companies struggle to fill jobs for skilled laborers

Commercial real estateclaws back from recession

General and In-HouseCounsel Awards, 1

Finding bright spots in embattled solarindustry, Page 21

World Watch:Spotlight onMichigan bizin Germany, Page 25

Focus: Law

Page 3

CRAIN’S MICHIGAN BUSINESS

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®

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved

$100K biz plan competitionfor female entrepreneurs

Women entrepreneurs cancompete for up to $100,000 incash awards and in-kind sup-port in the new Entrepre-neur-You Business Plan Com-petition, sponsored by theMichigan Women’s Foundation.

The competition is open toall industries and levels ofentrepreneurship. There arethree categories: profession-al/company, collegiate, andhigh school. Applicants candescribe a business they cur-rently run or pitch an ideathey think deserves startupfunding.

The deadline for the pro-fessional/company categoryis April 26, and the deadlinefor the high school and colle-giate categories is May 4.

The award money comesfrom Huntington Bank, andwinners will also get entre-preneurial coaching fromthe foundation.

The idea for the competi-tion came from the Entrepre-neur-You conference, a yearlysummit for businesswomenorganized by Walsh College,the Michigan Women’s Founda-tion, Inforum and HuntingtonBank. More information isavailable at miwf.org.

This Just In

BY NANCY KAFFER

CRAIN’S DETROIT BUSINESS

Until the fate of a petition aimedat repealing the state’s emergencymanager law is decided, Detroit’slabor unions have no incentive tocome to the table to negotiate thesteeper labor contract cuts, includ-ing changes to union work rules,pensions and benefits, that offi-cials say are necessary to keep De-troit solvent.

If the petitionis certified forthe Novemberballot, PublicAct 4 — and thepower it grantsDetroit MayorDave Bing to im-pose contractson unions whosecontracts haveexpired — would be suspended.

That ability is a key provision ofthe consent agreement signed lastweek by the city and the state thatis intended to help the city avoidappointment of an emergencymanager or a Chapter 9 bankrupt-cy filing.

Opponents of Public Act 4 filed apetition in February to place a re-peal on the ballot in November. Or-ganizers of the petition drive gath-ered 225,885 signatures; 161,305 arerequired. The deadline for certifi-cation of signatures on the petitionis April 29. But most union con-tracts don’t expire until June 30.

That means Public Act 4 couldbe off the table before Bing evergets the chance to use those pow-ers.

Gov. Rick Snyder has said thatunion agreements negotiated byBing’s team earlier this year don’thave enough cuts, and municipalfinance experts say altering unioncontracts is a necessary part of bal-ancing the city’s budget, givenunion leaders’ expressed lack of in-terest in returning to the negotiat-

Ballot driveruling on EMlaw key tocity’s actionAbility to imposecontracts in play

BY DUSTIN WALSH


Rising automotive sales andwages in low-cost countries meanone thing: increased manufactur-ing in Southeast Michigan. Tooland die makers and machineshops are busy again, but thatgrowth comes with a cost, and it’sspelled “Help Wanted.”

Manufacturers are scramblingto find skilled laborers in an in-dustry of advancing technologyfollowing years of massive jobcuts — from outsourcing early inthe millennium and the industry

collapse three years ago. As many as 600,000 skilled la-

borer positions remain unfilledfor U.S. manufacturers, accordingto a fall survey by Deloitte LLP andThe Manufacturing Institute. Thesurvey revealed that 67 percent ofrespondents had a moderate to se-vere shortage of skilled laborers.

New Hudson-based Richard Tooland Die Corp. needs as many as 20skilled laborers at its New Hud-son and Belleville plants, but it iscoming up short.

“Business is up, and we need tohire, but we just can’t find goodpeople,” said Steven Rowe, execu-

tive vice president and generalmanager.

Richard Tool and Die isn’talone. According to a Novembersurvey by Troy-based OriginalEquipment Supplies Association, 57percent of automotive suppliersare having difficulty findingskilled laborers. That’s up from 35percent in 2010.

Mark Tomlinson, executive di-rector of Dearborn-based Societyof Manufacturing Engineers, calledthe skilled labor shortage in theU.S. manufacturing sectors “on-

Companies struggle to filljobs for skilled laborersShortage expected to increase over 5 years

BY MIKE TURNER


LANSING — In the nearly 30 years since the casi-no industry began to form in Michigan, 25 gamingestablishments have cropped up throughout thestate.

Today, plans for nearly that same number of casi-nos are in some stage of development, prompting in-

dustry observers to ask: Why thesudden surge in casino proposals?

The latest development came lastweek, when the state Board of Can-vassers OK’d language for a petitiondrive that would allow eight morecommercial casinos statewide.

“I haven’t a clue why now,” saidJames Hill, a political science professor at CentralMichigan University who has studied the impact casi-nos have on communities.

“Maybe because Virg Bernero got everyonepumped up,” Hill quipped, referring to the Lansingmayor’s support for a casino to be run by the SaultSte. Marie Tribe of Chippewa Indians in downtownLansing. The proposal, also backed by the LansingCity Council, requires federal approval.

Matthew Fletcher, a professor at the MichiganState University College of Law and director of the In-digenous Law and Policy Center, said there’s substanceto Hill’s theory.

The push by the Sault and other Michigan tribesto open off-reservation casinos has likely drawn theinterest of private investors who sense an opportu-

Bing

Why is state the hot bet for more casinos?Private investor me-tooism, some say

DETAILS� Closerlook atcasino plans,Page 37

See Skilled, Page 35

See Casinos, Page 37 See City, Page 34

20120409-NEWS--0001-NAT-CCI-CD_-- 4/6/2012 5:48 PM Page 1

CRAIN’SDETROITBUSINESSCRAIN’S MICHIGAN BUSINESS

A special edition of

®

Finding bright spots in embattled solarindustry, 1

Making the Grand Rivermore rapid, Page 24

World Watch:Spotlight onMichigan bizin Germany, Page 25

Inside Michigan

NE

WS

PA

PE

R0

7148602858

1

www.crainsdetroit.com Vol. 28, No. 15 A P R I L 2 0 1 2 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved

$100K biz plan competitionfor female entrepreneurs

Women entrepreneurs cancompete for up to $100,000 incash awards and in-kind sup-port in the new Entrepre-neur-You Business Plan Com-petition, sponsored by theMichigan Women’s Foundation.

The competition is open toall industries and levels ofentrepreneurship. There arethree categories: profession-al/company, collegiate, andhigh school. Applicants candescribe a business they cur-rently run or pitch an ideathey think deserves startupfunding.

The deadline for the pro-fessional/company categoryis April 26, and the deadlinefor the high school and colle-giate categories is May 4.

The award money comesfrom Huntington Bank, andwinners will also get entre-preneurial coaching fromthe foundation.

The idea for the competi-tion came from the Entrepre-neur-You conference, a yearlysummit for businesswomenorganized by Walsh College,the Michigan Women’s Founda-tion, Inforum and HuntingtonBank. More information isavailable at miwf.org.

This Just In

BY NANCY KAFFER


Until the fate of a petition aimedat repealing the state’s emergencymanager law is decided, Detroit’slabor unions have no incentive tocome to the table to negotiate thesteeper labor contract cuts, includ-ing changes to union work rules,pensions and benefits, that offi-cials say are necessary to keep De-troit solvent.

If the petitionis certified forthe Novemberballot, PublicAct 4 — and thepower it grantsDetroit MayorDave Bing to im-pose contractson unions whosecontracts haveexpired — would be suspended.

That ability is a key provision ofthe consent agreement signed lastweek by the city and the state thatis intended to help the city avoidappointment of an emergencymanager or a Chapter 9 bankrupt-cy filing.

Opponents of Public Act 4 filed apetition in February to place a re-peal on the ballot in November. Or-ganizers of the petition drive gath-ered 225,885 signatures; 161,305 arerequired. The deadline for certifi-cation of signatures on the petitionis April 29. But most union con-tracts don’t expire until June 30.

That means Public Act 4 couldbe off the table before Bing evergets the chance to use those pow-ers.

Gov. Rick Snyder has said thatunion agreements negotiated byBing’s team earlier this year don’thave enough cuts, and municipalfinance experts say altering unioncontracts is a necessary part of bal-ancing the city’s budget, givenunion leaders’ expressed lack of in-terest in returning to the negotiat-

Ballot driveruling on EMlaw key tocity’s actionAbility to imposecontracts in play

BY DUSTIN WALSH


Rising automotive sales andwages in low-cost countries meanone thing: increased manufactur-ing in Southeast Michigan. Tooland die makers and machineshops are busy again, but thatgrowth comes with a cost, and it’sspelled “Help Wanted.”

Manufacturers are scramblingto find skilled laborers in an in-dustry of advancing technologyfollowing years of massive jobcuts — from outsourcing early inthe millennium and the industry

collapse three years ago. As many as 600,000 skilled la-

borer positions remain unfilledfor U.S. manufacturers, accordingto a fall survey by Deloitte LLP andThe Manufacturing Institute. Thesurvey revealed that 67 percent ofrespondents had a moderate to se-vere shortage of skilled laborers.

New Hudson-based Richard Tooland Die Corp. needs as many as 20skilled laborers at its New Hud-son and Belleville plants, but it iscoming up short.

“Business is up, and we need tohire, but we just can’t find goodpeople,” said Steven Rowe, execu-

tive vice president and generalmanager.

Richard Tool and Die isn’talone. According to a Novembersurvey by Troy-based OriginalEquipment Supplies Association, 57percent of automotive suppliersare having difficulty findingskilled laborers. That’s up from 35percent in 2010.

Mark Tomlinson, executive di-rector of Dearborn-based Societyof Manufacturing Engineers, calledthe skilled labor shortage in theU.S. manufacturing sectors “on-

Companies struggle to filljobs for skilled laborersShortage expected to increase over 5 years

BY MIKE TURNER


LANSING — In the nearly 30 years since the casi-no industry began to form in Michigan, 25 gamingestablishments have cropped up throughout thestate.

Today, plans for nearly that same number of casi-nos are in some stage of development, prompting in-

dustry observers to ask: Why thesudden surge in casino proposals?

The latest development came lastweek, when the state Board of Can-vassers OK’d language for a petitiondrive that would allow eight morecommercial casinos statewide.

“I haven’t a clue why now,” saidJames Hill, a political science professor at CentralMichigan University who has studied the impact casi-nos have on communities.

“Maybe because Virg Bernero got everyonepumped up,” Hill quipped, referring to the Lansingmayor’s support for a casino to be run by the SaultSte. Marie Tribe of Chippewa Indians in downtownLansing. The proposal, also backed by the LansingCity Council, requires federal approval.

Matthew Fletcher, a professor at the MichiganState University College of Law and director of the In-digenous Law and Policy Center, said there’s substanceto Hill’s theory.

The push by the Sault and other Michigan tribesto open off-reservation casinos has likely drawn theinterest of private investors who sense an opportu-

Bing

Why is state the hot bet for more casinos?Private investor me-tooism, some say

DETAILS� Closerlook atcasino plans,Page 37

See Skilled, Page 35

See Casinos, Page 37 See City, Page 34


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LEGAL CHALLENGES LEGAL RESULTS

April 9, 2012CRAIN’S DETROIT BUSINESSPage 2

Message to GR chamber: Getbiz on board to reduce deficit

The day of reckoning will beupon us soon if we don’t address thefederal budget deficit, and it’s up tobusiness leaders to push Congress.That was the dour instruction deliv-ered to West Michigan businessleaders last week by former U.S.Comptroller David Walker at anevent sponsored by the Grand RapidsArea Chamber of Commerce.

Among those offering support:Mike Jandernoa, a director on theboard of Allegan-based Perrigo Co.who also serves on Business Leadersfor Michigan. From a businessstandpoint, Jandernoa said, thefirst step in tackling the deficit isfor company leaders to educategroups inside and outside their or-ganizations. The sooner businessand government can address theseentitlement issues, he said, the lessdrastic the changes will need to be.

“If we get after that soon andelect politicians who understandthe problems and understand solu-tions, they’ll be less disruptive onthe small businesses, which are socritically important,” he said. “It’sa kind of fragile economy today. Tostabilize that, we need to eliminatethis uncertainty that’s overhang-ing the entire country. When wetake that away, it will enable com-panies to grow a lot of faster andwith a lot less risk.”

— From MiBiz

Hospital closes after sale falters After a proposed sale to Flint-

based McLaren Health Care Corp.was blocked April 2, CheboyganMemorial Hospital said it had no oth-er choice than to close the nextday. Cheboygan Memorial is thelargest employer in CheboyganCounty, with a staff of about 400.

On March 1, Cheboygan Memor-ial said it was filing for Chapter 11bankruptcy protection after losingmore than $7 million last year. Afederal judge had approved thesale to McLaren. But Cheboygansaid it couldn’t get federal ap-proval for its emergency servicesand outpatient surgery area tocontinue operating in time.

McLaren spokesman KevinTompkins told The AssociatedPress that the health system plansto work with area doctors to pre-serve health services in the region.

Dow cuts costs, 900 jobs globallyCiting the faltering economy in

Europe, Midland-based Dow Chemi-cal Co. last week cut 900 positionsand closed plants in Europe, NorthAmerica and Latin America, in amove to cut about $250 million.

Dow spokeswoman Rebecca Bent-ley said the positions to be eliminat-ed equal about 1.7 percent of Dow’s52,000 employees. Whether any jobswill be lost in Midland is yet to bedetermined, Bentley said. She told

The Associated Press that fewerthan 375 U.S. jobs would be cut.

MICH-CELLANEOUS� Mary Lee Flohe, former presi-

dent of the Society of St. Vincent DePaul chapter in Traverse City, wascharged with nine counts of felonyembezzlement from a nonprofit.Prosecutors say she embezzledfunds from 2007 through 2010.

� Baltimore-based Sinclair Broad-cast Group completed the purchaseof television stations WWMT inKalamazoo and WLAJ in Lansing aspart of an eight-station purchasefrom Irvine, Calif.-based FreedomCommunications Inc.

MICHIGAN BRIEFS

Traditionally, golf courses in Michigan don’t openuntil mid-April, or even as late as May for resortcourses up north. But this wasn’t a traditional March.

Numbers for last month won’t be available formonths, but Golf Datatech, a golf industry researchfirm based in Kissimmee, Fla., reports that roundsin Michigan are up 832.5 percent through February.

Consider this: Last year, the eight regulationMetropark courses of the Huron-Clinton MetropolitanAuthority in Southeast Michigan recorded zerorounds in March. Last month: 8,020 rounds.

“With the early spring arrival, buzz is definitelythe word” to describe the 2012 outlook,” said KateMoore, executive director of the Lansing-basedMichigan Golf Course Owners Association. “Many own-ers I’ve talked to, they have experienced the best

first quarter they’ve ever had.”Up north, Crystal Mountain Resort & Spa in Thomp-

sonville, south of Traverse City, opened nine holeson its Betsie Valley course March 16 — the earlieststart ever, said Director of Golf Brad Dean.

“A lot of properties came back from various golfshows with nice (booking) reports,” said PaulBeachnau, executive director of the Gaylord Area Con-vention and Visitors Bureau.

“I honestly think our state is feeling better as awhole. … All those types of things affect people’s out-look and buying power and ability to spend money andtravel. The Pure Michigan campaign has guaranteedfunding. That is starting to pay a reward. We are see-ing longer stays. It all seems to be rolling together.”

— Jason Deegan

Talk about March Madness: Golf season starts strong

CORRECTIONS� A Rumblings item on Page 26of the April 2 issue incorrectlylisted the Detroit Historical Muse-um and U.S. Trust, Bank of AmericaPrivate Wealth Management asamong the cash sponsors sup-porting the continued operationof the Detroit Shoppe at Cobo Cen-ter. While the U.S. Trust and themuseum were among the cashand in-kind sponsors, respective-ly, of the first Detroit Shoppe atthe Somerset Collection, QuickenLoans Inc. has provided addition-al sponsorship dollars of undis-closed amount to continue opera-tion of the Detroit Shoppe atCobo Center with Somerset Col-lection owner The Forbes Co. � A news brief on Page 18 in to-day’s edition should say South-field-based Park West Galleries Inc.has settled or dismissed morethan 25 court claims from buyersof artwork the dealer sellsaboard cruise ships. The dealerhad resolved 31 claims, but afterthat page went to the printer, anew ruling came from the Michi-gan Court of Appeals that couldpartly reinstate a few of them.

Find business news fromaround the state at crainsdetroit.com/crainsmichiganbusiness.

Sign up for Crain's MichiganBusiness e-newsletter at crainsdetroit.com/emailsignup.


April 9, 2012 CRAIN’S DETROIT BUSINESS Page 3

These companies have significant mention in thisweek’s Crain’s Detroit Business:1-800-Law-Firm . . . . . . . . . . . . . . . . . . . . . . . . . . 3421st Century Oncology of Michigan . . . . . . . . . . . . 27Arboretum Ventures . . . . . . . . . . . . . . . . . . . . . . . . 7Art Van Furniture . . . . . . . . . . . . . . . . . . . . . . . . . 16Atlas Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Auto Club Group . . . . . . . . . . . . . . . . . . . . . . . . . . 17Belfor Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 25BorgWarner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25CBRE Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Chrysler Group . . . . . . . . . . . . . . . . . . . . . 13, 25, 35Clark Hill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Colliers International . . . . . . . . . . . . . . . . . . . . . . . 3Con-way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Detroit Historical Museum . . . . . . . . . . . . . . . . . . . 3Dickinson Wright . . . . . . . . . . . . . . . . . . . . . . . . . 11Diplomat Specialty Pharmacy . . . . . . . . . . . . . . . . 15Dossin Great Lakes Museum . . . . . . . . . . . . . . . . . . 3Dow Chemical . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 25Dow Corning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25DTE Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Esperion Therapeutics . . . . . . . . . . . . . . . . . . . . . . 7Flagstar Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Ford Motor Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Forgotten Harvest . . . . . . . . . . . . . . . . . . . . . . . . . . 3General Motors . . . . . . . . . . . . . . . . . . . . . . . . . . 25Germack Pistachio . . . . . . . . . . . . . . . . . . . . . . . . 33Gleaners Community Food Bank of SE Michigan . . . 3Grand Rapids Whitewater . . . . . . . . . . . . . . . . . . . 24Grubb & Ellis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Hemlock Semiconductor Group . . . . . . . . . . . . . . . 21Henry Ford Community College . . . . . . . . . . . . . . . 35Henry Ford Health System . . . . . . . . . . . . . . . . 29, 30Honigman Miller Schwartz and Cohn . . . . . . . . . . . 11Huntington National Bank . . . . . . . . . . . . . . . . . . . . 6Kelly Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Lear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Macomb Community College . . . . . . . . . . . . . . . . . 35McLaren Macomb Hospital . . . . . . . . . . . . . . . . . . 29Michigan Healthcare Professionals . . . . . . . . . . . . 27Michigan Women’s Foundation . . . . . . . . . . . . . . . . 1Midland Solar Applications . . . . . . . . . . . . . . . . . . 21Millennium Medical Group . . . . . . . . . . . . . . . . . . 27Miller Canfield Paddock and Stone . . . . . . . . . . . . 11NTH Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . 24Oakland Medical Group . . . . . . . . . . . . . . . . . . . . 27Oakwood Healthcare . . . . . . . . . . . . . . . . . . . . . . 30Original Equipment Suppliers Association . . . . . . . . 1Panasonic Automotive Systems Co. of America . . . 35Park West Galleries . . . . . . . . . . . . . . . . . . . . . . . 18Penske Automotive Group . . . . . . . . . . . . . . . . . . . 25Perrigo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Pet Supplies Plus . . . . . . . . . . . . . . . . . . . . . . . . . 35Pioneer Automotive Technologies . . . . . . . . . . . . . 12Plante Moran Financial Advisors . . . . . . . . . . . . . . 28Plunkett Cooney . . . . . . . . . . . . . . . . . . . . . . . 18, 27Providence Hospital . . . . . . . . . . . . . . . . . . . . . . . 29Richard Tool and Die . . . . . . . . . . . . . . . . . . . . . . . . 1Rogers Mantese & Associates . . . . . . . . . . . . . . . . 27Soave Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . 14Society of Manufacturing Engineers . . . . . . . . . . . . 1Syntel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Talmer Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Taubman Centers . . . . . . . . . . . . . . . . . . . . . . . . . 12TriMas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Trubiquity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25TRW Automotive Holdings . . . . . . . . . . . . . . . . . . . 25Valassis Communications . . . . . . . . . . . . . . . . . . . 25

THIS WEEK @WWW.CRAINSDETROIT.COM

Company index

Department index

20 in their 20sSee the online section, withprofiles and photo galleries,at crainsdetroit.com/20s.

Crain's Job FrontJob seekers, employers and referrers all can benefitfrom Crain's Job Front, powered by hiredMYway.com, crainsdetroit.com/crainsjobfront.

Medical group forms without

hospital affiliation, Page 27

Health Care Extra

BANKRUPTCIES . . . . . . . . . . . . . . . . . 34

BUSINESS DIARY . . . . . . . . . . . . . . . . 26

CALENDAR . . . . . . . . . . . . . . . . . . . . 31

JOB FRONT . . . . . . . . . . . . . . . . . . . . 32

CLASSIFIED ADS . . . . . . . . . . . . . . . . 33

KEITH CRAIN . . . . . . . . . . . . . . . . . . . . 8

OPINION . . . . . . . . . . . . . . . . . . . . . . . 8

OTHER VOICES. . . . . . . . . . . . . . . . . 8, 9

PEOPLE . . . . . . . . . . . . . . . . . . . . . . 32

RUMBLINGS . . . . . . . . . . . . . . . . . . . 38

WEEK ON THE WEB . . . . . . . . . . . . . . 38

BY SHERRI WELCH


Forgotten Harvest and GleanersCommunity Food Bank of Southeast-ern Michigan are negotiating a newlocal service agreement to coordi-nate their food collection and dis-tribution efforts.

The triennial agreement — re-quired by theorganizations’national asso-ciation, Chica-go-based Feed-ing America,for membersserving thesame counties

— has taken on new importance asthe two pursue donations fromsome of the same sources in theirpush to collect and distribute asmuch food as possible.

The terms of the existing 2009agreement are unknown becausethe nonprofits wouldn’t provide it,but the new three-year agreementwill deal with such matters as howto deal with overlapping fooddonors, coordinate media out-reach and communication, and al-locate funds and food provided byFeeding America for their sharedservice area.

The agencies began preliminaryconversations on a new agreementin November. They plan to resumefollowing Feeding America’s na-tional conference, coming to theDetroit Marriott RenaissanceCenter from April 17-20, and theyhope to have a new agreement inhand by mid-May, said GleanersPresident DeWayne Wells.

NEXT COURSES� ForgottenHarvest starts jobtraining, mullswarehouse, Page 36

Sharingthe tableCharities hash outaccord to collect,distribute food

BY SHERRI WELCH


The Detroit Historical Societyplans to close the Detroit HistoricalMuseum in May and the DossinGreat Lakes Museum in Decemberto focus on millions of dollarsworth of new exhibit installations

and renova-tions.

Plans callfor the histori-cal museum toclose May 24and returnNov. 23, and

the Belle Isle museum to reopennext spring.

The overarching goal is to in-crease the relevance of the muse-ums and the accessibility of its

collections, said society Execu-tive Director Robert Bury.

“We are in two of the most primedestinations in the city: Midtownand Belle Isle,” he said. “We thinkwe can increasingly be a destina-tion and, by doing so, be part of therebirth and renewal of Detroit.”

Plans also call for digitizing themuseums’ collections to makethem available to a larger audi-ence online.

The ship plans and models atDossin are one of the largest col-lections in the Midwest, Burysaid.

“There’s a lot of interest tohave access to those,” he said.

Funding the work is a five-year, $21 million capital cam-paign launched by the society 2½years ago. The society has raisedabout $13 million, with a goal toraise the remainder by June 2014,Bury said.

Early gifts to the campaignhave included $800,000 from theDetroit-based McGregor Fund,

Giving history modern touchesMuseums will idle to upgrade, grow collections

BY DANIEL DUGGAN


Metro Detroit’s commercial realestate market finished one of thestrongest quarters in recent histo-ry and is starting to erase some ofthe recession-era damage.

Commercial real estate firmsare reporting growth for the mar-ket, after it lost more than 4.5 mil-lion square feet of occupied officespace since 2008 as companiesclosed and payrolls shrank.

Driving the growth is a combi-

nation smaller incubator compa-nies — such asmedical andtechnologyfirms — as wellas expansionsby the compa-nies that havesurvived the re-cession, saidRandall Book,executive vicepresident in theSouthfield office of Colliers Interna-

tional. “We lost a lot of companies in

the recession,” he said. “And theones that are left are now gettingall of the work that’s out there. Sofor those companies, they’re feel-ing confident that they can finallyexpand.”

A report by the Southfield officeof Grubb & Ellis shows 150,000square feet of positive absorption,reversing a trend of negative ab-sorption since 2008. Absorption isa metric to gauge real estate usage,

calculated by subtracting theamount of space vacated from theamount of space leased.

The Southfield office of CBREGroup Inc. shows positive absorp-tion of 390,000 square feet for thequarter, but it has shown positivenumbers throughout 2011. CBREonly tracks buildings over 20,000square feet, so its numbers differfrom Grubb & Ellis.

The positive moves are a drop inthe bucket, however.

From the beginning of 2008 tothe end of March, there has been atotal of 4.6 million square feet of

Real estate comes in from the ledge

GLENN TRIEST

Robert Bury, executive director of the Detroit Historical Society, says improvements to the society’s Detroit HistoricalMuseum in Midtown and Dossin Great Lakes Museum on Belle Isle can be part of the city’s rebirth.

Major work begins this year on theDetroit Historical Museum and DossinGreat Lakes Museum.

Recession’s pull on commercial market eases

See Real estate, Page 35

See Food, Page 36 See Museums, Page 36

Book

OLD BUSINESS� Exhibit callsfor area’s long-lived companies,Page 36


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BY BILL SHEA


The private consortium of De-troit investors trying to persuadethe federal government to aid it inbuilding a downtown streetcarline is confident Washington willapprove its plan.

So confident, in fact, that thegroup’s top executive won’t talkabout alternatives if the feds rejectthe plan to construct a 3.4-mile linebetween Hart Plaza and New Centeron Woodward Avenue for $125 mil-lion.

What happens if Washingtonsays “no”?

“I don’t expect that to be thecase, so there’s no sense speculat-ing on that,” said Matt Cullen,CEO of M1 Rail,a group of deep-pocket Detroitbusinessmen,nonprofits andothers who havebeen planningthe rail linesince 2007.

M1 will sub-mit its financialplans at the endof the month to the U.S. Departmentof Transportation, a process thatstems from skepticism about theproject’s feasibility from Washing-ton, Lansing and Detroit MayorDave Bing.

Bing and Gov. Rick Snyder joint-ly announced in December that thecity was dropping its $528 millionlight-rail plan in favor of a state-backed regional rapid-bus systemthat cost about the same but con-nects key points in the metro area.

That decision prompted an out-cry from M1 and its political pa-trons, including U.S. Sen. CarlLevin, and a hasty gathering of topelected officials and M1’s backersat Bing’s office Jan. 6.

It was announced that day thatM1 would be given 90 days to con-vince Washington of the merits ofits wish to build its portion of theline. M1 has to convince the U.S.Department of Transportation,along with the city and state, thatthe streetcar system can be builtfor $125 million and operated for $4million annually.

M1’s project was a standalone ef-fort until being absorbed by a De-troit Department of Transporta-tion project in 2009 that extendedthe route to Eight Mile Road.

Cullen said the group has beenspending the past three monthsvalidating M1’s original operatingand construction cost estimates.

“We intend to submit by the endof this month. We’re hopeful peo-ple see it the way we do it. It’s a ter-rific project, and we should bemoving forward,” he said.

At the same time, M1 is continu-ing to secure capital financial com-mitments.

“We feel very good about wherewe are in the process. We’ve madegood progress on the fundraising,”said Cullen, who declined to dis-close details.

