Three Outlet Mall Plans in Battle Over Anchors

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www.crainsdetroit.com Vol. 30, No. 23 JUNE 9 – 15, 2014 $2 a copy; $59 a year

Page 3 It only takes two Mt. Pleasant electronics Three outlet mall plans signatures to pay recycler seeks space out $1 million in state business in battle over anchors incentives. Is that ... Golf grip maker gets ahold Developers take to land, sea, air to woo retailers Efficient or of one, as sales take flight BY SHERRI WELCH Birmingham-based Center Man- CRAIN’S DETROIT BUSINESS agement Services Inc. and Cincin- Survey finds biz bracing for 7% nati-based Jeffrey R. Anderson Real jump in health care costs There’s not just one new outlet Estate Inc. are developing the Out- shopping center planned for metro lets of Southeast Michigan in too little Detroit — there are three. Chesterfield Township on the east CRAIN’S And the race is on to see which side of I-94, north of M-59, on land MICHIGAN BUSINESS project will be able to land the retail they purchased four years ago. anchors needed to launch construc- And Baltimore-based Paragon tion first. oversight? COURTESY OF NEW ENGLAND DEVELOPMENT Outlet Partners LLC is under con- Last week, Newton, Mass.-based tract to purchase about 50 acres of New England Development plans to BY CHRIS GAUTZ New England Development made news build an outlet center near Detroit land in Canton Township at I-275 CAPITOL CORRESPONDENT when it announced plans to con- Metropolitan Airport. and Ford Road for a center totaling struct a 325,000-square-foot outlet 375,000 square feet of retail space. ince 2011, more than $65 mil- center in Romulus near Detroit Metropolitan Airport. This project is scheduled to open in summer 2016. lion in state funds have been But outlet center projects are also quietly coming Although one of the project developers — the air- Sawarded to businesses Vapor chase: Firms take up together in two other metro Detroit communities, around the state with the signa- Canton Township and Chesterfield Township. See Outlets, Page 30 tures of just two individuals — in the growing e-inhaler habit fact, most business incentives are approved that way. Second Stage An expedited approval process dubbed “delegated authority” al- Salute to Entrepreneurs: The lows Michael Finney, president and CEO of the many faces of success, Page 21 Michigan Economic From zero to 20,000 Development Corp.; This Just In state Treasurer How one man’s vision is bringing thousands to the streets of Detroit. Story on Page 32 Kevin Clinton or Hilfinger leaves MEDC post, his designee; and Mark Morante, returns to Foley & Lardner the interim Michigan Economic Develop- strategic fund ment Corp. COO and Execu- manager, to approve incentives tive Vice President Steve Hil- Finney finger is leaving Friday to of $1 million or return to Foley & Lardner LLP, less, as long as the law firm he left for an ap- two of them sign ON THE WEB pointment by Gov. Rick Sny- off. Businesses A database of der in 2011. MEDC incentives Hilfin- have been award- approved ger, 52, of ed 129 projects since 2011, Beverly under delegated crainsdetroit. Hills, will authority since com/medcdata be in the 2011, compared firm’s De- with 89 projects troit office, approved in public meetings by where he the Michigan Strategic Fund board. was man- “The whole idea is to keep projects moving as efficiently as possi- Hilfinger aging partner before ble,” Finney said. Delegated au- becoming director of the De- thority can shave off a few days to partment of Licensing and Regu- a month of approval time, depend- latory Affairs. He moved to the ing on where it falls between the MEDC in December 2012. Strategic Fund board’s monthly Hilfinger helped found the meetings. Detroit office in 2000, and will Delegated authority is similar to be a partner in Foley’s trans- policies in companies that require actional and securities prac- fewer signoffs on relatively small- tice. — Chad Halcom See MEDC Page 31 ANTHONY BARCHOCK

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Page 2 CRAIN’S DETROIT BUSINESS June 9, 2014

MICHIGAN BRIEFS Grand Rapids transit system replace President Sam Daugherty when he retires June 30. ponders quicker bus line to GVSU Dow helps remove unwelcome abstract expressionism Ⅲ Atlanta-based Newell Rubber- maid said it has opened a 40,000- As the Grand Rapids area’s tran- What would you think if you heard that Dow Chem- Dow experts analyzed ink from the graffiti, then sit system nears completion of the square-foot design center in Kala- ical Co. was going to help restore a coveted painting? identified possible solvents to clean it. Dow scien- Silver Line (Crain’s, May 12) mazoo, which will be staffed by Scrubbing Bubbles? It turns out that research from tists spent two days testing solvents on dried sam- through the heart of the city, The about 100 design professionals the Midland-based company had a hand — and a del- ples of the graffiti ink. Rapid is now pursuing a similar when at full capacity, the Grand icate one at that — in the restoration of a Mark “We were able to narrow it down to a small list of bus rapid transit system connect- Rapids Business Journal reported. Rothko painting, which has been returned to public solvents and microemulsions for consideration in ing downtown Grand Rapids and Ⅲ Flint Community Schools plans display at London’s Tate Modern museum. the Rothko restoration,” Dow scientist Melinda the Grand Valley State University to lay off 250 employees as part of a In 2012, Rothko “Black on Maroon” was damaged Keefe said in a statement. “We sent this list of sol- campus in Allendale, the Grand $10.4 deficit elimination plan, The Rapids Business Journal reported. by graffiti. It took 18 months of conservation work vents to Tate, and their conservation experts added Flint Journal reported. No teach- “Once we have the study com- that relied on analytical information from Dow coat- these to the range of options they were testing in or- ers are included in the list. pleted and have that analysis done, ing material experts to successfully restore it, der to determine the best possible solution: a blend Ⅲ Grand Rapids Community Col- then that will determine how MLive reported. of benzyl alcohol and ethyl lactate.” lege and Grand Valley State University things move forward,” Rapid CEO signed an agreement to make it easier for students to transfer be- Peter Varga said. The so-called bid for exploration rights in 2010, ice melted later than usual, delay- Spaude, who joined the Kalama- tween the two institutions, The As- Laker Line is being sold as a better driving down prices at auction. ing work by about two weeks. zoo-based health system in 2005, and faster connection between the sociated Press reported. said he wants to spend time with two areas. his father, who is critically ill. Find business news from Boaters still trying to get their MICH-CELLANEOUS Ⅲ Mary Kay VanDriel was around the state at crainsdetroit Schuette: Chesapeake Energy sea legs as winter delays season Ⅲ DTE Energy Co. is buying one of named president of the Big Rapids .com/crainsmichiganbusiness. and Reed City hospitals that are Sign up for the Crain’s Michi- That winter we thought would two Pheasant Run wind parks in lied to landowners on leases part of Grand Rapids-based Spec- gan Morning e-newsletter at never end apparently left boaters Huron County in the Thumb from trum Health System. VanDriel will crainsdetroit.com/emailsignup. Oklahoma City-based Chesapeake with a hangover. The Grand a subsidiary of NextEra Energy Re- Energy Corp., already facing antitrust Rapids Press reported that orders sources LLC and will rename it claims in Michigan over bids on gas are stacking up for seasonal dock Brookfield Wind Park, The Associat- exploration rights, was charged and lift installations. Some plans ed Press reported. The park has 44 CORRECTIONS with racketeering and fraud for al- wind turbines. to put boats in the water at mari- Ⅲ An incorrect date for the Walsh College commencement was given in legedly lying to landowners about Ⅲ Grand Rapids-based Mercan- nas also have been delayed. the June 2 edition. It is June 21. Also, an incorrect date was given for the leases it took out on their property, tile Bank Corp. and Alma-based Kevin Zoodsma of Action Water retirement of the keynote speaker, Jeffrey Bergeron. He will retire from Bloomberg News reported. Firstbank Corp. have completed Sports in Hudsonville said more the Detroit office of Ernst & Young LLP at the end of this month. A past The allegations announced by their merger, creating the third- people waited longer to prepare for managing partner of the firm, he is currently senior advisory partner. Michigan Attorney General Bill largest bank based in Michigan. the boating season. Zoodsma said Ⅲ A story on Page M28 of the June 2 issue mistakenly reported that Schuette follow earlier accusa- some pushed back plans until after The merged bank has $2.9 billion Osama Siblani, publisher of The Arab American News, has daughters tions that the company colluded Memorial Day weekend, typically in assets and 53 offices in the state. who were harassed because of political views expressed in that newspa- with a unit of Calgary, Alberta- the start of boating season. At River Ⅲ Borgess Health President and per. Siblani has been harassed for those views, but he does not have based Encana Corp. to divide the Haven Marina in Grand Haven, CEO Paul Spaude plans to retire in daughters. Michigan counties in which they’d owner Dave Lenger said snow and September, MiBiz reported.

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June 9, 2014 CRAIN’S DETROIT BUSINESS Page 3 Electronics recycler seeks space Inside

in Southeast Michigan. full-time jobs by mer General Motors Co. buildings now Plant could Mt. Pleasant-based 3S Internation- the end of the being marketed by the RACER Trust, al LLC, founded in March 2013, has year. but their square footages are “way plans to open a total of six more re- She declined beyond what we need,” she said. create 20-50 cycling centers in metropolitan ar- to say how large In the Michigan plant, there eas in the next 3½ years years after of an invest- could be two recycling machines, opening a 60,000-square-foot plant ment the local each of which could recycle about local jobs in Tinley Park, Ill., about 30 miles plant would be. 14 million pounds of electronics, southwest of Chicago, according to The company which is the current electronics BY KIRK PINHO Gina Yob, vice president of sales does not plan consumption rate of about 6 mil- Atwater wanted to, so now lion people, Yob said. CRAIN’S DETROIT BUSINESS and marketing. Yob new construc- Yob said 3S — whose name tion. Finding an Cellphones, flat-screen TVs, lap- it can — in cans, Page 6 An electronics recycling compa- stands for “safe, secure and sustain- existing building for the plant has top and desktop computers, DVD ny owned by a former Mt. Pleasant able” — is considering locations in proven difficult because 3S needs players, video game consoles and mayor and members of the politi- the tri-county area. It expects to oc- ceilings at least 21 feet high, Yob others are among the items 3S can Company index cally well-known Yob family is try- cupy 40,000 to 80,000 square feet and said. recycle. ing to open its first recycling plant create between 20 and 50 mostly The company has considered for- See Recycler, Page 29 These companies have significant mention in this week’s Crain’s Detroit Business: 3S International ...... 3 ACLU of Michigan ...... 11 AGS Automotive ...... 31 American Iron and Steel Institute ...... 16 Survey: Biz sees Atlas Oil ...... 30 SuperStroke owner Atwater Brewing ...... 6 Dean Dingman Avomeen Analytical Services ...... 25 paid $750,000 for Belfor USA ...... 17 the brand in 2009. Beyond Gaming of Michigan ...... 23 The business is 7% jump in costs Brewery Vivant ...... 6 forecast to post Cascade Engineering ...... 17 $30 million in Center Management Services ...... 1 revenue this year. Children’s Hospital of Michigan Foundation . . . . . 10 for health care Chrysler Group ...... 17 Detroit Economic Growth ...... 24 Detroit Lions ...... 21 BY JAY GREENE DiverseNote ...... 25 CRAIN’S DETROIT BUSINESS Domino’s Pizza ...... 17 Employers in Southeast Michigan project an Dow Chemical ...... 15 acceleration of health care cost increases this Dragonmead Microbrewery ...... 6 year — a 7 percent jump, up from 4 percent in Driven Solutions ...... 33 2013 — as taxes and fees from the Patient Pro- EOS Worldwide ...... 26 tection and Affordable Care Act add to typical Fairpoint Solutions ...... 17 annual inflationary Fresh Corner Café ...... 25 General Motors ...... 17 increases in health George Matick Chevrolet ...... 21 costs, according to SURVEYING COSTS GolfWRX.com ...... 33 McGraw Wentworth’s Projected increases in Hatch Detroit ...... 21 2014 Southeast Michi- employer health care Impact Management Services ...... 26 gan Mid-Market costs Karp & Associates ...... 7 Group Benefits sur- 2014: 7 percent LorAnn Oils ...... 12 vey. 2013: 4 percent Mackinac Center for Public Policy ...... 31 The cost increases Mango Languages ...... 25 for Southeast Michi- Family Mayser Polymer ...... 31 gan employers also monthly 11% McGraw Wentworth ...... 3 ł Michigan Economic Development ...... 1 are higher than na- JOHN SOBCZAK PPO costs tional projections of 2014: $391 Michigan Muslim Community Council ...... 32 5.2 percent. Mister-E-Liquid ...... 12 “We knew that Motus Integrated Technologies ...... 15 Family Perrigo ...... 17 changes related to monthly 5% health reform (taxes ł Plasan Carbon Composites ...... 17 Growth takes hold for HMO costs Prolim Global ...... 22 and fees) would add 1 2014: $308 percent to 5 percent” to Revolve Detroit ...... 24 employer costs this RGIS ...... 17 Percentage of premium SuperStroke ...... 3 year, said Becky costs paid by employee Tomcor North America ...... 17 golf club grip maker McLaughlan, manag- for family PPO coverage Victory Electronic Cigarettes ...... 11 ing director at Troy- 2014: 27 percent Wild Bill’s Tobacco ...... 12 based McGraw Went- 2013: 26 percent worth. SuperStroke sales soar from $700,000 to $15M The Obamacare fees, which began in Percentage of premium BY BILL SHEA and strong finishes by pros using Super- small doses last year, costs paid by employee Stroke grips have turned owner Dean Ding- for family HMO coverage CRAIN’S DETROIT BUSINESS were imposed on man’s $750,000 purchase of the brand in 2009 health insurers and 2014: 25 percent olfers, as a breed, are sometimes into a business forecast to post revenue of Department index employers to pay for 2013: 27 percent known to buy the latest gadgets in des- $30 million this year. subsidies for expand- BANKRUPTCIES ...... 10 Gperation to shave strokes from their In 2009, SuperStroke sold 5,000 grips for game, while equipment makers come and go. ed coverage and create a special fund to protect BUSINESS DIARY ...... 28 $700,000. Last year, it sold 1.5 million grips for insurers from losses for covering sicker pa- CALENDAR ...... 27 If the weekend duffer sees a PGA Tour pro $15 million. using something new to win tournaments, tients with higher costs in the individual mar- CLASSIFIED ADS ...... 29 The success has Dingman, the company’s ket. Insurance companies passed on these costs odds are that equipment manufacturer will KEITH CRAIN...... 8 co-owner and president, planning to move see a payday. to their insured clients and self-insured em- into grips for other clubs. ployers paid the pass-through costs. LETTERS...... 8 That’s held true for Wixom-based Super- MARY KRAMER ...... 11 Stroke, a maker of patented oversized rubber SuperStroke isn’t Dingman’s first foray But McLaughlan said she is surprised that em- grips for putters. A quarter of PGA players in into golf equipment. ployers, in turn, haven’t passed along the federal- OPINION ...... 8 a given week’s tournament are using Super- In the late 1990s, Dingman and his brother, ly mandated fees to employees as much as they OTHER VOICES ...... 9 Stroke grips. Darin, launched a line of low-priced golf clubs PEOPLE ...... 28 Several high-profile PGA Tour victories See Grips, Page 33 See Survey, Page 30 RUMBLINGS ...... 34 STAGE TWO STRATEGIES ...... 26 Just like mother used to make (Yeah, right) WEEK ON THE WEB ...... 34 THIS WEEK @ Lime poached shrimp on avocado mousse and cilantro, topped with tomato relish is just one of the dishes at four restaurants new to downtown Detroit. View a photo WWW.CRAINSDETROIT.COM gallery accompanying “Salad, kabobs and small plates” at crainsdetroit.com.

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Page 4 CRAIN’S DETROIT BUSINESS June 9, 2014 Port Authority eyes Jamian successor by early 2015; jobs will be key priority

BY BILL SHEA CRAIN’S DETROIT BUSINESS

The Detroit/Wayne County Port Au- thority likely won’t have a new executive director in place until Jan. 1, the organization’s board chairman said. Until then, the authority will spend its time concentrating on the summer shipping and tourism season, bringing the five-member board’s two newest members up to speed, and working out what it wants in a new top executive, said NATHAN SKID/CDB Tom Orzechowski, who was elected The port authority’s Public Dock and Passenger Terminal opened in 2011. chairman in May. “We’re kind of a blank slate, and by Congress in 1921, has oversight of on Orzechowski’s list of topics for we can craft it,” he said. seaports, airports, bridges, tunnels, the future. So are increasing the The authority must replace trains and bus lines. number of passenger ships stop- John Jamian, whose three-year Orzechowski also said he’d like ping at the authority’s passenger contract ended May 31. Orze- to start talks with Chevrolet Detroit terminal, and attracting more ves- chowski said he expected the Belle Isle Grand Prix organizers to sels that people come to visit. search to fill the position to begin re-establish the water taxi service The authority in recent years later this year and wrap up with a to the island during the race. completed construction of a $15 hire in place at the start of 2015. million, 21,000-square-foot ship ter- Infrastructure minal and $7.1 million offshore PLATINUM STANDARD New priorities Ferry service to Windsor is also See Next Page Boosting the authority’s eco- FRACTIONAL AND MANAGED BUSINESS AVIATION PROGRAMS. nomic development ability so that SERVING ALL SOUTHEASTERN MICHIGAN. it creates jobs will be a priority under the next FALCON 2000 executive director, said Orze- chowski, the Algonac-based vice president of the Seafarers In- ternational Union’s Lakes and In- Orzechowski land Waters Dis- trict. The union represents U.S. merchant mariners. “We want to develop (the authority) more as an economic engine,” he said. Orzechowski said he wants to see the authority continue its effort to seek legislative permission to finance bond projects away from the CORPORATEEAGLE.COM riverfront, an issue that has drawn political opposition as a confusing and unnecessary replication of services already available in the city. Such a move would require talks to ensure understanding and cooperation from agencies that have expressed opposition, such as the Detroit Economic Growth Corp., Orzechowski said. The port authority currently is IS YOUR DATA SECURE ? permitted to finance projects related to the port facilities or development along the riverfront. For example, it was the conduit for $43 million in bonds issued in IT IS WITH US ! 2004 to aid construction of the Beaubien Place parking garage ad- jacent to the Renaissance Center. Jamian had said fees generated HARD DRIVE / DATA STORAGE by bonds would help offset re- liance on tax dollars. The nonprof- HARD DRIVE DESTRUCTION it port lost $643,000 in 2012. Regional transportation cooperation has been an ongoing topic in Call: 248-891-7330 or Email: [email protected] metro Detroit, and having the authority become part of a transportation hub is something Orze- chowski said he wants to explore. “Are we set up for that right now? The answer is probably no, but I think we can get there,” he said. He cited The Port Authority of New York and New Jersey as a successful example of a regional transportation effort. That organization, authorized 20140609-NEWS--0004,0005-NAT-CCI-CD_-- 6/6/2014 5:01 PM Page 2

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 5

From Previous Page Jamian’s departure private sector businesses in the Port of Detroit and the public sec- DETROIT/WAYNE COUNTY PORT AUTHORITY BOARD MEMBERS wharf to serve cruise ships and Jamian, a former state legislator tor. In this role, the Port Authority other deep-draft vessels in the De- and state and federal official, said The Detroit/Wayne County Port Authority board is composed of two offers assistance in capital fi- members appointed by the mayor of Detroit, two appointed by the Wayne troit River bringing tourists — he’s leaving to work in maritime nance, development, applications County Commission and one by the governor. and their money — to the city. education. His 2011-14 stint running and disbursement of public sector The members are: One local logistics insider said a the authority, which is charged and foundation grant programs.” Ⅲ hard, realistic look at authority with economic development on the Tom Orzechowski, the chairman of the authority board and Algonac- According to port authority sta- based vice president of the Seafarers International Union’s Lakes and must be taken by all stakeholders. Detroit River waterfront and over- tistics, companies contractually Inland Waters District. He was appointed by the county. “There needs to be a major re- sight of the city’s commercial trade use its privately managed port fa- Ⅲ Alisha Bell, a Wayne County commissioner since 2002. Appointed by the assessment of the role, if any, that port, was his second. Jamian was cilities and terminals to manage 17 county. this authority has. What can it do? paid $145,000/year for each year of million tons of cargo annually. Ⅲ Lorron James, vice president of Detroit-based logistics firm James Group What should it do? What shouldn’t it the contract. The authority’s fiscal year 2014 International. Appointed by Mayor Mike Duggan. do?” said John Taylor, associate pro- “John’s departure is almost mu- budget is about $1 million. Ⅲ Jonathan Kinloch, an at-large Detroit Public Schools’ Board of Education fessor of supply chain management tual in a sense. He was moving on to Thirty-one companies operate member. Appointed by Duggan. and chairman of the department of some other things. We as a board at the 29 terminals overseen by the Ⅲ Frederick Hoffman, a former Chrysler executive and state official now of marketing and supply chain man- can’t force him to stay. If anything, authority. The authority owns the counsel in Clark Hill PLC’s Detroit office. Appointed by Gov. Rick Snyder. agement at Wayne State University. it was mutual,” Orzechowski said. city’s only general cargo terminal. “It’s unclear what role it plays Deputy Director Kyle Burleson, The port stores about one-sixth largest U.S. free-trade zone. ing is 9 a.m. Monday at its offices in facilitating effective logistics in the acting director in the interim, of the nation’s aluminum supply The port authority was created at 130 E. Atwater St. the region, with the exception of deferred questions to Orzechowski. in 1,000-pound ingot bars housed by the Legislature in 1978 to re- Bill Shea: (313) 446-1626, the foreign trade zone activities.” The authority bills itself as “the in bonded warehouses — taking place the Detroit Wayne County Port [email protected]. Twitter: Taylor noted that the actual port primary public conduit between advantage of the port being the District. The authority’s next meet- @bill_shea19 facilities are almost all privately owned and operated in Detroit, and that the city isn’t a container port like Los Angeles or New Orleans — meaning it’s going to be limited to largely inland bulk raw materials. New port authority board member Lorron James, vice president of Detroit-based logistics firm James Group International, was appointed by Duggan in April. He said the pending construction of a second Detroit River bridge could be a cat- alyst for increasing raw material shipping to the city’s ports, and new riverfront development. “With the new bridge, we can fi- nally talk about bringing in more material to our ports,” said James, a 2011 Crain’s 20 in their 20s honoree. “There is a lot of waterfront property that we can revitalize.” Helping to get a long-discussed $400 million modern rail tun- nel built between Detroit and Windsor James also should be a future port authority goal, James said. Another ongoing issue for the authority that James said is a con- cern of his is getting Michigan environmental law governing bal- lasts for oceangoing cargo ships relaxed to match the rules in On- tario and other Great Lakes states. The rule prompts vessels to un- load in Toledo and Windsor rather than Detroit, in an attempt to limit any waterborne invasive species in Michigan waters. Easing the law would mean 40 or 50 additional ships would ply Michigan’s ports, Jamian has long said. Changing the law to match other ports would mean more steel deliv- ered in Detroit, and more farm products exported by ship, James said. “More steel in and more grain out,” he said. The other new board member is Jonathan Kinloch, appointed by Mayor Mike Duggan in April. Kinloch is an at-large Detroit Public Schools Board of Education member and serves on the executive committees for the Detroit branch of the NAACP and the Michi- gan Democratic Party. The port authority board com- prises two members appointed by the mayor of Detroit, two appointed by the Wayne County Commission and one by the governor. The board hires the executive director. 20140609-NEWS--0006-NAT-CCI-CD_-- 6/6/2014 5:02 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS June 9, 2014 Make July extra suite Now that canned beer is on shelves, Special savings Atwater focuses on distilled spirits on Party Suites July 2, 3 & 6 BY NATALIE BRODA SPECIAL TO CRAIN’S DETROIT BUSINESS

