McLaren now eyes lower-cost, short-stay hospital

Transcription

20150126-NEWS--0001-NAT-CCI-CD_--
1/23/2015
6:20 PM
Page 1
®
www.crainsdetroit.com Vol. 31, No. 4
JANUARY 26 – FEBRUARY 1, 2015
$2 a copy; $59 a year
©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved
Page 3
The promise of free
community college:
But is it worth
the price?
BIG DEALS OF 2014
113 DEALS
$43.7 BILLION IN VALUE
Dealmaking finally escaped the
recession doldrums
More than 60 percent came from
cars and manufacturing, but
others did well, too
‘A fantastic year’
Adell creates magic kingdom
from ex-Disney A.M. station
Agree Realty triples
its portfolio size
Inside
Adoba
hotel
works to
resolve
tax bills with county, Page 4
This Just In
Talks collapse between
DMC, McLaren on Karmanos
NEWSPAPER
Lawyers for Detroit Medical
Center and Flint-based McLaren Health Care Corp. failed to
reach a settlement late Friday
in a 16-month contract dispute
over Barbara Ann Karmanos Cancer Institute in Detroit.
Oakland County Circuit Court
Judge Wendy Potts asked
lawyers to return this week
for instructions that could
lead to a trial in early 2016.
In September 2013, the
McLaren and Karmanos
boards entered into an affiliation in which Karmanos
joined 11-hospital McLaren.
Each then filed separate
lawsuits. McLaren asked the
court to declare DMC’s 2005
affiliation agreement void;
DMC charged McLaren with
breach of contract.
Officials said the organizations could not agree on two
key points: how Karmanos’
name could be used outside
Wayne County and how
much Karmanos would pay
to DMC for support services.
— Jay Greene
Auto, manufacturing led aggressive
M&A market; PE flexed its muscles
BY TOM HENDERSON
CRAIN’S DETROIT BUSINESS
I
f 2009 was the perfect storm for
mergers and acquisitions, then 2014
was a day at the beach, watching a
double rainbow with a mint julep on
the way.
Sure, there was $80.9 billion in deal
value in 2009, but all save $4.3 billion of
that was tied to bankruptcy or government bailout acquisitions.
The 113 deals completed in 2014 came
to nearly $44 billion, and there were very
few distress deals among them. Instead,
the market had a very large appetite for
auto-related and manufacturing companies. Half of the deals — 56 — and $28.5
billion of value were in those sectors.
“It’s a beautiful world. It was a fantastic year,” said Michael DuBay, the
group practice leader for private equity
for the Detroit-based law firm Honigman
Miller Schwartz and Cohn, which does a
national M&A practice.
He said the firm is still tallying the
deal totals it advised last year, but the
number of transactions was more than
100 and could hit a deal value of up to $10
billion, compared to $8.2 billion in 2013.
About half of that was in Michigan.
“Everybody was in the game — U.S. and
foreign strategic buyers, private equity firms
and banks,” he said.
Biggest deals, the list:
ZF-TRW leads the
pack, see Page 11
See Big deals, Page 20
ON THE WEB
䡲 Venture capital
investment nearly doubles
from 2013
䡲 Searchable database of
deals, crainsdetroit.com/bigdeals
ISTOCK PHOTO
McLaren now eyes lower-cost, short-stay hospital
2 opponents
of full-service
plan on board
BY JAY GREENE
Blocked by the Michigan Legislature, the courts and business opposition in its efforts to build a
new full-service hospital in northern Oakland County, Flint-based
McLaren Health Care Corp. is now relying on its architects, consultants
MCLAREN’S PLAN B
Old proposal: A $300 million
medical-surgical hospital at its 80acre McLaren Health Care Village at
Clarkston.
New proposal: A $30 million to
$50 million, 30-bed short-stay
hospital with high-tech diagnostics
and a 24-hour emergency
department.
CONtroversial? Unlike acute-care
medical-surgical beds, short-stay
beds don’t require certificate of
need approval.
COURTESY OF MCLAREN HEALTH CARE CORP.
Besides a short-stay hospital, McLaren
also would also like to expand its
outpatient cancer center and build a
second medical office building at its
Clarkston Health Care Village.
and business intuition to come up
with a plan to build a cutting-edge
short-stay hospital in Indepen-
dence Township.
McLaren’s “hospital of the future” may not be the $300 million
medical-surgical hospital it once
proposed at its 80-acre McLaren
Health Care Village at Clarkston.
It may be, instead, a much smaller, less costly, $30 million to $50
million, 30-bed short-stay hospital
with high-tech diagnostics and a
24-hour emergency department.
At least two leading opponents of
McLaren’s $300 million hospital —
St. Joseph Mercy Health System CEO
Rob Casalou and Economic Alliance
for Michigan President Bret Jackson
— now are on board for McLaren’s
developing plan for a high-tech outpatient health care facility.
Over the next six months, Truven
See McLaren, Page 21
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Page 2
January 26, 2015
MICHIGAN BRIEFS
Grand Rapids economy looks good
in 2 reports, near bottom in third
Grand Rapids fared well in two
of three economic reports released
in the past week. But one report
was, to put it charitably, sobering.
The Grand Rapids metropolitan area had the ninth-fastestgrowing economy in the U.S. last
year and the 69th fastest-growing
economy among the 300 largest
metropolitan areas in the world,
according to a study released by
the Brookings Institution. Macau,
China, was No. 1. The Detroit metropolitan area was 237th.
The Grand Rapids-Wyoming
metro area was named the top-performing city in the Midwest and
ranked 25th on the list of the “25
Best Performing Cities,” produced
by The Milken Institute, a think tank.
Joel Kotkin, a contributor to
Forbes.com, ranked Grand Rapids
second-worst in a column titled
“The Cities Where African-Americans Are Doing the Best Economically.” The professor at Chapman University in California ranked cities on
home ownership, entrepreneurship
or self-employment, and median
household income.
Ski resort trashed by group of
unorthodox Greeks from UM
The movie “Animal House”
probably seems a bit less amusing
Flint residents upset; must be something in the water
If your water is so bad that even Erin Brockovich
takes note on her Facebook page, you have a problem.
And anyone in Flint who drinks water has a problem.
On the same day that residents came to a public meeting carrying bottles of discolored tap water, the city’s
emergency manager, Jerry Ambrose, said progress is
being made, The Flint Journal reported.
This month, Flint officials reported that municipal
water has elevated levels of a disinfection byproduct
called trihalomethane. Some residents say the water
gives children skin problems. Flint officials say the
water is safe.
The problems arose in April after Flint switched
from using Lake Huron as its drinking water
source. As Crain’s has reported, the city plans to use
Flint River water through the end of 2016, when the
to the folks at Treetops Resort near
Gaylord after the Sigma Alpha Mu
fraternity at the University of Michigan caused about $50,000 in damage the weekend of Jan. 17. Resort
General Manager Barry Owens
said furniture, carpet, walls and
ceilings were sacrificed in the pursuit of youthful indiscretion.
Sigma Alpha Mu Michigan
chapter President Joshua Kaplan
said that members “are embarrassed and ashamed of the behavior” and that they would pay all
damages and cleaning costs. (Cue
Dean Vernon Wormer: “Fat, drunk
and stupid is no way to go through
life, son.”)
Karegnondi Water Authority is to open a new pipeline
to Lake Huron.
Flint had disconnected from the Detroit Water and
Sewerage Department last year, fearing the prospect
of ever-higher rates. The departure of those customers has been estimated to shave more than 12
percent off revenue for the Detroit water system,
Crain’s has reported.
Detroit has offered to reconnect Flint, but Flint officials say that would cost $12 million more a year.
Flint Mayor Dayne Walling last week called on the
state to help address the problem.
Said Steve Busch of the Michigan Department of Environmental Quality: “Is there a risk in the short term?
That depends on you ... it’s an individual thing. You
can make a judgment.” Cheers.
MICH-CELLANEOUS
Tennessee-based Community
Health Systems Inc. plans to buy an
80 percent equity interest in Metro
Health, based in the Grand Rapids
suburb of Wyoming. The agreement includes Metro Health Hospital,
outpatient centers and related assets and businesses. The deal is
subject to regulatory reviews.
State auditors estimated that
the secretary of state’s office could
have collected an additional $9.2
million to $36.5 million a year in
use-tax revenue if it strengthened
its procedures for verifying values,
The Associated Press reported.
Mark Howe, the city manager
of Lowell near Grand Rapids, apologized for withholding raises from
city workers who joined the International Brotherhood of Electrical
Workers and threatening to replace
them with nonunion workers, The
Grand Rapids Press reported.
A subsidiary of Grand Rapidsbased Universal Forest Products Inc.
acquired a majority stake in Australia-based Integra Packaging Proprietary Ltd., MiBiz reported. Universal, which makes packaging
products, expects Integra to generate $12 million in sales in 2015 and
said the deal supports plans for international growth.
Gerald R. Ford International Airport in Grand Rapids set a record
for passenger traffic last year, with
2,335,105 travelers passing through
its concourses, the Grand Rapids
Business Journal reported. That’s
up 4.3 percent from 2013.
Hurley Medical Center plans to
move its Pediatric Residency Clinic
and Pediatric Specialty Clinic into
the second floor of the Flint Farmers’
Market, MLive.com reported.
Grand Rapids Magazine has
named Grove its Restaurant of the
Year for the third year in a row.
Readers of BuzzFeed’s community section have voted Lemonjello’s
Coffee in Holland No. 2 on the website’s ranking of the “24 U.S. Coffee
Shops to Visit Before You Die” —
which seems rather akin to a list of
“24 Paper Towel Dispensers to Use
Before You Die,” unless coffee for
you is a lifestyle choice.
Find business news from
around the state at crainsdetroit
.com/crainsmichiganbusiness.
Sign up for the Crain’s Michigan Morning e-newsletter at
crainsdetroit.com/emailsignup.
CORRECTION
A story about the selling of
naming rights for The Palace of
Auburn Hills included an incorrect
photograph of Ira Malis on Page
19 of the Jan. 12 issue.
Your deal gets done here
Aarkel Tool & Die, Inc. of Ontario
ASW Pipeline, LLC
Austrian & Associates, Inc.
Sale of stock to Zynik Capital
Corporation
Acquisition of Geneva Pipeline
pursuant to Bankruptcy
Code § 363
Merger with
G. Herschman Architects, Inc.
Eptec S.A. de C.V.
Futuramic Tool & Engineering,
Inc.
Sale of its non-damper business
and assets to J.D. Norman de San
Luis Potosi, S. de R.L. de C.V.
Acquisition of assets of
Hubert Global Systems, Inc.
in an UCC Article 9 sale
Horizons Window Fashions, Inc.
Sale of assets
Ninth Street Capital Partners,
LLC
Acquisition of
Kitchen Cabinet Distributors
Indiana Limestone Company
Sale of assets pursuant to
Bankruptcy Code § 363
Great Day Holdings, LLC
Acquisition of Patio Enclosures
Light Beam Capital
Contech Castings, LLC
Cape and Islands Occupational
Medicine, P.C.
Cap Lab Pathologists
CellNetix Labs and Pathology
Sale of assets
Sale of assets
Acquisition of Highline
Pathology Associates, Inc., P.S.
Great Lakes Steel
Holdings Corporation
Great Lakes Steel
Great Lakes Steel
Fabpro Netwrap LLC and
Fabpro Oriented Polymers LLC
Bridon Cordage LLC and
Heritage Trading Company, LLC
pursuant to Bankruptcy Code § 363
Equity Purchase of
H.F. Webster
LS Partners
Main Market
Partners
Acquisition of DCI Design
Communications LLC
Acquisition of chain of
Gymboree Play and
Music Centers
Remington Products Company
Selman & Company, LLC
Arch Molds, LLC
Association &
Society Insurance Corporation
Mayesh Wholesale Florist, Inc.
Acquisition of
Ricerca Biosciences
Billingsley Wholesale Floral, Inc.
Sale of Dowagiac, Michigan
facilities and operations to
Premier Tool & Die Cast Corp.
Griffiths Furniture, LLC
Griffiths Furniture
Capital Partners
Sale of
StyleCraft Home Collection
ReCellular, Inc.
(receiver)
Going concern sale of assets
Selman & Company, LLC
Acquisition of certain assets of
MAI Services Corporation
Wolverine Tube, Inc.
Sale of Netherlands subsidiary
Learn more here.
.D%POBME)PQLJOT1-$t8PPEXBSE"WFOVF4VJUF#MPPNöFME)JMMT.*t
+BNFT+#PVUSPVT**%FUSPJU.BOBHJOH.FNCFS
mcdonaldhopkins.com
$IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDIt8BTIJOHUPO%$
* McDonald Hopkins Government Strategies LLC is owned by the law firm McDonald Hopkins LLC. McDonald Hopkins Government Strategies is not a law firm and does not provide legal services.
