20141124-NEWS--0001-NAT-CCI-CD_-- 11/21/2014 7:07 PM Page 1 ® www.crainsdetroit.com Vol. 30, No. 47 NOVEMBER 24 – 30, 2014 $2 a copy; $59 a year ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 WSU doc group shake-up reveals philosophical split Immigration dissection Kevin Adell buys Farmington expedites the process for skilled radio station for $3 million Experts: Parts of Obama plan good for workers to gain status in the U.S.” In a speech to the nation Thurs- Salary survey points to day night, President Obama said he return of retention bonus business; may fall short for tech workers would issue an executive order that allows qualified undocumented im- BY BILL SHEA neurs to more migrants a renewable three-year le- Finance AND DUSTIN WALSH easily establish gal status. The plan allows them to CRAIN’S DETROIT BUSINESS businesses in apply for work permits as long as the U.S.,” said they meet government-set criteria, President Obama’s temporary University of De- have no criminal record, provide deportation relief plan for about 5 troit Mercy personal data, and pay a nearly $500 million undocumented immi- School of Law fee. grants includes elements that have Professor David The president also said other la- some local business executives Koelsch, who bor-related immigration issues and immigration experts hailing also is director IMMIGRATION ISSUES HIT HOME Chase Bank program opens would be tackled, such as modern- the coming changes as an econom- of the law Koelsch izing the green card system and ex- Michigan’s plan: Obama move door for Detroiters, Page 11 ic positive for metro Detroit. school’s Im- unlikely to affect Snyder’s strategy, migration Law Clinic and the Asy- tending certain employment pro- Page 24 “Taking executive action does grams for international students This Just In not just bring certain undocument- lum Law Clinic. Detroit’s open door: As Washington “It allows foreign STEM gradu- in high-tech fields. debates, immigrants bolster the ed immigrants into the main- Motor City, Page 25 Shinola to open watch dial stream, it also allows entrepre- ates to put down roots here, and it See Immigration, Page 24 factory in Detroit Shinola/Detroit LLC is open- ing a new watch dial factory in Detroit, allowing it to bring more manufacturing back to the city. Compuware HQ sale: Officials: Bankruptcy Currently the luxury goods company, which is known for watches, bicycles and leather goods, purchases its dials How, why deal went down from Taiwan-based BAT Ltd. fees unlikely to fall Now it has hired the firm to he Compuware building is getting new owners as train a team of 14 to manufac- ture watch dials. The factory Dan Gilbert and Meridian Health finalize a deal to will encompass 2,000 square buy the office tower for $142 million and invest Duggan fears feet inside the company’s T $24 million in upgrades. The deal gives Meridian room to flagship retail store in Mid- town. To accommodate the grow, Gilbert space to call his own and the building off possibility of MANUEL MARTINEZ growth, Shinola plans to ex- Compuware’s books. Read the back story | PAGE 26 pand the shop in 2015. more increases The factory will open in two phases, with the first starting BY CHAD HALCOM this month. Staff will learn to CRAIN’S DETROIT BUSINESS print the watch face for the Runwell model, the compa- About 80 percent of the $146 mil- ny’s best-selling model. In lion in professional services fees January they’ll learn metal- that a Detroit bankruptcy court FEE ENTERPRISE stamping and dial painting. mediator will review next week are already paid, and officials said Meet the man who will help “Our long-term goal is to decide how much lawyers, create Shinola watches that odds are long that mediation will reduce the balance very much. auditors and the like will be are predominantly American PAGE 22 made,” said Heath Carr, CEO Detroit Mayor Mike Duggan has paid, of Dallas-based Bedrock Manu- voiced concern that legal and other Also: Consultants’ expense facturing, which owns Shinola. professional fees since the city reports test official scrutiny, “This development also gives filed for bankruptcy have climbed PAGE 23 Shinola the opportunity to be by millions in recent months and part of workforce develop- could climb tens of millions more. fee negotiated into an amended ment in the local communi- But other officials and attorneys contract the firm signed with the ty.” Earlier this year, Shinola said that is unlikely, since most city in June. opened a 12,000-square-foot major disputes are resolved. Miller Buckfire, which aided leather-goods factory to pro- The tally did climb another $18 Detroit on financial restructuring duce small leather goods and million earlier this month with a matters, including lining up exit straps for its watches. Shinola new, but expected, charge