Crain's Detroit Business, May 26, 2014 issue by Crain's Detroit Business

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www.crainsdetroit.com Vol. 30, No. 21

MAY 26 – JUNE 1, 2014

$2 a copy; $59 a year

Page 3 Henry Ford to study what kind of care patients prefer

Haven’s new haven: A ‘one-stop shop’ for services Chase: $100M Detroit investment is on its way

Compuware CEO sees company split in FY ’15

Campbell Ewald wins extension of up to $85M of Navy work

High-margin biz on one side; fastgrowing on other BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

Inside

What’s growing in Eastern Market? Condos, Page 5

This Just In IncWell invests $250,000 in trade schools recruiter

NEWSPAPER

Birmingham-based IncWell LP, a venture capital fund founded last year by Tom LaSorda, the former CEO of Chrysler LLC, will announce Monday that it has closed on its 10th deal, investing $250,000 in Royal Oak-based Career Now LLC. Career Now helps recruit students to trade schools. It was launched three years ago to get a pipeline of students for schools that train commercial drivers and has branched out to cosmetology, medical assistants and culinary arts. Normally, IncWell funds startups or very early-stage companies but saw this as a good exception to the rule, according to managing director Simon Boag. He said Career Now is profitable. “We’re really excited about what they are doing,” he said. — Tom Henderson

By this time next year, Detroit-based Compuware Corp. will have been split into two separate public companies, if things play out the way President and CEO Bob Paul thinks they will. At a quarterly conference call with analysts after the markets closed Thursday, Paul said he was considering a split. He was more definite in a follow-up interview with Crain’s on Friday, saying he plans to have the company Paul broken into two by the end of fiscal year 2015, which is next March 31. The new, as-yet-unnamed company would run the mainframe support business that has been the core of Compuware since it was founded in 1973. Compuware (Nasdaq: CPWR) will continue its focus on its fast-growing applications performance management (APM) business, which helps large companies monitor the performance, and diagnose problems, of its

COURTESY OF LOWE CAMPBELL EWALD

Lowe Campbell Ewald has had the U.S. Navy’s recruiting advertising contract since 2000, but that’s up for review.

BY BILL SHEA CRAIN’S DETROIT BUSINESS

A year from now, Compuware’s core business of mainframe support may have been spun off into a separate company.

See Compuware, Page 18

The U.S. Navy has awarded the Detroit-based advertising agency Lowe Campbell Ewald a short-term contract extension worth up to $85 million for a year of recruiting marketing work. LCE has had the Navy’s recruiting advertising contract since 2000, but the deal is up for a mandated review after the agency’s last defense of it, in 2009. The award last week is a bridge contract aimed at ensuring the Navy has recruiting advertising in front of the public until a decision is made later this year on the longterm deal. “We want to make sure we don’t have any gaps,” said Cmdr. Wendy Snyder, public affairs officer for the Millington, Tenn.-based Navy Recruiting Command. The long-term contract will be awarded before January, and the See Navy, Page 21

WIKIPEDIA

25 years reshuffle names, industries on public company list BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

In business, 25 years is an eternity. Industries change. Industries are born. Industries die. Iconic brands get swallowed up in M&A and restructuring deals. A review of the segment shifts, market reaction and business strategy moves by the big public companies in Southeast Michigan over a quarter-century reveals how dramatically the ros-

ter has evolved. Many companies were taken private, were acquired or went bankrupt — or sometimes have gone through more than one of these business life cycles. Think Chrysler, Arbor Drugs Inc. and Kmart Corp. Still others were fledgling upstarts or weren’t even an idea in a business plan when Crain’s began these reports in 1989. Fewer banks are on the list of top public companies these days, and it’s populated by a stronger showing of auto com-

panies — including seven of the big suppliers in town that went public since 1989 and have grown their business despite the recent downturn. Prime examples are Lear Corp., Visteon Corp. and American Axle & Manufacturing Holdings Inc. “The changes in the list show how business is totally dynamic,” said Rick David, COO of Chicago-based UHY Advisors Inc. Only eight of the 25 companies on the See List, Page 20

MORE ZEROS AND IPOS After several silent years, more companies are jumping back into the IPO market, Page 11 Crain’s list: Southeast Michigan publicly traded companies, Pages 13-14

I-69 Auto Suppliers Forum What can you do today to stay ahead of the curve? AT T O R N E Y S AT L AW

XXX

July 15 (see page 2)

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CRAIN’S DETROIT BUSINESS

MICHIGAN BRIEFS Mary Free Bed in GR to become teaching hospital for MSU Mary Free Bed Rehabilitation Hospital will become a research and teaching hospital under an agreement with Michigan State University, MiBiz reported. Leaders for Mary Free Bed and MSU’s College of Human Medicine say the relationship enables the two to jointly recruit researchers in rehabilitative care, opens access to greater research funding and could lead to improvements in best practices for treating patients and the development of new treatments. The announcement comes as Mary Free Bed undergoes a major expansion on its campus southeast of downtown Grand Rapids and experiences strong volume growth through a statewide care network.

Steelcase to produce furniture tailored to the taciturn Fast Company magazine reports that Susan Cain, author of Quiet: The Power of Introverts in a World That Can’t Stop Talking, is working with Grand Rapids-based furniture manufacturer Steelcase Inc. to introduce a series of work space products tailored to introverts. Fast Company quotes Cain as saying that there’s a “myth of what a team player is — introverts want to do great work for the greater good, but they need a place to have

Italian supplier Brembo accelerates Mich. brake biz The Italian automotive supplier Brembo SpA announced last week the $115 million expansion of its brake component plant in Homer, about 35 miles southeast of Battle Creek. Brembo — which makes brakes for Ferrari, Porsche and Formula One race cars — is developing a major presence in North America. The Homer plant now can produce up to 12.5 million brake discs and 400,000 calipers and corner modules annually, up from 10 million discs and 300,000 calipers and corner modules last year. In an interview with Automotive News, company executives predicted that North America will become Brembo’s biggest global market this year, as uninterrupted thought.” Translation for fellow introverts: They won’t leave us alone.

MICH-CELLANEOUS

Timothy Stoepker, the attorney at the center of Meijer Inc.’s campaign finance scandal in Northern Michigan, was cleared of wrongdoing after the state Attorney Discipline Board dismissed a complaint, MLive.com reported. Stoepker was accused of lying during a 2007 deposition about the role that Walkerbased Meijer played in a failed recall effort of Acme Township leaders who opposed its store there. The Right Place Inc., the Grand Rapids area’s economic development organization, last week an-

European markets continue to recover from stagnation. In North America, Brembo does considerable business with Chrysler Group LLC — its biggest customer in the region — as well as Ford Motor Co. and General Motors Co., along with traditional European customers such as Germany’s luxury brands. Brembo began manufacturing disc brakes in the U.S. after buying the Hayes-Lemmerz discs division, which included the Homer plant. The plant has undergone several expansions since then. The combined 440,000-square-foot plant employs more than 450. It has 47 processing lines and 12 painting lines.

nounced three projects expected to bring 171 jobs and $6.8 million in investment to West Michigan. A report released last week by Oxfam International, a relief and development organization, said Battle Creek-based Kellogg Co. has one of the worst records among the biggest food and beverage companies in addressing climate change, the Grand Rapids Business Journal reported. But the publication DiversityInc. ranks Kellogg No. 31 on its list of the “Top 50 Companies for Diversity.” While some state growers have voted to pay more assessments on their crops to promote their industry, Michigan’s corn producers rejected a proposal to raise their assessment from 1 cent a bushel to 2 cents to generate revenue for re-

search, education and marketing, The Associated Press reported. Grand Rapids-based Warner Norcross & Judd LLP has opened an office in Kalamazoo, the Grand Rapids Business Journal reported. Grand Rapids-based Crystal Flash purchased the home heat division of Brenner Oil Group, a Holland fuel distributor, MLive.com reported. It is the eighth acquisition for the fuel distributor since 2012. The latest census estimate says

Flint’s population has fallen below 100,000 for the first time since the 1920s, MLive reported. Plans are in the works to build an agricultural museum in Blissfield, about 55 miles southwest of Detroit, The Daily Telegram of Adrian reported. An Ionia County Circuit Court jury found Marti Schrauben, the former owner of funeral homes in the county, guilty in a case that accused him of creating false death certificates and stealing about $500,000. MLive.com reports that Taylor and Brad Vannatter of Traverse City plan to open several “charity-based restaurants” in the Grand Rapids area this year. Brad Vannatter, who owns eight Fantasy Unlimited adult toy shops, plans to call the new venture The Bigger Meaning Restaurant. It’s probably expecting too much to expect the bar to feature a drink called “The Double Entendre.” Find business news from around the state at crainsdetroit .com/crainsmichiganbusiness. Sign up for the Crain’s Michigan Morning e-newsletter at crainsdetroit.com/emailsignup.

CORRECTION A story on Page 21 of the May 19 issue about the Renaissance Venture

Capital Fund inaccurately said the McGregor Fund is part of Wayne State University. It is an independent foundation.

n 15 k In nter ly toc Ce Juoms nce C re at nfe o C

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CRAIN’S DETROIT BUSINESS

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Study’s goal: What do patients want? Henry Ford seeks to learn how people prefer to be cared for BY JAY GREENE CRAIN’S DETROIT BUSINESS

Traditional health care delivery starts with a patient complaint or injury, a medical evaluation and then a treatment plan. But research just underway at Henry Ford Health System in Detroit could lead to more patient or family involvement before a physician recommends treatment.

“There is a lot of work out there saying patients should be partners with physicians and make decisions together for their health care, but some patients don’t want to be partners. They want the physician to tell them what to do,” said Christine Cole Johnson, new director of Henry Ford’s Center for Patient-Centered Outcomes Research. On the other hand, Johnson said, a growing number of patients

want to make their own treatment decisions or work with physicians to develop a customized plan that fits their needs. “We need to figure out ways Johnson to help physicians find out what patients want, and give them care that way,” said Johnson, an epidemiologist who also is chairwoman of the system’s department of public health sciences.

Johnson said one of the main practical goals of the Henry Ford research will be to provide physicians, advanced practice nurses and other providers with information on how to discover patient preferences. These preferences need to be identified on the level that the patient wants to be involved in their care. Created by a five-year, $5 million grant from the federal Agency for Healthcare Research and Quality, Henry Ford’s new patient outcomes center will study ways to improve patient interactions in See Study, Page 19

Inside

News about B Spot, other eating spots, Page 4

Company index These companies have significant mention in this week’s Crain’s Detroit Business: Alchemists Collective . . . . . . . . . . . . . . . . . . . . . . 10 Ally Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 AutoWeb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 B Spot Burgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 BAE Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Bedrock Real Estate Services . . . . . . . . . . . . . . . . 10 Big Rock Chophouse . . . . . . . . . . . . . . . . . . . . . . . . 4 Blue Cross Blue Shield of Michigan . . . . . . . . . . . . 15 Career Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Center for Patient-Centered Outcomes Research . . . 3 Chrysler Group . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 City Living Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Compuware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Conway MacKenzie . . . . . . . . . . . . . . . . . . . . . . . . . 7 Covisint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 18 Detroit Land Bank Authority . . . . . . . . . . . . . . . . . 22 Dickinson Wright . . . . . . . . . . . . . . . . . . . . . . . . . 11 Diversified Holdings . . . . . . . . . . . . . . . . . . . . . . . 12 Donnelly Penman & Partners . . . . . . . . . . . . . . . . 20 Educational Achievement Authority . . . . . . . . . . . . 16

COURTESY OF HAVEN INC.

Haven Inc.’s $8 million shelter complex in Pontiac, scheduled to break ground in June, will have more beds for victims of domestic violence.

EnvisionTEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Esperion Therapeutics . . . . . . . . . . . . . . . . . . . . . 11 FD Lofts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

A ‘one-stop shop’ for Haven

Federal-Mogul . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 General Dynamics Land Systems . . . . . . . . . . . . . . . 6 General Motors . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Griffin Claw Brewing . . . . . . . . . . . . . . . . . . . . . . . . 4 Haven . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Henry Ford Health System . . . . . . . . . . . . . . . . . . . . 3

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS

Haven Inc. plans to break ground on an $8 million shelter complex in Pontiac in June. The new site will expand the number of beds in its emergency shelter for victims of domestic violence and sexual abuse and provide space to bring other supportive services on-site. It will also pull back the curtain of secrecy around the shelter’s location for the first time in Haven’s

Pontiac domestic violence shelter plans multiple services; construction in June 30-year history. The complex at Telegraph Road and Vanguard Drive will be highly visible but built with safety in mind, Haven President and CEO Beth Morrison said. “All of the decisions made, from design to where the building will

sit on the property and the doors and windows, are around ... how to make sure the site is safe for everyone who comes there.” Domestic violence shelters around the country have increasingly gone to public locations, Morrison said.

“It’s really hard with modern technology to be hidden anymore with GPS and Google maps,” she said. “The other part is that I think now the community is Morrison more ready to ... (address) domestic violence, which See Haven, Page 22

Honigman Miller Schwartz and Cohn . . . . . . . . . . . 11 Huron Valley State Bank . . . . . . . . . . . . . . . . . . . . 11 IncWell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Invest Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Loomis Styles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Lotus Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Lowe Campbell Ewald . . . . . . . . . . . . . . . . . . . . . . . 1 New Economy Initiative . . . . . . . . . . . . . . . . . . . . . 22 ProNAi Therapeutics . . . . . . . . . . . . . . . . . . . . . . . 12 Quicken Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Robinson Capital . . . . . . . . . . . . . . . . . . . . . . . . . 20 Talmer Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . 11 TechTown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Together Health Network . . . . . . . . . . . . . . . . . . . 15 Turning Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 University of Michigan . . . . . . . . . . . . . . . . . . . . . 18 Urban Life Development . . . . . . . . . . . . . . . . . . . . . 5 Vernier Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chase on $100M investment: ‘Money will be flowing soon’ BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

J.P. Morgan Chase & Co. plans to finish loan documents in the next few weeks for the $40 million in below-market-rate money it will put into commercial and industrial development in Detroit, as part of its $100 million economic investment plan for the city. The money will be divided between Detroit-based Invest Detroit,

which is affiliated with Business Leaders for Michigan, and Arlington, Va.-based Capital Impact Partners. Both are certified by the U.S. Treasury as community development financial institutions, which targets markets underserved by traditional financial institutions. Each organization will also get a $5 million grant from the Chase Foundation to augment staffing. “We didn’t want to be in a position of giving them a bunch of

money and they didn’t have the staff to disperse it,” said Peter Scher, who as executive vice president and head of corporate responsibility for Chase will be the executive managing the five-year program, which was announced to much fanfare last week. “Money will be flowing soon. We want to get this money out into the community as soon as possible,” said Scher, who oversees government relations and philan-

thropy for the nation’s largest bank. He is also chairman of the Chase Foundation, which will be writing checks for just over half of the $100 million. While the money for Invest Detroit and Capital Impact will come from New York City-based Chase Bank and not the foundation, the loans are well below market rate, according to David Blaskiewicz,

Wolfgang Puck Fine Dining Group . . . . . . . . . . . . . . 4

Department index BANKRUPTCIES . . . . . . . . . . . . . . . . . . 6 BUSINESS DIARY . . . . . . . . . . . . . . . . 17 CALENDAR . . . . . . . . . . . . . . . . . . . . 17 CAPITOL BRIEFINGS. . . . . . . . . . . . . . 16 CLASSIFIED ADS . . . . . . . . . . . . . . . . 18 KEITH CRAIN . . . . . . . . . . . . . . . . . . . . 8 LETTERS . . . . . . . . . . . . . . . . . . . . . . . 8 MARY KRAMER . . . . . . . . . . . . . . . . . . 9

See Chase, Page 22

OPINION . . . . . . . . . . . . . . . . . . . . . . . 8 OTHER VOICES . . . . . . . . . . . . . . . . . . 8

THIS WEEK @ WWW.CRAINSDETROIT.COM

The spirit moves them Five women are mixing it up to give vodka a Detroit flavor. Read more about the Our/Detroit distillery at crainsdetroit.com ANJANA SCHROEDER/CDB

PEOPLE . . . . . . . . . . . . . . . . . . . . . . 17 RUMBLINGS . . . . . . . . . . . . . . . . . . . 23 WEEK ON THE WEB . . . . . . . . . . . . . . 23

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B Spot to open in Royal Oak; restaurants name chefs; Griffin Claw makes changes BY ANJANA SCHROEDER SPECIAL TO CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS

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While Iron Chef Michael Symonâ&#x20AC;&#x2122;s B Spot Burgers was set to open in Rochester Hills on Saturday, plans for a second metro Detroit location are already in the works. General Manager Frank Ritz told Crainâ&#x20AC;&#x2122;s that the lease has been signed for a downtown Royal Oak location; construction is expected to start this summer, with an opening scheduled for mid- to late fall. Meanwhile, the Rochester Hills B Spot Burgers, which Symon has called a casual version of his Roast restaurant at the Westin Book Cadillac Detroit, was to open Saturday in the Village of Rochester Hills outdoor shopping center at Symon 176 N. Adams Road. The restaurant seats 100, including the bar and patio, and does not take reservations. The burger menu includes the Yo! Burger, which won best burger at SoBe in 2010, 2011 and 2012, with fried salami, capicola, hot peppers, shasha sauce and provolone cheese; and the Fat Doug, topped with coleslaw, pastrami, stadium mustard and Swiss cheese for $8.99. Hours are 11:30 a.m.-10:30 p.m. Monday through Thursday, 11:30 a.m.-11 p.m. Friday and Saturday, and 11:30 a.m.-9 p.m. Sunday.

vate dining facility, The Reserve, and all off-site catering, along with a team of 30 that he will train and manage. His cooking philosophy focuses on natural, Fitchett seasonal, local and healthy ingredients, according to a statement from the restaurant. Fitchett, 34, started in the business washing dishes and making toast at Johnsonâ&#x20AC;&#x2122;s Family Restaurant in Canton Township, where he grew up, before earning his culinary degree from Schoolcraft College.

