebrate their accomplishments. To put yourself — or a colleague — in the running, go to www.crainsdetroit.com/nominate. Deadline for nominations is March 23. 20150309-NEWS--0028-NAT-CCI-CD_-- 3/6/2015 9:52 AM Page 1

Page 28 March 9, 2015 THE MILLER LAW FIRM Changing the Odds in our Clients’ Favor Impact acquires Chicago firm, plans to hire

BY CHAD HALCOM CRAIN’S DETROIT BUSINESS

Southfield staffing company Im- pact Management Services LLC plans to nearly double its employee head count and add hundreds of new clients after recently acquiring the staff and clients of Chicago- based Brill Street LLC. Founder and CEO Pete Davis of Impact said the company began hiring last week and plans to add at least five employees to the new The Miller Law Firm is Recognized as the Chicago office of Impact by year’s end. Leading Shareholder Rights Firm in Michigan All told, Impact plans to add 12 recruiting and nine sales Q Shareholder and partnership disputes Q Corporate governance litigation employees to its offices in Q Minority oppression litigation Q Corporate control contests Southfield and Chesterfield Q Q &reach oJ ½duciary duty Securities fraud and derivative claims Township, plus another five re- cruiters and two 950 West University Drive, Suite 300 sales employees Rochester, Michigan 48307 248-841-2200 millerlawpc.com Davis in Chicago. Brill Street, which was founded in 2006, focused mainly on placing young talent within client companies, but Davis said Impact plans to broad- LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES en its range of services and employees. The acquisition via hires brings Impact’s current head count to just over 30, and Davis said it plans to reach nearly 60 in the coming months. Impact, which handles staffing, human resources consulting and some training for companies primarily in the manufacturing, engineering and accounting/financial segments, has more than 800 Best bank...3 years running. contract employees it places with customers and Davis said he hopes to expand that to 1,000 by year’s end. Best-in-class products. Davis said the company finished 2014 around $28 million in revenue and hopes to hit $35 million this year under the expan- Best of all… sion plan. Impact focuses chiefly on talent placement, having outsourced its payroll service functions to a sep- local decision making. arate professional employer organization, or PEO, in 2011. The company primarily offers management and some IT professional employee placement to manufacturers and other client Being a Michigan-based bank since 1917 means our expertise and loan decisions come straight out of our local office, not out companies. of state. With best-in-class commercial products like Positive Pay and Business Express Deposit to optimize cash flow and SBA Hiring will be coordinated loans to finance growth, you’re always banking big…even when you’re banking local. through a vice president of sales who joined Impact this year. The Brill Street contract acquisition closed Jan. 9. “We had been branching out Make an appointment with a Business Specialist into accounting and finance for and learn why big doesn’t always mean best. some time, even before this acqui- www.thefsb.com/business | 866-372-1275 sition,” Davis said. “But this latest expansion was a very logical step for us.” Chad Halcom: (313) 446-6796, [email protected]. Twitter: @chadhalcom 20150309-NEWS--0029-NAT-CCI-CD_-- 3/6/2015 9:41 AM Page 1

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 29 ‘New-world’ nonprofit thinks young as it builds donor base

BY NATALIE BRODA down by children or geography. In ballroom all night. Why? Because SPECIAL TO CRAIN’S DETROIT BUSINESS a rebuilding city, you need to build no one will forget that, and be- a bigger workforce and a better cause the organization has a bike GiveYoung.org and its parent or- support system, and what a better ride they do every summer, so to ganization, The Van House Founda- way than to get them involved in bring awareness to that as well.” tion, are not your parents’ nonprof- nonprofits?” Van House said. At this year’s event, food rescue its, and they don’t follow The Cause Finder, located at organization Forgotten Harvest traditional channels in fundrais- GiveYoung.org, is one way the or- will bring in two large palettes of ing or building awareness. ganization is trying to connect food to be packed into boxes on the There are no fliers sent to your young people. Launched in mid- ballroom floor. Those who don’t mailbox, no $250 dinners and no summer 2014, the Cause Finder wish to throw on a hairnet can 45-minute speeches at formal din- matches participants to nonprofits check out the equipment and tex- ners. based on geography and areas of tiles it takes to make an Empower- This is new-world charity, says Among those interest, such as animals, children founder and co-chairman Rick on the ment Plan coat, designed to be con- or the environment. It features Van House II. GiveYoung.org verted into sleeping bags by the nearly 500 nonprofits from Michi- Founded in 2011 in Detroit, the street team nonprofit that employs homeless and event staff Royal Oak-based GiveYoung gan and Ohio, with 95 percent of women to sew garments distrib- are (from left) them offering volunteer opportu- uted to the homeless. Humble De- movement is an awareness-cen- Anna Karana, tered initiative focused on con- nities. sign, which works with local Catherine Engage, an annual fundraising homeless and abuse shelters, will necting younger generations with Belletini, opportunities in the nonprofit Crystal Miller event to sustain the organization disrupt the crowd all evening as it community. Through tools such as and Kelsey for the following year, is another furnishes an empty space in the Cone. way GiveYoung celebrates new- ballroom. social media and festive parties, COURTESY OF GIVEYOUNG.ORG Van House, 35, of Bloomfield Hills, world charity. This year’s event The sponsors will be in on the and his organization hope to build we went and there were only four parties, dancing, no sitting down,” will be held at the Westin Book action as well. Whole Foods Market, a bigger support system for the people there,” Van House said. “It Van House said. “We’re communi- Cadillac Detroit on March 27. Along which has sponsored the event for nonprofit community in Southeast got us thinking, maybe we could cating in short bursts over social with dancing and cocktails, event the past two years, will bring in a Michigan. get more people here.” media, making things more afford- attendees will have a chance to in- six-table produce department to Instead of asking millennials for Within the year, the foundation able, like $40 ticket prices.” teract with this year’s featured promote healthy and sustainable their money, Van House said, the was established. GiveYoung has Van House said he believes nonprofits: Oak Park-based Forgot- eating. The Westin gave away a foundation is asking them to do- launched several strategies to at- these methods will create an av- ten Harvest, Detroit-based The Em- night’s stay for the evening of the nate time to these nonprofits. tract young folks to nonprofits, enue to interact with younger peo- powerment Plan and Pontiac-based event. It all began in 2011 when Van such as its Cause Finder and its ple, to help build a future donor Humble Design. Tickets for Engage are on sale House and his wife, Nicole, attend- annual fundraising event, Engage. base for the nonprofit community. “It’s called Engage because it’s for $40 apiece at GiveYoung.org. ed an event at the Hamilton Room “It’s not easy to convince them “In the rebirth of a city like De- not a normal event; we create an Revenue from the tickets will be in Birmingham for the Alzheimer’s to get involved, or else we wouldn’t troit is going through, the youth is engaging environment,” Van used by the foundation to further Association. be doing this. But we’re using dif- where that activity is coming House said. “At last year’s event, its mission in the coming year. For “The event was targeted at our ferent methods, we’re creating from. They have the drive, they the American Diabetes Association the 2014 fiscal year, the foundation age group, targeted at a hip bar, so new-world charity, which is fun can do anything. They’re not tied had two guys riding bikes in the brought in about $145,000.

Launching March 30 Crain’s will continue NEW to deliver the in-depth business DAY FOR news you’ve relied on for 30 years... DETROIT ...just faster, easier NEW LOOK FOR and, well, better CRAIN’S DETROIT BUSINESS looking.

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March 9, 2015 CRAIN’S DETROIT BUSINESS Page 31

