Crain's Detroit Business, March 31, 2014 by Crain's Detroit Business

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www.crainsdetroit.com Vol. 30, No. 13

MARCH 31 – APRIL 6, 2014

$2 a copy; $59 a year

Page 3 Aubrey Lee

Republican districts won big in $115M in road projects, and state Democratic lawmakers fear a repeat trip

Pavement of partisanship NEW FEATURE: Leaders over 65 whose impact on others has been timeless More companies sign up for private health exchanges This Just In Blue Cross to decide on same-sex couples coverage Blue Cross Blue Shield of Michigan still covers same-sex spouses in the state as domestic partners after about 300 gay couples obtained marriage licenses this month, but it is researching whether it must change that practice. The state’s largest private insurance carrier considers married and unmarried samesex couples domestic partners, covered in employee health benefit plans if the employer requests a rider for such coverage, said Blue Cross’ director of corporate communications, Helen Stojic. Unmarried opposite-sex partners are not covered, she said, meaning the optional rider is for a same-sex benefit only. “Domestic partners can be married to each other, but they don’t have to be,” she wrote in an email. “Like all insurers, we are going to have to sort through a series of state and federal regulations and rulings on this topic.” Among those is a March 14 report from the federal Centers for Medicare and Medicaid Services giving guidance on what standards health insurance issuers had to meet to comply with federal law. Michigan had no same-sex marriage, until U.S. District Judge Bernard Friedman struck down the state’s ban on such unions March 21. A stay reinstated the ban the next day, but more than 300 couples already obtained marriage licenses. — Chad Halcom

BY CHRIS GAUTZ CAPITOL CORRESPONDENT

here may not be “Republican roads or Democrat roads,” as lawmakers so often like to say, but when Republicans carved out a piece of the road budget for special allocation last year, a whole lot more roads in Republican districts benefited. And that, say House of Representatives leadership, wasn’t an accident. A project list from the Michigan Department of Transportation shows that of 108 projects approved by Gov. Rick Snyder and the Republican leaders of the House and Senate, 87 were request-

ed by Republican legislators and only two by Democrats. Democrats fared better with the governor: Twelve of the 19 projects he designated were in Democratic districts, including $4 million for Belle Isle improvements. (See Page 21.) Democratic districts benefited from road projects in six additional projects, but only because the request came from a Republican whose district overlapped. The overall amount involved is small — $115 million, compared to MDOT’s $1.28 billion roads budget — but legislative Democrats are worried the process is about to be repeated.

The online version of this story allows you to dig through a database of road projects throughout Michigan.

In the coming weeks, Republican leaders in the House and Senate, along with Snyder, will begin combing through another long list of priority road and bridge repair projects and decide which ones will receive funding this summer from another $115 million special allocation. See Roads, Page 21 NATHAN SKID/CRAIN’S DETROIT BUSINESS

Tiger talent beats nods Bobbleheads a fan favorite, but good team a better draw

Drones startup awaits cash, flight clearance BY TOM HENDERSON

BY BILL SHEA

CRAIN’S DETROIT BUSINESS

SkySpecs LLC is readying the business flight plan for its dronemaking operation. The Ann Arbor company, which focuses on utility craft designed for site inspections, is awaiting — like all commercial drone companies — Federal Aviation Administration regulation of the in- Local firms take flight dustry. with drone Also needed for tech, Page 22 liftoff: more money. Hobbyist drones are legal, for now, with restrictions on height and proximity to airports. But for commercial manufacturers like SkySpecs, drone flight is grounded until testing is completed in six states and the FAA weighs in on rules for the industry.

ajor League Baseball’s secret weapon to boost attendance for the past 15 years has been a silly one: the bobblehead. Silly, but effective. The Detroit Tigers, though, thanks to being an annual playoff contender with a roster of superstars, use the popular nodding-head figures as brand builders and loyalty rewards more than for boosting attendance. “The driving force behind our items is to grow our relationship with our fans and their affinity with our brand,” said Eli Bayless, the Tigers’ director of promotions and in-game entertainment. “We spread it out among different days of the week to make sure that value is there.” The Tigers plan to give away a combined total of 35,000 bobbleheads of three players this season, among dozens of other promoBayless tions over 81 home games. Baseball’s front offices love bobbleheads, which

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ANJANA SCHROEDER/CRAIN’S DETROIT BUSINESS

It will cost the Tigers up to $4.25 each for the 15,000 Max Scherzer bobbleheads that will be given away June 5. Two other players will get bobblehead honors this season.

have been a staple of ballpark promotional marketing since 1999. The dolls are the most effective giveaway at boosting attendance, according to 55 percent of sports team executives surveyed in 2011 by Haddonfield, N.J.based analysts Turnkey Sports & Entertainment Inc. Next closest on the list were T-shirts at 17 percent and T-shirts/jerseys at 16 percent. See Tigers, Page 25

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MICHIGAN BRIEFS One-stop doc shop: Health clinic to open in Meijer store In December, Crain’s reported on the emergence of health clinics in metro Detroit CVS stores, under a contract between Detroit-based Henry Ford Health System and MinuteClinic, a division of Rhode Islandbased CVS Caremark Corp. This past week in West Michigan, Kalamazoo-based Bronson Healthcare said it would open a retail health clinic called FastCare in a Meijer Inc. store in Portage, the Grand Rapids Business Journal reported. FastCare provides treatment for minor medical conditions and symptoms such as allergies, cold and flu symptoms, laryngitis, poison ivy, ringworm and upper respiratory infections. The clinic, expected to open this week, accepts walk-in patients only.

‘Tonight Show’ bit gives plug to maker of kids’ blocks If you’re familiar with Jimmy Fallon as host of “Late Night” and, now, “The Tonight Show,” you know that one of his schticks is playing popular songs to the accompaniment of small, handheld instruments you would expect to see in Elmo’s backup band, as opposed to the E Street Band. Recently, Fallon and Co. did its interpretation of “Let It Go” from the movie “Frozen,” fronted by the woman who made it relentlessly famous: Idina Menzel — or as John Travolta calls her in his mental AutoCorrect, “Adele Dazeem.” Among the instruments: wood blocks embossed by the letters “L,” “I” and “G” and made by Grand Rapids-based Lindenwood Inc. Enter the power of

guilty to embezzlement in January. Okun Bros. began to take note after its accounts weren’t being paid and the owner infused $50,000 and then $55,000 of his own money to keep the store in the black.

Kalamazoo shoe store takes $169K kick in gut from embezzler In Grand Rapids, the excitement If, for the sake of argument, you is measurable, as well as palpable grew up; and if you grew up in Kalamazoo, you’re familiar with Okun Bros. Shoes, in business since 1920. But it nearly was put out of business, MLive.com reported, after a worker stole nearly $169,000, court records indicate. Nickolas Lubrick, who claimed that a gambling problem drove him to commit the deed, pleaded

Grand Rapids ranks eighth on a list of “America’s 10 Most Exciting Mid-Sized Cities” as determined by Movoto, a national residential real estate broker, the Grand Rapids Business Journal reported. Movoto examined data from 117 cities with populations of 120,000 to 210,000 residents, judging each on nightlife per capita; live music

Twitter. MLive.com reported that Fallon’s tweeting generated 243 retweets and 1,349 favorites for the company. Lindenwood owner Pete Bultman called the cameo of the company’s Uncle Goose blocks “quite cool.” And in an era of smartphones and tablets, it’s notable that over the past five years, the company’s revenue has increased by double digits, MLive reported. Lindenwood employs about 20 people. Bultman said Lindenwood doesn’t pay for product placements but does make them available as props. He said he also has seen the blocks in the TV show “Mad Men.” (Probably reeking of cigarette smoke and scotch.)

venues per capita; active-life options such as parks and outdoor activities per capita; percentage of restaurants that are fast food, with a lower percentage being better (well, la-di-dah); and the percentage of residents ages 20-34. No. 1 in midsize excitement: Providence, R.I.

MICH-CELLANEOUS 䡲 Teleperformance USA plans to hire an additional 350 people at its Cascade Township call center near Grand Rapids, MiBiz reported. Teleperformance, a Utah subsidiary of a French-owned multinational company, hired 325 people upon opening the call center last year. 䡲 A U.S. District Court jury in Bay City awarded $3.8 million to Ronald

Loesel and members of his family, whose effort to sell land for a WalMart Stores Inc. development was blocked after the Frankenmuth City Council passed a law restricting the size of stores to 65,000 square feet or less, The Saginaw News reported. 䡲 Dave Lamp, a 1980 graduate of the Michigan State University College

of Engineering, and his wife, Denise, are giving $2.5 million to the MSU engineering program, The Associated Press reported. Lamp is president and CEO of Connecticutbased Northern Tier Energy LP. 䡲 Grand Rapids will have a team in the National Basketball Association’s Development League, and it will be an affiliate of the Detroit Pistons, MLive.com reported. Under an agreement, undisclosed owners will purchase and relocate the Springfield Armor from Massachusetts for the 2014-15 season. 䡲 Comstock-based Bell’s Brewery Inc. has begun offering its summer staple: Oberon. For the first time this year, the wheat ale is being sold in cans. Events were planned at bars around the state, apparently because beer in cans is more exciting than most of us realized. Find business news from around the state at crainsdetroit .com/crainsmichiganbusiness. Sign up for Crain's Michigan Business e-newsletter at crains detroit.com/emailsignup.

CORRECTIONS 䡲 A story on Page 4 of the March 17 issue listed an incorrect steel sup-

plier for the Floyd Leg; the actual supplier is Jackson-based Alro Steel Corp. The story also spelled Airtec Corp. incorrectly. 䡲 Because of incorrect information provided to Crain’s, the March 24 People Spotlight should have said that Carma Peters, the new president and CEO of Affinity Group Credit Union, attended Monroe County Community College and that CEO Glenda West left the company.

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Private exchanges multiplying More companies sign on as health care alternative BY JAY GREENE CRAIN’S DETROIT BUSINESS

Private health insurance exchanges are making a slow but steady entrée into Southeast Michigan, with about 70 local companies using the exchanges as one way to pull back the curtain on health care coverage and costs.

Two new private exchanges have signed up more than 70 companies with coverage for 11,000 individuals. The exchanges are one option to the Affordable Care Act’s public health exchange and traditional defined benefit coverage via employers. Executives with Blue Cross Blue Shield of Michigan’s GlidePath — the state’s first private exchange,

formed in 2011 — and Royal Oakbased iSelect Custom Benefits Store say sales have progressed as expected, although the slow rollout of Obamacare last fall has caused some companies to delay overhauling their health benefit plans. “Private exchanges offer an alternative to employers to manage employee benefits in a different way,” said Ken Dallafior, executive vice president of group business and corporate marketing for Blue Cross. “If they want to stay in the game, it is another way to manage (health benefits) with and for their

employees.” Dallafior said the more than 1,000 agents certified to sell GlidePath have done a good job explaining the private exchange concept to employers. GlideDallafior Path has about 50 companies with 10,000 employee lives on the exchange, he said. See Exchanges, Page 23

‘A hero among us’

THE LONG VIEW... This is the first in a series of occasional profiles about metro Detroit leaders over the age of 65.

Meetings and Conventions

Key indicators show hotel biz rebound continues, Page 11 Company index These companies have significant mention in this week’s Crain’s Detroit Business: 21 Century Holdings . . . . . . . . . . . . . . . . . . . . . . . 14 Ally Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 BAE Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Bernard Financial Group . . . . . . . . . . . . . . . . . . . . . 4 Blue Cross Blue Shield of Michigan . . . . . . . . . . . 1, 3 College for Creative Studies . . . . . . . . . . . . . . . . . 13 Council for Michigan Foundations . . . . . . . . . . . . . . 5 Detroit Aircraft . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Detroit Economic Growth . . . . . . . . . . . . . . . . . 4, 24 Detroit Metro Convention & Visitors Bureau . . . . . . 11 Detroit Regional Convention Facility Authority . . . . 11

Banker’s counsel, influence aided rise of Detroit’s black business community

Detroit Tigers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 FlowerDeliveryExpress.com . . . . . . . . . . . . . . . . . . 22 Fred A. and Barbara M. Erb Family Foundation . . . . . 7 General Dynamics Land Systems . . . . . . . . . . . . . . . 3 Heidelberg Project . . . . . . . . . . . . . . . . . . . . . . . . . 7 Hello Aerial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

BY GARY ANGLEBRANDT

Hendricks-Berkadia Apartment Real Estate Advisors . . 4

SPECIAL TO CRAIN’S DETROIT BUSINESS

Hotel Investment Services . . . . . . . . . . . . . . . . 12, 14 Invest Detroit . . . . . . . . . . . . . . . . . . . . . . . . . 18, 22

owadays, no one would bat an eye to see an AfricanAmerican sitting in the executive chair at a large bank. It was different when Aubrey Lee started out in the 1950s in the segregated South. But Lee’s not one to shy away from a more pioneering path. He went to a predominantly white college, and the career that followed took him from an entry-level position to the C-suite. In the process, he played a pivotal role in helping Detroit’s black business community rise.

iSelect Custom Benefits Store . . . . . . . . . . . . . . . . 3 LunaTech 3D . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Marcus & Millichap Real Estate Investment Services . 4 Mercer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Parkway Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Pulse220 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 R4 Robotics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Roxbury Group . . . . . . . . . . . . . . . . . . . . . . . . . 4, 14 Royal Park Hotel . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Run Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Schostak Bros. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Singh Development . . . . . . . . . . . . . . . . . . . . . . . . . 6 SkySpecs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Tata Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Trans Inns Management . . . . . . . . . . . . . . . . . . . . 14 University of Michigan . . . . . . . . . . . . . . . . . . . . . 22 Village Green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

See Lee, Page 24

Westin Book Cadillac Detroit . . . . . . . . . . . . . . . . 12 Whitney Partners . . . . . . . . . . . . . . . . . . . . . . . . . 14

Aubrey Lee used his managerial role at the National Bank of Detroit to bring in more African-Americans as employees and extend commercial loans to minorities. JACOB LEWKOW

General Dynamics: Armored vehicle bid process aids BAE

Department index BANKRUPTCIES . . . . . . . . . . . . . . . . . . 5 BUSINESS DIARY . . . . . . . . . . . . . . . . 20 CALENDAR . . . . . . . . . . . . . . . . . . . . 20 CLASSIFIED ADS . . . . . . . . . . . . . . . . 21

BY CHAD HALCOM CRAIN’S DETROIT BUSINESS

BAE SYSTEMS

The U.S. Army wants to replace its massive, aging fleet of M113 vehicles.

Defense contracting rivals BAE Systems Inc. and General Dynamics Land Systems could learn this week if their Sterling Heights engineers have been on a level playing field in vying for a $5 billion armored vehicle contract, or if the whole competition needs a do-over. General Dynamics is

THIS WEEK @ WWW.CRAINSDETROIT.COM

claiming the U.S. Army essentially stacked the deck in favor of BAE winning the bid; BAE says the intellectual property driving the bid process is largely owned by the military and creates a bid competition that follows the rules. The fracas over the bidding process now sits in the hands of an Army authority. The Headquarters Army Materiel Command Bid Protest Decision Authority originally was to

make a decision last week on General Dynamics’ preemptive bid protest. Now, the Army has moved its decision date to this Friday. The Army won’t even finish taking bids from interested contractors until May 28 on its November request for AMPV proposals. It’s unusual for a bidder to protest so early in a bid solicitaSee Defense, Page 23

More than rivets ... but still riveting This week, Crain’s launches an e-newsletter covering the manufacturing industry. Read Dustin Walsh’s blog at crainsdetroit.com/blogs, and watch for next week’s Focus section devoted to advanced manufacturing.

KEITH CRAIN . . . . . . . . . . . . . . . . . . . . 8 MARY KRAMER . . . . . . . . . . . . . . . . . . 9 OPINION . . . . . . . . . . . . . . . . . . . . . . . 8 OTHER VOICES . . . . . . . . . . . . . . . . . . 8 PEOPLE . . . . . . . . . . . . . . . . . . . . . . 19 RUMBLINGS . . . . . . . . . . . . . . . . . . . 26 WEEK ON THE WEB . . . . . . . . . . . . . . 26

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Easier financing rejuvenates downtown apartment market BY KIRK PINHO CRAIN’S DETROIT BUSINESS

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Seven years have passed since The Roxbury Group first proposed an 80-unit condominium development downtown. But with an easier road to financing for Detroit apartments than condos — because of lender acknowledgment on the increased demand for central business district rental units — the Detroitbased developer now has its eyes set on The Griswold becoming a COURTESY OF VILLAGE GREEN COS. $22 million apartment developVillage Green is negotiating to build Statler City Apartments on the site of the ment instead. former Statler Hilton Hotel. The Detroit Economic Growth Corp. received Downtown Development Authority board approval last week to negotiate a development agreement for The Griswold — which would have 80 one-, two- and threebedroom apartments at Griswold Street and Michigan Avenue. Separately, Farmington Hillsbased Village Green Cos. will also begin development agreement negotiations with the DEGC for Statler City Apartments, a $35 million to $40 million development with 200250 apartments on the site of the former Statler Hilton Hotel at Washington Boulevard and Park Avenue. The Griswold was originally proCOURTESY OF THE ROXBURY GROUP. posed in 2007 as condos in five stories atop a 10-story parking garage The Griswold originally was proposed in 2007 as five stories of condos atop a parking garage. The plan now is for 80 apartments. and retail building next to the Westin Book Cadillac Detroit hotel. But lenders, he said. “You can look at provides staff services to the DDA. with the recession and an inability the occupancies of other properThe projects are “a great thing to secure financing, the project was ties in downtown or Midtown. You because with apartments, you’re shelved that same year. can look at their waiting lists, bringing a younger workforce “As we know all too well, that their month-over-month rent in- downtown, which drives your enmarket spectacularly crashed in a creases. You’re able to get a better tertainment districts and you have fashion that not only left Book feel for the market downtown.” employment to support them,” Cadillac (condo) sales in limbo on In the past few years, that mar- said Kevin Dillon, partner at the a project that was already under- ket has been improving. Birmingham office of Phoenix, way, but it really tanked about Of the 10,558 downtown apart- Ariz.-based Hendricks-Berkadia four or five condo projects down- ment units, just 335 (3.1 percent) Apartment Real Estate Advisors. town,” said David Di Rita, princi- are vacant, according to WashingRoxbury is also the developer of pal of The Roxbury Group. ton, D.C.-based real estate infor- the David Whitney Building and Roxbury was planning to fi- mation service CoStar Group Inc. In the former Globe Trading Co. nance the project 2009, the va- building along the Detroit River with a construction cancy rate for the Michigan Department of Natloan, which would be was nearly 15 ural Resources. paid back through percent. Village Green is the owner of the condo sales The aver- former Millender Center Apartand a state age asking ments downtown, which have brownfield rent is $608 been renamed the Renaissance City tax credit. for a studio, Apartments at Millender Center. Vil“In the $846 for a one- lage Green, which operates 160 days when bedroom, apartment communities totaling banks were $1,328 for a 42,000 units across the country, lending on two-bedroom, purchased the 338-unit complex condo deals, and $1,407 for last March for $15 million. they would a unit with The new apartments will be hot essentially three or more commodities, said Chris Futo, seagree to provide conbedrooms, ac- nior associate in the Southfield ofstruction financing Dennis Bernard, Bernard Financial cording to fice of Marcus & Millichap Real Esconditional to the deCoStar. tate Investment Services Inc. veloper meeting a cerThe Gris“I don’t think it’s going to take tain pre-sale requirement, usually 50 percent,” Di Rita said. “When wold is expected to be financed long to fill them,” Futo said. They would be the first new you look at the rental project, with U.S. Department of Housing and you’re looking at a debt project. Urban Development funding, equity apartment construction downtown The bank is counting on income and the state brownfield tax credit in more than two decades. from the previous condo project, “What’s missing is a brand-new from the project for many years.” building that has different floor Dennis Bernard, founder and Di Rita said. Seventy-five percent of the plans, square footages, amenities, president of Southfield-based Bernard Financial Group Inc., said fi- Statler City project cost would be services, being green and technolnancing for apartment projects is funded with a bank loan; the rest ogy,” said Jon Holtzman, CEO and significantly easier to receive than will come from private equity, ac- chairman of Village Green. cording to Brian Holdwick, execuKirk Pinho: (313) 446-0412, kpincondominium projects. “It’s easier to prove the depth of tive vice president of business de- ho@crain.com. Twitter: @kirkpinthe multifamily rental market” to velopment for the DEGC, which hoCDB

