Crain's Detroit Business, Nov. 21, 2016 issue

No NAFTA, few jobs

Lost dollars

Declines in sports cable TV, satellite subscribers could shrink Detroit player contracts, Page 3

A U.S. exit from the trade pact would yield small gains at best, the numbers show, Page 3

NOVEMBER 21 - 27, 2016 Media

One-newspaper town?

Infrastructure

Managing the storm

News, Free Press again cut staff; analysts speculate on JOA’s future

By Tom Henderson thenderson@crain.com

and Dustin Walsh dwalsh@crain.com

The Detroit News and the Detroit Free Press are once again cutting newsroom staff in the face of ongoing declines in advertising revenue, which raises the question: How long will this remain a two-newspaper town?

For more than a year, at least. Until 2018, both papers must continue publishing under terms of their joint operating agreement, but persistent losses would allow the papers to end the agreement and possibly pull the plug on one paper, presumably the News, after that.

Such joint operating agreements have gone from 28 across the U.S. in the 1990s to just five now.

“I see a high likelihood Detroit will be a one-paper town within the next couple of years,” Rick Edmonds, a media business analyst with the St. Petersburg, Fla.-based Poynter Institute, told Crain’s Thursday after the Free Press joined the News in seeking

job cuts.

Carole Leigh Hutton, a former publisher of the Free Press who is now vice president of business development and marketing at Detroit-based Inforum, said it’s possible Detroit could have two newspapers for years to come. Even if they are both losing money, the losses could be less than if one paper is killed.

“You have to do the numbers. It looks easy from the outside (to kill one). But what are your revenue losses if you give one up?” she said.

“How much less do you have to charge for advertising? How many advertisers want both papers? How much of the News’ audience can the Free Press attract?”

According to an early-termination clause in the 25-year JOA that created the current partnership on Aug. 3, 2005, starting 10 years from that date, either party can opt out after the partnership has sustained three consecutive years of financial losses. The Free Press and News have SEE NEWS, PAGE 18

50 names to know in IT Our playbook of the executives to know covers the full range of Michigan-based innovation, from scrappy startups such as SPLT — and CEO Anya Babbitt — which won the grand prize at the Accelerate Michigan Innovation contest, to leaders at huge organizations, such as Judy Asher, manager of IT research and innovation at Ford, Page 10

A 52,000-square-foot green roof atop the parking garage for Blue Cross Blue Shield of Michigan in Detroit includes a walking track for employees. Roof rainwater is collected into a retention tank buried below.

BLUE CROSS BLUE SHIELD OF MICHIGAN

Efforts encourage property owners to go green, not drain How green infrastructure works Examples of green infrastructure and what it does: Retention ponds — Basins used to prevent stormwater runoff that reduce flooding and downstream erosion and improve water quality on nearby rivers, lakes or bays.

Rooftop rain gardens — Shallow-rooted plants that tolerate sometimes hot and windy conditions on rooftops of buildings to capture rainwater, prevent runoffs and provide temperature control inside.

Bioswales — Gently sloping ditches filled with vegetation or compost designed to remove and drain silt and other pollution.

© Entire contents copyright 2016

by Crain Communications Inc. All rights reserved

NEWSPAPER

crainsdetroit.com Vol. 32 No 48

$2 a copy. $59 a year.

By Jay Greene

Storms to increase

What does modern stormwater management look like? If you ask engineering experts, more ponds, wetlands and vegetative ditches could replace past practices, such as simply burying bigger pipes.

Stronger and more frequent rainstorms — like the Aug. 11, 2014, cloudburst that dumped 5 inches of rain on Southeast Michigan in just a few hours — are likely to hit Michigan over the next several decades.

And that's expected to lead to more widespread basement and road flooding, water pollution and possible public health emergencies, according to experts.

With residents and business owners still battle-scarred from those 2014 storms, the topic of how to create — and pay for — the infrastructure to drain stormwater has moved nearer to the top of the priority list for local governments.

And that's why new efforts are underway to create a common method of paying for drainage projects and giving businesses an incentive to invest in green infrastructure. The new ideas could help ease the burden on drainage systems around the state and region that are bursting at the seams.

To be sure, major capital projects involving traditional infrastructure will still be needed, but the green ideas are gaining momentum as part of comprehensive planning.

Average annual rainfall in Michigan has increased by 12 percent since 1964. Two-inch rainstorms — that impact and shape rivers the most — also have increased 89 percent during that period, according to the Natural Resources Defense Council.

As predictions call for a 6- to 7-degree rise in summer temperatures in the Midwest over the next 80 years, extreme storms in Michigan are also expected to increase, taxing the state's aging and inadequate drainage and sewer systems, said the U.S. Global Change Research Program.

Over the past decade, Oakland County Water Resources Commissioner Jim Nash has been encouraging businesses to invest in green infrastructure projects on their properties to reduce stormwater runoff that can overwhelm public drains and cause pollution to overflow into waterways. He has also warned that inaction in the face of the expected heavy rainstorms is not an option and would have dire economic effects.

“We can't afford to spend $1.5 billion to improve our old infrastructure. We need to figure out a way to do it with green infrastructure,” said Nash. “The August 2014 storm overwhelmed the system. No drainage system could have sustained that.”

Nash said because it is too expensive to build new and larger drains, the most cost-effective way is for

jgreene@crain.com

SEE GREEN, PAGE 22

2

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

MICHIGAN BRIEFS After 16 years, Sugar Loaf slopes get new owner A once-popular northern Michigan ski resort that’s been closed for 16 years is on course toward reopening after a California developer finalized plans to buy it.

Sugar Loaf, in Cedar, northwest of Traverse City, officially changed hands last week, said Steven Haugen, a building official with the Leelanau County Construction Code Authority. The developer, Jeff Katofsky,

obtained the resort for $3 million under the business name Sweet Bread LLC in a purchase that included six different parcels, Haugen told the Traverse City Record-Eagle.

Katofsky has pledged to turn the site into a year-round high-end resort, maybe in three to four years.

Sugar Loaf, formerly the largest employer in Leelanau County, includes a golf course, lodging and an airstrip.

Chemical Financial wants stronger GR presence The largest bank headquartered in Michigan wants to increase its profile in downtown Grand Rapids.

For Midland-based Chemical Financial Corp., that could include establishing a substantial office presence at a recently proposed twin-tower

development, MiBiz reported.

Officials at the bank and at Grand Rapids-based developer Orion Construction Co. Inc. said the two parties are in discussions for Chemical to relocate its regional operations to the development, but said a deal has yet to be finalized, pending the project securing state incentive financing in early 2017.

With Chemical Bank “maxed out” at its present office on the south side of downtown Grand Rapids, it needed more space, according to Regional President Joel Rahn. Chemical has signed a letter of intent to occupy 20,000 square feet in the building, including a ground-floor branch and administrative offices, he said.

MICH-CELLANEOUS

J The Michigan State University Foundation in East Lansing has formed a

$5 million investment subsidiary, Red Cedar Ventures LLC, which will focus on funding MSU-based startups and providing follow-on, growthstage capital to existing companies.

In the last four years, the foundation has provided more than $2 million in early-stage funding to more than 20 companies. Established in 1973, the foundation also operates the Michigan Biotechnology Institute, Spartan Innovations and the University Corporate Research Park.

Brian Calley: Legislation to aid mentally ill.

INSIDE

Laura Cox: First woman to lead budget panel.

J Lt. Gov. Brian Calley has signed state legislation he said provides people facing mental health issues with access to intervention and treatment earlier. The bill, “Kevin’s Law,” is a series of underutilized laws passed in 2004 that authorized courts and community mental health agencies to use assistant outpatient treatment programs instead of hospitalization for people who don’t comply with prescribed treatment.

J For the first time in the history of the Michigan House of Representatives, a woman will lead the powerful budget committee. Republican Rep. Laura Cox was named as the next House Appropriations chairman by Speaker-elect Tom Leonard. Cox, who will take control in January, is a first-term lawmaker from Livonia.

Cox is a former Wayne County commissioner and U.S. Customs agent

who is married to former state Attorney General Mike Cox. J Sparrow Health System last week unveiled its new $20 million health center in Lansing. The three-story facility houses radiology, endoscopy and primary care services, and over the winter will add a drive-thru pharmacy, geriatric center and outpatient rehabilitation, the Lansing State Journal reported. The 70,000-square-foot building will be fully occupied by spring.

J Michigan won federal approval to spend about $119 million over five years to remove lead hazards from the homes of low-income residents in Flint and elsewhere in the wake of Flint’s tainted water crisis, AP reported. The Centers for Medicare and Medicaid Services authorized an amendment to Michigan’s Children’s Health Insurance Program, and the state will spend $333,000 this fiscal year to obtain a nearly $23.5 million federal match. Meanwhile, in Lansing, state officials said they will consider re-

GROUP HEALTH PLANS

|

SPECIALTY BENEFITS

|

PERSONALCHOICEPPO.COM

Blue Cross Blue Shield of Michigan is a nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association.

CALENDAR

16

CLASSIFIED ADS

17

KEITH CRAIN

8

OPINION

8

OTHER VOICES

9

PEOPLE

16

RUMBLINGS

23

WEEK ON THE WEB

23

COMPANY INDEX: SEE PAGE 21 quiring infants and toddlers statewide to be tested for lead poisoning as part of an initiative to eradicate children’s exposure to the neurotoxin.

J A cooperative of farmers is building a $10.1 million plant in the Newaygo County town of White Cloud.

The North Central Co-op is constructing the feed mill in the White Cloud Industrial Park, the Grand Rapids Business Journal reported. The plant is expected to be fully operational in late 2017.

An item in the Nov. 14 Deals & Details should have said that Vokin LLC, which has opened a vodka distillery in Plymouth, is based in Plymouth.

J A Eureka Report story in the Nov. 14 issue on General Motors Co.’s patent filings should have said that a new mirror technology that combines a mirror and cameras will be available on the 2017 Chevrolet Bolt EV. J

Every business deserves Blue.

Blue Cross® Personal Choice PPO is an affordable way to offer your employees access to the largest network of health care providers in Michigan. It has the flexibility of our PPO plans with savings opportunities for your company and your employees.

22

Corrections

deserves Blue.

Introducing Blue Cross® Personal Choice PPO

BANKRUPTCIES

3

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

Analysis

NAFTA exit unlikely to boost auto jobs

Numbers show that move would have little effect on job market, industry as a whole One of President-elect Donald Trump’s most potent political arguments was that tearing up trade agreements and slapping on new tariffs could bring jobs home.

It was especially powerful in Michigan, where the North American Free Trade Agreement has been accused of hollowing out manufacturing jobs as more and more of them left for Mexico.

Experts believe walking away from NAFTA would not time-warp manufacturing to pre-1994 jobs levels and would likely create more harm than good.

But let’s go on a journey and see whether tossing NAFTA in the Rio Grande could even move the needle on employment and the economy.

Let’s make the large leap that stepping away from NAFTA would create those 47,556 assembly jobs overnight in the U.S. That sounds like a lot. But in October, the U.S. economy added 161,000 jobs, narrowing the national unemployment figure to 4.9 percent from 5 percent in September. Adding 47,556 jobs would be essentially a rounding error on national unemployment.

What about Michigan?

We can make some assumptions: Of the 43 major automaker assembly plants in the U.S., only 12 are in Michigan. Assuming that those plants would host jobs from Mexico evenly, Michigan assembly plants would receive roughly 13,271 new workers.

The addition of those jobs would likely narrow Michigan’s 4.6 percent unemployment rate, but not by much.

Michigan added 11,000 jobs in September, with 4,000 others added to unemployment rolls.

A thought experiment

Back to reality

So here’s the best-case scenario: Automakers employed 47,556 assembly workers in Mexico in 2014, compared with 171,982 in the U.S., according to the Center for Automo-

Of course, even those small gains aren’t likely to happen.

Trump has vowed to renegotiate NAFTA and leave it if need be. The

By Dustin Walsh dwalsh@crain.com

Short-circuiting the salary-cord connection The long-term rise in the fees paid to air sports programs has fueled big player contracts. See the top 25 salaries in Detroit sports, Page 22. Look up any Detroit player salary at crainsdetroit.com/sports.

Miguel Cabrera

$28 million

Justin Verlander

$28 million

Justin Upton

$22.1 million

Andre Drummond

$22.1 million

Victor Martinez

$18 million

Sports

Cord-cutting cost

Decline in cable TV, satellite subscribers could shrink player contracts

By Bill Shea bshea@crain.com

The days of the Detroit Tigers signing gargantuan player contracts could be in jeopardy if subscriber and revenue declines for sports networks continues.

The trend of cord-cutting — people dropping their pay TV cable and satellite services in favor of cheaper online options — is translating into lost dollars, most notably ESPN losing tens of millions of dollars in revenue as subscribers keep jettisoning their subscriptions to providers such as Comcast Inc. and DirecTV. The expectation of local and national broadcast rights deals further increasing in size has long fueled the massive increase in player contracts.

But if networks are forced to cut back, leagues and teams may not have as much cash in the future to

MUST READS OF THE WEEK

spend on enormous contracts — especially smaller and midmarket teams that don’t enjoy the level of revenue as larger-market clubs.

That would be the sound of a bubble bursting, and there are fears that regional sports networks will be affected, too.

The Tigers have developed a reputation for over-spending for their market size, topping out with that season’s $200 million-plus payroll that was fourth-highest in Major League Baseball. It is now starting to scale back that spending.

Locally, it’s Southfield-based Fox Sports Detroit that carries games.

The network, owned by Fox Broadcasting Co., has a 10-year, $500 million contract with the Tigers announced in 2008. That sort of money, plus what the Tigers get from the shared national broadcast deals and

other revenue, have allowed the team to do such things as give slugger Miguel Cabrera an eight-year, $248 million contract. (See list of highest-paid local athletes, Page 21.)

FSD also has deals with the Detroit Red Wings and Detroit Pistons that pay those teams about $25 million yearly.

Basketball and hockey have salary caps, so they’re shielded more than baseball teams, where player spending is limited solely by the owner’s financial tolerance.

Those three local team deals are said to be up in 2021, and FSD is expected to pay substantially more for the right to carry games. The cord-cutting trend could affect how much the network is willing to pay.

Here’s where the potential problem lies: As the cost to air games for SEE PLAYERS, PAGE 21

Talent hunt

The end is near

Former Michigan International Speedway President Roger Curtis has been tabbed to lead the state’s talent development efforts, Page 16

Obamacare’s repeal is coming, national health care experts say at a Crain’s summit. But how fast? And what might replace it? Page 7

tive Research in Ann Arbor.

SEE NAFTA, PAGE 19

Talent

Ford, others step up autism hiring program

By Dustin Walsh dwalsh@crain.com

Ford Motor Co. plans next year to hire an additional 12 to 24 adults with autism, expanding a program with the Autism Alliance of Michigan that has more than 30 other local companies signed on.

The programs are growing quickly.

For the companies, people with autism represent untapped talent, and the jobs mean an opportunity to earn a living for those on the spectrum who have typically been left behind.

In June, the Dearborn-based automaker launched its pilot program by hiring four adults with autism who have college degrees to work in its product development department at its world headquarters.

Those four were on temporary status, but have since been become reg-

ular employees at the automaker.

Ford originally committed to hiring five employees, but two part-time positions were combined to create one full-time position to accommodate an exemplary candidate.

“When we started, we wanted to make sure we could do this and do it sustainably,” said Kirstin Queen, manager of diversity and inclusion at Ford. “The program was found to be very successful, and the supervisors have said these individuals brought a new energy that spread to other employees.”

The challenge of employing an adult with autism, while all are different, usually lies in the realm of social interactions. Employees with autism can lack social skills and social imagination and are often SEE AUTISM, PAGE 17

4

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

SF Motors to invest $10.7 million in Pittsfield Township center

By Dustin Walsh dwalsh@crain.com

San Francisco-based SF Motors Inc. plans to invest $10.7 million to

HELPING COMPANIES NAVIGATE THROUGH

DIFFICULT BUSINESS SITUATIONS • • • • •

Turnaround, Workouts & Restructuring Performance Improvement Litigation Support Fraud Investigations & Forensic Accounting Executive Coaching

calderonelight.com

@V\Y KYLHTZ @V\Y KL[V\YZ )V[O TH[[LY [V \Z :H¡UH KHUH WR KHOS ,I \RXU EXVLQHVV LV VHDUFKLQJ IRU à H[LEOH ÀQDQFLQJ VROXWLRQV WDON WR XV DERXW DVVHW EDVHG OHQGLQJ

KLWDFKLEXVLQHVVĂ€QDQFH FRP

open a new research and development center in Pittsfield Township.

The subsidiary of Chinese automaker and supplier Sokon Industry Group signed an agreement last week with the state of Michigan during Gov. Rick Snyder’s latest trade mission in China, the Michigan Economic Development Corp. said in a news release.

The project is expected to create 150 new jobs and is supported by a $1 million performance-based grant from the state. Pittsfield Township is also expected to support the project with other incentives, though they have yet to be determined, the release said. “We are excited to build our engineering R&D center in Pittsfield Township, Michigan,� SF Motors CEO John Zhang said in a statement. “Michigan is at the cutting edge of new automotive technologies as well as being an engineering powerhouse, and we want to be a part of this great community.�

It’s unclear whether the R&D center will focus on parts or car design, but it will focus on next-generation electric vehicles.

Earlier this week, two Michigan manufacturing companies signed agreements with Chinese companies to form joint ventures in the automotive and aerospace industries.

Gage Products Co., based in Ferndale, and Muskegon-based Lorin Industries Inc. signed memoranda of understanding with the Chinese companies during Snyder’s trade visit to China.

Gage Products, which makes chemical products and solvents, will create a joint company with Sichuan Sikeyonghe Technologies Co. Ltd., which specializes in automotive coatings, thinners and other solvents, in the Chinese city of Chongqing to make cleaning solvents for Chinese auto markets, Snyder’s office said. The agreement says the initial investment into the joint company is estimated to be 50 million RMB ($7.3 million in U.S. dollars) and create 50 jobs in China over two years.

Gage will provide future technology, operational and financial support, while the Chinese firm will provide management and marketing services.

Lorin Industries will supply its anodized aluminum coil to its Chinese distributor, Shenzhen Bond Industry Co. Ltd., to work on a Chongqing airport terminal.

Also, the Michigan Economic Development Corp. and Shanghai Auto City signed a cooperation agreement for connected vehicle development.