When Mark Rieth took over At- water Brewing Co. in 2005, one of his main goals was to get the company’s beer into cans. Now, just less than a decade later, that goal has come to fruition. A month ago, Atwater began canning its Dirty Blonde, Grand Circus IPA and Atwater Lager at Great for business the contract brewery Brew Detroit or personal functions, COURTESY OF ATWATER BREWING CO. LLC at 1401 Abbott St. in Corktown. A month ago, Atwater began canning its Dirty Blonde, Grand Circus IPA and and available for groups Within the next week, those cans Atwater Lager at the contract-brewery Brew Detroit LLC in Corktown. of 15+. All party suites feature were being shipped to retailers, personal wait staff, indoor bars and restaurants by Atwater’s This is the first time since 1985, beers to the can family in the first and outdoor seating, and private distributor, Imperial Beverage Co. when Stroh Brewery closed its 135- quarter of 2015. Final decisions restrooms. Plus a $300 catering credit The cans have been on shelves in year-old location, that beer is be- have not yet been made, but Rieth and a voucher for a free hotel stay at selected stores for three weeks. ing packaged in cans in Detroit, ac- said there’s a strong chance the MotorCity Casino Hotel.* The story of how the beer got cording to Rieth. Vanilla Java Porter will be released into the cans goes further back. “You miss out on 30 percent of in a 16-ounce four-pack, and the D- Three years ago, Rieth began can- the market when you only sell bot- Light, a beer with qualities both of ning and selling Atwater out of City tle or draft,” he said. ale and lager, in 19-ounce cans. Brewing Co. LLC in Wisconsin. He While not fully embraced by all, But not everyone is convinced. wanted to see how the cans fared cans have advantages such as bet- Larry Channell, co-owner of Drag- in the market and was persuaded ter portability and fewer restric- onmead Microbrewery LC in Warren, by their success to bring the can- tions (such as parks or other said although cans are more ning here to Atwater’s home. venues that do not allow glass.) portable and may protect your beer, While the company rolls out the While consumer demand was a they have a stigma in the industry. canned beer, it is also working on major reason, another motivator is “When I see a can, my brain tells SELECT FROM THREE DIFFERENT GAMES the rollout of distilled spirits made a longer-term goal to bring the cul- me, ‘Well, that’s cheap,’ ” Channell JULY 2 • TIGERS VS. OAKLAND A’S in Detroit, starting with Dirty ture of Detroit across the country. said. “It tastes wrong to me.” JULY 3 & 6 • TIGERS VS. TAMPA BAY RAYS Blonde Vodka. “For us, from a can standpoint, Brewery Vivant LLC in Grand The canned beer production our ad says: ‘It’s a craft beer you Rapids would disagree. Ben Dar- *While supplies last. Restrictions apply. marks a major milestone for Atwa- can totally shotgun,’ ” Rieth said. cie, brewery representative and ter, and Detroit, Rieth said. Atwater plans to add three more sales manager, said there are two enemies to beer — oxygen and light — and cans eliminate both. Darcie said it’s also one-third cheaper to can products than to bottle them, and Vivant has enough flexibility with canning to release 14 different brands of beer Wiser Investment Advice is Out There. this year. He said he believes canning is the future for Michigan You just have to know where to look. and Detroit beer, now that big players like Founders Brewing Co. and Bell’s Brewery Inc. are releasing It could take just one idea or improved investment process to benefit you millions of dollars. their top sellers in cans. Our multi-disciplined team of one or more JDs, CPAs, LLMs, CLUs, PFSs, CAPs, MBAs and CFA® “It’s inevitable,” Darcie said. Atwater is being sold in 18 charterholders, brings a simple, but rare, ability to listen, understand and offer practical advice. states, with plans for breweries to be built in Texas and North Caroli- na in the next five years. Rieth Come see why sophisticated investors are accessing our platform of world class managers said he doesn’t want Atwater to be and income tax sensitive trading technology. everywhere, though. “We just want to be everywhere that makes sense for us. Areas that are thriving,” he said. “But Detroit is priority.” International market growth is another focus area: A bar in Mu- nich carries Atwater on tap, and Rieth has been in talks to get At- water into Canada and Australia. Rieth said he would like sales to be 20-25 percent exports. In about 60 days, Rieth expects to be granted a license to produce spirits in a micro-distillery at At- water’s 237 Jos. Campau location. First on the still list is Dirty Blonde Vodka. Rieth said he wants to start with clear spirits first and then move on to darker, more aged spirits. By early October, patrons will be able to buy Atwater spirits 248.731.9500 | WWW.SCHECHTERWEALTH.COM | BIRMINGHAM, MI | NEW YORK, NY at the Detroit distillery; Rieth said the company hopes to add store INVESTMENT ADVISORY & ADVANCED LIFE INSURANCE DESIGN distribution in the future. Atwater is in its 10th consecu- Securities may be offered through NFP Securities, Inc. (NFPSI), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPSI or Schechter Investment tive year of record sales, and is on Advisors, LLC. Schechter Investment Advisors, LLC. and NFPSI are not affiliated. track to gross $10 million this year with 60,000 barrels of beer, Rieth said. The company reported 2013 revenue of $4 million. 20140609-NEWS--0007-NAT-CCI-CD_-- 6/6/2014 5:03 PM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 7 IS YOUR Financing secured; former United Way CURRENT FABRICATOR building to be offices, lofts by 2015 just not cutting it?

BY KIRK PINHO The former United Way CRAIN’S DETROIT BUSINESS building, at 1212 QUALITY Griswold St. in Capitol The redevelopment of the for- Park, will be turned into FABRICATION mer United Way building in Capi- office space for the tol Park is expected to be complet- Archdiocese of Detroit ed by the end of the year now that and 56 loft-style SERVICES the developer secured $38.5 million apartments. in federal, state and private financing. SINCE 1989 The 126,000-square-foot building at 1212 Griswold St. will be turned into new office space for 185 Arch- diocese of Detroit employees and 56 )DEULFDWLRQ0DFKLQLQJ loft-style apartment units. Financing for the project came from federal New Markets and historic tax credits; state historic and SERVICES FABRICATES brownfield tax credits; Beech- :HOGLQJ 0LJ7LJ 6WDLQOHVV6WHHO wood, Ohio-based Liberty Bank NA; Chase Bank; J.P. Morgan Chase; the &1&/DVHU&XWWLQJ DQG$OXPLQXP Chicago-based Urban Partnership 3UHVV%UHDN%HQGLQJ :HOGPHQWV Bank; the Chicago-based National 6DQGEODVWLQJ *XDUGLQJ Community Investment Fund; Invest 3RZGHU&RDWLQJ 3ODWIRUPV Detroit; and Lansing-based Develop 0DFKLQH%DVHV Michigan Inc., said Richard Karp, principal of Lansing-based Karp COSTAR GROUP INC. and Associates LLC, one of the developers of the project. floor retail space and 83 loft-style year that it is moving into the for- A-1 FABRICATION INC. Karp said units will range from apartments, Karp said. mer United Way building from the 500 to 1,300 square feet. Rental He said he expects to close on fi- Gabriel Richard Building at 305 Eastpointe, Michigan rates won’t be known until the fall, nancing for the Capitol Park Michigan Ave. and the Chancery but he expects them to rent for Building in the next four months, Building at 1234 Washington Blvd. 586-775-8392 | Fax 586-775-8596 about $1.95 per square foot. and the Farwell Building in the Kirk Pinho: (313) 446-0412, [email protected] | www.A-1fabrication.com Most of the units will have one next six. [email protected]. Twitter: bedroom, but there will also be The archdiocese announced last @kirkpinhoCDB two- and three-bedroom units, he said. The development group for the project, Capitol Park Partnership, includes Karp; Kevin Prater, owner of Lansing-based Prater Develop- ment Ltd.; and Richard Hosey III, a former senior vice president for Bank of America who is now the owner of Detroit-based Hosey Devel- opment LLC. Lansing-based Terrence J. Miglio, now Buildtech Ltd., owned by Karp, is the general contractor on the project. ® The Downtown Detroit Partner- In Your Corner. ship’s Live Downtown Program will provide financial incentives to employees of several companies Varnum is pleased to welcome Terry Miglio to move into the former United Way building, according to the re- to the fi rm. Terry has a strong focus on lease. employment litigation as well as traditional The Downtown Development Au- thority purchased the former Unit- labor work. He counsels clients nationally, ed Way building for $1.75 million providing advice as well as representation and the 72,000-square-foot Capitol Park Building at 1145 Griswold, ac- before state and federal courts and agencies. cording to Washington, D.C.-based real estate information service CoStar Group Inc. Capitol Park Partnership owns the former United Way building, Karp said. The DDA still owns the Capitol Park Building, but Capitol Park Partnership has development agreements on that building and the 110,000-square-foot Farwell Building at 1249 Griswold, which was purchased by the Michigan Land Bank in 2009 for $3.3 million. The DDA approved the development agreement for the three buildings in 2012. “This is probably the fastest public/private partnership development in Detroit in the last 40 years,” Karp said. Demolition and abatement began this month at the Capitol Park Building to turn it into retail/office space and 63 loft-style apartments. The Farwell Building will Contact Terry Miglio at [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing be redeveloped to feature first- 20140609-NEWS--0008-NAT-CCI-CD_-- 6/6/2014 5:59 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS June 9, 2014 OPINION LETTERS Port future needs Top execs’ high pay not deserved Editor: when she wrote Pigs at the Crain’s Detroit Business When I saw the May 19 headline Trough. welcomes letters to the editor. “Highest-paid execs earned their Maureen Thomas All letters will be considered for White Lake keep,” I had to double-check the publication, provided they are careful planning date of the issue; I thought it might signed and do not defame be April 1. What a joke! individuals or organizations. Don’t overlook he Detroit/Wayne County Port Authority is taking a few It would be interesting to see the Letters may be edited for length compensation figures for midlevel and clarity. Armenians’ role months before choosing a successor to Executive Direc- executives and nonexecutives em- Write: Editor, Crain’s Detroit Editor: T tor John Jamian, who left when his contract expired last ployed at these same companies. Business, 1155 Gratiot Ave., I read with great delight Bill month, and maybe that’s wise. (See story, Page 4.) How much did their compensation Detroit, MI 48207-2997. Shea’s article “Built by immi- increase in the past year — if at The port wants to be an economic engine for the region, but Email: [email protected] grants: Foreign-born workers inte- it faces obstacles, primarily lack of funding, that require con- all? A generous 3 percent? This ar- gral part of Detroit’s history, econ- ticle only confirms that senior ex- omy” in the June 2 issue. sideration and definition before launching a search for a new truth, that he or she was grossly ecutives’ compensation has spi- Many ethnicities were men- executive director. overpaid, it would be fired imme- raled out of control. tioned in Bill’s article, but I would diately. And, by the way, has any- One source of funding the port has sought in the past is leg- The fact that a company’s stock like to bring attention to one im- one noticed that board members’ islation that would have given it added bonding authority — price increased from Dec. 31, 2012, portant ethnic group that made compensation has risen dramati- along with the ability to collect developer fees on bond issues to Dec. 31 2013, is only significant some valuable contributions to De- cally as well? to shareholders troit — the Armenians. — in competition with the Detroit Economic Growth Corp. This is not a coin- who sold their One of the most well-known and That bonding authority would have included bonds for pro- cidence. stock that day. If the folks who diverse communities in south- If the folks who jects away from the waterfront. Stock prices re- “ western Detroit from approxi- really mattered The goal was worthy: Jamian was seeking financial self- flect the market’s really mattered – mately 1900-1960 was Delray. This — shareholders sufficiency for the nonprofit port, which lost $643,000 in 2012, perception of val- community was a bit of a melting and customers — ue at a particular shareholders and pot for many ethnic groups; proba- according to its Form 990 filed with the IRS. decided senior moment in time bly most prominent were the Hun- But the move came as a surprise to the DEGC and others, executive com- — which often is customers – decided garians and Armenians. pensation, the and seemed destined to be moving money from one local pock- based on the gen- Before 1900, there were fewer numbers would et to another rather than create more economic value. eral economy, senior executive than 60 Armenians living in De- look very differ- New board Chairman Tom Orzechowski still hopes for world events and troit, but after the Armenian geno- ent. Suggesting emotions like the compensation, the cide of 1915, in which more than such legislation to be passed and says he understands that that such extrav- so-called “irra- 1.5 million Armenians were mas- talks are needed before proceeding. numbers would look agant compensa- tional exuber- sacred by the Turkish Ottoman tion is necessary We applaud that thought, but remain unconvinced such ance.” It bears lit- Empire government, this number very different. to attract the best legislation is a good idea. Although we’re not in favor of fief- tle correlation to rose to more than 2,000. The num- ” and the brightest doms for their own sake, there’s nothing to be gained from du- CEO and senior- ber of Armenians living in Detroit is ridiculous. executive perfor- grew with each passing year. The plicative efforts or situations that potentially could have a de- Most of these companies already mance. Armenians spread into other veloper pitting the port against the DEGC. employ the best and the brightest What shareholders really value neighborhoods, such as Highland — the midlevel executives and Strong, responsive, coordinated economic development ef- are dividends. However, dividends Park, Dearborn and Pontiac, and, nonexecutive employees who ac- forts are what we need. and lower-level employees are usu- in the process, played an impor- tually run the companies day to ally the first things cut when a tant role in the growth of the De- day. company fails to perform. Mean- troit community contributing a I’ll bet every one of the listed ex- while, the CEO flies away on the great deal to the small-business Persistence brings conference ecutives is whining that an in- platinum parachute given by the community. crease in the minimum wage will board when he or she first took the As Mr. Shea’s article men- destroy jobs and complaining It’s easy to think a single person can’t make a difference, job. tioned, the $5 work day created by about the cost of having to provide but, as Senior Reporter Sherri Welch reports on Page 32, that’s The opinions of so-called execu- Henry Ford was also a major at- decent health insurance under the not always true. tive compensation experts are traction to the Armenians. They Affordable Care Act. Rather than hardly a proper gauge. Their opin- settled on streets such as Solvay The Islamic Society of North America’s national conven- increasing the minimum hourly ions are bought and paid for by Street, where rail cars would stop tion, which draws around 20,000 people, is coming to Detroit wage to $10.10, perhaps the law corporate boards made up entirely and the conductor would an- should be that the lowest-paid this year because med student Syed Mohiuddin looked out his of C-suite club members who all nounce its arrival to “Armenian worker must make at least 10 per- window and thought the streets were too empty. pledge “I’ll vote for your package if Boulevard.” cent of what the CEO makes. That led to a four-year personal journey of false starts, vol- you’ll vote for mine.” These com- Eventually, the Armenian popu- What disease did any of these pensation experts are well paid to lation rose to more than 30,000- unteering and community building that led to the merger of execs cure last year? What life- slice and dice data collected from 40,000 dispersed throughout De- the two major local Islamic organizations. That merger, along saving technology did any of other companies who overpay troit and the suburbs. Bravo to them personally invent? What with improving conditions in the city, created the infrastruc- their senior executives to con- Crain’s and Bill Shea for recogniz- major money-saving or money- ture to win a bid for the 2014 convention last year. clude that these multimillion-dol- ing the importance of the many making idea did they alone come Mohiuddin allows that he had no idea the effort would take lar compensation packages are ethnic groups that helped shape up with and implement at their somehow appropriate. the metro Detroit area. this long or that he would become so involved. company? If the executive compensation Ara Topouzian But he kept pushing, and in so doing, has left his mark. company actually told a CEO the Arianna Huffington said it best Farmington Hills KEITH CRAIN: Let’s keep the momentum going in Detroit Kudos to Roger Penske, Bud DIA. lems. There are still Those are two words that we apartment or a loft to rent or buy. Denker and the entire Penske or- There is a lot going on plenty of hurdles, but haven’t heard in a very long time. It is just a beginning, but it is a ganization for putting on the in our city and our com- there is a real feeling But it’s real and it is happening. beginning. Chevrolet Belle Isle Grand Prix. It munity. that we’re going to get Sure, it is very fragile. But it ex- Every journey starts with a step was great if you were there, but There is a lot more op- this done. ists and it’s real. and Detroit is making big steps for- more importantly, it looked mag- timism going on in our The leaders of our Now it’s up to all of us to make ward. nificent to the millions of viewers city. Some of it is de- state and community sure it grows. Building blocks that will turn who saw Detroit on television. served; some of it is sim- are getting it done and The next time you hear a this city back into the thriving me- Once again, an automotive ply hope for the future. done right. There is, re- naysayer, just tell them that they tropolis it once was. event generated Super Bowl-like The stock market gardless of the political are wrong. There is a silver lining. We need more jobs. We need economic development for the city usually performs based affiliation, lots of coop- We are attacking the blight, and more public safety. But we have a and region. on future expectations. eration among politi- we are lighting up the city, one beginning. Last week, the Detroit City All of us who live and cians to do the right light at a time. We are seeing new That’s truly quite remarkable. Council voted unanimously in fa- work in Southeast Michigan have thing. In an era of political bicker- businesses, big and small, opening Detroit is on a roll. Let’s all do vor of the Detroit Institute of Arts that same optimism for our city ing, that is a very remarkable oc- in our city. People, young people whatever it takes to keep it on that to agree to create a trust for the and our region. currence. mainly, are moving into the center roll. jewels of our city, the art of the There are still plenty of prob- Cooperation. Optimism. of the city, and you can’t find an It is all very exciting. 20140609-NEWS--0009-NAT-CCI-CD_-- 6/6/2014 10:31 AM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Age diversity makes for better workplaces

Throughout my ca- Those in today’s overlap, and we must encourage reer, it has never oc- younger generation bring all ages to cross paths in the work- curred to me to expect to the workplace a per- Let’s capitalize on the strengths of this place, share skill sets and appreci- my superiors to be older spective that they want “ ate what each generation offers, than I am, and those that what they do every day to new working paradigm, for the sake of rather than butting heads just be- I manage to be younger. mean something to them. cause we do things differently. Apparently, I’m unique They don’t want to go to corporate America and so we can build a All the skills and talents and in that regard because work and punch a clock better economic future for all. years of experience we bring to many people expect the and stay at a desk for ” each position can truly be for workplace hierarchy to eight hours and not care everyone’s benefit — and boost the reflect years of hard-won Tara Miceli what they’re doing all for the wisdom they can get from ceived generational gaps. bottom line. Let’s capitalize on the seniority, with the eldest day. They want to make colleagues and superiors. They Our workplaces today are a mix strengths of this new working par- staff members in top positions an impact. want knowledge; they want men- of generations, with more retirees adigm, for the sake of corporate and their younger counterparts One of the biggest myths is that tors. Yes, they may bring ad- realizing they might want to start America and so we can build a bet- furiously climbing the corpo- people in this generation doesn’t vanced technological skills and a new career or may have to stay ter economic future for all. rate ladder beneath them. respect generations that came be- wisdom, but they are eager to in the workplace longer than Tara Miceli is director of the I’ve been in my current posi- fore them. Actually, they hunger learn and want to bridge any per- planned. Generations are going to Walsh Institute at Walsh College. tion for nearly three years, working alongside (and managing) employees who are older than I am. We work well together — despite the fact that they are all more than a decade my senior. It just doesn’t occur to me that this is exceptional because I’ve always been in positions where employees are older and it just never seemed to matter. We’re seeing that more and Keep your business more nowadays, with a workplace that looks a lot different than workplaces of yore. In heading in the many companies, you’ll see up to four different generations on the clock at the same time. right direction. When I was 21 and managing a loan department and investment programs for a credit union, I had to learn that age shouldn’t matter — and really it doesn’t. When you sit in front of a woman in her 50s and tell her she’s denied a loan, you quickly learn the art of corporate fi- nesse. Business is person to person, not one age over another. Over time, I’ve learned the most important workplace les- son: how to deal with people, understanding their needs in the business world and what they require from their work. I’ve also learned that workplace needs don’t overshadow personal desires, and that the art of managing others comes from seeing the whole person and bringing the appropriate com- Treasury Management from FirstMerit Bank passion to the task at hand. It’s never about coming in When John talked to FirstMerit Bank’s Treasury Management team, his goal and telling people what to do. I don’t care what age you are, or was to increase his company’s working capital. Together, they came up with a what position, you’ll never be successful if that’s your ap- plan to help John effectively manage receivables, control payments, and improve proach. I was never intimidated by his company’s overall cash flow. Now John has all the tools he needs to keep his the fact that my entire team is older than I am. And I hope the business moving in the right direction — forward. team doesn’t see immaturity in my younger age. How we perform on the job has more to do with who we are as people than what age we project. Throughout many different leadership and management experiences, I’ve learned that the manager’s top job is realizing what somebody’s talents are, what they’re good at, and hav- TO LEARN MORE, CONTACT: ing the right people in the right PJ Danhoff, Treasury Management Sales Officer, seats, regardless of age. at 248-228-1706 or pj.danhoff@firstmerit.com. It’s also imperative to learn about what’s important to each generation. They’re all differ- Follow the latest market trends firstmerit.com ent, and so are the mentalities @firstmerit_mkt Member FDIC shaped by what people have 2411_FM14 lived through. 20140609-NEWS--0010-NAT-CCI-CD_-- 6/6/2014 12:05 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS June 9, 2014 Children’s Hospital foundation seeks input to broaden impact

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS In my mind, the foundation Children’s Hospital of Michigan “ Foundation’s roots go back a has to be relevant to community decade, but in a way, the foundation is still in startup mode. needs as well as donors’ Since beginning fully independent operation in 2011, following wishes. the 2010 sale of Detroit Medical Cen- ” ter to what was then Vanguard Tony Werner, Children’s Hospital of Michigan Foundation Health Systems Inc., the foundation has launched a formal biannual foundation President and CEO which was largely depleted amid grant-making program and a cam- Tony Werner. the DMC sale, the foundation has paign to support new areas of pedi- “In my mind, the foundation has hired four fundraisers, giving it atric health care and research, hir- to be relevant to community needs about a dozen, among 19 total em- ing new fundraisers to help as well as donors’ wishes,” he said. ployees. re-establish connections with Werner joined the foundation in As of the end of May, the founda- donors after losing many amid the early 2013 after spending a decade DMC sale. tion had $108 million in assets, as president of three foundations Werner said. It’s taking grant solic- The foundation inherited $90 that benefited Toledo, Ohio, hospi- million in charitable assets raised itations only from pediatric physi- tals: Mercy Children’s Hospital Foun- cians and researchers at Children’s for DMC Children’s Hospital of Michi- dation, Mercy St. Vincent Foundation gan following the sale of DMC and Hospital or community organiza- and St. Marguerite d’Youville Founda- tions that work collaboratively its conversion to a for-profit health tion II. with the hospital. system. Much of the $90 million in assets It made $16.3 million in grants the foundation inherited were re- The foundation considered between 2011 and 2013 in three pe- stricted or designated for specific changing its name, but the Chil- diatric focus areas stemming programs. Securing new, unre- dren’s Hospital of Michigan Foun- from the original donor intent be- stricted support will give the foundation name is so well known that hind those assets: research, com- dation’s board the flexibility to the board decided against it, Page munity benefit and education on make grants in new pediatric areas said. things such as new pediatric pro- where the needs are greatest, Wern- Sherri Welch: (313) 446-1694, cedures. er said. [email protected]. Twitter: The grants have gone primarily To rebuild its fundraising team, @sherriwelch to researchers and physicians associated with Children’s Hospital and Wayne State University. But the foundation is also looking to carve out a new identity in order to have the greatest impact, said Chairman David Page, partner at Honigman Miller Schwartz and Cohn LLP in Detroit. “We felt if we were simply to steward the assets we were given, it would be good,” he said. “But getting contributions from the community for other things bene- fiting children would be even better.” “We have to figure out where’s the best place to put our next $100 million,” Page said. To that end, the foundation is seeking input from physicians, researchers and administration at DMC Children’s Hospital of Michigan, which remains its home base, and others in the community such as foundations making grants in health care and school-based health centers, said

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in Detroit May 30-June 6. Under Chap- ter 11, a company files for reorganiza- tion. Chapter 7 involves total liquida- tion. Marty M. Powell DDS PC, 14356 E. Jef- ferson Ave., Detroit, voluntary Chap- ter 7. Assets: $271,524; liabilities: $442,724.47. Palushi Inc, 12033 Grand River Ave., Detroit, voluntary Chapter 11. Assets: $12,348.65; liabilities: $151,524.72. Summit Mobility Products Inc, 24711 Sherwood Ave., Center Line, voluntary Chapter 7. Assets: $0; liabilities not available. — Natalie Broda 20140609-NEWS--0011-NAT-CCI-CD_-- 6/6/2014 11:55 AM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 11

PUBLISHER’S NOTEBOOK

Contact Mary Kramer at mkramer @crain.com. CRAIN’S MICHIGAN BUSINESS Mary Kramer Biz leads way to strike down Rising with Retail sales of e-cigarettes reached about $3.5 billion discrimination worldwide last year — barely a puff of the When advocates for ending total $756 billion discrimination based on sexual market still preference plotted strategy, they knew dominated by they needed powerful business allies. tobacco. They found them in politically conservative West Michigan. the vapors Office furniture makers Steelcase Inc. of Grand Rapids and Zeeland-based Herman Miller Inc., Battle Creek-based Kellogg Co. and Holland-based Padnos, a scrap metal processing and recycling company, are among those that signed Companies take in revenue as e-inhalers gain in popularity on early to the Michigan Competitive Workforce Coalition. The group, formed by the Michigan BY MATTHEW GRYCZAN sector that has so much potential and Drug Administration to chapter of the American Civil Liberties Union, is lobbying the Legislature to CRAIN’S MICHIGAN BUSINESS is so untapped in terms of value and step in with regulations. amend Michigan’s 1976 Elliott-Larsen global reach,” said Jim McCormick, Instead of smoking hances are good that by this Civil Rights Act to include protections CFO of Victory Electronic Cigarettes “analog” cigarettes that ISTOCK PHOTO for lesbian, gay, bisexual and time next year you will Corp. (OTCQB: ECIG), a West Michigan contain hundreds of transgender residents, commonly have firsthand contact with company that aims to be the nation’s chemicals resulting from the known as LGBT. The Legislature, someone who vapes — uses prodded by Gov. Rick Snyder, may take largest independent producer of vaping combustion of tobacco, people an electronic inhaler that up the issue this year. C products. are inhaling a vapor of vegetable Elliott-Larsen protects residents from simulates the act of smoking. Daniel Lawitzke, a Grand Rapids glycerin and propylene glycol, flavor- discrimination in employment, housing, And when you observe the thick education or “public accommodations” ings and nicotine. To produce the vapor cloud of vapor emanating from that entrepreneur who pioneered the retail based on religion, race, color, national market in vaping liquids and devices in as they inhale, users activate a device origin, age, sex or marital status. person’s mouth instead of smoke, you that generally has a battery-powered West Michigan, likens it to the rush to The Michigan ACLU opened an may be witnessing the biggest single heating element surrounding a wick office in Grand Rapids nearly five the marketplace by dietary supple- play in consumable products that some saturated with the e-liquid. years ago. “We wondered: Would industry executives say is a once-in-a- ments in the 1990s, when “antioxi- ACLU be welcome? What issues were on people’s minds?” Executive lifetime opportunity. dants” became a household word — fol- Director Kary Moss recalled last week. “In my career, there has not been a lowed by the need for the U.S. Food and See Vapor, Page 12 To her surprise, in interviews with community and business leaders, three issues arose: LGBT rights, racial profiling and religious freedom. Ironically, some base opposition to LGBT rights on religious freedom. If Elliott-Larsen is amended, it means a restaurateur whose religion doesn’t condone homosexuality can’t refuse to serve gay customers or fire a waitress because he discovers she is a lesbian. Employers see LGBT rights as a talent issue. If they want the best, they need to be open to all. Coalition members include Blue Cross Blue Shield of Michigan, Chrysler Group LLC, Consumers Energy, Dow Chemical Co. and Strategic Staffing Solutions. So is this the first step toward legislative action to legalize gay marriage in Michigan? The two are not connected, Moss said. But it’s hard to see how they aren’t linked. In 2004, Michigan voters approved a constitutional amendment banning same-sex marriage and civil unions. But a federal judge struck that down in March, briefly opening the door to more than 300 gay marriages before an injunction was filed. Opponents of gay marriage say Michigan voters’ preferences should be protected. But public attitudes on gay issues have evolved. National polling shows a 70 percent approval rating of gay marriage among people ages 18-39. It will be interesting to see whether employers support gay marriage as strongly as the LGBT protections. Nunica, Mich.-based Victory Electronic Cigarettes has grown through acquisition and now plans to raise $149.5 million in a public sale of stock.