CALENDAR Rothwell, president and CEO, Busi- Women Leaders: Driving Our Future. 11 THURSDAY ness Leaders for Michigan; Hans- a.m.-1:30 p.m. March 27. Henry Ford MARCH 12 Werner Kaas, senior partner and di- College. HFC’s 42nd annual Women’s rector, McKinsey & Co.; Ray Leach, Recognition Luncheon, supporting stu- The New Office. 7:30-9 a.m. WWJ CEO, JumpStart Inc.; Brian Hicks, dent outreach and student emergency Newsradio 950. WWJ/FOX 2 Business president and CEO, Hicks Partners, fund, features panel including Lila Editor Murray Feldman moderates a and chief architect of Ohio Third Fron- Lazarus, president of Kids Kicking Can- panel on new office trends that are tier; Steve Arwood, CEO, Michigan cer and former reporter/anchor for changing today’s workplace. Panelists Economic Development Corp.; WDIV-Channel 4; Jackie Lovejoy, presi- include Kelly Deines, leader designer, Michael Jandernoa, board of directors, dent, Dearborn Area Chamber of Com- Rossetti, and adjunct faculty, Perrigo Co.; Charles “Chip” McClure, merce; Haifa Fakhouri, president and Lawrence Technological University; managing director, Michigan Capital CEO, Arab American and Chaldean Mark Phillips, business services sales Partners LLC; and Sandra Pierce, Council; and Beth Chappell, president manager, Comcast Business; and chairman and CEO, FirstMerit Michi- and CEO, Detroit Economic Club. Stu- Melissa Price, CEO, dPOP! Lawrence gan. Lansing Center, Lansing. Free. dent and Culinary Arts Center, Henry Technological University, Southfield. Contact: Jennifer Hayes, (313) 259- Ford College, Dearborn. $15 luncheon Free. Contact: Rob Davidek, (248) 327- 5400, email: jenniferh@businesslead ticket; sponsorships range from $100 2777; email [email protected]; web- ersformichigan.com; website: busi to $2,500. Donation deadline is site: detroit.cbslocal.com/the-leaders- nessleadersformichigan.com/events. March 20. Contact: Kathy Dimitriou, innovators-series-2014. [email protected] or (313) 845-9620, 2015 Great Lakes Business Intelli- or donate online at https://my.hfcc. gence and Big Data Summit. 8 a.m.-5 edu/RegForms/donation.asp. p.m. March 26. WIT Inc. Summit is a UPCOMING EVENTS cross-industry educational and net- CEO Luncheon Series. 11:30 a.m.-1 p.m. working event for IT and business ex- March 17. Troy Chamber of Com- ecutives interested in big data topics CALENDAR GUIDELINES merce. Kirk Steudle, director of Michi- and trends. Keynote speakers include If you want to ensure listing online gan Department of Transportation, Boris Evelson, vice president at For- and be considered for print discusses MDOT innovations and rester Research, and Don Farmer, vice moving people and goods faster, safer president of innovation and design at publication in Crain’s Detroit and cheaper. MSU Management Edu- Qlik. Somerset Inn Hotel, Troy. $149. Business, please use the online cation Center, Troy. $27 chamber Contact: Amanda Mansour, bisum calendar listings section of members, $37 nonmembers. Contact: [email protected] or (248) 641-5900, ext. www.crainsdetroit.com. Here’s Jaimi Brook, (248) 641-8151; email: 244; website: greatlakesbisummit.com. how to submit your events: [email protected]; website: From the Crain’s home page, click troychamber.com/events. Business Leaders of the Year. 6-9 p.m. “Detroit Events” in the red bar March 26. Harvard Business School near the top of the page. Then, NASCAR: The Importance of Stake- Club of Michigan. Dinner and awards click “Submit Your Entries” from holder Collaboration. 11:30 a.m.-1:30 ceremony honoring Gordon Krater, the drop-down menu that will p.m. March 19. Detroit Economic managing partner, Plante Moran, and appear and you’ll be taken to our Club. Luncheon’s featured guest is Bri- Sandra Pierce, vice chairman, First- online submission form. Fill out an France, chairman and CEO of Merit Corp., and chairman and CEO, the form as instructed, and then NASCAR. Dearborn Inn Marriott, FirstMerit Michigan. MSU Manage- click the “Submit event” button at Dearborn. $45 DEC members, $55 ment Education Center, Troy. Private guests of members, $75 nonmembers. the bottom of the page. That’s all reception for sponsors, 5:30 p.m. there is to it. Ticket sales end at noon March 18. Tickets $150 and up, available Contact: (313) 963-8547; website: at http://www.hbsmi.org/store.html? More Calendar items can be econclub.org. event_id=258. Contact: Amanda found on the Web at Schubeck, (248) 930-4614 or www.crainsdetroit.com. Taste of Leadership Oakland. 4:30-7 [email protected]. p.m. March 19. Leadership Oakland. Event features an address by L. Brooks Patterson, presentation of “Leader of Leaders” awards, a silent auction, strolling hors d’oeuvres and a cash bar. Troy Marriott, Troy. $25 members, $40 nonmembers. Con- tact: (248) 952.6880; email: info@ leadershipoakland.com; website: leadershipoakland.com. Smart tax planning is

Women’s Entrepreneur Conference. 8 a.m.-2 p.m. March 20. JoAnne Purtan, host of WXYZ-TV’s noon report, emcees, good design and Alison Vaughn, founder and CEO of Jackets for Jobs Inc., is the keynote speaker. Walsh College, Troy. $45. Con- tact: Jan Hubbard, (248) 823-1392; email: [email protected]; website: walshcollege.edu/eyouconference. At ShindelRock, we know that minimizing tax liability doesn’t just happen. We design DEC Presents. 11:30 a.m.-1:30 p.m. March 24. Detroit Economic Club. and implement strategies that reduce tax Stuart Hoffman, senior vice president and chief economist, PNC Financial liability and prevent end-of-year surprises. Services Group, is the featured speaker. Westin Book Cadillac Detroit. $45 This allows our clients, like Ideation, to DEC members, $55 guests of members, focus on the fun stuff – like designing $75 nonmembers. Ticket sales end at noon March 23. Contact: (313) 963- innovative brands and spaces. 8547; email: [email protected]; website: econclub.org. “ShindelRock brings a valuable Inside the CEO Mind. 3 p.m. March 25. Detroit Regional Chamber. Frank perspective right when I need it. Venegas Jr. of The Ideal Group will speak; a tour follows the presentation Their year-round attention makes and question-and-answer session. The Ideal Group Inc., Detroit. $25 chamber my business more predictable.” members, $50 nonmembers (cost goes toward membership). Contact: Maggie Oldenburg, (313) 596-0482; email: ~Daren Bossenberger [email protected]; website: detroitchamber.com/events.

RAM: Redefining a Brand. 6-8 p.m. March 25. Marketing & Sales Execu- tives of Detroit. Joe Benson, head of Ram brand, Fiat Chrysler Contact for Inquiries Automobiles, speaks. Golling Chrysler Dodge Jeep Ram, Bloomfield Hills. $45 Steve Wisinski, CPA, CFE, CFFA MSED members, $60 nonmembers. Daren Bossenberger, President Steve Wisinski, Partner Contact: (248) 643-6590; website: Partner msedetroit.org. www.ShindelRock.com | 248.855.8833 Business Leaders for Michigan Lead- ership Summit. 8 a.m.-noon March 26. 28100 Cabot Drive Ste. 102 | Novi, MI 48377 Business Leaders for Michigan. Speakers and panelists include Doug 20150309-NEWS--0032-NAT-CCI-CD_-- 3/6/2015 11:03 AM Page 1

Page 32 CRAIN’S DETROIT BUSINESS March 9, 2015

PEOPLE CONSTRUCTION and April Thiel to senior manager, SERVICES from manager. IN THE SPOTLIGHT Ronald McClelland to senior project Maria Geller to meeting and events manager, White Construction, Detroit, manager, Special D Events Inc., Fern- Morpace Inc., Farmington Hills, in marketing, both from Michigan from principal, RMcClelland Consult- dale, from ac- has announced the promotion of State University. He also went ing, Las Vegas. Also, Darryl Young to count manager, two through the project manager, from financial man- HelloWorld Inc., ager, D & D Wealth Management LLC, Pleasant Ridge. executives. Fuqua School Southfield. Duncan of Business Jane Owen to Lawrence was executive CONSULTING president, Vistage named CEO education Michigan, St. and president, program at John Fitzgerald to Clair Shores, and Sharna Duke president, Lead- from performance Morelli was University, ingClass Advisory improvement co- named COO and he has Group LLC, How- ordinator, Edw. ell, from senior Eleazar Vandercook and executive served as C. Levy Co., Dear- manager, health vice president. board born. Owen care advisory, LAW Lawrence has chairman of Ernst and Young Lawrence Morelli been with the Masters of LLP, Detroit. Miranda Welbourne Eleazar and Jill Morpace since 1994, when he Marketing research program at Fitzgerald Vandercook to shareholder, Sullivan, PEOPLE GUIDELINES joined as senior vice president of MSU. FINANCE Ward Asher & Patton PC, Southfield, automotive. He was promoted to Morelli joined Morpace Data from associate. Announcements are limited to Kevin Granger to executive vice president, and in Operations in 1994 and management positions. Email them senior vice presi- MARKETING 2011 became COO and spearheaded improvements in dent, PNC Finan- to [email protected] president. In addition to his new data operations and information cial Services Rick Dennis and Tim Teegarden to or mail notices to Departments, role, Lawrence retains his title as technology, leading to her being Group Inc., Troy, global executive creative director, Crain’s Detroit Business, 1155 chairman and remains a member named vice president in 2005 from vice presi- Commonwealth/McCann, Detroit, Gratiot Ave., Detroit, MI 48207- of the executive board. and executive vice president of dent. from creative director, North Ameri- 2997. Releases must contain the He takes over as CEO from Frank operations in 2011. Matt Mazure to ca. Also, Adam Glickman to creative person’s name, new title, Ward, one of Morpace’s As vice president, Morelli takes senior staff ac- director, from senior vice president, company, city in which the person founders. Ward remains with the title Lawrence partially held countant, MRPR creative director, DDB Chicago; John will work, former title, former Morpace as a chairman and before his most recent promotion. Group PC, South- Fiebke to creative director, from cre- company (if not promoted from member of the executive board. field, from staff ative director, Energy BBDO, Chica- within) and former city in which the Morelli, 53, attended Oakland Granger Lawrence, 57, has a bachelor’s Community College and Walsh accountant. go; Tim Mattimore to creative director, person worked. Photos are degree in horticulture and an MBA College. Hannah Thoms to principal, Gordon from freelancer, Chicago; and Craig welcome, but we cannot guarantee Advisors PC, Troy, from senior man- Feigen to creative director, from cre- they will be used. ager. Also, Carmen Jaeger, Jill Knop ative director, DDB Chicago.