Wolfgang Puck restaurants have new executive chef In other chef news, Wolfgang Puck Steak and Wolfgang Puck Pizzeria & Cucina have named a new executive chef.

Jacob Williamson has worked for Wolfgang Puck Fine Dining Group restaurants since 2009. He will manage purchasing, budgeting, staffing and scheduling for both restaurants at the MGM Grand Detroit. He succeeds Chef Marc Djozlija, who plans to open a restaurant this Williamson summer called Wright & Co. in the Wright Kay building at Woodward and John R in Detroit. Williamson, a Dallas native, attended the French Culinary Institute in New York, where he also served as the head line cook at Vong by Jean-Georges Vongerichten. Before coming here, he was sous chef at The Source in Washington, D.C. Anjana Schroeder: aschroeder@crain.com. Twitter: @anjanaschroeder

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While vodka and gin, made inhouse, are now on the drink menu at Griffin Claw Brewing Co., there is something different in the works for the space where the Birmingham restaurant had planned a vodka bar. Griffin Claw spokesman Scott LePage said a planned vodka bar will now be the home of a to-be-determined number of beer kettles that will nearly double beer production. The Birmingham taproom, biergarten, brewing and distributing facility opened in April 2013. Within the 12,000-square-foot brewery, at 575 S. Eton St., is a distillery for making vodka, gin, rye, whiskey, bourbon and absinthe; all operations are managed by Dan Rogers, the head brewer and director of brewing operations. Retail release of the spirits is in the works and should be available within four months, said LePage.

New executive chef at Big Rock Chophouse Over at Griffin Clawâ&#x20AC;&#x2122;s sibling restaurant, Big Rock Chophouse, a new executive chef is focusing on local, seasonal ingredients. Matthew Fitchett, who most recently worked as executive chef at CafĂŠ Zinc, a French bistro at the H Hotel in Midland, succeeds executive chef Brian Henson, who is now working for the Detroit Golf Club. Fitchett will be in charge of operations at the chophouse, its pri-

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Eastern Market apartments turn condo; sale market called strong BY KIRK PINHO

Investors pay up to $2 million for Library St. office building

CRAIN’S DETROIT BUSINESS

Robert Heide is betting that a $1 million conversion of a historic former Detroit Fire Department training facility and maintenance garage in the Eastern Market area from apartments into loft-style condominiums will be a hot product on the city’s residential real estate market. Open houses of the 30-unit FD Lofts for potential buyers begin Saturday. Among the improvements on the units, located at 3434 Russell St. just south of Mack Avenue, are stainless steel appliances, polished and sanded concrete floors, new sink fixtures and full-size washers and dryers, said Brian Giles, managing broker and co-developer of FD Lofts. Units include a 523-square-foot studio for $124,800; a one-bedroom unit with 1,199 square feet for $199,800; and a two-bedroom, twobathroom unit with 1,827 square feet and a private outdoor terrace for $329,800. An existing parking lot with 23 spaces will also be expanded to 60 spots, Heide said. Total investment in the project was $5 million, which came from state and federal historic tax credits, brownfield tax credits, equity and a bank loan, said Heide, the owner of Urban Life Development LLC and Yorkshire Construction Co. in Eastern Market. The condo market in and around downtown is nowhere near as large as the apartment market, according to data from Washington, D.C.-based real estate information service CoStar Group Inc. There are just 466 condo units in downtown, Midtown and the Eastern Market district compared to 8,050 apartment units, according to CoStar. Both the condo and apartment markets have occupancy rates in the high 90s. Austin Black II, president of City Living Detroit, a real estate brokerage firm, said demand for for-sale housing is outpacing the supply. “I think a lot of developers don’t really understand how strong the

BY KIRK PINHO CRAIN’S DETROIT BUSINESS

ROBERT HEIDE

The historic former Detroit Fire Department training facility and maintenance garage in Eastern Market is being converted from apartments to condos. Developer Robert Heide said he expects all of the units to sell by the end of the year.

for-sale market is,” Black said. “It’s the first for-sale (housing) product in Eastern Market, and the timing is great because of all the activity going on there.” Heide, who bought the building in 2002 from the city, said the plan was always to convert the apartments into condos. “We are seeing people want to make that commitment to purchase in the city,” Heide said. “Mortgage lenders are lending for buyers again, and the progressive banks are financing projects here.” He said he expects all the units to sell by the end of the year. Black thinks that’s likely. “There is a good market for the entry level, the moderately priced and the very high-end units,” Black said. “We need a lot more developers, and I think doing smaller

Lotus Bancorp shareholders keep members of board despite lawsuit A shareholder revolt fizzled out Thursday at the annual meeting of Novi-based Lotus Bancorp Inc. Emails had been circulating, urging shareholders to vote against the re-election of President Neal Searle and former Chairman Jitendra Patel to the board. About 57 percent of shares were voted, and of that, only 9.7 percent voted against their re-election, according to one of the dissident shareholders who had been urging a “no” vote, who asked not to be named. The action grew out of an ongoing lawsuit in Oakland County Circuit Court that alleges that racist attitudes toward Asian Indians by Searle and bank CFO Richard Bauer resulted in two customers of

the bank being treated unfairly. At the heart of the case are emails sent by Bauer and Searle in 2010. In one, Bauer refers to bank board members as “chimps,” and in another, he said: “I will leave you with this sage advice from General Custer and most Pakistanis: The only good Indian is a dead Indian.” The bank was founded in 2007 to serve the needs of the local Asian Indian business community. Most of those who invested in the bank were of Indian descent and most of its board members are Indian. Patel was targeted by dissident shareholders because he declined to fire the two when he was chairman of the board and defended them in an article in Crain’s. — Tom Henderson

projects at different price points is a good thing.” Open houses will be Saturdays from 9 a.m. to 2 p.m.; 11 a.m. to 4 p.m. on Sundays; and 1 p.m. to 6 p.m. Tuesdays. Kirk Pinho: (313) 446-0412, kpinho@crain.com. Twitter: @kirkpinhoCDB

A 15,000-square-foot office building on Library Street in Detroit’s central business district has sold to a group of investors that includes Paul Huth, president and owner of Detroit-based Huth Lynett. Huth said the group paid between $1.6 million and $2 million for the four-story building, which had been on the market for about five months. The asking price was $1.95 million, according to Washington, D.C.-based real estate information service CoStar Group Inc. The building, at 1260 Library at the corner of East Grand River Avenue and just northwest of the new garage The Z, was constructed in 1926 and renovated in 2011, according to CoStar. “Everything is brand-new,” Huth said. “It’s probably one of the nicest buildings I’ve seen in the city.” It was sold on May 6 by Vernier Holdings LLC, an entity registered to Detroit-based developer Michael Curis, according to CoStar. The first floor is retail space with the florist Blumz and the Library Street Collective art gallery as tenants. The 4,000-square-foot second floor is vacant loft/office space, according to a marketing brochure by Detroit-based Klugman Commercial Properties LLC, the real estate company doing

COSTAR GROUP INC.

A four-story, 15,000-square-foot office building in Detroit’s central business district has sold to a group of investors.

the leasing on the building. Curis leases the third and fourth floors. No brokerage firms were involved in the sale, Huth said. The Library Street building is the second that Huth and his investment partners, who he said are “nonlocal” but declined to name, have purchased downtown in the last year. They purchased the 18,500square-foot building at the northwest corner of West Congress Street and Cass Avenue in April 2013 for about $1 million, Huth said. Kirk Pinho: (313) 446-0412, kpinho@crain.com. Twitter: @kirkpinhoCD

In Memory of our Leader and Mentor

Jerome L. Schostak 1933 - 2014

For over 60 years, Jerry’s visionary leadership, innovation, integrity and passion for excellence have influenced and inspired all who knew him. His example of extraordinary generosity spans generations. While helping others, he has made a lasting impression on our community and in the lives of so many individuals. We will continue to honor the legacy that Jerry created for the Schostak Family Enterprises. Jerry, we’ll miss you deeply.

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GDLS to decide this week on court challenge to AMPV bidding BY CHAD HALCOM CRAIN’S DETROIT BUSINESS

General Dynamics Land Systems will make a last-minute judgment call this week on whether to let the bidding process go forward on the U.S. Army’s proposed Armored Multi-Purpose Vehicle or put up a challenge to it in court. The Sterling Heights-based mak-

er of tanks, armored personnel transports and other military ground vehicles and components filed a protest in February regarding that vehicle, a proposed replacement for the Army’s massive and aging fleet of M113 tracked personnel vehicles. The U.S. Army Materiel Command in Alabama denied that protest in March, and the company has said

it would decide whether the courts were an appropriate option before the bidding deadline this Wednesday. Pete Keating, vice president of communications at GDLS, said the matter was still pending late last week. “It’s under review, and we know we’re not going to make any decision until after the Memorial Day holiday,” he said.

“Right now, all options are still on the table.” The AMPV 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, industry experts have estimated. Tacom will receive bids until

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May 28 and expects to make a decision on them in early 2015. General Dynamics and BAE Systems Inc., which maintains its Heavy Brigade Combat Team business unit in Sterling Heights, are expected to submit bids on the AMPV program. But GDLS has contended the bid selection process is stacked in favor of BAE, which produced the M113. Other prime contractors, including Navistar Defense, Lockheed Martin Corp. and Raytheon Co., attended conferences by the Army on AMPV and had shown interest in the contract. But Lockheed and Navistar told Crain’s last week they’ve reviewed the vehicle specifications and now expect they will pass on bidding for AMPV. Representatives at Oshkosh and Raytheon did not return phone calls. BAE has said that the AMPV solicitation has been two years in coming and that the Army has made several adjustments based on industry feedback to allow “the broadest number of competitive offerings possible” on AMPV. The M113, built by BAE and discontinued in 2007, first entered production in the 1960s. Chad Halcom: (313) 446-6796, chalcom@crain.com. Twitter: @chadhalcom

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The following businesses filed for protection in U.S. Bankruptcy Court in Detroit May 16-23. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. A&F Minimart Inc., 46555 Van Dyke Ave., Shelby Township, voluntary Chapter 11. Assets and liabilities not available. Review Systems Inc., 3260 Coolidge Highway, Floor 2, Berkley, voluntary Chapter 11. Assets: $371,523.71; liabilities: $528,361.62. — Bridget Vis

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There’s no faster construction

Fed-Mogul to rename aftermarket unit, promote quality of products BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS

Federal-Mogul Holdings Corp. is looking to take back the aftermarket through a new branding and education campaign. The Southfield-based automotive parts supplier is renaming its aftermarket division Federal-Mogul Motorparts and hiring traveling technical staff to inform customers about quality differences in the aftermarket. Daniel Ninivaggi, CEO of the aftermarket division and co-CEO of the holdings company, said FederalMogul brands Moog, Fel-Pro, Champion, Wagner, ANCO and Ferodo have fallen victim to poorly made Chinese parts sold at bigbox auto parts stores. “The aftermarket has seen an increase in poor Ninivaggi quality, nonbrand parts, especially in the last five years,” Ninivaggi said. “We, the industry, haven’t done a good job telling the public about our parts, about the quality and safety differences.” Federal-Mogul hopes to secure a larger portion of the growing U.S. aftermarket business. The U.S. automotive aftermarket is forecast to grow on an annual rate of 3.4 percent through 2017, according to a joint review by the Automotive Aftermarket Suppliers Association and the Auto Care Association. Total aftermarket sales are projected to grow from $238.4 billion in 2013 to $273.4 billion in 2017, according to the group. Fred Hubacker, managing director of Birmingham-based turnaround firm Conway Mackenzie Inc., said the rebranding is the right strategy for the company, but it comes down to execution. “The aftermarket business, in general, is strong, and it’s a problem that they haven’t participated in that growth,” he said. “The question remains of whether the customer is concerned with price or brand and quality, but if they want to improve the margins, they need to convince people there’s a difference.” The restructuring of the division will also include a new technical education program for customers. Federal-Mogul plans to hire 30 technicians from metro Detroit who will travel the U.S. to educate installers and sales outlets on the company’s products. The group will be hired and trained over the next three to six months. “We used to train installers, but as the AutoZones and O’Reillys took over, they began to train them. When we lost that connection, customers began converting to privatelabel, cheap products,” Ninivaggi said. “There’s no easy way for consumers to tell which parts are higher quality, so we’re going to engage the installers directly and communicate about our quality.” A new commerce and instructional website for its products will be completed in the next 12 months, Ninivaggi said.

The move coincides with FederalMogul’s plan to open two 500,000square-foot distribution centers in Southern California and New York, which was announced in an earnings call earlier this month. Shares of Federal-Mogul (NYSE: FDML) dropped last month after disappointing earnings in the first quarter, falling as much as 12 percent. The supplier reported firstquarter net income of $40 million, or 27 cents a share, versus a loss of $34 million, or 34 cents, a year earlier, but missed analyst expectations. Aftermarket revenue increased only 0.8 percent, and its original equipment sales rose 11 percent. Its aftermarket revenue made up 43 percent of its business in 2013, compared to 48 percent in 2002, which may be a problem given the strength of the U.S. aftermarket. Ninivaggi said the push will make a meaningful difference in the aftermarket division sales. “We have lost sales, significant sales, over the last five years, because of the migration from premium to cheap products,” he said. “Our goal is to regain those sales.” The rebranding is one of many changes in recent years. For years, rumors circulated of activist investor Carl Icahn’s desire to sell his majority stake in FederalMogul (Nasdaq: FDML). In 2012, the

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company board, under Icahn’s push, split the diversified auto parts supplier in two. It appeared a calculated move to sell at least one of the businesses in the private equity feeding frenzy of the post-recession. Yet the deals never transpired. And it seems Icahn is focusing energy and capital to growing its aftermarket business into an international juggernaut with a mainline to his oversight. In February, Ninivaggi became the third co-CEO in less than two years. He replaced Kevin Freeland, who left for personal reasons, the company said in a statement. Freeland was hired in May 2013. Ninivaggi had been president and CEO of New York City-based Icahn Enterprises LP since 2010. In April, Federal-Mogul Corp. became a subsidiary of the newly formed holding company after it completed a transaction to convert stocks. The company, and its Motorparts and original-equipment divisions, is now the operating unit of the holdings company. Federal-Mogul has long struggled with profitability. It reported net income of $93 million on revenue of $6.8 billion in 2013, its first profitable year since 2010. Dustin Walsh: (313) 446-6042, dwalsh@crain.com. Twitter: @dustinpwalsh

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OPINION

OTHER VOICES Straits pipelines must be removed

Don’t let wording confuse PPT issue he Aug. 5 ballot proposal to replace the personal property tax now paid by businesses is widely supported by both business and the communities that benefit from the tax, but it still faces a hurdle to passage: How it’s worded. The issue, which will be Proposition 1 on the ballot, is written to fit the technical requirements of changing state law. But the effect is to make the average reader believe that there must ROP BALLOT WORDING be a hidden tax lurking in it Approval or disapproval of somewhere. amendatory act to reduce state Small wonder. As Lansing use tax and replace with a local correspondent Chris Gautz community stabilization share to modernize the tax system to help pointed out in his May 5 Capitol small businesses grow and Briefings, the proposal includes create jobs. the word “tax” or “taxes” eight The amendatory act adopted by times and doesn’t include the the Legislature would: Reduce the state use tax and phrase “personal property tax.” 1. replace with a local community We know that legally, cer- stabilization share of the tax for tain requirements must be met. the purpose of modernizing the But is there really no way this tax system to help small businesses grow and create proposal could have been made jobs in Michigan. clearer? 2. Require Local Community In fact, what the proposal Stabilization Authority to provide to local governments does is this: Eliminate the per- revenue dedicated for local purposes, sonal property tax, essentially a including police safety, fire local tax on business equipment, protection, and ambulance and make local governments emergency services. 3. Increase portion of state use and school districts whole in tax dedicated for aid to local lost tax revenue. school districts. The latter objective will be 4. Prohibit Authority from paid for by increased state rev- increasing taxes. enue tied to the expiration of 5. Prohibit total use tax rate from exceeding existing various corporate tax credits, constitutional 6% limitation. increasing the amount of the Should this law be approved? state use tax that is sent to local school districts and establishing a special assessment that only manufacturers receiving a PPT reduction pay. The PPT has been unpopular for a long time. Businesses don’t like it because it’s hard to figure out and it’s not charged by most nearby states. Local governments haven’t liked it because the assessments are constantly under appeal by businesses. Getting rid of it was a priority of Gov. Rick Snyder when he took office, but finding a solution took some time because the tax in some Michigan communities is a comparatively large part of the budget. The current proposal addresses the concerns of both businesses and municipalities and doesn’t raise anyone’s taxes. Let’s hope the clunky wording doesn’t get in the way.