JON BROUWER 20140609-NEWS--0012,0013-NAT-CCI-CD_-- 6/6/2014 11:20 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS June 9, 2014 CRAIN’S MICHIGAN BUSINESS Vapor: Where there’s smoke, there’s fired-up entrepreneurs ■ From Page 11 Lawitzke, who launched Mister- suppliers to people who vape, is shifting gears to capture market that allow store stead of having to go outside to E-Liquid LLC in the summer of 2010 ranging from gargantuan corpora- share in vaping. The company, personnel to smoke a cigarette — especially after he was able to quit smoking tions such as Altria Group Inc. and founded in 1994 as the Smoker’s Out- mix customized when it is cold — it is something through vaping, now employs 43 Lorillard Inc. to tiny operations with let, has launched two stores called e-liquid blends they can do inside their homes and full- and part-time people at a whimsical names such as Planet of Mr. Vapor that cater specifically to for customers. maybe even their workplaces.” 16,000-square-foot laboratory and the Vapes that sell e-liquids online. the vaping consumer, said Wild “Every day, One website lists more than 180 two retail outlets in Grand Rapids, Some mom-and-pop operations lit- Bill’s chief marketing officer, customers are retail outlets in metro Detroit as with plans to open a third store in erally whip up their e-liquid for- Justin Samona. switching over selling vaping products. Lansing this month. mulas in kitchens, garages and Over the next year, Wild Bill’s from tobacco Samona said his company is Brick-and-mortar outlets such basements. hopes to open 10 additional Mr. Va- cigarettes to slowing down expansion of the as Lawitzke’s that are springing Wild Bill’s Tobacco, a Clawson- por stores, mostly in the Detroit Samona electronic ciga- Wild Bill’s concept and focusing up throughout Michigan are only a based owner of 21 tobacco special- area. In addition, all Wild Bill’s rettes because more on Mr. Vapor, a move that wisp of the industry’s vapor cloud. ty stores and franchiser or busi- stores now have Mr. Vapor sec- they see it as a healthier alterna- also serves to protect existing Wild More than a thousand businesses ness partner in an additional 29 tions, which offer a variety of tive — also a cheaper and cleaner Bill’s locations from losing cus- worldwide hope to strike it rich as such stores throughout Michigan, products and “gourmet juice bars” alternative,” Samona said. “In- tomers to other vape shops. A Mr. Vapor shop may carry three times the selection of e-cigarettes, disposables, starter kits and e-liquids that a Wild Bill’s carries, he said. The company employs about 120 people throughout its chain of stores and at its 15,000-square-foot distribution center in Clawson. Other companies such as LorAnn Oils Inc. in Lansing are being swept up unintentionally by the vaping revolution. LorAnn, established in 1962, is an old-line manufacturer Trust. and distributor of flavorings and essential oils used by home crafters and professionals who make candy, baked goods, frozen desserts and soaps. But several vaping websites recommend LorAnn Oils flavorings for e-liquids, even offering a color-coded list of those best for inhalation. “We are in a bit of a quandary,” said John Grettenberger Jr., grandson of LorAnn Oils founder O.K. Grettenberger. “Our flavoring products are FDA-approved for ingestion, and no one knows the result of them being used for inhalation. We would never suggest that our products be used this way, and we wouldn’t even think about going after this market.” Speed is of the essence Victory Electronic Cigarettes has embarked on a go-big-or-go- home strategy that its president, Brent Willis, likens to a military campaign. The West Point graduate even invokes the name of the legendary war strategist Carl von Clausewitz when he talks about growing share in the vaping market. “In his study of war, Clausewitz talked about the ability of maneu- ver — for us, that means speed, moving faster than the competition,” Willis said. “You have to do the right thing — and you have to For the kindhearted, giving comes no self-enriching kickbacks from do the right thing at the right naturally. Time, donations, friendship, mutual funds, and no third-party time.” Doing the right thing at the right advice, and maybe just room to grow. ownership. Instead, we have the time has placed Victory Electronic But what of trust—is that something profound responsibility and broad skill on a tear when it comes to acquir- ing other businesses. It has conclud- freely given, or only earned? The answer set to oversee and manage six billion ed three acquisitions of companies is hardly simple, especially in the context dollars of assets for our clients. It requires this year, and Willis said the company has agreed on terms to pur- of managing another’s money. At trust, which we ask for once. And every chase seven more companies or dis- Greenleaf Trust, every decision we day thereafter, we earn it anew. For tribution platforms in 2014 to further consolidate its sales and dis- make is with your best interests in mind. more reasons why trust is in our name, tribution channels. We have no proprietary investments, call us or visit greenleaftrust.com. Last month, Victory Electronic Financial Security from Generation to Generation filed its federal S-1 registration for no conﬂict of interest in our research, the public sale of stock to raise up to $149.5 million. “So we have gone from zero in 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6202 mid-2013 to about $75 million in revenues on a pro forma basis, and we

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June 9, 2014 CRAIN’S DETROIT BUSINESS Page 13 CRAIN’S MICHIGAN BUSINESS

From Previous Page and at offices and distribution cen- market globally. Sales of e-ciga- ters in Atlanta and the United rettes grew more than 180 percent expect to be well over $200 million Kingdom. in the United States in 2013 from in revenues by the end of this What is quickly thinning the the prior year, the firm said, and year,” Willis said in an interview crowd among vaping competitors the sector is expected to continue before the company filed its S-1 regis access to distribution through to take more market share from istration. Pro forma statements convenience stores and mass mer- combustible cigarettes. filed in the S-1 showed a net loss chandisers such as Wal-Mart Stores Willis and McCormick hope to from operations of about $12.7 mil- Inc. and Rite Aid Corp., which serve capture more shelf space by cut- lion. a majority of the 1.3 billion people ting lucrative deals with distribu- The company intends to change who the American Cancer Society es- tors and retailers that large tobac- its name to Electronic Cigarettes In- timates smoke worldwide. co companies will find hard to ternational Group Ltd. to match its “Retailers are already making match. Tobacco companies typi- ticker symbol, but the new (vaping) space for the big tobacco cally offer distributors a 3 percent moniker also reflects its world- guys — Lorillard, Reynolds and Al- markup off of cost, while Victory wide sales strategy. Victory Elec- tria,” Willis said. “But the big to- Electronic Cigarettes can offer up tronic purchased Atlanta-based bacco companies have some real to 25 percent markup off of cost, FIN Electronic Cigarette Corp. Inc. in weaknesses that we can exploit.” Willis said. February, United Kingdom-based Brand, price and flavor selec- “That changes the economics for Vapestick Holdings Ltd. in January tion aren’t the biggest factors distributors in a very significant and Must Have Limited in April. when it comes to consumers mak- way,” he said. “We offer 30-day Willis intends to put his interna- ing purchasing decisions at this payment terms to distributors, tional experience as a former exec- point, he said. “Right now, 65 per- and the tobacco companies offer utive for the Coca Cola Co., Kraft cent of all brand choice today is net minus five — you pay for your Foods Inc., Cott Corp. and InBev to made on what’s there, what’s product on Monday and you re- work opening the international available, what’s on display,” ceive it on Friday. markets for Victory Electronic Cig- Willis said. “We also offer very favorable arettes. With the recent acquisitions, profit margins for retailers like Victory Electronic sells its prod- Meijer. The tobacco companies are Big plans from a small space ucts through more than 50,000 re- at about 8 percent, while we can of- tail outlets in the United States fer profit margins up to 50 per- To say that Victory Electronic is and Europe, which together make cent.” JON BROUWER In a study of 25 state laws that flying below the radar is an under- Brent Willis, president of Victory Electronic Cigarettes, has big ambitions — up an estimated 70 percent of e-cig- statement: The company shares more than $200 million in revenue by year’s end — for a company that currently arette sales worldwide, according set minimum prices for cigarette space with a woodworking busi- operates out of space it shares with a woodworking business. to estimates from Euromonitor Inter- wholesaling and retailing opera- ness owned by Willis’ father-in- national, a London-based provider tions, the Centers for Disease Control law in rural Nunica, about 26 store displays and architectural “Every penny counts,” Willis of global business intelligence. and Prevention in Atlanta found in miles east of Grand Rapids. A tow- millwork. said with a grin when asked about Euromonitor estimated that re- 2010 that the median wholesale ering grain elevator and parked No sign marks the fact that Vic- the humble surroundings that tail sales of e-cigarettes reached markup was 4 percent and the me- semis of a nearby business over- tory Electronic Cigarettes is oper- serve as the nerve center for Victo- about $3.5 billion worldwide last dian retail markup 8 percent. shadow the parking lot of Versatile ating in about 3,000 square feet at ry Electronic. The company em- year, less than one-half percent of Wood Solutions, a manufacturer of the plant. ploys more than 100 people locally the total $756 billion retail tobacco See Vapor, Page 14 Make your impact here. Then on the business world.

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Page 14 CRAIN’S DETROIT BUSINESS June 9, 2014 CRAIN’S MICHIGAN BUSINESS Vapor: Alternative to tobacco’s taste ■ From Page 13 With such high stakes, the world’s largest tobacco companies have acquired or launched e-cigarette brands themselves. Since buying Blu Ecigs in 2012, Lorillard has built Blu into a leading e-cigarette brand with heavy promotion BUSINESS CONDITIONS CAN CHANGE that tapped celebrity Jenny Mc- AS QUICKLY AS THE WEATHER. Carthy. Reynolds American Inc. launched We can help. When businesses face the changing demands of its own Vuse brand in July last growth, purchasing goods, or making payroll, they require a strong, year, and Altria Group introduced its MarkTen brand in August. yet flexible solution. Our asset-based lending solutions can be the answer ... whatever the climate. Blueberry? Cotton candy? Contact me today! Aside from elbowing for space on cigarette shelves, companies 888.999.8050 that make vaping products also Matt Dekutoski are struggling to understand what their customers want. A bewilder- ing array of delivery devices have COURTESY OF WILL BILL’S TOBACCO flooded the market — such as Clawson-based Wild Bill’s Tobacco has added in all its stores Mr. Vapor “cig-a-likes” that are the size and sections, which offer products and “gourmet juice bars” that let store personnel shape of ordinary cigarettes with mix e-liquid blends for customers. rechargeable batteries, refillable Tablet Users: atomizers about the size of a cigar cotton candy. so, our customers don’t want to Have you seen what’s NEW at and hundreds of formulas of “We don’t know how the product taste tobacco anymore — it’s gross. e-liquids that are flavored to simu- is going to evolve — e-liquids, va- “After their taste buds regain crainsdetroit.com? late blueberries, chocolate or even porizers, disposables, recharge- their sense of taste, tobacco does- ables,” Willis said. “Anyone who n’t taste as good as strawberries or says they know exactly where the blueberries. The thing that gets market is headed is lying. So do it people off analog cigarettes in the all. … Take the best ideas and bring long term is the flavoring — the them to market very quickly.” fact that you can taste apple pie if For example, Victory Electronic you want to taste apple pie.” is introducing at Walgreen Co. Willis and Lawitzke were Huron Capital Partners stores this month a disposable adamant about enforcing age re- clearomiser system discovered in strictions on the sale of their prod- Europe that lets customers see the ucts and the need for FDA regula- level of e-liquids left in the unit. tions. In April, the federal agency Lawitzke of Mister-E-Liquid has proposed rules that would require built a business on anticipating the vaping product companies to reg- market with a variety of ready-to- ister, list ingredients in e-liquids use, refillable and disposable deliv- and impose minimum age and ery systems along with separate identification restrictions to pre- components such as batteries, coils vent sales to those under age 18. At and tips so customers can assemble the end of a 75-day public comment their own personal vaping equip- period, the agency will enact the ment. rules that it deems necessary. More than half of Mister-E- In the manufacture of e-liquids, Liquid’s revenue comes from “people are just picking up what wholesale and retail sales of more looks good, and they are mixing it than 100 flavors of custom-mixed in their kitchens or, God forbid, e-liquids, which range from Gran- their garages or bathrooms,” Law- E’s Apple Pie to Maniac Mint itzke said. “That’s part of the prob- Chocolate. The company sells lem. There’s no accountability.” products in 47 countries and sup- Mister-E-Liquid purchases its plies liquids to more than 300 vape base materials, flavorings and shops nationally. nicotine from suppliers that docu- Instead of competition, Law- ment the concentrations and puri- itzke views companies such as Vic- ty of their products and mixes the tory Electronic and Blu as portals ingredients in its ISO-certified PEOPLE for smokers-turned-vapers to find We invest in . Class 6 clean room in Grand his business online. Rapids. The company, a founding “They think that people want a member of the American E-Liquid We build LEADERS. device that looks like a cigarette, Manufacturing Standards but what we’ve learned is that peo- Association, does regular testing of ple who are vaping really don’t final product, Lawitzke said. want to be associated with smokers,” he said. Willis said Victory Electronic Cigarettes imports its products Soon after they try e-cigarettes, from China, but it has plans to people often search out delivery move manufacturing to the United devices that are higher-powered States during the next year. and refillable, Lawitzke said. “When they get them home and see “It’s our intention to be the lead- $20 for a five-pack of cartridges, ing independent electronic ciga- Sector Focus Platform Criteria rette company in the world, fully Specialty Manufacturing Buy & Build Strategies their first instinct is to say: ‘I’m going to search Google and find them in control of our own destiny, right Consumer Goods & Services Revenues: Up to $200M cheaper. And that’s where we here in West Michigan,” he said. Business Services EBITDA: $5M or more come in.’ ” “Frankly, the thing that keeps Healthcare No Minimums for Add-ons Another misconception is that me up at night is the money that adults don’t like a variety of fla- big tobacco — and big pharma, for vors. “The majority of our client that matter — can throw around base started with tobacco-flavored because we are eating into the e-liquid, and they wanted it to smoking cessation business.” taste like a cigarette when they Matthew Gryczan: (616) 916-8158, | | Detroit Office: 313.962.5800 www.huroncapital.com Toronto Office: 416.234.0313 first started,” Lawitzke said. [email protected]. Twitter: “What we found is after a month or @mattgryczan 20140609-NEWS--0011,0012,0013,0014,0015-NAT-CCI-CD_-- 6/5/2014 4:34 PM Page 5

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 15 CRAIN’S MICHIGAN BUSINESS Dow’s Liveris answers criticism with numbers

BY FRANK ESPOSITO $4.8 billion. Part of that increase CRAIN NEWS SERVICE was a $2.5 billion settlement from a Kuwaiti firm over a failed business It’s barely June and Dow Chemi- deal in 2008. Reliable, modernized grid cal Co. CEO Andrew Liveris al- In a Q&A session with analysts, ready has had one heck of a year. Liveris didn’t mention Loeb or Energy is essential to the way we live, work and play. Things got rolling for Liveris on Third Point by name, but he did Jan. 21 when activist investor say he “agreed with the investor Daniel Loeb and that there is an upside” to Dow’s ITC operates, builds and maintains the region’s his Third Point strategy. And Liveris pointed out electric transmission infrastructure. We’re a Michigan- LLC hedge fund that Dow already had sold off $10 blasted Mid- billion of assets in recent years based company working hard to improve electric land-based Dow and in late 2013 announced plans in a letter to in- to sell off $5 billion more. reliability and increase electric transmission capacity vestors for what Dow’s plans to increase its share throughout the Midwest. was described buyback program and to sell off as “a poor oper- other small businesses was seen by ational track some as a response to Loeb’s criti- record across cism. Company officials said these Liveris multiple busi- moves were part of an existing We’re ITC – your energy superhighway. ness segments.” Loeb and Third strategy. And like other companies Point also called for Dow — one of in the region, Dow has announced the world’s largest plastics and plans to add polyethylene and eth- chemicals makers — to be split ylene capacity to take advantage of into two companies, with its petro- newfound supplies of shale-based chemicals business in one. natural gas. Within days, Liveris — a 38-year Liveris was able to deliver more Dow veteran who has occupied the good news for Dow on April 23 when corner office since 2004 — had met the company announced that first- www.itctransco.com with American business guru War- quarter 2014 profit was up more ren Buffett, whose Berkshire Hath- than 60 percent to just under $1.1 bil- away firm is a Dow shareholder. lion, even though sales essentially Buffett assured Liveris that Dow were flat at almost $14.5 billion. was heading in the right direction. What has Dow’s per-share stock Liveris, naturally, didn’t keep price been doing amid all this hub- Buffett’s assurances to himself. He bub? Well, it was around $43 before took to the airwaves Jan. 29 on being goosed by the Loeb letter in CNBC’s “Squawk Box” program to late January. It proceeded to shoot share that info with viewers. up above $50 in late March before On the show, Liveris said Buf- settling down a bit to close near fett had told him that “we’re an $49.30 on May 19. owner and we like being an own- So do the higher profits and er,” adding that “we think (Liv- stock price mean that Liveris can eris) has been running the compa- relax a little? ny for the investors who will stay Maybe not. On April 30, Loeb vs. investors who will leave.” and Third Point fired another shot Somewhere in New York, Loeb across Dow’s bow. According to a had to wince at those words. Liv- letter to investors that was ob- eris had to feel like a happy pastor tained by Reuters, Loeb said that who just had the Pope show up at Dow’s integrated strategy is cost- his church’s bake sale. ing shareholders billions and that THE IMPORTANCE OF EMPLOYEE ENGAGEMENT CNBC’s website wrote about Liv- executives should work harder to Dale Carnegie Training has been increasing employee engagement for over 100 years. One eris’ appearance under the head- boost results and transparency. line, “Hey Loeb, Buffett has my To date, Dow has declined to recent initiative* included a comprehensive study of employee engagement across the US. back.” On that same date, Dow an- comment on Loeb’s recent com- nounced that full-year profit for ments. 2013 grew more than four times to From Plastics News

New supplier to run ex-JCI unit in Holland BY KERRI JANSEN nesses with outstanding products CRAIN NEWS SERVICE that are burdened by circum- stances where their true value and A new tier-one auto supplier has potential are constrained,” Motus been formed to operate a headliner Chairman Tim Lee said in a state- and sun visor business acquired ment. “Our focus at Motus is to re- from Johnson Controls Inc. move the barriers and provide the Motus Integrated Technologies, capital required to enable our com- backed by the private equity firm At- pany to flourish.” las Holdings LLC, will have its North Besides its Holland location, Mo- American headquarters in Holland. tus will continue operations in

JCI announced the planned sale, Ramos Arizpe, Mexico; Uberherrn, *Dale Carnegie surveyed the functional and emotional elements of employee engagement from a national which left the auto supplier with a Germany; and Creutzwald, France, representative sample of 1,500 employees. /** Source - Bureau of National Affairs / ***Source - Gallup portion of its interiors unit, in Feb- and will have production capabili- ruary. Terms of the deal were not ties in Cottondale, Ala. disclosed. Lee is a former longtime General READ MORE ON EMPLOYEE ENGAGEMENT AT It later announced a deal to spin Motors Co. executive who retired in off the remainder of its interiors April as chairman of GM China. www.michigan.dalecarnegie.com group into a joint venture with Yan- Shannon White, a former execu- feng Automotive Trim Systems Co. Ltd. tive with United Plastics Group Inc., 248.380.7000 “Motus is being built from solid is president and CEO. automotive manufacturing busi- From Plastics News Copyright © 2014 Dale Carnegie & Associates, Inc. All rights reserved. ee_ad_031414_mi 20140609-NEWS--0016-NAT-CCI-CD_-- 6/5/2014 4:30 PM Page 1

RAYMOND J. WOJTOWICZ Page 16 CRAIN’S DETROIT BUSINESS June 9, 2014 WAYNE COUNTY TREASURER CRAIN’S MICHIGAN BUSINESS PROPERTY AUCTION Analysts consider impact REGISTRATION: of CO2 regulations on state

The Obama adminis- don’t use electricity to steep challenges in meeting the fed- tration’s plan to reduce Shifting fuel their operations. eral Corporate Average Fuel Econo- JUNE 9-18 carbon dioxide emissions They use … you guessed my (CAFE) standards, which re- from existing U.S. coal- Gears it … coal. The proposed quire automaker fleets to reach 54.5 fired power plants by 30 regulations are limited to mpg by 2025. percent by 2030 is creat- coal-fired power plants, For the new EPA standards roll- DELINQUENT TAX ing the expected mael- not coal-fired steel plants. out, the auto industry feels a state- strom of backlash. The So the effects could be by-state set of deadlines would be proposal is being labeled minimal, said John An- challenging, said Julie Fream, a jobs killer and a detri- ton, Washington, D.C.- president and CEO of Troy-based PAYMENT PLAN ment to American manu- based director of steel Original Equipment Suppliers Associa- facturing. service for analysis firm tion. The proposal, released IHS Inc. “OESA is concerned what the Dustin Walsh last week by the U.S. Envi- Anton said the in- new emissions proposal will do ronmental Protection Agency, is de- creased use of natural gas in the relative to energy costs for all signed to battle global warming, U.S., thanks to the oft-debated manufacturers, including our but at what cost? What is its effect fracking in parts of the country, is members,” Fream said in an on Michigan industry? Will the pro- actually offsetting much of the pro- emailed statement. “Additionally, posed cuts save polar bears but kill posed emissions cuts anyway. the proposal allows state-by-state manufacturing? Analysts are start- “The natural gas boom really implementation of the require- ing to weigh in. made this easier to take and miti- ments, increasing the complexity The plan, which sets different tar- gates a lot of the pain of this pro- for manufacturers.” gets in each state, would require posal,” Anton said. New regulations and extreme Michigan to reduce CO2 output by Anton said increasing natural weather, whether global warming- 31.5 percent from 2012 levels, The gas production will likely offset a related or not, affects automotive Associated Press reported. Nearly large portion of CO2 emissions. production and will cost Michigan half, 49 percent, of electricity in the Michigan gets approximately 20 industry. state is produced from coal, above percent of its electricity from nat- How much? That’s going to be the 39 percent national average. ural gas. debated in the months and years Michigan is the 11th-highest carbon ahead as much as climate change. dioxide producer in the country. This column originally appeared President Barack Obama has OEMs yet to weigh in as a blog post on crainsdetroit.com. WayneCountyTreasurerMi.com asked the EPA, which has the au- The automotive industry has so Dustin Walsh: (313) 446-6042, thority to go around Congress under far remained silent on the EPA pro- [email protected]. Twitter : the Clean Air Act, to finalize the posal. The industry is already facing @dustinpwalsh new rules by June 2015. States have until 2016 to submit their plans — or WAYNE STATE UNIVERSITY 2017, if they choose to work in a joint effort with another state. The National Association of Manu- facturers has taken a strong stance MBA OPEN HOUSE against the EPA proposal. Jay Tim- mons, president of the Washington, GET ON THE CAREER FAST TRACK D.C.-based NAM, said stricter regulations would force manufacturers Tuesday, June 24, 4 p.m. to 7 p.m. to move manufacturing to lower- McGregor Memorial Conference Center cost, less-regulated countries.