$BSM+(SBTTJ1SFTJEFOU
20150126-NEWS--0003-NAT-CCI-CD_--
1/23/2015
6:03 PM
Page 1
January 26, 2015
Page 3
Adell’s WFDF buy boosts reach, rates
Global access
for Word
Network
BY BILL SHEA
COURTESY OF WADL
Kevin Adell: “Jesus is known in the
four corners of the Earth.”
For religious broadcasting entrepreneur Kevin Adell, video did
not kill the radio star.
Instead, radio has gone to work
generating new revenue for the
video broadcaster.
Adell recently paid The Walt Disney Co.’s Burbank, Calif.-based Disney Radio Group LLC $3 million for its
Farmington Hills-based WFDF AM
910, and last week he began using
the station’s 50,000-watt signal to
simulcast audio from his global
Southfield-based The Word Network
Christian television programming.
The switch from preteen-oriented
Disney music and programming to
spiritual broadcasts on what is now
branded “910 AM Superstation” happened at 5 p.m. Jan. 20 with no on-air
fanfare.
A secondary audio license
granted by the Federal Communica-
tions Commission to Adell means he
can provide the 910 AM simulcast
via satellite nationally and overseas, not just in Michigan, further
boosting the station’s reach.
What it all means for Adell is that
he is able to boost airtime renewal
rates for The Word Network, which
is available globally via 12 satellites,
by 10 percent instead of the usual 5
percent annual increase, he said.
Half-hour airtime blocs on The
Word Network sell starting at
$3,500 and sell out around the clock
every day of the year, Adell said.
Inside
Saving hammer-and-nail part
of building rehab plan, Page 4
See Adell, Page 22
Free school a
costly course?
Company index
These companies have significant mention in this
week’s Crain’s Detroit Business:
Adell Broadcasting . . . . . . . . . . . . . . . . . . . . . . . . 22
Adoba Dearborn Detroit . . . . . . . . . . . . . . . . . . . . . 4
Agree Realty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Angle Advisors-Investment Banking . . . . . . . . . . 20
Cascade Partners . . . . . . . . . . . . . . . . . . . . . . 20
Consumers Energy . . . . . . . . . . . . . . . . . . . . . 9
Deloitte Corporate Finance . . . . . . . . . . . . . . . 20
Detroit Regional Chamber . . . . . . . . . . . . . . . . . . . 19
DTE Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Honigman Miller Schwartz and Cohn . . . . . . . . . . . . 1
Macomb Community College . . . . . . . . . . . . . . . 6, 19
Local experts say devil’s in the details when trying to
gauge impact of Obama’s community colleges plan
McLaren Health Care . . . . . . . . . . . . . . . . . . . . . . . 1
Michigan Community Colleges Association . . . . . . 19
Oakland Community College . . . . . . . . . . . . . . . . . 19
P&M Corporate Finance . . . . . . . . . . . . . . . . . . . . 20
Presidents Council, State Universities of Michigan . 19
Obama called on Congress to support the
REE WOULDN T America’s College Promise initiative laid
out by the White House this month.
BE A FIRST
ree community college, as a matThat plan calls for making two years
ter of public policy, could mean a
Proposed federal
of
community
college free for up to 9 milprogram
wouldn’t
commitment of about $350 million
be first that local
lion
qualifying
“responsible” stua year of government funds for
students could go
dents,
letting
them
earn credits for
to community
the students of 28 Michigan schools who
the
first
half
of
a
university
bachecollege at no
would take part in such a program.
cost, Page 19
lor’s degree — or for skills needed in
And that’s just for the community
the workforce — at no cost.
college students who are on a track to
Local experts said odds are long that the
complete a four-year degree or professional cerproposed Promise will be kept, since Congress
tification program right now. If the lure of free
needs to act either by way of legislation or support
tuition as proposed by President Barack Obama
a funding appropriation when the president’s
draws students away from a traditional univernext budget proposal is expected in mid-Februsity freshman class enrollment, or adds promisary. Even if the Republican-dominated Coning — but at-risk — students who had been optgress gets on board, individual state participaing out of postsecondary education before, the
tion is also optional.
price tag could climb much higher.
See College, Page 19
In his State of the Union address last week,
BY CHAD HALCOM
F
Quarton Partners . . . . . . . . . . . . . . . . . . . . . . . . . 20
’
Quinn Evans Architects . . . . . . . . . . . . . . . . . . . . . . 7
Roxbury Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
F
St. Joseph Mercy Health System . . . . . . . . . . . . . . . 1
TRW Automotive Holdings . . . . . . . . . . . . . . . . . . . 10
UHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
WADL TV-38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
WFDF AM 910 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Washtenaw Community College . . . . . . . . . . . . . . . 19
Wayne County Community College District . . . . . . . 19
Word Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Department index
CALENDAR . . . . . . . . . . . . . . . . . . . . 17
CLASSIFIED ADS . . . . . . . . . . . . . . . . 18
KEITH CRAIN . . . . . . . . . . . . . . . . . . . . 8
ISTOCK PHOTO
OPINION . . . . . . . . . . . . . . . . . . . . . . . 8
PEOPLE . . . . . . . . . . . . . . . . . . . . . . 17
RUMBLINGS . . . . . . . . . . . . . . . . . . . 23
Agree’s winning real estate formula: Acquire, diversify
BY KIRK PINHO
Under Joey Agree’s direction,
Agree Realty Corp. has nearly
tripled its retail portfolio size and
more than doubled its enterprise
value in the past five years, making the Bloomfield Hills-based publicly traded real estate investment
trust a more formidable force in its
industry.
A 2010 shift in strategy pushed
by CEO Agree and approved by its
board moved Agree Realty (NYSE:
ADC) into a rapid acquisition
mode that came around the same
time as the real estate market collapse.
But Agree saw opportunity, and
a chance to diversify, by changing
its model. That’s at the same time
two of its then-key tenants, Borders
Group and Kmart, were in a downward spiral and closing stores.
The company, which is a land-
THIS WEEK @
WWW.CRAINSDETROIT.COM
lord to retailers in both neighborhood shopping centers and in freestanding locations, has increased
its portfolio size to 209 properties
from 73 and boosted its enterprise
value to $805 million from $304 million in January 2010.
It was a calculated risk to grow
so quickly; the company launched
its acquisition platform in April
2010 during a time of low interest
CEO Joey
Agree says
the company
looks for
tenants
focused on
recessionresistant
sectors.
See Agree, Page 18
How the auto show revs up a restaurant
Amy Haimerl visits the FIrebird Tavern and
sees for herself the impact of the show on the
local economy, crainsdetroit.com/blogs
COURTESY OF FIREBIRD TAVERN
WEEK ON THE WEB . . . . . . . . . . . . . . 23
20150126-NEWS--0004-NAT-CCI-CD_--
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2:55 PM
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Page 4
January 26, 2015
Adoba works to settle tax bills
with county, negotiate new flag
BY SHERRI WELCH
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The Israel-based owners of the
state’s second-largest hotel, the former Hyatt Regency Dearborn, are
working with Wayne County officials to clear up back taxes — and
separately are getting closer on negotiations with hotel brands to
bring a new flag to the site.
The group is negotiating a payment plan for back taxes owed to
the county to keep the hotel from
being foreclosed on in February.
That’s after settling its more recent
tax liabilities and the water bill
with the city of Dearborn.
Through its local attorney,
Steven Z. Cohen, senior partner at
Cohen, Lerner & Rabinovitz PC in Royal Oak, ownership group Royal Realties LLC is negotiating a payment
plan to pay the county back more
than $1.4 million in property taxes
from 2012 and 2013 owed on the hotel now operating as the Adoba Dearborn Detroit.
The 2012 taxes, which totaled
roughly $886,000 as of last week, led
the county to begin foreclosure proceedings on the 772-room hotel and
conference center in October.
A hearing is set for Feb. 19 on that
issue, but Cohen said last week that
he expected to have a payment plan
worked out by early this week.
Wayne County is “pursuing a
strategy to try and keep the Adoba
alive, open and viable because we
know once it closes it (will be) very
difficult to get it back into operation,” said David Szymanski, chief
deputy treasurer for the county.
However, it’s also to the owners’
benefit to resolve this, he said,
since they are paying 18 percent interest on the outstanding taxes due.
Even as it negotiates the payment plan, Royal Realties is pursuing an alternate source of financing to pay off back taxes, Cohen
said.
The 2014 tax liabilities with the
city of Dearborn were brought current with a mid-January payment of
$570,917. That followed a $335,063
payment made Oct. 31 to cover
delinquent personal property taxes
from 2012 and 2013 and the first installment of the 2014 taxes, which
enabled the hotel to secure licenses
needed to continue operating.
Winter taxes to the city totaling
more than $60,000 are due in midFebruary.
While tidying up its financial
house, Royal separately is negotiating to bring a new national or international flag to the hotel.
The hotel’s new general manager, Paul Banigan, last week said
the ownership group has narrowed
that down to a handful of brands.
He declined to disclose which ones.
But in December, Kevin Hilchey,
CEO of Longview, Texas-based
Lodging Host Hotel Corp, the hotel’s
new management company, said
brands touring the hotel included
Marriott International Inc.; Best Western International Inc.; Wyndham Worldwide; Choice Hotels International Inc.;
and InterContinental Hotels Group PLC,
which owns the Crowne Plaza and
Holiday Inn brands, among others.
SHERRI WELCH
Adoba Dearborn Detroit owner Royal
Realties LLC is negotiating a payment
plan for more than $1.4 million in
property taxes owed to Wayne County.
Nothing would be better than a
new flag to let the community know
the hotel is strong, Banigan said.
Hotel brands require a property
improvement plan as a condition of
agreeing to affiliate with a property. Hospitality consultants have
valued the needed improvements at
the former Hyatt at somewhere between $10 million and $50 million.
Cohen said he is not directly involved in negotiations with the hotel brands, but not all of those
brands Royal is talking with would
require an upfront investment, other than the cost to put the brand’s
reservation system in place. Required upgrades could come later,
he said. An agreement with a new
flag could be in place within a
month, Cohen said.
Lodging Host secured the right to
operate the hotel under the Adoba
flag until a new flag is brought in
through an agreement with former
management company Atmosphere
Hospitality Management Services LLC.
The majority of groups with future bookings at the hotel have kept
their reservations, Banigan said.
Things are looking up, he said,
with group bookings now into 2018
and a few sellout nights recently for
the hotel. The hotel hasn’t sold out
in three years, but it sold out Jan. 17,
Jan. 21 and 22, Banigan said, thanks
to group meetings.
Sherri Welch: (313) 446-1694,
swelch@crain.com.
Twitter:
@sherriwelch
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I3011
20150126-NEWS--0006-NAT-CCI-CD_--
1/23/2015
3:55 PM
Page 1
Page 6
January 26, 2015
Application period nears for Innovation Fund program
BY KIRK PINHO
(Applicants) may not get an
“
award of cash, but there may be a
meeting, some advice given, some
suggestions of modification.
”
James Jacobs, Macomb Community College
The application period for up to
$100,000 in funding for startup and
emerging businesses through the
Innovation Fund, a partnership between Macomb Community College
and J.P. Morgan Chase & Co., begins
next month.
MCC President James Jacobs
said it’s not yet known the exact
date the application period will begin, but funding is expected to be
awarded starting in the summer
after a committee review.
“This (application) isn’t something you mail in and then a committee meets and says ‘yes’ or ‘no’
and sends you back a ‘yes’ or ‘no’
answer,” he said. “In the process,
we want to make sure everybody
M&A Experience
In Your Corner.
gets something out of this. They
may not get an award of cash, but
there may be a meeting, some advice given, some suggestions of
modification.”
Funding will be available to
companies within Wayne, Oakland, Macomb, Livingston, Washtenaw, Genesee, Monroe, Shiawassee and St. Clair counties. The
focus will be on companies in advanced manufacturing, information technology, alternative energy, health care, and logistics and
supply chains.
Grants of $25,000, which don’t
have to be repaid, will be awarded
to startups. In other cases, up to
$100,000 will be made available to
advance the progress of emerging
companies toward more substantial equity funding.
Those awards would have to be
matched 100 percent by the company and repaid after the third year,
Jacobs said.
“If that doesn’t happen, we can
take some kind of equity position
in the company,” he said.
Companies receiving funding
will be required to provide employment opportunities to MCC
students through internships.
The fund received $1 million
from the New York City-based
bank’s foundation; $1 million from
MCC’s Strategic Fund, approved by
the board of trustees in August; and
$700,000 that the community college
will raise through its foundation.
The fund is part of J.P. Morgan
Chase’s plan to provide $100 million in investment in the Detroit
area over five years, an effort announced last spring.
The application will be available
at macomb.edu/business-commu
nity/CIE/index.html.
Kirk Pinho: (313) 446-0412,
kpinho@crain.com.
Twitter:
@kirkpinhoCDB
®
Ŷ Mergers and acquisitions, private equity, angel
and venture capital, finance, and joint venture
transactions.