The memorandum of understanding is intended to help the Chinese auto manufacturing base set up a Michigan office; improve Michigan’s and China’s connected vehicle infrastructure; increase innovation,

STATE OF MICHIGAN

A team from Shanghai Jiaotong University hosted Gov. Rick Snyder and his Michigan delegation last week in China. There, they discussed the ongoing relationship with the university, the oldest continuously running university in Shanghai, and a joint institute with the Ross Executive Development Program from the University of Michigan, among other initiatives. entrepreneurship and technology startups; and increase research and testing of new technologies, including universities and research institutions in both places, Snyder’s office said last week.

Snyder, who was on his sixth trade trip to China, said agreements like these are occurring at a faster clip as his administration has established

business relationships in that country. “We have built a lot of great relationships because we’ve been back so often,� Snyder told Crain’s in an interview. “We’ve received a lot of questions on the challenges of doing business in another country and help guide them to the right decisions.�

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

While your practice is keeping patients healthy ‌ ‌ what’s keeping your practice secure?

SOMERSET

Zara is to be on the north side of Somerset.

Turn “vulnerable� into “secure� by meeting with a Rehmann advisor today. We’ll evaluate your internal controls, fraud protection and risk management ... and then offer clear, easily implemented solutions to help you keep trouble at bay. Consider it a wellness checkup for your business.

Zara’s first Michigan store to be at Somerset

Contact me today to learn more.

SANDY SHECTER, CPA, CGMA Principal

By Chris Ehrmann

sandy.shecter@rehmann.com | 248.579.1100

cehrmann@crains.com

Zara, a popular Spanish clothing and accessories retailer, plans to open a two-story store at Somerset Collection in Troy — its first in Michigan.

The store will be on the north side of the mall adjacent to Macy’s and be accessible from the first and second floors of the mall. It will carry a full line of women’s, men’s and children’s apparel.

To make room for the 30,000-square-feet store, the Eddie Bauer store was moved to the south side of the mall.

Construction is expected to start next spring with a tentative opening for the winter holidays next year.

Zara, owned by the Inditex Group, a large fashion retail group, will join a list of companies that have selected Somerset Collection as their first store in Michigan. Earlier this year, Danish footwear and leather goods store Ecco, clothing and accessories brands Vince, and Vineyard Vines opened their first Michigan stores at Somerset. Other first-in-Michigan stores at Somerset include Neiman Marcus, Nordstrom, Gucci, Louis Vutton, Burberry and Tiffany & Co. Peter Van Dyke, CEO of VanDyke Horn Public Relations, said Zara has been one of the most requested stores for Somerset. He said that because of Somerset's position in the marketplace and the success of its other stores, it's often the place where retailers decide to enter the market.

Zara has about 2,100 stores in 88 countries. The closest store to metro Detroit was in Chicago until one was recently opened in Cleveland. Zara also opened stores in Baltimore and at the Mall of America in Bloomington, Minn.

This past year, Somerset Collection celebrated the 20th anniversary of its expansion to the north side of Big Beaver Road, growing to 1.4 million square feet and connecting the north and south sides of the mall via the glass skywalk over Big Beaver.

rehmann.com rehmann.com | 866.799.9580

GLOBAL TRAVEL. LOCAL CONNECTIONS.

6WDWH RI WKH DUW IDFLOLWLHV XQULYDOHG VDIHW\ VWDQGDUGV DQG XQPDWFKHG PLVVLRQ VSHFL´F ¾HHW originating right here in metro Detroit. corporateeagle.com | 248.461.9001

5

Predictable copays.

Now, there’s an oxymoron if there ever was one.

Predictable. Copays. A set words that, somehow, just don’t belong together. Unlike milk and cookies or say, fish and chips.

Here’s why. For the longest time, health care companies have served up plans that have suited themselves more than anyone else. So every visit to your doctor or urgent care has meant stepping into a world of financial unknowns. Do that long enough and you can actually become used to it. Which doesn’t make it right. Fortunately, there are a few health care companies who care more about you than you may know. We believe we’re one of them. That’s why our Medicare Advantage Plans are created to make your life healthier and, at the same time, easier. With copays that are not only predictable, but also predictably low.

For doctor visits, lab work, urgent care and much more. Truth is, at Meridian, we’ve been putting your needs above everything else for over 19 years. It’s what sets us apart. And always will. For more information on how to make sure your copay isn’t, well, a constant variable, call us at 855-647-0075 (TTY 711), Monday to Sunday, 8 a.m. to 8 p.m. or visit mymeridiancare.com.

MeridianCare HMO is a Medicare Advantage organization with a Medicare contract. Enrollment in MeridianCare depends on contract renewal. This information is not a complete description of benefits. Contact the plan for more information. Limitations, copayments and restrictions may apply. Benefits, premiums and/or copayments/coinsurance may change on January 1 of each year.

You must continue to pay your Medicare Part B premium. This information is available for free in other languages. Please call our customer service number at 877-902-6784 (TTY users should call 711), Monday – Sunday, 8 a.m. to 8 p.m.

Y0100_4002_26CY17_Accepted

7

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

SPECIAL REPORT: HEALTH CARE

Panel: Obamacare repeal coming, but how?

By Jay Greene jgreene@crain.com

The repeal of Obamacare is coming, national health care experts said. The only questions are how fast and what might replace it.

Health economist Jared Bernstein said at Crain’s eighth annual Healthcare Leadership Summit on Thursday that he believes Republicans in Congress will vote to repeal the Affordable Care Act within three months but put a two-year sunset provision in the bill to give them time to come up with a replacement.

Health policy analyst Naomi Lopez Bauman said she thinks repeal isn’t politically feasible without an immediate replacement, though she predicts many changes are ahead to give states more local control, seek to reduce health care prices through increased competition and possibly convert Medicaid funding into block grants that states could control.

The two national health care policy experts — Bernstein, representing the left, and Bauman, representing the right — discussed during the summit possible outcomes based on campaign promises President-elect Donald Trump has made on the fate of Obamacare. The moderator was Marianne Udow-Phillips, executive director of the Center for Healthcare Research and Transformation in Ann Arbor.

Bernstein is senior fellow at the

Center on Budget and Policy Priorities

and was in President Obama’s administration as chief economist and economic adviser to Vice President Joe Biden. Bauman is national director of health care policy at the conservative Goldwater Institute and holds a degree in economics.

Udow-Phillips opened the discussion by suggesting that Republican efforts to repeal or downsize Obamacare the past three years were done with the practical understanding that nothing would happen because Obama would never sign a bill gutting his administration’s signature achievement.

“It’s a lot different to have position (of repeal) where a president can veto” any bill, said Udow-Phillips, adding the same can be said about Trump promising to big applause on the campaign trail to repeal Obamacare, which he repeatedly called a “catastrophe” and “really bad for America.”

Bauman said she cannot predict what the Republican-majority Congress will do on Obamacare, but she believes Republicans have a strong desire to get government out of the way and let the free market and states take control of health care.

“You need a strong safety net and (a way to) divert resources to those needy people, but not subsidies” for the online health insurance exchanges, which Bauman called a failure because of rising premiums and perverse incentives, she said.

But Bernstein said he believes the Trump administration will soon find

AARON ECKELS

Crain’s Health Care Leadership Summit 2016 Panel Discussion: Will TrumpCare Work? included (left to right) Moderator: Marianne Udow-Phillips, executive director, Center for Healthcare Research and Transformation; panelists: Naomi Lopez Bauman, director of Healthcare Policy, Goldwater Institute; and Jared Bernstein, senior fellow, Center on Budget and Policy Priorities and former economic adviser to President Barack Obama. out the difficulty of eliminating pieces of Obamacare, as many parts are interconnected and dependent on the others.

For example, for Trump to keep his promise to retain Obamacare’s ban on insurers denying coverage to people because of pre-existing conditions, Bernstein said, Trump must keep the individual insurance mandate, and possibly the employer mandate, to ensure risk pools are balanced and actuarially sound, and insurance markets don’t go into a “death spiral” of ever-rising costs because of adverse selection.

“They (Trump and Republicans) will figure out that the only way to prevent people from losing coverage is to re-create (Obamacare) that they just repealed,” said Bernstein, adding that after months of studying how to replace Obamacare, Republicans could quite possibly approve legislation that would be insufficient and not work out.

Bernstein said Republicans could eliminate most of Obamacare through the budget reconciliation process if they simply took away the federal government’s ability to raise taxes to fund it. “Take away the tax credits and subsidies, and the exchanges collapse” and there is no funding for Medicaid expansion and other pilot programs to improve quality and reduce costs, he said.

Bauman said she believes Republicans will retain some sort of federal subsidies to help lower-income people retain coverage, but they will be funded and directed differently from under Obamacare.

Subsidies “could be block-granted, made part of Medicaid and returned to states,” she said. “It doesn’t need to go through the exchanges.”

Bauman said how to provide coverage for people with pre-existing conditions also belongs at the state level. “You can have a one-time optin during open enrollment,” she said.

While Bauman said she believes in universal coverage, Bernstein said every industrialized country understands that to extend coverage you need some financial support to help people purchase health insurance or put them on Medicaid-type health programs.

“Universal coverage means that everyone has access to coverage that they can afford,” Bernstein said.

Bauman criticized Obamacare for doing nothing to lower costs, which she said is one of the nation’s biggest health care problems.

But Bernstein chafed at that suggestion and pointed out that in 2008 the Congressional Budget Office predicted that, without changes in law, total spending on health care would rise from 16 percent of GDP in 2007

to 25 percent in 2025.

Since Obamacare was enacted in 2010, however, the CBO has projected health spending to rise only to about 20 percent of GDP, Bernstein said.

“We have 20 million people covered, and it is still 5 percent lower of GDP,” he said. “There is no question that Obamacare addressed costs” through the use of accountable care organizations, hospital readmission penalties, bundled payment and value-based payment approaches.

Hospitals, doctors and other providers also absorbed hundreds of millions in Medicare payment reductions as a cost containment measure that also helped to pay for the bill.

Bauman said Republicans are talking about reducing costs by the use of telemedicine programs and expanded use of allied health providers. Other innovations could include using health savings accounts for Medicaid and cutting costs by using more direct primary care, a trend in which primary care doctors oversee limited panels of patients to more closely manage health care costs and provide more personal care.

“Innovations in health care” can help address rising costs, Bauman said.

But Bernstein said, “Innovations are not a plan. It’s a great idea.”

Another way to reduce costs and give states the ability to become more efficient in delivering care is to block-grant federal Medicaid spending to states, Bauman said.

“States can be more efficient. Too much money is spent on adults” on Medicaid, she said. “States can’t wait to make that change.”

Bernstein said block-granting Medicaid is just another way to slowly lower payments because funding increases never keep up with health care inflationary trends.

“Every Republican solution I have ever seen to improve access and extend coverage requires more cost shifting to people who want health insurance,” he said.

Bernstein said many Republicans are pointing to House Speaker Paul Ryan’s health care reform plan, unveiled over the summer, as one way to replace Obamacare.

“The Ryan plan costs less than we are currently spending,” he said.

“You end up just shifting more costs to people. ... As you put more people into higher-deductible plans, they avoid unnecessary care, but also necessary care. People then begin go on television saying, ‘I can't afford the care I need.’ This is a massive problem for Trump, one that faced Obama.”

Jay Greene: (313) 446-0325 Twitter: @jaybgreene

8

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

OPINION

5 things to be thankful for this Thanksgiving

T

his is the week to give thanks. We’re grateful for: n This rare moment in time, the first in five decades or more, when we can confidently say that the political, business and cultural leaders of Detroit are pulling together to revive the city and its surrounding communities. Yes, there are still turf wars, bad actors and backslides, but the civic leadership just might be getting its act together. n The Detroit Institute of Arts, a cultural heavyweight. The DIA just hosted the Heart of Our City gala to great fundraising success.

It was just three years ago we were talking about selling the art.

Instead, the nonprofit community solved the city’s pension gap with the “Grand Bargain.” n Autonomous and connected car investments in Southeast Michigan. Self-driving cars and connected cars are not only a Silicon Valley thing; Michigan is a hub — and this region can be a leader with the right innovation and investment. n Four top-tier professional sports teams that are injecting money and goodwill into the city. From the Detroit Red Wings and the related District Detroit, to the plans for the Detroit Pistons to join the Wings at the new arena. We can’t forget the Tigers. And it wouldn’t be Thanksgiving without a Detroit Lions game. n Greater awareness of the talents of people on the autism spectrum. As Dustin Walsh describes in his Page 3 story, people with autism are wired for jobs that employers are having a hard time filling through traditional hires. Forward-looking companies are joining this fast-growing movement — and their return on investment is huge.

GETTY IMAGES/ISTOCKPHOTO

TALK ON THE WEB Re: News offers buyouts to all editorial employees More heartbreaking news at a time newspapers are needed more than ever.

M.L. Elrick

Re: Free Press joins News in seeking to shrink staff The slow, bleeding death of newspapers around the country is a bad omen for our democracy, the success of which depends on literate and informed citizens. For most of the 20th century, men and women alike, including my parents, sat down in their living rooms after dinner to read the paper. It was part of the daily routine.

Some of today’s news websites are very good, but they don’t have even half the information of one edition of a newspaper. Reader engagement is less, too, since every article has links that take you elsewhere — often far from the original news page.

James

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

Was it the Gary Johnson endorsement? It was, wasn’t it? We’re going

to miss Nolan Finley.

Wheelman

Re: Study finds jail structurally sound Wayne County should be ashamed of itself for paying good money to determine the viability of a site that is simply unsuitable to the reputation of the largest city in Wayne County and thus the reputation of Wayne County itself. ... No one wants a jail in his backyard, but there are other places ... and surround it with landscaping that makes it suitable to the neighborhood.

E M Parmelee

Shortsighted. Why would the county think it is a good idea to

house and transport prisoners close to popular tourist draws and large offices? The entire jail and court complex should be moved far away from downtown. jewel942

Re: Opinion: Transit dilemma must be resolved I don’t understand why they did it based on property tax. Why not do it based on income tax? People who own homes are fairly likely to own cars and not need public transit, while the people who use public transit are more likely to be renters, like me. I would be willing to pay extra income tax to get a transportation system that connects the counties.

Michelle

Re: Parc restaurant to open at Campus Martius Good and thoughtful renovation for

the site.

BobNB

Just when you thought it was over, here’s the ‘Next Big Thing’ While most of the world is talking about new U.S. President-elect Donald Trump and what it all means to the world and to the nation, others are looking to another race that will make a lot of news in coming months.

I’m talking about the race to succeed Rick Snyder as governor of Michigan.

Yes, I know. The newly elected president is not even in office, and I dare to mention the “Next Big Thing.”

But people are already picking sides and candidates for primaries in August 2018.

And most important of all, they’re out trying to raise money. Lots of it.

KEITH CRAIN Editor-in-chief

You can’t cover the state with just one television station or one newspaper advertising “buy,” so the money will spread out for a lot of candidates.

My guess is that it will be a fierce

campaign — even in the primary.

And chances are pretty good that there will be plenty of mudslinging as well. I fear that that will become the norm for a while.

Michigan Attorney General Bill Schuette has been running for quite a while; he seems to be spending all of his energy trying to promote the idea that our governor is responsible for the water pollution in Flint.

(They’re members of the same political party.) This tactic will probably backfire, in my opinion.

Lt. Gov. Brian Calley is quietly waiting, perhaps until he is unleashed by the governor sometime soon.

It is rumored that the best vote-getter in the state, Republican Candice Miller, has vowed to stand aside and let her good friend and ally Mark Hackel run on the Democratic ticket. What happens if he does not get the nomination is anyone’s guess. Not to mention that Miller has a new job this fall anyway, cleaning up the water department in Macomb County.

Other names are mentioned for the Democrats, including Dan Kildee of Flint (another candidate who can run on what went wrong in Flint) and Gretchen Whitmer, a former lawmaker and daughter of former Blue Cross CEO Dick Whitmer.

I have no doubt we’ll be hearing about other new candidates just about every week. There seems to be no clear path to the nomination by either party.

My guess is the primary battles may be more interesting than the final campaign.

If you thought there was a recession in our state, guess again. Like the presidential election, these candidates will be able to raise millions of dollars. When Snyder was re-elected in 2014, the campaign spending on both sides was pegged at $30 million.

I guess it will never end. It’s what we call a democracy.

9

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

It’s time for Detroit to have a Heidelberg 3.0

H

ere's why the Heidelberg Project matters to the future of De-

troit.

When I first drove down Heidelberg Street in June1993, I asked the artist: “What is all of this?� I was procrastinating about going back to work as a loan officer at then-Michigan National Bank; Tyree Guyton invited me to get out of my car and “check it out.�

One year later, I found myself blowing the dust off of an old computer to help him respond to correspondence he was receiving from all over the world.

As a businesswoman on the rise, I was surprised by my newfound diversion and realized that something had awakened in me that I hadn’t felt since I was a child.

From the start, it was challenging. Controversy, bulldozers and 12 arson attacks in recent years could all be viewed as innovation in the making, right?

As you may have read more recently, plans call for dismantling the current iteration of the project, and conversations are underway for existing works to be placed in a collection or exhibition at one or more of the major museums in town.

Meanwhile, though, the art is making room for a new, more comprehensive vision for which we are rallying support.

As we approached our 30th anniversary, we wondered what the Heidelberg Project’s future would hold.

We found ourselves grappling with the question, is the Heidelberg Project relevant to Detroit’s changing landscape? A comment by one patron always plays in my mind. “There’s nothing like it anywhere else in the world.�

Today, the success of the HP and Tyree Guyton’s vision can be validated. But, just as the city of Detroit is changing, so are the narrative and landscape of the HP. Based upon the successes that Tyree began 30 years ago, the HP is poised to transform from an arts installation driven by one man into an arts community that calls for the participation of many.

This is what we call Heidelberg 3.0, an idea that can foster an expansive new future for the HP that builds new alliances with residents, artists, local universities, community groups, and government municipalities, all of whom can assist in building a new community of excellence through the arts.

Historically, Detroit can stake claim on being a city of innovators that led the nation with startups, game-changing inventions and economic vitality.

Today, art and unconventional thinking have become essential elements for healthy growth in a city that is now taking great leaps forward.

And, true to our history, it is reasonable to think that the rise of Detroit can pave the way for renewal in other cities around the nation.

The Heidelberg Project is a game-changing invention in the

OTHER VOICES Jenenne Whitfield

Whitfield is executive director of the Heidelberg Project.

21st century. For 30 years, it has brought diverse people together,

serving as inspiration for a generation of innovators in Detroit and across the world.

This original, ever-changing outdoor art environment embodies what is special and fascinating about our city.

It may be popular to replicate the successes of other cities, but I believe that we will be much further ahead (and happier) if we look within and give Detroiters an opportunity to be part of the comeback that they have fought for.

