DMC Goes It Alone in Nurses'pay Suit

20150803-NEWS--0001-NAT-CCI-CD_-- 7/31/2015 6:22 PM Page 1

Readers first for 30 Years Photographer Something brings hospital substantial: spaces healing Tubby’s buys CRAIN’S imagery, Just Baked PAGE 3 cupcakes, DETROIT BUSINESS PAGE 6 AUGUST 3-9, 2015 DMC goes it alone in nurses’pay suit September date set for class action on hospital wage collusion

By Chad Halcom research practices. [email protected] A class of more than 20,000 registered nurses al- Greektown by day – but on weekends, A federal lawsuit that goes to trial next month leges eight hospital systems in Southeast Michigan a pedestrian plaza. could have eight-figure stakes for Detroit Medical Cen- colluded to keep pay scales for acute care hospital ter — if the hospital system continues to contest alle- nurses artificially lower than market forces would LARRY PEPLIN gations that it colluded with other hospitals to sup- dictate, between December 2002 and late 2006. press wages among more than 20,000 local nurses. Some 11,581 submitted claims to divide the previ- The hospital is the sole remaining defendant in a ous settlement funds — about $31.5 million after de- 2006 class-action lawsuit before Chief U.S. District ducting various attorney fees, incentive awards, costs Judge Gerald Rosen, since co-defendants Beaumont to send formal notices and other expenses. Goal for Greektown: Health of Troy, Henry Ford Health System of Detroit, The DMC tried and failed to get the class action Livonia-based Trinity Health and four others have set- decertified earlier this year at the 6th U.S. Circuit Court tled for more than a combined $48 million. of Appeals, and lost a motion in April to exclude ex- And while the allegations against the local health pert testimony of Orley Ashenfelter, a Princeton Uni- versity No cars,more traffic care providers may be unique, attorneys said wage economics professor who has pegged total collusion is gaining some traction as a basis for civil damages to the nurse class at more than $595 mil- court claims — and that employers should take the lion. Summer series of outdoor dining, entertainment could expand opportunity to review their own That sum may be a long shot in court, since it wage-setting, hiring and market By Kirk Pinho Gibbs, managing principal of SEE NURSES, PAGE 19 [email protected] Birmingham-based Gibbs Planning ay no mind to that man Group Inc. swallowing fire on Monroe To create the Greektown at P Street. Sundown program, the Greektown He, outdoor dining and Preservation Society — which other live entertainment options spearheaded the summer event might become a regular fixture on series — had to get city permits to the main city blocks through close off Monroe from Beaubien Greektown. Street to St. Antoine Street from car Now that a long-discussed plan traffic during the evening hours (5 to create a temporary pedestrian p.m. to 2 a.m. Fridays, Saturdays More plaza on the weekends through and Sundays) and cobble together Labor Day has officially kicked off, funding. than urban planning and other experts The funding will total between 20,000 say that Greektown at Sundown $100,000 and $120,000 and come organizers have identified one of from a variety of sources, said Tasso nurses claim the practices that make for good Teftsis, president of the preserva- that eight urban environments. tion society. hospital Good dining options. If the program is successful in the Entertainment. Pedestrian-friendly coming month, Greektown visitors systems in streets. These are some of the things can expect Teftsis and the roughly 25 Southeast that happen when you regularly shut business owners in the society to down vehicle traffic and add start working on an encore for Michigan colluded programming to a main Greektown at Sundown, perhaps to keep pay scales thoroughfare of a commercial making it an annual event series and district. expanding it west to Brush Street. artificially lower “A brilliant move that will Greektown is generally bounded by significantly increase the number of visitors and diners,” said Robert SEE GREEKTOWN, PAGE 20

© Entire contents copyright 2015 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 31 No 31 $2 a copy. $59 a year. NEWSPAPER 20150803-NEWS--0002-NAT-CCI-CD_-- 7/31/2015 2:51 PM Page 1

2 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015

on the economy,” according to a Ⅲ Michigan State University re- MICHIGAN summary on the survey results. searcher Robin Buell received $5.1 INSIDE “The reason for this apprehen- million from the National Science THIS ISSUE siveness appears to be linked to the Foundation to study the genetic BANKRUPTCIES ...... 9 CALENDAR ...... 16 significant challenges experienced structure of the mint family, The As- CLASSIFIED ADS ...... 17 with attracting new employees,” ac- sociated Press reported. And it’s DEALS & DETAILS ...... 16 cording to the report. The report quite a family. Mints include basil, OPINION ...... 8 BRIEFS further noted that, for the first time, oregano, rosemary, sage, savory, OTHER VOICES ...... 8 a plurality of respondents said ac- thyme, spearmint, peppermint and PEOPLE ...... 16 Meijer family blackmail try to comment, calling this a private cess to qualified workers is either such herbal tea or medicine ingre- RUMBLINGS ...... 22 ends badly for shifty taker family matter. Which doesn’t mean “poor” or “only fair,” the worst find- dients as bee balm, bergamot, hys- WEEK ON THE WEB ...... 22 the Meijers didn’t have a response. ing ever recorded. sop, lavender and skullcap. Perhaps By now, James Casbolt of St Ives And the response, from the fami- Sixty-six percent said they expect the research will lead to a new name in Cornwall, England, probably rely who gave us the phrase “Why pay higher sales in the next six months, for skullcap. COMPANY INDEX: alizes that, to the rest of us, his more?” up from 61 percent in November Ⅲ Grand Rapids-based restau- SEE PAGE 21 name in the Social Register is the Why pay at all? 2014, and is the highest percentage rant management company Mer- less formal “Haley Meijer’s ex-hus- And so James Casbolt recently was ever in the survey. itage Hospitality Group Inc. acquired band.” And, yes, that Meijer. Name- sentenced to 12 years in jail. Another 15 Wendy’s fast food restaurants in an indoor-outdoor farmers market, ly, the daughter of Hank Meijer, case of the retailer wagging the dog. MICH-CELLANEOUS the Toledo area, MiBiz reported. state officials announced this week, CEO of the eponymous Walker- The acquisitions will mean about MLive.com reported. The money will based retailer. Survey: Biz owners balance Ⅲ Treetops Resort east of Gaylord $19 million in additional annual come from the Michigan Department Haley and James married in 2011 optimism,hiring concerns said it has emerged from Chapter 11 revenue to Meritage. of Environmental Quality’s Brownfield and split up in 2013. The following bankruptcy protection after a vol- Ⅲ North Carolina-based Tanger Grant program. The downtown tale, as reported by MLive.com, sort Michigan business owners are up- untarily reorganization, The Associ- Factory Outlet Centers Inc. officially farmers market, currently located of gives off a couple of clues why. beat about their near-term prospects ated Press reported. The golf and ski opened the approximately $79 mil- about four blocks to the south, will After the breakup, Casbolt went although increasingly worried about resort said the process gave its own- lion Tanger Outlets Grand Rapids in move to its new permanent outdoor online and posted pornographic finding qualified workers, MiBiz re- ers time to shed legacy debt and po- suburban Byron Center, the Grand home in time to kick off the 2016 sea- photos he took of Meijer while they ported, citing a semiannual survey of sition itself financially for future im- Rapids Business Journal reported. son. were married. Later, he said he would nearly 900 owners of small and mid- provements. The resort remained Ⅲ The manager of the Shoreline Ⅲ Ludington city officials re- remove them — provided he got sized businesses. open during the reorganization. Federal Credit Union in Norton Shores, voked a license under which Claire $3.1 million. Either that would con- The respondents continue to have Ⅲ The Flint-based Charles Stewart next to Muskegon, has admitted Whitcomb was allowed to sell stitute blackmail or one of the most strong expectations for sales and Mott Foundation gave $4 million to embezzling $1.9 million between books door to door, the Ludington expensive cases of Web hosting on earnings growth in the next six the Genesee Area Focus Fund to help 2001 and this year, The Muskegon Daily News reported. Residents ac- record. months, and some survey results children succeed in and beyond the Chronicle reported. Kathryn Sue cused Whitcomb of knocking on Among his subsequent threats, were the best ever recorded. But the classroom, The Associated Press re- Simmerman, who was fired in Feb- people’s windows, coming into their according to the Daily Mail news- Michigan Future Business Index, ported. The grants included $3.1 ruary, was accused of taking cash garages, name-dropping teachers paper: “If my terms are not met, I conducted by Accident Fund Insurance million for YouthQuest, an after- from the vault of the credit union and neighbors, and seeking addi- can tickle the public interest for Co. and the Michigan Business Network, school program, and $825,000 for and hiding it in her purse. tional information about people in years until the Meijers are so infa- also found concerns that growth the Summer Youth Initiative, which Ⅲ The Saginaw Downtown Develop- the community. One woman con- mous in the world they will not be soon may slow. Executives also cited places young people in jobs, and ment Authority will receive a $1 mil- tacted the city after she said Whit- able to walk down the streets safely.” a shortage of qualified workers that TeenQuest, a youth leadership and lion state grant to help develop a comb grabbed her arm when she A Meijer Inc. spokesman declined “may be creating a drag on hiring and pre-employment training program. group of downtown properties into tried to walk away. Ⅲ

GET IN ON THE CONVERSATION

$1 Billion

THE BUSINESS OF BEING NONPROFIT WITH SHERRI WELCH

Sherri covers nonproﬁ ts, services, retail and hospitality.

Keep up with Sherri at crainsdetroit.com/blogs TWEET @SHERRIWELCH 20150803-NEWS--0003-NAT-CCI-CD_-- 7/31/2015 6:24 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 3

BY THE NUMBERS: THE MICHIGAN ECONOMY How state forest industry grew anew By Dustin Walsh [email protected]

t one time, Michigan’s forests were as synonymous with industry as the Great Lakes and the automobile. Between the 1860s and 1900, the state was the largest producer of lumber in the Acountry. But by the late 1800s, the forests were nearly decimated by overharvesting from nearly 2,000 sawmills. The barren lands, now unproductive to foresters, became state-owned through tax rever- sion, said David Price, acting supervisor of forest planning and operations at the Michigan Department of Natural Resources. Under the nurturing of the U.S. Forest Service in the early 1900s, the forests were restored, Price said. Large sawmills, such as those owned by Louisiana-Pacific Corp., returned to Michigan. Price said the sustainable management now benefits the state through not only the timber industry COURTESY MONTE NAGLER FINE ART LLC but also the booming forest recreation industry (camping, hiking, hunting). Beaumont Hospital-Wayne purchased some of Monte Nagler’s photos and put Michigan’s forests and their trees now support more than 77,000 jobs in the state and contribute them on the ceiling so patients lying down for an MRI would have something to look at. $16.3 billion to the economy, while roughly only 30 percent is harvested annually. Ⅲ Monte Nagler’s camera captures serene scenes of outdoors that make patients feel better inside Picture this: The art of healing

By Jay Greene was shooting would be suitable for [email protected] hospitals,” he said. “It really started Engineer and businessman- to excite me. I thought if seeing a turned-fine-art photographer Monte nice, calming photograph in the Nagler spent 20 years in the automo- health care environment could help tive industry and later in the muffler relax people, get them through a business before finding his niche procedure, MRI, CAT scan, radiation taking photographs of outdoor na- a little easier, that is a terrific feeling.” ture scenes that promote healing. Over the past 20 years, health In 1983, Nagler and his wife, care organizations have begun to Mickey, opened Monte Nagler Fine invest more into art, music, color Art LLC in Farmington Hills. As and lighting within their four walls Mickey Nagler to create “healing environments” says, “Our art for patients. Studies have found that gallery is our patients relax and recover more home.” quickly during inpatient stays or Heavily influ- during such diagnostic procedures enced by the late as MRIs or breast biopsies. Ansel Adams, whom he met From mufflers to and studied with photography Monte Nagler: in Yosemite Na- Nagler graduated from the Uni- Sees photography tional Park, Mon- versity of Michigan with an engineer- as therapy. te Nagler started ing degree in 1962 and an MBA in out taking pic- 1963, then went to work for Ford tures of Michigan environs in black Motor Co. By age 29, he had decided and white. to go into business for himself and But it wasn’t until he got an offer opened two Midas muffler business- in the late 1990s to shoot pictures es. for a Troy medical center owned by “The muffler business was ex- Royal Oak-based Beaumont Hospital hausting. Not motivating. I never that Nagler got into health care, liked it,” he said. where he said he fully developed his But Nagler already had become style of creating calming images in- interested in photography. In 1979, tended to heal. he won a major photo contest that The architectural firm employed by Beaumont “thought the imagery I SEE NAGLER, PAGE 21 NICOLE SHACKELFORD

MUST READS OF THE WEEK How suppliers shifted from billboards Maybe it should be Food Field Thirty years ago, Crain’s reported that It’s on the minds of Detroit Lions’ fans at the start billboards were the backbone of of every season: What new foods will they be automotive supplier advertising serving at home games? Well, for $17, you and a campaigns. Today, thanks to forces friend (OK, maybe just you) can ingest a beef such as social media and recession, pasty (left). Or how about the international that’s no longer the case, Page 4 fusion that is the Reuben egg roll (right)? Page 7 20150803-NEWS--0004,0005-NAT-CCI-CD_-- 7/31/2015 5:19 PM Page 1

4 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015

LOOKING BACK: A Crain’s Detroit Business story from Aug. 5, 1985, discussed the role of billboards used by auto suppliers to reach industry procurement executives. Billboards have remained, but their importance has been lessened as other marketing methods have evolved. More at crainsdetroit.com/30 Signs of the times: Suppliers rely less on roadsidemarketing

By Bill Shea Lamar has been in Detroit only since 1987, [email protected] when New York City-based rival Outfront Media Inc. EXPERIENCE THE DIFFERENCE merican roadside billboards trace their acquired billboard giant 3M National and had to sell EXPERIENCE GHD CPAS AND ADVISORS roots to the 19th century, and they began some of its metro Detroit holdings to satisfy anti- A to proliferate along streets and highways monopoly concerns from the U.S. Department of after Henry Ford’s assembly lines began churning Justice. out cars in the early 20th century. In the past, suppliers would lock in billboards Achieving success requires a team that stands out. The professionals at GHD have years of Most signs touted Model Ts, Mustangs and annually, but now the time spans are much shorter, experience helping our clients obtain success Monte Carlos to consumers, but by the 1960s, the Rickert said, some made more possible by the rise through innovative and customized services. automotive industry began to employ billboards to of digital billboards that rotate messaging for many Let our team help you reach your goals. reach Detroit’s manufacturing buyers, engineers companies. Contact us today! and executives who made decisions on which parts The peak billboard period is during the North Accounting and Assurance Services and raw materials to use. American International Auto Show, and auto industry Tax Planning and Preparation The billboards complemented other marketing messaging pops up along I-94 between Detroit Met- efforts, such as direct mail, trade show booths, ropolitan Airport and downtown. It also can be com- trade and news magazine ads, and radio spots. monly seen along I-75 between Detroit and The one-two punch of the recent recession and Auburn Hills. the rise of other forms of marketing — social The downturn media, email and online videos — put a dent in +,( the number of auto supply billboards along Rickert blamed the decline in supplier bill- '4%7 %(:-7367 metro Detroit’s major arteries. boards on the economy and the auto industry’s But that doesn’t mean such billboard adver- well-documented financial troubles. www.ghdcpa.com | 586-772-8100 tising isn’t out there. It’s just not what it once “I think a lot of it had to do with the turmoil was. in the last decade, but there were declines even before In its Aug. 5, 1985, issue, Crain’s Detroit Business pro- the 2008 market crash,” he said. “It’s picking up a little 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 filed the trend of billboards as the backbone of many bit again. There’s been a lot of M&A activity with suppli- supplier campaigns. ers.” The story quoted Richard Sharga, an account execu- Lamar is one of the nation’s largest billboard firms, tive with Philadelphia ad agency Lewis Gilman & Kynett with 144,000 advertising displays in 44 states, Canada Inc. who was handling advertising in Detroit for Bethle- and Puerto Rico and $1.3 billion in revenue last year. hem, Pa.-based Bethlehem Steel Corp. Detroit accounts for less than 1 percent of Lamar’s “Our market is design engineers, purchasing agents, displays, according to the company’s annual report. product engineers and management. We have focused Lamar has about 2,000 leased sign sites and another 189 primarily on Detroit because research shows three- owned sites in Michigan, mostly in metro Detroit. quarters of all buying influence we want to reach is Billboards targeted at automotive supplier buyers there,” Sharga said in the story. began to appear in the 1960s, said Tom Carroll, Outfront While those in the billboard industry say that re- Media’s Midwest and New England region vice presi- mains true, they acknowledge that auto supplier signs dent. have become a smaller part of their “Unless you were in the automotive business, you business. didn’t know who the company was or where they were “A lot has changed in that time, as from. They were trying to reach a very specialized audi- far as the automotive category,” said ence,” he said. Rich Rickert, vice president and gen- That hasn’t changed. eral manager of Baton Rouge, La.- “We still have several manufacturers who are trying based Lamar Advertising Co.’s Detroit to reach the car community and are doing so by using unit. billboards,” Carroll said. “They’re trying to get their In the early 2000s, automotive message in front of the people they’re trying to sell their Rich Rickert: was a third of Lamar’s metro Detroit products to. Supplier billboards business and 6 percent nationally, “They know the people who are making these buying have “dropped Rickert said. Last year, it was 13 per- decisions have to get to their headquarters.” dramatically.” cent nationally, he said. Some of those advertisers include BorgWarner Inc., “The majority of that business is Dana Corp., Siemens AG, the Steel Market Development In- local dealers and suppliers, and it always has been,” he stitute, Mitsubishi Heavy Industries Ltd. and the Falken Tire said. “The supplier side of it has dropped dramatically.” Corp. owned by Japan’s Sumitomo Rubber Industries Ltd. Automotive companies that advertise locally on Outfront Media was CBS Outdoor until it went public Lamar billboards include Tokyo-based Aisin Seiki Co. Ltd. and Korea’s Nexen Tire. SEE NEXT PAGE 20150803-NEWS--0004,0005-NAT-CCI-CD_-- 7/31/2015 2:49 PM Page 2

