20091207-NEWS--0001-NAT-CCI-CD_-- 12/4/20095:52PMPage1 ©Entire contentscopyright2009byCrainCommunicationsInc.Allrightsreserved president of bilitation taxcredits. Business Taxhistoricreha- projects touseMichigan erick Towerandtwoother which wouldallowtheBrod- Jason Allen passed Bill944,sponsoredby Circus Park. ward AvenuenearGrand tail spaceplannedonWood- square feetofofficeandre- ment developmentand20,000 ate, aidsthe127-unitapart- by thestateHouseandSen- which havebeenapproved tion Inc troit-based Beal isalsopresidentofDe- tity developingtheproject. tion PartnersL.P. three months,said Detroit couldgetstartedin David BroderickTowerin million redevelopmentofthe Legislature meansthe$55 habilitation pendinginthe Page 19 hospice, for reworked rules being payment Medicare of Campbell-Ewald,Page29 Bill Ludwigonthefuture Page 6 Defense workstayssteady, why somearetradingdown A CEOdrivingabeater?See sheds teamstostayhealthy Palace Sportsslimsdown, Broderick, otherprojects Tax creditinworksfor

NEWSPAPER www.crainsdetroit.com Vol.25,No.47 Health CareExtra This JustIn Inside Page 3 ■ The otherprojectsare: The Senatelastweek The taxcredit,versionsof A taxcreditforhistoricre- The $145million . See ThisJustIn,Page2 , R-TraverseCity, J.C. BealConstruc- Motown Construc- , thelegalen- Fred Beal A. Alfred , Michigan the Maud Lyon,executivedirectorof economic development,”said neighborhoods. spurring developmentintheir on Detroit’seastsideareboth Pottery economic development. first artsorganizationtoconsider the area.” lyst foreconomicdevelopmentin the museuminApril. Smith Jr.,61,whobecameCEOof Michigan,” saidAudley“Kano” for DetroitbutSoutheast strong touristattractionnotonly District.” the arearenamed“theMotown Boulevard neighborhood,toget businesses initsWestGrand from otheranchoremployersand 25 years. grand celebrationbutforitsnext making plansnotonlyforanother its 25thanniversaryin2010,is over againnextfall. Museum anniversary, the bration of glitzy galainNovembercele- Department ofTransportation there. for astatematch. funds becauseitlacks$84million $475 millioninfederalhighway gan mayhavetowalkawayfrom State may notbeable tomatch federal money Museum hopestobuildonanniversaryexcitement Motown momentum Highway fundsinjeopardy “The artsdefinitelyareatoolof “They bringpeopletoareas The museumwouldn’tbethe “We couldcertainlybeacata- It hopesoneday,withsupport The museum,whichcelebrates After hostingastar-studded, Projections fromthe And thelossespileupfrom LANSING –Nextyear,Michi- B “We stronglybelieveit’sa Cultural AllianceofSoutheastern Y CRAIN’S DETROITBUSINESS CAPITOL CORRESPONDENT S and the HERRI is gettingreadytodoitall . B Y Motown Records’ A MY B Heidelberg Project EGIN Motown Historical L ANE W ELCH Michigan Pewabic show 50th Grand BoulevardinDetroitastrongtouristattractionforSoutheastMichigan. CEO Audley“Kano”SmithJr.callstheMotownHistoricalMuseumonWest DECEMBER 7–13,2009 additional spacethatwraps build atleast29,000squarefeet of future, whatwe’dliketodo is omy’s collapse,Smithsaid. Motown Records,beforetheecon- Hitsville USA,thebirthplaceof looking toexpandaround ical Museumhadbeen she said. velop aneighborhood, work together”tode- Lyon said. and serviceindustries, the ments, restaurants, stitutions, apart- its culturalanchorin- that isMidtown,with she said. housing worksbest, es, streetimprovementsand that includesfor-profitbusiness- economic developmentstrategy they wouldn’tgootherwise.” drop to$593millioninthefiscal highway spendingestimatedto with thisyear’s$1.4billioninstate warned offoryears.Andnow, portation officialsandothershave ceive. all thefundsitiseligibletore- Michigan won’tbeabletomatch ing throughfiscal2014because nearly $2.1billioninfederalfund- the stateisindangeroflosing “One day,inthenottoodistant The MotownHistor- “All ofthosethings A greatexampleof The artsasapartoflarger It’s ascenariothatstatetrans- Inn onFerryStreet detroit.com/extra www.crains and LeonardSlatkin, Judd, AnitaBaker LaBelle, Wynonna Nugent, Patti Bill Clinton,Ted musical memoriesof famous, plusthe sound becameworld Records Corp. the classic Read moreonhow W BEXTRA EB Motown Hitsville andMotownStudioA, land onitscampus,consistingof Smith said. around theHitsvillehouse,” founder BerryGordyJr.’s at- my.” much willdependontheecono- expansion planbackup,(but) conversations aboutpickingthe scenarios: howthestatewould for publiccomment,laysouttwo transportation plan,currentlyout this dayiscoming,andit’shere.” tor KirkSteudle.“I’vebeensaying for threeyears,”saidMDOTDirec- cause I’vebeentalkingabout(this) tion willmaterialize. ing alegislativeroadfundingsolu- year thatstartsOct.1,they’rehop- The museumhasfiveparcelsof Even duringMotownRecords NATHAN SKID/CRAIN’SDETROITBUSINESS MDOT’s newdraftofafive-year “I willtellyouIhopeitdoes.Be- said. 300,000 items,Smith collection ofmorethan more ofthemuseum’s parcels” toshowcase tion ontheother building newconstruc- museum. ty lottotheeastof buildings andanemp- two administrative galleries andgiftshop, housing themuseum an attachedbuilding See Motown,Page32 “We’ve begunthe “We’ve talkedabout ruptcies seenthisyear. norm ofmostautomotivebank- customer contracts,buckingthe vamp atleast80percentoftheir used thebankruptcycodetore- tomers, runningontime. bly lines,andthoseoftheircus- in ordertokeeptheirownassem- to givethecompaniesbetterterms guns totheirheads,forcingthem FormTech essentiallyareholding ed, sayingRecticelandHHI- four yearsago. that wasprojectedtwo,threeor current market—notthe to rewritecontractsreflectthe portunity forbankruptbusinesses bankruptcy codeprovidesanop- bility oftheirbusinesses.The profitable andunderminedthevia- L.L.C. America Inc. automotive andindustrialforged- adding FormTechtoitsportfolio of ners L.P. based hedgefund which isownedbyNewYork- lined up, earlier thisfallwithanewowner filed forChapter11bankruptcy cold-formed metalcomponents, Oak-based supplierofhot-and Starting over call moveattacks Some customers in bankruptcy revamp deals Recticel, HHI FormTech IndustriesL.L.C. Both companies, Two localautosuppliershave But somecustomershaveresist- Hephaestus Holdings,orHHI, is ments equatingtomorethan100 375 milesofpavementimprove- delay morethan strategy would 2014. through fiscal $2.4 billionless spending nearly gy thatincludes reduced highwayspendingstrate- all availablefederalrevenue,anda spend moneyifitcoulddrawdown , saythecontractswereun- The reduced CRAIN’S DETROITBUSINESS B See Highwayfunds,Page32 Y Hephaestus HoldingsInc. R See Bankruptcy,Page31 YAN and $2 acopy;$59year B KPS CapitalPart- work, could delaythis State shortfalls Over abarrel: P EENE OETLIST ROJECT Recticel North HHI-FormTech Page 32 , aRoyal ® , 20091207-NEWS--0002-NAT-CCI-CD_-- 12/4/2009 5:53 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS December 7, 2009

tive Components using the third, goal is to complete the liquida- and technology practice. She some leadership coaching and THIS JUST IN an 80,000-square-foot building. tion process as quickly as possi- leads client development efforts consulting work after he retires. The buyer is a doctor who ble. for both practices at the firm’s Guenzel also serves on the ■ From Page 1 bought the buildings as an invest- — Chad Halcom Detroit office. boards of a number of nonprofit ment, the sources said. Ann Kenyon, co-leader of the De- organizations. Taubman Center for Design Education, Southfield-based Signature Asso- troit health practice, also was — Ryan Beene formerly called the Argonaut ciates was the broker on both sides Mount Clemens Medical Center promoted. She has served as a Building. The 11-story building, of the deal, managing director opens facility in Shelby Twp. project architect and project once the home of now-General Mo- Mark Woods said, but he could not manager for health care clients Tax lawyer joins Miller Canfield tor Co.’s design center, was redevel- confirm the sale price or buyer. Mount Clemens Regional Medical such as Henry Ford Health System Gregory Nowak, partner and for- oped as an expansion of the College — Daniel Duggan Center has opened a 60,000-square- and William Beaumont Hospitals. mer leader of the state and local for Creative Studies. The building foot medical center in northern — Daniel Duggan tax consulting practice at Pricewa- was completed in September. Macomb County. terhouseCoopers L.L.P., moved last Judge OKs liquidation plan The Shelby Creek Medical Center, Rehabilitation of the Federal Washtenaw’s Guenzel to retire week to Detroit-based Miller, Can- Building in downtown Grand for Noble International at 8180 26 Mile Road in Shelby field, Paddock and Stone P.L.C. as Rapids, to house Ferris State Uni- Township, includes offices for Washtenaw County Administra- senior counsel in the law firm’s versity’s Kendall College of Art and A federal judge last week ap- family practice physicians, or- tor Bob Guenzel plans to retire this business litigation and trial Design. proved a liquidation plan for thopedic surgeons, a specialist in spring after 37 years at the coun- group. The bill would retain a $3 mil- Troy-based automotive supplier obstetrics and gynecology, a ty. The board of commissioners Nowak is chairman of the De- lion annual cap on the amount of Noble International Ltd., creating a weight loss center and a medical will begin its search for a replace- troit Regional Chamber Tax Com- tax credits a project can claim in trust that will sell its remaining spa. ment administrator this week. mittee and chairman-elect of the one year. A similar House-passed assets to pay its creditors. It also offers a clinic for physi- The announcement follows the Michigan Association of Certified bill, 5479, sponsored by Rep. Bert U.S. Bankruptcy Court Judge cal and occupational therapy, Wednesday passage of the 2010- Public Accountants. Johnson, D-Detroit, would also aid Marci McIvor entered an order con- and a range of diagnostic ser- 2011 county budget by the board. He returns to Miller Canfield the three projects but allow for a firming the liquidation plan, vices. Guenzel has been county ad- after 16 years at Pricewater- $4.6 million tax credit for the Arg- which establishes a Noble Liqui- Mount Clemens Regional is a ministrator for the past 15 years, houseCoopers, where he had onaut redevelopment. dating Trust with company board 288-bed hospital affiliated with after a 22-year run as corporation been a partner since 1999. — Daniel Duggan, Amy Lane Chairman Richard McCracken and eight-hospital McLaren Health Care counsel. He plans to teach, do — Chad Halcom founding partner Earle Erman of Corp. in Flint. Southfield-based Erman Teicher — Jay Greene Lear sells 3 buildings for $2M Miller Zucker & Freedman P.C. as its CORRECTIONS A three-building portfolio, in- trustees. The Nov. 30 Best Lawyers Focus section included three errors: cluding 450,000 square feet in The order also transfers the SmithGroup names new The specialty listed for attorney Thomas Hardy, Hardy Lewis & Page Dearborn, was sold for $2 million company’s remaining assets to principals in Detroit office P.C., Birmingham, should have been alternative dispute resolution. Tuesday, representing a sale the trust for distribution to credi- Howard Hertz, Hertz Schram P.C., Bloomfield Hills, should not have price of almost $4 per square foot, tors, dissolves the company and Detroit-based architecture been listed as a co-organizer of the Ann Arbor Film Festival in the sto- real estate sources said. will close the court case by early firm SmithGroup Inc. has promoted ry on Page 16. The buildings at 5200, 5250 and 2010. A court hearing on objec- two people in the Detroit office to A story on Page 24 should have said Harrington Dragich P.L.L.C. re- 5300 Auto Club Drive were sold tions is scheduled Dec. 18. principal. mains primary debtor counsel in Noble International Ltd.’s bankruptcy. by Lear Corp., which recently exit- James Harrington, partner at Kathleen Hudson-Beitz is busi- Noble co-counsel Judy O’Neill returned to Foley & Lardner L.L.P. after a ed bankruptcy. Two buildings are Grosse Pointe Woods-based Har- ness development director of the brief stay at Harrington, but the Noble work is now divided between vacant, with International Automo- rington Dragich P.L.L.C., said the firm’s health practice and science the two firms. Our clients don’t NEED Life Insurance. TheyWANT it.

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251 PIERCE, BIRMINGHAM, MI | 248.731.9500 | WWW.SCHECHTERWEALTH.COM *Securities and **Investment Advisory Services offered through NFP Securities, Inc. a Broker/Dealer, Member FINRA/SIPC and a Federally Registered Investment Advisor. Schechter Wealth Strategies is an affiliate of NFP Securities, Inc. and a subsidiary of National Financial Partners Corp., the parent company of NFP Securities, Inc. | NFP Securities, Inc., National Financial Partners, Corp., Schechter Wealth Strategies, and Registered Persons in their capacity as Registered Individuals with NFPSI do not provide legal or tax advice. Clients must consult with their own legal and tax advisors. NFP Securities, Inc., National Financial Partners, Corp., and Schechter Wealth Strategies are not Certified Public Accounting (CPA) firms. | Registered Persons may be properly licensed as Certified Public Accountants (CPAs) to practice such activities outside of their capacity as Registered Persons. 20091207-NEWS--0003-NAT-CCI-CD_-- 12/4/2009 5:54 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 3 Palace Sports trims to stay healthy Focus: Meetings Economy forces sale of minor league teams

BY BILL SHEA in October sold the money-losing Hills, DTE Energy Music Theatre and CRAIN’S DETROIT BUSINESS Detroit Shock women’s basketball the management deal to run Mead- team, and talks have been under ow Brook Music Festival. The freewheeling days of experi- way for six “With the economy being what menting with minor league sports months to sell it is, it’s the time to make sure teams at the Palace of Auburn IN THE PALACE the Asheville your core business is OK and not Hills — to entertain fans and make How big? A look Tourists, the propping up (money-losing a buck — are over. at Palace Sports North Carolina- teams),” Wilson said. “We have to The crush of the local and na- teams, venues based Class-A put all of our effort into the mother tional economic situation, along and more, Colorado Rockies ship.” Event planners seek military, with the riskiness of such teams Page 33 affiliate, within So don’t look for PS&E to experi- even in the best of times, has the next year, ment with other teams anytime other new business, Page 11 forced Palace Sports & Entertain- PS&E President Tom Wilson said. soon. ment into a pattern of shedding big While the Tourists are prof- “I don’t see us adding anything, and small pro sports teams locally itable, they were “never part of at least not in the near future,” Wil- and elsewhere in an effort to pro- core business,” he said, and Palace son said. “This has proven many COURTESY OF THE DETROIT PISTONS Company index tect the company’s core assets. Sports’ business strategy is to con- times that this is not a great market Palace Sports & Entertainment says The Auburn Hills-based team centrate on its primary assets: the it’s time to focus on core assets, such These organizations appear in this week’s Crain’s and venue management company Detroit Pistons, the Palace of Auburn See Palace Sports, Page 33 as the Detroit Pistons. Detroit Business: Affinia Group ...... 3 American Society of Employers ...... 16 Arbor Hospice ...... 20 Archetype Joint ...... 6 Autoextremist.com ...... 29 Rotor maker Butzel Long...... 31 Campbell-Ewald ...... 29 My other car is … Caraco Pharmaceutical Laboratories ...... 21 CB Richard Ellis ...... 21 claims rivals Constellation Energy ...... 4 Budget-conscious execs trade down from luxury brands Consumers Energy ...... 4 Defense Contract Coordination Center ...... 6 Detroit Auto Dealers Association ...... 13 BY DUSTIN WALSH lack quality Detroit Edison ...... 4 SPECIAL TO CRAIN’S DETROIT BUSINESS Detroit Marriott Renaissance Center ...... 13 David Wassmann — president, Affinia seeks new Detroit Metro Convention and Visitors Bureau . . . . 11 CEO and co-founder of Bloomfield Detroit Public Schools ...... 16 Hills-based NeoSynergy Inc. — is a federal standards Detroit Wayne County Health Authority ...... 32 Porsche driver. His father was a EEI Global ...... 14 Freitag Event Design ...... 12 longtime Porsche owner. His BY RYAN BEENE General Motors Co...... 29 brother drives a Porsche. The red CRAIN’S DETROIT BUSINESS and gold emblem might as well be Glacial Energy Michigan ...... 4 the Wassmann family crest. Pushing for new federal stan- Great Lakes Renewable Energy Association ...... 12 Wassmann himself has owned dards regulating replacement Henry Ford Hospital ...... 23 six of them, from a 1968 911T to a brake rotors, Affinia Group Inc. is HHI-FormTech ...... 1 $75,000 2008 Porsche Cayenne S. continuing its fight against Hospice of Michigan ...... 19 When the economic crisis hit in what it says are dangerous re- In-House Hospice ...... 19 2008, his automotive software and placement parts sold at some LaFontaine Automotive Group ...... 3 services company — generating auto parts stores. Michigan Department of Transportation ...... 1 $2 million in Terry McKormack, CEO of Michigan Economic Development ...... 14 revenue in Affinia, the Ann Arbor-based Michigan Hospice and Palliative Care ...... 20 WEB EXTRA 2008 — lost its supplier of aftermarket parts, Motown Historical Museum ...... 1 DUSTIN WALSH/CRAIN’S DETROIT BUSINESS Michigan Infrastructure and Transportation Assn. . 32 Speaking of cars: backing, he filed a petition last week with You wouldn’t know it, judging by his current ride — a rusty hand-me-down Ford Motown Records ...... 1 AutoWeek looks at said. The pickup — but David Wassmann of NeoSynergy Inc. is used to driving a Porsche. the National Highway Traffic Safe- new models for startup, oper- ty Administration seeking a new NeoSynergy ...... 3 2010, www.crains ating in the His brother gave him his 1993 has dramatically shifted, and my government standard for brake North American International Auto Show ...... 13 detroit.com/cars red, began to Ford F-150 — for free. husband and I are committed to rotor performance. The pro- Palace Sports & Entertainment ...... 3 sink further Wassmann is among a growing becoming debt free, building our posed rules would govern both Plato’s Closet ...... 26 toward insolvency, generating less number of luxury buyers down- financial freedom.” aftermarket and original-equip- Quality of Life Center ...... 22 than $1 million in revenue this grading their expensive rides in Incentivized leasing and financ- ment brake rotors. Recticel North America ...... 1 year. the face of economic uncertainty. ing kept payments artificially low An Affinia statement an- Renaissance Venture Capital Fund ...... 4 Shedding most of its 40 staff in the luxury market, said Karl nouncing the NHTSA petition ShawneTV ...... 3 members, the three remaining ex- Schmidt, president of Troy-based said the rotors it wants to keep Sheltering Arms Adult Day Center ...... 22 ecs, including Wassmann, decided Boss in a beater market research company Con- off the shelves of repair shops Special D Events ...... 11 to stay on and spearhead the com- Shawne Duperon, CEO of Novi- sumer Insights Inc. Automakers and auto parts stores are Team Detroit ...... 29 pany’s revival. based ShawneTV L.L.C., a media ser- aren’t able to push down monthly “lighter, thinner and cheaper Technology Ventures ...... 6 Sacrifices had to be made, so vices consulting company with payments as before the “financial than their original-equipment The Health Law Partners ...... 20 Wassmann chose to ax his own one full-time bubble burst.” counterparts.” Vitas Innovative Hospice Care ...... 20 $250,000 salary. and one part- “It’s not about desire or foolish- The rules are needed to com- Walsh College ...... 26 “The company would have been time employee, ness,” he said. “Many of these cus- bat a “serious safety risk” cre- Westin Book Cadillac Detroit ...... 13 bankrupt if I kept my salary,” he recently traded tomers just can’t afford the real ated by the aftermarket rotors said. “It would have been morally in her more monthly payment required to fi- sold by some of Affinia’s com- impossible for me to keep my big than $40,000 2003 nance these expensive models.” petitors, “whose performance Department index paycheck while the company suf- Jaguar S-Type Ryan LaFontaine, general man- and durability is far below that BANKRUPTCIES ...... 6 fered.” for a 2001 Ford ager of Highland Township.-based of the original-equipment ro- BUSINESS DIARY ...... 28 Living off savings, Wassmann, a Taurus, which LaFontaine Automotive Group L.L.C., tors that they purport to re- former auto ad agency executive at she bought for said people are steering clear of place,” McKormack wrote in CALENDAR ...... 28 BBDO Detroit and J. Walter Thompson $4,100 cash. leases, opting to buy a vehicle and the petition. CAPITOL BRIEFINGS...... 4 Duperon and serial entrepreneur, couldn’t “I have al- often cutting extras to lower their The appeal to the nation’s ve- CAREERWORKS ...... 26 afford to keep his lavish Porsche ways driven gorgeous, expensive payment. hicle safety regulators follows a CLASSIFIED ADS ...... 28 crossover, so he found a Florida cars,” Duperon said. “My appreci- KEITH CRAIN...... 8 resident to assume his lease. ation for money, in this economy, See Trading down, Page 30 See Rotor, Page 31 LETTERS...... 8 OPINION ...... 8 What’s the essence of cool? Keep the discussion going! Stem cell research OTHER VOICES ...... 9 THIS WEEK @ Hear what our Cool Places Join the health care community, Dr. Eva Feldman speaks Tuesday PEOPLE ...... 27 keynote speaker had to say, www.crainsdetroit.com to the Detroit Economic Club RUMBLINGS ...... 34 WWW.CRAINSDETROIT.COM www.crainsdetroit.com/multimedia. /healthcarecommunity. about its impact on our economy. WEEK ON THE WEB ...... 34 20091207-NEWS--0004-NAT-CCI-CD_-- 12/4/2009 5:31 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 7, 2009