BUSINESS DIARY

ACQUISITIONS & MERGERS comb County government’s campus in DriverSource Inc., Dearborn, a tempo- downtown Mt. Clemens. The Macomb rary staffing and recruiting company Cooper-Standard Holdings Inc., the par- County Board of Commissioners re- ent company of Cooper-Standard Auto- for commercial truck drivers, opened cently approved a $65 million plan to an operating center providing commer- motive Inc., Novi, announced the com- renovate five buildings and construct- pletion of its purchase of Huayu cial truck leasing and recruiting ser- new parking deck. A groundbreaking is vices at 600 Three Mile Road NW, Suite Automotive System Co.’s share in planned for April and the project is pro- Huayu-Cooper Standard Sealing Sys- 202, Grand Rapids. Telephone: (616) 272- jected to be completed in September 7054. Website: driversource.net. tems Co. Ltd. Cooper Standard is now 2017. Websites: clarkcc.com. macomb RE/MAX of Southeastern Michigan, 95 percent equity owner of the busi- gov.org. ness with 5 percent retained by the Troy, announced the opening of Shanghai Zhaotun Collective Assets Joe Muer Seafood restaurant, Detroit, RE/MAX Eclipse, 28780 John R, Suite has named Managing Co. Cooper-Standard is Simons Michelson Zieve 202, Madison Heights. The office is a now the largest automotive sealing Inc., Troy, as its advertising agency conversion from ECO Realty. Tele- manufacturer in the domestic Chinese of record. Websites: smz.com, phone: (248) 439-1630. Website: market with nine manufacturing facil- joemuer.com. eclipseagents.com. ities and two technical centers, including its recently opened Asia Pa- EXPANSIONS MOVES cific Technical Center and headquar- Cordell & Cordell PC, St. Louis, Mo., a Eklund-Easley Law Firm moved from ters in Shanghai. Website: cooper domestic litigation firm focusing on 19111 W. 10 Mile Road, Suite 106, standard.com. representing men in family law cases, Southfield, to 24901 Northwestern High- has opened an office at 290 Town Cen- way, Suite 302, Southfield. Telephone: CONTRACTS ter Drive, Suite 420, Dearborn. Tele- (248) 213-3909. Website: eklundeasley Clark Construction Co., Lansing, has phone: (313) 465-1999. Website: cordell- law.com. been construction manager for Ma- cordell.com. JMC Electrical Contractor LLC, a certified Women Business Enterprise electrical contracting firm that specializes in commercial, industrial and institu- tional electrical installations, has moved its headquarters from 22920 In- dustrial Drive E., St. Clair Shores, to 33651 Giftos Drive, Clinton Township. Website: jmcelectricllc.com. NEW PRODUCTS YOU CAN TELL FROM OUR BUILDING Michigan Mittens, Pontiac, has launched a new line of merchandise WE MEAN BUSINESS. including a limited edition camou- flage print Michigan Mittens. A percentage of proceeds from the sale The GVSU Seidman College of Business full- or of these mittens will be donated to The Fallen and Wounded Soldiers Fund part-time M.B.A. program will get you to the top. of Michigan. Website: michiganmit tens.com. West Michigan’s premier business school now has an equally premier building, enhancing downtown DIARY GUIDELINES Grand Rapids’ growing skyline and economic climate. Email news releases for Business Diary to cdbdepartments@ crain.com or mail to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20150309-NEWS--0033-NAT-CCI-CD_-- 3/6/2015 5:35 PM Page 1

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 33 Best brews to help weather the winter blues