Learn more about how you can advance your career with a graduate business degree from Wayne State University at our MBA Open Cold reaction from steel House. Programs include: The steel industry, ground zero Join Verlander’s team to support veterans • MBA for automotive production, is often • Master of Science in Taxation cited as a major producer of pollu- and score some prizes! • Master of Science in Accounting tants, including carbon dioxide. • Graduate Certiﬁcate in Business Experts predict the industry con- Justin Verlander and his Wins for Warriors program are competing to raise the tributes roughly 5 percent of glob- most money in Crowdrise’s Veterans Charity Challenge 2 and he needs your help! Many programs offer ﬂexible program options in Midtown Detroit, al carbon emissions. Farmington Hills and online. The MBA Open House is FREE as is the Thomas Gibson, president and WSU graduate application. Join the team and donate or raise money between MAY 22ND-JULY 3RD for your CEO of the American Iron and Steel In- chance to win some cool prizes and help our efforts to support the mental health Register today at business.wayne.edu. stitute, which has an office in South- and emotional well-being of veterans and their families. field, said the proposal would crip- ple the steel industry and raise We are competing against organizations across the country and the top teams costs for manufacturers and con- win cash prizes from craigconnects, founded by Craig Newmark of craigslist. sumers. “Energy, in particular electrici- Last August, Justin committed $1 million to launch Wins for Warriors with the ty, is one of the most significant cost vision of a world where there is no stigma around veterans and their families drivers for the production of steel,” getting the support they need to address mental health issues. The organization Gibson said in an emailed state- has partnered with national leaders like The Mission Continues and Give an Hour ment to Crain’s. “This proposal will to bring successful models to Detroit, Richmond and Norfolk. The work does not result in increased electricity costs stop there and we need your support to expand efforts to include a therapeutic for industrial consumers, who ulti- mately have the compliance costs retreat and funding for cutting edge research. and risks passed on to them. A regulation from EPA that will dispro- Sign up today and help Justin portionately impact coal-generated electricity will have a detrimental have a deep and sustainable effect on steelmaking.” impact on the veteran community. Dearborn-based Severstal North America Inc., which the Michigan De- SCHOOL OF BUSINESS partment of Environmental Quality ap- To learn more visit www.winsforwarriors.org ADMINISTRATION proved for a controversial emis- Follow us on twitter @WinsforWarriors sions plan last month, declined to comment directly on this story. However, most steelmakers in Michigan, including Severstal, 20140609-NEWS--0017-NAT-CCI-CD_-- 6/5/2014 4:30 PM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 17

Monthly Israel WHERE MICHIGAN DOES BUSINESS

Clients: Israeli, European and U.S. mar- Belfor USA srael has a growing high-tech sector, including Crain’s World Watch Month- kets Based: Birmingham companies focused on aviation, communications, ly report showcases companies Operations: Belfor has a main base in Tel Icomputer-aided design and medical electronics, in leading the way in internation- Aviv and a branch in Haifa, part of a net- addition to traditional manufacturing. Plasan Carbon Composites Inc. Israel’s GDP for 2013 was $272.7 billion, up $29.8 al business, as well as those ex- work of more than 300 offices in 31 coun- Based: Wixom billion since 2011. According to the CIA World Fact- panding their global operations. tries. Operations: A subsidiary of Israeli defense book, services comprise 66.4 percent of Israel’s econo- If you know of a Michigan Employees: 50 company Plasan Sasa, Plasan Carbon Com- my, with 80.3 percent of the workforce working in company that exports, manu- Products/Services: Commercial and resi- posities has a headquarters, R&D center, that sector. factures abroad or has facilities dential services, with special emphasis on and engineering and production facilities in High-tech equipment, cut diamonds and pharma- abroad, email Jennette Smith, local needs for disaster recovery, including Kibbutz Sasa, in northern Israel. ceuticals are some of Israel’s leading exports, worth managing editor, at water and fire damage, asbestos removal Employees: 330 $60.67 billion in 2013. Israel’s most common imports [email protected]. and other services. Products: Vehicle armor include raw materials, military equipment, fuels and Top executive: Nimrod Vered, CEO Top executive: Dani Ziv, CEO consumer goods. Its largest trading partner is the COMING UP Clients: Oshkosh, AM General, Lockheed Mar- U.S. tin, General Dynamics Land Systems Canada Natural gas fields were discovered off Israel’s July: United Kingdom coast in 2009 and are expected to give the country’s August: Thailand/Malaysia energy sector a boost in the coming years. RGIS LLC Based: Auburn Hills Israel and the West Bank. This is located at Israel operations: An office in Rishon importer UMI’s headquarters in Rishon LeZion services the entire country. LeZion. There is also an advanced technolo- Employees: 300 gy center in Herzliya. Services: Physical inventory, store map- Haifa Employees: Approximately 50 people work ping, fixed asset inventories, equipment at the GM Advanced Technology Centre. rental, seasonal staffing Bnei Brak About 400 people work at UMI, though they Top executive: Guy Ratzenberg, country Herzliya are not GM employees. manager Holon Products: A range of Chevrolet and Cadil- Clients: Alon Blue Square Israel Ltd., Super- Rishon LeZion lac vehicles is sold in Israel (via importer Tel Aviv Pharm, Shufersal, Rami Levi Hashikma Market- UMI). Additionally, Opel vehicles are im- Yad Eliyahu ing, Ace, Osher Ad, Dor Alon, idigital ported into Israel (direct from Opel in Ger- Cascade employs 25 in a joint venture. Jerusalem many) via another importer. Top executive: Ray Schmit, country manager Cascade Engineering Inc. Beersheba More information: In 2013, Chevrolet sales Based: Grand Rapids in Israel totaled 7,897 units. Chevrolet mar- Yeruham Operations: Cascade has a 50-50 joint ven- ket share is 3.5 percent. So far in 2014, ture with Beersheba-based Dolav Plastic Chevrolet sales have already reached 5,304 Products called Decade Products, which man- ISRAEL units, with market share growing to 5.6 per- ufactures plastic products for Israeli mar- cent. kets and for export to Europe, Asia, Africa and the Middle East. Perrigo Corp. Employees: 25 Tomcar North America makes off-road vehicles. Products: Plastic pallets and large con- Based: Allegan tainers Operations: Perrigo Israel has four business Tomcar North America Top executive: Ralph Harris, president and units, in Ramat Hovav, Yad Eliyahu, Bnei CEO, Decade Products Brak and Yeruham. Based: Rochester Hills Employees: 1,300 Operations: Development and manufactur- Products: Develops and manufactures ing operations located near Tel Aviv Chrysler Group LLC generic oral prescription drugs, mainly fo- Employees: 9 Based: Auburn Hills cusing on active pharmaceutical ingredi- Products: Tomcar, a military grade off- Operations: Fiat Chrysler operates in Israel Fusepoint Solutions ents. Also produces generic and OTC phar- road vehicle maceuticals, branded OTC, vitamins and Top executive: Yoram Zarchi, managing di- through the importers Mediterranean Car Based: Ann Arbor mineral supplement products. Perrigo also rector Agency Ltd. and Automotive Equipment & Ve- Operations: Research and development sells diagnostic and other medical pharma- Clients: Tomcar NA, Tomcar Australia, South hicles Ltd. These entities distribute and sell center in Holon ceutical products in Israel. Sudan Ministry of Interior Fiat Chrysler vehicles. MCA has its head- Employees: 5 Top executives: Joseph Papa, chairman, quarters in Tel Aviv. AEV sells Chrysler Products: Internet of Things/Connected president and CEO; Sharon Kochan, vice — Compiled by Bridget Vis and Natalie Broda Jeep Dodge and Ram brands through eight Vehicles software, which connects the In- Michigan Israel Business Bridge assisted in showrooms in Israel. ternet to objects to transfer data wirelessly president and general manager interna- the research for this report. Employees: MCA: 300; AEV: 450 Top executive: Ehud Naamani, CEO tional Products: MCA: Romeo, Fiat, Abarth, and Fiat LCV; AEV: Jeep Grand Chero- kee, Jeep Wrangler, Jeep Compass and General Motors Co. the new Jeep Cherokee, Chrysler Grand Based: Detroit Voyager, Chrysler 300, Dodge Journey, Operations: Has a regional marketing of- Ram 3500 fice focused on providing sales support for Top executives: Ori Lahav, CEO of MCA; It- tamar Givton, managing director, Automo- tive Equipment Group; Tzvi Neta, chairman of AEG Domino’s Pizza Inc. Based: Ann Arbor Operations: 49 Domino’s Pizza stores throughout the country; Israel’s operation is based in Jerusalem. Employees: 100 Products: Pizza, beverages, side items Top executive: Yossi Elbaz, CEO of Domi- no’s Pizza Israel Clients: Retail pizza customers Domino’s Pizza operates 49 stores in Israel. Perrigo’s four business units in Israel include this one in Yeruham. DBspreadAD_DBspreadAD.qxd 6/4/2014 3:09 PM Page 1

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Honoring LIFETIME ACHIEVEMENT those who drive growth Choon’s Design Biggby Coffee Applied Imaging WorkForce Software P.M. Environmental Inc. Mango Languages Indratech BorgWarner Inc. and innovation … Choon Ng L: Michael McFall John Lowery Kevin Choksi L: Michael Kulka Jason Teshuba Surendra Khambete James Verrier Since 1986, EY has celebrated R: Bob Fish R: Pete Bosanic WINNER John Lowery brings a “yes-it-can- In 1999, Kevin Choksi and his As a lifelong lover of language and In founding Indratech, Surendra WINNER Khambete brought technology the entrepreneurial spirit of Inventor and entrepreneur Choon Equal partners Mike McFall and Bob be-done” vision to Applied Imaging. co-founders created WorkForce Starting in 1992 with a single truck culture, Jason Teshuba has always Shortly after James Verrier was Grand Rapids Plastics Inc. Ng created a way to weave rubber He has attracted a strong group of Software to address an unmet need and some business cards, Michael been frustrated by the poor quality together with manufacturing. The named BorgWarner’s president Fish have always had clear roles. Arthur Bott men and women who have bands into brightly colored Bob is the strategist and the face professionals and challenged them among large employers. Since then Kulka and Pete Bosanic have grown of the options in the language- end result is a technology-based and CEO, he introduced himself to bracelets, rings, Õ gures and other of Biggby while Mike focuses on to remain ahead of the technology the Õ rm is in new global markets, PM Environmental to a company learning market. It was this unmet company offering an effective employees, saying, “I never forget followed and achieved their where I came from, how I got here Arthur Bott sold his company items kids wear and share with sales, Õ nances and legal matters. curve. His leadership style allows with hundreds of clients in the U.S., that works with banks, government need that led to Mango Languages, and sustainable replacement for and how that made me who I am.” in 2001 to retire, but wound their friends. It is the winner of While each hold very different him to be approachable, present Canada, the U.K. and Australia. agencies and numerous other a product line now used for 60 cushioning products that reduces dreams. These leaders have Humility, respect and trust are core up buying the company back in four Toy Industry of America roles in the business, one thing and available, and unify his team businesses throughout the U.S. languages. problems associated with recycling to his value system, and he has 2006. Since then, he’s been able changed the lives of countless awards, including the coveted Toy they both agree on is their focus. behind his vision. as an environmental risk expert. or disposal. implemented those values to the to reduce costs and grow the of the Year award. Their Õ ve simple cultural values are company. company. He’s brought in new others by building their imbedded in everything they do clients like Magna International, and every decision made. businesses and giving back Johnson Controls Inc. and Chrysler Group LLC and grown to their communities. Their Information Systems from 45 employees to 300. passion, vision and persistence Resources Inc. Level One Bank Arrow Strategies Luther Elliott Kyyba Inc. Patrick Fehring MPF Acquisitions Inc. dba stand as a testament to their Reliable Aftermarket Jeffrey Styers Tel Ganesan Marshall Plastic Film Shiloh Industries Parts Inc. Luther Elliott started Information Patrick Fehring created Level One John Roggow Ramzi Hermiz When Tel Ganesan left Chrysler in dedication. Thomas Salisbury Zoup! Fresh Soup The combination of a career as Systems Resources Inc. out of his Bank in 2007 because, after 26 2005, his goal was to chase his Ramzi Hermiz took over as CEO of Company a professional boxer followed by Farmington Hills home 16 years years in the industry, he thought he When Marshall Plastic Film went SPIRIT OF Twenty-eight years ago, EY entrepreneurial dreams. His risk Shiloh Industries in 2012 when it Professional dedication and 10 years in the stafÕ ng industry ago. The company has grown not could build a better bank. Starting into bankruptcy, John Roggow Eric Ersher paid off with the creation of Kyyba, was a quiet, steady public company. ENTREPRENEURSHIP founded the EY Entrepreneur competitiveness are a few of the led Jeffrey Styers to start his own by selling computer systems, but with card tables in a rented ofÕ ce, took the opportunity to buy qualities that helped Thomas which offers engineering and IT Within three months of his arrival, Zoup has grown from one location company, Arrow Strategies. It by recycling those no longer being the bank has gone from zero the company for which he had Salisbury take a company from stafÕ ng services and software Hermiz made his Õ rst acquisition, Of The Year™ Program to in 1998 to its current roster of started with one ofÕ ce and is now used. Each year, the company assets to $600 million under been working. Together with startup to multimillion dollars in development. adding two more within a year. Detroit Venture Partners 62 in 15 states and Ontario. Eric providing contract stafÕ ng services processes 2 million pounds of management. three investors, they started the recognize these dynamic just Õ ve years. He’s been able to He brings not only a vision for Ersher’s focus has always been in IT, engineering, health care and electronic hardware. company from scratch in 2003, use multiple e-commerce platforms transforming a company, but the on quality and an “everything professional services across seven working to bring back former leaders and to build an to provide aftermarket agriculture determination and skills to bring matters” philosophy that is one ofÕ ces in the U.S. customers and grow the business. and construction equipment parts. that goal to fruition. inÖ uential community of of the pillars of the company’s deliberate culture. innovative entrepreneurs. Josh Linkner Each June, we host BUSINESS Alliance Franchise Goodwill Industries LLamasoft Inc. Brands LLC of Greater Detroit celebrations in 25 U.S. cities to SERVICES Donald Hicks Michael Marcantonio Lorna Utley Rapid Global Business MachineTools.com welcome the men and women GoldÕ sh Swim School Michael Marcantonio started as MVC Holdings LLC Solutions Inc. In the six years that Lorna Utley Stuart Carlin Franchising LLC In 10 years, Donald Hicks grew an investor in 2000 and became Linda Torakis who are regional Õ nalists into Chris McCuiston Nanua Singh LLamasoft from one person CEO by 2011. As CEO he has been has led Goodwill Industries, she not (himself) to a 100-person Õ rm. He instrumental in planning the future only helped the nonproÕ t survive Stuart Carlin founded When Linda Torakis and her husband our community and to toast MachineTools.com on a simple Chris McCuiston has grown his As head of an engineering created LLamasoft because the of the company and positioning it the recession, but also grow. A Mike co-founded MVC Holdings idea: Bring buyers and sellers of business from one location and services, workforce management industry needed a solution, and as a driving force in the marketing crucial piece was re-entering the LLC in 2008, it was bleeding $1.5 L: Dan Gilbert their vision. Their energy and Summit Health Inc. industrial equipment to one online 2,800 students per week to 13 and software development Õ rm, he felt that, “if I didn’t make this and visual communications retail market; in the last three million per month. They were able R: Brian Hermelin marketplace. With a user-friendly strategic vision have turned locations and 18,000 students. Richard Penington Nanua Singh recognized the need happen, maybe no one would.” industry. years, Goodwill has opened three to turn the company around in less interface and transparent pricing, He developed a proprietary swim to diversify out of doing mostly stores that created 75 new jobs. than six months and save over 300 Three people with years of WINNER automotive work in 2006. Now the site now has a presence in 200 manufacturing jobs. Additionally, their dreams into reality. We curriculum, uses an efÕ cient entrepreneurial experience in the aerospace, locomotive and countries. they found capital to fund future applaud them all for taking the computer based scheduling Richard Penington built Summit DIVERSIFIED CONSUMER wanted to help others looking to system, invested in his building Health from the ground up. He medical equipment industries, DISTRIBUTION & growth. start their own enterprises. The the Õ rm has been consistently SERVICES SERVICES road less traveled to launch infrastructure and established an took strategic risks along the way, work isn’t just capital needs, but intense customer focus—which is such as reinvesting heavily in the recognized as a fast-growing MANUFACTURING FAMILY BUSINESS also the serious hands-on work it new companies, open new the families. IT infrastructure at a time when company. takes to realize something out of others weren’t. These risks have thin air. markets and fuel job growth. pushed the organization toward Dan Gilbert, Josh Linkner and RETAIL & new goals and innovation, and TECHNOLOGY Auburn Pharmaceutical Brian Hermelin founded Detroit Join us in celebrating their instilled a culture of creativity. Venture Partners with the CONSUMER Jeffrey Farber mission to rebuild Detroit through passion, innovation and Sachse Construction Great Expressions Kar’s Nuts Inc. entrepreneurial Õ re. Since PRODUCTS Todd Sachse Alta Equipment Company unwavering commitment Dental Centers When Jeffrey Farber worked for Nick Nicolay creating DVP, they have made 23 WINNER Rich Beckman Steven Greenawalt the company his father owned, investments in early and to win in the marketplace. he learned the values, as well as WINNER seed stage digital technology Todd Sachse has built his company WINNER WINNER the missteps, of running a drug When Nick Nicolay took over Kar’s companies. In turn, those by exceeding in many niches: Steven Greenawalt articulates Congratulations to all of our Computerized Facility As CEO, Rich Beckman identiÕ ed distribution company. With those Nuts in 1995, he became the third companies have each grown, renovating historical buildings; a vision to his employees and Forensic Fluids Integration LLC acquisitions as the critical lessons learned, he started his own generation of his family to run the hiring hundreds of people, nalists! constructing ofÕ ce buildings, stresses the importance of creating Õ Laboratories growth driver for the company company when the demographics, company. But changes had to be creating technological and Robert Verdun hotels, schools and shopping “customers for life.” Alta has been government regulation and Flatout Inc. and strengthened the existing made. The company diversiÕ ed entrepreneurial density in the Bridget Lemberg centers; and completing build-outs on a growth path after a bold move WINNER infrastructure. Under his insurance mandates were driving into vending channels, leading to central business district. Stacey and Mike Marsh in retail centers, airports, medical in 2009 when the company made the consumer to generics. Bridget Lorenz Lemberg turned leadership, Great Expressions a strategic focus on trail mix. Now Surviving the Tech Bubble of 2001 ofÕ ces and general ofÕ ce buildings. four acquisitions in one month that WINNER a simple and innovative vision—a and the Great Recession of 2008 became proÕ table in 2000 and the Sweet ‘n Salty Mix is the top has seen both top- and bottom-line grew both the territory and the Stacey and Mike Marsh recognized quick, precise drug test using saliva and 2009 has brought lessons selling trail mix in America. growth every year since. product portfolio. a void in the marketplace for a —into a growing startup, and one and a more solid business model Angie Kelly Ö atbread that could become a of the few female-led technology to Robert Verdun. It taught him to Partner, EY Entrepreneur Of The Year premier carrier for many food companies in the nation. Her recipe keep high standards and diversify Michigan & Northwest Ohio applications. Flatout is now a full line for success is her determination his business base. Program Director of artisan Ö atbreads sold in retail to succeed and her commitment 2014 JUDGING PANEL stores across the United States, to stafÕ ng FFL with the very best Canada, Puerto Rico and Mexico. innovative employees. Andy Appleby David Cole Brian Demkowicz Willie Geiser Jeff Ishbia Chairman Chairman AutoHarvest Managing Partner Chief Executive OfÕ cer Chief Executive OfÕ cer General Sports Chairman Emeritus Huron Capital Partners Allshred Services United Shore and Entertainment Center for Automotive 2008 award winner 2005 award winner Financial Service 2002 award winner Research 2013 award winner

Arvind Pradhan Ron Shahani Michelle Sherman Vince Thomas Chief Executive OfÕ cer President and Chief Vice President and Chairman and founder Camaco, LLC Executive OfÕ cer Chief Financial OfÕ cer Billhighway 2005 award winner Acro Services Barden Companies 2011 award winner 2003 award winner DBspreadAD_DBspreadAD.qxd 6/4/2014 3:09 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 9, 2014

CRAIN'S LIST: LARGEST MICHIGAN BIOTECH COMPANIES Ranked by 2013 revenue

Full-time Company Revenue Revenue local Address ($000,000) ($000,000) Percent employees Rank Phone; website Top local executive 2013 2012 change January 2014 Type of business Stryker Corp. Kevin Lobo $9,021.0 $8,657.0 4.2% 0 Manufactures medical devices and medical equipment, including 1. 2825 Airview Blvd., Kalamazoo 49002 president and CEO reconstructive, medical and surgical, and neurotechnology and (269) 385-2600; www.stryker.com spine products Perrigo North America B Joseph Papa 3,539.8 C 3,173.2 11.6 0 Pharmaceuticals 2. 515 Eastern Ave., Allegan 49010 chairman, president and (269) 673-8451; www.perrigo.com CEO, Perrigo Co. plc Neogen Corp. James Herbert 106.2 C 91.1 16.6 NA Develops and markets products dedicated to food and animal 3. 620 Lesher Place, Lansing 48912 chairman and CEO safety. Revenue is for food safety only. (517) 372-9200; www.neogen.com InfuSystem Holdings Inc. Eric Steen 62.3 58.8 5.9 NA Supplier of infusion services to oncologists and other outpatient 4. 31700 Research Park Drive, Madison Heights 48071-4627 CEO treatment settings (800) 962-9656; www.infusystem.com Rockwell Medical Inc. Rob Chioini 52.4 49.8 5.1 110 Hemodialysis products and specialty pharmaceuticals for the 5. 30142 Wixom Road, Wixom 48393 founder, chairman, treatment of iron deficiency and secondary hyperparathyroidism (248) 960-9009; www.rockwellmed.com president and CEO Medcart Specialty Pharmacy Eddie Abueida and Ed 52.0 35.0 48.6 70 Specialty pharmacy services 6. 32131 Industrial Road, Livonia 48150 Saleh (877) 770-4633; www.medcartpharmacy.com co-CEOs Ash Stevens Inc. Stephen Munk 22.7 21.5 5.6 79 Makes active pharmaceutical ingredients; develops processes and 7. 18655 Krause St., Riverview 48193 president and CEO analytical methods, and manufactures such ingredients as pre- and (734) 282-3370; www.ashstevens.com post-FDA approval Aastrom Biosciences Inc. Nick Colangelo 19.0 21.0 -9.5 NA Regenerative medicine company and developer of expanded, 8. 24 Frank Lloyd Wright Drive, Lobby K, Ann Arbor 48105 president and CEO autologous cellular therapies for the treatment of severe, chronic (800) 556-0311; www.aastrom.com cardiovascular diseases Xoran Technologies Inc. Ronald Doria 12.0 NA NA NA Medical device: Compact, low-dose radiation specialty CT 9. 5210 S. State Road, Ann Arbor 48108 president scanners (800) 709-6726; www.xorantech.com Custom Biogenic Systems Inc. John Brothers 7.0 8.0 -12.5 32 Life science equipment manufacturer 10. 74100 Van Dyke Road, Bruce Township 48065 president and CEO (586) 331-2600; www.custombiogenics.com