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 5

FROM PREVIOUS PAGE “In 1985, I could in 2014, and over the years it account on one quired some or all of the assets of Billboards promote long history of ads major billboard competitors such hand the media as 3M National, Viacom Outdoor, In- Love or loathe billboards, the Germans are to credit more than 50 square feet — originated in New York City options finity Outdoor and Gannett Outdoor. or blame. with circus posters in 1835, according to the association. Nationally, about 5 percent of its The history of billboards stems from German Fifteen years later, exterior advertising was first I could $1.3 billion in 2014 was automotive- blacksmith and printer Johannes Gutenberg’s invent- used on street railways, and the earliest recorded bill- choose related nationally. It did not have a ing movable type printing in 1450, and then German board leasing was in 1867, according to the OAAA. metro Detroit breakdown. actor and playwright Alois Senefelder perfecting li- American billboards in general exploded in popu- from. Detroit accounted for 3 percent thography in 1796 to aid his theater business. larity after a standardized billboard structure was es- Today, of the company’s 378,000 displays Initially, billboards were local in nature. tablished in 1900. last year, according to the compa- “Merchants painted signs or glued posters on walls “Confident that the same ad would fit billboards with ny’s annual report. and fences to notify the passers-by that their estab- from coast to coast, big advertisers like Palmolive, Kel- digital, Like Lamar, Outfront offers tradi- lishments up the road sold horse blankets, rheuma- logg and Coca-Cola began mass-producing billboards tional static billboards but also an tism pills and other useful items,” the Washington, as part of a national marketing effort,” the OAAA wrote. social, mobile and increasing number of digital bill- D.C.-based Outdoor Advertising Association of America It also noted that Michigan formed the first state bill electronic media, boards. Inc. wrote in a short industry history at oaaa.org. posters association in 1871. ... it is impossible Locally, the company has 30 digi- The large-format American poster — measuring Bill Shea tal bulletin boards, which show to rely on a single messages for eight seconds. It was media source.” 1,108 total bulletin boards in the can range from $700 to $5,000-plus Auburn Hills-based TI Automotive remains a key marketing tool for TI, Detroit market, and 1,152 posters, a month, according to industry esti- Ltd., a manufacturer of fuel tanks Buscemi said. Tim Smith, Skidmore Studios which are smaller signs. mates. A billboard in rural Kansas is and fluid lines that traces its corpo- Specifically, the company will air Companies buy space going to cost far less than rate origins to Model T supplier spots during the “Paul W. Smith mail, video streams, websites and on the boards for contracts one in downtown Los An- Harry Bundy and Co. in Detroit. Show” on Detroit’s WJR 760 AM outdoor advertising. that range from 12 to 52 geles. The company’s marketing strate- when he broadcasts for auto events, “The challenge for marketers weeks, Carroll said. The More tools gy to reach buyers today uses he said. today is that the number of adver- typical size is 14 feet by 48 YouTube videos, print ads, motor- “The people in the industry are tising options available has grown feet. While always governed sports sponsorships and an active generally listening to his show,” exponentially in the past 30 years,” He declined to discuss by budgets, suppliers have social media presence using Twitter Buscemi said. he said. “In 1985, I could count on pricing specifics, but did more ways to reach buyers and Facebook, he said. Tim Smith, president and CEO of one hand the media options I could say cost depends on the lo- and customers compared “It has become the easier, most Detroit-based ad firm Skidmore Stu- choose from. Today, with digital, so- cation, number of bill- Frank Buscemi: to 30 years ago. cost-effective way to reach a lot of dios, is a billboard advocate and has cial, mobile and electronic media boards and length of con- “More tools now “There are so many people at once,” Buscemi said of so- used them in client campaigns. He that all happen instantaneously, it is tract. available” than in more tools now available cial media marketing. also says that smart marketers find impossible to rely on a single media A digital billboard typi- 1985. than you had in 1985,” said TI doesn’t use billboards locally, the ways to reach audiences in mul- source.” Ⅲ cally costs about $1,000 a Frank Buscemi, global but does in China. tiple places with similar messages, Bill Shea: (313) 446-1626 week, and traditionally billboards communications director for Traditional radio advertising also using social media, email, direct Twitter: @Bill_Shea19

Keep your business heading in the right direction.

Treasury Management from FirstMerit Bank When John talked to FirstMerit Bank’s Treasury Management team, his goal was to increase his company’s working capital. Together, they came up with a plan to help John effectively manage receivables, control payments, and improve his company’s overall cash ﬂow. Now John has all the tools he needs to keep his business moving in the right direction — forward.

TO LEARN MORE, CONTACT: David Lochner, President, FirstMerit Michigan, at 248-228-1620 or david.lochner@ﬁrstmerit.com.

Follow the latest market trends ﬁrstmerit.com @ﬁrstmerit_mkt Member FDIC 2411_FM15 20150803-NEWS--0006-NAT-CCI-CD_-- 7/31/2015 5:42 PM Page 1

6 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 For dessert,Tubby’s buys Just Baked cupcakes

By Vickie Elmer Tubby’s move into cupcakes is part are talking to a coffee company Special to Crain’s Detroit Business of a growth strategy that may bring about a purchase or partnership. Sandwich chain Tubby’s hopes to other Michigan brands into its 60 They hope to expand the dessert tempt customers into ordering franchised restaurants and its cor- line to more offerings, and may offer dessert — and to do that, it has ac- porate stores, incorporated as bagels or breakfast sandwiches. quired most assets of the Just Baked Tubby’s Sub Shops Inc. Paganes called the addition of gourmet cupcake business. “We are in growth mode. We’re ex- cupcakes “icing on our cake” and Roseville-based Tubby’s today panding pretty aggressively,” said “easy sells — the fun part of the will announce it is acquiring certain CEO Robert Paganes. He and his business.” assets of Livonia-based Just Baked. partner Bill Kiryakoza said they also The minicakes could increase the average customer ticket from $12 now to $14 or $15, about a 20 !30!24.%23 9/5'%44/&/#53/. percent boost, COURTESY OF TUBBY’S said Kiryakoza, After a customer finishes eating one of its "5),$).'9/52"53).%33 who is executive sandwiches, Tubby’s hopes he or she will 7(),%7%&/#53/.&).!.#).')4 vice president leave room for a cupcake, too, now that it and a partner in has purchased Just Baked cupcakes. the company. Besides indi- “I am hopeful that the brand I ations took about six months. Robert Paganes: vidual sales, created and nurtured will flourish Food mergers and buyouts have “We are in growth Tubby’s hopes to under Tubby’s guidance. As you continued to be big news nationally mode.” use the new know, this is all new, and we have and in metro Detroit. H.J. Heinz Co. is product offerings not yet even talked about where or buying Kraft Foods in a stock and divi- to boost group food sales. For exam- what my role may be going forward, dend deal, and Campbell’s Soup Co. ac- ple, it could sell Monster party subs but I am committed to helping in quired Ferndale-based Garden Fresh in plus two dozen cupcakes to families any way needed to continue to grow June, in two recent large examples. celebrating birthdays or graduations. the brand,” Pam Turkin wrote in an Many food industry mergers are The Just Baked deal covers the email to Crain’s. made to improve distribution chan- trademarks, recipes and rights to Financial terms of the deal were nels, improve economies of scale — franchise future locations — as well not disclosed. or, in the case of a large company as installing them — in existing Kiryakoza and the Turkins met acquiring a smaller one, to acquire a Increase your cash flow and pursue Tubby’s locations. about three years ago at a network- “credible brand,” said Erik Gordon, bigger opportunities with our customized, Just Baked founders Todd and ing gathering arranged by a lawyer. a professor at the University of Michi- flexible lending solutions. Pam Turkin will continue to consult Starting in January, as Just Baked gan’s Ross School of Business. s!2&INANCING (248) 658-1100 with Tubby’s; details were unspeci- closed most of its stores, the two Often the acquiring company, s,INESOF#REDIT www.hitachibusinessfinance.com fied last week. companies discussed a sale. Negoti- like Tubby’s, wants to get into a new market segment, Gordon said. He suggested that local combinations — like Tubby’s and Just Baked — are less desirable, especially if the companies stress their Michigan con- nections. “It’s a very limiting position,” said Gordon. Mallory A. Field Paganes said Tubby’s wants to form partnerships with or purchase other Michigan-based companies. ® “It would be nice to have a bunch of In Your Corner. Michigan companies under one roof. Joining forces,” he said. Within several months, Tubby’s franchisees may bake cupcakes be- Varnum welcomes Mallory Field to the fi rm. fore or after they bake breads used ■ Corporate transactions and fi nancial matters. in the company’s grilled submarine sandwiches. ■ Business formations, mergers and acquisitions, Specific details on how the cup- trademark applications. cakes will be produced and dis- played will be determined in the ■ Regulatory compliance on environmental next few months, in partnership matters. with Tubby’s franchisees. Tubby’s sales last year hit $22 million, up from $19 million in 2013. Its growth is coming from new franchisees opening up to a dozen locations next year, Kiryakoza said. Among the locations are Riverview, Ypsilanti, Brighton, Port Huron and Flint. While Tubby’s is expanding, Just Baked scaled back in January, closing many of its stores after consumer tastes shifted. The company was established in 2008 and grew quickly to 17 locations in Southeast Michigan, offering more than 40 varieties of cupcakes. The most popular ones will be sold at Tubby’s locations, and some flavors may rotate, Tubby’s officials ■ ■ ■ ■ ■ Metro Detroit Grand Rapids Kalamazoo Grand Haven Lansing Contact Mallory Field at mafi [email protected] said. Ⅲ 20150803-NEWS--0007-NAT-CCI-CD_-- 7/31/2015 5:06 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 7 Supersized pasty is Lions’latest ‘wow’menu item

By Bill Shea for $6.50. sandwiches, and National Coney Is- [email protected] Good-for-you foods also are land, replacing American Coney Island. In the culinary arms race to lure being touted: Last month, the Lions In another change this season, sports fans into stadium concession launched a “Healthy Choice” pro- Ontario-based Tim Hortons has re- lines for unique food — and away gram in cooperation with St. Joseph placed Dunkin’ Donuts as the stadi- from their couches and high-def Mercy Health System. um’s coffee provider on game days, TVs — the Detroit Lions have hauled The program highlights on menus and that means the end of the ven- out the heavy artillery: meat pies. more than 65 healthy food options erable doughnut race during games. Chicago-based stadium conces- such as salmon sliders, and a high- In its place will be a contest in sionaire Levy Restaurants, which has protein vegetarian salad with mixed which two fans race in a human- handled Ford Field’s food for the team greens, kale, tofu and chickpeas. sized hamster ball. since the stadium opened in 2002, The revenue boost from such Last year, Bigalora Wood Fired Cuci- has created an enormous, made- foods is very small, and some ingre- na replaced the Big Boy stand in the from-scratch beef pasty. It will be sold dients are so costly that the offering second-level Huntington Club, fea- during Lions games this season be- is more akin to a loss leader, Nader turing wood-fired Neapolitan-style ginning with the Aug. 13 preseason said. pizzas. Also added in 2014 was the opener against the New York Jets. LARRY PEPLIN Levy and the Lions don’t disclose Breadstick Bar and Bistro on the sec- For $17, fans get a baked flaky Clockwise from top: New to the Ford financials, and they split revenue ond level. The Lions and Levy have pastry shell filled with ground beef, Field menu on Detroit Lions game days: from concession sales in an undis- added local food brands to the sta- potatoes, carrots, onions, celery and A massive beef pasty, buffalo chicken closed ratio. Detroit in 2013 was es- dium in recent years, including rutabaga. It’s served with a cup of waffle fries and Reuben eggrolls. timated to have generated $254 mil- Slow’s Bar BQ, Zingerman’s gelato and gravy, and comes in a pizza-style lion in total revenue, much of which deli food, Russell Street Deli, Corridor box with a knife and fork — and can lennial preferences. Nader said he ramen bar, Nader said. came from shared national rev- Sausage Co., Treat Dreams ice cream feed two or more, easily. takes notes on his smartphone “It’s a nice, fresh food with good, enue, ticket sales, etc. But the think- and Sugar House craft cocktails. It will be sold in the Bud Light whenever he sees culinary inspira- strong flavors, and it’s easy and fast ing is that “wow” foods help create Nader, 44, has been Ford Field’s Party Zone near Section 238/239. tion and ideas that can be repur- for us to make in a concession set- new fans. top chef for a decade. He begins his For more than a decade, stadiums posed for the stadium — or for non- ting,” he said. “It’s one more arrow in owners’ football Sundays at 3:30 a.m. and have bolstered staple hot dogs and sporting events and meetings that For $9, fans get a bowl with choice quivers to get fans off their recliners puts in 14 hours to oversee the food pizza offerings with increasingly up- Levy also handles at Ford Field, and of three ramen broths dispensed and into the ballpark/stadium/arena service for the 64,500-seat stadium. scale or unique concessions — Re- for the team’s food at its Allen Park from devices similar to coffee urns, to fill that empty seat,” said Allen He catches glimpses of the game member the poutine hot dogs at training facility. Nader said. The noodles will have Sanderson, a senior lecturer at the while moving from one food station Comerica Park two years ago? — as “Every season, we’re looking at vegetable and meat options. University of Chicago’s department of to the next. an initiative to keep fans coming to what food trends are happening He also expects the new Reuben economics who often writes and “Combined, I’ve probably seen games while creating incremental around the city and the country. ” egg rolls to be popular. Fans get two speaks about sports economics. one football game in 10 years,” he revenue. Trying to appeal to fans born be- — they’re egg roll crusts stuffed with New name-brand food inside said, chuckling. Ⅲ This season, new general conces- tween 1980 and 2000, known as mil- corned beef, cheese and sauerkraut, Ford Field this season includes La Bill Shea: (313) 446-1626 sion options at Lions games will in- lennials or Gen Y, led to the portable with a side of Russian dressing — Shish, offering shawarmas and falafel Twitter: @Bill_Shea19 clude a ramen noodle bar, fresh tor- tilla chips with red or green salsa, buffalo chicken or chili verde waffle fries, a Southwest chicken wrap and Korean BBQ. The club and suite level will see new foodie perks, too, including specialty bloody marys, craft cocktails, Bell’s Two Hearted beer cheese and Zingerman’s pimento cheese spread 30+ showrooms | endless possibilities with pretzels, and new desserts. The beef pasty, however, will be this year’s “wow” item, the stadium staff said. Levy’s executive chef at Ford Field, Joe Nader, expects to begin the season with 100 pasties prepared before the game, and could increase that number if fan demand is there. “Other people might see it and say, ‘Whoa, where can I get that?’ ” he said. Levy also expects demand to increase when the temperatures fall. de Grimme Gallery, suite 72 Rozmallin, suite 60 Decoroom, suite 37 “For preseason games, it’s still August and people are eating differ- ently than they will in November,” Nader said. Ideally, they’ll sell up to 300 pasties per game eventually, he said. Levy stressed that thought and care went into the pasty’s creation. “The filling has to be good, but the crust also has to be good,” Nader said “It’s not a Michigan pasty if it doesn’t have rutabaga.” The pasty is a traditional north- Henredon Interior Design Showroom, suite 122 Kravet, suite 105 Ann Sacks, suite 91 ern Michigan food that traces its roots to English miners who immi- FURNITURE | FABRICS | WALLCOVERING | ARTWORK | FLOORING | LIGHTING | TILE | KITCHENS | PLUMBING | ACCESSORIES grated to the state’s copper digs in the 19th century. Levy said the Ford Field kitchen, 1700 Stutz Drive | Troy, MI 48084 | 248.649.4772 | michigandesign.com which has 30 full-timers year-round M - F | 9AM - 5PM | Evenings and weekends by appointment | Open to the public and expands to 100 on game days, tries to source local ingredients when possible, which taps into mil- 20150803-NEWS--0008-NAT-CCI-CD_-- 7/31/2015 4:55 PM Page 1