Ŷ Commercial transactions, corporate structuring
and succession planning, real estate transactions,
tax planning matters, and 1031 exchange
transactions.
First Tier Ranking in
Corporate Law and
Commercial Litigation
Contact Pete Roth at pgroth@varnumlaw.com
■
Metro Detroit
■
Grand Rapids
■
Kalamazoo
■
Grand Haven
■
Lansing
CRAIN’S SEEKS NOMINEES
FOR 20 IN THEIR 20S
Do you know a 20-something who
is someone to watch? Crain’s 20
in their 20s recognition program
seeks young professionals who are
making their
marks in the
region.
Candidates
are not
limited to any
particular
field or
activity but include up-and-comers
who are making waves as young
professionals within a company,
have shown success or originality
as entrepreneurs, or have made
local impacts in some other
demonstrable way.
Besides the corporate world,
candidates are considered from
creative industries, nonprofits and
social entrepreneurship arenas.
Winners will be profiled in the
June 1 edition and honored at a
future awards event.
Nominees must be 29 or younger
before June 1. Nominations are
due Feb. 13.
To fill out the form, visit
www.crainsdetroit.com/nominate.
Questions? Contact Amy Haimerl
at ahaimerl@crain.com or (313)
446-0416.
20150126-NEWS--0007-NAT-CCI-CD_--
1/23/2015
2:56 PM
Page 1
January 26, 2015
Page 7
Midtown building to be rehabbed,
hammer-nail lighting will be saved
BY KIRK PINHO
AND AMY HAIMERL
In the past year, more than 300
new apartments have been announced in Midtown Detroit.
The largest of the projects is the
Strathmore Hotel, a $28 million rehabilitation of an eight-story
building on Alexandrine Street.
When completed in 2016, that will
bring 129 one- and two-bedroom
apartments into the district.
Among the most iconic of the developments, however, is the Professional Plaza, which is known for the
illuminated hammer-and-nail action atop its 12 stories.
Last week, Detroit-based developer The Roxbury Group announced
plans to redevelop the vacant
130,000-square-foot office building
at Woodward Avenue and Selden
Street into 72 apartments and 2,000
square feet of ground-floor retail
space by the middle of next year.
That’s a shift in plans for the
building, which was slated for demolition last year.
For the question on many minds
— will the hammer-and-nail neon
be saved? — the answer is yes.
Roxbury principal David Di Rita
said the lighting — which is a nod
to the carpenters union that was
headquartered there — will be removed from the exterior of the
building but reused in the project.
“We’ll find a good home for it,
just not on the building,” he said.
Exterior renovations will include a glass façade, masonry
restoration and improvement of
the grounds of the building, which
was built in 1965. The interior will
feature 50 one-bedroom, 20 twobedroom and two three-bedroom
apartments.
“The interior is going to be going off international style, so midcentury modern,” said project architect Brad Cambridge of Quinn
Evans Architects Inc., which also
serves as the historic consultant.
“Clean lines, simple detailing,
an open floor plan. For the commercial spaces on the first floor,
we’ll keep ceilings high. And with
the floor-to-ceiling windows, you’ll
have fantastic views.”
What those views will cost, however, has not yet been determined.
“We are continuing to model
(rental rates) based on Midtown
pricing, which has been somewhat
lagging behind downtown,” he
said. “I still see these as being
more affordable than a David
Whitney (unit),” which start at
$1,050 for a one-bedroom unit.
Roxbury Group is under contract to buy the building from Mid-
town Project LLC, Di Rita said. That
entity is registered to Gary Novara, of counsel for Novara Tesija
PLLC in Southfield.
Financing comes from Capital
Impact Partners and Invest Detroit.
Roxbury is also working with the
Michigan Economic Development
Corp. on other possible funding, according to a news release.
Detroit-based Walbridge Aldinger
Co. will be construction manager.
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The hammer-and-nail lighting — a nod
to the carpenters union that was
headquartered there — will be reused
in the project.
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20150126-NEWS--0008-NAT-CCI-CD_--
1/23/2015
2:40 PM
Page 1
Page 8
January 26, 2015
OPINION
State, biz should
work on tax credits
A
s our sister publication Crain’s Chicago Business reports, the state of Illinois is anticipating a $9 billion
budget deficit for the year beginning July 1 — about 25
percent of its roughly $36 billion general fund budget.
Makes Michigan’s $325 million budget hole look a little better. As a matter of fact, Illinois’ deficit is about the size of
Michigan’s entire general fund budget.
Still, Michigan’s shortfall, compounded by a larger one
looming for fiscal year 2016, looks bad for a state skippered by
a CPA.
Cutbacks are inevitable, but a major factor in the deficit
are tax credits being exercised by companies now that the
economy is better and they’re hitting the benchmarks needed
to claim them.
We believe the state should have the flexibility to work
with companies that have rightful credits to spread them out
over a period of years.
If that hasn’t been tried, maybe it should be.
How to dry up water woes
Suburban water customers could be looking at double-digit
hikes in water rates, in part because the system needs long-delayed capital improvements, but also because usage is going
down.
Higher rates seem likely to motivate users to watch their
water usage more closely, which would lead to lower consumption and the need to
further raise rates.
The answer, of
course, is more users,
preferably big industrial ones. So one important focus for economic development
could be: What industries consume a lot of
water? And are some
of them in waterstarved
Southwest
states?
Meanwhile, just as Chick-fil-A promotes its products with
ads feature cows holding “Eat Mor Chikin” signs, we might
need a “drink more water” campaign to help wean people off
the bottled stuff. Metro Detroit not only has plenty of water,
the drinking quality is good as well.
Considering what’s coming out of the tap in Flint, that’s
not something to take for granted.
LETTERS
Coal fleet aging, but not out of date
Editor:
It was frustrating to read comments in Jay Greene’s Jan. 21 blog,
“How to decipher Gov. Snyder’s
State of the State mentions of energy policy,” by supposed experts on
energy and environmental policy
like Steve Frenkel’s erroneous
statement that Michigan is home
to among the least economic coal
plant fleets in the nation. That’s
just not true.
Our coal fleet may be aging, but
the operating performance and reliability of our coal fleet is excellent, and they are the most costcompetitive generation resources
we own. These plants also comply
with all current federal and state
air and water quality standards.
Consumers Energy is shuttering
Crain’s Detroit Business
welcomes letters to the editor.
All letters will be considered for
publication, provided they are
signed and do not defame
individuals or organizations.
Letters may be edited for length
and clarity.
Write: Editor, Crain’s Detroit
Business, 1155 Gratiot Ave.,
Detroit, MI 48207-2997.
Email: cgoodaker@crain.com
by April 2016 some of our smaller,
older coal plants that date back 50
years because it doesn’t make economic sense for our customers to
invest additional capital to bring
those plants into compliance with
new air quality regulations. We
also are transitioning our fleet to
cleaner sources of energy like natural gas and renewable energy,
and we are reducing customer demand and lowering customer bills
by offering a variety of energy efficiency programs.
Does it make sense for the state’s
energy providers to transition to
cleaner, more sustainable energy
sources? Of course. But let’s not
lose sight of the fact that our coal
fleet is and will continue to be central to our company’s ability to
serve our customers with affordable, reliable and, yes, increasingly
clean sources of energy.
David Mengebier
Senior vice president,
governmental and public affairs,
Consumers Energy
KEITH CRAIN: It is time to make a decision on jail site
Our new Wayne County Executive, Warren Evans, seems to be
making all the right moves. Reducing head count, lowering salaries
— these are all steps in the right direction.
But there is one looming decision that has to be made. And the
sooner, the better.
Something has to be done about
the unfinished jail site on Gratiot
Avenue. It is an eyesore and certainly is contributing to the
blight of our city in a very visible
spot.
I am told that the
county has somewhere
around $150 million already spent on this
colossal disaster. Luckily, Evans doesn’t have
to shoulder any of the
responsibility for this fiasco. But someone has
to take a hard look at
where all this money
was wasted.
It would seem impossible to believe that the county already sunk so many millions of
dollars into a project
that is nowhere near
completion. Construction was suspended in
June 2013 after a county report that the project would run $91 million over the planned
cost.
Evans walked into a
construction and financial quagmire that isn’t
going to solve itself anytime soon. Whatever the outcome,
there are going to be a lot of very
unhappy citizens.
And while Evans is getting a
very tough look at the county’s finances, anyone interested in acquiring the site should sit down
with county officials quickly to
make some meaningful offers for
the site.
The whole situation is a mess.
It is going to take some serious
financial acumen to sort through
all this and require a great deal of
financial transparency at the same
time.
It’s critically important for
Evans to maintain complete transparency on all financial issues if
he wants to continue to have the
goodwill of his constituencies. The
worst-possible scenario would be
to try to hide any of the bad news
from the public.
Evans has a clean sheet of paper, and it is essential that he
tackles this ugly mess as soon as
possible.
The longer he waits, the more
the rumors will fly, and that’s one
thing that County Executive
Evans doesn’t want.
20150126-NEWS--0009-NAT-CCI-CD_--
1/23/2015
10:29 AM
Page 1
January 26, 2015
Page 9
Deciphering energy proposals in State of the State
During his State of the State address last week, Gov. Rick Snyder
said Michigan needs a plan to
eliminate energy waste and promote the conversion of coal to natural gas, which the state has in
abundance.
Snyder has always been a cautious leader when it comes to energy policy.
Sure, he has been out front —
and even sometimes led a reluctant Michigan Legislature — in
promoting expensive but overdue
road improvements, expanding
Medicaid through Obamacare and
helping Detroit achieve positive
results through bankruptcy proceedings.
But energy policy?
In his 49-minute State of the
State speech last week, Snyder
spent one minute, mostly stating
the obvious, when it came to energy.
Snyder’s speech included these
quick nuggets on energy:
䡲 Michigan needs to set its own
energy policy, or far-away legislators in Washington, D.C., will do it
for us.
䡲 Michigan needs a plan to
eliminate energy waste and promote the conversion of coal to natural gas.
I say Snyder stated the obvious
here because everyone I know involved in energy policy has been
saying these same things for years.
But the one surprise in Snyder’s
speech was his call to create a new
state energy agency to coordinate
an adaptable and flexible energy
policy for Michigan.
Snyder said the goal of the new
energy agency would be “so we
have the expertise we need to
make decisions that are adaptable,
affordable, reliable and environmentally protective.”
The new energy agency would
combine experts in the Michigan
Public Service Commission, the state
Department of Licensing and Regulatory Affairs, the Department of Environmental Quality, and the Michigan
Economic Development Corp. and related state energy office.
Beyond that, however, Snyder
made no promises, nor did he recommend any bills that the Legislature could act upon.
Snyder did say he will give a
special energy speech sometime in
March, one that will explain his
thoughts on the new energy
agency and how Michigan should
“keep the lights on.”
In the meantime, I am sure some
state legislators will sponsor new
bills on renewable energy, customer choice and energy efficiency.
But wait. Snyder has previously
said much more about energy policy than his latest State of the State
speech, and he commissioned in
2013 a yearlong study on renewable
energy, efficiency, choice and how
high rates affect people and businesses.
Renewables
Over the past three years, as
Michigan’s renewable energy portfolio standard sunset date of Dec.
31, 2015, has drawn closer and closer, Snyder has hinted at what he
favors.
For example, in his last major energy speech, in December 2013,
Snyder suggested
he
could be in favor of doubling the current mandate
that utilities
produce
10
percent
of
their electricity
production portfolio
from renewJay Greene
able energy,
primarily wind, solar and biomass.
While he declined to state a specific percentage target as a goal, the
governor said a future energy poli-
Energy
to earn
cy should cover at least 10 years.
In late 2013, a 90-page Michigan
Public Service Commission report
concluded there are no technical
problems to increasing the renewable standard to as much as 30 percent of electricity production in the
state by 2035.
Based on the governor’s own
words, Michigan could safely add 1
percent of renewable energy per
year from 2015-2025 to generate 20
percent of renewable energy by 2025.
Utility reaction
Consumers Energy Co. spokesman
Dan Bishop said the Jackson-based
utility has met the existing renewable energy portfolio standard “one
year ahead with our second wind
farm in Tuscola County.” Renewable energy “is part of the energy
mix.”
DTE Energy Co. CEO Gerry Anderson complimented Snyder on
recognizing there are major energy issues facing the state.
Anderson said state utilities are
planning to retire at least 33 percent of generating capacity because the power comes from older
coal plants that must be shut down
because of Environmental Protection
Agency rules.
“That is a huge part of produc-
tion,” he said.
“We need a plan for the next 15
years, and we need a process to revise that plan as demand and
prices change, new technology becomes available,” he said.
Steve Frenkel, Union of Concerned Scientists’ Midwest office
director, said he hopes the state
Legislature passes a bill this year
to increase the state’s renewable
energy standard, a move that
could drive more than $9.5 billion
in new capital investments in
Michigan.