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Senate bills would restore charitable tax credits for some donations BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

Bills introduced in the state Senate could restore charitable tax credits for donations to some Michigan nonprofits. SB 835, introduced Feb. 27 by Sen. Patrick Colbeck, R-Canton Township, would reinstate tax credits for donations to public broadcasting stations, higher education institutions, colleges, universities, public libraries and museums, and for donations of publicly displayed artwork. Colbeck SB 836, introduced the same day by Sen. Tonya Schuitmaker, R-Lawton—who voted in favor of eliminating the cuts in 2011 — would provide tax credits once again for donaSchuitmaker tions to food banks, homeless shelters and community foundations. The bills would restore a 50 percent credit of up to $100 for individuals on a $200 gift, a credit of up to $200 for married couples on a $400 gift and a credit of up to $5,000 for business taxpayers, or 10 percent of their Michigan business tax liability, whichever was less, in line with the prior deductions, said Council of Michigan Foundations President Rob Collier. Both bills were referred to the Senate Committee on Finance. State legislators eliminated the charitable credits when times were tough as part of across-theboard cuts, Schuitmaker said. But it’s right to bring them back given the budget surplus, improving economy and the role nonprofits play in delivering social safety net services, she said. “Charities do things on much more of a shoestring budget than the government,” she said. With financial incentive to give, people give more to charities, Schuitmaker said. As Crain’s reported last fall, the elimination of the charitable tax deduction had a decided impact on donations. Michigan community foundations saw a 27.5 percent drop in donations of $400 or less following the loss of the state credit in 2012, according to a Johnson Center on

Philanthropy at Grand Valley State University survey of 31 of those funders commissioned by the Council of Michigan Foundations. Those losses totaled more than $1.12 million for 27 community foundations that quantified the drop in those gifts in 2012. Donations of $200 and $400, the maximum gifts individuals and couples could give to get half back as a credit on their taxes, dropped

28 percent and 51 percent, respectively, according to the study. Similarly, donations of $200 to seven food banks or rescues serving 83 Michigan counties dropped 9 percent the year after the credits were eliminated, according to the Lansing-based Food Bank Council of Michigan. And donations of $400 to those emergency food nonprofits dropped 47 percent.

The introduction of the bills is good news, Collier said in an email. “I do not know at this point if either bill will be considered,” he said, “but we will offer testimony when the Legislature comes back from break.” Sherri Welch: (313) 446-1694, swelch@crain.com. Twitter: @sherriwelch

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Developers must submit information on Royal Oak land proposals this week BY KIRK PINHO CRAIN’S DETROIT BUSINESS

Three development companies have until Wednesday to submit additional information to the city of Royal Oak about their proposals to develop 4.15 acres of land north of I-696 between Main Street and Woodward Avenue. Livonia-based Schostak Bros. & Co., West Bloomfield Townshipbased Singh Development LLC and Missoula, Mont.-based Farran Realty Partners responded to a request for proposals to develop the property, which is owned by the Downtown Development Authority. The developers have been asked to provide total development cost, the amount of tax-increment financing reimbursement they would need for the property and the expected taxable value of their proposed developments, said Bill Harrison, a DDA board member. Harrison said the board could vote on April 16 whether to enter

The site, north of I-696 between Main and Woodward, has languished partly due to market timing. into development agreement negotiations with one of the companies. Schostak Bros. is proposing a 100,000-square-foot Class A office building for Novi-based Tata Technologies Inc. Tata is currently in a 39,000-square-foot building on 11 Mile Road east of Meadowbrook Road, according to Washington, D.C.-based real estate information service CoStar Group Inc. Singh is proposing a residential development with 192 townhomes and studio, one- and two-bedroom apartments. It would have 324 parking spaces.

Farran Realty is proposing a mixed-use development with a 30,000-square-foot retail and office building, a 40,000-square-foot retail and office building, and 150-180 apartments. Schostak is offering $4 million for the land, Singh is offering $2 million and Farran Realty is offering $3.25 million, according to the companies’ RFP responses. Harrison said Singh is not asking for TIF reimbursement, while Schostak and Farran are. Several developments over the years have been proposed for the site, including most recently in 2007 when Schostak ended its plans for a mixed-use hotel and retail development. It instead constructed the L.A. Fitness health club near the corner of Woodward and Washington avenues. The site has languished partly due to market timing, which has improved significantly in recent years, said one broker. “That’s such a great site,” said Paul Choukourian, managing director of the Southfield office of Colliers International Inc. “It’s the gateway to Royal Oak. It’s such a central location off the highway and it’s a high-exposure site. I think the difficulties before were purely based on the market conditions that we entered into in the late 2000s.” Kirk Pinho: (313) 446-0412, kpinho@crain.com. Twitter: @kirkpinhoCDB

IT’S TIME TO NOMINATE FOR 40 UNDER 40 Since 1991, Crain’s Detroit Business has gathered 40 of the community’s overachievers for a special salute. Past winners have started companies, found success at a young age at established businesses and made nonprofits stronger. Crain’s is seeking nominations for the 2014 class of 40 under 40, which recognizes young achievers based on factors such as financial impact and community leadership. Winners will be profiled in the Oct. 6 issue of Crain’s Detroit Business and will be honored at the awards event in November. With more than 640 alumni invited, the annual event brings together the current class with colleagues, clients, family and friends to celebrate this achievement. Nominees must be 39 or younger as of Oct. 6, 2014. Nominations must be received by April 14. For questions regarding the nominations, contact Bill Shea at bshea@crain.com or (313) 4461626. For technical questions regarding the nomination form, contact Ashley Henderson at ahenderson@crain.com or (313) 446-1685.

Ally Financial IPO seeks to generate up to $2.7B BLOOMBERG NEWS

Detroit-based Ally Financial Inc., the auto lender rescued by the U.S. government during the 2008 financial crisis, is helping the Treasury Department divest its stake by seeking as much as $2.7 billion in an initial public offering. Treasury plans to pare its holding to 17 percent by selling 95 million shares for $25 to $28 apiece, according to a regulatory filing last week with the U.S. Securities and Exchange Commission. The government currently owns 37 percent of the former subsidiary of General Motors Co. The IPO is the culmination of a more than three-year process for Ally, which originally filed to go public in March 2011. The company, which provides car loans, bank accounts and other savings products, shelved the plan in June of that year until equity markets improved. CEO Michael Carpenter later said the bank had to resolve problems with its

mortgage unit before restarting the process. The company’s money-losing mortgage business entered bankruptcy in May 2012 and got court approval to end the process in December. The U.S. stake in Ally, which was reduced in November to 64 percent from 74 percent, was cut to 37 percent in January when the government sold about $3 billion of common stock to private investors. Third Point LLC, the hedge-fund firm led by billionaire Daniel Loeb, said in January that it had amassed a 9.5 percent stake, making it one of Ally’s largest shareholders. Affiliates of Cerberus Capital Management LP own 8.6 percent, according to the new filing. Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Barclays Plc are leading the IPO. Ally plans to trade on the New York Stock Exchange under the ticker symbol ALLY.

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In wake of fires, Heidelberg Project rethinks goals, halts capital campaign BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

The Heidelberg Project has put a $3 million capital and operational campaign on hold following unsolved arson fires that have destroyed six of the project’s house art installations since last May. Rather than focusing on construction of new installations on its namesake Heidelberg Street and adjacent Elba Street, the Detroit nonprofit is in an introspective mode following the fires. It’s reassessing what it does and what it should do to continue to meet its mission to change communities through art. “We don’t know where the fires are coming from,” said Executive Director Jenenne Whitfield, who is married to the project’s artist, Tyree Guyton. “Do people think that because we had Whitfield these fires, we no longer exist? We need to help people understand we are more than just an art installation.” The Heidelberg Project has an international reputation as a pioneer in creative placemaking, which the National Endowment for the Arts defines as the collaborative efforts of the public and private sectors, nonprofits and communities to shape the physical and social character of a neighborhood. People in other countries seem to have a better understanding of what the nonprofit does than people locally, Whitfield said. “We want Detroit to have that same understanding,” she said. The first order of business, however, is securing the Heidelberg Project installations. Whitfield said four remain. After losing a security camera to the extreme cold and intense heat from the latest fire on March 7 and hiring patrolling security to monitor the site, the nonprofit is trying another approach. It plans to add new solar energy streetlights on Heidelberg and Elba as part of an enhanced security plan, funded through $54,000 raised from donors around the globe to help secure the art installations, Whitfield said. The organization is also planning new amenities for Heidelberg Street, she said. Those will include benches and a sculpture garden aimed at engaging visitors who come for lectures and talks. Those efforts will be aimed at protecting the installation for the 50,000 per year who come to see the art and hear Guyton’s lectures. At the same time, the nonprofit continues to provide art programs for K-12 students and do community volunteer and project outreach with young volunteers. It ended a program that showcased emerging artists in October because other organizations were doing that better, Whitfield said. Central to the project’s sustain-

ability is strengthening its brand and raising awareness about its role as a creative placemaking pioneer, Whitfield said. In June, the organization plans to launch “Heidelbergology,” a series of blogs and podcasts that will tell the history of the project. The effort will cost about $45,000, a third of which Heidelberg is hoping to secure through the Michigan Humanities Council, Whitfield said. The project is also working on a new full-length film and a book with professors at the University of Michigan and Wayne State University to tell its story, she said. The Heidelberg Project has been around for 28 years, but it didn’t get its first grants until about five years ago, said Jodee Fishman Raines, vice president of programs for the Bloomfield Hills-based Fred A. and Barbara M. Erb Family Foundation, which may have been the first to give one. The project’s budget has expanded and contracted the past few years as new grants have come in to boost the money it gets from individual contributions and revenue from tours and the sale of T-shirts, hats and children’s books. Its 2013 tax filings are not yet complete, but the project’s unaudited revenue number for last year was $348,000, according to

its independent accountant, Heidi Coffman. It ended the year with an estimated loss of $52,000. That compares to revenue of $193,502 and a loss of $132,182 in 2012 and $594,758 in 2011 revenue buoyed by a $300,000 grant from the Los Angeles-based Annenburg Foundation. At the end of 2013, Heidelberg had $365,000 in assets, Coffman said. That’s down from $409,080 in 2012 and $541,262 in 2011. Grants can only carry a nonprofit so far, Raines said, which is why the majority of the $350,000 in grants Erb has made to the project over the past five years required it to raise a matching amount from individual donors. Heidelberg also has had support from the Washington, D.C.-based John F. Kennedy Center for the Performing Arts, the Troy-based Kresge Foundation and the Community Foundation of Southeast Michigan. “We believe strongly enough in them as artists and innovators that we believe they have a continued role to play,” Raines said. “We don’t know what it is yet, but we believe they are thinking about it and will find a way to continue.” Sherri Welch: (313) 446-1694, swelch@crain.com. Twitter: @sherriwelch

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OPINION

Charitable credits can save money C

haritable tax credits may be on their way back in Michigan, as Sherri Welch reports on Page 5. A range of credits have been eliminated during Gov. Rick Snyder’s first term as part of his goal to balance the budget and not play favorites through tax policy. Admirable goals, but sometimes there are hidden costs. Two widely used credits gave a 50 percent credit of up to $100 for individuals and $200 for couples for donations to food banks, homeless shelters and community foundations. As Crain’s reported last fall, community foundations suffered a 27 percent drop in qualifying donations and a staggering 47 percent for emergency food nonprofits. SB 836, introduced by Sen. Tonya Schuitmaker, R-Lawton, would restore those credits. Another bill, SB 835, introduced by Sen. Patrick Colbeck, RCanton Township, would reinstate credits for donations to public broadcasting stations, higher education facilities, colleges, universities, university fundraising groups, public libraries and museums and for donations of publicly displayed artwork. We believe the bills deserve consideration. Yes, there’s a cost to tax credits, but nonprofits play important roles as safety nets and supporters of other public good that can save public money in the long run.

Familiar passage for new season There are still plenty of piles of fossilized snow around, but Opening Day is upon us and so it must be spring. The big Tigers news of the past week or so — Miguel Cabrera’s huge contract extension, the lack of a contract with Max Scherzer — caused us to consider opining on baseball as a business and the difficulty of managing talent in an arena where both injuries and aging can happen fast. Instead, though, we’d rather remember Ernie Harwell. It has been nearly four years since Harwell died at age 92 and, shockingly, more than 10 years since his last broadcast in that role on Sept. 29, 2002. Harwell One of Harwell’s trademarks was quoting the Song of Solomon at the start of every season, and so in memory, we quote it here: “For, lo, the winter is past, the rain is over and gone, the flowers appear on the earth, the time of the singing of birds is come, and the voice of the turtle is heard in our land.”

OTHER VOICES Road funding plan needs fixing Michigan residents still emerg- ter roads than Michigan. ing from one of the harshest winOthers blame the Michigan Deters in history now face partment of Transportaone of the worst pothole tion or local road commisseasons in recent memosions for failing to deliver. ry. And with the spring But state and local road thaw underway, the worst authorities have susis yet to come. tained multiyear budget As drivers clench their cuts in recent years, and steering wheels (and most have been working teeth) trying to avoid gaphard to find ways to ing holes that seem to apstreamline their operapear from nowhere — tions while learning to “do threatening wheels, axles George Hubbell more with less.” and front-end alignments Instead, rattled drivers — it is no surprise that many are should focus on this key fact: Aclooking for someone (or some- cording to U.S. Census Bureau thing) to blame. data, from all 50 states, Michigan Some say Michigan winters (in- ranks dead last in per-capita fundcluding frequent freeze-thaw cy- ing for highway construction and cles and the liberal application of repairs — at a mere $154 per year, road salt) are at fault. But these per resident. conditions also exist in neighborIn comparison, 49th-ranked ing states such as Wisconsin, Illi- Ohio spends $214 (or 39 percent nois, Ohio and Pennsylvania — more); 29th-ranked Wisconsin which all enjoy substantially bet- spends $302 (96 percent more); and

16th-ranked Illinois spends $412 (167 percent more). In addition, 10th-ranked Pennsylvania recently passed a $2.3 billion road-spending plan that generates $530 percapita — nearly 3½ times as much as Michigan. The reasons for Michigan’s lastin-the-nation status are complex, but drivers should know: 䡲 In Michigan, income taxes do not fund road repairs — they’re funded primarily by the taxes we pay at the pump. 䡲 At 19 cents per gallon, Michigan’s gas tax is among the lowest in the Great Lakes region and has not increased since 1997. 䡲 The average number of miles driven by Michigan residents has fallen in recent years (while average fuel economy has increased) — meaning taxes generated by fuel sales have been steadily dropping. 䡲 Most of the taxes we pay at the See Voices, Page 9

KEITH CRAIN: It’s time for Tigers, so it must be spring Today is the first day of the baseball season. We are still seeing the basketball games of March Madness. The postseason hasn’t begun for the Detroit Red Wings. And once again, the Pistons will not make the playoffs. We hope the snow is gone and the polar vortex temperatures and winds have disappeared — at least for a few months. At least the cold and ice may help improve the water levels this summer. I know it’s spring because I see a

bunch of very stupid motorcycle riders on the road not wearing helmets. Helmets keep your head warm in the early spring. I have even seen a few convertibles with their tops down. Very brave souls. People are already talking about when and where they are going to take their vacations. The Grand Hotel on Mackinac

Island is about to open for the season, which means everyone’s hero, Dan Musser, will move back from his home in Oregon. I haven’t seen any boats, power or sail, on Lake St. Clair yet, but the freighters are starting to make their treks up and down the Great Lakes. But of all these things, perhaps the best spring indicator is the

start of the baseball season. Though we all have our hopes for the season, Opening Day for the Tigers is a celebration for more than baseball. We have survived the winter. This year, that really means something. It may have only been the second-coldest, snowiest winter in a hundred years, but none of us were around to remember the worst. We’ll take the second-worst and let it go at that. I know that most guys with snowplows paid for their trucks

this year. And I am sure all those stores that specialized in winter activities, like selling snowmobiles and skiing and skating equipment, are smiling broadly and are ready for a long summer vacation (unless they’re into pool maintenance). I am not going to be sitting out in the stands today for our opening day at Comerica Park only because I prefer to wait until the thermometer hits the mid-70s. But I will be there in spirit. Welcome to spring. Play ball!

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MARY KRAMER: It’s time to settle land dispute in Troy Treat people as you’d like to be treated. That’s more than a golden rule; it’s a shot at curbing litigation. That’s a lesson I learned years ago in case studies of some big libel verdicts. One case involved a guy wrongly accused of a crime in a small community newspaper. As I recall, he won millions of dollars at the local court level. But my big takeaway was why he sued. Sure, the paper made a big mistake. But he thought he had been treated callously, even rudely, by newspaper managers after the error was discovered and corrected in print. Anger and emotion can be volatile factors in litigation. I’ve got to believe that is part of what’s going on with the legal back-and-forth between the city of

Troy and developer Grand/Sakwa Properties LLC. Troy created a multimodal transit center for $6.5 million. Unfortunately, the courts have ruled that the land — promised to the city by owner Grand/Sakwa for the bargain price of $1 — was still the developer’s because the city missed the purchase deadline. The terms of the deal had the land reverting to the developer if the city didn’t reach full funding for the project by the deadline. Oops.