What to do as winter weather • Expedition Stout (Imperial Stout) (Imperial Stout) New Holland Brewing Co., Holland winds down? Details: Dark fruits, complex, MORE BEER Details: Black, coffee, cocoa, • Cabin Fever (Brown Ale) earthy, robust, 11.5% ABV How about sampling a Michi- malty, bitter, No. 15 on RateBeer’s Ⅲ Details: Robust, roasty, rye, gan-made thick stout or porter, or Top 50 beers in the world, No. 2 An extended list is at Ratings: 89 (BA), 94 (RB) raisin, caramel, 6.5% ABV, 25 IBUs crainsdetroit.com/winterbeerguide an experimental draft? The follow- on RateBeer’s Top 50 winter • Me So Ornery “Combative seasonal beers list, 10.5% ABV Ratings: 83 (BA), 77 (RB) ing list include a description of the toffee, 7.5% ABV, 78 IBUs Quadruple” (Belgian Quadruple) Ratings: 94 (BA), 100 (RB) • Java Chip Mint Stout flavors, followed by more serious Ratings: 91 (BA), 98 (RB) Details: Rich, dark fruit, sweet, beer connoisseur information. malty, 10% ABV Details: Cream, mint, chocolate • Imperial Stout chip, coffee, 6% ABV I’ve included scores out of 100 Dark Horse Brewing Co., Marshall Ratings: Not rated (BA), NR (RB) Details: Robust, malty, smooth, from BeerAdvocate.com and Rate- • Double Crooked Tree Ratings: 87 (BA), 97 (RB) complex, rich, No. 11 on (Imperial/Double IPA) Short’s Brewing Co., Bellaire Beer.com, two RateBeer’s Top 50 winter seasonal Kuhnhenn Brewing Co., Warren leading beer Details: Hoppy, malty, bold, smooth, beers list, No. 189 on • Imperial Michigan Mud (Imperial • Goodnight Bodacious (Black indexing sites. caramel, 13.6% ABV, 98 IBUs BeerAdvocate’s Top 250 beers in Milk/Sweet Stout) IPA) Eat & Also includ- Ratings: 93 (BA), 99 (RB) the world, 10.5% ABV, 90 IBUs Details: Malty, hoppy, earthy, dark Details: Vanilla bean, cocoa, Drink ed: Alcohol by Ratings: 97 (BA), 100 (RB) toasty, strong, 12.5% ABV fruit, 9% ABV, 90 IBUs volume (ABV), Founders Brewing Co., Grand Ratings: 89 (BA), NA (RB) Ratings: 92 (BA), 98 (RB) the percentage Rapids Griffin Claw Brewing Co., used to display • Black Rye (Specialty Grain) Birmingham how strong Details: Big hops, rye malts, • Imperial Bourbon Coffee Stout your beer is; MARKET PLACE and Interna- tional Bitter- ing Units OFFICE FURNITURE WEDDING SERVICES (IBUs), which are often used Office Furniture Warehouse Clearance Waterfront Weddings by brewers to Stack Chairs, Conference Chairs & Tables Straits of Mackinac Sean Genereaux display how Panels & Cubicles, Herman Miller, Steelcase, Hon, freelance bar and bitter your File & Storage Cabinets, Reception Desks Exec. Desks, New & Used, Mahogany & Cherry. DestinationWeddingsUpNorth.com restaurant writer beer will be (the higher the www.betterbusinesssystems.com 906-643-8621 number, the more bitter). [email protected] - 248-548-6404 The list below is just a “flight” of BUSINESSES WANTED favorites; it is not meant as a com- BUSINESS OPPORTUNITIES prehensive Michigan beer report. Consider this a starter guide to BLOOMFIELD HILLS ATTN: RETIRING & some of the beer to sample as The MONEY MANAGER TRANSITIONING CPAs Winter That Never Ends finally Looking for Established Brokers/Advisors winds down. Ready for Independence, Higher Payouts Get maximum value for and a Great Work Environment. the accounting ﬁrm you Send Message or Resume to: KIRK PINHO/CDB Arcadia Brewing Co., Battle Creek [email protected] have worked a lifetime Jolly Pumpkin's Midtown location is decorated with reclaimed wood. • Bourbon Barrel Shipwreck (Porter) to build and give clients Details: Dark, aged 12 months, and staff continuity malty, robust, 12% ABV, 50 IBUs PROPERTY & BUSINESS when you let Novi-based Ratings: 93 (BeerAdvocate.com), Midtown Jolly Pumpkin to open OPPORTUNITY: 99 (RateBeer.com) ShindelRock be part Midtown is almost ready to meet Jolly Pumpkin and North Peak ESTAB. PROFITABLE RESTAURANT of your succession plan. its newest microbrewery. Brewing Co. beers, more than 30 of ~ Includes Property ~ Liquor Lic. Avail. Atwater Brewery, Detroit ~ Great Location ~ Beautiful Sunsets We are seeking to acquire Jolly Pumpkin Artisan Ales is still which will be served at the new lo- • Decadent Dark Chocolate Ale ~ Indoor/Outdoor Waterfront Dining Public Accounting Firms cation. (Stout) about a month away from opening ~ Guest Boat Slips ~ Full Service Bar Jolly Pumpkin will also serve with 5 – 15 staff members Details: Rich dark chocolate, its doors to customers on West ~ Bldg./Equip./Inventory/Del. Truck gourmet pizzas, salads, sandwich- in Oakland, Wayne or deep, complex, 5.5% ABV Canfield Street, but media had the MACOMB COUNTY VITAMIN & es, burgers and desserts. Livingston County. Ratings: 83 (BA), 75 (RB) chance to get a peek inside the HEALTH FOOD STORE 5,000-square-foot microbrewery, Northern United had more than Interested sellers should $10 million in revenue last year, ESTABLISHED PROFITABLE Bell’s Brewery Inc., Comstock distillery and pizzeria in Detroit HIGH TRAFFIC contact David Shindel, last week. he said. The company expects to • Hopslam (Imperial Pale top the 10,000-barrel figure in 2015 ~ Over 4,700 Sq. Ft. CPA, MAFF, CVA, Adorned with about 16,000 lin- ~ Includes Name, Equipment, Ale/Double IPA) production, Grant said. at 248-855-8833. ear feet of reclaimed wood, Jolly Inventory and Customer List Details: Hoppy, citrus, grapefruit, Jolly Pumpkin also has loca- Showings by appointment only complex, famous, No. 26 on Pumpkin seats about 100 and will tions in Ann Arbor, Dexter and RateBeer’s Top 50 beers in the have about 70-75 full- and part-time More information available with signed Traverse City. confidentiality agreement. world, No. 63 on BeerAdvocate’s employees, said Tony Grant, CFO The Detroit space is in the his- Top 250 beers in the world, 10% FOR MORE INFORMATION: and COO of Dexter-based Northern toric Willys Overland building at ABV, 70 IBUs James & Lana Mangiapane United Brewing Co. 441 W. Canfield. Ratings: 99 (BA), 100 (RB) Northern United Brewing brews Commercial Real Estate, Inc. — Kirk Pinho 22018 Harper Avenue JOB St. Clair Shores, MI 48080 Call Lana for details: 313-815-4690 248-651-8834 (Fax) FRONT [email protected] Levin: Not retiring in his retirement POSITIONS AVAILABLE ■ From Page 3 REAL interested in the firm. tion work in the city. sel for the Michigan Civil Rights Com- “David was a dear friend of While in the Senate, he served mission from 1964 to 1967. ESTATE mine, and to so many,” Levin as chairman of the Committee on Levin earned a bachelor’s de- said. “He and I spent quite a bit of Armed Services. gree from Swarthmore College in DESIGNER time together, and he’s really the Levin ran for Senate in 1978, de- Pennsylvania and a law degree COMMERCIAL PROPERTIES AUTOMOTIVE INTERIORS one that suggested Honigman as a feating incumbent Republican from Harvard Law School. Develop and implement creative designs possibility (after leaving Con- Sen. Robert Griffin. Levin was re- The Democrat isn’t the only one THERAPY / CENTER for Big Three and trans-nationals. gress).” elected in 1984, 1990, 1996, 2002 and from a political family at Honig- Dynamic Rehabilitation is moving to Larger Space. Interpret design briefings, develop new Existing 6,000 Sq. Ft. Available for Sublease. decors, and integrate new decorative Levin said he plans to dedicate 2008 before announcing his retire- man. G. Scott Romney, brother to Was $22 Sq. Ft, Now $18 Sq. Ft. technologies and concepts into design. On Hayes / S. of 19 Mile Rd. some of his time to law, but also ment in 2013. the former governor of Massachu- 1-3 years auto industry experience, plans to teach. He’s also excited to He is the longest-serving senator setts and Republican presidential BILL McMACHEN knowledge of print finishing return to Detroit. in Michigan history and was the candidate Mitt Romney, is a part- (586) 915-4441 ~ [email protected] Related Design degree “I want to come home,” Levin fourth longest-serving senator in ner in the firm. Strong skills in graphics programs said. “That’s the most important the U.S. Senate. George Romney, Scott’s and (Adobe CS) thing for me.” Before serving in the Senate, Mitt’s father, served as the gover- Advertise your Levin, who lives in Lafayette Levin was a member of the Detroit nor of Michigan from 1963 to 1969. http://www.kurzusa.com/ Products and Services in Forward resume to: Park with his wife, Barbara, said City Council from 1969 to 1977, Dustin Walsh: (313) 446-6042, J. Walls, HR Manager he’d also like to become involved serving as president in 1974-1977. [email protected]. Twitter: Crain’s Detroit Business [email protected] with some of the nonprofit founda- He also served as general coun- @dustinpwalsh. 