This list of Michigan biotech companies is an approximate compilation of the largest companies involved in the research and development or manufacture of products designed to improve the health and well-being of humans. It is not a complete listing but the most comprehensive available. Accuri Cytometers, No. 4 on last year's list and which Crain's believes would make the list, was unable to provide figures, and a reliable estimate could not be made. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available. B Perrigo Co. acquired Elan Corp. plc Dec. 18, 2013. They operate under the global name Perrigo Co. plc, incorporated in Ireland. C Fiscal year end 6/29/13 LIST RESEARCHED BY SONYA HILL WE’RE LOOKING FORWARD TO HEARING NOTHING BUT PRAISE. – TIMOTHY MCCARTHY CHAIRMAN, SOAVE ENTERPRISES TRANSPORTATION GROUP BOARD EXECUTIVE COMMITTEE, DMCVB

Like the General Assembly of the Presbyterian Church (U.S.A.), Detroit celebrates diversity and all its possibilities. This June, along with 8,000 of their conference attendees, we’re ready to celebrate the newly renovated Cobo Center. Our city is fi lled with fabulous eateries, amazing attractions and much more. Such variety promises that their estimated spending of almost $14 million will be worth every penny — and garner Detroit plenty of praise. Be part of America’s great comeback city. For more comeback stories, visit meetdetroit.com/comeback-stories. 20140609-NEWS--0021,0022-NAT-CCI-CD_-- 6/5/2014 4:54 PM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 21

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship The faces of success editor and covers the city of Detroit. rain’s annually recognizes entrepreneurs who Crain’s will honor the winners at a breakfast July She can be are noteworthy for their innovation, problem- 24 at The Henry in Dearborn. Join us to celebrate reached at (313) solving ability or sheer relentlessness. Winners these entrepreneurs and hear first-hand David-vs.- 446-0416 or at C [email protected] are divided into revenue categories, with another for Goliath stories as small companies talk about suc- social entrepreneurs and intrapreneurs. ceeding against their larger rivals. Additionally, Amy Haimerl This year’s winners and runners-up range from a roundtables will discuss everything from how to team redeveloping Detroit’s neighborhoods to a busi- manage growth to how your banker sees your busi- Time to Hatch ness that connects diverse candidates with employers ness. desperate for top talent. For more information, go to crainsdetroit.com/events. new biz ideas Every year, I look forward to the THE HONOREES Comerica Hatch Detroit business competition. $30.1 million to Every year, I wonder what new retail ideas local entrepreneurs will dream $100 million up to open in the city of Detroit. Every Winner: George Matick year, I hope a shoe store will be Chevrolet among the finalists. Karl Zimmermann, Nobody has yet fulfilled my dream of (left) cowboy boots and whimsical heels, but that’s OK because the past $5.1 million to winners have already woven $30 million themselves into the fabric of our Winner: Prolim Global community. Hugh, the bachelor- Corp. lifestyle store, has become a mainstay Prabhu Patil, Page 22 in Midtown. La Feria, the Spanish tapas restaurant, took way longer than Finalist: Mango expected to open, but it’s now a Languages, Page 25 favorite dining destination. And I look forward to the day that last year’s big Under $5 million winner, Batch Brewing Co., opens in Winner: Beyond Gaming Corktown. Gabe Rubin and Noah Even more exciting, though, is the Krugel, Page 23 network of finalists that the Finalist: Avomeen competition fosters. While there can Analytical Services, be only one $50,000 prize winner Page 25 each year, many small-business owners use the competition to build a Intrapreneur customer base before ever opening Winners: Michael Forsyth their doors. and Lori Allan Take Busted!, for example: The bra Revolve Detroit, Page 24 shop was a top 10 finalist last year and used the momentum to open in Social entrepreneur Midtown’s Park Shelton. Owner Lee Padgett was told that a bra shop would Winner: Tekisha Lee never work in the city of Detroit, but DiverseNote, Page 25 she had to order more — twice! — Finalist: Noam Kimelman, before her doors ever opened last Page 25 December. LARRY PEPLIN And now there is some extra help Karl Zimmermann wanted to renovate George Matick Chevrolet back in 2008. But his GMAC representative told him to save for entrepreneurs such as Padgett. his cash for a recession that was just around the corner. This year, the Detroit Lions signed on as a sponsor, agreeing to provide “Our rule of thumb is vehicles and generated financial assistance to the George Matick Chevrolet to greet anybody within revenue of $99 million. competition’s previous finalists. Karl Zimmermann WINNER 10 feet of you,” General Sales Manager Paul Zim- “This furthers our commitment to Redford Township $30.1 MILLION Manager Molly Williams mermann, Karl’s younger Detroit’s neighborhoods and broadens to $100 MILLION said. “We’re big on train- brother, credits his experi- our collaboration with Hatch Detroit,” ing.” enced 19-member sales It’s not the 100-car showroom, high-vol- said Tom Lewand, Lions president. Top to bottom, employ- staff. ume Corvettes or massive new collision shop “The growth of small business in ees recognize that a good customer experi- “One’s been here 34 that have made George Matick Chevrolet one of Detroit continues to be a significant ence is the dealership’s edge, she said. years, another 20, and we the top 1 percent of U.S. Chevy dealers based part of the city’s resurgence and is an George Matick Jr. founded the company in have eight to 10 with at on sales volume. important part of the Lions community 1967 when he purchased and renamed Paul least eight years,” he said. Rather, it is employees’ obsessive ap- Paul Zimmermann engagement strategy.” McGlone Chevrolet on Joy and Evergreen The Zimmermanns will proach to customer service, owner Karl Zim- The 2014 competition kicked off on roads in Detroit. In 1977, he converted a de- improvise to gain an edge. A decade ago, a mermann said of the Redford Township deal- June 1, and submissions are due by partment store and a connected Farmer Jack survey found that customers considered the ership. July 16. After that, Hatch Detroit grocery store at I-96 and Telegraph Road into dealership’s service expertise ordinary. So For starters, Matick Chevrolet works on executive director Vittoria Katanski a rambling dealership with 107,500 square the store made Corvettes a priority, betting greetings. Walk in the front door and head to and a team of judges will narrow down feet under one roof — and a massive show- the required investment in service equip- the counter in the back corner. You’ll pass the submissions to their top 10 and room as his centerpiece and competitive ad- ment and certification would boost the deal- then push them out for public voting. several employees who make eye contact and vantage. ership’s technology cred. greet you, but they wait for you to initiate To submit your idea, visit New-car sales have almost tripled since further conversation. That’s the norm hatchdetroit.com. 2009. Last year, the dealership sold 2,022 new throughout the building. See Matick, Page 22 20140609-NEWS--0021,0022-NAT-CCI-CD_-- 6/5/2014 4:28 PM Page 2

Page 22 CRAIN’S DETROIT BUSINESS June 9, 2014 Second Stage Prolim Global Corp. Prabhu Patil Farmington Hills

As a scientist in the early 1990s, Prabhu Patil built surface-to-air missiles for India’s Ministry of De- fense. But while working on that project, he became increasingly inter- ested in product lifecycle management, which deals with the product from its beginning, through engineering design and manufacture to service and, final- ly, disposal. “Customers want more functional features, faster and at a lower cost,” said Patil, presi- WINNER dent and CEO of Farmington $5.1 MILLION Hills-based to $30 MILLION Prolim Global Corp. “PLM technology enables this.” Prolim, founded in 2010, makes COURTESY OF PROLIM GLOBAL CORP. Web-based tools that track work Prabhu Patil’s interest in product lifecycle management led to the creation of flow processes within organiza- Prolim Global, which makes Web-based tools that track work flow processes. tions. The company has developed software that allows customers to many small and midsized cus- find qualified people and hire tomers who are not aware or are them within 48-56 hours. Quitting that not leveraging this technology.” The company’s consulting ser- “ Patil could’ve stayed in the six- vices include PLM software and kind of a job, where figure salary position at Siemens, services, program management but he had wanted to run his own and IT architecture. everything is businesses since he was a child. Prolim employs more than 200 established, ... it’s “That’s the biggest challenge,” and provides IT consulting to com- said Patil, who has an MBA in cor- panies such as Siemens Corp., IBM like jumping into ice porate strategy and marketing from and Cisco Systems Inc. The compa- the University of Michigan. “Quitting ny posted revenue of $5.1 million cold water. that kind of a job, where everything in 2013, up from $1 million in 2012. ” is established, and knowing that Prolim has been recognized by Prabhu Patil, Prolim Global Corp. there will be no office, no set salary Inc. magazine as one of the coun- and no person to work for you … it’s try’s fastest-growing private com- like jumping into ice cold water.” panies and was named one of automotive industry,” he said — to Prolim is working with Lawrence Michigan’s 50 companies to watch work as a senior manager for Technological University to create a by the Cassopolis-based Edward Siemens PLM Software, a business lab to train students in product Lowe Foundation. unit of the company’s Industry Au- lifecycle management. Patil came to the U.S. in 1997, tomation Division. Patil worked on “There is a huge shortage of working for IBM in Charlotte, N.C., the Ford Motor Co. account, han- PLM engineers,” Patil said. “We as a project manager in IT consult- dling PLM consulting in 13 coun- are focused on building these engi- ing. While there, his fascination tries. neers by working with universi- with product lifecycle manage- “PLM technology usage is high- ties and engineering colleges to ment grew. ly matured in automotive and impart PLM technology in their Two years later, Patil moved to aerospace OEMs and their suppli- curriculum.” Detroit — “the hub of PLM in the ers,” Patil said. “But there are still — Shawn Wright

Matick: Love blossomed into a career ■ From Page 21 It did. And as ’Vette sales shot at becoming a dealer. est) rate 50 basis points and warn jumped from single digits annual- “The lure was a chance to own me to conserve cash,” Zimmer- ly to triple digits, the specializa- something,” said Zimmermann, mann recalled. “He said, ‘If your tion also boosted overall volume who started in 1993 as a car-order- roof leaks, don’t fix it.’ ” and helped make Matick Chevy a ing planner. The makeover plan went back in buyer’s destination. The two often bumped heads. the drawer. Since last summer, the original Four years later, as general man- But this year, Zimmermann has building has been stripped to the ager, he wasn’t certain his father- covered every horizontal surface bones, reconfigured and rebuilt to in-law would sell to him. But late in Matick’s former elegant office the latest green standards. It culmi- that year, after Karl’s team com- with construction blueprints, both nates a plan first drawn up in 1997. pleted the dealership update plan, for the dealership makeover and a One that almost didn’t happen. Matick sold him 15 percent, with a new 38,000-square-foot body shop When he sat down in George 10-year buyout plan. With three about a mile southwest. Matick’s spacious, wood-paneled daughters, Matick wanted to cre- office in 1992, Karl Zimmermann ate a liquid estate. Matick died in The biggest change is the show- was a frequent-flying young execu- February this year. room. tive for Andersen Consulting. “I thought I knew a lot when I “It’s still Michigan’s largest “I came to ask for his daughter got here,” Zimmermann said. showroom,” Zimmermann said. Sarah’s hand in marriage,” said “Now I realize how much he “But instead of cramming 162 cars Karl, now 49. Matick was 65 and taught me.” in there, we’re adding other fea- looking to sell his dealership. The next challenge was timing. tures like a seven-car new-vehicle “He was old school,” Zimmer- Zimmermann took full ownership delivery area that lets customers mann recalled. “I was young and a in January 2008 as the recession drive straight out the front. We little full of myself.” was brewing. can still get 100 cars on the floor if Matick saw enough to offer his “In August, my GMAC guy we need to.” prospective son-in-law a job and a called to raise my floor plan (inter- — Jesse Snyder 20140609-NEWS--0023-NAT-CCI-CD_-- 6/6/2014 11:01 AM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 23 Second Stage

against his brother on a Sony ny with friend next-gen game consoles as they clude launching a social mobile Beyond Gaming PlayStation 2 in 2006 that Gabe Ru- and Web de- arrive on the market, as well as game this summer and a fantasy bin came up with the idea of creat- WINNER signer Noah an emphasis on customer service. sports game linked to charity of Michigan LLC Krugel, 42, fundraising in the fall. ing an online video game tourna- UNDER $5 MILLION He also said they were careful not Gabe Rubin and Noah Krugel ment service. who is chief to overspend on frivolous market- That will necessitate a handful creative offi- of new hires, including at least Birmingham Not long after, Beyond Gaming of ing. cer. Beyond four developers. Michigan LLC was born. It was during an online cross- Gaming is the parent of GamerSa- The company, which is prepar- “We consider ourselves to be a country game of “NHL Hockey ’95” Rubin, 34, co-founded the compa- loon.com, which allows players to ing for a Series A funding round, pioneer of this industry,” said Ru- enter tournaments for cash prizes recently relocated to a Birming- bin, who previously worked in real in states that allow games of skill ham office that overlooks Wood- estate. for money. ward Avenue. Expansion plans in- — Bill Shea Players compete in bracket-style head-to-head competition on con- sole game systems such as Xbox and PlayStation. They play mostly sports games — soccer is popular right now because of the World Cup, Rubin said — while first-person shooter games such as “Call of Duty” and the “Battlefield” series are growing in popularity on the system. “That’s what spurred the idea, my passion for video games,” Ru- bin said. The system attracts about 5,000 LENDING unique players a month, and they pay either a fee for each tourna- to growing businesses ment or $7.98 for a monthly sub- remains our top priority. scription. More than 1 million tourna- Hennessey Capital is now Hitachi Business Finance ments have been played and about $19 million paid out in prize mon- Offering a world of ÁH[LEOH financing ey. Player winnings total about $500,000 a month. RSWLRQV for companies that want to grow. Revenue last year was $4.9 mil- 248.658.1100 ZZZ.+LWDFKL%XVLQHVV)LQDQFH.FRP lion, up from $3.7 million in 2012.

GLENN TRIEST Rubin credits Beyond Gam- Gabe Rubin (left) came up with the idea for Beyond Gaming of Michigan, which ing’s success to its internal sys- he co-founded with friend and Web designer Noah Krugel. tem, which can quickly adapt to

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Page 24 CRAIN’S DETROIT BUSINESS June 9, 2014 Second Stage Michael Forsyth immediate downtown Detroit area. entirely new “The sheer scope and amount of inside the and Lori Allan challenges of that was daunting at WINNER city’s econom- first,” Forsyth said. “It really took INTRAPRENEUR ic development Revolve Detroit a year of listening, understanding arm. Detroit relationships and the problems.” Revolve, When Michael Forsyth joined Forsyth used the DEGC’s skills of launched in October 2012, joins the Detroit Economic Growth Corp. as arranging and securing real estate, with community leaders, building business development manager completing complex deals and mak- owners, entrepreneurs and artists nearly three years ago, he was giving connections to create Revolve De- to fill vacant storefronts with busi- en the task of increasing the num- troit. But he also had to be a bit of an nesses and art installations. The ber of small businesses outside the intraprenuer, creating something goal is to foster the evolution and vi- brancy of Detroit’s neighborhood business districts. “Being an intrapreneur is about understanding the mission of your The organization and staying true to that, but taking a different path to get there,” said Forsyth, director of Revolve. “When you’re able to KENNY CORBIN deliver good results in a relatively Michael Forsyth and Lori Allan have made “a pretty good team of two” in GO TO short period of time, it’s easy to developing Revolve Detroit projects, Forsyth says. make the case to do more.” media studies and minors in archi- a master’s degree in design at Howard One of the program’s most recent tecture and creative writing. University in Washington, D.C. successes has been the city’s West During her time at Revolve, Al- Allan also served as a reliable, Village neighborhood, with new advisors for lan managed and launched the pro- do-anything team member during stores and restaurants such as Craft gram’s website, headed all commu- a four-month project to revitalize Work, The Red Hook, Tarot & Tea and Michigan businesses. nications and graphic design, led Detroit’s historic Avenue of Fash- Detroit Vegan Soul operating in what an international call for artists ion, Forsyth said, and played an was once a vacant block. Currently, and entrepreneurs, and grew Re- essential role in the selection and Revolve seeks entrepreneurs to cre- volve’s social media following by execution of more than 30 art and ate two pop-up shops on Grand Riv- nearly eightfold. retail projects and production of a er Avenue in the city’s Grandmont regional design festival. Rosedale community. “It was completely new and dif- Forsyth is quick to point out ferent than anything I’ve ever “Lori wouldn’t brag about it, but that Revolve couldn’t have been done,” Allan said of Revolve. “It she’s been such an integral part of McDonald Hopkins PLC was different learning about busi- our program,” Forsyth said. “We 39533 Woodward Avenue, Suite 318, Bloomﬁeld Hills, MI 48304 • 248.646.5070 accomplished without his right- hand woman, Lori Allan. ness development and everything both, respectively, have to play Stephen M. Gross, Detroit Managing Member Allan joined Revolve last year as that goes into a pop-up” business. ‘MacGyver’ once in a while and do an intern while attending the Uni- Currently, Allan is the marketing whatever it takes. … We’ve made a Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach versity of Detroit Mercy, where she and communications manager at the pretty good team of two.” mcdonaldhopkins.com Carl J. Grassi, President earned a bachelor of arts in digital DEGC. This fall, she plans to pursue — Shawn Wright

Auguri! Συγχαρητήρια! Felicitaciones! Gratulujem!

Congratulations to the fearless leaders of Mango Languages: Jason Teshuba, Mike Goulas, Mike Teshuba, and Ryan Whalen – Crain’s 2014 Salute to Entrepreneurs Award-winners.

For enriching lives worldwide with language and culture, for creating jobs with meaning, and for inspiring us all, thank you! Love, Your Mango family

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June 9, 2014 CRAIN’S DETROIT BUSINESS Page 25 Second Stage

graphically categorized. UP TO $5 MILLION Tekisha Lee This helps recruiters IN REVENUE DiverseNote find specific candidates FINALISTS that are needed. Ypsilanti Avomeen Analytical Services — from Latin American or Castilian About 85 percent of the Spanish to Urdu — that the software For Tekisha Lee, connect- members are college LLC breaks down into easy-to-learn phrases. graduates, Lee said, with ing minority job candidates Shri Thanedar, a longtime chemist and Founders Jason Teshuba, Mike Teshu- with prospective employers candidates and recruits entrepreneur, retired at age 55, then de- ba, Ryan Whalen and Mike Goulas isn’t just a career. It’s her pas- coming from all indus- cided the quiet life wasn’t for him. In De- launched Mango Languages in 2007 and sion. tries, with qualifications cember 2010, he launched Avomeen Analyti- have built a network of more than 500 That’s why she founded Yp- at all career levels. cal Services LLC, an Ann Arbor-based teachers. The company recently launched silanti-based DiverseNote, a ca- Revenue last year was chemical testing facility. Mango Premiere, which teaches language reer man- $1.2 million, and Lee pro- Avomeen provides analytical chemistry through movies. In 2012, the company posted revenue of $7 agement jects this year’s revenue and drug testing to a wide spectrum of in- million. In 2013, that grew to $7.9 million. social net- to be $2.3 million. The dustries, including researchers, manufac- WINNER — Anjana Schroeder SOCIAL work for majority of revenue turers, laboratories and entrepreneurs. profes- For example, Doggyarchy LLC, a pet supply ENTREPRENEUR comes from employers SOCIAL ENTREPRENEUR sionals who sign up. To date, 112 company in Vail, Colo., hired Avomeen to develop a nonpetroleum-based coating to within recruiters use Di- protect dogs’ paws during the snowy the diversity community. She verseNote, representing Noam Kimelman months. connects them with organiza- corporations and federal tions seeking top talent by cre- Revenue grew from $2.25 million in 2012 Fresh Corner Café L3C, a Detroit-based organizations. Clients to $3.85 million last year. Thanedar hopes fresh food distributor and catering ser- ating partnerships with re- include Warren-based DAVID HALL to double employees and revenue over the vice, was formed in 2010 in response to the cruiters, Fortune 500 MSX International, Detroit- companies and mentors. Tekisha Lee was inspired to create next two years; within seven years, he lack of access to high-quality, healthy DiverseNote after an experience at the based Bedrock Real Estate “Diversity is a broad as- hopes to employ 100 and have revenue of food in the city. former Campbell Ewald. Services LLC and the U.S. The company sells products to more pect; it’s not just ethnicity or $20 million. Department of the Interior. — Anjana Schroeder than 25 party stores and other small-scale race. There are several different facets,” said DiverseNote also has partnerships and retailers to provide healthy, ready-to-go Lee, CEO. “Our goal has been to focus on all working relationships with more than 200 $5 MILLION TO $30 MILLION foods, such as salads that sell for $3.95 and of them … veterans, gender, and the lesbian, colleges, universities and alumni associa- sandwiches for $4.95. The most popular gay, bisexual and transgender community.” items are the chef salad with double The idea for DiverseNote came while Lee tions across the U.S. While employee candi- Mango Languages dates continue to grow, Lee said she would smoked turkey and ranch dressing for was working at Campbell Ewald (now Lowe Farmington Hills-based Mango Lan- $3.95 and the garlic jerk chicken sandwich Campbell Ewald). She was working on an ac- like to see more involvement and registration from the business side. guages provides online language learning for $4.95. count that had a big problem finding diverse, resources to libraries, schools, corpora- Founder Noam Kimelman won the “In the first year, career candidates really minority candidates. She knew there had to tions, government agencies and individu- Michigan Social Entrepreneurship Chal- jumped at the opportunity to sign up,” Lee be a better way. als. lenge in 2013, an honor that brought aware- Founded in 2012, DiverseNote now has said. “But in reference to corporate clients, Mango’s software can be accessed via ness of her business along with $20,000. more than 100,000 members nationwide. we are working diligently to get them aware computer or the company’s free mobile Fresh Corner’s revenue has nearly dou- Membership is free for employee candidates. of DiverseNote and to use us as a source for app, allowing customers to learn a lan- bled, jumping from $94,000 in 2012 to Through DiverseNote’s social network, job diversity recruitment and training.” guage anywhere. Customers can sign up $172,000 in 2013. candidates self-identify, opt-in and are demo- — Shawn Wright and choose from more than 50 languages — Anjana Schroeder

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Page 26 CRAIN’S DETROIT BUSINESS June 9, 2014 Second Stage Staffing company outsources payroll to better manage growth