VOICES CONTINUED

But at least it’s finished. There are other monuments in our region — Bloomfield Park on Telegraph Road in Bloomfield Township (which Oakland County Executive L. Brooks Patterson has dubbed “Stonehenge”) and the unfinished Wayne County jail in downtown Detroit — that offer testament to other bad decisions. Late last year, the Troy City Council authorized paying Grand/Sakwa $550,000 for the land. The developer reportedly wants significantly more. There’s likely stubbornness on both sides. But that doesn’t help the Amtrak riders who braved the

coldest winter in memory waiting for trains in a bus shelter within a stone’s throw of a spiffy passenger center. Troy could probably resolve this with a property swap and a little more cash than the $550,000 it has offered so far. But maybe somebody has to say, “I’m sorry.” It’s really time to work this thing out. Mary Kramer is publisher of Crain's Detroit Business. Catch her take on business news at 6:10 a.m. Mondays on the Paul W. Smith show on WJR AM 760 and in her blog at www.crainsdetroit.com/kramer. E-mail her at mkramer@crain.com.

What did it take to close the top M&A deals of 2013?

■ From Page 8

pump are dedicated to schools and local government — only slightly less than half go toward transportation. 䡲 The gas taxes that are dedicated to transportation are split among competing priorities — including state highways, county roads, city streets and public transit. The result is obvious: Michigan’s network of outdated, crumbling roads creates frustration (and sometimes genuine danger) for drivers and passengers; costs untold millions in otherwise-unnecessary car repairs; stalls our economy by impeding the delivery of people, goods and services; and creates an unwelcoming and unattractive atmosphere for tourists — or anyone who may be considering moving to or starting a business in Michigan. As president of a company that has been one of Michigan’s leading civil engineering firms for nearly 100 years, I’m well acquainted with our state’s remarkable history of dramatic growth. Our company, and my family, has been proud to play a major role in designing many of the most significant infrastructure projects. Based on that perspective, I know that Michigan has always been most successful, and most prosperous, when we’ve worked together to develop strategies that result in common-sense investments in critical infrastructure projects — including ample funding for road construction and repair — that create jobs, spur economic development and improve the quality of life for Michigan families and communities. That’s why I’m urging residents to contact their state legislators to urge them to work together to develop and implement a comprehensive, stable and sustainable plan for road funding that will allow us to fix Michigan’s roads today and enable us to maintain them for many years to come. We can no longer afford to delay on this critical issue. George Hubbell is president of Bloomfield Hills-based Hubbell, Roth & Clark.

Perhaps the litigation is tinged in part from an earlier perceived slight: Grand/ Sakwa’s failed bid to purchase and redevelop the old Kmart headquarters on Big Beaver Road, about a mile from the transit center. At one point, Grand/Sakwa had a signed purchase agreement, but the deal ultimately went to the owners of the Somerset Collection. Meanwhile, the transit center, at Coolidge and Maple, sits empty.

Hear the stories behind the transactions.

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A CONVERSATION WITH

Craig Erlich, pulse220

Page 11

Focus

Meetings and conventions

If you know someone interesting in nonprofits, services, retail or hospitality whom Sherri Welch should interview, call (313) 446-1694 or write swelch@crain.com

See Hotels, Page 12

KEY INDICATORS Hotels in Wayne, Oakland and Macomb counties are four years into a rebound in occupancy rates and average daily room rates.

2013

2012

2011

2010

2009

55.3%

$86.81

$78

47.5%

54.2%

$74.92

Occupancy rate Average daily room rate

59.9%

What about the menu? Are we eating chicken salad sandwiches or steak? Every company is different. In general, the buyers of the meetings are not necessarily focused on ... steak vs. egg salad now anymore than they were before. (Now) people are more conscious of the food being organic and vegetarian options. Some clients are having us produce carbonneutral meetings, … and that means locally sourced food in some cases.

s Detroit the “comeback city” for hotel bookings? It’s making progress, hotel managers and meeting planners say. Last year, metro Detroit hotel occupancy reached its highest rate in at least a dozen years — 63 percent — capping four years of progress on hotel check-ins. Industry experts and the region’s hotels say occupancy rates are still heading upward, propelled by a resurgence in business travel by individuals and corporate meetings. In addition, increased meeting and convention business is bringing in crowds for events. “When we look at the increase in the occupancy, ... we were one of the top (markets) in the country” with 6 percent growth last year, said Larry Alexander, chairman of the Detroit Regional Convention Facility Authority and president of the Detroit Metro Convention & Visitors Bureau. Detroit is running at about the same occupancy rate as Chicago and a leader among Midwestern Rust Belt cities, including Indianapolis and Cleveland, said Charles Skelton, an Ann Arbor-based hospitality consultant. Alexander “Detroit used to lag by 10 occupancy points,” Skelton said. “Now it’s right up there with them.” Occupancy rates for hotels and motels in Wayne, Oakland and Macomb counties reached 63.1 percent in 2013, up from 61.9 percent the year before, according to the Convention & Visitors Bureau. That compares with 47.5 percent in 2009 and 55.3 percent in 2008, before the recession. Average daily rates for area hotels are also rebounding. Last year, hotels commanded an average daily rate of $84, up from $79.51 in 2012 but still trailing the Skelton $86.81 average in 2008, the bureau said. Those numbers are based on data reported by 279 hotels and motels with 35 or more guest rooms.

$77.11

What about interactivity? There’s so many different ways to connect ... and interactivity like we’ve never had it before. There’s 4,000 people in the audience, and the speaker says, “Do you want to talk about this or that?” Audience response has been around for a while. But because of technology, it can be activated by a smartphone. There’s a level of interactivity that hasn’t previously existed. That creates a much more personal experience for each attendee.

BY SHERRI WELCH | CRAIN’S DETROIT BUSINESS

61.9%

What are the trends in corporate meetings? Paperless throughout the process, from registration all the way to on-site, is a trend. We’re using a variety of Web technologies and app technologies to plan the meeting, register the guests and provide them with information during the meeting. There’s basically an elevation in the 365-degree experience an attendee has whether on the screen, on their PDA or in an email when they get back.

$79.51

Has your company been seeing yearover-year growth? Our business has experienced double-digit growth for the last three years. ... It’s a national trend.

Hotel occupancy on year four of rebound, thanks to conventions, corporate meetings and biz travelers

$84

Why do live meetings still make sense? There’s no replacement for being able to sit down in a coffee shop, on a break from a conference session or on a bar stool next to someone in your industry who shares your interests and whom you can learn from face to face.

Occupy Detroit

63.1%

Crain’s reporter Sherri Welch spoke about the state of corporate meetings and events with Craig Erlich, CEO of Ferndale-based pulse220, a meeting and event planning and marketing company. Are meetings and events back? Yes. Companies more than ever are recognizing the value that meetings and events bring to their organization and are spending money on them. ... When the economy took a downturn, the meeting industry was talking a lot about how virtual meetings were going to replace human face-to-face meetings. What we’ve found is that despite the fact that technology is allowing for easier and better virtual meetings, live meetings continue to grow.

2008

Source: Detroit Metro Convention & Visitors Bureau

ISTOCK PHOTO

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Focus: Meetings and Conventions

Hotels: Region continues revival in accommodating economy ■ From Page 11

Big conferences The increasing number of large conventions and conferences coming to Detroit is a big factor in the rising occupancy rates, Alexander said. Among the factors attracting the events are the $279 million renovation and expansion underway at Cobo Center, efforts to rebuild downtown and riverfront improvements, he said. Last year, the Convention & Visitors Bureau had five large groups booked. This year it has 13, Alexander said. “And moving ahead to ’14, ’15 and ’16, we’re seeing the trend is for more of those types of groups to come into our destination,” he said. Among the events set for 2014 is the Christian Congregation of Jehovah’s Witnesses International District Assembly, with two meetings scheduled in Detroit: June 6-8 and July 24-27. Those two meetings are expected to bring a total of 90,000 people to the region and a projected $57 million in economic impact, Alexander said during the Convention & Visitors Bureau’s annual meeting in January. Also this year, the Automotive Service Association plans to bring its conference and expo to Detroit for the first time July 31-Aug. 2, and the Society of Manufacturing Engineers’ trade show and conference will return in June after a hiatus of several years. Conferences of such magnitude

HOW DETROIT RATES RATE VS. MMIDWEST IDWEST DESTINATIONS Detroit* rate 2013 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008 2008

Indianapolis

Cleveland

Chicago

Occupancy Occupancy Occupancy Avg. Occupancy Occupancy Avg. Occupancy Avg. Avg. Occupancy Avg. Occupancy rate daily rate rate daily rate daily rate daily rate rate daily rate rate dailyrate rate rate 62.4% 62.4% 61.7% 61.7% 59.6% 59.6% 54.5% 54.5% 47.5% 47.5% 54.6% 54.6%

$84.23 $84.23 $79.60 $79.60 $76.87 $76.87 $75.10 $75.10 $78.92 $78.92 $87.25 $78.91

61.4% 61.4% 59.4% 59.4% 56.9% 56.9% 53.8% 53.8% 52.1% 52.1% 57.0% 57.0%

$90.40 $90.40 $91.69 $91.69 $84.11 $84.11 $81.32 $81.32 $82.28 $82.28 $88.67 $88.67

61.4% 61.4% 60.7% 60.7% 56.9% 54.7% 54.7% 56.9% 50.1% 54.7% 54.3% 54.3%

$94.83 $94.83 $89.37 $89.37 $84.79 $83.38 $83.38 $84.79 $85.53 $83.38 $90.81 $90.81

67.4% 67.4% 66.7% 66.7% 64.2% 64.2% 61.8% 61.8% 56.3% 56.3% 63.1% 63.1%

Avg. Avg. daily dailyrate $129.42 $129.42 $125.24 $125.24 $118.20 $118.20 $112.92 $112.92 $113.53 $113.53 $132.21 $132.21

At the Westin Book Cadillac Detroit, occupancy has risen every year since its 2008 opening.

Source: STR Global ResearchMacomb, Trend Report *Source: Detroit Smith marketTravel encompasses Oakland and Wayne and St. Clair counties and sections of Monroe, Washtenaw and Lapeer counties.

spread demand beyond downtown. Only about 4,700 of the 40,000 rooms in Wayne, Oakland and Macomb counties are in downtown Detroit, Alexander said.

Business travel is back An increase in individual business travel and more corporate meetings are also playing a role in the occupancy gains, hotels said. The Royal Park Hotel in Rochester expects to have its strongest first quarter ever, with an increase of 12 percent over the same quarter last year, said General Manager Jay Haratsis. That’s coming off a 15 percent increase in occupancy in 2013, he said. Playing a large role in that increase are the corporate meetings booked for the Royal Park’s 20,000 square feet of meeting space.

So far during the first quarter, corporate meetings have increased 10 percent to 12 percent, following increased bookings last year for seminars, training Haratsis and board meetings largely by companies in the education, banking, automotive and medical sectors, Haratsis said. “The economy is getting better,” he said. “Companies are trying to gather all their people in one spot so they can celebrate their success and talk about how they can continue succeeding.” Business travel and more international travelers are also boosting occupancy, Haratsis said.

The Westin Book Cadillac Detroit has seen its average daily occupancy increase every year since its 2008 opening, said Scott Stinebaugh, director of sales and marketing. “We have projections that 2014 will top 2013,” Stinebaugh said. “As Detroit is on an upswing, hosStinebaugh pitality is as well.” The Book Cadillac is seeing greater demand across all segments: group, business and leisure travelers, he said. Occupancy rates were up 13 percent in 2013, and the hotel had a strong January, Stinebaugh said. February and March were softer than expected, but the hotel is pacing about 40 percent ahead of bookings a year earlier for the second and third quarters of this year. Where companies may have brought in about 100 people five years ago to gather in the Book Cadillac’s 30,000 square feet of meeting space, now they’re bringing 50-70, Stinebaugh said. But the hotel is making that up in a much larger volume of small meetings of 15-50 people — the area in which it has seen the largest increase over the past two years, Stinebaugh said. Among them are meetings tied to the city of Detroit’s bankruptcy.

Future bookings Troy-based Hotel Investment Services Inc. is seeing increases of 6 percent to 11 percent year over year in corporate and social meetings at the hotels it manages in Michigan, from Mackinac Island to metro Detroit, CEO Ron Wilson Wilson said. Among them is the Inn at St. John’s in Plymouth, which saw similar increases last year in meetings and group business. The improved fortunes of the Detroit automakers “has a great ripple effect through the rest of the community,” Wilson said. “It’s not that all the Detroit hoteliers are at capacity — and fat and happy all the way to the bank,” he said. “There’s significant room for improvement, but we’re heading in that direction.” The growth in demand and occupancy probably will continue over the next few years, Skelton predicts. “I think it’s going to be driven by ... the auto industry finally getting healthy and casinos being around long enough that their reach might (extend) outside of Detroit.” Sherri Welch: (313) 446-1694, swelch@crain.com. Twitter: @sherriwelch

Changing the odds in our clients’ favor

Securities fraud and shareholder rights Automotive supplier disputes Shareholder and partnership disputes Commercial and business lawsuits

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248-841-2200 millerlawpc.com

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Focus: Meetings and Conventions

CCS summit to promote interactive design, tech BY ANJANA SCHROEDER SPECIAL TO CRAIN’S DETROIT BUSINESS

An upcoming College for Creative Studies summit is meant to elevate Detroit’s status in the interactive design world. Michigan university alumni who work at or consult for brands such as Nike Inc., Google Inc. and Warner Music Group will be the speakers at the April 14 summit at CCS. “By having this summit annually, it will become natural for people to think about Detroit as a center for a creative future,” said Sooshin Choi, provost and vice president for academic affairs at CCS. CCS expects about 300 attendees, Choi said. Attendees will include industry professionals and students from CCS and other schools. Among the speakers in the lineup are Mike Jbara, president of the Alternative Distribution Alliance, a division of Warner Music Group, and Lawrence Burns, a University of Michigan professor of engineering practice and a consultant to Google. In the music industry, Jbara said, interactive design involves reacting quickly to emerging markets. Sellers of consumer goods and services need to track data, study consumer

behavior and monitor consumers’ use of new technology, he said. Other speakers at the summit: Tesa Aragones, senior global director, Nike+ Experience Design – Digital Sport; Sheryl Connelly, global trends and futuring, Ford Motor Co.; Joanne Healy, dean of graduate studies, CCS; Jeff Voris, director of connected experiences, Walt Disney Imagineering; and Roland Yu, cofounder, yU+co. lab. Choi said the summit content relates to just about any industry. High-quality interactive design, Burns said, goes as far as understanding your customers deeply enough to excite them. Event sponsors include Autodesk, Detroit Technology Exchange, Sundberg-Ferar Inc. and Henry Ford Innovation Institute. Keith Crain, chairman of Crain Communications Inc., chairs the CCS board. To register for the event, visit collegeforcreativestudies.edu. The cost is $50 for students and $100 for professionals. New CCS graduate programs beginning this fall include a master of fine arts in interactive design and a master’s in color and materials design.

WHEN YOU’RE CREATING AN AWE-INSPIRING EVENT, IT HELPS WHEN YOU START WITH AWE AND INSPIRING. When we set out to reinvent Cobo Center, we knew we wanted to open things up. Walls. Views. Even imaginations. Now, halfway into our transformation, we are pleased to present our crowning jewel, the Grand Riverview Ballroom. The sweeping, glass-enclosed, 40,000-square-foot ballroom seats up to 2,400 people and has an open-air terrace, creating breathtaking riverfront views. Add to that a star chef, a new state-of-the-art, 8,000-square-foot kitchen with a private tasting room and you have the premier event and banquet space in the region. Open and ready to inspire. Book your next event now. Call Jennifer Berkemeier at 313.877.8204

cobocenter.com | Downtown Detroit

Your hosts

& Centerplate

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CRAIN’S DETROIT BUSINESS

Focus: Meetings and Conventions OLD FASHION IS NEW FASHION

Boutique hotel developers want to take travelers outside – and into – the box BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

THE NEW KIND OF LUXURY Reﬁned style, breathtaking views, fusion-forward food and inventive craft cocktails. What’s your new luxury? www.crowneplaza.com | 313-965-0200 2 Washington Blvd., Detroit, MI 48226

Plans are shaping up for three or four new boutique hotels in the city of Detroit, and the project developers are betting on visitors’ interest in non-cookie-cutter accommodations. While hotel experts say the city doesn’t technically need the hotels to fill current demand, the boutique projects are needed to give travelers more choices and make Detroit a more attractive destination. “To take this marketplace to the next level, we need innovative and outside-the-box thinking about types of hotels ... amenities and such,” said Ron Wilson, CEO of Troy-based Hotel Investment Services Inc. Younger people are more technology-driven and are drawn to hotels catering to that, he said. They, like more mature leisure travelers, also place a higher value on unique accommodations. Boutique concepts have helped take Detroit’s peer markets like Cincinnati to the next level, Wilson said. New boutique hotels under development or planned include the Aloft Detroit, as part of an $82 million restoration of the David Whitney Building; the $25 million plan to convert the historic Firehouse No. 1, across from Cobo Center, into the Detroit-centric Foundation Hotel; and a $9.6 million concept for the Collision Works hotel made from shipping containers on a tract of land along the Dequindre Cut greenway near Eastern Market. Ontario-based Vintage Hotels earlier this year also shared a plan for a $40 million boutique hotel and conference center on site of the Detroit Boat Club on Belle Isle. That project is still conceptual. The Aloft Detroit, the largest of the projects, is set to open late in the third quarter or early in the fourth quarter of this year, said Michael Damitio, senior vice president, acquisitions and development for Farmington Hills-based hoDamitio tel investment firm Trans Inns Management Inc. Trans Inns and The Roxbury Group in Detroit are developing the project as Whitney Partners LLC. The group is melding the 100-year-old building with modern elements, like Wi-Fi, luxurious guest rooms averaging more than 400 square feet per room and a lounge. When renovations are complete, the building will host the 135-room Aloft hotel, 6,500 square feet of meeting space, 105 apartments and a-yet-to-be-disclosed restaurant. Detroit-based Kraemer Design Group PLC is the architect and Detroitbased Walbridge Aldinger Co. is the contractor. Full-service properties downtown, like the Detroit Marriott Re-

WIKIMEDIA COMMONS

It looks like what it was — a firehouse. But developer Walter Cohen and Chicago-based Aparium Hotel Group plan to spend $25 million to convert the fire station, across from Cobo Center, into the Foundation Hotel.

naissance Center and Westin Book Cadillac Detroit, are going after the group market, Damitio said. And limited service hotels in the city are marketing to the more budgetconscious traveler. “We expect to fill a niche right in between those two, serving younger business travelers looking for a higher-end experience,” he said. “The typical hotel guest has seen the standard, white box hotel many times, and I think they’re attracted to a new experience.” Also planned as a rehab of existing space, the Foundation Hotel project at the historic firehouse will focus on Detroit’s history as its theme. Developer Walter Cohen is teaming up with Chicago-based Aparium Hotel Group. Cohen, owner of 21 Century Holdings LLC in Southfield, said he and his business partners in January also acquired the former Pontchartrain Wine Cellars building at 234 W. Larned St. The 13,000-square-foot, four-story building shares a wall with the fire station the group acquired for $1.25 million last year. It will provide needed space for a larger lobby and an additional 1314 rooms on the second, third and fourth levels. That will give the hotel roughly 100 rooms and storage space. The boutique hotel will emphasize the earliest days of Detroit, from its French roots to its days as a timber capital, to its manufacturing history. It will include a restaurant, bar and space for smaller meetings. The group expects to invest about 20 percent of the project’s cost itself and hopes to secure another 20 percent in state and federal historic tax preservation credits. It’s applying for a loan through the state’s Community Reinvestment Program and negotiating its remaining financing, Cohen said. Renovations to the historic buildings are expected to begin by late summer and be completed in time for a fall 2015 opening, Cohen said.