8 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 CRAIN’S Education: Key to closing opportunity gap DETROIT BUSINESS hile many civic leaders, It is our duty as responsible corpo- Wbusinesses and entrepre- rate citizens to invest in our future neurs have positioned Detroit for talent pool through financial support the comeback we are now witness- of our city’s schools, allowing stu- OPINION ing, the next great frontier is edu- dents to experience our work space cation. and engaging our current talent to Investment of time, talent and reserve as role models and mentors for sources will likely be required if we the city’s children. Investment in are going to improve graduation OTHER VOICES: such areas as scholarship programs rates. The next generation of Detroi- Mark Davidoff and and the development of innovative ters will need the skills and knowl- Clark Durant approaches to curriculum will pro- We need more edge that can only be afforded vide greater access and drive innova- through quality education. The real Mark Davidoff (left) is the Michigan tion into the learning environment, measure of our success is the ability managing partner for Deloitte LLP, preparing students much earlier for to leverage the city’s tremendous op- which recently launched a five-year professional aspirations. portunity for economic growth into pilot project in collaboration with Existing public-private collabo- personal growth for our residents. Cornerstone Schools to better provide rations have already demonstrated tools to help biz The president of the Detroit Pub- professional skill-building and career change for students who otherwise lic Schools Foundation, Glenda awareness to students in grades five would have had little hope of gain- Price, recently said that her “chal- through 12. ing the skills needed for fulfilling report from Oakland University last week put a lenge for all of us is to ensure that Clark Durant is the founder of college experiences and successful damper on the widely held belief — locally, anyway we make the necessary investments Cornerstone Schools, an independent professional careers. These collabo- A — about Southeast Michigan’s burgeoning entrepre- in today’s Detroiters so that they be- charter school system in Detroit. rations have a common thread of neurial climate. come a part of the growth and are success: a leadership-driven effort As it turns out, the area ranks dead last among the coun- not left behind.” Jobs of the future in key industry started by a small number of cata- Based on a report by the Coali- segments will help drive Detroit for- lysts that opens a gateway for a try’s largest metro areas with 220 new entrepreneurs per tion for the Future of Detroit ward — such as in technology, fi- broad set of commitments and op- 100,000 people, compared to No. 1 Miami with 520. Schoolchildren, it is evident that the nancial services, health care and portunities across the business The numbers were pulled from educational status quo in Detroit is manufacturing. This opportunity community. We should not data collected by the entrepreneur- not acceptable. Less than 10 per- can only be realized if we work to It is an imperative. The corporate cent of K-8 students in Detroit are at create an environment of educa- community must help position our only focus on ship-focused Kauffman Founda- grade level in reading and math. tional equality, providing all stu- youth for future professional success tion. Of some comfort is that the College isn’t even a possibility for dents the opportunity to achieve and fulfilling personal growth. Ca- new business Ann Arbor area, where many entre- many students, and skilled-trades academic success and develop into reer-oriented programs can realize formation, preneurial efforts are focused, is education is also a challenge with- strong professional candidates for success through increased student not included. out the fundamentals in place. our growing job market. achievement, internship experi- but also on Aside from creating personal School programs that expose our ences, opportunities for experiential And metro Detroit’s numbers are hardship, these poor educational students to the world of opportuni- learning and engagement of profes- how to help not very different from Chicago, outcomes may fail to create the tal- ties in professional careers and en- sionals with students in new ap- those Washington, D.C., and Philadel- ent pool needed to restore Detroit able the building of the required pro- proaches. It’s time to get involved. phia, all of which show only 230 en- in the years to come. It’s estimated fessional skills such as analytical Greater corporate investment in businesses that 70 percent of new jobs in problem-solving, approaches to criti- our students gives them the tools trepreneurs per 100,000. Michigan will likely require postsec- cal thinking, written/oral communi- they need to help contribute mean- succeed. Still, it’s discouraging, but it does- ondary education or skilled-trades cations and team building are critical ingfully to their communities, in n’t mean nothing can be done. training by 2020. for future success in the workforce. Detroit and beyond. Ⅲ For one thing, business formation is only one part of the equation. TALK ON THE WEB In a January report, the Knight Foundation found that de- spite the high rate of startups in Miami, the number of large Re: Detroit to launch high-tech, They were great to- Reader responses to stories and car cracking up. gether businesses had declined 20 percent since 2000. solar-powered parking system blogs that appeared on Crain’s . Allyson will be greatly And although the area had assets of weather, customer ac- website. Comments may be edited missed. Whether I will continue to I’m glad to see the city of Detroit listen is up in the air for now. cess and infrastructure, it still faces challenges common else- for length and clarity. taking advantage of the latest tech- Lori N where: lack of financing, few mentors, a small VC community nologies for the and a small talent pool. parking program; Re: Experts see many causes for Metro Detroit has some of the tools for fostering business however, I wish Re: Allyson Martinek gone from Michigan disability claims surge success and growth. Others can be developed. they had elected to WDVD 96.3 FM morning show use Michigan firms It appears that a lack of job skills is Yes, we should determine what can be done to encourage to provide the solu- Wow. At a minimum, they should considered a disability for Social Se- more new business formation. But we also should be focus- tion. have sent something out. I hate the curity purposes. Walk into any So- ing on how we can help those businesses succeed once MTAMLinda sneaky way they do cial Security office, and it is likely launched. things. I’m done. you will see younger people out- Sounds more complicated than the Sorry 96.3. I was numbering retirement-age people. present system. If Detroit is serious getting tired of This is a real threat to the Social Se- about attracting people downtown, hearing the same curity benefits of hard-working tax- Kudos to county on foreclosures it should reduce parking rates or song every hour of payers who have put a substantial eliminate meters altogether. the day. This is the amount of money into the system Richard Perry last straw. If you As Wayne County improves its efforts to foreclose and auc- over four or five decades. Social Secu- tion off properties with long unpaid property taxes, a Detroit treat your employ- OK, but the breaking-in period could Martinek ees this badly, I’m rity should not be a welfare program. News story documents some of the consequences of not be hell. Imagine a ballgame with not going to be a listener. Carolyn Mazurkiewicz foreclosing in a timely manner. everyone trying to park, and long Maskay Delinquent commercial properties in Melvindale and Ro- lines at these kiosks as people try to Re: Jefferson Avenue to get push the right buttons and remem- Blaine is very talented. He carried brighter with new streetlights mulus, for example, haven’t been finished or redeveloped, ber their license plate number. the show. I am sure ratings were been an annoyance to neighbors and deprived those com- Citymec waning, otherwise they would not New LED lighting is good, but munities of needed revenue. Other business properties in have changed. New personality will be what about the restoration of historic streetlights the county have deteriorated as they’ve sat untended and Re: Lions single-game tickets go good for the show. in historic parts of the Rick E city? It looks tacky in cities that have been rifled by scrappers. on sale via paperless Flash Seats a nice strip of old buildings or hous- There are clearly consequences and opportunity costs tied I like having a regular ticket option. I have been listening to “Blaine es and then have modern street- to not acting. We’re glad the county is moving forward. It provides a souvenir of the event. and Allyson in the Morning” for lights. Grandslam quite a few years. I would be in my Justin Thompson 20150803-NEWS--0009-NAT-CCI-CD_-- 7/31/2015 11:43 AM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 9 Vitamin firm battles Bausch & Lomb over eye formula

By Chad Halcom little different. It’s an order of magni- Bausch alleges that VitEyes prod- Vitamin Health has several Lutein” variant product is mislabeled [email protected] tude different.” ucts infringe on two patents issued in VitEyes products that it packages because it does not contain beta Farmington Hills-based Vitamin Laurie Little, senior vice presi- 2003 and 2013 to Bausch and Wyeth, and promotes as “AREDS 2 Formu- carotene as in the original AREDS for- Health Inc. is escalating its two-year dent of investor relations at Que- along with the NEI, for nutritional la” but lowered its zinc dosage from mula. It also contends Bausch’s mar- court battle with the New Jersey- bec-based Valeant Pharmaceuticals formulas developed in the age-relat- 80 mg to 25 mg after the original keting and promotional materials based eye care giant Bausch & Lomb Inc., which acquired Bausch & ed macular degeneration study, or Bausch lawsuit. claim “only PreserVision AREDS 2 Inc. with a new federal lawsuit in Lomb shortly before the New York AREDS, of 2001 and follow-up The company contends that contains the exact levels of all six clini- Detroit over a vitamin formula de- lawsuit was filed in 2013, said the AREDS 2 study released in 2013. AREDS 2 found the lower zinc dosage cally proven nutrients now recom- veloped to slow the progress of company would not comment on The original formula called for a does not reduce the benefits of the mended by the National Eye Institute” macular degeneration. pending litigation. mix of vitamins C and E, beta formula and does not infringe on the to slow the progress of age-related Vitamin Health, founded in 2001 In a presentation this year, carotene, zinc and copper. The sec- joint patent, but Bausch contends macular degeneration, because it im- by Aaron Shepherd and maker of var- Valeant estimated that PreserVision ond formula replaced beta carotene that means the AREDS 2 product la- plies that the NEI has found only 80 ious VitEyes eye vitamin products, was its second-highest-grossing with lutein and zeaxanthin after beta beling is false advertising. mg of zinc to be effective. Ⅲ brought a lawsuit before Judge John product line, with $250 million in carotene apparently had an adverse In the new suit, Vitamin Health Chad Halcom: (313) 446-6796 Corbett O’Meara of U.S. District Court, global sales in 2014. effect on some former smokers. contends that PreserVision’s “AREDS Twitter: @chadhalcom alleging false advertising and violations of the Michigan Consumer Pro- tection Act in Bausch’s marketing of two PreserVision products. The Detroit case follows a 2013 lawsuit by Bausch and Wyeth LLC against Vitamin Health claiming false advertising and two counts of patent infringement by VitEyes, at a federal court in Rochester, N.Y. Vita- min Health is also suing Hartford Ca- sualty Insurance Co. for breach of contract in a related case, claiming the insurer is supposed to cover it for part of the Bausch lawsuit in New York. At issue are alleged similarities between VitEyes and PreserVision as treatments for age-related macular degeneration, based on a pair of studies from the National Eye Insti- tute, one of the federal National Insti- tutes of Health. “But they (Bausch) have a patent on a very specific formula with very specific ingredients, including 80 milligrams of zinc product,” said Steven Suss- er, an attorney at Steven Susser: Carlson Gaskey & Vitamin Health Olds PC in Birm- formula “an order of ingham, repre- magnitude senting Vitamin different.” Health in both the Bausch law- suits. “We believed then and we believe now that having 25 milligrams It’s Go Time. of zinc in our products is not just a And, with historically low rates, there’s never been a more opportunistic BANKRUPTCIES time to expand your business with a commercial real estate loan from When it comes to Comerica. As the leading bank for business*, we’ve been ﬁnancing The following businesses filed for business, timing is business expansion for nearly 150 years. Whether you need to build protection in U.S. Bankruptcy Court in or purchase, expand or reﬁnance, It’s Go Time. Are you ready? Detroit July 24-30. Under Chapter 11, everything. a company files for reorganization. Call 800.705.2387, stop by a Comerica banking center or comerica.com/cre. Chapter 7 involves total liquidation. visit Ⅲ DBS Lodging Technologies LLC, 1402 Roslyn Road, Grosse Pointe Shores, voluntary Chapter 7. Assets: $40,000; liabilities: $693,122. Ⅲ Cowley Investments LLC, 33338 Grand River Ave., Farmington, voluntary Chapter 11. Assets and liabilities not available. Ⅲ Cowley Equipment LLC, 33338 Grand River, Farmington, voluntary

Chapter 11. Assets and liabilities not ® available. Ⅲ RAISE YOUR EXPECTATIONS. Old Village Inn Inc., 33338 Grand MEMBER FDIC. EQUAL OPPORTUNITY LENDER. River, Farmington, voluntary Chap- Comerica Bank NMLS ID: 480990 *Based on commercial and industrial loans as a percentage of total assets. ter 11. Assets and liabilities not Data provided by SNL Financial, December 2014. available. CBP-5200-02 07/15 Natalie Broda DBpageAD_DBpageAD.qxd 7/28/2015 8:52 AM Page 1

JUST CALL KATE IT’S SIMPLE. IT’S SMART. KATE GLADCHUN TOP PRODUCER 248.891.1033 [email protected] www.kategladchun.com

STRATEGIC - INNOVATIVE - CONNECTED

“ Kate continues to be a leader in the Birmingham/Bloomfield marketplace year after year. Her vast experience and keen insights with the luxury market make her uniquely qualified as the first choice when buying or selling residential real estate. Kate Gladchun and Max Broock Birmingham... the perfect pairing! ”

MAX BROOCK REALTORS BIRMINGHAM 275 S. OLD WOODWARD BIRMINGHAM, MI 48009 20150803-NEWS--0011-NAT-CCI-CD_-- 7/31/2015 10:31 AM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 11 SPECIALSPECIAL REPORT: REPORT:

Slice of life: SHERRI WELCH Watch how custom Reporter’s Notebook [email protected] pizza-making works: TWITTER: @SherriWelch REALREAL ESTATEESTATE crainsdetroit.com/pizza Retailers have state on expansion menu Lots of restaurants and an interesting mix of retailers are looking to set up a shingle in metro Detroit. According to a roundup presented at the International Council of Shopping Centers Michigan Idea Exchange in late July, newcomers looking at the Pizza region and state include the bar and grill Bubba’s 33, Brickhouse Tavern + Tap, Cooper’s Hawk Winery & Restaurants, Dinosaur Bar-B-Que, the Pittsburgh-based pizza and sandwich shop Primanti Bros. and the women’s boutique Versona. race Besides those chains, several retailers and restaurant operators already with a presence here look to add more locations in metro Detroit or Michigan. Among them: Ⅲ Golden Corral Corp. This buffet is rising operator expects to open its seventh location in the state by the end of August in Taylor as part of 20 stores opening in Michigan this Factions of build-your-own-pizza chains year. Cities where Golden Corral rush to see which can bake lease deals first has locations: Southfield, Eyes on the pies Farmington, Kalamazoo, Holland, Portage and Saginaw. By Sherri Welch BLAZE PIZZA Ⅲ Nashville, Tenn.-based [email protected] • Locations in Royal Oak, Novi and Kalamazoo. Kirkland’s Inc., a home decor, outheast Michigan’s consumer appetite for dough, sauce and Looking in Ann Arbor and Allen Park. accessories and gifts chain, mozzarella is enticing national, quick-service pizza chains to the local • Target: Open nine more stores in metro Detroit by 2017. planned to open its third Michigan market. S • Franchisee: Houghton Lake-based Northland store in Shelby Township on At least six “custom-built” pizza chains are on the hunt for new sites to Investments, dba Blaze Midwest Inc. Saturday and six more between lease in the region. now and the end of 2016. It’s a pizza war, of sorts, since they’re generally all seeking the same sort of Ⅲ MOD PIZZA LLC Little Caesars Pizza is “filling locations: strip mall and out-lots that are toward the front of properties, with a • Location in Livonia. Northville location set to open this month and some holes” with an undisclosed preference for end-cap units in high-density, high-traffic areas. Rochester location in fall. Plans to open a total of 25 locations in number of new stores and the Known for their thin crusts, pick-your-own-toppings approach and two- state by 2019. relocating of other stores in the to-three-minute baking times, the chains include Blaze Pizza, Mod Pizza, Pie • Franchisee: Team Schostak Family Restaurants Detroit area, said Michael Atwell, Five Pizza Co., Pieology Pizzeria, 1000 Degrees Pizzeria and Project Pie. the company’s vice president of real Their move into the market is likely to feed continued development of out- PIE FIVE PIZZA CO. estate. lot strip centers along main roads in the region, said Jim Bieri, president of • Location in Southfield, at 12 Mile and Telegraph roads. Second Ⅲ Panda Express said it has five Detroit-based Stokas-Bieri Real Estate. Southfield location set to open on Evergreen Road in next couple of stores under construction and five set The custom pizza places are “the shiny new penny,” he said. months. Others planned in West Bloomfield Township, for 2016, adding to sites in Detroit, They can afford the higher rents for out-lots and are moving into locations Sterling Heights and Ferndale. Troy, Rochester Hills and Allen Park. where other retail has slowed. • Franchisees: John Draper II and his father, J.D. Draper of Viridian Group. “Based on the success we’re having “In the mix of things, they are a strong ingredient for the next year or two in right now, I will declare this will be the terms of keeping the development of out-lots on a strong pace,” Bieri said. 1000 DEGREES PIZZERIA • New Jersey-based chain set to open within 90 days at Macomb best market for Panda Express,” said Though fast-casual, custom pizza has been popular in other parts of the Mall in Roseville. Allen Park location set to open soon after. Others Jim Tarpey, the company’s regional country since at least 2009, the segment is growing as existing players expand planned in Brighton, Detroit and Ann Arbor. The five sites in the real estate manager. nationally and others enter the fray. Ⅲ works for Michigan are part of a plan to open 25 in the state over Hilliard, Ohio-based PetPeople National rollout the next five years. plans to add six stores in the region • Franchisees: Martin Yono, Randy Kassab and Rudi Sawa this year, joining its first stores in It’s hard to pinpoint “ground zero for the custom pizza explosion,” Grosse Pointe, Birmingham and according to Franchisechatter.com. But there’s broad agreement it was PIEOLOGY PIZZERIA Bloomfield Hills. inspired by the popular Mexican wrap chain Chipotle and is believed to have • Location in Ann Arbor Ⅲ Planet Fitness plans to add five begun in Southern California. locations this year in Wayne, There are at least 16 different companies offering the concept, according to PROJECT PIE LLC Oakland and Macomb counties. the “Fast-Casual Custom-built Pizza Cluster Report” released by Chicago- • Royal Oak location set to open by Labor Day. Location planned in Ⅲ Illinois-based Save-A-Lot Food based food research firm Technomic Inc. last November. West Bloomfield Township, and 18 additional planned in metro Stores, one of the largest grocery With custom-built pizzas, customers choose their ingredients, including Detroit within the next two to three years. chains in the country, expects to the dough, sauce and toppings in assembly-line fashion. Pizzas are cooked in open 10 stores in Michigan this year. high-heat speed ovens. The concepts cater to those seeking fresh or healthier Grocery is a hot segment, with choices, according to Technomic. Kroger Co. of Michigan’s conversion The trend “marks a move away from delivery and discounting, two pillars Detroit restaurants last month of five former Hiller’s that limited-service pizza (relies) upon,” the company said in the report. outside central biz Markets and the opening of three The Italian foods segment, specifically pizza, has been an underserved and Fresh Thyme stores in Troy, Rochester underpenetrated sector within the fast-casual restaurant market, Technomic Ex- district toast zoning and Northville. The Fresh Thyme ecutive Vice President Darren Tristano said in an email. Ⅲ change, chain is new to the market. SEE PIZZA, PAGE 12 PAGE 13 20150803-NEWS--0012,0013-NAT-CCI-CD_-- 7/31/2015 10:32 AM Page 1