BY GARY ANGLEBRANDT 2002, watched its revenue climb Band-Aids,” that had staff members thinking IMPACT MANAGEMENT SERVICES SPECIAL TO CRAIN’S DETROIT BUSINESS every year since the recession, Davis said. not about scaling the business but from $7 million in 2010 to $16.5 mil- STAGE 2 The problem about how to deal with greater pa- Location: Southfield For many second-stage busi- lion last year. The company this STRATEGIES was bad perwork. Description: Staffing and recruiting nesses, growing pains come from month will open its first satellite enough that it Impact now manages 800 placed services having to form a department for office, in Chesterfield Township, A look at caused man- workers and is on target to hit $30 President: Pete Davis the first time. For Impact Manage- to be closer to manufacturing problem-solving agement stress million in revenue this year, Davis Employees: 21 ment Services LLC, it came from clients in that area. by growing just thinking said. “We’re hitting this ramp now Revenue: $16.5 million in 2013 having to get rid of one. Problem: Managing growth and companies about how it because we found those outsourcing Impact, a staffing firm formed in the payroll department. was going to solutions that don’t slow you down In 2010, the company had about take on new clients — normally by doing it internally,” he said. 300 workers placed with clients to something to cheer about. Risks and considerations: While THE MILLER LAW FIRM manage. Compa- Solution: Davis took what he in retrospect it seems like an obvi- Changing the Odds in our Clients’ Favor ny leadership called an unconventional ap- ous enough move, the switch gave saw that as proach for a staffing firm — he be- Impact some discomfort at the more workers gan outsourcing his work. The de- time. The point at which placed were placed, the cision came after the company workers deal with their staffing hairier things realized it should listen to its own firm most often is when it comes got in the pay- sales pitch. time to be paid. Losing control of roll department. “The ‘a-ha’ moment was when how that occurs wasn’t a decision President Pete we said, what are we telling our taken lightly. Davis estimated customers to do on a regular basis? “When an employee called about that for roughly Outsource to us. Do what your a paycheck, we controlled the mes- Davis every 75 work- core business function is while we sage and how that person was ers placed, Impact had to put an- deal with recruiting,” Davis said. treated. Now they’re going to call a other person on payroll duties, Impact hired a professional em- payroll company directly about which include the tasks of check- ployer organization, or PEO, to certain issues like tax withhold- ing attendance, workers’ compen- take care of all payroll-related ings. How that person is treated is sation and disciplinary issues. functions. A PEO also would be no longer something I’m in com- The Miller Law Firm is Recognized At this point, he had three people able to absorb much of the regula- plete control of,” Davis said. as a Leader in Complex Business Litigation working on payroll management tory hassle that comes when em- Davis also was worried about and already the processes were be- ploying people in other states, a the ability of a PEO to absorb hun- coming disorderly. As more em- nice service for a growing compa- dreds of workers at once, and then Q Automotive Supplier Counseling Q Commercial and business lawsuits ployees became involved, more ba- ny to have. to continually manage the churn Q Employment litigation Q Shareholder and partnership disputes sic organizational issues popped up. The work with the PEO began in of temporary workers — a busi- Referral fees honored on contingency fee cases “The complexities continued to 2011, and it freed up several hun- ness characteristic not exhibited mount. We were dedicating tremen- dred thousand dollars in staff by a PEO’s average customer. 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com dous resources and effort to solve is- costs. But more important to “You have no idea the fire hose Rochester, Michigan 48307 sues there and adding layers of Davis, it removed a distraction that’s going to turn on,” Davis said when the PEO offered to do the payroll migration very quickly. Impact held a series of meetings Ferdinand Samson, VP, Equipment Finance of to make clear how it wanted its Level One Bank and client Robert Brisley, President of Polymer Process Development people to be treated when calling about pay issues and to let the PEO know there would be many such calls to ease the transition. The outsourcing still needs maintenance from time to time. Impact had to hire someone internally to handle overflows of work that the PEO couldn’t manage. Last year, Impact switched to one

Ferdinand “Ferd” Samson, VP, Equipment Finance of that could handle Impact’s grow- Level One Bank at Polymer Process Development, a Level One client ing number of workers. Expert opinion: Gino Wickman, founder of EOS Worldwide LLC in Livonia, coaches second-stage Equipment Financing companies to stay laser-focused on their core business and is a big be- liever in outsourcing. Tailored for you, the entrepreneur. “That’s why small business- Finance up to 100% of equipment, plus soft costs. es are so strong: all these niche Flexible terms. Local decision making. companies doing niche things better than oth- Call us er companies can do them,” he Wickman said. “The closer Contact Greg Wernette my clients get to their core, and outsourcing and stop doing things Entrepreneur and Chief Lending Oﬀicer, 248-737-0300 that aren’t core, they tend to be more creative, make more money and grow faster.” It’s up to every company to look at its present situation and goals to determine if the function is something it should outsource. But generally the signal to do it is “when things are starting to get complex or starting to take you away from your core,” Wickman said. 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com “If you’re forced to keep it and it’s not core, you have to make it Commercial Banking ∫ Retail Banking ∫ Mortgage Services All ﬁnancing subject to credit approval. core by going out and finding the best talent.” 20140609-NEWS--0027-NAT-CCI-CD_-- 6/6/2014 10:31 AM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 27 No need for extra finishes. CALENDAR Eliminate the need for drywall and extra finishes by using precast wall panels. A finished product on both sides. It’s ready to go immediately after TUESDAY luncheon. With keynote speaker Mark SYMPOSIUM INTRODUCES Fields, COO, Ford Motor Co.; Jacques installation. JUNE 10 UM Panis, president, Shinola/Detroit LLC, 2014 JVS Business Leadership award ABCs of ACA Health Plans for Small INVESTORS TO ENTREPRENEURS winner; and Max Surnow, co-founder, A steel troweled, food-grade finish is found on the interior of this apple Companies. 8-11:30 a.m. Walsh Busi- Join the University of Michigan Ross Cooper Street Cookies, recipient of processing facility—reducing the risk of bacteria settling on surfaces within ness Leadership Center. Targeting School of Business Zell Lurie the 2014 JVS Rising Entrepreneur small companies with 50 or fewer em- Institute of Entrepreneurship 10:30 Award. The Henry, Dearborn. $150. the building. ployees. Walsh College, Troy. Free. a.m.-6 p.m. June 17 and 7:30 a.m.-2 Contact: Judy Strongman, (248) 233- Contact: Jan Hubbard, (248) 823-1392; p.m. June 18 for the Michigan Growth 4213; email: [email protected]; Heeren Brothers Produce - Comstock Park, MI email: [email protected]; website: jvsdet.org/strictlybiz. website: thewalshinstitute.com. Capital Symposium. The event presents an opportunity for venture capitalists and angel investors to 2014 Michigan Environmental Compli- meet executives of early-stage and FRIDAY ance Conference. 8:15 a.m.-4:15 p.m. emerging-growth companies seeking JUNE 13 Michigan Department of Environmen- $1 million to $20 million in funding. tal Quality. More than 20 sessions de- Detroit — Engage China Auto Industry. signed to help businesses and environ- The event takes place at the Ann 2:30-9 p.m. Detroit Chinese Business mental professionals comply with Arbor Marriott Ypsilanti at Eagle Association. Seminar and networking environmental requirements, includ- Crest, Ypsilanti Township. with more than 40 executives of Chi- ing waste and wastewater manage- The keynote speaker is Kevin nese original equipment manufactur- ment, air quality, remediation and Conroy, CEO and president of Exact ers and auto suppliers. With Yang pollution prevention. Laurel Manor, Sciences. Among other speakers are Dong, vice chairman and general sec- Livonia. Cost: $130. Contact: Jennifer Ed Torres, managing director, Lilly retary, China Association of Automo- Acevedo, (517) 284-6850; email: aceve Partners; Jack Miner, director of the bile Manufacturers. Petruzzello’s Ban- [email protected]; website: michi Venture Center, University of quet and Conference Center, Troy. gan.gov/deqworkshops. Michigan; Russ Straate, associate $48-$150. Contact: (248) 918-0391; email: director, Venture Center, University [email protected]; website: dcba.com. Midyear Economic Forecast and State of Minnesota; Jeff Banker, CEO in of the Industry Luncheon. 10:30 a.m.-2 residence, Spartan Innovations, p.m. Construction Association of Michigan State University; and Jed UPCOMING EVENTS Michigan, Home Builders Association Taylor, assistant director, Cybersecurity Breakfast: How Israeli of Southeastern Michigan. Focus on Technology Entrepreneur Center, Tech Companies Set Standard for Ex- the status of Michigan’s economy. University of Illinois. cellence. 8-9:30 a.m. June 17. Michi- With L. Brooks Patterson, Oakland gan Israel Business Bridge. With County executive, and W. Jay Wortley, Tickets range from $195 to $425. Rami Efrati, founder and CEO, Fermi- director of the Office of Revenue and Online registration is available tas, and former head, civilian divi- Tax Analysis, State of Michigan. Sub- through June 13; onsite registration sion, Israel National Cyber Bureau; urban Collection Showplace, Novi. opens at 10 a.m. June 17. and Sharon Nimirovski, CEO, $50. Contact: Mary Carabott, (248) 972- For ticket information, call Kerry White-Hat Ltd. Dearborn Inn, Dear- 1000; email: carabott@cam- born. $15 members, $20 nonmembers. online.com; website: cam-online.com. Velez at (734) 615-4419 or visit michigan-gcs.com. Contact: (248) 642-1701; email: KERKSTRA PRECAST [email protected]; website: Retooling Global Operations for michiganisrael.com. Strategic Advantage. 11:30 a.m.-1:20 Frank Reynolds, president, Internation- www.kerkstra.com al Projects Inc. WTC Detroit/Windsor p.m.Detroit Economic Club. With Jim Become a Talented Trainer: Guide Moffatt, chairman and CEO, Deloitte offices, Detroit. $175 WTC members, $195 nonmembers. Contact: (313) 962- Your Employees, Temps and Contrac- Consulting LLP; David Cole, chairman tors to Success. 9 a.m.-3:30 p.m. June emeritus, Center for Automotive Re- 2345, ext. 222; email: register 18. Michigan Chamber of Commerce. search, chairman, AutoHarvest; and @wtcdw.com; website: wtcdw.com. Gain practical skills and strategies David Szczupak, executive vice presi- that work. Walsh College-Novi Cam- dent, global product organization, Considering Digital Accessibility for pus, Novi. $270 MCC members, $295 Whirlpool Corp. Cobo Center, Detroit. Customers and Prospects With Disabili- nonmembers. Contact: Tammy Smith, $45 DEC members, $55 guests of mem- ties. 11:45 a.m.-1 p.m. Ann Arbor Spark. bers, $75 nonmembers. 11:30 a.m. (517) 371-7670; email: tsmith@micham With Marisa Smith of The Whole Brain speaker reception open only to board, ber.com; website: michamber.com. Group LLC. Many Americans who live life and gold members. Contact: De- troit Economic Club, (313) 963-8547; with a disability need to use assistive technology to interact with websites Community Investment Breakfast. email: [email protected]; website: 7:30-9:30 a.m. June 19. Southwest De- econclub.org. and digital marketing materials. Web- sites incompatible with these devices troit Business Association. With exclude people who otherwise might keynote speaker Carol Coletta, vice WEDNESDAY become customers. Conor O’Neill’s, president, community and national Ann Arbor. Free. Contact: (734) 272- initiatives, Knight Foundation; Dennis JUNE 11 4698; email: [email protected]; website: Archer, chairman and CEO, Dennis W. annarborusa.org. Archer PLLC and former mayor of De- Incoterms 2010: International Chamber troit; and master of ceremonies Guy of Commerce Rules Explained. 8:15 Gordon, anchor, WDIV-Channel 4. Mo- a.m.-noon. World Trade Center De- THURSDAY torCity Casino Hotel, Detroit. $75. troit/Windsor Association. Learn Contact: (313) 842-0986, ext. 26; email: about Incoterms (international com- JUNE 12 [email protected]; web- mercial terms), a key part of the lan- site: southwestdetroit.com. guage of international trade, and how Strictly Business. 11 a.m.-1:30 p.m. goods are purchased and shipped. With JVS. Annual networking and awards Leadership Breakfast. 7-9 a.m. June 20. Business Roundtable. With Nick Nicolay, president and CEO, Kar’s Nuts. Birmingham Country Club, Birmingham. $25. Contact: Christa Moxon, (269) 685-7829; email: [email protected]; thebusinessrt.org.

A DVISOR S POTLIGHT CALENDAR GUIDELINES If you want to ensure listing online and be considered for print publication in Crain’s Detroit MICHAEL LOVASCO Business, please use the online Vice President calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: Mike believes the first step in every client engagement is From the Crain’s home page, click establishing trust through an absolute focus on understanding a “Events” in the red bar near the client’s long-term financial goals and objectives. Representing the top of the page. Then, click third generation in the family insurance and financial services “Submit Your Events” from the business, Mike combines his lifelong immersion in the industry drop-down menu that will appear, with his later experiences working on Wall Street to help launch and you’ll be taken to our online a consulting practice that puts clients’ interests first and provides submission form. Fill out the form independent advice and customized consulting services. as instructed, and then click the “Submit event” button at the 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 bottom of the page. That’s all there is to it. A Member Firm of M Financial Group. Securities Offered Through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. More Calendar items can be found LoVasco Consulting Group is Independently Owned and Operated. on the Web at www.crainsdetroit.com. 20140609-NEWS--0028-NAT-CCI-CD_-- 6/6/2014 10:30 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS June 9, 2014

PEOPLE BUSINESS DIARY FINANCE ner, Maddin Hauser Roth & Heller ACQUISITIONS & MERGERS firm. Websites: cdh.com, thecoil PC, Southfield. group.com. IN THE SPOTLIGHT Computing Source, Southfield, a digi- Harvey Hohauser & Associates, MANUFACTURING tal evidence and legal support firm, CONTRACTS Troy, a retained executive search acquired MuniDeals, Southfield, a ser- firm, has named Todd Hohauser vice provider for municipal finance IPS Technology Services, Troy, won a professionals. MuniDeals will retain yearlong contract renewal with Feder- CEO. He had its name and existing team but oper- al-Mogul Corp., Southfield, to supply been president ate as a business unit of Computing SharePoint development, administra- and COO and Source and relocate within an exist- tion and support services. Website: succeeds CEO ing or new Computing Source facility. ipstechnologyservices.com. and founder Websites: munideals.com, computing RouteOne LLC, Farmington Hills, Harvey source.com. Hohauser, who a Web-based credit application man- Arrow Strategies LLC, Bingham agement system for dealers and fi- is retiring but Loyd Sweeney Farms, a staffing firm specializing in nance sources, announced that 1st will remain information technology, engineering, Community Federal Credit Union, San Beverley Loyd to senior business active in some banker, Urban Partnership Bank, De- health care and professional posi- Angelo, Texas, is using RouteOne’s aspects of the Doychich Hibi tions, acquired the controlling inter- e-contracting platform via its new troit, from asset manager, managed business. asset group. Also, Kevin Sweeney to Hohauser John Doychich to executive vice presi- est of Hire Talent LLC, Clinton Town- DiscountOne tool. Websites: market director, from director for the Todd dent, Daifuku Webb Holding Co., ship, a recruiting company with a routeone.com, 1cfcu.org. Midwest market, Nonprofit Finance Hohauser, 43, earned a Farmington Hills, from senior vice focus on permanent placement ser- Fund, Detroit. bachelor’s degree in psychology president and CFO. Also, Tetsuya Hibi vices in information technology and EXPANSIONS from Western Michigan University, to senior vice president and CFO, Usha Chinoy to engineering. Websites: arrowstrate Brembo North America Inc., Plymouth Kalamazoo, and a master’s in from general manager of global busi- assistant manag- gies.com, hiretalentllc.com. Township, manufacturer of braking ness administration, Daifuku Co. er, Lotus Bank, business management from Walsh Huron Capital Partners LLC, Detroit, systems for vehicles and part of Brem- Ltd., Osaka, Japan. Novi, from head College, Troy. acquired American Auto Action Group bo SpA, Stezzano, Italy, expanded its personal banker. Aline Daniel to director of strategic LLC, Charleston, S.C., a provider of manufacturing facility in Homer. accounts, Sloan Valve Co., Detroit, dealer-to-dealer auction services, and The facility produces brake discs, try Club, Washington, D.C., Potomac from director of government sales. HOSPITALITY Falls, Va. announced the formation of an auto calipers and corner modules for cars remarketing service platform. Web- Scott Stromer to and commercial vehicles. Website: NONPROFITS sites: huroncapital.com, ameri executive chef, LAW brembo.com. MotorCity Casino Karen Salomone canaag.com. Bright Side Dental, Sterling Heights, Thomas Hallin to to executive di- Hotel, Detroit, partner, Rader, DTE Energy Co., Detroit, exercised its opened an office at 28609 Hoover Road, rector, Fish & Warren. Telephone: (586) 486-3802. Chinoy from executive Fishman & option to purchase one of the two Loaves Communi- Pheasant Run wind parks from a sub- Website: brightsidedental.com. director of culi- Grauer PLLC, ty Food Pantry, sidiary of NextEra Energy Resources nary operations, Sullivan University, Bloomfield Hills, Taylor, from nu- Planet Fitness, Newington, N.H., Louisville, Ky. from of counsel, trition program LLC, Juno Beach, Fla. The 75-megawatt opened a franchise at 345 S. Livernois Donald Ponniah to general manager, Price Heneveld manager, Wayne Pheasant Run II wind park in Huron Road, Rochester Hills. Telephone: (248) Doubletree by Hilton Dearborn- LLP, Grand Metropolitan County will be renamed the Brookfield 923-2014. Website: planetfitness.com. Rapids. Detroit, Detroit, from president and Community Ac- Wind Park. A subsidiary of NextEra Art Van Furniture Inc., Warren, opened general manager, Grand Traverse Re- Monica Moons to tion Agency, will continue to own and operate a franchise store at 2090 M-32 High- sort Spa, Acme. Also, Sheryl shareholder, Westland. Pheasant Run I, the energy from which way West, Gaylord. Telephone: (989) Champine to director of sales and Couzens, Lansky, Jarrod Holmes to will continue to be purchased by DTE 448-2228. Website: artvan.com. Fealk, Ellis, Roed- Salomone marketing, from area director of Hallin director of field Energy. Website: dteenergy.com. sales and marketing, Pillar Hotels & er and Lazar PC, service/COO, Great Lakes Field Ser- C/D/H, a technology consulting firm MOVES Resorts, Flint; and Guillermo Valencia Farmington Hills, from of counsel. vice Council, Boy Scouts of America, with offices in Detroit and Grand Four Seasons Garden Center & Cus- to executive chef, from executive George Contis to partner, Giarmarco, Detroit, from director of develop- Rapids, merged with the Coil Group , Oak Park, chef, Trump National Golf and Coun- Mullins & Horton PC, Troy, from partment. Inc., Rochester, a mobile software tom Landscape Services moved its design studio offices from 261 E. Maple Road to 460 N. Old Wood- ward Ave., Birmingham. Website: fourseasonsgardencenter.com.

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Being local means we’re able to leverage approvals and decisions right from our home ofﬁ ce here in Michigan. It means more answers backed by the knowledge DIARY GUIDELINES we've gained from being rooted here since 1917. This means a lot for the business customers we help daily. Trust us, that’s a big advantage for small business. Email news releases for Business Diary to cdbdepartments@ crain.com or mail to Departments, www.thefsb.com/sba | 866-372-1275 Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20140609-NEWS--0029-NAT-CCI-CD_-- 6/6/2014 5:08 PM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 29 Recycler: Newcomer promises to shred tech, byte by bit ■ From Page 3 At the top glass and aluminum are separated of the potential to create environ- with Vintage Tech LLC, a ant Ridge, Royal Oak and Troy — and then sold to smelters for reuse. mental and public health hazards Romeoville, Ill.-based company that have a combined population The company’s majority owner During the Blubox shredding in the process such as from mer- with a 26,000-square-foot plant in of 283,000 and total area of 75 is W. Sidney Smith, the former process, the pieces are cut com- cury release and exposure,” said Canton Township. However, they square miles. mayor who founded real estate de- pletely flat so they can’t hold mer- Bryce Feighner, acting chief of only do “some rudimentary recy- “If they (3S) are going to put in a velopment company Smith Equities cury in the curled corners that are the DEQ’s Office of Waste Man- cling” of electronics there. SOCR- full-fledged recycling facility, that in 1968. often produced with other shred- agement and Radiological Protec- RA has 12 member communities would be great for the area,” McK- Gina Yob is a minority share- ding processes. tion. — Berkley, Beverly Hills, Birm- een said. holder, as is her cousin, 3S CEO The company has a contract with “The 3S system proposes to ingham, Clawson, Ferndale, Kirk Pinho: (313) 446-0412, kpin- Joe Yob, who has been in the in- the Land of Lincoln Goodwill in Illinois process these electronic wastes Hazel Park, Huntington Woods, [email protected]. Twitter: @kirkpin- dustry since 1989 and has authored to process its electronics donations. in an innovative way that elimi- Lathrup Village, Oak Park, Pleas- hoCDB textbook chapters and white pa- It also provides recycling in the pri- nates or minimizes those haz- pers on the subject. vate and public sector. ards,” he said. “We are still eval- Gina Yob is the daughter of Land of Lincoln — which serves uating the technical aspects of Chuck Yob, a former Republican Na- 33 counties in Illinois and four in In- the system at this time. If in fact tional Committee member, and sis- diana — was recycling about 1 mil- it does what it purports, it is a ter of John Yob, founder of Grand lion pounds of electronics per year, very exciting process. No doubt Rapids-based GOP political con- Gina Yob said, adding that the 3S about it.” sulting firm Strategic National Cam- contract will allow it to recycle Nathan Zack, president of War- IS YOUR TEMPORARY paigning Management LLC. about 3 million pounds per year. ren-based Great Lakes Electronics She was the finance director for According to data from the U.S. Corp., which recycles electronics Republican U.S. Rep. Bill Huizen- Environmental Protection Agency, and also has locations in Sterling LABOR PROVIDER ga’s congressional campaign in there were 3.42 million tons of con- Heights, Pontiac and Melvindale, 2011 and 2012; senior counsel for sumer electronics recycled in 2012, said there is a need for more elec- Lansing-based GOP political con- and 3.41 million in 2011. tronics recycling companies as sulting firm The Sterling Corp.; and Last year, the 67 companies regis- long as they have the right certifi- CHARGING YOU chief of staff for Lt. Gov. Brian Cal- tered with the state’s Michigan Elec- cations like ISO 14001 or R2. R2 ley in 2008 and 2009 when he was a tronics Takeback Program, which stands for Responsible Recycling state representative. was started in 2009, recycled more Practices and is one of two EPA-ac- A FAIR RATE? than 30 million pounds of e-waste, credited certification standards according to the Michigan Department along with e-Stewards. Shred tech of Environmental Quality. Samsung, “That’s really the main thing,” The company — which is trying Hewlett-Packard, LG Electronics, Best Zack said. “If they are not R2 (or e- Get a free assessment at: to earn International Organization Buy and Dell were the top electronics Stewards-certified), they are not for Standardization 14001 and e- recyclers, with each recycling more doing things properly. If they are Stewards certifications — uses a than 3 million pounds in 2013, ac- able to adhere to it and get the cer- www.parrymurphy.com/templabor.html recycling technology called cording to the DEQ. tification, they are doing things Blubox that allows it to shred elec- the right way.” tronics into small, recyclable Jeff McKeen, general manager pieces. It also removes toxins like Job hazard of the Southeast Oakland County Re- mercury in batteries and lead in “Recycling electronic waste is source Recovery Authority, said solder. Things like copper, steel, particularly challenging because SOCRRA recycles electronics JOB FRONT REAL ESTATE

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Page 30 CRAIN’S DETROIT BUSINESS June 9, 2014 Survey: Firms report higher health costs, adapt benefit plans ■ From Page 3 could have this year through more from 89 percent in 2013. percent in 2014, compared with 81 drastic cost-shifting changes in em- At the same time, the survey percent in 2013 — 27 percent of em- OTHER SURVEY RESULTS ployee benefit plans. found that 42 percent of employers, ployers are using outcomes-based Overall in 2014, single employee up from 38 percent in 2013, are offer- wellness programs that tie financial Market share costs for preferred provider organiza- ing HMO plans, which generally are incentives to health goals. tions rose only 3.6 percent to $116 a more restrictive in use of medical Despite a continued dip in market share this year, Blue Cross Blue Shield of Michigan still holds a dominant 72 percent share of the month, or 23 percent of total premium services and providers. ‘More aggressive on wellness’ market for preferred provider organizations. Those numbers are costs. Single coverage through health down from 76 percent in 2013 and 79 percent in 2011. Atlas Oil Co. maintenance organizations dropped 4 Old, new ways to cut costs At Taylor-based , Laila Health Alliance Plan of Michigan increased PPO market share to percent to $95 a month, or 21 percent of Powers, director of human resources, 17 percent this year from 13 percent in 2013. HealthPlus of premium costs. Employers continued tried-and- said the company’s outcomes-based Michigan increased to 7 percent from 4 percent. Priority Health held But family monthly employee true cost reduction strategies. wellness program with Priority Health steady at 8 percent. costs have increased 11 percent to Those included moving employee has helped hold down costs to nearly $391 for PPO and 5 percent to $308 for product offerings to more high-de- no increase from last year. Impact of health care reform HMO coverage, the survey found. ductible health plans, increasing the “Our health plan costs were flat, 89 percent of surveyed employers plan to continue to offer health As a percentage of premium, fami- use of spousal surcharges, and well- but the (Affordable Care Act fees) benefits to full-time employees in 2015 and 2016, up from 84 ly PPO coverage is increasing to ness programs. cost us $60,000 this year,” Powers percent in 2013. only 27 percent of premium this year Employers also embarked on new said, adding: “We have had no in- The overwhelming majority of employers — 95 percent — said from 26 percent in 2013, the survey strategies to use telemedicine and creases the past three years and only employee retention and recruiting was the primary reason to keep found. HMO family coverage is down health advocacy programs to con- a slight increase for our team mem- health benefit plans. Other reasons included company culture (70 to 25 percent of premium from 27 tain costs. Leading the way were Mc- bers (employees).” percent), savings didn’t justify change (29 percent) and union percent in 2013. Graw Wentworth’stop-performing Of Atlas’ 454 employees, Powers concerns (26 percent). “With the labor employers — called “Trendbenders” said, the 300 who have company The percentage of employers offering coverage to employees who market improving for their aggressiveness in holding health benefits now must meet five work 30 or more hours a week increased to 74 percent this year (and strong com- down health cost increases. health criteria — including smok- from 59 percent in 2013. That appears to be in anticipation of a petition for work- This year, the 103 Trendbenders, ing, body weight, blood pressure and Jan. 1, 2015, requirement for companies with the equivalent of more ers), employers which amounted to 23 percent of the cholesterol levels — to receive lower than 50 full-time employees to offer health insurance to workers didn’t want to survey’s 454 companies with 100 to copayments for services. averaging more than 30 hours a week or pay a penalty. make too many 10,000 employees, reported an average “We have become more aggressive High-deductible health plans changes” in their increase of 2.5 percent or less in on wellness, and we have had good benefit plans, health costs the past two years. results with our team members,” 38 percent of employers this year are offering high-deductible McLaughlan said. These top performers were more Powers said. health plans, up from 35 percent in 2013. McLaughlan But for some likely to use high-deductible health Powers said Atlas will begin using The plans are typically less expensive than other plans and feature a employers, the lack of changes this plans (45 percent, compared with 38 a telemedicine program that allows tax-free health savings account or health reimbursement account year may have been a short-term de- percent of all employers) and limited- employees to call in for a virtual of- with employer contributions. The plans are lower cost because they cision tied to the federal govern- provider network HMO plans (47 per- fice visit and get a medical evalua- are usually designed with deductibles of $1,200 to $2,500. ment’s decision to delay the employ- cent compared with 42 percent). They tion. The telemedicine call costs em- er mandate penalties until 2015. also were higher users of health ad- ployees a $40 copayment. Other results “Employers who are impacted by vocacy (17 percent to 14 percent), “Fifty percent of our team members 38 percent of local employers — more than double the national the (mandate) could be looking at telemedicine (5 percent to 4 percent) are drivers,” Powers said. “They work trend of 16 percent — are using spousal surcharges (20 percent) to more significant changes in 2015 as and outcomes-based wellness pro- 10 to 12 hours a day and often don’t employee premiums or spousal force-outs (18 percent) for spouses the result of their cost to comply grams (35 percent to 27 percent). have time to go in for a visit. This is who are eligible for coverage from other sources. with the law,” McLaughlan said. For 2014, even with Obamacare’s more of a benefit than a cost savings, 14 percent of employers offer health advocacy programs — phone Still, reflecting an interest in low- added fees, McGraw Wentworth’s but it could reduce overall health costs assistance for employees with claims questions, coordination of ering costs, fewer employers this Trendbenders project a 1 percent de- if it prevents” a medical problem. care and navigating the health care system. An additional 18 percent year offered PPO plans to employees. cline in health care costs. Jay Greene: (313) 446-0325, are considering such programs for 2015. Eighty-six percent of employers are While fewer employers this year [email protected]. Twitter: 4 percent of Southeast Michigan employers offer telemedicine as offering at least one PPO plan, down are offering a wellness program — 78 @jaybgreene a care provider option, with 19 percent considering it for 2015.