GRATITUDE Bill in works to raise We at Angels’ Place thank you, the many corporations, foundations and individuals, who helped us reach our $6 million dollar endowment goal! electric-choice limits LANSING – Business- rollment levels reflect ture acts, those savings opportuni- es in Detroit Edison Co.’s current market prices ties are going to go away, and go territory that want to Capitol that make conditions fa- away for the foreseeable future,” switch to alternate-elec- Briefings vorable for alternate said David Fein, Constellation’s tricity suppliers may suppliers. vice president of energy policy in soon find themselves un- “These short-term the Midwest. able to do so. market conditions Glacial Energy Michigan, which en- Edison is nearing the shouldn’t be used as an tered the state earlier this year, has 10 percent limit in a state excuse to tinker with signed up businesses in Detroit Edi- cap that governs the public policy that’s de- son’s territory and is working with amount of its customer signed to safeguard others to get contracts signed before load that can go to alter- Michigan’s energy fu- the Edison cap is reached, said Ter- Providing homes and services for persons nate suppliers, as of Fri- ture for the long run,” ry Hart, senior vice president. Amy Lane with developmental disabilities since 1992. day reaching 8.6 percent. said Jeff Holyfield, Con- “There’s plenty of need for alter- Consumers Energy Co. reached its sumers Energy director of news nate suppliers in the state of 10 percent limit in August and last and information. Michigan,” he said. 25240 Lahser Rd, Ste. 2, Southfield, MI 48033 week had 42 customers on a wait- The utilities say the cap gives www.angelsplace.com ing list to participate in the elec- them certainty of customer base tric-choice program. that they need for future invest- Hearing planned on Detroit bonds The full enrollments have ments and protects customers on Legislation that could pave the choice advocates calling for full utility service from price way for Detroit to sell up to change and legislation brewing in spikes that could otherwise occur $250 million in bonds that would Lansing to accomplish that. if large numbers of customers go toward the city’s deficit-elimi- Sen. Cameron Brown, R-Fawn moved to other suppliers. nation plan is scheduled for its River Township, is drafting a bill “If you don’t have a cap, then first airing this week. that would likely raise the cap that you have all of your customers House Bill 5626, sponsored by was established under 2008 energy playing the market game and go- House Appropriations Committee laws. ing to alternative suppliers when Chairman George Cushingberry, Matt Sweeney, Brown’s chief of prices are down and returning to D-Detroit, is slated for a Wednes- staff, said that while Brown oppos- us when prices are up,” said Scott day hearing in Cushingberry’s es the cap and would prefer to see Simons, senior specialist, external committee. it completely eliminated, an in- relations, at Detroit Edison. The bill would strike a $125 mil- . crease may be more feasible. “Essentially, the cap guarantees lion cap in state law that limits the Go Green Sweeney did not have a figure a manageable, competitive electric amount of fiscal stabilization for a new level, but said it would market that provides certainty to bonds the city can sell. . likely be “significantly higher” all market participants, as well as Similar legislation, Senate Bill Green than the current limit. the financial community.” 996, sponsored by Tupac Hunter, “How quickly now that both Sweeney, however, said the D-Detroit, has been introduced in Learn how you can reduce building utilities have reached their cap, is need for new plants that had been the Senate. operating costs, obtain financing evidence that the 10 percent was forecast and considered when law- for green retrofits and improve much, much too low,” Sweeney makers approved the legislation, Comings & goings your workplace at our said. “What we’re doing is block- is diminished. ing out a large segment of the busi- Constellation Energy, which ac- Sharon Parks, president and CEO Project Green Institute ness community that want to keep cording to a state report as of 2008 of the Michigan League for Human Ser- in Ann Arbor or online at JSVig.com. their costs down.” served the largest number of cus- vices, last week announced that she He said the bill could be intro- tomers in both Edison and Con- plans to retire in fall 2010. Parks has duced yet this year or in early Jan- sumers territories, is among those worked at the Lansing-based non- Contact Joshua Brugeman to uary. advocating legislative action. profit since 1977. The league plans schedule a consultation. But Detroit Edison and Con- “There are significant savings to launch a national search for a [email protected] 734.864.0364 sumers Energy are ready to op- that are available for customers to new executive in the spring. www.jsvig.com pose any attempts to alter the cap have a choice in their supplier Amy Lane: (517) 371-5355, and say the customer choice en- right now, and unless the Legisla- [email protected]

- Renaissance VC partners with Calif. firm

BY TOM HENDERSON vestment in Indiana,” said Schwab. state startups — something perhaps CRAIN’S DETROIT BUSINESS “We want to be the first national approaching $200 million for the firm people in Michigan think of sale of Ann Arbor-based HealthMe- 5AM Ventures, a large venture- when they are looking to do a deal. dia Inc. in October 2008 and the sale capital firm in Silicon Valley, is “Chris is connected in Michi- last month for $300 million of Ann expected to announce today that gan,” said Schwab, referring to Arbor-based HandyLab Inc. — will the Renaissance Venture Capital Chris Rizik, president and CEO of help recruit national investors. Fund is a limited partner in its Renaissance Venture. “It makes “We think the best way to do this newest fund of $200 million, which more sense for him to help us con- is (to) bring in one other national closed at the end of November. nect to the right people than us firm to syndicate deals with the local The Detroit fund invested showing up cold and trying to investment community,” he said. $4 million with the caveat that build relationships.” Schwab said some of his portfolio 5AM, which focuses on drug dis- Schwab said he already has companies in California have come covery and medical devices, con- looked at two possible deals in to depend on Michigan drug-related duct due diligence on investments Michigan and is in active due dili- companies for a variety of services in Michigan-based companies. gence on a University of Michigan they would rather outsource than Andew Schwab, managing di- spinoff. do in-house. Many of the companies rector of 5AM, which he co-found- Schwab said his firm has looked here began after Pfizer Inc. an- ed in 2002 and which has $435 mil- at possible investments here before nounced in 2007 that it was closing lion under management in three and was close to an investment in its large Ann Arbor operations. funds, wasn’t just looking for an Plymouth Township-based Lycera This is the fourth investment for investor in its newest fund but for Corp., an early stage drug manufac- the $40 million fund of funds, a conduit into Michigan deals. turer, but was beat out on that deal. which was created by Detroit Re- “Ohio, Indiana and Michigan Lycera raised $36 million in a VC naissance in 2007. have been important places in life round that closed in April. Tom Henderson: (313) 446-0337, sciences, and we’ve made one in- Schwab said recent big exits by [email protected] DBpageAD.qxd 11/23/2009 3:23 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS December 7, 2009 Defense contracts expected to match last fiscal year BANKRUPTCIES

BY CHAD HALCOM departure, and a decline of $115 mil- and we have a heavy need coming tracts over the next six months. The following businesses filed CRAIN’S DETROIT BUSINESS lion, about 15 percent, in contracts for reset and updating the current “There are opportunities on the for Chapter 7 or 11 protection for Michigan companies, according fleet,” he said. “If the original time- horizon that we’ve already identi- in U.S. Bankruptcy Court in De- With aggressive networking, a to new data from the state Procure- line holds for drawdown from Iraq, fied in this environment,” she said. troit Nov. 27-Dec. 3. Under Chapter 11, a company files for change of focus and improved par- ment Technical Assistance Centers. that will mean in 12-14 months a “I think things will step up for the reorganization. Chapter 7 in- ticipation, Michigan could finish The 11 nonprofit assistance cen- large amount of equipment coming companies that are equipped to pro- volves total liquidation. the coming fiscal year about even ters, co-funded by MEDC and the back, and much of it needs to be re- vide for those exact kinds of needs.” with the last one in terms of total federal Defense Logistics Agency, re- set (for redeployment or future Braden said he understands mil- Calicor Horse Corner Inc., 19435 defense contract awards to local port $645.8 million in total contract use).” itary spending on ground vehicles Sumpter Road, Belleville, vol- untary Chapter 11. Assets: businesses. dollars awarded to companies Braden predicts the state will is off from a peak period in fiscal $36,512; liabilities: $128,643. That’s the pro- statewide for the fiscal year ending change focus from contracts relat- 2008 as priorities shift toward per- jection of James Sept. 30. That includes $265.5 mil- ed to major production on new ve- sonnel needs. The Tacom Contract- Castle Landscape Inc., 46585 Braden, recently lion to small and midsize compa- hicle systems to refits, repairs and ing Center projects total contract Grand River Ave., Novi, volun- retired Marine nies in Southeast Michigan, upgrades of existing equipment in values in fiscal 2010 to fall between tary Chapter 7. Assets and lia- bilities not available. Corps colonel through the four local centers that helping local companies break $15 billion and $21 billion, off from and newly ap- serve this region. into the defense industry. $25.05 billion in fiscal 2009. Glenwood Trace Limited Divi- pointed director The total puts 2009 well behind “I think overall that focus is But Tacom also has called for the dend Housing Association, 950 of the state De- the $760.7 million awarded in the good. There’s opportunity in it for number of contracts to be fairly Corporate Office Drive, Milford, fense Contract Co- previous fiscal year, but still well Southeast Michigan companies in constant, just at lower dollar voluntary Chapter 11. Assets and liabilities not available. ordination Center, ahead of the $315.5 million awarded those areas. There’s opportunity amounts. Some directors of region- Braden an agency of the in fiscal 2007 when Bradley “Mark” for us,” said Nancy Loerch, execu- al PTAC centers also said total con- Lesley Inc., 42939 W. Seven Mile Michigan Economic Development Corp. Lott became the first director of the tive vice president of Orion Town- tracts reported from Michigan com- Road, Northville, voluntary “If the pie really shrinks, I still state defense center. Lott left June ship-based Archetype Joint L.L.C. and panies were constant or improved Chapter 7. Assets and liabilities think proportionally that Michi- 30, taking four employees with him president of the Women In Defense this year, while dollar values fell. not available. gan can get a larger piece of that to help expand St. Clair-based True Michigan chapter. “Things are The Macomb Regional PTAC LRT Investment Properties pie,” he said. “Few other states North Logistics L.L.C. moving in that direction, and it’s center in Warren, traditionally the L.L.C., 2 Corporate Drive, South- have what we do in manufacturing Braden has grown the agency good to stay on top of that.” largest center in Michigan con- field, voluntary Chapter 7. As- capability, (but) it remains to be from seven to 11 employees, and is Loerch said her company’s engi- tract values, fell from nearly sets and liabilities not avail- seen in real numbers whether that working on recruitment for the neering work in joint and fasten- $300 million in 2008 contract val- able. means we get a similar amount or full 17 staff positions allotted in the ing systems includes making sys- ues to $134.3 million in fiscal 2009. T&T Investment Properties a slight decline next year.” state’s current budget. tems workable for mechanics in Director Beth Cryderman Moss L.L.C., 2 Corporate Drive, South- Braden, 52, started in October as He expects to assign some new repair and refits, and will benefit attributed much of that decline to field, voluntary Chapter 7. As- director of the center, after retir- employees to the Detroit Arsenal in from a greater focus on contract a wind-down in awards related to sets and liabilities not avail- ing from the Marine Corps as pro- Warren, and last month he also pre- development in that field. the mine resistant ambush pro- able. ject manager of the robotics sys- sented a new strategy for the center Also expecting to benefit is Con- tected vehicle and the related mine Tri County Monuments Inc., tems joint project office at the U.S. to MEDC’s executive board, where stance Blair, president of Warren- resistant ambush-protected all-ter- 30430 Barton St., Garden City, Army Tacom Life Cycle Management he intends to focus on “reset, recapi- based Technology Ventures Inc., rain vehicle during fiscal 2009, voluntary Chapter 7. Assets and Command in Warren. talization and modernization” of which makes alternators and other with fewer major vehicle projects liabilities not available. He faces several challenges in the current military equipment. vehicle parts as well as specialized in production by year’s end. new post, such as re-staffing an of- “After the buildup and surge in kits for repairs. Blair said repairs Chad Halcom: (313) 446-6796, — Compiled by Gabe Nelson fice reduced by his predecessor’s Iraq, the focus in spending changed, and refits could lead to new con- [email protected]

Improving cost, quality, and access holds promise for consumers and cautious optimism, at best, for those responsible for delivering care. With the possibility of health care reform, Hall Render will continue providing experience, insight, and guidance. No matter what form the industry takes, if it’s health care, we will be there.

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Page 8 CRAIN’S DETROIT BUSINESS December 7, 2009 OPINION Problems mount, yet our leaders fail to lead

he inability of the governor and legislators to act is about to cost the state once again. T As Amy Lane reports on Page 1, because the parties have not been able to come together on a solution for road funding, the state stands to lose $475 million in federal match money. The cost to the state to get the money: $84 million. Through fiscal 2014, the state could lose more than $2 bil- lion in federal matching funds. Here’s the irony: A task force on transportation funding co-chaired by busi- ness and labor in November 2008 delivered a report that ulti- mately resulted in a package of bills that would increase state funding for roads and other transportation. The bills, which would have provided for higher fuel taxes and fees, were designed to generate nearly $2 billion a year and offset declines in revenue due to less driving, more fuel-effi- cient vehicles and other factors. But the bills never gained traction — some were never in- troduced — and the Legislature continues to dither. As we editorialized in June, no one likes higher taxes. But there’s a difference between spending and investment, and it makes sense for the state to find money when it is for an im- portant purpose and can be leveraged. LETTERS In the end, though, transportation funding is only one im- portant issue with no resolution found. Here are two others: Prison reform: Maintaining prisons consumes about 20 per- Local governments not to blame cent of the state’s general fund budget. Various commonsense Editor: stitutions, not local government. reforms have been proposed, including updated sentencing and Crain’s Detroit Business Mary Kramer’s Nov. 16 column, Mark Jahnke welcomes letters to the editor. parole guidelines and competitive bidding for services. “Where’s the middle?” was great Village of Franklin Repeal of the Michigan Business Tax surcharge: The wildly All letters will be considered for until the last three paragraphs. publication, provided they are unpopular and uncompetitive tax has been used as a hammer Linking student achievement signed and do not defame Offer city’s vacant land with teacher performance should to win support for a variety of other taxes and initiatives, none individuals or organizations. to entrepreneurs of which have happened either. be done. Reducing government Letters may be edited for length and lowering taxes must be done. and clarity. The big one, though, is the lack of structural budget re- However, her reasoning that Editor: Write: Editor, Crain’s Detroit form, of which transportation funding, prison reform and the Michigan government is weighted As Keith Crain wrote in his Nov. Business, 1155 Gratiot Ave., 16 column, “It might be time to ad- surcharge are only a part. down by layers designed for anoth- Detroit, MI 48207-2997. In February, we expressed skepticism about the governor’s er century is inconsistent. How big dress vacant land,” it is definitely E-mail: [email protected] time to do something about the va- appointment of Lt. Gov. John Cherry to “lead a comprehensive is too big? Does she want all of our cities and school districts to end cant land in Detroit. How about effort to dramatically change the shape and size of state gov- up as big as Detroit or Pontiac? compared to larger neighbors. the city passing its version of the ernment.” The jury is still out on this effort. Gov. Jennifer That has not worked out well. Oth- Why? Simple. Because smaller Homestead Act of 1862? Granholm gave credit to Cherry when she announced plans to er jurisdictions, notably Washing- units of government have more That law allowed a citizen to merge the Michigan departments of information technology ton, D.C., schools, have ended up accountability. claim 160 acres of land in the west, Michigan has a lot of structural live on it, improve it and, after five and management and budget. the same way. Regarding local government, issues due to declining population years, the homesteader would own In June, we suggested that Labor Day be a deadline for the does she realize that many, if not and union-controlled representa- it. Let’s simply give vacant commer- governor and the Legislature to develop a bold, bipartisan most, of the villages she refers to tives. cial property and/or land in Detroit plan that would cut spending and transform the state’s tax get along with significant volun- Look at our hospitals and roads. to anyone who will develop it with- structure. But, alas: No bold, no bipartisan, no real plan. teer time from the governing We have a full-time bicameral Leg- in a number of months (not years). islature. Our largest state univer- The law would have to be writ- This governor and this Legislature have one year left in boards and commissions? Many people contribute their sities raised tuition costs more ten carefully to eliminate specula- which to fulfill their responsibility to be good stewards of our time and efforts to keep costs than 5 percent during this econom- tors. However, if done correctly, resources and good leaders for our future. It’s our devout hope down and manage these small ic downturn, sending a terrible that they take the opportunity. governments very efficiently, message. Let’s start with those in- See Letters, Page 9

KEITH CRAIN: They all will need to pull together for Detroit I hope that among the workshop Not only does the city Just take a look at other sailor. Live for today and let some- nicipality in Southeast Michigan classes for the newly elected mem- have to cut costs to ap- municipal governments one else worry about tomorrow. to isolate itself from the financial bers of the Detroit City Council will proach the amount of around the country; Unfortunately, the chicken has difficulties of Detroit. Those finan- be one class on crisis management. revenue that it is receiv- and although it gives come home to roost. It’s going to cial challenges will impact every Every time the mayor looks un- ing these days, but it our mayor little solace, take a very tough and strict head city within the region. der a rock, he discovers even more somehow has to figure he is not alone. of office to cope with these finan- It’s important for all those cities nasty disclosures. out how to pay for the And if our governor cial crises. to realize that they can’t run from The city is in dire financial deficit that has been thinks that her finan- It would appear that Detroit has the financial woes of Detroit, or for straits and there doesn’t seem to handed over by free- cial crisis is just about elected the guy who knows what that matter the state of Michigan. be any short- term solution. spending predecessors. Michigan, all she has to has to be done and is going to do Everyone is going to have to work The city of Detroit is going to Right now Detroit do is take a look at Cali- his utmost to get it done. I am not together to economize, improve pro- have to learn to hunker down and and just about every fornia or New York sure why anyone after such a suc- ductivity and try to share costs to ride out this horrible storm for other state and local government state, just to name a couple. cessful career would have wanted lower overhead without denigrating quite some time before there is in the country are looking to It would appear that almost to be mayor, but Detroit is lucky to service to any great extent. anything that appears to be Washington to help bail them out. everyone in local government was have Dave Bing. We will all hang together or smooth sailing. Detroit certainly isn’t alone. living like the proverbial drunken It will be impossible for any mu- we’ll all hang separately. 20091207-NEWS--0009-NAT-CCI-CD_-- 12/4/2009 10:57 AM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: It takes more than money to be a leader