12 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015

SPECIAL REPORT: REAL ESTATE PIZZA FROM PAGE 11

Technomic expects the custom pizza segment to grow at a com- pound annual growth rate of 30 percent over the next five years. “Consumers will very likely use these concepts for lunch and dinner with a heavy amount of on-site dining, with less sales related to the traditional delivery and takeout methods of Domino’s Pizza, Pizza Hut and Little Caesars.” Last year, the fast-casual pizza market was worth an estimated $1 billion of the $36 billion pizza industry, Tristano said. Demand for custom pizza ex- ceeds the current supply of fast-casual restaurants nationally, he said. COURTESY OF BLAZE PIZZA “We expect very high unit growth Blaze Pizza , which opened its Royal Oak location in 2013, plans to open another near for years to come.” the University of Michigan in Ann Arbor and is considering a restaurant in Allen Park. Born from pretzels The goal: 11 stores in metro Detroit by the end of 2017. California-based Blaze, which was the former site of Meadowbrook not all are going to survive, Parker formed by the founders of Wetzel’s Dodge. The center commands one of said. Pretzels, is “opening like crazy be- the highest rental rates in the city, at “I try to tell landlords you should- cause they have existing fran- $38 to $44 per square foot, as Crain’s n’t just choose the one that will pay chisees,” Bieri said. reported in June. you the most money. ... It doesn’t Its Royal Oak restaurant “We’re actively pursuing other lo- matter if they pay the most money if launched in 2013, making it the first cations that should be open before they’re going to be out of business fast-casual pizza chain to open in the year is over,” said Brand Leader in two years.” Michigan, said Darla Bowen, mar- Jacob Schostak, noting the compa- Freshly rising chains keting director for Houghton Lake- ny is looking for communities with based Northland Investments, which young families and looking at end- Some chains are just entering the owns Blaze locations in Novi and cap units in strip centers as well as market. Kalamazoo and is represented in out-lots. California-based Pieology Pizze- the metro Detroit market by Michigan is an influential pizza ria opened its first Michigan restau- Matthew Swantko at Landmark Com- state, given the popularity of the rant, a corporate-owned location in mercial Real Estate Services in Farm- food among residents and the na- the former Borders store in Ann ington Hills. tional chains based here, including Arbor, in late June.

“It’s a very competitive market for Domino’s Pizza, Little Caesars, Jet’s New Jersey-based 1000 Degrees the right space,” Bowen said. Pizza and Papa John’s, he said. Pizzeria has five sites in the works “We do look for end-caps if they “There is clearly a large pizza fol- for Michigan in the near term as are available. Strip centers are great lowing here,” Schostak said. part of a plan to open 25 in the state for us, but we also have some loca- “While some people might think over the next five years. tions on college campuses.” of the competition as a reason to The local 1000 Degrees fran- Among the eight Blaze locations stay away, it actually attracts us to chisees, who are also developing Northland operates across Michi- the opportunity.” sites in Arizona, are entrepreneurs gan, Ohio and Indiana are restau- Pie Five Martin Yono, Randy Kassab and rants near Western Michigan Universi- Rudi Sawa, said their real estate bro- ty in Kalamazoo; University of Notre Pie Five Pizza, a subsidiary of ker, Matthew Berke of Keystone Dame in South Bend, Ind.; Ohio State Dallas-based Rave Restaurant Group Commercial in Farmington Hills. University in Columbus; and Indiana Inc., opened its first metro Detroit Their first pizza place is set to University-Purdue University Indi- location in Southfield in a strip cen- open at Macomb Mall in Roseville anapolis. ter at 12 Mile and Telegraph roads. within 90 days, he said. Another 1000 The group has plans to open a lo- A second location, in the South- Degrees, at Independence Market- cation near the University of Michigan field City Centre district on Ever- place on West Outer Drive in Allen in Ann Arbor and also is looking in green Road near 10 Mile Road, is Park, will open soon after, followed Allen Park. under construction and set to open by locations in Brighton, Detroit and The goal is to have an additional in the next few months, said the Ann Arbor. nine stores in metro Detroit by the local franchisee owners’ broker, An unnamed franchisee for Cali- end of 2017, for a total of 11, she Bunia Parker, a principal with Sum- fornia-based Project Pie has signed said. mit Commercial LLC in Detroit. a lease for a location at Fourth and Mod Pizza The franchisee owners, John Main streets in downtown Royal Draper II and his father, J.D. Draper Oak and plans to open it by Labor The first Michigan location for of Viridian Group, are also opening Pie Day, said broker Eric Unatin, senior Washington-based Mod Pizza LLC Five locations in Wisconsin and associate at Armada Real Estate. opened in June in Livonia on Mid- Ohio. It’s also close to signing a lease dlebelt Road in a 2,600-square-foot “We are actively negotiating over with the developer of the West space. Livonia-based franchisee 10 sites in Michigan,” including Bloomfield Township Hampton Inn Team Schostak Family Restaurants sites in West Bloomfield Township, complex and plans 18 more local lo- plans to open two dozen additional Sterling Heights and Ferndale set to cations within the next two to three locations in the state over the next open in the near term, Parker said. years. five years. The owners also are looking at a “I refer to it as the pizza war — A second location is planned for downtown Detroit location in one you’ve got six competing users all Northville Park Place, a mixed-use of Dan Gilbert’s buildings. vying for the same sites and mar- development set to open in mid- In all, they plan to open more kets,” Unatin said, “and I’m sure August at the corner of Seven Mile than 30 locations across Michigan there will be more in due time.” and Haggerty roads in Northville. over the next couple of years, Parker “You can bet if we’re negotiating And a third site, with a fall opening said. on one site, we probably have two date, is taking shape in Rochester at A lot of brands have sprouted in or three competitors, at a mini- the Rochester & Auburn Shoppe’s on the fast, custom-pizza segment, but mum, in line with us.” Ⅲ 20150803-NEWS--0012,0013-NAT-CCI-CD_-- 7/31/2015 11:32 AM Page 2

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 13

SPECIAL REPORT: REAL ESTATE Zoning change slakes restaurants’thirst for alcohol

By Kirk Pinho teurs need to go through a hearing A series of steps are required to just go get your liquor license and tional bar. The LCC had issued 596, [email protected] process through the Building, Safety open a restaurant in Detroit, includ- go through that process. It’s a real putting the city 120 over quota. For years, if a restaurateur want- Engineering & Environmental Depart- ing site selection, site plan approval time saver.” The city currently has 558 licenses ed to open an alcohol-serving es- ment and the Board of Zoning Appeals and obtaining a liquor li- It also will help grease the issued, or 81 over quota. Detroit can tablishment in Detroit outside of that could affect not only wallets — cense, city business license skids for restaurateurs from have more issued licenses than the the central business district, he or but also calendars — if they wanted and certificate of occupan- out of state eying Detroit for quota because the quota is based on she was hamstrung. to locate within 1,000 feet of two cy, among others. a location, Howe said. population figures from U.S. Census That’s because of an alarming other alcohol-serving restaurants. Patrick Howe, a partner “We are seeing restau- data and the number of issued licens- amount of red tape and delays to The process for one license could focusing on hospitality and rants from New York, es sometimes lags behind that figure. earning that privilege. take up to $2,200 in city fees land use for Royal Oak- Chicago, Las Vegas. When Ryan Cooley, owner of O’Connor But things are changing. — not to mention costs for based law firm Howard & they call me and I have to Realty Detroit LLC in Corktown and a A zoning change that ad- an attorney — and up to six Howard PLLC, said Corktown explain the process that partner of Slows Bar BQ and Gold vocates describe as a win for to eight more months to re- hot spots like Slows Bar BQ, Patrick Howe: takes 60-90 days to com- Cash Gold (all three of which had to restaurant owners outside ceive BSEED and BZA ap- Gold Cash Gold, Mercury Burger New process “a real plete,” it’s a deterrent, he receive BSEED and BZA approvals), of downtown’s 1.6 square proval for an alcohol-serv- Bar and Sugar House all had time saver.” said. “Then I tell them the said the change will expedite the miles — particularly with ing restaurant, said Tonja to go through the pro- building they are looking at process for new restaurateurs. the proliferation of new din- Stapleton, zoning adminis- longed process. can be used as a restaurant by right, When asked, he typically tells as- ing spots there and in the trator for BSEED. The system required two sepa- it’s a huge change in their minds.” piring restaurant owners it takes greater downtown’s 7.2 Tonja Stapleton: “Basically, we were rate hearings. First, a board of build- Stapleton said that in the first about 18 months to open up a square miles — took effect “We were shooting shooting ourselves in the ing department staff member weeks of working on the ordinance restaurant in Detroit between se- last month after nearly three ourselves in the foot.” foot when trying to create would have to approve the restau- revision, the state Liquor Control curing the financing, build-out and years of work. entertainment districts rant use. Then if approved, the ap- Commission had authorized the city obtaining the proper approvals. As of July 11, restaurants and different nodes,” Stapleton plicants would have to receive a to have 476 Class C liquor licenses, That timeframe is now shortened. throughout the city’s 143 square said. “It really impacted the Liver- waiver of concentration from the which allow for the sale of liquor, “Anything to speed up the miles that serve alcohol are consid- nois business district and Corktown zoning team, Howe said. beer and wine for consumption on process is good,” Cooley said. Ⅲ ered a “by right” use. Translation: and Eastern Market, and to some “You don’t have to deal with the premises. Those cost $600 per year, Kirk Pinho: (313) 446-0412 No longer do prospective restaura- extent, New Center and Midtown.” hearings now,” he said. “You can plus $350 per year for each addi- Twitter: @kirkpinhoCDB

Guidance to stay one step ahead of the competition.

A Fee-Only Wealth Management Group

Michigan's #1 Financial Advisor* Now with a Metro Detroit Location

W hen facing the competition, who do helps you win the battle in litigation Charles C. Zhang you want in your corner? Odds are you and guides you through your next CFP ®, MBA, MSFS, ChFC want more than just another law firm. acquisition. A firm like Butzel Long. Managing Partner You want a firm that’s knowledgeable Michigan’s Leading Fee-Only and innovative—a thought leader that Trust. Always.

Financial Advisory Firm Ann Arbor • Bloomfield Hills • Detroit • Lansing • New York Washington, D.C. • Alliance Offices Worldwide • 313-225-7000 butzel.com We Uphold a Fiduciary Standard

101 West Big Beaver Road 14th Floor STOP SEARCHING. Troy, MI 48084 (248) 687-1258 (888) 777-0126 Our proprietary data-driven process connects job seekers to employers based not only on job requirements, www.zhangfinancial.com but on the candidate’s skills and interests. Assets under custody of LPL Financial and TD Ameritrade. *As reported in Barron’s February 23, 2015. Factors included in the rankings: • Post a job for only $39 — includes a match guarantee! assets under management, revenue and the quality of the advisors’ practices, and other factors. Minimum investment requirement: $1,000,000 • Job seekers never pay to use the platform. 20150803-NEWS--0014-NAT-CCI-CD_-- 7/31/2015 11:09 AM Page 1

14 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 Study: ‘Centers of FROM MIDTOWN TO YOUR TOWN, excellence’hospitals WAYNE STATE MEANS best for certain surgeries

By Jay Greene ease guidelines published by the [email protected] American Health Association/American Sometimes the best place for sur- College of Cardiology. The AHA/ACC gery is your friendly neighborhood guidelines recommend that mitral community hospital. Other times, it valve diseases be repaired at a centers BUSINESS could be miles away at a hospital of excellence-type hospital. with higher costs for the procedure, He said researchers are in the but with demonstrably better out- process of identifying the type of Flexible full-time and part-time M.B.A. options comes and lower long-term costs. mitral valve repairs that should be GMAT waiver for qualiﬁed applicants Researchers Wally Hopp and Jun performed at centers of excellence Li at the University of Michigan’s Ross and others that can safely be per- Locations in Midtown Detroit, Livonia, Farmington Hills and Macomb County School of Business in Ann Arbor formed at community hospitals. 31,000 business alumni across the state of Michigan and around the world crunched data from 35 New York Hopp said patients, employers hospitals on mitral valve repair and and health insurers can save money Are you ready to join our powerful network? discovered major differences be- and patients can live longer by Contact us at [email protected] or 313-577-4511. tween community hospitals and choosing the right hospital to repair teaching hospitals considered “cen- a leaky or narrowing heart valve. Li ters of excellence” for heart surgery. said research found that going to a Mitral valve disease is the most center of excellence can be a better common form of heart valve disease option for both patients and insur- in the U.S., affecting 5 percent of the ers, even if it’s further away from the population and resulting in 500,000 patient and costs more upfront. annual hospital admissions. “One of the big questions for pa- Hopp and Li found health insur- tients and insurers right now is which ers saved $471 to $7,978, the savings procedures should be done in spe- School of Business dependent on the age and health of cialized places and which procedures business.wayne.edu the patient, by having patients should be done in community hospi- treated at a hospital considered a tals,” said Hopp, a professor of tech- center of excellence. nology and operations at UM.“The The report, “Cost-Effectiveness of decision tree is often a mess, and the Referring Patients to Centers of Ex- resulting decisions often don’t make cellence for Mitral Valve Surgery,” sense from a health standpoint or was published May 27 in Social Sci- cost standpoint.” ence Research Network. The paper Besides Hopp, Li and Fazzalari, can be found at myumi.ch/6xm7m. Steven Bolling, M.D., a professor of The researchers defined a center of cardiac surgery, and Guihua Wang, a excellence as a hospital that performs doctoral candidate in the Ross more than 100 mitral value proce- school, were on the research team. dures per year and is listed in the top Report findings 50 cardiac programs in the 2014 U.S. News and World Report ranking. Full implementation of the Hopp and Li sought out New York AHA/ACC guidelines would lead to for statistics because inpatient and a 9 percent increase in mitral valve outpatient data was unavailable in repairs instead of valve replacement Michigan on mitral value repair, an surgery. Researchers also predicted open heart procedure to treat nar- a 2.2 percent to 4.8 percent reduc- rowing or leaking of the left heart atri- tion in mortality, 3 percent to 3.9 um where blood flows from the percent in reoperation, 3.9 percent lungs. The only two hospitals in to 6.8 percent reduction in stroke, Michigan that met Hopp and Li’s def- and an average gain of one to four inition were the University of Michigan months’ life expectancy, depending Hospital in Ann Arbor and William Beau- on a patient’s age and other medical mont Hospital in Royal Oak, they said. problems, the report found. However, Frank Fazzalari, M.D., a Fazzalari said patients facing cardiothoracic surgeon at UM, said mitral valve problems have three other hospitals in Michigan have cardiac surgical options: Get the the technology and skill to generate valve repaired, get it replaced with similar medical outcomes, depend- a tissue valve from a cow or pig, or ing on the valve repair required. replace it with a mechanical valve. “If you have mitral valve disease, He said research data suggests a degenerative disease, it is prefer- that, in most cases, mitral valve re- able to have mitral valve repair,” he pair is superior to mitral value re- said. “There is a wide spectrum of placement in patients with degen- what you can do. Some (surgeries) erative mitral valve disease because can be done at community hospi- it offers better survival chances, tals; others can best be done at cen- fewer complications and lower ters of excellence.” costs. Mechanical mitral valve re- Fazzalari, who was a member of placement also can require ongoing the UM research team and suggested medications, including anticoagu- the study, said generally there is an lation. But not all mitral valves can economic benefit for patients to have be repaired due to the nature of this type of surgery performed at a heart disease. hospital with experienced surgeons Patients should talk with their and staff. Because the costs and out- doctor about their best options, comes can vary for many surgical Fazzalari added. Ⅲ procedures, Fazzalari suggested re- Jay Greene: (313) 446-0325 searchers study the new heart dis- Twitter: @jaybgreene 20150803-NEWS--0015-NAT-CCI-CD_-- 7/31/2015 10:51 AM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 15 Troy-based med group saves Medicare millions in pilot

