Crain's Detroit Business, May 25, 2015 issue by Crain's Detroit Business

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CRAIN’S Readers first for 30 Years

DETROIT BUSINESS May 25-31, 2015

Denver VC firm opens office in Ann Arbor

MGM,Lions offer fans tunnel vision

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Surrealist artist Balazs Szabo is helping a local law firm find a new home for his paintings of Detroit, Page 3

M-1 RAIL PICKS UP STEAM [LARRY PEPLIN]

Workers last week put together the tracks that will carry M-1 Rail streetcars. The line itself will bear the name of Quicken Loans Inc., after the mortgage lender bought naming rights

Midtown pioneer turns focus north 11-building buy seen as jump-start for New Center By Kirk Pinho

Quicken Loans buys M-1 naming rights Streetcar line to hire company for help on name, branding By Bill Shea bshea@crain.com

Detroit-based Quicken Loans Inc. has bought the naming rights for the M-1 Rail streetcar line currently under construction on Woodward Avenue, but the actual name is yet to be decided, project organizers said. That the online mortgage lender owned by Dan Gilbert is the naming rights buyer isn’t a surprise; Gilbert has been the $137 million streetcar project’s co-chairman (with Roger Penske) nearly since its 2008 inception. Plus, Quicken upped its financial contribution last year to make it the largest single corporate donor at $10 million. Gilbert’s footprint in

downtown Detroit continues to build. Bedrock Real Estate Services LLC has acquired more than 70 properties — mostly buildings and parking decks — in Detroit totaling more than 11 million square feet for a total investment of more than $1.7 billion. Many of those properties are along Woodward or within easy walking distance of the streetcar line. Additionally, one of Gilbert’s chief aides, Matt Cullen, is M-1 Rail’s CEO. Cullen was unavailable for comment on this story. The naming rights deal is believed to have been part of Quicken’s increased capital investment, which was originally $3 million. See QUICKEN, Page 24

kpinho@crain.com

In the late 1980s, the unofficial “Mayor of Midtown” saw the potential in the seedier areas surrounding Wayne State University . And it’s been a slow and steady process over decades to make Midtown the thriving neighborhood it is today. Now Sue Mosey, one of the pioneers of that enclave’s resurgence, is increasing her focus on the New Center area, which finally shows signs of coming into its own. Midtown De troit Inc. , of Sue Mosey: New which Mosey is Center is new center the executive diof her attention rector, purchased 11 buildings last month in New Center and envisions a catalytic, high-impact mixed-use redevelopment there that could jump-start New Center, the neighborhood just north of the reinvestment booms in Midtown and downtown.

Mosey said New Center’s promise is becoming more apparent now that the M-1 Rail project, the 3.3mile rail loop between Congress Street and Grand Boulevard in New Center, is under construction and investment will be pushed north along Woodward Avenue. Midtown Detroit, a nonprofit 501(c)(3) economic development group, purchased nearly 64,000 square feet of space along Woodward between Milwaukee Street See NEW CENTER, Page 25

A toppaints CFO paints A CFO numbers byby numbers

A desire named streetcar: Deal is almost done M-1 Rail’s long process to acquire six streetcars is near the end of the line. Inekon Trams of the Czech Republic will provide six streetcars at a total cost of $30 million, with a contract expected to be worked out in the next two to three weeks, Page 24 © Entire contents copyright 2015 by Crain Communications Inc. All rights reserved.

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Buildings at 6560 and 6565 Woodward Ave.are two of the 11 purchased last month by Midtown Detroit Inc.in the New Center area of Detroit.

[GLENN TRIEST]

As if the CFO As ifjob theofjob ofisn’t CFO hard isn’t enough, hard imagine managing the finances enough, imagine managingwhile the the assets of your areofa finances whileorganization all the assets pokeryour chiporganization in a bankruptcy And are acase. poker chip this comes after completing a millage in a larger bankruptcy case. And to pullthis outcomes of a budgetary quagmire. after completing a That’sregional the story for Robert millage to pullBowen, out of a CFO of the Detroit Institute of Arts. budgetary quagmire. And that’s why he’s the Crain’s That’s the storyone forof Robert Bowen, CFOsCFO of the year. Read his story of the Detroit Instituteand of thoseArts. of 12And other honorees andone of that’s why he’s finalists, beginning onofPage 11. the Crain’s CFOs the year. Read his story and the stories of 12 other honorees and finalists, beginning on Page 11.

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CRAIN’S DETROIT BUSINESS // May 25, 2015

MICHIGAN

BRIEFS Meijer suit: India firm drove up generic drug costs Meijer Inc. and its distribution arm, Meijer Distribution Inc. filed a class action lawsuit against the Indian generic drug manufacturer Ranbaxy Inc., MiBiz reported. The Walker-based retailer claims that Ranbaxy fraudulently worked to keep other companies’ drugs out of the marketplace, driving up costs. In the suit, filed in the U.S. District Court of Massachusetts , Meijer alleges Ranbaxy’s practices have cost it and other retailers “hundreds of millions, if not billions,” in the costs for its generic drugs. The suit demands that Ranbaxy pay damages for overcharging Meijer and the other retailers. Reuters reported that Ranbaxy has been under scrutiny from the U.S. Food and Drug Administration in recent years for its practices. In 2013, the company pleaded guilty to felony charges and agreed to pay $500 million in criminal and civil fines related to false statements it gave to the FDA and “substandard drugs.”

In other news involving Meijer, the company announced it will acquire the national specialty pharmacy Aureus Health Services. Terms of the deal, expected to close in the next few months, were not disclosed.

Alliance for Health plans to cease operations in GR The Alliance for Health , a part of the health care planning landscape in Grand Rapids for 67 years, will cease operations as soon as possible, MiBiz reported. The group cited declining membership and a lack of financial support. The alliance, with a membership that consists of health care providers, insurers and large and small employers, has for years been the only organization in the state authorized to conduct local reviews for certificate-of-need projects. Among the projects it would have reviewed is the transfer of medical services to the proposed joint venture involving Metro Health

and Community Health Systems Inc.

Whirlpool to acquire Mass.-based American Dryer Benton Harbor-based Whirlpool Corp. entered into an agreement to acquire Massachusetts-based American Dryer Corp. from Stonebridge Partners, MiBiz reported. American Dryer manufactures coin-operated, on-premise and other specialty and industrial laundry equipment. ADC operates a 300,000-square-foot plant and employs 230. Terms of the deal were not disclosed.

New Kalamazoo beer trail to promote craft brewers Think of it as a permanent pub crawl for tourists. The tourism agency Discover Kalamazoo has created a Give a Craft beer trail that will allow people to visit all 11 of Kalamazoo County’s breweries, MLive.com reported. Participants will use a “passport,” which will include information about each brewery. After acquiring stamps from all participating breweries, participants can turn it in for a stainless steel beer bottle opener. They also can stop at Bell’s Brewery Inc. ’s Comstock brewery to earn a pair of Bell’s sunglasses.

Study: GR Salvation Army center put $8M into economy The Salvation Army ’s Ray and

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Joan Kroc Corps Community Center in Grand Rapids contributed more than $8 million to the local economy, according to a study released this month, MLive.com reported. The $32 million recreation center near the southwest edge of the city was built with a gift from a $1.6 billion endowment to the Salvation Army from the estate of Joan Kroc, the widow of Ray Kroc, who built the McDonald’s fast-food empire.

MICH-CELLANEOUS 䡲 The U.S. Census Bureau said Grand Rapids added about 1,300 people in the latest population estimate, making Michigan’s secondlargest city the fastest growing among the state’s 10 largest communities, The Associated Press reported. Grand Rapids had about 193,800 people last year, up 0.7 percent. 䡲 Stan Vander Roest will become the Grand Rapids Community Foun dation’s first CFO, MiBiz reported. 䡲 Jireh Metal Products in the Grand Rapids suburb of Grandville was acquired by a group of local investors who plan to operate the metal stamping company as a Minority Business Enterprise, MiBiz reported. Jireh employs nearly 100 people and operates two plants. 䡲 Chateau Grand Traverse introduced three Wines of the Great Outdoors — Woods, Waters and Picnic — with a commitment to give about 50 percent of net profits from their sale to the Michigan Department of

INSIDE THIS ISSUE BANKRUPTCIES . . . . . . . . . . . . . . . . . . 2 CALENDAR . . . . . . . . . . . . . . . . . . . . . . . 21 CAPITOL BRIEFINGS . . . . . . . . . . . . . 10 CLASSIFIED ADS . . . . . . . . . . . . . . . . 21 CRAIN’S LiSTS . . . . . . . . . . . . . . . .19, 20 OPINION . . . . . . . . . . . . . . . . . . . . . . . . . . 8 OTHER VOICES . . . . . . . . . . . . . . . . . 8, 9 PEOPLE . . . . . . . . . . . . . . . . . . . . . . . . . . 21 RUMBLINGS . . . . . . . . . . . . . . . . . . . . 26 WEEK ON THE WEB . . . . . . . . . . . . . . 26

COMPANY INDEX: SEE PAGE 25 Natural Resources, the Traverse City Record-Eagle reported. A public vote will determine the exact use of the funds raised. 䡲 Dayton, Ohio-based I Supply Co. plans to expand near Kalamazoo, seeking to be near the intersection of U.S. 131 and I-94, MiBiz reported. The distributor of food and supplies for fast food chains such as Arby’s plans to bring more than 100 jobs to the Kalamazoo area by 2017. 䡲 A larger Port Huron welcome center designed for motorists entering the United States from Canada is now open, The Associated Press reported. The new center on I-94 replaces one razed in 2012 to make way for a freeway widening and bridge expansion project. It’s more than three times larger than its predecessor. 䡲

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CRAIN’S DETROIT BUSINESS // May 25, 2015

Denver VC firm opens A2 office Three Leaf Ventures to target investments in health care By Tom Henderson thenderson@crain.com

The Broe Group, a family office in Denver with $5 billion under management and affiliated companies around North America, has leased an office in Ann Arbor for its venture capital operation and has begun looking at investments in early-stage

health care companies here. The Broe Group and its affiliates employ more than 1,000 people and manage real estate throughout North America. One affiliate, OmniTrax Inc., is a provider of logistics services with railroad, port and terminal operations around the country, including the Great Western Railway Co.

Another affiliate is Great Western Oil & Gas Co., a large drilling operation. Its venture capital arm is called Three Leaf Ventures. “We hope to have the first term sheet signed by the end of the year. That’s being conservative. These things tend to take longer than you

think,” said Sean Kearney, who will be managing director of the Ann Arbor office. He said he will be here full time in an office in Kerrytown beginning July 1. A term sheet is VC parlance for the contract that spells out how much of a company an investor gets in exchange for capital. Kearney said he will be targeting investments in health care. “We’re

looking for technologies that leverage the smartphone to take medicine out of the hospital and into the home,” he said. “We like telemedicine, genomics and digital health care.” Kearney said Three Leaf, unlike most VC firms, is happy to invest across a broad range of a company’s growth, from seed stage to late stage. See THREE LEAF, Page 23

MGM Grand deal gives Lions fans tunnel vision Premium club is next to locker room, field entrance By Bill Shea bshea@crain.com

Detroit Lions fans with money to spend will be able to buy access this season to a new premium club at Ford Field that will be directly adjacent to the locker room and player entrance tunnel. Known as the MGM Grand Detroit Tunnel Club , the area is currently being retrofitted inside the bowels of the stadium from unfinished concrete to include bars, tables, video screens, lighting, Detroit decorations and seating alongside the ramp players use to walk to and from the locker room during games. Lions players will enter and exit their locker room through a glassed hallway that runs through the club. Steps from the ramp to the tunnel to the field will be open on one side, allowing tunnel club users to talk to players or high-five them.

The tunnel club also will have a seating area in the tunnel itself, also giving fans access to players. “It’s a lot like the courtside seats at an NBA game,” said Wade Martin, Lions vice president of corporate partnerships. The build-out is expected to cost up to $2 million. MGM Grand Detroit has signed a 10-year deal to sponsor the club, which will have an entrance next to the team store on the west end of the stadium concourse. The new club comes with a premium cost: Access will be sold by the Lions as two-ticket season packages for $19,000. That buys the two preseason home games, eight regular-season home games and any playoff games at Ford Field. Approximately 50 spots are re-

[FROM “BALAZS, THE EYE OF MUSE”]

Balazs Szabo’s 1977 painting “Belle Isle” is Charfoos & Christensen PC Partner David Christensen’s favorite of eight works.

Artist’s market Painter returns to seek buyer for collection commissioned by law firm moving from Detroit By Sherri Welch swelch@crain.com

See LIONS, Page 23

[ARTIST’S RENDERING COURTESY OF DETROIT LIONS]

In the late 1970s, when surrealist artist Balazs Szabo was in Detroit to get ideas for a series of paintings commissioned by the law firm Charfoos, Christensen and Archer PC, he visited the Detroit Salt Mine. In the mine, nearly a quarter of a mile below the city, was a glass-like chapel carved from the pristine salt walls. It was hidden, for the most part, from human view. Italian immigrants who worked in the mine early in its 105-year history worshipped in the chapel and lit candles on holy days, said the Hungarian-born Szabo. The mine became the subject of one of eight, wallsized oil paintings Szabo did for the firm — now named Charfoos & Christensen PC — nearly 40 years ago. Sometimes stories come full circle. Like the cathedral

[FROM “BALAZS, THE EYE OF MUSE”]

The “Detroit Salt Mines” was painted in 1976, one of the works commissioned by Charfoos & Christensen. made of Detroit salt, Szabo’s paintings, now hanging at the Hecker-Smiley Mansion in Detroit, have been seen by only a few people, Szabo said. With the upcoming move of the law firm, there’s an opportunity for the paintings to move to a more public venue. See ARTIST, Page 22

MUST READS of the week... A homecoming for equity lines

Mural, mural on the wall

Thirty years ago, Crain’s wrote about an emerging financial instrument called a home equity line of credit. That heroic Reagan-era wealth builder nearly vaporized in the last recession. But it’s making a comeback, as we detail in this week’s Looking Back feature, Page 4 [ISTOCK PHOTO]

More than 300 cans of spray paint later, street artist Shepard Fairey affixed his work on one 185-foot side of One Campus Martius. Read more about the art and the artist, crainsdetroit.com/mural [NATALIE BRODA/CDB]

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In Crain’s May 20, 1985, issue, local bank

LOOKING BACK officials discussed the new home equity lines of credit. The lines lost favor as the housing bubble burst, but that seems to be changing. More at crainsdetroit.com/30

Equity loans find new homes By Chad Halcom chalcom@crain.com

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The home equity line of credit went from heroic wealth-builder of the Reagan era to a player in the mortgage crisis and market collapse of 2008 — but lately it has seen a renaissance and a return to tougher lending standards. A trends report issued last fall by Irvine, Calif.-based RealtyTrac found the Detroit-Warren-Livonia metropolitan statistical area had the sixth-largest year-over-year growth of home equity credit line originations in the country, at 59 percent in the 12 months ended in June 2014. The 14,850 originations were the most since the year ended in June 2008, according to the trends report. Nationwide, banks had opened 797,865 lines of credit. The national number is still more than 75 percent below the nearly 3.3 million credit originations in the year ending June 2006, according to RealtyTrac — roughly coinciding with the peak of the housing bubble, according to data from the National Association of Realtors . Metro Detroit’s credit line originations are off 78 percent from a 2006 peak of 68,453. Demand dropped during the recession because plummeting home values meant fewer buyers had equity to borrow against. Lure to loans

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Home equity credit lines were fairly new in 1985, when Crain’s published the May 20 story “Yuppies like banking’s home equity line of credit.” The story cited three local banks that had launched them within the preceding 18 months. Changes in federal tax law helped make the loans more appealing, said Chairman-CEO David Provost of Troy-based Talmer Bancorp Inc ., since borrowers could claim a federal tax deduction on the interest from those loans but no longer on credit card or car loan interest. Early on, the credit lines weren’t always easy to get. Patrick McQueen, state banking commissioner from 1992-99 and now a managing director at McQueen Financial Advisors LLC in Royal Oak, said he handled home equity Patrick McQueen: credit lines Tax laws enabled under stringent home equity loans. standards in the early 1980s through a program at Manufacturers Bank of Detroit. In those days, he said, the bank allowed qualifying customers who had at least 50 percent equity to borrow up to 80 percent of their home value up to $100,000. The bank used to do research on

those loans, he said, to see how customers behaved with them. “These were people who were good credit risks, with good profiles. But what we found was, people had all kinds of purposes for it.” “They’d use it to buy groceries and make car payments, because they got a better lending rate with that form of credit than they would elsewhere, and then pay off the balance eventually with their Christmas or year-end bonuses. They were still using it judiciously, but they used it for every purpose under the sun.” Provost said the strong standards deteriorated in the run-up to the housing bubble when homes were David Provost: climbing by 10 Loans were “like a percent or more narcotic.” in value per year. “In the ’90s, you still had to qualify for the loan, but by 2004 and 2005, there were almost no qualifications,” he said. “When we first started doing home equity lines, the bank that originated the line kept it. But in the early 2000s, the guys in Wall Street figured out a way to package them. And in that period, the house value was going up 10-20 percent, you could refinance your house just about every year, and for 10 years all you had to do was pay the interest. “And when you’re taking out $20,000 and your interest is $100 a month, you had plenty of money just from what you took out, to pay interest each year. And you never thought about paying it back because you were going to sell the house before the 10 years was up. It became like a narcotic.”