There was a time when entire industries work. Beyond investing in infrastruc- between IBM, the university and what’s broken and settling for the Detroit was a beacon for Consider the impact of ture, we need a workforce that can the state of Michigan, helps keep status quo is not enough. They un- American innovation. smart electrical grids, create, operate and improve these our local talent at home by provid- derstand that government, indus- Here, an entire industry which rely on digital sen- 21st century systems. This means ing unique skills training and ca- try and citizens must work togeth- was born that revolution- sors and analytics to help placing greater emphasis on math reer opportunities for MSU stu- er on fostering an environment ized the way people lived utilities manage supply. and science skills in primary edu- dents and state residents. that promotes innovation and and worked. Building intelligence into cation and encouraging teenagers This summer, I had the pleasure compels us to do things better, if Fast forward to today, the grid not only enables to pursue courses and careers in of meeting some of the center’s we are to prosper in a global econo- and Detroit finds itself at customers to better man- these areas. first wave of new hires and was my. the center of one of the age their energy consump- IBM’s new global delivery cen- not only impressed by their busi- As stimulus dollars are commit- most severe economic re- Bill Luse tion, it also makes it easi- ter at Michigan State University ness acumen, but heartened by ted and spent, let’s continue mak- cessions in U.S. history. er to incorporate is one example of how public-pri- their recognition of the important ing smart decisions that prepare These dire times have people renewable energy sources such as vate partnerships can bring to- role they play in building a new us for the future and that will lead across the country and around the wind and solar power. And smart- gether educational opportunities, economy for Michigan. Detroit, the state, and our country world asking the same question: grid technology is vital to the mass job creation and economic devel- Entering one of the most chal- through and beyond these tough Will Detroit survive? adoption of electric vehicles, a pri- opment. lenging economic environments in economic times. Let me answer that question mary target for investment by De- The center, which builds on a our lifetime, this new generation Bill Luse is IBM’s senior execu- with an unequivocal “Yes.” De- troit’s automakers. successful long-term relationship of talent has seen that fixing tive in Detroit. troit will be prepared to thrive when the economy recovers if we invest in the right technology and skills, drive public-private collabo- ration and renew the spirit of inno- NationalCity.com/CashFlow vation that defined our city some hundred years ago. With nearly $82 million in Re- covery Act funding going to the state’s energy program, Michigan has set its sights on leading the na- tion in clean-energy solutions by attracting new investment, devel- oping businesses and creating jobs. But to be a true leader in the area of renewable energies, it will require more than a financial in- vestment. It calls for a fundamen- tal shift in the way processes and Make sure

LETTERS CONTINUED your cash flow ■ From Page 8 this could encourage all kinds of different enterprises to locate in the city and add to the tax base and employment rolls at no real cost. A comparable plan could also work is headed in for residential property. Richard Temkin Michigan District Director Small Business Administration

Burned up by column the right direction. Editor: In Keith Crain’s Nov. 16 column (“It might be time to address va- cant land”), he writes, “And some- how we’ve got to find a way to rid the city of all the abandoned resi- dential buildings. Blow them up, burn them down … .” Didn’t we just get past Devil’s Night? And hasn’t the city fought a valiant effort to do just the oppo- No matter what goals you’ve set for your business, meeting them would be impossible site, namely keeping people from burning down abandoned build- without effective cash flow. At National City, we can help improve yours, by taking a close ings and putting city residents in look at how your business operates, and developing customized cash flow solutions. danger from doing so? And now Crain says, “Burn them down.” With help from our business banking experts, we can help you collect receivables faster, Do we have a problem? Yes. make payments more efficiently, and ensure access to credit when needed. Should we deal with it? Yes. Use eminent domain, seize all the buildings if they truly meet the To learn more about how we can help you improve your cash flow, stop by any National City abandonment criteria and fail to branch, visit NationalCity.com/CashFlow, or call 1-866-874-3675. meet city codes for appearance and safety, and then raze them in an orderly fashion, taking precau- tions that protect innocent citi- zens. Sell off or award the land to neighbors or developers who will then risk capital to develop it for residential, commercial or indus- trial use. He should print a retraction be- cause it’s the responsible thing to National City Bank, Member FDIC do. ©2009 The PNC Financial Services Group, Inc. Credit products are subject to an approved credit application. Dennis Thrasher Troy 20091207-NEWS--0007-NAT-CCI-CD_-- 12/1/2009 3:27 PM Page 1

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December 7, 2009 CRAIN’S DETROIT BUSINESS Page 11

A CONVERSATION WITH AUTO SHOW OUTLOOK Planners talk comeback — for exhibitors and visitors — amid focus on green tech, Pages 13, 14 Carol Galle, Special D Events Inc. meetings and conventions

Carol Galle, president and CEO of Royal Oak-based Special D Events Inc., plans meetings for corporations and professional groups around the country. She spoke with Crain’s reporter Daniel Duggan about how to make meetings more environmentally friendly. Targeting a need Why should someone go to the trouble of making a meeting “green”? Companies have to walk the talk. If they’re making a Event planners seek military, new-energy clients as auto drops off statement as a company, they can’t just be doing it behind the scenes; they have to communicate BY DANIEL DUGGAN ment recently has been structured to have agencies developing and procuring mili- it to people. With an event, they CRAIN’S DETROIT BUSINESS a sales staff member working full time on tary vehicles and equipment. have a chance to show people military and government events. Another plus: Several companies that what they have been doing. s politicians and corporate leaders Locally hosted events in energy and mil- are manufacturing military vehicles are in push to create a diversified economic itary sectors this fall have been very suc- the Detroit area, as are suppliers looking What are some green things that a A base in metro Detroit, so, too, is the cessful, said Cheryl Ollila, national sales to sell services and parts, said Michael company can do? One thing is to meetings industry. manager with the DM- Gallo, managing direc- select a venue that is along a With automotive-related meetings and CVB. tor for the IDGA’s exhi- public transportation route to conventions not as strong as they once In August, the New bitions division, which promote people using their cars were, local meeting planners and organiza- York-based Institute for Several manufacturers chose Detroit for its less. If you’re doing an event at tions are going after new business sectors Defense and Government 2009 Military Vehicle Cobo, for example, you can use a — such as military and new energy — as Advancement hosted the of military vehicles are Conference. hotel along the People Mover (route). You can encourage the focus for events. Military Vehicle Con- in the area, as are Using Detroit follows carpooling as well. Both of these are rising in priority in ference at Cobo Center the principle that buy- business development for the coming — nearly doubling the ers of services don’t You can talk to catering companies suppliers looking to years, said Chris Baum, vice president of expected attendance have to travel as far as about using food that is locally grown or organic. Another thing is marketing for the Detroit Metro with 2,900 attendees, sell services and parts. sellers, he said. to ask about using pitchers for Convention and Visitors Bureau. she said. “Detroit is the home beverages rather than bottles. NOT JUST With major military vehicle Likewise, the American Wind Energy Associ- of the automotive industry,” Gallo said. production operations based lo- ation held an event in November to focus on “So there are a number of suppliers in the Using electronic communication as AUTO BIZ much as possible will cut down on cally, along with new wind ener- producers of small wind-energy devices, greater Detroit area that are either looking the use of paper. In preparing for Big events: gy companies and General Electric drawing 2,100 people. to be part of military contracts or have the event, they can ask attendees Recent and Co.’s Van Buren Township devel- “When we have groups coming here and great products and services to offer OEMs upcoming if they object to receiving opment focused on green tech- having success, it becomes easier to ap- that are being fabricated.” conventions, nology now under way, the De- information by e-mail. And, if you’re Page 12 proach other groups and sell this as a loca- The region is bidding on a number of using paper, you can try to use troit area is becoming a player tion,” Ollila said. large military conferences being planned recycled paper. in new industries. Major draws to the area for military con- for the next few years, including combat “We’re on the radar screen now,” Baum ferences are the U.S. Army Tacom Life Cycle vehicle and TACOM conferences; the Na- Does this make a meeting more said. “What you’re seeing is a reflection of Management Command and the Tank-Automo- tional Defense Transportation Association con- expensive? In a lot of cases it the market changes.” tive Research, Development and Engineering doesn’t cost anything — and in Internally, the bureau’s sales depart- Center, both in Warren and both acting as See Event planners, Page 12 some it’s cheaper. But there are a lot of levels. Do you want to be light green, medium green or dark green? Are you getting a lot of requests for green meetings? This is a hot topic right now. I came up with a list of 20 tips to make a green meeting and it was the top downloaded item on the Web site (www.specialdevents.com). How did your list come about? I had a client in the pharmaceutical industry who wanted their event to be consistent with the company’s green practices. They asked me if I had a set of procedures. I didn’t, so I crafted one. It goes through a We’re on the radar screen now. meeting and line by line lays out “ practices to be green. What you’re seeing is a reflection of Are there any certifications offered for green meetings? There is a the market changes. group, the Green Meetings Industry ” Council, that is currently working on a certification; but as of right now, there is not one. They are working on a set of standards.

If you know someone interesting in real estate, retail or hospitality Daniel Duggan should interview, call (313) 446-0414 or write NATHAN SKID/CRAIN’S DETROIT BUSINESS dduggan Chris Baum, vice president of marketing for the Detroit Metro Convention and Visitors Bureau, has the job of trying to attract convention @crain.com. business from different sectors, such as defense. In a related move, he helped visiting filmmakers connect with General Purpose Vehicles Inc. in New Haven to film military vehicles for the upcoming feature “Red Dawn.” 20091207-NEWS--0012-NAT-CCI-CD_-- 12/4/2009 11:10 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS December 7, 2009 Focus: Meetings and Conventions Event planners: New sectors sought as auto business drops off ■ From Page 11 WELCOME TO METRO DETROIT ... ference for 2010; the Society of were a lot of things for the delega- Military conferences Wind and energy conferences American Military Engineers confer- tion to do in off-hours as well, tak- ence for 2015; the American Associa- ing advantage of the evening offer- The Michigan Security Network’s The American Wind Energy in July 2011, attracting 2,500 people. tion of Port Authorities for 2012; and ings.” inaugural Market Leadership Association held its Small Wind The Great Lakes Renewable Energy the Army National Guard Logistics Likewise, the energy industry is Conference, held in November, conference in November with 2,100 Association’s wind energy conference Management Seminar for 2011. heating up for conferences, said attracted 190 to 200 people. attendees. will be in Detroit in March, with 1,000 Many of these events would at- Jennifer Alvarado, executive di- The Institute for Defense and The Detroit Electric City conference attendees expected. tract more than 1,000 attendees. rector for the Dimondale-based Government Advancement’s Military is to be held at the end of January, The U.S. Department of Energy’s Other selling points for Detroit Great Lakes Renewable Energy Asso- Vehicle Conference, held in August, with 200 attendees expected. Detroit Engine Efficiency and include the availability of hotels, ciation. attracted 2,900 people. (The IDGA The Institute of Electrical and Emissions Research Conference is is planning to come back to Detroit Electronic Engineers will host the held in Detroit every summer. the nightlife options, such as the The association hosted the in 2010.) Power and Energy Society conference Attendance figures are not available. casinos, and the quality of Detroit Michigan Wind Conference at Metropolitan Airport. Cobo in March, which Alvarado Source: Detroit Metro Convention and Visitors Bureau, Crain’s research “It’s a major city and easy to get said was a big success with 1,500 in and out of,” he said. “There attendees. The event was such a hit, she said, that the association is going to repeat the conference in March 2010. She said the timing is perfect for new-energy conferences, in part because of the state’s law to re- quire electricity suppliers to offer 10 percent of their energy from re- Winter Wonderland newable sources by 2015. As a result, Alvarado said, there is a great interest to pair energy suppliers with the producers of re- The most spectacular jewelry event newable energy. “These events that we’re doing on a regional and state scale are Tapper’s has ever hosted... successful right now,” she said. “We’re able to bring out the atten- dance and develop the information they are looking for. “Attendees want to interact and see what it takes to do these devel- opments. They want to look at their business and do what it takes to drive profits forward.” Independent meeting planners also say they are going after emerging industries. Denny Freitag, president and owner of Detroit-based Freitag Event Design, expects her meeting plan- ning business for 2009 will be down 15 percent. Thinking about how to Join us for a Holiday Party fill that gap in 2010, she plans to fo- cus on developing business from military compa- Thursday, 12/10 starting at 6:30pm, nies, science and technology com- :HVW%ORRP¿HOG panies and ener- Friday, 12/11 starting at 10am, Novi gy companies. “It appears that the Army has money,” Indulge in tempting gourmet treats as you meet said Freitag. representatives from our top designer collections “Automotive work is down, so who will be presenting the hottest holiday looks we have to look from their lines. at whatever we can find to di- It versify and fill “ up that 15 per- appears cent of business that the that’s gone. I’m looking for any- Army has thing that can fill that.” money. As a whole, ” Designers vary by location by day. 2UFKDUG0DOO:HVW%ORRP¿HOG. 248.932.7700 the Detroit-area Denny Freitag, meeting indus- Please call for complete details. Twelve Oaks Mall, Novi . 248.465.1800 . www.tappers.com Freitag Event try has been Design down in 2009 due to the economy, Baum said, because 7DSSHU¶V:HVW%ORRP¿HOGLVQRZRSHQRQ6XQGD\VIURPQRRQSP business travel tends to be an item cut out of corporate budgets. But he expects that growing these new business lines will help advance Detroit’s appeal as a meet- ing destination. “There have been some strong events recently in military and en- ergy,” Baum said. “And there are a lot more out there. We’ll be going after them.” Daniel Duggan: (313) 446-0414, [email protected] 20091207-NEWS--0013-NAT-CCI-CD_-- 12/4/2009 2:17 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 13 Focus: Meetings and Conventions The savvy employer’s Putting the wheels back on smart resource. Comeback is on minds of auto show planners, hoteliers after last year’s industrywide crash

BY GABE NELSON ernment officials could offset the SPECIAL TO CRAIN’S DETROIT BUSINESS continued drop in press atten- InternInMichigan.com was a great way dance. Though more than 6,000 to connect with a quality intern. Within As the auto industry goes, so journalists have typically attended “ goes the North American Internation- each year, organizers expect 5,500 hours of creating a profile and posting an al Auto Show. in January — the same as last internship, I was able to find someone That fact was particularly un- year. kind last year, when struggling au- who became instrumental in the tomakers opted out of the show to success of a major project. conserve their marketing budgets. COURTESY OF NAIAS Economic impact The EcoXperience exhibit takes Attendance fell, too, down to Mostansar Virk, president of EPIC Translations shape at last year’s show. Organizers estimate January’s ” 650,000 from more than 800,000 as auto show will have an economic hired a summer intern via InternInMichigan.com recently as 2004. impact of about $350 million on This year’s show, Jan. 11-24 at ALL ABOUT THE GREEN the region — down from $500 mil- Cobo Center, won’t be as grand as Drawing exhibitors, visitors: Alt-fuel lion in previous years, but still a Register at InternInMichigan.com some of its predecessors. Yet orga- displays gain prominence, Page 14 much-needed boost for businesses nizers are opti- that depend on the throngs of visi- or call 313.596.0447 mistic about a place in Novi. tors every January. turnaround, ex- The authority has spent more Downtown hotels were blind- pecting a 10 per- than $3 million so far on projects sided last year by late cancella- cent rebound in that include electrical upgrades tions, including for blocks of exhibitors from and repairs to the leaky roof, ac- rooms reserved by companies that last year, said cording to a statement. pulled out of the auto show, said Matching limited resources NAIAS chair- Judy Dufour, director of sales and to unlimited talent. man Doug Fox. marketing at the Detroit Marriott Re- Fifty-four Federal interest naissance Center. companies have Organizers also expect a boost Dufour said January was the Michigan... Fox signed up for ex- from a larger delegation of federal first time since the hotel became a hibits so far, up from 50 last year, employees, including a possible Marriott in 1998 that occupancy We’ve got talent here! Fox said. visit from a bipartisan congres- didn’t reach 100 percent during the With business travel down sional delegation during the auto auto show. Occupancy was about sharply and the region’s hotels show’s industry preview. 60 percent or 70 percent, she said. about 50 percent full on average, it Their presence could translate Brenda Veit, a travel consultant couldn’t come at a better time, said into more media attention and employed by the NAIAS, said re- Michael O’Callaghan, vice presi- high-profile announcements by quests for accommodations from dent and COO of the Detroit Metro carmakers receiving federal fund- out-of-towners started slowly this Convention and Visitors Bureau. ing, Fox said. year, though reservations picked “The auto show is the single most “You’re going to see significant up toward the end of November. important piece of business that De- presentations on the business side “Normally, by now I have talked troit experiences, not only because from our hometown manufactur- to a lot more people,” she said. of its size, but because of the time of ers,” Fox said. “This year, it’s taking them longer year that it takes place,” O’- The auto show traditionally has to decide who’s committed. Callaghan said. “There is not a lot of hosted officials from the Depart- They’re saying, ‘We’re coming, we demand for hotel space in Detroit in ment of Transportation and the Na- just don’t know how many people the middle of January.” tional Highway Traffic Safety Adminis- we’re going to send.’ When you Though some of last January’s tration, but this year twice as many take the economy into considera- no-shows, including Suzuki and federal employees have sought cre- tion, that’s a given.” Porsche, aren’t coming back, orga- dentials, Fox said. Organizers Though the Marriott expects to We are pleased to announce nizers now know what to expect. have created a special credential reach full capacity at the start of that Fluid Air Controls, LLC, They are still courting Mitsubishi for the 500 expected to attend. the auto show this year, it won’t and Land Rover, Fox said, while Nis- Fox said increased interest get the same revenue because a Stratford-Cambridge Group portfolio company, san recently signed up to have a among high-level officials presum- rooms that used to cost about $400 has recently acquired small exhibit. ably reflects a desire to check on per night are now going for about Last year, the cancellations the federal government’s invest- $250, Dufour said. caught them by surprise, said Fox, ment in the auto industry, which “This week was always really president of Ann Arbor Automotive exceeded $80 billion over the past critical to us, just because of the and a member of the Troy-based De- year. amount of revenue we would get,” a Division of Ace Controls, Inc., troit Auto Dealers Association, which “It’s certainly increased the in- she said. In January, she added, from its parent company, Kaydon Corporation. organizes the 103-year-old auto terest level from the top execu- “(the auto show) will start the year show. The collapsing economy and tives,” he said. “Many people are off on a good note, but it will be news of carmakers fleeing Detroit’s looking at Detroit as the epicenter like any other busy convention Stratford-Cambridge Group is a boutique buy-out firm focused on auto show made it seem as if “the of this global recession, so a lot of week for us, because the rates of companies where we can build and add value over time. sky was caving in,” Fox said. eyes will be on Detroit on Jan. 11 yesterday no longer exist.” That may have contributed to and for the next 15 days.” The Westin Book Cadillac Detroit We deal in the "micro-cap" end of the market and our the lower-than-average turnout, he Among government leaders expects the same revenue from the investment criteria is as follows: said, predicting an increase in planning to attend at some point auto show as last year, said Scott § Industrial Sector; niche manufacturing, industrial services and public attendance this January. during the convention are Speaker Stinebaugh, the hotel’s director of value-added distribution “I’d be very surprised if it were of the House Nancy Pelosi, D- sales and marketing. § Midwest based not up,” he said. Calif.; House Majority Leader Ste- The hotel was at full capacity The exhibits themselves won’t ny Hoyer, D-Md.; and U.S. Secre- during the press preview, largely § EBITDA range of $3M or less be as extravagant as in years past, tary of Transportation Ray due to repeat business from Euro- § Buy-outs, corporate divestitures and platform acquisitions but there is a spotlight planned on LaHood, Fox said. pean luxury brands that booked We offer accredited investors, hedge funds and other investment green technology and the future of Considering the political impor- rooms last year. vehicles the opportunity to invest in the private equity class of the industry. Plus, some of the tance of the auto industry, Fox “At the time, they weren’t as af- alternative investments on a per deal basis. biggest spending is coming from said he wouldn’t be surprised if fected by what was going on in the the Detroit Regional Convention Facil- President Barack Obama ap- domestic auto industry. Now, Business owners, intermediaries and investors can contact Stephen ity Authority, which assumed re- peared. But presidential visits are everybody’s been touched by the Ellis at [email protected] or at the contact sponsibility for Cobo Center earli- typically kept quiet ahead of time, economic challenges worldwide,” information below for more detail. er this year and has begun a so organizers likely wouldn’t he said. “We’re lucky to recapture $300 million renovation process. know until closer to the auto show, the business that we had.” The auto show might otherwise he said. Dustin Walsh contributed to this 32613 Folsom l Farmington Hills, MI 48336 have moved to Rock Financial Show- The increased presence of gov- story. P: 248.478.3834 F: 248-893-3689 l www.StratfordCambridgeGroup.com 20091207-NEWS--0014-NAT-CCI-CD_-- 12/4/2009 10:00 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS December 7, 2009 Focus: Meetings and Conventions 2010 auto show is much about green: Saving and displaying