M1 previously said it was about$22 million short of its fundingneeds, and is now about $11 mil-lion from reaching it, he said.

Ambiguous processIt’s never been clear what a

green light or rejection from thefederal government after 90 dayswould mean.

“It’s a little ambiguous. It’s not aformal process,” Cullen said.

The original 90-day deadline wasApril 6, but that was pushed backto later this month by Washingtonbecause of updates and ongoingconversations between it and M1.

“We’re talking to everybody dai-ly, literally,” he said. Washingtonissued a progress report on M1’splan in March, something that wasleaked and presented in media re-ports as renewed skepticism.

Cullen said the situation wasoverblown and that Washington isimpressed so far with what M1 hasshown it.

Messages seeking commentwere left with federal transporta-tion officials, who previously havedeclined to discuss details of theM1 situation.

Cullen also has said it’s more ofan informal process that wouldbolster M1’s separate applicationfor $25 million in capital fundingfrom Washington — money U.S.Transportation Secretary Ray La-Hood said in January that the pro-ject could be eligible for.

A decision on the grant is expect-ed by the end of May, Cullen said.

The application was filed on M1’sbehalf March 19 by the SoutheastMichigan Council of Governments, theregional planning agency that actsas the legally required pass-through for federal transit funding.

A previous $25 million federalgrant for the city’s rail project hassince been transferred to the re-gional bus project.

M1’s request is one of 703 appli-cations totaling $10.2 billion for apiece of the $500 million set asidefor the Transportation InvestmentGenerating Economic Recoverygrants programs, the Transporta-tion Department said in a state-ment Thursday.

Washington has awarded $2.6 billion for 172 projects underthree previous rounds of the

TIGER grant program.M1 needs the city and state to

sign off on the project becauseWoodward Avenue is a state high-way — hence the name M1 — thatruns through downtown Detroit.The group also wants the state toupgrade Woodward’s surface con-currently with the rail construc-tion, Cullen said.

Price tagOn the capital cost side, M1

backers are asked to pay $3 millionfor the marketing rights to a sta-tion stop on the line.

“The station sponsorship ismore meaningful to some folksthan other folks,” Cullen said.

Already giving money is M1’sleadership, made up of wealthy, in-fluential Detroit advocates withdowntown business commitments:Penske Corp. founder Roger Penske,chairman of the project; Peter Kar-manos Jr., founder of Detroit-basedCompuware Corp.; the Ilitch family,owners of the Detroit Tigers, RedWings and Little Caesar EnterprisesInc.; and Quicken Loans Inc./Rock Fi-nancial founder Dan Gilbert, theproject’s co-chairman.

The four have committed $3 mil-lion each for the display advertis-ing rights to a station along theroute. Henry Ford Hospital andWayne State University also haveeach committed money for a sta-tion. The Troy-based Kresge Foun-dation has pledged $35 million, partof which already has been spent.

The city’s Downtown DevelopmentAuthority has earmarked $9 millionfor M1, and another $15 million isfrom federal New Market TaxCredits, which have to be re-ap-plied for annually.

Annual operating costs are esti-mated at $4 million. Some of thatmoney will come from fares, ad-vertising sold on the train cars, asale of name of the entire line, andfrom state legislation authorizingformation of a nonprofit streetrailway company to run the line.

Bill Shea: (313) 446-1626,[email protected]. Twitter:@bill_shea19

M1 Rail confident of getting federal OK,continues to line up financial backers

M1 Rail’s planned streetcarline will run primarily along theside lanes of Woodward Avenue,with some stretches in the centerof the street because of the physi-cal geography of the route, saidproject CEO Matt Cullen.

The city’s plan for its light-railproject, which was scrapped in De-cember, had been almost entirelya median-running system, andthere have been years of debate onwhich is the better alignment.

“With the kind of system we’relooking to build, we’ve been as-sured that’s the proper way togo,” Cullen said.

The city’s plan had been to loopthe southern terminus of theroute over a couple of blocks toinclude the Rosa Parks bus sta-tion. M1’s plan is a pure north-south system in which the street-car driver gets up and goes to the

other end of the car — both endsof the vehicles will have controls— when it reaches the end of thetracks.

“These will be more modernstreetcars,” Cullen said, and theywill be smaller than traditionallight-rail cars and carry a typicalload of 60 to 70 people. Maximumcapacity, sitting and standing,would be about 180.

Such vehicles can cost a coupleof million dollars.

The plan is to piggyback an or-der of six streetcars onto anotherproduction order from anothermunicipality, Cullen said. That’sa common industry practice be-cause a new order could other-wise take up to several years toarrive, since the pace of construc-tion among the world’s few railcar builders is slow.

— Bill Shea

Route primarily streetside

Cullen


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uary 2011.The acquisition made the 180

employees at the long-strugglingFidelity temporary employees ofBoston-based SourceRight Solutions,a company the FDIC uses in shut-down situations.

Fezzey said employees were toldat a meeting at the Dearborn Inn onMarch 31 that they will be eligibleto apply for permanent jobs atHuntington at a time to be deter-mined.

Fezzey also said that some of the15 branches might be closed afterHuntington does a market studyevaluating overlap with currentHuntington branches, but that allwould remain open for the time be-ing.

“Fidelity’s branch distributionmatches well for us,” Fezzey said.“We’re in the process of discovery,and we’ll make decisions aboutlayoffs or closings down the road.It’s too early. Now, the focus is onthe customer and making surethey know everything is businessas usual.”

In a press release issued March30, Huntington, which has about$54 billion in assets in Ohio, Michi-gan, Pennsylvania, Indiana, WestVirginia and Kentucky, said theacquisition was expected to addabout 2 percent to earnings pershare for 2012, would add less than1 percent to tangible book valueand would be “very modestly dilu-tive” to capital ratios.

Dennis Koons, president andCEO of the Lansing-based MichiganBankers Association, said that a de-cision by a bank already operatingin Michigan to expand here is goodnews for the state’s banking com-munity.

“The fact they wanted to come inand add to their footprint, whenthey already had a very strongpresence, is great news,” he said.

“We’re happy the winner was avery good Midwestern regionalbank, which means Fidelity cus-tomers will be well served,” saidDavid Provost, president and CEOof Troy-based Talmer Bank, whichalso bid on Fidelity and was con-sidered the front-runner by manyin the local banking community.

Provost said Talmer will contin-ue to try to grow, both throughFDIC-assisted sales and throughacquisitions of willing sellers.

As of last June 30, the most re-cent period on the FDIC website,Huntington was eighth in marketshare in the five-county region ofSoutheast Michigan, with its $3.9billion in deposits good for a mar-ket share of 4.17 percent. FifthThird was seventh with $4.2 billionand a share of 4.46 percent, withCharter One sixth at $4.5 billionand 4.79 percent.

Fidelity’s deposits put Hunting-ton at about $4.7 billion in assets.

Chase is No. 1 with $20.8 billionand market share of 22.24 percent.

The acquisition gives Hunting-ton 65 branches in SoutheastMichigan compared to 73 for FifthThird and 101 for Charter One.

Statewide, Huntington remainsin sixth place in deposits, its $7.9billion in assets well behind the$13.1 billion for No. 5 Fifth Third.Chase is No. 1 at $25.6 billion.

Tom Henderson: (313) 446-0337,[email protected]. Twitter:@tomhenderson2

BY TOM HENDERSON


Stephen Steinour, chairman,president and CEO of Columbus,Ohio-based Huntington NationalBank, told The Economic Club of De-troit on Jan. 31 that Michigan wasleading the U.S. out of the reces-sion and that the state and theMidwest were good places to growa business.

The region, he said, was nolonger the Rust Belt, it was the Re-covery Belt.

“The Midwest is back,” Steinoursaid. “It is more economicallyresurgent than the rest of the

country. … Companies are movinginto the Midwest, and while largeparts of the restof the country’seconomy arestill slumbering,the Midwesteconomy isdemonstratinghealthygrowth.”

Steinourshowed he was-n’t just speakingin platitudes when his bank’sholding company, Huntington Banc-shares Inc. (Nasdaq: HBAN), alsodemonstrated growth, buying the

assets of the troubled DearbornBancorp Inc. The deal was an-nounced March 30 after the hold-ing company for Fidelity Bank wasshut down by state and federalregulators.

The final sale price will be deter-mined after a review of the loanportfolios.

Huntington acquired Fidelity’s15 branches in Wayne, Oakland,Macomb and Washtenaw countiesand its $818.2 million in assets and$746.6 million in deposits. The ad-ditional deposits leapfrog Hunting-ton past Fifth Third Bank and CharterOne Bank into sixth place in the re-gion for deposit market share, ac-

cording to the Federal Deposit Insur-ance Corp.

“This is another demonstrationof the exciting opportunities for usin Michigan,” said Mike Fezzey,president of Huntington’s easternMichigan region.

“When you combine this withthe $2 billion in small-businesslending we announced last yearand the $100 million in affordablehousing lending in we announcedin March, it’s wonderful to be partof a company so bullish aboutMichigan.”

Fezzey, who was longtime presi-dent and general manager of WJR-AM 760, joined Huntington in Jan-

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“These are promising resultswith clinically meaningful im-provements in (lowering) LDL …and with good tolerability and safe-ty,” he said.

“These results provide the ratio-nale for larger and longer studies tolearn more about the safety limitsof this drug, and to look at whetherthis drug augments traditionalstatin treatments.”

As for those longer studies,Newton said the series B roundwill fund phase-two trials of ETC-1002 on symptoms other than ele-vated LDL levels that are also asso-ciated with a condition known asmetabolic syndrome, including

high blood insulin levels, inflam-mation, atherosclerosis (harden-ing of the arteries), obesity, fattyliver and high blood pressure.

Currently, many of those withmetabolic syndrome are on three,four or five drugs to treat its symp-toms, with a wide range of side ef-fects.

It is hoped that one drug thattreats many or all of the symptomswill lower costs, reduce side effectsand offer Esperion a huge market.

Newton said a phase-two trialwill begin later this year or earlyin 2013 on diabetic subjects andwill last 12-18 months.

He said another phase-two trial,

of nine to 12 months, will begin nextyear to see how ETC-1002 works incombination with statins for pa-tients who are already on statinsbut aren’t getting the desired effect.

Statins are a class of drugs thatinhibit an enzyme that plays a cen-tral role in the production of cho-lesterol in the liver. Statins haverare but severe side effects, partic-ularly muscle damage.

The best-selling statin, and thehighest revenue producing drug inhistory, is Lipitor.

In 1997, Newton was head of theatherosclerosis team at Warner-Lambert/Parke-Davis that broughtLipitor to market. Warner-Lam-

bert was later bought by Pfizer Inc.In 1998, Newton founded Esperi-

on Therapeutics Inc. to develop adrug to raise the so-called goodcholesterol known as HDL.

Esperion raised more than $200million in equity capital, wentpublic in 2000 and then was boughtby Pfizer in 2004 for $1.3 billion.

In May 2008, Newton announcedhe had raised nearly $23 million inventure capital to buy back Esperi-on from Pfizer, along with a patentportfolio protecting two com-pounds in development.

Tom Henderson: (313) 446-0337,[email protected]. Twitter:@tomhenderson2

BY TOM HENDERSON


Buoyed by results in human tri-als of a compound called ETC-1002,which lowers the level of the un-healthy form of cholesterol knownas LDL, Roger Newton is raising a

Series B roundof venture capi-tal of at least $25million for hisPlymouthTownship-basedEsperion Thera-peutics Inc.

Results of the12-week phase-two U.S. Food andDrug Administra-

tion trial of 177 patients with highcholesterol were presented March25 at the 2012 American College of Car-diology meeting in Chicago.

Since then, Newton — the compa-ny’s founder, president and CEO —has been traveling to the East andWest coasts to meet with prospec-tive investors in the B round.

“We had very good results.There’s a lot of interest. (Venturecapitalists) are really excitedabout our data,” Newton said.

He said the B round will fundphase-two trials for other uses ofthe compound.

More funding will be needed inabout two and a half years for thelarger phase-three trials, the laststep before getting approval to be-gin marketing the drug.

“When we finish our phase-twotrials, we’ll decide whether to seeka partner,” he said, referring to oneof the larger pharmaceutical com-panies that might want to license itor take an equity stake in Esperion.

“A lot depends on the economy.If the economic climate is good, wecould even do an IPO,” he said.

Newton said he has commit-ments from previous venture capi-tal investors to put up half themoney for the B round. Thosefirms are Ann Arbor-based Arbore-tum Ventures LLC, New York-basedAisling Capital, San Francisco-basedAlta Partners, New Jersey-based Do-main Associates LLC and Asset Man-agement Co. of Palo Alto, Calif.

He said he is in serious discus-sions with would-be new investorsand expects to close the round inJune.

“The current investors are all go-ing to participate in the B round,and we hope to bring two other largenew investors on board,” said JanGarfinkle, managing director atArboretum.

Also presented at the College ofCardiology meeting were results ofa small safety study of how wellhealthy volunteers at the JasperClinic in Kalamazoo tolerated larg-er doses ETC-1002.

Subjects tolerated higher doseswell and also showed sharp de-creases in LDL in just two weeks,with larger doses resulting in larg-er decreases, another selling pointto would-be investors.

One of the physicians involvedin the 177-patient trial wasChristie Ballantyne, director ofthe Center for Cardiovascular DiseasePrevention at the Methodist DeBakeyHeart & Vascular Center in Houstonand director of the AtherosclerosisClinical Research Laboratory at BaylorCollege of Medicine.

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Esperion seeks funds for more trials of LDL-fighting drug

Newton



Re: Consent agreement Does this mean the vendors and

contractors are going to get paidtheir contracted amounts, or willthey be asked to renegotiate after thejob is done?

Androcles II

Through collaboration, all partieswin.

Remus

Detroit has billions of dollars ofreadily marketable assets in its artcollection over at the DIA, but De-troit and Michigan leaders don’tpublicly discuss how those fit intoDetroit’s financial recovery.

That’s a shame, since those as-sets could fund an arts endowmentgenerating tens of millions of dollars ayear, perhaps even hundreds ofmillions, without having the artleave the DIA.

Since innovations in art finance

could transform Detroit’s finan-cial situation, its financial dis-tress and defaults on bondcovenants are a choice, not a con-dition.

Mark White

Re: Restaurant group changes I sincerely hope this does not af-

fect the numerous employees at all ofMatt Prentice’s establishments.They are without doubt a finegroup of people and deserve everykind of success.

Freedom Trinity

Re: Huntington acquires Fidelity BankEverything will be as normal ...

except for the way that Huntington

Bank has treated the Fidelity Bankemployees. Transferred them to atemp agency like they were cattle.They had no intention of ever hiringanyone from Fidelity.

Watch out, former Fidelity Bankcustomers. Very shortly, you willsee all new faces inside your oldbranches.

Bullwinkle

Re: RoboCop statue in DetroitA RoboCop statue? How about

helping the poor and needy? Peo-ples’ priorities are really screwed up.

Pook

Re: Twitter to open Detroit officeIt’s great to see what Gilbert and

the private sector are doing. Now ifonly the city government can right theship and move forward instead of

It’s unconscionable forDetroit — a city plaguedby violent crime — not tohave every law enforce-ment tool available at itsdisposal to help bring per-petrators to justice andprovide closure to thoseaffected.

Yet for nearly fouryears, the city of Detroithas been without one ofthe most indispensible tools usedin law enforcement: a functioningcrime lab to test blood, hair, gunresidue and other trace material.

Since 2008, when an indepen-dent analysis found abnormalitieswith ballistic firearm tests per-formed by then Detroit Police De-partment Crime Lab, the city’sability to conduct standard testson evidence seized from crimescenes has effectively remainedunchanged. It still is at the mercyof specially trained MichiganState Police forensic technicians

who in addition to per-forming virtually allforensic testing for De-troit at crime labs outsideof the city are also severe-ly backlogged due to non-stop casework from De-troit.

Amazingly, hardly aword is ever spoken aboutDetroit’s failure to have itsown operational crime lab.

In fact, aside from occasional lo-cal television news reports, suchas a recent revelation that roughly1,000 rape kits were found stillawaiting testing, seldom is thereany mention at all about the city’sinability to perform timely and ac-curate forensic testing.

Fortunately, there’s a viablepath forward. Mayor Dave Bingand members of the City Councilshould aggressively collaborate ona strategy to incentivize — possi-bly with an offer of a multiyearcity tax exemption and ready-to-

use city-owned property — one ofthe nation’s 28 accredited privatecrime labs to establish operationsin the city. Given where Detroit isnow with its embarrassing inabili-ty to process crime scene informa-tion, privatizing this essential ser-vice for the city makes perfectsense.

This is made even more truewhen considering that Detroit al-ready uses private crime labs out-side of Michigan to conduct rou-tine tests spanning the forensicspectrum whenever high profileprosecutorial decisions simplycannot wait.

It should go without saying thatthose who live and do business inDetroit shouldn’t be made to waitunnecessarily on forensic testing,either; certainly not when thereare proven private entities thatcan compensate for the city’s defi-ciency.

John Sitkiewicz is a freelancebusiness writer.

Follow bold start with ‘win’f Detroiters are looking for their own “profile in courage”awards, we nominate the five Detroit City Council mem-bers who endorsed what amounts to a consent agreement

with the state: Gary Brown, Ken Cockrel Jr., Saunteel Jenkins,Charles Pugh and James Tate.

Now the hard work begins. And though many tough deci-sions lie ahead, it’s critical for Detroiters to start to feel a posi-tive difference — to experience a “win” from this new arrange-ment — as quickly as possible.

Whether that takes the form of increased state police pres-ence, or help in demolishing more derelict structures, or a planto reduce auto insurance costs for Detroit residents, city resi-dents need to experience how this new arrangement is a stepforward, not a step back.

We have enough casinos nowTwenty-five casinos are enough.As Mike Turner reports on Page 1, American Indian tribes

and private investors are pushing to open additional gamblingspots in the state, including sites in Detroit and Romulus.

Whether the Indian off-reservation casinos are approvedlies with the federal government. However, Citizens for MoreMichigan Jobs, a group lobbying for eight specific casino sitesacross the state, needs to collect 322,609 signatures by July 9 toappear on the November ballot. And even if state voters ap-prove, residents of the municipality of an intended site wouldhave to approve, too.

Detroit’s casinos brought construction and hospitality jobsto the city. But three are plenty. Which we believe voters willdecide for themselves, if this plan ever makes it to the ballot.

Lawmakers, leave U policy aloneIf you don’t like the weather, it’s been said about Michigan,

wait 15 minutes; it’s bound to change.That philosophy may be extending to politics, too. If you

don’t like the outcome of a voter referendum, switch tacticsand use legislation and appropriations bills to twist the out-come to fit your political view.

That seems to be how some Republican lawmakers are us-ing the appropriations process to punish the University ofMichigan, home of the state’s only laboratory producing em-bryonic stem cell lines.

Since November 2008, when 53 percent of Michigan voters en-dorsed loosening a ban on embryonic stem cell research, oppo-nents in the Legislature have tried to curb the research anyway.

Committees in the Legislature have tried to strip “perfor-mance funding” aid from UM and Michigan State University—to the tune of $40 million. Lawmakers are miffed at UM’s re-porting on its stem cell projects; MSU is on their naughty listfor requiring freshmen to have health insurance.

In both cases, lawmakers in both chambers should dismissthese attempts to engineer policy at these universities.

Privatize crime lab functions

Last week, there were a lot morepeople who knew that Thursdaywas Opening Day for the DetroitTigers than folks who knew some-thing was supposed to happen withthe city and the state.

There is nothing quite like theopening day of the baseball season— especially when your teamwins, as the Tigers did. I know peo-ple who would do just about any-thing from anywhere just to be atthe Tigers’ opening game.

And like all seasons recently, wehave very high hopes for an excit-ing season. With a Prince in the

lineup, it is going to bevery exciting. I wonderhow many fans remem-ber Cecil Fielder andthe excitement he creat-ed.

And while baseball isjust beginning, the Na-tional Hockey League isabout to start its secondseason: the Stanley Cupplayoffs. The Red Wingshave spoiled us. Eachyear, for quite a while, they are thestars and contenders for the Stan-ley Cup. Let’s all hope these hock-

ey playoffs last well intothe year. For the RedWings to win the Stan-ley Cup, it’s going tomean a lot more games,depending on how longit takes each opponentto lose.

And of course, we allhave great hopes for thePistons with their newownership. It is way tooearly to tell, and there

are still a lot of us who have fondmemories of the “Bad Boys” andtheir championships way back in

the ’90s.There are a lot of challenges fac-

ing our city in the next fewmonths or even years before weget all the financial problemsironed out.

But even though things mayseem bleak from time to time, weall know that we have plenty tocheer about when it comes to De-troit and its sports teams.

It’s too early to cheer for the Li-ons or our college teams, but wewill in the fall. Meanwhile, wehave plenty to cheer for with hock-ey and baseball.

No one knows what’s going to happen with this financial mess,but we do know that we’re going to have some winners on the play-ing field. And when things get a little dicey in politics, we all can root for our favorite sportsteams.

Detroit is very lucky to have somany professional sports teamsand some really great college ath-letic programs as well. It’s verynice to know we can always rootfor a winner, particularly whenit’s not on the political playingfield.

Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do notdefame individuals or organizations. Letters may be edited for length and clarity. Email [email protected]

Thank goodness for our athletic teams

I

From www.crainsdetroit.comReader responses to stories andblogs that appeared on Crain’swebsite. Comments may beedited for length and clarity.

See Talk,

OPINION

KEITH CRAIN:

TALK ON THE WEB

OTHER VOICES

John Sitkiewicz



living in Detroit. It’s not just the lifestyle,

or the sports teams,though the recent perfor-mances of the Lions andTigers would make mostChicago fans envious. It’sthe revitalization of thecity, and the spirit of thepeople I work with — in-cluding many of my cus-tomers.

As a big fan of Daniel Burnham,who designed the Dime, Whitneyand Ford buildings here, I agreewith his advice to “Make no littleplans.” And so do most Detroiters Imeet.

I’ve never seen a livelier set ofentrepreneurs than those in De-troit. They are actively looking togrow their businesses, and seekingto build new opportunities fortheir families, their employees andtheir employees’ families.

They’re as experienced, sea-soned and tough as Clint Eastwoodin that Super Bowl ad. They sensereal opportunities ahead.

They’re investing in industriesfrom health care to education tobuilding products, which meansthat the Detroit of the future won’tbe dependent on any one industry.

People talk about entrepre-neurism as a way to jump-start the

Detroit economy. But these busi-ness leaders’ track records givethat talk a whole new underpin-ning of reality.

We are poised for the rebirth ofsignificant economic opportuni-ties. And the first step to that re-emergence is belief. These busi-ness leaders have it, along with aninspiring ability to motivate.

It has been challenging for me,at least at first, to root against myold teams. But it isn’t hard to loveliving in Michigan.

The strongest reason for its ap-peal is that the Detroit civic com-munity, and the business leadersI’ve spoken of, are all focused on a

unique opportunity to create De-troit 2.0. I’m confident they willsucceed. And I’m glad to have theopportunity to participate in itfirsthand.

So the next time someone asksme if I’m sure I’m headed in theright direction, my answer isclear. To quote another well-known ad campaign, I’ve said “Yesto Michigan.” And I think thistransplanted Chicagoan’s goodfeelings say a lot about the strong,resolute and savvy spirit of De-troit.

Kip Kirkpatrick is CEO of Birm-ingham-based Shore Financial Ser-vices Inc.

When my family and Imoved to the Detroit areafrom Chicago, I oftenheard, “You must havegotten this backward,”implying that anyone inhis right mind would bemoving the other way.

When I moved to Illi-nois for college, aftergrowing up in Kentucky, Ithought Chicago and itssuburbs were the best places in theworld — except for the weather.

After 20 years there, I had theopportunity to become the CEO ofa growing, Birmingham-basedcompany. We came here, knowinglittle to nothing about Michigan orDetroit.

Almost a year later, we agreethat the Detroit area containsmany communities that are as niceas anywhere we have ever been —and that it’s an exciting time to be

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Chicago’s nice, but this is the place to be

TALK CONTINUED■ From Page 8

being a hindrance to Detroit’s re-vival.

BrandonP

Re: Corporate income tax increase That tax will surely have

C corps lined up to open in the city.John Williamson

Re: Pontiac’s suit against Blue Cross dismissed

This is textbook antitrust. Theproof of limiting competition isBlue Cross Blue Shield’s monopolyin Michigan and the rise of healthcare in Michigan.

“Most favored nation” is used byBCBS all over the U.S. to limitcompetition. This needs to be ap-pealed.

Fee Transparency

Re: Law protecting real estate investors’ assets

What good are contracts if theycan be retroactively altered? Asthe appeals judge said: Read thecontract before you sign it.

Jim Reb

Re: Calley makes no promise to replace biz property tax revenue

“What we’re trying to do ismake it so the economy is notbad,” he said. “If we succeed inmaking it so the economy is notbad, the risk of there not beingenough resources to appropriate issubstantially less.”

We want the economy to be “notbad.” Now there is a lofty goal.

Dorothy

Re: Backers of 8 proposed casinosbegin drive to get on Nov. ballot

The largest casino in America,Foxwoods in Connecticut, filedfor bankruptcy, not three weeksago. What does Foxwoods knowfor certain that these potentialowners and operators do not? It’scalled reality, friends.

Freedom Trinity

OTHER VOICES:

Kip Kirkpatrick

20120409-NEWS--0009-NAT-CCI-CD_-- 4/6/2012 10:17 AM Page 1

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No-fault revamp bill stalls in House;medical fee schedule a sticking point

BY MIKE TURNER

SPECIAL TO CRAIN’S DETROIT BUSINESS

LANSING — Six monthsafter hearings on a bill thatwould change the state’s no-fault auto insurance systemdrew overflow crowds toHouse committee rooms, theproposal has quietly stalledon the House floor — to thedelight of opponents.

“I’m telling you today —the bill as it currently stands,they’re not going to get it out of theHouse,” said Kevin McKinney, alobbyist for the Committee Protect-ing Auto No Fault, at a recent gather-ing of the group in Lansing. CPANmembers include various medicaland consumer groups.

McKinney calculated that, as oflate March, 20 of the 63 House Re-publicans would vote “no” on thebill, and all 47 Democrats were op-posed, leaving the measure shortof the 56 votes needed for passage.

“I think we are sitting fine as oftoday,” McKinney said.

But bill sponsor Pete Lund, R-Shelby Township, maintains therevamp effort is far from dead.

“I still feel we’re going to getsomething to move by the end ofthe session,” he said.

Lund said negotiations to craft abill that would gain House ap-

proval are ongoing, although hedeclined to provide specifics aboutthe nature of the talks or say who’sinvolved.

“What we’re going to do is get abill acceptable to people, and we’lltalk on it,” he said.

As written, Lund’s bill — votedout of the House Insurance Com-mittee on Oct. 14 — would let poli-cyholders choose among auto in-surance coverage of $500,000, $1million or $5 million. Michigan iscurrently the only state that man-dates unlimited lifetime coveragefor medical expenses resultingfrom auto accidents.

The bill would also establish amedical fee schedule for hospitals,doctors and others submittingauto insurance claims, similar to

how reimbursements are made inthe workers’ compensation sys-tem.

CPAN spokesman John Truscottsaid the group is willing to discussways to contain costs, but it oppos-es a government-imposed feeschedule.

Pete Kuhnmuench, executive di-rector of the Insurance Institute ofMichigan, the key proponent of ano-fault overhaul, agreed the billin its original form is unlikely togain approval.

He said his group, which con-tends change is needed to controlspiraling medical costs, has beentalking to individual legislatorsabout the issue. “We’ve had posi-tive conversations on both sides ofthe aisle, and negative ones,” hesaid.

Kuhnmuench said there alsohave been discussions among leg-islators, insurers, Gov. Rick Sny-der’s office and the hospital indus-try. The proposed fee schedule isthe main point of disagreement, hesaid.

“I think we’re having some veryconstructive debates,” he said.“I’m actually encouraged, eventhough the bill has not gone any-where.

“I still think there’s opportunityto find that middle ground.”