By Jay Greene the participating Medicare patients, example, PACE’s seniors have a nurses visit patients in their homes, Earlier this year, Medicare an- [email protected] or 2,200. 16 percent hospital readmission meet with family members and en- nounced a plan to tie 30 percent of A three-year pilot program to cut Based on the incentive formula, rate, far less than the similar group sure their environments positively Medicare payments to quality and costs and improve the quality of USMM kept $7.9 million of the of Medicare-Medicaid patients who influence their health. value through alternative payment care for hundreds of chronically ill $11.7 million in bonus incentive have a 22 percent readmission rate. Although the three-year pilot models — like the Independence At Medicare patients treated by Troy- payments paid to the nine prac- “Our goal is to keep people home ended May 31, Congress approved Home program — by 2016. By 2018, based U.S. Medical Management tices, Sowislo said. who are nursing home eligible,” July 20 the Independence at Home the percentage would grow to 50 showed such good results — cost Other participating practices in- Naber said. “They are the sickest of Act (Senate Bill 971), which will ex- percent of payments. savings of $25 million — that Con- cluded Boston Medical Center, Cleveland the sick.” tend the program another two Jay Greene: (313) 446-0325 Twitter: @jaybgreene gress has extended the program an- Clinic, North Shore-Long Island Jewish Pilot results years. other two years. Health Care, Christiana Care Health First-year results of Medicare’s In- System, Doctors on Call, Doctors Making The purpose of the pilot was to dependence At Home program with Housecalls and Housecall Providers. test whether home-based care can Turn your 8,400 Medicare patients show 17 reduce the need for hospital and Let’s Talk Trash Aging in place trash to cash medical sites — including two U.S. emergency room care, improve pa- Medical Management practices in Mary Naber, CEO of Detroit- tient and caregiver satisfaction, and If you pay to have recyclable waste hauled away, such as plastic, paper, or metal Southeast Michigan — reduced based PACE of Southeast Michigan, lead to better health outcomes for you are missing a great opportunity to increase your net income. costs by significantly cutting unnec- said programs like Independence At beneficiaries along with lower costs essary hospitaliza- Home can re- to Medicare. tions and ER visits. “Our goal is to duce costs and Besides the estimated average The program also improve quality cost savings of $3,070 per Medicare improved the keep of life for beneficiary, or $800 per member per overall quality of people Medicare pa- month, said the Centers for Medicare care for the tients. PACE, and Medicaid Services, Medicare pa- chronically ill home a Medicare- tients improved in other ways. seniors who were who are Medicaid funded Among them: Medicare patients treated at home, program, also received follow-up contact from the study found. nursing helps seniors their provider within 48 hours of a Authorized home stay in their hospital admission; had their med- under the Patient eligible. They are homes by using ications identified by their provider Protection and Af- an outpatient within 48 hours of discharge from Schedule your FREE Waste Audit To See How Much You Can Save fordable Care Act, the sickest of the clinic-driven the hospital; and used hospital and the Medicare pro- sick.” model that pro- emergency department services Servicing the Entire State of Michigan gram featured U.S. vides transporta- less for such conditions as diabetes, Email [email protected] Medical Manage- Mary Naber, tion services. high blood pressure, asthma, pneu- Call Robert, Rick or Stu (248) 668-0800 ment practices, a PACE of Southeast Michigan “There are monia or urinary tract infection, medical service or- many demo proj- CMS said. RECYCLING SOLUTIONS FOR BUSINESS SINCE 1917 ganization with 39 offices in 11 states, ects out there as it relates to coordi- “These results support what including Michigan, Indiana, Ohio, nation of care,” said Naber, whose most Americans already want — Wisconsin, Texas and Kentucky. two PACE outpatient cen- that chronically ill patients Last year, St. Louis-based Centene ters in Detroit are one of can be better taken care of Corp. acquired a majority interest in eight in Michigan and 110 in their own homes,” said USMM for about $200 million. nationally. Andy Slavitt, CMS acting Five of USMM’s practices, in- “(Medicare) is trying to administrator, in a state- cluding two practices managed by figure out ways to manage ment. affiliate Visiting Physicians Associa- chronic diseases, improve Steven Mehran, USMM’s tion in Okemos and Flint, partici- quality and reduce costs,” chief medical officer, said pated in the new three-year pay- Naber said. the pilot program proved ment program that ended in May, While PACE doesn’t send Andy Slavitt: USMM’s model is one that said Bob Sowislo, USMM’s govern- doctors to the home like ”These results should be closely studied ment affairs officer. The other par- the Independence At support what most when the program is ex- ticipating VPA practices are in Dal- Home program, Naber said Americans ... want.” panded nationally. las, Milwaukee and Jacksonville, Fla. PACE has nurse case man- “We did nothing differ- Of the 17 medical practices that agers who visit patients at home. ent than we had been doing” in case participated in the Medicare pilot, They provide transportation to sen- management, medication manage- only nine saved enough money and iors to bring them into PACE-run ment and direct patient care, said improved quality indicators to earn medical clinics where they receive Mehran, adding: “One powerful bonus payments. USSM’s five prac- medical, dental, audiology, behav- measure of our success is the conti- tices accounted for 84 percent, or ioral health, nutritional, pharma- nuity factor. We know if we provide $20 million, of the $25 million saved ceutical and rehabilitative services. 70 percent of care to the patient, we in the pilot, Sowislo said. Naber said she hopes Medicare can significantly impact care while The five USMM practices also expands the PACE program be- maintaining quality.” managed the lives of 27 percent of cause it has proven successful. For Mehran said VPA physicians and

Nominations sought for Best Managed Nonprofit Contest

Crain’s Best Managed Nonprofit Contest this year will focus the most recent audited financial statement and a copy of on actions local nonprofits are taking to execute and/or the most recent IRS 990 form. adapt their missions and operations to the trends they Previous first-place winners are not eligible; neither are foresee for their own sectors. hospitals, HMOs, medical clinics, business and professional Examples include, but are not limited to, greater ethnic organizations, schools, churches or foundations. diversity, new generations of leadership, rapid technology The winners will be profiled in the Dec. 7 issue, receive a change, and social and new models for organizing around “best-managed” logo from Crain’s for use in promotional projects and causes. material and will be recognized at Crain’s Newsmaker of the Applications are due Aug. 24. Finalists will be interviewed by Year lunch early next year. judges the morning of Nov. 10. For an application form, please email YahNica Crawford at Applicants for the award must be a 501(c)(3) with [email protected] or visit headquarters in Wayne, Washtenaw, Oakland, Macomb or www.crainsdetroit.com/nonprofitcontest. For information Livingston counties. Applications must include an entry about the contest itself, email Executive Editor Cindy form, a copy of the organization’s code of ethics, a copy of Goodaker at [email protected] or call (313) 446-0460. 20150803-NEWS--0016-NAT-CCI-CD_-- 7/31/2015 10:36 AM Page 1

16 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015

battery energy for plug-in hybrids SPOTLIGHT through a combination of global posi- MARY ZATINA, senior DEALS & tioning systems and topographical vice president, government road data. Website: mahle.com. PEOPLE relations and community DETAILS affairs, Beaumont Health Gardner-White Furniture Co. Inc., ON THE MOVE Auburn Hills, announced that bed- Mary Zatina CONTRACTS ding by Sealy Corp., Trinity, N.C., is now has been ap- Pelham Services LLC, Dearborn, available at all Gardner-White retail ARCHITECTURE dent, Coca-Cola Refreshments, At- pointed sen- has signed an agreement with locations. Website: Susan Haifleigh lanta. ior vice presi- U-Haul International Inc., Phoenix, as gardner-white.com. to senior interior dent of a U-Haul neighborhood dealer. designer and Norman Fenton to executive chef, government Website: uhaul.com/locations. NEW SERVICES studio director, Tom’s Oyster Bar and Ale Mary’s Beer relations and The Whitney restaurant, Detroit, JPRA Architects, Hall, Royal Oak, from executive sous community Arotech Corp., Ann Arbor, a has launched a new website, de- Farmington chef, Bistro 82, Royal Oak. affairs at provider of defense and security signed by Big Bang Detroit, Detroit. Hills, from direc- Zatina Southfield- products for the military, law en- Website: thewhitney.com. tor, Diamonte Jerome Fosset to assistant food based Beau- forcement and homeland security Design LLC, and beverage director and manag- mont Health. markets, has received $8.7 million Altair Engineering Inc., Troy, an- Haifleigh Northville. er, The Corner, the Townsend Hotel, In this role, her responsibilities in new awards and contract modi- nounced that Elysium Co. Ltd., Hama- Birmingham, from beverage and will include managing govern- fications since the beginning of the matsu, Japan, has joined the Altair CONSULTING food manager, W Hollywood, part ment relations for Beaumont second quarter. Website: Partner Alliance, adding its 3-D of Starwood Hotels and Resorts Health and managing communi- arotech.com. geometry healing and translation Worldwide Inc., Hollywood, Calif. ty affairs. software CADdoctor. Websites: Previously, she served as sen- NAME CHANGE altairalliance.com, MANUFACTURING ior vice president, government Professional Engineering Associ- elysium-global.com. Joel Radner to sales manager, relations and corporate commu- ates Inc., Troy, a civil engineering, round tools divi- nications at Oakwood Healthcare land surveying and landscape Domino’s Pizza Inc., Ann Arbor, has sion, North Inc., leading marketing, commu- architecture consulting firm launched its new app for Apple America, Seco nications, public relations, com- with a branch office in Howell, Watch, which includes Domino’s Tools LLC, Troy, munity health and government has changed its name to PEA Inc. Tracker. Customers can now track Schneider Stapleton from market relations. The company logo will not their order. The app can be down- segment special- Zatina, 55, earned a bachelor’s change. Website: peainc.com. loaded at the App Store for Apple Amy Schneider and Mark Stapleton ist for aerospace degree in mass communications Watch. Website: dominos.com. to equity partners, G2 Consulting and power gen- and English from Wayne State NEW PRODUCTS Group LLC, Troy. Both are project eration, Colch- University. BrassCraft Manufacturing Co., STARTUPS managers. Radner ester, Conn. Her responsibilities for Oak- Novi, a Masco Corp. company and Pizza @ Annabel Cohen Cooks De- wood Healthcare’s marketing manufacturer of plumbing and troit, a carry-out pizza restaurant, ENGINEERING and communications will transi- flow control products, has has opened at the Crosswinds MARKETING tion to Margaret Cooney Casey. launched an updated excess Plaza, 4301 Orchard Lake Road, flow valve that conforms to the No. 155, West Bloomfield Township. new industry standard. It helps Telephone: (248) 562-7409. Website: Melinda Conway protect against gas-related fires annabelcohencooksdetroit.com. Callahan to chief and explosions. The valve in- development of- stalls horizontally or vertically Deals & Details guidelines. ficer, Focus: Hope, and has no parts that can wear, Email [email protected]. Detroit, from break or misalign over time. Use any Deals & Details item as a chief develop- Website: brasscraft.com. model for your release, and look for Burton MacDonald ment officer, For- the appropriate category. Without Solack Uyeda gotten Harvest, Mahle Powertrain LLC, Farming- complete information, your item will James Burton and Michael MacDon- Callahan Oak Park. ton Hills, part of Mahle Group, has not run. Photos are welcome, but we ald to vice presidents/partners, Jason Solack to vice president, O2 developed control software that cannot guarantee they will be used. Hubbell, Roth & Clark Inc., Bloomfield Integrated division, Gongos Inc., REAL ESTATE can manage the consumption of Hills, from associates. Auburn Hills, from senior director. John Kuriakuz to partner, Alidade Also, Crystle Uyeda to director, busi- Capital LLC, FINANCE ness development, from research Bloomfield Hills, Feras Shamma- strategist. continuing as di- CALENDAR mi to vice presi- rector of acquisi- dent, treasury NONPROFITS tions. Also, management Dan Ginis to Robert Jones to WEDNESDAY quarters, Troy. $20 members, $40 deposit officer, senior vice presi- vice president, AUG. 5 nonmembers, $30 walk-in members, Level One Bank, dent and chief asset manage- $50 walk-in nonmembers. Farmington development of- ment, from di- Selling Smart Workshop : Strate- Preregistration ends Aug. 4. Hills, from busi- ficer, Michigan Jones rector of real es- gies for Selling Professional Services. Contact: (800) 427-5100; email: ness banking re- Humane Society, tate, Art Van 11 a.m.-1 p.m. Ann Arbor Spark. [email protected]. Shammami lationship man- Bingham Farms, Furniture Inc., Warren. Learn how to close more service ager, J.P. Morgan from director of contracts by following a systematic UPCOMING EVENTS Chase & Co., Detroit. development, TECHNOLOGY approach. Ann Arbor Spark. Free. Ginis Gerald R. Ford Matthew Dills to vice president, Registration ends 24 hours before Best Strategies in Supplier Diversity Rhett Rowe to School of Public human resources and chief human the event. Contact email: Luncheon. Noon-2 p.m. Aug. 19. Diversi- president, Capi- Policy, University of Michigan, Ann resources officer, ITC Holdings Corp., [email protected]. ty Information Resources. Speaker: tal for Mer- Arbor. Novi, from executive vice president, Eric Holder Jr., former U.S. attorney gen- chants, North human resources and talent man- THURSDAY eral. $124. Detroit Marriott Renais- American Bancard Kristine Chan- agement, Hylant Inc., Toledo, Ohio. AUG. 6 sance Center. Contact: Betsy Gabler, LLC, Troy, from dler to director of (612) 781-6819; email: info@ senior regional development, People on the Move Cuba: The Next Frontier. 8-11:30 diversityinforesources.com. director, Great North Star Reach, announcements are limited to a.m. Automation Alley. What does Rowe Lakes Business Ann Arbor, from management positions. Email the normalization and restoration Calendar guidelines. Visit Credit LLC, Troy. consultant, Art- [email protected]. of U.S.-Cuban diplomatic relations crainsdetroit.com and click “Events” Center Traverse Include person’s name, new title, mean for U.S. business and indus- near the top of the home page. FOOD City, Traverse company, city in which the person try? Speakers: Noel Nevshehir, di- Then, click “Submit Your Events” Troy Ellis to ex- Chandler City. will work, former title, former rector, international business, from the drop-down menu that will ecutive vice company (if not promoted from Automation Alley; Jeffrey appear. Fill out the submission form, president, sup- Diane Dupuis to development direc- within) and former city in which the DeLaurentis, chief of mission, U.S. then click “Submit event” at the ply chain, Domi- tor, Legacy Land Conservancy, Ann person worked. Photos are interests section — Cuba; Dana bottom of the page. no’s Pizza Inc. McAllister , Arbor, from legacy and major gifts of- welcome, but we cannot guarantee , executive director, More Calendar items can be Cuban-American Chamber of Com- Ann Arbor, from ficer, Grand Traverse Regional Land they will be used. found at crainsdetroit.com/events. Ellis senior vice presi- Conservancy, Traverse City. merce. Automation Alley head- 20150803-NEWS--0017-NAT-CCI-CD_-- 7/31/2015 5:32 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 17