The Heidelberg Project is import-

ant to Detroit because for 30 years it steadfastly reminds us of our originality, our innovation, our grit and our resilience.

As conversations about equity and inclusion and how we rise together as a city endure, the Heidelberg Project is not only relevant but a critical example of how embracing our own can change the game!

In essence, we are striving for Heidelberg 3.0 to be a new vision (with some of the old for historic purposes) that is embraced and served by a wider constituency.

“Art and unconventional thinking have become essential elements for healthy growth in a city that is now taking great leaps forward.�

CYBERSECURITY CONCENTRATION Cybersecurity is a growing and critical business need. As a leading graduate business school, Walsh College is the ÀUVW VFKRRO LQ VRXWKHDVWHUQ 0LFKLJDQ to offer a graduate concentration in WKLV JURZLQJ ÀHOG 1RZ LW¡V SDUW RI RXU 0DVWHU RI 6FLHQFH LQ ,QIRUPDWLRQ 7HFKQRORJ\ ,I \RX ZDQW D FDUHHU RQ the cutting edge, turn to Walsh.

WALSHCOLLEGE.EDU/CYBERSECURITY

%DUEDUD &LDUDPLWDUR 3K ' &KDLU 'HFLVLRQ 6FLHQFHV 3URIHVVRU %XVLQHVV ,QIRUPDWLRQ 7HFKQRORJ\

TROY CLINTON TWP P

NOVI NOV PORT HURO ON

&RQJUDWV 'U &LDUDPLWDUR RQ EHLQJ QDPHG WR Crain’s “50 People to Know in IT�

10

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

50

50

NAMES TO KNOW IN

Ball, was She 23 em

INFORMATION TECHNOLOGY

Ball a com man com as w prog whic sem from deve

By Tom Henderson / thenderson@crain.com

I

nformation technology is everywhere, having long ago escaped the physical boundaries of a PC or a mainframe. Smartphones are smarter than the computers that guided astronauts to the moon. Heck, smartwatches are smarter.

The so-called internet of things will connect your fridge to your car to your phone to your place up north. Is your milk getting sour? Expect a text.

A connected car will connect us to our destination without anyone needing to touch the steering wheel or hit the brake.

Thousands of people work in information technology in Michigan. So pulling together a list of 50 people to know in IT puts one in a dauntingly big pool. A

Michael Antaran Founder and CEO, Marvel Apps LLC, Royal Oak; founder and CEO, Carrot Pass LLC, Royal Oak A former powertrain engineer at Chrysler, Antaran founded Marvel in 2008, shortly after being selected as one of the first batch of 4,000 developers for Apple Inc. “When Steven Jobs first announced the iPhone, I thought it was beautiful. I was one of those who stood in line and paid $600 for it,” he said.

Antaran, 43, developed one of the first fantasy football league apps for the 2008 NFL season, had an app developed in time for the 2008 Beijing Olympics that allowed fans to keep track of results and since has done more than 150 apps, with customers including the former Zumba Mexican Grille, Oculus Rift and Coleman Co. Carrot offers an app that tracks how far users walk or run, and offers rewards such as gift cards based on milestones. Henry Ford Health System and Health Alliance Plan are Carrot customers, using it in their employee wellness programs.

list like this by its nature will exclude worthy candidates. To share the blame, we reached out to get suggestions, asking those in the know whom we needed to include.

We got about 150 names that we were told were must-includes. Thanks for the help go to Ted Serbinski of Techstars Mobility, Larry Eiler of Eiler Communications, Guy Suter of Notion AI, Colby Berthume of Rock Ventures LLC, Chris Rizik of the Renaissance Venture Capital Fund, Bob Marsh of LevelEleven, Dug Song of Duo Security, Paul McCreadie of Arboretum Ventures and Adrian Fortino of the Mercury Fund, with special thanks to Linda Daichendt, the executive director and CEO of the Mobile Technology Association of Mich-

Judy Asher IT manager of global connected consumer strategy, Ford Motor Co., Dearborn Asher, 51, who got her bachelor’s degree in computational mathematics from Michigan State University and an MBA from the University of Michigan, has been with Ford since 1989.

One of the biggest technological advances since then is the so-called internet of things, which connects people to their cars and household appliances through their smartphones.

At the 2015 Mobile World Congress in Barcelona, Ford introduced what it called the Handle on Mobility and Info Cycle as part of its Ford Smart Mobility plan. Asher had challenged employees to design an e-bike, and the result was a bike with a rear-facing sensor that vibrates the handlebars and turns on the bike’s light to warn of a vehicle coming from behind and an app to give riders information about bike-friendly roads and potential hazards.

Asher has also run innovation hackathons, one of which was to challenge employees to figure out ways to use smartwatches as part of the connected vehicle.

Anya Babbitt Founder and CEO, Splt, Detroit Babbitt, 34, came to Detroit at the beginning of the summer in 2015 to be one of the first members of the first class of the Techstars Mobility accelerator program at Ford Field.

As part of her participation there, Splt, which has an app-based way for companies to launch ride-share programs for employees, got $120,000 in funding from Detroit-based Fontinalis Partners LLC and Basking Ridge, N.J.-based Verizon Ventures. Customers include DTE Energy Co., Honda Manufacturing of Ohio and Magna International of America Inc. The November issue of Entrepreneur Magazine named Splt as one of the 10 most innovative companies to watch.

Also in November, it was the $500,000 winner at the Accelerate Michigan Innovation Competition at Cobo Center.

In September, Splt got a $100,000 investment from Macomb Community College’s $2.7 million Innovation Fund. In August, it announced a partnership with ride-hailing company Lyft and Beaumont Health to provide transportation for the elderly to medical appointments.

igan, and Kathleen Norton-Schock, co-founder of the business intelligence consulting company ardentCause L3C, for alleviating my fears about gender di-

versity by making the case for dozens of women to be included.

Apologies to the many qualified people we left off.

Crain's doesn't claim these are the best 50 or the most important. It is a very interesting 50, a diverse group that ranges in age from 31 to 65, a mix of women and men, of races and heritages and scientific and informational interests, of people at small startups hoping to create a niche and at huge global institutions hoping to keep theirs.

From A to W, here are 50 people to know in IT.

Romil Bahl President and CEO, Lochbridge, Detroit Lochbridge and its $150 million of revenue were spun out from Compuware Corp. in 2014 when Compuware’s professional services division was sold to Hermosa Beach, Calif.-based Marlin Equity Partners.

The private equity company kept Lochbridge’s headquarters in Detroit. It also has offices in Milwaukee; Lansing; Columbus, Ohio; Montreal; and Guragon, India, with about 80 percent of its 1,000 employees here.

Henry Balanon Co-founder and chief technology officer, Stratos Inc., Ann Arbor; co-founder, Detroit Labs LLC, Detroit; chief product officer, Autobooks LLC, Troy.

Balanon, 34, co-founded Detroit Labs in 2011. Funded by Detroit Venture Partners, the company has become one of the biggest custom-design mobile app agencies in the world. Clients include Chevrolet, Domino’s Pizza, Volkswagen and Stryker Corp.

Lochbridge has become one of the largest mobile-app developers in the state, positioning itself in the middle of the hot space of the internet of things and connected cars, thanks to nearly two decades of work with General Motors Co. and OnStar Corp.

In 2013, Balanon co-founded Stratos, which marketed one card that tracked all credit cards and membership reward programs. It raised $6.8 million in venture capital and was sold last December to a competitor, Pennsylvania-based Ciright One LLC.

Before joining Lochbridge last year, Bahl, 48, was an executive vice president and general manager of global industries for Computer Science Corp. of Falls Church, Va., an IT giant with more than $4 billion in public-sector business and more than $9 billion in the commercial sector.

In 2012, he was awarded the Distinguished Young Alumni Award by Michigan State University.

In October, Balanon joined Autobooks, a startup that offers payment and accounting software delivered through financial institutions to help small businesses grow.

Ball a Com cons serv

2009 way hom table an a iPho unive think

hief , n , uct

in

one app

d all

ure oa ht

,a

h

shed ate

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

50 NAMES TO KNOW IN IT Katherine Ball IT services director, Michigan State University, East Lansing Ball, 52, who has been at MSU since 2005, was named IT services director in 2012.

She oversees a budget of $11 million and 23 employees.

Ball also heads up the IT department’s communication and marketing team, managing digital and web communications for the Office of the CIO, as well as a broad-based IT training program for students, faculty and staff, which includes noncredit instructional seminars, computing courses ranging from introductory basics to web development, and workshops.

Ball also has oversight of the MSU Computer Store, which offers technology consultation, sales and computer repair services to students and faculty.

Itai Ben-Gal Co-founder and CEO, iRule LLC, Detroit Ben-Gal, 39, and Victor Nemirovsky founded iRule in 2009, figuring there had to be a better way to help friends and family manage home entertainment systems than a tableful of remote controls. They created an application that transforms the iPhone/iPod Touch and iPad into a universal remote control. They weren’t thinking about the internet of things.

Today, they are at the heart of IoT, helping companies, large institutions like hospitals and universities and individuals better connect and manage high-end entertainment and communication systems through mobile devices. One major customer is CNN in New York.

In 2011, iRule raised a seed round of $500,000. Two subsequent funding rounds totaling $3.6 million were raised for the company, which employs about 30 in the Madison Building.

Ben-Gal was a member of the 2012 class of Crain’s 40 under 40. In 2014, the company was the only early-stage tech company from Michigan and one of 10 in the U.S. to pitch at the annual Google Demo Day in Mountain View, Calif.

Sundaresh

Brahmasandra President, NeuMoDx Molecular Inc., Ann Arbor Brahmasandra, 44, has been president of NeuMoDx, a company developing molecular diagnostic testing tools for hospitals and laboratories, since 2012. In 2014, it raised a venture capital round of $21 million, led by Pfizer Venture Investments in New York and joined by three Ann Arbor firms, Arboretum Ventures LLC, Venture Investors LLC and the Wolverine Venture Fund, which followed an earlier round of $5 million.

The company, which employs 40, is still in product development.

SEE NEXT PAGE

11

12

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

50 NAMES TO KNOW IN IT FROM PREVIOUS PAGE

Brahmasandra is best known for being co-founder of Ann Arbor-based HandyLab Inc., one of the most successful startups in state history.

Founded in 2000 to create bench-top devices for quick analysis of body fluids for university research and the pharmaceutical industry, the company was sold in 2009 to New Jersey-based Becton, Dickinson and Co. for $275 million.

Meredith Bronk President and CEO, Open Systems Technologies Inc., Grand Rapids Bronk, 47, who has an MBA from the Mendoza College of Business at the University of Notre Dame, has been with OST, a provider of IT services, including cloud-based data storage, app development, data analytics and managed services, since 1998.

Bronk was just the seventh employee when she was hired. Now, OST employs nearly 200 and has revenue of $165 million. She was named COO in 2009, was promoted to president in 2014 and was named CEO last year, when Inc. Magazine named her as one of the top 50 women entrepreneurs in the country.

Open Systems has offices in Ann Arbor, Detroit, Minneapolis and London.

Mary Jo Cartwright CEO, Court Innovations, Ann Arbor In 2014, Cartwright, 54, who has 32 years of IT experience with a range of tech companies, founded Court Innovations, which provides cloud-based online court negotiations and mediations to allow litigants to settle cases without going to court. Since 2011, she has also been president of her own consulting company, MJ Innovations, working with Ann Arbor Spark and the Michigan Economic Development Corp. and serving in interim senior-level management roles with several area tech companies.

From 2006 to 2011, Cartwright was vice president of product management and business development for Ann Arborbased HealthMedia Inc., a provider of online health care information and wellness programs co-founded by Rick Snyder in 1998 when he was a venture capitalist. It was sold to Johnson & Johnson in 2008 for $200 million.

Mamatha Chamarthi Senior vice president, chief digital officer and CIO at ZF TRW, Livonia Before joining TRW Automotive Holdings Corp., a tier-one auto supplier, in 2014, Chamarthi, a graduate of the Kellogg School of Management at Northwestern University, held IT management posts at Consumers Energy and DaimlerChrysler Financial Services.

While a vice president and CIO at Consumers in 2012, Chamarthi was named by Computer World and CIO magazines as one of the top 100 CIOs in the country.

In 2015, TRW was bought by German

50

automobile supplier, ZF Friedrichshafen AG, and renamed ZF TRW. As CIO, Chamarthi, 47, is focused on connected and autonomous vehicles, which includes braking systems controlled by cameras, sensors and radar.

Barbara Ciaramitaro Director of the Center for Cybersecurity Leadership and chairwoman of the Decision Sciences Department, Walsh College, Troy Ciaramitaro, 63, has been chairwoman of the Decision Sciences Department since 2013. Also a professor of informational technology at Walsh, her areas of expertise are automotive and health care cybersecurity and mobile and internet of things technologies.

Ciaramitaro has been a section chief for seven years with the InfraGard Michigan Alliance, a public-private partnership between the FBI and members of 19 industry sectors that focuses in infrastructure issues.

Previously she taught at Ferris State University and Wayne State University and from 1999-2008 was an IT executive with General Motors Corp.

Linda Daichendt CEO and executive director, Mobile Technology Association of Michigan, Clarkston Daichendt, 55, has been at the helm of MTAM, the first state-based mobile and wireless industry trade association in the U.S., since 2010. It is made up of carriers, manufacturers, hardware developers, software developers, wireless system installers, tower manufacturers, mobile marketing vendors and business users of the technology.

Daichendt founded Mobile Monday Michigan in 2009. It is a branch of the International Mobile Monday organization headquartered in Helsinki, Finland, which currently has chapters in more than 70 countries. There are state chapters in Detroit, Ann Arbor, Grand Rapids and Lansing, with more than 2,800 members who network weekly.

In addition, she helped launch the Connected Transportation Virtual Trade Show, a 24/7 online trade show for the connected transportation ecosytem; is executive producer of Michigan Mobile Musings, a weekly podcast of MTAM; is a board member of the Lansing-based Michigan STEM Partnership; and is CEO of Southfield-based Strategic Growth Concepts, a marketing and consulting firm helping businesses develop mobile and wireless strategies.

Jeff Epstein Founder and CEO, Ambassador, Royal Oak In 2009, Epstein, 35, founded Ambassador, which makes off-the-shelf and custom software for what is called referral marketing, where businesses set up rewards programs for customers who refer their friends and social networks, but it has really taken off in the past two years.

In April 2015, he closed on a first investment round of $2.35 million. At that

time, Ambassador had 20 employees and had brought in $1 million of revenue in 2014. Now it has 44 employees, with revenue of $5 million this year and projections of $10 million next year.

Customers include PayPal, Spotify, HughesNet, Progresso and the American Marketing Association.

In 2000, while still at Michigan State University, Epstein launched eSparty.com with the goal of becoming the unofficial home page of MSU students. It was a tough go in the days of dial-up internet, and the plug was pulled in 2003. In 2005, he founded Finest Affiliates LLC, an internet marketing company he sold a year later to pay off half his student debt.

Carl Erickson Co-founder and CEO, Atomic Object LLC, Grand Rapids In 2001, Erickson thought the time was right to start an IT services firm. He had a Ph.D. in computer engineering, nine years as an associate professor at Grand Valley State University and had been involved in a dot.com startup, Austin, Texas-based Deltamode.

Atomic Object designs and develops custom web, mobile and embedded software products, with clients ranging from startups to Fortune 500 companies, with markets including automotive, health care, financial services, education, distribution and entertainment. It has created more than 250 apps for more than 150 clients, including Spectrum Health, Gentex Corp., Brunswick Bowling and Steelcase.

It employs 38 in Grand Rapids and 13 in its Ann Arbor office, and expects revenue this year of about $9 million, up from $8.5 million last year.

Erickson, 54, is a managing director of Tappan Hill Ventures, a new venture capital firm in Ann Arbor, and a director of the Grand Angels angel investing group in Grand Rapids.

Elaina Farnsworth CEO, Mobile Comply, Troy Since 2010, Farnsworth, a member of the 2013 class of Crain’s 40 under 40, has been CEO of Mobile Comply, a consulting company that trains companies to compete in the areas of mobile connectivity and connected vehicles.

Mobile Comply, the Connected Vehicle Trade Association and SAE International jointly developed the first credentialing program in connectedvehicle technology.

Since 2014, Farnsworth, 42, has been on the Oakland County Connected Vehicle Task Force, and she is also communication director of the Connected Vehicle Trade Association, a nonprofit to advance the interests of those in the industry, and on the board of the Clarkston-based Mobile Technology Association of Michigan.

Previously, Farnsworth was director of international extended services for St. Clair Shores-based WSM International, a firm providing cloud-based services for companies.

Randy Foster Co-founder and chief technology officer, Rocket Fiber LLC, Detroit Rocket Fiber was founded in 2014 by CEO Marc Hudson, COO Edi Demaj and Foster, all former employees of the Dan Gilbertowned Rock Ventures Family of Cos. Gilbert launched the company with an initial investment of $30 million to first provide high-speed internet to downtown businesses and residents and then to provide it to city schools and institutions and eventually to city and suburban residents.

Foster, 36, has more than 10 years of experience in network engineering and management. Previous to launching Rocket Fiber, which now employs 50, he was a consultant for Detroit-based Urban Science and then a software engineer at Quicken Loans Inc. Last November, Rocket Fiber began providing ultrafast fiber-optic service to 19 office buildings and two apartment buildings downtown and subsequently rolled it out to Midtown. Speeds are up to 1,000 times faster than current average internet speeds.

Tel Ganesan Founder and managing partner, Kyyba Ventures, Farmington Hills Ganesan, 49, founded Kyyba, an engineering and IT staffing firm named for a Japanese video game character, in 1999.

It offers staffing services for automotive, education, transportation, technology and manufacturing companies and has developed an online dashboard for assembly plant management to check production in real time.

Since 2009, Ganesan has been president of the Detroit chapter of The Indus Entrepreneurs, an organization founded to promote U.S.-India trade that now has 13,000 members and 61 chapters in 18 countries.

On Oct. 27-28, Ganesan put on TiECon Midwest in Dearborn, an entrepreneurial conference focusing on connected mobility and health care that drew several hundred, with an impressive roster of speakers, including Gov. Rick Snyder, national and local entrepreneurs looking to get funded by Manoj Bhargava, the 5-Hour Energy billionaire, who said he was willing to invest between $50,000 and several million dollars in promising health care technologies.

Paul Glomski CEO, Detroit Labs LLC, Detroit Detroit Labs was founded in 2011 after an investment of $250,000 by Detroit Venture Partners, the venture capital firm founded by Dan Gilbert, Josh Linkner and Brian Hermelin.