BY GABE NELSON at Rochester Hills-based market- longer swapping out their exhibits presence at the auto show. go, an electric two-seat car priced AND DUSTIN WALSH ing company EEI Global Inc. between the press preview and the Nissan, a no-show last year, re- near $150,000 depending on compo- SPECIAL TO CRAIN’S DETROIT BUSINESS The company, which designs public show, Wakely said. cently signed up to present its Leaf nents. and installs exhibits for clients “Now they’re designing a booth electric car at the Electric Avenue Commuter Cars, a first-timer at Car companies continue to cut that include BMW and Tesla Motors, so it works equally as well for both exhibit on the main floor. Mit- NAIAS, hopes to find investors and back on auto show expenses, such has been tasked with keeping to press and public,” he said. subishi, which is touting its MiEV customers at the show. as theatrical displays and parties, tight budgets. “They’ve economized quite a bit in line of electric vehicles, would also “It’s tough in the high-end mar- but some plan revamped exhibits Much of the savings come from that respect.” fit well into that space, Fox said. ket,” said Rick Woodbury, the com- around new technology and sup- less extravagant materials and Electric Avenue is planned as a pany’s president. “I’d love to get 10 plier innovations. structures, but companies are also 37,000-square-foot main-floor exhib- to 25 new orders in Detroit.” Having already cut exhibition designing exhibits that require Electric Avenue it with around 20 vehicles from all- Electric Avenue is sponsored by costs by about 50 percent, carmak- less setup. EEI started installing Some companies, such as Mit- electric vehicle makers such as Midland-based Dow Chemical Co. ers with displays at the auto show the BMW exhibit just after subishi, haven’t committed to formal Shenzhen, China-based BYD Auto; Dow Kokam L.L.C., a joint venture be- are spending roughly the same Thanksgiving — a month later exhibits, but Doug Fox, chairman of San Jose, Calif.-based Green Vehicles tween Dow and South Korea-based amount as last year, said John than it started three years ago. the 2010 North American International Inc.; and Spokane, Wash.-based Com- battery maker Kokam Engineering Co. Wakely, director of event services On top of that, clients are no Auto Show, said they might have a muter Cars Corp., maker of the Tan- Ltd., recently received federal mon- ey to develop new lithium ion bat- tery technology for automobiles. Show and tell for Michigan Also planned for the 2010 show is re’s a h a spotlight on Michigan’s role in e e green cars. th a For the second year, the Michigan l Economic Development Corp. plans an w th EcoXperience exhibit in Michigan or all y Hall in Cobo’s basement, Fox said. o f o P The expanded EcoXperience will f lus feature more electric and hybrid au- N u tomobiles. Plus, attendees will be s able to ride the environmentally ! friendly cars around a quarter-mile track, surrounded by living Michi- gan-grown vegetation. Introducing exciting new health “We’re showcasing to the world and the international media that Michigan is moving in the direction coverage for individuals and families. of electrification of the vehicle, as are our manufacturers and suppli- ers,” said Lisa Dancsok, vice presi- Great news! HealthPlus now offers individual and family health plans that combine affordable, dent of marketing and communica- tions for the MEDC. low monthly premiums with access to preventive care and coverage should you need more GM, Chrysler, Ford, Mitsubishi, intensive medical care. HealthPlus Signature Plans are perfect for people age 18-64 who are Global Electric Motorcars, Myers Mo- tors and Roush all featured cars at looking to purchase health benefit coverage for themselves or their family. the 2009 exhibit. Announcements had not yet been made for the cars to be included at the 2010 exhibit. Enrolling is easy! An addition to the EcoXperience in 2010, “The MEDC Alternative En- Visit us online to customize a Signature PPO health plan, review benefits and determine a ergy Showcase” will feature dis- plays and presentations by 10 alter- monthly premium that’s just right for you. native-energy suppliers, including Dow Kokam, A123 Systems, Johnson Or for personal assistance, call to speak with one of our friendly representatives who will answer Controls-Saft, DTE Energy and Sakti3. “Everything has to be re-engi- any questions you have. neered for these cars,” Fox said. Students and professors from Michigan Technological University and www.healthplus.org/signature.html the University of Michigan will be available to discuss the universi- ties’ electric research. 1-877-562-0907 Approximately 50,000 attendees are expected for the EcoXperience. Charity Preview The glamour, designer gowns and elbow rubbing of the NAIAS Charity Preview is back, but for a much-reduced price. The $400 tickets, which have raised more than $78 million for charities since 1989, are gone. The 2010 NAIAS committee lowered the preview’s ticket price to $250. The lower price is due to a trend away from large-block ticket sales and an attempt to attract younger atten- FLINT 2050 S. Linden Road, Flint, MI 48532 dees, Fox said. SAGINAW 5454 Hampton Place, Saginaw, MI 48604 There’s also a trend toward more after-parties in the Cobo ballrooms. TROY 101 W. Big Beaver Road, Suite 140, Troy, MI 48084 “People won’t just come in then go off to dinner,” Fox said. “We’re going to have a couple of venues set HealthPlus PPO is a product of HealthPlus Insurance Company, up right here on the premises.” a wholly owned subsidiary of HealthPlus of Michigan, Inc. For more information about the 2010 NAIAS, go to www.naias.com. 20091207-NEWS--0015-NAT-CCI-CD_-- 12/3/2009 4:35 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 15

CRAIN'S LIST: LARGEST METRO DETROIT EMPLOYERS Ranked by full-time employees

Company Address Worldwide Worldwide Website; phone Metro Detroit employees Metro Detroit employees employees employees Rank Top local executive 2009 2008 2009 2008 Type of business Ford Motor Co. Alan Mulally 44,000 B 44,627 B 201,000 229,000 Automobile manufacturer 1. 1 American Road, Dearborn 48126 president and CEO www.thefordstory.com; (313) 322-3000

University of Michigan Mary Sue Coleman 26,433 25,699 27,074 26,298 Public university and health system 2. Ann Arbor 48109 president www.umich.edu; (734) 764-4636

General Motors Co. Ed Whitacre Jr. 20,800 C 40,142 NA 265,885 Automobile manufacturer 3. 300 Renaissance Center, Detroit 48265 interim CEO www.gm.com; (313) 556-5000 Chrysler Group L.L.C. Sergio Marchionne 19,882 29,205 54,007 77,643 Automobile manufacturer 4. 1000 Chrysler Drive, Auburn Hills 48326 CEO www.chryslerllc.com; (248) 576-5741 Henry Ford Health System Nancy Schlichting 18,282 16,542 NA 16,663 Health care system 5. 1 Ford Place, Detroit 48202 president and CEO www.henryford.com; (800) 436-7936 U.S. government NA 16,694 15,617 1,820,456 1,746,736 Federal government 6. 477 Michigan Ave., Detroit 48226 (800) 688-9889 Beaumont Hospitals Kenneth Matzick 15,275 16,432 NA NA Private, nonprofit hospital 7. 3711 W. 13 Mile Road, Royal Oak 48073 president and CEO www.beaumonthospitals.com; (248) 898-5000

Detroit Public Schools Teresa Gueyser 13,750 15,904 13,750 D 15,904 Public school system 8. 3011 W. Grand Blvd. Fisher Building, Detroit 48202 acting superintendent www.detroitk12.org; (313) 873-3111 City of Detroit Dave Bing 13,187 13,352 13,187 13,352 City government 9. 2 Woodward Ave. Coleman A. Young Municipal Center mayor Detroit 48226; www.ci.detroit.mi.us; (313) 224-3700

U.S. Postal Service Nancy Rettinhouse and 12,800 B 13,487 B NA NA Postal service 10. 1401 W. Fort St., Detroit 48233-9998 Karen Schenck www.usps.gov; (313) 226-8607 district managers St. John Health System Patricia Maryland 12,684 11,243 13,003 11,388 Health care system 11. 28000 Dequindre Road, Warren 48092 president and CEO www.stjohn.org; (866) 501-3627 Detroit Medical Center Michael Duggan 11,626 11,304 11,626 11,304 Health care system 12. 3990 John R, Detroit 48201 president and CEO www.dmc.org; (313) 745-1250 Trinity Health Corp. Joseph Swedish 10,941 11,414 45,800 43,548 Health care system 13. 27870 Cabot Drive, Novi 48377 president and CEO www.trinity-health.org; (248) 489-5004 State of Michigan Jennifer Granholm 10,887 10,791 49,156 48,465 State government 14. Cadillac Place, Detroit 48202 governor www.michigan.gov; (313) 456-4400 Blue Cross Blue Shield of Michigan/ Daniel Loepp 7,206 7,321 8,000 NA Health care insurer 15. Blue Care Network president and CEO 600 E. Lafayette Blvd., Detroit 48226 www.bcbsm.com; (313) 225-9000 DTE Energy Co. Anthony Earley Jr. 6,632 6,623 10,489 10,296 Energy and energy-technology 16. 1 Energy Plaza, Detroit 48226 CEO and chairman company www.dteenergy.com; (313) 235-4000 Oakwood Healthcare Inc. Brian Connolly 5,679 5,735 5,681 5,738 Health care system 17. 1 Parklane Blvd., Suite 1000E, Dearborn 48126 president and CEO www.oakwood.org; (313) 253-6000 Comerica Bank Thomas Ogden 5,616 5,984 9,716 10,187 Financial services provider 18. 500 Woodward Ave., Detroit 48226 Michigan market president www.comerica.com; (248) 371-5000 Wayne State University Jay Noren 5,019 4,935 5,019 4,935 Public university 19. 42 W. Warren, Detroit 48202 president and CEO www.wayne.edu; (313) 577-3577 Wayne County government Robert Ficano 4,545 4,775 4,545 4,775 County government 20. 600 Randolph, Detroit 48226 county executive www.waynecounty.com; (313) 224-3930

Johnson Controls Beda Bolzenius 4,120 B 4,205 B 140,000 140,000 Automotive supplier, building control 21. 49200 Halyard Drive, Plymouth 48170 president, automotive systems and facilities management www.johnsoncontrols.com; (734) 254-5000 experience

EDS Corp. Mike Nefkens 4,000 B 6,260 125,000 B 135,500 Information-technology services 22. 500 Renaissance Center, Detroit 48232 vice president and regional www.eds.com; (313) 230-2664 general manager of GM account Utica Community Schools Christine Johns 3,756 3,676 3,756 3,676 Public school district 23. 11303 Greendale, Sterling Heights 48312 superintendent www.uticak12.org; (586) 797-1000 AutoAlliance International Inc. John Savona 3,508 3,508 NA NA Joint-venture automobile assembly 24. 1 International Drive, Flat Rock 48134 president, CEO and plant firm (734) 782-7800 manager Oakland County L. Brooks Patterson 3,474 3,699 3,474 3,699 Government 25. 2100 Pontiac Lake Road, Waterford Township 48328 county executive www.oakgov.com; (248) 858-2581

This list of Metro Detroit employers encompasses companies with headquarters in Livingston, Oakland, Wayne, Washtenaw or Macomb counties. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. This is not a complete list but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA means not available. B Crain's estimate. C Crain's estimate as of November 2009. D As of Feb. 2, 2009. LIST RESEARCHED BY ANNE MARKS AND PATRICE BUSHART 20091207-NEWS--0016-NAT-CCI-CD_-- 12/3/2009 5:01 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS December 7, 2009 DPS real estate hearings a matter of perspective

BY DANIEL DUGGAN past. based Farbman Group. CRAIN’S DETROIT BUSINESS “This doesn’t change anything,” The Farbman Group sold the SQUARING OFF ON REAL ESTATE TRANSACTIONS he said. district five floors of space in the Five real estate transactions are at the center of the ongoing Detroit Public Is it a case of reckless spending Former DPS officials who testi- Fisher Building, purchased land Schools inquiry. Below is the DPS accusation on each deal and the or misunderstood spending? fied last week stood behind the for Cass Tech High School and rede- explanation by Robert Francis, the executive director for capital Two views of a series of contro- real estate deals Bobb has ques- veloped a vacant warehouse on improvements from 2000 to 2005: versial real estate deals involving tioned, and former deputy CEO Warren Avenue before selling it to Purchase of five floors in the merely representing the district. the Detroit Public Schools are emerg- Robert Moore the district. Fisher Building Francis: If people knew DPS ing after former school officials even questioned Mike Layne, partner with Marx DPS: The five floors were wanted their land, the price would stood by their past decisions dur- Bobb’s need for Layne & Co. in Farmington Hills, purchased for more than the owner escalate and attorneys would be ing hearings last week. hearings. who represents the Farbman paid for the entire 26-floor building. involved. One company was hired In one view, DPS investigators “I wonder Group, has said in the past that his Francis: The district had almost no by the district, and that company have pointed to five questionable why the highly client has an open relationship options in Detroit for nearly hired a subcontractor. The deals in which the school district successful bond with the schools. 200,000 gross square feet of companies optioned the land, paid vastly larger amounts for fund deploy- Both Robert Francis, DPS execu- space to be sold as an office demolished structures and property than the original pur- ment from 2000 tive director for capital improve- condo, with parking included, and obtained environmental clearance chaser paid. to 2005 is being near bus routes in Detroit. The deal then added those costs and a ments from November 2000 to Oc- broker commission into the sale In the other view, former DPS questioned tober 2005, and Moore told Bobb helped lift nearly $4 million per Moore year in operational costs off the prices. officials say the real estate deals when there are they cannot make comparisons be- saved operational costs for the dis- so many more immediate prob- books and has already paid for Purchase of 400 parking spaces tween what the price of property itself. The $24.1 million cost also never used trict and that the real estate in- lems facing DPS,” said Moore, cur- purchased by an investor on a included 720 parking spaces, vestors who purchased properties rently deputy superintendent of fi- DPS: The district commissioned speculative basis and the price which can cost $18,000 each in the purchase of 400 parking originally were shouldering mas- nance and operations for the paid by the school district. Detroit. spaces for the Detroit School of sive risk that the properties would Oakland County Intermediate School In the case of the Fisher Build- Lease of 68 acres from the city Arts. The school’s staff has never not be occupied. District. ing, Bobb and his team have ac- of Detroit used the spaces and they have Given the new information, DPS The questions asked by Bobb cused the school district of over- DPS: At $188,000 per acre, the been leased to the Detroit Medical Emergency Financial Manager and his team have centered on the paying for 210,000 gross square feet lease cost is comparable to a sale, Center. Robert Bobb said Thursday his price paid for real estate and the of office space by paying $24.1 mil- yet the school district does not own Francis: The district was required mission remains the same as when nature of the relationship between lion when they estimate the build- the land that schools are built on. to have 400 spaces to accompany he started: bringing clarity to the DPS officials and the Southfield- The city profited with $13 million the school based on a city ing was sold for $21 million as part from the sale. requirement to have a certain of a two-building portfolio two Francis: Acquiring 68 acres of un- number of parking spaces to go years earlier. contaminated land in Detroit is with buildings based on a formula “The price the building was harder than it sounds. The district of the building’s size. originally purchased for is not rel- would have needed at least three The parking deck is within a half- evant,” Moore said. “When General years to go through the long mile and seemed close enough to PARTNERSHIP AVAILABLE Motors left New Center to go to the process of buying a city park, and the school. Renaissance Center, there was a the 99-year lease exceeds the Warehouse on Warren Avenue flight from the Fisher Building. typical 40-year life of a school DPS: The school district paid We invite you to experience the difference that building. Plus, the rate the district private flight travel can make. That change in vacancy would $25 million for a building that was was paying for school land was purchased two years earlier for just surely change the price.” $325,000 to $350,000. Likewise, Francis defended the $1.1 million. The price was set as a swap; the Francis: A developer purchased a UÊ œÊ >ÃÏiÊi˜ÌÀÞʏiÛiÊÊ district’s $25 million purchase of a park sale was used to pay for the ÊÊÊ«>À̘iÀà ˆ«ÃÊ warehouse building on Warren vacant brownfield site along with $13 million renovation of a nearby the risk that it would never be used UÊœÜiÃÌʜ«iÀ>̈˜}ÊVœÃÌÃÊÊÊÊÊÊÊ Avenue when faced with questions recreation center. ÊÊʈ˜ÊÌ iʓ>ÀŽiÌÊ again. The building was about Farbman’s $1.1 million pur- Land acquisition for Cass Tech redeveloped and furnished so that UÊ
VViÃÃÊ̜ʜÛiÀÊx]äääÊÊ chase just two years prior. High School ÊÊÊ1°-°Ê>ˆÀ«œÀÌÃÊ the school district could move in The property started as a facility DPS: Parcels of land exchanged without doing additional work. The UÊ*ˆœÌÃÊޜÕʎ˜œÜÊ>˜`ÊÌÀÕÃÌÊ used by Thorn Apple Valley and was hands multiple times on the same move saved money for the district UÊ/À>ÛiÊœ˜ÊޜÕÀÊÃV i`Տi]ÊÊ sold to a Farbman-related entity day, escalating in price at each by consolidating multiple functions ÊÊʘœÌÊÌ iÊ>ˆÀˆ˜i½ÃÊ closing. Companies acted as from all over Detroit into one place UÊ->viÊ>˜`ÊÃiVÕÀi for $1.1 million in 2000 as part of a bankruptcy liquidation. investors rather than brokers by near all the major freeways. In 2002, DPS purchased the purchasing the land rather than — Daniel Duggan building for $25 million after it had American Jet Management been built out specifically for the cis said during an exchange with That is our goal,” he said. “And >Ê ˆŽiÊ>ÌÊn£ä°ÓÎÓ°{{{ÎʜÀʈ“Ê>ÌÊÓ{n°nÈä°ÈÎÇn district’s needs and ready to be Bobb. then, we can all move on.” moved into. “So, let me make sure I under- The hearings are expected to Francis said the building be- stand this. You had no need to un- continue this week with former came crucial to DPS’ efforts to con- derstand what the value of this DPS CEO Kenneth Burnley. solidate its operations from building was to the owners?” Bobb Bobb has also brought legal ac- around the city into one location. asked. tion against Farbman co-Presi- The higher cost was based on the “What was important to me was dents Andy and David Farbman schools’ need to have a building the value I helped obtain for DPS,” and appraiser Sharon Harbin to that was redeveloped and ready to Francis said. force them to testify. move into. During his comments at Thurs- Also named as a defendant is “I don’t see a connection be- day’s hearing, Bobb indicated current DPS board member Antho- tween the risk taken on by a devel- that the purpose of the hearings ny Adams, who was assistant gen- oper and the need for us to buy a has been to bring clarity to a se- eral counsel to the district in 2000 facility that is ready to use,” Fran- ries of real estate deals that resi- and 2001. cis said. dents have asked him about at al- All four have said they are coop- “Our interest was looking at the most every public meeting he erating with DPS. value for us, I wasn’t looking at attends. Daniel Duggan: (313) 446-0414, what was paid for an asset,” Fran- “We need to bring clarity to this. [email protected] ASE survey: Half of state’s employers say outlook is improving Half of the Michigan employers That compares to 44 percent of ing freezes initiated in 2009, many that responded to a recent survey respondents saying their business within the next 12 months. done by the American Society of Em- outlook has moderately worsened 68 percent plan to reverse fur- ployers say their six- to 12-month during the June 2009 survey and loughs in the next nine months. business outlook has improved 24 percent saying their outlook 63 percent plan to reverse over the past six months. had significantly worsened. wage and salary reductions initiat- Of the 140 Michigan companies According to the survey: ed in 2009, most within the next 12 polled in late October as part of 18 percent of employers plan months. Of those employers, 76 ASE’s “Quarterly Economic & Em- to increase their hiring in 2010, percent plan to restore pay to pre- ployment Survey,” 12 percent said with 15 percent of all responding reduction levels and 9 percent plan their business outlook had wors- employers saying they expect to do on restoring pay to pre-reduction ened moderately. Another 3 percent so over the next six months. levels plus provide for an increase. said it had worsened significantly. 56 percent plan to reverse hir- — Sherri Begin Welch 20091207-NEWS--0017-NAT-CCI-CD_-- 12/3/2009 4:21 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: AIRLINES SERVING DETROIT METROPOLITAN AIRPORT Airport totals Jan.- Sept. 2009, Ranked by passengers boarded compared with Jan.- Sept. 2008: Company International passengers City; Phone; Web site Total passengers boarded Domestic passengers boarded boarded Tons of enplaned cargo Total passengers Rank Local manager Jan.-Sept. 2009/2008 Jan.-Sept. 2009/2008 Jan.-Sept. 2009/2008 Jan.-Sept. 2009/2008 Number Change Delta Air Lines B 7,921,151 7,112,219 808,932 8,571 23,917,807 -11.8% 1. Atlanta; (800) 221-1212; www.delta-air.com 9,055,461 8,118,695 936,766 25,763 Andrew Zarras, vice president, airport customer service Domestic passengers Pinnacle Airlines C 1,585,575 1,585,575 0 310 Number Change 2. Memphis; (800) 603-4594 ; www.flypinnacle.com 1,535,582 1,535,582 0 251 22,014,132 -10.6% Brett Mannion, facilities manager International passengers Spirit Airlines 447,698 433,110 14,588 0 3. Fort Lauderdale, Fla.; (800) 772-7117; www.spiritair.com 600,430 585,519 14,911 0 Number Change Cari Hayes, station manager 1,903,675 -23.8% Southwest Airlines 398,776 398,776 0 438 Enplaned passengers 4. Dallas; (800) 435-9791; www.southwest.com 452,723 452,723 0 969 Michael Carr, station manager Number Change 11,913,347 -11.5% US Airways 392,191 390,338 1,853 54 5. Arlington, Va.; (800) 428-4322; www.usairways.com 409,900 409,900 0 59 Deplaned passengers Chris Walrath, Detroit station manager Number Change American Airlines/American Eagle Airlines 353,479 353,479 0 35 12,004,460 -12.1% 6. Fort Worth; (800) 433-7300; www.aa.com 395,061 395,061 0 47 Jim Jianette, station manager United Airlines 198,114 198,114 0 12 Total cargo 7. Elk Grove, Ill.; (800) 241-6522; www.ual.com 241,941 241,941 0 13 Pounds Change 256,376,215 -29.9% Continental 193,968 193,968 0 132 Air freight 8. Houston; (800) 525-0280; www.flycontinental.com 214,809 214,809 0 97 Bob Hall, general manager Pounds Change 242,579,029 -30.8% Air Tran Airways 165,819 165,548 271 0 9. Orlando; (800) 247-8726; www.airtran.com 167,081 167,081 0 0 Jeff Gordon, station manager Small packages Pounds Change Frontier Airlines 89,455 89,455 0 93 523,013 +88.7% 10. Denver; (800) 432-1359; www.frontierairlines.com 95,038 95,038 0 44 Tammara Faforke, city manager Air mail Figures for total passengers boarded and tons of mail and cargo were provided by the community-relations office of Detroit Metropolitan Airport. Figures include regional operating carriers. Pounds Change B Delta Air Lines completed its acquisition of Northwest and its subsidiaries Oct. 29, 2008. Figures are combined. 13,274,173 -8.2% C Operates under the name Delta Connection for Delta Air Lines. Source: Wayne County LIST RESEARCHED BY DETROIT METROPOLITAN AIRPORT Airport Authority