Q&A: Julie Fream, Original Equipment Suppliers Association Suppliers association zeros in on Mexico,new-tech firms The number of assembly plants INA (Mexico’s supplier association). “Generally, sales ture parts. But our supplier mem- been put on the supplier councils at under construction in Mexico is The big challenge for suppliers in bership has gone up, which is a Ford Motor Co. and FCA. starting to cause headaches for auto Mexico is developing a network of to one customer good thing. That’s our core group. suppliers. tier-two and tier-three vendors. will not Does your council presence allow Tier-one companies are strug- Some time ago, your predecessor in- you to speak frankly about issues that gling to build networks of tier-two So there’s a shortage? support troduced a model terms-and-condi- suppliers might not be willing to com- and tier-three suppliers in Mexico Correct. The big suppliers are setting up tions contract. Have you updated it? municate directly to the company? because smaller vendors are reluc- setting up plants, but it’s very diffi- Our latest effort is a model con- Yes. We’ve been told by many au- tant to shoulder the financial risk, cult to get the smaller suppliers to a plant. tract for three-party agreements. tomakers that they appreciate that. said Julie Fream, CEO of the Original do so. Generally, sales to one cus- That’s the Let’s say an automaker directs a Our relationships with the au- Equipment Suppliers Association. tomer will not support setting up a biggest tier-one supplier to use a particular tomakers are better than ever. “The big suppliers are setting up plant. That’s the biggest challenge tier-two vendor. Our (model con- plants, but it’s very difficult to get we’re hearing about. challenge we’re tract) creates the right environment Are OESA’s members upbeat? the smaller suppliers to do so,” said hearing about.” for those three-way discussions. We The mood is good. We’re seeing Fream, 51. “Generally, sales to (only) Does OESA play matchmaker be- reviewed it with several automak- some uneasiness about Greece and one customer will not support set- tween big and small suppliers? over the globe, but we want to make ers, and it’s been adopted by at least China, but the mood is good, and ting up a plant. That’s the biggest We have been asked to provide sure we can assist our suppliers in one. the production numbers are very challenge we’re hearing about.” lists, and we do so. Members will Europe, Japan or elsewhere. strong. But we all realize that the With 450 member companies say, “We need a supplier who can So that’s a win, right? shoe will eventually drop and even- that generated combined sales of make a certain type of plastic mold- When you talk about new-technolo- It’s a big win, and we had another tually there will be a downturn. The $300 billion last year, OESA acts as ing. Do you know anyone who can gy suppliers, are you talking about soft- win that I can tell you about. I’ve question is when. Ⅲ an advocate for suppliers in North do this in Mexico?” And we’ll find a ware developers, chipmakers, infotain- America. supplier that fits their needs. ment? Before Fream joined the industry Those are the biggest groups. It’s group in 2013, she spent 30 years in How many OESA members have what you hear about in the press all REAL MARKET a variety of engineering, sales and plants in Mexico? the time. But there are others, (such planning jobs at General Motors, Ford A very significant percentage has as suppliers of) lightweight materi- PLACE Motor Co., TRW and Visteon Corp. some kind of facility in Mexico. It’s als like carbon fiber. This is a com- ESTATE She spelled out her priorities in a got to be 60 percent or more. plex market. We want to make sure BUSINESS OPPORTUNITIES July interview with Automotive News, they can network. COMMERCIAL PROPERTIES a sibling publication to Crain’s De- What are OESA’s top priorities this û û ½ Ownership in 1997 Citation Bravo in operation troit Business. Among the highlights year? Have the new-tech suppliers in- ORION TOWNSHIP available immediately, part 135, based at Pontiac-Oakland County Int’l Airport. from that Q&A: We are focusing on the new-tech- creased OESA’s membership? 475 ft. of Lapeer Rd. Frontage with 11 Arces nology suppliers. We’re making sure We have more than 450 mem- in Orion Township. Backs up to the Polly Call Joe Carroll at JetBrokers, Inc. | In recent years, a lot of automakers Anna Trail. Walking distance to Village of Of¿ ce: 248-666-9800 Mobile: 248-505-0570 or that we’re bringing in those new bers, and that’s really consistent. We Lake Orion. Stoplight in front of proprortey. Email: [email protected] have built plants in Mexico. How has suppliers (as members) and offer- have seen a demographic shift. Our Call ~ 248-884-9171 OESA responded? ing them the services they need. affiliated membership has gone LEGAL SERVICES - IMMIGRATION We do have members that are The other priority is to make sure down a little bit. That includes peo- Immigration Law Firm, AV-rated RESIDENTIAL PROPERTY headquartered in Mexico. So that is we have a global presence. That ple who are connected with the Antone, Casagrande & Adwers, P.C. part of our reach. We also work with doesn’t mean we’ll open offices all auto industry but don’t manufac- Dedicated to Business, Employment, FOR SALE and Family Immigration Matters LIMITED DIVIDEND HOUSING ASSOCIATION L.L.C. 31555 W. 14 Mile Rd. Ste. 100, A MSHDA DEVELOPMENT Farmington Hills, MI 48334 Tons of depreciation. Certified financials. (248) 406-4100 www.antone.com Royal Oak development gets $4.5M loan Certified current value $1.67 million dollars BUSINESS SERVICES Email inquires to: [email protected] By Kirk Pinho [email protected] WATERFRONT PROPERTY NEED BIG BOXES? A $48 million mixed-use devel- Now Accepting Orders for Large Boxes! opment planned for downtown Singlewall, Doublewall, and Triplewall Royal Oak received $4.5 million in Any Quantity! Michigan Community Revitaliza- Call St. Clair Packaging at (810) 364-4230 tion Program funding from the Michigan Economic Development Corp. /RFKULGJH_%ORRPÀHOG_0LFKLJDQ JOB The project at 400 N. Main St., Exceptional home on private 1.7 acre proposed by Southfield-based Ver- peninsula. 7,000 total SF. 1300 ft. of waterfront. sa Development LLC and Royal Oak- 4 beds with entry level master. 4.3 baths. FRONT based CG Emerson Real Estate Group NANCY KARAS through an entity called Trailhead Specializing in SE MI lakefronts POSITIONS WANTED RO LLC in Southfield, is planned to 248.421.2670 consist of a 120-room Hyatt Place [email protected] û WANTED û hotel, a mixed-use building with 56 ASSEMBLY WORK ISO 9001-2008 certified company seeks assembly apartments, and retail and office Petoskey Area Homes work. We assemble over 16,000,000, but not space. limited to, plastic parts per year. We will pick up WONDERFUL ENVIRONMENT!!! and deliver. Planned for 3.56 acres north of 11 COURTESY OF THE CITY OF ROYAL OAK Retirement or Resort! CALL JOHN @ 586-741-8493 Mile Road and west of North Troy An artist’s rendering of the Trailhead RO LLC development in downtown Royal Oak. Street, the project would also include a 325-space parking deck. city’s director of planning. opposed by some residents and MISCELLANEOUS According to an MEDC memo, Other financing for the project is local competitors. the site houses a former car dealer- expected to include a $34.75 million The site was purchased from SURVEY ship that has been closed since loan from Fifth Third Bank; $6.5 mil- Ally Bank out of foreclosure in 2012 2008. The site has three buildings lion in equity from Develop Michi- and the city has approved rezoning ANALYZE Hyatt Corp • Lake Michigan Views totaling more than 40,500 square gan; $480,000 from ., the and final site plans for the site, the • Quality + Healthy Association feet that will be demolished. They hotel’s franchiser; and $4.1 million memo says. • 1,625 sq. ft. - 2 Bedroom - 2 ½ bath MATCH housed showroom, administrative, from the ownership team, according The MEDC board approved the • Walk everywhere. Tennis…Pool maintenance and body shop opera- to the memo. Tax increment financ- MCRP performance-based loan last • Attached garage $265,900 • MANY OTHER CONDOS! &20,1*6221 tions. ing from the city amounts to up to week. The developers plan to start $3 million in reimbursements. The developers still need to apply Joe Blachy demolition this fall, and construc- Previous proposals for the site in- for building permits. Ⅲ (231) 409-9119 tion is likely to take 18-24 months to cluded an $18 million Kroger Co. Kirk Pinho: (313) 446-0412 Email: [email protected] Website: joeblachy.com Call anytime between 7am & 10pm 7 days a week! Stay tuned to CrainsDetroit.com | complete, said Tim Thwing, the store development that was widely Twitter: @kirkpinhoCDB 420 Howard St., Petoskey, MI 49770 20150803-NEWS--0018-NAT-CCI-CD_-- 7/31/2015 5:03 PM Page 1

18 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 NHTSA uses Fiat order to clean up industry on safety

By Ryan Beene has allowed unrepaired used cars to Crain News Service be sold to unwitting buyers, as was WASHINGTON — The National New recall policy could mean dealer penalties the case with Carols Solis IV, who Highway Traffic Safety Administra- died in Texas in January from in- tion’s recent consent decree with juries caused by a defective Takata Fiat Chrysler Automobiles seeks to WASHINGTON — Fiat Chrysler dealers stand to lose whether new or used.” airbag in a Honda Accord he had punish and remedy the automaker’s incentive dollars from the automaker if they sell used It’s illegal to sell new cars with open recalls, but no bought secondhand. safety shortcomings while also ad- cars with open, unrepaired recalls under a new policy such law exists for used cars. Federal and state lawmakers dressing recall issues vexing the en- ordered by U.S. regulators. Dealer groups have opposed recent legislation intro- have proposed several bills to close tire auto industry. The policy is outlined in the 36-page consent agree- duced to ban the sale of used cars with unrepaired re- that loophole in the past year, but The agreement and its record- ment between Fiat Chrysler and the National Highway calls. The National Automobile Dealers Association said one they have faced resistance from setting $105 million penalty Traffic Safety Administration, imposed July 24 for viola- such bill recently proposed by U.S. Sen. Richard Blu- dealers and industry lobbyists who stemmed from a NHTSA probe into tions of U.S. auto safety laws tied to 23 FCA recalls. menthal, D-Conn., would diminish the value of millions consider it too burdensome. violations that occurred in 23 Fiat According to the agreement, FCA US must “develop of used cars and ground vehicles recalled for minor com- NHTSA will make FCA ease that Chrysler safety recalls since 2009. and implement a process to deter dealer sales of un- pliance issues such as a typo in an owner’s manual. burden, ordering it to lead an effort But the terms of the pact, especially remedied vehicles subject to a recall.” That will include Details of how the policy will work are still unclear. A to compile recall data — based on its list of nearly 30 “performance ob- training to reinforce FCA’s existing policy against sell- Fiat Chrysler spokesman said the automaker was still vehicle identification numbers — ligations,” also are designed to ing cars with open recalls. It also calls for “imposing a developing the policy in the days after the consent from other automakers to be made spread and cement the lessons of financial penalty … and/or prohibiting any dealer order with NHTSA was announced last week and said available for bulk recall searches, a recent safety crises involving General from receiving any incentive from FCA US, if the dealer dealers would be briefed when it was finalized. key need for dealers seeking to Motors, Takata and Honda. sells an unremedied recalled vehicle regardless of Ryan Beene check their used-car inventories for “It doesn’t have any teeth with recalled cars. other OEMs, but what it’s trying to issues. That represents a deeper with Toyota. We have tried to take the enforcement area by requiring Another provision bars FCA from do is set up a model or a standard level of scrutiny than similar con- the best of what we learned from this independent monitor to do a postponing a decision about of behavior within the industry,” sent orders imposed on GM and every one of these and continue to lot of the legwork that NHTSA can’t whether to issue a recall until it said Clarence Ditlow, executive di- American Honda Motor Co. in the last improve each one of these ac- do itself because it doesn’t have the finds a root cause or a proposed fix. rector of the Center for Auto Safety 18 months. tions.” person-power to do it,” said Allan That was a factor in both the GM here and a vocal critic of Fiat “What you’ve seen is an evolu- That approach may help NHTSA Kam, a former NHTSA enforcement switch and Takata airbag cases. Chrysler recently. tion of the consent orders to try satisfy some of the public demand attorney and safety consultant. Under the deal, Fiat Chrysler Central to the pact is a top-to- and get more and more future safe- for tougher safety standards and For example, the deal calls on must help improve recall participa- bottom revamp of FCA’s current re- ty,” NHTSA Administrator Mark enforcement, even as legislative ef- FCA to impose penalties, such as tion industrywide. It will be recall and defect practices, a process Rosekind told reporters last week. forts to strengthen auto-safety laws withholding incentives, on dealers quired, for example, to develop and that will be overseen by an inde- “What started in GM with some in- and boost regulators’ resources lan- that sell unrepaired recalled vehi- “scientifically” test options for mak- pendent monitor who will report to dependent oversight has clearly guish in Congress. cles, new or used. (See inset box) ing recall notifications more effec- NHTSA and will have broad author- evolved now to having a monitor, “This may be a way for NHTSA to That’s aimed squarely at tightening tive. ity to hire staff and investigate safety which was used by DOJ previously leverage its limited manpower in the so-called used-car loophole that From Automotive News

Nonproﬁ ts: Tell your story to the business community at a discounted rate!

Put your organization in front of Detroit’s business and philanthropic leaders. J Published and distributed Buy a spread and in the Oct. 26 issue of Crain’s, be featured as a positioning the nonprofit profiles “Nonproﬁ t of Note” in in front of business owners, CEOs, presidents and top-level executives. one of Crain’s Detroit J The digital edition will be Business weekly available for an entire year newsletters. on CrainsDetroit.com Only 19 available. BONUS DISTRIBUTION: J 750 distribution to wealth managers and estate/ trust attorneys in Southeast Michigan J 800 additional copies will be distributed at the AFP annual Philanthropy Day Dinner

Publication Date: Oct. 26, 2015 | Profile Reservation Deadline: Aug. 14 | Profile and Ad Materials Due: Aug. 28 CONTACT: Marla Wise at [email protected] or (313) 446-6032 *At the time of publishing 20150803-NEWS--0019-NAT-CCI-CD_-- 7/31/2015 6:10 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 19 Suppliers speed their quest for software talent

By David Sedgwick ticular compo- Entsminger, 34, earned his software with a Visteon executive at a party, ously unseen objects. For au- Crain News Service nent, Juliussen chops as a video game developer and Entsminger joined the company. tonomous vehicles, the biggest prob- Software is king. said. special effects editor for the movie in- While infotainment accounts for lem on city streets is a vehicle or ob- Now that smart cars can evade As suppliers dustry. the lion’s share of a vehicle’s software, ject that the computer can’t identify road obstacles, display 3-D maps and beef up their soft- Now, he’s working on a new graph- collision avoidance generates the sec- and thus cannot anticipate. The solu- respond to voice commands, the software develop- ic display for a concept cockpit that ond biggest chunk of code. Because tion: Let each vehicle consult a central ware and electronics hardware for ment, the hunt may, among other things, feature 3-D it’s a safety technology, some au- supercomputer, which identifies the these features can cost more than a for software tal- images, perhaps even holograms. tomakers prefer to develop portions obstacle by analyzing millions of im- vehicle’s raw metal. ent has taken on Before he joined Visteon, of the software in-house. But even ages transmitted from other cars. According to an estimate by South- Kyle Entsminger: the urgency of a Entsminger ran his own Dallas-based companies such as BMW and Volvo While infotainment and collision field-based IHS Automotive, the price Background in video gold rush. video game company, Perpetual FX don’t write all their software. Which avoidance require the auto industry’s tag for a vehicle’s software can range games, special To cope with Creative. Entsminger developed ex- is why more than 70 percent of most cutting-edge software, the en- from $350 to $1,050. effects. the software engi- pertise in gesture control when he de- chipmaker Nvidia’s 9,500 employees tire vehicle is getting smarter. The electronics hardware — that is, neer shortage, signed the “Alien Monster Bowling are engineers — most of them soft- By 2020, sales of semiconductors the computer chips, displays and user suppliers such as Van Buren Town- League” game for Nintendo. But his ware developers. for “body and convenience” (i.e. ad- controls that put this software to use ship-based Visteon Corp. are turning company ran out of money in 2010 One of them is Mike Houston, a justable seats, self-dimming LED — can add another $2,000 to $6,000 to unconventional sources — such as when it produced an ill-fated rodeo 36-year-old senior software engineer headlamps, etc.) will rise 43 percent to a vehicle’s cost, says Egil Juliussen, the movie and video game industries game for some Texas oilmen. who helped “train” Nvidia’s Tegra X1 from 2014, according to an IHS fore- an IHS researcher. — to recruit people such as Innova- Sony eventually shut down that graphics chip, which will power fu- cast. And sales of semiconductors for “Software is the major factor, and tion Manager Kyle Entsminger. project, and Entsminger moved back ture collision avoidance systems. powertrains are expected to jump 40 in some cases the deciding factor” in Before he joined Visteon’s ad- to Detroit, where he had grown up, Houston is an expert in networks percent. That means the industry will an automaker’s decision to buy a par- vanced product design team in 2011, with his fiancée. After an encounter that help computers identify previ- continue poaching software talent. Ⅲ