Founded to create apps for commercial customers, it now employs more than 100, has created about 175 apps for 62 clients, including Domino’s Pizza, DTE Energy Co. and Chevrolet, and has opened an office in Ann Arbor.

In 2013, Glomski, now 41, was named to that year’s class of Crain’s 40 under 40.

In 2014, the company launched an app for the Detroit Police Department. Called DPD Connect, it was developed at no cost

to the city and was available as a free download across all platforms, providing the community with breaking news, crime updates, statistics and posts about wanted suspects.

Detroit Labs has an apprenticeship program for those with no prior coding experience. It has graduated more than 40, about half women and the majority Detroit residents. About half of the graduates were hired by Detroit Labs.

Kalyan Handique President and CEO, Celsee Diagnostics, Plymouth Township.

Handique, 43, in 2000 co-founded HandyLab Inc., which would become one of the most successful startups in state history. The company, which made bench-top devices for quick analysis of body fluids and to detect food-borne pathogens, was sold in 2009 to New Jersey-based Becton, Dickinson and Co. for $275 million.

In 2011, Handique, 43, joined Celsee, then known as DeNovo Sciences, which was founded in 2010. That November 2011, DeNovo attracted national attention when it won $500,000 as the top company in the Accelerate Michigan Innovation event.

Since then, the company, which employs 11 and has 10 contract workers, has undergone a name change, raised more than $10 million in capital and launched several lab-on-a-chip diagnostic devices.

It also sells kits and reagents for those devices.

In September, the company was named

by PM360, a trade publication for the pharmaceutical, biotech and medical device industries, as a Medical Device Company of the Year Trailblazer; and in June, the magazine Red Herring named Celsee as one of the top 100 most promising companies in North America.

Meredith Harper

Detroit

Chief information privacy and security officer, Henry Ford Health System,

Hut Hills

In 20 senio whic man thre abou

Four the a focu divis beltsyste

Hayd infra reso and and nego

From tech Sea

since grow onlin close 2015

Sinc from tech from

Resp lead acro part Mor that allow loan

Befo man

Harper, 45, who got her law degree from Loyola University Chicago, joined Henry Ford in 2003 as its first chief privacy officer after completing a consulting engagement with Health Alliance Plan.

In 2012, Harper was promoted to her current title, with responsibilities for network security, privacy, risk management and access management.

Harper has a reputation for helping women and minorities launch careers in technology, especially in information security, and serves on several advisory boards to help accomplish that.

She is president of the board of the Medical Identity Fraud Alliance; chairwoman of the Michigan Healthcare Cybersecurity Council; a committee member of the Health Information and Management Systems Society; and co-chair of the Detroit Chief Information Security Officer Executive Summit.

best was to 20 Arbo Soft

In 20 web he’d a co was that

Last stak affili Gold roun Mich

Last supp Joha Barl com the 2 First almo McK

ng rime

g an y

O, tics, ip.

e n de of

d

en was

oys

50 NAMES TO KNOW IN IT Candace Hayden Senior vice president of information technology, Hutchinson North America, Auburn Hills In 2013, Hayden, now 51, was named senior vice president of IT for Hutchinson, which employs more than 9,000 at 16 manufacturing locations — 12 in the U.S., three in Mexico and one in Canada — with about $1.2 billion in sales.

Four of Hutchinson’s divisions focus on the automotive industry, and the fifth is focused on aerospace. Its automotive divisions include anti-vibration and belt-drive systems, fluid management systems and precision sealing systems.

Hayden’s specialties include technology infrastructure solutions, enterprise resource planning systems, data security and disaster recovery, quality assurance and IT vendor management and negotiations.

From 2005-2013, she was information technology director for Hutchinson Sealing Systems.

Linglong He CIO, Quicken Loans Inc., Detroit

ed

He, 51, has been CIO since 2010 and an IT executive at Quicken since 1996. Over that time, Quicken has grown to become one of the biggest online businesses in the world, having closed on $80 billion in home loans in 2015.

n d

Since the company moved downtown from Livonia in 2010, He has seen her technology team more than quadruple, from 350 to almost 1,500.

re ed ces. e

a.

ty rd

m

nt.

in

y

re

d

on

13

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

Responsible for the overall vision and leadership for technology initiatives across the organization, He was a critical part of the launch late last year of Rocket Mortgage, an app development project that took years to develop and which allowed customers to manage their entire loan process on their phone.

Before joining Quicken, He was a program manager with U.S. Bank from 1994-1996.

Don Hicks Founder, president and CEO, LLamasoft Inc., Ann Arbor LLamasoft, one of the fastest-growing and best-funded tech companies in the state, was supposed to be a sideline. From 2005 to 2010, Hicks was CEO of another Ann Arbor company, a biotech called DNA Software Inc. In 2004, he had put up a bare-bones website for some supply chain software he’d bought at a discount and had formed a company around it called LLamasoft. It was a nights-and-weekends proposition that took off dramatically in 2009.

Last October, Hicks, 48, sold an equity stake in the company for $50 million to affiliates of New York City-based Goldman, Sachs & Co., the largest round of venture capital funding in Michigan for a nonmedical company.

Last November, LLamasoft bought the supply chain software division of Johannesburg, South Africa-based Barloworld Ltd., and in January the company announced it was moving out of the 24,000 square feet it occupied in the First National Building downtown and into almost 60,000 square feet of space at McKinley Towne Centre.

Jimmy Hsiao

Mike Klein

Founder and CEO, Logic Solutions Inc., Ann Arbor

CEO, Genomenon Inc., Ann Arbor

Hsiao, 53, founded Logic Solutions in 1995 to make custom web applications before most people had any idea what the World Wide Web was. His first product was a prototype software for internet-based collaboration for a major automaker.

In 2008, Logic Solutions began creating smartphone apps.

Today, the company, which employs about 150, has developed web-based applications, websites and mobile apps for more than 2,000 clients, including automotive OEMs, universities, Fortune 500 companies, nonprofits and health care corporations. One was developed for the University of Michigan Medical School’s College of Pharmacy to help patients with atrial fibrillation, or irregular heartbeats, monitor their hearts’ performance away from the hospital or doctor’s office.

In 2000, Hsiao was a member of Crain’s 40 under 40.

Dan Irvin CEO, 123Net Inc., Southfield Irvin, 56, founded 123Net in 1996. Today, through organic growth and a series of acquisitions, it is one of the largest Michigan-based providers of internet and data-center services. It did its first acquisition in 2001, of Local Exchange Carriers of Michigan Inc., and its most recent was in May 2015 of T2 Communications LLC of Holland, its third acquisition in a year.

The company now has four co-location centers in the state and more than 3,200 miles of fiber cable.

In June, 123Net added a wireless point-of-presence site atop the historic Maccabees Building in Midtown, its fifth PoP location in Detroit. With other locations at the Renaissance Center, Fisher Building, Penobscot Building and David Stott Building, it can wirelessly deliver data at two gigabits per second to any location in downtown, Midtown or the New Center.

Fred Jacobs President, Jacobs Media Strategies Inc., Bingham Farms Jacobs Media is an example of an old-school marketing company adapting to the post-iPhone world. The company is credited (or blamed, depending on how you feel about Led Zeppelin and Ted Nugent) with creating the classic rock radio format in the early 1980s.

In 2008, Jacobs, now 65, began helping clients develop smartphone apps, eventually spinning out jacapps LLC as a separate entity.

“At first, we were hesitant. Do we really want to make an investment in something we don’t know? We’re not a software company,” said Vice President Paul Jacobs. “But the business just exploded.”

Jacapps has created 1,000 apps, which have generated more than 25 million downloads for its customers.

In October, Klein, 55, a veteran of the Ann Arbor tech scene, was named CEO of Genomenon, a 2014 spinoff from the University of Michigan that creates genome interpretation software to help provide personalized medicine.

The company, which just launched its first software product, Mastermind, a database of gene variants, won $100,000 last November as the runner-up at the annual Accelerate Michigan Innovation competition in Detroit. In January, it closed on a seed funding round of $940,000 Most recently, Klein was co-CEO of Ann Arbor-based Online Tech LLC, one of the state’s biggest enterprise-hosting, data storage and cloud-services companies, with four data centers in Michigan and one in Indianapolis.

In 1993, Klein founded Ann Arbor-based Steeplechase Software Inc., which brought PC-based controls to the factory floor and was sold in 2000.

Sandy Kronenberg Co-founder and CEO, Service.com, Farmington Hills Last December, Detroit-based Fontinalis Partners LLC led an investment round of $3.5 million for Service.com, a startup that in conjunction with the funding opened a second office, in Columbus, Ohio.

Service.com, founded in 2013, has developed a smartphone app that helps companies manage representatives in the field, such as plumbers, electricians, delivery trucks and heating and cooling contractors. The app allows management to follow the location of vehicles, take inventory, schedule jobs and accept payments. It also alerts customers when their service provider will arrive and sends a photo of the provider. In 2014, the company raised $2 million from a joint venture of BMO Bank of Montreal and Toronto-based RBC Royal Bank.

In 1997, Kronenberg, now 43, founded Auburn Hills-based Netarx Inc., a provider of information technology services. In 2011, the firm, which had annual revenue of $60 million, was sold for $34 million to the Logicalis Group of the Farmington Hills.

Bhushan Kulkarni President and CEO, InfoReady Corp., Ann Arbor; chairman and CEO, GDI Infotech Inc., Ann Arbor Kulkarni, 53, a member of the 2001 class of Crain’s 40 under 40, founded InfoReady in 2010, raising a seed funding round of $1.1 million. An IT services company, it provides daily updates about new grants from federal, state and philanthropic organizations for those seeking funding and is a social media site for the grant-seeking community.

Kulkarni founded GDI Infotech, an IT consulting company with clients across the U.S., in 1993.

He was on the board of trustees at Walsh College from 2000-2009 and is a past chairman of the Ann Arbor Chamber of Commerce.

SEE NEXT PAGE

INCLUDES:

12 tickets

Option to purchase additional tickets

3 suite parking passes

Call 248.377.8477 and provide code:

BLACKFRIDAY

Games eligible: 12/4 vs Orlando, 12/11 vs 76ers, 12/21 vs Grizzlies, 12/28 vs Bucks, 1/3 vs Pacers, 1/5 vs Hornets, 1/18 vs Hawks Offer expires 11/30/16. Based on availibility.

Not valid with any other offers.

14

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

50 NAMES TO KNOW IN IT Craig Labovitz Co-founder and CEO, Deepfield Inc., Ann Arbor Deepfield Inc., which was launched in 2011 with seed funding of more than $1.5 million and is a graduate of the Tech Brewery incubator in Ann Arbor, is a computer-security firm providing real-time big data analytics, network performance management and security for service providers and large enterprises.

In 2011, Labovitz, now 46, was one of the five self-professed geeks and hackers who founded Arbor Networks, a pioneer in internet security that became one of the most successful startups in Ann Arbor history. Its technology was deployed to more than 400 internet service providers worldwide before it was sold to Tektronix in 2010, returning a sizable return to its venture capital backers.

Previously, Labovitz was a research scientist with Microsoft and an engineering manager at the Ann Arbor-based Merit Network, where he worked on the National Science Foundation Network, a precursor of the modern internet.

Joe Malcoun President and CEO, Nutshell Inc., Ann Arbor Nutshell, which was founded in 2011 by two employees in the Ann Arbor office of Barracuda Networks, helps businesses manage their customer relations through software that works on desktops and through apps that work on Android devices and iPhones.

They recruited Malcoun, 38, a veteran of the Ann Arbor tech and investing scene, as CEO. Nutshell has raised $5.5 million in angel and venture capital, including investments by Ann Arbor-based Plymouth Venture Partners and Invest Detroit’s Detroit Innovate fund.

Malcoun is a co-founder and investor in Cahoots Holdings LLC, which last year bought three adjacent buildings on East Huron Street in downtown Ann Arbor. The buildings are undergoing a total rehab and are scheduled to open in the spring as a tech incubator and co-working space for early-stage tech companies as well as the new headquarters for Nutshell.

Jason Mars Assistant professor of computer science and electrical engineering at the University of Michigan; president and CEO, Clinc Inc., Ann Arbor Clinc, which focuses on real-world applications for artificial intelligence, primarily in the red-hot space of the internet of things, was co-founded in 2015 by Mars, 33; Lingjia Tang, also an assistant professor at UM; and two doctoral students, Johann Hauswald and Michael Laurenzano.

Earlier this year, it closed on seed funding of $1.2 million.

Clinc landed two customers almost out of the gate —Ann Arbor-based Notion AI, which uses artificial intelligence for apps that better organize the daily flood of email; and Bankjoy, a Silicon Valley startup that provides mobile banking applications for credit unions and small

50

banks. Clinc won a Best of Show award in September at Finovate, a financial-tech trade show in New York, for an app named Finie, a sort of Siri for your bank account.

Mars previously was a visiting research scientist at Google and a research scholar at Intel Corp.

Bob Marsh Founder and CEO, LevelEleven LLC, Detroit LevelEleven, a cloud-based sales-motivation software company, was founded in 2012 by Detroit Venture Partners and is based in the former Lane Bryant Building in downtown Detroit.

In August, the Detroit-based Ascent Group made the latest investment, of an undisclosed amount, in LevelEleven, following an investment round of $2 million last year, which allowed the company to hire a chief revenue officer and a COO. It now employs 28.

Customers include Symantec, Staples, a division of EMC Software and eBay. In April 2015, LevelEleven was the only early-stage tech company from Michigan and one of 12 in the U.S. to be invited to the annual Google Demo Day in Mountain View, Calif. Prior to founding LevelEleven, Marsh, 43, was senior vice president and head of sales at Pleasant Ridge-based ePrize Inc., now known as HelloWorld Inc.

Molly McFarland Co-founder, chief marketing officer, AdAdapted Inc., Ann Arbor AdAdapted, which was founded in 2012, builds ads specifically designed for mobile devices, creating more click-throughs and less frustration on mobile devices than drop-down and banner ads, which are meant for larger screens. AdAdapted’s customers include the Detroit Lions, Nestle, Chobani and P&G. AdAdapted raised $1.2 million in seed funding and was recently seeking add-on funding to help launch a new product, Add-It, a tool that allows companies to offer promoted items to people as they make online shopping lists for merchants such as Kroger or Meijer.

Last year, AdAdapted, which employs seven, was a co-winner among the 11 firms that made pitches at the Detroitarea Google Demo Day at Grand Circus in Detroit. Previously, McFarland, 34, was marketing director for Amplifinity Inc., an Ann Arbor company that uses social media websites to help companies build their businesses.

Yan Ness CEO, Online Tech LLC, Ann Arbor Online Tech, an early internet provider, was founded in 1994, but it wasn’t until Ness, 54, led a change in ownership and became CEO in 2003 that the company began to take off. In 2015, it was honored with its eighth consecutive Fast Track Award by Ann Arbor Spark for its consistent growth, which has averaged more than 20 percent a year.

Online has morphed as the web went from slow dial-up to lightning fast capabilities stored in the cloud. It employs 70 and is one of the leading enterprise-hosting and cloud-services IT

companies in the state, offering co-location, offsite backup and disaster-recovery services through four data centers in Michigan and one in Indianapolis, which opened in 2014.

In 2012, the News-Press & Gazette Co. of St. Joseph, Mo., looking to diversify, invested $20 million to buy a majority stake in Online Tech.

Beth Niblock Chief information officer, city of Detroit Niblock, 56, was part of a White Houseapproved IT task force in 2013 evaluating Detroit’s systems, and Mayor Mike Duggan was so impressed he began recruiting her. Niblock was CIO of both the city of Louisville and Jefferson County in Kentucky, overseeing all information and telecommunications technologies. It was a post she held from 2003 until leaving for Detroit.

When Duggan first offered her a job by phone, she was adamant about staying in Kentucky. So he immediately drove to Louisville, took her out to dinner and continued what ultimately was a successful sales pitch.

Since arriving here in February 2014, she has replaced the city’s email system, installed mobile apps that allow residents to report service problems, and posted police, fire, demolition and other city data online. Her Department of Innovation and Technology has grown from 60 workers to 130 since the city exited bankruptcy.

In June, she was named by Crain’s as one of the 100 most influential woman in Michigan.

Matt O’Bryan President and CEO, KLA Laboratories Inc., Dearborn KLA Laboratories, a family-run business founded in 1929, does a range of IT and communication services, including installing audio and visual systems, building Wi-Fi networks and providing event production services.

It has managed the Detroit Tigers’ public address systems since 1935 and sold the microphones Motown used to record the Four Tops, Temptations and Supremes. It landed as customers the Detroit Lions in 1951, Oakland Hills Country Club in 1954 and the Detroit Pistons in 1987.

Now, KLA designs and builds wireless local area networks and distributed antenna systems for sports stadiums, conference centers and hospitals, and has installed systems at the University of Michigan’s Big House in Ann Arbor, Spartan Stadium at Michigan State University and Ohio Stadium at Ohio State University.

O’Bryan, 48, a member of the 2007 class of Crain’s 40 under 40, said KLA has grown from 38 employees and $6 million in revenue in 2009 to more than 150 employees and revenue of about $40 million this year.

Christopher O’Malley President and CEO, Compuware Corp., Detroit O’Malley, 53, took the helm of Compuware after the company was taken private by the Chicago-based private equity firm Thoma Bravo LLC in 2014. What had been a public company was split in two, with the fast-growing business unit that did application performance monitoring for other companies rebranded as Dynatrace and moved to Boston.

O’Malley was left with what was considered a dying dinosaur, selling software and services for mainframe computers, but he told Crain’s at the time that he would prove the experts wrong and run a growing business.

A 30-year veteran of the IT business, O’Malley was CEO of Chicago-based Nimsoft and then Chicago-based VelociData before joining Compuware.

From 1988 to 2012, he held a variety of executives positions with New York-based IT giant CA Technologies.

Compuware has made two acquisitions and has launched at least one new product for eight straight quarters, the first new products since 1999. “We’re winning the war. We’re changing minds about the mainframe,” said O’Malley.

Jayashree Ravi Founder and director, Mobi Boot Camp Corp., Troy Ravi, 49, who has developed several apps for Android, founded Mobi, which trains students in mobile application development, in 2013.

She is also an advisory board member for the Anderson Engineering Ventures Institute at Wayne State University, which was founded in 2014 to encourage the formation of startup companies by engineering students.

An adjunct professor at Wayne State since 2012, where she teaches mobile app development, previously she was a software engineer at Gale, a consultant with Xede Consulting Group and a software developer at Chrysler Corp. and Flagstar Bank.