McIntosh Poris Associates in Birmingham is the lead architect, and Detroit-based MiG Construction is contractor on the project. “Boutique hotels are fun,” Cohen said. “It’s like exploring a little bit ... every room in the place isn’t the same.” A hotel concept planned near Eastern Market, meanwhile, makes plans to use of heavy-gauge steel shipping containers as the building blocks for construction. Shel Kimen, founder of Detroit Collision Works Inc., has a purchase agreement with the city of Detroit to buy a 1acre site fronting the Dequindre Cut, near Eastern Market, for a little more than $52,000. The 36room hotel will Kimen include communal gathering spaces open to the public. A New York City transplant and former senior vice president at Saatchi & Saatchi Worldwide, Kimen is finalizing negotiations with a financial backer and pursuing a U.S. Small Business Administration loan. She also plans to pursue state economic development incentives. She’s still negotiating for a contract manager for the project. New York-based Koop architecture + media is the contractor. SG Blocks, also based in New York, will provide the shipping containers, and Triune Specialty Trailers in Madison Heights will do the fabrication. Ann Arbor hospitality consultant Charles Skelton said he believes there’s enough demand to support two to three boutique hotels in the downtown area. “You’ve got a surge of demand and solid rate growth,” he said. “Now you look at filling those little corners.” Sherri Welch: (313) 446-1694, swelch@crain.com. Twitter: @sherriwelch

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CRAIN'S LIST: LARGEST MEETING FACILITIES Ranked by total square feet of meeting space Rank

1. 2. 3. 4. 5. 6. 7. 8. 9. 9. 11. 12. 12. 14. 15. 16. 17. 18. 19. 20. 21. 22. 22. 24. 25.

Facility Address Phone; website

Top executive(s)

Total square Square feet Capacity of largest Number feet of of largest theater/classroom of meeting meeting banquet/cocktail meeting space space style rooms Amenities

Cobo Center

Thom Connors general manager

897,500

40,000

2,880 / 3,600 2,500 / 3,000

Free Wi-Fi, 2,200 on-site parking spots, concierge and business center, on-site catering, contractors on-site to provide services to meetings and trade shows

The Henry Ford

Patricia Mooradian president

544,020

22,000

600 / 200 600 / 5,000

Horse-drawn carriages, Model T rides, historic carousel, steam locomotive, historic reenactments, entertainment, tours, curators, audiovisual, fireworks, gardens and private courtyards with most venues, organic and local menus available

Joe Louis Arena

Tom Wilson 439,380 president and CEO, Olympia Entertainment/ Detroit Red Wings

30,197

20,000 / 10,000 2,500 / 3,500

120

19 Steve Yzerman Drive, Detroit 48226 (313) 394-7593; www.olympiaentertainment.com

Unique event location for meetings, events, fundraisers, private ice skating parties and corporate experiential opportunities

Ford Field

Tom Lewand president

375,000

100,000

65,000 / 500 1,200 / 3,500

Caterer, stadium tours, on-field activities, attached parking structure; the 65,000 capacity theatre-style is using the stadium seating; capacity for cocktail/strolling supperstyle includes the field; indoor exhibit area includes field and concourses

Suburban Collection Showplace

Blair Bowman owner and president

350,000

215,000

12,000 / 6,000 6,000 / 6,000

Attached 126-room Hyatt Place Hotel, 25,000 square feet of pre-function space, 18-foot ceilings, wireless Internet access, more than 2,700 parking spaces

The Masonic of Detroit

Roger Sobran president

200,000

19,500

4,404 / 650 1,144 / 1,144

Space for corporate functions with two theaters, ample break-out rooms, two ballrooms, full-service catering, audiovisual capabilities and valet or self-parking options

Michigan Science Center

Tonya Matthews president and CEO

128,500

9,500 B

235 / 45 600 / 2,000

On-site cafe, wheelchair access, event management team, special exhibits, nine handson activity galleries, four theaters including two dome theaters, 4-D theater and meeting space, large science stage, limited VIP parking, special programming available by request

Fox Theatre

Tom Wilson 125,000 president and CEO, Olympia Entertainment/ Detroit Red Wings

20,305

5,000 / 400 800 / 1,000

2211 Woodward Ave., Detroit 48201 (313) 471-3333; www.OlympiaEntertainment.com

Historic venue in Foxtown restored to its original splendor; Fox Grand Lobby offers dinner and cocktail reception space, and multiple levels can be used for strolling events; stage and theater can accommodate close to 5,000 guests

Macomb Community College, south campus

James Jacobs president

100,000

61,000

2,880 / 300 300 / 61,000

Sports & Expo Center, John Lewis Conference Center, free parking and Internet, complete in-house audiovisual and catering services

Detroit Marriott Renaissance Center

Shonda Johnson area general manager

100,000

25,801

2,100 / 1,200 1,800 / 2,200

Restaurant serving breakfast, lunch and dinner, bar/lounge, room service, wheelchair access, Internet access, self or valet parking, fitness center, concierge lounge, movie theater, food court, shops, People Mover station

Macomb Community College, center campus

James Jacobs president

92,100

21,000

1,271 / 250 250 / NA

Macomb Center for the Performing Arts, University Center/Professional Development Center, free parking and Internet, complete in-house audiovisual and catering services

Emagine Canton

Paul Glantz founder and chairman

80,000

475 / 475 250 / 600

Movie theaters that have 10-18 screens with seating from 100-475, spacious lobbies for strolling dinners and cocktail parties

Emagine Novi

Paul Glantz founder and chairman

80,000

475 / 475 250 / 600

Movie theaters that have 10-18 screens with seating from 100-475, spacious lobbies for strolling dinners and cocktail parties

Palladium 12

Barb Zanetti senior director of business operations, Uptown Entertainment

75,000

370 / 50 230 / 500

On-site catering available; extensive menu options available; full bar service available

250 N. Old Woodward Ave., Birmingham 48009 (248) 723-6240; www.UptownEntertainment.com

Star Lanes at Emagine Royal Oak

Paul Glantz founder and chairman

71,000

350 / 350 250 / 700

Two private party areas: one that can seat up to 250 and another for a party of 50-60 people. All areas combined (including restaurant area) can host up to 600 people on two levels.

Palace of Auburn Hills

Dennis Mannion president and CEO

70,000

30,000

1,600 / 150 750 / 1,000

Built-in LCD projectors, built-in drop-down screen, private entrance, catering, natural stone and marble, granite surfaces, show kitchens with open stone ovens, Pistons Hall of Fame, championship trophy display, guided tours, custom menus

Adoba Hotel Dearborn/Detroit

Adrienne Pumphrey global head of Adoba brand

68,000

17,000

1,800 / 1,050 1,200 / 3,800

Restaurant and lounge, room service, indoor pool, sauna/whirlpool, fitness center, free parking, valet parking, breakfast, lunch, dinner, high-speed Internet access, wheelchair access, business center

MotorCity Casino Hotel

Marian Ilitch owner

67,000

19,604

2,200 / 1,379 1,500 / 2,200

Audiovisual, including video and teleconferencing capabilities, individualized HVAC meeting rooms, dedicated meeting concierge, pre-function areas, wireless Internet throughout, automobile accessible

Crystal Park

Roger Roels president

65,000

5,500

450 / 300 325 / 325

Newly remodeled, on-site catering services

General Motors Heritage Center

Greg Wallace manager

64,500

64,000

500 / 240 500 / 500

Showroom capacity is 500 and features 165 historic vehicles and a presentation area with computer-controlled lighting, 16'x 9' retractable screen, projector, Internet, wireless microphones, podium, complete audio speaker system, and two 61-inch plasma screens. Separate conference room seats 15 and features boardroom table, projector, screen and Internet.

Heinz C. Prechter Educational and Performing Arts Center

Deborah Duyck district executive dean

60,000

6,000

812 / 130 NA / 200

Free parking, wireless Internet, large theater, exhibit gallery and enclosable rehearsal space

Washtenaw Farm Council Grounds

Lynn Rich manager

55,000

9,000

600 / 900 600 / 400

20 acres of parking, central public address system, heated and insulated, off-premises catering permitted, banquet facility, 400-foot track area with bleachers and sound system, 62 electrical campsites, dump station on grounds, DSL, ATM; Wi-Fi available

Walsh College-Troy campus

Jenny Carson 55,000 conference coordinator

3,900

300 / 180 120 / 100

Full-service catering and high-tech rentals; single classroom and campuswide rental; free parking; computer lab, meeting rooms and multimedia conference rooms; free WiFi; electric vehicle charging stations

Detroit Institute of Arts

Graham Beal director, president and CEO

50,019

10,450

1,100 / NA 650 / 500

Experienced staff, caterer, wireless Internet, gallery tours, custom menus, wedding receptions, civil wedding ceremonies and corporate or social events

The Inn at St. John's

Paul Wegert general manager

48,000

6,700

750 / 375 375 / 550

Four-diamond hotel, complimentary wireless Internet, on-site catering, 27-hole golf course, outdoor gardens and courtyard for cocktail receptions, two restaurants

1 Washington Blvd., Detroit 48226 (313) 877-8777; www.cobocenter.com

20900 Oakwood Blvd., Dearborn 48124 (313) 982-6001; www.thehenryford.org

2000 Brush St., Detroit 48226 (313) 262-2000; www.detroitlions.com

46100 Grand River Ave., Novi 48374 (248) 348-5600; www.suburbancollectionshowplace.com

500 Temple St., Detroit 48201 (313) 832-7100; www.themasonic.com

5020 John R St., Detroit 48202 (313) 577-8400; www.mi-sci.org

14500 E. 12 Mile Road, Warren 48088 (586) 498-4198; www.macomb.edu/eventservices

400 Renaissance Drive, Detroit 48243 (313) 568-8000; www.detroitmarriott.com

44575 Garfield Road, Clinton Township 48038-1139 (586) 498-4198; www.macomb.edu/eventservices

39535 Ford Road, Canton Township 48187 (734) 721-3456; www.emagine-entertainment.com

44425 W. 12 Mile Road, Novi 48377 (248) 468-2990; www.emagine-entertainment.com

200 N. Main St, Royal Oak 48307 (248) 414-1000; www.emagine-entertainment.com

6 Championship Drive, Auburn Hills 48326 (248) 377-0100; www.palacenet.com

600 Town Center Drive, Dearborn 48126 (313) 592-3622; www.adobadearborn.com

2901 Grand River Ave., Detroit 48201 (866) 752-9622; www.motorcitycasino.com

17099 Champaign, Allen Park 48101 (313) 388-9001; www.crystalgardensonline.com

6400 Center, Sterling Heights 48312 (586) 276-1498; www.gmheritagecenter.com

21000 Northline Road, Taylor 48180 (734) 374-3512; www.wcccd.edu/about/PerformingArtsCenter.htm 5055 Ann Arbor Saline Road, Ann Arbor 48103 (734) 429-3145; www.washtenawfarmcouncil.org

3838 Livernois Road, Troy 48083 (800) 925-7401; www.walshcollege.edu

5200 Woodward Ave., Detroit 48202 (313) 833-7900; www.dia.org

44045 Five Mile Road, Plymouth 48170 (734) 414-0600; www.theinnatstjohns.com

This list of meeting facilities is an approximate compilation of the largest such facilities in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Information is provided by the venue unless otherwise noted. It is not a complete listing but the most comprehensive available. NA = not available. B The 9,500 square feet of the upper level is available for a limited time only. A special exhibit starts in October 2014. LIST RESEARCHED BY BRIANNA REILLY

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CRAIN'S LIST: LARGEST GREATER MICHIGAN MEETING FACILITIES Ranked by total square feet of meeting space Rank

Facility Address Phone; website

Top executive(s)

Total square Square feet Capacity of largest Number feet of of largest theater/classroom of meeting meeting banquet/cocktail meeting space space style rooms Amenities

DeVos Place Convention Center

Richard MacKeigan regional general manager

240,000

162,000

14,560 / 9,000 10,730 / 18,000

In-house decorator, security and audiovisual company

Lansing Center

Scott Keith president and CEO

120,000

72,000

5,700 / NA 4,000 / NA

Connected via skywalk to the newly renovated 260-room Radisson Hotel Lansing. Walking distance to more than 40 bars and restaurants.

DeltaPlex Arena & Conference Center

Joel Langlois president

105,000

24,000

6,500 / 2,000 1,500 / 2,500

Wi-Fi, equipment rental, decorating equipment, large on-site parking, 52-foot-high ceiling loading dock, drive indoors

Grand Traverse Resort & Spa

Tim Norman general manager

86,500

19,000

2,250 / 1,200 1,500 / NA

Golf, full-service spa, indoor/outdoor health club, indoor water playground/pools, indoor tennis, retail shops, daycare, restaurants, 24-hour dog care, airport shuttle, Wi-Fi available, free on-site parking

Wings Stadium Complex

Michael Mortlock director of operations

64,400

17,000

6,000 / 1,415 1,415 / 1,415

Three separate facilities in one with 10 additional meeting spaces; catering and food service available on-site

Kalamazoo County Expo Center

David Rachowicz director

62,000

24,000

2,500 / 1,200 1,500 / 1,500

Outdoor festival space, free parking, Wi-Fi access, audio access, concessions, ATM on site

Amway Grand Plaza Hotel

Richard Winn president and CEO

47,000

8,750

1,100 / 600 720 / 1,150

Eight restaurants and lounges, business center, wireless and wired high-speed Internet, state-of-the-art audiovisual equipment, full-service salon and spa, skywalk connecting hotel to DeVos Place Convention Center

Broad Art Musem

Michael Rush director

46,000

4,656

120 / 45 120 / 750

Unique venue with state-of-the-art audiovisual equipment, award-winning architecture, and world-class contemporary art

Radisson Plaza Hotel of Kalamazoo

Tim Rayman director of hotels

44,000

10,000

NA / NA NA / NA

Salon and spa, athletic club, swimming pool, coffee shop, fashion boutique, four unique restaurants, concierge lounge 100 West

10.

Boyne Mountain Resort

Ed Grice general manager

37,000

10,000

1,000 / 600 740 / 1,000

Golf, spa, zip line, Avalanche Bay water park, skiing, snowboarding, biking, horse trail rides, tennis, fishing, Segway tours, complimentary Wi-Fi and parking, on-site restaurants

Shanty Creek Resorts

Pete Bigford general manager and COO

36,000

9,600

1,000 / 700 700 / 1,000

Four championship golf courses, featuring The Legend, Cedar River, Schuss Mountain an Summit courses; two mountains with 53 Alpine runs; spa and fitness center; two indoor and three outdoor pools; tennis courts; five restaurants; in-room dining; complimentary shuttle service

12.

Boyne Highlands Resort

Brad Keen general manager

31,500

9,500

400 / 200 450 / 500

Golf, spa, zip line, skiing, snowboarding, Segway tours, dog sledding, horse trail riding, swimming, young American dinner theater, biking, tennis, fishing, boating, complimentary Wi-Fi and parking, on-site restaurants

13.

Van Andel Arena

Richard MacKeigan regional general manager

30,772

12,472 / 1,500 840 / NA

ATM, box office, restaurant and bar, concessions

Wharton Center for Performing Arts

Mike Brand executive director and Diane Baribeau general manager

30,000

10,000

200 / NA 160 / 250

Four stages, facility rentals, tours

Frauenthal Center for Performing Arts

Linda Medema sales and marketing manager

25,000

4,670

1,722 / 250 250 / 250

1,722-seat historic theater; art gallery; banquet, exhibit and meeting space

Grand Hotel

Ken Hayward executive vice president and managing director

24,450

7,080

1,000 / 325 1,500 / 1,500

No penalty for guestroom attrition, complimentary meeting and function space, complimentary wireless Internet, complimentary use of audiovisual equipment from our extensive in-house inventory, complimentary coffee, iced tea and lemonade for meetings, complimentary music with private dinner, if desired

The Groves Center at KVCC

Craig Jbara 22,374 vice president for strategic and economic development

3,250

NA / 124 100 / 124

7107 Elm Valley Drive, Kalamazoo 49009 (269) 353-1253; kvccgrovescenter.com

Wi-Fi, free convenient parking, scenic location, video conferencing, portable computer lab

Treetops Resort

Russell Glasby director of sales

20,016

10,000

1,000 / 500 850 / 1,200

Spectacular golf, world-class instruction, spa, downhill skiing, snowmobiling, meetings and weddings; meeting rooms are equipped to handle audiovisual equipment and include high-speed Internet connections

The Pinnacle Center

Bill Worst managing member

20,000

10,800

1,000 / 600 800 / 1,500

Room set-up; staging with theater backdrop; wide-screen, HD projectors, HD cameras and recording; live-stream broadcasting; microphones; DVD, Blu-ray, PowerPoint playback; wireless presentation mouse; laptop hook-up; technician, wired and wireless Internet; free parking; soft drinks with dinner (100 person minimum); coffee, linens and skirted tables, podium

20.

Fetzer Center @ Western Michigan University

John Dunn president

18,000

4,048

450 / 280 280 / 400

Beautiful outdoor patio, private complimentary parking, full-service catering, state-ofthe-art auditorium

21.