Big tickets McQueen also said the patterns changed as lending standards eased. After he’d departed the Michigan Financial Institutions Bureau and became president-CEO of the Bank of Bloomfield Hills in 2000, McQueen said the loans seemed to have markedly different purposes. People were borrowing more often for single big-ticket items — particularly real estate, like second homes or to assist with primary mortgage payments on large homes the borrower could not actually afford. Some borrowers were underwater, and Provost said some had borrowed up to 125 percent of their home value by the mid-2000s. “The assumption ... was that home values were growing so quickly that you were going to eventually climb into the value of that loan,” McQueen said. “And that didn’t work out as planned.” Some believe the interest-onlyfor-10-years credit lines could hobble the lending markets once more starting this year and next. Loans from the bubble era in 2005 and 2006 are beginning to “reset” to convert to interest-and-principal payments. Amy Cutts, senior vice president and chief economist at Equifax, said delinquencies on those credit lines have almost doubled when they reach that 10-year point. But even for loans at the top of the bubble, she said, defaults and delinquencies are less than feared. “We’ve found that a year later, 75 percent of the loans that were alive before the reset, were still alive. They were not refinanced and did not default,” she said. “Most just keep paying as agreed.”䡲 Chad Halcom: (313) 446-6796 Twitter: @chadhalcom

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International biz grows at Velocity Center By Chad Halcom chalcom@crain.com

Three international businesses have landed and a fourth could come soon to the Velocity Collabo ration Center in Sterling Heights, under a new pilot program to help foreign defense and security companies build a U.S. business footprint in the region. The International Landing Zone, a six-month pilot program with nominal funding from the Michi gan Economic Development Corp . and administered by Macomb County at Velocity, now has three tenants: NFC Group North America (a subsidiary of Ringwood, England-based NFC Group ); Torontobased Vigurus Technologies Inc .; and London, Ontario-based Mili tary Powerhouse, which signed an agreement with the county this month. A fourth tenant could land within weeks, said Vicky Rad, deputy director of planning and economic development at Macomb County. Tenant businesses with defense- and homeland securitythemed products or services get rent-free office space and business assistance services through Sept. 30 at the Velocity building to help them develop a U.S. line of business as well as a local presence. “The agreement entails that to make this project work, they have to allocate resources to it as a company. They have space at Velocity, as part of the agreement they have access to conference rooms and all the Macomb-OU IN Cubator amenities,” Rad said of the International Landing Zone. “It’s a six-month program, and while they are here they can meet with players, figure out if they want to do business directly with (the U.S. Army ) Tacom (Life Cycle Management Command, in Warren) or be a supplier to one of the prime contractors, and what their local role might be.” Brian Jamieson, founder and CEO of Vigurus Technologies, said his company has a patent in the U.S., Canada, Japan and Australia for a vibration-dampening and pressure-relief mechanical construct that has safety applications for the defense, sports equipment, transportation and footwear industries. But he was also a recruitment and public relations director for Big Brothers Big Sisters of Windsor/ Essex County more than 25 years ago, and recalled the potential of the skilled labor market across the Detroit River. “I was already aware of the Detroit market and some of its challenges, and I know the auto industry and some of its rises and falls, and Windsor was a servant community to Detroit in many ways,” he said. “So I’m really interested in not only the manufacturing potential, but also the talent pool that’s get-

ting underutilized there.” Jamieson said as the sole fulltime employee of Vigurus, he has been commuting between Toronto and Sterling Heights while he has been hosted at the International Landing Zone. He hopes to take advantage of the proximity to Tacom and the Tank-Automotive Research, Development and Engineering Center at the Detroit Arsenal in Warren, as well as Detroit automakers and prime defense contractors, to help launch a U.S. business line for Vigurus.

“Just getting free space to work in by itself sounds wonderful, but it’s still an expense to travel between cities. But it’s been worth it, because I’m benefiting from the help of some top-notch people here in helping me with the local market,” Jamieson said. “I’ve been very impressed.” Rad said the International Landing Zone program is targeting primarily second-stage foreign companies that are in growth mode, and want to enter the U.S. market with a product or service with defense or homeland securi-

ty applications. Companies could continue as paying tenants after the pilot program period expires, but the long-term goal is to have companies graduate from the program as incubator tenants do and find a permanent local place of business. Based on the zone’s popularity thus far, the county is looking at possibilities for growing the program starting in fiscal 2016, Rad said. International sales of defense products between allied countries

are expected to be a growing share of the defense contracting market in the next few years, as Pentagon procurement takes a hit from federal budget controls or sequestration and a windup of equipment orders from the wars in Iraq and Afghanistan. Sales under the federal Foreign Military Sales program totaled $34.2 billion in fiscal 2014, up from about $30 billion in fiscal 2013, according to the Defense Security Cooperation Agency. 䡲 Chad Halcom: (313) 446-6796 Twitter: @chadhalcom

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M&A Experience

Crain’s makes changes in newsroom

In Your Corner.

Crain’s Detroit Business last week announced several changes in titles and roles for key newsroom leaders. Publisher Mary Kramer resumes the additional title of editor. Executive Editor Cindy Goodaker will move from day-to-day newsroom management to focus on specific projects and initiatives, focused on key audience and industry segments. Managing Editor Jennette Smith assumes responsibility for newsroom management. Smith will be assisted by Kristin Bull, who has been named assistant managing editor. Bull joined Crain’s in 2013 as Web editor. She had Bull worked at Patch.com and The Kansas City Star. Smith joined Crain’s in 1998 and has served in reporting and editing roles, starting as real estate reporter. “We’re aligning people to focus on great journalism, regardless of whether it’s first reported on our website or in our weekly print edition,” Kramer said.

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The following business filed for protection in U.S. Bankruptcy Court in Detroit May 15-21. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. World Art Auctions LLC and Ac quisition Strategies Inc. , 4581 S. Lapeer Road, Suite B, Lake Orion, voluntary Chapter 7. Assets and liabilities not available. — Dustin Walsh

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CRAIN’S DETROIT BUSINESS // May 25, 2015

Advantage group acquires senior facilities from PVM By Jay Greene jgreene@crain.com

Advantage Management Group, a Southfield-based nursing home chain, has reached an agreement to acquire an 88-bed skilled nursing facility, a 56-bed assisted living unit and a memory loss program from Presbyterian Villages of Michigan at its Village of Redford campus for $6.5 million, officials said last week. Pending state regulatory approvals, the deal is expected to close in September, said Reggie Hartsfield, Advantage’s president and co-owner. Under the agreement, Presbyterian Villages will retain ownership of two separate independent living residences — the Villa at Redford and the Cottages at Redford, with about 200 residents — and support programs that are also at the 33-acre Village of Redford, said CEO Roger Myers. It also will continue to own and operate a nursing home at the Village of East Harbor in Chesterfield Township and a smaller assisted living facility in Westland, Myers said. The Southfield-based nonprofit, which operates 25 senior living communities with 4,300 residents statewide, is shifting somewhat from

nursing home and assisted living ownership into expanded services for in-home support care for seniors, an area the nonprofit has identified as an unmet need, Myers said. Myers said Presbyterian Villages plans to expand its social service programs. For example, its service coordinator employees, who coordinate services for residents, also will help neighbors to stay at home. Presbyterian Villages also has formed joint ventures with outside agencies to develop home services. For example, it recently created separate joint ventures with Northville-based Homestead Home Health Care , and Jewish Family Services and Southwest Solutions Inc. to provide support for at-home seniors. Earlier this year, Advantage acquired two nursing homes with 320 beds from Henry Ford Health Sys tem in metro Detroit and an assisted living center in Port Huron owned by independent investors. Advantage now operates eight nursing homes and two assisted living facilities with 1,167 beds. 䡲

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CRAIN’S DETROIT BUSINESS // May 25, 2015

CRAIN’S DETROIT BUSINESS

OPINION State must respond to education decline M

any of us link underperforming public schools to low-income neighborhoods in big cities.

But the truth is that many of Michigan’s schools are underperforming — and we’re in an unintended race to the bottom that cuts across race, geography and income. According to the Education Trust-Midwest, if Michigan continues on its current path, it will be 44th in the country in fourth-grade reading before 2030, where it will keep company with Alabama and Arkansas. We’ll be in the bottom 10 overall. More money needs to be spent on better training and feedback for teachers and leadership. More money needs to be spent to retain good teachers in challenged school districts, where salaries are often lower. Gov. Rick Snyder’s support for early childhood programs — and setting a firm goal of reading by the third grade — is another step in the right direction to benefit the entire state, not just Detroit, Flint, Grand Rapids and other major cities. Consider these statistics: Michigan’s white students are on track to rank ahead only of West Virginia in fourth-grade reading by 2019. The state’s African-American students are among the lowest-performing black students in the U.S. Latino students also are seeing significant declines compared with the rest of the country. These are shocking numbers that should shake us out of any complacency that we have about how we’re educating our children. The Education Trust has launched a campaign to make Michigan a top 10 state by 2030 by recommending that the state target four key areas for investment: teaching quality, higher standards, school accountability and increased learning opportunities for students through increased funding equity. All of these are critical, but the first three, which involve accountability, are key. Teacher quality matters, principal quality matters and standards matter. To that end, funding needs to be strategically deployed. We also need sustained commitment. We have an opportunity now as school districts are implementing state career- and college-ready standards. So far, training on how to teach the standards has been spotty. That’s not right. Accountability without training and tools is unfair. The good news is that such training need not be expensive. The report estimates that by spending $4 million to $5 million a year, all the state’s teachers could be trained on the best teaching techniques for the new standards within three years, starting with K-3 instructors. There’s more that needs to be done, but other states — Tennessee, for one — have made improvements, and we can, too. To read the report, visit midwest.edtrust.org.

LETTERS

Michigan voters won’t be fooled on roads Editor: A recent article titled “Poll: Biz willing to pay more for better roads” (May 18, Page 1) appears to promote the position that more money is needed through taxes, or fees, to fix Michigan’s roads. Of course, businesses are going to be willing to do what it takes to fix Michigan’s crumbling infrastructure since they’re not going to be the ones paying for it. Any added fees, or taxes, will simply be passed on to customers as a cost of doing business. Who should be polled are the residents of Michigan who have been hoodwinked repeatedly in such matters. Michigan has a long history of promising revenue and funds to be committed to a particular purpose (like all lottery funds going strictly to education), raiding those funds for other purposes and promising the shortfall will be made up from some overly optimistic future financial projection. With the second-highest gas tax in the country, what should be asked is: “Where did the money go that has been collected all these

Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email: cgoodaker@crain.com

years for the purpose of building and maintaining our roads?” While I am generally a supporter of Gov. Rick Snyder, he lost much credibility in my eyes by going along with Proposal 1, which would have resulted in massive increases in fees and taxes, mostly pork, and lack of immediate improvement to an immediate problem. Proposal 1 lost mainly because of the lack of faith of the residents who have decided they won’t get fooled again. James Aiello Grosse Pointe Woods

Volvo picked S.C. for port access Editor: Your “Right-to-work didn’t snag Volvo” editorial of May 18 fails to ac-

knowledge Volvo’s need for a seaport. In an Associated Press story announcing the choice of a site 30 miles from Charleston, Volvo Cars of North America President and CEO Lex Kerssemakers said, “The reason we came to South Carolina is accessibility. We want to be very close to the sea. We will export those cars.” John Love President, Event Management Corp., Troy

UAW is why firms avoid state Editor: No auto company with any sense will come near Michigan with a manufacturing plant, thanks to the UAW, no matter how attractive the state makes itself look (“Right-towork didn’t snag Volvo,” May 18 editorial). At best, they will establish a presence on the west side of the state as Elon Musk recently did when Tesla bought a Grand Rapids auto supplier. And don’t be surprised when this year’s contract talks give non-Detroit 3 companies even more reason to stay away. Mark Maisonneuve Berkley

TALK ON THE WEB Re: Former Hyatt Regency Dearborn gets new flag I truly hope they succeed, but note that most hotel experts previously quoted by Crain’s estimated that this hotel (second-largest in the state) needs as much as $50 million in renovations . Neither the new management company nor the building’s owners seem willing/able to spend much more than a small fraction of that amount. WPK

They also have the location to overcome. Yes, they’ll get overflow from downtown convention business, but who will want to stay out there at the intersection of Whatever and Can’t Tell, especially with those great winter views of bare trees and circling freeways. But it’s there and no one is served by a boarded-up hotel building, so we wish them luck. James Gerardi

Reader responses to stories and blogs that appeared on Crain’s website. Comments may be edited for length and clarity.

Re: Mike Babcock leaving Red Wings to coach Maple Leafs Bring in Steve Yzerman to take over! 268053

Vermont? What is the benefit to Michigan here? Carolyn Mazurkiewicz

Were the taxpayers not told recently that Michigan is “short of beds” to house prisoners? Apparently not true. William J

Re: Wurlitzer Building sells for $1.4M; boutique hotel planned

I hate to see Babcock go, but $3.5 million versus $6 million is a nobrainer.

This is a beautiful building. Can’t wait to see the improve ments.