from in- financing from Barclays plc and employs 320 people. vestment banking consultant Miller bonds to refinance some previous — Amy Haimerl Buckfire & Co. for a restructuring See Bankruptcy, Page 22 DAVID HALL Dec. 3 • Noon - 1 p.m. REGISTER NOW crainsdetroit.com/sidesteptaxes NEWSPAPER 20141124-NEWS--0002-NAT-CCI-CD_-- 11/21/2014 2:24 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS November 24, 2014 MICHIGAN BRIEFS Growers up a tree, thanks to said it agreed to purchase West Michigan Savings Bank, the Grand Christmasy snow that came early Kellogg offers $127M for Egypt confectionery maker Rapids Business Journal reported. That it began to look a lot like The combined company would Christmas this past week was a Kellogg Co., the Battle Creek-based producer of consumer goods industry trade on “very rich valua- have 12 branches and about $353 source of considerable consterna- breakfast cereals and snack foods, offered $127 mil- tions” and have achieved significant growth “irre- million in assets, $255 million in tion to a group who you’d think lion to buy Egyptian confectionery maker Bisco spective of the political or economic situation of the loans and $271 million in deposits. would be happy that this is the sea- Misr, topping a $119 million bid by the Abraaj Group, country,” said Wael Ziada, head of research at Cairo- Ⅲ The UFP Western Division of son when people write “’tis” in- Bloomberg News reported. based investment bank EFG-Hermes Holding SAE. Grand Rapids-based Universal For- stead of “it is.” We’re speaking Kellogg offered the equivalent of $11.05 a share, ac- Bisco, which has turned down two other offers, est Products Inc. acquired “certain about Michigan’s Christmas tree cording to a statement from the Egyptian Financial Su- owns three factories, where it produces the biscuit assets” of Bigs Packaging and Lum- growers, who are struggling to pervisory Authority. Egypt is seeing a pickup in merger Luxe and a variety of cakes and wafers. Similar to ber, a Texas-based maker of indus- harvest and ship their final orders. and acquisition activity amid increasing political Abraaj’s offer, Kellogg’s is subject to the acquisition trial wood and packaging products, Ken Wahmhoff of Wahmhoff stability. Egyptian companies in the fast-moving of a minimum 51 percent of Bisco’s shares. the Grand Rapids Business Journal Farms Nursery in Southwest Michi- reported. Bigs generated sales of about $50 million in the past year. gan’s Van Buren County told An audit found 37 store owners for 2015. Among them: Denice Journal reported. The project MLive.com that employees were Ⅲ The East Lansing-based who turned in winning tickets LeVasseur, president of the South- would include a five-story office Michigan State University Federal working in more than a foot of worth nearly $3.6 million in 2012 field-based law firm LeVasseur & building and four-story parking snow, hampering their ability to Credit Union plans to double the and 2013. One retailer collected 107 LeVasseur PC, elected chairman of ramp with ground-floor retail size of its headquarters with a get outside and harvest. Some tree prizes worth $346,312 last year. Six the board. Mark Davidoff, manag- space. Sparrow spokeswoman growers farther inland, in Cadillac new $46 million building, the store owners didn’t report $509,211 ing partner at Deloitte LLP in Detroit, Sacha Crowley said the project is Lansing State Journal reported. and Lake City, weren’t as affected in lottery winnings on their 2012 was re-elected board treasurer. expected to cost tens of millions of by the weather, said Marsha Gray, The credit union has more than tax forms. No stores were named Ⅲ Tom Mee, COO of McLaren- dollars and could start next year. 600 employees and predicts that director of the Michigan Christmas in the report. Greater Lansing hospital since 2013, Ⅲ New figures show that the Tree Association. Michigan harvests will grow to 724 by 2017 and more Officials of the Michigan Office of is the new president and CEO, the Flint Community Schools’ deficit has than 1,000 by 2024. about 3 million trees each year, the Auditor General said 13 retailers Lansing State Journal reported. grown to $21.9 million, The Flint ranking third in the nation for were disciplined. He replaces Rick Wright, who offi- Journal reported. In June, the dis- Find business news from Christmas tree production. cials said resigned “to pursue oth- trict learned its deficit had nearly around the state at crainsdetroit er opportunities” after nearly doubled to $20.4 million. .com/crainsmichiganbusiness. Audit: Lottery winners who want MICH-CELLANEOUS three years in the job. Officials for Ⅲ Sturgis Bancorp, the parent Sign up for the Crain’s Michi- Ⅲ Come 2016, Dallas will have its the hospital, owned by Flint-based company of Sturgis Bank & Trust Co.