CRAIN'S LIST: LARGEST COMPUTER SERVICE COMPANIES Ranked by 2008 revenue

Full-time Company Revenue Revenue local Address ($000,000) ($000,000) employees Rank Phone; Web site Top executive 2008 2007 Jan. 2009 Type of business Compuware Corp. Peter Karmanos Jr. $1,090.5 $1,229.6 2,603 Software and professional services 1. 1 Campus Martius, Detroit 48226 chairman and CEO (313) 227-7300; www.compuware.com

Syntel Inc. Bharat Desai $410.4 $337.7 NA Information-technology software applications, 2. 525 E. Big Beaver Road, Suite 300, Troy 48083 chairman outsourcing, e-business services, business-process (248) 619-2800; www.syntelinc.com outsourcing

TechTeam Global Inc. Gary Cotshott $260.0 $222.2 NA Information-technology outsourcing, government 3. 27335 W. 11 Mile Road, Southfield 48033 president and CEO technology services, IT consulting and systems (248) 357-2866; www.techteam.com integration, technical staffing and learning services

Strategic Staffing Solutions Inc. Cynthia Pasky $160.0 $150.0 364 Information-technology consulting and staff 4. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO augmentation, vendor management, customized project (313) 965-1110; www.strategicstaff.com solutions and executive search services

CareTech Solutions Inc. James Giordano $153.3 $135.2 NA Health care information-technology services provider 5. 901 Wilshire Drive, Suite 100, Troy 48084 president and CEO (248) 823-0800; www.caretechsolutions.com

Altair Engineering Inc. James Scapa $152.0 $140.0 389 A global software and technology company focused on 6. 1820 E. Big Beaver Road, Troy 48083 chairman and CEO engineering simulation, advanced computing, enterprise (248) 614-2400; www.altair.com analytics and product development

Tata Technologies Warren Harris $150.0 $99.3 455 Product life-cycle management and product development 7. 41370 Bridge St., Novi 48375-1302 president and COO IT services; proprietary software and knowledge (248) 426-1482; www.tatatechnologies.com management software systems

Acro Service Corp. Ron Shahani $105.0 $120.0 868 Staff augmentation (IT, engineering, office support), 8. 39209 Six Mile Road, Suite 250, Livonia 48152 president, chairman and outsourcing and IT and engineering consulting (734) 591-1100; www.acrocorp.com CEO

VisionIT David Segura, CEO $102.0 $107.1 475 IT managed services, staffing and vendor management 9. 3031 W. Grand Blvd., Suite 695, Detroit 48202 Christine Rice, president (877) 768-7222; www.visionitinc.com

Synova Inc. Tim Manney $92.0 $113.7 NA Information-technology services 10. 1000 Town Center, Suite 700, Southfield 48075 president (248) 281-2500; www.synovainc.com

This list of leading Detroit-area computer companies is an approximate compilation of the leading such companies that research, design, manufacture or invent equipment or software, plus companies that provide sophisticated computer services such as systems design, programming and information retrieval. It is not a complete listing but the most comprehensive available and covers Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies based elsewhere are ranked by their revenue in the five-county area and not by total revenue. Unless noted, the companies provided the information. NA = not available. LIST RESEARCHED BY ANNE MARKS DBpageAD.qxd 9/30/2009 10:08 AM Page 1

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December 7, 2009 CRAIN’S DETROIT BUSINESS Page 19 Extra ADULT DAY CENTERS STRUGGLE Poor economy leaves mark on care facilities for impaired patients, Page 22

People

Ⅲ Stephen in Cavanagh, R.N., Ph.D., M.P.A., and the associate dean for Hospice hot seat academic and clinical affairs at the Wayne State University College of Nursing, has been named a Medicare expenses bring rules to weed out wasteful spending Robert Wood Johnson Foundation Executive BY MICHELLE MARTINEZ Nurse Fellow. The Cavanagh SPECIAL TO CRAIN’S DETROIT BUSINESS national fellowship program focuses on expanding the role of ew federal hospice payment regula- nurses to lead change in the U.S. health care system. Cavanagh is one of just 20 tions are in the pipeline to eliminate nurses selected nationwide for this award N inappropriate billing practices that in 2009. have driven up Medicare costs. Ⅲ Michael According to a March report to Con- Ferrantino and David gress from the Medicare Payment Advisory Trott have been Commission, large and mostly for-profit elected to three-year providers have been blurring the line be- terms on the board of tween hospice and long-term care with directors of the lengthy hospice stays and fuzzy admis- Barbara Ann sion criteria to maximize profits. Karmanos Cancer Nationally, Medicare payments for Institute, Detroit. Ferrantino is CEO of hospice grew from about Wayne-based The ILLING PRACTICES $2.9 billion in 2000 to Environmental Quality B more than $10 billion in Ferrantino Co. Trott is president Two cases: 2007, according to Med- and managing Settlements top PAC’s report. During attorney of Trott & $37M, Page 20 that period, numbers of Trott P.C. He also is hospice patients nearly chairman and CEO of doubled, from about 513,000 to about 1 American Processing million. Co. L.L.C., which provides technology As reimbursements have grown, so NATHAN SKID/CRAIN’S DETROIT BUSINESS and loss-mitigation have the number of for-profit hospice op- Laura Wagner, president and CEO of Southfield-based for-profit In-House Hospice, says she worries services in Michigan erators. While the number of nonprofit about access to hospice services under expected new Medicare rules. and six other states. providers dropped slightly to 1,208 in 2007, Ⅲ Richard Smith, from 1,228 in 2000, the number of for-profit U-shaped curve that would increase pay- place to receive treatment. Trott M.D., an providers jumped by more than 40 percent ments at the beginning and end of a pa- A 2007 study by Duke University profes- obstetrician- to 3,261 in 2007, from 2,319 in 2000. tient’s hospice stay, when more care is sor Don Taylor said hospice reduced gynecologist with the Henry Ford Medical Southeast Michigan has about 50 hos- typically required. Medicare spending by an average of Group, has been appointed to the pice locations in Wayne, Oakland, Ma- The change in payments would have $2,309 per person compared with conven- Practicing Physicians Advisory Council. comb and Washtenaw counties, accord- big teeth for the hospice industry. tional care, particularly in the last Mandated by Congress, the council ing to the DeWitt-based Michigan Hospice advises the secretary of health and Medicare amounts to more than 90 per- weeks of life. human services and the administrator of & Palliative Care Organization. Statewide, cent of reimbursement for Southeast “It’s going in the direction where it will Centers for Medicare and Medicaid the number is about 183, about evenly Michigan hospice providers for the six- impact all providers,” Wagner said. Services on how CMS regulations affect split between for-profits and nonprofits. month benefit. “There’s going to be a physicians. The council is composed of “There has been an explosion of for- In its report, Med- serious concern about 15 members, meets quarterly, and profit companies,” said Dottie Deremo, PAC estimated that access.” members may serve a term of four CEO of Hospice of Michigan, a nonprofit the changes reduce The new U-shaped Deremo said that consecutive years. Smith currently is the that is one of the state’s largest aggregate payments “ while there may be president of the Michigan State Medical providers. “Some are very large, making to for-profit hospices (reimbursement) curve opportunities to Society and a member of the Henry Ford 15 percent to 30 percent profit margins.” Medical Group Board of Governors. between 3.2 per- work with policy- Deremo said Hospice of Michigan cent and 5 percent. will reward makers to enhance Ⅲ Sister Mary earns a profit margin of 1 percent or Giovanni, CEO of MedPAC says organizations the U-shaped curve, Angela Hospice in 2 percent. the changes would she believed that the Livonia, was awarded Competition for business in Southeast remove the incen- that have new structure is “a the Aging Services of Michigan is very strong, Deremo said, tive to admit un- done deal.” Michigan’s top honor with about 50 providers evenly split be- qualified patients short-term- In the meantime, for 2009. Giovanni tween nonprofits and for-profits. to hospice and keep CMS is requiring received the Chair “It’s dog-eat-dog,” she said, noting that them for long stay providers to step up Citation award for the competition is radically different from stretches of time. documentation of pa- “exemplary service to hospice’s beginnings some 25 years ago But providers say tient services to dis- older persons and patients. when the industry was mostly nonprofit outstanding state that the new payment ” cover more about Giovanni and national community and religious organizations. structure would cause Dottie Deremo, Hospice of Michigan how and where pa- leadership in the aging services field.” Today, hospice is a $10 billion indus- some providers to tar- tients are treated. Giovanni was part of the conference that try nationwide and includes its share of get patients for shorter stays, displacing Rules enacted last December require brought England’s Dame Cicely Saunders, “bad players,” Deremo said. patients with diagnoses such as dementia reviewing physicians to write a brief founder of the modern hospice “Hospice has gone from ‘Kumbaya’ to a or ALS, whose exact progression cannot narrative explaining a patient’s candida- movement, to America in 1974. Giovanni big business,” she said. And the goal of always be accurately predicted. cy for hospice, and hospice nurse visits then spent 11 years researching pain government regulators is now to force out “The new U-shaped curve will reward must be recorded in 15-minute incre- control, alternative comfort measures, “those organizations that are gaming the organizations that have short-term-stay ments, among other requirements. and the needs of dying patients and their system to maximize revenue,” she said. families before founding Angela Hospice patients,” Deremo said. The number of CMS audits also have in 1985. Congress enacted a provisional hos- The issue could balloon as an aging increased. The agency’s Recovery Audit pice Medicare benefit in 1982 and made it Ⅲ Mark Casmer, formerly the Michigan produces more diagnoses that Contractor project was extended to home manager of provider partnerships and permanent in 1986. require longer periods of care, said Lau- health and hospice providers last sum- clinical program development at Blue In proposed regulations, scheduled to ra Wagner, president and CEO of In- mer. Wagner said for-profit providers Cross Blue Shield of Michigan, has been go into effect in 2013, Medicare would House Hospice, a for-profit based in are the primary target. hired as a senior director for Medical change its reimbursement structure Southfield. Many could find their way to Advantage Group, Ann Arbor. from roughly $146 a day per patient to a emergency rooms, a more expensive See Hospice, Page 20 20091207-NEWS--0020-NAT-CCI-CD_-- 12/3/2009 4:34 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS December 7, 2009 Health Care Extra Hospice: Waste targeted ■ From Page 19 “For-profits feel that we’re at a higher level of scrutiny,” Wagner said. “We’re all subject to post-pay- Two settlements ment audits, but we’ve been through three specifically looking at top $37 million dementia and one other diagnosis.” Wagner added: “My response is Two for-profit hospice to ‘pull all the charts you want. providers with operations in These patients met all the rules.’ ” Southeast Michigan have paid Jeff Towns, president and CEO of settlements to the federal gov- the Michigan Hospice and Palliative ernment in connection with Care Organization, their billing practices. said that al- Dallas-based Odyssey Healthcare though CMS Inc. (Nasdaq: ODSY), which op- “doesn’t typical- erates two hospices, in Flint and ly pick out Southfield, was put in the spot- provider types” light in 2006 when the company that are gaming paid $12.9 million to the U.S. to the system, the settle a whistle-blower suit. entire industry U.S. Department of Justice inves- is concerned the tigators alleged that the company “bad players billed Medicare for services pro- Towns paint the rest of vided to patients who were ineli- us in the same light.” gible for the benefit because they “There are a few providers that were not terminally ill. stand out,” he said, “like any indus- Odyssey did not return phone try. Should they be looked at with calls from Crain’s Detroit Busi- greater scrutiny? Absolutely.” ness over the past several weeks. Several other for-profit organiza- But in financial documents tions either declined to comment on from 2007 to 2008, Odyssey said the new regulations or did not re- it has beefed up its quality as- turn several calls placed by Crain’s. surance and employee training The for-profit companies included efforts. The change was mandat- Toledo-based HCR ManorCare and ed as part of compliance with a Brentwood, Tenn.-based Hospice corporate integrity agreement Compassus. HCR ManorCare oper- with the U.S. Department of Health ates locations in Ann Arbor, Flint & Human Services. and Southfield. Hospice Compassus Another for-profit hospice has a location in Southfield. provider, Birmingham, Ala.- But not everyone agrees that for- based SouthernCare Inc., which profits are being singled out. operates offices in Jackson, “The thing is, there has always Kalamazoo and Saginaw, agreed been a higher level of scrutiny of in January to pay HHS $24.7 mil- hospice,” said Kal Mistry, chief ad- lion to settle a whistle-blower ministrative officer of Miami-based suit. The suit alleged that South- Vitas Innovative Hospice Care, one of ernCare submitted false claims the largest hospice providers in the to the government for patients nation. “We think that’s a good treated at its facilities. thing. The regulations are applica- SouthernCare did not return ble to all hospice providers.” two calls placed to its offices by Vitas, which has a Southfield lo- press time. cation, is owned by Cincinnati- — Michelle Martinez based Chemed Corp. (NYSE: CHE), the same company that owns Roto- tion, have important benefits. Rooter. Vitas accounts for about 69 “We’re late to the party,” said percent of Chemed revenue, ac- Gloria Brooks, president and CEO Begin your own tradition. cording to its 2008 annual report. of nonprofit Arbor Hospice in Ann Mistry said Vitas looked for- Arbor. “It’s making a positive differ- ward to working with MedPAC on ence in our abili- what it knew would be “thought- ty to demon- fully considered” changes. strate Still, Vitas has been affected. In outcomes.” its annual report, the company Arbor Hospice said the pace of government re- and others have views had increased, citing made substan- $13.9 million in unbilled revenue tial investments that was tied up in the reviews. in technology The biggest area of inquiry is to and staff train- whether patients are “hospice ap- ing in anticipa- Brooks propriate,” said Abby Pendleton, a tion of new regu- partner with Southfield-based law lations, she said. firm The Health Law Partners. Deremo agreed. Hospice of “Congestive heart failure, chron- Michigan had anticipated reform Annual Calendar ic conditions that are terminal ... and so invested $4 million in an in- Ref. 5396R these patients can satisfy all of the tegrated IT system about four objective conditions; they can be years ago. All HOM nurses carry bed-bound and nonresponsive, and PDAs to document care given, and then live for eight or nine months.” 15 HOM offices statewide last year “Frankly, part of the problem,” were integrated into five hubs. Pendleton said, “is that some of the “That has positioned us well to providers don’t do the best job in weather the storm,” she said. documentation. They don’t do But for smaller cash-poor for- enough to help themselves when profit operations, the cost of mak- they get subjected to this kind of ing such investments might be too scrutiny.” high, Wagner said. Some providers say the addi- “It will likely mean the exodus tional requirements, such as im- of the mom-and-pops,” Wagner proved information-technology said. “And again, that will reduce systems and improved documenta- access.” 20091207-NEWS--0021-NAT-CCI-CD_-- 12/3/2009 4:18 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 21 Health Care Extra Caraco ex-employees sue, claim wrongful discharge, discrimination