Outlets: For developers of 3 malls, the race is on for retailers ■ From Page 1 port-area project — wouldn’t dis- And they chartered three heli- posals in Romulus and Canton feel close estimated investment, each copters for an aerial view of the equally strongly about their sites, of the projects could drive about housing stock and traffic patterns and Anderson said he believes the $100 million in investment, 75 or near their Chesterfield Township market could potentially support more retailers and up to 1,500 jobs, site, its proximity to Canadian traf- two additional centers, one on developers said. fic from both Detroit and the Blue each side of town. Those are the plans. Water Bridge in Port Huron — and But the developers all say they provided aerial views of the Romu- need a critical mass of signed lease lus and Canton Township sites com- Airport area deals before the planned projects peting for outlet center retail ten- New England Development is un- can become reality. ants. der contract to purchase about 36 “The one thing the three of us will “They’re going to look at them acres of vacant land at the north- agree on is that the (market) will all anyway, so you might as well be east corner of Vining Road and I-94 definitely support one,” said up front,” Anderson said. for an undisclosed amount from Thomas Guastello, owner and presi- “We’re confident,” Guastello Southfield-based Nemer Property dent of Center Management, a local said, “with the feedback we’ve got- COURTESY OF PARAGON OUTLET PARTNERS LLC Group, he said. developer on the Chesterfield Town- Paragon Outlet Partners LLC plans to put an outlet center in Canton Township at ten, now that they’ve seen all three Vice President Michael Barelli ship site. I-275 and Ford Road. sites.” declined to say what the developer “And we probably all agree it Retailers like Neiman Marcus, would invest in the 325,000-square- should be (our) site.” ones,” Guastello said. tario markets for the past three Nordstrom, Saks Fifth Avenue, Ralph foot project, which is set to open in The developers also have a letter years. Lauren, Louis Vuitton and Tiffany & 2016. But he said it isn’t planning of intent from Countryside, Ill.- Guasetello and Anderson also Co. have other stores in these mar- to pursue tax incentives. Selling the region based Cooper’s Hawk, a restaurant took the retailers on a tour of the kets and know the area, Anderson “There’s been a ton of invest- and winery, to bring a 12,000-square- region “by land, sea and air.” said, which should increase their Last week, Guastello and partner ment in infrastructure in the area, foot location to the property, he said. They took them on a boat tour of level of comfort in locating at a Jeff Anderson hosted more than 20 and the roads are in great shape, They reminded retailers of the 4.6 the Detroit River and border cross- luxury outlet like the one planned national retailers for a site tour. which helps,” Barelli said. Guastello and Anderson plan a million people living in the region, ing and drove them along the Hall in Chesterfield Township. The site is across from a major 350,000-square-foot center with a and during the tour, Larry Alexan- Road/M-59 corridor, which “has be- “There’s only one set of retailers airport that serves 32 million pas- projected completion date of April der, president and CEO of the Detroit come the Rodeo Drive of suburban that go into outlet centers ... (they) sengers each year, on the major 2016. Metro Convention & Visitors Bureau, shopping,” said Guastello, who are going to pick the best site and highway between Detroit and highlighted, among other things, owns Shelby Town Center on Hall the one that gets developed first,” In addition to common major Chicago and will be the closest out- the large numbers of Canadian Road. That development is across Anderson said. brands seen at many outlet malls, let center in Michigan to the Cana- shoppers who come to shop in the from Lakeside Mall, with more than “We think we can go fast be- “we are courting some of the very dian border, the developer said. high-end brands ... like Gucci, (Sal- region. The bureau has promoted 300,000 square feet of retail and cause we own the land.” vatore) Ferragamo and some other Detroit-area retail in Southern On- restaurants. But the developers behind pro- See Next Page 20140609-NEWS--0030,0031-NAT-CCI-CD_-- 6/6/2014 6:01 PM Page 2

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 31

From Previous Page New England is working with MEDC: Expedited incentive signoffs questioned Kimley-Horn & Associates Inc. in Troy as civil engineer for the pro- ■ From Page 1 ject and Strobl & Sharp PC in Bloom- er transactions, but in a public short of the job projections. field Hills as its land use attorney. setting, it can raise questions of FAST TRACK WINNERS “Taking money from many in It plans to request bids for a gener- transparency. the state and giving it to a few does al contractor within six months, Since 2011, the Michigan Economic Development Corp. has approved Strategic Fund board members 129 projects through an expedited sign-off process rather than approval by not create net new jobs over time,” Barelli said. are notified via email of approved the Michigan Strategic Fund board. he said. “The evidence is clear.” With only two outlet malls serv- projects within 24 hours of the Below is a partial list of those projects. The full list appears at But having only two people Great Lakes Cross- ing metro Detroit, closing of the deals, and the board crainsdetroit.com/medcdata. make the final decision does lead to ing Outlets in Auburn Hills and also receives quarterly reports on questions of transparency, he said. Tanger Outlets in Howell, “I think we the projects approved. Michigan Community Revitalization Program grants “There will be fewer people all realize that Detroit needs anoth- But, even though all approved looking over the shoulder of the Ellington LLC, an entity of developer Peter Cummings, $1 million to er outlet center,” he said. incentives are made public state,” LaFaive said. “In the past, “We believe the place for that is offset costs and site preparation for the Detroit Whole Foods project. 65 through press releases issued jobs and $14.9 million in investment were expected. the state has promised there were in the southwest part of the metro through the Strategic Fund, the safeguards in place, but still made Hall Street Partners Inc., Grand Rapids, $310,000 toward renovation of to serve Ann Arbor and downriver releases don’t say how they were awful decisions on how to invest ... northwest Ohio, even.” a historic grocery store into a mixed-use development. 15 jobs, $1.4 approved. million in investment. our money,” he said. “Most people do not understand Marquette Food Co-op, $615,000 to renovate two vacant buildings to He cited the case of former felon Ready-to-assemble in Canton it,” said Rep. Jeff Farrington, R-Uti- expand operations, including a teaching kitchen and classroom. 30 jobs, Richard Short, who conned the ca, chairman of the House Tax Poli- $3.4 million in investment. MEDC into approving a $9.1 mil- The demographics of the Canton cy Committee. “I think MEDC and Michigan Historic Preservation Network, Lansing, $68,187 to renovate lion incentive for a company he Township site “are clearly the the fund board already have issues the historic Thelma Joyce Osteen Comfort Station. One job, up to was said to be operating out of his strongest,” said Nicholas King, a with transparency and oversight, $682,284 investment. mobile home in 2010. The incen- principal in developer Paragon and this makes it even worse.” Rebuild Lebowsky LLC — Shiawassee Center, Owosso. $446,000 for the tive was never paid. Outlet Partners. Farrington said he has not nonprofit Owosso Community Players to renovate the Joseph H. Lebowsky The site’s location of less than a heard of problems arising from Theatre. Two jobs, $6.7 million in investment. mile from the only Michigan Ikea expedited approvals, but said he Woodward Theater LLC, Detroit, $750,000 to help developer George Making promises — a destination unto itself — was would like to see the use of dele- Stewart renovate the Garden Theater on Woodward Avenue. 84 jobs, Not surprisingly, the compa- part of the attraction, he said. And gated authority more transparent $12.3 million in investment. nies that get the incentives like its proximity to Detroit, Ann Ar- so everyone knows how state tax Woodward Willis LLC, Detroit, $745,000 for a new Midtown Detroit- expedited approval. bor and Canadian traffic are other dollars are being handed out. owned mixed-use building to house a Lawrence Technological University William Fournier, president of selling points of the 50 acres “They are controlling very design center. 100 jobs, $6.4 million investment. Mayser Polymer USA in Canton Paragon has under contract, King large purse strings with very little Michigan Business Development Program grants Township, said working with the said. accountability,” he said. state was quite easy and allowed Paragon typically does its de- AGS Automotive Systems. $900,000 to renovate an idled BorgWarner the company to move forward with sign and architecture in-house and Inc. plant in Sterling Heights. 90 jobs, $21 million in investment. its $3.9 million expansion project. is in the process of contracting a The process GKN Driveline North America. $1 million to expand automotive “It was a pretty simple process,” local engineering firm and legal Josh Hundt, director of busi- engineering and testing services operations in Auburn Hills. 50 jobs, $5.1 he said. counsel, King said. ness incentives for the MEDC, million in investment. In September 2012, the company Paragon previewed the site and said Finney, Morante and Clinton Hark Orchids LP. $500,000 to establish a 30,000-square-foot lab and was awarded a $200,000 perfor- project at the International Council individually have the ability to climatic chambers facility for Orchids in Kalamazoo. Company’s first facility mance-based grant through dele- of Shopping Centers’ Global Retail veto any proposed incentive. outside Germany. 80 jobs, $5 million in investment. gated authority to expand its oper- Real Estate Convention in Las Ve- Finney said he doesn’t recall that HCL America. IT and software development company establishes a new ations to assemble its anti-pinch gas in May, he said. happening, but if it does, the pro- facility in Jackson. 300 jobs, up to $3.35 million in investment. sensors, a safety feature that goes “We have a lot of tenant interest, posed incentive goes to the Strate- Herbruck Poultry Ranch, Saranac. $500,000 to expand egg production on most automated lift gates. and we anticipate it will be very gic Fund board for consideration. and processing facilities. 50 jobs, $33 million investment. Fournier promised to create 50 successful,” King said. All projects considered for in- ReNu Wireless USA. $900,000 to open a new communications new jobs within two years on top of The Canton property, most of remanufacturing operation in Roseville. 228 jobs, $5.3 million in investment. centives go through the same re- the 12 people he already employed. which has never been developed, view process, according to the At the end of the first year, he is already zoned MEDC. ways striving for.” that’s part of his job, then that’s was to have added at least 25 jobs for general com- part of his job.” to receive the first half of the mon- mercial, said MEDC staff members conduct a He said dele- ey, but at that point he already Kristen background review of the compa- How it’s done elsewhere gated authority had 59 full-time workers — just Thomas, Canton ny and its key personnel and a le- Surrounding states have vary- does allow the three shy of the target he had to Township’s eco- gal review of the project. Individu- ing ways of handling incentive ap- state to react hit the next year. nomic develop- als who sign off on the deal have to provals. more quickly “We will be definitely be there,” ment manager. sign a form saying they do not have a conflict of interest with the In Ohio, all incentives are ap- than it could be- he said. The timing for proved by a board in a public fore. the development project. If they do, they have to re- Finney said this is indicative of cuse themselves. meeting. “That’s what the response the MEDC has been would work well it was designed Thomas Hundt said the MEDC staff, In Indiana, incentives totaling receiving. with the planned less than $3 million are approved by for,” he said. paving of Lotz Road, which runs when selecting projects for ap- “Our early data say companies proval, looks at how many high- the management staff of the Indiana Kowall With small are overachieving,” he said. along one side of the property, par- Economic Development Corp. The rest businesses, op- allel to I-275, she said, adding that paying jobs will be created, the According to the MEDC, of the level of private investment that are approved by a board. In 2013, 261 portunities to expand because of a 22 business development program the township plans to work with its projects received incentives, and new customer or to add a product DDA to see if there is any available will occur, how quickly the pro- incentives that were approved less than a dozen were approved by line can come up and go away funding for the project. ject can begin if given a state with delegated authority in fiscal the full board, said Rebecca quickly, Kowall said. Regardless of which get devel- grant and if it will provide a net year 2012, 19 have met or exceeded Helmke, media relations and public “If you don’t move in an expe- oped, the outlet centers would be a positive return to the state. their milestones related to the The MEDC says delegated au- affairs manager for the IEDC. dited fashion, then you’re going to jobs they had to create in order to boon for the local economy, not It is key, with the projects ap- only for the jobs they’d create, but thority allows the state to move miss the window of opportunity,” earn their incentive. with speed, especially with lower proved outside of the public meet- he said. In May 2012, AGS Automotive was also from the ancillary uptick for ings, to ensure there is trans- local restaurant s, hotels and even dollar-value projects that Finney For example, Kowall said, a com- awarded a $900,000 grant to expand believes the board would approve. parency, Finney said, but he pany may have the opportunity to its Sterling Heights facility, which tourist destinations. believes there is no problem in So rather than wait until the next take on a new customer, but doing makes automotive bumper system “We know from our hoteliers that regard. He said the fact that monthly board meeting, a deal so would require expanding its fac- assemblies, and create 90 jobs. that a lot of people choose to all approved deals are made pub- make shopping a weekend desti- can be approved when it is ready, tory. Delegated authority can be Lisa Boulton, general counsel lic via press releases is key to pro- nation,” said Renee Monforton, Hundt said. quicker than waiting for a Strate- with AGS, said she did not have viding transparency. director of communications at “I’ve never had concerns ex- exact numbers readily available, “I think the (delegated authori- gic Fund board vote, Finney said. the Detroit Metro Convention & Visi- pressed about transparency,” but said the company is far ahead ty) policy is a good policy,” he said. Finney said that’s true, but the tors Bureau. Finney said. “The phone calls that of its job projections. “We’ve not had any complaints MEDC does not use that as a sell- About 14 million people visit I get are about us not moving fast Boulton said the company had a about the integrity of our process.” ing point with companies. metro Detroit annually, according enough.” great experience dealing with the Sen. Mike Kowall, R-White Michael LaFaive, director of fis- to the bureau’s 2013 visitor study, There has been discussion state as it was looking for help Lake Township, chairman of the cal policy for the Mackinac Center and of those, about 4 million have about legislative changes to either with the expansion project. for Public Policy, said he doesn’t indicated that they shop when stop or change delegated authori- Senate Economic Development “I don’t think I’ve ever experi- think it matters if two people or they’re in town, she said. ty, but it has not been a high prior- Committee, said he understands enced a situation where govern- “If we enhance the shopping op- ity, he said. the need for quick turnaround, the full board approve projects. ment has ever responded in such tions, we can assume that will “We don’t see the process as but also understands transparen- He thinks they will fail in the an expedited manner,” she said. move the needle even more on visi- broken, so we don’t have any cy concerns. same way other state incentive “It was remarkable how efficient- tors,” Monforton said. plans for changes, but we would if “I’d probably prefer to have it go programs he’s studied have done. ly it was handled.” Sherri Welch: (313) 446-1694, it became necessary,” Finney in front of a board, but at the same He said tax incentives pro- Chris Gautz: (517) 403-4403, [email protected]. Twitter: said. “Continuous improvement time, that’s what Mike (Finney) grams he has studied during the [email protected]. Twitter: @sherriwelch is good and something we are al- was hired for,” Kowall said. “If Granholm administration fell far @chrisgautza oo 20140609-NEWS--0032-NAT-CCI-CD_-- 6/6/2014 5:04 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS June 9, 2014 I got a lot of ‘who the hell are you?’ at first, but they got it. “”Syed Mohiuddin A conventional way to boost city

ing to Mohiuddin, rolled out the How one man’s vision From the balcony of his apartment in downtown red carpet for ISNA staff and Detroit, Syed Mohiuddin saw that no one was down speakers to the events, booking there and decided to do something. The result: 20,000 them into suites with downtown persuaded national people will be downtown during the Islamic Society of North America’s national convention. river views, leaving bags of made- in-Michigan goodies in their hotel Islamic conference rooms, offering snacks and the opportunity to talk with Detroit leaders in the hospitality rooms at the to come to Detroit DoubleTree by Hilton Hotel Detroit- Dearborn and the Islamic Center of BY SHERRI WELCH America in Dearborn, one of the CRAIN’S DETROIT BUSINESS oldest and largest mosques in the country. he view from Syed Mohi- During a winter visit from the uddin’s 15th-floor apart- ISNA team, the council also booked the Fountain Bistro at Cam- ment balcony in down- T pus Martius Park for s’mores and town Detroit was idyllic, with ice skating. the glint of the Detroit River, The fact that the Shiite popula- Hart Plaza, Campus Martius tion in metro Detroit is more bal- Park and cityscape all in view. anced with Sunni populations here than in other parts of world But as he looked down on a July was also an attraction for ISNA, day in 2009, there was one thing which wanted to engage the Shiite missing: No one was walking population, Mohiuddin said. around. Around the same time, the logis- The urge to help find a way to tics of hosting an event in Detroit bring people downtown spurred began improving. Mohiuddin, a doctor now finishing The $299 million renovation of his residency at DMC Sinai-Grace Cobo Center was well underway, Hospital, to launch what became a the Crowne Plaza Detroit Downtown four-year effort to bring the Islamic Riverfront hotel reopened, the De- Society of North America’s national troit Marriott at the Renaissance Cen- convention to Detroit. ter’s $30 million renovation began It paid off. to take shape, and shuttle service ISNA is bringing its annual con- from Detroit Metropolitan Airport ference, the largest Muslim gath- was launched. ering in the U.S. — with 20,000 at- MMCC’s board members and tendees and a projected $20 other supporters in the local Mus- million in economic impact — to lim community began contacting Detroit for the first time Aug. 29- ISNA to share their enthusiasm Sept. 1. over the investment and rejuvena- That wouldn’t have happened if tion taking place in the city, Mohi- Mohiuddin, now 31, hadn’t refused uddin said. He also began mailing to take “no” for an answer. ANTHONY BARCHOCK the national office clips of every would prevent people from attend- attending the council’s board The Council of the Islamic Orga- good piece of news being reported ing, and the region lacked a well- meetings to gain insight into its nizations invited Mohiuddin to about investment and momentum Tough sell managed local Muslim group with operations and meeting with the join its board, and he helped per- in the city. Mohiuddin, then a Michigan enough pull to help organize and former and acting executive direc- suade the two groups to merge in Last year, ISNA made the deci- State University medical student, recruit hundreds of volunteers tors and supporters of another lo- 2011. They created the Michigan sion to bring the national conven- picked up the phone and called and assist on marketing the event. cal group, the Islamic Shura Council Muslim Community Council and re- tion to Detroit this August. Plainfield, Ind.-based ISNA one Mohiuddin told Saleem: “Let me of Michigan. cruited Muzammil Ahmed, a part- The logistical improvements, day to ask if the association would get back to you once I’ve ad- He asked about the Shura Coun- ner and urologist at Royal Oak- better security in the city, the bring the convention to Detroit. dressed these issues.” cil’s value proposition, why there based Comprehensive Medical Center stronger local Muslim council and The immediate answer was was a need for the organization to PLLC, to chair it. interest from the Muslim commu- laughter. have formed in 2006 when the Ahmed was well known in the nity helped swing things in De- Not only was Mohiuddin young Push for a merger Council of the Islamic Organiza- Muslim community “and (could) troit’s favor. and unknown in the Muslim com- In between his medical studies, tions had been around since 1988, make things happen with phone And young people like Mohiud- munity, but Detroit groups had at- Mohiuddin, who already had and what supporters envisioned calls,” Mohiuddin said. din coming forward and showing tempted and failed to attract the earned a bachelor’s degree in eco- for the Shura Council’s future. Both councils knew Mohiud- interest, “really helped for us to convention, Basharat Saleem, nomics from the University of Michi- It was a brazen move, he admits, din’s push for the merger was fu- further make up our minds to ISNA’s director of conventions gan and a master’s in medical sci- but after many months, Mohiud- eled by the desire to bring the bring the event to Detroit,” and conferences, told him. ences from Boston University, began din sent a letter to the chairman ISNA convention to Detroit. “But ISNA’s Saleem said. The host city for ISNA’s nation- volunteering with the Council of and vice chairman of both local at the end of the day, they knew ... In setting out to land the ISNA al convention, its largest gather- the Islamic Organizations of Muslim councils, asking them to it was good for both organizations convention, Mohiuddin said, he ing of the year, needed to have a Michigan. He hoped, as a first step, consider a merger. He knew the and the community,” he said. had no idea it would take this long significant population of Muslim to help figure out how it could be- vice chairman of the Shura Coun- The merged council hosted two or that he would get so involved in people from which the event could come strong enough to serve as cil and thought he might be recep- local diversity events in 2011 and the community. draw attendees, Saleem said. De- the local host of the convention. tive. But the letter riled both 2012, showing it could organize “But you do what it takes,” he troit had that. But there were lo- To get the council’s attention groups as a whole, because they events, recruit volunteers and said. gistical factors when the city was and bring new energy, Mohiuddin were competing for dollars and in- draw attendees. The events were Mohiuddin will leave Detroit for being considered in the early offered to connect the council with fluence, Mohiuddin said. aimed at building understanding an associate position at McKinsey & 2000s for an event three to four the Muslim Students Association “I got a lot of ‘who the hell are among different segments of the Co. in Chicago in July, joining his years into the future. chapters at Wayne State University, you?’ at first, but they got it,” he Muslim community, including the wife, Atiya, a mechanical engineer At that time, Cobo Center had UM and MSU and Muslim high said. “It made sense … and they Sunni and Shiite sects and the dif- who was recently promoted to a issues, and Detroit didn’t have school groups. In exchange for the were all tired of not seeing the out- ferent racial and ethnic communi- position at Smith Group JJR’s Chica- enough hotel rooms downtown to student groups bringing volun- comes they wanted.” ties, including Arab-American, go office. accommodate attendees. “That’s teers and attendees to its events, The organizations had a com- African-American and South But there’s no question — he’ll why our convention has predomi- the council provided sponsorships mon goal of wanting to make the Asian-American Muslims. About be back in August for the ISNA nantly been in Washington, D.C., for their events. Through the ef- Michigan Muslim community 800 people showed up the first convention. or Chicago,” Saleem said. fort, Mohiuddin engaged 500-600 stronger. And there were gaps in year, Saleem said. Sherri Welch: (313) 446-1694, There were also safety concerns young people for the council. how both went about it that the MMCC, which is operating on a [email protected]. Twitter: about Detroit that ISNA feared In 2010, Mohiuddin also began other filled, he said. budget of about $150,000, accord- @sherriwelch 20140609-NEWS--0033-NAT-CCI-CD_-- 6/6/2014 5:08 PM Page 1