20150309-NEWS--0034,0035-NAT-CCI-CD_-- 3/6/2015 4:54 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS March 9, 2015 Blues: Insurer ‘can now compete fully in the marketplace’ ■ From Page 1 vest the Accident Fund that he residents, not to diversify into other claimed the insurer had improperly business ventures. FEATURES OF BLUE CROSS’ acquired. (Blue Cross) So, for the past 30 years, Blue Our issue “They can afford to invest be- “ Cross operated as the insurer of NONPROFIT MUTUAL STATUS “ cause they have this huge cash can afford last resort, growing to control 72 New products. Change allows continues cow on the health care side that percent of the health insurance the Accident Fund Insurance Co. of wasn’t taxed for years and can use to invest market in Michigan and generat- America, a for-profit Blue Cross to be that that (surplus) to invest in other ing a nearly $3 billion surplus and subsidiary, to sell a variety of other product lines that other companies because $8.1 billion in assets. insurance. It had been limited to Blue can’t compete against.” As a mutual, Loepp said, “we workers’ compensation and they have employers’ liability insurance and Cross is Cox said he is concerned that can now compete fully in the mar- act as a third-party administrative Blue Cross’ dominant size as an in- this huge ketplace, and that is fair.” services organization for self- the surer “can act as a disincentive to insured workers’ compensation other players that may want to cash cow plans. Sources say the Accident dominant come into the market.” Court action Fund now might offer property and While there have been many oth- on the health care side During the past two months, casualty insurance, disability and carrier in Michigan er legal and statutory changes at Crain’s has conducted more than a auto insurance. Blue Cross since it formally merged that wasn’t taxed for dozen interviews with former Diversification. Blue Cross and how they use its company into a mutual on Dec. Blue Cross executives, competi- invests its profits and premium 31, 2013, Loepp said that in other years . tors, hospital administrators, gov- dollars into many different their size. business lines that it couldn’t ways the company hasn’t changed ” ernment officials and interested ” before under Public Act 350. Some Mike Cox, parties. Rick Murdock, Michigan Association at all in its commitments to cus- include such specialty insurance tomers, providers and its contribu- former Michigan attorney general Some critics of Blue Cross, most policies as accident, life, critical of Health Plans tions to nonprofit organizations. of whom preferred to remain illness, and short and long-term “We are still committed to the Blue Cross never liked that anonymous, agreed that Blue disability. different than other health insur- social mission we have and com- moniker or the restrictions placed Cross hasn’t changed much from Plans to invest in out-of-state ers because of its immense size. mitted to the core cities (like) De- on it. In fact, the Blues sued the state the standpoint of how large it is companies (yet-to-be-determined “Our issue continues to be that troit. We still spend $1 million (a in a case that ultimately went to the compared with other health insur- business ventures). Blue Cross is the dominant carrier year) on free clinics,” Loepp said. U.S. Supreme Court, which ruled ers and how it uses its size to gain Uniform treatment. The change in Michigan and how they use The new governance structure is against the Blues in 1985, when Pub- competitive advantages. allows Blue Cross to file and use their size,” Murdock said. somewhat self-explanatory; a non- lic Act 350 finally went into effect. “They were insurer of last re- new insurance rates like other Murdock said talks are under- profit mutual is a member-owned Over the following years, Blue sort. That was a good thing for health insurers. Before, it needed way with Blue Cross and the Michi- entity with nonprofit status. Cross executives would complain Michigan residents because they to file its rates and gain approval gan Department of Financial and Insur- from the state insurance and ask legislators for various types were perceived as quasi-governance Services about further Still, Loepp acknowledges that department and attorney general’s mental,” said a health care lawyer amendments to the state insurance Blue Cross has changed immensely of relief from PA 350. For example, office. from when the Michigan Legisla- in the late 1980s, then-Michigan At- who asked for anonymity. code that could help level the play- Reporting. Blue Cross files ture in 1980 approved Public Act torney General Frank Kelley told “Now they are relieved of those ing field. responsibilities, but they used annual reports to the insurance 350. The law required Blue Cross to the Blues he opposed mutualization department, but the information Cox said the size of Blue Cross is become the state’s “insurer of last because he felt the state’s largest their prior unique status to build a required is much less in scope a concern for him now as it was resort” and limited it to selling only health insurer should only exist to juggernaut.” than before. when he was attorney general For example, Aetna Inc. sued health, dental and vision policies. offer low-cost health insurance to Governance. Reduces the from 2003 to 2010. Blue Cross in 2011 for $2 billion in number of board of trustee “As they grew from 1939 — when an antitrust lawsuit that charges committees to eight from 13. they were chartered as the insurer Blue Cross used unfair contract Board still has 35 members. of last resort — until now when practices in its “most favored na- Timely decision-making. The they have 72 percent dominate mo- tion” contracts with hospitals. The change gives management more nopolistic power, I always believed lawsuit is ongoing. decision-making authority on if you unleashed them from the Before the state banned them in business ventures or products. moorings of the law (PA 350) that 2013, most-favored-nation agree- Before, the full board had more they would have a huge competi- ments mandated that hospitals give oversight and required approval tive advantage over private entities Blue Cross not only the best price, when it met every three months. — the Cignas, the Priorities (Priority but allegedly required hospitals to Reinvestment. Under PA 350, Health), the Aetnas,” Cox said. charge competing insurers more. Blue Cross was technically owned by Michigan’s 10 million residents. While Cox said he supported al- A similar lawsuit filed by Attor- The proceeds of any sale, however, lowing Blue Cross to convert to a ney General Bill Schuette and the would go to the state. Now, as a mutual, he said he would have U.S. Department of Justice appears mutual, Blue Cross is overseen by pushed for a better deal for the close to resolution with a $30 mil- a board that is appointed by a vote state that would have increased lion settlement deal on the table. of its 4.5 million policyholders, the annual funding of the Michigan In addition, some 52 self-insured more than 1.1 million of whom live Health Endowment Fund by Blue companies and municipalities have out of state. As before, if Blue Cross and required Blue Cross to sued Blue Cross, with at least 10 Cross is sold, the state would slowly phase-in its transition to a receive the proceeds. reaching out-of-court settlements mutual. and six others nearing settlements, Sources: Interviews with Crain’s sources and Blue Cross officials Loepp said Blue Cross’ new free- for allegedly charging them hidden dom to enter other lines of busi- fees on their administrative ser- ness put it on more equal footing vices contracts. tells a story in itself. Blue Cross, as with other top insurers in Michi- The American Medical Association a mutual, still wields enormous gan. clout, maybe even more since it also has released several reports “It is so good to be a mutual. We has been unfettered from the 30- the last few years showing that don’t have to go to (Wall) Street year ties of PA 350. Michigan is now the nation’s third every quarter,” he said. “We can least-competitive market because One executive who agreed to look at things over a longer-term of Blue Cross’ dominant market speak on the record is Rick Mur- time period.” dock, executive director of the power. Being a mutual, Loepp said, is Michigan Association of Health Plans. Blue Cross officials have dis- more about “taking away disad- missed these criticisms in court The 16-member HMO associa- vantages.” filings and in interviews as sour tion, which eventually supported grapes. They counter with a 2009 Blue Cross’ conversion, warned report by the Kaiser Foundation that that without changes in the insur- Financial results ance code allowing managed care showed the rate of premium in- In 2014 — its first full year as a plans to become more competitive, creases in Michigan was the low- mutual insurer — Blue Cross the legislative changes allowing est of all 50 states from 1999 to 2009. earned $295 million compared with mutualization would only solidify Blue Cross also says it uses its a loss of $85 million in 2013, accord- Blue Cross’ market dominance. size to extract discounts from hos- ing to a state filing last week. pitals and doctors that help reduce To compete in the new health One reason for the financial premium rates for its 4.5 million care market under Obamacare, turnaround is a complete reversal members. Murdock said, Blue Cross and oth- on previous losses in underwrit- er health insurers are “being very ing. For example, Blue Cross last aggressive in going after new mar- year earned $97.6 million on its in- Negotiating power kets and changing the nature of surance operations compared with But the fact that few agreed to go their contracts.” on the record with their comments But Murdock said Blue Cross is See Next Page 20150309-NEWS--0034,0035-NAT-CCI-CD_-- 3/6/2015 4:54 PM Page 2