I still feel we’regoing to get

something tomove by theend of thesession.

Pete Lund, R-Shelby Township”

“


In-house gain islaw firms’ loss

Efforts by general counsel attorneysand their departments to managecorporate legal costs appear to be tiedto a year of widespread attrition inDetroit law firms that serve as outsidecounsel to many of those companies.

Legal needs increased among 80percent of larger companies, whospent 6 percent more on their in-houselegal departments, compared with 1percent the year before and severalyears of spending declines beforethat, according to the 2011 LawDepartment Survey of Houston legalconsulting and professional servicesfirm Hildebrandt Baker Robbins.

At the same time, Michigan’s 25largest law firms saw a net decline ofmore than 156 attorneys, or 4.5 percentof total headcount in 2011 (See Crain’slist, Page 19). Some 16 firms — 64percent — shed lawyers in 2011.

That tracks with the 60 percent ofcompanies that spent less on outsidecounsel in the Hildebrandt survey. ButDetroit firms did more bleeding thantheir counterparts in western Michigan,and several top partners see a few localissues that exacerbated the situation.

“Two years ago, if an auto supplierwas under an enormous financialstrain, one of the things they did waslet go of general counsel staff andoutsource work to (law firms),” saidJohn Hern, CEO of Detroit-based ClarkHill PLC. “Today, the trend is (that)auto is recovering, confidence isreturning and those companies arehiring back and looking to take morework in-house.”

The automotive recovery has had atwo-pronged effect, since it dried upmuch of the demand for bankruptcyattorneys at full-service firms andspurred more hiring among in-houselaw departments, attorneys aid.

Clark Hill saw a modest gain inattorneys, while Dykema Gossett PLLCand Miller Canfield Paddock and StonePLC saw the most erosion in 2011with the loss of 43 and 39 attorneys,respectively. Dickinson Wright PLLCand Honigman Miller Schwartz andCohn LLP decreased by nearly a dozenattorneys each in the same period.

Miller Canfield CEO MichaelHartmann said in-house staff growthwas one of many things that sappedlawyers from Michigan’s largest firm.Other losses followed moves out ofstate, retirements and a fewperformance-based job cuts, but nolayoffs.

“We lost very few people tocompetitors,” he said. “But I’m notsaying this (shrinkage) is unrelated tomarket demand. It’s still a very viable,stable legal market in Detroit. But Iwouldn’t say it’s a robust, growingmarket for anyone right now.”

Other law firm principals noted thatsome attorneys with practices instrong local demand, such asantitrust law, municipal law and publiccorruption, banking or mergers andacquisitions have felt the urge to starttheir own boutique firms or find otherlaw firms that offer bettercompensation.


general and in-house counsel awards

REPORTER’S NOTEBOOK

Building up the home teamCompanies focus on legal departments, not outside firms

Publicly traded companies, revenue over $1 billion

BRUCE PETERSONSenior vice president and generalcounsel, DTE Energy Co., DetroitClaim to fame: Reduced the share oflegal work done by outside counsel from75 percent in 2001 to 30 percent in2011, and won dismissal of a lawsuit bythe U.S. Environmental Protection Agencyover emission controls at Michigan’slargest coal-fired power plant.

hen Bruce Peterson becamesenior vice president andgeneral counsel at DTE Ener-

gy Co. a decade ago, he didn’t justchange jobs — he changed the way

he thought about legalservices.

The new approachpaid off in part last Au-

gust, when DTE attorneys obtainedsummary judgment in a lawsuit bythe U.S. Environmental ProtectionAgency, with The Sierra Club and Natur-al Resources Defense Council joiningas plaintiffs.

U.S. District Judge Bernard Fried-man found it is too early to know ifDTE’s 2010 renovations to the secondunit of the Monroe power plant con-stitute a “major modification” thatincreased pollution and requirednew emission controls under the fed-eral Clean Water Act. The judgmentis under appeal.

“Law firms tend to have an ap-proach that is a little bit reactive,”Peterson said. “Lawyers do work,solve problems, do transactions,handle cases … and they do (all that)in a certain way, and they don’t nec-essarily say, ‘How important is thisto the company?’ ”

Most businesses, Peterson said,question the value of the work andhow it relates to the company’sstrategic mission. And that kind ofevaluation can’t be done by outsidecounsel.

So Peterson built a team thatcould help take more legal work in-house. In 2001, 75 percent of DTE’s le-gal work was done by outside firms.Now, 70 percent of the company’swork is done in-house.

Evaluating work means the offi-cer’s resources are used in areasmost critical to the company’s suc-cess.

The ability to take part in craftinga big-picture strategy is part of whatdrew Peterson, 55, from a job as apartner in a Washington, D.C.-basedlaw firm to in-house work.

“I had a skill, a very valuable skill,but a very narrow skill,” he said. “I

did transactions. I was brought intotransactions at a certain point, I exe-cuted transactions, but I never had achance to be involved with strategicdecisions of the businesses I was fi-nancing.”

One priority for Peterson was im-proving the depth and quality ofDTE’s in-house team. Bringing workinside has enabled him to cut costsby 50 percent over the past 10 years— in part because of a shrinking re-source pool — which wouldn’t havebeen possible without developing asolid in-house team.

“Thirty years ago, none of mypeers at the top of a graduating classwent to become an in-house counsel.None,” he said. “Top-talent lawyersare really excited about working in acorporate setting now, where theycan be invested in strategic issues.”

— Nancy Kaffer

AWARDS JUDGESRob Kurnick Jr.,president, PenskeCorp.

Bernard Lourim,corporate counsel,Fanuc RoboticsAmerica Corp.;president,Association ofCorporate CounselMichigan chapter

Lisa DeMoss,director, graduateinsurance program,Thomas M. CooleyLaw School (formerBlue Cross BlueShield of Michigangeneral counsel)

Leonard Niehoff,professor frompractice, Universityof Michigan LawSchool; highereducation practicegroup chairman,Honigman MillerSchwartz and CohnLLP, Ann Arbor office

he nucleus of the business lawcommunity is rebuilding mass,as general counsel and in-

house legal teams grow to tackle newlegal challenges for many of South-east Michigan’s largest companies.

Corporate and in-house counselattorneys protect the assets of com-panies and nonprofits and overseethe legal budgets for both their owndepartments and outside law firms.This year, heads of legal depart-ments honored by Crain’s took ac-tive roles in company mergers andacquisitions, diversifying businessfunction and staving off costly liti-gation.

Their departments also took ongreater significance to the larger le-gal community, as they grew staffand budgets while outside law firmssaw attrition during much of 2011.

With that in mind, Crain’s takes acloser look at newsmakers in these

departments, in partnership withthe Association of Corporate Counsel,the State Bar of Michigan’s BusinessLaw Section and the Oakland CountyBar Association.

Here are profiles of 2011’s mostdistinguished general counsel attor-

neys for businesses and nonprofitorganizations. Winners and finalistswill be honored April 25 at anevening reception and strolling din-ner following an afternoon summit(see box) with speakers, panels andeducational sessions.

T ATTORNEYS TO SHARE STRATEGIES AT CRAIN’S SUMMITGeneral and in-house counsel from

around the state will have a chance tomeet and share strategies on April 25as part of the Crain’s General & In-House Counsel Summit.

The event at the Inn at St. John’s inPlymouth will feature speakers fromaround the country addressing bestpractices, strategies and regulations.

A keynote panel of attorneys from theSecurities and Exchange Commission,and the U.S. Department of Justice willlook at regulatory trends.

Nicole Lamb-Hale, assistant

secretary for manufacturing andservices in the U.S. Department ofCommerce, is scheduled to be akeynote speaker.

General counsel from companiessuch as 5-Hour Energy, ValassisCommunications Inc. andMeadowbrook Insurance Group Inc.are featured speakers.

The event is open only to generaland in-house counsel from 11 a.m. to3 p.m., and open to everyone from4:30-8 p.m. To register, go towww.crainsdetroit.com/events.

THE HONOREESPublicly tradedcompanies withrevenue over $1 billion:

Winner: BrucePeterson, DTEEnergy Co., Page 11Finalist: JoshuaSherbin, TriMasCorp.,

Publicly tradedcompanies withrevenue under $1 billion:

Winner: ChrisHeaphy, TaubmanCenters Inc., Page 12Finalist: Ethan Gilan,Pioneer AutomotiveTechnologies, Page 12

Privately heldcompanies withrevenue over $1 billion:

Winner: Holly Leese,Chrysler Group LLC,Page 13Finalist: BryantFrank, SoaveEnterprises, Page 14

Privately heldcompanies withrevenue under $1 billion:

Winner: RyanRuzziconi, DiplomatPharmacy, Page 15Finalist: MichaelZambricki, Art VanFurniture, Page 16

Nonprofits andpublic institutions:

Winner: RichardWhite, Auto ClubGroup Inc., Page 17Finalist: LouisLessem, WayneState University,Page 18

KENNY CORBIN

Bruce Peterson, senior vice president and general counsel at DTE Energy, built ateam to take more legal work in-house, going from 25 percent in-house to 70 percent.Winner

W

Chad Halcomcovers law,manufacturingand defense. Call (313) 446-6796or write [email protected].

Chad Halcom


High-Octane Performance:Dykema Firing On All Cylinders

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• Received the American Bar Association’s 2011 National Public Service Award, in recognition ofDykema’s sustained commitment to pro bono work, particularly to nonprofit organizations that servelow-income communities and others in need.

• Named one of the Top 100 Law Firms for Diversity by MultiCultural Law magazine. Dykema hasearned this distinction every year since 2007.

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Focus: General and In-House Counsel AwardsPublicly traded companies,

revenue over $1 billion

JOSHUA SHERBINGeneral counsel,secretary andchief complianceofficer, TriMasCorp., BloomfieldHillsClaim to fame:Engaging seniormanagement in acompliancecommittee todirect legal and

ethical standards for TriMasworldwide, and helping to close fiveportfolio company acquisition dealsin six months with a combined valueof more than $130 million.

loomfield Hills-based TriMasCorp. is back in the club of 20or so metro Detroit public

companies with $1 billion-plus rev-enue for the first time since 2008 —

and Joshua Sherbinmay be partly re-sponsible.

Sherbin, 49, who oversees a legalstaff of seven for a manufacturingcompany with 4,100 employees in15 countries, formed a senior man-agement compliance committeelast February that includes CFO A.Mark Zeffiro, Vice President ofHuman Resources Colin Hindmanand several business unit leaders.The committee helps develop glob-al policies on corporate conductand measures to comply withchanging laws around the world.

“I think the legal team has a real

commitment to service. There’s asense of dedication to seeing all ofthe (TriMas) businesses achievetheir best function,” Sherbin said.

The company now coordinatesits national litigation defensework through just two outside lawfirms — Cleveland-based McDonaldHopkins LLC, which has an office inBloomfield Hills, and Hewitt Wolen-sky LLP in Newport Beach, Calif. —compared with more than a dozenoutside firms four years ago.Sherbin said he also expects to de-velop new initiatives in 2012 to co-ordinate better with outside legalcounsel on the company’s costs.

The company’s $1.08 billion is2011 sales were bolstered in part byrevenue from acquisitions. Thecompany completed the purchase ofInnovative Molding for $27 million in

August, and a $38.6 million sale ofthree companies to Livonia-basedArch Global Precision LLC in Decem-ber, without using outside counsel.

TriMas did use outside counselon two smaller cross-border pur-chases — X-Cel India Private Ltd., for$2.1 million, in September, and BTMManufacturing Ltd. in South Africa,for $2.6 million, in October — aswell as the purchase of 70 percent ofArminak & Associates LLC in Califor-nia, for $64 million, in February.

Sherbin said as much of theM&A work as possible was han-dled in-house.

Sherbin is also chairman of theboard of the Birmingham BloomfieldArt Center and serves on the execu-tive board at Temple Shir Shalom inWest Bloomfield.

— Chad Halcom

Publicly traded companies,revenue under $1 billion

CHRIS HEAPHYSenior vice president, generalcounsel and secretary, TaubmanCenters Inc., Bloomfield HillsClaim to fame: Worked with the firm’sAsia expansion, new malldevelopment and acquisitions

t’s been a busy year for Taub-man Centers Inc.

The Bloomfield Hills real es-tate investment trust acceleratedits Asian expansion by acquiring a

Beijing-based real es-tate consulting firm,and it opened one of

the nation’s only new mall pro-jects, in Salt Lake City.

It also acquired malls in Ten-nessee and California, but thengave malls back to the lender inVirginia and New Jersey. Taub-man also reached a high watermark of 600 new or renewed ten-ants in 2011 retail leases, across its23 malls nationwide.

In a commotion like that, com-

municating with the legal team iscrucial, said Chris Heaphy, Taub-man senior vice president and gen-eral counsel.

“We have a great legal staff thatgets involved with the leasing andreally even helps close the deals,”he said.

The company’s expansion intoAsia has been a major focus forHeaphy, who has overseen that en-

deavor and helped navigate the le-gal issues.

“There are language barriers,there are different rules, there arepolitical issues,” he said. “But this isthe new frontier, and we see a lot ofgrowth in Asia.”

Heaphy points to early interven-tion in the company’s business is-sues as the best way to avoid prob-lems in the long term. It’s also

crucial for the legal team to followthe company’s culture.

“Everyone here looks at thiscompany less like a developer andmore like a retailer,” he said. “Weemphasize thinking about the ten-ants, the mix of tenants and theirperformance. Because, in the end,the more profitable our tenantsare, the more profitable we are.”

Heaphy has placed a priority onallowing employees to raise issuesor concerns anonymously, withoutfear of retribution. That feedbackhas helped reduce legal claims viaearly intervention.

It’s also part of a larger compli-ance program focusing on exten-sive training and education.Training and education starts onthe first day for company employ-ees, and regular retraining fol-lows, he said.

Before moving in-house at Taub-man in 2005, Heaphy representedthe company for nearly 20 years —19 of them at Miro Weiner & KramerPC, and one at Detroit-based Honig-man Miller Schwartz and Cohn afterthe Miro firm dissolved.

— Daniel Duggan

Publicly traded companies,revenue under $1 billion

ETHAN GILANGeneralcounsel,PioneerAutomotiveTechnologiesInc.,FarmingtonHillsClaim to fame:NavigatedPioneer’s contract negotiationswith customers and suppliersfollowing supply disruptionscaused by an earthquake inJapan and flooding in Thailand.

fter two tough years ofrestructuring and leanmarkets, things were

looking up for the global auto-motive industry in early 2011.But in March, an earthquake

and tsunami inJapan caused se-rious fractures in

the supply chain.Then, October floods in Thai-

land damaged two plants thatmake components for Farming-ton Hills-based Pioneer Automo-tive Technologies Inc., said com-pany general counsel EthanGilan. Pioneer Automotive isthe U.S. automotive subsidiaryof Japanese electronics con-glomerate Pioneer Corp.

“With a significant presencein both (Asian) countries, Pio-neer incurred substantial dis-ruption to necessary parts andcomponents supply,” said Gi-lan, 44.

Shipments were delayed andplants shut down for lack ofparts. Gilan’s department at Pi-oneer was forced to play a logis-tics chess game, negotiating al-ternative sourcing with itssupply base and other divi-sions.

Winner

BFinalist

I

Finalist

A

PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS

See Next Page

TaubmanCenters’expansioninto Asia hasbeen a majorfocus ofChrisHeaphy,senior vicepresident,generalcounsel andsecretary.

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Focus: General and In-House Counsel Awards

Privately held companies, revenue over $1 billion

HOLLY LEESESenior vice president, generalcounsel and secretary, ChryslerGroup LLC, Auburn HillsClaim to fame: Structuring therefinancing package that allowedChrysler to repay $6 billion to the U.S.,Canadian and Ontario governments.

ew financing packagescleared away most of theownership of Chrysler Group

LLC by the U.S. Department of Treasuryand the governments of Canada and

Ontario. But anotherhurdle remains be-fore attempting a

complete merger with Fiat GroupSpA: the voluntary employees’ bene-fit association, or VEBA, trust fundestablished by the UAW.

Heading up efforts to shed theretirees’ stake and proceed to amerger is Holly Leese, senior vicepresident, general counsel and sec-retary at Chrysler.

On Jan. 1, a provision in its agree-ment with Chrysler could allow theVEBA to demand the Auburn Hillsautomaker go public to repay its 41.5percent, or $4.5 billion stake —which would make a subsequentmerger or joint public offering withFiat difficult, Leese said.

“We’re going to have to find away to speed up the merger andfigure out a plan for VEBA,” shesaid. “We have to protect VEBA’sinterest, but it’s a dilemma for us.”

Fiat won’t go forward with jointownership while VEBA’s pensionobligations are still invested inChrysler, and Chrysler can’t af-ford to buy out the VEBA shares.

“A standalone Chrysler IPO is-n’t ideal for us or Fiat,” Leese said.“So, we’re racing against the clock

and working on a million differentschemes to provide VEBA withthree or four better options byJan. 1.”

But Leese, 56, and her legal teamof 100 have faced challenges before.

The department helped pilotChrysler through a controlledbankruptcy proceeding in NewYork after years of poor sales, butthen helped repay $6 billion to theTreasury Department and Canadi-an government years ahead ofschedule, as Chrysler reaped a$183 million profit in 2011.

Leese led her team throughChrysler’s investor road show,calling it a “monthlong sojourn” toconvince investors Chryslerwould be different under Fiat thanunder Daimler AG and Cerberus Capi-tal Management LP.

“There was huge skepticism,”Leese said. “We proved an indus-trial merger with another largecompany (like Daimler) was a fail-ure, and we didn’t have a lot ofnew products. Closing on these fa-cilities was a hard slog.”

Leese then helped obtain termsof agreements and investmentswith underwriters J.P. MorganChase, Bank of America, Merrill Lynch,Citi Group and Goldman Sachs. Thedeal grew Fiat’s stake in Chryslerfrom 20 percent to 58.5 percent andshed government ownership.

When Congress passed a law au-thorizing arbitration for the 789dealers Chrysler shed in bankrupt-cy, Leese oversaw that process forChrysler. Chrysler legal settledwith 310 of the 418 dealers whofirst pursued arbitration.

She recalls the restructuringand aftermath as both gruelingand exciting.

“Bankruptcy was really one ofthe worst experiences,” she said.“I loved it.”

— Dustin Walsh

“These efforts required manypeople working many hours inmany countries to modify produc-tion plans to accommodate Pio-neer’s (automaker) customers, of-tentimes at the expense of ouraftermarket division,” he said.

After the disasters, Gilan en-tered talks with Pioneer’s cus-tomers and vendors on the majorcost requirements to get the sup-ply chain back on line.

To avoid litigation, Gilan’s workfocused heavily on invoking sup-plier agreements’ “force majeure”clauses, provisions in many con-tracts that avert liability when amanufacturer cannot meet produc-

tion volumes or deadlines due toan unforeseen external event.

Five months later, Gilan is stillnegotiating contracts tied to com-ponent sourcing from the Thai-land plants.

“The concept of force majeuremay seem simple to understand,but its application in the face ofcrippling consequences can be in-tensive,” he said.

In addition to being general coun-sel, Gilan has served as head of Pio-neer’s human resources departmentsince the industry downturn, dur-ing which he managed a temporaryshift to four-day workweeks, cuttingoverhead and averting layoffs.

— Dustin Walsh

Winner

N

From Previous Page

PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS

Holly Leese and her team helped move Chrysler through bankruptcy proceedingsand then helped it repay the U.S. and Canadian governments ahead of schedule.



Focus: General and In-House Counsel AwardsPrivately held companies, revenue over $1 billion

BRYANT FRANKSecretary and senior counsel, SoaveEnterprises LLC, DetroitClaim to fame: Helped the companyevolve through 75 sales andacquisitions over 20 years, andcontinue diversifying with newoperations in Iowa and Michigan.

hen Bryant Frank joinedSoave Enterprises LLC 20 years ago, he was alawyer skilled in merger and acquisition

work who needed to learn about the company’s pri-mary businesses: construction and waste manage-ment.

The waste management knowledgemay be dated now, as Soave has largelyevolved beyond it. But the M&A experi-

ence is still an asset, as the company has bought orsold 75 others during his tenure.

“We’ve changed so much, in fact, our primary in-dustry from 20 years ago — waste — is somethingwe’ve sold off,” Frank said.

And 2011 was busy as well, with acquisitions thatestablish new operations for Soave’s industrial ser-vices group in Iowa, growth in nonferrous scrap met-

al purchasing and processing in Michigan, and newhydraulic fracturing operations for Soave throughoutthe country.

Now Soave Enterprises, run by Anthony Soave, is a$1.8 billion company with interests in real estate, cardealerships and beverage distribution, along withmetals recycling.

In his career with Soave, Frank has led those 75 ac-quisitions and sales. He’s also been part of negotia-tions on 30 collective bargaining agreements and han-dled arbitration on 50 labor cases. Among his recentaccomplishments, Frank points to the sale of Chicago-based City Beverage-Illinois LLC at the end of 2010. Soavesold its 70 percent stake in the wholesaler to Anheuser-Busch InBev NV/SA, which already owned the remain-ing 30 percent.

Frank joined Soave after working at the Troy-basedfirm of Jacob & Weingarten PC. He said being in-houselet him to get to know his clients in a way that would-n’t have been possible at an outside firm.

“The conversations that you have spontaneously, at6:30 or 7, when everyone’s sitting in a room and talkingabout the day’s events, that’s when you really get toknow the people you work with,” he said, noting thatoutside counsel don’t spend as much time with clients.

Frank serves on the board of directors of the De-troit regional office of the American Jewish Committeeas well as Detroit-based Matrix Human Services.

— Daniel Duggan

Finalist

W

NOMINATE ENTREPRENEURS FOR CRAIN’S SALUTEThe deadline to nominate someone for Crain’s Salute

to Entrepreneurs awards program has been moved toApril 30.

Crain’s is seeking nominations for entrepreneurs whodeserve to be recognized for their innovation, problem-solving ability or sheer relentlessness.

Anyone is welcome to nominate an entrepreneur,including entrepreneurs themselves.

The awards are broken out by five revenue categoriesaccording to size. There is also a category for social

entrepreneurs and one for “intrapreneurs,” or peoplewithin companies who have demonstrated anentrepreneurial spirit to help the company grow.

Award winners will be recognized in the June 18edition.

Go to crainsdetroit.com/nominate for moreinformation on the categories and the requirements tomake a nomination. Questions? Contact GaryAnglebrandt, Web editor, at [email protected] or(313) 446-1621.


Privately held companies,revenue under $1 billion

RYAN RUZZICONIVice president and general counsel,Diplomat Specialty Pharmacy Inc., FlintClaim to fame: Created in-housecounsel office, negotiated ground-breaking contract with Pfizer to sellbrand-name drug Lipitor at genericprices, successfully managed patientprivacy audit by the U.S. Departmentof Health and Human Services’ Officeof Civil Rights.

yan Ruzziconi has blazedseveral trails since hejoined Diplomat Specialty

Pharmacy Inc. in December 2009 asits first general counsel.

“Bringing me in-house has savedmoney,” said Ruzzi-

coni, who formed and heads thelegal department for the mail-or-der pharmacy company. “My phi-losophy was to keep as much in-house as I could. I am in the bestposition to know the ins and outsof Diplomat and to know what hu-man resource or compliance is-sues there are.”

Ruzziconi, 36, rounded out hisnew department with a paralegaland administrative assistant, andrelies partly on law school or col-lege interns.

“We have kept our budget at un-der $400,000 a year the past twoyears. It will go up when we hire anew corporate counsel” in lateMarch, Ruzziconi said.

Diplomat CEO Phil Hagermansaid one of Ruzziconi’s best assetshas been his ability to turn workaround quickly and how he han-dles business partners’ needs.

“He protects us as he shouldwithout trying to create unfair ad-vantages,” Hagerman said. “(That)goes a long ways when we are ne-gotiating tough points.”

To tap into outside expertise,Ruzziconi has contracted with twolaw firms with offices in Detroit,Butzel Long and McDonald HopkinsPLC. The firms receive paid flatfees to advise Diplomat on compli-ance and pharmacy licensing is-sues.

Last November, Diplomat tookthe pharmaceutical industry bysurprise when it announced an in-novative contract to help Pfizermarket its brand name drug Lipi-tor at generic prices.

Because Lipitor’s patent had ex-pired, Pfizer contracted withDiplomat to mail Lipitor to pa-tients who order the cholesterol-lowering pills directly through thepharmacy. Diplomat would bill thepatients’ health plans.

The Pfizer deal was the firsttime a major pharmaceutical drugmaker has ever contracted direct-ly with a mail-order drug compa-ny to sell its brand-name drugs toconsumers directly at genericdrug prices after its patent ex-pires

Lipitor is the top-selling drug ofall time, and Pfizer has earnedmore than $81 billion in sales since1997.

Diplomat has about 600 employ-ees, including more than 50 hiredin the past few months to help ser-vice the new Pfizer contract. Its2011 revenue was $800 million andcould grow to nearly $1 billion thisyear, Hagerman said.

Ogletree Deakins is one of the nation’s largest labor and employment la rms ith more than attorneys in of es a ross the o ntry

he nationally re ogni ed la yers in Ogletree Deakins’ i higan of e represent and ad ise employers thro gho t the state of i higan e nderstand the many hallenges fa ing i higan employers and e ork ith yo to form late pra ti al b siness sol tions to legal problemshis fo s has prompted a di erse gro p of lients ranging from startps to more than half of the ort ne orporations in the nited tates to t rn to Ogletree Deakins for their employment and labor la

needs isit s at ogletreedeakins om

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Winner

R

Ruzziconi also successfullymanaged a medical privacy com-pliance audit by the Office of CivilRights under the U.S. Department ofHealth and Human Services, underthe federal Health InsurancePortability and AccountabilityAct.

While Ruzziconi declined to givethe reason for the audit, Diplomatreceived a “matter closed, auditcomplete” decision from HHS andno fine.

Diplomat is a pharmacy benefitmanagement company that offersmail-order services, dialysis med-ication management, wellness pro-grams and patient counseling ser-vices.

— Jay Greene

My philosophy was tokeep as much in-houseas I could. I am in the

best position to know theins and outs ofDiplomat.

Ryan Ruzziconi,Diplomat Specialty Pharmacy Inc.

”

“

RYAN GARZA


Privately held companies,revenue under $1 billion

MICHAEL ZAMBRICKIVice president and general counsel,

Art Van FurnitureInc., WarrenClaim to fame:Provided legalsupport forinternal growthand acquisitionsin the past twoyears. Nowhelping toposition Art Vanfor further

expansion in-state and outside ofMichigan.

ichael Zambricki hasguided Art Van Furniturethrough rapid growth

over the past two years, oversee-ing two acquisitions and internal

growth.Now he’s helping

the Warren-based re-tailer expand further in Michiganthrough new franchises and intoother states with franchises, inde-pendent licensing and company-owned stores.

Zambricki, 58, vice presidentand general counsel at Art Van —and mayor of Bloomfield Hills —led due diligence and helped puttogether the deals that led to thecompany’s purchase of Brewbaker’sFurniture in Petoskey and Onaway

in July 2010. Last year, he also led prepara-

tion of the legal agreements tosupport Art Van’s purchase inJuly of Mattress World, whichbrought its first stores outside ofMichigan in the Indianapolis,Ind., area.

Both deals came together quick-ly, closing in less than a month,Zambricki said.

He also helped Art Van grow internally, delving into intellectu-al property and helping to line up the trademarks, property purchases and lease deals Art Van needed to launch its PureSleep brand both in its furniturestores and at three freestandingstores.

He’s now working on two othersthat are scheduled to open withinthe next couple of months.

Zambricki negotiated joint ven-tures with Irvine, Calif.-basedPaul’s TV to bring television salesinto Art Van Furniture stores, andwith Minneapolis-based World ofFloors to bring flooring into ArtVan.

In addition to serving as in-house counsel, Zambricki was head of human resources forthe first 16 of his 18 years at ArtVan.

He ceded HR responsibilitiestwo years ago but still oversees ArtVan’s benefits department andloss prevention.