June 9, 2014 CRAIN’S DETROIT BUSINESS Page 33 Grips: SuperStroke to move beyond putter grips www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 called Techniques, and later ex- using the company’s grips on some or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- panded into upscale custom put- or all of their clubs. 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- ters in the $300 range. Golf Pride, founded in Cleveland 0460 or [email protected] They bought the Tiger Shark golf in 1949, is a division of Sumter, MANAGING EDITOR Jennette Smith, (313) 446- 1622 or [email protected] club brand in 2000 from Japanese- S.C.-based Eaton Corp., a $22 billion MANAGER, DIGITAL STRATEGY Nancy Hanus, owned Allied Holdings Inc. in Cali- manufacturer of industrial and (313) 446-1621 or [email protected] MANAGING EDITOR/CUSTOM AND SPECIAL fornia for $350,000, and for years aerospace power products. PROJECTS Daniel Duggan, (313) 446-0414 or marketed the clubs in the U.S., “The overall golf business cli- [email protected] SENIOR EDITOR/DESIGN Bob Allen, (313) 446- Asia and Europe. mate has been challenging for the 0344 or [email protected] Dean Dingman, 47, said he last decade, so growing the game SENIOR EDITOR Gary Piatek, (313) 446-0357 or [email protected] bought the SuperStroke brand, by adding new golfers has been a WEB EDITOR Kristin Bull, (313) 446-1608 or then based in Wisconsin and ad- major priority in the industry for [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- vertising on infomercials, after several years now,” said Brandon 8158 or [email protected] getting into a squabble over trade- Sowell, global sales and marketing RESEARCH AND DATA EDITOR Sonya Hill, (313) 446-0402 or [email protected] mark names for a grip. director for Eaton’s golf grip divi- WEB PRODUCER Norman Witte III, (313) 446- After talks to resolve the issue, sion, via email. 6059, [email protected] JOHN SOBCZAK EDITORIAL SUPPORT (313) 446-0419; YahNica the former owner expressed inter- “With that, we’ve focused much Crawford, (313) 446-0329 est in buying Tiger Shark so that it PGATour.com equipment writer Jonathan Wall on the appeal of the SuperStroke: of our energy on educating players NEWSROOM (313) 446-0329, FAX (313) 446- “Unlike a standard putter grip, the oversized version takes the hands off the equation 1687 TIP LINE (313) 446-6766 would have a putter to sell with its and puts an emphasis on using bigger muscles to develop a repeatable stroke.” about the importance of annual re- grips, but eventually Dingman gripping to save strokes and en- REPORTERS Jay Greene, senior reporter: Covers health care, ended up buying SuperStroke. insurance, energy utilities and the environment. Kozuchowski, managing editor of and sizes. hance their experience on the His plan was to exit the golf club course. (313) 446-0325 or [email protected] Dearborn-based GolfWRX.com, a Like much golf equipment, the Amy Haimerl, entrepreneurship editor: Covers manufacturing and sales business golf equipment and news website grips are manufactured in China, “In the putter grip category entrepreneurship and city of Detroit. (313) 446- in five years and solely concen- specifically, players’ preferences 0416 or [email protected] affiliated with Golf Digest. and SuperStroke this year opened Chad Halcom: Covers litigation and the defense trate on grips. SuperStroke has staffers on site at a Beijing office. are very individualized — reflec- industry. (313) 446-6796 or [email protected] tive of the many different ways Tom Henderson: Covers banking, finance, “We did it in three years,” he every tournament on all of the pro Thirty percent of the firm’s sales technology and biotechnology. (313) 446-0337 or said. Tiger Shark was closed. golf tours — the PGA, LPGA, the de- come from golf-mad Asia. Half of players hold the club, their stances [email protected] and postures — which all impact Kirk Pinho: Covers real estate, higher education, The concept of the oversized grip velopmental Web.com Tour, the Cham- its sales are in the U.S. and 20 per- Oakland and Macomb counties. (313) 446-0412 or intrigued Dingman as a golf prod- their grip preferences.” [email protected] pions Tour for pros 50 and older, and cent are in Europe, Dingman said. Bill Shea, enterprise editor: Covers media, uct, and he thought SuperStroke tours in Europe and Korea, Ding- The Ferndale-based marketing advertising and marketing, the business of sports, could be tweaked into something and transportation. (313) 446-1626 or man said. agency Driven Solutions Inc. created A bright spot [email protected] that would interest touring pros “We have a guy on the PGA Tour; SuperStroke’s logo and advertising Dustin Walsh: Covers the business of law, auto and the buying public. SuperStroke’s success comes as suppliers, manufacturing and steel. (313) 446- Monday through Wednesday he’s campaign last year. 6042 or [email protected] “The original product was com- standing on the putting green, get- “We knew we had to get the golf suffers economic malaise. Sherri Welch, senior reporter: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or pletely different other than the ting them product, letting them test brand right, and the ‘Play Better The Jupiter, Fla.-based National [email protected] shape,” Dingman said. “We liked it,” he said. “The relationships start Grips’ positioning helped them be- Golf Foundation reported that total LANSING BUREAU the technology, but the product Chris Gautz: Covers business issues at the Capitol on the putting green when they’re come the technological leader in rounds played nationally were and utilities. (517) 403-4403 or [email protected] wasn’t right. We just weren’t sold down 5 percent in 2013 compared out playing their practice rounds.” the category,” said Driven COO ADVERTISING on the design, weight and feel of to 2012. It also reported that 14 new Dingman struck gold with the and principal Kevin Woods. SALES INQUIRIES (313) 446-6052; FAX (313) the grip they had.” putter grips as a business because “There haven’t been many golf U.S. golf courses opened last year 393-0997 PGA golfer K.J. Choi had won regular golfers typically will own product newcomers with PGA while 157 closed, the eighth SALES MANAGER Tammy Rokowski twice using the old SuperStroke, straight year closures have out- SENIOR ACCOUNT EXECUTIVE: Matthew J. several putters, Kozuchowski said. player success, and SuperStroke is Langan giving the concept some cachet “These golfers one of them.” paced openings. ADVERTISING SALES Christine Galasso, Jeff among touring pros and the public. are willing to Dingman, a Farmington Hills A study of American and Japan- Lasser, Sarah Stachowicz CLASSIFIED SALES Angela Schutte, manager, Using the relationships already spend $15 or $25 native, said he started his golf ese golf equipment sales released (313)-446-6051 built from Tiger Shark, and the to upgrade a business in Warren, but moved it, at the PGA Merchandise Show in DIGITAL MARKETING MANAGER budding interest in oversized put- January shows that putter sales Jennifer Chinn putter. That’s a for convenience, to Wixom in 2010 AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo ter grips, Dingman made the right smart play by after he moved to Brighton. among the U.S.’s 24 million golfers EVENTS MANAGER Kacey Anderson choices in which pro golfers he Dean to recog- declined 4 percent last year to $173 SENIOR PRODUCER FOR DIGITAL/ONLINE paid to endorse his grips. nize that golfers million from about $180 million in PRODUCTS Pierrette Dagg What’s next SENIOR ART DIRECTOR Sylvia Kolaski One is 20-year-old phenom Jor- are willing to 2012, according to Bloomberg. SALES SUPPORT Suzanne Janik, YahNica Crawford dan Spieth, the PGA Tour’s 2013 spend on their SuperStroke is moving next into In a first-quarter earnings con- PRODUCTION MANAGER Wendy Kobylarz rookie of the year and winner of putters,” he grips for drivers, woods, irons and ference call, Dick’s Sporting Goods PRODUCTION SUPERVISOR Andrew Spanos Kozuchowski last year’s John Deere Classic. He said. wedges, Dingman said, and the plan CEO Edward Stack pinned the CUSTOMER SERVICE began 2014 in impressive style by company’s poor results on declin- MAIN NUMBER: Call (877) 824-9374 or write SuperStroke also has industry is to introduce the new products at [email protected] finishing tied for second at the interest: Carlsbad, Calif.-based the annual PGA Merchandise Show ing golf equipment sales. SUBSCRIPTIONS $59 one year, $98 two years. iconic Masters Tournament in April golf club giant Callaway Golf Co. has in Orlando, Fla., next year. “We anticipated softness, but in- Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state using SuperStroke’s Flatso Ultra. a deal with Dingman to put the 15- “The other 13 clubs, we’re not in stead we saw significant decline. rate for surface mail. Call (313) 446-0450 or The other is Jason Dufner, a 37- inch SuperStroke as the standard that business yet,” he said. “We We underestimated how signifi- (877) 824-9374. cant a decline this would be. We SINGLE COPIES: (877) 824-9374 year-old three-time PGA Tour win- grip on its Tank Cruiser counter- feel with our brand and technology REPRINTS: (212) 210-0750; ner who won the 2013 PGA Champi- balanced putters in its ultra-popu- we bring, we feel we can take some now expect this trend could con- or Alicia Samuel at [email protected] onship last August while using the tinue for the balance of the year,” TO FIND A DATE A STORY WAS PUBLISHED: lar Odyssey line. share.” (313) 446-0406 or e-mail [email protected] SuperStroke grip. Oversized grips work only on he said, adding that there’s a CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Dufner lost the 2011 PGA Cham- putters, so SuperStroke has spent “glut” of wholesale and retail golf CRAIN COMMUNICATIONS INC. pionship in a playoff, and the atten- The technology equipment inventory. CHAIRMAN Keith E. Crain the past 18 months working on PRESIDENT Rance Crain tion on him and his equipment was SuperStroke grips are simply what Dingman terms a premium Golf ranges between 10 percent TREASURER Mary Kay Crain heightened because the tournament fatter rubber grips for putters, and rubber compound to, he said, give and 25 percent of the retailer’s Executive Vice President/Operations William A. Morrow is one of the PGA’s four majors. they don’t taper. The patented de- the grips “a material difference business each quarter, and Dick’s Executive Vice President/Director of Strategic “The big jump was with Dufner,” sign means there is less use of the pros will appreciate.” plans to reduce golf equipment Operations Chris Crain Vice President/Production & Manufacturing Dingman said. “It gave us so much hand muscles in putting, which The expansion will necessitate floor space in its stores because of Dave Kamis visibility. It put us on the map.” can translate into fewer strokes. adding inside sales and marketing soft demand. Its inventory in- Chief Financial Officer Thomas Stevens Most recently, Dufner finished “What makes it so popular? Un- staff, he said. The company has 11 cludes SuperStroke putter grips. Chief Information Officer second after losing in a playoff at like a standard putter grip, the over- employees in Wixom, another 25 Retailers are excited about Su- Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) the Crowne Plaza Invitational at Colo- sized version takes the hands off the sales reps in the field, and two in perStroke, GolfWRX.com’s Kozu- Mrs. G.D. Crain Jr. Chairman (1911-1996) nial on May 24, using a Super- equation and puts an emphasis on China to handle manufacturer con- chowski said, because it’s some- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; Stroke Slim 3.0 17-inch grip on his using bigger muscles to develop a tracts. thing customers haven’t seen. And (313) 446-6000 Scott Cameron Futura X Dual Bal- repeatable stroke,” wrote “With this extra growth, we’re with an established name, expan- Cable address: TWX 248-221-5122 AUTNEW DET sion into grips for other clubs CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ance putter. PGATour.com equipment writer going to need more people,” Ding- is published weekly, except for a special issue the SuperStroke also got a boost last Jonathan Wall in August. “There’s man said. could also prove popular in terms third week of August, and no issue the third week of December by Crain Communications Inc. at year when Phil Mickelson won the a reason why SuperStroke, one of SuperStroke also is in talks of retail sales. 1155 Gratiot Ave., Detroit MI 48207-2732. British Open while using the compa- the most popular oversized options about a business relationship with “At least in the beginning, the Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send ny’s grips. He’s not a paid endorser. on the PGA Tour, has between 23-35 Dave Stockton, the former touring interest will be high and the sales address changes to CRAIN’S DETROIT BUSINESS, players in the field each week using pro and Ryder Cup captain who will be good,” he said. Circulation Department, P.O. Box 07925, Detroit, A quarter of PGA touring pros in MI 48207-9732. GST # 136760444. Printed in a given week’s tournament are us- the grip.” has become the PGA Tour’s $500- Either way, Kozuchowski said, U.S.A. The secret of the thick grip is an-hour putting guru, Dingman Entire contents copyright 2014 by Crain ing SuperStroke putter grips, and he expects the oversized grips to Communications Inc. All rights reserved. the company is airing commercials that it doesn’t taper, Dingman said. said. continue to increase in popularity. Reproduction or use of editorial content in any manner without permission is strictly on the Golf Channel featuring Dufn- “It takes the right hand out of it. The move into grips for all clubs “I don’t think large-size grips prohibited. er and Spieth touting the product. All other grips taper,” he said. is a challenge to grab market share are a fad,” he said. “How quickly (SuperStroke has) The colorful grips — they fea- from Southern Pines, N.C.-based Bill Shea: (313) 446-1626, been able to establish themselves ture a prominent logo easily seen Golf Pride, which says about 80 per- [email protected]. Twitter: on tour is unbelievable,” said Zak on TV — come in a variety of styles cent of all professional golfers are @bill_shea19 20140609-NEWS--0034-NAT-CCI-CD_-- 6/6/2014 6:01 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS June 9, 2014 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 31-JUNE 6 president and CEO of Invest Michigan, a new nonprofit global automotive supplier a related move, Detroit- Case comes to that manages the $6.8 mil- Wayne State price-fixing. based Skillman Foundation lion Michigan Pre-Seed Ⅲ Southfield-based con- pledged $3.5 million to help Capital Fund 2.0. struction manager Barton offset health care cuts to city Riser, a Detroit native and names biz Malow Co. was named one of retirees. graduate of Cass Technical four companies hired to Ⅲ A federal judge ruled Detroit ready High School, has 17 years of build a $622 million stadi- the U.S. Coast Guard did not experience in technology. He school dean um for Major League Base- break the law by refusing was a pro- ball’s Atlanta Braves. to approve a bridge linking ject man- obert Forsythe, a for- Ⅲ A lawsuit against Detroit and Windsor — a ager for mer dean of the busi- Novi-based Lotus Bank over project driven by Manuel to invest Sun Mi- R ness school at the Uni- racist emails by two execu- Maroun, whose Detroit Inter- crosystems versity of South Florida, was teve Case is coming to troit Institute of Music Educa- tives will go to trial, Oak- national Bridge Co. owns the Inc. before appointed Detroit. And he’s tion to Craig’s music studio. land County Circuit Court Ambassador Bridge — be- founding dean of bringing investment Reboot City even has its Judge Denise Langford Morris cause the builder lacked S his own Wayne State money. own playlist compilation in- ruled. A trial date is to be power to compel land consult- University’s The America Online founder cluding Detroit artists (also set at a hearing this week. rights to be turned over. ing firm, School of is doing a four-city tour cele- available at the tumblr site). Ⅲ Eyeglass World opened Ⅲ A federal grand jury in Riser Business Ad- brating entrepreneurship Riser its fourth metro Detroit Detroit indicted former Group LLC, ministration, and the startup culture. store, in Madison Heights, Takata Corp. executive Gik- Growing cloud-security firm in Northville in 2002. effective Case’s focus, since step- and said it plans to open ou Nakajima on a charge of Most recently, he was July 21. ping down as chairman of seven more in the area be- participating in a conspira- signs lease for bigger space chief technology officer at Forsythe, the merged AOL and Time Forsythe fore year’s end. cy to fix the prices for seat Providing highly secure Innovative Health Technolo- 64, succeeds Warner Inc. Ⅲ Denso International belts, the U.S. Department of cloud computing services gies LLC, a Detroit-based interim dean Margaret in 2003, has America Inc. acquired a ma- Justice said. requires a growing number biotech startup. He is also Williams, who was appointed been invest- jority stake in Pennsylva- Ⅲ The Michigan Court of of employees — and more co-owner of Ferndale-based to the position in 2011 when ing in real nia vehicle diagnostics and Claims granted a request brick-and-mortar space — BLAC magazine (black life, David Williams stepped down. estate, tech- telematics company Ease from a group of charities, for Duo Security Inc. arts and culture). Riser be- nology and Simulation Inc. The South- permanent charity poker Duo signed a lease Thurs- gins his new job June 16. hospitality field-based subsidiary of rooms and gaming suppli- day for larger office space Riser’s father, Paul Riser ON THE MOVE — as well as Japan’s Denso Corp. ac- ers for an injunction block- in downtown Ann Arbor. It Sr., was a trombonist in the firms that Ⅲ The Detroit Pistons quired a 72.1 percent stake ing new charity poker rules plans to make the move into legendary Funk Brothers, stu- “can change named Jeff Bower, 53, as in Ease, which will retain that took effect in May. Case 14,000 square feet at 123 N. dio musicians who played on the world” general manager. He was its name and location. Ⅲ The public is invited to Ashley St., spread over many Motown hits of the — through his Revolution LLC. most recently head basket- Ⅲ Detroit-based Meridian provide feedback on six de- three floors, sometime in ‘60s and ‘70s. He also wrote Recently, Revolution in- ball coach at Marist College Health Plan said it plans to signs for the rebuilding of the fourth quarter. or arranged on such Motown vested $30 million in Oak- in New York and was previ- withdraw from the Medic- I-375 at an open house June CEO Dug Song, who co- hits as “My Girl,” “I Heard It land, Calif.-based Revolution ously in the National Basket- aid program in New Hamp- 12 in Shed 5 at Eastern Mar- founded the company in Through the Grapevine” and Foods, which it believes will ball Association as a general shire on June 30 to focus on ket. The event is being host- 2009, said he has been hir- “Stop in the Name of Love.” revolutionize school lunches. manager and coach with growth in Michigan, Illi- ed by the Detroit Downtown ing Now Case wants to see the New Orleans Hornets. nois and Iowa. Development Authority, steadily what revolutions Detroit Troy Rotary’s new president Ⅲ Southfield-based JVS, Ⅲ Detroit Rescue Mission Michigan Department of and plans has to offer. which provides counseling, Ministries took over opera- Transportation and Detroit to be near On June 24, he will host a has field experience training and support ser- tion of Lighthouse Outreach RiverFront Conservancy. 100 em- fireside chat with Dan Gilbert A name familiar to fans vices, named longtime COO Center in Roseville. Ⅲ The University of Michi- ployees at Grand Circus Detroit LLC’s of- of the Detroit Lions and the Leah Rosenbaum as presi- Ⅲ Old National Bancorp, gan’s Institute for Research by year’s fices. Then he’ll head to the Michigan State Spartans, dent and CEO. Rosenbaum, which owns 18 United Bank on Labor, Employment and end. Madison Building for a pitch Monte Clark, was sworn in interim head of the non- & Trust branches in four the Economy was awarded a Duo Se- competition and happy hour. last week as the new presi- profit since October, suc- Michigan counties and is grant of nearly $2.5 million, curity One lucky local startup will dent of the Troy Rotary. ceeds Barbara Nurenberg, purchasing Ann Arbor- in partnership with Ohio provides walk away with a $100,000 in- Clark, who goes by his who retired last fall. based United Bancorp, said it State University and Purdue Song two-factor vestment from Case. middle name of Bryan, is the is buying Lafayette, Ind.- University, to help small- authentication — which ver- Case is also a benefactor son of the late Monte Clark, based savings and loan LSB and medium-size compa- ifies the identity of an entity of Detroit-based iRule LLC, head coach of the Lions COMPANY NEWS Financial Corp. nies affected by military trying to access services in a which took home a $100,000 from 1977 to 1984. The Ⅲ Dan Gilbert is buying Ⅲ Lawrence Technological spending cuts, AP reported. computer or network — to commitment from Case in younger four more Detroit central University plans to close its Ⅲ The Michigan Senate vot- more than 4,000 organiza- April as part of the Google Clark business district proper- Center for Nonprofit Manage- ed to dedicate part of the tions worldwide. for Entrepreneurs Demo Day played ties, this time from the ment at month’s end after a state sales tax collected on Song was a member of the competition. quarter- Downtown Development Au- decade of operation, a result gasoline to road funding, AP 2012 class of Crain’s 40 Un- See riseoftherest.com for back thority, whose board ap- of restructuring at the reported. The legislation der 40. In 2000, he was one of details on the local events. from 1978 proved selling the former Southfield-based university. would move $128 million a five self-described geeks to 1981 at garage site at 126 Monroe Ⅲ Seelio Inc., an Ann Ar- year from Michigan’s gener- and hackers who co-found- MSU and St. and buildings at 1322, bor social media company al fund to transportation. Detroit’s ‘Reboot’ story ed Arbor Networks, a Universi- then 1326 and 1332 Broadway. that enables college students ty of Michigan spinoff that to travel to France spent two The Broadway buildings — to post their work in online was later sold to Tektronix BITUARIES seasons which may be redeveloped portfolios, has been bought O Detroit’s story is also be- Communications. Clark in the Na- as lofts — are being sold for by Lenexa, Kan.-based Ⅲ Dean Becharas, owner ing told on the internation- Arbor Networks’ security tional Football League, with $500,000, and the Monroe PlattForm, a marketing and of Highland Park-based al creative stage. software is used by more the San Francisco 49ers and Street site sale price is enrollment recruitment Becharas Brothers Coffee Detroit-based Lowe Camp- than 80 percent of the Cincinnati Bengals. $1.5 million, according to company serving colleges Co., died June 2. He was 79. bell Ewald Chief Creative Of- world’s Internet providers. Clark didn’t play much DDA board documents. and universities. Terms Ⅲ Don Davis, a Grammy- ficer Mark Simon, Detroit DJ Song co-founded the Tech his freshman year at MSU, Ⅲ General Motors Co. sub- were not announced. winning and producer Carl Craig and Brewery, an Ann Arbor tech but says a highlight — or sidiary Riverfront Holdings music Lowe + Partners Chief Cre- incubator, and is one of the possibly a lowlight — was Inc. purchased three vacant producer ative Officer Jose Miguel organizers of a 30,000-square- THER NEWS getting yelled at by All- buildings and a parking lot O who be- Sokoloff will tell the story of foot skate park, slated to American senior Kirk Gibson near the Detroit riverfront Ⅲ The Michigan Senate ap- came co- “Detroit: Reboot City” at a open June 21, at Veterans if his passes in pregame east of the Renaissance Cen- proved a $195 million state founder, June 20 session at the Cannes Memorial Park in Ann Arbor. Lions International Festival of warm-ups were off target. ter. Sale prices undisclosed. contribution to resolve De- chair- Creativity in France. Clark started much of his Ⅲ Sterling Heights-based troit’s bankruptcy, sending man and They plan to talk about TechTown hires Riser for senior year, one highlight be- General Dynamics Land Sys- the legislation to Gov. Rick CEO of the “people, passion, ideas ing passing for 318 yards and tems said it expects to lay Snyder. A bill that would Detroit- and thinking behind the entrepreneurship post two touchdowns in a loss to off 163 full-time employees, have prevented the Detroit In- based Davis creative companies helping Detroit-based TechTown the University of Michigan. primarily engineers, after stitute of Arts from seeking First Inde- to define the future of the has hired Paul Riser Jr. as The Rotary ceremony losing funding on one con- another millage was left out pendence Bank, died June 5. city.” A video posted at de- managing director of tech- was held at the St. Nicholas tract program and declin- of the legislation passed by He was 75. troitreboot.tumblr.com as part nology-based entrepreneur- Culture Center in Troy. ing to bid on another. the Senate, and the Detroit Ⅲ Dominic Russo Sr., co- of the initiative features ship. He replaces Charlie These days, Bryan Clark is Ⅲ Stockholm-based Auto- City Council approved a reso- founder of Detroit-based panoramic views of the city Moret, who left the Wayne an insurance agent with the liv Inc. agreed to pay $65 lution to move artwork Rocky Produce Inc. and and glimpses of creative State University-affiliated in- McLeod-Koski Agency Inc. of million to plaintiffs in a De- threatened by the bankrupt- Rocky Peanut Inc., died May spaces ranging from the De- cubator in April to become Bloomfield Hills. troit civil lawsuit over cy into a charitable trust. In 21. He was 82. DBpageAD_DBpageAD.qxd 6/4/2014 12:05 PM Page 1

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