PGA1DAY

greatcities

Re: Vermont to move out-of-state inmates to Michigan

Re: Auto sales staffers seek to brand themselves via Internet

What is the cost to Michigan tax payers in relation to this prisoner move? Should Michigan taxpayers be interested in the $2,055 annual savings per prisoner accruing to

Yeah! Finally, auto media notices that p e o p l e b u y c a r s f r o m people , not dealerships or brands. James Simpson

Retire aging Straits of Mackinac oil pipelines to protect lakes, island OTHER VOICES Chris Shepler is owner and operator of Shepler’s Mackinac Island Ferry, which his family has run continuously since 1945. he signs of spring are abundant

Tthese days, even up here at the

Mackinac Straits: The ice has finally given way, seasonal residents and tourists are returning, and my fami-

ly’s passenger ferry service is making the round-trip trek again between Mackinaw City and the sparkling gem that is Mackinac Island, as we have for 70 seasons and counting. Something unseen is changing, too: The twin oil pipelines lying at the bottom of the turbulent straits have grown another year older. They are 62 years old, in fact, and I find that deeply concerning. Don’t get me wrong. My boats need oil to operate, but we need the clean, fresh water even more. Peo-

If there’s a major oil spill in the straits, it’s game over for my family business and the region’s economy for years to come. ple come here to swim, skip stones, fish and frolic in these waters. They come to watch the waves sparkle and the sun set. If there’s a major oil spill in the straits, it’s game over for my family business and the region’s economy for years to come. University of Michigan researchers in 2014

called it “the worst possible place for an oil spill in the Great Lakes,” and I agree. Canadian energy pipeline company Enbridge uses the straits as a shortcut to transport oil to refineries in Sarnia, Ontario. It’s obvious that these pipelines cannot last

forever. Just consider that a 41year-old Enbridge pipeline burst in 2010 and spilled about 1 million gallons of oil into the Kalamazoo River watershed, requiring more than four years and $1.2 billion to clean up. That’s why I am continuing to call for state leadership on these pipelines that carry 23 million gallons of oil a day through the Straits of Mackinac. And I’m in good company, as the city of Mackinac Island, See Next Page

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CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // May 25, 2015

A healthy workplace includes employee financial wellness OTHER VOICES Mansa Musa is a financial coach for the Central Detroit Christian Community Development Corp. any employers have broad-

M ened the wellness concept

beyond health care to include programs that help workers keep their finances in shape. Whether it is done out of a sense of altruism or self-interest, it makes very good bottom-line sense for a company and its employees. Although the economic recovery seems to be picking up speed, many employees are still struggling to make ends meet. A new survey of economic stress and financial wellness in the American workplace reveals that significantly more employees are living paycheck to paycheck and that financial stress is a substantial and growing contributor to absenteeism and decreased productivity. The Society for Human Re-

From Previous Page

the Mackinac Island Community Foundation, and the Cheboygan County Board of Commissioners all have written the governor seeking a solution to this very real threat. The state has a special duty to protect our Great Lakes and has specific authority to regulate these pipelines because they occupy state-owned bottomlands. Gov. Rick Snyder and other state officials have been very supportive of my business and others on Mackinac Island, and I know that they appreciate the value of this special place to Michiganâ&#x20AC;&#x2122;s heritage and tourist economy. I was pleased to see the creation of a state task force last year cochaired by Attorney General Bill Schuette and state DEQ Director Dan Wyant to examine these and other oil pipelines in Michigan and determine how to improve their safety. The task force plans this spring to release its report and recommendations on the Straits oil pipelines. From May 26-29, Michiganâ&#x20AC;&#x2122;s top political and business leaders will gather here to chart a course to â&#x20AC;&#x153;move Michigan forward,â&#x20AC;? according to the Detroit Regional Chamber of Commerce, which hosts the annual Mackinac Island Policy Conference. Officials will dine on local Great Lakes whitefish and drink and bathe with the islandâ&#x20AC;&#x2122;s tap water drawn from Lake Huron. Itâ&#x20AC;&#x2122;s the perfect time and place for state leaders to announce their commitment to protect the Great Lakes, our communities and our economy by announcing a plan to retire or decommission the pipelines in the Mackinac Straits. Letâ&#x20AC;&#x2122;s keep oil out of the Great Lakes forever.

source Management 2014 Survey of Financial Wellness and Education strongly suggests employees with money-related issues have higher absenteeism and lower productivity. Money problems in life mean productivity problems on the job. This survey and other studies provide valuable insights into the results of proactive financial wellness strategies in the workplace: â&#x2013; 85 percent of employers say employees participating in financial wellness programs showed more productivity at work. â&#x2013; 66 percent of employees say

they have been able to increase their monthly savings with the help of a financial wellness program. â&#x2013; According to a March 2015 bankrate.com article, a financial wellness program can combat low participation rates in 401(k) plans. â&#x2013; Financial wellness programs are a valuable benefit for employers to offer in the competition for talent. â&#x2013; Offering financial education can allow employees to solve financial dilemmas and refocus on work. It may have the additional benefit of increasing employee loyalty to the company mission.

There is a difference between financial literacy and financial wellness. Traditionally, financial literacy is centered on knowledge and skills. Effective financial wellness is behavior-centered. Consider the following: â&#x2013; Financial literacy is the ability to understand how money works in the world. It refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of the personâ&#x20AC;&#x2122;s financial resources. â&#x2013; Financial wellness is an intricate balance of the mental, spiritual and physical aspects of money. It is

having an understanding of your financial situation and taking care of it in such a way that you are prepared for financial changes. It is not necessarily about being wealthy, but it is a state of psychological well-being in which one feels control over the current finances and the financial future. Achieving or maintaining financial wellness has many challenges for every rung on the American economic ladder. Thatâ&#x20AC;&#x2122;s why itâ&#x20AC;&#x2122;s important to add such programs â&#x20AC;&#x201D; designed for various levels of the organization â&#x20AC;&#x201D; to create a stronger workplace.

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SPECIAL REPORT: CFO AWARDS

FINANCE The REAL moneyball Panel to give inside look at world of sports CFOs By Daniel Duggan dduggan@crain.com

hen the duties of a CFO come to mind, it traditionally means responsibilities such as managing swings in revenue, working with personnel and thinking about shareholders. What doesn’t come to mind? Getting to the playoffs, losing Ndamukong Suh, and having screaming fans outside your company’s front door. But that’s the reality for the CFOs working in professional sports. “This really is a crazy business to be in,” said Greg Campbell, CFO of the Detroit Pistons. Get a peek inside the business mind of Campbell and other sports CFOs on July 23 when Crain’s Detroit Business hosts a panel discussion with the top financial executives from Detroit’s four major professional teams. The panel is planned for the same breakfast event where this year’s class of Crain’s CFO of the Year winners will be honored. Speaking at the event will be: 䡲 Campbell, executive vice president and CFO of the Pistons, part of Auburn Hills-based Palace Sports and Entertainment LLC. 䡲 Paul MacDonald, vice president of finance of the Detroit Red Wings, part of Detroit-based Ilitch Holdings Inc. 䡲 Allison Maki, CFO, Detroit Lions. 䡲 Steve Quinn, vice president, finance and administration and CFO, Detroit Tigers, also part of Ilitch Holdings. Moderating the discussion will be Rejji Hayes, CFO of Novi-based ITC Holdings. Hayes, a 2013 Crain’s 40-under-40 winner, will draw parallels between the role of sports CFOs with the role of CFOs from less glamorous businesses. Campbell said the biggest difference comes from the challenges to predict the business. “There are such big swings,” he said. “You can prepare, but, you can’t control things. You can prepare for injuries, doing well, having coach problems, but, you can’t control it.” Maki, the newly named CFO for the Lions, always goes back to rookie advice she got from former Green Bay Packers vice president Vicki Vannieuwenhoven: “She said, ‘It’s ordinary work at an extraordinary place.’ That really sums it up.” The event will be held at The Henry in Dearborn, with doors to open at 7:30 a.m. To register, go to www.crainsdetroit.com/ events. Cost is $75 for individual tickets, $800 for a reserved table of 10.

Art of leadership {GLENN TRIEST}

WINNER: Nonprofit

Robert Bowen Detroit Institute of Arts Age: 61 Claim to fame: Presiding as CFO during one of the most turbulent times in the history of the museum. By Gary Anglebrandt Special to Crain’s Detroit Business

n the 120-year history of the Detroit Institute of Arts, it would be hard to find a period any shakier than the one it just went through. The museum found itself at the center of Detroit’s municipal bankruptcy, its storied art collection used as a poker chip during the negotiations of 2013 and 2014. Just a year before that began, the DIA pulled itself out of budgetary quicksand by pushing through a 10-year tri-county

The 2015 Crain’s CFO of the Year winners and finalists have been a key part of the decision-making at a range of organizations. Whether assisting with financial turnarounds or crisis management, these CFOs stand out. Profiles begin here and continue to Page 17.The awards program, now in its eighth year, honors CFOs — often the unsung heroes of the C-suite. millage that gives it about $23 million annually. In charge of the museum’s finances throughout all this was Vice President and CFO Robert Bowen. He spent a career at Chrysler before going into semiretirement, then emerged to take a job at the DIA, something he’d long thought he might like to do. Bowen didn’t know he was about to enter one of the DIA’s most tumultuous times. Museum revenue came up 60 percent shy of costs every year, with a lot of fundraising making up the difference. When Bowen came aboard in 2011, efforts to generate millage money were getting serious. Bowen learned campaign finance rules

on the fly. “That was something I certainly had never done before,” he said. Fiscal crises come and go. What came next was “beyond that,” Bowen said. “This got to be the most existential threat.” With the DIA’s collection under threat of liquidation during Detroit’s bankruptcy, Bowen conducted the train of paperwork flowing to the courts. Creditors subpoenaed records dating back to the inception of the museum. The DIA negotiated for fewer documents but still had to provide a massive number of records on artwork, donors and minutes of meetings long forgotten. To do this, more than a 100,000 records had to be digitized. “Stuff was all over the place. We brought See BOWEN, Page 12

RISING STAR Winner: Sheryl Madden, The Kresge Foundation, Page 18 Finalist: Simon Leopold, Taubman Centers Inc., Page 18

NONPROFIT Winner: Robert Bowen, Detroit Institute of Arts, this page Finalist: Linda Lutz, Detroit Symphony Orchestra, Page 12

GOVERNMENT Winner: John Hill, City of Detroit, Page 13 Finalist: Stacie Durant, Detroit Wayne Mental Health Authority, Page 13

PUBLIC COMPANIES Winner: Mark Blaufuss, Metaldyne Performance Group Inc., Page 14 Finalist: Sean Whelan, Diplomat Pharmacy, Page 14

PRIVATE COMPANIES, OVER $100 MILLION

About the judges

Winner: Kirk Haggarty, North American Bancard, Page 15

The Crain’s CFO awards were picked through a collaboration of executives and Crain’s editors. Judges were:

Finalist: Sally Brandtneris, Stefanini Inc., Page 16 Finalist: Daniel Scheid, Zeigler Auto Group, Page 16

PRIVATE COMPANIES, UNDER $100 MILLION Winner: Shawn Peralta, Secure-24, Page 17 Finalist: Don Piper, Arch Global Precision LLC, Page 17

Raju Balakrishnan, dean, College of Business, University of Michigan-Dearborn RickDavid, COO, UHY Tim Gargaro, CFO, Gill Holding Co. *Lisa Payne, CFO,Taubman Centers Inc. William Smith, CFO, Detroit RiverFront Conservancy Tom Stevens, CFO, Crain Communications Inc. *On the discussion of the Rising Star category, which included Taubman Senior Vice President Simon Leopold — who was named finalist — Lisa Payne did not participate in the discussion.

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SPECIAL REPORT: CFO AWARDS

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in a team to do all the scanning. They set up shop for several weeks,â&#x20AC;? Bowen said. â&#x20AC;&#x153;I had to make sure people were on it full time.â&#x20AC;? The DIAâ&#x20AC;&#x2122;s lawyers asked Bowen to provide information they needed in the negotiations. He showed that the city had contributed only 1.1 percent of the DIAâ&#x20AC;&#x2122;s budget during the previous 15 years and that for most of its history it had been supported by donors and the public. This allowed the museum to argue that it was city-owned in name but not in practice. â&#x20AC;&#x153;The title was with the city, but many other people had a role,â&#x20AC;? Bowen said. â&#x20AC;&#x153;Why would people do that if they thought the city bought and sold it as it pleased? Well, they didnâ&#x20AC;&#x2122;t. That was the basis of the DIAâ&#x20AC;&#x2122;s arguments.â&#x20AC;? With the â&#x20AC;&#x153;grand bargainâ&#x20AC;? now settled, Bowen has to manage the 20-year, $100 million municipal pension fund obligation it agreed to as part of gaining the DIAâ&#x20AC;&#x2122;s independence from the city â&#x20AC;&#x201D; not the sort of thing most art museum CFOs have to worry about. But the independence gained was worth it, Bowen said. For future generations who look at the

FINALIST: Nonprofit

Linda Lutz Detroit Symphony Orchestra Age: 52

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Claim to fame: Within a year of joining the DSO, Lutz helped negotiate the early settlement of its contract with Local 5 of the American Federation of Musicians and oversaw the restructuring of $14.5 million in debt on Orchestra Place, in the process more than doubling the cash flow coming to the DSO from the venue.

inda Lutz wasted no time after joining the Detroit Symphony Orchestra early in 2013 after 14 years as finance director for the Jewish Federation of Metropolitan Detroit. Within six months of her arrival, the DSO went through a significant restructuring that added oversight of human resources, facilities and security to her financial duties. Then, about nine months in, Lutz jumped in to assist on contract negotiations with Local 5 of the American Federation of Musicians. The two sides forged a three-year agreement in January 2014, nearly eight months before the prior agreement expired. â&#x20AC;&#x153;It was important to everybody involved, especially coming off the strike, that we were able to settle it quickly and productively ... to show to the community, the musicians whoâ&#x20AC;&#x2122;d considered applying for a

â&#x20AC;&#x153;It is an historic moment and ... it is an honor to be part of a keystone event in the museumâ&#x20AC;&#x2122;s history.â&#x20AC;? Robert Bowen, Detroit Institute of Arts

museumâ&#x20AC;&#x2122;s timeline, it will stand out as one of its biggest turning points. â&#x20AC;&#x153;It is an historic moment and ... it is an honor to be part of a keystone event in the museumâ&#x20AC;&#x2122;s history,â&#x20AC;? he said. Bowen has learned some things on the job, too, like how to make sure donorsâ&#x20AC;&#x2122; wishes are honored. One pot of money might be able to be used for any operational purpose, while another must go only toward the purchase of modern art, for example. And quarterly sales expectations take a backseat to other considerations. â&#x20AC;&#x153;The time periods we look at are so much different than what we look at in the corporate world,â&#x20AC;? Bowen said. â&#x20AC;&#x153;When someone is looking to preserve something forever, basically, itâ&#x20AC;&#x2122;s a different perspective.â&#x20AC;? äĄ˛

position here and donors and patrons that the organization was stable,â&#x20AC;? Lutz said. The professional challenges continued. In March 2014, Lutz oversaw the restructuring of $14.5 million in debt on Orchestra Place, transitioning the DSO venue to a more traditional mortgage from the previous taxexempt bonds. The move more than doubled the cash flow coming to the DSO from Orchestra Place and mitigated the risk associated with the annual requirement to renew the letter of credit securing the taxexempt bonds. Her work has had impact. Under Lutzâ&#x20AC;&#x2122;s oversight, the DSO is looking to its third year of an operating surplus, something it hadnâ&#x20AC;&#x2122;t done since 2007. The orchestra ended last year with an excess of about $100,000 on a $27 million budget, in part because of tightened financial controls and internal processes, she said. Lutz also helped research and institute an incentive compensation plan that not only rewards upper and middle management for hitting organizational goals but also gives all employees a chance to participate in incentive compensation. She credits the plan with increasing morale for employees â&#x20AC;&#x201D; who had endured cuts during the recession and not seen a pay increase since 2007 â&#x20AC;&#x201D; and with focusing them on common goals. â&#x20AC;&#x153;We exist in an environment right now where cash is critical to us,â&#x20AC;? Lutz said. â&#x20AC;&#x153;We never lose sight of it. Probably on a daily basis weâ&#x20AC;&#x2122;re looking at where we stand as far as revenue coming in the door versus money going out the door.â&#x20AC;?äĄ˛ â&#x20AC;&#x201D; Sherri Welch