This column originally appeared
as a Jay Greene blog at
crainsdetroit.com
20150126-NEWS--0010-NAT-CCI-CD_--
1/23/2015
10:28 AM
Page 1
Page 10
January 26, 2015
Big Deals of 2014
ZF CEO: TRW acquisition gives access to ‘brain of the chassis’
ZF Friedrichshafen AG’s pending
$12.4 billion acquisition of Livonia-based TRW Automotive Holdings
Corp. is the largest M&A deal in
Southeast Michigan in 2014.
The deal, expected to close by
mid-year, will make Germanybased ZF a key player in collision
avoidance and driverless cars.
ZF wants to combine TRW’s
sensing and software expertise —
cameras, radar and controllers —
with ZF’s chassis systems.
ZF CEO Stefan Sommer, 52,
spelled out his strategy for the two
companies during a Jan. 13 interview with Automotive News correspondent David Sedgwick.
What key technology does TRW offer for collision avoidance?
We want to have access to software expertise from TRW for
brake controls and other areas of
autonomous driving. Because the
brake controller is the brain of the
chassis. And that was our main
strategic motivation, to gain access to the brain of the chassis, for
the deal with TRW.
So TRW’s stability control is a key
technology?
All functions like collision
avoidance and active cruise control — everything starts from stability control. To get access to that
technology was one of our main rationales for the acquisition. Rearwheel steering (a product introduced by ZF at the Detroit auto
show) is something that you can
use with stability control. This
will be the story of the future.
ZF had its own chassis control hardware that would be useful for driver-
less cars. Why does ZF need TRW?
We have things like active body
control systems and sophisticated
shock absorbers. All this is useful
for ride and handling. But we
would have been mainly a tier-two
supplier.
What’s wrong with that?
The suppliers (of collision-avoidance systems) would specify what
the axle would look like and the type
of shock absorber. We felt we wouldn’t be competitive as a tier-two company. So we needed to (acquire) key
technologies like electric steering,
brake controls,
assist systems
and sensors.
Do automakers want suppliers to develop
complete collision-avoidance
systems?
Some
automakers need
it because they
don’t have the
expertise. Oth- Stefan Sommer,
ers will not ZF Friedrichshafen
buy a (complete) system from us — they just
want components. In the end, we
need the (systems) competence to
design the right components for
the next generation of vehicles.
Q&A
How long will it take to develop
collision-avoidance systems that
combine TRW’s technology with ZF
components?
To integrate our rear-axle steering into TRW’s vehicle stability
system, it would typically be two
or three years. But if you want to
integrate electric (powertrains) or
torque vectoring, it might take another two, three or five years.
How long will TRW CEO John Plant
remain with the company?
For a certain
time after the
merger,
John
will
support
the integration.
With all his experience
and
support, he will
give TRW management confidence
during
Plant
the transition.
92 is the new cool.
It’s true. Crain’s Detroit Business and Best Companies Group recently named Greenleaf Trust
“The Number One Cool Place to Work in Michigan.” Among the many contending, medium-sized companies
(50 to 249 U.S. employees), we rose to the top thanks to high measurements in our workplace policies,
business practices, philosophy, systems and demographics, and employee experience.
Being told that we’re cool by a nationally prominent media company doesn’t give us a big head, of course, but it does
give us a big incentive to continue doing things we’ve long believed are in the best interests of our clients. Which
they acknowledge, in turn, by awarding us nearly perfect marks in client satisfaction.* And really, at the heart of it
all, what could be cooler than that?
*2104 Greenleaf Trust wealth management & personal trust client satisfaction survey
3497 7 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 87 7.530.0555
Will it be difficult to harmonize the
two companies’ corporate cultures?
There isn’t a single ZF culture
and a single TRW culture. If you
look at TRW’s management teams,
they also have people from France,
Belgium and Germany. Your markets really form your culture. If
you look at the chassis area of ZF,
they are competing in the same
business environment as TRW.
Daimler had trouble absorbing
Chrysler’s culture after the acquisition
in 1998.
I think we can deal with this
much better. DaimlerChrysler was
under pressure. Everybody expected them to create common vehicle
platforms. We don’t have a task
like this.
Will ZF maintain TRW as a standalone operation?
We will keep TRW as a company, as a legal entity, as it is today.
There will be a TRW with its own
board, and they will be responsible
for their own business in the world
markets.
What activities will the companies
share?
We will collaborate on projects.
It’s a technology story. We will
look into electronics, for example.
TRW has huge and very efficient
electronics plants, and we have big
demand within ZF for electroniccontrol units for transmissions.
20150126-NEWS--0011-NAT-CCI-CD_--
1/23/2015
11:40 AM
Page 1
January 26, 2015
Page 11
CRAIN'S LIST: LARGEST MERGERS & ACQUISITIONS OF 2014
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DBpageAD_DBpageAD.qxd 1/22/2015 2:15 PM Page 1
20150126-NEWS--0013-NAT-CCI-CD_--
1/23/2015
11:40 AM
Page 1
January 26, 2015
Page 13
Continued from Page 11
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20150126-NEWS--0014-NAT-CCI-CD_--
1/23/2015
11:41 AM
Page 1
Page 14
January 26, 2015
Rank
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LIST RESEARCHED BY
Huron Capital Partners
FRIDAY, FEBRUARY 6 | 11 AM - 4 PM
11 AM | DESIGNER PRESENTATION
Mid-America Room, Suite 86
$10 Admission to benefit BBAC
We challenged twelve top designers to create two very
different spaces, each starting with the same three
items. See their fabulous rooms and learn how they
put it all together. All ticket proceeds benefit
Birmingham Bloomfield Art Center.
We invest in PEOPLE.
We build LEADERS.
12 PM - 4 PM | OPEN HOUSE
Participating Showrooms
Tour the room vignettes and meet the designers who
created them.
Register by February 4th at
michigandesign.com/news-events or call 248.649.4772.
Platform Criteria
Buy & Build Strategies
Revenues: Up to $200M
EBITDA: $5M or more
No Minimums for Add-ons
Sector Focus
Specialty Manufacturing
Consumer Goods & Services
Business Services
Healthcare
1700 Stutz Drive | Troy, MI 48084 | 248.649.4772
M - F | 9AM - 5PM | Open to the public
michigandesign.com
EXECUTIVE CALENDAR
Detroit Office: 313.962.5800
|
www.huroncapital.com
|
Toronto Office: 416.234.0313
Regional event dates, locations and contacts, all in one place.
crainsdetroit.com/executivecalendar
20150126-NEWS--0015-NAT-CCI-CD_--
1/23/2015
11:41 AM
Page 1
January 26, 2015
Page 15
Rank
68.
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20150126-NEWS--0016-NAT-CCI-CD_--
1/23/2015
11:42 AM
Page 1
Page 16
January 26, 2015
Rank
Description
Value of
transaction
($000,000)
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Date
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Acquirer name
?(+(+(85&+*2*0.+:(( >(51*5&9>85+)+5&9
*2'%&(19&2*0/
1+<
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*,05%*)1%)'%*0)%,60#
Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be
most accurate. The list does not include all 2014 transactions; only transactions valued at $10 million or more are included.
LIST RESEARCHED BY CRAIN'S STAFF
Align your personal and professional
plans today. For a stronger tomorrow.
FirstMerit PrivateBank and Commercial Banking
For Jeff, managing personal and business finances on his own was challenging. But with the
support of his FirstMerit Bank team of advisors, he was able to use their Treasury Management
services to optimize his cash flow, Retirement Planning services* to benefit his employees, and
Succession Planning services to ensure his company’s future. So now, Jeff has the support he
needs to reach his maximum potential — both personally and professionally.
TO L E A R N MOR E, C O N T A C T :
David Lochner, President,
Commercial Banking, FirstMerit Michigan,
at 248-228-1620 or david.lochner@firstmerit.com.
Ken Duetsch II, Senior Vice President, PrivateBank,
at 248-430-1255 or ken.duetsch@firstmerit.com.
Member FDIC
firstmerit.com
Deposit and loan products are offered through FirstMerit Bank, N.A. Loans are subject to credit approval.
*Non-deposit trust products are not insured by the FDIC, are not deposits or other obligations of FirstMerit Bank, N.A. or any of its affiliates,
are not guaranteed by FirstMerit Bank or any of its affiliates, and are subject to investment risks, including possible loss of the principal invested.
2423_FM15
20150126-NEWS--0017-NAT-CCI-CD_--
1/23/2015
2:41 PM
Page 1
January 26, 2015
PEOPLE
FINANCE
Robert Wilson to senior vice president
and business development officer, Citizens Financial Group Inc., Southfield,
from vice president and director of the
private equity group, Huntington National Bank, Troy.
MANUFACTURING
Evans
Eldridge
Bob Evans to president and general
counsel for North America, Freudenberg North America LP, Plymouth
Township, and regional representative, Freudenberg Group, from general counsel Americas.
Melissa Eldridge to director of new product development and sourcing, McKeon
Products Inc., Warren, from new product development manager-innovations,
HoMedics Inc., Commerce Township.
CALENDAR
IN THE SPOTLIGHT
Central Processing Services has
named Kevin Bopp as CEO and
chief communications officer for
sister company Associated
Community Services.
Bopp has been
with
Southfieldbased ACS for
more than five
years. Before
that, he
worked for
Diversified
Construction
and Larson
Realty.
Bopp
As CEO, he
occupies a new position that
covers and expands the role held
by the recently retired Ted
Wildman, former vice president of
operations. Bopp also will provide
counsel to executive leadership on
communications strategy, public
relations and client outreach.
Bopp, 43, attended Michigan
State University, where he studied
public affairs.
and education, Engineering Society of
Detroit, Southfield.
REAL ESTATE
Jake Olsman to vice president, Bloomfield Capital Partners LP, Birmingham, from associate.
TELECOMMUNICATIONS
Douglas Black to vice president of operations, BullsEye Telecom Inc.,
SERVICES
Stephen Koons to senior vice president, automotive, ANXeBusiness
Corp., Southfield, from founder/presi-
Page 17
Southfield, from senior vice president, network services, Grid4 Communications Inc., Troy.
dent, Trumble Park Partners, Durand.
TRANSPORTATION
Tim Walker to senior meetings and
events manager, Special D Events,
Jeff Rogers to CEO, Universal Truckload Services Inc., Warren, from exec-
Ferndale, from director of programs
utive vice president.
1HHGDQ,QYHVWPHQW
5HDO(VWDWH/RDQ"
WEDNESDAY
JAN. 28
Executive to Executive Series No. 2:
Achieving Outcomes Through Continuous Improvement. 8-10 a.m. Plante
Moran PLLC. The speaker is Samuel
Flanders, M.D., executive vice president of quality, safety and clinical efHealth.
fectiveness, Beaumont
Lawrence Technological University
science building atrium, Southfield.
$30, or free for LTU students, faculty
and alumni. Contact: Donna Kress,
(248) 204-3054; email: dkress@ltu.edu;
website: ltu.edu/management/exec
utivetoexecutive.asp.
Detroit Economic Club Presents.11:30
a.m.-1:30 p.m. With Mike Petters,
president and CEO, Huntington Ingalls Industries. Westin Book Cadillac Detroit. $45 DEC members, $55
guests of members, $75 others. Ticket
sales end at noon Jan. 27. Contact:
(313) 963-8547; email: info@econ
club.org; website: econclub.org.
THURSDAY
JAN. 29
Inside the CEO Mind. 8-10 a.m. Detroit Regional Chamber. Cynthia
Pasky, CEO of Strategic Staffing Solutions, speaks at breakfast event.
$25 chamber members, $50 nonmembers. Contact: Maggie Oldenburg, (313) 596-0482; email: molden
burg@detroitchamber.com; website: detroitchamber.com/events.
Automotive Industry Outlook: Opportunities & Risks. 5-8 p.m. Marketing & Sales Executives of Detroit. Mike Wall, director of
automotive analysis for IHS Automotive, speaks on IHS’ outlook for
2015 and beyond at dinner and networking event. Management Education Center, Troy. $45 members,
$65 nonmembers. Contact: (248) 6436590; website: msedetroit.org.
Preview of M1 Concourse. 6-8:30
p.m. Asian Pacific American Chamber of Commerce. This networking
event includes a behind-the-scenes
DETROIT POLICY CONFERENCE
MAPPING MAY’S ROAD VOTE
The Detroit Regional Chamber
focuses on “Power Perspectives” at
its Detroit Policy Conference, set for
7:30 a.m. to 4 p.m. Feb. 26.
Rodrick Miller, Detroit Economic
Growth Corp. president and CEO,
and Paul Pastorek, education
adviser to Gov. Rick Snyder, will
discuss the future of economic
development in the Detroit region
and the importance of education in
a changing world.
The event will be at MotorCity
Casino Hotel, 2901 Grand River
Ave., Detroit. The cost is $99 for
chamber members or $165 for
nonmembers (cost includes
membership).