Michigan even issued perThis week, state leaders mits to use the Great Lakes will gather for the Detroit bottomlands. EnvironmenRegional Chamber’s annutal disasters like the Exxon al conference on MackValdez oil spill in Alaska inac Island to discuss and the BP blowout in the ways to position Michigan Gulf of Mexico were far in as a national economic the future. People had leader. Just to the west, more trust in technology submerged more than 200 and corporations to profeet below the glistening tect our natural resources. waters surrounding the Jim Lively Climate change wasn’t a Mackinac Bridge, there’s a looming threat that should be at looming global crisis. Today we know more: Pipelines the top of any agenda dedicated to leak, burning oil causes climate Michigan’s economic vitality. Two 61-year-old pipelines pump- change and renewable energy is ing oil through the Straits of Mack- not only a viable alternative to fosinac pose an unthinkable risk — not sil fuels but a huge and growing only to the largest source of fresh- economic engine for the future. We don’t have to look too far for water on the planet but to Michigan’s economy. Our state has more proof of the danger. In 2010, a than 660,000 jobs and $49 billion in pipeline owned by Enbridge — the annual wages linked to using Great same Canadian company that owns Lakes water. The lakes define our the Mackinac lines — leaked 800,000 landscape, our culture and our his- gallons of tar sands oil into the Kalatory — and our tourism industry — mazoo River, despite assurances that it had effective safety precaumore than anything else. The potential for an oil spill in tions in place. It was the largest inthat delicate region is a threat our land oil spill in U.S. history. It devbusiness and political leaders astated the river. Today, four years must not ignore. Oil pipelines, and later, the cleanup continues. But it isn’t just large-scale spills their inherent risks, don’t belong that have a growing number of peoin the Great Lakes. It was a different era in 1953 ple concerned about the future of when the 29-inch pipelines were our freshwater. The National laid. That was before the state of Wildlife Federation has document-

ed dozens of leaks throughout the Midwest pipeline network, underscoring what most of us feel in our gut: Even with safety precautions, there is a real and pressing risk of a release. After all that we have learned about the risk of pipelines, the time has come to take a strong stand to keep oil out of the Great Lakes. State and federal officials must take aggressive action to minimize this risk immediately. And they should simultaneously set into motion a comprehensive plan to remove the Line 5 pipeline entirely. It may take a generation before we run our economy on cleaner energy, but in the meantime, we cannot risk an oil spill in our Great Lakes. As Gov. Rick Snyder and state and federal lawmakers relax on the Grand Hotel’s majestic porch contemplating Michigan’s future, I hope they look to the west and consider the urgency of what a pipeline leak would mean to our way of life. It’s hard to imagine any future conferences taking place on an island with oil lapping at the shores. Jim Lively is the program director for the Michigan Land Use Institute, a nonprofit organization based in Traverse City.

LETTERS Local should be trump in contracts Editor: As an active resident, voter, Rotarian, taxpayer and patriot, I am enraged. I fully recognize the importance of having a global perspective, but I also appreciate the value of local content. In Crain’s April 28 issue, the Page 1 article “Biz tied to Libya wins airport deal” describes a situation which indicates to me that the Wayne County Airport Authority has justified the validity of two of my often-used critical comments: “Forty years of experience is worth considerably more than one year’s experience, 40 times” and “Thank goodness (or God) that

I do not get all of the government that I pay for.” When we appoint or elect supposedly knowledgeable, well-informed, educated and successful people to serve on public boards and commissions, we expect them to exercise sound judgment in their decisions. Should not local or regional employers receive some recognition, since they employ local personnel, pay taxes here and otherwise support our community? If stupid decisions such as this are allowed to accumulate, what will be the effect on our efforts to reinvent Detroit

and Michigan? What about the effect on unemployment when locals lose their jobs? Awarding this contract without any regard for the local content, based only on the dollars bid, could have been done by fifthgraders. However, awarding it to an offshore entity with ties to one of our identified adversaries is ludicrous! Then raising the contract award from $129,000 to $150,000 is even more outrageous. Even fifth-graders are smarter than that. Thanks for reporting on this See Letters, Page 9

KEITH CRAIN: Gas taxes are the fairest tax for roads We need to fix our highway system. That includes our bridges and roads all over Michigan. We all know they are in terrible shape. We need money, lots of money, to fix these roads, and the existing tax system doesn’t even come close to supplying the finances required to get our roads into top shape and keep them that way. When you don’t have enough money to do the proper job, you end up putting a Band-Aid on our roads, patching them so they fail again in the next year or two, and

then we start all over again. There might not be anything more painful than fixing our highways. It’s going to disrupt our traveling for years, but we have to do it if we want to have a world-class system. The only trick is to try to figure out what’s the best way to raise money for these necessary road repairs. I think we need a big gasoline

tax for a few years until we can create our own highway trust fund, like the feds. I can’t help but think that environmentalists would be in favor of a tax on gasoline since it would encourage the use of the most fuel-efficient vehicles. It would also encourage the use of electric cars that would avoid the tax completely. And the less fuel efficient the vehicle, the more cost per mile.

It sure isn’t perfect, but at least it is the closest thing we have to a usage tax. It might be fairer if we had a system of toll roads and we taxed everyone using the roads without regard to fuel efficiency. But we don’t, so this seems to make the best and fairest sense. Electric cars get a pass, but it’s such a small number that it would be OK for the short term. Later, they might add a surcharge to the electric car registration, who knows? This issue would seem to be one

that would have great support from all of our elected officials. I cannot believe that anyone would argue Michigan roads don’t need repair! It is long past the time for discussion. It’s time for action, and we need to repair roads that will last for at least a decade. No more quick patches that are not even a good Band-Aid. It is time for legislation to get the money and start the work. It was time to start yesterday. The time is now.

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MARY KRAMER: Time to commence with bold speaking Universities are supposed to be places where ideas are tested and debated. So when did they become the litmus for “politically correct”? This commencement season has been a particularly nasty one for commencement speakers. The body count for speakers and honorary degree recipients who were officially invited and then either invitations were withdrawn or the speaker withdrew in the face of withering protests include Christine Lagarde, chief of the International Monetary Fund (Smith College), and Condoleezza Rice (Rutgers University). Brandeis University actually withdrew its invitation to bestow an honorary degree on human rights activist Ayaan Hirsi Ali because of comments she made that were perceived to be critical of Islam. Note to universities: Do a better vetting process or rally around your choices in the face of criticism. And to the invited speakers themselves: Have the guts to stand your ground. That would be the

LETTERS CONTINUED ■ From Page 8

outrageous decision. Joel Bussell West Bloomfield Township

Recalling street before blight moved in Editor: The photo in your May 5 issue of the house at 70 Thorpe St. in Pontiac shocked me (“Pontiac’s battle with blight begins with this old house,” Page 8). Thorpe Street, a picture of blight? I couldn’t believe it. I lived at 39 Thorpe St. as a young child, and my memories are of a secure, well-cared-for, middleclass neighborhood. As a preschooler, I ran down the stairs of our upstairs flat to go out to play with other kids on the sidewalk. It was so safe that my parents let me go on my own with only our cocker spaniel, Skip, to watch over me. He never left my side, and I could always be found wherever Skip waited patiently for me. If I was inside someone’s house playing, he was on the front steps. Good memories: learning to ride my bike without training wheels; scaring the neighbors trick-or-treating as a witch; watching my parents drive up the driveway with my newborn brother, Larry, who was born at Pontiac General Hospital just down the street; walking to and from Webster School by myself when I started kindergarten. We moved to Clarkston, the town where both my parents were born and raised, when I was in the second grade. I haven’t been back to Thorpe Street since, but I never lost the sense of independence I gained from the freedom I had during the happy years I spent on that friendly, quiet, prosperous, safe street. I hope it will be that way again someday. Paula Stone East Lansing

real lesson for the students: to hear a viewpoint that may not mirror their own. Closer to home, University of Michigan protestors did their best to derail the commencement speech of General Motors Co. CEO Mary Barra, who was considered a coup when she first accepted. But as the ignitionrecall mess unfolded, she — and GM — became a punching bag for a vocal minority of students who protested everything from the re-

calls to capitalism and everything between. But they were unsuccessful. Barra spoke as planned. (Media coverage note: Mitch Albom’s skewering of a student protestor hoping to use his WJR show as a platform for polemics was absolutely priceless.) Still, the most memorable of commencement speeches this year may well be the one delivered by Jill Abramson at Wake Forest University. She, like many of the students she

was addressing, was out of work — fired as the first female executive editor of The New York Times just the week before. Her speech might be something students remember because it focused on “resilience,” an attribute she would be putting to the test in coming weeks Abramson and months. I have had the privilege of serving as a commencement speaker on several occasions, including at

two universities where I earned a degree — Grand Valley State and Eastern Michigan. It is tough to write the speech because you know it’s both a.) important and b.) forgettable to the audience. I hope next year we will see a hardier stock of candidates to offer advice and hearty congratulations to the Class of ’15. 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.

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AutoWeb pay-per-click ad startup to expand in Detroit, begin hiring

Construction began last week on the 66,000-square-foot Quicken Loans Technology Center, on the site of a 38,000-square-foot industrial building in Corktown that was demolished earlier this year. Work began on the site at Rosa Parks Boulevard and Porter Street, said Detroit-based Quicken Loans Inc. When it opens in January, the building will consist of the data center with two 10,000-square-foot server rooms, and training and office space. Half of the center will be occupied by Quicken technology employees, Quicken said in a release. The other half will be available for lease. Bedrock Real Estate Services LLC, the real estate arm of Dan Gilbert’s Quicken Loans Inc., will lease the space to tenants. Jim Ketai, CEO and managing partner of Bedrock, said in a statement that the building is “a great opportunity for another top technology company to secure prime server and training space in Detroit.” Jordan Fylonenko, public relations associate for Quicken, said the number of Quicken employees in

Google Inc. and Autotrader.com. Gambino said AutoWeb may relocate its headquarters in Detroit in the future. The startup service, founded in 2013, analyzes Web traffic and adjusts advertiser costs accordingly. It also presents automotive ads only to Internet users who have engaged in automotive sales searches, such as entering a make, model and ZIP

BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS

A Miami-based automotive advertising startup is expanding in Detroit with the launch of its payper-click ad platform. AutoWeb Inc., at 2051 Rosa Parks Blvd., is hiring account managers and account executives in the city, said Angel Gambino, founder of The Alchemists Collective LLC, an economic development firm working to build business in Detroit. The new hires (a specific number wasn’t disclosed) will complement the management team it’s building in Detroit, Gambino said. AutoWeb hired longtime auGambino tomotive advertising executive Lon Bollenbacher as chief revenue officer. Bollenbacher was formerly automotive director for San Francisco-based digital marketing firm Kontera Technologies Inc. He also held sales leadership roles at Search Optics LLC, Autodata Solutions Inc., and Yahoo Inc. AutoWeb also hired Elizabeth Hanft as director of accounts. She’s a former account manager at

Construction starts on Quicken Loans tech center in Corktown

Hanft

code on a site. This narrows Web traffic for advertising, the company said. AutoWeb also targets specific ZIP codes in real time. “AutoWeb recognizes that connecting the right advertisers and consumers at the right time and in the right context is fundamental to creating a quality online experience,” Bollenbacher said in a statement. AutoWeb is designed to drive more targeted consumers and deliver high ROI, he said. The startup is funded by a $2.5 million from California-based online marketing firm Autobytel Inc. It’s expected to invest another $2.5 million at a later date.

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the building will be known closer to its completion. Troy-based Integrated Design Solutions LLC is the project architect, and Detroit-based Turner Construction Co. is in charge of construction, Fylonenko said. He declined to disclose development costs. Gilbert, the founder and chairman of Quicken and Rock Ventures LLC, bought the original building, which sat on 1.71 acres, in November for $625,000, according to Washington, D.C.-based real estate information service CoStar Group Inc. The demolished building had been owned by Gasper Fiore, owner of Boulevard and Trumbull or B&T Towing. — Kirk Pinho

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A CONVERSATION WITH

Jack Shubitowski, Huron Valley State Bank

Tales of a bank survivor

IPO

Little did Jack Shubitowski know what was in store when he left Flintbased Citizens Bank in 2007 to take over as president and CEO of Milfordbased Huron Valley State Bank. It was a boom time for community banks — a handful recently had opened in Southeast Michigan, and five more were scheduled to open in 2006. Huron Valley had opened in August 2005 and was 55 percent owned by Clarkston Financial Corp. A year later, Clarkston, under financial pressure from commercial loans gone bad, sold its share of Huron Valley. Many of the area’s community banks were in a death spiral. Crain’s reporter Tom Henderson talked with Shubitowski about what happened next. When I inherited the banking beat at Crain’s in 2005, I remember one community banker told me, “Tom, owning a community bank is a license to print money.” Those days changed fast. They sure did. We aren’t printing any. As a new bank, you weren’t saddled with a lot of bad loans. Still, it was big news when you got back in the black at the end of 2009. We’ve had four profitable years now. We’re pretty excited about that. You’ve added a second branch on M59 and consolidated your lenders into downtown Milford. Any expansion plans? No brick-and-mortar for now. We’re expanding our commercial lending. We’re doing more Small Business Administration loans. The residential lending market in Milford has bounced right back. We’re doing home equity loans again. Deposits are up 17 percent in a year. We’re at $92 million in assets and growing. We hope to hit $100 million next year when we have our 10th anniversary. Industry observers say consolidation will continue to be a theme in banking. Are you looking to either be a buyer or seller? That is a big topic of conversation. There are no immediate plans to merge. When you talk to bankers, the topic always comes up. If we continue to grow and be profitable and remain well-capitalized, we can remain independent. You have to keep shareholders happy. Any other news? We just had a strategic planning session. We’re forming a holding company. It’s a fiveor six-month process. You can take on debt on a holding-company level that looks like capital at the bank level. The holding company can have shares authorized that can be used as employee or director compensation and which can be used as currency in the event of an acquisition. There’s that A-word. We’re not looking at anything right now. Tom Henderson covers banking, finance, technology and biotechnology. Call (313) 4460337 or write thenderson @crain.com.