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SPECIAL REPORT: CFO AWARDS

WINNER: Government

John Hill City of Detroit Age: 61 Claim to fame: Managing the finances for the city during bankruptcy, and setting up the framework for the future. By Amy Haimerl ahaimerl@crain.com

hen Detroit Emergency Manager Kevyn Orr approached John Hill to be the city’s new CFO, Hill was initially shocked to be asked. The D.C. native was already doing contract work for the city, working on grants management, and wasn’t sure he wanted the task of leading the city’s financials

FINALIST: Government

Stacie Durant Detroit Wayne Mental Health Authority Age: 44 Claim to fame: Was able to retain 20 key staff members despite a governmental change that caused them to lose their seniority.

through bankruptcy and beyond. “Kevyn told me, ‘You can continue to do projects, but if you really want to make a difference, you should come in and do this on a more full-time basis,’ ” said Hill, who previously ran Arthur Anderson’s government consulting practice in Washington, D.C. “He appealed to the one thing that would make me want to do it: The ability to make a difference.” Since Hill started in November 2013 — just five months after the city filed bankruptcy — he has had to work in “three time periods,” as he calls it: past, present and future. Hill must work on completing

andling the financial demands of a CFO, while balancing the politics, has been key for Stacie Durant. She joined Wayne County as a finance employee in 2004 and worked her way up to deputy CFO. But she also balanced the county

all of the audits and legacy issues from pre-bankruptcy, while managing the current financials and preparing to reinvest for the future. “People think that because we’re out of bankruptcy that the systems are better,” Hill said. Instead, he’s still mopping up much of the legacy systems and ways of operating, while also working with staff and Beth Niblock, the city’s chief information officer, to install new financial management systems and structures. The job is harder than Hill anticipated — even knowing what he was walking into. But this isn’t his first time leading a city through financial challenges. He served from 1995 to 1999 as the executive director of the congressionally created Financial Control Board for Washington, D.C., working to pull

that city out of its financial quagmire. “I loved that work,” said Hill, who is a CPA. “I’m not the person to manage a steady operation. I love working in a chaotic environment and trying to bring order to it so it can really grow. That’s where I am best.” As part of Hill’s reforms, more of the city’s financial information will be made available to the public on the city’s website, and more services — such as procurement — will move online. Additionally, Mayor Mike Duggan, the Detroit City Council and staff will also receive more up-todate financial information so they can make better decisions about the effectiveness of programs and policies. “To the extent that we can control cash receipts and improve col-

lections,” Hill said, “it means we can return more services to the citizens, and hopefully we will have less of a tax burden on a population that is already taxed as much as it possibly can.” And serving people, making a difference, is really what inspires Hill. While others might not think to do it through numbers, he likes the insight they offer. “What I enjoy about accounting is that it gives you a unique perspective on organizations and how they work,” said Hill, who was originally a math major before taking up accounting. “If you can understand the finances of an organization, you can pretty much understand what makes it work and what makes it work well.” 䡲

post with a job leading the county’s mental health agency, the Detroit Wayne Mental Health Authority. In 2012, Gov. Rick Snyder made the mental health agency into a separate authority. By 2013, Durant was named CFO of the new authority, but keeping staff was another challenge. Finance staff members who had worked there as many as 20 years would be faced with losing all

their seniority to keep working there. “I measure my leadership by the mere fact that every finance person was willing to lose their seniority to come work with me,” said Durant. It’s one of several balancing acts she has handled. Another: In mid-2013, the authority underwent an audit from the state of Michigan in which the state said it was owed

more than $30 million. “We did our own digging, and, it turned out, their numbers didn’t reconcile with ours,” said Durant. By 2014, she had a different story to tell. The numbers showed not a debt of $30 million — but instead that the authority was due another $30 million. “It was a great find,” Durant said. 䡲

Amy Haimerl: (313) 446-0416 Twitter: @haimerlad

The Kresge Foundation

Sheryl M. Madden Crain’s 2015 CFO Rising Star

Expanding opportunities in America’s cities

— Daniel Duggan

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SPECIAL REPORT: CFO AWARDS

WINNER: Public companies

Mark Blaufuss Metaldyne Performance Group Inc. Age: 47 Claim to fame: Worked as part of the team that rolled three major companies into a $3.1 billion corporation. By Doug Henze Special to Crain’s Detroit Business

magine blending three $1 billion companies into a single entity, relying on people who don’t know you or each other — all of whom are concerned about keeping their jobs. Oh, and you’ve got four months to get it done. Go. That daunting task is what Metaldyne Performance Group Inc. CFO and Treasurer Mark Blaufuss faced when private equity group American Securities tasked him with stitching together Metaldyne, HHI Group Holdings LLC and Grede Holdings LLC last fall.

American Securities, which owned Plymouth-based Metaldyne and HHI, of Royal Oak, set the merger in motion after purchasing Southfieldbased Grede in June 2014. The new company, a $3.1 billion metal-forming powerhouse based in Plymouth, is a Tier 1 auto supplier that produces engine, steering and suspension components. “I really had to quarterback through that whole thing,” said Blaufuss, who considers shepherding the organization through the merger his biggest contribution as a CFO. “I had to work with people I never met before and say, ‘OK, we’re going to work shoulder to shoulder and work through this process.’ ” American Securities named Blaufuss, who took part in an April planning meeting, CFO of what would become Metaldyne Performance Group in August. In December, the U.S. Securities and Exchange Commission gave its blessing for the new company’s

initial public offering. In addition to satisfying the SEC, Blaufuss and other executives went on a nine-day road show — meeting with more than 60 potential investors in eight cities. Then, there were the internal hurdles, which included building trust with colleagues. “The biggest challenge to work through was the cultural concerns,” said Blaufuss. He’s seen those concerns firsthand. He now oversees two former peers at HHI and Grede. Those CFOs possessed knowledge crucial to the merger. And, with all three companies running lean, everyone on the three finance teams had to be on board — working nights and weekends — to get the job done. “(I had) to make sure everyone wasn’t worried about if they were going to have a job and what that (job) was going to be,” Blaufuss said. “I am proud to say we ended up with a world-class organization that successfully executed our transformation, and with no turnover.” Although the merger is done,

working side by side with colleagues in all departments and understanding their needs and motivations is still the best way to help the organization, Blaufuss said. “You must be able to work with the sales people, the human resources people,” Blaufuss said. “Everybody does something that influences the financial results of the company. Their goals may not be in line with other constraints you need to work within.” Bringing in data that demonstrates what’s best for the company is a way to settle disputes between people in different company functions, Blaufuss said. “Data-based decisions tend to defuse a lot of the emotions,” he said. Outside work, Blaufuss, along with his family, supports various religious charities, including the Mack Avenue Community Church in Detroit and Ele’s Place, which provides counseling and support for grieving children in Ann Arbor, Lansing, Grand Rapids and Flint. Blaufuss also supports the Spartan Fund, which helps student athletes at Michigan State University achieve academic and athletic goals. 䡲

FINALIST: Public companies

Sean Whelan Diplomat Pharmacy Age: 44 Claim to fame: Led a successful initial public offering last October that raised $200 million and helped CEO Phil Hagerman and the board celebrate by ringing the bell at the New York Stock Exchange.

ean Whelan, CFO and a board member of Flintbased Diplomat Pharmacy Inc. (NYSE: DPLO), had a busy 18 months. Whelan, who became the specialty pharmacy’s first CFO when hired in 2010, led the process that culminated in a $200 million initial offering last fall at $13 a share See Next Page

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SPECIAL REPORT: CFO AWARDS

WINNER: Private companies, over $100 million in revenue

Kirk Haggarty North American Bancard Age: 46 Claims to fame: Leading a deal last year to buy a large rival out of bankruptcy and putting together a debt facility of $225 million that led to cash-flow savings of more than $10 million a year. By Tom Henderson thenderson@crain.com

t paid off last year for North American Bancard to have a CFO, Kirk Haggarty, with 18 years of experience in investment banking and mergers and acquisitions. North American Bancard, a Troybased credit card processing company with 950 employees and annual revenue of about $550 million, made three acquisitions last year, including one that Haggarty calls “transformational.” That was the acquisition in October of Wilmington, Del.-based Electronic Payment Exchange — a dba for Phoenix Payment Systems Inc., an $18 billion processor of credit and debit cards. North American Bancard was able to buy the company out of bankruptcy for $50 million, boost its

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and earlier this year led an even larger follow-on equity offering of about $285 million at $29 a share. Leading up to the IPO, Whelan selected the underwriter lineup, oversaw the preparation and submission of the S-1 with the U.S. Securities and Exchange Commission and personally sold the IPO to investors on a whirlwind two-week road trip with Diplomat CEO Phil Hagerman. Before the IPO closed Oct. 9, Whelan also signed minority investments totaling $104 million from T. Rowe Price and Janus Capital Group — the first two in the company’s 39-year history. He also closed on Diplomat’s first two acquisitions — American Homecare Federation and MedPro Rx — totaling about $90 million and raised the company’s credit facility to $120 million. The result? So far, Diplomat’s stock price is up about 165 percent in the first six months of the IPO, and the company increased topline revenue growth 46 percent to $2.2 billion. Gross margins increased to 6.3 percent in 2014 from 5.9 percent in 2013. “I tell everybody it was the busiest 18 months of an already busy career,” said Whelan, a University of Michigan graduate who also finds time to coach his children’s soccer and baseball teams in Plymouth. Diplomat is now a 1,000employee company with projected revenue growth this year of $2.8 billion to $3.1 billion. 䡲 — Jay Greene

credit card volume to about $34 billion and round out the products offered by the processing business, Haggarty said. Moreover, it now allows North American to serve larger customers such as 100-chain restaurant groups. It also can keep more business inhouse, providing better margins. The two other acquisitions — whose deal values were undisclosed but were smaller than the acquisition of Electronic Payment Exchange, Haggarty said — were of Sunnyvale, Calif.-based Argus

Payments Inc., an online payment processor, in November and Miamibased Rapid Capital Funding Inc., which provides cash advances to merchants, in December. Another important piece of business accomplished in 2014 was a private debt financing of $225 million that replaced a previous debt financing at a higher interest rate, resulting in a cash-flow savings of more than $10 million annually. Instead of a typical debt facility with three or four banks, North American Bancard raised its oversubscribed facility through 37 institutional investors, Haggarty said. They included Credit Suisse Asset Management LLC, KKR Asset

Management LLC and ING Capital LLC. North American Bancard is looking at more possible deals this year, Haggarty said, “but in baseball parlance, we’re only in the first or second inning. We still have a lot of work to do to integrate EPX, which is going to be a great long-term asset. But it will be 12 to 18 months before it is fully integrated.” Haggarty was a vice president of investment banking at Raymond James Financial Inc. from 1999 to 2000, managing partner at the Grosse Pointe investment banking firm of Donnelly Penman & Partners from 2000 to 2009 and executive vice president and CFO of Atlas Oil Co. from 2009 to 2013. At Atlas, he

headed acquisition efforts and the securing of growth capital. All of which provided a unique skill set for a CFO when he joined North American Bancard in June 2013. “I’m fortunate to have an extremely talented team of people at NAB as well as really talented legal counsel in Honigman Miller and Berkowitz Trager & Trager,” said Haggarty, referring to the Detroit firm of Honigman Miller Schwartz and Cohn LLP and the Delaware firm of Berkowitz Trager & Trager LLC. “Absent of all that talent in putting those deals together, we wouldn’t be where we are today.” 䡲 Tom Henderson: (313) 446-0337 Twitter: @TomHenderson2

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CRAIN’S DETROIT BUSINESS // May 25, 2015

SPECIAL REPORT: CFO AWARDS

FINALIST: Private companies, over $100 million in revenue

Sally Brandtneris Stefanini Inc. Age: 57 Claim to fame: Restructuring accounting and transaction procedures and setting up a common treasury platform that all entities in the company can use.

ally Brandtneris, vice president and CFO of Stefanini Inc., has led the charge as the $280 million IT staffing and services company expands globally. From Southfield, Stefanini has reorganized under a United Kingdom-based holding company to manage more than 30 international subsidiaries under its roof. Brandtneris designed and set up a common treasury platform that all entities in the Stefanini corporate structure

FINALIST: Private companies, over $100 million in revenue

Daniel Scheid Zeigler Auto Group Age: 43 Claim to fame: Creating a strategy for growth that supported 15 acquisitions in seven years.

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FOs often say that keeping a company stable in times of growth is one of the greatest challenges. That’s been the case for Daniel Scheid. During his 11-year tenure as CFO of the Kalamazoo-based Zeigler Auto Group, he has been at the center of a growth strategy that took the auto dealership company from seven locations in two states to 20 locations in four states. Revenue increased during that period from $180 million in sales to $832 million, and employees grew from 175 to 908. Scheid considers himself fortunate to have joined the company when it was transitioning to the second generation of leadership, with Aaron Zeigler taking the helm from his father, Harold. Scheid was named CFO in 2004, less than a year after Zeigler was named president. “We spent the next five years building the organizational strength of the business by putting in place a people-development plan to groom our next-level leaders,” Scheid said.

use. She also standardized the accounting and purchasing processes across the board to bring order to the flood of financial data coming in from so many sources throughout the world. These efforts halved working capital requirements, freeing cash to be returned to shareholders. By restructuring accounting and transaction procedures in Europe and the U.S., she saved the company $500,000 a year and in the process improved controls, created more accurate management reports and reduced the time to produce financial reports in different countries. Brandtneris’ work has smoothed the absorption of new companies as Stefanini grows. She is working on a recapitalization of the holding company in the U.K. to reduce shareholders’ tax obligations. Brandtneris is a member and past president of the Detroit chapter of Financial Executives International. She has supported women’s growth in STEM careers by acting as a mentor for the Michigan Council of Women in Technology, and she led Stefanini’s drive to support the charity CARE in its investments for women and children’s health in Nepal. 䡲 — Gary Anglebrandt

“We spent ... five years building the organizational strength of the business by putting in place a ... plan to groom our next-level leaders.” “We both spent personal time training and developing to teach the up-and-coming managers how to read a financial statement, how to manage the operations and how to develop people.” They put key vendor relationships in place to support the growth, then developed a strategy to target the strategic acquisitions to grow. Scheid developed a format and structure for the capitalization and cash flow for the roughly 15 acquisitions and new ventures that they proceeded to acquire over the next seven years — culminating last year into one of the fastest-growing auto groups in the industry. Outside of work, Scheid has cochaired, along with Aaron Zeigler, the American Cancer Society Drive for Life. Every April, they raise over $300,000 in one night through an auction-style ticket sale, a live auction of valuable items and sponsor-driven event. In addition, he is chairman of the board for MRC Industries, a nonprofit entity that provides employment opportunities for people with disabilities. He is also treasurer of the Kalamazoo Valley Community College Foundation board. 䡲 — Daniel Duggan

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SPECIAL REPORT: CFO AWARDS

WINNER: Private companies, under $100 million in revenue

Shawn Peralta Secure-24 Age: 53 Claim to fame: Taking on cultural changes at Secure-24 beyond just minding the financials. By Doug Henze Special to Crain’s Detroit Business

hen Shawn Peralta was recruited as CFO of Southfield-based Secure-24, he brought financial changes — and cultural changes. Example: Employees at the IP hosting company now don’t spend time worrying whether they’ll have enough vacation days left should a personal emergency arise. “If you need time off, you just take it,” Peralta said. “You get as much time off as you need because we know people are working hard.” Putting workers on a vacation day honor system — meaning no one is tallying time off — was one of the changes Peralta brought when the equity group Pamlico Capital recruited him in 2012 to turn the family business it had acquired into

FINALIST: Private companies, under $100 million in revenue

Don Piper Arch Global Precision LLC Age: 55 Claim to fame: Worked on the acquisition of five companies in five months.

