20150720-NEWS--0001-NAT-CCI-CD_-- 7/17/2015 2:43 PM Page 1 Readers first for 30 Years For filmmaker- As IAC CEO turned- says goodbye, housing supplier may CRAIN’S investor, seek a Detroit is like good buy DETROIT BUSINESS Wild West ... or buyer PAGE 3 PAGE 3 JULY 20-26, 2015 The proposed fees — $30 for hybrids and $100 for electric vehicles — are Automakers balk at EV fees considered a tax fairness Alternative: Lawmakers should offer incentives to buyers differentiate advanced technology measure vehicles — such as electric and hy- By Lindsay VanHulle sidered a tax fairness measure since In a letter last month to Senate brid vehicles — discourage con- since Crain’s Detroit Business/Bridge Magazine alternative-fuel vehicles use less Majority Leader Arlan Meekhof, the sumers from adopting these new alternative-fuel LANSING — Automakers are gasoline and so their owners pay Washington, D.C.-based Alliance of technologies,” wrote Wayne Weikel, vehicles use pushing back against proposed fewer gas taxes. Automobile Manufacturers said law- the alliance’s state government af- less gasoline higher state registration fees for al- But automakers, racing to meet makers should be offering incen- fairs director. ternative-fuel powered cars. more rigorous federal fuel-econo- tives to buyers rather than raising “Consumer choice is the key fac- and so their The extra fees — $30 for hybrids my standards, have concerns the fees. The alliance represents a tor in driving competitiveness in the owners and $100 for electric vehicles — fees will discourage would-be buy- dozen global automakers, including marketplace, and state policy pay fewer gas taxes. would go toward a nearly $1.5 bil- ers of the fuel-efficient vehicles in a the Detroit 3. should not penalize residents of lion road funding plan and are con- still-developing market. “Public policies that negatively SEE FEES, PAGE 16 MIS drives toward sound investment Fata’s civil cases: Who will share the blame? By Chad Halcom [email protected] Former oncologist Farid Fata may have taken responsibility at sentencing for an excessive chemotherapy treatment scheme that afflicted cancer patients for years, but who will share blame with him in upcoming civil court COURTESY OF LIVE NATION hearings is unclear. The success of the Faster Horses country music festival has Michigan International Speedway looking at concerts as a source of revenue that’s not from auto racing. Federal officials have collected about $10 million in various cash and By Bill Shea Track president wants Music festivals, beer and wine tastings, driving asset seizures [email protected] schools, vehicle testing, obstacle course runs and since Fata’s 2013 he success of the three-day Faster music festivals to be part private events such as weddings are elements of arrest to go to- Horses country music festival at of a more diverse – and the 1,180-acre track’s expanding nonrace ward satisfying a TMichigan International Speedway has calendar that helps it generate revenue. $17.6 million cri- prompted the track and the concert promoter lucrative – lineup The corporate business hurt by the minal judgment to begin plans for a rock festival that could be recession also has started to rebound. that was part of akin to Lollapalooza, Coachella and Bonnaroo. Pure Michigan 400 on Aug 14-16. “Entertainment, hospitality, suites and cor- his July 10 sen- The idea is still in the talking stage, but it Attendance at the races has fallen since the porate sponsorships have been very strong,” tencing. U.S. Dis- represents the track’s latest effort to boost recession. It used to top 80,000 yearly. said Curtis, who began working in motorsports Farid Fata: trict Judge Paul revenue outside of auto racing. “It kind of dawned on us we’ve got a great in 1991 and became MIS president in 2006. $10 million seized to Borman will de- MIS, which opened in 1968 in the Irish Hills facility, we’ve got a great team here, let’s start to What all that adds up to in revenue, track ex- pay $17.6 million cide at a restitu- area of Brooklyn, south of Jackson, is best expand our portfolio and look at becoming an ecutives will not say, but Crain’s estimates it at criminal judgment. tion hearing known for its two NASCAR Sprint Cup races, the entertainment destination,” MIS President within 90 days Quicken Loans 400 in June and the upcoming Roger Curtis said. SEE MIS, PAGE 17 how much of the judgment will go to the government — because Med- © Entire contents copyright 2015 icare and Medicaid paid millions for by Crain Communications Inc. All rights reserved. his fraudulent treatments — or to crainsdetroit.com Vol. 31 No 29 $2 a copy. $59 a year. benefit his victims. But Fata also faces 27 pending civil lawsuits from victimized pa- tients and their families before Oak- land County Circuit Judge Rudy Nichols, plus a whistleblower law- suit in federal court from his former NEWSPAPER SEE FATA, PAGE 18 20150720-NEWS--0002-NAT-CCI-CD_-- 7/17/2015 1:04 PM Page 1 2 CRAIN’S DETROIT BUSINESS // JULY 20, 2015 Michigan officials also recom- rectional Services a year after the com- MICHIGAN mend requiring an independent pany, hired to feed state prisoners, INSIDE analysis of alternatives to the came under scrutiny for lack of THIS ISSUE pipelines and ensuring Enbridge has cleanliness, unapproved menu sub- BANKRUPTCIES . 