For information or to register,
contact Janelle Arbuckle at (313)
596-0340 or jarbuckle@detroit
chamber.com or visit
detroitchamber.com/events.
The Ann Arbor/Ypsilanti Regional
Chamber of Commerce hosts a
lunch-and-learn program with Kirk
Steudle, director of the Michigan
Department of Transportation,
from 11:30 a.m. to 1 p.m. Jan. 29.
Steudle will talk about the
legislative package that Michigan
lawmakers recently passed, and
on which voters must make a
decision in May. It’s designed to
increase road funding by shifting
from a flat tax to a tax on fuel at
the wholesale level. It would also
ease the 6 percent sales tax now
levied on fuel, which does not go
toward road funding.
Another bill asks voters to raise the
sales tax from 6 percent to 7
percent; the additional money would
go to schools and local government.
The luncheon will be held at Ann
Arbor City Club, 1830 Washtenaw
Ave., Ann Arbor. The cost is $40 for
members, $45 for walk-in members
and $55 for nonmembers.
For more information or to register,
visit a2ychamber.org or contact
Robin Lawrence at (734) 214-0113
or robin@a2ychamber.org.
preview of the $40 million private car
garage, 1.5-mile race track and autothemed retail destination. Suburban
Exotic Motor Cars of Michigan Showroom, Troy. $20 for members and
strategic partners, or $35 to join and
attend. Contact: Erin Mclin, (248) 4305855; email: erin@apacc.net; website:
apacc.net.
UPCOMING EVENTS
SphinxCon. 3-9 p.m. Jan. 30, 9 a.m.-6
p.m. Jan. 31, 9 a.m.-noon Feb. 1. More
than 40 arts leaders, including National
Endowment for the Arts Chairman
Jane Chu, plus hundreds of art professionals and educators are slated to attend. Westin Book Cadillac Detroit. $35
for students, $50 for day pass or $150 for
full pass. Contact: (313) 877-9100; email:
abigayl@sphinxmusic.org; website:
sphinxcon.org.
12th Annual Open Your Heart Gala.
5:30-9 p.m. Feb. 5. Lighthouse of Oakland County. Event benefits northern
Oakland County families in need, and
features Mojo from Q95.5 Mojo in the
Morning. Rochester Mills Production
Brewery, Auburn Hills. $50 “Friend”
tickets, $100 VIP tickets. Contact:
(248) 972-1487; email: pperkins@light
houseoakland.org; website: light
houseoakland.org.
3rd Annual Hardcore THAW. 8-11 p.m.
Feb. 7. WWJ Newsradio 950 and The
Heat and Warmth Fund. Les, Seth and
Ashley Gold, stars of TruTV’s “Hardcore
Pawn,” host event with food, drink,
music and appraisals. American Jewelry & Loan, Detroit. $125 VIP, $60 general admission. To buy tickets or learn
more about this event or others, including the Feb. 6 radiothon or the Feb. 5
Celebrity Coneys for a Cause, call (800)
866-8429, email info@thawfund.org or
visit thawfund.org.
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20150126-NEWS--0018-NAT-CCI-CD_--
1/23/2015
6:05 PM
Page 1
Page 18
January 26, 2015
Agree: At the time of a market collapse, CEO saw opportunity
■ From Page 3
Financial management
Joey Agree, a graduate of the
University of Michigan and the Wayne
State University Law School, grew up
in a real estate family, becoming
the fourth generation to enter the
field. He started working for the
company full time in 2006 after
four years as director of acquisitions for Farmington Hills-based
Grand Sakwa Properties LLC.
MARKET PLACE
BUSINESS OPPORTUNITIES
REQUEST FOR PROPOSALS
)UDQFKLVHVDYDLODEOHDFURVV0LFKLJDQ
PARTNER / INVESTER WANTED
REQUEST FOR PROPOSAL
FOR EXCLUSIVE REAL ESTATE
CONTRACT TO SELL RIVER HOUSE
OWNED UNITS
Now interviewing for future
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and Port Huron (on waterfront).
For more information call 810-434-6551
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COMMERCIAL REAL ESTATE
LEASING OPPORTUNITY
EXECUTIVE DIRECTOR
The Presidents Council, State Universities of
Michigan (PCSUM) seeks nominations
and
applications for the position of Executive Director.
PCSUM serves as a forum for the presidents and
chancellors of Michigan’s fifteen public universities to
discuss and frame positions on key higher education
finance and public policy issues. The executive
director will manage the daily activities of the Council
and be the principal advocacy voice for public higher
education in Michigan with state policy makers and
public opinion leaders. Nominations and applications
may be mailed to Patricia Farrell at PCSUM, 101 S.
Washington Square, Suite 600, Lansing MI 48933.
PCSUM is an equal opportunity employer.
Crain’s Classifieds Gets Results
PROCEDURE: Your bid is to be placed in a large
manila envelope and must be sealed securely;
and addressed to RIVER HOUSE CO-OP, ATTN:
Board of Directors/RFP, 8900 E. Jefferson,
Detroit, MI 48214. Bids will remain sealed and
placed in a lock box until a subcommittee of the
board opens them on Monday February 2nd.
They will read, evaluate and make its
recommendation to the entire board. The full
board will score each proposal and award the
contract.
MI
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cdbclassified@crain.com
313.446.6068
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SELLING TO THE HIGHEST
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BETH ROSE REAL ESTATE & AUCTIONS
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313.446.6086 • FAX: 313.446. 034 7
E-Mail: cdbclassified@crain.com
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The Crain’s reader:
Qualified bidders are to submit:
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4. Appear before the Board of Directors for 5
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PRIME
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MMER
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10,000 sq. ft. Bldg, Blt 2001, Like New, Fully
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OBJECTIVE:
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given time. This will be an exclusive contract
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QUALIFICATIONS:
1. Minimum of five (5) years of successful real
state sales experience
2. Current real estate license, insurance and any
required bond(s). If held by your broker, please
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3. Real estate sales is your full time employment
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4. Availability to show property at prospective
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AUCTIONS
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COMMERCIAL PROPERTIES
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REAL ESTATE
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Things didn’t always look as
rosy for the company. Agree owns
power centers, freestanding drugstores, big box stores like Sam’s
Club and Lowe’s and restaurant
buildings, among others.
Up until its recent acquisitions
streak, Borders, the former Ann
Arbor bookseller that filed for
bankruptcy protection in 2011 and
later liquidated its assets and
closed its stores; and Kmart, the
troubled Illinois-based subsidiary
of Sears Holdings Corp., were two of
Agree Realty’s top sources of tenant income.
At the beginning of 2010, 29 percent of Agree Realty’s rental income came from Borders. Today,
Borders is no more and Kmart, formerly based in Troy, is Agree’s
eighth-largest tenant instead of its
second-largest, currently accounting for just $1.6 million in annual
rent.
Since January 2010, the company’s exposure to its top three ten-
B
Retail roller coasters
“Joey has transformed the company into what is becoming a bigger and more important player in
the REIT market,” Donlan said.
The company now owns properties in 37 states, compared to 16 in
January 2010, and has tenants in
more than 23 retail sectors. The
company looks particularly for
tenants that are “recession-resistant,” Agree said.
Agree Realty continues to develop properties across the U.S., including $18 million in projects last
year in Ann Arbor, Washington,
Illinois and Florida. All told, the
company owns and manages 4.3
million square feet of space.
Still, conservative financial
management is a priority.
“The balance sheet (today) is
less than 30 percent debt-to-enterprise value, which is one of the
most conservative,” said Agree.
“While we’ve grown pretty dynamically, we have not sacrificed the
core foundation on which this
company was established.”
Kirk Pinho: (313) 446-0412,
kpinho@crain.com.
Twitter:
@kirkpinhoCDB
ants — Deerfield, Ill.-based Walgreen Co.; Wawa, Pa.-based convenience store chain Wawa Inc.; and
Rhode Island-based pharmacy CVS
Caremark Corp. — has gone from 70
percent to just 30 percent, and its
exposure to the Michigan market
has gone from 54 percent to 25 percent, according to Agree.
“While Walgreens and CVS are
still their two largest tenants, they
are significantly less than what
they were, and those are about two
of the best you can be overexposed
to,” said Daniel Donlan, managing
director of REIT equity research
for Miami-based Ladenburg Thalmann & Co.
B Y
$35.45 as of Friday afternoon.
S
Agree Realty reported $43.52
million in total revenue to the U.S.
Securities and Exchange Commission
for the fiscal year ending Dec. 31,
2013. That is up 80 percent from
$24.46 million in the fiscal year
ending Dec. 31, 2009.
Revenue for 2014 is expected to
climb another $10 million or more.
According to Bloomberg LP, analysts project that the company will
report $53.2 million in 2014 revenue next month. And Agree said
last week those estimates might be
too conservative as the company
projects about $56 million in revenue for 2014.
Funds from operations, a measure of profitability, in 2013 was
$28.37 million, or $2.10 per share.
“Among all the REITs I cover,
they (Agree) have some of the
strongest (earnings) spreads,” said
Craig Kucera, senior research analyst with Memphis, Tenn.-based
Wunderlich Securities Inc.
The shift to acquisitions has
been good for Agree Realty shareholders, too, as its stock price has
increased 53 percent in the past
five years from $23.29 per share to
N
rates and property values after being almost exclusively a developer. The company went public in
1994 under the leadership of Joey’s
father, Richard Agree, who remains on the board.
But in 2010, Joey Agree pushed
the board of directors for a stock offering to raise $31 million and to
pair that money with new lending
to purchase $40 million in real estate in 2010 alone. It’s continued the
buying trend since then; 2014 was a
banner year for the company, too.
Last year, it spent $147.5 million
acquiring 77 leased properties in
22 states. There are 28 different
tenants in the properties across 15
different retail sectors, with an average lease term remaining of 14.1
years. Funding for the deals came
primarily from a $75 million stock
offering in December, a $65 million
unsecured term loan in July 2014
and the sale of about $12 million in
assets, said CFO Brian Dickman.
The credit for the company’s
growth during a challenging market has been attributed to Agree,
36, the president, CEO and director, and his 15 employees.
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20150126-NEWS--0019-NAT-CCI-CD_--
1/23/2015
4:52 PM
Page 1
January 26, 2015
Page 19
College: For promise of free tuition, ‘the devil’s in the details’
■ From Page 1
“The devil’s in the details. No
one knows what this really means
yet for funding, and that’s the conversation
to
have next,” said
Curtis
Ivery,
chancellor
of
the Wayne County
Community College District.
“But at the end
of the day, it’s got
to be a good
thing, to put
Ivery
more students
into the educational cycle.”
If the program draws new students to community college who
weren’t previously planning on
college at all, then institutions
may compete with each other for
that new market, based on programs they offer or their number
of transfer or articulation agreements with four-year colleges.
It’s not clear yet, college administrators said, if the new assistance
could even travel with students
across community borders and increase out-of-district enrollment.
And if the promise causes fouryear schools to compete more directly with community colleges for firsttime students, that scenario could
have winners and losers, too.
As envisioned, the program
would cost about $60 billion over 10
years in federal funds, and up to another $20 billion in matching funds
from the states if all participate.
Michigan’s exact piece of that
pie is hard to compute without
more specifics. But the state’s 28
community colleges together derived $671.1 million revenue from
student tuition and fees in the
2011-12 academic year, or 45 percent of all revenue in their yearly
operating budgets, according to a
report from the Michigan Community College Network. Most of the nontuition revenue comes from state
budget funding and local property
tax collection.
At the same time, the state estimates 52 percent of the more than
400,000 community college students
statewide managed to complete a degree or certification or transfer into
a university or other institution
within six years of enrollment.
That’s according to the state’s Education Dashboard report for the
2011-12 and 2012-13 academic years.
That’s up from the 44 percent sixyear completion during the 2007-08
year. These figures could be significant because the White House is
calling for eligible students under
the Promise program to meet several requirements to have tuition
eliminated. They must be enrolled
at least half time, maintain a 2.5
GPA, and have a coherent schedule
of courses that builds credits toward a specific degree or program
certification.
Every school would be affected
differently, due to local demographics.
Washtenaw Community College, for
example, reports 58.3 percent of students from 2008 reached completion
or credit transfer in six years, while
Macomb Community College President Jim Jacobs said 53 percent of
students enrolled in 2007 had done
so, including 45 percent who transferred to a four-year college.
Washtenaw reports in the 201213 academic year some 6,028 students, or 29.3 percent of total head
Other routes to higher ed
America’s College Promise,
the proposed federal program to
fund two years of community college tuition, wouldn’t be the first
opportunity for local students to
gain higher education at no cost.
Other local programs include:
The Detroit Regional Chamber
administers the Detroit Scholarship Fund program, drawing
some private funds raised
through the Michigan Education
Excellence Foundation, to help
graduates of 60 high schools enroll in tuition-free community
college courses. The program is
open to students who are Detroit
residents, attend any public or
private high school or charter
school in the city at least two
years and graduate. The fund has
helped place more than 600 students, often filling gaps between
financial aid via Pell grants and
total costs.