BY JAY GREENE voluntary cessation of its manu- Hollis, Ashley Spears and Doug week and we work 10 to 12 hours a tablets and possible formulation CRAIN’S DETROIT BUSINESS facturing operations in connection Lehman. day.” errors. with the recent action by the More than 30 people also have Over the past four years, Caraco Because of the Detroit plant Fourteen former employees of (FDA). filed complaints with the Equal Em- has been cited by the FDA for qual- shutdown, Caraco’s net sales de- Caraco Pharmaceutical Laboratories “Caraco believes the allegations ployment Opportunity Commission in ity control problems. clined to $78.4 million for the sec- (AMEX: CPD) in Detroit have sued in this case are without merit and Detroit, alleging employment and In June, the FDA and U.S. Mar- the Detroit-based generic drug- ond quarter of 2010 ended Sept 30, intends to vigorously contest the workplace discrimination, Weaver shalls raided Caraco’s Detroit plant compared with $122.2 million for maker, alleging wrongful dis- actions.” said. and seized more than 30 generic the same period in fiscal 2009. charge and age, race and national The plaintiffs named in the for- According to the lawsuit, Cara- drugs and related ingredients, It also posted a net operating in- origin discrimination. mer employees’ lawsuit are co officials of Indian descent made worth more than $24 million. The lawsuit, which seeks more Brigitte Neuman, John Kiss, Su- the following comments: During the past year, Caraco come loss of $9.4 million for the than $25,000 in damages, was filed san St. Pierre, Jennifer Hender- “You don’t know about hard has issued several recalls of drug second quarter of 2010 compared Oct. 20 in Wayne County Circuit son, Robert Black, Carrie work. You are not an immigrant.” products to protect the public from with operating income of $12.2 mil- Court. Michael Weaver of Bloom- Willoughby, Tom Larkin, Tom “You’ve become American — potentially defective medications. lion for the same period in 2009. field Hills-based Plunkett Cooney Visconti, Marcus Collins, Jennie you don’t have to do anything.” The recalls involved manufactur- Jay Greene: (313) 446-0325, P.C. represents the employees. Williams, Byron Munoz, Andre “In India, we work six days a ing defects, including oversized [email protected] The employees, who were laid off July 6 with more than 335 oth- ers, held jobs ranging from techni- cians, packagers, engineers, chemists and supervisors, Weaver said. “They were told when they came through the (Caraco) gates that you are not in America, you are in India,” Weaver said. “They were told you don’t need to be in our dis- cussions because the Indians make the decisions.” “Our retirees aren’t interested in getting lost in the Because of ongoing quality prob- lems in the drug manufacturing, cracks of the health care system. They’re looking for the Food and Drug Administration a proactive health care plan that supports their lives earlier this year ordered Caraco’s and cares for them when they need it.” Detroit plant shut down. Caraco also operates packaging and ware- Mark Kloha house operations in Farmington Human Resource Manager Hills and Wixom. KUKA Assembly and Test Corp. Since July, Caraco has laid off 430 of its 650 workers. Caraco makes a wide variety of generic drugs, including the popu- lar diabetes medicine metformin and the pain reliever tramadol. In a statement provided to Crain’s Detroit Business, Thomas Versosky, Caraco’s director of business strategy, said the follow- ing: “As previously disclosed, Cara- co instituted an indefinite reduc- tion in its workforce in order to align its expenses with the current BCN Advantage: Access to quality health care providers, CB Richard Ellis excellent service and the comfort of working brokers ink 24 leases with a company you know and trust. At Blue Care Network, our BCN Advantage plan has been chosen by many individuals for American Laser and businesses alike. We believe outstanding service and access to quality care are what most people look for in health coverage. And that’s exactly what BCN Advantage Two Southfield real estate bro- provides its members — all at an exceptional value. In fact, that’s exactly why Mark Kloha kers have signed 24 leases across of KUKA chose BCN Advantage as the Medicare coverage for his company’s retirees. the country for Farmington Hills- based American Laser Centers L.L.C. Whether you have a large group or a small one, BCN Advantage can tailor a plan to over the past year. meet your needs. Learn more by visiting us online, contacting your Blues representative Of the 24, one was in Dearborn or independent agent or by calling Blue Care Network today. and another in Ann Arbor. The leases are part of a long- term process of examining the lo- cations of the company’s 240 of- fices, said Dave Long, a senior associate in the Southfield office of CB Richard Ellis who worked on the CONTACT INFO: leases with Senior Vice President MiBCN.com Scott Elliot. Call 1-866-966-BLUE (2583) CB Richard Ellis was hired to TTY users call 1-800-431-7944 BCN Advantage HMO is a medical plan with represent the company in March (8 a.m. to 5 p.m., seven days a week) an HMO contract. Blue Care Network is a 2008. The 24 leases represent 45,000 Or contact your Blues representative nonprofit corporation and independent licensee square feet in Michigan, Pennsyl- or independent agent. of the Blue Cross and Blue Shield Association. vania, Georgia, Iowa, New York, Florida, Texas, Washington, Cali- H5883_DMad FVNR10/09 MiBCN.com/medicare fornia, Illinois and Missouri. — Daniel Duggan 20091207-NEWS--0022-NAT-CCI-CD_-- 12/4/2009 11:36 AM Page 1

Page 22 CRAIN’S DETROIT BUSINESS December 7, 2009 Health Care Extra Poor economy, reduced subsidies hurt adult day centers

BY JAY GREENE don’t charge a lot because I want to hours and $12 per hour for more tended bariatric support group CRAIN’S DETROIT BUSINESS make it accessible to patients.” than 35 hours per week. classes, Smiertka said. Located in the Oakland Technology With the state As another health care service, “After surgery, support group is In October 2007, Jackie Smiert- Park at 3100 Cross Creek Parkway, “ Quality of Life also treats bariatric mandatory and goes on biweekly ka took a big chance when she Quality of Life offers adult day care, budget crisis, we are patients who are recovering from for the first two years,” she said. opened the Quality of Life Center, an respite services for caregivers, med- surgery, Smiertka said. “Many continue indefinitely.” adult day health care center in ical care for overweight and obese caught in a perfect Most of the bariatric patients Smiertka also rents office space Auburn Hills. patients and office space to physi- who use the center for post-dis- to several doctors and other A registered nurse for 30 years, cians and health care professionals. storm. charge care are treated by Dr. providers, who see patients at Qual- working in hospital pediatrics and It is one of a few centers in ” Mustafa Hares, a general surgeon, ity of Life. The providers include a in a surgeon’s office, Smiertka had Michigan that combines adult day Kerri Gentry, who performs bariatric surgery at surgeon, internist, nutritionist and never owned a business. care with health services, Smiert- Sheltering Arms Adult Day Center St. John Macomb-Oakland Hospital, psychologist. She also offers patient “I worked for a surgeon who per- ka said. Oakland Center in Madison Heights. education and massage therapy. formed bariatric Because of the poor economy budget, she said. Daniela Scholl, St. John’s direc- “It is very convenient for our se- surgery, and I and reduced subsidies for the cen- Gentry said most of the adult tor of corporate media relations, niors to see their doctors here at the followed pa- ters, Kerri Gentry, manager of day centers have had federal fund- said St. John doesn’t have a direct center,” she said. “It saves them tients for 12 Sheltering Arms Adult Day Center in ing cut 15 percent this year from affiliation with the Quality of Life. time, and their caregivers like it be- years out of Auburn Hills and Southfield, said the Older Americans Act. To pick She said Hares, who is on hospital’s cause they don’t have to make an- surgery,” most of the 27 adult day centers in up some slack, United Way for South- medical staff, refers patients there. other trip to the doctor’s office.” Smiertka said. Southeast Michigan have fewer se- eastern Michigan funding helps sub- Scholl said St. John’s Weight The practitioners include Dr. “My dream was niors than they normally do. sidize its operations, she said. Loss Center is maintaining a busy Ban Mechael, an internist, and Dr. to have my own Gentry said the Sheltering Arms “We made some staffing adjust- schedule and has grown 34 percent Wendy Smith, a psychologist. Oth- office and help centers are operating at about ments. When staff retired, we didn’t annually since 2004, despite the er providers include nutritionist these patients 65 percent of capacity, with Auburn replace them,” said Gentry of the poor economy. It was recently des- Patrizia Jesue and therapeutic Smiertka recover.” Hills averaging about 10 seniors center’s 21 employees. “Everybody ignated a center of excellence by massager Karen Dermidoff. From a business standpoint, how- each day and Southfield about 17. is taking on more responsibility.” the American Society for Metabolic Smiertka said the center has re- ever, Smiertka said she struggles to “Everybody is slightly down Gentry said Sheltering Arms re- and Bariatric Surgery, she said. cruited two podiatrists and is look- make ends meet, especially with the right now,” said Gentry, who also cently signed a contract with the Smiertka said Hares performs ing for a dermatologist who spe- poor economy. is vice president of planning and Veterans Administration, which re- about four to five duodenal switch cializes in elder care. The 4,000-square-foot center, older adult services with Catholic imburses day centers for veterans’ surgeries each month at St. John “The most difficult part of this which has a capacity of 20, charges Social Services of Oakland County, care. and refers those patients to the job is marketing,” she said. “I seniors $50 per day. It uses two full- which sponsors Sheltering Arms. In addition, the increasing num- center for post-discharge care. don’t feel like I should be begging time employees and several part- “We break even and have tried bers of seniors with long-term care “Patients come back for the sup- people to come here. We offer great time workers to care for the six to 10 to cut costs, but with the state bud- insurance also have helped pay for port group and to run in the senior value, and our care is cost-effec- mostly impaired older adults. get crisis, we are caught in a per- the $80 average per day charges, day care room,” she said. tive and caring.” “These are older folks who should fect storm,” Gentry said. The cen- Gentry said. Sheltering Arms Over the past several years, Jay Greene: (313) 446-0325, not be left alone,” Smiertka said. “I ters operate on a $500,000 annual charges $8 per hour for under 35 more than 500 patients have at- [email protected] 20091207-NEWS--0023-NAT-CCI-CD_-- 12/4/2009 10:02 AM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 23 Health Care Extra Study: Hepatitis B does not increase risk for pancreatic cancer A new study shows that hepati- have disease that is measurable on Report: Brain radiation can The Henry Ford study included tis B does not increase the risk for Research Roundup an imaging study. 340 patients with Stage III non- pancreatic cancer and that age is The two hospitals are sponsored prevent lung cancer’s spread small cell lung cancer for one year the only contributing factor, ac- newly infected with hepatitis B, al- by seven-hospital St. Joseph Mercy Preventive brain radiation for after receiving the 10-minute radi- cording to researchers at Henry though many cases are not report- Health System, which is also part of lung cancer patients can prevent ation treatment. Ford Hospital in Detroit. ed because many people do not 44-hospital Trinity Health in Novi. cancer from spreading to the brain, According to the American Can- The results contradict a previ- have symptoms. For more information, call the but it does little to improve overall cer Society, about eight to nine out ous study in 2008 that suggested a The study was presented last Michigan Cancer Research Consor- survival and impacts short- and of 10 cases of all lung cancers are link between pancreatic cancer month at the American Association tium at (877) 590-5995. long-term memory, according to re- the non-small cell type. and previous hepatitis B infection. for the Study of Liver Diseases’ annu- searchers at Henry Ford Hospital. Hepatitis B is an inflammation of al meeting in Boston. Dietary agent may prevent Oncologists used preventive the liver caused by a viral infec- brain radiation for patients with Grants tion. progression of pancreatic cancer non-small cell lung cancer — the Using data from Henry Ford St. Joseph Mercy hospitals most common form of lung cancer Ⅲ The Ministrelli Women’s Heart Health System, physicians looked at to test breast cancer drug A Wayne State University re- — to reduce the chance of develop- Center at William Beaumont Hospital more than 74,000 patients who searcher is investigating the po- ing brain metastases. in Royal Oak has received a were tested for hepatitis B between St. Joseph Mercy Oakland in Ponti- tential of a dietary agent in in- But the study’s co-investigator, $440,000 grant from the drug com- 1995 and 2008. An analysis found ac and St. Joseph Mercy Hospital in hibiting the growth and spread of Benjamin Movsas, M.D., Henry pany Novartis to study early signs that age was the only significant Ann Arbor are seeking women pancreatic cancer. Ford’s chairman of the department of heart disease in men and predictor for pancreatic cancer. with advanced breast cancer to Fazlul Sarkar, Ph.D., professor of of radiation oncology, said in a women who have diabetes and “We looked at the incidence of participate in a clinical trial to test pathology in the Barbara Ann Kar- statement that preventive brain high blood pressure. pancreatic cancer among hepatitis a novel drug in the treatment of an manos Cancer Institute at Wayne State radiation does not increase sur- The study is led by Beaumont’s B-infected patients over a 13-year aggressive form of breast cancer University School of Medicine is look- vival and has no significant im- Pamela Marcovitz, M.D. Other re- period and found that we could not that has spread beyond the breast. ing at the potential role of B-DIM, a pact on quality of life. searchers include faculty at the confirm a higher risk for those The experimental targeted drug small molecule found in leafy veg- Movsas presented the report last University of Michigan Medical with a previous exposure to he- is called BSI 201. etables, for use in pancreatic cancer month at the 51st annual American Center, Wayne State University Health patitis B, as a prior study suggest- When used with traditional prevention and treatment. Society for Radiation Oncology meet- Center and Wayne State’s medical ed,” said Jeffrey Tang, M.D., gas- chemotherapy that damages the “Our lab has shown that B-DIM ing in Chicago. school and Beaumont endocrinol- troenterologist at Henry Ford cancer cell’s DNA, the trial drug can significantly inhibit the path- Previous studies have found this ogists and cardiologists. Hospital and lead author of the selectively blocks a cancer cell’s ways that are instrumental in the preventive type of external beam Researchers are seeking 50 pa- study, in a statement. ability to repair itself and causes it progression of pancreatic cancer,” radiation therapy that treats the en- tients with Type 2 diabetes and An estimated 800,000 to 1.4 mil- to die. Sarkar said in a statement. “Now tire brain — known as prophylactic high blood pressure who do not lion people have chronic hepatitis To participate in the trial, pa- we want to better understand the cranial irradiation — can reduce have advanced heart disease to B infection, according to the Cen- tients must have metastatic triple effect of this molecule on several the risk of cancer spreading to the participate in the study. ters for Disease Control and Preven- negative breast cancer, have com- genes essential to cancer progres- brain in patients with non-small For more information, call the tion. In 2007, an estimated 43,000 pleted no more than two rounds of sion and elucidate exactly how B- cell lung cancer as well as its sister Beaumont’s Ministrelli Women’s people in the United States were chemotherapy treatment, and DIM works.” disease, small-cell lung cancer. Heart Center at (248) 898-4760.

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in-househospice.com Teresa Keyes, RN Stacey Sarkozi, LPN Julie Everett, RN Nancy Nichols, RN Cora Ellis, LPN, Janet Holtquist, 24-Hour Referral Lines CHPLN LPN Office: 800.311.5365 U Fax: 800.451.6524 Whether your loved one is in a facility or at home, these are the In-House clinical staff who will be In-House Hospice was there to provide your after hours care. named a Detroit Free Press 2008 & 2009 Top Work Place. 20091207-NEWS--0024-NAT-CCI-CD_-- 12/4/2009 10:03 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS December 7, 2009 Health Care Extra Illinois company files to provide helicopter ambulance service Elmhurst, Ill.-based Superior Am- If approved, the helicopter Letters of intent: gency department, $20 million. bulance Service Inc. filed a letter of CON Roundup would serve a variety of regional Ⅲ Henry Ford West Bloomfield Hos- Ⅲ DMC-Harper University Hospital, intent with state regulators in No- hospitals and respond to 911 emer- pital, West Bloomfield Township, Detroit, renovate surgical operat- vember to begin helicopter ambu- gency calls, said Mary Franco, add second fixed MRI, $775,951. ing rooms, $15 million. hangar space at Oakland County In- lance service in Southeast Michi- vice president of Superior. Ⅲ Oakwood Hospital and Medical Ⅲ 3D Maxillofacial Imaging Cen- gan. ternational Airport, maintenance Other selected certificate-of- Center, Dearborn, add MRT (“cy- ters P.L.C., Bingham Farms, initi- The company’s initial applica- and salaries. need filings and decisions from berknife”) unit, $4.8 million. ate dental CT scanner, $199,067. tion for a certificate of need, filed Superior offers conventional November can be found at Ⅲ University of Michigan Health Ⅲ DMC-Huron Valley-Sinai Hospital, with the Michigan Department of ambulance service in Illinois, Indi- www.michigan.gov/mdch. System, Ann Arbor, replace one Community Health in July, says the ana and Michigan, and runs an air catheterization lab, $1.9 million. Commerce Township, renovate company would spend $1.6 million ambulance in Chicago. The compa- Decisions: space for additional private to initiate the service. That would ny operates in Michigan through Ⅲ Approved, Surgical Institute of rooms, $6.6 million. include equipment for the heli- its Roseville-based Superior Air- Michigan, Westland, new outpa- Applications: Ⅲ Wilmar Convalescent Home, Uti- copter, leased through Shreveport, Ground Ambulance Service of Michi- tient facility with two operating Ⅲ DMC-Sinai-Grace Hospital, De- ca, replace nursing home and relo- La.-based Metro Aviation Inc., gan Inc. affiliate. rooms, $3.7 million. troit, renovate and expand emer- cate 91 beds from other nursing homes, $9.8 million. Ⅲ Michigan Center for Oral Surgery, Woodhaven, initiate den- tal CT scanner, $62,000. Ⅲ Henry Ford West Bloomfield Hos- pital, add fourth CT scanner, $408,150. Ⅲ Waterford Surgery Center, out- patient facility acquired by The Waterford Surgical Center L.L.C., PREVENTION $5.2 million. INTENTION — Compiled by Gabe Nelson Health Care Briefs Henry Ford gets marrow program reaccredited

Henry Ford Hospital’s bone mar- row transplant program has been reaccredited by the Foundation for Accreditation of Cellular Therapy for demonstrating an exceptional lev- el of patient care and medical and laboratory practices. FACT-accredited programs en- sure that all aspects of bone mar- row transplantation meet certain quality standards for patient care, cell collection, processing and storage and administration. Henry Ford is one of three Michigan hospitals accredited by FACT. Other news Ⅲ The University of Michigan Cen- ter for Sleep Science is now one of just three institutions to be named Better health, lower costs. a Comprehensive Academic Sleep Pro- 7HEN¬EMPLOYEES¬ARE¬HEALTHIER ¬ITS¬BETTER¬FOR¬EVERYONE¬¬4HATS¬WHY¬ALL¬OUR¬PLANS¬COVER¬PREVENTIVE¬CARE ¬ gram of Distinction by the American Academy of Sleep Medicine. AND¬OUR¬AWARD WINNING¬WELLNESS¬AND¬CASE MANAGEMENT¬PROGRAMS¬ALL¬FOCUS¬ON¬HEALTH¬IMPROVEMENT¬ Ⅲ Six Southeast Michigan hos- pitals have been selected for Thom- AND¬MEASURABLE¬RESULTS¬¬,OOK¬TO¬0RIORITY¬(EALTH¬FOR¬INNOVATIVE¬SOLUTIONS¬THAT¬ARE¬AFFORDABLE ¬EASY¬TO¬USE¬ son Reuters’ 100 Top Cardiovascu- AND¬CAN¬HELP¬YOUR¬EMPLOYEES¬BE¬HEALTHIER¬¬#ALL¬YOUR¬AGENT¬OR¬0RIORITY¬(EALTH¬AT¬¬ ¬OR¬VISIT¬ lar Hospitals for 2009, a distinction that recognizes lower rates of mor- priorityhealth.com¬¬&IND¬OUT¬HOW¬YOU¬CAN¬GET¬MORE¬OUT¬OF¬YOUR¬EMPLOYEE¬HEALTH¬PLAN ¬EASILY tality and complications and high- er quality than comparable hospi- tals: Providence Hospital and Medical Center, Southfield; St. Joseph Mercy ® Hospital, Ann Arbor; Henry Ford Ma- Life just got a little easier. comb Hospitals, Clinton Township; St. Joseph Mercy Oakland, Pontiac; William Beaumont Hospital, Troy; St. John Macomb-Oakland Hospital, War- 0 0 / ¬ s ¬ ( - / ¬ s ¬ 0 / 3 ¬ s ¬ ( 3 ! ¬ s ¬ ( 2 ! ¬ s ¬ & 3 ! ¬ s ¬ $ % . 4 !,¬s¬6)3)/. ren. dbpagead.qxd 12/4/2009 11:51 AM Page 1 20091207-NEWS--0026-NAT-CCI-CD_-- 12/4/2009 11:53 AM Page 1