Gull Lake Ministries

Daniel Wallace executive director

17,076

4,730

700 / 400 0/0

Indoor basketball, volleyball, rock climbing, bowling, pickleball, track, workout area, game room; outdoor basketball, volleyball, tennis, green space

The Conference Centers of Western Michigan University-Downtown Grand Rapids

Joe Wilson director, conference and facilities

16,717

3,960

315 / 200 280 / 400

Built-in projection in all meeting rooms

Bavarian Inn Lodge & Conference Center

Judy Zehnder Keller president of lodge and gift shops

15,617

6,760

600 / 220 500 / NA

One Covered Bridge Lane, Frankenmuth 48734 (855) 652-7200; bavarianinn.com

The lodge offers 360 guest rooms, meeting space, four indoor pools, two restaurants and lounges along with a family fun center.

The Conference Centers of Western Michigan University- East Beltline Grand Rapids

Joe Wilson director, conference and facilities

13,383

1,456

120 / 90 90 / 150

Built-in projection, two PC computer labs, free parking

Fifth Third Ballpark

Lew Chamberlin CEO and managing partner

10,500

3,500

10,000 / 200 175 / 150

A baseball stadium with outdoor space, parking lot and a year-round 3,500-square-foot banquet room all available for events

11.

14. 15. 16. 17. 18. 19.

22. 23. 24. 25.

303 Monroe Ave. NW, Grand Rapids 49503 (616) 742-6500; devosplace.org 333 E. Michigan Ave., Lansing 48933 (517) 483-7400; lansingcenter.com 2500 Turner Ave., Grand Rapids 49544 (616) 364-9000; deltaplex.com

100 Grand Traverse Village Blvd., Acme 49610 (800) 748-0303 / (231) 534-6000; www.grandtraverseresort.com 3600 Vanrick Drive, Kalamazoo 49001 (269) 345-1125; wingsstadium.com 2900 Lake St., Kalamazoo 49048 (269) 383-8778; kalamazooexpocenter.com 187 Monroe Ave. NW, Grand Rapids 49503 (616) 774-2000; amwaygrand.com 547 E. Circle Drive, East Lansing 48824 (517) 884-4800; broadmuseum.msu.edu 100 W. Michigan Ave., Kalamazoo 49007 (269) 343-3333; radissonkzoo.com

One Boyne Mountain Road, Boyne Falls 49713 (231) 549-6000; boyne.com 5780 Shanty Creek Road, Bellaire 49615 (231) 533-8621; shantycreek.com

600 Highland Drive, Harbor Springs 49740 (231) 526-3000; boyne.com 130 W. Fulton St., Grand Rapids 49503 (616) 742-6600; vanandelarena.com 750 E. Shaw Lane, MSU, East Lansing 48824 (517) 353-1982; whartoncenter.com

425 W. Western Ave., Muskegon 49440 (231) 722-2890; frauenthal.org

One Grand Ave., Mackinac Island 49757 (906) 847-3331; grandhotel.com

3962 Wilkinson Road, Gaylord 49735 (989) 732-6711; treetops.com 3330 Highland Drive, Hudsonville 49423 (616) 662-3330; thepinnaclecenter.com

1903 W. Michigan Ave., Kalamazoo 49008 (269) 387-3232; wmich.edu/fetzer

1988 Midlake Drive, Hickory Corners 49060 (269) 671-5155; gulllake.org

200 Ionia St. S.W., Grand Rapids 49503 (616) 771-4141; wmich.edu/grandrapids/conferencing

2333 East Beltline S.E., Grand Rapids 49546 (616) 771-9489; wmich.edu/grandrapids/conferencing 4500 W. River Drive NE , Comstock Park 49321 (616) 784-4131; whitecapsbaseball.com

This list of meeting facilities is an approximate compilation of the largest such facilities in Michigan but outside of Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Information is provided by the venue unless otherwise noted. It is not a complete listing but the most comprehensive available. Actual figures may vary. NA = not available. LIST RESEARCHED BY BRIANNA REILLY

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CRAIN’S DETROIT BUSINESS

March 31, 2014

Loan fund for Detroit small biz recapitalizes, expands its reach BY AMY HAIMERL CRAIN’S DETROIT BUSINESS

A RIGHT FIELD OF DREAMS

What do a running store in Midtown Detroit and a grocer in a vacant strip mall on the city’s east side have in common? The Urban Retail Loan Fund provided financing for the owners of both Run Detroit, located next door to Shinola, and Parkway Foods, which is opening this week in The Shops at Jefferson Village near Grosse Pointe Park. And now, more small businesses will be able to access the fund, which offers loans of between $50,000 and $500,000 to retail businesses opening in the city. Launched in 2009, the fund was intended to provide assistance to retailers in the greater downtown area — including those in Midtown, Corktown and Eastern Market — who couldn’t access traditional financing such as bank loans. But the loan fund has been so successful that Invest Detroit’s board of directors is expanding the geographic boundaries into as-ofyet-unnamed areas. “We discussed bringing our entire toolbox to some pilot neighborhoods as we begin to look at the future of Detroit,” said Dave Blaszkiewicz, president of Invest Detroit. “We now have more clarity thanks to Detroit Future City. … We are looking at neighborhoods

with stabilized housing stock and existing commercial areas we could plug into that have close proximity to jobs.” In addition to expanding its geographic Blaszkiewicz reach, the fund has been recapitalized and is now a $6 million revolving fund, up from the original $2 million, and covered by the state of Michigan, the Michigan Economic Development Corp. and Invest Detroit’s own fund, the Detroit Investment Fund. “This is a fund that was created when we were seeing a lot of adaptive reuse projects, and one of the big challenges we had was finding retail establishments to go on the first floor,” Blaszkiewicz said. It wasn’t for lack of interest, it was for a lack of funding. “The cost of build-out, in these buildings, was very cost-prohibitive,” he added. “Even if you had space that was ready to be used, the things that local retailers needed were not things that the banks were comfortable providing. Like tentative improvements or inventory.” Still, that doesn’t mean it’s free and easy money for any entrepreneur with a dream. The fund is intended to be used as bridge financ-

ing or as an additional layer of cash beyond a bank loan. Sometimes, depending on the size of the project, the loan fund will be the only lender. “We prefer to be part of the party, not the life of the party,” said Derek Edwards, vice president of Invest Detroit who specializes in the Urban Retail Loan Fund. The fund has financed 15 deals to date, including participating in The Edwards Auburn Development, which is in Midtown and houses rental apartments and small businesses such as Cass Corridog, Hugh, Nora and Source Booksellers. Part of the reason that development filled up so rapidly, Blaszkiewicz said, is that the build-out costs were amortized out as part of the loans. “We made that shelf-ready,” he said. “(Retailers) had floors, walls, lighting. You could move your shelves in, flip the light on, and be in business. That advances the possibility of getting retail into the space.” For more information, visit investdetroit.com. Amy Haimerl: (313) 446-0416, ahaimerl@crain.com. Twitter: @haimerlad

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CRAIN’S DETROIT BUSINESS

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PEOPLE EDUCATION Steve Moore to director of development and major gifts, School of Business Administration, Wayne State University, Detroit, from associate director of planned giving, development and alumni affairs.

FINANCE

Molokac

Tebbe

Andy Molokac to senior manager, resources solutions group, UHY LLP, Sterling Heights, from national practice director, Accretive Solutions Tax Consulting Services, Troy. Chris Tebbe to advisory executive director, Ernst & Young LLP, Detroit, from associate partner, IBM Corp., Southfield. Mark Rheaume to vice president and senior planner for wealth management, Southeast Michigan, PNC Fi-

IN THE SPOTLIGHT Urban Science Applications Inc., a Detroit-based automotive retail consulting firm, has named Elizabeth Klee its CIO. She succeeds Greg Davidson, who left the company. Klee, 46, had been a Klee managing director at Accenture, Southfield, where she was the internal global application leader for legal, human resources and client team solutions. Klee earned a bachelor’s degree in electrical engineering from the University of Michigan. She is an active participant in the Michigan Council of Women in Technology.

HOSPITALITY Jeff Pittel to director of beverage, Team Schostak Family Restaurants, Livonia, from general manager, TGI Friday’s Front Row in Miller Park, Milwaukee.

Detroit.

NONPROFITS Patrick Miller to executive president,

vice

Hospice of Michigan Inc., Detroit, from senior vice president of service operations. Paul Buzzard to director of conservation, Detroit Zoological Society, Royal Oak, from Miller field biologist, China Exploration and Research Society, Hong Kong. Melinda Callahan to chief development officer, Forgotten Harvest, Oak Park, from president, Crittenton Hospital Medical Center Foundation, Rochester Hills.

REAL ESTATE

LAW

Tom Giguere to director of property management, Sig-

nature Associates Inc., Southfield, from senior property manager.

nancial Services Group Inc., Troy, from president and partner, Shanaman & Rheaume PLC, Rheaume Bloomfield Hills. Also, George Clark Jr. to vice president and senior trust adviser for wealth management, Southeast Michigan, from managing director and private banker, Talmer Bancorp Inc., Troy. Clark Korri Tanzini to vice president and private banker, wealth management, FirstMerit Corp., Bloomfield Hills, from vice president and private banking relationship manager, First Place Bank, part of Talmer Bancorp Inc., Southfield.

MARKETING James Canning to public affairs director, Lovio George Communication and Design, Detroit, from owner and lead consultant, Canning Communications,

DETROIT JUNE 9-12, 2014

Ana Castellanos

Arends

Richotte

Geaneen Arends to

shareholder, Butzel Long PC, Detroit, from senior attorney, and

to vice president of human resources, Village Green Cos., Farmington Hills, from Giguere chief human resources officer, Oakwood Worldwide, Los Angeles.

SERVICES

Joseph Richotte to shareholder, Butzel Long PC, Bloomfield Hills, from associate. Seth Drucker to shareholder, Fos-

Drucker ter Swift Collins & Smith PC, Farmington Hills, from

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MANUFACTURING Paul Veryser to vice president of operations, PolyFlex Products Inc., Farmington Hills, from president, Novitas Advisors LLC, Rochester Hills. Also, David Duncan to plant manager, from vice president of operations, Minth Group Ltd., East Tawas.

Sansone

Borer

Kimberly Sansone to senior interior designer, Krae-

mer Design Group PLC, Detroit, from interior designer, Art Van Furniture Inc., Warren. Also, Laurie Borer to project architect, from project architect, DiRyan Clemente Siegel Design Inc., Southfield. Kevin Ryan to senior vice president of construction, Powerlink Facilities Management Services, Detroit, from vice president, Huntington Construction Co., Southfield.

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CRAIN’S DETROIT BUSINESS

CALENDAR TUESDAY APRIL 1 Health Care Reform Conference. 8 a.m.1 p.m. Michigan Business and Professional Association. Focus is on the latest Affordable Care Act developments affecting business and employees, including taxes, penalties, credits, fulltime employee status and health benefit changes. MSU Management Education Center, Troy. $100 members, $125 nonmembers. Contact: (586) 393-8800; website: michbusiness.org.

A Look at the 2013-14 Detroit Red Wings. 11:30 a.m.-1:30 p.m. Detroit Economic Club. With Ken Holland, executive vice president and general manager, Detroit Red Wings, and Mike Babcock, head coach. Players and other coaches are scheduled to attend. Presiding officer: Christopher Ilitch, president and CEO, Ilitch Holdings Inc. MotorCity Casino Hotel, Detroit. $45 DEC members, $55 guests of members, $75 nonmembers. 11:30 a.m. speaker reception open only to board, life and gold members. Contact: Detroit Economic Club, (313) 963-8547; email: info@econclub.org; website: econclub.org.

WEDNESDAY

WOMEN LIGHTING THE WAY IN THE D Join the Jewish Women’s Foundation of Metropolitan Detroit 11:30 a.m.-2:30 p.m. Wednesday at Waterview Loft at Port Detroit, Detroit, for Women Lighting the Way in the D. Mary Kramer, Crain’s Detroit Business publisher, will moderate a discussion on what motivates these women to make a difference in Detroit, challenges for the future and the biggest obstacles they’ve encountered along the way. Speakers are Faye Alexander Nelson, president, DTE Energy Foundation, and vice president, public affairs, DTE Energy Co.; Cindy Pasky, president and CEO, Strategic Staffing Solutions Inc.; Laura Trudeau, senior program director, community development, The Kresge Foundation; and Jackie Victor, founding partner and vice president of retail, Avalon International Breads. Tickets are $50. To purchase or for more information, call Pat Mayer, (248) 203-1519; email mayer@jfmd.org; or visit jwfdetroit.org.

APRIL 2 Workplace Law Symposium: Information and Data Security. 1-6 p.m. Jack-

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son Lewis PC. Designed to help business leaders, corporate counsel, compliance officers and human resource professionals navigate information and data security in the workplace. With keynote speaker Barbara McQuade, U.S. attorney, Eastern District of Michigan; and members of Jackson Lewis PC Detroit and Grand Rapids offices. The Townsend Hotel, Birmingham. $50. Contact: Maggie Olschanski, (248) 936-1923; email: olschanm@jacksonlewis.com; website: jacksonlewis.com/events/loca tions/view/2474.

UPCOMING EVENTS 2014 East-West Business Connection. 10 a.m.-3:30 p.m. April 7. Asian Pacific American Chamber of Commerce. Focus on trends for business growth and opportunities in the Asia-Pacific region and Michigan. With keynote speaker Patricia Loui, member, board

of directors, Export-Import Bank of the United States. Troy Marriott, Troy. $70 APACC members, $95 nonmembers, $150 walk-ins if seats become available. Registration deadline: April 3. Contact: Jen Spellman, (248) 4305855; email: jen@apacc.net; website: apacc.net.

Detroit Bankruptcy and Beyond: Organizing for Change in Distressed Cities. 5:30-9 p.m. April 7, 8:30 a.m.-6 p.m. April 8. Wayne State University Law School. National experts will explore ways to advance equity and inclusion in cities facing bankruptcy and financial crisis. With Thomas Sugrue, David Boies Professor of History and Sociology, University of Pennsylvania; Rip Rapson, CEO, The Kresge Foundation; Ron Sims, former deputy secretary, U.S. Department of Housing and Urban Development; and Carol O’Cleireacain, nonresident senior fellow, Brookings Institution, and member, Council on Foreign Relations. Spencer M. Partich Auditorium, Wayne State University Law School. Free. Contact: Damon J. Keith Center

for Civil Rights, (313) 577-3620; website: law.wayne.edu/cities2014.

Grow Global: Doing Business Internationally. 9 a.m.-noon April 8. Michigan Association for Female Entrepreneurs. Learn about doing business in Canada and other international markets and meet with trade experts who will share tips and resources for taking a company global. Automation Alley, Troy. $20. Contact: Tonya McNealWeary, (313) 363-4075; email: info@mafedetroit.org; website: mafedetroit.org.

Embracing Diversity, Empowering Communities. 8:30 a.m.-4 p.m. April 10. NAACP, Radius of Arab American Writers, SERMetro-Detroit Jobs for Progress Inc., University of Michigan, University of Michigan-Dearborn Center for Arab American Studies. Eleventh annual Images and Perceptions Diversity Conference, a day of discussion intended to engage the African-American, Arab-American, Hispanic-American and Asian-American communities. With keynote speaker Edward James Olmos, actor and activist; Heaster Wheeler, assistant CEO, Wayne County; Sayed Badreya, actor, producer, filmmaker; Suheir Hammad, poet, author, political activist; Matthew Seeger, dean, College of Fine, Performing and Communication Arts, Wayne State University; and Frances Kai-Hwa Wang, writer, activist, blogger, lecturer at the University of Michigan. Byblos Banquets, Dearborn. $125; $100 each, group of five or more; $35 student. Contact: (313) 910-1955; email: imagesandperceptions@3Dconsults. com; website: 3dconsults.com/im ages.html.

Crain’s M&A Awards. 5-9 p.m. April 16. Crain’s Detroit Business; Association for Corporate Growth, Detroit chapter. Event honors companies and executives in the categories of Best Small Deal of the Year, Best Large Deal of the Year, Dealmaker of the Year – Adviser, Dealmaker of the Year – Buyer/Seller and Lifetime Achievement. Select award winners will share best practices and inside stories from their top deals. Troy Marriott, Troy. $75 ACG members or nonmembers in groups of 10 or more, $80 individual sales to nonmembers. Contact: Kacey Anderson, (313) 446-0300; email: cdbevents@crain.com; website: crainsdetroit.com/events.

BUSINESS DIARY ACQUISITIONS AND MERGERS Auto Club Trust FSB, Dearborn, and American Midwest Bank, Sycamore, Ill., signed an agreement under which Auto Club Trust will acquire all outstanding capital stock of National Bancorp Inc., the holding company for American Midwest. National Bancorp will be merged into its wholly owned subsidiary, which will be merged into Auto Club Trust, a federally chartered savings association and a subsidiary of the Auto Club Group and its property-casualty insurance affiliate, the Auto Club Insurance Association. Websites: aaa.com, americanmidwestbank.com .

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sites: tcco.com, pennockhealth.com. Plumbing Professors, Canton Township, was awarded a contract to epoxyline the sanitary sewer pipe at B. Ella Bridal, Plymouth. Website: plumbing professors.com.

Qualitech, Bingham Farms, a technology integrator and software reseller, was selected by Robertson Morrison Inc., Ann Arbor, a heating, ventilation and air-conditioning company, to provide network monitoring and administration, cloud backup and recovery services, and hardware upgrades. Website: qualitech.net.

CONTRACTS

EXPANSIONS

Brogan & Partners Advertising & Consultancy Inc., Birmingham, was selected as agency of record for Frankenmuth Insurance, Frankenmuth. The agency

Bluemercury Inc., Washington, D.C., a

will provide marketing strategy planning, creative development and media planning. Website: brogan.com. Turner Construction Co., Detroit, was selected by Pennock Health Services, Hastings, as construction manager for a $70 million, 49-bed replacement hospital, physician offices and outpatient services building on property owned by Pennock in Rutland Township. The project is set for completion in 2017. Web-

makeup and skin care retailer, opened a store at the Arbor Hills Shopping Center, 3070 Washtenaw Ave., Suite 103, Ann Arbor. Telephone: (734) 4779000. Website: bluemercury.com.

NEW PRODUCTS Jervis B. Webb Co., Farmington Hills, and Daifuku America Corp., subsidiaries of Daifuku Webb Holding Co., Farmington Hills, introduced LubriPin, which will extend the life of conveyor chains by facilitating

improved lubrication. Website: daifukuwebb.com. Meritor Inc., Troy, a supplier of drivetrain, mobility, braking and aftermarket parts for commercial vehicle and industrial markets, introduced the P600 Series planetary axle, engineered for heavy-haul, oil field, logging and mining applications. Website: meritor.com. TRW Automotive Holdings Corp., Livonia, announced that its second-generation Active Control Retractor system of advanced seat belt technology has started production on the 2014 Cadillac CTS. Website: trw.com. Fathead LLC, Detroit, released the Warren Buffett Big Head cutout. Website: fathead.com.