on Piper, CFO of Arch Global Precision LLC in Livonia, has been handling the books as the company goes on a tear of acquisitions. During a five-month period stretching from last year to this year it absorbed five machining and tooling companies in five months. And that’s driving revenue growth as well. The company, which has 440 employees, saw its 2014 revenue of $88.7 million up from $48 million in 2012. More of that is expected this year as the company projects $125 million in revenue. Piper’s job of integrating these companies never ends. “Hectic would be putting it mildly,” Piper said of the work. “I’ve been involved with some M&A activity over my career, but certainly not as indepth and on the frontline with purchases as I’ve been with Arch.” He’s also in the middle of things beyond accounting. He works with

a global leader in private “cloud” services. Using three data centers, the company hosts data storage systems such as Oracle’s so customers don’t have to invest in equipment and in-house expertise. Secure-24 has about 150 customers with annual revenue ranging from $100 million to $15 billion. Peralta and CEO Mike Jennings have targeted employee well-being as a way to keep their business running smoothly. “We’ve been very innovative on the people side,” Peralta said. The company doesn’t require employees to pay health care premiums, for example. And it started operations in India to assist weary IT workers in the U.S. rather than as a way to cut costs using cheaper labor. “When we got here, the reason people left is because of quality of life,” Peralta recalled. While the company culture was nurturing to employees, burnout from the 24-hour customer support cycle was a problem. In the past, if Secure-24 was running an application for a customer and that application had a problem overnight, on-call employees would have to deal with it. “We felt if you could build India as a third shift, our people, when they went home at night at 6 o’clock or 7 o’clock, didn’t have to sit by the phone and wait for calls,” Peralta said. Indian workers, in a different time zone, often can resolve the problems behind the

scenes. Addressing quality-of-life issues as well as putting new procedures in place to allow for growth was the way Peralta helped take Secure-24 from an organization with $54 million in revenue in 2012 to a $73 million company in 2014. In the same period, the number of employees increased to 485 from 321. “When we came on board, they were pretty lean and mean,” Peralta remembered. “We added a bunch of people in 2012 and got it to the right size.” Peralta and Jennings took a “do no harm” approach — trying to preserve the culture of a solid company while gearing up for expansion. “I came on board and built that structure so we could grow,” Peralta said. “They never had a CFO before.” Peralta, who has worked for companies including Penske Corp. and Covansys Corp., transitioned Secure-24 from spreadsheet reporting to sophisticated financial software and realigned many departments. He also put in place an aggressive marketing program, hired a general counsel to manage the heavy contract load and created a human resources department to recruit talent. Peralta is a contributor to philanthropic groups and allocates funding for causes important to employees. Beneficiaries have included the American Red Cross, Holocaust Memorial Center, Gleaners Community Food Bank, Judson Center and Boys Hope Girls Hope. 䡲

the president and human resources director to bring newly acquired companies into the fold, helping their staffs set up common strategic, administrative and human resources procedures. He oversees 11 controllers and eschews top-down management styles, saying his philosophy is to

trust them and avoid micromanaging. This allows team members to feel a sense of ownership in their jobs and responsibilities. Integrating companies of $10 million in annual revenue into a larger organization can be rough and involves some hand-holding. He said the key is communicating, repeatedly, the strategic objectives. “We go to great lengths to acclimate people to Arch’s culture.” 䡲 — Gary Anglebrandt

Nominees sought for Health Care Heroes Crain’s Detroit Business is seeking nominations for Health Care Heroes, a special report on health care professionals that will run in the Aug. 17 issue. The program will honor top-notch medical innovators and patient advocates dedicated to saving lives or improving access to care. Winners will be chosen in five categories:

䡲 Corporate achievement in health care: Honors a company that has created an innovative health benefits plan or solved a problem in health care administration. 䡲 Advancements in health care: Honors a company or individual responsible for a discovery or for developing a procedure, device or service that can save lives or improve quality of life. 䡲 Physician: Honors a physician whose performance is considered exemplary. 䡲 Allied health: Honors an individual from nursing or allied health fields who is deemed exemplary by patients and peers.

䡲 Trustee: Honors leadership and distinguished service on a health care board. A panel of health care judges will choose the winners. Questions? Contact Jay Greene at (313) 446-0325 or jgreene@crain.com The deadline for nominations: Monday, June 22

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CRAIN’S DETROIT BUSINESS // May 25, 2015

SPECIAL REPORT: CFO AWARDS

WINNER: Rising star

Sheryl Madden The Kresge Foundation Age: 39 Claim to fame: Being in the middle of the action at a foundation that’s been a catalyst for Detroit’s rebound.

o gain experience in the world of private foundation work, Sheryl Madden couldn’t have chosen a better time than present-day Detroit. As controller at Troy-based Kresge Foundation for six years, Madden has had an inside view to historic developments in the city.

FINALIST: Rising star

Simon Leopold Taubman Centers Inc. Age: 47 Claim to fame: Leading Taubman Centers’ efforts over the past 2 ½ years to sell more than $2 billion in assets, including last year’s $1.4 billion sale of Fairlane Town Center and The Mall at Partridge Creek to Starwood Capital Partners Inc. in a seven-property deal.

imon Leopold is pure New York City, born and raised in the Big Apple. But raising a

Kresge backs many Detroit efforts, including redevelopment of the riverfront and Eastern Market. It also is a leading backer of M-1 Rail, and Madden is on the audit and finance committee, allowing her to see the financial acrobatics taking place to bring that project to life. She didn’t foresee all this when she joined Kresge after 11 years at Plante Moran. She took the job right as Kresge, a $3.5 billion foundation, was changing course. It began funding grantees’ operations, as opposed to the traditional supplying of grants for one-time projects. Kresge now also provides

low-interest loans, loan guarantees, linked deposits and equity investments as part of its new social investing focus. Social investing pushed the foundation into more complex tax and financial reporting requirements. Madden built from scratch the new accounting and finance systems, policies and procedures needed to go along with new activities like collecting interest payments. “There was no infrastructure to support that on the accounting and finance side,” Madden said. In the early stages of Kresge’s shift in direction, there wasn’t much reporting guidance from the Internal Revenue Service on how to report social investment activities. Kresge’s

accountants worked closely with its lawyers to reduce chances of running afoul of little-used rules. Its early experience became useful know-how for others. “A lot of organizations were calling us, saying, ‘How do you do it?’ ” Madden said. That was a new experience for Madden, coming from the world of public accounting where she usually dealt with corporations. Calling a competitor to ask for help wasn’t part of the job. Among foundations, there’s more common cause. “We’re very communal. We don’t want people to have to recreate the wheel,” Madden said. Along with the changes at Kresge has come growth. The foundation’s staff count has doubled to 90

employees in the past 10 years, and this too prompted the need for restructuring the books and policies to handle the larger staff. Madden was the point person for building these policies and procedures. Madden also is an ambassador for the Detroit Zoo, among other volunteering activities, and is a member of Inforum. The switch from standard public accounting work to private foundation work has given Madden an experience that doesn’t come along every day. “Coming into it has been an honor,” she said, “to be able to see these things happening, take part and assist wherever I can.” 䡲

family of his own in Brooklyn isn’t the easiest of tasks. So Leopold, the 47-year-old senior vice president of capital markets and treasurer of Taubman Centers Inc. (NYSE: TCO), jumped at the opportunity to return close to the area where he received his bachelor’s degree at the University of Michigan. “I wanted to be in a great position like this, and it really met all the boxes,” he said. Leopold now finds himself

taking on the hefty kind of duties that a CFO would undertake. He has coordinated several massive asset dispositions for the Bloomfield Hills-based shopping mall developer, including the sale of Fairlane Town Center and The Mall at Partridge Creek in a $1.4 billion, seven-property deal. “It made sense to try to take advantage of a really hot sales market,” Leopold said. “That ended up being my responsibility to execute. We went out to all the buyers that we thought would make some sense.” That was one of three large deals Leopold orchestrated, with the

others being the sale of Taubman’s 50 percent interest in Arizona Mills in Tempe, Ariz., and land in Oyster Bay, N.Y., for $230 million to Simon Property Group and a 49.9 percent stake in International Plaza in Tampa, Fla., for $499 million to TIAA-CREF and APG. Leopold sees himself as the quarterback on major transactions. “Similar to Starwood, once we decided to go forward with the sales, it was put in my lap to make sure everything happened, from marketing to closing,” he said. The sales are part of Taubman’s strategy to leverage capital for growth, distribute a special

dividend to shareholders and minimize the need to raise equity. Before joining Taubman, which reported $679 million in revenue last year, Leopold was an investment banker for 13 years with Deutsche Bank AG; Keefe, Bruyette & Woods; and UBS AG and also spent time in New York City government in the mayor’s office, planning department and economic development corporation. “It had never been on my radar that I was going to move back to the area,” he said, “but when the opportunity came up, I was comfortable.” 䡲

— Gary Anglebrandt

— Kirk Pinho

Get in on the

conversation

Shifting gears

A blog covering the faces and ﬁnances of the automotive supply base and higher education by Dustin Walsh.

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CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // May 25, 2015

CRAIN'S LIST: TOP-COMPENSATED CEOS

" # 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

Photos of top-compensated CEOs at crainsdetroit.com/CEOpay

" $

" $ $

% $

"% $

$22,042,128 $23,204,534

$1,000,000 $2,000,000

$0 $1,960,000

$10,237,495 $10,912,488

$3,185,000 $3,920,000

$3,869,639 $662,050

$3,749,994 $3,749,996

$3,186,000,000 $7,175,000,000

18,596,497 10,170,578

1,662,500 1,537,500

0 996,000

3,412,489 3,637,492

6,832,336 2,604,000

439,178 145,591

6,249,994 1,249,995

3,186,000,000 7,175,000,000

Joseph Welch ITC Holdings Corp.

16,355,598 8,907,994

1,012,182 977,686

2,314,262 723,308

1,862,578 1,790,870

10,015,213 4,084,320

375,715 538,739

775,648 793,071

244,083,000 233,506,000

Mary Barra General Motors Co.

16,162,828 5,233,140

1,567,803 750,000

0 0

11,760,567 4,446,504

2,421,926 0

412,532 36,636

0 0

2,804,000,000 3,770,000,000

Rodney O'Neal Delphi Automotive plc

14,874,931 12,018,049

1,300,000 1,248,142

500,000 500,000

9,498,579 7,685,494

3,304,171 2,366,936

272,181 217,477

0 0

1,440,000,000 1,301,000,000

Alan Mulally Ford Motor Co.

Retired on July 1, 2014.

Mark Fields Ford Motor Co. Succeeded Alan Mulally July 1, 2014.

Retired March 1, 2015, succeeded by Kevin Clark.

Gerard Anderson DTE Energy Co.

12,604,355 9,147,821

1,243,269 1,218,269

0 0

6,149,900 5,470,600

5,083,351 2,324,708

127,835 134,244

0 0

911,000,000 668,000,000

Matthew Simoncini Lear Corp.

12,174,443 10,802,368

1,290,000 1,245,208

0 0

7,099,775 6,859,832

3,230,217 2,415,000

554,451 282,328

0 0

672,400,000 431,400,000

John Russell CMS Energy Corp.

11,451,273 6,817,007

1,110,000 1,075,000

0 0

3,618,055 3,089,631

6,677,333 2,608,825

45,885 43,551

0 0

477,000,000 452,000,000

James Verrier BorgWarner Inc.

10,005,230 8,146,556

967,500 870,000

0 0

5,872,638 4,849,270

2,637,175 2,106,918

527,917 320,368

0 0

655,800,000 624,300,000

Mark Malcolm Tower International Inc.

9,499,325 3,051,009

840,000 840,000

0 0

7,191,895 378,004

1,428,630 1,794,366

38,800 38,639

0 0

21,516,000 (20,275,000)

David Dauch American Axle & Manufacturing Holdings Inc.

9,349,318 6,330,397

1,100,000 1,033,333

0 0

4,454,330 1,750,002

3,719,799 3,430,673

75,189 116,389

0 0

143,000,000 94,500,000

Rob Chioini Rockwell Medical Inc.

8,511,639 2,255,560

706,320 588,600

635,688 353,160

2,786,000 394,000

0 0

20,131 21,000

4,363,500 898,800

(21,327,157) (48,783,312)

Patrick Doyle Domino's Pizza LLC

7,453,021 9,548,617

915,481 870,694

0 0

2,159,554 2,585,580

2,255,150 2,321,826

457,672 379,491

1,665,164 3,391,026

162,600,000 143,000,000

Sergio Marchionne FCA US LLC

7,179,000 307,989

3,040,000 0

4,000,000 0

0 200,000

0 0

139,000 107,989

0 0

1,202,000,000 2,757,000,000

Ivor Evans Meritor Inc.

6,553,615 2,790,377

1,000,000 517,667

0 0

4,199,999 1,292,666

1,252,333 967,391

101,283 12,653

0 0

249,000,000 (22,000,000)

Succeeded by Jeffrey Craig April 29, 2015; became executive chairman.

Robert Taubman Taubman Centers Inc.

6,040,951 4,573,656

901,765 875,500

0 0

2,733,108 2,234,932

1,000,000 1,422,688

31,060 40,536

1,375,018 0

1,278,122,000 189,368,000

Douglas Stotlar Con-way Inc.

5,369,702 3,790,125

798,086 798,086

0 0

2,310,302 2,300,591

2,145,922 546,582

115,392 144,866

0 0

137,039,000 99,153,000

Roger Penske Penske Automotive Group Inc.

5,180,298 5,105,569

1,200,000 1,200,000

0 0

3,600,000 3,600,000

0 0

380,298 305,569

0 0

286,700,000 244,200,000

Keith Allman Masco Corp.

4,750,833 NA

842,788 NA

0 NA

584,229 NA

1,858,628 NA

178,638 NA

1,286,550 NA

NA 272,000,000

Succeeded Timothy Wadhams on Feb. 14, 2014.

David Wathen TriMas Corp.

3,957,700 3,801,400

731,900 710,500

0 165,000

2,543,500 2,227,600

518,700 546,400

163,600 151,900

0 0

69,280,000 80,070,000

Timothy Leuliette Visteon Corp.

3,867,862 4,448,249

1,184,500 1,167,250

0 0

1,673,106 2,842,800

1,010,256 438,199

0 0

(295,000,000) 690,000,000

Carl Camden Kelly Services Inc.

3,754,332 4,031,479

1,000,000 1,000,000

0 0

1,229,600 1,594,400

1,404,000 1,274,000

120,732 163,079

0 0

23,700,000 58,900,000

Jeffrey Edwards Cooper-Standard Holdings Inc.

3,583,334 2,429,411

824,808 800,000

0 0

1,536,536 416,223

414,525 562,104

139,479 93,470

667,986 557,614

102,804,000 47,941,000

Daniel Coker Gentherm Inc.

3,002,615 2,413,706

565,000 530,400

1,017,060 550,000

471,060 573,000

335,550 355,000

61,145 38,746

552,800 366,560

70,119,000 33,820,000

Edward Christian Saga Communications Inc.

2,669,480 2,592,970

929,066 902,006

0 0

1,147,606 913,270

450,000 650,000

142,808 127,694

0 0

14,904,000 15,273,000

To step down by the end of 2015.