Macomb Community College
offers the three-year Early College of Macomb program in collaboration with Macomb Intermecount, received the federal Pell
grant.
In Macomb, where Jacobs said
the county has seen income decline
and a rise in new residents moving
from Detroit and overseas, the college receives 52 percent of its revenue from Pell and more than twothirds of its 23,000-plus students are
eligible.
The grant, capped at $5,730 for the
diate School District and the 21
public school districts in Macomb County. Public high school
students who meet testing and
other criteria can enroll concurrently in MCC courses starting
their junior year, earning at least
36 college credit hours before
graduating high school. They
then attend a third year of community college after high school
to qualify for an associate degree
and skill certificate a year after
obtaining their high school diplomas, at no cost.
Oakland Community College
hosts an early college program in
collaboration with West Bloomfield
School District, which pays for area
high school students to dual-enroll at OCC, allowing students to
obtain a diploma and associate’s
degree around the same time.
Henry Ford Community College
and Washtenaw Community College
have similar dual enrollment
programs with K-12 districts,
many of which cover a student’s
tuition and fees.
2014-15 year, generally is enough to
cover all community college costs
for any eligible student. So the more
highly engaged degree-program students a specific college has, and the
lower its Pell student head count is,
then the more that specific school
could stand to gain by way of new
federal/state revenue under a
Promise program.
“There could be these winners
and losers created, but the total
business model impact is still hard
to tell,” said Michael Hansen, president of the Michigan Community Colleges Association. “Opening the front
door is good and important, but we also need to
make sure that this has
value in the labor market,” Hansen said.
The Promise initiative
also requires the colleges
themselves to have trans- Boulus
ferable credit courses and
programs that four-year colleges accept, and occupational training programs with high grad rates.
Hansen said the Promise program would likely draw in a sizable portion of the roughly 30 percent of high school graduates each
year who don’t begin any postsecondary education, expanding both
student head counts for the colleges and educational attainment
rates for the state as a whole.
But he and others also
said a national Promise program would likely accelerate the growing trend of students opting to start out at a
community college and
transfer later to a four-year
school.
“At the margin, there
could be some impact on
other postsecondary enrollMiller
ment like that,” he said.
“But I think the universities ultimately make that up with transfers,
of new and very successful upperclassmen.”
Michael Boulus, executive director of the Presidents Council,
State Universities of Michigan, said
the policy may attract more nonparticipants in higher education,
but that could also bring new challenges for community colleges.
The council hasn’t taken
a position yet on the
Promise proposal, he said,
but may do so if it gains
more traction in Washington.
“If you add more students
to your head count who
aren’t college-ready, or proficient in certain subjects —
but might take advantage of a free
community college education —
you’re going to have more need for
(developmental) education courses
for those students,” he said.
Jacobs said the Promise might
also help community colleges compete for a different student market.
“The emphasis may be on students who come out of high school,
but it can be used by older working
people, too,” Jacobs said.
Sharon Miller, vice
chancellor of external affairs for Oakland Community College, said it’s difficult to gauge how much
traction the Promise plan
has in Washington — but
the discussion at a national level is still helpful.
“Community colleges
win in this debate, regardless of the outcome, because
there’s more visibility for the
schools — and what we do and how
we help,” Miller said.
Chad Halcom: (313) 446-6796,
chalcom@crain.com.
Twitter:
@chadhalcom
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20150126-NEWS--0020-NAT-CCI-CD_--
1/23/2015
6:26 PM
Page 1
Page 20
January 26, 2015
Big deals: ‘I’ve never seen a better time to sell or buy’
■ From Page 1
M&A: LOOK BACK IN ANGST
2014
2013
2012
the best totals since the recession
started in 2008. The record for deals,
152, was set in 1998. And 2009’s
record deal volume was driven
largely by nearly $68 billion related
to the U.S. government bailout of
General Motors and Chrysler.
In love with autos again
The story of 2014 was the display
of health by the automotive industry and manufacturing generally.
The largest deal, by far, was the
pending acquisition of Livonia-
2011
2010
46
$80.9
64
$18.1
$19.3
95
$27.5
77
$29.8
113
Number of deals
70
Yes, the $80.9 billion value of
deals in 2009 is higher than
other years since. But all
except $4.3 billion of that was
from acquisitions related to
bankruptcy or government
bailouts.
Value in billions
$43.7
Private equity was a particularly strong force. PE firms raise
funds from limited partners with
time constraints for deploying the
funds and harvesting portfolio
companies.
Funds that were raised during
or immediately after the recession
tended to hold
off on doing
deals, meaning
they have an
added incentive
to do them now,
said
Aaron
Witalec, director of UHY Corporate Finance in
Detroit.
Witalec
The result is,
he said, PE firms now are happy to
do deals for companies at the lower end of the middle market that
they once have viewed as too
down-market.
“In the past, they might only
have done deals for companies
with $10 million in EBITDA (earnings before interest, taxes, depreciation and amortization). Now,
we’re seeing private equity companies focusing on companies with
EBITDA of $1 (million), $2 (million) or $3 million. And that lower
end of the middle market is the
bread and butter of Michigan companies,” Witalec said.
Crain’s has been tracking big
deals since 1996, and neither the
deal nor dollar numbers in 2014
were a record, but they were by far
2009
based TRW Holdings Group Inc. for
$12.4 billion by ZF Friedrichshafen
AG, with the second-largest the
$4.35 billion deal by Fiat SpA of
Italy for FCA US LLC of Auburn
Hills, better known as Chrysler.
“Auto is back with a vengeance,”
said Phil Gilbert, managing director of P&M Corporate Finance LLC,
an affiliate of the
accounting firm
of
Southfieldbased Plante &
Moran PLLC.
“It was a very
robust market
last year, and the
pipeline remains
Gilbert
full,” said Tony
Blanchard, managing director of
the Detroit office
of Deloitte Corporate Finance LLC.
He heads the
firm’s auto and
industrial M&A
practice.
He credited
the supply chain
Blanchard
for “the leaningout of costs and operational improvements” during and after the
last down cycle, as well as “great financial performance in general”
for helping drive deal flow in 2014.
It was a deal flow also helped in
large measure by the eager return
by private equity to a sector left for
dead in 2009. They had questions
about future down cycles but were
impressed by the answers.
“Every deal we took to market,
buyers asked about down-cycle
performance, but companies had
the ability to show they were able
to turn off costs, improve balance
sheets and ride out the storm,”
said Blanchard.
He predicted the 2015 pipeline
would be helped by acquiring companies in 2014 now looking to carve
out nonessential assets, and by
cross-border activity, particularly
Asian companies eager to get into
what is again one of the world’s best
auto markets and best economies.
“The deep flush in 2009 wiped out
all the excess capacity in auto. An
unbalanced relationship between
suppliers and customers that had existed for 20 years got back in balance
in one flush,” said Cliff Roesler, a
partner in Birmingham-based Angle
Advisors-Investment Banking LLC.
Angle had a record year with 17
deals out of the Birmingham office
worth $1.4 billion last year, and another eight deals for about $540
million out of the German office. It
did four deals for more than $100
million, including its two biggest
deals since being founded in 2010,
said Roesler.
Another banner year in 2015?
There is broad consensus that
2015 will continue to be part of an
era M&A professionals will long
remember as the good old days.
“The pace in
2015 will be as
strong as or
stronger than it
was in 2014,”
said
Rajesh
Kothari, managing director of
Southfieldbased
investment banking
Kothari
and
venturecapital firm Cascade Partners LLC.
“We’re very positive for 2015.
I’ve been in this business for 27
years, and I’ve
never seen a better time to sell
or buy,” said Andre
Augier,
managing director of Birmingham-based investment
banking
firm
Quarton Partners
Augier
LLC.
Local M&A professionals think
any interest rate increases by the
U.S. Federal Reserve Bank will be late
enough in the year and small
enough to have little impact on deal
flow, and despite the high level of
activity in 2014, they don’t see the
signs of irrational exuberance they
were seeing in 2006 and 2007 that
could lead to a bursting bubble.
“Valuations are higher than I’ve
WHY 2014 WAS SUCH A BIG DEAL
Here are the factors that converged
to make 2014 a good year for dealmaking:
Growing confidence in the U.S.
economy.
Near record-low interest rates.
The eager return to deal-making
by banks.
Strategic buyers with strong
balance sheets who wanted to
grow top and bottom lines faster
than they can organically.
Private-equity firms had cash
that needed to be invested to meet
timelines for returning profits to
limited partners.
A lot of healthy companies that
survived the recession by cutting
costs.
A booming U.S. auto market,
with sales of new cars and trucks
totaling 16.5 million in 2014.
Willing sellers who had waited
for business values to rise.
Continued cheap energy costs,
led by gasoline.
Stable labor and commodity costs.
ever seen them, and I’ve been doing
this for 18 years,” said Kothari.
Deals that would have gone for a
multiple of five or six times EBITDA
two or three years ago are now
fetching multiples of seven, eight or
more.
Despite high valuations, Kothari sees little chance of things
overheating in 2015.
“People are more measured and
far more methodical. There isn’t the
frenzy there was then in 2006 and
2007,” he said. “You couldn’t identify the thought process behind a lot
of deals, then. People were doing
crazy things. Now, you understand
why people are doing deals.”
“We’re projecting pretty favorable
tail winds for the next 24-36 months.
I don’t see anything major happening before 2017,” said Gilbert.
“The only thing that can cool this
white-hot market is a significant increase in interest rates, and there’s
little chance of that,” said Augier.
Interestingly enough, Augier
credited a long, mediocre national
economic recovery for making his
industry so dynamic last year. He
said clients who survived the recession rebuilt their profit margins and their cash reserves but
nonetheless found stalled organic
growth, which led to growth
through acquisition.
“There’s a lot of money still
chasing deals,” said DuBay. “If
you have a good company, someone will buy it.”
Tom Henderson: (313) 446-0337,
thenderson@crain.com. Twitter:
@tomhenderson2
HOW THE DEALS BROKE DOWN
56
7
12
Number of deals related to automotive
or manufacturing, totaling
$28.5 billion.
Number of top 12 deals that were auto/
manufacturing, all of them for $700 million
or more.
Number of deals in the financial sector,
totaling $5.6 billion. The fourth-largest deal
overall was a private placement of Ally
Financial Inc. stock in January for $3 billion, with the
eighth-largest deal another private placement of Ally stock
of more than $1.2 billion in December.
Number of deals in
services, totaling $2.5
billion, led by the
estimated $675 million sale in
May of Novi-based Learning Care
Group Inc. to its management
team and American
Securities Capital Partners
LP of New York City.
19
8
deals in medical or
biotech, totaling
$377 million.
ISTOCK PHOTO
20150126-NEWS--0021-NAT-CCI-CD_--
1/23/2015
4:34 PM
Page 1
January 26, 2015
Page 21
McLaren: New vision for ‘hospital of the future’
■ From Page 1
Health Analytics in Ann Arbor will
conduct a health needs assessment
for outpatient services in the
Clarkston-Independence Township area and examine reimbursement levels for those services, said
Greg Lane, McLaren’s chief administrative officer.
The consultant report will help
guide McLaren’s future investment in the outpatient center complex, Lane said.
On top of building a 30-bed shortstay unit for patients who need less
than 24 hours of care on an outpatient basis, Lane said, McLaren
would also like to expand its outpatient cancer care center and build a
second medical office building at its
Clarkston Health Care Village site.
Unlike acute-care medical-surgical beds, which require a certificate
of need, short-stay beds don’t require CON approval, said Casalou,
who is chairman-elect of the Michigan Health and Hospital Association.
Casalou should know. St. Joseph
Mercy is proposing to add 28 shortstay beds at St. Joseph Mercy
Brighton as it converts the traditional outpatient center into a
short-stay hospital.
The $25 million proposal, which
includes refurbishing and adding
private rooms at nearby St. Joseph
Mercy Livingston
Hospital in Howell, is pending
approval by St.
Joseph’s corporate
parent,
Livonia-based
Trinity Health. If
approved, work
on the Brighton
center could beCasalou
gin this July
with opening set for mid-2016,
Casalou said.
Casalou said the short-stay service fills a gap for patients who
fall between outpatient care and
the full-service needs of inpatient
care.
“You can keep outpatients in the
(short-stay) bed as long as you
want, longer than 23 hours, but
you only get paid the outpatient
rate,” Casalou said. “It is on your
nickel if it lasts longer than 23
hours.”
Jackson said he has no objections to McLaren or any other hospital that wants to build a short-
stay hospital or add a unit to an existing outpatient center.
“As long as they conform to
(CON) law, we have no objections,”
said Jackson, who opposed
McLaren’s plan to transfer 200 unused beds from the company’s Pontiac hospital to the new Clarkson
site because the alliance believes
duplicative services would drive up
health care costs for employers.