THE OFFERING THAT CAN RE-FUSE ... AND HAS ISTOCK PHOTO

The past few years were a dud for initial offerings. But sparks are now flying as more firms jump back into the market BY TOM HENDERSON CRAIN’S DETROIT BUSINESS

n recent years, if you were a securities lawyer specializing in initial public offerings, you worked less than the Maytag repairman who complained in those old TV commercials about never having anything to do. “The capital markets essentially shut down,” said Michael Ben, a partner at Detroit-based Honig-

man Miller Schwartz and Cohn LLP, where he is practice leader of the securities and corporate governance group. Today? Ben “It’s a good time to be in the capital markets. It’s exciting to see all the activity,” said Michael Raymond, head of the securities practice in

IPOS: 2013 BEST YEAR SINCE 2000 Last year nationally, 222 IPOs raised a total of $55 billion. Both were the highest numbers since the dot.com frenzy of 2000, when 406 companies raised $97 billion. In 2012, 128 companies raised $43 billion. IPOs are off to a slower start this year but still busy. On May 6, Alibaba Group Holdings Ltd., the huge Chinese online retailer, filed to go public in the U.S. in what probably will be the largest IPO in tech history. It is expected that once the stock is priced, it could raise $20 billion and give Alibaba a market value of between $150 billion and $250 billion.

the Troy office of Detroit-based Dickin-

son Wright PLLC. Recent and planned local IPOs include: Last September, Detroit-based Covisint Corp. (Nasdaq: COVS) spun off from Compuware Corp. (Nasdaq: CPWR) with a $64 million IPO, the first initial offering of a Detroit-area tech company since

Syntel Inc. went public in 1997.

In February, Troy-based Talmer Bancorp Inc. (Nasdaq: TLMR) raised $202

million in its IPO. In March, Esperion Therapeutics Inc. (Nasdaq: ESPR), an Ann Arborbased early-stage pharmaceutical company, raised $73 million in its IPO. It plans a secondary offering this year, based on trial results of its cholesterollowering drug. In April, Detroit-based Ally Financial Inc. (NYSE: Ally) raised $2.4 billion in its IPO, which went toward repaying the U.S. Treasury Department for bailing out the lender in 2008 during the recession. This month, Chrysler Group LLC announced it plans an IPO on the New York Stock Exchange in October. Pricing has yet to be set. See IPO, Page 12

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CRAIN’S DETROIT BUSINESS

Finance

IPO: The market for initial offerings ‘has a very strong appetite’ ■ From Page 11

EnvisionTEC Inc., a Dearbornbased business unit of Germanybased EnvisionTEC GmbH that makes 3D printers, has been reported in an industry publication to be planning an IPO in June. CEO Al Siblani declined to comment. Plymouth Township-based ProNAi Therapeutics Inc., a maker of cancer drugs, plans an IPO this year. In April, ProNAi — currently the hottest biotech or pharmaceutical company in the state — raised what is thought to be the single largest round of venture capital funding in

state history — a Series D round of $59.5 million. That followed a round of $12.5 million in January. The flurry of venture capital and the upcoming IPO are results of news that ProNAi presented in December at the annual meeting of the American Society of Hematology. ProNAi’s lead product, a molecule with the working name of PNT2258, resulted in dramatic improvement in patients with nonHodgkin lymphoma who had been unsuccessfully treated with conventional therapies. “Pharma is hot,” Raymond said.

“Energy is a hot sector, as well. And real estate is back in vogue with a number of REIT (real estate investment trust) offerings. “Overall, there is a pentup demand. The Raymond market is hot. It has a very strong appetite.” Dickinson Wright has a national securities practice. Raymond said the firm has seven offerings

in the works. He is prohibited by the U.S. Securities and Exchange Commission from discussing them in detail. Dickinson Wright also has two pending IPOs that have been publicly filed — Superior Drilling Products of Vernal, Utah, which has filed for a $30 million IPO, and Taggares Agricultural Corp. of Kennewick, Wash., which has filed for a $48 million IPO. Both are being taken public by Roth Capital Partners LLC, a Newport Beach, Calif.-based investment bank specializing in small-cap IPOs

Keep your business heading in the right direction.

Treasury Management from FirstMerit Bank When John talked to FirstMerit Bank’s Treasury Management team, his goal was to increase his company’s working capital. Together, they came up with a plan to help John effectively manage receivables, control payments, and improve his company’s overall cash ﬂow. Now John has all the tools he needs to keep his business moving in the right direction — forward.

TO L E A R N MOR E, C O N T A C T :

PJ Danhoff, Treasury Management Sales Officer, at 248-228-1706 or pj.danhoff@firstmerit.com. Follow the latest market trends @firstmerit_mkt

ﬁrstmerit.com Member FDIC 2411_FM14

and one of Raymond’s clients. Since its founding in 1984, Roth Capital has raised more than $18 billion for small-cap public companies. In April 2013, another of Raymond’s clients — Southfield-based Diversified Holdings Inc., owner of Bagger Dave’s and Buffalo Wild Wings franchises including the world’s largest BWW in downtown Detroit — raised $31.9 million in a public offering. The company first went public with a self-underwritten offering of $735,000 in 2008. Some of the pent-up demand from investors for IPOs is a low-interest environment that has them looking for ways to make more than nearzero interest on their money. Part of it is venture capital and private-equity companies that need liquidity events to return money to their limited partners. Firms didn’t want to sell portfolio companies at the bottom of the market, so during and after the recession, exits were delayed. “They held on to assets longer than they were used to,” Ben said. “Now there’s a demand to return liquidity to their LPs.” Until they do return profits to investors in previous funds, VC and PE firms can’t raise new funds. Raymond said that while in the past, companies generally needed to have revenue of at least $30 million and earnings before interest, depreciation, taxes and amortization of $10 million, an appetite now exists for IPOs of companies with $15 million in revenue and $3 million to $4 million in EBIDTA. Another reason for more IPOs is the federal JOBS Act, which allows companies to conduct a confidential submission for an IPO and test the waters before committing. “They can see if the time is right and the price is right,” Raymond said. Companies that may have been reluctant to file before are more willing now. Raymond predicts the time will be right for the next 18 months to two years. “By then, all the good product will be gone, and the market will fizzle out a bit,” he said. To help with the IPO flow, Dickinson Wright and Roth Capital will do a road show this year, beginning in Detroit and heading to Chicago, Denver and Salt Lake City. They will make presentations to company CEOs and CFOs about why the time may be right to go public. “We’re going to preach the gospel. You have to do it while the market is hot,” Raymond said. Ben said Michigan should remain a relatively hot market for IPOs for the foreseeable future. “We have a few IPOs in the pipeline,” said Ben, whose firm represented Covisint in its IPO. VC and private equity firms have stepped up their investing in companies in Ann Arbor, Detroit and Grand Rapids, Ben said. “And in coming years, those companies will create a pipeline of IPOs,” he said. “There will be continuing momentum in health care, biotech, medical devices, social media and software.” Tom Henderson: (313) 446-0337, thenderson@crain.com. Twitter: @tomhenderson2

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CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS

CRAIN'S LIST: SE MICHIGAN PUBLICLY HELD COMPANIES Ranked by 2013 revenue Rank

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

Revenue ($000,000) 2013

Revenue ($000,000) 2012

Percent change

Net income ($000,000) 2013/2012

Exchange/ Ticker symbol

Stock price 52-week high/low

General Motors Co. (12/2013)

$155,427.0

$152,256.0

2.1%

$3,770.0 $4,859.0

NYSE GM

41.85 31.13

Automobile manufacturer

(313) 556-5000; www.gm.com

Mary Barra executive VP, global product development, purchasing and supply chain

Ford Motor Co. (12/2013)

Alan Mulally B president and CEO

146,917.0

134,252.0

9.4

7,155.0 5,664.0

NYSE F

18.02 14.30

Automobile manufacturer

TRW Automotive Holdings Corp. (12/2013)

John Plant chairman, president and CEO

17,400.0

16,444.0

5.8

970.0 1,008.0

NYSE TRW

85.93 60.00

Automotive supplier

(734) 855-2600; www.trwauto.com

Delphi Automotive plc (12/2013) (248) 813-2000; www.delphi.com

Rodney O'Neal president and CEO

16,500.0

15,519.0

6.3

1,301.0 1,160.0

NYSE DLPH

70.49 47.40

Automotive supplier

Lear Corp. (12/2013)

Matthew Simoncini president and CEO

16,234.0

14,567.0

11.4

431.4 1,282.8

NYSE LEA

87.26 55.81

Automotive supplier

(248) 447-1500; www.lear.com

Penske Automotive Group Inc. (12/2013) (248) 648-2500; www.penskeautomotive.com

Roger Penske CEO

14,705.4

13,084.3

12.4

244.2 185.5

NYSE PAG

47.92 27.61

Automobile dealerships

DTE Energy Co. (12/2013)

Gerard Anderson chairman and CEO

9,600.0

8,791.0

9.2

668.0 610.0

NYSE DTE

79.45 63.38

Energy company

(800) 235-8000; www.dteenergy.com

Ally Financial Inc. (12/2013) (877) 247-2559; www.ally.com

Michael Carpenter CEO

9,577.0

9,916.0

-3.4

361.0 1,196.0

PINK GMSPZ

NA NA

Masco Corp. (12/2013)

Richard Manoogian chairman and Keith Allman president and chief Executive officer

8,173.0

7,745.0

5.5

272.0 (76.0)

NYSE MAS

23.73 18.27

Building materials

(313) 274-7400; www.masco.com

Visteon Corp. (12/2013)

Timothy Leuliette president and CEO

7,439.0

6,857.0

8.5

690.0 100.0

NYSE VC

93.51 58.02

Automotive supplier

BorgWarner Inc. (12/2013)

James Verrier president and CEO

7,436.6

7,183.2

3.5

624.3 500.9

NYSE BWA

64.23 39.21

Automotive supplier

Federal-Mogul Holdings Corp. (12/2013)

Rainer Jueckstock co-CEO, and CEO, Powertrain Division and Daniel Ninivaggi co-CEO, Federal-Mogul; and CEO, vehicle components division

6,800.0

6,664.0

2.0

41.0 (117.0)

Nasdaq FDML

23.62 8.82

Automotive supplier

CMS Energy Corp. (12/2013) (800) 477-5050; www.cmsenergy.com

John Russell president and CEO

6,566.0

6,253.0

5.0

452.0 382.0

NYSE CMS

30.53 25.74

Utility

PulteGroup Inc. (12/2013) (248) 647-2750; www.pultegroupinc.com

Richard Dugas chairman, president and CEO

5,538.6

4,659.1

18.9

2,620.1 206.1

NYSE PHM

24.17 14.23

Homebuilder

Con-way Inc. (12/2013)

Douglas Stotlar president and CEO

5,470.0

5,580.9

-2.0

99.2 104.5

NYSE CNW

46.52 36.34

Transportation

(734) 757-1444; www.con-way.com

Kelly Services Inc. (12/2013) (248) 362-4444; www.kellyservices.com

Carl Camden president and CEO

5,413.1

5,450.5

-0.7

58.9 50.1

Nasdaq KELYA

26.17 16.83

Staffing services

Meritor Inc. (9/2013) (248) 435-1000; www.meritor.com

Ivor Evans chairman, president and CEO

3,701.0

4,418.0

-16.2

(22.0) 52.0

NYSE MTOR

14.28 6.09

Commercial vehicle, heavy duty truck and defense supplier

American Axle & Manufacturing Holdings Inc.

David Dauch chairman, president and CEO

3,207.0

2,931.0

9.4

94.5 367.7

NYSE AXL

21.48 16.13

Automotive supplier

Cooper-Standard Holdings Inc. (12/2013) (248) 596-5900; www.cooperstandard.com

Jeffrey Edwards chairman, president and CEO

3,090.5

2,880.9

7.3

47.9 102.8

NYSE CPS

71.11 42.00

Automotive systems and components

Tower International Inc. (12/2013)

Mark Malcolm president and CEO

2,100.2

2,084.9

0.7

(20.3) 18.0

NYSE TOWR

30.28 16.88

Automotive supplier

(248) 675-6000; www.towerinternational.com

Domino's Pizza Inc. (12/2013) (734) 930-3030; www.dominos.com

Patrick Doyle president and CEO

1,802.2

1,678.4

7.4

143.0 112.4

NYSE DPZ

69.65 55.79

Restaurant franchisor

TriMas Corp. (12/2013)

David Wathen president and CEO

1,394.9

1,272.9

9.6

80.1 36.3

NASDAQ TRS

42.09 30.73

Manufacturing conglomerate

Universal Truckload Services Inc. (12/2013)

H.E. "Scott" Wolfe CEO

1,033.0

1,037.0

-0.4

50.6 47.7

Nasdaq UACL

34.07 22.10

Transportation and logistics

Flagstar Bancorp Inc. (12/2013)

Alessandro DiNello president and CEO

983.0

1,502.2

-34.6

267.0 68.4

NYSE FBC

22.88 12.91

Financial institution

ITC Holdings Corp. (12/2013)

Joseph Welch chairman, president and CEO

941.3

830.5

13.3

233.5 187.9

NYSE ITC

37.95 28.24

Utility - Electricity transmission

Company Fiscal year end; website

(313) 322-3000; www.ford.com

(734) 710-5000; www.visteon.com

(248) 754-9200; www.borgwarner.com

(248) 354-7700; www.federalmogul.com

(12/2012) (313) 758-2000; www.aam.com

(248) 631-5450; www.trimascorp.com

(586) 920-0100; www.goutsi.com

(248) 312-2000; www.flagstar.com

(248) 946-3000; www.itctransco.com

Top executive(s)

Type of industry

Bank holding company.

This list of publicly held companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties that have stock traded on a public exchange. 52-week highs and lows are for period ending May 20, 2014. Information was provided by the companies or from public documents. It is not a complete listing but the most comprehensive available. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. Some figures were restated due to discontinued operations. B To retire July 1, 2014. COO Mark Fields to succeed. LIST RESEARCHED BY CRAIN'S STAFF, CAMILLE PIPPEN

Continued on Next Page

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CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS

CRAIN'S LIST: SE MICHIGAN PUBLICLY HELD COMPANIES Ranked by 2013 revenue From Previous Page Rank

26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

Company Fiscal year end; website

Top executive(s)

Revenue ($000,000) 2013

Revenue ($000,000) 2012

Percent change

Net income ($000,000) 2013/2012

Exchange/ Ticker symbol

Stock price 52-week high/low

Type of industry

Syntel Inc. (12/2013)

$824.8

$723.9

13.9%

$219.7 $185.5

Nasdaq SYNT

97.23 61.52

Information technology

(248) 619-2800; www.syntelinc.com

Bharat Desai chairman; Prashant Ranade vice chairman and Nitin Rakesh CEO and president

Tecumseh Products Co. (12/2013)

James Connor president and CEO

823.6

854.7

-3.6

(37.5) 22.6

Nasdaq TECU

12.23 4.90

Compressor manufacturer

Meadowbrook Insurance Group Inc. (12/2013)

Robert Cubbin president, CEO and director

791.2

996.8

-20.6

(112.3) 11.7

NYSE MIG

8.90 5.24

Insurance company

(248) 358-1100; www.meadowbrookinsgrp.com

Taubman Centers Inc. (12/2013) (248) 258-6800; www.taubman.com

Robert Taubman chairman, president and CEO

767.8

748.0

2.6

189.4 157.8

NYSE TCO

89.46 61.43

Retail real estate investment trust

Compuware Corp. (3/2014)

Robert Paul president and CEO

720.8 B

723.9 C

-0.4

(313) 227-7300; www.compuware.com

71.6 B (17.3) C

Nasdaq CPWR

NA NA

Credit Acceptance Corp. (12/2013) (248) 353-2700; www.creditacceptance.com

Brett Roberts CEO

682.1

609.2

12.0

253.1 219.7

Nasdaq CACC

150.89 100.75

Financial institution

Gentherm Inc. (12/2013)

Daniel Coker president and CEO

662.1

555.0

19.3

33.8 24.3

Nasdaq THRM

41.58 16.52

Thermal Technology Innovator

Rofin-Sinar Technologies Inc. (9/2013)

Gunther Braun president and CEO

560.0

540.1

3.7

NA 34.5

Nasdaq RSTI

27.76 21.01

Laser-based products

(734) 455-5400; www.rofin.com

Sun Communities Inc. (12/2013) (248) 208-2500; www.suncommunities.com

Gary Shiffman president and CEO

415.2

339.6

22.3

10.6 5.0

NYSE SUI

57.78 39.53

Real estate

Talmer Bancorp Inc. (12/2013) (248) 649-2301; www.talmerbank.com

David Provost chairman, president and CEO

179.7

102.6

75.2

98.6 21.7

NASDAQ TLMR

15.42 13.05

Financial institution.