Zambricki has helped provide

Wayne Law offers students a strong and comprehensive legal

education. And we are always getting better. Recently, we

celebrated the grand opening of the Damon J. Keith Center for

Civil Rights, partnered with Windsor Law for North America’s

first Transnational Environmental Law Clinic, and brought more

than a dozen legal scholars and practitioners to campus for

innovative lectures.

It’s no wonder our graduates go on to make signifi cant

contributions in their communities and beyond.

AIM HIGHER

Learn more at law.wayne.edu or us on Facebook at facebook.com/WayneStateLawSchool



Finalist

M training seminars for Art Van’smanagement team on labor andemployment issues and litigationavoidance.

As a result, over the pastdecade, employment liability has averaged less than $30,000 an-nually at the 2,500-employee com-pany.

Zambricki is now helping toready Art Van for further expan-sion into other states, reviewingpossible land purchases and help-ing to craft franchise agreements,manuals and disclosure docu-ments and other documents need-ed for independent licensing of itsbrands.

— Sherri Welch

CRAIN’S EXPANDS COOL PLACESTO WORK AWARDS PROGRAMCrain’s Cool Places to Work awardsreturns this year as Cool Places toWork in Michigan, reflecting theexpansion of the program fromcovering businesses in Southeast

Michigan tobusinesses inthe entirestate.To managethe revampedprogram,Crain’s isworking withBestCompaniesGroup of

Harrisburg, Pa. In addition to anemployer questionnaire, as hasbeen done in the past, BestCompanies will survey employeesof participating companies. Thecombined, weighted results of thetwo will determine who qualifies forCool Places designation. Best Companies supplies allparticipating companies —regardless of whether they win theCool Places recognition — with aBest Companies Group EmployeeFeedback Report based onemployee responses to the 72-question survey. The report canhelp company executives identifystrengths and weaknesses in theircompany culture and practices. To be considered for Cool Places toWork in Michigan, companies mustregister atwww.coolplacestoworkmi.com byJune 15.Once registered, companies will beinvited to participate in thesurveys. Up to 400 employees willbe surveyed, depending oncompany size.The vetting process runs from Junethrough August, with honoreesreceiving notification at the end ofAugust.Businesses and nonprofits canapply. Applicants must have aminimum of 15 employees workingin Michigan and have been inbusiness at least one year, amongother criteria.Companies pay a fee based oncompany size to Best Companiesto cover survey costs. The costranges from $605 to $890 foronline surveying, and $735 to$1,630 for paper surveying.Crain’s Detroit Business willfeature the recognized companiesin the Nov. 5 issue and recognizetheir success at a Nov. 15 event atEmagine Theatre in Royal Oak.Details of the program andsamples of the employee surveysare available atwww.coolplacestoworkmi.com.


Nonprofits and public institutions

RICHARD WHITESenior vice president, secretary andgeneral counsel, Auto Club Group Inc.(AAA Michigan), DearbornClaim to fame: Created a strong in-house counsel office; helped start aAAA bank; reduced use of outsidecounsel to only when necessary foradded support for growth throughmergers, acquisitions and newbusiness development.

ichard White’s keys to an ef-ficient general counsel officeat Auto Club Group Inc. are de-

veloping attorney specializationsand holding to a flat legal budget.

As Auto Club hasdoubled in membersto 8.7 million over

the past several years and in-creased revenue by 14 percent to$2.4 billion, White has kept thegeneral counsel’s office budget flatwithout any new lawyers.

The office also develops its attor-neys to specialize in key businessareas: insurance, employment,corporate, mergers and acquisi-tions, technology and taxation.

Under White’s guidance, AutoClub in 2010 opened AAA Bank Ne-braska, a retail bank, in Omaha.Additional branches are plannedthis year in that state, and AutoClub is considering a similar bankto operate in Wisconsin. Michiganis not in contention for such abank due to regulations and com-petition, he said.

In October, Auto Club affiliatedwith Tampa, Fla.-based AAA Auto

Club South. The combination creat-ed AAA’s second-largest auto club,after the AAA club in SouthernCalifornia, with more than 8,000employees.

“Right now, the hard part is in-tegration and making sure itworks,” White said.

Over the past 16 years with AutoClub, White’s approach has led to asignificant decrease in employ-ment litigation.

“We haven’t had any significantemployee litigation in manyyears,” said White, 67, noting thatthere have been EEOC complaintswhen employees are suspended orterminated.

White said his office, which haseight lawyers, two paralegals andfour support staffers, works closelywith the human resources depart-ment during business reorganiza-tions and employee disciplinary ac-tion and terminations.

“We have a very active employee

and manager education componentthat is organized by human re-sources but with our input and par-ticipation,” said White. “If a partic-ular manager seems to have someproblems communicating with fe-male employees — it may be kid-ding around but offensive to others— that manager is identified, indi-vidually counseled and trained topreclude that risky behavior.”

Also under White’s responsibili-ties is a 38-lawyer legal depart-ment that handles insuranceclaims on homes, automobiles andboats.

Since 1996, Auto Club has re-duced the number of attorneyshandling claims from 65 to 38 —primarily by increasing productiv-ity and improving processes with-in the general counsel’s office, hesaid. The reduction in lawyers in-cluded retirements, resignations,layoffs and attrition.

— Jay Greene

Health Care Experience In Your Corner.

Lawrence P. [email protected]

� Metro Detroit � Grand Rapids � Kalamazoo � Grand Haven � Lansing

First Tier Rankingin Health Care Law

Art Van Furniture6500 East 14 Mile Road Warren, MI | artvan.com

Art Van Furniture is delighted to recognize our own

Mike ZambrickiCorporate Counsel – Art Van Furniture

as a Crain’s Detroit Business

General and In-House Counsel Finalist 2012.

We are so proud of you, Mike!



Winner

RGLENN TRIEST

RichardWhite sayshis legaldepartment’sinvolvementin educationprograms iscentral tosuccess inholding downemployeelitigation atAuto ClubGroup Inc.


Park West Gallerieswinnows buyer suits

Southfield-based Park West Gal-leries Inc. has settled or dismissed31 claims among the nearly 60buyers who have alleged conspira-cy, fraud, breach of contract or un-just enrichment in various law-suits over artwork the local dealersells on cruise ships.

The Michigan Court of Appealslast week agreed to hear an appealfrom buyers Sharon Day and Ju-lian Howard of England, who con-tested being dismissed last sum-mer from a pending OaklandCounty Circuit Court lawsuit. Un-less Day and Howard get reinstat-ed, that leaves only three claimsfrom four remaining plaintiffs, outof the original 10 in that 2008 case.

A multidistrict litigation case atthe U.S. District Court in Seattle,which consolidated several federallawsuits from a dozen buyer plain-tiffs against Park West and threecruise ship companies, was dis-missed per a settlement last July.

Attorney Jaye Quadrozzi ofSouthfield-based Young & Susser PCcalled the agreement “extraordi-narily favorable to Park West,” butdid not elaborate.

The claims against the cruiselines that host Park West auctionswere dismissed prior to the finalPark West settlement.

Besides the four plaintiffs in theoriginal 2008 Oakland lawsuit, justover a dozen of the original 27plaintiffs remain from a separate2010 lawsuit before Oakland Cir-cuit Judge Wendy Potts. Five ofthe buyers in that case were dis-missed over an arbitration clausein their purchase agreements; therest had to file separate suits, andeight of those have since settled.

Another 12 buyers brought athird buyer lawsuit in OaklandCounty last fall, and that caseawaits a motion hearing April 25.

— Chad Halcom

Nonprofits and public institutions

LOUIS LESSEMVice presidentand generalcounsel, WayneState University,DetroitClaim to fame:Reducinglawsuits againstthe university to

fewer than 15 a year, down from 35-40, and reducing settlement coststo less than $50,000 in 2011.

ouis Lessem believes run-ning a public university canbe much like running a

small city, in terms of the legalnuances of addressing safety, la-

bor and liquidity. “Universities get

sued in a lot of dif-ferent areas, much like a city,” hesaid. “But we’re now practicing anumber of things that work wellin preventative measures. Thebest way to avoid litigation is forus to be up-front and center fromthe start.”

He estimates WSU was a defen-dant in 35-40 lawsuits annuallywhen he became general counsel in1998 and now averages fewer than15 a year. His legal team prevailedagainst 75 percent of all claims andpaid out less than $50,000 in totalsettlements for the year.

He credits a risk managementstrategy he developed with his le-gal team for reducing claims, alongwith a reorganization in which theschool’s Office of Labor Relationsand Office of Equal Opportunitynow report to directly to him.

Lessem, 62, also established an“Attorney of the Day” program tohave one university staff attorneyon call all day to consult withcampus officials.

“Because of your ability to reachus, we are able to learn about aproblem when it’s a little problemand handle it before it becomes abig problem, stopping some law-suits from getting filed,” he said.

The changes help the university“to resolve the most meritorious

claims” short of litigation, he said,while a policy of pursuing attor-ney fees from unsuccessful plain-tiffs helps deflect frivolous cases.

Lessem’s latest challenge is co-ordinating the university’s Officeof Internal Audit and Office ofCompliance with his own depart-ment. As state university fundingis at all-time lows, complianceprograms can avert fines and oth-er legal entanglements that jeop-ardize WSU operations, he said.

“There will always be the nextlawsuit or crisis,” he said. “Buthelping the university in thesedifficult and uncharted waters isthe most exciting (responsibility)for me.”

— Dustin Walsh

© 2012 Baker Tilly Virchow Krause, LLP.Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International.

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Finalist

L

Plunkett Cooney lawyerweighs in on strip searches

Mary Massaron Ross, share-holder and head of the appellatepractice groupat BloomfieldHills-based Plun-kett Cooney PC,joined the win-ning side in a re-cent U.S.Supreme Courtruling on policeauthority to con-duct stripsearches.

The high court ruled 5-4 earlierthis month that jail policies ofstrip-searching all general-popula-tion inmates, including those heldon minor charges, do not violatethe Fourth Amendment, and thatsafety concerns outweigh personalprivacy rights.

Ross filed an amicus brief on be-half of Chicago-based DRI-The Voiceof the Defense Bar, a national organi-zation of lawyers defending busi-ness and individuals in civil litiga-tion, of which she is first vicepresident. The organization arguedthat a ruling against municipal andstate governments could lead to po-tential class-action lawsuits.

— Chad Halcom

Ross



Top outstate lawfirms; ranked byattorneys in Mich.

Name, location, Michigantop exec attorneys

1. Warner Norcross 182& Judd LLP, Grand RapidsDouglas Wagner, managing partner

2. Varnum LLP, 134Grand RapidsLawrence Murphy, managing partner

3. Foster Swift Collins 96& Smith PC,LansingMichael Sanders, president

4. Miller, Johnson, Snell 87& Cummiskey PLC,Grand RapidsCraig Mutch, managing member

5. Smith Haughey Rice 79& Roegge PC,Grand RapidsWilliam Hondorp, CEO

6. Rhoades McKee PC, 49Grand RapidsRobert Shaver, president

7. Mika Meyers Beckett 36& Jones PLC,Grand RapidsWilliam Horn, managing partner

8. Kreis, Enderle, Hudgins 33& Borsos PC,KalamazooStephen Hessen, managing partner

9. Law Weathers, 24Grand RapidsRobert Buchanan, president

10. Barnes & 23Thornburg LLP,Grand RapidsTracy Larsen, Grand Rapidsmanaging partner

11. Scholten Fant PC, 22Grand HavenRonald Bultje, chairman ofexecutive committee

12. Parmenter O’Toole, 20MuskegonGeorge Johnson, president

12. Loomis, Ewert, Parsley, 20Davis & Gotting PC,LansingKevin Roragen, president

14. McShane & Bowie PLC 18Grand RapidsDan Challa, managing partner

15. Price, Heneveld, 17Cooper, DeWitt & Litton LLP,Grand RapidsKevin Grzelak, managing partner

16. Lewis, Reed & Allen PC, 16KalamazooWilliam Redmond, managing partner

17. Kluczynski Girtz 15& Vogelzang,Grand RapidsKirby Fuller, office manager

17. Cunningham 15Dalman PC,HollandJeffrey Helder, managing partner

19. Willingham & Coté PC, 14East LansingMichael Stephenson, managing partner

19. Bleakley, Cypher, 14Parent, Warren & Quinn PC, Grand RapidsMichael Ward, managing partner

LIST RESEARCHED BY BRIANNA REILLY

CRAIN'S LIST: LARGEST MICHIGAN LAW FIRMSRanked by number of attorneys in Michigan

Rank

CompanyAddressPhone; website Top Michigan executive

Michiganattorneys

Jan. 2012/2011Worldwide attorneys

Jan. 2012/ 2011 Representative clients

1.Miller, Canfield, Paddock and Stone PLC150 W. Jefferson, Suite 2500, Detroit 48226(313) 963-6420; www.millercanfield.com

Michael HartmannCEO

242269

310349

ArvinMeritor Inc., Comerica Inc., Chrysler Group LLC, DTEEnergy, Ford Motor Co. and its affiliates, University ofMichigan, Valassis Communications Inc.

2.Honigman Miller Schwartz and Cohn LLP2290 First National Building, 660 Woodward Ave.,Detroit 48226-3506(313) 465-7000; www.honigman.com

David Foltynchairman and CEO

216213

216228

BlackEagle Partners LLC, Detroit Institute of Arts, DTEEnergy, General Motors Co., Huron Capital Partners LLC,Ramco-Gershenson Properties Trust, Rock Financial/Quicken Loans Inc./Rockbridge Growth Equity LLC,Taubman and Trinity Health

3.Dickinson Wright PLLC500 Woodward Ave., Suite 4000, Detroit 48226(313) 223-3500; www.dickinsonwright.com

William BurgessCEO

204218

279289

J.P. Morgan Chase, Federal Mogul, Ford Motor Co., AT&T,Magna, MGM Mirage, Kellogg Co., Enbridge Energy Co.,Visteon Corp., Carhartt, Beaumont Hospitals, LacksEnterprises Inc.

4.Warner Norcross & Judd LLP900 Fifth Third Center, 111 Lyon St. SW, Grand Rapids49503(616) 752-2000; www.wnj.com

Douglas Wagnermanaging partner

182188

219221

Amway Corp., Borg Warner, Consumers Energy Co., DowChemical, Fifth Third Bank, Mahle Industries Inc.,Mercedes-Benz Financial Services USA, Stryker Corp.,Robert Bosch Corp., Whirlpool Corp.

5.Clark Hill PLC500 Woodward Ave., Suite 3500, Detroit 48226(313) 965-8300; www.clarkhill.com

John HernCEO

181178

227210

NA

6.Dykema Gossett PLLC400 Renaissance Center, Detroit 48243(313) 568-6800; www.dykema.com

Peter Kellettchairman and CEO

159180

296339

Chrysler Group LLC, Compuware Corp., Ford Motor Co.,General Motors Co., Guardian Industries, InternationalTransmission Co., KONE, Masco Corp.

7.Plunkett Cooney PC38505 Woodward Ave., Suite 2000, Bloomfield Hills48304(248) 901-4000; www.plunkettcooney.com

Henry Cooneypresident and CEO

151150

162165

Bank of America, Huntington Bank, First American Title,Beaumont Health System, Liberty Mutual Insurance,Michigan Municipal League, PNC Bank, The TravelersCompanies Frankenmuth Mutual Insurance

8.Varnum LLP333 Bridge St., Grand Rapids 49501-0352(616) 336-6000; www.varnumlaw.com

Lawrence Murphymanaging partner

134134

153153

Kellogg Co., The Huntington National Bank, Citizen'sBank, Independent Bank Corp., Fifth Third Bank, MPIResearch, PNC Bank, National Association

9.Bodman PLCSixth Floor at Ford Field, 1901 St. Antoine St., Detroit48226(313) 259-7777; www.bodmanlaw.com

Ralph McDowellchairman

131126

131126

Comerica Bank, Bank of America, Archdiocese of Detroit,Ford family, Lear Corp., Freudenberg-NOK, GP, PulteHomes of Michigan, Caraco Pharmaceutical LaboratoriesLtd., Blue Cross Blue Shield of Michigan, Detroit MedicalCenter

10.Butzel Long PC150 W. Jefferson, Suite 900, Detroit 48226(313) 225-7000; www.butzel.com

Justin Klimkopresident and managingshareholder

111123

121146

William Beaumont Hospitals, University of Michigan,Oakland Community College, MGM Grand Detroit, FifthThird Bank, Owens Corning, Casio America, DiplomatSpecialty Pharmacy

11.Jaffe, Raitt, Heuer & Weiss PC27777 Franklin Road, Suite 2500, Southfield48034-8214(248) 351-3000; www.jaffelaw.com

Richard Zussmanmanaging partner

98101

NA101

Sun Communities Inc., Belfor USA Group Inc., StrengthCapital Partners, The Fisher Group, Oppenheimer & Co.

12.Foster Swift Collins & Smith PC313 S. Washington Square, Lansing 48933(517) 371-8100; www.fosterswift.com

Michael Sanderspresident

96103

96106

NA

13.Kitch Drutchas Wagner Valitutti &Sherbrook PC1 Woodward Ave., Suite 2400, Detroit 48226(313) 965-7900; www.kitch.com

Ronald Wagnermanaging partner

9297

100107

Ascension Health, Chartis Insurance, Coverys, CVS Drugs,Detroit Medical Center, HCR Manorcare, Henry FordHealth System, Motor City Electric Co., Utica Insurance

14.Trott & Trott PC31440 Northwestern Highway, Suite 200, FarmingtonHills 48334(248) 642-2515; www.trottlaw.com

Executive committee 9191

9191

Bank of America, Chase, Citifinancial, Wells Fargo,Comerica

15.Miller, Johnson, Snell & Cummiskey PLC250 Monroe Ave. NW, Suite 800, Grand Rapids 49503(616) 831-1700; www.millerjohnson.com

Craig Mutchmanaging member

8787

8787

Gordon Food Service, Spectrum Health, Steelcase Inc.,Stryker Corp.

16.Garan Lucow Miller PC1000 Woodbridge, Detroit 48207(313) 446-1530; www.garanlucow.com

Roger Smithchairman of executivecommittee

8187

8190

NA

17.Smith Haughey Rice & Roegge PC100 Monroe Center, Grand Rapids 49503(616) 774-8000; www.shrr.com

William HondorpCEO

7976

9289

University of Michigan Health System, Trinity Health,Michigan Professional Insurance Exchange, NorthwesternMichigan College

18.Giarmarco, Mullins & Horton PC101 W. Big Beaver, 10th floor Columbia Center, Troy48084-5280(248) 457-7000; www.gmhlaw.com


70NA

NA

19.Harness, Dickey & Pierce PLC5445 Corporate Drive, Suite 400, Troy 48098(248) 641-1600; www.hdp.com


107114

NA

20.Howard & Howard Attorneys PLLC450 W. Fourth St., Royal Oak 48067(248) 645-1483; www.howardandhoward.com

Mark Davispresident and CEO

6769

110121

BASF Corp., Chrysler Group LLC, Dow Corning, Fifth ThirdBank, KISS, Konami Gaming Inc., Magna Mirrors ofAmerica Inc., Sears Holdings Corp., ThyssenKrupp

21.Secrest, Wardle, Lynch, Hampton, Truexand Morley PC30903 Northwestern Highway, Farmington Hills48333-3040(248) 851-9500; www.secrestwardle.com

Mark MorleyBruce Truexco-chairman, executivecommittee

6261

6264

Chartis, AT&T, Auto-Owners Insurance, Eaton Corp.,Zurich North America, The Hartford, city of FarmingtonHills, State Farm, city of Novi, Progressive Insurance Co.

21.Brooks Kushman PC1000 Town Center, 22nd floor, Southfield 48075(248) 358-4400; www.brookskushman.com

Mark CantorpresidentJames Kushmanchairman and CEO

6264

6467

Ford Motor Co., Lear Corp., Oracle, Masco, HoMedics

23.Kerr, Russell and Weber PLC500 Woodward Ave., Suite 2500, Detroit 48226(313) 961-0200; www.krwlaw.com


5555

NA

24.Maddin, Hauser, Wartell, Roth& Heller PC28400 Northwestern Highway, Southfield 48034-1839(248) 354-4030; www.maddinhauser.com

Steven Sallen, presidentMichael Maddin,president emeritusMark Hauser, CFO

5150

5150

Fifth Third Bank, Huntington National Bank, Bank ofAmerica, The Kroger Co., Garden Fresh Salsa Co. Inc.,CNA, Zurich North America, The Hartford, ChartisInsurance, Fidelity National Title Group, Aurora HomeLoan Services LLC

25.Sullivan, Ward, Asher & Patton PC25800 Northwestern Highway, 1000 Maccabess Center,Southfield 48075(248) 746-0700; www.swappc.com

Anthony Asherpresident and CEO

5047

50NA

Consumers Energy, city of Pontiac Police and Fire, HealthPro/CNA, Iron Workers' Local No. 25, Medical ProtectiveCo., Michigan Educational Employees Mutual, SmithgroupInc., Universal American Corp., University of Michigan,William Beaumont Hospital

This list is an approximate compilation of the largest law firms in Michigan. Total number of attorneys does not include "of counsel." It is not a complete listing but the most comprehensive available. Unlessotherwise noted, information was provided by the law firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Michigan office. NA = not available.

LIST RESEARCHED BY BRIANNA REILLY


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MDC’s minority stake purchase in Donerevolved from a chance meeting of CEOs

BY BILL SHEA


MDC Partners Inc.’s purchase of aminority stake in Southfield-basedW.B. Doner & Co. has its genesis in ahappenstance meeting on aCaribbean tennis court.

The Toronto-based advertisingagency holdingcompany’s pur-chase of anundisclosed“significant mi-nority interest”in Doner “cameabout rather co-incidentally,”said David De-Muth, Donerpresident andCEO. The deal was announced lastweek but closed March 28.

DeMuth met MDC CEO MilesNadal last year while walking off atennis court during a July 4 week-end family vacation in the Ba-hamas, and they got to talking.

“We had a nice conversation forabout a half-hour,” DeMuth said.“We liked one another. We re-mained in contact casually. Ourtalks got more serious.”

After DeMuth shared his visionfor Doner, its business plans andsamples of its work, he and Nadal,along with their lieutenants, even-

tually worked out a deal that hadMDC taking a minority equityshare.

DeMuth and Rob Strasberg, theagency’s co-CEO and also Doner’sCOO, agreed to the sale only if theycould maintain majority ownership.

“That we could maintain somelevel of independence appealed tous,” DeMuth said.

The deal does, however, includea mechanism that allows MDC tobuy more equity in Doner, De-Muth said. But he has no plans tosell his share or step away anytime soon.

The immediate impact of the eq-uity stake sale is that Doner getsaccess to MDC’s global assets andgets an influx of cash that allows itto bolster its digital resources andopen additional offices.

There are no plans to add staffbecause of the deal, DeMuth said.The agency employs about 600, 500in Southfield. The others arespread across offices in Cleveland,London and Newport Beach, Calif.

“We will continue to hire as ourbusiness dictates,” he said. Theagency has hired about 50 peoplein the past six to nine months.

Doner’s peak headcount wasabout 800 to 850 five years ago.

Layoffs came after the agencylost the $150 million Mazda MotorCorp. account in June 2010 to a con-

sortium of WPP Group agencies inCalifornia. Doner had had thework since 1997 — coming up withthe Japanese automaker’s “ZoomZoom” campaign — and it wasabout 20 percent of its business.

While Doner has added worksince losing Mazda, it’s unclearwhether the new work has beenable to replace the $150 million lostin that account. It’s also unclearhow much cash the MDC deal in-jects into the agency.

“We really view this as a part-nership,” DeMuth said. “We thinkit’s going to allows us to acceleratethe good things happening here.”

The agency does creative agencywork and media planning and buy-ing, analytics and production.

Doner is the nation’s third-largest independent ad agency, ac-cording to the Advertising Age Data-Center’s most recent ranking, basedon estimated 2010 U.S. revenue.

Doner had estimated 2010 U.S.revenue of $133 million, placing itbehind U.S. independents RichardsGroup and Wieden & Kennedy. Donerwas the largest independent, basedon estimated U.S. revenue, as re-cently as 2008.

Doner had 2010 estimated world-wide revenue of $142 million, in-cluding its London office, makingDoner the world’s No. 47 agency,according to Ad Age.

Doner’s major clients includePulteGroup Inc., Perkins, Pennzoil Co.,AutoZone Inc., Choice Hotels Interna-tional, Coca-Cola Co., The ColemanCo., DuPont Co. and The UPS StoreCorp., along with work for ChryslerGroup LLC that included the car-maker’s controversial JenniferLopez work for the Fiat brand.

Doner opened in 1937 in Balti-more. Founder Wilfred Broderick“Brod” Doner died in 1990 at age75, and some years later the shopdropped the initials from its name.

The agency has had a long andtumultuous history. It’s long beenone of the biggest independentshops, but its rise from a regionalto a national and then internation-al agency was literally sparked bya fire that destroyed its Southfieldoffice in 1996. The agency used thatoccasion to reinvent its businessmodel and chase high-profileclients such as Mazda.

Strasberg and DeMuth have runthe agency as co-CEOs since amanagement upheaval caused bythe departure of the agency’s for-mer chief, Alan Kalter, in 2009.

After 43 years with Doner,Kalter sold his stake in the agencyto DeMuth, Strasberg and anotherformer exec, Tim Blett. That movecame after a massive layoff at theagency that affected more than 100staffers, and Kalter’s exit cameamid legal issues over pensionfund problems. Blett left theagency last June, selling his 30 per-cent stake back to the agency.

MDC Partners ranked as theworld’s No. 10 agency companybased on 2010 revenue. Ad Age willpublish rankings based on 2011revenue April 30.

MDC’s roster of agencies in-cludes Crispin Porter + Bogusky, theFlorida-based superstar agency.

Advertising Age contributed tothis report.

DeMuth


BY JENNY CROMIE

SPECIAL TO CRAIN’S MICHIGAN BUSINESS

ince launching their Midland-based so-lar company in 2009, Steve Ellebrachtand his partners have built solar pan-

els and installed them on farmhouses, gasstations, funeral homes, garages, church-es, synagogues, restaurants and houses.One of the solar arrays is harvestingenough sunlight to power 30-35 homes as itfeeds energy back into the power grid.

Despite being a startup in the middle ofwhat many experts call an industrywideshakeout, Midland Solar Applications is rid-ing out the turbulence, in part by branch-ing out into other states. The companydoes most of its research and developmenthere but has outposts in Texas and Mis-souri, where state incentives fuel residen-tial and commercial solar installations.

Ellebracht, the company’s president, isreluctant to share detailed financials butsaid Midland Solar is able to achieve grossmargins of 20 percent to 30 percent withincentives from utilities and states.

Like other regions of the country, theGreat Lakes Bay Region — which encom-passes Midland, Saginaw, Bay City andsurrounding areas — saw its share of solardepartures in the past year.

Last fall, Massachusetts-based EvergreenSolar Inc. filed for Chapter 11 bankruptcyand closed its Midland plant, where 40 em-ployees manufactured silicon-carbide-coated filaments used in wafers for solarpanels.

In late December, the CEO of GlobalWattInc. said the San Jose, Calif.-based compa-ny, to reduce overhead costs, was movingits Saginaw operations to Copemish, about30 miles south of Traverse City. Companyofficials, who in 2009 selected Saginawover Texas, had planned to bring 500 jobsand a $177 million plant to the city.

Despite these departures, area economicdevelopment officials — and officials at so-lar companies such as Hemlock Semicon-ductor Group, Dow Solar Solutions, Dow Chem-

ical Co. and Dow Corning Corp. — still say so-lar has a future.

And as Jim Stutelberg, Hemlock’s vicepresident of sales and marketing, pointsout, far from being a startup, his company

has produced polycrys-talline silicon — a rawmaterial used for solarproducts and electronics— for half a century.

A number of othercompanies also feedMichigan’s solar supplychain. According to aMarch 2011 report re-leased by the Environmen-tal Law & Policy Center, the

state has 121 companies in the solar supplychain, with 6,300 jobs tied to the industry.But that was before last year’s shakeout.