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 35

From Previous Page going to happen.” iHealth Caritas, a Pennsylvania- For example, Blue Cross still is based Medicaid managed care losing $269 million in 2013. liable for about $180 million per company that also was approved Why the turnaround? A major year in Medigap coverage costs for in 2011, Loepp said. “How to Stop Unpaid Consul ng” change between 2013 and 2014 is the next two years, although most “We are going to do more deals Ɵ that Blue Cross was allowed to of it came from a surcharge on its like this,” he said. cancel money-losing individual self-insured business and individ- But Loepp said Blue Cross Blue market policies. Over the past ual customers. Shield of Michigan has no interest decade, Blue Cross lost nearly $1 Blue Cross also is paying $100 in expanding by acquiring other billion in the individual market. million in state and local taxes and Blues plans. “We are talking a lot By raising rates by 6 percent to 9 it contributes $50 million to $100 more about our common opportu- percent and adding more than million annually to the endow- nities to share resources to keep ad- 100,000 new customers, revenue ment fund. ministrative costs down,” he said. rose 11.3 percent, to $7.445 million Loepp predicted it will take Blue As a mutual, the company has from $6.688 million. Cross at least another 18 months to created business efficiencies and Blue Cross still loses money in fully transition into a complete lowered its overhead costs, said the individual market, Loepp said. nonprofit mutual insurer. Nation- Andy Hetzel, Blue Cross vice presi- But he expects that to change this wide, there are at least 16 other dent of corporate communications. year. Blues plans that operate as mutual For example, Roy said, the way “We don’t look at huge margins. companies, including Blues plans PA 350 was written, it required Blue Our advantage, now as a mutual, is in Arkansas, Florida, Hawaii and Cross to spend hundreds of thou- we can play very successfully on a 1 Louisiana. At least two of those sands of dollars in extra mailings percent to 2 percent margin. Some Blues plans have converted into in- and postage to send explanation of competitors can’t do that,” he said. vestor-owned companies, including benefits (EOBs) to its members Indianapolis-based Anthem Inc., and within one week of service, regard- But despite nearly 14 months as a Triple-S Salud Inc. of Puerto Rico, less if a balance was owed or not. mutual, Loepp said, Blue Cross still said a report by San Francisco- “Now we group the EOBs and is under financial constraints based Consumers Union. send in 30 days and allow people to placed on it by the state Legislature. receive it online,” Roy said. Stop QuoƟng and Hoping… “This is still a financial burden Loepp said the expertise of Blue Start Qualifying and Closing! on the company,” he said. “Mak- Mutual advantage Cross in managing insurance costs ing huge amounts of investments Loepp said the most important also will enable it to sell consulting (in new products or company ac- change at the moment is the free- services to help other Blues plans Learn More At Our Execu ve Workshop On: quisitions or joint venture part- dom to compete on the Obamacare with their efforts, especially with Ɵ nerships) in the short term isn’t health insurance exchange in its success in managing Medicare Michigan as one of 16 players sell- Advantage senior products. March 26th THE MOVE TO A MUTUAL ing policies. “Bill Schuette, Frank Kelley, Jen- “There is no way, based on PA nifer Granholm and Mike Cox (all How Blue Cross has changed as a nonprofit mutual health insurer from 350, we could have played on or off former attorney generals) made it when it was Michigan’s insurer of last the exchange,” Loepp said. “It used difficult for us to compete as an in- www.gerryweinberg.sandler.com resort under Public Act 350: to take us 12 to 18 months to get our surance carrier,” said Loepp, noting or rates approved, and it was a public they were doing their job under PA Call 248-353-4030 2013 process. All our competitors would 350. have known our rates. It would “We now have a relatively free Ⅲ Blue Cross canceled money- have had a negative impact on con- rein to take a look at other invest- losing individual market plans that cost the insurer annually nearly sumers.” ment opportunities and we will do $100 million. Legislation enabling Loepp said Blue Cross’ premium so,” he said. the Blue Cross mutual conversion rates on the exchange in 2014 were Jay Greene: (313) 446-0325, allows the insurer to discontinue the lowest in 80 of the state’s 84 [email protected]. Twitter: individual or group plans with counties. This year, Blue Cross @jaybgreene notice to policyholders and the raised its rates about 9 percent, state insurance commissioner. but other insurers lowered them Ⅲ Terminated participation in this year to better compete. Michigan’s MIChild health “Michigan is one of the most insurance program for children of competitive states on the ex- low-income working families, change,” he said. “No way we could saving an estimated $20 million to $30 million annually, according to have done that without being a mu- the Michigan Department of tual.” Community Health. Blue Cross said Kirk Roy, the Blues’ vice presi- the state made the request and dent of health reform, said Blue suggested the contributions to the Cross “fostered endowment fund made up for the competition in subsidy reduction for MIChild. the market. Last year, there were PURPOSE 2014 14 plans; this Ⅲ Blue Cross began paying about year there are 16 $100 million annually in state and and there is local taxes that it previously was much more exempt from. Blue Cross last year price competi- paid $28.6 million in federal tion this year.” income taxes. “This year Ⅲ Roy Blue Cross began paying other companies PASSION millions of dollars annually into the reduced their prices. We increased Michigan Health Endowment Fund prices 6 percent to 9 percent” and over an 18-year period until $1.56 billion has been reached. Critics Blue Cross still garnered a lion’s said the negotiated contributions share of the insurance business, were too low as they said the value Roy said. of Blue Cross could be more than As a mutual, Blue Cross also is $2.5 billion. In 2014, Blue Cross allowed to sell a number of other in- paid $100 million and is expected surance products that it can pack- PEOPLE this year to pay $50 million. age, or bundle, with its health, dental and vision plans. Specialty 2016 insurance policies include short- Ⅲ Blue Cross will be allowed to and long-term disability, accident, stop subsidizing Medigap coverage critical illness and life insurance. for seniors. Each year, Blue Cross Last year, Blue Cross signed co- pays out about $180 million. branding deals between its sub- However, those dollars come sidiary LifeSecure Insurance Co. and mostly from taxes on self- POWER insurance business paid by Dearborn National Life Insurance Co. companies that do business with In 2011, Blue Cross also pur- March 19, 2015 Blue Cross and individual policies. chased a third share of Minneapo- April 16, 2015 From 2017 to 2021, the lis-based Bloom Health, along with May 21, 2015 endowment fund will subsidize Anthem and Health Care Service Corp., June 25, 2015 Medigap premiums, but only at two other Blue Cross Blue Shield As- $24 million per year, for a total of sociation-affiliated companies. www.michronicle.com about $120 million. Blue Cross also invested in Amer- 20150309-NEWS--0036-NAT-CCI-CD_-- 3/6/2015 4:55 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS March 9, 2015 Cobo: 2 conferences give Detroit a chance to pitch to students ■ From Page 3 dents considering a career in fi- said Robert Forsythe, dean of the a Saturday, they organized bus year commitment by Shell to have Each category is split into inter- nancial management. business school at WSU. tours of downtown and Midtown the eco-marathon in Detroit after six nal combustion engines and elec- The second will bring about 1,000 The schedule includes several that begin after the conference ends straight years in Houston. For the tric mobility, which can mean ei- students to town April 10-12 for the panel discussions, keynote address- Friday afternoon. event, Shell paid to have a half-mile ther hydrogen fuel cells or annual Shell Eco-Marathon, where es, breakout sessions and the an- “I haven’t been here that long,” of road surface repaved near Cobo. lithium-ion batteries. teams will compete on a 0.9-mile nouncement of which of the approx- said Forsythe, “Three years ago, I attended the Over several days, teams can road circuit around Cobo to see who imately 300 colleges that have who was named Shell Eco-Marathon in Houston, make as many attempts as they can deliver the best gas mileage in student-run investment funds did business school and I immediately knew we needed want at seeing how far they can go their experimental vehicles. the best job of managing money in dean last June, this event in our city and state,” on a liter of fuel. the past year. “and I’m already said Bud Denker, a senior vice pres- And that can be far, indeed. Registration closes Sunday. Fees sick of hearing ident at Penske Corp. The champion team the past two Engage symposium are $200 for students and $400 for the national me- Glenn Stevens, vice president of years, from the Universite Laval in The investment symposium is faculty and business professionals, dia talk about MichAuto and strategic development Quebec, will be back to defend its ti- hosted by Wayne State University and who can earn continuing-education how bad things for the Detroit Regional Chamber, said, tle and try to improve on the record Mainstay Capital Management LLC of credits by attending. are here. Hope- “It’s just absolutely perfect that you it set in 2013 of 3,587 mpg. fully, the confer- Grand Blanc in association with the Registration is available by going Forsythe have teams of students from around Two students who will take part United Nations Global Compact. to engage.wayne.edu and clicking ence and the bus the world who are designing, build- in the challenge posted comments on For the past 14 years, the event on the “registration” button. tours will convince some of these ing and testing vehicles coming to the Eco-Marathon website after had been in Dayton, Ohio, and was Forsythe said he hopes this will students to come back here and take the auto capital of the world. making preliminary trips to Detroit. jobs.” hosted by the University of Dayton. become an annual event in Detroit. “But this could not have hap- “When Shell first announced that David Kudla, CEO and chief invest- “We will have discussions soon af- pened without Roger Penske’s (the eco-marathon) was going to De- ment officer at Mainstay Capital ter the event about our future 3,000 miles to the gallon team. It would not have happened troit, I was apprehensive. But it’s and the event’s executive director, plans,” he said. without their involvement.” impressive how much revitaliza- Royal Dutch Shell plc hosts three approached WSU officials last year CNBC will broadcast live through- Of the more than 1,000 students tion is taking place in downtown to see whether they would host. out the event. Steve Liesman, the eco-marathons each year, one of expected to participate — all with a Detroit,” wrote Bob Nelsen of Mater Speakers will include Dennis network’s senior economics re- them in Asia and one in Europe. passion for autos — Denker said: Dei High School in Evansville, Ind. Lockhart, president and CEO of the porter, will report live throughout This year’s Asian event was Feb. 26- “What a great opportunity for our “I was skeptical about Shell host- Atlanta branch of the U.S. Federal the day March 26. The network’s March 1 in Manila, Philippines, and local companies and universities to ing an event in what has recently Reserve Bank; Fred Tomczyk, presi- “Fast Money Halftime Report,” the European event will be May 21- attract and recruit talent while also been described as a problematic city. dent and CEO of TD Ameritrade; hosted by Scott Wapner, will broad- 24 in Rotterdam, Netherlands. showcasing our city to those attend- But our visit, and the hospitality that Robert Reynolds, president and cast live from the symposium from The ninth American challenge, ing from around the world.” was given to the advisory committee, CEO of Putnam Investments; Jerry noon to 1 p.m. March 27. and the first in Detroit, will include Student teams compete in two made a believer out of me,” wrote Webman, chief economist at Oppen- The event has reserved a block of about 140 teams from 100 high categories. The prototype class fo- Ricky Lewis of James B. Dudley High heimerFunds Inc.; and Mellody Hob- rooms at the Westin Book Cadillac. schools and colleges, including en- cuses on maximum efficiency with School in Greensboro, N.C. son, president of Ariel Investments. Forsythe said that when organiz- trants from Canada, Brazil, passenger comfort at a minimum; Tom Henderson: (313) 446-0337, “The list of speakers is a ‘who’s ers realized many of the attendees Guatemala and Mexico. the urban class encourages more [email protected]. Twitter: who’ of the investment industry,” aren’t leaving town until March 28, This is the first year of a three- practical considerations. @tomhenderson2 Roush: Theme parks promise to be a thrill ride – in a good way ■ From Page 3 lizes all of the company’s core com- for the growing market of theme Roush CleanTech LLC subsidiary. Triad still bids on projects but petencies and capabilities,” said parks. The leisure industry, which Again, details on the client couldn’t won’t do so at the behest of its oth- Christopher Ableson, senior man- includes theme parks, is the sec- Where the car is be disclosed for this report. er divisions, Bjerke said. ager of sales, marketing and busi- ond-largest jobs creator in the U.S., “ Propane is a cheaper alternative “That business requires a very ness development at Roush Enter- according to the Themed Entertain- evolutionary with to diesel, usually lower than $2 per disciplined team; it’s much more tainment. “We were very wary of a ment Association. gallon. technical than people think,” cyclical segment when we got into The top 10 theme park groups similarities between The project also puts to work Bjerke said. “While we haven’t been this business, but the theme parks worldwide also saw attendance of Roush’s fabrication, composite and successful lately (in winning new divisions of these companies are more than 377 million in 2013, up each model, ... theme other departments, Deneau said. business), we are interested as long generating tremendous revenue 5.4 percent from 2012, according to Other portions of the Ford as the projects make sense for us.” and there is no reason we won’t a report by the association. park rides are all trucks were strengthened to en- Rochester Hills-based Prefix see a reasonable growth rate for Abelson said theme park atten- dure the rigorous use of a theme Corp., which is also doing work on another 10 to 20 years.” dance, and spending, dropped snowflakes; each one park vehicle, said Deneau. the Google car as well as being the Disney and Universal declined to sharply following the terrorist at- is unique. For us, The trucks will be used 16 hours a sole coating supplier to the Dodge comment for this story on its use of tacks of Sept. 11, 2001, but picked day, seven days a week for 15 years, Viper, performed coatings work vendors for rides at its theme parks, back up again in 2008 — at just the this was jumping Deneau said. Because most rides for the Cars Land themed environ- per corporate policy. But the special- right time for an auto-centric firm. last three to four minutes, cycle ment at Disney California Adven- ty work has been a boon for Roush. “Growth has been huge, but be- into the pool with a more than a million times and are ture — a $1.1 billion expansion that cause of 9/11, it didn’t happen safety-critical, customer require- opened in 2012. Forging new tracks through 2008,” Abelson said. “At straight jacket on. ments are stricter than even the Prefix originally launched its that time, they were spending ” aerospace industry, Deneau said. entertainment business to capture Entering the theme park market when auto stopped (spending).” Chris Ableson, Roush Entertainment Every part, down to the bolts, is work during Michigan’s short pe- wasn’t easy, though it was seren- The opening of The Wizarding documented and reinforced to en- riod of offering tax incentives for dipitous for Roush. World of Harry Potter area in 2010 ry Potter theme parks, as the firm sure the highest safety require- the film industry. In 2007, as the auto industry be- at Universal Studios Florida’s Islands has non-disclosure agreements ments. Kim Zeile, CEO of Prefix, said gan to slow ahead of the Great Re- of Adventure changed the game for with its entertainment clients. “We have people in vehicles Prefix isn’t planning to expand cession and Roush executives theme park vendors, Abelson said. worldwide, every day,” Deneau more into the theme park busi- were tasked with diversifying the Universal contracted several ven- said. “But to do that, we have to ness, but it will continue to bid on business, a call came in from a sur- dors and used them again when it Engineering feats compete in a tough environment projects that fit within its normal prising source. Former automo- subsequently opened up a Harry Back inside Building 50B, Roush with intense requirements.” scope of operations. tive engineers now working in the Potter park in Osaka, Japan, and engineers are currently in the be- Dave Bjerke, president of Madi- Ableson said Roush’s entry into theme park business — who were another in Los Angeles scheduled ginning stages of a ride system pro- son Heights-based engineering firm the business has made its other di- familiar with Roush’s work in the to open next year. ject for an upcoming ride based on Triad Services Group Inc., said the visions better. performance racing parts market “What Universal did with the one of the highest grossing films of theme park industry is a “very com- “There was a lot of discussion af- — were looking for a lightweight Harry Potter theme parks was cre- all-time. (Specific details are confi- petitive, cost-driven business” that ter being in this business for a cou- seating system for a new ride. ate a fully-themed environment, dential.) But Michael Deneau, di- requires a disciplined team that can ple of years whether we should “We ended up developing a which clearly woke up Disney and rector of engineering for Roush En- be onerous for many companies. continue; there was an awful lot of ground-up seating module, but others,” Abelson said. “This al- tertainment, called the 192 modules Triad engineered and built the pain and struggle,” Ableson said. where the car is evolutionary with lowed us to look at each themed for the upcoming ride “revolution- ride systems for Disney and Univer- “What we’ve found is that the re- similarities between each model, park like a division of an auto com- ary” in the theme park business. sal from 1989 through 1998, includ- quirement of this segment, and in- this was completely new to us. pany where we’re seeing global Roush is also completing a vehi- ing the Great Movie Ride at Dis- dustry, have forced us to be better in Theme park rides are all snowflakes; platforms, where win a ride (con- cle project for a safari ride at a ney’s Hollywood Studios in everything we do; it’s taken many of each one is unique,” Ableson said. tract) in one park, we can leverage theme park in Florida. The project Orlando. The ride features a guided our capabilities to the next level.” “For us, this was jumping into the it in another park.” includes retrofitting 43 Ford F-650 vehicle that uses animatronics, ac- Dustin Walsh: (313) 446-6042, pool with a straight jacket on.” Abelson declined to say whether commercial trucks with its propane tors, special effects, and projections [email protected]. Twitter: But the pool of business is deep Roush performed work for the Har- conversion fuel systems from its to recreate scenes from 12 films. @dustinpwalsh 20150309-NEWS--0037-NAT-CCI-CD_-- 3/6/2015 4:58 PM Page 1