Ramco-Gershenson Properties Trust (12/2013)

Dennis Gershenson president and CEO

170.1

125.2

35.8

3.7 (0.0)

NYSE RPT

17.94 14.11

Real estate

(248) 350-9900; www.rgpt.com

Saga Communications Inc. (12/2013) (313) 886-7070; www.sagacommunications.com

Edward Christian chairman, president and CEO

129.5

130.3

-0.6

15.3 17.9

NYSE MKT SGA

55.00 38.34

Radio and TV stations

Diversified Restaurant Holdings Inc. (Bagger Dave's) (12/2013)

Michael Ansley chairman, president and CEO

108.9

77.4

40.6

0.1 0.2

NASDAQ BAGR

8.57 4.06

Restaurant

Covisint Corp. (3/2014) (313) 961-4100; www.covisint.com

Sam Inman CEO

97.1 B

90.7 B

7.1

35.7 5.6

NASDAQ COVS

NA NA

Information technology

Arotech Corp. (12/2013) (734) 761-5836; www.arotech.com

Robert Ehrlich chairman and CEO

88.6

80.1

10.6

2.3 (2.0)

Nasdaq ARTX

6.61 1.00

Defense and aerospace

InfuSystem Holdings Inc. (12/2013)

Eric Steen CEO

62.3

58.8

5.9

1.7 (1.5)

NYSE MKT INFU

3.05 1.27

Provider of ambulatory infusion pumps and associated clinical services to oncologists and their patients

Perceptron Inc. (6/2013)

Harry Rittenour president and CEO

60.9

57.4

6.1

6.2 (0.3)

Nasdaq PRCP

18.24 6.86

Process measurement tools

Federal Screw Works (6/2013)

Thomas Zurschmiede president and CEO

57.2

58.6

-2.5

0.1 (0.6)

OTC FSCR

4.40 2.19

Automotive supplier

United Bancorp Inc. (12/2013) (734) 214-3700; www.ubat.com

Robert Chapman CEO and Todd Clark president

52.9

56.2

-5.9

8.8 4.5

OTC UBMI

12.60 5.20

Financial institution

Rockwell Medical Inc. (12/2013) (248) 960-9009; www.rockwellmed.com

Rob Chioini founder, chairman, president and CEO

52.4

49.8

5.1

(48.8) (54.0)

Nasdaq RMTI

15.84 3.36

Bio-Pharma & Drug Development

Agree Realty Corp. (12/2013)

Joey Agree CEO

43.0

35.8

20.1

NA 18.6

NYSE ADC

34.25 26.58

Real estate investment trust

Detrex Corp. (12/2013)

Thomas Mark president and CEO

41.0

43.4

-5.5

2.6 7.7

OTC DTRX

35.50 25.00

Chemical products manufacturer

University Bancorp Inc. (12/2013)

Stephen Ranzini president and CEO

38.9

40.0

-2.8

1.8 1.9

OTC UNIB

8.75 2.50

Financial institution

Advanced Photonix Inc. (3/2013)

Richard Kurtz chairman and CEO

23.6

29.5

-19.8

(4.4) (2.1)

NYSE MKT API

0.87 0.40

Electronics

Aastrom Biosciences Inc. (12/2013)

Nick Colangelo president and CEO

19.0

21.0

-9.5

(15.6) (29.5)

Nasdaq ASTM

17.78 3.14

Biotechnology, regenerative medicine

(734) 585-9500; www.tecumseh.com

(248) 504-0500; www.gentherm.com

Information technology

(248) 223-9160; www.diversifiedrestaurantholdings.com

(800) 962-9656; www.infusystem.com

(734) 414-6100; www.perceptron.com

(586) 443-4200; www.federalscrewworks.com

(248) 737-4190; www.agreerealty.com

(248) 358-5800; www.detrex.com

(734) 741-5858; www.university-bank.com

(734) 864-5600; www.advancedphotonix.com

(800) 556-0311; www.aastrom.com

This list of publicly held companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties that have stock traded on a public exchange. 52-week highs and lows are for period ending May 20, 2014. Information was provided by the companies or from public documents. It is not a complete listing but the most comprehensive available. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. Some figures were restated due to discontinued operations. B Fiscal 2014. C Fiscal 2013. LIST RESEARCHED BY CRAIN'S STAFF, CAMILLE PIPPEN

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Together Health Network’s challenge: Ease antitrust fears BY JOE CARLSON AND MELANIE EVANS CRAIN NEWS SERVICE

Together Health Network — a new, clinically integrated network of doctors and hospitals in Southeast Michigan — was formed with the intention of reaching a huge swath of residents without raising the hackles of antitrust regulators. And experts say that’s possible if the new entity steps carefully. Together Health will combine hundreds of physicians’ offices and outpatient centers with two dozen hospitals owned by two large competing health systems, Warrenbased Ascension Health Michigan and Livonia-based CHE Trinity Health. Insurance plans with the network soon will be sold on the state insurance exchange, and the partners estimate that 75 percent of state residents will live within 20 minutes of an in-network provider from Together Health. It’s an interesting development in a state with a history of antitrust scrutiny in health care. Traditionally, it would be illegal for competitors such as Ascension and Trinity to jointly negotiate prices with insurers — what’s known as price-fixing. The Federal Trade Commission has declared a special focus on health care in recent years, including challenging hospital mergers and even litigating an Idaho hospital’s acquisitions of large physician practices in Nampa. But the FTC also has long allowed competing providers to coordinate prices, provided they can show that they are truly working in concert to improve care. That would include jointly buying health information technology, setting common clinical protocols across different providers and sanctioning people or entities that break the rules. “Collaboration leads to innovation,” said Patricia Maryland, president of health care operations and COO of St. Louis-based Ascension Health, parent of Ascension

Health Michigan. “There are a lot of things that we’re doing already, but we can learn” from CHE Trinity. She said the organizations were looking forward to working Maryland together on population health and coordinated care models that require sophisticated analytical infrastructure. The new group also will disseminate innovations across its service lines, including ways to address public health concerns and multiple chronic conditions in patients. “Instead of creating a financially integrated model, what we’re really trying to do is to virtually achieve the same thing using a collaborative partnership model,” said Kevin Sears, vice president for payer and product innovation at CHE Trinity. The antitrust analysis doesn’t end with integration, however. “The second question you would ask is, do you have market power?” said Douglas Ross, a partner with Davis Wright Tremaine in Seattle and the past chairman of the American Health Lawyers Association’s antitrust practice group. Market clout would be the ability to force insurance companies to contract with Together Health, which would give the network the ability to raise prices unilaterally because it’s a “must have” provider. Officials with Together Health say that won’t be an issue for them for two reasons. First, only a small number of Together Health providers overlap in geographic markets, so the removal of competition isn’t a factor. And second, the network will be “nonexclusive,” meaning the providers still will be able to negotiate contracts with insurers outside the network. “Antitrust issues arise when you have combinations of competitors

that involve a large share of a market and create concerns regarding market power. Here you don’t get past the first question,” said Detroit antitrust attorney David Ettinger of Honigman Miller Schwartz and Cohn LLP, who represents CHE Trinity. “This is pro-competitive. It offers customers better coverage.” A spokeswoman with the state attorney general’s office said an email from a reporter was the first time the office had heard of the new entity. And Together Health officials said approval from the FTC would not be needed because the new organization is not an asset merger. Meanwhile, insurers in the state are likely to watch the development closely. The state’s dominant insurer, Blue Cross Blue Shield of Michigan, commended Ascension and CHE Trinity for embracing Blue Cross’ approach improving the value of health care by emphasizing population health and care quality. “As a result of health care reform, we are seeing hospital systems coming together to collaborate on more effective ways to provide quality care at affordable costs,” said Sue Barkell, the Blues’ senior vice president of health care value. “This trend has the potential to benefit patients, consumers and businesses — and we will be watching to see what Ascension and Trinity achieve here in Michigan.” From Modern Healthcare

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Ex-Ind. gov. – a Snyder pal – to offer tips on state growth When Purdue University slightly different ways. President Mitch Daniels The first executive ortakes the stage Thursday der Daniels signed as afternoon at the Mackinac governor was to create Policy Conference, attenthe Indiana Economic Devdees can expect to hear elopment Corp. in 2005. how a state can configure The IEDC aggressiveitself for economic growth ly courted businesses and upward mobility. with tax and cash incenDaniels has some expetives in surrounding rience at that, as the forstates — including mer two-term Republican Michigan, much to the governor of Indiana. He chagrin of economic deChris Gautz left office in 2013 and velopment officials moved right away into his new job along the Indiana border. The at Purdue. IEDC put up billboards on the So as part of his keynote address roads along the Indiana-Michigan at the Detroit Regional Chamber’s an- border, encouraging businesses to nual event, Daniels said he also ex- pack up and come to Indiana. pects to discuss “And many did,” Daniels said. where higher Snyder’s approach has been to education fits focus less on poaching jobs from into that equa- other states and more on helping tion. existing businesses expand, or Daniels told what he calls economic gardening. me in an interDaniels said he and Snyder view last week have shared ideas in the past, and he will also like- said as governor he was always ly venture a few willing to share stories of success thoughts on they had. Daniels how national One he said was the biggest was policy could be more supportive of the 75-year lease of the state’s toll the same goals. road in 2006 for $3.8 billion. That Chief among them is fixing the upfront windfall funded all kinds federal immigration system, of transportation and infrastrucwhich is keeping states from hang- ture improvement projects across ing onto some of their most talent- the Hoosier state. ed international students. Gov. Rick Snyder has been beating this drum for more than a year, saying it is “dumb” for us to educate foreign students at universities in the state only to send them back to their countries after graduation, rather than stay and start businesses here. “He is quite right,” Daniels said. “That’s been my position for a long time, even before I came to Purdue.” Daniels said Purdue has between 5,000 and 6,000 international undergraduate students, which equates to about 17 percent of the student body. It is an even higher percentage on campus for its graduate programs, he said. “It’s a subject of special relevance here,” Daniels said. Of the international students on campus, about 3,000 are from China. He attributes the attraction of international students to the university’s strength in engineering, science and business. It’s one of many areas of agreement Daniels and Snyder share. The two became friends as Snyder was running for governor, Daniels said, and communicated often during the time their terms as governor overlapped. It was Snyder who invited Daniels to speak at the conference. Both men are also nerds when it comes to numbers — Snyder the CPA and Daniels, the former director of the Office of Management and Budget during President George W. Bush’s first term. Both place a huge emphasis on structurally balanced budgets, both signed right-to-work legislation and put a heavy focus on economic development, albeit in

Capitol B r i e fi ng s

Snyder doesn’t have the luxury of selling a toll road to finance the road work so desperately needed in Michigan and has instead been trying to persuade lawmakers to approve increased taxes and fees to solve the problem. Some brought up the idea of Michigan installing toll roads, but that idea has gone nowhere. Daniels said he and Snyder have stayed in touch since he left office, but whether he gave Snyder any tips on how to find money to fix the roads, he didn’t say. The pair recently spoke at an event put on by the American Enterprise Institute, where they discussed how to fix the states. “I admire him and what he’s done,” Daniels said.

Comings and goings Mario Morrow will become the director of communications for the Education Achievement Authority on June 2. Morrow is leaving his position with the state of Michigan as the state manager for community outreach. Prior to that, he served as the director of communications for the Department of Licensing and Regulatory Affairs. Chris Gautz: (517) 403-4403, cgautz@crain.com. Twitter: @chrisgautz

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CRAIN’S DETROIT BUSINESS

PEOPLE ARCHITECTURE

IN THE SPOTLIGHT

Ann

Dilcher to principal, Quinn

Evans Architects Inc., Ann Arbor, from associate and project manager.

FINANCE Lesli Matukaitis to senior vice president of corporate banking,

Dilcher

DFCU Federal Financial Credit Union, Dearborn, from vice president, business banking relationship manager, Comerica Bank, Detroit.

HEALTH CARE Marc Corriveau to director of Michigan advocacy, CHE Trinity Health, Livonia, from attorney/lobbyist, Kelley Cawthorne, Lansing. Matukaitis

MANUFACTURING

Temple

Hanley

Colleen Hanley to director, global communications, TRW Automotive Holding Corp., Livonia, from vice president, marketing, communications and government affairs, CareTech Solutions, Troy.

NONPROFITS Andre Dowell to director of programming, Sphinx Organization, Detroit, from artistic administrator and competition director. Korey Hall to vice president of government and external affairs, The

Chris Temple to general manager, RayoMar Enterprises Inc., Rochester,

Dowell Heat and Warmth Fund, Detroit, from regional manager,

from general manager, Tecla Co. Inc., Walled Lake.

Southeast Michigan Regional Office of U.S. Sen. Debbie Stabenow, Detroit.

Dürr Ecoclean Inc., Wixom, a developer of products, systems and services for technical cleaning applications in industrial production, has named Andreas Reger president and CEO. He had been president of Pollmann North America Inc., a Romeoville, Ill., Reger company that develops and produces mechatronic components and products from composite plastic materials and metal. Reger, 45, succeeds William Bell, who left the company. Reger earned a bachelor’s degree in international business administration from the University of Wiesbaden, Wiesbaden, Germany, and an MBA from Colorado State University, Fort Collins, Colo.

ing, Redico LLC, Southfield, from director of public relations, Village Green Cos., Farmington Hills

sales, SunTel Services, Troy, from vice president of sales, North America, Spectralink Corp., Clarkston.

SERVICES

TRANSPORTATION

Chris Sutton to director of sales and business development, Mae-

stro Media Print Solutions LLC, Bloomfield Hills, from senior vice president, business development, Phoenix Innovate Inc., Troy.

Sutton

TECHNOLOGY

Rushing

Shattuck

Adam Gold to vice

Michael Rushing

president, sales, iRule LLC, Detroit, from regional sales manager, Middle Atlantic Products Inc., Fairfield, N.J.

to safety and compliance manager,

Joel Van Haaften to vice president of client success, Gold Amplifinity Inc., Ann Arbor, from senior director, client services, ForeSee Results Inc., Ann Arbor.

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Jacqueline Trost to director of market-

Gary Morton to vice president of

Evans Distribution Systems, Melvindale, from human resources manager. Also, Todd Shattuck to human resources manager, from account manager, Lange Logistics, Laura Clawson. Adam Laura to director of strategic accounts, MetroGistics LLC, Auburn Hills, from manager, business development, ShipCarsNow, Omaha, Neb.

CALENDAR THURSDAY MAY 29 Stopfakes.gov Roadshow: Intellectual Property Rights Seminar Detroit. 8 a.m.-4:30 p.m. U.S. Department of Commerce Office of Intellectual Property Rights, U.S. Patent and Trademark Office, U.S. Commercial Service. Seminar on intellectual property rights; topics include obtaining and protecting IP rights in the U.S. and globally; best practices, remedies and law enforcement resources; and company and brand names, logos, websites, patents, trade secrets and designs. Wayne State University Law School, Detroit. $25. Contact: Eve Lerman, (248) 975-9605; email: eve.lerman@trade.gov; website: export.gov/michigan/tradeevents/eg _us_mi_071922.asp.

UPCOMING EVENTS Time Impact Analysis with MS Project. 8:30-10 a.m. June 3. Michigan Project Users Group. The presentation will explain the time impact analysis and

how Microsoft Project’s scheduling tool helps project managers make realistic commitments. With Tony Woodrich, vice president, Administrative Controls Management Inc. Microsoft Office, Southfield Town Center, Southfield. Free. Contact: Emily Staley, (616) 842-5454; email: emily. staley@boileaucommunications.com; website: mpug.com.

Deal Incubator. 4-6 p.m. June 3. Hertz Schram PC. Networking event for entrepreneurs and investors. Moderated by Ken Silver, partner, Hertz Schram PC. Grand Circus, Detroit. Free. Contact: Ken Silver, (248) 335-5000; email: ksilver@hertzschram.com; website: hertzschram.com.