Damien Rocchi Co-founder and CEO, Grand Circus, Detroit Grand Circus, an IT training institute, was founded by Rocchi and Bradley Hoos in 2013 with more than $1.5 million in funding from Detroit Venture Partners.

Almost 2,300 have attended its classes, boot camps, seminars, workshops and youth programs.

More than 200 graduated from its classes last year, with more than 90 percent getting placed in fewer than three months into 60 partner companies, including General Motors Co., Ford Motor Co., DTE Energy Co. and Blue Cross Blue Shield of Michigan.

About 39 percent of the grads were female, and 37 percent minority. Courses are both for those with no coding background and those looking to burnish their skills.

This year, Grand Circus launched free coding camps for women in Flint and Detroit and partnered with Google for

Entrepreneurs to be one of 10 companies nationwide to hold an entrepreneur-inresidence program for African-American and Hispanic business owners.

A native of Australia, Rocchi, 44, was previously director of data and business information for Fairfax Media in Sydney, Australia.

David Segura

Detroit

to ta use t to ta

Sher has s Spa Com Was publ We B

Founder and CEO, Vision Information Technologies Inc.,

There are two LLCs under the Vision Information umbrella — VisionIT, a software development company and systems integrator, and VisionPro, a staffing company — with a total of 900 employees in 20 U.S. locations and operations in Mexico and the Philippines.

Segura, 46, who founded his company in 1997, has carved out a space in his Midtown headquarters called the Innovation Studio to explore new applications for such things as the internet of things, virtual and augmented realities and data analytics.

The first product is a partnership with Microsoft Inc. and the Henry Ford Health System called StatChat, which lets nurses, doctors and others in health care track patients remotely, whether by a desktop computer, laptop, notebook or smartphone.

Neetu Seth Founder, president and CEO, NITS Solutions, Novi Seth founded NITS, a staffing and IT company, in 2009, not a good time to start a business, and growth was slow at first. But in 2014, the same year Seth was a semifinalist for the Ernst & Young entrepreneur of the year for the Michigan and Ohio region, NITS was named by Inc. Magazine as the 187th fastest growing of the 1,000 private companies that made its annual list.

NITS made the list again last year, coming in at No. 576, having grown revenue in 2014 to $3.2 million for three-year growth of 797 percent. Seth, 45, says the company is on track to double revenue this year to $10 million.

NITS’s software allows original-equipment manufacturers of automotive and heavy truck equipment, along with suppliers, dealers and aftermarket parts retailers, to see where products are coming from and going. It also manages email blasts and makes sales calls on behalf of clients.

Rich Sheridan Co-founder and CEO, Menlo Innovations LLC, Ann Arbor Sheridan, 59, was fed up with lousy software and bad corporate management when he co-founded Menlo with the mission statement of “To end human suffering in the world as it relates to technology.”

Menlo, which employs about 60, creates software that acts as an interface between end users and complicated equipment. For example, Ann Arborbased Accuri Cytometers Inc. built a bench-top cytometer that was much smaller and cheaper than traditional cytometers, which helps researchers do cell analysis, and its customers were able

with carv With work Quic Corp mak Tech

The Glob hard elect Gadg Cong

Siga a de softw $10,0 sold nam their

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

Special Advertising Section15

50 NAMES TO KNOW IN IT

nies nan

ss ney,

to take the machines out of the box and use them in minutes, compared to having to take training classes.

Kurt Skifstad

Sheridan, 59, is a community activist who has served on the boards at Ann Arbor Spark, the Ann Arbor Chamber of Commerce and the United Way of Washtenaw County. In 2013, Penguin published Sheridan’s book Joy, Inc.: How We Built a Workplace People Love.

CEO, ArborMetrix Inc., Ann Arbor

Jake Sigal

ion c.,

0

nes. in

ted

h

ch th by a or

h

Co-founder and CEO, Tome Inc., Royal Oak Sigal, 35, and Massimo Baldini founded Tome in 2014 with a seed funding round of $250,000 to carve out a niche in the internet of things.

Within a year, it was profitable and working on projects for Detroit-based Quicken Loans Inc.; Humanscale Corp., a large New York City furniture maker; and Dearborn-based Ford Global Technologies LLC. The first project Tome did with Ford Global involved designing the sensors and hardware that were the brains behind an electric bike that won the Best ProductGadget award at the Mobile World Congress in 2015.

Sigal was previously CEO at Livio Radio, a developer of in-vehicle connectivity software he founded in 2008 with $10,000 borrowed from his parents and sold to Ford in 2013. In 2010, Sigal was named to that year’s class of Crain’s 20 in their 20s.

Skifstad, 52, a serial entrepreneur who has founded or run five startups, in November 2015 was named CEO of ArborMetrix, a software company that helps health care providers measure cost and quality improvement.

Previously he had been CEO of Ann Arbor-based Kontextual, a cloud-based platform that helps enterprises create metric-driven cultures.

Blue Cross Blue Shield of Michigan helped ArborMetrix prove the concept that it could analyze data from hospitals to help define best practices, to correlate procedures with high infection and complication rates, and help lower costs by showing benefits — or the lack thereof — of certain procedures or devices.

The company has raised $17 million in venture capital and employs 40.

Dug Song

who’s-who of national and international companies, including Facebook, Paramount Pictures, Random House, Twitter and NASA. The company has more than 200 employees, most of them in Michigan, and in April signed a lease for a second downtown Ann Arbor location, 30,000 square feet that will allow it to more than double its current workforce.

Duo, which has raised $47 million in venture capital from several firms in Silicon Valley, also has offices in London; Austin, Texas; and San Mateo, Calif.

In 2009, Song, now 41 and a member of the 2012 class of Crain’s 40 under 40, founded the Tech Brewery, a co-op/ incubator space in Ann Arbor whose venture capital-funded alumni include Deepfield, Sidecar, Sight Machine and QuadMetrics.

In 2000, he was one of five selfproclaimed geeks and hackers who co-founded Arbor Networks, a pioneer in internet security that was highly profitable and sold to Tektronix in 2010.

Duo Security, which was founded in 2010, is one of the fastest-growing and best-funded IT startups in state history, offering what is called two-factor authentication to identify who is trying to access a computer or network to a

Ann Arbor

million users in 43 states. By mid-2016, it was generating revenue of $6.5 million annually.

While still at Barracuda, they founded Nutshell in 2011 and Notion AI in 2013.

Nutshell, which makes customer relationship management software, has raised about $5.5 million in venture capital funding. In October, Notion AI, which uses artificial intelligence to better organize what has become the daily flood of email, closed on a round of $9.5 million.

Prior to Varsity News Network, Vaughn, 31, was entrepreneur-in-residence at the Grand Valley State University’s Center for Entrepreneurship and Innovation; and director of e-commerce for the Good Automotive Group in Grand Rapids.

It launched its first apps, available for free download from iTunes and Android, in October.

Suter, 37, is also co-founder of Cahoots Holdings LLC, which last year bought three adjacent buildings in downtown Ann Arbor and is doing a rehab for a tech incubator and co-working space it hopes to have up and running next spring.

Ryan Vaughn Co-founder and CEO, Varsity News Network Inc., Grand Rapids

Guy Suter

Founder and CEO, Duo Security Inc., Ann Arbor

backup and recovery. In 2008, they sold it to Campbell, Calif.-based Barracuda Networks Inc. and moved to Ann Arbor.

Co-founder and CEO, Notion AI Inc., Ann Arbor; co-founder and chairman of the board, Nutshell Inc.,

In 2005, Suter, Ian Berry and Lindsay Snider founded a Carlisle, Pa.-based company called BitLeap, which did data

Varsity News was founded in 2010 to provide a web-based platform for schools to post content about their sports programs. It won the grand prize of $500,000 at the annual Accelerate Michigan Innovation in Detroit in 2013 and raised $3 million in venture capital in 2014 and $3.7 million in 2015.

Today, it has about 1,750 U.S. schools and 500 middle schools as customers and 7

Krischa Winright Senior vice president of information services, Spectrum Health; chief information officer, Priority Health, Grand Rapids Winright, 47, joined Priority Health in 1999 as vice president of information technology, was promoted to CIO in 2011 and was named senior vice president of information services for Spectrum in 2012.

She manages a staff of more than 200 and is responsible for web and application development; enterprise business services; informatics and analytics and information security.

Winright is also a member of East Lansing-based Michigan Health Information Network Shared Services, a health information network created to coordinate the statewide capability for health care organizations to securely and electronically exchange health information.

t

S, a

SPECIAL ADVERTISING SECTION

2016 CORPORATE GIFT GUIDE

at was

gan nc. of de

ming

wth

e

ment avy , s, to and d

EO, ons

HOLIDAY SALE at

Original art, limited edition prints, sculpture, fossil art, posters & more Decorating your home or business on a budget is our specialty!

GIFT CERTIFICATES & LAY-A-WAYS AVAILABLE

'SRWMHIV XLI KMJX XLEX HIPMKLXW IZIV] HE] 8LEX W [LEX SYV GYWXSQIVW XIPP YW Nelson McKinnon (810) 252-2436 • Deborah Benedic (586) 206-1168

Gallery Hours: Mon-Sat Noon-6pm (or by appointment) 81 Macomb Place • Mt. Clemens, MI 48043

SHIPPED

OUR MACKINAC ISLAND SHOP IS OPEN TO MAKE HOLIDAY

)UHVK FOR YOU!

SHOP ONLINE NOW!

6ZHHWV

ment

with custom

es

a

do ble

MAKE Reprints, THE MOST E-prints OF YOUR EDITORIAL

COVERAGE IN CRAIN’S

and more!

3XUH 0LFKLJDQ / 1 .<; A variety of gift box options are available for your clients, friends and family. +=;<751B- A7=: /1.< 7:,-:

7]Z [_MM\ KWV[]T\IV\ _QTT UIVIOM M^MZa LM\IQT 586-322-6060

CONTACT: Krista Bora at kbora@crain.com

ORIGINALMURDICKSFUDGE.COM

16

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

Snyder picks former MIS president to lead Michigan talent department

By Lindsay VanHulle

Crain’s Detroit Business/Bridge Magazine

LANSING — The former president of Michigan International Speedway has been tapped to lead the state’s talent development efforts.

Roger Curtis will take over Nov. 28 as director of the Michigan Department of Talent and Economic Development, Gov. Rick Snyder’s office said last week.

He will assume the role from Steve Arwood, who will continue as CEO of the Michigan Economic De-

ADVERTISEMENT SECTION

ACCOUNTING

velopment Corp.

Curtis, 49, will lead the department that includes the MEDC, the Talent Investment Agency and the Michi-

gan State Housing Development Authority. Arwood, 53,

previously led both the talent department and the MEDC. He will report to Roger Curtis: To Curtis. take over on Snyder’s office said the govNov. 28. ernor believes it is time to split the leadership of the department and the MEDC to give talent its own focus for the remainder of his term, which ends in 2018.

Snyder has heard from employers who have trouble filling open positions and will make talent one of his administration’s top priorities for the next two years, a spokeswoman said.

Curtis left MIS in August after 10 years as pres-

Global Board Integra International Fenner, Melstrom & Dooling, PLC Brian Hunter, partner at Fenner Melstrom & Dooling, PLC was elected to serve a 2 year term on Integra International’s Global Board. The election took place in October at Integra’s World Wide Conference in Cape Town, South Africa. Integra International is headquartered in London, UK and ranked as one of the top 20 international accounting associations in the world. It has members in 63 countries & 170 cities and assists its member in meeting the global financial services needs of their clients.

STAFFING & SERVICES

Sheriff Michael Bouchard — Leading in Times of Chaos. 7:30-9 a.m. Nov. 29. Leadership Oakland.

Earning It: A Conversation With Pulitzer Prize Winner Joann Lublin. 7:30-9:30 a.m. Dec. 13. In-

The Oakland County sheriff shares what it’s like to lead in turbulent times in law enforcement. Troy Community Center. $32 members; $36 nonmembers.

Website: leadershipoakland.com.

forum. Lublin, author of Earning It: Hard-Won Lessons from Trailblazing Women at the Top of the Business World, will share insights from trailblazing executive women who broke the corporate glass ceiling and reached the highest rungs of the corporate ladder — most of whom became chief executives — in retailing, manufacturing, finance, high technology, publishing, advertising, automobiles and pharmaceuticals. Great Lakes Culinary Center, Southfield. $35 members; $50 nonmembers. Website: inforummichigan.org.

Detroit Economic Club. A lack of public funding and the resulting economic reality force private higher education institutions to be responsive to student demands and employer needs.

Speakers include Stephanie Bergeron, president and CEO, Walsh College; Virinder Moudgil, president and CEO, Lawrence Technological University; and Keith Pretty, president and CEO, Northwood University. MotorCity Casino Hotel, Detroit. $45 members; $55 guests; $75 nonmembers. Website: econclub.org.

MichAuto’s Annual Meeting: The Convergence of Auto and Tech in Michigan. 4 p.m. Dec. 8. De-

troit Regional Chamber. Discussion on how culture is a critical success factor for Michigan and its automotive industry to evolve, grow and compete. Automotive Hall of Fame, Dearborn. Free for members; $50 nonmembers.

Contact: Sarah Nagel, phone: (313) 596-0384; e-mail: snagel@detroitchamber.com.

Ron Peace

inGAGE Role Model and Investor Series with Gwen Jimmere. 7:30-9 a.m. Dec. 8. Inforum. Gwen Jimmere, founder and CEO of Naturalicious and co-founder of Pitch Proof, shares

GTA Professional Staffing

her entrepreneurial journey, as the first African-American woman to hold a U.S. patent for a natural hair care product. Comerica Bank, Livonia. Free. Website: inforummichigan.org.

Executive Vice President of Operations

Ron Peace, a long time GTA executive has risen to the Executive VicePresident of Operations position for GTA Professional Staffing. In his new role, Ron will oversee all of the operations of GTA and will report directly to the Chairman of the Board.

Ron is a veteran of the staffing industry who has held top leadership positions within Lear Corporation and served at Kelly Services prior to joining GTA in December of 2012. He was a senior account executive on major accounts since joining GTA.

Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle

CALENDAR

Michigan’s Private Higher Ed: A Powerful Workforce Generator. 11:30 a.m.-1:30 p.m. Nov. 30.

Brian J. Hunter

ident of the track near Brooklyn, in the Irish Hills area south of Jackson. He previously worked in management roles at racetracks in Virginia and New York owned by Daytona Beach, International Fla.-based Speedway Corp., which also owns MIS. Steve Arwood: Curtis has a bachelor’s deWill continue as gree in marketing from IndiCEO of MEDC. ana State University. He is on the board of the Make-A-Wish Foundation of Michigan and is treasurer of the board of Onsted Community Schools in Lenawee County.

The talent and economic development department was created via executive order in 2015.

Hyper-Partisanship and the Changing Nature of News. 11:30 a.m.-1:30 p.m. Dec. 12. Detroit Economic Club. Mark Thompson, president and

CEO of the New York Times, will discuss the corrosion of language and debate, which he identifies as a particular challenge for news publishers. MotorCity Casino Hotel, Detroit. $45 members; $55 guests; $75 nonmembers. Website: econclub.org.

The Big Four. 11:30 a.m.-1:30 p.m. Jan. 17. Detroit Economic Club. Detroit Mayor Mike Duggan, Wayne County Executive Warren Evans, Oakland County Executive L. Brooks Patterson and Macomb County Executive Mark Hackel will discuss regional successes, issues and their plans to drive the Southeast Michigan region forward. The meeting will take place during the 2017 North American International Auto Show and will also include the unveiling of the 2017 Detroit News Readers Choice Awards winners.

Cobo Center. $45 members; $55 guests; $75 nonmembers. Website: econclub.org.

Ten Key Questions for Leaders: Moving From the Urgent to the Important. 8-10:30 a.m. Jan. 20. Marketing and Sales Executives of Detroit.

Priscilla Archangel, president of Archangel & Associates LLC, talks about the key important

questions, that if properly addressed at individual, team and organizational levels, will strengthen your company’s effectiveness.

Management Education Center, Troy. $45 members; $60 nonmembers. Website: http:// www.msedetroit.org.

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.

PEOPLE: SPOTLIGHT Sherard-Freeman named to lead DESC Detroit Employment Solutions Corp., Detroit’s workforce agency, has named Nicole Sherard-Freeman president

and CEO, beginning in January.

SherardFreeman, 50, succeeds Jose Reyes. He has been interim president Sherard-Freeman and CEO of the agency since April, when former head Pamela Moore left to take the helm of the Detroit Public Schools Foundation.

Sherard-Freeman joins DESC from the Corporation for a Skilled Workforce in Ann Arbor, where she was director of the organization's Detroit portfolio. Before that, she was principal of GamePlans LLC, a strategic consulting company, and vice president of consulting solutions for The Droste Group Inc. in Troy.

Meadowbrook Group president-CEO exits Robert Cubbin, president and CEO of Southfield-based Meadowbrook Insurance Group, stepped down last week in a top management move that also resulted in Mike Costello, senior vice president and general counsel, leaving the company.

Kenn Allen, former executive vice president and president of Meadowbrook Insurance Agencies, replaced Cubbin.

UM tech transfer center names director Mike Psarouthakis has been named director of the University of Michigan’s Tech Transfer Venture Center in Ann Arbor. He replaces Jack Miner, who left in September to become managing director of Cleveland Clinic Ventures.

Psarouthakis joined the center in 2014 as a senior venture specialist and was most recently assistant director for physical science ventures. He also was vice president of business acceleration at the Michigan Economic Development Corp.

Metro Times hires editor Ferndale-based alt-weekly Detroit Metro Times has hired its fourth top editor in three years.

Leyland “Lee” Devito will serve as its editor-in-chief.

Devito, 30, replaces Dustin Blitchok, who resigned this month after nine months in the post. Devito joined Metro Times from Hour Detroit, where he had been associate editor for nine months. He was a Metro Times staff writer between 2013 and earlier this year.

November 21, 2016

Owner working on plans for long-vacant Kmart HQ in Troy

By Kirk Pinho kpinho@crain.com

The long-vacant former Kmart Corp. headquarters in Troy is undergoing a master-planning process and more details are expected to be known in the next six to nine months, according to the property’s owner.

Nate Forbes, managing partner of Southfield-based Forbes Co., said in response to an audience question during a panel discussion last week that his company is “in the middle of a master-planning exercise” for the 1.1 million-square-foot vacant office building on Big Beaver Road and Coolidge Highway.

“We feel the need in Troy for a real communal place, a central gathering spot, surrounded by some potential lifestyle and other-type uses complementary to Somerset,” said Forbes, who owns the nearby Somerset Collection shopping mall.

He said there should be “something to show the marketplace” in the next six to nine months.