the information is going after that.” portant principle or business prac- drug manufacturers and whole- class action can be certified under NURSES Mark Griffin, partner at Keller tice at stake. salers had colluded to charge retail- the federal Fair Labor Standards FROM PAGE 1 Rohrback LLP in Seattle and attorney “There certainly have been cases ers higher prices on brand-name Act, when liability and damages are would overtake even the $415 mil- for the nurses, said DMC could get a where one party holds out and goes drugs. Eight of those companies computed for the class based on the lion deal that Apple Inc., Google Inc., credit against its judgment for the to trial, and (some can) get off,” said had settled for more than $700 mil- “average” observed within a statisti- Intel Corp. and Adobe Systems Inc. settlement sums its competitors Larry Saylor, senior principal at Miller lion combined before trial, but a cal sample of plaintiffs. reached earlier this year to settle have already paid. But whatever a Canfield Paddock and Stone PLC who handful of holdouts won a defense The hospital contends that a claims they suppressed wages and judge or jury finds the lost wages specializes in class-action and an- verdict that was upheld by the 7th Supreme Court ruling in favor of mobility through agreements not to were, the damages could be tripled titrust litigation defense. “It may just U.S. Circuit Court of Appeals in 1999. Tyson could require a decertifica- poach or solicit each other’s em- and some additional costs could be be that they’re less risk-averse than In the DMC case, the hospital tion of the class action in the nurses’ ployees. borne by the defendants for any an- the other companies and it doesn’t system also asked Rosen in July to case, and the trial should go on hold That agreement, which went for titrust law violations. reflect on the strength of the case.” consider delaying the trial until the until a ruling comes down some- a final approval hearing in July be- “The allegations are such that, Saylor is not involved in the DMC U.S. Supreme Court can rule on an time next year. Rosen has yet to rule fore U.S. District Judge Lucy Koh in under antitrust law, DMC can be nurse dispute, but pointed to a appeal from Arkansas-based Tyson on that request, but so far a Sept. 15 California, covers more than 64,000 held jointly and severally liable for 1990s class action on behalf of more Foods Inc. trial date is unchanged. Ⅲ software engineers and other tech all of the uncompensated damages than 40,000 pharmacies. This claim The high court agreed in June to Chad Halcom: (313) 446-6796 sector employees over a five-year of the entire conspiracy” if the hos- originally alleged about a dozen hear the Tyson case on whether a Twitter: @chadhalcom period. It is second in size only to an pital goes to trial and loses, he said. employment lawsuit against the Veronica Lewis, a litigation part- federal government that settled in ner at Gibson, Dunn & Crutcher LLP 2000 for $508 million, after 23 years and co-trial counsel for DMC in the in court, according to Bloomberg. lawsuit, said late last week the com- But if the nurses fetch even a frac- pany would not comment on the tion of that at trial, attorneys said, the case. DMC could still end up paying as DMC officials have consistently much or more than all the settling denied colluding with other hospi- hospitals combined in the case. tals on nurse wages in court, but Patricia Nemeth, owner of De- have acknowledged the hospital troit-based employment law firm system used wage and benefit data HEALTH CARE Nemeth Law PC, said wage collusion in third-party surveys or communi- BENEFIT UPDATE claims are fairly rare against em- cation with other hospitals to help ployers, and she was surprised peg its wages to a “median of the when the nurses’ lawsuit market,” while staying first made headlines sever- within its own budget con- al years ago. But the case straints, according to court Presented by: could be instructive for documents. employers who sometimes Attorneys for DMC have seek wage and benefits said in the past that the data from their competi- company is “right on the tors to get a sense of the law” and was not consider- labor market. This might ing its own settlement. 0DNHWKHPRVWRI happen when bargaining Patricia Nemeth: Be that as it may, Rosen with employee unions or Wage collusion in late July ordered both DZHOOQHVVSURJUDP FREE making specific hires. claims fairly rare. sides to appear for a settle- In most cases, she said, ment conference Sept. 14 • Learn about strategies that employers not every employer will volunteer before Layn Phillips, CEO of Califor- are using to lower costs Webinar that information and it’s best if it nia-based Phillips Alternative Dispute Resolution gets exchanged as a ministerial and former federal judge. • Get tips and resources for managing function — not among administra- Attorneys told Crain’s that meeting Wednesday, Sept. 2 wellness programs tors or decision-makers within is likely to be a routine one, before Noon-1 p.m. companies. trial proceedings start the next day. “If it’s done at a lower level of the Nemeth and other attorneys said • Hear from wellness experts on what organization, like an HR generalist going it alone in court when your they have learned over the years talking to their counterparts, that’s co-defendants have settled isn’t al- not anyone making administrative ways foolhardy. Some defendants To register go to decisions and that wouldn’t invite may have less evidence against Powered by crainsdetroit.com/webinars as much suspicion,” she said. “But them than others did, or have a bet- you’d also need to monitor where ter appetite for risk — or see an im- 20150803-NEWS--0020-NAT-CCI-CD_-- 7/31/2015 4:47 PM Page 1

20 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 GREEKTOWN FROM PAGE 1

Gratiot Avenue to the north, Randolph Street to the west, East Lafayette Street to the south and the Chrysler Freeway to the east. Test run Business owners said they consider blocking off Monroe Street to cars as a test mission. “We want to first test this to see how it works — see how owners and our Tasso Teftsis: guests like it — Astoria co-owner and then we will wants to test this go from there,” first. said Teftsis, who is co-owner of Astoria Pastry Shop, Red Smoke Bar- beque and the Krema pastry and coffee shop, all in Greektown. All of those establishments feature outdoor dining. In addition to those three restaurants, others including outdoor dining for the next month are Santorini Estiatorio, Pappy’s Bar & Grill, Golden Fleece Restaurant, Plaka Café and Pizza Papalis. Expanding Greektown at Sundown west to Brush would encompass Fishbone’s and Firebird Tavern. COURTESY OF ROCK VENTURES LLC “Hard to believe Greektown has- A fire artist performs on Monroe Street in Greektown, a preview of Greektown at Sundown summer events on weekends through Labor Day. n’t (already) had more outdoor dining,” Gibbs said. ness? Is it increas- dPOP! and Detroit’s Hellenic Museum The overall event series fits in ing some and not of Michigan donated window dis- snuggly with a variety of other exist- all? We have to plays. Eric Perry, an award-winning ing and planned pedestrian-friend- weigh all those photographer, will host his “For- ly urban experiences in Detroit. variables,” he ward” exhibit on the “Slow Roll” There’s the 2.5-acre Campus Martius said. “We want to bike ride in a pop-up gallery at 567 in the downtown core, complete first test this to see Monroe. with live music and pickup basket- how it works, see The combination of live enter- ball games during the warmer how owners and tainment, outdoor dining and other months and food trucks to satisfy our guests like it activities is a plus for Greektown the appetite. and then we will and shows that organizers are help- There’s the planned cousin park go from there.” ing the area move in the right direc- to Campus Martius, a $5 million to The Greektown tion, Gibbs said. $10 million effort Preservation Soci- “I say good for them,” he said. by DTE Energy Co. ety has been in “Smart move.” to create a public talks about the Mark Nickita, co-founder and 1.5-acre park event series — president of Detroit-based architec- across from its LARRY PEPLIN which was an- ture and planning firm Archive DS, headquarters off Eric Larson, CEO of the Downtown Detroit Partnership, says the Greektown project is being done with nounced last week called the sum- of Third Street in comparatively little money. — since January, mer event series western down- according to Athi- “a terrific way to town. The park is Red Wings and other ancillary devel- Larson said. na Papas, co-owner of Santorini. engage people Robert Gibbs: expected to fea- opment over 45 city blocks totaling That, he said, makes Greektown at Although the preservation socie- into this histori- Lack of outdoor ture a restaurant; $650 million. Sundown a model that could easily be ty spearheaded the effort, a portion cally prominent dining in Greektown an outdoor café; Also in the works: Making the replicated on certain portions of Mid- of the funding as well as organiza- district.” “hard to believe.” half-field games Capitol Park area more pedestrian town and Capitol Park, for example. tional chores were done by Dan He pointed to of soccer, Frisbee friendly by closing Shelby Street on “It’s flexible,” he said. Gilbert’s Rock Ventures LLC, Opportu- the outdoor seat- and other sports; and entertainment the west side of the park to vehicle National trend nity Detroit and the Greektown Casi- Mark Nickita: “A ing as a key ele- spaces for live music, movies and traffic and narrowing Griswold Street no-Hotel, which Gilbert owns. terrific way to ment of the plan, theater. on the east side to two lanes and Closing the one-block stretch of During Greektown at Sundown, engage people” in giving restau- And then there’s Eastern Market, widening sidewalks, said Robert Gre- Monroe will — however temporary, from 6-9 p.m. there will be live, Greektown. rants with that the local foodie’s paradise of fresh gory, senior vice president of the DDP. however small — give it the feel of mostly acoustic music for diners to feature an advan- produce and specialty food goods. Combine those efforts and oth- other urban pedestrian malls enjoy while eating. In addition, tage. “It becomes critical for a restau- The change at Greektown builds ers into Detroit, and a truly walka- throughout the country, such as the there will be features such as rant or café to identify ways to incor- “around the strengths of that partic- ble downtown seems possible. Kalamazoo Mall, the nation’s first; the strolling cirque performers, interac- porate some type of outdoor seating ular neighborhood, which are “It really is about continuing to 11-block Nicollet Mall in Minneapo- tive art installations (like paint-by- in order to maximize their potential,” restaurants,” said Dan Carmody, find appropriate ways, as Detroit lis; State Street in Madison, Wis.; numbers), character sketch artists he said. president of Eastern Market Corp. “A transitions, to demonstrate that we and the 1.25-mile 16th Street Mall in and chalk artists. Art is being curat- Nickita also said portions of the more creative use of streets is some- need to have walkable, accessible Denver. ed by 1xRUN, a Detroit-based online Harmonie Park area, Capitol Park and thing we need more of in the metro- urban environments,” said Eric Lar- Some of the things Teftsis and art retailer run by Inner State Gallery Grand Circus Park downtown, as well politan area, especially in Detroit.” son, CEO of the Downtown Detroit other members of the preservation in Eastern Market. as Canfield Street in Midtown and There are also planned pedestri- Partnership and founder, president society will evaluate when deter- Supporters Bagley Street in Mexicantown, could an-friendly and walkable areas fold- and CEO of Bloomfield Hills-based mining whether to bring Greektown be well served by becoming more ed into the Ilitch family’s The Larson Realty Group. at Sundown back in the future are Restaurant patio furniture was consistently pedestrian-friendly. Ⅲ District, the family’s name for the What is unique about the Greek- public safety, as well as the event se- donated by IKEA, and Shinola/Detroit Kirk Pinho: (313) 446-0412 sprawling planned development of town project is that it is being done ries’ impact on their bottom lines. LLC donated three bike racks. IKEA, Twitter: @kirkpinhoCDB a new hockey arena for the Detroit with comparatively little money, “Is it increasing everyone’s busi- commercial interior design firm Natalie Broda contributed to this report 20150803-NEWS--0021-NAT-CCI-CD_-- 7/31/2015 4:48 PM Page 1

CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 21 NAGLER CRAIN’S FROM PAGE 3 DETROIT BUSINESS www.crainsdetroit.com included a three-week trip to Spain. Editor-in-Chief Keith E. Crain So at age 43, in 1983, Nagler sold his Group Publisher and Editor Mary Kramer, (313) 446-0399 or [email protected] muffler business and opened his Associate Publisher Marla Wise, (313) 446-6032 photography shop. or [email protected] Executive Editor Cindy Goodaker, (313) 446-0460 Over the next 32 years, Nagler, or [email protected] now 75, wrote a column on photog- Managing Editor Jennette Smith, (313) 446-1622 or [email protected] raphy for the weekly Observer & Ec- Director, Digital Strategy Nancy Hanus, (313) 446- centric newspaper chain and had 1621 or [email protected] Managing Editor/Custom and Special Projects six books on photography pub- Daniel Duggan, (313) 446-0414 or lished. He still teaches classes at [email protected] Schoolcraft College Assistant Managing Editor Kristin Bull, in Livonia and (313) 446-1608 or [email protected] gives seminars in the Upper Penin- Senior Editor/Design Bob Allen, (313) 446-0344 sula and at Interlochen Center for the or [email protected] Senior Editor Gary Piatek, (313) 446-0357 Arts in northern Michigan. or [email protected] During the 2008 recession, annual Research and Data EditorSonya Hill,(313) 446-0402 or [email protected] revenue at Nagler Fine Art dropped. Web Producer Norman Witte III, (313) 446-6059 It had been growing at 20 percent a or [email protected] Editorial Support (313) 446-0419; YahNica Craw- year and peaked at $360,000, said ford, (313) 446-0329 Mickey Nagler, adding that revenue Newsroom (313) 446-0329, FAX (313) 446-1687 , could come back to that amount this TIP LINE (313) 446-6766 year. REPORTERS Besides his wife, Nagler employs COURTESY OF BEAUMONT HOSPITAL-WAYNE Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. a graphic designer and an office Beaumont Hospital-Wayne has purchased more than 200 photographs over the past six years, CEO Eric Widner said.Among them (313) 446-0325 or [email protected] manager. The Naglers also count is this Monte Nagler panoramic view of Detroit. His works “resonate with patients and staff,”Widner said. Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] Simon, a border collie, as the official Tom Henderson Covers banking, finance, tech- company greeter. “When I am out photographing, I decorating the walls. It was better nology and biotechnology. (313) 446-0337 or [email protected] An average piece of health care am always thinking health care,” he than a sterile wall, but people react Kirk Pinho Covers real estate, higher education, art, matted and framed, could run said. “Would it relax a patient? A to … familiar things,” Weiner said. Oakland and Macomb counties. (313) 446-0412 or [email protected] $400 to $600. Larger ones for hospi- photographer needs to picture what “When they see a lighthouse in Bill Shea, enterprise editor Covers media, advertising and marketing, the business of tals, framed in glass, could run motivates him or her.” western Michigan, they say, ‘I was sports, and transportation. about $1,200. Photographs also can Recently, Nagler sold about 35 there on vacation!’ and that brings (313) 446-1626 or [email protected] St. Joseph Mercy Oakland Lindsay VanHulle, Lansing reporter. (517) 657- be mounted on aluminum or pictures to back positive memories.” 2204 or [email protected] acrylic backing, he said. Hospital in Pontiac for a new eight- Dustin Walsh Covers the business of law, auto ‘Serene concepts’ suppliers, manufacturing and steel. (313) Nagler also sells photographs to story patient tower. 446-6042 or [email protected] Art Van Furniture, Barnes & Noble, At Beaumont-Wayne, CEO Eric Sherri Welch, senior reporter Covers nonprofits, St. Joseph healing arts services, retail and hospitality. (313) other companies and dozens of Widner said he became familiar with 446-1694 or [email protected] hospitals in Michigan and around St. Joseph CEO Jack Weiner said Nagler 10 years ago. Widner originally ADVERTISING the world. the hospital’s healing arts program purchased ceiling photographs for Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Technology changes is integrated into its overall effort to the hospital that patients could look Sales Manager Tammy Rokowski improve the quality and outcome of up at while lying down for an MRI. Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine For years, Nagler used a Linhof patient care. “As we have upgraded and reno- Grace, Joe Miller, Sarah Stachowicz Technika IV camera that uses 4-by- Early last year, St. Joseph Mercy vated, we use Monte’s photographs Classified Sales Manager Angela Schutte, (313) 5-inch sheet film. He would set up Oakland opened a $135 million in our departments,” he said. “His 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 the heavy camera on a tripod, get Monte south patient tower with 136 staffed work is exceptional, capturing serene Audience Development Director Eric Cedo under a black cloth, put the 4-by-5 Nagler’s private rooms — and more than 200 concepts that resonate with patients Events Manager Kacey Anderson plate on and start shooting away. 18-foot pieces of art, all from Michigan- and staff.” Creative Services Director Pierrette Dagg canvas hangs Senior Art Director Sylvia Kolaski He still has hundreds of high-quali- based artists including Nagler. Over the past six years, Widner Marketing Coordinator Ariel Black ty pictures from that camera. at Beaumont Weiner said the 301,000-square- said, the hospital has purchased more Special Projects Coordinator Keenan Covington “When we began our health care Hospital-Troy. foot wing was designed as a safe than 200 photographs for the emer- Sales Support Suzanne Janik, YahNica Crawford Editorial Assistant Nancy Powers program, I had lots of color photo- and calm “healing environment” gency department and cardiac Production Manager Wendy Kobylarz graphs,” he said. “The 4-by-5 camera for patients and families and to fea- catheter lab, and a 6-by-16-foot pho- Production Supervisor Andrew Spanos has such good quality, we can use it ture some of the most cutting-edge tograph covers the entire wall of the CUSTOMER SERVICE for very large pictures in hospitals.” COURTESY OF MONTE NAGLER FINE ART LLC medical technologies possible. west entrance of the outpatient lobby. Main Number: Call (877) 824-9374 Now, Nagler is all-digital and uses “There is a tremendous amount “We have a panoramic view of or [email protected] Subscriptions $59 one year, $98 two years. Out of two cameras — a Canon 5D Mark 3 Nagler has an 89-foot wall mural of literature about impact of envi- the Detroit River, from Windsor fac- state, $79 one year, $138 for two years. Outside with 51-megapixel quality and a in the entrance of Henry Ford Hospi- ronment on the healing process,” ing Detroit,” Widner said. “He shot it U.S.A., add $48 per year to out-of-state rate for sur- face mail. Call (313) 446-0450 or (877) 824-9374. Canon 5D original version that has tal in Detroit, an 18-foot-tall canvas Weiner said. “The shapes, configu- in color, but we had it converted to Single Copies (877) 824-9374 been converted into an infrared at Beaumont Hospital-Troy and re- ration of design, color, lighting, art, black and white. It is very striking.” Reprints (212) 210-0750; or Lauren Melesio at [email protected] camera for special photos. cently installed 72 photographs in sound, all the visual acuities go to- Nagler said some of his favorite To find a date a story was published (313) 446- “We get calls to blow up pictures the surgery areas at Beaumont Hospi- gether to create an environment themes cover waterfalls, forests, 0406 or e-mail [email protected] tal-Wayne Crain’s Detroit Business is published by to 15 and 26 feet. The digital cam- , the former Oakwood An- where people feel they can heal, mountains and gardens. Crain Communications Inc. eras give us high quality,” he said. napolis Hospital. both overtly and subconsciously.” Mickey Nagler said many studies Chairman Keith E. Crain For example, St. Joseph’s seventh and articles have been published President Rance Crain floor houses its joint and orthopedic about how the imagery in photo- Treasurer Mary Kay Crain INDEX TO COMPANIES Executive Vice President/Operations William A. Morrow These companies have significant mention in this week’s Crain’s Detroit Business: services, featuring art that illustrates graphs or paintings can physiologi- rejuvenation, movement, sports and cally affect people. Executive Vice President/Director of Strategic 1000 Degrees Pizzeria ...... 11 Mod Pizza ...... 11 Operations Chris Crain the outdoors. On the other hand, the “It becomes a positive distrac- Executive Vice President/Director of Corporate Archive DS ...... 20 Monte Nagler Fine Art ...... 3 Operations KC Crain Armada Real Estate ...... 12 Nemeth Law...... 19 oncology floor portrays more reflec- tion,” she said. “You start focusing Vice President/Production & Manufacturing Beaumont Hospital-Royal Oak ...... 14 Northland Investments...... 12 tive-type art, he said. in on the art and are less focused on Dave Kamis Beaumont Hospital-Wayne ...... 3 O’Connor Realty Detroit ...... 13 “The combination of arts, sounds (the procedure). Your heart rate Chief Financial Officer Thomas Stevens Blaze Pizza ...... 11 Original Equipment Suppliers Association ....17 Chief Information Officer Anthony DiPonio Carlson, Gaskey & Olds ...... 9 Outfront Media ...... 4 and technology helps us drive per- goes down, and less medications G.D. Crain Jr. Founder (1885-1973) Detroit Lions ...... 7 PACE of Southeast Michigan ...... 15 formance,” Weiner said, noting that are necessary. Brain tests have Mrs. G.D. Crain Jr. Chairman (1911-1996) Detroit Medical Center ...... 1 Pie Five Pizza...... 11 patient falls at the hospital have been shown you have less anxiety.” Editorial & Business Offices Downtown Detroit Partnership ...... 20 Pieology Pizzeria ...... 11 1155 Gratiot Ave., Detroit MI 48207-2732; cut 60 percent and that patients re- Weiner said that to relax, he often (313) 446-6000 Eastern Market ...... 20 Project Pie ...... 11 cover from illness quicker. goes out into the St. Joseph Mercy Cable address: TWX 248-221-5122 AUTNEW DET Fiat Chrysler Automobiles ...... 18 St. Joseph Mercy Oakland Hospital...... 21 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Gibson, Dunn & Crutcher ...... 19 Skidmore Studios ...... 5 “We get lots of comments: It does- lobby — where there is a waterfall, published weekly, except for a special issue the Gibbs Planning Group ...... 1 Stokas-Bieri Real Estate ...... 11 n’t feel like a hospital,” he said. “They calming music and artwork. third week of October, and no issue the fourth Greektown Preservation Society ...... 1 Summit Commercial...... 12 week of December by Crain Communications Inc. Howard & Howard ...... 13 Team Schostak Family Restaurants ...... 12 say it feels like a hotel. They tell us Nagler said hospital administra- at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- odicals postage paid at Detroit, MI and additional Just Baked ...... 6 TI Automotive ...... 5 they feel good when they are here.” tors tell him patients leave sooner in mailing offices. POSTMASTER: Send address Keller Rohrback ...... 19 Tubby’s ...... 6 The veteran hospital administra- a healthier state of mind and body. changes to CRAIN’S DETROIT BUSINESS, Circula- tion Department, P.O. Box 07925, Detroit, MI Lamar Advertising ...... 4 U.S. Medical Management ...... 15 tor said hospitals need to focus on “Proper art, music, lighting,” he Little Caesars Pizza...... 11 University of Michigan ...... 6, 14 48207-9732. GST # 136760444. Printed in U.S.A. improving their look. said, “saves them money.” Ⅲ Entire contents copyright 2015 by Crain Commu- Michigan Department of Natural Resources.... 3 University of Michigan Hospital...... 14 nications Inc. All rights reserved. Reproduction or Miller Canfield Paddock and Stone ...... 19 Vitamin Health ...... 9 “Twenty years ago, we would buy Jay Greene: (313) 446-0325 use of editorial content in any manner without a bunch of posters and say we were Twitter: @jaybgreene permission is strictly prohibited. 20150803-NEWS--0022-NAT-CCI-CD_-- 7/31/2015 6:16 PM Page 1