NEW SERVICES Rainbow Child Care Center, Troy, an early education provider serving communities in Michigan, Florida, Indiana, Kentucky, New Jersey, North Carolina, Ohio and Virginia, introduced a redesigned website at rainbowcc.com.

STARTUPS Seniors Seeking Jobs was launched as a website to help job seekers age 50plus find employment. Website:

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Roads: Republicans won big on funds; Dems want their share â&#x2013; From Page 1

â&#x20AC;&#x153;I have warned Democratic members, â&#x20AC;&#x2DC;Donâ&#x20AC;&#x2122;t go getting ready for some ribbon-cutting ceremony,â&#x20AC;&#x2122; â&#x20AC;? said Rep. Andrew Kandrevas, D-Southgate, and minority vice chairman of the transportation appropriations subcommittee. â&#x20AC;&#x153;I have no promises on how any of this is going to shake out.â&#x20AC;? Snyderâ&#x20AC;&#x2122;s office did not respond to requests for comment.

Out of the process The carve-out from the MDOT budget is new and started last year. A decade ago, some additional road funding became available during one budget cycle, and lawmakers were able to direct that money to specific projects. But traditionally, MDOT and local units of government receive funding from the state and decide on their own which roads to fix. However, twice in the past year, GOP lawmakers have allocated special funding for road projects that they control. The first time, Senate members in both parties were notified about the opportunity to request projects, while House Democrats were not allowed to participate. Anna Heaton, deputy press secretary for House Speaker Jase Bolger, R-Marshall, said the reason they werenâ&#x20AC;&#x2122;t allowed was simple. â&#x20AC;&#x153;They werenâ&#x20AC;&#x2122;t welcomed into the discussion because they didnâ&#x20AC;&#x2122;t vote for the funding,â&#x20AC;? she said. The $115 million special allocation last year was included in the overall state budget bill, which Democrats voted against. But the vote in opposition to the state budget was for a variety of reasons for different members, including a lack of funding for Medicaid expansion and a cut to revenue sharing, not because it included additional road funding, said Katie Carey, press secretary for the House Democratic Caucus. The result was that not a single House Democrat had a road project approved last year, while 45 of the 59 House Republicans had at least one approved. In the Senate, 15 of the 26 Republican senators had a project re-

Dems question fast-track state funding for Grand Prix roadwork One of the largest road projects in Wayne County that was approved for special funding last year by Gov. Rick Snyder and Republican lawmakers is being questioned by Democrats who wonder if the Grand Prix track on Belle Isle is the highest priority road that needs fixing in Detroit. Rep. Andrew Kandrevas, DSouthgate, minority vice chairman of the transportation appropriations subcommittee, questioned why the Grand Prix track needed state funding so urgently. â&#x20AC;&#x153;It might be a huge economic development engine but â&#x20AC;Ś weâ&#x20AC;&#x2122;re pulling out of the same funds where some roads are just absolutely dangerous to drive on,â&#x20AC;? he said. Snyderâ&#x20AC;&#x2122;s office did not respond to requests for comment. Jeff Cranson, director of comquest approved, compared to two Democrats. The Democrats did vote for the supplemental spending bill that included the latest $115 million allocation, and Heaton said because of that, they are being included in the discussion. Carey said House Democrats have submitted about 100 road projects for consideration.

Balancing priorities Rep. Rob VerHeulen, R-Walker, chairman of the House Appropriations Transportation subcommittee, said the goal is picking projects that will have the most impact, while balancing the cost, the traffic on a road or bridge, and how in need of repair it is. The special allocation also is an opportunity to direct money to specific local projects because the MDOT budget is limited to state roads. About half of the $115 million was used for local projects. â&#x20AC;&#x153;By doing it this way, you have a

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munications for the Michigan Department of Transportation, said the money is meant to be used primarily for rebuilding and rehabilitating portions of the roads on the island, which is now operated as a state park, especially the areas used for the Grand Prix course. A construction manager will soon be hired to identify the priorities of what needs to be fixed and then manage the construction. In 2012, the track started falling apart during the Grand Prix, causing race cars to crash and the race to end prematurely because it was unsafe to drive on it. Private donations from Roger Penske and Chevrolet have been used since to address the problems with the track, and Cranson said the state funding will be used to fill in the gaps. â&#x20AC;&#x201D; Chris Gautz balance of county projects (and) city projects,â&#x20AC;? he said. While lawmakers are the ones submitting the requests, VerHeulen said he has encouraged members to work with local road commissions and city, township and village officials in their districts. He said the list he submitted from his district came from the Kent County Road Commission. â&#x20AC;&#x153;I look to the experts,â&#x20AC;? he said. â&#x20AC;&#x153;They have more expertise than I do.â&#x20AC;? MDOT keeps a running fiveyear list of projects around the state that have been vetted and are ready for repairs once they receive funding. When lawmakers announced last year they would be picking projects, MDOT asked them to pick projects from the plan. In a dozen cases, that is what happened, but 30 other projects Republicans requested that received funding were not part of the fiveyear plan. The rest of the projects were for local roads or bridges not under MDOTâ&#x20AC;&#x2122;s purview.

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Jeff Cranson, director of communications for MDOT, said the five-year list is not set in stone, and projects move on and off as some roads worsen. He said the projects approved that were not on the list had been identified by MDOT as needing preventive maintenance. With the second pot of $115 million, MDOT again is requesting the projects come from its fiveyear plan. Senate Majority Leader Randy Richardville, R-Monroe, said he is not sure of the timeline to select the new round of projects, but he expects discussions will take place in the coming weeks. The House and Senate have almost the entire month of April off, and Richardville said there will be time to make those road funding decisions during the break. Senate Minority Leader Gretchen Whitmer, D-East Lansing, said she met with Snyder on Wednesday to make clear she thinks lawmakers should be listening to experts, and have MDOT make the road funding decisions. She said the list Senate Democrats submitted last year will be used again, and while she hopes the process will be fairer, she said the larger point is that MDOT should be the ones doing this work, not lawmakers. Former Republican House Speaker Rick Johnson, who also has chaired the House Transportation Committee, said he didnâ&#x20AC;&#x2122;t allow special road project funding in his budgets. Johnson, who served as speaker from 2001-04, said he didnâ&#x20AC;&#x2122;t believe in handing out road projects for particular districts in a political fashion. â&#x20AC;&#x153;I was always of the belief that you have engineers and people at MDOT that are looking at the roads and bridges all the time,â&#x20AC;? Johnson said. â&#x20AC;&#x153;If you have a fiveyear plan, you ought to stick to it.â&#x20AC;? Johnson said it is possible road projects given to certain lawmakers could be used as a way to gain support for other legislation or to help them in their next election. But Johnson said that isnâ&#x20AC;&#x2122;t like-

ROAD PROJECTS BY COUNTY Metro Detroit will see more than $31 million from the $115 million set aside last year for priority road projects â&#x20AC;&#x201D; in total, 23 of the 108 projects approved last year by Republican leadership and Gov. Rick Snyder. In all but one case, Republicans requested the projects.

Oakland 11 projects, total cost: $13.1 million Major projects äĄ˛ $5 million for eastbound I-96 from Novi Road to the west county line äĄ˛ $3 million for M-59 from Elizabeth Lake Road to State Street in Pontiac

Wayne and Detroit 5 projects, total cost: $10.9 million Major projects äĄ˛ $5 million for Lotz Road, east of I-275 at Ford Road in Canton äĄ˛ $4 million for roads on Belle Isle and the Grand Prix

Macomb 5 projects, total cost: $6.3 million Major projects äĄ˛ $2 million for M-59 from M-53 to I-94 äĄ˛ $1.7 million for southbound Kelly Road from Nine Mile Road to Toepher Drive in Eastpointe *The only project request from a Democrat that was approved

Livingston 2 projects, total cost: $2.1 million Major project äĄ˛ $1.4 million for Grand River Avenue from Hacker Road to I-96, north of Brighton

Washtenaw None ly to work. â&#x20AC;&#x153;If a legislator needs a road project to get elected, they need to get their ass out there and work,â&#x20AC;? he said. â&#x20AC;&#x153;One project is not going to get someone elected.â&#x20AC;? Chris Gautz: (517) 403-4403, cgautz@crain.com. Twitter: @chrisgautz

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Drones: Startup SkySpecs awaits funding, flight clearance ■ From Page 1

Nonetheless, SkySpecs held a show-and-tell earlier this month for current investors to demonstrate its drones made to inspect bridges, wind-turbine blades, buildings, sewer pipes and transmission lines. The purpose was to show that the $500,000 raised in a seed round last year had been put to good use. The demonstration went fine, thanks to a high ceiling in SkySpecs’ combination of a warehouse and manufacturing facility. SkySpecs CEO Danny Ellis is raising another round of funding, this one of $250,000, which he thinks will get the company to the point sometime next year where it is producing revenue, at which point he can go out and raise a larger round of equity funding from venture capitalists. The company was launched by engineering students at the University of Michigan in 2012. The focus on building drones specifically to inspect sites for structural integrity would make things easier for institutions that need or want to make more frequent inspections. The uncertain regulatory climate hasn’t kept fundraising efforts from taking off, though, nor has it stopped SkySpecs from forming significant industry alliances, typically not possible for startups. SkySpecs signed a formal agreement in January with UpWind Solutions Inc., a San Diego-based company that manages and maintains large wind turbine farms around the country, to use its drones once the FAA gives approval for commercial use, which is expected to happen sometime next year. UpWind is providing SkySpecs with software to help its drones deliver images and data, said Dave Peachey, UpWind’s vice president of engineering. The relationship with UpWind should help SkySpecs maneuver through whatever regulations the FAA puts in place for commercial drones. In December, the FAA announced it had chosen six states where test facilities would be set up to monitor various types of drones and decide what kinds of rules to put in place to control their operation. They were Alaska, Nevada, New York, North Dakota, Texas and Virginia. On March 6, Patrick Geraghty, an administrative law judge with the National Transportation Safety Board, ruled the FAA doesn’t have the authority to regulate commercial drones, in a case involving a promotional video shot at the University of Virginia Medical Center, but the FAA appealed that decision. Peachey said he came across SkySpecs at the American Wind Energy Association’s annual trade fair in Chicago last May and was immediately impressed. In January, the two companies formalized a relationship. He said small, nimble drones will allow his company to do visual inspections much more often and for much cheaper. Now, he said, the company uses ground-based cameras for most inspections and visual inspection by two-person teams annually, which involve long set-up and take-down times and the deploying of ropes to rappel down the surface of turbine blades.

Firms set drone flight plans BY BRIDGET VIS CRAIN’S DETROIT BUSINESS

The forecast for local businesses tied to hobbyist or commercial drones? It’s taking off, although uncertainty pegged to pending Federal Aviation Administration rules makes it an unchartered area to do business. Here’s a look at five Southeast Michigan companies focused on the world of drones — and how their business is hinged upon the federal discussion on regulation.

R4 Robotics

ROBERT CHASE

SkySpecs CEO Danny Ellis shows off a drone at the company offices near the Ann Arbor airport. Behind him are Tom Brady, CFO and flight controller, and Isaac Olson, engineer (right).

“We saw SkySpecs as an opportunity to do more and better inspections,” he said. “SkySpecs won’t replace the human eye, but instead of doing a close-up visual inspection once a year, we can do it much more frequently.” Peachey said UpWind will likely be involved in tests at three of the six test regions, in Alaska, Texas and New York, and as a major player in the wind industry, he will be able to get SkySpecs drones involved. “Since we run wind farms around the country, we’ll be able to leverage that and provide SkySpecs with test sites. And we have the trust of our customers, so we have much more clout with the owners of wind farms. We’ll bring credibility to SkySpecs with both the FAS and with owners,” he said. SkySpecs first made news locally in February 2013, when it won $50,000 for finishing first in the Michigan Clean Energy Venture Challenge, put on by UM and DTE Energy Co. The company has won money in three other business-plan competitions, including $5,000 for finishing fourth in a competition at Detroit’s NextEnergy last June. The company was formed in 2012 by Ellis; Tom Brady, who is CFO; and Sam DeBruin, who is COO. It grew out of a trip to the West Coast planned by the UM Center for Entrepreneurship. Would-be student entrepreneurs were asked to apply on line for a trip to pitch business ideas to UM alumni in California. The three had been working on drones as a student project and had shot a video. Two hours before the deadline, they posted it on the center’s website. To their surprise, they were chosen to be one of about 20 teams to head west. They got a lot of feedback, mostly to narrow their focus. “We didn’t know who our customer was;

we thought everyone would be our customer,” said Brady. “We were going to sell to the military, to hobbyists, to everyone,” said Ellis. That trip led to them getting a spot in the Tech Arb, an incubator in Ann Arbor, and a boot camp that summer to hone their business skills. They also got mentoring help from Jerome Lynch, an associate professor in the department of civil and environmental engineering at UM. Ellis said he plans to buy a drone to monitor landfills. SkySpecs, which employs nine, built its prototype and will build drones on a small scale. But as sales ramp up after expected FAA approval, it plans to outsource parts manufacturing to local suppliers and do final assembly itself. SkySpecs’s drones have four small propellers, each spinning inside a carbon-fiber ring that protects the propeller from damage if it gets too close to an object while flying. The circles are so light they feel almost weightless, but stand up to a heavy slamming against walls or other objects. Ellis said the company, which has applied for one patent so far, may sell drones if demanded by a customer, but the plan is to rent the drones for fees of up to $250 an hour. “It lowers the cost of entry to customers if they can rent one instead of making a commitment of anywhere between $50,000 and $110,000 to buy one,” he said. Ellis said he isn’t aware of any U.S. competitors, and that foreign competitors include Aibotix in Germany and Aeryon Labs Inc. of Waterloo, Ontario. While none of the seed round came from those they met in California, lessons learned there helped raise their startup money. The Detroit-based First Step Fund, a $5 million seed-stage fund under the auspices of Invest Detroit, a source of for-profit and nonprofit

Karl Sachs is CEO of Birmingham-based R4 Robotics, which has been developing drone technology since 2011. Sachs suggested that to speed up the approval process, the FAA should separate the rules for drones that operate in controlled settings (such as R4’s public utility work) and those that travel long distances across urban areas, like delivery drones. R4 is focused on work like scanning utility lines for leaks, hot spots or other issues. Sachs said R4 ran a pilot program with a utility company to test how drones can be used to check power poles. But he used extreme caution. “We put out cones, rang people’s doorbells to tell them what we were doing and left notes if people didn’t answer to make sure no person would be under one of our devices,” he said.

Detroit Aircraft Corp. Detroit Aircraft specializes in drone work for first-response, commercial and creative applications. Jon Rimanelli, CEO of the Detroit-based company that designs, integrates and tests drones, said opening air space, even temporarily, to hobbyists opens the door to hobbyists using drones for commercial purposes. But, he said, hobbyist drone flights potentially pose a risk to the public. “The reality is the ruling basically will allow for a number of people — some of whom lack a proper electronic background — to go out and use drones for commercial purposes without testing their reliability or airworthiness,” he said. In the meantime, Rimanelli said Detroit Aircraft is working with customers from the government and military, who can operfunding affiliated with Business Leaders for Michigan, led SkySpecs’ $500,000 seed round with an investment of $50,000 and may join the second round. “We led the round last May, when it was more of an idea than a company,” said Adrian Fortino, a vice president of Invest Detroit and director of the First Step Fund. “What we saw was an opportunity to provide an application across a lot of different infrastructures —

ate drones with certificates of authorization, and with the Detroit Fire Department, to develop a drone training center.

LunaTech 3D LLC The Plymouth-based marketing firm has been fielding requests for aerial photographs taken by drones for six months from clients that include golf courses and real estate agents as it produces spin tours and other visualization services for clients. The all-clear for certain categories of drones has been helpful to the company. “Now that the doors have opened, even if it’s only for a short period of time, we will be going at it full-bore,” said company President Doug Willett. The company integrates aerial images with Google Earth and other media to create presentations and tours for websites and other uses.

Hello Aerial LLC Detroit-based Hello Aerial, a subsidiary of tech innovation and design company Hello Innovation Inc., has invested $1.5 million in drone technology in the past year, said Joe Joachim, CEO of Hello Aerial. Joachim said his six-person team is focused on developing drones that will fall in between those hobbyists use and those the military use in anticipation of the FAA’s commercial drone regulations. “We are the biggest fans of regulations because we want to get rid of the people who are operating drones without knowing what they are doing,” he said. Hello Aerial already operates its nearly 20 drones like an airline, with pre-flight checklists and other safety measures.