Top compensation for CEOs at publicly held companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Incentive plan/retirement column is total of nonequity incentiveplan compensation, nonqualified deferred compensation and change in pension value. NA = not available. TRW Automotive CEO John Plant, who was the top-paid CEO in 2013, does not appear on this list because the company was acquired by ZF Friedrichshafen AG, effective May 15, 2015. TRW was not required to file a proxy statement. LIST RESEARCHED BY BRIDGET VIS AND SONYA D. HILL

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CRAINâ&#x20AC;&#x2122;S DETROIT BUSINESS // May 25, 2015

CRAIN'S LIST: TOP-COMPENSATED NON-CEO EXECUTIVES

" # Rank

" $

" $ $

% $

$15,110,695 $11,955,829

$2,000,000 $2,000,000

$0 $560,000

$4,777,493 $5,092,491

$5,337,336 $1,120,000

$1,245,870 $1,433,341

$1,749,996 $1,749,997

William Clay Ford Jr. executive chairman and president Ford Motor Co. and William and Lisa Ford Foundation

Mark Reuss executive VP, global product development, purchasing and supply chain General Motors Co.

9,477,777 NA

846,212 NA

0 NA

7,458,881 NA

1,061,888 NA

110,796 NA

0 NA

Daniel Ammann president General Motors Co.

8,489,346 5,261,881

990,530 750,000

0 0

6,310,564 4,481,562

925,000 1,844

263,252 28,475

0 0

Timothy Wadhams 8,134,039 Retired president and CEO, member of the board of directors 9,218,460 Masco Corp. Retired in February 2014; succeeded by Keith Allman.

330,769 1,000,000

0 0

2,459,946 2,040,072

5,205,821 2,460,000

137,503 319,748

0 3,398,640

Kevin Clark COO Delphi Automotive plc Succeeded Rodney Oâ&#x20AC;&#x2122;Neal on March 1, 2015.

6,576,067 6,716,766

825,000 800,000

500,000 500,000

3,938,805 4,327,101

1,180,875 984,000

131,387 105,665

0 0

Bob Shanks executive VP and CFO Ford Motor Co.

6,320,646 4,089,621

798,750 772,500

267,450 0

2,183,995 1,745,994

2,186,713 889,339

83,743 81,789

799,995 599,999

Joseph Hinrichs executive VP and president, the Americas Ford Motor Co.

6,092,630 4,409,949

936,250 853,750

135,000 126,800

2,183,995 1,745,994

1,958,145 963,200

79,245 120,206

799,995 599,999

Michael Millikin executive VP and general counsel To retire in July 2015. General Motors Co.

5,765,531 NA

692,235 NA

0 NA

4,127,946 NA

826,684 NA

118,666 NA

0 NA

832,702 725,518

35,307 42,900

4,150,000 1,178,560

429,047 552,176

91,726 24,187

0 0

Prashant Ranade 5,538,782 executive vice chairman 2,523,341 Syntel Inc. Succeeded as CEO by Nitin Rakesh on April 21, 2014. Karl-Thomas Neumann 5,269,426 executive VP; president, Europe 5,808,330 General Motors Co.

822,133 684,029

0 0

3,701,727 3,698,075

723,799 75,754

21,767 1,350,472

0 0

Charles Stevens III executive vice president and CFO General Motors Co.

4,894,832 NA

691,667 NA

0 NA

3,177,354 NA

912,701 NA

113,110 NA

0 NA

David Meador vice chairman and chief administrative officer DTE Energy Co.

4,777,269 2,906,669

659,077 634,615

0 0

1,630,760 1,409,484

2,406,746 775,000

80,686 87,570

0 0

Raymond Scott executive VP and president, seating Lear Corp.

4,754,866 4,209,079

828,223 818,172

0 0

2,280,005 2,219,401

1,375,526 992,327

271,112 179,179

0 0

James Farley executive vice president - global marketing sales and service Lincoln Ford Motor Co.

4,494,764 4,261,225

868,750 843,750

0 0

1,979,244 1,745,994

800,000 955,000

121,776 116,482

724,994 599,999

Terrence Larkin executive VP, business development, general counsel and corporate secretary Lear Corp.

4,435,517 4,191,397

828,223 818,172

0 0

2,280,005 2,219,401

1,078,616 992,327

248,673 161,497

0 0

Steven Kurmas president and COO DTE Energy Co.

4,410,203 3,266,894

623,077 568,269

0 0

1,727,500 1,261,456

1,974,334 1,350,886

85,292 86,283

0 0

Jeffrey Craig 4,117,652 senior VP; president, commercial truck and industrial 1,300,344 Meritor Inc. Succeeded Ivor Evans as CEO on April 29, 2015.

575,457 541,574

0 0

2,300,007 260,010

1,145,673 404,675

96,515 94,085

0 0

James Spencer executive VP, operations; president, Delphi Latin America Delphi Automotive plc

4,080,252 6,243,494

700,000 690,833

0 0

2,018,489 4,531,259

1,242,445 861,000

119,318 160,402

0 0

John Sznewajs VP, treasurer and CFO Masco Corp.

4,047,315 2,514,697

618,269 552,500

0 0

707,260 540,558

2,102,222 707,300

95,414 110,414

524,150 603,925

Jeff Vanneste senior VP and CFO Lear Corp.

3,997,834 3,530,262

708,268 683,633

0 0

1,937,944 1,867,397

1,120,628 829,150

230,994 150,082

0 0

Gerald Volas group president, North American Diversified Businesses Masco Corp.

3,902,715 NA

507,442 NA

0 NA

614,930 NA

2,369,115 NA

65,765 NA

345,463 NA

Majdi Abulaban senior VP and president, Delphi electrical/electronic architecture and Delphi Asia Pacific Delphi Automotive plc

3,681,517 2,914,143

621,250 481,250

0 0

1,424,843 992,749

693,874 523,628

941,550 916,516

0 0

Frank Orsini senior VP, and president, electrical Lear Corp.

3,673,068 NA

683,073 NA

0 NA

1,807,292 NA

1,021,859 NA

160,844 NA

0 NA

Thomas Webb executive VP and CFO, CMS and Consumers Energy CMS Energy Corp.

3,663,104 2,140,056

685,000 685,000

0 0

913,643 854,024

2,033,876 571,521

30,585 29,511

0 0

Mark Murphy CFO and executive VP Delphi Automotive plc

3,494,001 NA

207,576 NA

750,000 NA

2,085,477 NA

229,475 NA

221,473 NA

NA NA

Top compensation for non-CEO executives at publicly held companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Incentive plan/retirement column is total of nonequity incentive-plan compensation, nonqualified deferred compensation and change in pension value. NA = not available. TRW Automotive executives are not represented on this list because of TRW's acquisition by ZF Friedrichshafen AG. LIST RESEARCHED BY BRIDGET VIS AND SONYA D. HILL

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CRAIN’S DETROIT BUSINESS // May 25, 2015

CALENDAR THURSDAY MAY 28

Business Transitions Seminar. 811:30 a.m. Rua Associates. Moderator: Mary Van Skiver of Rehmann Group; panelists: Randy Rua, president, Rua Associates; Greg Light, principal, Rehmann Group; John Carter, principal, Insyght Legal PLC; Ryan Kroge, vice president and senior SBA lending specialist, Huntington Bank. Rehmann-Troy Office, Troy. $25 at eventbrite.com. Email: marketing@ruaassociates.com. Phone: (616) 741-9344. Website: ruaassociates.com/ newsandinsights. Summit on Information Technology and Cybersecurity. 8 a.m.-2:30 p.m. Schoolcraft College. Elevate the role and awareness of Michigan’s IT and cyber communities at the local, state and federal levels. VisTaTech Center, Schoolcraft College, Livonia. $75. Contact: Alexander Masters, (734) 462-4438; email: amasters@schoolcraft.edu. Website: schoolcraft.edu/ news-and-events. Zingerman’s 12 Natural Laws of Business. 11:30 a.m.-1:30 p.m. Washtenaw Economic Club. Ari Weinzweig, CEO, Zingerman’s, will share the approach to business that has led to Zingerman’s success, including the natural laws of business as introduced in his book, Zingerman’s Guide to Good Leading: Part 1, A Lapsed Anarchist’s Approach to Building a Great Business. Washtenaw Community College, Morris Lawrence Building No. 104, Ann Arbor. $77.50 nonmembers. Preregistration is required at washtenaweconclub.org. Tickets will not be available at the

Crain’s 2015 General & In-House Counsel Summit Crain’s fifth annual General & In-House Counsel Summit will feature keynote speaker John Dean, former counsel to President Richard Nixon. Dean’s most recent book — The Nixon Defense:What He Knew and When He Knew It — is a cautionary tale of mistakes that could have been avoided, much like the legal issues organizations grapple with daily. Also included in the summit are educational sessions on managing the ups and downs of the business cycle, what your CFO wants you to know, e-discovery and cybersecurity. The event is 2-7:30 p.m. June 10 at the Westin Book Cadillac, 114 Washington Blvd., Detroit. Tickets are $150 in advance or $140 each for groups of 10 or more. Preregistration closes at 9 a.m. June 8. If available, walk-in registration will be $170 per person. For information, contact Kacey Anderson at (313) 446-0300, email cdbevents@crain.com or visit crainsdetroit.com/events. door. Phone: (734) 973-3637; email: washtenaweconclub@ wccnet.edu. Website: washtenaweconclub.org.

UPCOMING EVENTS Inclusive Nonprofit Workplaces. 8:30 a.m.-4 p.m. June 3. Michigan Nonprofit Association. Presentations by local nonprofit experts, panel discussions on developing inclusion strategies with Stephen

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FINANCE

Henderson of the Detroit Free Press, and a keynote presentation by inspirational speaker Steve Robbins. McGregor Memorial Conference Center, Wayne State University, Detroit. $75 members, $115 nonmembers. Register: www.cvent.com/d/7rq1lc.

MEDIA 5th Annual Compensation and Benefits Conference. 8 a.m.-noon June 9. American Society of Employers. A look into pay and benefit trends,best practices in compensation and benefits; and ways to impact the bottom line. $89 ASE members; $119 nonmembers. VisTaTech Center, Schoolcraft College, Livonia. Contact: Kevin Marrs, (248) 223-8025; email: kmarrs@aseonline.org. Michigan Marketing Minds - International Marketing Momentum. 5-7 p.m. June 9. Ann Arbor Spark. Panelists share the best practices for marketing across borders. Moderator: Paul Koch, creative strategist, Q LTD; panelists: Jimmy Hsiao, CEO, Logic Solutions; Francis Glorie, entrepreneur in residence, TechTown; Julie Oldham, Small Business Development Council. Ann Arbor Spark, Ann Arbor. Free. Email: alissa@annarborusa.org; website: annarborusa.org.

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Bob Lawrence to vice president and group program director, Saga Communications Inc., Grosse Pointe Farms, from president and CEO, Pinnacle Media Worldwide, Bonsall, Calif. Michael Brady to senior vice president, government affairs, Comcast Corp., Plymouth, from vice president of government and regulatory affairs.

SERVICES Elizabeth Gardiner to project manager and performance consultant, Innovative Learning Group Inc., Royal Oak, from director of education, Gardiner training and development, Kaufman Financial Group, Farmington Hills.

Calendar guidelines. Visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events.

Grozenski

Eric Grozenski to business development officer, Loeb Term Solutions LLC, Royal Oak, from assistant vice president, sales and marketing, RMP Capital Corp., Islandia, N.Y.

ON THE MOVE Send news items and photos to cdbdep

artments@crain.com Send news items and photos to cdbdepartments@crain.com

SPOTLIGHT JEFFREY CRAIG, CEO, Meritor Jeffrey Craig has been named CEO of Meritor Inc. in Troy. He takes over for Ivor Evans, who has been appointed executive chairman. Craig, 54, has been COO and president at the auto supplier since 2004. He retains the role of president. Craig Craig served as senior vice president and CFO at Meritor from 2009 to 2013 and has held various positions at the company since 2006. He was president and CEO of General Motors Acceptance Corp.’s Commercial Finance organization from 2001 to 2006. He holds a bachelor’s degree in accounting from Michigan State University and an MBA from Duke University in Durham, N.C. People on the Move announcements are limited to management positions. Email cdbdepartments@crain.com. Include person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former city in which the person worked. Photos are welcome, but we cannot guarantee they will be used.

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ARTIST, from Page 3: Painter returns to seek buyer for collection from departing law firm Detroit’s salt mine chapel, the artist explained, “is a magical thing and nobody knows about it. Imagine my art being in the same darkness ... nobody knows where it is.” He’s been quietly working to change that. After hearing that Charfoos & Christensen is preparing to move out of the mansion and to Royal Oak, Szabo flew from his North Carolina home to Detroit in March to meet with one of the firm’s partners, David Christensen, who now owns the paintings. Szabo feared that the paintings could be sold individually as the law firm and partners move their corporate home and sell off or relocate assets. The works, which also feature well-known Detroit scenes such as the fireworks along the Detroit River, Eastern Market and Belle Isle — and famous sports figures and scenes — “are the life of Detroit ... a part of the history of Detroit,” said Szabo, director of the Balazs Artist Discovery Museum of North Carolina. “It’s like a book — that experience of the eight murals was one experience expressed in eight chapters. It makes more sense than being torn apart.” Christensen agrees. And despite the fact that he could make more if he sold the paintings individually (for at least $85,000-$90,000 each, by Szabo’s estimates), he agreed to

On the Web. The online version of this story includes a gallery of artwork, crainsdetroit.com/toc

turn over negotiations for the sale of the paintings to Szabo. And he signaled that he’d be willing to take about $200,000 for all eight. Christensen “left me with the challenge of trying to find a corporation or patron who would be interested in ... purchasing (these works) and having them in a public place so all of Detroiters ... could enjoy them for generations to come,” Szabo, 72, said. And, yes, he’s already approached Bedrock Real Estate Ser vices LLC and the two are talking, the company confirmed. As Crain’s reported last week, Charfoos & Christensen is preparing to move to new offices in Royal Oak

[FROM “BALAZS, THE EYE OF MUSE”]

“Eastern Market,” a 1977 oil painting by Balazs Szabo,captures the sights of Detroit’s popular historic market. by the end of June after selling its home since 1992, the historic Hecker-Smiley Mansion in Detroit’s Midtown area, to Wayne State University in September for $2.3 million. Szabo’s Detroit paintings have hung at the 21,000-square-foot mansion since the firm acquired it in 1991. Before that, they hung at its offices on the 40th and 41st floors of the Penobscot Building , Christensen said. He and other partners at the time — such as former Detroit Mayor Dennis Archer — took Szabo to see their favorite things in the city as part of the inspiration for the works. Those experiences inspired the oil paintings, most measuring 9 feet by

6 feet, but one, “Detroit Docks” stretches to 14 feet by 6 feet. Christensen’s favorite is “Belle Isle,” which hangs over a staircase at the mansion. Christensen can’t recall if he took Szabo to the island during his time in Detroit, but he very well could have, given that he used to run there during the 1970s, he said. Sadly, the paintings are too large for the firm’s new offices and certainly for his home, he said. “I’ve decided to put my trust in Balazs,” Christensen said. “I like his concept: the idea of (the paintings) being in a public place ... and I’ve agreed that’s the price range I could endorse.”