Page 26 CRAIN’S DETROIT BUSINESS December 7, 2009

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

EMPLOYMENT CALENDAR Help for Workshops for entrepreneurs The following workshops will For more information, e-mail p.m., Troy. Learn the options be held at the college’s Troy and [email protected] or when facing foreclosure. Register Detroit SCORE Chapter 18 is Novi campuses. The Troy cam- go to www.walshcollege.edu at www.walshcollege.edu job seekers holding workshops this week for pus is at 3838 Livernois Road, be- /takecharge. /takecharge. entrepreneurs. They include: tween Big Beaver and Wattles Ⅲ Thursday: “Crisis Planning: Ⅲ Dec. 14 and 16: “Keyboard- Ⅲ Tuesday: “CEO Round- roads. The Novi Campus is at Household Budgeting,” 8:30-11:30 ing,” 9-11:30 a.m., Troy. Are you areerWorks is a weekly table,” a discussion among CEOs 41500 Gardenbrook Road, north a.m., Troy. Tips to help attendees still hunting and pecking? Learn collection of advertis- and SCORE counselors on topics of 11 Mile Road, south of I-96 and through this personal financial basic typing techniques. Knowl- C ing, news and informa- chosen by attendees. It happens 9 west of Meadowbrook Road. crisis. Register at www.walshcol- edge of basic word processing tion geared toward readers in a.m.-12:45 p.m. at the Bloomfield Participants can use the cer- lege.edu/takecharge. helpful but not necessary. Regis- career transition or looking Township Library, 1099 Lone tificates given at workshop com- Ⅲ Friday: “Crisis Planning: ter at www.walshcollege.edu for new jobs. Pine Road, Bloomfield Hills. Cost pletion to waive application fees Foreclosure Information,” 3-4 /takecharge. Included in our coverage: is $150. Call (313) 226-7947 to reg- to Walsh College degree pro- “CareerTransition,” high- ister. grams. lighting a person who has Ⅲ Wednesday: “Planning Your Ⅲ Tuesday and Dec. 15: “Social made a successful leap from Own Business.” This workshop Media for Job Seekers,” 10:30 CareerTransition a.m. to noon, Troy. Each session one profession to another; a discusses how potential entre- will offer opportunities to partic- calendar of job- and training- preneurs should do the research Name: Renee Suci, 42. and planning necessary for writ- ipate in hands-on workshops. related events; and news sto- Education: Bachelor’s degree in business ad- ing a comprehensive business Laptops are helpful but not re- ministration from Michigan State University. ries affecting the job market. plan and starting a successful quired. To register online, go to Past career: Administrator in the financial CareerWorks is also online. business. Featured are interac- www.walshcollege.edu/takecharge industry, most recently as director of opera- On our Web site, at tive discussions with SCORE and click on the link. tions at Troy private-equity firm Arthur Zaske & www.crainsdetroit.com/ counselors. It takes place 8:45 Associates. She left the position in February. careerworks, you can post an a.m.-12:30 p.m. at the Southfield New career: Owner of the St. Clair Shores anonymous résumé and at- Public Library, 26300 Evergreen CAREER CALENDAR GUIDELINES franchise of Plato’s Closet, an upscale used- tract employers. You can Road. Cost is $45. Call (313) 226- clothing store aimed at customers in their Hosting a job fair, holding a teens and 20s. The store buys its inventory scan the newest jobs from our 7947 to register. seminar on starting a business area or all of Michigan. You or résumé writing, or helping job from the public for about 30 percent of the can set up e-mail alerts so seekers in some other way? Renee Suci store’s sale price. Walsh College, Ford Fund Why she decided to change careers: Suci had al- whenever a job that interests E-mail announcements to Gary Former career: offer free classes to jobless Piatek at [email protected] or Administrator in the ways planned to invest in her own business. you is posted, you’ll know Jeff Johnston at financial industry She said she decided to accelerate the process about it. Walsh College, through a grant [email protected]. Events New career: after the death of her father, a tool-and-die shop Employers can post jobs or from the Ford Motor Co. Fund, is of- should be focused on helping a Owner of a used- owner who frequently pushed her to become search résumés for talent fering free “Take Charge” work- job seeker find employment and clothing store an entrepreneur. “I thought, ‘My dad would they seek. shops in December for workers be open to the public or to love for me to work for myself and have my alumni of a college. in transition. Additional courses own business,’ ” she said. will be offered in 2010. How she made the transition: Suci and her hus- band, an automotive engineer at Robert Bosch L.L.C. in Farmington Hills, researched fran- chise opportunities. They decided the econom- ic climate was favorable for Plato’s Closet, CAREER MOVES which has about a dozen franchise-owned loca- tions in Michigan. Though shoppers are skimping on their FINANCE REAL ESTATE LEGAL clothing budgets, they still want name-brand CFO/Controller/CPA with 28 years of experience clothing, Suci said. Very reasonable rates for personal or business United States District Court, Eastern District of “Resale was something we thought was a taxes/accounting. Call Dean K. Gomoll at Michigan - Deputy Court Administrator 248-697-6333 or email [email protected] Vacancy Announcement at great concept,” she said. “Plato’s Closet looks 100% COMMISSION www.mied.uscourts.gov like a regular retail store. It doesn’t look like a resale store.” Advertise your Join First Commercial’s new program The Deputy Court Administrator is second-in- designed for qualified agents. command and acts in the absence or unavailability After signing the franchise agreement and Products and Services in of the Court Administrator; exercises full finding a location, Suci hired an advertising Contact David Greene for a confidential supervisory and management control of the four firm to send postcards announcing the store’s Crain’s Detroit Business appointment at [email protected] major departments of the Clerk’s Office: Court Operations, Court Services, Human Resources, opening to younger patrons in Macomb Coun- and Information Technology; is responsible for ensuring that shared administrative services ty. The store started purchasing clothes in Au- provided by Court Services, Human Resources, gust and opened in September. and Information Technology are provided timely and efficiently to judges’ chambers, the Clerk’s Obstacles overcome: The average employee at Office, Probation Department, and Pretrial Services Plato’s Closet is about 18 years old and has lit- Agency; and is responsible for managing projects across all court units and shared administrative tle work experience, which initially posed a services. The Court currently has 21 District challenge for Suci, who was used to working Judges, 9 Magistrate Judges and more than 350 with middle-aged staff. Having worked behind employees (includes chambers staff, court reporters, Clerk’s Office, Probation Department and the scenes in human resources, payroll and ac- Pretrial Services Agency). The Court’s main office counting, Suci also didn’t have much experi- is located in Detroit, with divisional offices in Ann Arbor, Bay City, Flint and Port Huron. EOE ence dealing with customers. She said she was- n’t sure how to handle a customer who Call Us For Personalized complained the store wouldn’t buy jeans de- Service: (313) 446-6068 signed for older women. “Being out front and dealing with the cus- CLOSING TIMES: Monday 3 p.m., tomers is challenging,” Suci said. “I like peo- one week prior to publication date. ple, but it’s something different every day.” Please call us for holiday closing times. Advice for others: “Find something that you FAX: (313) 446-1757 E-MAIL: [email protected] love to do to make work a little bit easier,” Suci INTERNET: said. And if you’re starting your own business, www.crainsdetroit.com/section/classifieds she added, “have a lot of patience, because Confidential Reply Boxes Available you’re going to work a lot.” PAYMENT: All classified ads must be If you have made a similar change in your ca- prepaid. Checks, money order or Crain’s credit approval accepted. reer, or know someone who has made an inter- Credit cards accepted. esting career transition, contact Andy Chapelle, See managing editor at Crain’s Detroit Business, at Crainsdetroit.com/Section/Classifieds [email protected]. for more classified advertisements 20091207-NEWS--0027-NAT-CCI-CD_-- 12/4/2009 10:05 AM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 27

PEOPLE CONSTRUCTION of marketing and public relations, dising; Mike Zambricki to vice presi- SUPPLIERS Goodwill Industries of Greater Detroit, dent and general counsel, from chief Craig Savage to IN THE SPOTLIGHT Dwight Hansell to director of sales, Detroit, remaining vice president of vice president and human resources and legal officer; marketing and program management, Detroit Mayor Dave Bing has named business development and commer- regional office Gary Duncan to vice president of hu- AVL Powertrain Inc., Plymouth, from Andre DuPerry to the new position of cial operations. man resources, from director of hu- manager, Gannett chief procurement officer. director of program management. Fleming of Michi- man resources; and David Van Elslan- DuPerry, 52, has more than 30 David Brown to chief procurement offi- gan Inc., Detroit, Robert Boyle to der to senior director of years of experience in General cer and vice president of supply chain, from senior pro- executive direc- merchandising, from director of store Motors Corp.’s purchasing and Masco Corp., Taylor, from vice presi- ject manager. tor, Furniture merchandising. dent of global logistics and fulfillment, supply chain management Bank of South- operations, most recently as a Bill Dandy to senior vice president, mar- Dell Inc., Round Rock, Texas. DISTRIBUTORS eastern Michigan, director in GM’s indirect material keting, Borders Group Inc., Ann Arbor, Scott Stein to di- Pontiac, from di- from executive vice president, market- purchasing department. rector of develop- rector of national ing, Mattress Firm Inc., Houston. Also, Savage He graduated from Michigan State ment and commu- PEOPLE GUIDELINES accounts, RKA Pe- Art Keeney to senior vice president, University and from the executive nications, Greater troleum Cos. Inc., Romulus, from man- store operations, from senior vice presi- Announcements are limited to development program at Detroit Agency ager of global derivatives origination, Northwestern University in Evanston, dent, marketing; and Larry Norton to se- management positions. Nonprofit BP America Inc., Warrenville, Ill. for the Blind and Ill. Visually Im- nior vice president, merchandising for and industry group board Boyle MARKETING paired, Detroit. adult trade and children’s books, from appointments can be found at troit, from associate publisher and re- senior vice president, merchandising www.crainsdetroit.com. Send Steven Landry to OEM advisory board, maining editorial director. REAL ESTATE and distribution. submissions to Departments, R.L. Polk & Co., Southfield, from execu- Crain’s Detroit Business, 1155 tive vice president NONPROFITS Jessica Presner to marketing director for Village of Rochester Hills lifestyle Gratiot Ave., Detroit, MI 48207- of North Ameri- Peggy O’Hare- center, Robert B. Aikens & Associates SERVICES 2997, or send e-mail to can sales and mar- Vance to L.L.C., Birmingham, from assistant Lisette Poletes to [email protected]. keting, Chrysler statewide market- marketing director. CEO and board Releases must contain the person’s Group L.L.C., ing manager, Hos- member, Global Southfield. pice of Michigan, name, new title, company, city in RETAIL LT Inc., Troy, from Detroit, from which the person will work, former professional MEDIA marketing repre- Cathy DiSante to vice president of ad- title, former company (if not health care repre- sentative for Oak- vertising, Art Van Furniture, Warren, promoted from within) and former Peter Brown to sentative, Pfizer land County, from director of advertising; also, publisher, Auto- Inc., East Lans- city in which the person worked. Bloomfield Hills. to vice president of motive News, Amelia Ellenstein ing. Photos are welcome, but we cannot Crain Communi- Lindsay Chalmers visual merchandising and store de- guarantee they will be used. Brown cations Inc., De- O’Hare-Vance to vice president sign, from director of visual merchan- Poletes

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Small Business Administration ranking is based on the 2009 Coleman Report 500 for Top 50 7(a) Lenders by Number of Loans and Loan Volume in Ohio and West Virginia and Number of Loans in Indiana and Michigan, for fiscal year end on September 30, 2009. The Huntington National Bank is an Equal Housing Lender and Member FDIC. ®, Huntington® and A bank invested in people.® are federally registered service marks of Huntington Bancshares Incorporated. ©2009 Huntington Bancshares Incorporated. 20091207-NEWS--0028-NAT-CCI-CD_-- 12/4/2009 10:07 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS December 7, 2009

BUSINESS DIARY CALENDAR

ACQUISITIONS largest Catholic hospital in New Eng- Law Enforcement Intelligent Devices land, renewed its PeopleSoft managed L.L.C., Auburn Hills, will install its TUESDAY Attorneys Title Agency, Farmington SEMINAR: HOW TO MOVE INTO services software agreement with Di- locker system and Biometric Control Hills, announced it will merge with DEC. 8 mensions Systems, Walled Lake. System at the U.S. Department of Seaver Title Co., Bloomfield Hills. Health and Human Services’ National Stem Cells: The New Frontier of Med- MEDICAL DEVICES INDUSTRY Production Plus Talent Management AT&T, Dallas, will enter into a five- year, $2.6 million contract for wireless Institutes of Health, Bethesda, Md. ical Science. 11:30 a.m.-1:30 p.m. De- The final Crain’s Detroit Business Services, Detroit, Chicago, and Los and applications with United Road Picometrix L.L.C., Ann Arbor, and Ad- troit Economic Club. With Eva Feld- Emerging Sectors event of 2009, Angeles, has acquired The Talent , the Russell N. DeJong Professor Services, Romulus, a vehicle logistics vanced Photonix Inc., Ann Arbor and man designed to help companies Shop, Bingham Farms. of Neurology, University of Michigan provider. Camarillo, Calif., will supply high- diversify into the medical devices Health System. Westin Book Cadillac, Ricardo plc, West Sussex, U.K., a tech- speed optical receivers to a leading industry, begins at 1 p.m. Tuesday CONTRACTS OEM telecom systems provider. Detroit. $45 members, $55 guests, $75 at the MSU Management Center in nology provider to the automotive, de- nonmembers. Contact: Jessica BP plc, London, England, has signed a Troy. fense, transport and new-energy in- The Quell Group, Troy, will provide Wayland, (313) 963-8547; e-mail multiyear contract with Kelly Ser- dustries, will enter into a contract strategic communications and mar- [email protected]; Web site Speakers are vices Inc., Troy. The outsourcing and with KATE L.L.C., Moscow, Russia. Ri- keting services to four Michigan busi- www.econclub.org. to include consulting group of Kelly Services cardo plc is the parent company of Ri- nesses, including AutoBeat Inc., De- Michael Witt, will manage BP’s temporary labor and cardo Inc., Van Buren Township. troit, Michigan Security Network, entrepreneur in independent contractors. Decus Strategic Communications Royal Oak, On-Site Specialty Clean- residence and Energy Conversations Devices Inc., L.L.C., Clarkston and Charlotte, N.C., ing & Restoration L.L.C., Detroit, and lecturer in the Studio 2 Dental Design, Kentwood. WEDNESDAY Bloomfield Hills, and MP2 Capital, a communications company offering University of San Francisco, Calif., will develop services in marketing, public rela- DEC. 9 Michigan-Flint rooftop solar projects in Ontario, EXPANSIONS tions, media, research, polling and po- Family Business: Was the Rug Pulled School of Canada. litical consulting, has six new clients: Neithercut Philanthropy Advisors From Under You? 7:30-9:30 a.m. Uni- Management; ProTekPark, Cincinnati, a designer of Associated Obstetrics and L.L.C., Detroit, has opened an office in versity of Michigan-Flint School of Michael solar frames and solar canopies, has Gynecology, Clarkston and Pontiac; Chicago to service its growing num- Management. Learn how to retool and Tanner, retained Identity Marketing & Publica- Witt Brandmotion, Grand Rapids; Autostra- ber of clients in the Midwest. The reinvent your family-run business. director, tions, Bingham Farms, for the launch ta.com, Grand Rapids; Red Bow company creates strategies for phil- Complimentary breakfast for new at- technology department, William of its new product. Photo, Charlotte, N.C.; The Sphinx Or- anthropy for foundations, charitable tendees who are with family-run and Beaumont Hospitals’ ganization, Detroit and New York; and Davis & Davis Interior Design, Farm- individuals and professional advis- closely held businesses. Ramada commercialization center; and Wear Master Muffler and Brakes ington Hills, an interior design com- ers. Plaza Hotel (formerly the Hilton), others. pany, has signed a contract with The Shops, Royal Oak. Troy. Free. Reservations required at A session moderated by the Berline Group, Bloomfield Hills, for MPRR, Southfield, and Bluerock Real MOVES [email protected] or (810) 762-0001. marketing services. Michigan Manufacturing Estate, Southfield, Phoenix, and New Arbor Hospice’s downriver office The Business Improvement Team, York, selected Qualitech, Bingham Technology Center featuring from Trenton to 21645 Allen Road in companies that have successfully Shelby Township, a consortium of in- Farms, a technology integrator and Woodhaven. dependent consulting firms, has software reseller, to provide computer diversified into the medical device Armada Real Estate Services from THURSDAY added both Michael A. Campian, Lake services. sector will conclude the Farmington Hills to 7001 Orchard Orion, who provides part-time CFO DEC. 10 conference. A networking session Sonic Automotive Inc., Charlotte, N.C., Lake Road, Suite 110, West Bloom- services, and Plain English CRM Solu- follows at 5 p.m. will subscribe all of its dealerships in field Township. Telephone: (248) 855- Higher Education and Economic tions, Madison Heights, which helps the United States to the identity verifi- 1221. Web site: www. . 4-5:30 p.m. The Oakland County co-sponsors the small and medium businesses with Growth in Michigan cation and electronic document stor- armadarealestate.com. Center for Local, State and Urban Pol- event. customer relationship management. age products of RouteOne L.L.C., Amtech USA, Romulus, an automo- icy; University of Michigan Gerald R. Tickets are $60 each or $55 for St. Francis Care, Hartford, Conn., the Farmington Hills. tive company that has a marketing Ford School of Public Policy. With Lt. groups of five or more. For relationship with Asian OEMs, will Gov. John Cherry; Mary Sue Coleman, questions or group tickets, call move to 1145 E. Big Beaver Road, president, University of Michigan; (313) 446-0300. Register at Troy. others. Michigan Union, Ann Arbor. www.regonline.com/decworkshop. Free. Contact: (734) 647-4091; Web site: NAME CHANGES www.closup.umich.edu. 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December 7, 2009 CRAIN’S DETROIT BUSINESS Page 29 Ludwig’s plan for C-E: Stay ‘in the hunt’ to keep Chevy, diversify