Lane said McLaren was deeply
disappointed the 11-hospital nonprofit company failed to get approval for a new hospital. But he
said executives
still believe a
hospital
will
eventually
be
built there because of increasing population.
“The site we
have in mind in
Clarkston is perfect for a (200Lane
bed) hospital,”
said Lane, noting that the new
short-stay hospital will be built
based with inpatient specifications.
In the meantime, Lane said,
McLaren wants to expand the
McLaren Health Care Village —
off exit 89 on I-75 — as an interim
measure because health care
needs are expanding as the community grows.
The McLaren Health Care Village already offers several services,
including a 24-hour emergency department with board-certified
emergency medicine physicians,
the Clarkston Medical Group with primary and specialty physicians, a
three-operating room ambulatory
surgery center and an outpatient
cancer center.
Besides a short-stay unit and expanded cancer center operations,
future use could also include senior
housing, assisted living, continuing care, restaurants, banking, retail, restaurants, specialty grocery,
and joint ventures with medical device manufacturers and pharmaceutical companies, Lane said.
For example, Lane said, McLaren
could expand its cancer center to do
outpatient surgery services. The
McLaren Cancer Institute in Clarkston already does medical oncology
and radiation treatment, he said.
“Our philosophy is, only put
technology in the hospital that is
needed,” he said. “We already have
one CT scanner in the emergency
department and other diagnostics
in the surgery center and cancer
center. We won’t replicate that.”
Future care
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Casalou said that over the past
decade he has advocated for lowercost, short-stay hospitals that are
rich in diagnostic technology and
diverse in specialty medical care.
The inpatient hospital of the future, he said, may well be large intensive care units for a range of
chronic health conditions, advanced surgery suites for complex
operations and massive emergency
departments for traumatic injuries.
Short-stay hospitals, designed
for lower-acuity patients, could become more plentiful, said Casalou,
who added that St. Joseph Mercy
is considering a similar facility in
Canton Township.
The primary difference between
a full-service and short-stay hospi-
tal could be services — open heart
surgery, organ transplants, neo-natal and other intensive care services — that support inpatient stays
longer than 24 hours, Casalou and
Lane agreed.
“We have more people in fullservice hospitals that are considered outpatients but are in inpatient facilities” because hospitals
don’t have any places to put them,
Casalou said.
“If you have someone who needs
overnight care, why put them in
the most complicated, most stressful environment?” that is a fullservice hospital, he said. “It doesn’t aid efficiency and comfort.”
Before Casalou joined St. Joseph
Mercy in late 2008, he was the
founding CEO of Providence Park
Hospital in Novi.
In 2002, Casalou said, St. John
looked at building a short-stay hospital in Novi instead of Providence
Park, which opened in 2008 under
the sponsorship of Warren-based
St. John Providence Health System.
“There weren’t enough outpatients classified that way, so we
eventually built (full-service)
Providence Park,” he said.
But last year, Casalou said, St.
Joseph commissioned a study of
patients and physicians in the
Brighton and Canton Township
communities that clearly showed
demand for a short-stay hospital.
“You have to make sure you have
access to a full-service hospital
nearby” to transfer patients in
emergency situations, Casalou said.
Casalou and Lane agreed that
short-stay hospitals can help stabilize patients before they are transported by ambulance or helicopter
— extending life-saving emergency care at level-one trauma
hospitals.
In transporting patients from
Brighton, Casalou said, St. Joseph
has a full-service hospital about 20
minutes away by ambulance at St.
Joseph Mercy Livingston Hospital in
Howell.
“We were going to build a $250
million replacement hospital in
Howell,” he said, but decided to
create a short-stay unit and 24hour emergency department in
Brighton and upgrade the full-service hospital in Howell.
“We will build a short-stay unit
for much less and save the community nearly a quarter billion dollars,” Casalou said.
While short-stay units are common in inpatient hospitals, Casalou said, Brighton’s short-stay unit
could become the first as part of an
outpatient center in Michigan. It
also would be a pilot project for 86hospital Trinity. The Brighton
center also may add two operating
rooms to its existing six, he said.
“This new delivery approach is
the future of health care.”
Lane said McLaren’s short-stay
hospital also could be the first in
the nation that is built and designed from scratch specifically
for short stays.
“We want (our short-stay facility) to fit in for the future,” Lane
said. “You have inpatient declining, and outpatient increasing. We
want the facility to accommodate
these services and changes going
forward.”
Jay Greene: (313) 446-0325,
jgreene@crain.com.
Twitter:
@jaybgreene
www.crainsdetroit.com
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20150126-NEWS--0022-NAT-CCI-CD_--
1/23/2015
4:33 PM
Page 1
Page 22
January 26, 2015
Adell: Getting The Word Network out to 3 billion households
■ From Page 3
Up to 20 contracts come up for renewal every month, he said, and he
expects to realize up to $30 million
in new revenue by adding the radio
station.
“Any time I add distribution, I
increase rates. It’s just a part of the
normal increases,” Adell said. “I’m
bringing them more households.”
Neither the TV network nor radio station sells commercial advertising.
“I don’t need to sell spots to pay
for it,” Adell said.
Adell, 48, said he has a product
that reaches all demographics globally.
“Jesus is known in the four corners of the Earth,” he said.
Adell makes The Word Network,
which is primarily aimed at black
audiences, available to cable and
satellite companies at no charge.
“It takes away the competition,”
he said.
Low overhead
The radio station isn’t much of
an expense, Adell said. He’s hired
a single employee, an engineer, to
handle 910 AM.
He’s spending about $100,000 on
new radio equipment and a small
master control room, along with 30
billboards across Detroit and commercial airtime on Detroit TV channels 7 and 20 for about six weeks to
market the reformatted radio station.
Plugs for 910 AM also are appearing on The Word Network,
which also does some live programming of its own three days a
week, and is adding a fourth.
Adell and his late father, Franklin, launched The Word Network in
2000. The 501(c)(3) nonprofit religious network has 200 full- and
part-time employees and three
prayer call centers, Adell said.
Global reach
Why the 200-some pastors write
checks to Adell to get on his network is evident: The Word Network
is available to more than 3 billion
households in 200 countries via 12
satellites, including 87 million domestically, according to data provided by the broadcaster. It’s also
available on airlines including Continental, Jet Blue and United Airlines.
Specific viewership numbers
are unavailable.
The network’s airtime rates reflect a wide reach, and Adell’s staff
uses other methods to push content.
For example, the network has a
76,000-subscriber monthly newsletter.
On the new-media side, the network claims 1 million live-streaming users of its app, and it’s actively
pushing content via social media.
Adell is also considering broadcasting to Cuba now that the U.S.
sanctions are in the process of being lifted.
“That’s an easy signal. It’s just
90 miles to Florida,” he said.
Getting on the air
The newly acquired radio station aired preteen-oriented Disney
music and programming from a
group of five transmitter towers
built on 50 acres in Monroe County. Adell got the towers and land in
the deal, too.
A temporary satellite dish and
other equipment was installed at
the transmitter site so there would
be no gap in broadcasting while the
station changed hands, Adell said.
A 150,000-kilowatt generator is
being built for 910 AM, he said.
He’s putting in a master control
room at his Southfield broadcast
complex, including a hallway and
walls emblazoned with the radio
station’s new logo that Adell said
he designed.
The yellow circular logo is interchangeable with Adell’s Clinton
Township-based WADL TV-38, which
is displayed as part of marketing
deals at Comerica Park, Joe Louis
Arena and the Palace of Auburn
Hills. He said he may switch some of
the WADL signs at those venues
with the 910 AM logo so that it airs
during games, or buy more signs.
“I see my logo every game,” he
said.
Radio days
Owning a radio station fulfills a
dream for Adell, who personally
gets involved in buying and setting up equipment.
“I always wanted to get into radio, but the timing was never
right, the price wasn’t right,” he
said. He got into broadcasting as
an amateur radio operator as a
teenager, and today his Hummer
has a pair of radio aerial antennas
for his ham radio.
The 910 AM deal was the ideal
opportunity for Adell.
It would have cost about $15 million to build such a station as 910
AM from the ground up, Adell said.
“They don’t make 50,000-watt
stations anymore,” he said.
Radio observers say there is a
trend of niche broadcasters gobbling up stations for such
use.
“You
see
deals popping
up like this in
certain parts of
the country, and
the
numbers
seem to make
sense for them,”
Rood
said Hal Rood,
partner and executive vice president at Lancaster, Pa.-based analysts Strategic Radio Solutions.
“There are entrepreneurs using
these transmitters that broadcasters are shedding and making nice
little businesses out of it. It’s a win
for Disney, (Adell) and listeners
seeking this sort of content.”
A business decision by Disney
several years ago laid the foundation for Adell’s interest in the station: It paid to technically reorient
the station’s signal from Flint-focused to aimed at the metro Detroit market, a move that required
the purchase of two other stations
to take off the air so the signal
space was cleared for WFDF.
Once Adell began the process of
acquiring the station, he went into
overdrive.
It took him and his father 120
days to launch WADL, and 45 days
to start Word, Adell said.
He got the radio station running
as a Word simulcaster in 72 hours.
“I did this in a weekend,” he
said. The deal with Disney took
The radio station
isn’t much of an
expense, Adell said.
He’s hired a single
employee,
an engineer.
about two weeks, and he paid the
asking price rather than haggling.
Adell said he looked in the recent past at buying WGPR 107.5 FM
and WXYT 1270 AM, but deals never
happened.
CBS Radio turned down his $7
million offer for WXYT, he said.
Debbie Kenyon, CBS Radio market manager and senior vice president, said the company fields “all
sorts of queries about our stations
all the time” but didn’t address
Adell’s interest in WXYT.
Adell paid ABC $750,000 in 1994
for the building that now is home
to The Word Network and 910 AM.
It’s next to WXYZ-Channel 7.
“I pretty much have bought
everything I ever wanted — if the
price was fair,” he said. “I never
put a price on something I’m passionate about.”
Adell Broadcasting Co.’s broker,
Elkridge, Md.-based Patrick Communications, announced the $3 million
WFDF sale on its website Nov. 18.
Radio Disney, which used
Williamsburg, Va.-based media
brokerage firm Schutz & Co., said in
August that it intended to sell 22
AM and one FM station as part of
its effort to move to a digital con-
tent business.
WFDF went on the air in 1922 under the call letters WEAA, and
changed to its current letters in 1925.
The station’s format over the years
has been adult contemporary, Top
40, news-talk, and adult standards.
Adell said a researcher traced the
broadcasting career of the station’s
founder, Frank Fallain, to 1909 —
possibly making 910 AM Michigan’s
oldest radio station.
Profitable nonprofit
Adell has an unusual business
arrangement for The Word Network, which is a nonprofit as a religious broadcaster.
He derives revenue from The
Word Network’s contractual payments to STN.com Inc., the satellite
TV uplinking business that he owns.
The Word Network pays STN to
uplink its signal, creating the revenue stream for Adell.
He also owns Birmingham Properties, a real estate company that
owns the WADL and Word Network office/studio properties.
Adell also owns the site of the former Novi Expo Center at I-96 and Novi
Road — a water tower there has
been emblazoned with “ADELL” —
and Bingham Farms-based BurtonKatzman Development Co. has
planned a $100 million, 500,000square-foot mixed-use project on
the site anchored by either two
eight-story office buildings or an office building and a hotel.
Signing off
Adell’s foray into radio comes at
a time when he’s exiting the terrestrial television industry.
DAVID KUDLA
Executive Director
ENGAGE 2015
CEO & CIO
Mainstay Capital
Management, LLC
March 26-27, 2015
Cobo Center | Detroit, Michigan
FEDERAL RESERVE PERSPECTIVE
DENNIS P. LOCKHART
President & CEO
Federal Reserve Bank of Atlanta
Adell told Crain’s in October
that he plans to sell WADL in the
FCC’s auction this year of the UHF
over-the-air broadcast spectrum.
Mobile wireless providers need
more airwave bandwidth to satisfy
customer demand, and the 600MHz spectrum used by stations
such as WADL is coveted because
it penetrates obstacles such as
walls and basements.
Based on estimates provided by
the FCC, which Adell shared with
Crain’s, he expects to get $170 million for WADL’s portion of the local
UHF airwaves. The station, which
he and his father launched in 1989,
would go off the air three months
after the auction sale is finalized.
Adell’s parents applied for a television license in 1978, and it was
awarded 10 years later, he said. He
said his father borrowed $3 million
to build the station, and it went on
the air in May 1989.
Franklin Adell, who had established himself with a family-owned
auto supplier of doorjambs decades
before, hired Kevin after his graduation from Arizona State University in
1988 to help him run WADL.
It initially broadcast infomercials and home-shopping programming before adding religious content, along with children’s shows,
music videos and classic movies.
It airs a mixture of older and
newer syndicated shows, many
aimed at an urban African-American audience.
The Word Network is a separate
company from WADL, which
broadcasts in eight Southeast
Michigan counties.