March 9, 2015 CRAIN’S DETROIT BUSINESS Page 37 Yamasaki: His creations ‘stood the test of time’ www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] While he’s best known as the lead ASSOCIATE PUBLISHER Marla Wise, (313) 446- architect of the original World 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Trade Center, destroyed in the ter- 0460 or [email protected] rorist attacks of Sept. 11, 2001, he MANAGING EDITOR Jennette Smith, (313) 446- amassed a large body of work both 1622 or [email protected] DIRECTOR, DIGITAL STRATEGY Nancy Hanus, inside and outside Michigan. Some (313) 446-1621 or [email protected] other notable non-local works in- MANAGING EDITOR/CUSTOM AND SPECIAL PROJECTS Daniel Duggan, (313) 446-0414 or cluded the Century Plaza complex in [email protected] Los Angeles, the Lambert-St. Louis Mu- SENIOR EDITOR/DESIGN Bob Allen, (313) 446- 0344 or [email protected] nicipal Air Terminal, the U.S. Consulate SENIOR EDITOR Gary Piatek, (313) 446-0357 or in Japan, the Federal Science Pavil- [email protected] WEB EDITOR Kristin Bull, (313) 446-1608 or ion at the Century 21 Exhibition in [email protected] Seattle and the Civil Air Terminal in RESEARCH AND DATA EDITOR Sonya Hill, (313) 446-0402 or [email protected] Dhahran, Saudi Arabia. WEB PRODUCER Norman Witte III, (313) 446- In addition, the legacy of his firm 6059, [email protected] EDITORIAL SUPPORT (313) 446-0419; YahNica continues to draw interest. A re-in- Crawford, (313) 446-0329 corporated design firm in Birming- NEWSROOM (313) 446-0329, FAX (313) 446- ham and New York City carries Ya- 1687 TIP LINE (313) 446-6766 masaki’s name, and Michigan is REPORTERS Jay Greene, senior reporter: Covers health care, working to curate an online collec- insurance, energy utilities and the environment. tion of his sketches and other items (313) 446-0325 or [email protected] Amy Haimerl, entrepreneurship editor: Covers that are held as part of the state’s entrepreneurship and city of Detroit. (313) 446- historical records. 0416 or [email protected] Chad Halcom: Covers litigation and the defense industry. (313) 446-6796 or [email protected] Tom Henderson: Covers banking, finance, COURTESY OF ETKIN LLC Design inspirations technology and biotechnology. (313) 446-0337 or Doug Etkin recalls watching Minoru Yamasaki sketch Brookfield Office Park in [email protected] Yamasaki is considered transi- Farmington Hills (above and left). Most famously, Yamasaki is known for adding Kirk Pinho: Covers real estate, higher education, Oakland and Macomb counties. (313) 446-0412 or tional in design and one of the significantly to the skyline of New York City – something missing from this model [email protected] leaders of the midcentury modern of Manhattan in the 1960s (below right) and today: the World Trade Center. Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, movement, but also a polarizing and transportation. (313) 446-1626 or architect, Harvey said. “The peo- [email protected] Dustin Walsh: Covers the business of law, auto ple who didn’t appreciate modern suppliers, manufacturing and steel. (313) 446- design said (his buildings) ‘looked 6042 or [email protected] Sherri Welch, senior reporter: Covers nonprofits, like a box,’ and others criticized services, retail and hospitality. (313) 446-1694 or his ‘ornamentation.’ ” [email protected] Yamasaki ADVERTISING talked about his SALES INQUIRIES (313) 446-6052; FAX (313) designs as being 393-0997 “human-focused SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. modernism,” Langan said Joss Kiely, ADVERTISING SALES Christine Galasso, Joe Miller, Sarah Stachowicz a doctoral candi- struction before Yamasaki’s death, CLASSIFIED SALES MANAGER Angela Schutte, date in architec- said Doug Etkin, principal of South- (313) 446-6051 CLASSIFIED SALES Lynn Calcaterra, (313) 446- tural history field-based developer Etkin LLC. 6086 and theory at the It was, Etkin said, to his knowl- AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo Taubman College edge the last building that “Yama” EVENTS MANAGER Kacey Anderson Kiely of Architecture CREATIVE SERVICES DIRECTOR Pierrette Dagg (as he refers to him) was involved SENIOR ART DIRECTOR Sylvia Kolaski and Urban Planning at the University of with. MARKETING COORDINATOR Ariel Black Michigan. He recalls watching the famed ar- SPECIAL PROJECTS COORDINATOR Keenan The famed architect traveled to Covington chitect sketch Brookfield out dur- SALES SUPPORT Suzanne Janik, YahNica Crawford Japan early in his career and came ing various meetings. His father, EDITORIAL ASSISTANT Nancy Powers back with the idea of “serenity and Alex Etkin, owner of A.J. Etkin Con- PRODUCTION MANAGER Wendy Kobylarz delight” that he wanted to trans- struction Co., and Yamasaki had be- PRODUCTION SUPERVISOR Andrew Spanos late to his designs, said Kiely, who come good friends, his son said. The COURTESY OF ARCHIVES OF MICHIGAN CUSTOMER SERVICE is doing his dissertation on Ya- two worked together first on Tem- MAIN NUMBER: Call (877) 824-9374 as Yamasaki Associates Inc. until the right down to posters on the wall or [email protected] masaki. ple Beth El in Bloomfield Hills and end of 2009, when it laid off its last and colored pencils,” he said. The Seattle-born architect was SUBSCRIPTIONS $59 one year, $98 two years. later on the Brookfield Office Park. employees amid lawsuits filed by When he learned Oakland County Out of state, $79 one year, $138 for two years. also influenced by his ventures The 1985 Crain’s story spoke of the the Michigan Department of Energy, La- had ordered the shredding of sensi- Outside U.S.A., add $48 per year to out-of-state into the Washington wilderness rate for surface mail. Call (313) 446-0450 or extensive marble, polished oak, dec- bor & Economic Growth and the state tive papers in the firm’s Troy offices (877) 824-9374. and by the Alaskan landscape he orative lighting, wood molding and Unemployment Insurance Agency. The to shield itself from liability, Harvey SINGLE COPIES: (877) 824-9374 grew to know well during the sum- trim and brass accents planned for lawsuits were over unpaid employ- contacted the county and was given REPRINTS: (212) 210-0750; mers he worked at salmon canner- the high-end buildings. or Alicia Samuel at [email protected] ee taxes and by contractors and con- just a day before the public auction TO FIND A DATE A STORY WAS PUBLISHED: ies there while attending the Uni- “The lobbies remain timeless, sultants claiming they were collec- to collect whatever he could. (313) 446-0406 or e-mail [email protected] versity of Washington, he said in his and the below-grade parking in- tively owed more than $2.5 million. Subsequently, the state archivist CRAIN’S DETROIT BUSINESS IS PUBLISHED BY book, A Life in Architecture. CRAIN COMMUNICATIONS INC. stalled in each building has ensured The firm’s CEO, Ted Ayoub, sub- said, Ayoub later passed other CHAIRMAN Keith E. Crain Yamasaki moved from New great tenant loyalty,” Etkin said. sequently sued the firm’s former items of historic significance on to PRESIDENT Rance Crain York to Detroit in 1949 to work for TREASURER Mary Kay Crain The buildings total 422,000 square principal Robert Szantner, who left be preserved. Smith Hinchman & Grylls Inc., Executive Vice President/Operations feet in three structures; the former after a falling-out in 2009, for fraud The state has 15,000 transparen- William A. Morrow now known as the SmithGroup Inc. Executive Vice President/Director of Strategic Compuware Corp. headquarters, now and allegedly leaving with the cies and slides of Yamisaki’s de- After a few years there, he broke Operations Chris Crain known as the Trott Financial Center, firm’s largest client, Harvey said. signs dating back to 1949, some orig- Executive Vice President/Director of Corporate off and formed his own firm, Mi- is the largest. inal drawings and some personal Operations KC Crain noru Yamasaki and Associates Inc. In December, Ayoub lost an ap- Vice President/Production & Manufacturing The buildings at Northwestern peal with the Michigan Court of Ap- effects like Yamasaki’s drawing Dave Kamis And his designs began rising up as Chief Financial Officer Highway and Middlebelt Road have peals in a case against Szantner compass, Harvey said. part of the Detroit landscape in the Thomas Stevens been in high demand since they and others. Harvey later met with some of the Chief Information Officer mid- to late 1950s, Kiely said. were constructed, with past clients principals of Yamasaki’s firm to take Anthony DiPonio Szantner is now operating a firm G.D. Crain Jr. Founder (1885-1973) Yamasaki used historic archi- including Cellular One and Exxon Mo- oral histories so he could get an idea known as Yamasaki Inc., an interna- Mrs. G.D. Crain Jr. Chairman (1911-1996) tectural references in his designs, bil Corp., he said. Today, they serve of how the office worked, since he tional planning, architecture, engi- EDITORIAL & BUSINESS OFFICES: like abstracted Gothic references as the headquarters for companies wasn’t able to make note of that dur- 1155 Gratiot Ave., Detroit MI 48207-2732; neering and project management (313) 446-6000 in the World Trade Center and ab- including Ramco-Gershenson Proper- ing the “dash-and-grab operation” to Cable address: TWX 248-221-5122 AUTNEW DET firm incorporated in December stracted Islamic references in the ties Trust and RouteOne LLC and boast preserve things from the office. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 2013, from offices in Birmingham is published weekly, except for a special issue the buildings on the WSU campus in 95 percent occupancy. Harvey is still waiting for some of third week of October, and no issue the fourth and New York City, according to Detroit, Kiely said. “The buildings that Yama and the principals to sign a waiver that week of December by Crain Communications Inc. corporation filings with the state of at 1155 Gratiot Ave., Detroit MI 48207-2732. “People were interested in that his team were involved in have cer- enables the state to use their oral ac- Periodicals postage paid at Detroit, MI and Michigan and a company website. additional mailing offices. POSTMASTER: Send ... and he used ... those historical tainly stood the test of time ... (and) counts. When Yamasaki’s firm address changes to CRAIN’S DETROIT BUSINESS, references as a selling point with have turned out to be very strong As for the tangible assets left at closed, it was “an open wound” for Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in corporate clients.” economic performers,” Etkin said. Yamasaki’s Troy office, Oakland the principals, he said. “They’re U.S.A. County seized the office for unpaid just very protective of his legacy.” Entire contents copyright 2015 by Crain taxes and held an auction in Communications Inc. All rights reserved. The making of Brookfield The Archives of Michigan plans Reproduction or use of editorial content in any The firm March, 2010, Harvey said. to launch a website on the Yamasa- manner without permission is strictly prohibited. The first building at Brookfield After Yamasaki’s death from “They sold everything from ki collection late this year or early Office Park was well under con- stomach cancer, his firm continued every computer on every station in 2016, Harvey said. 20150309-NEWS--0038-NAT-CCI-CD_-- 3/6/2015 4:59 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS March 9, 2015 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 28-MARCH 6