65th Washtenaw Contractors Association Annual Business Meeting. 11 a.m.2 p.m. June 5. Includes an overview of accomplishments during the past year, plans for the coming year and election of board of directors. With Marina Roelofs, executive director of architecture, engineering and con-

struction, University of Michigan. Holiday Inn, Ann Arbor. 11 a.m.-noon meeting open to members only; noon lunch and presentation open to all. $35 members, $40 after June 2; $70 nonmembers, $80 after June 2. Contact: Gretchen Waters, (734) 662-2570; email: gwaters@wcaonline.org; website: wcaonline.org.

Reinventing Pharmacy for Better Health. 11:30 a.m.-1:30 p.m. June 5. Detroit Economic Club. With Larry Merlo, president and CEO, CVS Caremark Corp. $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) 9638547; email: info@econclub.org; website: econclub.org.

The Big M Manufacturing Convergence. 7:30 a.m.-10 p.m. June 9, 8:30 a.m.-7:30 p.m. June 10, 8:30 a.m.-6 p.m. June 11, 8:30 a.m.-2 p.m. June 12. Society of Manufacturing Engineers. Focus on the entire manufacturing

CRAIN’S HONORS 20 OF METRO DETROIT’S BRIGHTEST YOUNG STARS Join Crain’s Detroit Business 5-9 p.m. June 12 at The Garden Theater, Detroit, for 20 in their 20s, honoring 20 metro Detroiters in their 20s whose creativity and entrepreneurial spirit are contributing to a new energy in Southeast Michigan. In addition to the presentation of awards and a strolling dinner, the evening will feature “Three Takes on the City from Past and Present 20s,” moderated by Craig Fahle, host of “The Craig Fahle Show” on WDET 101.9 FM; “Reshaping Local Politics,” presented by Bryan Barnhill, chief talent officer, city of Detroit, 20s class of 2014; “What Happens After the Media Declares

Your Restaurant Will Save Detroit,” by Phil Cooley, co-owner, Slows Bar BQ, class of 2007; and “How Social Entrepreneurship Helps Detroit,” by Veronika Scott, founder and CEO, The Empowerment Plan, class of 2013. Tickets are $35 for 20s alumni, $45 for other guests and $40 each if purchased in groups of 10 or more. Preregistration closes at 5 p.m. June 9. If space is available, walk-in registration will be $55. For ticket information, call Kacey Anderson at (313) 446-0300, email her at cdbevents@crain.com or visit crainsdetroit.com/events. Join the conversation with #cdb20s.

process from design to production, including innovations that can impact the process. Cobo Center, Detroit.

Contact: Christine Longroy, (313) 4253137; email: service@sme.org; website: bigmevent.com.

BUSINESS DIARY ACQUISITIONS & MERGERS Agree Realty Corp., Farmington Hills, acquired a former TGI Friday’s restaurant in St. Augustine, Fla., that will be redeveloped for Buffalo Wild Wings. The project, pre-leased to Buffalo Wild Wings under a 15-year agreement, is expected to be completed in the fourth quarter. Website: agreerealty.com.

CONTRACTS Rubicon Genomics Inc., Ann Arbor, added three life science distributors in China — Emei Tongde Technology Development Co. Ltd., RockGene BioTech Ltd. and GeneOcean Biotech Ltd. — to expand the availability of its DNA library preparation products. Website: rubicongenomics.com.

EXPANSIONS Lane Bryant Inc., Columbus, Ohio, opened a store at the Village of Rochester Hills, 220 N. Adams Road, Rochester Hills. Telephone: (248) 3750127. Website: lanebryant.com. Paper Source Inc., Chicago, also opened a store at the mall, 196 N. Adams Road,

Rochester Hills. Telephone: (248) 3750180. Website: paper-source.com. Aubree’s Pizzeria & Grill, Ypsilanti, opened a restaurant at 21775 Pontiac Trail, South Lyon. Telephone: (248) 437-8000. Website: aubrees.com. Bazco Oil Co., New Haven, opened a new Citgo location at 13841 Ford Road, Dearborn. Telephone: (313) 581-0433. Website: bazcooil.com.

plant in Itatiba City, Brazil. Website: borgwarner.com. Meritor Wabco, Troy, and SmartDrive Systems Inc., San Diego, are developing the ProView Powered by SmartDrive performance management system to help fleets improve safety and operational efficiency through video analysis. Websites: meritorwabco .com, smartdrive.net.

MOVES

NEW SERVICES

Alteris Group LLC, training and marketing, moved its office from 29110 Inkster Road, Suite 100, to 26600 Telegraph Road, Suite 101, Southfield. Telephone: (248) 477-5560. Website: alterisgroup.com. Akervall Technologies Inc. is expanding and moved from 5643 Plymouth Road, Ann Arbor, to 1512 Woodland Drive, Saline. Telephone: (734) 4852949. Website: sisuguard.com.

Carbon Media Group LLC, Bingham Farms, a producer of digital content for outdoor enthusiasts, is offering its proprietary digital network, CarbonTV, to television viewers through Roku, a digital media player that allows viewers to stream Internet content to their televisions. Websites: carbonmedia.com, roku.com.

NEW PRODUCTS BorgWarner Inc., Auburn Hills, began producing its electronically controlled Visctronic fan drives at its new

STARTUPS Gift Baskets by Vernita, Detroit, an online store specializing in gift baskets, flowers, candles and cookie bouquets. Website: giftbasketsbyvernita.labella baskets.com.

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CRAIN’S DETROIT BUSINESS

Compuware: 2 distinct businesses require split ■ From Page 1

various software applications in real time. Paul also told Crain’s that the 80 percent stake that Compuware owns in Covisint Corp., which it spun off in an IPO last September, will be dispersed to current Compuware shareholders by mid-September. At that time, Paul said, he will step down as chairman of the board but retain a board seat. Covisint is a cloud-based data storage and sharing company that targets the auto and health care industries. It had $97.1 million in revenue for the year that ended March 31. Paul said Compuware’s institutional investors can be divided into three classes — value investors, growth investors and activist investors, and that having more stock available can help drive share price higher. Because Covisint continues to lose money as it grows the business — $35.7 million in the recent fiscal year — and the company pays no dividends, value investors likely would want to sell the stock. Because revenue is growing quickly, growth investors would want to buy. “It gets to be a pretty exciting stock when we grow revenue to several hundred million, and we can do that pretty quickly,” said Paul. As for the splitting of Compuware, Paul said the two businesses are so distinct that they deserve separate management and separate investors. The mainframe business has very high margins but continues to be a shrinking business as companies migrate to the cloud.

The APM business has low margins but is growing quickly and is expected to continue growing. For the year that ended March 31, Compuware had net income of $71.6 million on revenue of $720.8 million. Paul said that a little less than 50 percent of the revenue and nearly all of the net income came from the mainframe business. Splitting the company into two parts would, in theory, please all three categories of Compuware’s institutional investors, said Paul. The new company, with its high margins, would pay high dividends, but the share price would be stagnant. Value investors would want to hold onto the stock in the new company, said Paul. “The mainframe business generates a ton of cash,” he said. Paul said splitting off the mainframe business would position it to grow by acquiring mainframe assets from other companies. “Why not be a first mover in industry consolidation?” he asked. Growth investors would presumably want to keep their stock in Compuware, with its focus on a fast-growing segment with a potential for healthy increases in share price, and sell their stock in the mainframe business to value investors. Activist investors would include New York City-based Elliott Management Corp., which launched a takeover bid of Compuware in December 2012, then made peace with the firm this past January after getting

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board representation and seeing some of its recommendations implemented for how the company should be run. Dispersing Covisint shares to investors and splitting Compuware in two are examples of active management. One institutional investor, who asked not to be named, was very pleased Friday with Paul’s plans to disperse Covisint stock and to break Compuware into two parts. “It’s value-creating. These are the right moves,” he said. “This all bodes very well. I think everything Paul has done is very valueenhancing, and in the next few months, you’ll see more signs of it.” He estimated the mainframe business would be worth $5 a share if it were an independent company today, and the APM business would be worth $7. That total of $12 compares to Compuware’s share price at Friday’s opening of $10.34. The investor said the announcement that Compuware might be split into two might also spur Houston-based BMC Software Inc. to make a big bid for the mainframe business before it becomes independent. BMC has long been rumored as a possible Compuware suitor. “Compuware might be saying, ‘Hey, if you really want to buy the mainframe business, now’s the time to do it, before we spin it off,’ ” said the investor. The Street.com boosted Compuware from a hold to a buy after Thursday’s conference call. Tom Henderson: (313) 446-0337,then derson@crain.com. Twitter: @tomhenderson2

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General Motors Co. and the University of Michigan have agreed to extend their more than 50-year relationship with the opening of the Automotive Collaborative Research Laboratories. The division will research engine systems and advanced manufacturing, operating alongside a smart materials collaborative research laboratory that began in 2005. The agreement will run through 2017. Within the Automotive CRL, the engine systems laboratory will research more fuel-efficient engines through laser-imaging diagnostics and simulations. The advanced manufacturing facility will look to improve plant floor operations by combining assembly systems, simulations and technologies. “We are looking under every nook and cranny for efficiency,” GM spokesman Dan Flores said. The labs at the university are an extension of the company’s R&D division and do not build engines for specific vehicles or vehicle lines, he said. From Automotive News

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Study: Henry Ford research seeks better prevention methods ■ From Page 3

three areas: childhood obesity and asthma and hysterectomies. Beyond the agency grant, Johnson said Henry Ford’s center will also look at developing other research projects to aid patients and health care professionals in understanding which prevention strategies and treatments are best. Johnson said the center initially will hire two employees — a project executive and an information technology staffer — to oversee the studies. Other part-time researchers, along with physicians, nurses, home health and nursing home professionals, will assist in the projects, she said.

Collaborative effort The center also will work with a number of faith-based and community organizations to provide feedback on the studies and seek volunteers to become part of the research. The participating organizations are the Detroit-based Brightmoor Alliance, Chadsey-Condon Community Organization, Fit Foundation of America, Health Alliance Plan, Interfaith Health & Hope Coalition, Osborn Neighborhood Alliance and Southwest Solutions; Corinthian Missionary Baptist Church in Hamtramck; Gethsemane Baptist Church in Westland; and the University of Michigan. “We want to talk with the community leaders, invite them in for meals and create a pool of people

who are interested” in the pilot studies, Johnson said. Henry Ford is one of seven organizations, and the only one in Michigan, to receive the $5 million federal grants to study ways to improve women and children’s health, reduce health disparities and enhance patient outcomes. Over the past decade, physicians have become more sensitive to the wishes of patients to become more involved, said Mary Durfee, M.D., chief medical officer with Ann Arborbased IHA, a 150physician multispecialty medical group. “This movement toward Durfee more patientcentered care has been going on for seven or eight years,” Durfee said. “This is the next step (in Henry Ford’s research). Many of us put patients on various committees and get their opinions on best care approach.” Durfee said many physicians, including those at IHA who practice under the patient-centered medical home model, already try to find out patient goals for their care and collaborate on treatment plans. Patient-centered medical homes shift to primary care providers the responsibility for co-

ordinating the complete health and social care needs of their patients in a comprehensive health management model. “Patients who participate with their doctors are definitely more compliant (in their treatment plan) and have better outcomes,” she said. Denver Health, a Colorado-based integrated public health system, also has been funded by the federal agency to study ways to improve patient outcomes, said Ed Havranek, M.D., Denver Health’s director of health services research. As with Denver Health’s grant, the Henry Ford research will provide good feedback to physicians on ways to improve quality and primary care preventive services. “Most medical care doesn’t start asking patients what they want for their care,” said Havranek, a practicing cardiologist. “We should be asking patients, ‘What is important? What is meaningful to you? What do you perceive as being important from your care?’ ” Denver Health’s three pilot projects will attempt to show how to move care outside the walls of the six federally qualified health centers that the system operates, Havranek said. One study, for example, will transmit text messages to 160 prediabetic patients to remind them of proper diets. Responses from the group will be tracked and medical care closely monitored for im-

provement. “The theory is people who come to health classes once a week do better because they eat better,” Havranek said. “We have broken the instruction into text messages. We are delivering the same content as the classes.” Havranek said engaging patients in their own care is difficult because modern medical care has become very technical and is less easily understood. For example, he said, patients could choose chemotherapy to treat cancer. “Chemotherapy might prolong life, but it could diminish the quality of remaining life,” Havranek said. “Physicians focus on the former and de-emphasize the latter. Usually (chemotherapy) is the right thing to do, but that isn’t always what patients and families want.” Havranek said knowing upfront what type of conversation to have with your patient can help patients and doctors make decisions. “Most conversations between physicians and patients are vague, and very abbreviated,” he said. “It is me telling you what I want, and not eliciting values from you.”

Henry Ford pilot studies The same kind of decision tree can apply at the other end of the health spectrum with medical treatment options for children.

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Childhood obesity and asthma pose significant problems for parents and providers because children are very sensitive to peer or authority pressure, Johnson said. “Pediatricians address issue of obesity in children, but they don’t always know how to do it because it is a sensitive issue,” Johnson said. “Doctors don’t always know if parents want them to talk with their children about it, so we are trying to develop a decision aid, a paper, that helps them” to advise patients on medication and diet issues. For women facing hysterectomy surgery, Johnson said, the wide variety of methods for removing the uterus can lead to multiple options. Properly educating patients means explaining the pluses and minuses for each technique. Typically, hysterectomies are either traditional open surgery with wide-open incisions or minimally invasive procedures that include robotic or laparoscopy techniques. “Depending on the choices, they are all related to blood loss for patients and length of recovery and scarring,” said Johnson, adding: “This is all about improving outcomes to make medicine more effective — and trying to make the practice of health care more effective for patients, providers, parents and physicians.” Jay Greene: (313) 446-0325, jgreene@crain.com. Twitter: @jaybgreene

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List: New names, industries – but one familiar sector: Autos ■ From Page 1

list in 1989 are still on it. And one of them, Bloomfield Hills-based PulteGroup Inc., will come off the list when it moves its headquarters to Atlanta this year. Missing from the list in 1989? Information technology companies. Syntel Inc. now ranks 16th, with Compuware Corp. 19th. Covisint Corp., a recent spinoff from Compuware, is 10 spots away from making the list. The number of public companies in the state appears to be cyclical, too — and it’s on an up cycle, with a flurry of recent or upcoming initial public offerings by state companies following a freeze on IPOs during and after the Great Recession. “When you lose a large, publicly traded company, you lose everything that goes with it,” said David Sowerby, chief investment strategist in the Bloomfield Hills office of Loomis Sayles & Co. LP. “You lose those highly paid headSowerby quarters jobs. You lose the philanthropy.”