17 BUSINESS DIARY . 14 adequate liability coverage in the stitutions and other issues, The Asso- ciated Press reported. Oldsmar, Fla.- CALENDAR . 14 case of a “worst-case-scenario spill.” CAPITOL BRIEFINGS . 7 based Trinity Services Group will Many environmental groups want CLASSIFIED ADS . 15 BRIEFS the pipelines shut down, fearing a transition to becoming the new ven- OPINION . 6 spill similar to one from another En- dor under a three-year, $158 million OTHER VOICES . 6 Shepler’s adds 1st boat in increase” in business during the bridge pipeline that severely pollut- contract. PEOPLE . 14 Ⅲ 30 years; demand on rise past three years, something Shepler ed the Kalamazoo River in 2010. The construction project to RUMBLINGS . 19 attributes in part to the state’s Pure build Michigan State University’s WEEK ON THE WEB . 19 Chris Shepler and his family are Michigan tourism campaign. The Davenport restructuring Grand Rapids Research Center will celebrating the 70th anniversary of company also won business from campuses across Michigan create 728 jobs, generate $55 mil- their Mackinac Island ferry compa- the Grand Hotel, which uses Shep- lion in wages and create an eco- COMPANY INDEX: ny with their first new boat in nearly ler’s as its official ferry service. Davenport University is restructur- nomic impact of $95.6 million, SEE PAGE 17 three decades. Shepler’s Mackinac Is- The contract for the Miss Margy ing several campuses across Michi- MLive.com reported, citing re- land Ferry has seen as much as 25 was given to Onaway-based Moran gan, The Grand Rapids Press report- search conducted for MSU by An- Ⅲ Grand Rapids-based Kindel Fur- percent higher passenger demand Iron Works Inc. The boat is named for ed. The changes will see locations in derson Economic Group. Ⅲ niture Co., which makes niche, de- for ferry service to the island in the Margaret Shepler, wife of Shepler’s Flint and Kalamazoo close and then Niles-based Delta Industrial signer furniture, acquired the assets past three years. founder William Shepler. She died reopen as part of community col- Valves Inc., a manufacturer of knife of Denton, N.C.-based Councill Co. With the christening July 12 of in 2004. leges in those cities. gate valves for the mining, oil sands LLC, a luxury-brand residential and the new Miss Margy — a $3.8 mil- Lindsay VanHulle In addition, the private, nonprof- and other industries, was acquired contract furniture manufacturer, lion, 85-foot vessel that will reach it school said its Battle Creek cam- by the global engineering firm Weir MiBiz reported. top speeds of 42 mph and carry up pus will close and the Saginaw cam- Group PLC of Glasgow, Scotland, for Strait talk from state: No Ⅲ Kalamazoo-based Zeigler Auto to 281 passengers — Shepler’s will pus will merge with its Midland $47 million, MiBiz reported. Delta heavy oil in Great Lake pipe Group Inc. acquired M&M Motorsports have a fleet of six boats ferrying campus. The university said it will employs 70. Birmingham-based Inc., also of Kalamazoo, MiBiz re- people between the island, Macki- The state will ban heavy crude oil look at creating a new campus to Quarton Partners LLC was the finan- ported. Zeigler now has more than naw City and St. Ignace. from being transported along a serve the Midland, Bay City and cial adviser for Delta. Ⅲ U.S. Environ- 20 dealerships in West Michigan, The Miss Margy may not be pipeline running beneath the Saginaw region. After 31 years, the mental Protection Agency Bur- Illinois, Indiana and New York. ready for its first voyage until Labor Straits of Mackinac, The Associated President Richard Pappas said removed rows Sanitation Ⅲ Authorities are looking for a Day as crews finish the last of the Press reported. Attorney General that in recent years enrollment has , a former waste dis- man who robbed the Sturgis Party painting, sanding and welding. The Bill Schuette and Dan Wyant, direc- dropped or shifted online at some posal site about 15 miles from South Store while wearing trash bags to U.S. Coast Guard also has to run the tor of the Michigan Department of campuses — especially among adult Haven, from the Superfund list of the nation’s most polluted places, The disguise his identity.