Bill Shea: (313) 446-1626,
bshea@crain.com.
Twitter:
@bill_shea19
We invite you to join us at the ENGAGE
International Investment Education
Symposium, hosted by Wayne State University
in association with the United Nations Global
Compact and Mainstay Capital Management.
Held at the newly renovated Cobo Center
in Detroit, Michigan, ENGAGE 2015 will
bring together students, professors, and
professionals from across the U.S. and
Canada for presentations, panel discussions,
and interaction. ENGAGE will be the world’s
largest student investment conference in
2015, providing a valuable experience for
students, faculty, and professionals alike.
For more information, visit:
DR. ROBERT FORSYTHE
Dean
School of Business
Wayne State University
engage.wayne.edu
facebook.com/engage.iies
twitter.com/engage_iies
FRED TOMCZYK
President & CEO
TD Ameritrade
SCOTT POWERS
MELLODY HOBSON
President & CEO
President
State Street Global Advisors Ariel Investments
ROBERT REYNOLDS
President & CEO
Putnam Investments
DR. M. ROY WILSON
President
Wayne State University
BILL MILLER, CFA
Chairman & CIO
LMM, LLC
STEVE LIESMAN
Sr. Economics Reporter
CNBC
MARK OKADA, CFA
Co-founder & CIO
Highland Capital
Management
STEPHANIE LINK
Chief Investment Ofğcer
TheStreet, Inc.
CNBC Contributor
TIM SEYMOUR
Managing Partner
Triogem Asset Mgmt.
CNBC Contributor
STEPHEN WEISS
CIO & Managing Partner
Short Hills Capital
CNBC Contributor
JEFFREY KLEINTOP,
CFA
Chief Global Strategist
Charles Schwab & Co.
JERRY WEBMAN,
Ph.D., CFA
Chief Economist
Oppenheimer
ROBERT DOLL, CFA
Chief Equity Strategist
Nuveen Asset
Management
Discounted registration rates expire February 15th. Professional CE credits and student scholarships available.
Host School
International Partner
Ofğcial Broadcaster
Conference Underwriter
20150126-NEWS--0023-NAT-CCI-CD_--
1/23/2015
3:55 PM
January 26, 2015
RUMBLINGS
Jack White’s
pitch now on
baseball card
etroit native Jack
White, the former
White Stripes frontman often captured in photos looking grim, was in
the news last summer
when he threw out the ceremonial first pitch before a
Detroit Tigers game.
The moment is now immortalized in a baseball
card.
New York City-based
trading card company
Topps has included White,
smiling while wearing a Detroit Stars jersey from the
Negro Leagues during his
appearance before the
Tigers’ July 29 game with
the Chicago White Sox, in a
15-card special set within
the 350-card 2015 Topps Series 1 baseball card set.
The set will be released
Feb. 4. It will be sold in 10card packs (MSRP of $1.99).
Among the others in the
“First Pitch” set are actor
Jeff Bridges (Los Angeles
Dodgers), Olympic gymnast
McKayla Maroney (White
Sox), Pearl Jam rocker Eddie Vedder (Chicago Cubs),
rapper Biz Markie (Oakland
Athletics), Rage Against the
Machine guitarist Tom
Morello (Cubs) and singer
Macklemore (Seattle
Mariners).
Perhaps the highlight
card is rapper 50 Cent’s
epically off-target pitch for
the New York Mets last
spring, which has been
billed as possibly the worst
ceremonial pitch in human
history.
D
Page 1
The Series 1 regular set
includes 14 individual Detroit Tigers, including
rookie cards for James McCann, Buck Farmer, Steven
Moya and Kyle Lobstein.
Nardone’s next venture:
Bulletproof hats
Tom Nardone has a new
idea: bulletproof baseball
caps.
And, well, Nardone has
never had a shortage of
ideas. He’s the founder of
the Detroit Mower Gang, the
crew of volunteers who
mow Detroit’s abandoned
lots. He’s also the president
and founder of PriveCo Inc.,
a collection of websites that
sell items you want to buy
in private. He’s a best-selling author known for his
books on pumpkin carving,
and he’s the man behind
BulletSafe.com, which sells
bulletproof vests.
So when Nardone heard
from his customers that
they wanted a sleeker, less
militaristic option for protecting their melons, he
started researching options. When he discovered
there wasn’t really a product on the market, Nardone
decided to invent it. And
then developed a Kickstarter campaign to help
fund the $19,000 he estimates it will take for production tooling.
“People in dangerous
jobs need protection, and
dangerous situations need
less aggression,” he
posted on the
site. “The
BulletSafe
Bulletproof
Baseball Cap
offers discreet protection while
looking professional and
approachable. It’s a
great way for
people to stay
safe.”
People
agreed. Nardone originally set his
fundraising
goal at $3,500,
but he has
raised more
than $10,000.
COURTESY OF TOPPS
Production
Jack White looks uncharacteristically cheery in
of the hats is
his new baseball card, which shows him in an
expected to
appearance at Comerica Park last July.
Page 23
WEEK ON THE WEB
FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 17-23
start next fall after a rigorous ballistic testing this
summer. Nardone will also
be showing off the hat at
trade shows.
“The real challenge of
this product is acceptance,” he wrote. “Will
cops accept our hat as a
new piece of equipment?
Do regular people want
their police officers to be
safe and friendly? The success of this Kickstarter will
let us know.”
The campaign closes
Monday, but the cap details
will live here:
www.kickstarter.com/
projects/CalmTom/the-bulletsafe-bulletproof-baseball-cap
Ranking: Detroit is an
unhealthy city
It’s probably not a surprise that Detroit is at the
bottom when it comes to
health. The latest health
ranking scorecard of 50
cities from BetterDoctor.com
ranks Detroit 40th-healthiest in the nation, slightly
ahead of Indianapolis.
A high number of uninsured residents and a poor
American Fitness Index
score contributed to Detroit’s dismal health rating.
The data-driven ranking
looked at exercise rates,
the number of residents
with health insurance and
the percentage of highly
rated doctors on
BetterDoctor.com, a consumer tool for finding regional doctors.
The study found 88 percent of Detroit residents
have health insurance,
which was lower than the
majority of cities examined.
Other key findings:
Detroit has 1.92 doctors
per 1,000 residents.
Detroit’s American Fitness Index score of 47.3
placed it in the bottom half
of cities.
The healthiest city is
Boston, and the worst on
the list was Memphis.
Detroit gets its first
First Merit Bank branch
Akron, Ohio-based First
Merit Bank will open its first
branch office in Detroit on
Wednesday with an open
house and noon ribbon cutting at the Orchestra Place
branch at 3663 Woodward
Ave.
The bank’s parent company, FirstMerit Corp., has
about $24.6 billion in assets.
In 2013, it bought Flintbased Citizens Republic Bancorp and later brought on
Sandy Pierce, a longtime veteran of the local banking
scene, as chairman and
CEO of FirstMerit Michigan.
It has 140 branches in the
state.
3 tech startups
win chance to
pitch to Google
Clark Durant, co-founder and
former CEO of Cornerstone
Schools; and Faye Nelson,
president, DTE Energy Foundation, and vice president of
public affairs, DTE Energy Co.
nn Arbor-based
AdAdapted Inc. and
Genomenon and Detroit-based LevelEleven
earned a chance at pitching
their business plans at the
annual Google Demo Day
in Silicon Valley in April.
They were judged to have
the best business plans of
the 11 local tech startups
that made pitches in the
Detroit-area finals last
week. Google officials will
choose one or possibly two
of them to go to California
for the national finals.
AdAdapted helps companies build ads designed for
mobile devices; Genomenon makes software that allows data analysis from human genome sequencing;
and LevelEleven, a portfolio company of Detroit Venture Partners, makes salemotivation software.
Fifth Third Bank Eastern
Michigan will delay the start
of its move into Dan Gilbert’s
One Woodward building until late spring. The regional
office of Fifth Third Bank,
which announced in October
it would relocate more than
150 employees from Southfield into the downtown Detroit building, had planned
to begin the move in March.
An official said the delay is
because the new space will
be the pilot for a new buildout concept Fifth Third will
implement companywide; it
still expects to have its move
complete by summer 2016.
Cerberus Capital Management LP is in talks to acquire Digital First Media Inc.
from New York City hedge
fund Alden Global Capital
LLC, Bloomberg reported.
Among Digital First’s properties are the Oakland
Press and Macomb Daily;
The Detroit News also is
owned by Alden.
Warren-based food distributor Lipari Foods Inc. entered an agreement to purchase Bridgeville, Pa.-based
Clover Mountain Foods LLC for
$16 million. Last month, Lipari entered an agreement
to purchase Sun Prairie,
Wis.-based Soderholm Wholesale Foods Inc. for $4 million.
Aviation Industry Corp.,
China’s biggest aerospace
company, is among bidders
to acquire Auburn Hillsbased parts maker Henniges
Automotive Holdings Inc.,
Bloomberg reported. Stateowned AVIC, based in Beijing, could pay about $1 billion for Henniges, and
other Asian companies
have looked at a purchase.
Cadillac plans to ask
about 700 of its dealerships
to invest in small “boutique” stores that would offer “high-technology showrooms” and a higher level
of service, Cadillac President Johan de Nysschen said
at the Washington, D.C.,
auto show, according to Automotive News.
Detroit-based law firm
Clark Hill PLC added three
attorneys and four other
employees of the former
Rayndon Law Group PLC of
Scottsdale, Ariz., at the
firm’s Phoenix office, growing its presence there to 26
attorneys.
A
ON THE MOVE
Former Detroit Emergency Manager Kevyn Orr
was named
by New Jersey Gov.
Chris
Christie as
special
counsel to
Atlantic
City’s new
emergency
Orr
manager,
Kevin Lavin, to aid the struggling seaside gambling resort, AP reported.
State officials formally
promoted Steve Arwood, the
Michigan Economic Development Corp.’s executive vice
president and COO, to
CEO. He replaced Michael
Finney, who joined Gov.
Rick Snyder’s executive staff
as senior adviser for economic growth.
Max Scherzer left the
Detroit Tigers to become the
highest-paid right-handed
pitcher in Major League
Baseball after agreeing to a
$210 million, seven-year
contract with the Washington Nationals that includes a
record $50 million signing
bonus. Scherzer, 30, will receive the money over the
next 14 years.
The Coalition for the Future of Detroit Schoolchildren,
the independent council set
to make recommendations
on improving city schools,
named to its steering committee Charlie Beckham, who
heads the city Department of
Neighborhoods; David Carroll,
vice president, Quicken
Loans; Richard DeVore, regional president of Detroit
and Southeast Michigan,
PNC Financial Services Group;
COMPANY NEWS
OTHER NEWS
Livonia Chrysler Jeep Inc.,
Fox Hills Chrysler Jeep in Plymouth and Village Chrysler
Jeep in Royal Oak could reopen more than five years
after a Chrysler Group LLC decision to close them. The
dealerships gained a key
victory when the 6th U.S. Circuit Court of Appeals found
that a federal law creating
the arbitration process
where those dealers prevailed trumps state laws
that would allow nearby
competitors to legally challenge their return.
The charity preview of
the North American International Auto Show at Cobo
Center in Detroit raised $5.3
million, outpacing the 2014
event by about $800,000 and
bringing the total raised for
local children’s charities to
more than $100 million
since the show’s 1976
launch, the Detroit Auto
Dealers Association said.
The Meridian Winter
Blast festival at Campus
Martius Park in Detroit
Feb. 6-8 will feature a new
300-foot zip line. The 11th
annual event is presented
by Quicken Loans Inc.
Former Florida Gov.
Jeb Bush , who has said he
is contemplating a presidential bid, is set to speak
at a Detroit Economic Club
meeting Feb. 4 at Cobo Center, AP reported.
Response times to 911
calls in Detroit are expected to improve with the
academy graduation last
week of 31 new emergency
medical technicians. They
will be assigned to ambulances, AP reported.
A derailment of the Detroit People Mover shut
down the 2.9-mile downtown
elevated rail service Thursday, and the Detroit Transportation Corp. offered free
rides on Friday. A car
jumped the rail and hit the
Times Square station platform.
Michigan union membership was 14.5 percent last
year, a drop of 1.8 percentage points from 2013, the
U.S. Labor Department reported. Last year was the first
full year in which employees could opt out of union
fees under the state’s rightto-work law.
The Michigan appeals
court says emergency managers running school districts have the power to fill
vacancies on a school
board, AP reported. The
court ruled in the case of
Jonathan Kinloch, appointed
to the Detroit school board
in 2013 by Emergency Manager Roy Roberts but not acknowledged by other board
members because the
board had chosen its own
member.
Michigan’s seasonally
adjusted unemployment
rate continued its rapid decline in December, falling
0.4 percentage points to 6.3
percent and its lowest level
in 12 years. Last month’s
rate compares with 6.7 percent in November, 7.1 percent in October and 8.3 percent in December 2013, said
the Department of Technology,
Management & Budget.
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