FlowerDeliveryExpress.com In perhaps the most publicized local business response to the drone ruling, Wesley Berry, CEO of Commerce Township-based florist Wesley Berry Flowers, said he would restart the testing of using drones to deliver flowers after such tests were halted by the FAA last month. He said drone delivery would have many advantages over the trucks his company uses for flower deliveries — such as not having to follow roads or get stuck in traffic. turbine blades, energy transmission lines, buildings, bridges and sewers — using the same inspection technology. It was very compelling,” he said. “They’ve made incredible progress, with what was really just a bit of seed money. They’re hungry. Literally. They don’t pay themselves much,” said Fortino. Tom Henderson: (313) 446-0337, thenderson@crain.com. Twitter: @tomhenderson2

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Exchanges: More companies sign on to manage health care costs ■ From Page 3

“The numbers grow every day, and we expect the uptick to continue,” Dallafior said. Denise Christy, iSelect’s president, said a growing number of companies are finding they can more effectively budget annual health insurance costs through a defined benefit contribution approach. Under defined contribution, Christy said, emChristy ployers can set a budget for health care costs below their annual increases and then allocate each employee a predetermined amount to spend on benefits in the exchange. The employee’s contribution would be deducted from their payroll. Companies could also continue to self-insure their risk using a third-party administrator or one of the health plans on the iSelect exchange, she said. “ISelect works because of three things: strong carrier partners, easy-to-use technology and a great group of agents,” said Christy, noting that nearly 1,000 agents have been certified to sell iSelect. As a multi-carrier private health insurance exchange that targets companies with 10 to 1,000 employees, iSelect contracts with Health Alliance Plan and Priority Health to offer up to 10 custom

FAQ ON PRIVATE EXCHANGES What is a private insurance exchange? A private exchange essentially is a private business operated mostly by brokers or insurers who sell insurance products to health care consumers (employees of companies) through an online product. How do employers fund health benefits through exchanges? Most employers set up a defined contribution plan (Section 125) for their employees, setting aside a certain amount of pretax funds for each employee to use to purchase health benefits. Employers that are selfinsured or that are fully insured and contract with HMOs can participate. What if the health plan products exceed the employer’s contribution? Employees must pay for more comprehensive benefits by using their own funds. What types of health benefits are offered? Employees can choose major medical health plans and supplemental insurance that includes dental, vision and disability. When a private exchange offers multiple carriers and several health plans, how does an employee decide which to use? The exchanges offer online decision support tools that ask a series of questions to determine the best plan to recommend. health products each. Christy said iSelect has enrolled 20 companies with more than 1,000 total covered lives. So far, the largest company has 140 employees with 90 signing up, she said. At least two other companies have been marketing private exchanges in Michigan — Mercer, with its Mercer Marketplace, and New York City-based Willis Group, with its Willis Advantage — although more are coming. The private exchanges are not open to individuals, however. “All major carriers (Aetna, Cigna and United Healthcare) are offering exchanges, and a majority of the larger consulting and brokerage

houses are in the game or partnering with an exchange platform,” said Lester Morales, Willis’ chief growth officer based in Charlotte, N.C. Morales said companies participating in an exchange need to choose one that has a robust employee support decision-making tool and that makes an effort to help employees contain costs. “In the defined contribution approach, if the underlying rates of the plans being offered on exchange continue to trend at double digits, (an employee’s) plan buys less and less over the years,” Morales said. “You need a health management

Many Michigan companies are still reviewing their options, said Jerry Konal, Mercer’s health and benefits leader in Detroit. (and wellness) approach to the rise in health care costs; otherwise, you are just cost-shifting to employees,” he said. Early last year, Mercer launched its Mercer Marketplace for employers with at least 100 employees. While Mercer nationally has signed up 67 companies with 282,000 employees, dependents and retirees, many Michigan companies are still reviewing their options, said Jerry Konal, Mercer’s health and benefits leader in Detroit. “There is a tremendous amount of interest. Employers are just learning about it. They need lead time to plan changes to their plans,” Konal said. Morales said Willis has two companies on the Willis Advantage exchange with another five coming on this year. More than 600 employers nationally are interested in Willis’ approach, a multi-step process that first involves offering consulting services to help a company find the best approach, he said. Dallafior said delays in rolling out the Affordable Care Act public

insurance exchange created some hesitation by companies to make decisions on coverage options for their employees. Christy agreed. “The only thing that has held me back,” she said, is new federal rules that delayed until 2016 the small business (50-99 workers) health insurance mandate under the Affordable Care Act. “There was some impact because it has pushed off decisionmaking,” Christy said. Like GlidePath, Mercer, Willis and iSelect also offer ancillary insurance, including dental, vision, critical illness, accident, short-term and long-term disability policies. “What is really interesting about the Mercer Marketplace is individuals have learned how to leverage their services,” Konal said. “They bought a different level of coverage, maybe basic, and then add critical illness and hospital indemnity. It is all left to their discretion and choice.” Jay Greene: (313) 446-0325, jgreene@crain.com. Twitter: @jaybgreene

Defense: Ruling could alter bidding path for vehicle contractors ■ From Page 3

tion period. General Dynamics protested Feb. 14, before any companies had responded, claiming indirectly that the details in the Army’s request give BAE an unfair advantage. General Dynamics’ protest doesn’t mention BAE by name, but it contends the Army has “failed to structure a fair competition” because many criteria for the project are cheaper and simpler to meet for a bidder who makes use of BAE vehicles, technology and some technical data during development. Technical data furnished to General Dynamics on that BAE equipment has been “incomplete,” the contractor has said. The Army proposes to field a replacement vehicle by the early 2020s for its massive and aging fleet of M113 tracked personnel vehicles that first entered production in the 1960s. The Army has used M113s since the Vietnam War. Both companies are preparing their AMPV bids in Sterling Heights, where General Dynamics Land Systems is based and where BAE houses its Heavy Brigade Combat Team business. Other prime contractors that attended past defense industry day conferences by the Army on AMPV and may consider bids of their own include Navistar Defense, Lockheed Martin Corp., Raytheon Co. and Oshkosh Defense, a business unit of Wisconsin-based Oshkosh Corp. The vehicle contract could be worth at least $5 billion to replace

more than 2,900 M113s for the Army’s primary armored force, and possibly around $12 billion if the Army replaces every such vehicle in service, local industry executives told Crain’s. But the M113 is a legacy BAE vehicle, discontinued in 2007, and the request for proposals that the Army released in November includes an important caveat: It allows for the Army to furnish some of its fleet of Bradley armored fighting vehicles, also built by BAE, as “exchange” vehicles to aid any contractor engineering the new vehicle design. But a statement from General Dynamics argues a bidder’s ability to rebuild compliant vehicles, to create a proposed vehicle, requires extensive technical knowledge and performance information. “The OEM (in this case, BAE) and the Army (are) the only other source(s) for that data.” General Dynamics estimates about 60 percent of the project criteria could be costlier and more technically difficult for a bidder that doesn’t develop a proposal framed around the Bradley and some equipment from the M113. Not so, said Mark Signorelli, vice president and general manager of vehicle systems for BAE’s offices in Sterling Heights and its ranking site executive in Michigan. Signorelli said the Army, and not BAE, owns the majority of the intellectual property connected to the 30year-old Bradley design, and could

easily share it with other bidders. The multipurpose vehicle bid solicitation allows for some “parallel” wheeled vehicles to be considered along with tracked vehicles, so a variant of GDLS’ own Stryker armored vehicle could make a viable proposal, he said. “We’ve been very clear that our solution is going to be Bradleybased, and there’s a fundamental reason for doing that. The Bradley was made to be a part of the (Army’s) Armored Brigade Combat Signorelli Team — as was the M1 (Abrams battle tank, a General Dynamics vehicle). But that doesn’t mean we have the only thing that can do that,” Signorelli said. “We believe there are other solutions that can also meet this requirement, and this will be a very robust competition.” But Peter Keating, vice president of government relations and communications at GDLS, notes that contractors are required to submit a vehicle that modifies something in their own inventory — and not all vehicles meet the same technical specs as BAE’s Bradley. Even with access to vehicles, engineers won’t have the level of access to specifications that competing BAE engineers have, he said. “You’re going against a vehicle

that was already pre-tested by the Army and already submitted as meeting certain performance standards, and your own vehicle has to meet all the performance standards that it meets,” Keating said. “It would be rather costly to go out and do that to the fidelity to the standard the Army requires it — and we have no test data, so we have no sense yet of the reliability, mobility and other standards the Army wants to hold you to.” Analysts have said the replacement vehicle for M113 took on a greater significance for contractors and suppliers after Congress eliminated most of the planned $592 million funding for the separate Ground Combat Vehicle earlier this year, in passing the National Defense Authorization Act of 2014. The funding cut essentially eliminated the Army’s plans to put that vehicle program into production by next year, and other vehicles also have been victims of federal sequestration cuts over the past year. The U.S. Army Tacom Life Cycle Management Command in Warren was expected to award initial preproduction contracts by the last quarter of this year, but it cannot approve a contract award without authorization from a superior official at Materiel Command unless the bid protest is already resolved. If the Protest Decision Authority decides that GDLS’ gripe is legitimate, it could choose to issue a new solicitation and restart the bidding process, refrain from exer-

cising any contract options, or propose its own remedies. General Dynamics has also requested that the authority order that all bidders get enough of the Bradley and M113’s “technical data and time to prepare a competitive offer.” Byron Callan, a director at Washington, D.C.-based investor research and intelligence firm Capital Alpha Partners LLC and a defense industry analyst, said he was not familiar with the details of GDLS’ bid protest, but he said the AMPV allows for BAE to offer “commonality” of components with the Bradley. That could mean lower replacement and maintenance costs to keep the vehicle fleet functional in the future, if Bradley also remains a part of the Army’s fleet. But Signorelli said General Dynamics and others could be able to offer the same kind of cost savings, and there is “no extra credit” for how much a bidder’s AMPV vehicle proposal has in common with others. Said Callan: “Part of the BAE (sales) pitch is to be able to say that, ‘Look, we can give you (the Army) a vehicle that’s already got a lot of commonality with what you’ve already got in your inventory.’ And the trick for GD is to kind of derail this and show that somehow they’ve also got a viable alternative with similar cost savings, that isn’t getting fair consideration.” Chad Halcom: (313) 446-6796, chalcom@crain.com. Twitter: @chadhalcom

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Lee: Someone you can bank on: ‘If I need help, I know who to call’ ■ From Page 3

Lee’s hand can be seen in the careers of influential people such as New Detroit President and CEO Shirley Stancato, former Mayor Dave Bing and Emmett Moten, DoubleTree Fort Shelby co-owner and longtime Detroit development figure. For many prominent Detroiters, Lee either got them into banking or helped finance their early enterprises. Lee is credited as the first African-American to take a managerial role at the National Bank of Detroit in 1966. Lee used that role to bring more African-Americans in as employees and managers, and to extend commercial loans to minorities. “Trailblazer” is the word that comes up when people talk about him. Lee, now 79, is described as a person who understood the value of relationship-building early in his career. “Everybody knew of Mr. Aubrey Lee,” said Stancato, who worked as an NBD regional manager under Lee early in her career. “He was a hero among us.” Those who worked with Lee say he knew everyone and gained their reStancato spect through attentiveness and competence, able to glide through the worlds of small-business owners and corporate chairmen alike. “That’s the special touch he had. Both sides respected his ability,” said Moten. “If I need help, I know who to call on. I have unbelievable respect for Aubrey.”

Climbing the ladder Growing up in his hometown of Huntington, W.Va., Lee figured he’d spend his college days at Morehouse College in Atlanta. He did attend there his freshman year, made possible by the savings of his grandmother, a live-in maid in New York, who before then spent most of her life picking cotton and vowing her grandchildren would go to college. The 1954-55 Brown v. Board of Education Supreme Court rulings allowed Lee to attend school closer to home at state-supported West Virginia State University. The lower tuition meant he could afford to pay for it himself by taking a summer custodial job at an Elks Lodge. He followed that with graduate school at Marshall University, just eight blocks from his family home. He also joined the Reserve Officers’ Training Corps, serving in the U.S. Army Reserves for eight years after graduation, working his way up to captain. Lee earned a master’s degree in political science with minors in economics and sociology in 1956 at age 21. That was good enough to get him a job, but not the one he wanted. Despite his credentials, he couldn’t find a job for the management trainee roles he sought. “At that time, the best job I could get was as a bank teller,” Lee said. “That was not unusual. ... You had black college graduates glad to be working at the post office.”

A black friend from West Virginia State who already had a job as a teller helped Lee get his foot in the door at NBD. Lee soon learned that bankers were expected to wear blue shirts — never white — and not have mustaches. By the time he retired from the bank in 1999, he’d risen to senior vice president and head of the municipal banking group, just after NBD had morphed into Bank One. (It later merged into Chase Bank.) Lee hit every conceivable rung on the ladder to get there: teller, head teller, assistant manager, senior assistant manager, branch manager, regional manager and a number of vice president titles. In 1980, he became chairman, president and CEO of NBD Troy Bank, a division of NBD, and later served in senior vice president roles in the main corporate offices. When Lee hit the branch manager rung in 1966, he was the first African-American at NBD to do so. He’s quick to point out that the bank had him working with white employees and customers all the while — it wasn’t just for show. “At that time, it took a lot of guts for white people to say, ‘He’s a good guy, he has potential,’ ” he said. Not long after that, he worked, in yet another of his many roles, as an HR staff assistant. Lee was asked to help with recruiting, specifically with recruiting college minorities for management trainee jobs. The request smarted at first, because he had his mind on other pursuits, but then he embraced it. The group recruited about 50 trainees a year and only a handful were black. But it was a start, and because NBD was the leading bank in town, it encouraged others to follow suit. Lee’s hand touched the careers of people such as former Detroit development officer Walt Watkins, who was hired by Lee as a management trainee and would eventually go on to become president of the bank, and Global Automotive Alliance LLC Chairman and CEO William Pickard, whose long entrepreneurial career began with the opening of a McDonald’s franchise, financed by Lee at NBD, Lee said. Another was Dave Bing. Bing first encountered NBD in 1966, when as a 22-year-old fresh from being selected by the Detroit Pistons as the second overall draft pick, tried to get a mortgage to buy a house for himself, his wife and two children. He was rejected. It wasn’t because he was black. It was because “I was a professional athlete. They didn’t think I was a good risk,” Bing said.

“

Changing times It was a different time not just in race relations, but also in the National Basketball Association. Bing’s contract was for just $15,000 a year, an everyday salary in those days. Bing ended up getting a mortgage from Manufacturers Bank, now part of Comerica. As he made his way through his first year, picking up a Rookie of the Year award along the way, he was contacted by Lee to see if he was interested in a job as a management trainee. “He explained to me he thought they’d made a mistake by not offering me the mortgage, and this was a makeup, if you will,” Bing said. Bing worked the off-season for seven years, starting as a teller, then head teller and assistant branch manager. During his first year on the job, 1967, the riots broke out. NBD moved him to work as a teller at the Grand River and Lothrop Bing branch — “one of the areas that was real hot” — to make sure its image was in line with the changing times. Bing continued working even when he didn’t need the extra money. “I still wanted to work because it kept me grounded, kept me in contact with everyday people,” he said. By the time Bing retired from basketball and began planning a business, he knew plenty of people at NBD who could help. Lee had recruited four or five African-Americans who’d moved up to become executives, including Ed Tinsley, who provided Bing the $150,000 loan that, along with $150,000 of Bing’s own money, launched Bing Steel Inc. “Fortunately for me, the guys moving up the ranks ... made it very easy for me,” Bing said. Lee’s presence in the upper echelon of banking management helped a great deal, he said. “A lot of black customers would come into the bank and see somebody in the management area that was African-American. It made them happy and they gravitated to it. After the riots, race became a big issue. People were not comfortable going to a white manager. They thought, ‘I’m not going to waste my time,’ ” Bing said. “It was important to see somebody who looked like you, with dignity.” Lee came up during a time when accusations were flying about banks “redlining” minorities out of access to credit. “I wouldn’t say ‘accusations’ —

Here’s the banker in me. I get more things done by being nice, logical and smart than ... knocking you. If I can’t say something good about you, I’ll tell you.

”

JACOB LEWKOW

it may have been true,” Lee said. He declined to comment beyond that, saying he could only speak for the Detroit-area activity in his view at the time. “Our objective was to try to make loans to people who deserved them,” regardless of ethnicity, he said.

Entrepreneurial support In the early 1970s, Lee also worked with the Detroit Urban League on a hiring drive to get more black employees. Then he started working in the credit department, becoming the bank’s first black lender, and part of his job was to step up commercial minority lending. “A lot of things were happening in Detroit, a lot of it probably due to the riots. Other banks were looking at how you make loans to minorities,” he said. “By this time in Detroit, you had a lot of people trying to do things which we had never done before. ... It was a completely different atmosphere. In fact, it was kind of exciting. We were young.” Lee handled small-business loans, from tool-and-die shops to fast-food restaurants, and he also was known as a lender to churches, such as Greater Grace Temple. Lee helped African-American businesses and churches by being generous with his time, making multiple visits to go through what it took to get a loan and how to get prepared. He mentored employees, be they black or white, male or female. He spoke at schools and community events. He gave the same personal attention and advice to employees to help them with their careers, Stancato said. “He elevated many of us to higher positions,” said Stancato, who started working at NBD as a machine operator in the late ’60s, having applied for a job to help pay for college. NBD loaned Lee to new Mayor Coleman Young to serve as a senior staffer on the council that ultimately led to the formation of the Detroit Economic Growth Corp. under its first president, Robert Spencer. Lee did research and traveled to other cities to look at their development efforts. The leadership wanted AfricanAmericans in prominent roles at the new DEGC, so Lee set out in search of a respected administrator for the role of vice president. He heard about a mayoral assistant in New Orleans named Em-

mett Moten, who it turned out had zero interest in the job when Lee began twisting his arm. “He kept going and going ... pestering in a constructive way,” Moten said of Lee’s phone calls, until Moten relented and visited Detroit. Moten said he was surprised at how clean Detroit was, that it wasn’t like what he’d heard (some themes never change) and took the job of vice president of community development. One of the DEGC’s first noticeable projects Moten was a smallbusiness development effort in 1979 in Southwest Detroit, in the area of West Vernor Highway and Springwells Street. Lee supplied lines of credit from NBD for the pilot program that was emulated elsewhere in the city, Moten said. Business development from the pilot program kick-started neighborhood revitalization in an area of town that has tracked population gains thanks to steady influxes of immigrants. “Aubrey was the guy who created the bone and then put the meat on the bone,” Moten said of Lee’s work on the DEGC.

Quietly influential Lee wasn’t an activist. The work of integration undertaken by him and his white managers came about because they thought it was time, Lee said. So he didn’t hold picket signs or lead boycotts, but he can be thought of as being on the other side of that coin. If, after the protests went quiet, there still was no one like him to give the loan, job or advice that led a black family into the mainstream of American life, then what had all the noise been for? It’s the calm, competent professionals within institutions that ultimately are needed to make things happen, one person at a time, black business leaders say. “They can’t be on the front lines jumping up and down, but once you need help — they need to be there,” Moten said. Those quietly working behind the walls of banks and other institutions are less visible but just as important as those doing sit-ins, Stancato said. “The ones outside picketing get in the newspaper and get a microphone in their face. Those inside don’t — and that’s fine with them.” Lee did make the newspapers for one 1990s racial controversy, albeit in a side role, when the Bloomfield Hills Country Club rejected the application of then-General Motors executive Roy Roberts, an African-American who most recently stepped down from a post as the city’s chief land officer, and previously served as emergency manager of Detroit Public Schools. When the club eventually accepted Roberts, it asked Lee to join at the same time, which he did. Lee knew many people in the club already through his work on the See Next Page

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March 31, 2014 From Previous Page

board of Beaumont Hospital. “They didn’t want (just) one black person to go in,” Lee said.