Why some succeed, some failWhat accounts for the jumble of good

and bad news? And how well is the indus-try really doing?

Solar experts say answers to both ques-tions depend on whether you’re a con-sumer or investor — and, if you’re a com-pany, your place in the solar supply chain.

Companies such as Hemlock that are onthe materials side seem to be in a good po-sition, said Dan Radomski, vice presidentof new market services at NextEnergy, theDetroit-based nonprofit that is a combina-tion of tech incubator and serviceprovider for companies in emerging ener-gy industries. Also more likely to do wellare companies involved in installations,assembly equipment and equipment for


Council majoritymade brave vote;hard work begins

Late last month, the Rev. JesseJackson visited Crain offices to talkabout Detroit’s financial crisis.

Jackson, who is based in Chicago,lobbied the Detroit City Council to

reject a consentagreement withthe state; he hasbeen critical ofMichigan’semergencymanager law.

One thing fromour freewheelingdiscussion stuckwith me:Jackson’s

passionate assertion that the rest ofMichigan wished it could separateDetroit from the rest of the state.Detroit was like a “sixth finger” and itneeded to be part of the whole.

When Rick Snyder campaigned forgovernor, he made it clear in stops allover the state that he thought ahealthy Detroit was critical to ahealthy Michigan. But he also made itclear in recent weeks that he had nointerest in appointing an emergencymanager to run the financially crippledcity.

Before moving to Detroit, I lived infour other Michigan cities. Theattitudes toward Detroit varied, butone depiction of Detroit lingers: IfMichigan is the mitten, tilt it slightly tothe right, and all the money falls tothe corner — Detroit. That sure isn’thow most Detroiters view their city,which has great difficulty managingeven basic services.

Detroit’s best chance for asustainable future — and betterdelivery of basic services — took a bigstep last week. And, ironically (atleast for Jackson), it was anotherpastor — actually a group of them —that helped to give five Detroit CityCouncil members the courage to votein favor of what Jackson opposed.Leaders from the council of BaptistPastors of Detroit and Vicinity toldcouncil members they favored theconsent agreement over theappointment of an emergencymanager.

That angered — and stunned —what I think of as the professionalprotestors in the room. And fivecouncil members, in spite of threatsfrom those protestors to their politicallives, took the 5-4 vote that will finallyallow Detroit to move forward.

Of course, now the hard work reallybegins. Snyder and Mayor Dave Bingwill put the advisory financial teamtogether, appoint a new CFO and aproject manager to start the city on avery tough path.

It sounds kind of familiar. Like the domestic auto industry

before it, Detroit has a toughrestructuring ahead. But it will emergestronger as a better place to live andwork.


PUBLISHER’S NOTEBOOK

Mary Kramer

Contact MaryKramer atmkramer

@crain.com.

Finding bright spotsStrategies help solar companies hang on as industry tightens

THOMAS SIMONETTI

Midland Solar Applications, whose president is Steve Ellebracht, is riding out the turbulent market inpart by branching out into other states. Most of its research and development is done in Michigan.

S

Stutelberg

See Solar,

Jackson

COURTESY OF MIDLAND SOLAR APPLICATIONS

This solar array by Midland Solar Applicationsproduces enough power to supply 30-35 homes.


utility-scale solar projects.Companies that are likely to

struggle will be solar cell and mod-ule manufacturers — especially ifthey focus on domestic marketsonly, Radomski said.

Industry experts say the price ofsolar panels dropped about 50 per-cent in 2011 alone. Part of the rea-son is increased competition fromChinese manufacturers, whichhave received considerable sup-port from their government.

Solar’s growing pains are notunlike what is typically seen inemerging industries, said ChrisRizik, CEO and fund manager ofthe Renaissance Venture CapitalFund in Ann Arbor and past chair-man of NextEnergy. Initial highercosts, developing technologies anda lack of market readiness oftenfactor in, he said.

“We’ve come a long, long wayeven in the last 10 years,” Rizik said.“And at some point in the not-too-distant future, we’ll see solar com-petitive with other sources of power— without needing subsidies.”

Bright spots in the regionIn the meantime, many solar

companies in the Great Lakes Baysurvive by supplying products andservices to other industries. Manyof the region’s larger companies —rooted in chemical and automotivemanufacturing — are well-diversi-fied across sectors other than solar,said Ryan Richards, marketingmanager at economic developmentorganization Midland Tomorrow.

For some companies, solar was“an additional market that madesense, given the markets they werealready in,” Richards said.

Late last year, Dow Solar Solu-tions began selling Dow Power-house solar shingles — a major ini-tiative to turn an otherwiseconventional-looking roof into asource of electrical power. Theshingles were first made availablein Colorado.

Installing the solar shingles on astandard home can cost $10,000 to$15,000 more than using conven-tional shingles, said JanePalmieri, Dow Solar vice presi-dent. The company estimates thatthe shingles will reduce energycosts 50 percent and pay for them-selves in five to 12 years.

Several miles away from Mid-land in Saginaw County’s ThomasTownship, Hemlock Semiconduc-tor Group continues to producepolycrystalline silicon. The com-pany is a joint venture of DowCorning and two Japanese compa-nies, Shin-Etsu Handotai Co. Ltd. andMitsubishi Materials Corp.

Even as some other global man-ufacturers of polysilicon have con-sidered slowing production be-cause of oversupply in recentmonths, Hemlock continues to ex-pand. By the end of 2012, officialsexpect to increase capacity 28 per-cent when a plant opens inClarksville, Tenn. Hemlock alsohas spent $2.5 billion to expandproduction in Thomas Township.

Mark Zhu, an investment man-ager with Ann Arbor-based DTE En-ergy Ventures, a subsidiary of DTE En-ergy Co., said that despite overseascompetition, Hemlock still has one

of the lowest production costs inthe industry and a long history inthe business.

Rolling out the solar red carpetWithin a mile of Hemlock’s

world headquarters is the new 231-acre Great Lakes Solar TechnologyPark, which opened last Novemberand has room for about half a dozencompanies. Officials with SaginawFuture, that city’s economic devel-opment organization, hope thepark will attract more companiesto the region’s solar supply chain.

As of April, the park had no ten-ants. But Saginaw Future Presi-dent JoAnn Crary said Norcross,Ga.-based Suniva Inc. plans to locatea $250 million manufacturingplant in the park when market de-mand prompts the solar cell andmodule manufacturer to build asecond location.

Since late last year, state tax in-centives previously available tocompanies such as Suniva andDow Solar have changed, said Kar-la Campbell, manager of state taxincentives at the Michigan Econom-ic Development Corp.

Currently, no state tax incen-tives specific to solar power exist.And because of changes in thestate’s tax code, credits from theMichigan Economic Growth Authorityalso are no longer available.

But companies including thosein the solar industry are eligible toreceive performance-based loansand grants through the MichiganBusiness Development Program,Campbell said. A total of $100 mil-lion has been appropriated for thatprogram and the Community Revital-ization Program, aimed at urban ar-eas. Companies also may be eligi-ble for state tax incentives offeredin renewable-energy renaissancezones. The Michigan Strategic Fundcan designate such a zone, wherecompanies are exempt from hav-ing to pay property taxes.

To make solar installations at-tractive for residential and com-mercial customers, Midland SolarApplications relies on utility-spon-sored incentive programs as wellas state and federal incentives.

But more incentives are avail-able in states such as Texas andMissouri, where the company cur-rently does most of its solar instal-lations, said Ellebracht, a formerglobal research and developmentdirector at Dow Chemical.

“We’re doing our research here(in Michigan), but we’re doing ourdesign and (installation) in otherstates,” he said. If the companywere focused solely on installationsin Michigan, Ellebracht said, “we’dbe laying guys off right now.”

Midland Solar employs about adozen full-time employees inMichigan, Texas and Missouri, inaddition to contract workers suchas electricians and installers.

Initially, Ellebracht and his part-ners were able to take advantage ofan incentive program in Michiganoffered by Jackson-based Con-sumers Energy Co. called the Experi-mental Advanced Renewable Pro-gram.

The program is one way that thecompany works to meet Michi-

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Solar: Finding strategies■ From Page 21

See Next Page

20120409-NEWS--0022,0023-NAT-CCI-CD_-- 4/5/2012 4:05 PM Page 1

The Seidman College of BusinessM.B.A. Programs

Whether you have recently graduated from college or are seeking newprofessional opportunities, adding a Grand Valley State University M.B.A.degree to your resume makes you a better-prepared and more desirablejob candidate. Apply now to set yourself apart from the competition.Call (616) 331-7400 or visit gvsu.edu/grad/mba to learn more.

Association of MICHIGANFocusing the power of small business.

SMALL BUSINESSA

The Michigan State Housing Development Authority (MSHDA) and Small Business Administration of Michigan (SBAM) are among the organizations helping neighborhoods, cities, regions and downtowns promote “place” as a way to spur economic development and restore our state to prosperity.

What Is Placemaking?

People, companies and talent do not move to specific communities – they move to regions. Thriving communities and successful regions are places that are attractive to employees, places where connections can happen, where productivity and creativity increase, and where professional networks foster collaboration and innovation.

Our state is blessed with Pure Michigan “placemaking” success stories – from beautiful Campus Martius Square in Detroit to the chic cafes and boutiques in Grand Rapids to the Upper Peninsula splendor of Presque Isle Park in Marquette.

We need more. Our job begins by working together to build quality places.

“The Power of 10”

Any great city needs to offer at least 10 great places, each including at least 10 interesting things to do. A place to sit. Playgrounds to enjoy. Art to touch. Music to hear. Food to eat. History to experience. People to meet.

Ideally, these activities are unique to that particular spot and are interesting enough to keep people coming back. By starting placemaking at the smallest scale, it’s possible to accomplish big things.

We Need to Revitalize Michigan’s Sense of Place

Powerful collaborative partnerships are underway to achieve Michigan’s placemaking objectives.

Proponents of these efforts will gather April 23-25 to address Michigan’s need for placemaking policy during the Building Michigan Communities Conference in Lansing.

With over 1,700 attendees, the Building Michigan Communities Conference has become the largest conference of its kind in the nation. The conference is attended by elected officials, service providers, nonprofit and for-profit developers, realtors and financiers.

Learn More

Not attending the conference? No problem! On April 23rd, visit the debut of MIplace.org – Michigan’s one-stop shop for everything about placemaking – what it is, where it’s happening across the state, and how to get started.

The site offers inspirational first-hand accounts of Pure Michigan placemaking success stories, rich photography and videos, and the opportunity to engage in lively group discussions through the MIplace Facebook page at facebook.com/MIplace2012.

Together, we can help shape Michigan’s future through placemaking.

Michigan Communities Are Dancing To A New BeatOur state is at the forefront of a national

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To learn more about Michigan placemaking, go to: michigan.gov/mshda



gan’s Renewable Energy Standardrequirements, established as partof the Clean, Renewable and Effi-cient Energy Act, passed in 2008.The law mandates that 10 percentof the state’s energy come from re-newable sources — including solar— by 2015.

To achieve that standard, thestate’s electric providers, such asConsumers Energy and DTE, arerequired to include renewablesources in their portfolios.

Michigan utilities are not re-quired to supply a certain percent-age of that renewable energy fromsolar sources, “so that makes it alittle bit dicier for solar,” Elle-bracht said.

Along with the Consumers En-ergy program, Midland Solar Ap-plications offered solar installa-tion incentives through a DTEpilot program called SolarCur-rents. But that pilot program end-ed in May 2011 after the DTE metits goal of five megawatts of solar-generated power, said Scott Si-mons, a DTE Energy spokesman.While in place, the program sup-plied installation incentives for620 homes and small businesses.

Despite these and similar pro-

grams, Consumers Energy andDTE officials say the bulk of theirrenewable energy will come fromwind, because upfront capitalcosts are still higher for solar, Si-mons said.

As for market conditions in thenext few years, Ellebracht acknowl-edges that competition is likely toincrease for solar installation com-panies like Midland Solar.

The fact is that solar power,while viable, still requires incen-tives and subsidies to make theprice competitive with electricpower generated from traditionalsources such as coal-fired powerplants, Ellebracht said.

In the interim, more businessfailures are likely, said StephenForrest, vice president of researchat the University of Michigan in AnnArbor. Forrest is also a researchpartner for New Jersey-based Glob-al Photonic Energy Corp. and on theboard of directors of Santa Clara,Calif.-based Applied Materials, asupplier for solar manufacturers.

Despite some of the recent dark-er days, Forrest said, the future re-mains bright for the solar industry.

It is, he notes, “the one truly un-limited source of energy we haveon the planet.”

From Page 22

20120409-NEWS--0022,0023-NAT-CCI-CD_-- 4/5/2012 4:07 PM Page 2

Your customers are

GLOBAL.Need to gear up?



Group looks to make a splash by making Grand River more rapidBY MATTHEW GRYCZAN


A low-key but high-poweredgroup of West Michigan influencersand business leaders thinks it’s timeto put the rapids back in the Grand,restoring a two-mile section of the

namesake riverflowing throughdowntownGrand Rapids toattract whitewa-ter enthusiasts.

Over the nextfew months, anumber of mov-ing parts — in-

fluential organizations, founda-tions and city departments — willstart assembling to raise funds fora $15 million to $20 million projectexpected to transform a section ofMichigan’s longest river into achurning whitewater course.

But backers say the restorationisn’t just for paddlers. Pedestrianswill be able to meander along river-bank walkways after floodwalls aretorn down. Anglers should see im-proved catches, and amenities willbe added to foster competitive andcollegiate rowing.

It may take three years to com-plete the restoration after govern-ment agencies approve engineeringplans, but high-quality projectstake time, proponents say.

“This isn’t just a ‘Let’s rearrangesome stuff and put a boulder inhere or there,’ ” said Mike Stevens,president and CEO of FoundersBrewing Co. in Grand Rapids and anavid supporter of river restoration.“It’s taking the Grand River as weknow it and returning it back to awild, scenic river.”

Said Chris Muller, co-founder ofa 501(c)(3) organization called GrandRapids Whitewater that is a force be-hind the restoration: “It’s very rareto have such a dynamic river run-ning through an urban core.

“The areas where you have ac-

tivities such as great fishing andkayaking would be occurring nat-urally in very public areas, such asin front of” the DeVos Place conven-tion center.

Through the newly formed WestMichigan Environmental LeadershipNetwork, influencers such as MikeVanGessel, president of RockfordConstruction Co. in Grand Rapids,and Ellen Satterlee, CEO of the WegeFoundation in Grand Rapids, have be-gun conversations with businessleaders and like-minded organiza-tions to solicit financial support.

VanGessel, co-chairman of thenetwork with Satterlee, said thegroup of about 50 represents a vari-ety of metro Grand Rapids organiza-tions and has begun to organize intoteams to tackle the three main legsof the restoration: whitewaterrapids, riverbank trails and rowing.

He said the network is still wait-ing for the results of a $50,000 engi-neering study conducted by River-Restoration.org in GlenwoodSprings, Colo., which already hassubmitted one plan with a budgetbased on an October river survey.

Muller, who founded GrandRapids Whitewater with ChipRichards, said the survey confirmedwhat everyone had surmised: Thesection of the Grand River flowingthrough central downtown is “asflat as a tabletop” from more than100 years of exploitation by settlers

along its banks.“From the Fourth Street dam

down to Fulton Street, they essen-tially scoured out everything,”Muller said. “But we will restorethat section, which will make it agreat spawning ground for allsorts of species of fish.”

Plans call for removing theFourth Street dam, built more than100 years ago to maintain water lev-els but now without a commercialpurpose. The dam concentratessteelhead and salmon that migrateupriver during spawning season,making it a favorite spot for anglersand earning the city a place in aField & Stream magazine ranking afew years ago as one of the mostpopular U.S. fishing cities.

The RiverRestoration surveyalso found an obscured treasure: ariver channel cut into the bedrocknorth of the Fourth Street dam tothe Ann Street bridge that will formcascades once the dam is removed.“It will be phenomenal to look at,”Muller said, “and you have justgained another mile of historicalrapids without a lot of work.”

At about the same time thatRiverRestoration was conductingits survey, Farmington Hills-basedNTH Consultants Ltd. was taking sam-ples of sediments behind theFourth Street dam.

NTH engineers found a surpris-ingly low quantity of sediments be-

hind the dam, and the samples didnot show high levels of pollutants.

“It is a great opportunity for thecity of Grand Rapids, and it has anumber of pro-business compo-nents,” said VanGessel of Rock-ford Construction.

At the beginning of March,Grand Rapids Whitewater made apresentation to the EnvironmentalLeadership Network, with somediscussions of preliminary blue-prints and budgets. Stevens saidthe preliminary plans were sentback to RiverRestoration for somescaling back, but the project couldbe bracketed in the $15 million-to-$20 million range.

That would put it on par withhigher-profile whitewater coursessprinkled throughout the country,and one of the few that makes itsway directly through a larger city,Muller said.

S2o Design, a Lyons, Colo.-basedengineering firm that specializesin planning whitewater parks,said larger parks such as the Yam-pa River and Gore Creek parks inColorado can generate more than$4 million annually in directspending. Smaller venues such asthe Cuyahoga River park in Kent,Ohio, generate direct spending of$500,000 to $750,000 a year.

Matthew Gryczan: (616) 916-8158;[email protected]. Twitter:@mattgryczan

JON BROUWER

Chris Muller co-founded Grand RapidsWhitewater with a goal of restoringthe natural flow of the Grand Riverthrough downtown.

VIDEO� Crain's

talks withChris Mullerabout his plans,crainsdetroit.com/video


Belfor Holdings Inc.Based: BirminghamGermany operations: Twenty-six offices

throughout Germany, including those inHamburg, Aachen, Berlin and Frankfurt.

Employees: 425Products: Services include building

restoration, machinery restoration, fire andwater damage repair and data recovery.

Top executive: Elvir Kolak, managing di-rector.

BorgWarner Inc.Based: Auburn HillsGermany operations: Eight facilities, in-

cluding those in Heidelberg, Kirchheim-bolanden and Neuhaus.

Employees: Not publicly disclosed.Products: Ignition technology, diesel cold-

start technology, turbochargers, dual-clutchmodules and other automotive systems.

Top executive: Robin Kendrick, vice presi-dent and general manager of BorgWarnerTransmission Systems; and Brady Ericson,vice president and general manager of Borg-Warner BERU Systems.

More information: More than 30 percent ofthe company’s 2011 net sales, or $2.2 billion,came from Germany.

Chrysler Group LLCBased: Auburn HillsGermany operations: Fiat Group Automobiles

Germany AG, the Frankfurt-based subsidiaryof Chrysler’s Italian parent, Fiat S.p.A., sharesplatform technology with Chrysler for vehi-cles sold in Europe. Other FGAG entitiesbuild utility vehicles, buses, and construc-tion and farm machinery.

Employees: About 6,400Products: Brands within FGAG include

Abarth, Alfa Romeo, Fiat, Fiat Professional,Jeep and Lancia.

Top executive: Martin Rada, market gener-al manager.

More information: There are about 410 com-pany-owned dealerships in the country.

Con-way Inc.Based: Ann ArborGermany operations: Menlo Worldwide Logis-

tics is the global logistics subsidiary of Con-way. It has operations in Frankfurt andBerlin, and a warehouse in Sohren for auto-motive customers.

Employees: 30Products: Supply chain management, from

sourcing of raw materials to the distribu-tion of finished goods.

Top executive: Tony Gunn, managing di-rector in Europe.

Domino’s Pizza Inc.Based: Ann ArborGermany operations: Six pizza delivery

stores, mostly in Bonn.

Employees: 35Products: Pizza chain restaurant offerings.Top executive: Lance Batchelor, CEO of

Domino’s Pizza Group Ltd.More information: Domino’s opened its Ger-

many operations in 2010 and is expanding.

Dow Chemical Co. Based: MidlandGermany operations: Dow Olefinverbund

GmbH, a wholly owned subsidiary of Dow Ger-many Inc., has facilities in Böhlen, Schkopau,Leuna and Teutschenthal.

Employees: About 1,900Products: Base chemicals used to produce

a wide range of products.Top executive: Ralf Brinkmann, president

and CEO of Dow Germany.

Dow Corning Corp.Based: AuburnGermany operations: Dow Corning GmbH is in

Wiesbaden, the site of one of Dow Corning’slargest manufacturing plants in Europe.

Employees: About 350Products: Liquid silicone rubber, high con-

sistency rubber and lubricants used in theautomotive, electronics and construction in-dustries.

Top executive: Elisabeth Ganss, managingdirector of the Wiesbaden site.

Ford Motor Co. Based: DearbornGermany operations: Startseite Ford-Werke

GmbH, or Ford of Germany, is headquar-tered in Cologne and has a body and assem-bly plant in Saarlouis.

Employees: About 24,200Products: Vehicles such as the Focus, C-

Max C214 and Kuga, as well as vehicle com-ponents.

Top executive: Bernhard Mattes, chairman,Ford of Germany.

More information: The Ford Research Cen-ter in Aachen is Ford’s only research centeroutside the U.S.

General Motors Co.

Based: DetroitGermany opera-

tions: Adam OpelAG, a whollyowned GM sub-sidiary, is basedin Rüsselsheim.There are alsoproduction sitesin Bochum,Kaiserslautern

and Eisenach. Employees: About 40,000Products: Vehicles under the Insignia, As-

tra, Zafira and Corsa brands. Top executive: Karl-Friedrich Stracke,

president of GM Europe and chairman ofOpel’s board.

More information: Opel had a Europeanmarket share of 6.1 percent in 2011, havingsold more than 1.2 million cars.

Kelly Services Inc. Based: TroyGermany operations: Kelly Services GmbH is

based in Hamburg and has operations inmost of the major cities across the country.

Employees: About 140Products: Offers recruitment services in

temporary, contract and permanent roles ina wide range of industries. Staffing servicesinclude finance, engineering, top manage-ment, industrial, office and scientific.

Top executive: Ralf Heiden, general man-ager.

Lear Corp. Based: SouthfieldGermany operations: Operates in 19 locations,

including Munich, Bremen and Cologne. Employees: About 5,500Products: Seat systems, wire harnesses,

terminals and connectors, and electronics. Top executive: Not publicly disclosed.

Penske Automotive Group Based: Bloomfield HillsGermany operations: Operates 38 dealer-

ships throughout Germany, including inFrankfurt, Hamburg, Munich and Aachen.

Employees: About 250Products: New and used automobiles, par-

ticularly the Volkswagen, Toyota, Lexusand Audi brands. Provides a range of auto-

motive services and arranges financing.Top executive: No top executive is based in

Germany.

Syntel Inc. Based: TroyGermany operations: Has sales offices in

Munich and Stuttgart.Employees: Not publicly disclosed.Products: Provides IT and business

process outsourcing services. Top executive: Amit Chatterjee, senior

vice president and Europe head.More information: Operates as Syntel Europe

Ltd.

TRW Automotive Holdings Corp.Based: LivoniaGermany operations: TRW KFZ Ausrüstung

GmbH is headquartered in Neuwied, and has17 manufacturing sites in Germany, includ-ing Düsseldorf, Koblenz and Wuescheim.

Employees: About 12,200Products: Steering systems, brake parts,

chassis modules and other auto parts.Top executive: Francois Augnet, vice presi-

dent, TRW Automotive Aftermarket, Eu-rope and Asia Pacific.

More information: The bulk of TRW’s 2011sales — $8 billion, or 49 percent — are in Eu-rope. Its biggest customer is Volkswagen.

Trubiquity Inc.Based: TroyGermany operations: The European head-

quarters is in Mannheim. There are officesin Bonn and Berlin, and a data center inFrankfurt.

Employees: 42Products: A variety of software products

that serve the automotive, aerospace, manu-facturing, consumer goods, finance, energy,health care and retail industries.

Top executive: Peter Thurner, managingdirector.

Valassis Communications Inc.Based: LivoniaGermany operations: One office in Hamburg.Employees: 15Products: Coupon settlement and analysis

services.Top executive: Hans-Joachim Waldrich,

managing director

Visteon Corp.Based: Van Buren TownshipGermany operations: The European head-

quarters are in Kerpen. A Berlin plant man-ufactures automotive interior components.

Employees: About 800Products: Interiors manufacturing, and cli-

mate, electronics, and lighting engineering.Top executive: Joint managing directors

are Nurdal Kücükkaya, Christian Feltgenand Thomas Penn.

— Compiled by Meghana Keshavan

Month ly

WHERE MICHIGAN DOES BUSINESS

BorgWarner’s plant in Kirchheimbolanden

TRW Automotive manufacturing in Koblenz

General Motors’ Opeloperations in Kaiserslautern

GermanyApril 9, 2012 CRAIN’S DETROIT BUSINESS Page 25

ermany has long been Europe’s strongesteconomic power; it has a gross domesticproduct of about $3.1 trillion — the fifth

largest in the world.The country’s leading role does not always sit

well with its citizens, who have protested callsfrom eurozone finance ministers for Germany toincrease bailout funds for countries such as Italy,Spain and Greece.

Germany has a highly skilled, technologicallyadvanced workforce and exports vehicles, ma-chinery, chemicals, computers, electronics, phar-maceuticals and metals.

France and the United States are Germany’stop export targets, whereas most of the country’simports come from China.

Crain’s monthly World Watch re-port showcases companies that arealready international businessleaders in growing global markets— and those that are expanding op-erations.

Each World Watch Monthly fea-tures a different country. If youknow of a Michigan company thatexports, manufactures abroad orhas facilities abroad, email JennetteSmith, managing editor, [email protected].

Coming up in May: A look atChile and Argentina.

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WeWeWW hheaear yoyou,u, P Patata . WhWhicich h isis t thehe r reaeasoson nn PrPrioioriritytyt H Heaeaaltltthh hhh ofofofoffefefefefersrssssrss fl flfl flflfl flflexexexexexexexe ibibibibibibbblelelelelee f f fffununununnnndididdiddd ngngnggnnopopopppo tit onono s s anandd a a fufuulllll rranangege o of f plplanana s s toto m meeeeet t yoyooourur b bbbbududududdgegegegeeg t.tt.t PP PP PPPlululululuuulus ss s s sss wewewewewewew ’v’v’v’v’ve e e exexexexxexexexpapapapappapapandndndndndnddndndedededededededouououour r r weweew llnenen ssss p pplalansnss s so o yoyoyou’u’’llll h havavve e hehealalththhthieieeeier r r emememememplpplpp oyoyoyoyoyyoyoyeeeeeeeeeeeeeeees—s—s—s——s ananananannd d d dd d a a a aa aa hehehehehehehehealalalaalalalaa ththththththththieieieieieieieier r r r r r rbobob tttttomom l linne.e. F Foror m morore e ininnfoformrmatatioion,n, c cononntatatatataccctctct y yyyyyouoouououououuour r r rrrrr lololololololocacaccaacal l lll ininnininnnndededededdedeepepepepepepependndndndndndndnddenenenenenenenent ttt t t t agagagagagagagageneenenenenenenent ttt t t ttoror v visisititt uus s atat prprrioioriritytyhehealallthth.c.comom.

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ACQUISITIONSTriMas Corp., Bloomfield Hills, a diver-sified manufacturing holding compa-ny, acquired 70 percent of Arminak &Associates LLC, Azusa, Calif., a manu-facturer of packaging for cosmeticsand household products. It will becomea subsidiary of TriMas’ packaging seg-ment, Rieke Corp., Auburn, Ind.

CONTRACTSChildren’s Hospital of Michigan Foun-dation, Detroit, has selected TheBerline Group Inc., Bloomfield Hills,as its marketing communicationsagency of record.Stout Systems Development Inc., AnnArbor, signed agreements with Sam-sung Information Systems America,San Jose, Calif., to provide softwaredesign and development services.Pi Innovo, Plymouth, an internationaldesigner and developer of electronicssystems, chose Broadsword SolutionsCorp., Waterford Township, an engi-neering consulting firm, to assist PiInnovo in pursuing its mission forcontinuous improvement, using theSoftware Engineering Institute’s Ca-pabilities Maturity Model Integration.Clear Vision Strategy LLC, Royal Oak,a business coaching firm, has joinedthe Business Improvement Team LLC,Bloomfield Hills, a consortium of in-dependent consulting firms.Ecology Coatings Inc., Warren, an-nounced it is working with WhitlamLabel Co. Inc., Center Line, on the de-velopment of a sustainable labelsprogram.