Revolving door of banks Just ask a seasoned bank executive in town how many iterations of business cards he or she has had over the years without technically changing employers. Twenty-five years ago, the top 25 list had seven banks. Today, all of those banks have either been merged out of existence or, in Comerica Bank’s case, moved its headquarters to Texas. But other banks have emerged. The big banks and their rankings in 1989 were National Bank of Detroit, No. 8; Comerica, No. 10; Manufacturers National Bank, No. 13; Michigan National Bank, No. 15; Standard Federal Bank, No. 20; Security Bank Corp., No. 22; and First Federal Savings and Loan, No. 25. David said it’s not just the loss of the banks that hurts the region but also the loss of their leaders and what they traditionally meant to the community. “They were always active supporters of the community at large,” he said. “They were very helpful and active, but their banks just got swallowed up.” This year, three banks make the list — and two are new public companies. Detroit-based Ally Financial Inc. — the former General Motors Acceptance Corp., which went public in April — ranks fifth with a market capitalization of $11.6 billion. Troybased Talmer Bancorp Inc., which went public in February, is No. 25 at $943 million. Flagstar Bancorp Inc. of Troy just misses the list, coming in at No. 26 with a market cap of $934 million. “The trend in bank consolidation isn’t going to change,” said John Donnelly, a managing director in the Grosse Pointe investment banking firm of Donnelly Penman & Partners. “Twenty-five years ago, my guess is there were 14,000 to 15,000 banks in the United States. It’s down to half that now, and in less than 25 years, there will be less than 7,500.” Donnelly also said that it hurts

THE CHANGING FACE OF MARKET-CAP RANKINGS 2014

1989

Market capitalization Company name on May 20 1. Ford Motor Co. $62.2 billion 2. General Motors Co. $52.6 billion 3. BorgWarner Inc. $13.5 billion 4. DTE Energy Co. $13.2 billion 5. Ally Financial Inc. $11.6 billion 6. TRW Automotive Inc. $8.8 billion 7. CMS Energy Co. $7.7 billion 8. Masco Corp. $7.4 billion 9. Pulte Group Inc. $7.1 billion 10. Lear Corp. $6.8 billion 11. ITC Holdings Corp. $5.8 billion 12. Taubman Centers Inc. $4.7 billion 13. Visteon Corp. $4.4 billion 14. Penske Automotive Group Inc. $4 billion 15. Domino’s Pizza Inc. $4 billion 16. Syntel Inc. $3.3 billion 17. Credit Acceptance Corp. $2.9 billion 18. Federal-Mogul Corp. $2.4 billion 19. Compuware Corp. $2.3 billion 20. Sun Communities Inc. $1.7 billion 21. TriMas Corp. $1.6 billion 22. Gentherm Inc. $1.4 billion 23. American Axle & Manufacturing $1.3 billion 24. Meritor Inc. $1.3 billion 25. Talmer Bancorp Inc. $943 million

Company name Market capitalization 1. General Motors Corp. $25.2 billion 2. Ford Motor Co. $23.4 billion 3. Kmart Corp. $7.6 billion 4. Chrysler Corp. $5.5 billion 5. Masco Corp. $3.6 billion 6. Detroit Edison Co. $2.8 billion 7. Consumers Power Co. $2.3 billion 8. National Bank of Detroit $2 billion 9. Sotheby’s Inc. $950.5 million 10. Tecumseh Products Inc. $800.7 million 11. Comerica Inc. $795.8 million 12. MascoTech Inc. $778.1 million 13. Kelly Services Inc. $755 million 14. Manufacturers National Bank $746.2 million 15. Handleman Co. $662.8 million 16. Michigan National Corp. $658.4 million 17. Federal-Mogul Inc. $628.3 million 18. Michigan Consolidated Gas Co. $422.9 million 19. Pulte Corp. $340.6 million 20. R.P. Scherer Corp. $301.1 million 21. Standard Federal Bank $278.2 million 22. Kaydon Corp. $246.4 million 23. Security Bank Corp. $229.7 million 24. Cross & Trecker Corp. $181.1 million 25s. JP Industries Inc. $176.9 million

Market capitaliation data courtesy of David Sowerby, Loomis Sayles & Co. LP

THE EFFECTS OF AGING Here are some facts that stand out from looking at the lists of the 25 largest public companies today and 25 years ago, as ranked by market capitalization: Only eight companies made both lists, and one of them, General Motors Co., is actually a new version of a bankrupt company, General Motors Corp. The others are Ford Motor Co., Masco Corp., DTE Inc., CMS Energy, Kelly Services Inc., Federal-Mogul Holdings Corp. and PulteGroup Inc. In 1989, General Motors Corp., Ford Motor Inc. and Chrysler Corp. were No. 1, No. 2 and No. 3, respectively, on the list of the 25 biggest public companies. There were three auto suppliers. Today, the reborn Chrysler is off the list, although planning an IPO. There are eight auto suppliers in the top 25. In addition to Chrysler and seven banks, here are the other companies from 1989 that no longer make the top 25 — Kmart Inc., now smaller and headquartered in suburban Chicago; Tecumseh Products Co., now too small; MascoTech Inc., which became part of Metaldyne LLC; Handleman Co., now defunct; Michigan Consolidated Gas, now part of DTE Energy Co.; R.P. Scherer, sold in 1989; Kaydon Corp., acquired by Sweden-based SKF late last year; Cross & Trecker Corp., sold in 1991; and J.P. Industries Inc., sold in 1990. Today, the combined market cap of the top 25 local public companies is $232.9 billion. In 1989, it was $80.6 billion. Even accounting for inflation, the cap has appreciated significantly. According to the Consumer Price Index, $1 in 1989 has the buying power of $1.91 today. — Tom Henderson the state and region that once-powerful banks are gone and that it says a lot that the biggest bank by market capitalization was founded in 2007 and was a one-branch bank as recently as 2010. Chemical Financial Corp. of Midland is the third-largest with a market cap of about $835 million. Nothing against Midland, Donnelly said, but that a relatively small bank — “a quiet, well-run community bank,” he called it — in a relatively small city in mid-Michigan is the third-largest bank in the state sums up how much the landscape has changed.

Manufacturing growth Despite all the talk over the years about the region’s need to diversify from a reliance on the auto industry, it is more dominant on the list than ever. Ten auto companies are among the 25 largest public companies as ranked by market capitalization, which is the combined worth of

outstanding shares. Ford Motor Co. is No. 1, with a market cap of $62.2 billion and General Motors Corp. No. 2 at $52.6 billion. Many suppliers on the list were in existence 25 years ago but went public since then. David said a recent surge in IPOs shows the region is also swinging back from an over-reliance on operating as a service economy. “The companies going public are productDavid based, not service-based. It’s always better to build things than to service things,” he said. “It’s great to see the action in the public markets. IPOs are a great way for dynamic companies to raise capital, and we’ve got the infrastructure here to support them.” Besides automotive, medical is a growing segment if the trends in

IPOs are any indication, analysts said. One recent IPO was by Ann Arbor-based Esperion Therapeutics Inc., a drug company. Two upcoming initial offerings involve another drug company, Plymouth Townshipbased ProNAi Therapeutics Inc., and a maker of 3D printers, Dearbornbased EnvisionTEC Inc. (See story, Page 11.)

Retail clearance rack Retail, particularly sellers of consumer-based retail outside of cars, has all but disappeared from the landscape of Michigan public companies. The number of retailers on the list has fallen from four to one: Bloomfield Hills-based Penske Automotive Group, which includes diversified holdings including automobile dealerships. Kmart, which was the third-largest public company in the state in 1989, when it was based in Troy, was sold to Sears in 2005; Troy-based Handleman Co., then No.

14, was liquidated in 2008; and Tecumseh Products Co., then No. 9, is too small to make the list today. The retail marketplace has changed even more markedly when looking statewide or at companies that were public in 1989 but not in the top 25. Other brands that have gone the way of the dodo bird: Fretter Inc., Gerber Products Co., Highland Appliance and Jacobson Stores Inc. “We used to have such a rich retail community here,” David said. “But this rich bastion is all gone.” Jim Robinson, the former CEO of Munder Capital Management who has his own Grosse Pointe-based investment firm, Robinson Capital LLC, said the loss of drugstores and department stores shows how quickly market share can shift. While at Munder, Robinson had a vested interest in some of the now-defunct retailers. “We managed Jacobson’s pension plan. Highland was also a client of ours, too,” he said. “The appliance companies just crushed it when DVDs came out. But then they got killed by Circuit City and Best Buy, and now they’re going away, too.” Robinson said the push for larger volumes and efficiencies killed many of Michigan’s retailers. But a Wal-Mart-like push for smaller margins isn’t necessarily permanent. “Things go through cycles,” he said. “Look at the beer industry. There used to be 100 brewers in Michigan. A few years ago, there were none. Now, we’re back to 100 again. In the end, consumers want value, not just cheap.” Diversified Restaurant Holdings Inc., the fast-growing, Southfield-based company that owns the largest Buffalo Wild Wings franchise in the country in downtown Detroit as well as Bagger Dave’s Legendary Burgers and Fries outlets, is taking aim at the top 25 with a ranking of No. 38. “Saplings need to become sequoias, and they do that by becoming public companies,” said Loomis Sayles’ Sowerby. “In the late 1980s, we had 140 public companies in Michigan. Today, it’s 70 or 75, and the loss of all those public companies remains a long-term challenge for the state.” Tom Henderson: (313) 446-0337, thenderson@crain.com. Twitter: @tomhenderson2

Japan supplier exec indicted in price fixing An executive at Japan’s Tokai Rika Co. — a supplier to Toyota Motor Corp. — was indicted Thursday by a federal grand jury in Detroit for conspiracy to fix prices and obstruction of justice. After Tokai Rika pleaded guilty in 2012 to a U.S. Department of Justice charge of price fixing and paid a criminal fine of $17.7 million, former Executive Managing Director Hitoshi Hirano is being charged with participating in conspiracies to fix the prices of heating control panels and having employees destroy evidence of antitrust criminal behavior, the government said in a statement. According to the indictment, Hirano met with other conspira-

tors from October 2003 to February 2010 to agree to rig bids, allocate the supply and fix prices of the panels sold to Toyota for vehicles in the United States and other countries. The charge has a maximum sentence of 10 years and a $1 million criminal fine. Besides Tokai Rika, 26 suppliers, most Japanese, have pleaded guilty or agreed to plead guilty to similar charges, totaling $2.3 billion in criminal fines. Thirty-four other supplier executives have also been charged with price fixing. Twenty-four have pleaded guilty or have agreed to plead guilty, and 22 have been sentenced to one-two years in prison. From Automotive News

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Navy: Campbell Ewald wins contract extension ■ From Page 1

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process is being managed by the naval logistics office in Philadelphia. What other agencies, if any, are seeking the Navy work hasn’t been disclosed. The RFP calls for proposals, rather than live pitches, by May 30. The bridge contract was among several announced May 19 by the U.S. Department of Defense and is worth $55.3 million for eight months, with four one-month options that boost the total to $85 million and take it through May 2015. Military advertising contracts typically are up for review every five years. The U.S. Marine Corps’ deal with New York City-based agency JWT, which dates back to 1947, is also in the mandated review process. Lowe Campbell Ewald is saying very little about the Navy situation other than it is participating in the RFP process to retain the account. “In our 14 years as Navy’s partner, we’ve experienced an incredible digital revolution and leveraged that in our innovative solutions to help Navy reach their target,” said Lowe Campbell Ewald CEO Jim Palmer in a statement. “We look forward to the opportunity to continue our partnership and help Navy reach the highly specialized skill sets needed for the future.”

The numbers

The Navy has met or exceeded its recruiting goals every year while LCE has had the marketing work, according to its data posted online. This year’s enlisted recruitment goal is 33,800. Last year, the service met its goal of 40,112 new enlisted sailors. The Navy’s current campaign, “America’s Navy — A global force for good,” was created by Campbell Ewald and launched in October 2009. More recently, the agency in April unveiled Project Architeuthis, a limited-time cryptology game on the Navy’s Cryptology and Technology Facebook page aimed at recruiting for the branch’s code-breaking arm.

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The full five-year contract will run from January 2015 through January 2016 with a series of four one-year options that extend it through January 2020. The Navy RFP didn’t list a dollar value. At one time, the full contract was worth about $500 million. The contract is for market research, account and media planning, creative, events, public relations, support and analysis of effectiveness. The marketing is for traditional advertising, such as print and broadcast, and for mobile and digital work. The Navy spent $43.7 million in measured media in 2012, according to the Ad Age Data Center. That was an 84 percent increase over 2011. One of its 26 Navy Recruiting

Districts, which employ 4,100 sailors across the country, is headquartered in Detroit. The Navy has 323,900 sailors, 185,000 civilian personnel, 289 ships and a $156 billion budget. It’s seeking $148 billion under the $600 billion Defense Authorization Act of 2015 — the Pentagon’s budget for next year — while dealing with the mandated budget reductions known as the sequester. Those cuts are supposed to begin in 2016, but they require budget planning now. Secretary of the Navy Ray Mabus last year ordered Navy marketing spending to be cut during the federal government shutdown. Lowe Campbell Ewald said it has experience dealing with federal government budget issues. Another longtime major government client has been the U.S. Postal Service, an agency in perpetual budget crisis. “As with any of our clients, our goal is to help them reach their goals most efficiently and effectively given their level of spend. We are accustomed to adapting to changes like this,” said Kelly Barnes, marketing and communications manager for the agency.

The agency Lowe Campbell Ewald had $121 million in 2013 U.S. revenue, ranking it 81st among all advertising agencies by that metric, according to data from Advertising Age. That was flat revenue versus 2012, when the agency ranked 68th-largest in the nation by revenue. The fate of the Navy contract comes amid a time for change for LCE, which has seen staffing more than halved in the past several years. The agency moved its 500 employees on Jan. 21 from Warren, where it moved in 1978 from Detroit, to a new $15 million office space built over 122,000 square feet on five floors of the old J.L. Hudson Co. warehouse attached to Detroit’s Ford Field. Corporate owner Interpublic Group of Cos. Inc. in July made the firm the U.S. hub of London-based sibling agency Lowe and Partners Worldwide. It added the Lowe to the Campbell Ewald name at that time. The Navy is among LCE’s largest clients. The largest is the $244 million Cadillac account, which it won in June as part of consortium effort called Rogue. The other agencies in Rogue are Lowe and Boston-based Hill Holliday. Lowe Campbell Ewald is managing the Cadillac account, Hill Holliday is doing the creative work, and Lowe has the digital and export work. Other major clients include OnStar, Eastern Market Corp., Alltel Wireless, Atkins Nutritionals Inc., Consumers Energy, Kaiser Permanente, LifeLock Inc., Snuggle, Unilever, USAA and Western Governors University. Bill Shea: (313) 446-1626, bshea@crain.com. Twitter: @bill_shea19

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Haven: New shelter will have more room for support services ■ From Page 3

also helps with safety concerns.” The groundbreaking for the project is set for June 18, with completion scheduled by fall 2015. It will be on 6 acres of vacant land purchased from local developer Walter Cohen in 2012 for $527,000, Morrison said. Comprising three connected buildings, the complex will total 36,000 square feet, or triple the space of Haven’s current undisclosed site in downtown Pontiac. The larger space will enable the agency to add 10 beds, giving it 55, and to consolidate its Pontiac shelter and counseling center and forensic exam sites, which now operate from leased space in Bingham Farms and Royal Oak. Haven plans to sell the current shelter after moving to the new site. Stucky-Vitale Architects Inc. in Royal Oak is architect on the project, and Rochester-based Frank Rewold and Son Inc. is construction manager. Haven has raised 80 percent of

its $5 million goal to help fund the project since launching the campaign in fall 2010. It’s also seeking $3 million in new market tax credits, Morrison said. The nonprofit, which employs 51, is operating on a $2.9 million budget for 2014, and ended 2013 with a slight surplus of about $25,000, Morrison said. She is projecting a similar surplus for fiscal 2014, which ends in September. Last year, Haven provided 12,000 people with shelter, counseling, court advocacy, forensic examinations and crisis-response services. The new shelter complex will include space so that other agencies can bring additional services onsite. The one-stop approach is one already employed by other agencies serving the homeless, veterans, seniors and the hungry. It’s been adopted by domestic and sexual violence shelters in 33 states, Haven said. A medical clinic staffed with a

nurse each from the Oakland County Health Department and Mercy Place clinic in Pontiac will be on-site to provide health assessments and blood pressure checks. Well-baby checks, immunizations and treatment for non-urgent care will also be offered. Southfield-based JVS plans to bring a job training and placement program for women to the new complex, and an attorney from Lakeshore Legal Aid will be on site to provide civil legal services, Morrison said. “This is creating a one-stop shop, bringing as many services as possible to one location so that a survivor can get multiple needs met at once as opposed to having ... to get on a bus or drive to get all of their needs met,” she said. It’s an approach that’s proven to encourage more victims to seek other supportive services and “is a best practice (as) the most efficient and cost-effective for our clients, as

well as our organization,” Morrison said. Since moving into its new shelter in Mt. Clemens last December, Turning Point has also expanded the number of services it offers by working with other agencies to provide them on-site in open meeting spaces incorporated into the renovated and expanded site. “When battered women get to us, they have been isolated; they don’t really have a lot of information about anything that is possible for them to reach out to,” said Deborah McPeek, acting CEO and director of programs. “They sit and talk to the women at the shelter ... but bringing other providers in puts a face to them, in a safe, nonjudgmental space (where) women can just get the information they need and be able to make decisions.” The wrap-around service approach makes the process of getting other help less scary for sur-

vivors, McPeek said. Like Haven, Turning Point is moving away from keeping its location and work a secret, she said. Just before opening its new shelter late last year, the agency — which is operating on a $2.5 million budget this year — hosted a public tour of the facility to show the community what it had helped fund and to highlight all of the services offered, from crisis center to counseling. Turning Point still doesn’t list the shelter’s address on its website. But the fact that the expansion on the renovated building is the newest construction in town certainly makes it more visible, she said. Because of the community’s increased involvement and knowledge of the issues around domestic violence and sexual abuse, “we’re moving toward making this less of a secret,” McPeek said. Sherri Welch: (313) 446-1694, swelch@crain.com. Twitter: @sherriwelch

Chase: Funds in $100M city investment ‘will be flowing soon’ ■ From Page 3

Invest Detroit’s president. “They’re loaning us money under what I call extremely favorable terms,” said Blaskiewicz. “Let’s just say it’s very patient money, at lower cost and at longer terms than we’d normally lend,” said Scher. In addition to the $40 million for commercial and industrial development, Chase will spend $25 million on blight-removal projects, including $5 million for the Detroit Land Bank Authority, which is assembling abandoned houses to sell at auction to those willing to bring them up to code, and $5 million for rehabilitation loans for those purchasing houses at auction. Chase will also spend $12.5 million on workforce training programs for city residents and $12.5 million on a variety of other projects, including the M-1 Rail project on Woodward Avenue and on TechTown and Bizdom to help them help entrepreneurs start companies. TechTown’s piece of the puzzle is a one-year $180,000 grant from the Chase Foundation to support a retail boot camp for would-be entrepreneurs and the expansion of its SWOT program. SWOT (Strengths, Weaknesses, Opportunities and Threats) was launched in 2012 to deliver entrepreneurial support services into Detroit neighborhoods. The program launched in Brightmoor, and a grant of $800,000 from the U.S. Department of Health and Human Services last year expanded it into the East Jefferson corridor, Grandmont Rosedale and Osborn neighborhoods. The Chase grant will expand the program into the city’s University District, named for its proximity to the University of Detroit Mercy.