“I’m going to listen to Balazs as far as negotiating for those paintings.” The series of Detroit paintings by Balazs “are beautifully done and wonderfully executed,” said Robert DuMouchelle, general manager and auctioneer of DuMouchelle Art Gal leries Co. in Detroit.“We would be glad to present them if they come up. We love Detroit themes, and the artist definitely has great skills. ” There are also other works of art at the Hecker-Smiley Mansion that Christensen said he acquired from former partner Lawrence Charfoos several years ago. The pieces include “some Picassos” and a piece by Russian-French artist Marc Chagall, an early modernist artist who worked in virtually every artistic medium, as well as a sculpture by famed cubist artist Jacques Lipchitz that was put up for auction last weekend at DuMouchelle but did not sell. It’s OK if some works don’t sell, Christensen said. “My wife, frankly, wants some of the art at home, and I’ve got seven law offices in the new building that are going to need art,” he said. “And the art market’s a pretty sophisticated market, so I’ll rely on (DuMouchelle or) another broker to figure out what to do. I’m not in a hurry to make those decisions.” 䡲 Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

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LIONS, from Page 3: New premium club served for MGM to use for whatever use it chooses, and the casino has a suite at the stadium where its Tunnel Club users will watch games. The remaining spots in the club will be sold by the team. The Lions are installing about 70 additional seats, akin to club seats, as a separate row across the bottom of the west end zone in the seating bowl for Tunnel Club ticket buyers. Those seats will have direct access to the tunnel club, which will be limited only when the teams are coming on or off the field as a group. “When you talk about experiences money can’t buy, now you can buy it,” Martin said. The club will open three hours before kickoff, an hour earlier than regular ticket holders can get into the stadium, the team said. Food and drinks in the club will be provided by Ford Field’s concessionaire, Levy Restaurants. The access price includes unlimited food, soda, beer and wine, but not cocktails. There will be cash bars for those. The club, tickets for which go on sale this week, will be open by the first preseason game in August. Details are available by emailing premium.suites@lions.nfl.net. The architect is Durham, N.C.based Alliance Architecture, and the general contractor is Troy-based The Alan Group . Both worked on the Breadstick Bar and Bistro at Ford Field that opened in 2014. Discussions between the Lions and the casino about doing something beyond signage in the stadium dates back about two years. MGM will use the club as part of its loyalty rewards program, and for wining-dining business relationships, said MGM Grand Detroit President and COO Steve Zanella. “This is kind of like behind-thescenes exposure,” he said. Industry observers are impressed by what the Lions are doing with the club concept and access to players. “With clubs across all sports seeking to find new ways to reach premium sales for fans, this unique partnership between the Lions and MGM Casino that puts fans as close as any before to the players sets a new bar for others to achieve. There has been nothing this unique in some time,” said Maury Brown, president of Portland, Ore.-based Business of Sports Network. But the ability for the casino to do such a deal with the Lions is possible only because the National Foot ball League in the past decade has relaxed many of its strictures on business deals with casinos and gambling-related businesses. The club also represents the Lions’ emphasis on premium sales and experiences during games. For example, it has a deal with Quicken Loans for a seating area that features leather chairs and TVs, and a club level dining area with food from metro Detroit eateries. 䡲 Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

New plan for roads could end funding for Pure Michigan By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine

A plan by lawmakers to shift more than $100 million earmarked for economic development to pay for roads could wipe out funding for state programs such as the Pure Michigan tourism campaign, administrators said Friday. A House panel Tuesday will hear testimony on bills — including House Bills 4607 and 4608 — that

would divert $135 million from the state’s 21st Century Jobs Fund and tribal gaming compacts into road projects. The legislation is part of a 12-bill package proposed by House Speaker Kevin Cotter, RMount Pleasant, as the GOP’s alternative road-funding plan. The key bills are: 䡲 HB 4607 would divert $75 million in tobacco settlement revenue.

䡲 HB 4608 would reallocate $60 million in tribal gaming revenue now sent to the Michigan Economic Development Corp . Those dollars pay for such programs as Pure Michigan Business Connect, which matches companies with potential Michigan-based vendors. Cotter’s plan also called for using $50 million from the state’s film incentives program. “While we understand that

roads are an important issue to the state, this reduction in FY16 funding severely limits the state’s ability to have an economic development strategy moving forward,” MEDC CEO Steve Arwood said in a statement. Arwood is scheduled to testify Tuesday before the roads committee . 䡲 Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle

THREE LEAF, From Page 3: Denver firm opens VC arm in Ann Arbor He said Three Leaf generally invests between $500,000 and $2 million in a deal, but will go as low as $100,000 to fund startups and as high as $5 million. He said Three Leaf chose Ann Arbor for its first satellite office because of the strong research capabilities at the University of Michigan and proximity to health systems. “We’re evolving from a focus in Silicon Valley and the West Coast,” said Kearney. “Why Ann Arbor? Because we want to be involved with close investment communities (and) having spent a great deal of my life in the Midwest, I have a strong network and am able to leverage those relationships.” Kearney said he has been impressed by research and innovation he has already seen here, in

particular the way UM’s Mott Children’s Hos pital has been using 3D printing to treat patients. Kearney talked to Crain’s Sean Kearney: Wednesday Evolving from West after speaking Coast focus. on a panel in investment opportunities in the Midwest, a panel moderated by Adrian Fortino, who last year opened up the Ann Arbor office of another out-of-state firm, the Houston-based Mercury Fund. Three Leaf Ventures will be an exception to the rule when it comes to out-of-state firms coming here. Since it represents family

money, it doesn’t take on limited partners, and is coming here without need of the incentive of getting funding from one or more Michigan-based programs or funds. At least 11 out-of-state VC firms have opened state offices after getting money from such state funds as the 21st Century Investment Fund or the Venture Michigan I and II funds, or from Ann Arbor-based Renaissance Venture Capital Fund , which invests in VC firms willing to look at deals here. They include Venture Investors LLC of Madison, Wis.; Arsenal Ven ture Partners of Winter Park, Fla.; Chrysalis Ventures of Louisville, Ky.; Early Stage Partners of Cleveland; Fletcher Spaght Ventures of Boston III; Baird Capital of Chicago; Culti vian Sandbox Ventures of Chicago;

MK Capital of Chicago; Flagship Ventures of Boston; Draper Triangle Ventures of Pittsburgh; and Mercury. “It certainly is good news that another well-regarded national investor sees an opportunity in Michigan,” said Chris Rizik, the CEO and fund manager at Renaissance Venture Capital. One of Three Leaf’s portfolio companies is Scanadu, a company in Mountain View, Calif., that makes portable diagnostic devices that use smartphone apps. It recently raised a B funding round of $35 million, led by two Chinese investment firms. Another is San Francisco-based Invitae, a molecular diagnostics firm that had a February IPO of about $102 million. 䡲 Tom Henderson: (313) 446-0337 Twitter: @TomHenderson2

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Purchase deal for 6 streetcars for M-1 Rail nears completion M-1 Rail’s long process to acquire six streetcars is nearing its end. The project announced in November that it was entering into negotiations with Czech rail car manufacturer Inekon Trams for six custom streetcars at a total cost of $30 million. A contract is expected to be worked out in the next two to three weeks, M-1 COO Paul Childs said, and the streetcars would be delivered in later 2016. That would bring to a close the process of acquiring the vehicles that dates back two years. Under M-1’s original timeline, bids for the design, engineering and manufacture of six streetcars were due in October 2013, and a preferred vendor was to be chosen by November of that year. A contract was supposed to have been done by Dec. 21, 2013. M-1 said the delays were because of the talks with the streetcar vendors but did not disclose specifics. Scott Anderson, a longtime transit researcher from the University of Detroit Mercy’s College of Engineering and Science who was a member of the team that developed the initial concept that became M-1 Rail,

said the delay stemmed from M-1’s decision to buy streetcars that can operate both on and off an aerial electrical power grid, making them relatively unique vehicles. That means M-1 couldn’t piggyback onto another city’s in-process streetcar order — which reduces cost and turnaround time — because federal purchasing regulations require the piggybacked cars to be exactly the same. “That’s what set them back, and once you have to go into the design process with vendors, two years is about the timing of it,” he said. Childs called the acquisition process complex and termed streetcars a “niche market” that makes such deals unique. “It’s not like a car on the showroom floor,” he said. “There isn’t an inventory of vehicles sitting around for someone to buy.” M-1 is limited in what it can say during negotiations because of federal contract regulations, he said, so that they “don’t bias the outcome in any way. These are not trivial contracts to put together.” The vehicles will undergo testing

and certification, and M-1 itself must qualify for state and federal certifications to operate a transportation system — and the project is still learning what requirements it must meet, Childs said. The double-ended streetcars, which will have a driver to navigate them along the Woodward tracks, will have vertical bicycle racks, WiFi and heating and air conditioning. Each will be about 73 feet long, 8.5 feet wide and 13 feet high with a vehicle weight of about 76,000 pounds, and be Americans with Disabilities Act compliant. The streetcars will be powered by lithium-ion battery packs but also use an aerial electrical power line for about 40 percent of the loop. Inekon has provided streetcars for systems in Seattle; Portland, Ore.; and Washington, D.C. The company, launched in 1990 after Czechoslovakia’s communist rule ended, also has done tram or track work in Russia, Ukraine and China. The cars will be assembled in the U.S. to meet federal domestic manufacturing requirements. — Bill Shea

QUICKEN, from Page 1: Company buys M-1 naming M-1 declined additional comment on the naming rights. What’s next

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M-1 in the next month will hire a company to aid it in naming the line, stations and color of the streetcars, and to help with branding and logos, said Paul Childs, the project’s COO. “It’s got to be appropriate,” he said. Such communication is important, Childs said, because public transit must be easily understood by users and not conflict with other transportation names. “Wayfinding for the public is vital,” he said. There will be advertising inside the streetcars and on the exteriors, but probably not the full-vehicle wraps used by the Detroit People Mover, Childs said. The branding strategy is expected to be developed over six to 10 months, he said. Train names Corporate names on public transit lines have cropped up elsewhere. For example, the Cleveland Clinic and University Hospitals signed a deal in 2008 to jointly pay the Greater Cleveland Regional Transit Authority $6.25 million over 25 years to name the 6.8-mile bus rapid transit system the “HealthLine.” The $200 million, 58-station line links downtown and East Cleveland using 16 articulated buses in dedicated lanes physically separated from traffic on busy Euclid Avenue, a street similar to Woodward Av-

[LARRY PEPLIN]

Construction began last summer on M-1 Rail,the 3.3-mile streetcar loop to run along Woodward Avenue from downtown to New Center. enue in that it passes major business, education, medical and cultural areas of the city. “Gilbert’s purchase of the naming rights is not unprecedented and not surprising, given that one of M-1’s funding strategies from the very beginning, even before somebody came up with the name ‘M-1 Rail,’ was selling naming rights to things,” said Scott Anderson, a longtime transit researcher who was a mem-

ber of the team that developed the initial concept that became M-1 Rail. Private funding from corporations, foundations and hospitals accounts for $105.2 million of nonprofit M-1 Rail’s total capital funding. Government funding at the local, state and federal level totals $74.2 million, including two stimulus grants from the U.S. Department of Transportation totaling $37.2 million. About $10 million has been set aside for the line’s operation — a third-party company will be hired to operate it under contract — and eventually the system will be handed over to the Regional Transit Au thority of Southeast Michigan. Construction began last summer on the 3.3-mile streetcar loop that will operate on Woodward between Larned Street downtown to just north of Grand Boulevard in the New Center Area. Work underway now includes specialized curved track being laid around the Campus Martius Park loop. The entire system is scheduled to open in late 2016. The entire project remains on schedule and on budget ($137 million), Childs said. The mostly curbside fixed-rail streetcar circulator system will be commingled with traffic. It will have 20 stations at 12 stops, and it will run in the median at its north and south ends. Organizers predict 5,000 to 8,000 riders a day, with a basic one-way fare of $1.50. 䡲 Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

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Proposed TriMas spinoff to help keep lid on debt

CRAIN’S DETROIT BUSINESS www.crainsdetroit.com

Chad Halcom chalcom@crain.com

Proposed TriMas Corp. (NYSE: TRS) spinoff Horizon Global Corp . will be a Delaware company headquartered in Bloomfield Hills, carve away 2,700 of its parent’s 7,000 employees, and cut aggressively into production costs. And these moves will help keep a lid on debt, according to its leadership. A. Mark Zeffiro, group president of the Cequent companies at TriMas and President-CEO of Horizon Global (NYSE: HZN) — pending approval from the U.S. Securities and Exchange Commission — told listeners on an investor conference call last week the $612 million segment is still on course to separate from parent company Bloomfield Hillsbased TriMas by midyear. The company also expects to improve its 2014 operating profit of about $38 million for the Cequent operations by 1 percent this year, and shave $4 million to $5 million between executive costs and some early retirements after

consolidating Plymouth-based Cequent Performance Products Inc . with Cequent Consumer Products Inc. The Cequent Group, which would separate into Horizon, makes towbar and trailer accessories, wiring harnesses and related products and would have operations in 10 countries. Horizon would be headquartered in another suite of the same Bloomfield Hills building as TriMas for an “indeterminate” time. The non-Cequent business segments of packaging, aerospace, energy and engineered components will remain with TriMas after separation. Cequent Performance has about 250 employees in Plymouth. Zeffiro also plans to focus on developing Draw-Tite, Reese and Hayman Reese as key brands among the more than 20 product names in Horizon’s portfolio. “It doesn’t mean the rest of the brands are going to go away. It does mean we’re looking at ways to change how we allow time, effort

and capital to those smaller brands,” he said. Zeffiro acknowledged the new company will be a more cyclical and lower-margin business than TriMas as a whole, but its leadership is prepared for that. Cequent Americas and Cequent APEA had operating margins of 6.9 percent and 4.6 percent respectively in 2014, while some TriMas segments have margins above 15 percent. “It’s not the first rodeo for this management team,” Zeffiro said. “They know exactly what to do when demographics and (economic) cycles change.” Executives at the presentation also said the post-separation Horizon Global is aiming to cut 2 percent to 3 percent from global production costs annually. Part of the savings could come by consolidating from more than 80 supplier companies in China to fewer than 30, and from plant consolidations. Horizon also will not assume any TriMas debt, but pay a dividend back to the parent company,

which is likely to go to debt service (TriMas was carrying about $690 million as of Dec. 31). Zeffiro also said Horizon will limit corporate debt load to about two times EBITDA over time. The company will pursue mainly modest acquisitions of companies that either immediately improve margins and earnings per share or are “on a clear path to becoming so” at closing. Analysts Walter Liptak of Global Hunter Securities and Nicholas Heymann of William Blair & Co . both affirmed prior positive investment ratings for TriMas after the Thursday presentation, according to Bloomberg. Shares of TriMas trended upward the day of the presentations but retreated by Friday afternoon to $29.50, about where it had traded earlier in the week. It was not yet clear how TriMas equity will divide into Horizon shares. The company plans a follow-up S-1 statement to the SEC within two weeks. Chad Halcom: (313) 446-6796 Twitter: @chadhalcom

NEW CENTER, from Page 1: 11-building buy seen as jump-start for area and Grand Boulevard. A building at 3100 W. Grand Blvd. was also included in the overall portfolio sold by Nick and Lorna Abraham, co-owners of Woodward Parking Co. Inc. Spread out over 11 buildings, ranging from 1,072 to 25,092 square feet, the space is expected to be converted into mixed-use with retail, multi-family residential and perhaps even boutique hotel space, Mosey said. However, Midtown is still determining specifically what it will do with each of the properties. “This Woodward block was identified as a critical component of (Midtown Detroit Inc.’s) master development plan for the district and essential to meeting the needs of the residential and business community,” Mosey said in an email to Crain’s. “MDI will focus on repositioning approximately 40,000 square feet of unoccupied space into active retail and residential and in some cases re-tenant space into the quality space which is in great demand in the Midtown district.” Acquisition and predevelopment financing is being provided by Capi-

tal Impact Partners , IFF , the Chase Invest Detroit Fund and the Detroit Development Fund, Mosey said.