EXPANSIONSCitistaff Inc., Troy, signed a five-yearlease extension and expanded its facil-ity by 2,000 square feet. Citistaff plansto add 10-15 employees for IT and ar-chitectural services. Telephone: (248)267-9800. Website: www.citistaff.com.

Ross Mortgage Corp., Royal Oak,opened new offices at 7151 N. Main St.,Clarkston, and 8235 Mason Drive,Suite A, Newaygo. Telephone: Clark-ston, (248) 625-9929; Newaygo, (231)452-6550. Website: www.rossmortgage.com.Metro Consulting Associates LLC,Belleville, opened a new office at 719 Griswold St., Suite 820, Detroit.Website: www.metroca.net.NSF International, Ann Arbor, an in-dependent organization that writesstandards and certifies products forfood, water and consumer goods,opened a new office in Frankfurt, Ger-many, to offer services in Europe, theMiddle East and Africa. Website:www.nsf.org.

JOINT VENTURESSino Ambassadors, Detroit, a consul-tancy that provides capital and accessto China for U.S. tech firms, hassigned a memorandum of understand-ing with Hua Gong Technologies, aChinese manufacturer of high-endlaser, optoelectronic and holographicequipment. The deal calls for a tech-nology park to be built in Wuhan, thecapital city of Hubei province, centralChina’s manufacturing hub. Con-struction will be a joint venture be-tween Hua Gong Technologies andSino Ambassadors.

MOVESOgletree Deakins Nash Smoak &Stewart PC, a labor and employmentlaw firm, moved from Bloomfield Hillsto 34977 Woodward Ave., Suite 300,Birmingham. Website: www.ogletreedeakins.com.

NAME CHANGESSFS Services, Ypsilanti, a provider ofcleaning, repair and fabrication ofwindow blinds, changed its name to

Aria On-Site. Telephone: (855) 261-2742.Website: www.ariaonsite.com.

NEW SERVICESCommunity Housing Network, Troy,has expanded its services to offer freeforeclosure counseling for homeown-ers in Oakland and Macomb counties.Telephone: (248) 928-0111. Website:www.communityhousingnetwork.org.Domino’s Pizza Inc., Ann Arbor,launched its Android smartphone or-dering application, available in theAndroid Marketplace. Website:www.dominos.com.Hino Trucks, Novi, and Amthor Inter-national, Gretna, Va., have formed atank-body program for the refined-fuel, propane, fire prevention, vacuum/septic and all related tank in-dustries. Website: www.hino.com.

STARTUPSLaborNow Inc., a construction, laborand skilled-trades worker staffingcompany, 277 Gratiot Ave., Suite 520,Detroit. Telephone: (313) 475-3437.Website: www.getlabornow.com. Vigilant Inc. a security company, 277 Gratiot Ave., Suite 520, Detroit.Telephone: (313) 475-3437. Website:bevigilant.com.

DIARY GUIDELINESSend news releases for BusinessDiary to Departments, Crain’sDetroit Business, 1155 GratiotAve., Detroit, MI 48207-2997 orsend e-mail to [email protected]. Use any Business Diaryitem as a model for your release,and look for the appropriatecategory. Without completeinformation, your item will not run.Photos are welcome, but we cannotguarantee they will be used.

BUSINESS DIARY


BY JAY GREENE


ncologist Jeffrey Margolis, known forhis business savvy as much as hismedical acumen, is behind what some

say may be the first non-hospital owned,integrated multispecialty medical groupin Michigan.

“As health care changes, we need to pro-vide higher-quality care and deliver carein a more integrated way,” said Margolis,president of 3-month-old, Southfield-basedMichigan Healthcare Professionals PC. “Wecan do that (with less cost) as a physician-led, physician-owned medical group.”

Last December, Margolis’ Oakland Med-ical Group joined forces with three otherphysician organizations — Millennium Med-ical Group, Comprehensive Medical Centerand 21st Century Oncology of Michigan — toform Michigan Healthcare Professionalswith more than 100 offices.

While the four companies have notmerged, they have combined operationsthat include physician compensation,medical billing, employee benefits, humanresources and group purchasing, saidDavid Rogers, who represents Margolisand is a partner with Royal Oak-basedRogers Mantese & Associates PC.

The medical group plans to combinepension plans and jointly purchase med-ical malpractice insurance for its physi-cians this year, Rogers said.

Margolis said the medical group, whichnow includes 250 employed physiciansand another 850 employees, ultimatelywas formed to improve quality, reducecosts, contract with health insurers, devel-op joint business ventures and prepare forhealth care reform.

Mark Kopson, chairman of the healthcare practice with Bloomfield Hills-basedPlunkett Cooney PC, saidvery few non-hospitalaffiliated physician or-ganizations in South-east Michigan are pur-suing a full integrationapproach.

“There are a lot ofphysician organiza-tions that are workingtoward integration tobecome part of (BlueCross Blue Shield ofMichigan’s) physiciangroup incentive pro-gram” or to become apatient-centered med-ical home, Kopson said.

But Michigan Healthcare may be thefirst in Michigan to pursue a fully inte-grated, non-hospital owned employedmedical group capable of fully contractingwith insurers on prices, Kopson said.

Margolis said one of the goals over the


� MarshaRappley, M.D., deanof the MichiganState UniversityCollege of HumanMedicine, has beennamed chair elect forthe Association ofAmerican MedicalColleges Council ofDeans, beginning inNovember.

� KimberlydawnWisdom, M.D., hasbeen appointed byPresident Obama toserve as a memberof the Advisory Groupon Prevention, HealthPromotion, andIntegrative andPublic Health.

Wisdom is seniorvice president ofcommunity health

and equity for Henry Ford Health System,where she also serves as chief wellnessofficer. She is board certified inemergency medicine, was the foundingdirector of the Institute of MulticulturalHealth at Henry Ford, and is anassistant professor in the department ofmedical education at University ofMichigan Medical School.

� BernadetteGendernalik, D.O.,has been namedpresident and chiefof the medical staffat McLaren-Macomb, a 288-bedhospital in Mt.Clemens that is partof the McLarenHealth Care Corp.system.

Gendernalik has practiced familymedicine at the hospital since 1988and is an assistant professor in theDepartment of Family and CommunityMedicine at the Michigan StateUniversity College of OsteopathicMedicine.

� Two new members have beenelected to the board of the BotsfordHospital in Farmington Hills: Jerry Ellis,mayor of Farmington Hills between2007 and 2011, and Kathleen McCann,chief judge of the 16th District Court inLivonia.

� Barb Medvec,senior vice presidentand chief nursingofficer at theDearborn-basedOakwood HealthcareSystem, has beenawarded theNightingale Awardfor Excellence inNursingAdministration.

Kari Szczechowski, R.N., also ofOakwood, was awarded a NightingaleAward for Nursing Education.

The Nightingale Awards are given bythe Oakland University School of Nursingand are the only statewide awards fornursing in Michigan.

People

Ext ra

Coming together, going it alone

Wisdom

Gendernalik

Medvec

Medical group forms without hospital affiliation

O

next year will be to fully connect thegroups’ more than half dozen electronicmedical record systemsand apply for financialincentives fromMedicare and Medicaidto defray installationcosts.

“We will allow eachspecialty to choose theirown (electronic medicalrecord system),” Margo-lis said. “Our job is to in-tegrate the (systems)with (a Health Level Seven International) inter-face. We will then push the data into healthinformation exchanges.”

Another goal this year is for each spe-cialty to agree on common clinical bestpractices.

By agreeing to practice evidence-basedmedicine and having patients on the sameelectronic medical record platform, thephysicians can eliminate duplication ofexpensive laboratory and imaging testsand provide patient care coordination thatshould improve quality and reduce costs,Margolis said.

“In the past, each physician did their ownthing, ordered tests” and referred patientsto other specialists and hospitals, said Mar-golis, who said this practice had led to ineffi-ciencies and runaway health care costs.

Margolis said when Michigan Health-care has collected enough data to provebetter patient outcomes and lower costs,the group will be able to negotiate more fa-vorable rates with health insurers.

“Insurers will come to us,” Margolis said.“We don’t have a timetable. The key is to getthat data and be able to tell a story throughquality improvement and cost reductions.”

However, before medical groups can ap-proach health insurers to negotiate prices,Kopson said, they need to be clinically andfinancially integrated.

Medical groups do this by adopting aphysician employmentmodel, conducting cen-tralized billing and col-lections, providing com-mon employee benefitsand agreeing to bestclinical practice guide-lines, he said.

“It is very difficultfor physicians to agreeon a common compen-sation system,” Kopsonsaid, especially whenthere are so many spe-cialties involved.

Margolis said leadersof the four medicalgroups spent a year

planning and developing the model forMichigan Healthcare. The groups alreadyhad agreed on compensation systems andwanted a unified system to work, he said.

See Group,

Insurers will cometo us. ... The key isto get that data and

be able to tell a storythrough quality

improvement andcost reductions.

Jeffrey Margolis, M.D., MichiganHealthcare Professionals PC

”

“

Kopson

JEFF JOHNSTON/CDB

Rappley


S E R I E S 9HEALTH CARETRANSFORMAT IONAn Educational Series on Optimizing Health Care Value

The bottom line is transforming lives.Typically in my articles, I relate how we’re helping businesses achieve a better bottom line through bettermanagement of health care costs. This time, though, I would like to tell you about Joanne. Her story showsus how innovation helps the real bottom line—saving lives and families.

A busy mother of three active boys, Joanne was diagnosed with cancer of the abdominal lining five years ago. Subsequent surgery was successful, but her prognosis was sobering. There was a 100 percent chance of the cancer coming back, which it did.

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Bottom line? Transforming lives, one at a time.

PATRICIA A. MARYLAND, Dr.PHPresident and CEO of St. John Providence Health Systemand Ministry Market Leader, Ascension Health Michigan

Dr. Maryland would be happy to hear your thoughts and questions about health care reform.

Write her at [email protected].

Stockc phoph tototo: GeGe Gettyy Images


Health Care Extra

“We have many doctors who aretops in their fields and are moti-vated to control their own des-tiny,” said Margolis, who also waspresident of Beaumont Oncology Net-work, which until late last yearheld a contract to develop oncolo-gy programs at Beaumont Hospitalin Royal Oak.

Mark Kelley, M.D., CEO of De-troit-based Henry Ford MedicalGroup, a 1,200-physician employedmodel integrated physician groupowned by Henry Ford Health System,said the key to success for Michi-gan Healthcare will be if it can suc-cessfully negotiate prices withhealth insurers.

“There are a lot of large groupsthat have loosely held ownershipmodels that are pretty tight withgovernance and leadership butkeep their own compensation”packages, Kelley said.

“If they are set up to provide val-ue to the marketplace (and) are ac-countable for cost and quality,they will have to pass FTC musteras others have done,” Kelley said.

Michigan Healthcare also musthave a large ratio of primary carephysicians to specialists, Kelleysaid.

“The successful groups are al-most always light on subspecialists.It is hard to do if the idea is to feed abunch of subspecialists (oncologists

and cardiologists) who do a lot ofwork in hospitals,” he said. “We arevery heavy on subspecialists” inSoutheast Michigan, Kelley said.

Margolis said the group has astrong base of primary care physi-cians who will help coordinatecare.

Specialties in Michigan Health-care include internal medicine,family medicine, obstetrics,surgery, radiation oncology, urolo-gy, cardiology, pathology, radiolo-gy, rheumatology and geriatrics.

Margolis said the group is likelyto consolidate some of its 100 of-fices to integrate primary and spe-cialist care.

The primary reason for a med-ical group to become clinically andfinancially integrated, as Michi-gan Healthcare has done, is toavoid violating price-fixing lawsthat are monitored by the FederalTrade Commission and U.S. Depart-ment of Justice, Kopson said.

“The FTC considers individualphysicians who are in different pro-fessional corporations to be com-petitors in the market. Antitrustlaw prohibits competing sellerswho are collaborating to fix prices,”Kopson said.

Margolis said Michigan Health-care is modeling itself partly afterAdvocate Medical Group, an integrat-ed physician group owned by

Chicago-based Advocate Health Care.In 2004, Advocate Medical ran

afoul of the FTC and was forced tocreate a fully integrated medicalgroup. Since that time, manygroups have used its model.

Being part of a single legal enti-ty eliminates the possibility ofprice-fixing so long as the entity is-n’t so large it makes the marketnon-competitive.

Kopson said there are likelyenough competing physicians inSoutheast Michigan to avoid FTCmarket power challenges.

In a separate management con-tract, Michigan Healthcare hashired 21st Century Oncology tooversee radiation management ser-vices in Michigan, Margolis said.

The corporate headquarters of21st Century is in Fort Myers, Fla.Its separately incorporated Michi-gan arm has combined with Michi-gan Healthcare, Rogers said.

One advantage of contractingwith 21st Century nationally isthat the company is working withMemorial Sloan-Kettering Cancer Cen-ter and other hospitals to create anew proton beam cancer center inNew York, Margolis said.

“(This) allows Michigan Health-care to participate in an evenbroader range of cancer researchstudies than would otherwise beavailable, using national databases

that local institutions alone wouldnot have access to,” Margolis said.

Michigan Healthcare also oper-ates a number of other ancillaryservices, including imaging cen-ters and laboratory services, Mar-golis said. Some other services arecontracted out.

Margolis also said many of thepractices in Michigan Healthcarehave been designated as patient-centered medical homes with BlueCross. A larger number also are inthe Blue Cross physician group in-centive program, or PGIP.

Under PGIP, some 40 physicianorganizations and 15,000 doctors inMichigan have qualified to receivebonus payments for hitting quali-ty, efficiency and administrativetargets.

Margolis said future plans couldinclude forming an accountable-care organization to contract withMedicare and private payers.

Looking toward the future un-der health care reform and ACOs,Kelley said health care organiza-tions will be responsible for takingcare of a population of patients.

“Once we get there, hospitalswill no longer be revenue centers,they will be cost centers,” Kelleysaid.

Tony Colarossi, a partner inhealth care consulting with South-field-based Plante Moran Financial Ad-

visors, said small physician groupsand independent doctors will find ithard to fit in with health care re-form unless they join larger organi-zations to contract with payers.

“Hospitals can’t accomplish thison their own. They need physi-cians and are trying to align them-selves with physician organiza-tions,” Colarossi said. “Physiciansneed to affiliate either with a hos-pital or a larger medical group tomanage a population under bun-dled payments.”

One of the barriers for physicianorganizations that want to formlarge medical groups is access tocapital.

“It is exceptionally expensive toget positioned for electronic med-ical records, to transfer to ICD-10(a new medical coding and billingsystem), to do contracting withbundled payments and capita-tion,” Colarossi said. “This re-quires you to have a very sophisti-cated information system andexperienced support staff.”

Colarossi said he expects manyphysician organizations will joinhospital-based health systemsrather than strike out on theirown, as Michigan Healthcare ap-pears to be doing.

Jay Greene: (313) 446-0325,[email protected]. Twitter: @jaybgreene

Group: Physician organizations unite without hospital backing■ From Page 27


BY JAY GREENE


Hospitals in Southeast Michiganare investing in the latest ro-botic surgery technology thatoffers a triple play: cuttinghealth care costs, reducing in-patient stays and trimming pa-tient rehabilitation time.

Earlier this year, the 288-bedMcLaren Macomb Hospital in Mt.Clemens bought the latest daVinci Surgical System fromSunnyvale, Calif.-based Intu-itive Surgical Inc. — the $2.3 millionda Vinci SI (Streamlined Integrat-ed) Dual Console High Definitionsystem — that is used for a varietyof procedures, including hysterec-tomies, prostate surgery and car-diovascular, thoracic and ear,nose and throat procedures.

“Using the da Vinci gives pa-tients back more free time; they re-cover more quickly; there is lesspain and less blood loss,” said Car-ol Fischer, D.O., an obstetrician-gynecologist at McLaren-Macombwho has performed more than 20hysterectomies since November.

Fischer said recovery time withopen hysterectomies or laparo-scopies is six weeks.

“Now recovery is two to fourweeks,” she said. “We can do hys-terectomies faster — in one hourversus two to three hours.”

Providence Hospital in Southfieldalso has purchased the latest da Vin-ci robotic surgery system for thenew Vattikuti Women’s Robotic SurgeryInstitute, said Lakshmi Gavini, a gy-necologic surgeon at Providence.

Last year, Providence Hospitalperformed 280 gynecologic proce-dures using an earlier-generationda Vinci. With the new da Vinci,Providence projects it will per-form 550 procedures this year, saidBrian Taylor, media relationsmanager with Warren-based St.John Providence Health System, thehospital’s parent organization.

To defray the $2.3 million pricetag for the new da Vinci, Provi-dence Hospital has received a do-nation of $1 million from the Vat-tikuti Foundation. The Vattikutiinstitute also includes Henry FordHospital in Detroit.

“We have a bold vision for sig-nificantly growing robotic surgi-cal services at Providence Hospitalin Southfield and expanding it toProvidence Park Hospital in Novi,”Gavini said.

The newest da Vinci offers adual console that allows either twosurgeons to simultaneously viewthe procedure with a camera or al-lows the surgeon to train a medicalresident with the procedure, Fis-cher said.

“You look through the consoleand see a high-resolution imagewhere with one hand you can grabthe tissue and burn, and with theother hand you can dissect,” Fisch-er said. “(Using the hand controls),you have more degrees of freedom

than with the human wrist.”Most other health care systems

in metropolitan Detroit use daVinci robots, including hospitalswith the University of MichiganHealth System, Henry Ford Health Sys-tem, Beaumont Health System andOakwood Healthcare.

McLaren-Macomb also boughtin February one of only threeMakoplasty robotic devices inMichigan, to conduct partial kneereplacement surgery as an alterna-tive to total knee replacement, saidJohn LeFever, Mako’s regionalmakoplasty specialist, who has at-tended the three surgeries at Ma-comb this year.

The $1 million device made byFort Lauderdale, Fla.-based MakoSurgical Corp. allows orthopedic sur-geons to conduct minimally inva-sive surgery for adults with early tomidstage osteoarthritis on one sideor the other of the knee, LeFeversaid. It can be used in some cases ofknee cap degeneration.

The other two hospitals thathave Mako are St. Joseph Mercy inPort Huron and Spectrum HealthCenter in Grand Rapids.

David Markel, M.D., chief of or-thopedic surgery at ProvidenceHospital, said about 10 percent ofhis patients get partial knee re-placement surgery.

“Partial knee is an attractive op-tion for the right kind of patient.You have to have the disease inone compartment and have goodligaments,” Markel said. “If youget a partial and you get arthritisin the other (side of the knee) youhave to get a total knee.”

Markel said Providence doesn’tuse robotic implant technology forknee or hip replacement. He saidthe hospital could purchase onewhen other orthopedic vendors,including Kalamazoo-based Strykerand Zimmer in Warsaw, Ind., comeout with their versions.

“The key with implant technolo-gy is if you don’t put it in the prop-er alignments, the outcomes arenot good,” Markel. “There are tech-nologies coming out to maximizethe alignment and efficiency of theimplants you are putting in.”

Jay Greene: (313) 446-0325,[email protected]. Twitter: @jaybgreene

201 West Big Beaver Road | Suite 1200 | Troy, MI 48084 | 248.740.7505

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Health Care Extra

Hospitals eye robotic tech to cut expenses, speed patient recovery

Using the (robot)gives

patients backmore freetime; they

recover morequickly.

Carol Fischer, McLaren Macomb Hospital

”

“



Health Care Extra

St. John plans neonatal ICU expansionThe following are selected filings

and decisions from March 1-31:

Letters of intent:� St. John Hospital and Medical

Center, Detroit: Remodel 5,400square feet to expand neonatal in-tensive care unit, $12 million.

� Church of Christ Care Center,Clinton Township: Renovate thefourth wing of the nursing homewith plumbing, electrical, heating,lighting and redecorating, $2.56 million.

� Madison Surgery Center LLC,Madison Heights: Build a new op-erating room, $2.07 million.

Applications received:� Phoenix Medical Group PC,

Southfield: Install a fixed CT scan-ner, $1.06 million.

� Harper University Hospital, De-troit: Add a fourth CT scanner,$905,953.

� PHI Air Medical LLC, Royal Oak:Initiate an air ambulance serviceusing one rotary wing air medicalhelicopter, $564,600.

Filings approved:� University of Michigan Health

System, Ann Arbor: Upgrade a car-diac catheterization laboratory,$3.45 million.

� University of Michigan FunctionalMRI Laboratory, Ann Arbor: Expandthe laboratory for research pur-poses, $2.6 million.

— Meghana Keshavan

CON Roundup

Stock market, rising costsbatter Henry Ford, Oakwood

BY JAY GREENE


A sluggish stock market, risinguncompensated care, pensioncosts and one-time write-offs drovedown net income last year for Hen-ry Ford Health System and OakwoodHealthcare Inc.

Detroit-based Henry Ford lastweek reported a 64 percent de-crease in net income in 2011 to$21.5 million from $60.1 million in2010, said CFO James Connelly. In-vestment income for the five-hos-pital system declined 59 percent to$26.5 million in 2011 from $65 mil-lion the prior year, he said.

At Oakwood, the four-hospital,Dearborn-based system’s net in-come declined 66 percent to $16.8million from $50.1 million in 2010.Total investment income was $30.8million lower in 2011 than the pre-vious year, said Matt Elsey, Oak-wood’s corporate controller.

Contributing to Henry Ford’snet income drop was a $19 millionone-time write-off taken last yearwhen it converted Henry Ford Ma-comb Hospital–Warren to a rehabili-tation center this month.

“Overall, we feel really goodabout 2011, given the investmentincome challenges and the impair-ment (write-off) charges,” said BobRiney, Henry Ford’s president andCOO. “We continued to move mar-ket share and revenue.”

Riney said the past two yearshave been transition years as thesystem closed inpatient operationsat Macomb Hospital in Warrenand is investing $300 million in anadvanced electronic medicalrecord information system.

Henry Ford’s net revenue in-creased 2.5 percent to $4.2 billion.

Growth from patient servicesand premiums through Health Al-liance Plan of Michigan drove therevenue increase, Connelly said.HAP acquired Dearborn-basedMidwest Health Plan last year for $70million to expand into the growingMedicaid market.

Oakwood’s total revenue in-creased 5.6 percent to $1.12 billionfrom $1.06 billion, despite a 1.1 per-cent drop in admissions.

“We saw strong outpatient

growth and (a 3 percent increase)in patient case mix (more complexcases that generate higher rev-enue),” Elsey said.

For example, nephrology casesgrew 19.4 percent and infectiousdisease cases increased 9 percent,driving up Oakwood’s averagecase complexity. In addition, or-thopedic surgery, neurosurgeryand spine surgery cases have in-creased 2.1 percent, 7 percent and 7percent, respectively.

Over the next several years,Elsey said, a settlement withMedicare on its family practiceresidency program will add $20.7million in revenue.

Oakwood’s expenses rose lastyear by 5.8 percent, primarily be-cause it spent millions of dollars tobolster its information systemsand on physician integration ef-forts. Total pension costs also in-creased $9 million last year.

Oakwood’s uncompensated careexpenses rose only 8 percent in2011 to $109 million from $101 mil-lion, Elsey said. More effective col-lections cut bad debt 10 percent to$20.6 million in 2011 from $23 mil-lion the previous year.

Henry Ford’s bottom line contin-ues to be challenged by higher thanusual levels of uncompensated care.In 2011, Henry Ford increased un-compensated care by 5.5 percent to$210 million, which includes $57.5million in charity care.

“You go back five years, andthat number has doubled,” saidConnelly, who noted that if federalhealth reform allows Michigan toexpand Medicaid in 2014 by 500,000people, Henry Ford could see somecharity care reductions.

On the other hand, CEO NancySchlichting said in a statementthat Henry Ford continues to in-crease market share above that ofits competitors.

“Last year our admissions grewby 1.7 percent to 101,336 total ad-missions, the highest of any healthsystem in Southeast Michigan,”Schlichting said.

By comparison, hospital admis-sions for the entire Michigan mar-ket grew by 1 percent, according tothe Southeast Michigan Data Ex-change and reported by Henry Ford.


TUESDAYA P R I L 1 0

Leveraging Technology & Standardsto Improve Supply Chain Performance.6-9 p.m. APICS Association for Opera-tions Management Greater DetroitChapter. With Marilyn Smith, projectlead for materials management opera-tions guideline/logistics evaluationimplementation, General Motors; Ter-ry Onica, automotive director, QADInc.; and Dan Miller, CEO, MarshallElectric Corp. Automotive IndustryAction Group, Southfield. $20 mem-bers, $30 nonmembers. Contact: (248)224-3951; website: apicsdet.org.

WEDNESDAYA P R I L 1 1

Hiring Our Heroes Dearborn/Detroit JobFair. 11 a.m.-3 p.m. The U.S. Chamber ofCommerce, Dearborn Chamber of Com-merce, and others. Ford Communityand Performing Arts Center, Dearborn.Free. Contact: Jennifer Giering, (313)584-6100; email: [email protected]; website: uschamber.com/hiringourheroes.

THURSDAYA P R I L 1 2

The Defense Industry in Michigan:New Opportunities in a Diversifying

Economy. 5-8 p.m. Marketing andSales Executives of Detroit. Panel dis-cussion with Larry Hollingsworth, vicepresident, strategic operations, DRSSignal Recording Technologies Inc.;

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CALENDARM&A AWARDS APRIL 19Crain’s Detroit Business and theAssociation for Corporate Growth-

Detroit Chapterpresent Crain’sMergers andAcquisitionsAwards 5:30-9p.m. April 19 atthe Somerset Inn,Troy.Awards will honorcompanies andexecutives in four

categories: Best Deal of the Year,Dealmaker of the Year,Expansions, and LifetimeAchievement, an award that will goto Sam Valenti III, executivechairman of TriMas Corp. andpresident and CEO of ValentiCapital LLC. Tickets are $60 for current CDBsubscriber, $55 groups of 10 ormore or ACG members, $85nonsubscriber, $84.50 specialCDB subscription offer. Forinformation or to register, go towww.crainsdetroit.com/events.

Sam Homsy, director Army programs,Navistar Defense; Ron Moffett, direc-tor of MI Defense Office, MichiganEcomomic Development Corp.; TrevorPawl, program director, economic de-velopment, Detroit Regional Cham-ber; others. $45 MSED members, $60nonmembers. Contact: Cheryl Dry,(248) 643-6590; email: [email protected]; website:www.msedetroit.org.

Tee It Up for Business: A Woman’sGuide to Breaking the Grass Ceiling.5:30-8 p.m. Inforum. With golf pro JohnJawor. Plum Hollow Country Club,Southfield. $30 Inforum or ExecutiveWomen’s Golf Association members,$35 guests. Contact: (877) 633-3500;website: inforummichigan.org.

Adcraft PM ’80s Party Night. 7-11 p.m.Live Nation Entertainment, AdcraftClub of Detroit. South Bar, Birming-ham. Free. Adcraft member registeredby April 11; $10 at the door. Website:www.adcraft.org.

FRIDAYA P R I L 1 3

Why Detroit? Why Now? 11:30 a.m.-1:30p.m. Detroit Economic Club. WithWalter Robb, co-chief executive offi-cer, Whole Foods Market. The Mason-ic Temple, Detroit. $45 DEC members;$55 guests of members; $75 nonmem-bers. Contact: (313) 963-8547; email: [email protected]; website: www.econclub.org.

MONDAYA P R I L 1 6

MEDC Entrepreneurial Services BusTour. 11:30 a.m.-12:45 p.m. MichiganEconomic Development Corp., andAnn Arbor Spark. Bus tour to most ofthe “smart zones” in Michigan to dis-cuss the opportunities to work withthese programs. Spark Central, AnnArbor. Free. Contact: (734) 372-4071;email: [email protected];website: www.annarborusa.org.