Forbes was speaking on a Univer-

AUTISM FROM PAGE 3

brutally honest, which can come across as rudeness.

The program was developed with the Autism Alliance of Michigan, a nonprofit founded by Dave Meador, vice chairman and chief administrative officer at DTE Energy Co. Autism Alliance trained Ford staffers how to interact with their new colleagues with autism, including creating direct, concise job functions as well as understanding the employees’ social limitations.

Ford’s vehicle evaluation and verification test lab participated in the pilot program, and Ford will expand the new hires into information technology and digital innovation departments, Queen said.

The 60- to 90-day ramp-up process has begun, and the jobs are expected to be filled in January.

The new positions will require a bachelor’s degree, as did the previous positions.

Ford receives a federal work opportunity tax credit of $2,400 per adult with autism it hires. That credit, however, does not completely offset the costs of the program, said Colleen Allen, president and CEO of the Autism Alliance.

Since Ford began its program in June, dozens of other companies have sought similar programs through the Autism Alliance. The organization is working with 38 companies, either on creating programs or are already commencing pilot programs.

Allen declined to name the other companies as they navigate through their initial pilot programs, but they include 10 banking and finance firms, seven manufacturing companies, three IT companies and others in different industries.

17

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6 CRAIN’S DETROIT BUSINESS

sity of Michigan/Urban Land Institute

Real Estate Forum panel with Robert Taubman, chairman, president and CEO of Bloomfield Hills-based Taubman Centers Inc. The event took place at the Max M. and Marjorie S. Fisher Music Center in Detroit.

After Kmart vacated the office complex in the mid-2000s and moved to Illinois as a subsidiary of Sears Holdings Corp., the plan was for a $320 million redevelopment called the Pavilions of Troy. Reston, Va.based developer Richardson Development Group Inc. was to be the developer; New York City-based equity fund BlackRock Inc. owned the property at the time.

BlackRock paid $40 million for the Kmart property in December 2005, according to CoStar Group Inc., a Washington, D.C.-based real estate information service.

That project would have had 440,000 square feet of commercial and retail space, 132 residential units, a public ice rink, a 3,000-seat theater, restaurants and a grocery store. But under the weight of the “The expressed interest has shot through the roof this year,” Allen said.

“We’re definitely ahead of the curve nationally.”

Allen said the only limitation is the organizations’ ability to keep up with demand. Roughly 200 adults with autism are looking to get placed.

“We’re not in a hurry; we’re not going to just dump someone in an open position,” Allen said. “This is a thoughtful process, and we want to make sure we get it right” to benefit the employee and encourage the company to participate further.

Autism represents a hefty economic question as more and more of those diagnosed reach working age.

It’s imperative that employers in Southeast Michigan, and the U.S., adapt or miss out on a productive population with specialized skills, Allen said.

Autism’s costs are growing — estimated at $268 billion annually in the U.S. on treatment and loss of productivity in 2015, rising to $461 billion, or 1 percent of U.S. gross domestic product, by 2025, according to a 2015 study by researchers at the University of California-Davis and the University of Denver. Diabetes and attention deficit and hyperactivity disorder are the only diseases that cost more than autism, and neither generally prevents people who have them from working.

In the U.S., it’s estimated that more than 3.5 million people and one in 68 children (one in 42 for boys) being born have autism spectrum disorder — a complex brain condition associated with poor communication skills — according to a 2014 Centers for Disease Control and Prevention study. In Michigan, the state estimates there are 50,000 or more adults with autism, and growing.

It’s called a spectrum because the

economic recession, those plans collapsed.

Both the Kmart property and the Somerset Collection are owned by Forbes Frankel Troy Ventures LLC. The Detroit Free Press reported the December 2009 sale price of the Kmart property as $17.5 million.

Sidney Forbes, founder of Forbes Co., told Crain’s in 2012 that the purchase of the Kmart property “was a defensive move” after Farmington Hills-based Grand/Sakwa Development began courting Somerset Collection tenants for a retail development.

“So when we had the opportunity to buy that land, we took it,” Sidney Forbes said four years ago.

Grand/Sakwa's plans stalled at the Troy City Council and there has been little action on it since.

At its peak, the Kmart property accommodated 5,000 employees.

When it was sold in 2005, it had fewer than 1,900, many of whom were transferred to Illinois.

REAL ESTATE OFFICE BUILDING

NORTHVILLE TECHNOLOGY PARK

SPEC BUILDING COMING SOON! - MID 2017 COMPLETION 5 MILE AND BECK ROAD | NORTHVILLE TOWNSHIP, MICHIGAN

70,000 SF - 120,000 SF • NEW CORPORATE FACILTIY FOR OFFICE, HI-TECH AND R&D • IMMEDIATE ACCESS TO M-14/I-275 VIA BECK ROAD FOR MORE INFORMATION CONTACT

ED WUJEK • DAVID GILTNER • BRANDON CARNEGIE 248.353.5400 edward.wujek@cbre.com

Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

info@amsondevelopment.net

JOB FRONT PUBLIC RELATIONS

Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

symptoms can range from not understanding nonverbal communication, to lack of empathy, to obsessive-compulsive behavior, to never speaking. Less-severe cases are often called Asperger’s syndrome, but many experts no longer use that term.

More than half of people diagnosed with autism have average to above-average intelligence, according to a 2014 study.

Companies are becoming more aware of the benefits of hiring adults with autism, thanks to early adopters like Walgreen Co. In 2007, Walgreens opened a distribution center in Anderson, S.C., and piloted a program to employ workers with disabilities — 33 percent of the nearly 300 workers at that time — many of whom had autism.

To accommodate workers with autism, managers are instructed to avoid metaphors and use direct instruction and outfit a break room with beanbag chairs and puzzles to calm workers with autism who may feel sensory overload from the loud, often frantic pace of a distribution center, Workforce magazine reported in 2012.

The Anderson center now employs more than 40 percent with disabilities, and Walgreens opened a similar facility in Connecticut in 2009.

Allen said Southeast Michigan will be successful when autism hiring expands beyond seeking highly skilled adults with autism and looks to match those in every category with jobs they can do.

“There’s a perception now that those on the spectrum are these really smart, highly functional people,” Allen said. “Not everyone has three degrees.”

Page 17

We welcome Lupita Distaso as our new Purchasing Team Leader Ms. Distaso brings a wealth of purchasing and leadership experience from previous roles at Diversified Restaurant Holdings and Little Caesar Enterprises.

Her business philosophy is based on trust, transparency, dedication and teamwork.

Join our team! Visit www.nationalfoodgroup.com/careers today.

MISCELLANEOUS

SURVEY ANALYZE MATCH

MARKET PLACE ENTERTAINMENT SERVICES Detroit’s Funniest Comedy Magician Strolling Magic For: Corporate Events, Holiday Parties & Hospitality Suites

CrainsDetroit.com/JobConnect |

Mike Thornton

MagicShowz.com 734-744-9600

INDUSTRIAL SERVICES

The Crain’s reader:

26.5% influence the purchase of office/industrial and commercial space.

Help them find you by advertising in Crain’s Real Estate section.

313.446.6086 • FAX: 313.446. 034 7 E-Mail: cdbclassified@crain.com

C.W. JENNINGS INDUSTRIAL EXCHANGE Global Industrial Consulting Construction • Acquisitions Exporting • Financing (855) 707-1944 LEGAL SERVICES

MEDICAL COLLECTIONS 38 YEARS EXPERIENCE WORKERS COMPENSATION & AUTO Reasonable fees contingent upon recovery Highest Peer Rating Former Adjunct member of Workers Comp Appeal Board

WILLIAM S. STERN - 248-353-9400

www.sternlawfirm.com

Call or email today for information on a custom advertising plan!

cdbclassified@crain.com 313.446.6068

18

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

NEWS FROM PAGE 1

joint business functions — advertising, printing, delivery, etc. — under an entity now called Michigan.com (formerly the Detroit Media Partnership) while maintaining separate newsrooms.

The current agreement supplanted a 100-year JOA formed by Gannett Co. Inc. (NYSE: GCI) and now-defunct Knight Ridder Inc., the former Free Press owner, in 1989.

That means that as soon as August 2018, persistent annual losses could trigger the end of the JOA by either newspaper’s corporate owner — McLean, Va.-based Gannett in the case of the Free Press, and New York City hedge fund Alden Global Capital LLC for the News.

“When the numbers say to stop having two papers, they’ll stop it,” said Hutton. “Gannett is responsible to its shareholders, not to the idea of a two-paper town.”

It isn’t known if the papers are profitable now. Aaron Velthoven, spokesperson and vice president of marketing for Michigan.com, didn’t respond to a request Thursday about whether the partnership was losing money. But losing money has been nothing new for the JOA. David Hunke, Free Press publisher and partnership CEO until moving to Gannett’s USA Today in 2009, said publicly that year that the joint newspaper operation was losing money.

Then-partnership spokesman Rich

CHRIS EHRMANN

The papers have joint business functions, while maintaining separate newsrooms.

Harshbarger said in August 2010 that it was “working toward profitability” but was still losing money.

Hutton said the Detroit Media Partnership was “profitable but not overwhelmingly so. We were already grappling with declining circulation, and advertising dollars were declining as circulation declined.”

Last Tuesday, the News offered buyouts to its entire editorial staff, seeking an unspecified number of job reductions, and on Thursday, the Free Press asked for volunteer layoffs among targeted members of its editorial staff, including four assistant editors, four web staff members, three reporters, three copy editors, two photographers and one page designer.

Both rounds of cutbacks are required to meet 2017 budgets.

Those at the Free Press who volunteer to take buyouts will get two weeks of severance for every year of service, up to 40 weeks. The volunteers have until mid-December to notify man-

agement before it begins layoffs. At the Detroit News, managers seek volunteers by the end of November.

A memo sent to employees by News Editor and Publisher Jonathan Wolman offered buyouts to everyone in the newsroom regardless of age and duties. It's unknown how many need to volunteer to take a buyout to meet the budget goal. Volunteers will receive one week of severance pay for every six months of employment, with a maximum of 26 weeks of pay.

In recent years, the Free Press has reduced headcount through rounds of buyouts, early-retirement incentives and layoffs, and it has required staff to take unpaid furloughs and pay freezes.

Both papers and the partnership reduced headcount by 260 through buyouts between October 2007 and July 2008. An additional 125 jobs were collectively eliminated in June 2010, and there have been periodic job cuts since then.

Ad revenue falls off cliff The staff reductions come amid an accelerating drop in print advertising.

According to GroupM, an ad-purchasing firm owned by WPP PLC, global spending on newspaper print ads is expected to decline by nearly 9 percent to $52.6 billion this year, the biggest drop since a fall of 13.7 percent during the Great Recession in 2009.

According to a 2014 report by the Pew Research Center’s Project for Excellence in Journalism, total print advertising revenue for newspapers na-

tionwide in 2013 fell to $17 billion, down from a 2005 peak of $47.4 billion. The bulk of that has been in the loss of classified ads, which once filled entire sections of newspapers but have almost entirely migrated to such online sources as Craigslist and Facebook.

“I remember we used to say ‘no’ to retailers who wanted ad space on Page 3. We used to agonize over whether to sell ads on section fronts,” said Hutton.

“Now I look back and say, ‘We were so clueless.’ Why didn't we see it coming?

Maybe we couldn’t see it. The guy who sold blocks of ice wasn’t the same guy who sold refrigerators. The guy who sold ice by the block went away, but ice didn’t.”

Growing digital revenue for newspapers hasn’t come close to making up for the print-ad loss. According to Pew, digital revenue was just $3.4 billion in 2013, up slightly from $3.3 billion the year before. For Gannett, digital revenue dropped 5 percent in 2015 to $424 million from $447 million, according to Pew. Much of the digital ad dollar is going to Google and Facebook, which accounted for almost two-thirds of digital advertising revenue in 2015, according to the Interactive Advertising Bureau.

Ellyn Davidson, managing partner at Birmingham-based ad agency Brogan & Partners, said the digital space has opened several new doors to advertisers and relying on any single daily newspaper for ad buys is a thing of the past.

“If we were talking 20 years ago ...

Health Care Experience

In Your Corner.

®

Ŷ Focused on health care law for systems, physicians and payors in all market segments. Ŷ Third party reimbursement, public and private health care provider financing, and commercialization of physician inventions and ideas.

First Tier Ranking in Health Care Law Ŷ

Detroit

Ŷ

Novi

Ŷ

Grand Rapids

Ŷ

Kalamazoo Ŷ Grand Haven

Ŷ

Lansing

Ŷ

Ann Arbor

Ŷ

Hastings

Contact Scott Alfree at sdalfree@varnumlaw.com

losing a daily would be a much bigger deal (for advertisers), but today, while it’s completely sad if that happens, it wouldn’t have a tremendous impact,” Davidson said. “We can reach people in Southeast Michigan in so many different ways online, we don’t have to look exclusively at The Detroit News or the Detroit Free Press.”

Newspapers have poured a lot of resources into the websites, the News and Free Press included, but digital revenue growth remains difficult, “especially with Facebook sucking up all the digital growth,” said Edmonds.

Newspapers around the world have cut staff this year, and Jefferies & Co., the New York-based analyst, has cut third-quarter projections for such publishers as Gannett and the New York Times Co.

In the past, the Poynter Institute’s Edmonds has been critical of JOAs, saying the Newspaper Preservation Act passed by Congress in 1970 to allow them had the unintended consequence of actually harming newspapers in cities where they went into effect.

Newspaper JOAs peaked in the 1990s with 28, but the agreements have fallen from favor down to just five, including the Detroit Media Partnership and others in Fort Wayne, Ind.; Las Vegas; Salt Lake City; and York, Pa. Most JOAs ended in the discontinuation of print publications, mergers between two, or the conversion of one newspaper to online-only.

Gannett is the owner of the York Daily Record in Pennsylvania, which operates in a JOA with The York Dispatch, owned by Buckner News Alliance.

Gannett has been involved in other JOAs in the past, including one between The Cincinnati Enquirer and The Cincinnati Post. That JOA expired in 2007 and The Post ceased print publication and went to online only at the end of that year.

“JOAs are on the way out,” Edmonds told Crain’s Thursday.

“The best online content is still being produced by newsrooms, but the revenue isn’t coming to the people who generate that content,” said Hutton. “The aggregators are generating the revenue from content they don’t create. They were smart enough to figure that model out."

Erik Gordon, a professor at the Ross School of Business at the University of Michigan, said he thinks it is inevitable that Detroit will become a one-paper town.

“Every time there is a round of layoffs, you think maybe that’s all they need to stabilize their finances,” he said. “And it always turns out to be wishful thinking.

“What will the bottom be? When one of them closes? It looks like only Chicago and New York will be able to remain as two-paper towns. But a one-paper town is better than a no-paper town. There are a lot of those now.

I live in Ann Arbor, and a few years ago, we became a no-paper town, which is good for politicians but not for the people.”

Bill Shea also contributed to this story.

Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh Tom Henderson: (313) 446-0337 Twitter: @TomHenderson2

19

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

“These are global parts on global platforms from global companies. Do you chase automaker imports around the world?”

THE ADVISOR

manufacturing, we must work together. We must get everyone – including our small and medium-sized manufacturers — on board. Collaboration will be the key to ensuring our region is prepared for Industry 4.0 and for future advancements in the robotics and automated systems arenas.

Kristin Dziczek, director of the industry, labor and economics group at CAR

NAFTA FROM PAGE 3

U.S. can unilaterally pull out of NAFTA with six months’ notice to its other members, Mexico and Canada. It’s not unprecedented for a president to leave an international agreement without congressional approval: In 2002, then-President George W. Bush pulled the U.S. out of the 1972 Anti-Ballistic Missile Treaty without it.

We also have to face the reality that many of those 47,556 assembly jobs are held by workers at foreign automakers, such as Volkswagen and Renault-Nissan, which employ the most workers in Mexico and ship many of those vehicles to Europe. Toyota, for instance, sends roughly 75 percent of the cars it produces in Mexico to nonNAFTA countries. NAFTA is irrelevant to those.

What about auto parts suppliers?

They account for many more jobs in Mexico. But many of those workers make replacement parts, where the priority is on keeping labor costs low because profit margins are thin.

Here’s where productivity enters the argument. U.S. autoworkers made 16.1 cars per worker, and workers in Mexico made 5.1 in 2014, according to data compiled by CAR. With the much higher level of productivity, largely due to automation, only 274,987 total jobs would be needed to sustain current Mexico and U.S. car production.

Another stumbling block for parts manufacturing is that tariffs are low with or without NAFTA. Under the agreement, parts suppliers pay a 2.5 percent tariff. If the U.S. scrapped NAFTA, Mexico and the U.S. would likely revert to most-favored-nation status under the World Trade Organization, which has parts production tariffs set at 3.5 percent. That’s not enough to offset the difference in labor costs between the two countries.

Focusing on the higher-paid assembly workers, the UAW’s entry-level pay of $17 per hour is much higher than the $5 an hour for the same workers in Mexico. Labor costs for those new Michigan workers alone would cost local automakers $347.2 million more annually than if those workers stayed in Mexico, assuming a

traditional 40-hour workweek.

Automakers are operating on thin profit margins for their small cars, which is why they continue to move small-car production to low-cost countries like Mexico.

Dismantling NAFTA would simply send automakers to Poland, Thailand and other countries in search of low labor costs, said Kristin Dziczek, director of the industry, labor and economics group at CAR. “Once this happens, when do you stop?” Dziczek said. “These are global parts on global platforms from global companies. Do you chase automaker imports around the world?”

This would amount to the U.S. government playing whack-a-mole to stop imports and likely harming trade with other nations.

Another complicating factor is that low-wage labor isn’t the only reason manufacturers pick Mexico. It’s free trade — and not just NAFTA. Mexico has free-trade agreements with 45 countries; the U.S. has agreements with just 20. That’s an incentive because the manufacturers can avoid import tariffs in many more countries.

Mexico offered 47 percent of the global new-vehicle market in 2015 to manufacturers tariff-free, while automakers in the U.S. had access to only 9 percent, according to research by CAR. About 18 percent of vehicles assembled in Mexico are now exported to non-NAFTA markets. That’s expected to grow to about 28 percent by 2020, according to data compiled by CAR. Quite simply, it’s cheaper for manufacturers to ship cars and parts to non-NAFTA countries from Mexico than the U.S., even if labor costs were eliminated.

Since the beginning of 2010, automakers, including BMW, Fiat Chrysler, Ford, General Motors Co., Honda, Hyundai, Mazda, Nissan and Volkswagen have announced more than $24 billion in investments in Mexico.