Moving north Jim Bieri, president of Detroitbased Stokas-Bieri Real Estate, said the New Center area hasn’t attracted the same amount of redevelopment and leasing attention as downtown and Midtown so far because “it’s not in the heart of things at the moment.” “But it sort of reminds me of the part of town around Shinola four or five years ago,” he said. “And Midtown has the perception that it’s the next new place.” As signs of a forthcoming increase in activity in the New Center area, Bieri pointed to M-1 Rail; the expected summer auction sale of the landmark Fisher Building and the Albert Kahn Building; and the redevelopment of a 64,000-square-foot building connected to the Hotel St. Regis into 56 multifamily residential units. Joe Barbat, who is redeveloping the Hotel St. Regis, said it will be open for lease by the end of the year. Barbat is also CEO and chairman of Southfield-based Wireless Toyz

INDEX TO COMPANIES These companies have significant mention in this week’s Crain’s Detroit Business: Advantage Management Group .......................... 7 Arch Global Precision ............................................ 17 Bank of Ann Arbor .................................................... 4 Bedrock Real Estate Services ................................ 1 Charfoos & Christensen ........................................ 3 City of Detroit .......................................................... 13 Detroit Institute of Arts ........................................ 11 Detroit Lions .............................................................. 3 Detroit Symphony Orchestra .............................. 12 Detroit Wayne Mental Health Authority .......... 13 Diplomat Pharmacy .............................................. 14 Diversified Restaurant Holdings .......................... 6 DuMouchelle Art Galleries .................................. 22 Gibbs Planning Group............................................ 25 Kresge Foundation ................................................ 18 M-1 Rail .................................................................. 1.24 McQueen Financial Advisors ................................ 4

Metaldyne Performance Group .......................... 14 MGM Grand Detroit .................................................. 3 Michigan Economic Development ...................... 5 Midtown Detroit ........................................................ 1 North American Bancard .................................... 15 Presbyterian Villages of Michigan ........................ 7 Quicken Loans ............................................................ 1 Secure-24 .................................................................. 17 Signature Associates ............................................ 25 Stefanini .................................................................... 16 Stokas-Bieri Real Estate ...................................... 25 Talmer Bancorp ........................................................ 4 Taubman Centers .................................................. 18 Three Leaf Ventures ................................................ 3 TriMas ........................................................................ 25 Velocity Collaboration Center .............................. 5 Zeigler Auto Group .................................................. 16

Midtown movement Buildings purchased by Midtown Detroit Inc. in the New Center area:

6513 Woodward Ave., 2,010 square feet

6519 Woodward, 2,312 square feet 6525 Woodward, 1,072 square feet 6529 Woodward, 2,885 square feet 6535 Woodward, 3,600 square feet 6558 Woodward, 2,788 square feet 6560 Woodward,25,092 square feet 6561 Woodward, 1,606 square feet 6565 Woodward, 18,133 square feet 6568 Woodward, 2,136 square feet 3100 W. Grand Blvd., 2,025 square feet

and chairman of the West Bloomfield Township-based real estate investment and management company Barbat Holdings LLC. Robert Gibbs, managing principal of Birmingham-based Gibbs Planning Group Inc. , said that although there are only around 25,000 residents in the three-mile radius surrounding the new Midtown Detroit properties, the strength in the area is in its office workers. “They’ll support restaurants, coffee shops, bakeries and junior anchor retail like a sporting goods store and office supply store,” he said. “The demand is overwhelming for those businesses, and M-1 will precipitate a lot of housing development and employment, which will precipitate retail and restaurants.” Angela Thomas, an agent/broker specializing in retail for Southfieldbased Signature Associates Inc. , said there isn’t much remaining available space along Woodward in Midtown, which will force retail ten-

ants farther north into New Center. “Them purchasing (the buildings) is, in my opinion, the greatest thing that could have happened,” Thomas said. “That’s the last underdeveloped, underutilized stretch from Midtown to New Center. … If you want to be in that market, you have to come up to New Center.” Market stats According to data from the Southfield office of Colliers Interna tional Inc. , the 661,000-square-foot New Center retail market was just 4.2 percent vacant in the first quarter. The average rental rate was $11.82 per square foot per year. Its office market has 5 million square feet and was 12.9 percent vacant in the first quarter, with an average rent of $17.54 per square foot per year, according to Colliers. The Abraham portfolio is not the first investment in the New Center area for Midtown Detroit, which was formed in 2011 with the merger of the University Cultural Center Association and New Center Council Inc. In 2009, the New Center Council purchased and renovated a 43,000square-foot office Boulevard West Building at 2990 W. Grand Blvd. in a $1.2 million project. The council also renovated New Center Park across from the Fisher Building in a $1.5 million project that added a 700-person outdoor concert, activity and concession venue. In addition, it owns Pallister Park, Virginia Park and two other vacant parcels in New Center. Midtown Detroit, active in redevelopment for over two decades, currently has seven projects valued at over $50 million in various stages of development, Mosey said. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

Editor-in-Chief Keith E. Crain Group Publisher and Editor Mary Kramer, (313) 446-0399 or mkramer@crain.com Associate Publisher Marla Wise, (313) 446-6032 or mwise@crain.com Executive Editor Cindy Goodaker, (313) 446-0460 or cgoodaker@crain.com Managing Editor Jennette Smith, (313) 446-1622 or jhsmith@crain.com Director, Digital Strategy Nancy Hanus, (313) 4461621 or nhanus@crain.com Managing Editor/Custom and Special Projects Daniel Duggan, (313) 446-0414 or dduggan@crain.com Assistant Managing Editor Kristin Bull, (313) 446-1608 or kbull@crain.com Senior Editor/Design Bob Allen, (313) 446-0344 or ballen@crain.com Senior Editor Gary Piatek, (313) 446-0357 or gpiatek@crain.com Research and Data Editor Sonya Hill,(313) 446-0402 orshill@crain.com Web Producer Norman Witte III, (313) 446-6059 or nwitte@crain.com Editorial Support (313) 446-0419; YahNica Crawford, (313) 446-0329 Newsroom (313) 446-0329, FAX (313) 446-1687 , TIP LINE (313) 446-6766

REPORTERS Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. (313) 446-0325 or jgreene@crain.com Amy Haimerl, entrepreneurship editor Covers entrepreneurship and city of Detroit. (313) 4460416 or ahaimerl@crain.com Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or chalcom@crain.com Tom Henderson Covers banking, finance, technology and biotechnology. (313) 446-0337 or thenderson@crain.com Kirk Pinho Covers real estate, higher education, Oakland and Macomb counties. (313) 446-0412 or kpinho@crain.com Bill Shea, enterprise editor Covers media, advertising and marketing, the business of sports, and transportation. (313) 446-1626 or bshea@crain.com Lindsay VanHulle, Lansing reporter. (517) 6572204 or lvanhulle@crain.com Dustin Walsh Covers the business of law, auto suppliers, manufacturing and steel. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) 446-1694 or swelch@crain.com ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Sales Manager Tammy Rokowski Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine Grace, Joe Miller, Sarah Stachowicz Classified Sales Manager Angela Schutte, (313) 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 Audience Development Director Eric Cedo Events Manager Kacey Anderson Creative Services Director Pierrette Dagg Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik, YahNica Crawford Editorial Assistant Nancy Powers Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos

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CRAIN’S DETROIT BUSINESS // May 25, 2015

WEEK ON THE WEB/MAY 16-22

RUMBLINGS

Shank named to national panel on infrastructure

New high-def video boards improve view for DTE shows

uzanne Shank, Detroitbased president and CEO of New York City municipal bond firm Siebert Brandford Shank & Co. LLC, was named to the Washington, D.C.-based Bipartisan Policy Center’s new executive Shank council on infrastructure, which aims to identify ways to encourage private investment in infrastructure.

ON THE MOVE The Detroit-based McGregor Fund named COO Kate Levin Markel, 51, as president. Former President and CEO David Campbell died last year. Heidi Washington, warden at the Charles Egeler Reception and Guidance Center in Jackson, was named director of the Michigan Department of Corrections. She will replace Dan Heyns, who will help coordinate criminal justice strategy statewide.

COMPANY NEWS Flint-based HealthPlus of Michigan has proposed to the state up to 500 layoffs by the end of July in the wake of its sale of two business units to Troy-based Molina Healthcare of Michigan. Six Hiller’s Markets will convert to Kroger stores starting in July as part of Kroger’s recent acquisition of the regional grocery chain. Kroger said it plans to begin reopening converted Hiller’s stores July 12, with a store reopening every two to three days. Dan Gilbert’s Bedrock Real Estate Services LLC said it purchased the David Stott Building and the Clark Lofts in Detroit’s Capitol Park from China-based DDI Group, which bought them at auction in 2013. Terms were not disclosed. Prism Plastics Inc. is investing $3.5 million in new machinery to plants in Chesterfield Township and Harlingen, Texas and is adding 10,000 square feet to its 26,000-square-foot Chesterfield Township plant and headquarters. Detroit Lions preseason games will be produced by Fox Sports Detroit and air live on WJBK-TV 2 this fall in a new deal; financial terms and number of years were not disclosed. Preseason games had aired on WXYZ-Channel 7. Detroit-based Cass Community Social Services Inc. won a $1.35 million grant from the U.S. Department of Housing and Urban Develop-

Detroit Digits A numbers-focused look at the week’s headlines:

June 11 The latest date the former Hyatt RegencyDearborn will begin operating as the RegencyDearborn Hotel & Convention Center.The 772-room hotel is operating under the new name after a licensing agreement with Atmosphere HospitalityManagement LLC was terminated this year. Atmosphere operated the hotel as the Adoba Hotel Dearborn/Detroit.

$50 million The price tag of Mike Babcock’s new contract to coach the Toronto Maple Leafs. The eight-year pact lured Babcock from the Detroit Red Wings, where he coached for a decade.

$3.6 billion The approximate value of three new eight-year service contracts through the U.S. Army Tacom Life Cycle Management Command in Warren. Six defense contractors with operations in Southeast Michigan are among the 60 sharing the work on the pacts.

50,000 The number of fans that attended Motor City Comic Con at the Suburban Collection Showplace in Novi earlier this month. That total shattered the attendance record of 40,000 for last year’s event. ment to continue providing permanent supportive housing for extremely low-income people. United Way for Southeastern Michigan raised $45.5 million during its 2014-15 workplace and community campaign, the second consecutive year of doubledigit increases, year over year, Eau Claire, Wis.-based Menard Inc. closed on the purchase of the former Gibraltar Trade Center site in Taylor and plans to construct its next metro Detroit store there. The purchase price was not disclosed. Ohio-based AK Steel agreed to pay $1.35 million to settle federal and state environmental violations at the former Rouge Steel plant in Dearborn. Detroit-based Invest Michigan announced investments totaling $325,000 in five early-stage tech companies — Ann Arborbased Arborlight, Cribspot LLC and PicoSpray; Detroit-based ENT Biotech Solutions; and Lansingbased NanoRETE — from its Michigan Pre-Seed Fund 2.0. Japanese airbag maker Takata Corp. agreed to declare 33.8 million inflator mechanisms defective, effectively doubling the number of U.S. cars and trucks recalled, and submit parts to federal testing. Takata’s North American subsidiary is TK Holdings Inc. in Auburn Hills.

OTHER NEWS Dan Gilbert added about 1,800 parking spaces to his real estate portfolio with the purchase of two New Center-area parking decks. Gilbert’s Bedrock Real Estate Services LLC closed on the decks, at 116 Lothrop Road and 6540 Cass Ave. The former Wurlitzer Co. building in downtown Detroit officially sold for $1.4 million to New York

City-based developer Ash NYC, which plans a 97-room boutique hotel in a $20 million redevelopment at 1509 Broadway St. Construction began on the Capitol Park Lofts project in the former Capitol Park Building at 1145 Griswold St. in Detroit. The 72,000-square-foot building is being redeveloped by Lansingbased Karp and Associates. University of Michigan regents approved a design for a 280,000square-foot, $168 million Division I Olympic sports complex on the Ann Arbor campus. The number of womenowned business in Detroit grew 32.9 percent since 1997, for a total of 127,900 firms, said the State of Women-Owned Businesses Report, commissioned by American Express OPEN. Female entrepreneurs in Michigan grew 56.7 percent, to 289,300 firms. Detroit came in 48th of 51 cities in the second edition of the City Energy Efficiency Scorecard from the Washington, D.C.-based American Council for an Energy-Ef ficient Economy. Home sales in the four-county metro Detroit region nudged up 1.4 percent year-over-year in April, and the median home sale price climbed 18.9 percent, from $121,900 to $145,000, said Farmington Hills-based Realcomp Ltd. II. Joseph Puertas, owner of the Shark Club pool hall and bar in Waterford Township, pleaded guilty in Oakland County Circuit Court to operating a gambling house for personal gain. The former Michigan Charitable Gaming Association board member faces up to two years in state prison or a $1,000 fine. Construction began on the new Which Wich Superior Sandwiches store in the Penobscot Building in downtown Detroit. It is set to open by July.

oncertgoers at DTE Energy Music Theatre who can’t quite see the action on stage will get an improved view of shows this season thanks to five new high-definition video boards recently installed at the Independence Township amphitheater. Palace Sports & Entertainment, DTE’s parent company, paid $2 million for the LED boards from South Dakota-based electronic signmaker Daktronics Inc. Daktronics installed the new $15 million high-def video system at The Palace of Auburn Hills last year. At DTE, there are now 10-by-19foot high-def video boards on either side of the stage, and three 8.5by-15.5-foot boards along the top of the pavilion aimed at the crowds who sit on the hillside lawn.

More polls: Fix roads now in state If legislators haven’t picked up on it by now, Michigan residents want them to fix the roads already. Despite their pummeling this month of statewide Proposal 1 — a complex mix of sales and fuel tax increases that was defeated by an 80 percent margin — the state’s voters believe lawmakers need to do something to rebuild Michigan’s crumbling roads and bridges. A new poll released last week by Lansing-based Public Sector Consultants and East Lansing-based Denno Research LLC shows nearly seven in 10 respondents believe the Legislature needs to adopt a roadfunding plan “as soon as possible.” More than 48 percent of 600 likely state voters surveyed said Proposal 1 failed because it included funding for entities besides roads. That’s a bigger share than those who said the ballot issue was a failure of lawmakers to solve the problem themselves (21 percent) and a mandate against tax increases (17 percent).

Longtime columnist ends run in local newspapers Jeanne Towar, long a fixture on the local publishing scene, announced in an email to friends and colleagues last week that after 60 years in media, she will discontinue her long running Community Con-

nections column in the Oakland Press and the Royal Oak Daily Tribune at the end of June. Appointed in 2003 as a lifetime trustee of Towar the Boys & Girls Clubs of Oakland & Macomb Counties, Towar said she has volunteered to be the club’s publicist. Towar was formerly a marketing director at Crain’s Detroit Business and publisher of the now-defunct Detroit Monthly. She also was publisher of the Birmingham Eccentric and vice president of its parent company, the former HomeTown Communications Network, and was publisher of The Daily Tribune and advertising director of The Macomb Daily.

Macomb’s Hackel: On the road (sign) again Macomb County Executive Mark Hackel’s image in a “heavenly pose” will again beam down upon northbound mortals en route to the Detroit Regional Chamber’s Mackinac Policy Conference Tuesday through Friday. The executive, who won re-election to a second term last November, has timed an annual billboard sign awareness campaign to coincide with the conference since 2012. This year, he expects to promote a new leadership initiative and a hiking trail/bike path initiative. The recurring image of Hackel with rolled shirtsleeves against a blue sky and sunbeamed backdrop this year will promote “Mobilize Macomb,” an initiative of the county Department of Planning and Economic Development in collaboration with Grand Rapids-based LSL Planning LLC. The campaign, launched in March, promotes fitness and recreation and solicits suggestions from residents about improving streets, trails, pathways and parks. A second billboard will promote Advancing Macomb, the nonprofit community reinvestment and economic development group headed by former Assistant County Executive Melissa Roy.

[COURTESY OF MACOMB COUNTY]

The face of Macomb County Executive Mark Hackel smiles down from a billboard promoting the county on roads heading north this week.This promotes “Mobilize Macomb,” an initiative of the Department of Planning and Economic Development.

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