Davidson NEW LOOK FOR DOWNTOWN DETROIT? Famed SEAL Foundation hires to speak for program officer he Troy-based William Davidson T Foundation hired Darin McKeever, a deputy di- soldiers fund rector from the Bill & Melin- da Gates Foundation, as its obert O’Neill, the for- The book also is dedicat- BILL SHEA/CDB first chief program and mer U.S. Navy SEAL ed to Molnar, who died on Motor City Comic Con annually strategy officer. At the Seat- COURTESY OF SHOP ARCHITECTS LLC R purported to have Dec. 28, 2013, at age 61 while attracts creatively dressed tle-based Gates Foundation, What might the 2-acre former Hudson’s site on Woodward fans to Novi’s Suburban Avenue look like once developed? According to this rendering, killed Osama Bin Laden in riding his he most recently led a team Collection Showplace. Dan Gilbert and Rock Ventures are going for something 2011, will be the keynote bike on va- to improve the effectiveness futuristic. The site is being designed by Detroit-based speaker at the Fallen and cation in more focused on ‘Walking of philanthropy and chari- Hamilton Anderson Associates and New York City-based Shop Wounded Soldiers Fund’s 10th California. Dead’ than in some past ties worldwide. Architects PC. Rock Ventures hopes to announce final design annual anniversary gala “He was shows,” Goldman said of and details this year, Gilbert said in a statement. and fundraiser at the MGM beloved by the celebrity focus. “It’s Grand Detroit next month. many be- regularly the top-rated en- ON THE MOVE Detroit-based DTE Ener- lar Asian-inspired eatery, The Bloomfield Hills- fore he trag- tertainment show on televi- The American Red Cross gy Co. and Vectorform, a opened for business in the based nonprofit’s event, ically died sion. There are some con- Michigan Region named Kim- Royal Oak-based technolo- McNamara Terminal of De- which raises funds for in- of an un- ventions hosted in other Molnar berly Burton as CEO of its con- gy company, plan to form a troit Metropolitan Airport. jured Michigan soldiers and known cities that are entirely de- solidated Michigan opera- joint venture, Powerley, to their families, is scheduled heart disease,” said Kahn, voted to the show, so it has tions. The new position market and sell an energy for 5 p.m. April 25. an author of several books a very supportive audience oversees employees and of- tracking and software de- OTHER NEWS The gala will include din- and local Fox 2 News med- and we decided to capitalize fices that had operated as vice to other utilities. Republican U.S. Rep. ner, open bar, entertain- ical contributor who also is on that. It’s also regularly part of three separate divi- Cranbrook General Un- Candice Miller said she will ment, a silent auction and known as “America’s Holis- number one in the 18-49 de- sions. Burton, a consultant derwriters of Bingham not seek re-election to presentations by wounded tic Heart Doctor,” a name mographic, which is also for the past year, succeeds Farms will merge with Michigan’s 10th District Michigan soldiers and their coined by Reader’s Digest. the audience we try for.” Tim Yenrick, CEO of American Bloomfield Hills Insurance seat in 2016 when her sev- families. “An autopsy showed his Past conventions have Red Cross Northwest Ohio Re- Agency on May 1 and be- enth term ends at the end Tickets are $150 and can arteries were 99 percent featured series fan favorite gion and interim regional ex- come Cranbrook Bloomfield of next year. be bought at fwsf.org. Spon- blocked,” said Kahn, clini- Norman Reedus (or Daryl ecutive of the Michigan re- Hills Insurance Agency. The Paul Howard, a co-own- sorships are also available, cal professor of medicine at Dixon), and Wilson as a me- gion since October. new agency will employ 20 er of nightclub and restau- starting at $1,500. Wayne State University School dia guest, but Goldman said Scott Eathorne, M.D., people in Bloomfield Hills. rant Cliff Bell’s and the Nearly 95 percent of do- of Medicine and director of this is the largest contin- was promoted from interim Exxodus Pictures LLC, Bronx Bar in Midtown, said nations are spent on sol- cardiac wellness at Michi- gent of the show’s actors CEO to CEO of Detroit-based based in the Madison he plans to open a new diers and their families, the gan Healthcare Professionals yet at a single Novi conven- Together Health Network. Building in downtown De- downtown Detroit bar and organization said. Since its PC. tion. Eathorne, a family and troit, was awarded $1.3 mil- restaurant this summer in 2006 founding, the Fallen The book is on sale now Yeun, 31, grew up in Troy sports medicine physician, lion in incentives to shoot the building at 25-35 E. and Wounded Soldiers at Amazon.com in a digital and his father, Je Yeun, formerly was president of three feature-length films Grand River Ave. that used Fund has raised more than Kindle version for 99 cents. owns Golden Beauty Supply Partners in Care, a physician in Michigan. to house the Biegas Gallery. $3 million, including more Inc. in Detroit. Other media hospital organization repre- Georgia-based alu- Howard declined to dis- than $535,000 in 2014. ‘Walking Dead’ could fuel guests with local ties this senting the partnership be- minum giant Novelis Inc. close the name of the bar. O’Neill, a highly decorat- year include Dean Cain, or tween The Physician Alliance and German supplier Ndamukong Suh can test ed sailor who left the Navy local Comic Con record Superman of the 1990s TV se- and St. John Providence Health Henkel AG & Co. signed an the open market when Na- in 2012, also reportedly was ries “Lois and Clark” who The dead could bring Sub- System, an Ascension Health agreement to develop ad- tional Football League free involved in the commando was born in Mt. Clemens, subsidiary. vanced bonding technolo- agency begins this week af- operations that became the urban Collection Showplace to and Robert Englund, or Fred- life in record numbers this The Engineering Society gies for aluminum-inten- ter the Detroit Lions decided movies “Captain Phillips” dy Krueger in the “Night- of Detroit named Robert sive vehicles. The first not to use the franchise tag and “Lone Survivor.” He is May, when Motor City Comic mare on Elm Street” horror Con summons to Novi its Magee as executive vice product, a pretreatment on the star defensive tackle. employed now as a public movie series, who attended president. He had been that helps paint stick to Temple Israel in West speaker. largest turnout yet of stars Cranbrook Theatre School in from AMC ratings heavy- named interim last August, aluminum, will be pro- Bloomfield Township re- Bloomfield Hills. replacing Darlene Trudell, duced at Henkel Adhesive ceived a $10 million endow- weight “The Walking More guest appearance WSU medical prof pens Dead.” who resigned from the Technologies in Warren, ment from a Birmingham information is available Southfield-based organiza- Automotive News reported. couple, Sarah and Harold Michael Goldman, owner MotorCityComicCon.com. heart health e-book of Farmington Hills-based tion after 12 years to pursue The Fountain Bistro Gottlieb, to establish a can- Joel Kahn, M.D., an “inter- Motor City Comics and pro- other opportunities. restaurant at Campus Mar- torial chair in memory of preventional” cardiologist, moter of the convention Tim Hortons sells Red Stephen Henderson, the tius Park postponed its their son, Stephen, who as he calls now in its 26th year, said he Pulitzer Prize-winning edi- planned closure this month died in 2006, AP reported. himself, has expects attendance to top Wings doughnut this week torial page editor of the De- for renovations, instead The endowment will sup- written a 45,000 and could even ap- The “I Love the Red troit Free Press, was named opting to close for about a port the music program. new e-book, proach 50,000 at the event Wings” doughnut is back. host of WDET-101.9 FM’s month between mid-Sep- The Southeast Michigan Dead Execs May 13-15. That would Sporting an edible Detroit “Detroit Today” talk show. tember and mid-October. Purchasing Managers Index Don’t Get crush last year’s record of Red Wings logo and red and Henderson, who will re- The City of Sterling bounced back to 56 in Feb- Bonuses: just over 40,000. white sprinkles, the fried main with the newspaper, Heights Police & Fire Retire- ruary from a sudden drop to The Ulti- That’s mainly because dough confectionaries went will begin hosting the pub- ment System sued IBM Corp. 50 in January. The three- mate Guide Southeast Michigan would on sale Friday at all Tim Hor- lic radio show March 16. in federal court, alleging month PMI average is 56.7, to Survive be at its best equipped to tons Cafe & Bake Shops in the company misled in- with a value above 50 sug- Kahn Your Career cope with a zombie apoca- Michigan to benefit the De- OMPANY NEWS vestors about the value of gesting economic growth. With a Healthy Heart, lypse that weekend, by troit Red Wings Foundation. C its microchip manufactur- which includes a chapter on hosting six cast members At $1.25 retail, they will Chassix Inc., the South- ing business before agree- Imre Molnar, former provost from the TV series. be sold through March 15. field-based auto parts making to sell it at a loss, OBITUARIES of the College for Creative Actors Steven Yeun and This is the sixth year for er owned by billionaire De- Bloomberg reported. John L. Cullen, a retired Studies in Detroit. Alanna Masterson — or Glenn the doughnuts, and in that troit Pistons owner Tom The Downtown Boxing commercial construction The irreverently named and Tara to devotees of the time sales have raised more Gores’ Platinum Equity LLC, Gym Youth Program, a Detroit contractor’s representative book has a serious point show — will join recently than $145,000. This year’s said its bondholders agreed nonprofit focused on youth (the JL Cullen Co.), died Feb. about the importance of departed regulars Chad goal is $80,000, the team to refrain for a month from development, won a $34,000 26. He was 89. heart health. Up to 90 per- Coleman, Emily Kinney, said in a statement Friday. pursuing a default after the grant from the West Bloom- Jeffrey Surnow, founder cent of the 1 million heart Lawrence Gilliard Jr. and Tim Hortons — named company missed an interest field Township-based Dres- and owner of Birmingham- attack deaths per year can Scott Wilson — or Tyreese, for the late hockey player payment, Bloomberg News ner Foundation to hire dri- based real estate firm be prevented by a number Beth, Bob and Hershel, re- Tim Horton, who co-founded reported. Chassix’s 30-day vers for vans to carry Surnow Co., died March 1 of heart-healthy strategies spectively — at Motor City the chain in 1964 — is the grace period on the missed participants to and from the from injuries sustained in outlined in the book, Kahn Comic Con. Wings’ official coffee sup- payment of about $17 mil- after-school program. a bicycle crash in Hawaii. told Crain’s. “This year, we’re a little plier at Joe Louis Arena. lion ended last week. P.F. Chang’s, the popu- He was 63. DBpageAD_DBpageAD.qxd 2/6/2015 3:15 PM Page 1 DBpageAD_DBpageAD.qxd 1/29/2015 4:00 PM Page 1

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