22 CRAIN’S DETROIT BUSINESS // AUGUST 3, 2015 ON THE WEB RUMBLINGS WEEK JULY 27-31 Detroit Digits Woodward Ave. Village’s police reservist Riverfront Ⅲ Doctors Hospital of Michigan in A numbers-focused look at the Pontiac filed for Chapter 11 bank- Towers week’s headlines: ruptcy protection. Hospital offi- program draws biz leaders cials said they plan to keep the 47- apartment bed facility open. edia reports surrounding MLive.com reported. 454 Ⅲ A new study by Consumer a police reservist program David Harvey, director of the Michi- gan Commission on Law Enforcement buildings for sale Number of streetlights workers Reports indicates that most hospi- M in the small Saginaw Standards are installing along Jefferson tals in Southeast Michigan scored County village of Oakley continue that oversees police depart- he recently renovated Avenue between Grosse Pointe poorly on their ability to control to entangle several local business ments across the state, told MLive in Riverfront Towers apart- Park and I-375 as part of the patient infections. leaders in a controversy — and larg- July that his agency will be involved Ⅲ Lazlo LLC T ment buildings, with 557 Detroit Public Lighting Authority’s , a Corktown-based er discussion — over guidelines for in any new law that more clearly de- units in two high-rises overlooking residential street lighting program. startup founded by Detroit siblings such programs. fines reserve office standards. the Detroit River off Jefferson Av- Christian and Kathryn Birky, is get- The names of 150 people, many enue, are up for sale. An asking ting ready to launch a sustainable of them recognizable from Detroit’s Transformed UM library price is not listed for the buildings, $1.985 men’s clothing line manufactured business community, were released which are owned by Riverfront and sold by former prison inmates. after a court battle over the village’s reopens after two years Tower Holding LLC, controlled by a Ⅲ Crossroads Town Center, a resistance to make public the list of The $55 million University of group of private New York City in- million 102,275-square-foot shopping applicants who have donated Michigan’s Taubman Health Sciences vestors. The Troy office of Berkadia The high bid in the recent online center in Howell, was sold for $8 money to Oakley in return for re- Library will reopen Monday after is the broker handling the new list- auction for Bert’s Warehouse in million by Cincinnati-based Viking serve officer status. two years of renovations. ing. Eastern Market. The winning Partners LLC to Cincinnati-based Among those on the list: Located on UM’s medical school bidder was not identified, though Phillips Edison Grocery Center REIT II Matt Cullen, president of Rock campus, the 143,400-square-foot ON THE MOVE real estate adviser Ryan Snoek Inc. Ventures LLC; Van Conway, president, Taubman library has been trans- said he or she is “not local.” Ⅲ Troy-based Delphi Automotive CEO and senior managing director formed into an all-digital learning Ⅲ After weeks of speculation plc agreed to buy United Kingdom of Birmingham-based Conway space for future physicians, scien- about the direction of the team’s cabling-gear maker HellermannTy- Mackenzie Inc.; singer Robert “Kid tists and other health professionals. future, the Detroit Tigers traded 75,000 ton Group plc for $1.7 billion, Rock” Ritchie; Luciano Del- The library features ace starting pitcher David Price to Bloomberg reported. Signore, owner of Bacco Ris- dozens of classrooms, the Toronto Blue Jays for young Square footage of new Masco Corp. torante in Southfield; and meeting rooms and high- headquarters in Livonia, which will pitchers Daniel Norris, Matt Boyd OTHER NEWS Birmingham casino devel- tech simulated clinic. and Jairo Labourt. Price, 29, is eligi- open next year. The company is oper Michael Malik. It is the main hub for ble for free agency after this sea- moving from a 400,000-square- Ⅲ Wayne County moved closer Conway told Crain’s that UM’s 780 medical students son. The Tigers also traded relief foot space in Taylor. to state oversight after Gov. Rick he gives the village $1,000 and more than 1,100 gradu- pitcher Joakim Soria to the Pitts- Snyder affirmed the county’s fi- annually and was inter- ate students and postdoc- burgh Pirates for infield prospect to Molina Healthcare of Michigan to nancial emergency status, viewed by the Internal Rev- toral fellows in the schools JaCoby Jones. meet state solvency rules, is offer- Bloomberg reported. The confir- enue Service criminal inves- Van Conway: It’s of public health, dentistry, Ⅲ Maria Thompson was named ing hundreds of employees volun- mation came after Snyder said he tigation unit over the about charity – pharmacy, social work, chairwoman of Detroit-based tary separation from the company agreed with a state review team. reservist issue. nothing more. nursing and kinesiology. nonprofit NextEnergy, which pro- as part of its reorganization. Ⅲ Oak View Hall, the $30 million He said no laws have A gift from the late motes advanced energy technolo- Ⅲ The Detroit Lions put single- Oakland University student housing been broken, and he was unaware shopping mall developer A. Alfred gies and businesses. She replaces game tickets for the preseason and complex that opened last year, re- of the number of other reservists. Taubman in 1977 helped fund the Robert Buckler, now chairman regular season on sale entirely ceived the second-highest award “I’m extremely charitable; a lot of original construction of the library. emeritus. Thompson is entrepre- through the team’s Flash Seats pa- for green building certification those efforts support law enforce- Before his death earlier this year, he neur-in-residence in the Ann perless digital ticketing system. from the U.S. Green Building Council. ment. That’s all there is to it,” Con- provided input to the renovation Arbor office of Winter Park, Fla.- Meanwhile, the Lions and the De- Ⅲ Karpinski’s, once a thriving way said. “The money goes to the planning. based venture capital firm Arsenal troit Sports Commission made their family-owned restaurant and bar village of Oakley. … A few friends Construction teams used 1,700 Venture Partners. Named to the pitch to have the 2019 college foot- along the I-75 service drive in De- and I went through the training. It tons of concrete, recycled 1,780 NextEnergy board were Lizabeth ball national championship game troit with roots tracing to 1925, was part charity, part camaraderie. tons of material and installed more Ardisana, principal owner and CEO at Ford Field as game executives vis- was demolished. The building The implication is that we’ve done than 67 miles of data cable. of ASG Renaissance; Patti Glaza, ited the stadium and nearby area. had been for sale since the restau- something wrong. We haven’t.” The project was designed by TMP vice president of Invest Detroit; and Ⅲ Officials announced the relo- rant closed in 1999. Conway said he hasn’t resigned Architecture and Ballinger Architec- Eri Shreffler, managing director for cation of Detroit-based Real Times Ⅲ Comerica Bank’s Michigan his reservist position because there ture and Engineering and constructed the automotive office at the Michi- Media and the Michigan Chronicle Economic Activity Index in May was nothing illegal about it. The De- by the Christman Co. gan Economic Development Corp. newspaper to a new corporate had its strongest monthly gain troit Free Press in March reported Ⅲ Alison Davis-Blake is stepping headquarters in the Paradise Val- since 2005, growing 3.3 percent- that Oakley reservists each pay Detroit Future City launches down as dean of the Ross School of ley section of downtown Detroit age points to 124.8. $1,300 for a uniform, gun and ar- Business at the University of Michi- at 1452 Randolph St. Ⅲ The government says $13 mored vest. search for future leader gan. Davis-Blake, 56, recently told Ⅲ Chinese supplier YFS Automo- million to $14 million has been re- “There’s not one example of any Detroit Future City has launched colleagues at UM that she would tive Systems Inc. plans to build a covered so far from Farid Fata, the of us using the badge in the wrong a search for a new executive direc- be leaving effective June 30, 2016. 150,000-square-foot manufacturing former Oakland Township cancer way,” Conway said. “So, here we are, tor, a search which will be led by Ⅲ Allyson Martinek, co-host of facility on 30 acres of vacant indus- doctor sentenced to 45 years in a year after this mess started and Los Angeles-based The Hawkins Co. the “Blaine & Allyson in the Morn- trial property in Detroit to design, prison after giving unnecessary what do we have? We’ve got a village In June, the organization an- ing” show on Detroit’s WDVD 96.3 test and manufacture automotive treatments to patients, AP report- with a bunch of respectful, high- nounced its intentions to become FM, is no longer with the station, fuel system components. ed. profile reservists. Isn’t there more an independent nonprofit and that owned by Atlanta-based Cumulus Ⅲ Columbus, Ohio-based Hunt- Ⅲ State employees can’t be important things to worry about?” Ken Cockrel Jr. was stepping down as Media Inc. The circumstances of ington Bank will add $5 million in forced to pay labor unions for ne- Cullen said be believed his dona- executive director of its implemen- her departure were unclear. new funding to a microloan pro- gotiating contracts and providing tion of about $1,000 was a charita- tation office. gram collaboration with the Michi- other services, the Michigan ble donation, and he never received The organization had been COMPANY NEWS gan Economic Development Corp. Supreme Court said via AP. a uniform or weapons training, he sponsored by the Detroit Economic and expand the pilot program in told the newspaper. Cullen, one of Growth Association. In 2013, the Ⅲ Post-bankruptcy Chassix Hold- Detroit to include all of Wayne OBITUARIES Dan Gilbert’s key lieutenants, told DFC released its strategic frame- ings Inc. has $300 million of exit fi- County; Macomb, Oakland, Liv- The Saginaw News last month that work, a long-term blueprint for city nancing from PNC Bank and some ingston and St. Clair counties; the Ⅲ Harry Gast, a Republican he returned his badge. and neighborhood revitalization. previous secured bondholders, and Lansing area; and the state’s west from Berrien County who served The village, which has fewer than Detroit Future City plans to com- a board of directors that includes side. in the Michigan Legislature from 290 residents, attempted to keep the plete its transition to nonprofit sta- veterans of the local auto supply Ⅲ Capitalizing on the move- 1971 until 2002, died July 30. He names secret after a bar owner tus by December. The Kresge Foun- chain, the Southfield-based suppli- ment to convenient outpatient was 94. sought the reserve officers’ identities. dation, the largest funder of the er said. Chassix filed for Chapter 11 care, Detroit-based Henry Ford Ⅲ John Lobbia, former presi- No one on the list lives in Oakley. DFC, recently approved another reorganization in March. Health System plans to open its dent, CEO and chairman of De- The police department lost its $1.2 million to continue its opera- Ⅲ Flint-based HealthPlus Insur- first QuickCare medical clinic this troit-based DTE Energy and Detroit Michigan Municipal League insurance tion. For details, see detroitfu- ance Co., selling part of its business week in the Grinnell Building at 1515 Edison, died July 24. He was 74. over the situation in 2014, turecity.com/news. DBpageAD_DBpageAD.qxd 7/27/2015 2:21 PM Page 1

Your business deserves the best network.

Buy a smartphone. Get $200. Until August 31st. New 2-yr. activation on $34.99+ plan req’d. $200 account credit applied within 2-3 billing cycles.

findmyrep.vzw.com

Bill Credit will be removed from account if line is suspended or changed to non-qualifying price plan after activation. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee/line. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. © 2015 Verizon Wireless. I7824 DBpageAD_DBpageAD.qxd 7/29/2015 1:03 PM Page 1

7-23-15 | 10:14 AM | GMRENCEN, NORTH LOBBY

CHRIS LAMBERT IS REFLECTING A NEW DETROIT. NEIGHBOR. LEADER. DETROIT REBUILDER.

CHRIS IS A MODEL CITIZEN. But maybe “re-modeling citizen” is more apt. &KULVLVWKHIRXQGHURI/LIH5HPRGHOHGWKHQRQSURƓWYROXQWHHURUJDQL]DWLRQ WKDWōVGHGLFDWHGWRUHYLWDOL]LQJVFKRROVDQGWKHLUVXUURXQGLQJFRPPXQLWLHVLQ Detroit. This summer, they’re taking on Osborn High School, and from August ŊPRUHWKDQYROXQWHHUVDUHEDQGLQJWRJHWKHUWRFOHDQXS square miles of the neighborhood. You can be a re-modeling citizen, too. To YROXQWHHUFDOO/LIH5HPRGHOHGDW313-744-3052RUYLVLW liferemodeled.com. GMRENCEN is celebrating the spirit and vision of the people of Detroit. /HDUQPRUHDWUHŴHFWLQJGHWURLWFRP

#REFLECTINGDETROIT