“The reality that needs to set in is that you can’t just snap your fingers and have those jobs come here,” Dziczek said. “Things are just not going back to the way they were, and to think so is pretty irresponsible.”

Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

ADVERTISING INFORMATION: Matt Langan at advertisingcdb@crainsdetroit.com CLOSE DATE: Dec. 1, 2016 | PUBLISH DATE: JAN. 16, 2017 PRODUCED BY

IN CONJUNCTION WITH

Sponsor-Contributed Content

Bruce Legge

Director, Defense Automation Alley LeggeB@automationalley.com

Building a stronger robotics and automated systems industry — together Michigan is no doubt a leader when it comes to advanced manufacturing, but if we want our state to remain competitive as we enter a new era of smart

One such opportunity for collaboration is the Michigan Automated Systems Collaborative (MASC).

Through MASC, Automation Alley is bringing together industry, academia, government, research and professional associations in Southeast and Central Michigan to promote, attract, and grow the local robotic and automated system industries. MASC

aims to make Michigan the national leader in the design, development and manufacturing of automated systems and related robotics technologies.

MASC will provide opportunities for networking, sharing best practices and solutions to industry challenges, and will help startups bring new technologies to market.

Don’t be left behind.

Join MASC today and discover the benefits of collaboration. Contact info@automationalley.com

2675 Bellingham Dr. Troy, Michigan 48083 248-457-3200

20

IS EVERYTHING.

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

COURTESY OF MOTOWN MUSEUM

Renderings show a new facility behind the existing Motown Museum, with an entrance at Ferry Park Avenue and Holden Street.

Ford, UAW commit $6M toward Motown Museum expansion

By Sherri Welch swelch@crain.com

Advanced technologies and global competition require new skills. Lawrence Technological University's innovative certificate programs, bachelor's and graduate degrees in Colleges of Architecture and Design, LTU ranks fifth among U.S. colleges and Arts and Sciences, Engineering, and Management universities for boosting graduates’ earning power.

– Brookings Institution can help you succeed.

2016

BEST COLLEGES in the Midwest Princeton

Review®

2016 AMERICA’S BEST

UNIVERSITIES U.S. News & World Report®

2016

TOP 10%

NATIONALLY Highest Alumni Salaries PayScale

Lawrence Technological University 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | admissions@ltu.edu | www.ltu.edu

Ford Motor Co. and UAW-Ford have made a joint $6 million commitment to help fund expansion of the Motown Museum.

With the grant, the Dearborn-based automaker and the union become the lead donor in the campaign, which was announced in mid-October. Ford declined to say what each organization is contributing.

In recognition of the support, the expanded museum will include: J The Ford Motor Company Theater, a state-of-the-art performance venue.

J Educational, music and other programming tied to Ford’s student and community outreach initiatives.

J CARaoke Experience, an interactive Ford-branded activity that incorporates music with Ford vehicles.

J Ford as the museum’s official vehicle.

The commitment to the Motown Museum follows pledges totaling $10

million over the next five years from Ford and the Ford Motor Co. Fund to fund, among other things, a renewal of the carmaker’s three-year sponsorship of America’s Thanksgiving Parade and the Ford Fireworks, and a second Ford Resource and Engagement Center in Detroit to provide community, educational, arts and social services programs.

Located on West Grand Boulevard in the Hitsville USA house and Studio A, the birthplace of Motown Records, the Motown Museum is in the midst of a $50 million capital campaign to fund the expansion.

In addition to the theater, the 40,000-square-foot expansion will house interactive exhibits, a cafe and expanded retail.

The timeline for the expansion depends on the pace of fundraising, but the museum wants it to happen quickly, Chairwoman and CEO Robin Terry said in October.

Sherri Welch: (313)446-1694 Twitter: @SherriWelch

Icahn extends offer to gain total control over Federal-Mogul

By Dustin Walsh dwalsh@crain.com

Billionaire investor Carl Icahn is extending his offer to gain total control over Southfield-based Federal-Mogul Holdings Corp. as competition to control the supplier heats up.

Icahn, through a subsidiary of his firm Icahn Enterprises LP, entered into a definitive agreement in September with Federal-Mogul to acquire the remaining shares the firm does not own — approximately 18 percent. Icahn offered to pay $9.25 per share in an all-cash deal, which represents 86 percent higher than the supplier’s share price of $4.98 on Feb. 26, when Icahn first proposed the buyout for $7 per share.

Icahn, however, had only secured about 23 percent of the remaining shares ahead of the Tuesday deadline, Icahn Enterprises said in a statement. The firm needs a 51 percent majority of the remaining shares to take full control of the company.

Icahn is extending the bid until Dec. 15, but is not raising the share per price at $9.25, or approximately $281 million.

The extension is a blow to Icahn, who is reportedly battling Gabelli Asset Management Company Investors

for the company. The New York Post reported Gabelli, which owns 36 per-

cent of the shares not owned by Icahn, is angling for a $13 per share bid for the company.

The bid to buy the remaining stake comes after Federal-Mogul scrapped its plan in January to split the company into two separate public entities.

Company officers pointed to market conditions as the culprit behind its decision not to split its aftermarket parts division from its powertrain division.

In December, Icahn won a $1.03 billion bidding war for auto parts retail chain Pep Boys. Experts believe Icahn plans to use the parts retailer as a mainline for Federal-Mogul parts but fear his vertical integration strategy will hurt the company over the long term.

Pep Boys’ 800 stores, paired with Icahn’s other aftermarket retailer, the 278-location Auto Plus, would make up the fifth-largest retail auto parts chain in the U.S. Even with Pep Boys’ stores, Auto Plus would be significantly smaller than rivals Advance Auto Parts Inc., Autozone Inc. and O’Reilly Automotive Inc.

It’s unclear whether Icahn taking full control of Federal-Mogul would expedite that process.

Federal-Mogul (NASDAQ: FDML) shares traded at $9.92, above Icahn’s offer, in Tuesday morning trading.

21

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

PLAYERS

Detroit’s top paid athletes

Fox Sports Detroit increases, it passes that cost along to Comcast and the other distributors. In turn, they pass that cost along to their customers in the form of fees paid per subscriber.

Those fees have steadily increased consumers’ monthly bills, and sparked the national wave of cord-cutting.

“It’s a problem for regional sports networks. There will be a revenue hit,” said Andrew Zimbalist, a sports economist at Smith College and author of several sports finance books who has been a consultant for baseball. Some regional networks have lost money, he noted, but they will seek to offset declines with new distribution platforms such as streaming on mobile services.

Moody’s Investors Service also warned of the threat to RSNs in a July report, suggesting even that some could merge.

“High-dollar commitments for long-term contracts for the regional sports networks rights in the face of lower subscribers and ad revenues in a direct-to-consumer environment could spell disaster for many RSNs and the teams they are linked to,” Moody’s Senior Vice President Neil Begley wrote. “They will likely see a significant drop-off in subscribers when teams are inactive and under-performing, which could result in some mergers between RSNs.” The highest-profile example of how this is playing out nationally is ESPN: It lost 621,000 cable subscribers for November alone, the worst month in the network’s history and a financial decline of $52 million, according to a comprehensive report by the “Outkick The Coverage” college football blog on Oct. 29. The subscriber loss data was culled from Nielsen Inc. information.

ESPN charges providers about $7 a month, and now is estimated to have about 92 million subscribers. The network uses its per-subscriber revenue to buy sports broadcast rights, an expenditure forecast to hit $7.3 billion next year, according to SNL Kagan. That includes NFL and MLB games, the College Football Playoff, and several college conferences (including the Big Ten).

Current subscriber losses are expected to reach 15 million over the past five years, leaving ESPN with 86 million subscribers in 2017, according to Clay Travis of “Outkick the Coverage.” He expected that to fall to 74 million subscribers by 2021, and the declines in subscriber fee revenue would then outpace the cost of rights fees — meaning ESPN would have to rely on advertising and other revenue streams to cover its costs.

A report in May by Sports Business Daily, based on interviews with a dozen league and network executives, said networks are seeking cost effi-

These are the 25 highest-paid professional athletes in the city. We compiled all of the Detroit athlete salaries at crainsdetroit.com/sports

FROM PAGE 3

*Salaries are in millions.

Miguel Cabrera, Tigers Justin Verlander, Tigers Justin Upton, Tigers Andre Drummond, Pistons Victor Martinez, Tigers Jordan Zimmerman, Tigers Tobias Harris, Pistons Matthew Stafford, Lions Anibal Sanchez, Tigers Reggie Jackson, Pistons Ian Kinsler, Tigers Jon Leuer, Pistons Riley Reiff , Lions Mark Pelfrey, Tigers Henrik Zetterberg, Red Wings Francisco Rodriguez, Tigers Boban Marjanovic, Pistons J.D. Martinez, Tigers Mike Green, Red Wings Mark Lowe, Tigers Jimmy Howard, Red Wings Niklas Kronwall, Red Wings DeAndre Levy, Lions Justin Abdelkader, Red Wings Golden Tate, Lions Source: Spotrac

$28* $28 $22.13 $22.12 $18 $18 $17.20 $17 $16 $14.96 $14 $10.99 $8.07 $8 $7.75 $7.50 $7 $6.75 $6 $5.50 $5.50 $5.50 $5.25 $5 $4.75

ciencies, and some have been unable to find buyers or have had to reduce fees for programming. Examples cited included the Tennis Channel failing to sublicense a French Open package to any of the major TV networks, and the International Champions Cup — the soccer exhibition series owned by University of Michigan mega-donor Stephen Ross — reducing it rights fee.

Both ESPN and Fox Sports have cut or bought out hundreds of employees to save money.

What may help stave off problems locally is that the Tigers remain a ratings powerhouse for FSD. It averaged a 7.01 household rating for its slate of Tigers games, according to Nielsen Co. viewership data for the Detroit market.

That was third-best in baseball, and a 13 percent improvement over 2015’s 6.21 average rating for 150 games (fourth-best in MLB).

The average Major League Baseball local TV rating this season collectively was 3.04. Only the Kansas City Royals (10.85) on Fox Sports Kansas City, and St. Louis Cardinals (8.18) on Fox Sports Midwest had better household average ratings than the Tigers.

Two years ago, Tigers games on FSD finished with a 7.72 household rating that was second in baseball, and led all MLB clubs for local ratings in

INDEX TO COMPANIES

These companies have significant mention in this week’s Crain’s Detroit Business: Autism Alliance of Michigan ................................3

Ford Motor .......................................................3, 20

Detroit Free Press .................................................. 1

Fox Sports Detroit .................................................3

Detroit News .......................................................... 1

Gage Products ....................................................... 4

Detroit Pistons ......................................................3

Mich. Dept. of Talent & Economic Development 16

Detroit Red Wings..................................................3

Michigan Manufacturing Association ............. 22

Detroit Tigers .........................................................3

Motown Museum ...............................................20

Federal-Mogul Holdings ....................................20

SF Motors .............................................................. 4

Forbes Frankel Troy Ventures LLC ..................... 17

Zara ..........................................................................5

2013 with a 9.59 average and in 2012 with a 9.21 average.

The sustained local ratings success has been lucrative for the network.

While not disclosing specifics, FSD has reported steady year-over-year gains in advertising revenue for Tigers broadcasts.

Media industry analysts S&P Global Market Intelligence predicted before the season that FSD would generate $178.7 million this year in overall revenue against $139.9 million in operating expenses, with the majority from Tigers games. Much of FSD’s revenue comes from the fee it charges cable and satellite providers to air its content, which is $4.25 per subscriber.

That’s the fourth most expensive per-subscriber fee of any RSN in the nation. The most expensive is $5.36 in the New York market for the Yankees

Entertainment and Sports Network

(owned 80 percent by Twenty-First Century Fox Inc. and 20 percent by the New York Yankees). It airs Yankee baseball games, Brooklyn Nets basketball and New York City FC soccer matches.

Next is Spectrum SportsNet LA (Dodgers games) at $4.59 per subscriber, and Fox Sports Arizona (Diamondbacks, Suns, and Coyotes) at $4.43 each.

One factor that helps sports broadcast rights is that consumers prefer to watch games live rather than recording them, meaning advertising will be seen live and not fast-forwarded past on a DVR. That’s meaningful to advertisers, who are willing to pay a premium for spots during games locally and nationally.

There’s another factor that makes the Detroit broadcast rights situation unique: The Pistons soon are expected to announce they’re relocating next season to play at the new Little Caesars Arena alongside the Red Wings. Pistons owner Tom Gores and Red Wings and Tigers owner Mike Ilitch theoretically could seek to bargain new deals together (which could include equity in FSD), or even launch their own network — a potentially expensive proposition.

Half of MLB’s teams own some or all of their regional sports network.

That’s a strategic move by team owners because local broadcast rights payments are subject to revenue sharing; but revenue from an ownership stake in a network is not. In theory, if the Tigers owned their own network, they could avoid a huge rights fee increase — 34 percent of which would be shared with the other 29 teams — and keep all of the network’s revenue.

For now, the near term looks stable for Fox Sports Detroit: S&P Global Market Intelligence estimates that it will retain its rate of being in 2 million homes in Michigan across various providers, the largest being Comcast, through at least 2017.

Fox Sports Detroit has aired Tigers games since 1998, when it won the broadcast rights from the now-defunct Pro-Am Sports System, owned at the time by the Washington Post Co.’s Post-Newsweek Stations Inc. Fewer than 2,000 Michigan households don’t have access to the network, the network has said.

Greg Hammaren, FSD’s senior vice president and general manager, declined to talk about the cord-cutting trend and possibility that lean times could be ahead for regional sports networks.

“I really don’t have anything to say on these topics. We have a healthy partnership with the Tigers, Red Wings and Pistons, which will continue for years to come. Like our team partners, we are committed to serving Detroit sports fans with the best, most engaging action,” he said via email.

The Tigers also declined to comment.

The network has taken advantage of the nontraditional platforms to get its live content and games in front of consumers online via Fox Sports Go, which is available to subscribers of all cable/satellite services that carry the network’s linear channel and have digital streaming rights, FSD said. For example, DirecTV subscribers can watch Fox Sports Go on their digital devices, but Comcast subscribers currently cannot.

Live Fox Sports Detroit programming is available on services such as Sling TV, Sony VUE, the soon to be launched Hulu Live, which replicate the traditional cable service agreements but do so with a “skinny” bundle, FSD said.

Some industry insiders say the media rights bubble is untrue.

“It’s not happening,” said Lee Berke, president and CEO of Scarsdale, N.Y.based sports media consulting firm LHB Sports, Entertainment & Media Inc., which works with teams on media rights deals.

The proliferation of platforms and demand for sports content on them means there is more than enough demand to generate revenue, he said.

“The audience is still there. They’re going to be finding their content on different screens. Ultimately, one or more of these new distribution outlets will be creating gross payers,” Berke said. “The mix of distributors paying for the content will change over time.

It’s a much more sophisticated business that it was even five years ago.”

Backing him up is a PricewaterhouseCoopers report from October about the sports industry. It predicts that media rights spending will continue to increase, from $18.2 billion this year to $21.2 billion by 2020. That’s nearly double the total broadcast rights spending in 2011, which was $10.8 billion.

PWC defines media rights as fees paid to show sporting events on broadcast and cable television networks, television stations, terrestrial radio, satellite radio, the Internet, and on mobile devices.

The report also estimates that the overall sports market in North America as a whole — the combined value of ticket sales, media rights, corporate sponsorship spending, and merchandising — will grow at a compound annual rate of 3.5 percent from $63.9 billion in 2015 to $75.7 billion in 2020.

Currently, ticket sales is the largest industry revenue segment, but the report forecasts that media rights will overtake it within two years.

“The segment’s pace of growth is expected to stabilize and moderate over the next five years following the torrid pace realized over the past decade and across two deal cycles; a period which has positioned media rights to become the industry’s largest segment by 2018,” the report said.

Bill Shea: 313 (446-1626) Twitter: @Bill_Shea19

www.crainsdetroit.com Editor-in-Chief Keith E. Crain Group Publisher Mary Kramer, (313) 446-0399 or mkramer@crain.com Associate Publisher Ron Fournier, (313) 446-1674 or rfournier@crain.com Editor Jennette Smith, (313) 446-1622 or jhsmith@crain.com Director, Digital Strategy, Audience Development Nancy Hanus, (313) 446-1621 or nhanus@crain.com Managing Editor Michael Lee, (313) 446-1630 or malee@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 Digital Editor Carlos Portocarrero (313) 446-6056 or cportocarrero@crain.com News Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com Senior Editor Gary Piatek, (313) 446-0357 or gpiatek@crain.com Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766

REPORTERS Marti Benedetti General assignment (313) 446-0416 or mbenedetti@crain.com Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment.

(313) 446-0325 or jgreene@crain.com Chad Halcom Covers litigation, the defense industry, education, Macomb and Oakland counties. (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, city of Detroit. (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) 657-2204 or lvanhulle@crain.com Dustin Walsh, senior reporter Covers the business of law, auto suppliers, manufacturing and economics.

(313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter Covers nonprofits, services, food and hospitality. (313) 446-1694 or swelch@crain.com ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Advertising Director Matthew Langan Senior Account Manager Katie Sullivan Advertising Sales Christine Galasso, Gerry Golinske, Diane Owen, Sarah Stachowicz Classified Sales Manager Angela Schutte, (313) 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 Marketing/Events Director Kim Winkler Events Manager Kacey Anderson Senior Art Director Sylvia Kolaski Marketing Manager Marilyn Banes Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos CUSTOMER SERVICE Main Number: Call (877) 824-9374 or customerservice@crainsdetroit.com Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374.

Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at kbora@crain.com To find a date a story was published (313) 446-0406 or e-mail infocenter@crain.com Crain’s Detroit Business is published by Crain Communications Inc. Chairman Keith E. Crain President Rance Crain Treasurer Mary Kay Crain Senior Executive Vice President William A. Morrow Executive Vice President/Director of Strategic Operations Chris Crain Executive Vice President/Director of Corporate Operations KC Crain Vice President/Production & Manufacturing Dave Kamis Chief Financial Officer Bob Recchia Chief Information Officer Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly

by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2016 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

22

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

GREEN

backed up and flooded because they are hooked up to the same drains.

The August 2014 storm that flooded parts of Detroit caused $1.1 billion in damages and led to a federal disaster designation.

FROM PAGE 1

property owners to capture rainwater on their land for gradual release into either drains or allow it to naturally percolate into the ground. Otherwise, the water runs off all at once from buildings and parking lots and into already overwhelmed drainage systems.

Detroit plans

Revenue streams Green infrastructure is an approach to stormwater management that protects, restores or mimics the natural water cycle, said Don Carpenter, professor of civil engineering at Lawrence Technological University and director of the Great Lakes Stormwater Management Institute.