Kindness wins Lee’s resume includes a long list of the sorts of recognitions and leadership awards one would expect, and the list continues to grow. Troy basedWalsh College announced this month it will award Lee an honorary doctor of laws degree at its commencement in June. He’s been a member of Walsh’s board of trustees since 1984. The Detroit Regional Chamber in October gave Lee a lifelong leadership award, and last month Charles H. Wright Museum of African American History in Detroit held a private reception to honor his work. Lee’s said that despite the accolades, he doesn’t want to convey to the world that he’s finished giving back. “I’m not done,” he said. Lee is an emeritus member of Beaumont Health System’s board, and lives in Orchard Lake with his wife, Jeane. Jeane and Aubrey met while they were in college and married in 1956. She came from Ashland, Ky., up the Ohio River a few miles from Lee’s West Virginia hometown. She, along with one of her brothers, was among a group of about five students who were the first African-Americans to attend Ashland Junior College just after the Brown v. Board rulings. “It was within walking distance, but we were not allowed to go there” before the rulings, Jeane said. The Lees have three sons — Aubrey Jr., David and Mark — and four grandchildren. Jeane, also retired, worked for Ford Motor Co. in business administration, marketing, legal and other capacities. She has been a volunteer at Beaumont for 20 years and active with Care House of Oakland County and the Arthritis Foundation. Jeane said she and her husband worked hard to build a comfortable life, a stark contrast to her rural Kentucky roots. She speaks openly about the value of hard work. “We worked very hard to get where we are,” she said. “Don’t just sit back and wait for someone to give something to you.” Aubrey Lee notes what a different world it is to see his grandchildren easily getting into schools in their home state of Michigan. He also worries about the ethics of the world, not just in banking with what happened in the subprime mortgage crisis, but in general. He prefers the measured logic of the banker that served him so well in his career. “Here’s the banker in me. I get more things done by being nice, logical and smart than I do to be knocking you,” he said. “If I can’t say something good about you, I’ll tell you. I’m not going to go out and say that to the world. That’s always been my philosophy. As a banker, I can’t afford to be knocking you.”

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Tigers: Talent gets nod over bobbles ■ From Page 1

Bobbleheads boosted attendance by 6,674 fans, according to a survey published in 2006 by the American Journal of Business. The data, assembled from an analysis of all 2,392 games played in 2002, also showed that bobbleheads given away at night games were more effective. Day-game giveaways saw 3,439 fewer fans. Giveaway items worth less than $5, such as foam fingers, were much less effective at boosting the gate, the analysis showed. Bayless estimated a more typical increase across baseball today with bobbleheads is about 1,500 to 3,500 fans per game, but declined to discuss specifics for the Tigers. And even after 15 years, fan interest in bobbleheads remains strong, Bayless said: “They have not decreased in their popularity, and I wouldn’t expect them to decrease.” Academic research bolsters the common-sense notion that good teams need trinkets to lure fans far less than mediocre clubs. “Promotions typically help losing teams more than winning teams. You’ll find promotion is not as effective (in Detroit) in drawing fans to the ballpark as in Pittsburgh,” said Wayne DeSarbo, executive director at the Center for Sports Business and Research at Penn State University. He has specifically studied MLB ballpark promotions in Detroit and for the Pittsburgh Pirates. “The success of these types of promotions often is inverse to the performance of the team,” he said.

The payoff For most teams, a bobblehead is the lure to get more fans through the turnstiles, after which they’ll spend more money inside the ballpark. Bobbleheads can boost fan spending by as much as $25 per person, and corporate sponsors typically pay a premium to be part of bobblehead giveaway days, said bobblehead impresario Malcolm Alexander. His company, Bellevue, Wash.-based Alexander Global Promotions, has produced more than 50 million bobbleheads since 1999. The Tigers have never disclosed how much a typical fan is worth in revenue — known as the per-cap — but Chicago-based sports research firm Team Marketing Report publishes an annual formula known as the Fan Cost Index of how much it costs a family of four to attend a game. That formula can be used to divine a rough estimate for a single fan, based on the average price of tickets, concessions, souvenirs and parking. Last season, the index showed a single Tigers fan was worth $73.85 a game — which doesn’t include a portion of the sales split with MLB and a concessionaire. So using cocktail napkin math, even if a bobblehead promotion brings an extra 3,500 fans into Comerica Park, the Tigers theoretically take in an extra $258,000. That’s not a lot of money for a team with $160 million in payroll this season, but baseball teams seek cash where they can find it. Giveaways and events add up and can generate millions in additional revenue. Detroit already has solid fan participation: It drew 3,083,397 fans to

Comerica Park last season and sold out 33 of 81 home games — despite an increase in most ticket prices. Those attendance numbers are second in the team’s 113-year history, trailing only the 3,202,654 tickets sold and 41 sellouts in 2008.

Bobblehead economics Bobbleheads are not cheap. The wholesale cost of one bobblehead is $2.50 to $4.25 each, with the price hinged on the complexity of the figurine’s pose, whether it has an electronic mechanism (such as a pitch counter) and how many are ordered, Bayless said. That means the giveaway of 15,000 Max Scherzer bobbleheads on June 5 could cost the Tigers $37,500 to $63,750. The sponsors don’t necessarily pick up the cost of the item. Bayless said the team’s sponsorship and promotions departments are separate, and the sponsor is not responsible for underwriting the cost of the giveaway. BallPark Franks and Frito-Lay are sponsoring Detroit’s bobbleheads in 2014. Woodinville, Wash.-based BDS Inc., one of the major promotional product fulfillment vendors for pro sports and major corporations, is producing some of the Tigers’ bobbleheads this year. The team schedules its figurine giveaways before the trade deadline in late July to avoid having to decide what to do with 10,000 bobbleheads of a player dealt to another team. Last season, 2.9 million bobbleheads were given away over 108 dates by 29 of baseball’s 30 teams, according to Sports Business Journal’s annual promotional giveaway analysis published in November. The Boston Red Sox were the lone team to not give away a bobblehead in 2013. The Los Angeles Dodgers handed out 560,000 bobbleheads in 11 games last year, SBJ said. Nine of those games were on weeknights, and SBJ’s analysis showed that Tuesday night attendance increased 19 percent to 50,552 on bobblehead nights versus non-giveaway Tuesdays.

Bobble-history Bobbleheads first popped up in the 1960s and were made from papier-mâché. Some were terracotta in the 1970s and 1980s. Modern bobbles are cold-cast ceramic, polyresin or polystone. Sports industry analysts say the modern baseball bobblehead trend can be traced to the San Francisco Giants giving away 35,000 Willie Mays bobbles in 1999. They were manufactured overseas and distributed by Alexander Global Promotions. The firm has done work for Detroit’s four pro teams. It’s not doing any this year for the Tigers. “It’s a known product which will generate higher attendance for a team,” said Malcolm Alexander. His firm moves up to 75,000 bobbles a week for teams. Psychologically, fans consider a bobblehead a fair trade — they bought a ticket, and got a perceived value of coming out ahead with the figure, Alexander said. “You’ve got the personality of the player, and there are not too many other products that capture

that,” he said. “You’ve got a crossdemographic appeal to the piece. The cute factor helps it to do that.” Also helpful is that there are always new candidates for bobbleheads. “The teams keep them reasonably fresh in the rotation. You’ve got an endless supply going into the future. There’s a lot to market,” Alexander said. There was a bubble of bobble interest in 1980s, when they had what Alexander said was the “cherubic boy” look. “It wasn’t really until we started using the material they’re made in today that they took off,” he said. The ability of the manufacturing process to capture a more accurate likeness from a more malleable material, with higher-quality painting, has made them desirable. Alexander’s bobbleheads are made from polystone, which contains calcium carbonate to give it weight. Polyresin bobbles are lighter-weight. The firm this season did four bobbles for the Detroit Red Wings.

Other promotions Items that fans can wear, such as hats and T-shirts, are the most popular giveaways after bobbleheads, Bayless said. The Tigers expect a big turnout on June 30 — a Monday evening game against the Oakland Athletics — because they’re giving away 20,000 replica road jerseys commemorating the 1984 World Series-winning team. A similar promotion in September 2009 for the team’s 25th anniversary saw fans fighting at the turnstiles for the jerseys, so the Tigers decided to double the number handed out this year. “The line went around Comerica Park down to Grand Circus Park,” Bayless said. The Tigers in 2014 have 32 planned item giveaways, two fewer than the previous season. The items include posters, gloves, mini-bats, DVDs, calendars, hats, tote bags, Fatheads, photo frames, replica jerseys, tumblers, figurines, wristbands, mouse pads, lunchboxes, sandwich cases and magnet schedules. Twenty four of the items have a sponsor. Eighty percent of MLB giveaways last year were sponsored, Sports Business Journal said, an increase of 2 percent from 2012. The vinyl logo and player-image stickers from Detroit-based Fathead Inc. were among the “wall hangings” category that saw giveaway dates increase 15 percent across MLB last year, Sports Business Journal said. Twenty three teams gave such items away last season over 92 games. Among the Tigers’ promotional events scheduled are 16 fireworks shows, career days for students, tributes to Jackie Robinson and the Negro Leagues, Polish-American night, Star Wars and Motown and country music nights, Christmas in July, and ¡Fiesta Tigres! honoring Latin and Hispanic players. Event promotions, such as fireworks nights, were up 6 percent in 2013 versus 2012 and 10 percent compared to 2011, SBJ reported. Bill Shea: (313) 446-1626, bshea@crain.com. Twitter: @bill_shea19

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March 31, 2014

CRAIN’S DETROIT BUSINESS

RUMBLINGS Mike Rogers replacements are lining up .S. Rep. Mike Rogers shocked the political world Friday with the announcement he was retiring from Congress to host a national radio show syndicated by Cumulus Media next year. Congratulations came quickly as did news reports about who might want to reRogers place him. On the Republican side, those names include his older brother, state Rep. Bill Rogers, R-Brighton, who is term-limited; former Senate Majority Leader Mike Bishop; State Sen. Joe Hune, R-Hamburg; and former state GOP Chairman Saul Anuzis. On the Democratic side, former state representative and Ingham County Clerk Barb Byrum is considering a run, as is former state Rep. Mark Meadows and current state Rep. Sam Singh, D-East Lansing. Another possible: Lansing Mayor Virg Bernero.

The D beckons bowls Those hankering for a Japanese noodle bowl will soon have an option from Jacques Driscoll, the owner of Corktown’s instant classic Green Dot Stables. Driscoll plans a Japanese fusion restaurant called Johnny’s Noodle King. The 40-seat restaurant is at 2601 Fort St., near Cork-

town in the shadow of the Ambassador Bridge. Driscoll has a lot of work to do, and about $325,000 to spend, to get the restaurant in shape for its planned June opening. Driscoll is still working on the menu, which will feature traditional Japanese noodle soup as well as some interesting variations. “I am obsessed with noodles, it’s my favorite food,” Driscoll said. “Detroit doesn’t have anything like this.” What’s with the name? “The old restaurant was called Johnny’s Ham King. I wanted to keep the heritage of the building,” he said. “We won’t be completely Japanese. Having Johnny’s in the title gives us a little leeway.”

The place for punch? If you’re more interested in getting your artisanal punch bowl on, in the downtown Detroit development known as The Z, a bar and restaurant called Punch Bowl Social is eyeing a lease, real estate sources say. The Z comprises a new 10story parking garage and 34,000 square feet of retail and restaurant space. While Dan Gilbert’s Bedrock Real Estate and Punch Bowl declined to comment on any lease deal the Denver-based dining, entertainment, craft beer and cocktails complex may be negotiating, the restaurant’s business partners said they are definitely interested in Detroit.

WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 22-28

“There’s no secret about why we would want to come ... it’s a great American story we want to be part of,” said CEO Robert Thompson. Punch Bowl Social combines high-end comfort food and craft drinks with ping pong, bowling and video games. “We try to emphasize the local market when we come into a city,” Thompson said. “The Michigan-area breweries will get first stab at draft lines.”

Brogan pens again When author Mike Brogan was writing his mystery/ suspense novel G8, he had personal experience to draw from. When he worked as a creative director in London in the 1980s for Campbell-Ewald, two bombs went off less than 100 feet from his family’s flat. In his latest novel, a federal agent is called to Brussels to head security for the U.S. president and other world leaders attending the G8 summit. The twist: The agent learns an assassin targeting world leaders is the same man who killed his wife. In his acknowledgements, Brogan gives a nod to the late Elmore Leonard, who advised him to “spend a lot of time with the bad guys.” G8 is Brogan’s fourth novel. It is published by Lighthouse Publishing and is available at selected bookstores, Amazon.com and atlasbooksdistribution.com.

BITS & PIECES 䡲 John Jamian, executive

director of the Detroit/ Wayne County Port Authority, earned the designation of Certified Port Executive through a program of MacDonnell Group. The program was created for Canadian maritime personnel and has expanded to the U.S.

BEST FROM THE BLOGS READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS

Baseball biz: Don’t be mad at Max More than rivets, still riveting

“

Conflicting statements, and a rare press release disclosing in-house financial business, have some critics saying the Tigers are trying to paint pitcher Max Scherzer for fans and media as greedy.

”

Bill Shea’s “Shea’s Stadium” blog on the business of sports is at www.crainsdetroit.com/sheasstadium

“

From the smallest metal stamper to the largest automaker, manufacturers are in transformation. That’s why Crain’s Detroit Business is launching its newest e-newsletter covering the region’s manufacturing industry.

”

Dustin Walsh’s “Shifting Gears” blog can be found at www.crainsdetroit.com/walsh

Doner wins Meijer media biz outhfield-based advertising agency Doner Partners LLC said it signed a deal to handle media planning and buying work for Walkerbased grocery chain Meijer Inc. No financial details were disclosed.

ON THE MOVE 䡲 Paula Silver, former vice president of communications for Detroit-based Quicken Loans Inc., left the company for a position at Federal-Mogul Corp. Silver, 53, is now vice president of communications and investor relations for the Southfield-based automotive supplier. 䡲 Inergy Automotive Systems LLC named John Dunn, president of Auburn Hillsbased Brose North America Inc., as president and CEO of its Troy-based Americas division effective April 21. Dunn, 47, will replace CEO Mark Sullivan, who will become COO of France-based Inergy. 䡲 St. Frances Cabrini Clinic, Detroit, named Kelly Herron, project manager for the Early Childhood Investment Corp. in Lansing, as executive director effective April 7. Herron, 43, will replace Sister Mary Ellen Howard, who plans to retire. 䡲 The YMCA of Metropolitan Detroit named Scott Landry, its executive vice president for strategic development, as president and CEO. Landry, 56, succeeds Reid Thebault, who is retiring May 9.

COMPANY NEWS 䡲 Powertrain supplier

BorgWarner Inc. is expanding its Auburn Hills technical center, backed by a $3.2 million Michigan Business Development Program performance-based grant and city property tax abatements. 䡲 An $8.6 million industrial renovation and construction project at Brass Aluminum Forging Enterprises LLC in Ferndale was approved for $718,000 in city tax-increment financing. 䡲 Ann Arbor-based NanoBio Corp. signed a licensing agreement with a subsidiary of New Jerseybased pharmaceutical Merck & Co. to help develop two vaccines to fight respiratory syncytial virus and an intranasal flu vaccine. Terms were not released. 䡲 MedHub Inc., an Ann Arbor-based IT company, added seven academic medical center clients nationally and will hire workers.

䡲 A federal judge granted, in part, Denver-based Atmosphere Hospitality Management Services Inc.’s request for a preliminary injunction to allow it to continue to operate the Adoba Dearborn Detroit while a lawsuit continues over contract disputes with hotel owner Royal Realties LLC. 䡲 Farmington Hills companies Illuminating Concepts Inc. and Lumecon LLC will demonstrate advanced lighting in downtown Royal Oak and at the Detroit Zoo, in the DTE Energy Co. E-Challenge contest. 䡲 Schneider’s Appliance, Owosso, became the seventh franchise location operated by Warren-based Art Van Furniture. 䡲 Detroit-based Henry Ford Health System selected Grand Rapids-based Michigan Health Connect as its health information exchange provider. 䡲 The Detroit Tigers signed Miguel Cabrera to an eight-year, $248 million contract extension that will keep him in Detroit through age 40 — making him the highest-paid player in baseball history. 䡲 The Detroit Lions signed former Baltimore Ravens safety James Ihedigbo to a $3.1 million, twoyear contract, AP reported.

OTHER NEWS 䡲 The Michigan Strategic Fund approved $6 million for demolition of Detroitowned Joe Louis Arena. Meanwhile, Olympia Entertainment will pay the city nearly $10 million to settle unanswered questions about revenue from TV broadcast rights and unpaid taxes and fees from the Detroit Red Wings’ occupancy of JLA since 2010. 䡲 The Local Emergency Financial Assistance Loan Board approved a $120 million loan from Barclays for Detroit to use for infrastructure improvements. 䡲 The vacancy rate in choice downtown Detroit office buildings fell from 19.2 percent in 2012 to 11.5 percent last year, said the Detroit Skyline Review, issued by the Detroit office of Jones Lang LaSalle. 䡲 Detroit’s water and sewer bonds were dropped five levels to CCC from BBby Standard & Poor’s — its fifth-lowest grade — citing a possible default. 䡲 Oakland Community College was to close on the vacant North Park Plaza building in Southfield for $2.5 million. OCC bought the building out of foreclosure from Evanston, Ill.-based First Bank & Trust. 䡲 The Detroit Economic Growth Corp. issued a request for proposals to transform

the former Tiger Stadium site into retail, residential and office space, and said nonprofit youth sports organization Detroit PAL would build a headquarters and maintain much of the site for youth baseball. 䡲 The 2013 Technology Industry Report from Troybased Automation Alley shows the Detroit region had the highest concentration of tech jobs in the Midwest and second to Silicon Valley. 䡲 The health care fraud prosecution of Rochester Hills physician Farid Fata drew national spotlight when the U.S. Senate Special Committee on Aging took testimony on the case during its hearing on efforts to combat Medicare fraud. 䡲 Michigan’s seasonally adjusted unemployment rate fell a tenth of a percentage point in February to 7.7 percent after a halfpoint drop the month before, the state Department of Technology, Management and Budget said. 䡲 Comerica Bank’s Michigan economic activity index fell for the third month in January, dropping 1.6 points to a level of 125.6. 䡲 Michigan Democrats accused Republican Gov. Rick Snyder’s administration of protecting his cousin’s furniture company — DBI Business Interiors — from a proposed cut in a state contract, AP reported. Snyder denied the charges. 䡲 U.S. Attorney General Eric Holder extended federal recognition to the marriages of about 300 same-sex couples that took place in Michigan before a federal appeals court put those unions on hold, AP reported. 䡲 Gov. Rick Snyder signed bills that remove four judgeships from Wayne County Circuit Court and one each from Detroit and Saginaw district courts, and add two judgeships in Macomb County Circuit Court and one in Oakland County Circuit Court — plus one seat each in Kent County Circuit Court and district courts in Van Buren and Kent counties, AP reported. 䡲 The Michigan Democratic Party said former President Bill Clinton will speak at the annual JeffersonJackson dinner April 26 at Cobo Center, AP reported.

OBITUARIES 䡲 Kenneth Schwark,

founder of Schwark Furniture in Macomb County, died March 23. He was 89. 䡲 Ralph Wilson, who owned the Buffalo Bills since the team’s founding in 1960 and was the National Football League’s longesttenured owner, died March 25 at his Grosse Pointe Shores home. He was 95.

2014

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