The genesis Scher said the genesis for the $100 million program was in 2012, when Chase Chairman and CEO Jamie Dimon took a bus tour of the area, something he does in cities

More money to come from Chase More Chase Bank money will be flowing into Detroit than what was announced at the Garden Theater in Midtown on Wednesday, according to Peter Scher, the J.P. Morgan Chase & Co. executive who will be managing the five-year $100 million economic development program for the city. As executive vice president and head of corporate responsibility, Scher oversees government relations and philanthropy for the nation’s largest bank. He is also chairman of the Chase Foundation, which will be writing checks for more than half of the commitment. Scher said that as head of corporate responsibility, he overseas a worldwide team of about 150. Each summer, for three or four days, the team gathers in New York City. This year, though, the team will be holding its meeting in downtown Detroit in July. Scher jokingly promised Crain’s that “we’ll spend a lot of money.” — Tom Henderson where Chase has a major presence. Early last fall, when Detroit was making national headlines over its bankruptcy, Scher said Dimon called a meeting of senior executives in New York to ask for suggestions about what the bank might try doing here. “He said, ‘Go see what you can do,’ ” said Scher. Dimon then called Dan Gilbert to tell him the bank wanted to do something substantial to help development in Detroit, and executives in New York and Detroit began reaching out to local business leaders and community organizations,

including Sue Mosey, president of Midtown Detroit Inc.; Southwest Solutions; Invest Detroit; and The Kresge Foundation. After Detroit’s mayoral election last November, Chase contacted Mayor-elect Mike Duggan. Meetings with Gov. Rick Snyder and officials from the Michigan Economic Development Corp. soon followed. Interestingly enough, said Scher, a project in Detroit was anything but a done deal. If after Chase officials did their due diligence and didn’t like what they were hearing or finding, “Jamie was fully prepared for us to say, ‘No, there’s nothing we can do.’ ” Instead, said Scher, Chase executives were impressed by local officials, and particularly by the willingness of Duggan and Snyder to work collegially, something that, as a Washington, D.C., resident, Scher isn’t used to seeing from Democrats and Republicans. In all, Scher said he made six trips to Detroit and members of his New York team made 30 to 40. Blaskiewicz first found out about Chase’s interest in November from a local Chase lender, Aaron Seybert. “We already had a terrific relationship with him. He’s done a number of new-market tax credits for us,” he said. “He called me and said some senior executives were coming in from New York and would I meet with them. We had a terrific conversation about Detroit. I told them it was a great time to be here, and we all went on our separate ways.” Blaskiewicz said he got a call from someone in New York four or six weeks later, saying Chase was still thinking about doing something in Detroit, which led to a series of emails, phone calls and inperson meetings. “I can tell you exactly how many meetings I had: A lot,” Blaskiewicz said jokingly. It was only toward the end of the process that he had any idea of the scale of Chase’s intentions. “We started getting a sense of

I told (Chase’s “ Peter Scher)... ‘If they’re willing to buy an abandoned house and move into Detroit, they need a loan.’

”

Mike Duggan

the size right at the end. Someone from Chase said, ‘Let’s say, hypothetically, that if we gave you $25 million, how would you spend it?’ We put a proposal together and they said, ‘You know the market better than we do. Do it.’ ” At the luncheon last Wednesday at the Garden Theater in Midtown, where the Chase program was unveiled, Duggan told the crowd that Chase listened to local leaders before deciding how to spend its money. “They didn’t come in and say, ‘We’re from Wall Street, we know how to get things done.’ We did this together,” he said.

Loans for homes In an interview with Crain’s Thursday, Duggan pointed out one example of how Chase executives listened to people here. Scher had already recognized a real need for people who bought houses at auction to get loans to fix them up. As Scher told Crain’s, “A bank is just not going to loan you $25,000 to fix up a house you bought for $25,000. That’s not a normal loan product for a bank.” So he was willing to make such loans part of Chase’s project here. But agreeing to fund such improvements was only half the battle. Not wanting to encourage spec-

ulators and real-estate investors, Scher only wanted improvement loans to be available to first-time homebuyers. “I took him to the neighborhoods to show them what we were doing,” recounted Duggan. “I told him: ‘I don’t care if it’s a first-time buyer or a third-time buyer. If they’re willing to buy an abandoned house and move into Detroit, they need a loan.’ ” Scher changed his mind. Blaskiewicz said that what surprised him about the Chase announcement is how compartmentalized the bank kept everything through months of planning, meetings and trips to town by New York executives. “I didn’t know who was getting what until the news broke,” he said. “They partitioned it so well. Hey, I’m on the TechTown board, and I didn’t know about its grant until I read about it.” Dave Egner, executive director of the New Economy Initiative, said he didn’t know the size of the Chase program or details until news started breaking on Tuesday and was confirmed at a dinner attended by Chase officials and local business leaders that night. “Everything was highly curtained off,” he said. He said he began meeting with Chase officials about eight weeks ago and that their involvement has grown beyond the commitment of $100 million. He said the NEI is forming three new working groups in the next month or two — on how to fill the gaps in capital markets, on boosting neighborhood entrepreneurship and how to recruit more minorities and women in into development projects — and Chase representatives will be on all three. Egner also said Chase and NEI have agreed to share data they have gathered and continue to gather on how capital flows in and out of the area. Tom Henderson: (313) 446-0337, thenderson@crain.com. Twitter: @tomhenderson2

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May 26, 2014

RUMBLINGS

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WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 17-23

One Detroit Center rises on social media ne Detroit Center, the high-rise office building at 500 Woodward Ave. downtown, is on Twitter (@1DetroitCenter). And Facebook. And LinkedIn. What’s next? Snapchat? It’s part of a marketing and communications campaign for the 957,000-squarefoot, 45-story building. One Detroit Center’s accounts will be used in a variety of ways, including promoting current and future events, sharing photos of Detroit landmarks that can be seen from the building, showcasing its design elements, announcing tenant accomplishments, and promoting sporting and cultural events, according to a news release. As of Friday morning, the building’s Twitter account had 95 followers and 255 tweets. Its Facebook page had 217 “likes,” and its LinkedIn account had 32 followers. New York City-based iStar Financial Inc. is the building’s majority owner. Southfield-based Signature Associates Inc. is the property manager and leasing agent. “Using social media to engage with our tenants will be an effective, additional form of communication and is consistent with the approach other iconic buildings like the Empire State Building in New York City and The Willis Tower (formerly the Sears Tower) in Chicago are taking from a communications standpoint,” said

Greg Camia, lead executive of One Detroit Center and senior vice president of iStar Financial, in a statement. Houston-based Hines Interests LP developed the building, at the northwest corner of Larned Street and Woodward, in 1991 for $200 million. By 2007, it was just 40 percent occupied, and Hines was forced to give it back to the lender, iStar Financial. One Detroit Center is not alone in its social media star power: The Renaissance Center can be followed on Twitter at @GMRenCen.

DAC to install outdoor bronze athletic sculptures

tall pedestals and reinforced with high-density steel. Gillary said the sculptures embody the best of athletes through dramatic athletic scenes. The bronzes are a baseball triple play; the end of a 440meter race inspired by the 1976 Summer Olympics; a pivoting running back; and a female diving off the block. DAC members are raising the money for the sculptures, Gillary said, and the city of Detroit handed over control of the land along Madison Avenue, where three of the sculptures will be displayed. The diver will be displayed at the DAC’s circle drive entrance. Schomberg will come to Detroit this fall to ensure the pedestals are installed correctly, and again next April, when the statues are installed.

BITS & PIECES 䡲 Detroit Zoological Society board member Shery Cotton, along with husband David Cotton, on Thursday announced the family’s donation of $500,000 for development of a wolf habitat at the Detroit Zoo to be built this year at the facility’s southwest corner. The “Sunset at the Zoo” annual strolling supper fundraiser (detroitzoo.org/sunset) on June 13 also will benefit the wolf habitat.

The Detroit Athletic Club is commemorating the centennial of its clubhouse next year by spending $2.2 million for four bronze sculptures that will be displayed along the Madison Avenue median and the new circle drive entrance. Ted Gillary, executive manager at the DAC, said Coloradobased sculptor A. Thomas Schomberg, known for his “Rocky” statue in Philadelphia, will make the 9foot sculptures. They will COURTESY OF DETROIT ATHLETIC CLUB be displayed Bronze sculptures showing sports scenes will on 9½-foot soon be displayed by the Detroit Athletic Club.

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

Old buildings need priority

“

Historic building preservation has spurred economic growth elsewhere, and can do the same in Detroit, Stephanie Meeks, president of the National Trust for Historic Preservation, said at a Detroit Economic Club meeting.

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Kirk Pinho’s “Big City, Big Deals” blog can be found at www.crainsdetroit.com/section/blogKirkPinho

Goodwill to pop up at market

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Goodwill Industries of Greater Detroit plans to open a pop-up resale boutique at Eastern Market on June 1, operating it every other Sunday.

”

Sherri Welch’s blog on “The Business of Being Nonprofit” is at www.crainsdetroit.com/welch

Judge allows Conyers to stay on ballot judge ordered that U.S. Rep. John Conyers, who has been in Congress since 1965, be placed on the August primary ballot, AP reported. State election officials Friday declared the Detroit Democrat ineligible for the ballot because they found problems with some people who Conyers gathered signatures for him to run for another term. But a few hours later, Detroit federal Judge Matthew Leitman issued an injunction ordering that Conyers’ name be placed on the ballot.

ON THE MOVE 䡲 Michael Ford, CEO of the Ann Arbor Transportation Authority, was voted to be hired as CEO of the new Regional Transit Authority of Southeast Michigan by the transit board. 䡲 Fortech Products Inc., a Brighton-based coatings and lubricants supplier, hired Luis Madaleno as COO. He had been COO of AsiaPacific operations for Center Line-based Sodecia Corp. 䡲 Scott Monty left Dearborn-based Ford Motor Co. after six years as its strategic adviser on social media and digital activities, Automotive News reported. 䡲 State Treasurer Kevin Clinton recommended the appointment of Robert Burgess, a former supply chain director for General Motors Co.’s powertrain unit, as a consultant for Royal Oak Township, which Gov. Rick Snyder declared in March to be in a state of financial emergency.

COMPANY NEWS 䡲 DMC Surgery Hospital in Madison Heights said it will convert its emergency department into an urgent care center July 1 because emergency case volume hasn’t met expectations. 䡲 Ann Arbor Spark named Ann Arbor-based Tangent Medical Technologies its entrepreneurial company of the year; Ken Nisbet, executive director of the University of Michigan’s Office of Technology Transfer, as volunteer of the year; and Lake Trust Credit Union as business development project of the year. 䡲 Detroit Metropolitan Air-

port will receive $14.8 million from the U.S. Department of Transportation for runway improvements. 䡲 In a deal with the Metro Detroit Chevy Dealers Local Marketing Association, the Detroit Tigers began staging third-inning mascot races at Comerica Park featuring people costumed as stylized cartoon versions of classic Chevrolets. 䡲 University of Michigan regents approved construction of a $38.5 million building to house operations and maintenance for the Department of Parking & Transportation Services. 䡲 The University of Michigan Center for Entrepreneurship and Detroit-based nonprofit NextEnergy kicked off a training program to run through mid-June for entrepreneurs seeking to commercialize energy and transportation technologies, AP reported. 䡲 Walgreen Co., Deerfield, Ill., will collaborate to coordinate patient care with Livonia-based health system CHE Trinity Health, Modern Healthcare reported. 䡲 Spring Arbor University announced it will open a 10,000-square-foot campus in Southfield on Sept. 8, AP reported. 䡲 Detroit-based Wolverine Packing Co. recalled 1.8 million pounds of ground beef sold for restaurant use in Michigan and nine other states, due to possible E. coli bacteria contamination, AP reported.

OTHER NEWS 䡲 The Republican-led

Michigan House approved spending $195 million to help prevent steep cuts in Detroit retiree pensions and the sale of valuable art, linking the state with a broader deal designed to end the city’s public bankruptcy, AP reported. The House voted to prohibit the renewal of a 10-year property tax millage in Macomb, Oakland and Wayne counties that provides the Detroit Institute of Arts $23 million a year. 䡲 Americans for Prosperity, a conservative advocacy group backed by brothers Charles and David Koch, launched an effort to fight the proposed Detroit bankruptcy plan, Bloomberg reported. Meanwhile, the Michigan Department of Environmental Quality said it plans to reject Detroit Bulk Storage’s request to store piles of petroleum coke from Koch Minerals — an affiliate of the brothers’ Koch Industries Inc. — at an open riverfront site in River Rouge. 䡲 The University of Michigan’s Mary Sue Coleman is one of nine college presidents nationwide earning more than $1 million in to-

tal compensation, according to a study released by The Chronicle of Higher Education. 䡲 The Michigan Gaming Control Board suspended charity poker games at Mr. B’s Poker Room in Troy, and suspended the license of Arcadia Poker Supplier LLC, which provided tables, chips and other equipment for games there. 䡲 Victor Mercado, the water department chief for former Detroit Mayor Kwame Kilpatrick, was sentenced to eight months in a halfway house for his role in a wideranging federal corruption case, AP reported. 䡲 A scheduled May 21 online auction of Pontiac Silverdome items was delayed by Plymouth-based RJM Auctions, AP reported. 䡲 Highlighted by visits from “Star Trek” original William Shatner and cast members from TV’s “The Walking Dead,” the Motor City Comic Con drew an estimated 35,000 to 40,000 people over three days to the Suburban Collection Showplace in Novi. 䡲 Actor Denis Leary presented the Detroit Fire Department new equipment paid for by proceeds from “Burn,” a documentary film about the city’s firefighters, AP reported. Leary is a “Burn” executive producer. 䡲 U.S. Energy Secretary Ernest Moniz spoke at the Detroit Area Pre-College Engineering Program to mark the city’s progress installing energy-efficient LED streetlights, AP reported. 䡲 The Michigan Senate set the stage for a potential vote on a plan to raise $1.5 billion more a year to fix deteriorating state roads, primarily through a sizable hike in fuel taxes paid by drivers, AP reported. The chamber revised a Houseapproved transportation funding plan but stopped short of voting. 䡲 Comerica Bank’s Michigan Economic Activity Index declined in March for the fifth straight month. 䡲 The fleet of A-10 fighters and hundreds of related jobs at Selfridge Air National Guard Base in Harrison Township could be spared, after the U.S. House of Representatives passed its version of a 2015 defense bill preserving them.

OBITUARIES 䡲 General Gordon Baker Jr., a Detroit-area activist and officer in the United Auto Workers and two-time state House candidate, died May 18. He was 72. 䡲 Leonard (Len) Barnes, longtime editor and columnist for AAA Michigan Living magazine, died May 12. He was 94.

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