COMING EVENTSProactive Management. 9 a.m.-4:30p.m. April 17. The Engineering Soci-ety of Detroit. With Christopher Webb,co-director, ESD Institute. ESD head-quarters, Southfield. $125 ESD mem-bers, $150 nonmembers, $209 to attendand join ESD at a 50% discount onyour first year’s membership. Con-tact: Leslie Smith, (248) 353-0735, ext.152; email: [email protected]; website:www.esd.org.

AutomotiveNext Inner Circle. 5:30-7:30p.m. April 18. Inforum. With Maximil-iane Straub, CFO and executive vicepresident, Robert Bosch LLC; NancyRae, senior vice president, human re-sources, Chrysler Group LLC; andothers. Walter P. Chrysler Museum,Auburn Hills. $25 Inforum members,$35 nonmembers. Contact: (877) 633-3500; website: inforummichigan.org.

Optimize Your LinkedIn Profile Webi-nar — For In-House Counsel and LawFirms. Noon-1 p.m. April 18. Crain’sDetroit Business, Dickinson WrightPLLC, the Association of CorporateCounsel, Michigan chapter, State Barof Michigan Business Law Sectionand Ajax Social Media. With VincentGatti, co-founder, Ajax Social Media.Free, Crain’s Detroit Business readers.Website: crainsdetroit.com/events.

SAE 2012 World Congress. Events atvarious times. April 24-26. SAE Inter-national. Seminars and events aroundthe theme “get connected,” includinga “ride and drive,” banquet and careerfair. Cobo Center, Detroit. Registra-

tion: $189/day SAE Classic Member;$164/day SAE Premium Member; $139SAE Elite Member; $370/day non-member; free, SAE members and stu-dent members; $25/three days non-member full-time student with collegeID. Website: www.sae.org/congress.

Radio Day. 11:30 a.m.-1:30 p.m. April 24.Adcraft Club of Detroit. With BobPittman, CEO, Clear Channel. SanMarino Club, Troy. $35 members, $45nonmembers, $25 junior and student

members. Contact: Clarence Young,(313) 872-7850; email: [email protected]; website: www.adcraft.org.

Michigan Celebrates Small Business.5-9:30 p.m. May 3. Michigan SmallBusiness Technology & DevelopmentCenter, others. With Ari Weinzwieg,co-founder and CEO, Zingerman’sCommunity of Businesses, and others.Lansing Center. $95; group discountsavailable. Contact: (800) 362-5461; website: michigancelebrates.biz.

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PEOPLE

JobFrontCONSTRUCTION

Jim Steiner to pro-ject manager,Clark Construc-tion Co., South-field, from projectmanager, Skans-ka USA Building,Southfield. Also,Marcus Jacksonto project engi-neer, from projectengineer, Rock In-dustries, Pontiac.

ENERGYRejji Hays to vice president, financeand treasurer, ITC Holding Corp.,Novi, from assistant treasurer and di-rector, corporate finance and finan-cial strategy, Exelon Corp., Chicago,Ill.

ENGINEERINGCol. Shaw Morrissey to executive di-rector of business development, gov-ernment services, Waltonen Engineer-ing Inc., Warren, from brigadecommander, 3rd sustainment brigade,3rd infantry division, U.S. Army, FortStewart, Ga.

ENTERTAINMENTScott Wruble to vice president of infor-mation technology, Palace Sports & En-tertainment LLC, Auburn Hills, from di-rector of information technology,Detroit Tigers. Also, Michael Donnay tosenior director of brand networks,from account manager, Goodby Silver-stein & Partners, Detroit; Sean Hodg-son to director, digital content, from vi-sual creative manager, WeberShandwick, Birmingham; and Steve

Smith to vice president, ticketing, con-sumer sales and service, from vicepresident, ticket sales and service, Min-nesota Twins, Minneapolis.

FINANCEBrad Southern to principal, UHY LLP,Sterling Heights, from senior manag-er. Also, Todd Tigges to principal,Farmington Hills, from senior manag-er; Brent Jones, Ibby Michalik, LaRaeMirovsky and Pat Wojcinski to seniormanager, Farmington Hills, frommanager; Amanda Bertelsen, TonyColucci, Don Felmlee, Michelle Mooreand Aaron Witalec, to senior manager,Sterling Heights, from manager; Am-ber Clark, Andy Gilbert and Chris Lambto manager, Sterling Heights, from se-nior; and Chris Duprey to manager,

Farmington Hills,from senior. Michelle VanGoethem to direc-tor of internal au-dit, Ally FinancialInc., Detroit, fromaudit manager. Christopher Kellyto president, Com-erica CharitableTrust, Detroit, remaining vice

president and senior philanthropicadviser, Comerica Charitable Ser-vices Group, Detroit.Brian Simmons to tax partner, BakerTilly Virchow Krause LLP, Southfield,from shareholder and tax director, Doeren Mayhew & Co. PC, Troy.

FOODLauren Maloney to farm manager,CityFarm Inc., Ann Arbor, from in-tern, Slow Food Huron Valley, AnnArbor.

GOVERNMENTTom Casari to director of public ser-vices, Northville Township, fromdeputy director, Canton Township.

INFORMATION TECHNOLOGYLisa Anderson to vice president ofsales, OpTech LLC, Troy, from busi-ness unit director.

MARKETINGJeff Voigt to senior vice president, me-dia insights, W.B. Doner & Co., South-field, from senior partner, group com-munications research director, J.Walter Thompson USA Inc., Detroit.

IN THE SPOTLIGHTFarmington Hills-Based BotsfordHealth Care has named Regina

Doxtader vicepresident andCFO. Doxtader,45, had beenBotsford’s vicepresident andassistanttreasurer.She succeedsDavidMarcellino,who is nowexecutive vice

president and chief administrativeofficer at Botsford. Doxtader, a CPA, has a bachelor’sdegree in economics andmanagement from Albion College.

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2010 he sold it to us.”The Germacks spent about

$500,000 renovating the 4,000-square-foot building, which housesnew product lines Germack CoffeeRoasting Co. and Germack Trading Co.

Before the move, Germack wasusing about 2,000 square feet of a27,000-square-foot building at thesouth end of Eastern Market, in anarea neglected by many Saturdayshoppers.

“The location was one of the dri-vers,” Frank Germack said. “East-ern Market is going through a lotof development, but it was occur-ring at the opposite end of wherewe were.”

Germack said the company ismoving into the coffee roastingbusiness, which he says is not thatdifferent from roasting nuts. Thecompany is currently roastingbeans in a used coffee roaster pur-chased for $8,000.

“We have been using modifiedcoffee roasters for our nuts since westarted Germack Pistachio Co. be-cause that was the only equipmentavailable,” he said. “Coffee roastingrequires the same kind of adjust-ments in time and temperature, thesame way nuts and seeds do.”

Germack said the companyplans on being more of a small-scale artisan coffee roaster, but hewants to eventually roast beans ona contract basis for local business-es and restaurants.

“I think we can be a niche sup-plier of fresh roasted coffee,” hesaid. “The taste of freshly roastedcoffee is very different.”

Germack expects the coffee roast-ing line to make up about 15 percentof the company’s total revenue,which hovers around $7.5 million.

Germack may be best known forits roasted peanuts sold at all fourprofessional sports stadiums inmetro Detroit, as well as majoruniversities including Notre Dame

and the University of Michigan.However, its biggest customer ishome shopping network QVC, asubsidiary of Douglas County,Colo.-based Liberty Media Corp.

Sales from QVC make up about25 percent of Germack’s total rev-enue. Its biggest seller on QVC isthe Cherry Berry mix, which QVCsells in packages of three 16-ouncejars for $39.75.

Germack started out selling its5-pound bags of pistachios on QVCin 1997. It has become the second-largest seller of snack foods byway of television.

“That is a size most people don’texpect to see for pistachios, so itcame across as unique, Frank Ger-mack said. “From there, we movedinto mixes that are not found instores.”

QVC features Germack productsabout 10 times a month.

Germack’s manufacturing facil-ity, located on the outskirts ofEastern Market at 2140 WilkinsSt., currently has 20 employees.

The company produces about3,000 pounds of dry roasted nutsand seeds a day, and its top-sellingitem is roasted squash seeds.

While Germack is looking to ex-pand its product offerings, JohnKoscovitch, marketing managerfor Madison Heights-based Kar’sNuts, said Kar’s is having a hardtime keeping up with demand forits current line of snack mixes.

“We have our hands full now,”Koscovitch said. “We have no inten-tion of doing anything that takesaway from our objective to developmom-friendly snack products.”

Revenue for Kar’s Nuts was $72 million in 2011 and is expectedto reach $86 million in 2012.Koscovitch says the company willcontinue growing by about 20 per-cent for the next few years.

“We have the facility, capacityand the means to meet those salesobjectives,” he said.

But Frank Germack said roast-ing coffee beans is a perfect fit forthe nation’s oldest roaster of pista-chio nuts.

“We felt that coffee was a comple-mentary product to nuts, and we feltwe can benefit from that,” he said.“We hope to use our distributionnetwork for our coffee beans, too.”

Nathan Skid: (313) 446-1654,[email protected]. Twitter:@nateskid

BY NATHAN SKID


When Elyse and Frank GermackIII, owners of Detroit-based Germa-ck Pistachio Co., decided to movethe 88-year-old company a quarterof a mile up the road in EasternMarket, they did so with an eye onthe future.

Germack’s new home, at 2509Russell St., is a lot smaller than itspredecessor, but the layout al-lowed the company to build a mul-ti-unit complex of businesses, in-cluding a coffee roastery and café,a retail chocolate and nut shop,and a spice store.

The building formerly housedRafal Spice Co., which closed inFebruary 2009.

“I hounded Don Rafal,” ElyseGermack said of Rafal Spice’s for-mer owner. “I kept calling and call-ing about the space, and finally in

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With new Eastern Market home, Germack sees more than nuts in future

NATHAN SKID/CRAIN’S DETROIT BUSINESS

Co-owner Elyse Germack says retail sales have increased significantly sinceGermack Pistachio Co. moved into its new home at 2509 Russell St. in Detroit’sEastern Market.

NOMINATIONS SOUGHT FOR HEALTH CARE HEROESCrain’s Detroit Business is seekingnominations for Health Care Heroes,a special report on health careprofessionals that will runin the Sept. 10 issue. The program will honortop-notch medicalinnovators and patientadvocates — the leaders who bringnew meaning to the word“dedication” through their efforts tosave lives or improve access to care. Winners will be chosen in fivecategories and honored at a Crain’sevent. � Corporate achievement inhealth care: Honors a companythat has created an innovativehealth benefits plan or has solved aproblem in health careadministration.� Advancements in health care:Honors a company or individual

responsible for a discovery or fordeveloping a new procedure,device or service that can save

lives or improve qualityof life.� Physician: Honors aphysician whoseperformance is

considered exemplary.� Allied health: Honors anindividual from nursing or alliedhealth fields deemed exemplary bypatients and peers.� Trustee: Honors leadership anddistinguished service by a healthcare trustee.A panel of health care judges willchoose the winners. Submit anomination at www.crainsdetroit.com/nominate by May 4.Questions? Contact Bill Shea,enterprise editor, at (313) 446-1626.

I think we can bea niche supplier of

fresh roastedcoffee.

Frank Germack III, Germack Pistachio Co.

”

“


ing table. Regardless of state law, a finan-

cial emergency exists in Detroit,said Geralyn Lasher, Snyder’s di-rector of communications. And ifcuts can’t be made through unionconcessions, she said, the citywill have to find efficiencies else-where.

Al Garrett, president of Michi-gan Council 25 of the AmericanFederation of State, County and Fed-eral Employees, told the DetroitCity Council last week that he’sunwilling to return to the bar-gaining table in the near future.

“As long as I am president ofAFSCME, we will not be back atthe table prior to the expirationof our contracts,” he told thecouncil last week.

More complicationsLack of control over labor costs

isn’t the only complication thatwould rise if PA 4 is suspended.

Snyder and state TreasurerAndy Dillon — along with Attor-ney General Bill Schuette — holdthe opinion that Public 4’s prede-cessor act, Public Act 72, whichdoesn’t allow a manager to im-pose union contracts, would takeeffect.

If that were the case, Snydercould order another financial re-view and appoint a financialmanager who could initiate abankruptcy filing.

But some expect that lawsuitswould be filed to challengewhether Public Act 72 takes ef-fect, which would raise morequestions about the city’s op-tions.

The federal bankruptcy coderequires states to have enablinglegislation under which localunits of government can file forbankruptcy protection, said Bet-tie Buss, a senior research ana-lyst at the nonpartisan CitizensResearch Council.

Buss said that route in Michi-gan is through appointment of anemergency manager, who canask the governor for permissionto file Chapter 9 bankruptcy.

If neither Public Act 4 nor Pub-lic Act 72 is in effect, then there isno mechanism for a bankruptcyfiling or timely way to changework rules and compensation forunionized workers.

“The dollar amounts they needin order to right the ship aregreater than what can be givenup by any of the employeegroups,” said Deputy OaklandCounty Executive Robert Dad-dow. “Meaning they’re going tohave to get some external rev-enue or have wholesale restruc-turing that may only be availableunder Chapter 9.”

And if the city can’t file forbankruptcy, “then they are pret-ty much in trouble,” Daddowsaid. “They’re going to have prob-lems in making payroll becausethe numbers no longer work.”

If PA 72 is challenged, Busssaid, it’s likely the Legislaturewill act.

“If for no other reason than toprotect the progress the existingemergency managers (in othercities and school districts) havemade,” she said. “Otherwise theyhave no authority, and mayors,city councils and school boardsin other districts would reassertcontrol.”

Terry Stanton, director of com-munications for the state Depart-ment of Treasury, declined tocomment on any fall-back legisla-tion, saying he “can’t and won’tspeculate on hypotheticals andwhat-ifs.”

A bill that’s passed the stateSenate would provide a transi-tion plan for local units of gov-ernment in which an emergencymanager has been appointed, butwouldn’t affect Detroit.

Buss said the Legislature couldre-adopt the language of PA 72, orattempt to modify PA 72 to mirrorPA 4, which could have legal con-sequences.

“We’re in pretty uncharted ter-ritory here,” she said.

Nancy Kaffer: (313) 446-0412,[email protected]. Twitter:@nancykaffer


Early version of legal document servicemay go online in 60 days, hire staffers

BY CHAD HALCOM


Southfield plaintiff civil litiga-tion boutique 1-800-Law-Firm PLLCcould go live with an early versionof its planned online legal docu-ment generation service within 60days, founder and CEO Ari Kreschpredicts.

The firm expects to more thandouble its current staff of 40 in thenext year. It moved a few weeksago from a 5,000-square-foot officeon Southfield Road into 29,000square feet of space formerly occu-pied by World Wide Financial Corp.,also known as LoanGiant.com.LoanGiant was closed by regula-tors in 2006.

Founded in 1994, 1-800-Law-Firmrepresents plaintiffs in product lia-

bility, Social Security disabilitybenefits, labor and employmentlaw, property tax appeals and oth-er matters, and offers some refer-rals to other plaintiff firms.

Kresch said he will fill the ex-panded space along Lahser Roadbetween I-696 and the Lodge Free-way in part with IT staff, attorneysand other employees to help man-age a new online document genera-tion project akin to LegalZoom orStandardLegal.com.

“We’re doing a lot of software de-velopment related to that site,”Kresch said. “And while we’rebuilding a document generationportal, it’s going to be a step above.You’ll be able to craft your own doc-ument, but you’ll also be able to con-nect with someone here for a (con-sultation) before you finalize it.”

The firm is still consideringwhether to bundle the consultationwith the document fee or charge aseparate fee for it, Kresch said.

An early version of the site,which Kresch declined to name,will probably go live with a smalloffering of simple legal documentsfor free download. It will later ex-pand to offer more involved con-tracts and other documents for afee, help navigate other serviceslike developing a wealth transferstrategy and help customers get intouch with experts.

Kresch also expects to add a newtransactional law practice to thefirm and include studio space todevelop instructional video mate-rials and class space for possibleinstructional sessions on immigra-tion law.

The following businesses filed forChapter 7 or 11 protection in U.S.Bankruptcy Court in Detroit March 30-April 5. Under Chapter 11, a companyfiles for reorganization. Chapter 7 in-volves total liquidation. Beaty Brothers Inc., 19305 ElwellRoad, Belleville, voluntary Chapter 7.Assets: $100; liabilities: $313,350. Euro-Tech Motorcars Ltd., 31171Stephenson Highway, MadisonHeights, voluntary Chapter 11.Hudson Property Group LLC, dba LECProperties Partnership, 21411 CivicCenter Drive, Southfield, voluntaryChapter 11. Assets and liabilities notavailable. Westridge Office LLC, 70 W. Long LakeRoad, Suite 114, Troy, voluntary Chap-ter 11. Assets and liabilities not avail-able.

— Meghana Keshavan

BANKRUPTCIES

City: Ballot drive is key■ From Page 1

Judge rules againstNissan dealership

Dearborn-based Superior Nissanhas been underperforming in vehi-cle sales, and Nissan North AmericaInc. has good cause to terminate itsagreement with the automaker, afederal judge has ruled.

U.S. District Judge Marianne Bat-tani found Superior failed to meetits obligations under a sales and ser-vice agreement the dealer has hadsince 2001 and ruled in favor of Nis-san, dismissing a 2008 lawsuit.

Superior and its president, Wal-ter Schwartz, who also owns neigh-boring Superior Buick-GMC Inc. alongMichigan Avenue in Dearborn, filedsuit alleging breach of contract,along with violations of the Michi-gan Motor Vehicle Dealers Act andthe federal Dealer Day in Court Act.

Nissan held off on implementingits notice of termination while thecourt case was pending and is con-sidering its options now, saidThomas Wienner, partner atRochester-based Wienner & GouldPC, who represented Nissan.

Schwartz said Friday the Nissandealership remains open, but hesaid he plans to appeal Battani’s rul-ing.

— Chad Halcom


coming tsunami.” He said thatwhile the industry should havebeen prepared, it failed to main-tain training programs.

“We had thisgreat laborpool, but theunions, manu-facturers andeducators werenot thinkingforward enoughto see what thetsunami was go-ing to be in theskilled work-

force,” Tomlinson said. Tomlinson said the foundation

for the shortage goes back to thelate 1970s.

“Education began to focus on col-lege prep more, and the amount ofpeople going the vocational pathdeclined through the late ’70s and’80s, and those programs began todisappear,” he said. “Parents dur-ing that time suffered a lot of joblosses in automotive as the processbecame more automated, and theydidn’t want that for their children.”

Dearborn-based Henry Ford Com-munity College works with 22 areahigh schools in technical training,but its apprenticeship programhas dropped to 250 students from1,800 in 2004, said TriciaLlewellyn, director of workforcedevelopment at HFCC.

“The young people aren’t thatinterested in this type of workanymore,” Rowe said. “There’ssuch an emphasis on a college ed-ucation that society puts a greatervalue on a graduate with a liberalarts degree that has no jobprospects than a trade schoolgraduate that’s in demand.”

Many suppliers used to findskilled laborers coming out of ap-prenticeship programs run by theautomakers. But automakers be-gan to close their in-house tooland die shops at the turn of themillennium for cheaper solutionsin China, ending most apprentice-ship programs.

General Motors Co., for example,operated five tooling plants in the1990s. It’s now down to one.

According to the Deloitte sur-vey, 56 percent of respondents ex-pect the shortage to increase overthe next five years.

Madison Heights-based Diversi-fied Tooling Group Inc. — which op-erates four plants in Michigan —went proactive to fill its skilled la-bor shortage.

Diversified Tooling hired 12 in-terns from Macomb Community Col-lege’s skilled trades program lastsummer. Diversified’s plan is totrain the students during the sum-mer and then hire them full timeupon graduation, said MarkStevens, vice president of manu-facturing and engineering.

“We expose them to areas oftrade during the summer andmake them an offer before they’dbe out looking for a job,” Stevenssaid.

Of the 12 interns from last sum-mer, two graduated last year andare working full time at Diversi-fied, which employs more than 200skilled laborers.

Diversified also pays for peoplein the non-skilled workforce to goback to school, if they demon-strate an ability to learn the trade,Stevens said.

Of the 10 non-skilled workersDiversified hired this year, threeare in a skilled trades program atMacomb Community College.

Despite Diversified’s efforts,there are openings every day in itsmachine shop, Stevens said.

“We (as an industry) need to in-spire young people in thesetrades,” he said. “There are lessdemanding jobs out there thatneed no skill, but there’s also noopportunity in those positions.The skilled trades used to be thestep to engineering and manage-ment.”

Skills become more niche-ori-ented as the industry continues touse technology advancements,and there’s a need for consistentretraining, said Kristin Dziczek,director of the labor and industrygroup at Ann Arbor-based Centerfor Automotive Research.

“Ten years ago, we had twice asmany people in the industry,” shesaid. “Some have retired, movedaway or otherwise moved on. Butit’s not like everybody that’s leftgot stupid overnight. These arecritical needs in very niche areas,and workers need help getting to afull skilled trade toolbox.”

Chrysler Group LLC and the UAWannounced earlier this year an ef-fort to retrain their workforce tomeet the demands of skills-basedjobs.

The automaker renovated25,000 square feet of its UAWtraining center in Warren withclassrooms and high-tech tools.

Llewellyn said industry needsare exceeding the number of stu-dents in those programs.

“The lack of students is affect-ing the pipeline,” she said. “We’refighting a stereotype and trying totell people that the auto industryis alive and well and is a greatplace to work, with well-paid, sus-tainable jobs.”

Skilled laborers currently aver-age between $18 and $28 an hour,suppliers said. Dziczek said that’stoo low to attract educated andtrained workers, comparing thelabor shortage to parts shortages.

“If there was another shortageto another input, like steel, you’dhave to pay more and adjust,” shesaid. “With skilled labor, there isno substitute, and niche areas aregoing to have to pay better thanareas in less demand.”

Tomlinson disagrees that wagesare too low.

“The market will drive theprice, so I think the wages aren’tartificially low,” he said. “But ifthe workforce isn’t there and theskills sets aren’t there, the pricewill go up.”

Mark Schmidt, president of Ro-seville-based Atlas Tool Inc., saidthe toolmaker simply can’t paymore because of depressed earn-ings. Business is up 25 percentthis year for Atlas, but its marginsremain low because of the recentrecession.

“We had a lot of years of losses,”Schmidt said. “We pay less thanwe used to, but the reality is wecan’t pay more because profitsaren’t what you’d expect withtremendous cost pressures asbusiness comes back.”

Dustin Walsh: (313) 446-6042,[email protected]. Twitter:@dustinpwalsh

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Skilled: Jobs hard to fill■ From Page 1

negative absorption, according toa Crain’s analysis of data fromWashington, D.C.-based CoStarGroup Inc.

And what’s more, real estatebrokers say, the region’s 27-per-cent vacancy rate means morespace still needs to be filled beforethere is a scarcity of space that willtrigger an increase in rental rates.The current asking rate of $17.89per square foot, according toCoStar, is a 10-year low.

Brian Schwartz, a vice presi-dent with Colliers, said that cur-rent proposals he has receivedfrom landlords is showing aslight improvement over currentlevels.

“But it’s still aggressive, andrates are very low historically,”he said.

Most of the office deals in 2011have been companies either ex-panding or consolidating officesinto one, larger, office space.

Among the recent office dealswas an expansion of Troy-basedFlagstar Bank. The companysigned a 95,000-square-foot leasein January at the Troy Officentrecomplex near its headquarters.

In Farmington Hills, there wasa 90,000-square-foot lease by Pana-sonic Automotive Systems Companyof America at 31701 Corporate Dri-ve as the company consolidatedseveral of its offices around towninto one larger office.

The Detroit office market hasposted positive absorption in pastquarters but saw a negative moveattributed to Dallas-based Comer-ica Bank’s move out of the OneDetroit Center office tower. Thatbuilding, however, also saw thelease of 25,000 square feet to AegisGroup’s Carat advertising compa-ny.

Also making an impact is anexpansion by Auburn Hills-basedChrysler Group LLC, which leased147,000 square feet at 2301 Feath-erstone Road, a building the com-pany was forced to sell during itsbankruptcy.

Noteworthy, also, was the ex-pansion of the headquarters forPet Supplies Plus into a 33,000-square-foot space at 17197 N. Lau-rel Park in Livonia.

The leasing activity is a goodsign, but it also signals that thevacant cubicles in many officesare now being filled, said GaryGoodman, managing director ofbrokerage service for Farming-ton Hills-based Friedman Integrat-ed Real Estate Solutions — whichwas a broker for both the Pet Sup-plies Plus and Chrysler deals.

In addition to bigger deals, thesmaller deals such as San Fran-cisco-based Twitter moving peo-ple to Detroit, are having an im-pact on peoples’ attitudes.

“We’re starting to see more in-terest from out-of-town in-vestors,” Goodman said. “Thereare deals that are opening peo-ples’ eyes and showing thatthere’s really something to thisidea of Detroit as a home to techcompanies.”

Daniel Duggan: (313) 446-0414,[email protected]. Twitter:@d_duggan

Realestate:Signs of life■ From Page 3

Tomlinson



$400,000 from Detroit-based PVSChemicals Inc. and $385,000 fromDTE Energy Foundation.

The society reported an operat-ing excess of $1.4 million on totalunrestricted revenue of $4.6 mil-lion in fiscal 2011, compared to anexcess of $396,000 on revenue of$3.2 million in fiscal 2010.

Net assets totaled $8.1 million atthe end of last year, up from $5.4million in fiscal 2010.

The museum is operating on atwo-year budget of $12.8 million forthis year and fiscal 2013 endedJune 30, said Bob Sadler, directorof public and external relations forthe historical society.

The two-year budget works bet-ter, given that major work on themuseums begins this year butdoesn’t end until 2013, he said.

The society’s “Past>Forward”campaign will fund projects at theDetroit Historical Museum,Dossin museum and its Collec-tions Resource Center at HistoricFort Wayne, including:

� Updates to permanent ex-hibits “Frontiers to Factory,”“Streets of Old Detroit” and “Mo-tor City” with new content andtechnology, technology updates tothe “Glancy Trains” collection,and new permanent and tempo-rary exhibits and improvementssuch as lighting and carpeting.

� Upgrades to carpeting andlighting at Dossin Great Lakes Mu-seum and installation of new per-

manent and temporary exhibits. � Installation of a new boiler

and other upgrades at the Collec-tions Resource Center, along withdigitizing of about 250,000 historicartifacts, ranging from automo-biles and boats to costumes andclothing to more recent artifactslike the old Tiger Stadium score-board and letters and panelingfrom its executive office.

The society plans to add theAllesee Gallery of Culture to theDetroit Historical Museum’sRound Hall. The gallery is namedin recognition of Bloomfield Town-ship philanthropist Maggie Alle-see’s $250,000 gift to the campaign.

The gallery will focus on non-manufacturing stories from thepast 100 years that define Detroit’sculture in sports, entertainment,design and architecture, Bury said.

The society also plans to addthree exhibits on the second floorin space previously used for back-of-house operations:

� “Detroit: The Arsenal ofDemocracy,” which will tell howDetroit’s manufacturing prowesshelped the U.S. win World War II— and the impact the war had onDetroit, helping to bring womenand African-Americans into theworkforce and growing suburbsthrough loans to veterans.

� “The Gallery of Innovation,”to focus on historical and contem-porary innovators from Detroit,from Henry Ford to Heinz

Prechter, founder of sunroof pio-neer ASC Inc., and Veronika Scott,creator of the Element “S” Sleep-ing Bag Coat for the homeless, andtheir innovation processes.

� “The Underground Railroad,”an experiential exhibit in the styleof the “Streets of Old Detroit” inwhich visitors can walk throughand see what it was like to be aslave seeking freedom in Canadathrough Detroit.

At the Dossin museum, the soci-ety plans to transform the largestgallery — now named the MarleneL. and John A. Boll Gallery inrecognition of their $500,000 gift —with the installation of a perma-nent exhibit, “Built by the River.”

The exhibit will focus on howDetroit grew as a manufacturingand recreational center because ofthe Detroit River.