And it's incredibly important, Carpenter said.

“One of the things we rely on as a Great Lakes state is water resources,” he said. “It (impacts) our economy, environment and quality of life. We need revenue streams locally to fund water management.”

Green infrastructure also is effective, economical and can enhance community safety and quality of life, Carpenter said. Planting trees and restoring wetlands is cheaper and more pleasing to the eye than building larger drains or water treatment plants.

“People pay for roads and bridges and support it because they can see it,” he said. “They don't understand infrastructure of pipes and ponds underground because they don't see it. Green infrastructure, people can see it” and it works to assist natural water cycles.

In a presentation last month at Lawrence Tech, Jeff Andresen, state climatologist and assistant professor of geography at Michigan State University, confirmed Michigan has experienced wetter and more extreme weather events the past decade and since 1930. “(Data simulations) on the Great Lakes region suggest a warmer and wetter climate in the distant future, with much of the additional precipitation coming during the cold season months,” said Andresen.

“Given the projected rate of climate change, adaptive planning strategies should be dynamic in nature,” he added.

New legislation At the state level, Rep. Mike McCready, R-Birmingham, has proposed model legislation, House Bill 5991, that would allow local governmental subdivisions to collect fees rather than property taxes for stormwater abatement and grant credits against “green infrastructure” capital projects. These projects include retention ponds, rooftop rain gardens, community gardens and bioswales, which are essentially vegetated ditches.

“Businesses are already paying for (stormwater drainage costs). This tightens it up and prevents (owners) from being overcharged and sets up an appropriate amount,” McCready said.

Over the last several years, McCready said, a series of lawsuits

KRESGE FOUNDATION

The Kresge Foundation’s 3-acre Troy campus from the perspective of a drone shows the wetland landscape that is designed either to naturally filter water back into the ground or capture stormwater that falls on the property, storing it in two ponds pictured to the left of the main building that also irrigates the vegetation and green roofs. filed against municipalities, including Birmingham, challenging how taxes are charged for stormwater runoff got him interested in the issue.

For example, Birmingham has agreed to pay $2.85 million to settle a lawsuit and must submit a plan to the court by the end of the year. Ferndale also recently settled for $4.25 million, and a similar lawsuit against Royal Oak is pending, he said.

“This money is not going back to residents to fix stormwater” runoff problems, McCready said. “We need to create a law to (help governmental bodies) manage runoff.”

McCready said the bill addresses the problems created by the lawsuit and a 1998 Michigan Supreme Court decision on Bolt v. City of Lansing.

The court ruled the fee Lansing imposed was actually a tax that required voter approval. The ruling set up a clear method to charge property owners for runoff, he said.

Nationally, more than 1,500 communities in states such as Florida, Arizona and Ohio have approved stormwater utility taxing districts that charge property owners fees to pay for runoff. About 45 governments in Michigan have created stormwater utilities to charge property owners for public drainage systems, but some of those utilities are now under assault from the Bolt decision, McCready said.

Owners that build retention ponds to limit runoff from parking lots, buildings and other surfaces also can potentially reduce their tax burden, he said. The bill allows a tax writeoff equal to 80 percent of qualifying green infrastructure costs.

Chuck Hersey, senior fellow at Lansing-based Public Sector Consultants, said McCready’s bill is important because it helps governmental bodies comply with Bolt, creates uniform standards and encourages green infrastructure construction.

“We can’t build sewers so big that we treat everything,” he said. “It would cost too much, just as we

can’t afford to do a police budget so we have no crime at all.”

Tapped out Hersey said the traditional way of funding stormwater drains doesn’t work anymore.

“A lot of people think these storms are being taken care of by taxes they pay,” he said. “Communities are tapped out (on taxes). They are unlikely to cut fire and police to pay for stormwater.”

Nash said because most communities don’t have dedicated methods to pay for stormwater drains, they take it from property taxes or through water bill charges.

However, Hersey said using property taxes is an inherently unfair way to pay for stormwater because it is based on the value of a property and not the relative amount of runoff from the property that goes into drains.

“Some properties are big and underdeveloped. There is less runoff” because the ground is permeable, Hersey said. “Some (properties) are much smaller but more developed, have more roofs, with a lot of runoff coming off. They pay less in taxes even though they use far more (drainage) services.”

Hersey said paying based on the use of the system, allowing for credits for green infrastructure that retains runoff, is a much fairer system.

“Under the green infrastructure policy, if you reduce the amount of water running off property, your bill would be reduced,” Hersey said. “The company can turn its engineers loose.

If I plant trees or vegetation, put in technological systems, what will my return on investment be? You’ll be saving money.”

Andy Such, director of environmental quality with the Michigan Manufacturing Association, said the 2,500-member business group favors such an approach that creates a uniform fee structure with credits for green infrastructure. He said the MMA hasn’t completely vetted

McCready’s bill.

“We are supportive of a concept to have a statewide approach to avoid having a patchwork quilt of plans,” Such said. “We think it is a good idea to allow local units to decide how to coordinate how they do it and give credits for green infrastructure.”

Such said one problem large manufacturing companies have is that each tax body has a different method how to charge for stormwater runoff.

“When companies invest in infrastructure improvements, they would like to have those costs recognized in the fee structure,” Such said. “The other thing is the fees raised by this system should be spent on this system. We want it transparent for where money goes.”

Overflows bring scares Stormwater runoff is related to a more serious health policy issue — the practice of releasing untreated wastewater into lakes and rivers when the systems can't keep up with volume.

Because Michigan has 46 combined sewer systems, the third-largest total in the nation, the danger of overflow when stormwater volume exceeds drain capacities can lead to discharges of untreated sewage and industrial wastes into nearby water bodies. Public health officials warn that people can become sick by drinking or being exposed to the contaminated water.

Combined sewer systems include those in Detroit, Dearborn, Oakland County, Wyandotte, Saginaw, Macomb County and Lansing. Each of those systems experienced millions of gallons of overflow into bodies of water after 2- to 3-inch rainfalls in 24hour periods since 2008, said the state Department of Environmental Quality.

During these heavy rains, which occurred three times this past summer, thousands of homes and businesses suffered water damage as sewer systems and drainage pipes

To address this issue in Detroit, Mayor Mike Duggan has revised the city’s longer-term effort of improving stormwater drainage. He scrapped a 6-year-old, $1.2 billion construction plan to build more massive drains and instead decided to embark on a $50 million program on green infrastructure projects in the Upper Rouge area on the city's far west side.

On Oct. 1, Detroit also began charging property owners for water runoff based on how much impervious acreage they have instead of how large their water meter is. The charge for nonresidential owners is $750 per acre of impervious surface per month.

Fees are coming for other businesses, nonprofits and homeowners.

Duggan's plan encourages businesses and residential homeowners to invest in green infrastructure that can divert water from public drains by offering fee credits for the investments. In a post-bankruptcy Detroit, a new regional governing entity, the Great Lakes Water Authority, signed a 40-year lease with Detroit for $50 million a year. Detroit is using these funds to overhaul its aging infrastructure.

Green infrastructure projects include elimination of impervious ground surfaces that don’t allow water to soak through by constructing bioswales, wetlands, rain gardens and other methods that allow rain and melted snow to more naturally filter into the ground, rather than running off into city sewers.

Carpenter said he supports Detroit's fee structure and emphasis on encouraging green infrastructure.

“Detroit is a combined sewer system, and lots of stormwater runoff goes into the sanitary system,” Carpenter said. “They are trying to come up with an equitable structure to maintain their infrastructure using natural systems.”

Hersey said public infrastructure investment is important to business, economic prosperity and the environment.

“People want to live in a place where services are good, the environment is safe, schools are good and they are not in fear of crime,” Hersey said. “If any of those things are out of whack, you have problems and people won’t stay. That is problematic for businesses.”

Jay Greene: (313) 446-0325 Twitter: @jaybgreene

BANKRUPTCIES The following businesses filed for protection in U.S. Bankruptcy Court in Detroit Nov. 11-17. Under Chapter 11, a company files for reorganization.

Chapter 7 involves total liquidation.

J De-Tech Collision Inc., 10000 Greenfield Road, Detroit, voluntary Chapter 11. Assets and liabilities not available.

J L. Brothers LLC, 735 W. Huron St., Pontiac, voluntary Chapter 7. Assets and liabilities not available.

Chris Ehrmann

23

C R A I N ’ S D E T R O I T B U S I N E S S // N O V E M B E R 2 1 , 2 0 1 6

THE WEEK ON THE WEB NOVEMBER 12-18

MOT names new principal conductor

Detroit Digits A numbers-driven look at last week's headlines:

2,000

S

tephen Lord, music director of the Opera Theatre of St. Louis, was named to the new

The square footage of the new GM Company Store, the first completed project in a planned renovation and expansion at General Motors Co.’s global headquarters in the Renaissance Center in Detroit. The store sells official GM merchandise.

position of principal conductor of the Michigan Opera Theatre as MOT searches for a successor to retiring founder David DiChiera. Lord, a frequent conductor in Detroit since 2004, will continue to hold the St. Louis position during his at least two-year MOT appointment.

$380,000

The amount in awards from the Michigan Good Food Fund to healthy food retail projects around the state, among which are efforts to launch a grocery store in an underserved Detroit neighborhood and to expand the Northwest Detroit Farmers Market.

COMPANY NEWS

J iServe Inc., a Northville company that offers home soft-serve dessert making systems, and Mutual Adoration, a Detroit-based workshop that transforms reclaimed wood and salvaged materials into handcrafted home items, claimed $10,000 firstplace prizes at the fifth Entrepreneur You Pitch Competition in Detroit.

The contest for women entrepreneurs was presented by the nonprofit Michigan Women’s Foundation and Washington, D.C.-based Springboard Enterprises.

J New York City eyeglasses retailer Warby Parker said it will open its first Michigan store this week on Woodward Avenue in downtown Detroit.

J Carson’s has opened in-store shops at The Village of Rochester Hills, The Mall at Partridge Creek in Clinton Township and Birchwood Mall near Port Huron that offer specialty products and gifts from Michigan artisans. Carson’s is part of Bon-Ton Stores Inc., headquartered in York, Pa., and Milwaukee.

JJMusical instrument store Third Wave Music in Midtown Detroit plans to celebrate with a series of grand-opening events this week at 4625 Second Ave. JJAfter closing for two weeks this month, Always Brewing Detroit in northwest Detroit reopened with a new owner. Cody Williams bought the café for $17,500.

JJSouth Korean company Samsung Electronics Co. is spending $8 billion to move into a burgeoning market for automotive technology by buying Harman International Industries Inc., whose North American automotive headquarters is in Novi, Bloomberg reported.

$6 million

The newly announced financial commitment by Ford Motor Co. and UAW-Ford to help fund the Motown Museum expansion in Detroit. The museum will include a new theater, programming tied to Ford’s student and community outreach initiatives, and the interactive CARaoke Experience.

J A government lawsuit against Detroit-based Quicken Loans Inc. will move to the mortgage lender's hometown, a federal judge ruled after finding that the Washington, D.C., connection to Quicken’s practices was too “insubstantial” to keep the case there.

Broder & Sachse Real Estate Services Inc. in Birmingham is ending

J

most of its third-party property management contracts to concentrate on property development. It will continue to manage its own properties.

J Bloomfield Hills-based Mackinac Partners, a turnaround management and restructuring firm, opened an office in Boston.

OTHER NEWS

The Detroit Land Bank Authority turned over documents to federal agents at its offices as part of an ongoing investigation into increases in demolition costs for vacant properties and bidding practices for demolition contractors.

J

J A study by Detroit engineering firm Mannik & Smith Group Inc. has found that the half-built Wayne County Consolidated Jail project downtown is structurally sound, meaning the county can move forward on finishing construction without any demolition.

J BFD Corktown LLC, the New York City-based owner of the CPA Building in Corktown, was issued a demolition permit, according to online Detroit city records, but a Detroit City Council committee passed a resolution that could be the first step toward saving the 11,000-square-foot building built in 1923. If approved, it would grant the building interim historic designation for a year as an advisory board studies whether the building should be placed in a local historic district.

J Demolition of buildings on the site of the former Jim Fresard Pontiac-Buick-GMC in Royal Oak began to clear a path for a planned hotel and mixed-use project.

J The Detroit Regional Chamber said restoring civility in American politics will be one of the central themes at the 2017 Mackinac Policy Conference, set from May 30 to June 2 on Mackinac Island. The first confirmed conference speakers were Stephanie Cutter, a former senior adviser to President Obama and a political commentator on CNN, and Nicolle Wallace, a former White House communications director and conservative political analyst on MSNBC. J Thieves targeted two Detroit nonprofit organizations, as cash and office equipment were reported stolen during two separate break-ins at the Capuchin Soup Kitchen, and thieves hit three Habitat for Humanity homes in Eastpointe.

J Tickets for semi-pro soccer’s Detroit City Football Club will go on sale Nov. 25, with tiered season pass options to be offered for the first time.

J The Detroit Zoo in Royal Oak has opened a new skating rink in front of the frozen façade of the new Polk Penguin Conservation Center. The zoo said the 1,548-square-foot rink is open 10:30 a.m.-4 p.m. daily through February, weather permitting.

J Metro Detroit home sale prices rose by 9 percent in October from the year before, said data from Farmington Hills-based Realcomp Ltd. II. The four-county region had 5,236 home and condo sales, a 2.7 percent dip from October 2015, yet median sale prices rose from $150,000 to $163,500 in that period.

J The state of Michigan said it will start processing Detroit city business tax returns for the first time in January, as the partnership between the city and the Michigan Department of Treasury that began last year with individual income tax returns will extend to business returns.

OBITUARIES PARC

Parc, the latest addition to downtown Detroit's dining scene, is set to open this week at Campus Martius Park. The former Fountain Bistro location at 800 Woodward Ave. has been expanded by 1,400 square feet, and its wall of windows takes advantage of downtown Detroit views.

David Adamany, president of Wayne State University from 1982 to J

1997 and an appointed turnaround CEO to Detroit Public Schools in 1999-2000, died Nov. 10. He was 80.

RUMBLINGS

Accounting firm BDO to move down Big Beaver On Dec. 5, the 150 employees in the Troy office of the accounting firm of BDO USA LLP will move from the Top of Troy building, where the firm was the first tenant when it opened in 1975, to the Bank of America building a little way down Big Beaver Road.

The employees will move from 18,000 square feet of traditional space filled with individual offices into 22,000 square feet of what BDO is calling “smart officing,” as it revamps or moves its 60-some offices nationwide. BDO takes over the entire top floor, which comes with two rooftop, outdoor patios.

Gone are individual offices.

They are replaced by an open floor plan buttressed by 13 meeting rooms and such staples of 21st century offices as sit-stand desks.

The feel is similar to that of the new headquarters opened in downtown earlier this year by Fifth Third Bank.

The building, the first in metro

BDO USA LLP

The lobby area of BDO USA LLP’s new facility in Troy.

Detroit to get LEED-certified in 2007, has an interesting history. It was called the Taj Mahal for its design and spare-no-expense details when it was built as the headquarters for Standard Federal Bank in 1990. Thomas Ricketts, the bank's CEO, forbade any employee from bringing lunch, coffee or even bottled water into the building for fear of crumbs or stains.

Is biz court mostly an Oakland court?

Michigan may need a system to weigh the complexity of business cases to calculate the true workloads of its 20-plus business court judges statewide, local attorneys suspect, after new case data suggested about a third of all earmarked business court matters fall to just two judges in Oakland County.

The Oakland County Business Court Advisory Committee, a collection of local plaintiff and defense attorneys in commercial litigation advising Oakland Circuit Judges James Alexander and Wendy Potts, discussed those findings on case distribution at a regular meeting this week in Pontiac.

A report generated for the committee with help from the Circuit Court administrator’s office found that more than 950 cases were assigned to the county business court for Potts and Alexander in 2015. In addition, filings received through Oct. 31 suggest the county is on pace for about 975 business court

cases this year.

The two judges said they average more than 200 such business cases pending, despite also keeping a separate criminal and nonbusiness civil docket comparable with many of the court's 17 other circuit judges.

So why so much concentration in one court?

Some of that was to be expected, attorneys on the panel said, since Oakland has been home to more Michigan business incorporations than any other county for decades, and hosts five of the state’s 18 Fortune 500 companies, despite being only its second-largest county by total population.

Judge Alexander said the local court case data reviewed by the committee this week could be presented to the State Court Administrative Office, which is expected to review the comparative workloads and need for new resources across its 16 business courts sometime next year.

Lauer promotes Shinola items for charity Shinola/Detroit LLC’s Matt Lauer collection is apparently a hit.

Lauer, co-host of the “Today” show on NBC, is promoting a bundle of Shinola products that will benefit the Detroit Children’s Fund and, ultimately, Detroit Edison Public School Academy.

Lauer handpicked the collection of Shinola products, which includes a boxed card set for handwritten notes, a 12-month planner, paperback journals, a leather passport wallet and nylon watch straps.

And the journals, agendas and notecards have sold out. (Shinola expects to restock in December.)

Each item is inscribed with the number 20 to commemorate his upcoming 20th anniversary with the show and part of the Today’s Original series of products chosen by show anchors to benefit the charities of their choice.

The collection is available at Shinola’s website (www.shinola.com) and NBC Universal’s online store (www.nbcuniversalstore.com).

Metro Detroit:

STEP UP & GIVE! The Crain’s Giving Guide Wish List is a collection of items that local nonprofits could really use but need your assistance in obtaining.

There are more than 100 ideas and items to choose from.

Search the Giving Guide online to discover the contribution that’s right for you.

Make a difference today by looking through the list at

crainsdetroit.com/custom/giving

EMPLOYERS, FIND HOMEGROWN TALENT at

LA ST CA L

JOBS IN THE D Two events,

Mix and mingle with talented expats home for Thanksgiving!

Send your up-and-coming HR professionals to find new talent and bring them home!

Jobs in the D offers employers a unique solution to one of their biggest resounding pain points: finding talent.

Employer Benefits: • High top table and table tent at both events

L!

one price

FRIDAY, NOV. 25 | 6 P.M. THE RESERVE, BIRMINGHAM

SATURDAY, NOV. 26 | 6:30 P.M. MAJESTIC THEATER, DETROIT

PARTNERS

UNDERWRITTEN BY

• Mingle and connect with expat

Gain exclusive access to a distinctive talent candidates at all career levels pool of professionals and attract candidates • Two complimentary job postings who are interested in coming back home. on Crain’s Job Connect

Tables are filling up quickly! Reserve yours today at crainsdetroit.com/jobsintheD"

PRODUCT OF