Another new exhibit, “The Riv-er’s Roar,” will focus on Detroit’shistory of racing on the river.

The focus of the new and ex-panded exhibits will be on the sto-ries of achievement, challenge, op-portunity and love, “the storiesthat really define Detroit” and thatresonate with people, he said.

It’s both a challenge and a trendfor history museums to make thepast new again, said Dewey Blan-ton, director of strategic communi-cations for the Washington, D.C.-based American Association ofMuseums.

“Young audiences today are ac-

customed to sophisticated technol-ogy and almost demand interactiv-ity. That said, it requires some cre-ativity and financial resources toreally make history come alive,”he said.

“You have to make it new and

high-tech but maintain the authen-ticity which is at the heart of … ahistory museum’s appeal and atthe root of its credibility,” he said.

Sherri Welch: (313) 446-1694,[email protected]. Twitter: @sherriwelch

Until a new agreement is com-pleted, the twocontinue to op-erate under the2009 pact.

“Produce isseen as one ofthe areas of ourgrowth by mem-bers nation-wide,” but bothlocal organiza-tions “are at the

mercy of what the farmer pro-duces,” Wells said.

Additionally, many businessesand organizations contributeshelf-stable and perishable food toboth agencies.

For example, some local farmsare donating food to Oak Park-based Forgotten Harvest by allow-ing its volunteers to glean leftoverproduce from the field, while at thesame time growing many of thesame types of food for Detroit-basedGleaners for an average cost of 17cents per pound. Other farms aredonating surplus crops to Gleanersor Forgotten Harvest individually.

So deciding what types of foodeach agency can collect is not nec-essarily the best way to divide ser-vice in overlapping areas, Wellssaid.

Traditionally, Gleaners has fo-cused primarily on warehousingshelf-stable items such as cannedand dried goods and produce witha long shelf life, and ForgottenHarvest has rescued highly perish-able foods and delivered them tolocal pantries and shelters.

But the two agencies increasingly

see a mix of the types of food comingto them, as the availability of freshand perishable foods for donationoutpaces shelf-stable items, andas donors mixthe two types offood.

“If ForgottenHarvest was do-ing a fundraiserwith an organi-zation … andthey want to doa food drive, too,it’s very hard to turn (that) down,”President and CEO Susan Ellis

Goodell said.Gleaners acquired food rescue

operations through its 2002 mergerwith the Livingston Community FoodBank.

While it collects perishable foodin Monroe and Livingston coun-ties from grocery stores and othersources, it brings that food back toits warehouse, refrigerates it asneeded and contacts the sheltersand pantries it serves to pick it up.

Forgotten Harvest deliversabout 80 percent of the food it picksup directly to shelters andpantries. The remainder goes backto its Oak Park headquarters for

sorting, repackaging and refriger-ation or freezing before delivery.

The nonprofit counts cannedgoods and non-food items such aslaundry detergent it transfers toGleaners for distribution amongthe pounds of food it collects.

About 8 percent of the 23.2 mil-lion pounds of food Forgotten Har-vest collected in its fiscal 2011 end-ed June 30 was non-perishable,and another 1 percent wasn’t food.The agency transferred 251,000pounds of non-perishable food toGleaners last year.

Likewise, Gleaners is also see-ing a shift in its mix of food and of-

ten transfers perishable food thatit collects to Forgotten Harvest.

Nearly 30 percent of the 40.5 mil-lion pounds of food that Gleanersdistributed during calendar 2011had a shelf life of three weeks orless. Nine percent, or 3.6 millionpounds, had a shelf life of one toseven days.

In 2010, food with a shelf life ofthree weeks or less made up onlyabout 22 percent of the 36.8 millionpounds distributed, while foodlasting from one day to a weekmade up 8 percent of its total.

Gleaners transferred 887,650pounds of the food it collected dur-ing fiscal 2011 ended Sept. 30 toForgotten Harvest.

It’s up to the two food agenciesto decide which products each willsource and distribute, said PaulaThornton Greear, vice president ofcommunications at Feeding Amer-ica, in an email.

At a time when need is high, theassociation’s food bank and foodrescue members must continuallylook at their business and operat-ing model to ensure they are sourc-ing and distributing as much prod-uct as possible in the most efficientway, she said.

“This is just good business senseto ensure they are doing all theycan to address the growing need.The local agreement is the way inwhich the two members can docu-ment how they will meet the chal-lenges most effectively.”

Sherri Welch: (313) 446-1694,[email protected]. Twitter: @sherriwelch

‘Frontiers to Factory’ exhibit calls on biz

Food: Charities hash out agreement on collection, distribution■ From Page 3

Museums: Upgrading, growing so they don’t become history■ From Page 3

Forgotten Harvest begins job training, mulls Ontario warehouseForgotten Harvest has launched

a pilot program to train people forjobs in the food industry that re-quire knowledge of food safety.

Separately, the food rescue’sCanadian affiliate is consideringa new distribution warehouse inOntario.

Forgotten Harvest this year be-gan a three-month-long job train-ing program with about six peo-ple. J.P. Morgan Chase & Co.provided a $25,000 grant to launchthe program.

“It gets people out of poverty,helps people who need food andhelps with our (operating) needs,”said President and CEO Susan El-lis Goodell.

Participants get about a halfday’s worth of classroom trainingfrom Ypsilanti-based Pic Food

Safety Inc., which has offices atForgotten Harvest’s Oak Parksite. Students spend the rest of theday helping to sort and repackageperishables at the nonprofit.

In addition to readying peoplefor jobs, the program will helpmeet the need for 42-52 volunteersper day, Goodell said.

Forgotten Harvest hopes to en-roll about 30 people in the pro-gram every three months.

Also, Goodell said the agency’sCanadian affiliate, Forgotten Har-vest Canada, is consideringwhether to establish a distribu-tion warehouse in Ontario tomeet its growing efforts there torescue and distribute food fromhydroponics producers.

Forgotten Harvest, which be-gan rescuing food from hydropon-

ics producers in southern Ontarioin 2007, created an independentCanadian nonprofit last May.

The Canadian nonprofit, whichalso operates under Goodell’s di-rection, accounts for the food itrescues separately.

Since July 2011, Forgotten Har-vest Canada has forged relation-ships with 18 Canadian distribu-tion agencies serving Essex Countyin Ontario and has distributed asmuch food as they could accept,more than 70,000 pounds, said RussRussell, chief development officerfor Forgotten Harvest.

Forgotten Harvest has broughtmore than 2 million pounds offood back across the border tometro Detroit pantries and shel-ters, Russell said.

— Sherri Welch

Wells

Goodell

The Detroit Historical Society isputting the call out for Detroit’soldest continuously operatingcompanies in an effort to expandits “Frontiers to Factory Exhibit”at the Detroit Historical Museum.

Specifically, the museum islooking for companies that wereestablished before 1901.

The exhibit highlights some ofDetroit’s longest-running busi-nesses — some operating, somenot — including Stroh Brewery Co.;Jacob Bottle Co.; M.T. Gardner & Co.,which now operates as the Ferry-Morse Co.; and J.L. Hudson’s.

Eligible businesses can for-ward the company’s original,subsequent and current names,the year founded, original prod-uct or service and how thoseevolved over time to the muse-um’s director of exhibitions andexperiences, Tracy Irwin, at [email protected] .

The historical society is alsoseeking early photographs of theoldest businesses, logos used overthe years, and small artifacts such

as business cards and stationery. All company submissions must

be received by June 29 for poten-tial inclusion.

The society is also seeking pho-tographs of Detroiters with theirfavorite cars for possible use as itupdates its “Motor City” exhibit.

It plans to create a digital ver-sion of the “Sold” wall display atthe museum that has featuredphotos of residents with their fa-vorite classic cars for over 15years, adding new photos of carenthusiasts with their favoritevehicles.

The digital version will show-case the expanded collection ofphotos on a monitor as guests en-ter the exhibit.

High-resolution scans of pho-tographs can be sent for consid-eration with the full names of allpeople in them, the make, modeland year of the vehicle and yearpurchased to Irwin by April 30.For more information, call (313)833-1405.

— Sherri Welch


nity to fill niches in the marketstatewide, he said. A total of fourMichigan tribes are seeking sevenoff-reservation casinos.

“It’s really galvanized the pri-vate commercial interests,”Fletcher said. Private investorsmay be thinking, “Why not us,too?” he said.

Citizens for More Michigan Jobs —a group whose backers include for-mer state House Speaker RickJohnson andMitch Irwin, aformer state sen-ator and memberof the Granholmadministration— is proposingcasinos on specif-ic sites in eightstatewide locales:Detroit, Pontiac,Romulus, Ma-comb County’sClinton Town-ship, GrandRapids, DeWitt Township nearLansing, Birch Run Township insouthern Saginaw County andClam Lake Township near Cadil-lac.

The group needs to collect322,609 signatures by July 9 toplace its proposal on the Nov. 6 bal-lot. For any of the individual casi-nos to go forward, the proposalwould need to have a majority of“yes” votes in that community inaddition to statewide approval.

They would join the three pri-vately owned casinos in Detroitand the 22 Indian-run operationsthroughout the state.

Emily Gerkin Palsrok, spokes-woman for Citizens for MoreMichigan Jobs, said the group isprepared to spend $50 million onthe ballot campaign to combatwhat it expects will be fierce oppo-sition from existing casino opera-tors.

She said the group is hopefulthat its message of creating jobsand generating revenues for thestate and local governments willresonate with voters.

The argument was dismissed by a spokesman for the group’smain opponent, Protect MI Vote, a coalition consisting of the MGMGrand Detroit, Greektown Casino-Hotel in Detroit, the SaginawChippewa Indian Tribe (owner ofSoaring Eagle Casino & Resort nearMt. Pleasant) and the NottawaseppiHuron Band of Potawatomi Indians(owner of FireKeepers Casino nearBattle Creek).

“We will want to see if this newgroup really has the money theyclaim to have raised to fund thiscampaign,” James Nye, Protect MIVote spokesman.

He called the petition drive“reckless.”

“Economically, this makes nosense whatsoever. We’re in a ma-ture gaming market here in Michi-gan,” Nye said, citing the state’spopulation decline and strugglingeconomy. “The pie is not going togrow any larger. We are beyondthe point where you can open up acasino and see economic growthand job growth.”

Citizens for More MichiganJobs has also rankled leaders ofMichigan Is Yours, an older groupthat is conducting a similar peti-tion drive.

The group, whose members in-

clude former Detroit Lions runningback Billy Sims, claims that Citi-zens for More Michigan Jobscopied its ideas on where to opennew casinos and for earmarking aportion of casino revenue for gov-ernmental services.

“What we’re saying is they stoleour concept,” Sims said.

Sims said that Johnson wasoriginally an adviser to MichiganIs Yours. He maintains that John-

son took thegroup’s ideas,along with someof its investors,when they had afalling out lastyear. Investorswho are nowaligned with Citi-zens for MoreMichigan Jobs af-ter originally be-ing part of Michi-gan Is Yoursinclude Andy

McLemore Jr., who’s involvedwith the proposed Detroit casino,and Anthony Gray, a backer of theproposed Romulus casino.

Michigan Is Yours leaders saidthey filed complaints regardingJohnson with state officials. Theyalso filed a lawsuit last week infederal district court in Detroit inan unsuccessful attempt to blockthe Board of Canvassers from ap-proving Citizens for More Michi-gan Jobs’ petition language.

Palsrok denied Michigan IsYours claims that her group stoletheir plans.

“Their idea is very differentfrom ours,” she said.

Michigan Is Yours, whichmounted an unsuccessful petitiondrive in 2010, is now aiming forthis year’s ballot. The Board ofCanvassers approved the languagefor the latest petition drive lastfall. The group is proposing casi-nos in Grand Rapids, Lansing, De-troit, Romulus, Benton Harbor,Saginaw and Mt. Clemens, al-though it is not identifying partic-ular parcels on which the casinoswould be located.

Sims said Michigan Is Yours isproceeding with its petition driveand signature-collection initia-tives — including a possible di-rect-mail campaign — are in theworks.

Fred Woodhams, a spokesmanfor the Michigan secretary of state,said it’s unclear whether both bal-lot initiatives would go into effectif they gain voters’ approval. Un-der state law, when two ballot pro-posals that contradict each otherare approved, the one with morevotes wins out.

“I’m hesitant to say if thesewould contradict each other,”Woodhams said.

But Hill said he’s skepticalabout either proposal’s prospects.

“Getting it on the ballot is onehurdle,” he said. “The other hur-dle is getting people to vote in fa-vor of it. I’m not sure the votes arethere.”

Hill said he conducted a surveyof rural Michigan residents lastsummer to determine their viewson a number of issues, includingcasinos. He said respondents wereoverwhelmingly opposed to the ex-pansion of non-native casinos.

“I’m looking at the numbers,and they’re not there,” Hill said.


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Casinos: Private investors climb onto bandwagon■ From Page 1

TAKING A GAMBLETwenty-two casinos are in planning stages in Michigan along two fronts: off-reservation American Indian casinos and petition drives for constitutionalamendments.

PROPOSED LOCATIONSCitizens for More Michigan Jobs — led by former state House Speaker RickJohnson and Mitch Irwin, a former state senator and member of theGranholm administration — is proposing casinos on eight specific sitesstatewide. Each of the proposed locations has separate investors. Thegroup needs to collect 322,609 signatures by July 9 to place its proposalon the Nov. 6 ballot. The proposed locations:

Ballot drivesCitizens for More Michigan Jobs � The plan: Build eight casinos onspecific sites: in Detroit, Romulus,Clinton Township, Pontiac, GrandRapids, Birch Run Township, DeWittTownship near Lansing and ClamLake Township near Cadillac.(Details below.)� Where it stands: Petition driveunder way to collect 322,609signatures statewide by July 9 toput the measure on the Nov. 6ballot.� What needs to happen: Voterapproval Nov. 6 both statewide andin communities where casinos areproposed.

Michigan Is Yours � The plan: Build seven casinos: inDetroit, Romulus, Mt. Clemens,Grand Rapids, Lansing, BentonHarbor and Saginaw.� Where it stands: Petition driveunder way to collect 322,609signatures statewide by July 9 to putthe measure on the Nov. 6 ballot.� What needs to happen: ApprovalNov. 6 by voters statewide.

Off-reservation Indian casinos Sault Ste. Marie Tribe of ChippewaIndians

� Where: Downtown Lansing.

� Where it stands: The Lansing CityCouncil has approved the plan, andtribe members are voting onwhether to proceed.

� What needs to happen: If the tribevotes to proceed, the U.S.Department of the Interior mustalso give its OK.

Sault Ste. Marie Tribe of ChippewaIndians

� Where: Pinnacle Race Course,Romulus

� Where it stands: The tribe haspurchased seven acres on theracetrack property and partneredwith Florida developer Mike Sawruk,who grew up in Sault Ste. Marie.� What needs to happen: Wouldrequire U.S. Department of theInterior OK.

Bay Mills Indian Community � Where: Vanderbilt, Flint Townshipand Port Huron� Where it stands: The tribe openeda casino in November 2010 inVanderbilt that a federal judgeordered closed in March 2011. Ithas purchased property in FlintTownship and Port Huron but hasnot opened casinos there.� What needs to happen: FederalJudge Paul Maloney of GrandRapids is expected to rule later thisyear on whether to allow theVanderbilt casino to reopen or topermanently close it.

Hannahville Indian Community � Where: Romulus� Where it stands: The tribe owns a9.8 acre parcel in the city and sofar has unsuccessfully soughtfederal approval to proceed withcasino plans.� What needs to happen: The U.S.Department of the Interior mustgive its OK.

Little River Band of Ottawa Indians� Where: Fruitport Township nearMuskegon, former Great LakesDowns racetrack� Where it stands: The tribepurchased 233 acres including theracetrack property in 2008. Gov.Rick Snyder opposes the casinoplans.� What needs to happen: TheSnyder administration and the U.S.Department of the Interior musteach give their OK.

� Eldorado Golf Course, Clam LakeTownship, near Cadillac. Leadinvestor: Bob Meyer, golf courseowner. � Birch Run Expo Center, Birch RunTownship, north of Flint. Investors:To be determined.� Land at 221 Logan St. SW, nearGrandville Avenue and WealthyStreet in Grand Rapids. Investors:To be determined.� Land at M-59 and I-94 in ClintonTownship, Macomb County. Leadinvestor: Brien Baker, who has a St.Clair Shores address and is listedon LinkedIn as co-founder of PointeCapital Partners LLC.� One of two possible Detroit sites:The Pontchartrain Hotel across fromCobo Center or property in the 2200block of East Jefferson Avenuewhere Jefferson Chevrolet islocated. Lead investor: AndrewMcLemore Jr., president and CEO ofthe Detroit Casino Partnership.Other investors in the Detroit casinoare Detroit funeral director O’Neil

Swanson, boxing promoter EmanuelSteward and Four Tops singer DukeFakir. McLemore works indevelopment and construction asexecutive vice president of Detroit-based A-Mac Property LLC and A-Mac Construction Services. He is aformer member of the RepublicanNational Committee and also is onthe board of directors of theMichigan Black Chamber ofCommerce.

� Land at Vining and Wick roadsnear Detroit Metropolitan Airport,Romulus. Lead investor: AnthonyGray, owner of DRM Maintenanceand Management in Dundee.� Former Lansing Factory OutletMall, on Clark Road near Old U.S.27 and I-69 in DeWitt Townshipnorth of Lansing. Lead investor:Property owner Sam Eyde, owner ofEast Lansing-based Sam EydeManagement Co.

� Pontiac Silverdome, Pontiac.Lead investor: Silverdome ownerAndreas Apostolopoulos.

Getting it on theballot is one hurdle.The other hurdle is

getting people to votein favor of it.

James Hill,Central Michigan University

”

“



Toyota plans to hire 150 byend of the year

oyota Motor Corp.plans to hire 150 engi-neers, researchers

and others in SoutheastMichigan by year’s end tohelp localize more vehicledesign and development inNorth America, AutomotiveNews reported.

Toyota Technical Centerwill hire a majority of thenew employees at its facili-ties in Ann Arbor andSaline. Toyota also said itplans to add another 100jobs to the Michigan techni-cal centers over the nextfive years to advance en-gine and transmission de-velopment.

ON THE MOVE� A123 Systems Inc. has

hired two executives to im-prove quality and reducecosts: Ray Alcodray is the newchief information officer;Don Kaiser is global vicepresident of quality. Alco-dray had been global infor-mation technology directorof manufacturing, qualityand light-vehicle systemsfor Toledo-based Dana Corp.Kaiser had been CEO of LeanAlliance Inc.’s North Ameri-can operations in Troy.Both will work out of A123’sLivonia battery plant.

� Kirk Albert has beennamed president ofKeyBank’s Michigan mar-ket, succeeding TimGretkierewicz, who wasnamed district executivefor business banking inCleveland. Albert joinedKey in 1992 and has held avariety of executive posi-tions.

COMPANY NEWS� The San Francisco-

based social media compa-ny Twitter Inc. is movingseveral employees into theMadison Building nearGrand Circus Park to workwith Detroit-based compa-nies.

� Spirit Airlines Inc. saidit’s adding a daily nonstopflight between Detroit Metro-politan Airport and Dallas/FortWorth International Airport, be-ginning June 21.

� Japan-based automo-tive supplier G.S. ElectechInc. has agreed to pleadguilty for its involvementin the global wire-harnessprice-fixing scandal andpay a $2.75 million fine. Noexecutives from the suppli-er have been charged atthis time.

� Dearborn-based Sever-stal Dearborn LLC hasreached a five-year tenta-

tive labor agreement withthe UAW that covers 1,100production and mainte-nance workers representedby Local 600. Details wereunavailable.

� Detroit-basedLakeshore TolTest Corp. wasthe winner among 11 bid-ders to build the new com-mand center for the AfghanNational Police in Kabul, un-der a $54.3 million contractawarded through the U.S.Army Corps of Engineers.

OTHER NEWS� The Detroit City Council

voted for a resolution to im-mediately raise the corpo-rate income tax rate forbusinesses based in the cityto 2 percent from 1 percent.The increase will affectonly C-corporations andwill not apply to partner-ships, professional and lim-ited-liability corporations.

� A hotel investor fromMexico, Gabriel Ruiz, haspurchased the formerPontchartrain Hotel in De-troit and plans to continueoperating the building as ahotel. No timeline is inplace for opening the hotel,and few details are avail-able about the buyer.

� An e-commerce part-nership between the Michi-gan Economic DevelopmentCorp. and Akron, Ohio-based Export Now, an exportservices business, has beencreated to help consumergoods companies in thestate sell products in Chinasimply and cheaply. Com-panies that participate inthe Pure Michigan Export Nowpilot program will havetheir products listed underthe Pure Michigan headingon a Chinese-languagebusiness-to-consumer web-site. Informational forumson the program are plannedthroughout the state, in-cluding 2-4 p.m. April 16 atthe Detroit RegionalChamber.

� The University of Michi-gan has raised its footballticket prices for 2012. A sea-son ticket for the Wolver-ines’ home schedule is $390,for an average of $65 pergame, up from $60. Individ-ual game tickets are $75, upfrom $70, except for the Oct.20 game against rival Michi-gan State University. Thatticket is $95.

� The Southeast MichiganPurchasing Managers Indexrose to 66.1 in March, thehighest reading since lastMay. An index above 50 in-dicates economic expan-sion. The three-month aver-age is 65.7.

� U.S. District Court JudgeDenise Page Hood has tossedout Pontiac’s civil lawsuitagainst Blue Cross BlueShield of Michigan over fa-vorable charging agree-ments that the state’s

largest insurer allegedlyhas with 22 Michigan hos-pitals. Hood said the exis-tence of the “most favorednation-plus” agreementwas not proof that theagreements with hospitalsharmed competition or thatthe Blues were unjustly en-riched at Pontiac’s ex-pense.

� Livingston and Washt-enaw counties ranked No. 4and 5, respectively, in aMichigan Department of Com-munity Health report on thehealth of the residents ofthe state’s 83 counties.Counties are ranked bymortality and morbidity,health behaviors, clinicalcare, social and economicfactors and physical envi-ronment. How other areacounties ranked: Oakland,16; Monroe, 38; Macomb, 41;St. Clair, 49; and Wayne, 81.Leelanau County rankedNo.1 in the state.

� The Justice Departmentsays Highland Park SchoolBoard member Robert Davishas been indicted on accu-sations he stole $125,000from the financially strug-gling district, AP reported.The union activist who hasfiled multiple Open Meet-ings Act challenges againstgovernment authoritiessays he’s not guilty andthat the case is politicallymotivated.

� Plans are moving for-ward for a Detroit statue ofthe fictional crime-fightingcyborg RoboCop. The DetroitNews reported that a Robo-Cop model is being scannedat a studio in Canada forartists to create foam moldsthat will be shipped to De-troit’s Venus Bronze Works,where the parts of the statuewill be cast. The locationand a completion date areuncertain.

� Roy Roberts, emer-gency manager for DetroitPublic Schools, said hisplans for next school yearinclude turning 10 highschools into self-governingschools, where more keydecisions are made at theschool level instead of bythe district. A governingcouncil for each schoolwill be made up of civic,community, business, gov-ernment and local leaders,along with parents. Otherchanges include reorganiz-ing the district’s adminis-tration and generatingrevenue from school ser-vices. Mike Flanagan, statesuperintendent of publicinstruction, told The De-troit News that he backsthe plan.

OBITUARIES� Robert Vogelei, a for-

mer chief designer forChevrolet and design direc-tor for General Motors, diedMarch 29. He was 85.

ormer three-termMichigan Gov. JohnEngler is getting no-

tice for his effort to reshapethe conservative BusinessRoundtable into a more in-fluential lobbying outfit —

by beingclassic JohnEngler.

Politico,the Beltwaymedia out-let, lastweek pro-filed En-gler’s stew-ardship of

the pro-business public poli-cy trade group — made upof CEOs of major U.S. corpo-rations — as it more aggres-sively tackles issues such ashealth care reform, immi-gration, and tax and pen-sion reform.

“John Engler is a politi-cian’s politician: think poli-cy, folksy banter and asharp elbow mixed in nowand then,” Politico wrote.

That description shouldsound familiar to Engler’sfoes and allies in Lansing.

Politico described En-gler’s strategy of bringingsolutions to meetings withpoliticians while buildingcoalitions, lobbying and, ifrequired, litigating.

“The roundtable’s aggres-sive stance is a reminderthat even in an era of grid-lock on Capitol Hill, compa-nies are acutely interestedin Washington’s plans forthe issues they care aboutmost — and they want to beout in front of majorchanges,” the media outletwrote.

A sampling of roundtable

membership includes topexecutives from the Detroit3, AT&T Inc., Bank of America,BorgWarner Inc., CitigroupInc., Coca-Cola Co., GeneralElectric Co., Goldman SachsGroup, IBM, Kelly ServicesInc., Microsoft Corp. and Proc-ter & Gamble Co.

The story can be found atpolitico.com.

State campaign financerecords go mobile

Want state political dona-tion information whileyou’re on the go? There’s anapp for that.

The Michigan Secretary ofState has launched free“Michigan Campaign Fi-nance Search” iPhone andiPad apps. They allow usersto search for state-level po-litical contribution recordsby candidate names andcommittees as well as byelection period, party affili-ation, committee type andthe office being sought.

The app displays directand in-kind contributionsreceived, expenditures, anddebt owed, the office said ina statement. Records formore than 11,000 active andnon-active political commit-tees and millions of transac-tions are available.

The apps are availablefrom the Apple App Store.An Android version is un-der development.

The apps, which requireApple’s updated iOS5 mo-bile operating system, weredeveloped by Olathe, Kan.-based NIC Technologies LLC,which also runs the Michi-gan Bureau of Elections’ elec-

RUMBLINGS WEEK ON THE WEBF R O M W W W . C R A I N S D E T R O I T . C O M , W E E K O F M A R C H 3 1 - A P R I L 6

Word is Gilbert is buying again

D.C.’s toughtalker is theEngler of oldF

T

BEST FROM THE BLOGSR E A D T H E S E P O S T S A N D M O R E A T W W W . C R A I N S D E T R O I T . C O M / B L O G S

We sent our videointern, AndrewTempleton, out tocapture the essence ofOpening Day in Detroit.Take a look at what hebrought back.”

“Check out Opening Day video

Word around town isthat Dan Gilbert's nextbuilding purchase will bea downtown apartmentbuilding. He is innegotiation to purchasethe Claridge HouseApartments at 1514Washington Blvd.,according to twosources.”

“

tronic campaign filing sys-tem.

Olbermann critical ofGranholm in TV lawsuit

Jobless TV pundit KeithOlbermann took shots at for-mer Michigan Gov. JenniferGranholm’s “The War Room”political talk show on Cur-rent TV in a lawsuit filed lastweek against the cable net-work after it fired him.

In the complaint, Olber-mann accuses Current(among many things) of us-ing his likeness without hisrequired permission as partof an advertisement forGranholm’s show, which hetermed “low quality.”

The lawsuit, filed in LosAngeles County, doesn’tmake it clear if Olbermannmeant the technical qualityof Granholm’s hourlongweeknight show is low, orthe content of the programdoesn’t meet his standards.Or both.

Olbermann also allegesthat Current was bound toconsult him before hiringthe host of any show thatfollowed his 8 p.m. “Count-down,” and the suit saysthat the network didn’t doso on Granholm’s hiring.

BITS & PIECESThe season finale of Open

City, the monthly businessmeeting that featuresspeakers or panels dis-

cussingsome aspectof startingor main-taining abusiness, isset for 6p.m. April16 at CliffBell’s in De-troit. Atten-

dees will pitch their busi-ness ideas for 60 secondsand panelists will each give30 seconds of feedback.Crain’s Detroit BusinessWeb Editor Gary Anglebrandtwill moderate. Details areat opencitydetroit.com.

Engler

Anglebrandt

Reporter Nathan Skid’s Detroit-area restaurant blogcan be found at www.crainsdetroit.com/skid

Reporter Dan Duggan’s blog on commercial real estatecan be found at www.crainsdetroit.com/duggan


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