BY BILL SHEA A new unknown ing world. Two years later, he began work- CRAIN’S DETROIT BUSINESS “I was born into a family of sev- ing with Tony Hopp on Chevy. He Navy account The agency’s relationship with en. All my life I had to break also turned down a chance to work When Bill Ludwig wants to de- Chevy faces a new unknown in the through the clutter,” he said. at the agency’s South Africa office compress from the chaotic “Mad helps keep C-E wake of another General Motors A psychology-turned-writing and instead took a job as an associ- Men” world of advertising, he goes senior management shakeup. Su- major at Western Michigan Universi- ate creative director. fly fishing. san Docherty replaced Bob Lutz on ty, Ludwig was writing sketches The opportunity to do different In fact, his on even keel Friday as head of marketing for with future comedy actor Tim things within the agency is what Facebook pro- the four GM brands. Allen when he had a chance meet- kept him at Campbell-Ewald. file photo is an Bill Ludwig has at least one Lutz, who had been the carmak- ing at a party that led to a job at a “Whenever I felt been-there, artsy shot of front that is stable when he be- er’s outspoken cigar-chomping, company that syndicated ad cam- done-that, there was another op- him with a fish- comes chairman and CEO of ad jet-flying marketing boss since paigns to car dealers. portunity,” he said. ing rod in hand. agency Campbell-Ewald on Jan. 1: postponing retirement in the sum- A year later, in 1980, he joined And on Jan. 1, he gets the “I’m very pas- In May the U.S. Navy renewed its mer, now becomes an adviser to D’Arcy-MacManus Masius as a copy biggest opportunity yet. sionate about estimated $800 million, five-year interim CEO Edward Whitacre. writer working on Pontiac. Four “The auto industry may not al- the religion of recruiting advertising and mar- Just prior to the shakeup, Lutz years later, he was hired as a se- ways be fun, but it’s never dull,” fly fishing,” he keting contract after a nearly called Ludwig “a competent ad ex- Ludwig nior copy writer at Campbell- he said. said. “It re- yearlong mandatory review. ecutive” and his replacement of Ewald and first worked on a Bill Shea: (313) 446-1626, quires just enough concentration The Navy account is C-E’s sec- Hopp as “no biggie” in an e-mail Corvette launch. [email protected] to cleanse your mind from any- ond largest, after Chevy. from Los Angeles, where he was thing else.” Campbell-Ewald, which has speaking in place of newly re- These days, that anything else is about 1,100 employees, ranked signed GM CEO Fritz Henderson Chevrolet. Ludwig — who created fourth last year with estimated at the L.A. auto show. or helped birth the “Like A Rock,” revenue of $210.5 million on Ludwig said he’s met with Lutz, REAL ESTATE “Heartbeat of America” and “An Crain’s list of advertising and but declined to say what was said. American Revolution” campaigns marketing agencies. However, Lutz met with GM’s ad for Chevy — is the chief creative The past few years have seen agencies on July 14 and is reported AUCTIONS and strategic officer at Warren- a series of wins and losses. to have said the Chevy work was based advertising agency Campbell- In October, it picked up on- “too lifestyle-focused,” according Ewald and on Jan. 1 becomes its line dating Web site Match.com. to Crain’s sister publication Adver- Luxury Absolute Auction chairman and CEO. Match.com spent nearly $75 mil- tising Age. 6HOOLQJ7R+LJKHVW%LGGHU The agency has been Chevy’s lion in domestic measured me- What Docherty’s assumption of agency of record since 1922, and dia last year and $37 million marketing duties means for the ad the General Motors Co. brand is its over the first six months of 2009, agencies is unclear. She was largest client — to the tune of more according to industry reports. named head of sales in October, than $700 million annually. The agency won financial ser- which she’ll continue to handle. But in the wake the GM’s Chap- vices giant USAA a year ago. There are big dollars at stake: ter 11 bankruptcy this summer, USAA’s annual media spend is The automaker has spent that relationship has frayed to the believed to be about $50 million. $495.3 million on advertising the point that the automaker in Octo- That partially made up for brand so far this year, compared to ber opened bidding on select losing $100 million-plus in cre- $795 million for all of 2008, accord- Chevy assignments to anyone — a ative and media work for Farm- ing to New York City-based ad move unthinkable a few years ago. ers Insurance Group after 12 years spending trackers TNS Media Intelli- Held on-site Saturday, December 19th at 11am Campbell-Ewald and its 1,100 to The Richards Group, Dallas. gence. Preview and Registration at 10am employees have other whale-sized Further offsetting the Farm- That’s the most of any GM brand 0RXQWDLQ5DQFK5HWUHDWDW&DVV/DNH*ULQQHOO‡:DWHUIRUG7ZS0, clients, but the Chevrolet work is ers loss was getting the local me- during a time when the domestic 6XQGD\2SHQ+RXVHV what has defined C-E for 87 years. dia-planning business for Buffalo auto industry is reeling. The GM December 6th from Noon-3pm And the coming years could de- Wild Wings in November 2008. board approved more spending re- December 13th from Noon-3pm fine Ludwig’s legacy. That work is believed to be cently, too. 3ULYDWHVKRZLQJVDYDLODEOHXSRQUHTXHVW worth about $25 million. Over the first 11 months of 2009, :LOO HQWHUWDLQ DOO SUHDXFWLRQ RIIHUV In October 2008, GM consoli- Chevy’s new U.S. vehicle sales

Page 30 CRAIN’S DETROIT BUSINESS December 7, 2009 Trading down: Budget-conscious execs give up their luxury rides ■ From Page 3 “We’ve been seeing a lot of cus- cations. “What this shows is that chases account for 6.5 percent of $400,000 in revenue this year, a said. “We all know how well that tomers going into a transaction people are finding new ways of cut- expenditures, behind only food slight increase from last year’s went over for the Big Three in more cautiously,” he said. “In ting their bills.” and insurance (including retire- revenue of $350,000. Washington (D.C.).” many cases they are going for a ve- Wassmann’s lease payment was ment) expenditures. Schuster said business types are hicle with less equipment on it to more than $1,000 a month — his Duperon said she and her hus- also moving away from high-end achieve the payment they desire.” largest expenditure next to his band were living above their luxury as a sign of solidarity in Hold fast hope Miami-based LeaseTrader.com mortgage and child support. means, calling herself “cash rich.” tough times. Today’s consumers are celebrat- helps consumers transfer their “There was all this pressure Her Jag — with the license plate “They don’t want to show up to ing frugality, holding on to their auto lease to another person. Of its when it came time to write that “CATSROC” — matched her bois- quote someone or even be seen in a money longer and with purpose. nearly 60,000 transactions in 2009, check every month,” he said. “Get- terous, charismatic personality luxury vehicle when the economy The economic spiral has chal- 28.7 percent of lessees unloaded ting rid of (the Porsche) was one of and was an icon of her social sta- is where it’s at,” he said. “They lenged us on what it means to be a then purchased a cheaper lease the smartest moves I’ve made.” tus, she said. don’t want to be that guy.” consumer. through the site. Among Wayne, Transportation accounts for “When I drove the Jag, I was on Wassmann is seeking additional According to a study of the luxu- Oakland and Macomb County 17.6 percent of all Americans’ an- display, and with the Taurus, I’m funding to grow his company. ry car segment by J.D. Power and As- users, 38.7 percent traded down. nual expenditures (13.9 percent of invisible,” she said. “But now, that “I’d be personally embarrassed sociates, luxury buyers are shed- “People are really hurting,” said annual income before taxes), ac- pressure is off and I can concen- to be in front of a client’s or in- ding the big-digit price tags. John Sternal, the company’s vice cording to an April 2009 U.S. Depart- trate on my company and elimi- vestor’s office in my Porsche while Buyers trading down from large president of marketing communi- ment of Labor study. Vehicle pur- nating my debt.” She expects our company was struggling,” he to midsize luxury rides rose nearly 4 percent from 2006 through July 2009, from 12.5 percent to 16.2 per- cent. Midsize luxury drivers are trad- ing down to compact luxury autos, from 10.8 percent to 14.8 percent. Forty-eight percent of con- sumers trading in a luxury vehicle left the luxury segment this year, compared to 44 percent in 2006. “There’s definitely been a trend of buyers moving down,” said Jeff Schuster, J.D. Power’s executive Attention Subscribers: director of global forecasting. “People tend to get more practical in their thinking in an economic Your subscription is even more valuable environment like this.” Jeremy Anwyl, CEO of Santa By January, being a Crain’s Detroit Business Monica, Calif.-based Edmunds.com, said consumers aren’t making subscriber will include: large shifts but are being more pa- tient in their auto search. I The Daily Report – arriving in your e-Mail Inbox every weekday at 3 p.m. “There’s definitely a macro shift If your subscription is current, toward people being more prag- you don’t need to do anything. matic in their car purchase,” An- I Breaking News Alerts – sends the latest breaking news to you as it happens wyl said. “Consumers still want to maintain the standards they are To continue to receive these accustomed to, they are just will- I Crain’s 2010 Digital Edition Book of Lists – available for the first time as subscriber-only benefits, renew or ing to wait longer for the right deal a digital edition, the area’s leading business resource has even more features: subscribe before December 31, 2009 to do so.” search content, link from lists to company Web sites and job pages Anwyl said those on the fence by calling 1-888-909-9111. are also opting for a certified used and it’s easy to print. car — sometimes getting the same make but an older model year. In pre-recession 2007, 16.2 mil- lion new cars and 14.3 million used cars were sold at franchise dealer- ships (independent dealers and private transactions excluded). Year-to-date, new cars sales have plummeted to 8.7 million. Used car sales have also taken a hit, but numbers are higher than new car sales at 10.9 million, according Tom Kontos, executive vice presi- dent of customer strategies and an- alytics at Carmel, Ind.-based Adesa Inc. — the U.S.’s second-largest wholesale car auction service. “Used cars are recession-resis- tant,” Kontos said. “Consumers will gravitate toward used cars in a recession.” Schuster called the act of trading down more of an “extended tempo- rary shift” than permanent trend. “We’re creatures of habit,” he said. “If the economy and personal finances return or show stability, people will edge back into pricier auto segments.” Duperon said she doesn’t plan on buying another new car until her credit debt is paid off, but it will be another Jaguar when it happens. “Cash is king,” she said. “When the time comes, I’ll buy my Jag with cash.” Wassmann also plans to return to the seat of a Porsche. “I’ll need to feel comfortable enough, financially, again,” he said. “But there’s no doubt I’ll get another Porsche.” 20091207-NEWS--0031-NAT-CCI-CD_-- 12/4/2009 5:00 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 31 Bankruptcy: Contracts revamped ■ From Page 1 component companies it has been first for the obvious reason that combining since 2006. HHI now customers don’t like having con- coffee!! claims to be the largest independent It’s not the first tracts imposed upon them, and it supplier of forged and machined “ will negatively impact the future components in North America. time it’s happened, business relationship more seri- opportunity!! But HHI opted not to assume ously than a renegotiation will.” agreements with Aisin Brake, Borg- but it is definitely BorgWarner also reacted to interested?? Warner Inc., Chrysler Group L.L.C., Dana HHI-FormTech’s tactics by suing Corp., American Axle & Manufacturing not the normal the supplier. The original contract Holdings Inc., Ford Motor Co., Eaton was for FormTech to supply forged franchise?? Corp., Federal Mogul Corp., Getrag procedure. and blanked input and output Transmission Manufacturing L.L.C., GM ” shafts to BorgWarner for transfer Powertrain, Linamar Corp., Magna In- Max Neumann, Butzel Long P.L.L.C. case assemblies then sold to Ford Call Jobi Schaeffer ternational Inc., Mahle Industries Inc., Motor Co.’s high-selling F-150 pick- TRW Automotive Holdings Inc., Toyota with Inteva Products L.L.C. and John- up truck, as well as its Explorer (517) 913-1987 or Motor Co. and others. son Controls Inc. after trying for SUV and other vehicles. [email protected] According to sources close to the months to win price increases from The two sides have been negotiat- situation, nearly all of FormTech’s the two customers outside of court. ing a solution outside of court since customers were forced to the nego- In an interview the day the com- the objection was filed in October www.biggby.com tiating table to work out new long- pany filed for protection, Art Var- after HHI told BorgWarner it would term supply agreements as a con- tanian, managing director for both not accept its existing supply con- dition to continue receiving parts Recticel units in North America, tracts and would supply parts on an in the short term. told Crain’s that the goal was to order-by-order basis until a new “The intent of Chapter 11 is to al- use the protection of the bankrupt- supply agreement was reached. If low a company to start over, and cy code as an opportunity to re- an agreement could not be reached, that’s exactly what HHI did with vamp the contracts. HHI would stop shipping parts. FormTech,” said Mark Semer, of “The hope is not to walk away “That is certainly not conducive New York-based Kekst & Co. Inc., in from the business,” he said. to a positive customer relation- a statement e-mailed to Crain’s. Those contracts accounted for ship,” Neumann said. “It is within Kekst is the public relations firm 80 percent of Recticel Interiors’ their rights under the bankruptcy that represents HHI and its parent revenue, but the company said it code, subject to court approval, but KPS Capital Partners. was hemorrhaging about $845,000 is something that I would say is a • • William Wildern, CEO of Farm- per month under the contracts af- last-resort strategy.” Commercial Residential Retail ington Hills-based turnaround and ter sales expectations proved too Neumann said the tactic, which restructuring advisory firm Hydra optimistic as the automotive mar- threatens the continuity of supply Professionals L.L.C., declined to ket sank, according to the motion if the customer doesn’t agree to comment on the specifics of HHI- to reject the contracts filed in Rec- buy under the new terms, may af- • • FormTech. ticel’s bankruptcy case. fect the reputation of a supplier Architectural Glass Ornamental Glass • • But in general, Wildern said But JCI cried foul. and threaten the supplier’s ability Back Painted Glass Decorative Glass • such contractual actions are char- “The debtors do not truly intend to do business long term. Tub & Shower Enclosures Stair & Patio • • acteristic of a financial buyer mak- to reject 80 percent of their con- “It certainly may work (to re- Railings Bathroom & Kitchen Sinks • • • ing a play for a distressed auto sup- tracts and sustain massive damage structure) existing contracts, but Faucets Countertops Water Walls • • • plier with the intent of building a claims,” JCI said in its objection it’s going to be hard to imagine a Glass Flooring Glass Tiles Windows • • larger company with a better shot filed with the court. “Instead, they customer that’s been subjected to Curtain Wall Cabinet Inserts Marker • • • • at long-term viability. have filed the rejection motion as a that saying, ‘we’ve got this new Boards Tables Mirrors Closet Doors • • • bad faith ‘surprise’ attack in an ef- program, let’s give it to HHI.’ ” Partition Walls Room Dividers Stairs During that process, such owners • put “the need to make money and fort to create a hostage situation But, Wildern said such circum- Back Splashes Doors be sustainable as a requirement to and obtain extra-contractual con- stances are not uncommon and do business and maintain longer vi- cessions from the customers.” rarely jeopardize the future busi- ability first, knowing that they In the objection, JCI’s attorneys ness viability, as long as both par- can’t be a supplier if they put their say that rejecting the contract, stop- ties work in good faith. We do service work for all glass plans in jeopardy,” Wildern said. ping the flow of parts in the process, The very nature of the modern products mentioned above and “What we’ve seen (emerging would cause ramifications up and just-in-time delivery and sole- correlating hardware over the last five years) are in- down the automotive supply chain. source supplier status-quo of the FREE vestors bringing capital to the Because suppliers generally rely auto industry creates an environ- • Estimates & Design Consultations table to help preserve an industry on a single company for a specific ment in which the continuity of • Specializing in Custom Installations 313.928.0428 in deep distress, but at the same part and those parts are delivered supply is frequently threatened SHOP time trying to prevent themselves to assembly lines as needed, if any but rarely disrupted. • online @ trainorglass.com/retail from becoming a casualty of the single part doesn’t arrive, “JCI’s And in cases like those seen 7420 Allen Road Allen Park, MI. 48101 distress in the industry.” production will cease within hours with HHI and Recticel, when a sup- or days, sending ripples through- plier puts a contract to a customer out the supply chain,” the objec- to be renegotiated under the pro- ‘Hostage situation’ tion said. tection, and approval, of the bank- Recticel North America made a “It’s not the first time it’s hap- ruptcy court, “essentially what similar move when it filed for pened, but it is definitely not the they’re offering is a forum for the Chapter 11 bankruptcy on Oct. 29. normal procedure,” said Max Neu- buyer and the OEM to work out a NATURAL GAS / PROPANE HEATERS The company’s subsidiary that mann, a shareholder and Chapter commercially acceptable contract, applies polyurethane coatings to ve- 11 bankruptcy attorney at Butzel and if the parties can’t agree to hicle interiors to make plastic mim- Long P.L.L.C. that, it’s a because they feel there ic the appearance of leather, Recti- “Normal procedure is that this is a better alternative.” cel Interiors North America L.L.C., is an absolute last resort, and that Ryan Beene: (313) 446-0315, moved to reject supply agreements you negotiate with your customers [email protected]

Rotor: Affinia seeks federal standards Portable Heaters (Natural or LP Gas) from 16,000 ■ From Page 3 to 4,000,000 BTU’s are available for sale or rent. July lawsuit filed by Affinia and reduce mass, making them sive brake rotors. Also in stock are Ground Thawers and Fans. against competitor Dura Internation- more prone to cracking and failure “Against this background and al Inc., which is based in Rancho with much less wear than original starting in the fall of 2008, Affinia Dominguez, Calif., and is not asso- equipment. embarked on a coordinated mar- ciated with Rochester Hills-based The two sides settled last month. keting campaign to damage the *Lift Truck Fuel* *Temporary Heat* Dura Automotive Systems Inc. Affinia But before the settlement, Dura reputation of companies import- sued Dura International for false contended that Affinia’s safety ing and distributing value after- advertising, saying some of the campaign was more corporate market rotors, and in particular to competitor’s brake rotors fell strategy than public protection. harm IAP’s reputation in the mar- 7200 Inkster Rd. Phone: (313)292-9100 short of the quality promised to Dura said in its counterclaim ketplace,” Dura said in the coun- P.O.Box 35 Fax: (313) 292-5950 the consumer. that Affinia had been losing mar- terclaim. Taylor, MI 48180-0035 www.propaneservices.net The rotors, Affinia said in the ket share recently as more cus- Ryan Beene: (313) 446-0315, suit, were designed to control costs tomers have opted for less-expen- [email protected] 20091207-NEWS--0032-NAT-CCI-CD_-- 12/4/2009 5:40 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS December 7, 2009 Motown: Museum plans Health authority targets rising uncompensated care BY JAY GREENE In a recent survey of Wayne Ⅲ Expanding federally qualified CRAIN’S DETROIT BUSINESS County-based hospitals, Allen said health centers to hospital emer- to build on anniversary uncompensated care totaled gency departments. Options in- The Detroit Wayne County Health $600 million in 2008. clude co-locating a 24-hour health ■ From Page 1 Authority met Thursday to approve a The Michigan Health and Hospital center in an ER or directly adja- tempt a few years back to launch them. The television airing of the 2010 work plan to address the rising Association said $2.1 billion in un- cent to it, placing health center- Motown Center, a $28 million ed- episode attracted even more na- numbers of unemployed and unin- compensated care was provided by employed physicians in the ER or ucational and entertainment tional and international interest sured people who are flooding the state’s 144 hospitals in 2008, a having doctors on call. complex at Woodward Avenue to the museum, Smith said. emergency departments, federally 16 percent increase from 2007. Ⅲ Developing a network of spe- and the Fisher Freeway, there Michael Jackson’s death in qualified health centers and physi- “We are looking at what we can cialty physicians who will volun- was never a plan to late June “was ob- cian offices, said Chris Allen, CEO do differently to reduce the burden teer to provide medical services to move the Motown viously very un- of the health authority. at hospitals because the numbers of Medicaid recipients at the health Historical Muse- That’s what timely and very During the past year, the health the uninsured are growing,” Allen centers or in their offices. um, Smith said. “ sad for all of us authority’s uncompensated care said. “The delivery model cannot Michael Kobernick, M.D., an Gordy and the people want. here,” Smith said. committee, chaired by Nancy sustain where we are going.” emergency physician at St. John Ma- city abandoned the It allowed the Schlichting, CEO of Henry Ford Of Wayne County’s 1.9 million comb Hospital in Warren, is coordi- plan in 2007, citing They like coming museum to be a Health System, has been working on people, more than 350,000 are on nating the effort among physician lack of funding. place to get more initiatives to reduce the growing Medicaid and 300,000 are unin- leaders at each hospital system in Regardless of ex- to the ‘Holy information not charity care burden and to provide sured. Southeast Michigan, Allen said. pansion plans go- only about extra revenue to Wayne County’s The health authority’s 2010 Jay Greene: (313) 446-0325, ing forward, the Grail,’ ‘the little Michael Jackson five underfunded health centers. work plan includes: [email protected] museum will re- but also about oth- main in its origi- house that rocked er Motown artists. nal location on In the month af- West Grand Boule- the world’ here at ter Jackson’s sud- vard, Smith said. den death, about “That’s what Hitsville. 12,000 people visit- Highway funds: State short on match people want. They ” ed the museum, up ■ From Page 1 like coming to the Audley “Kano” Smith Jr., from an average of ‘Holy Grail,’ ‘the Motown Historical Museum about 8,000 people projects, decrease by 575 the num- little house that who usually come ber of bridge projects planned for POTENTIAL EXITS rocked the world’ here at each month during the summer, work, and reduce numerous other Michigan’s inability to draw down available federal highway money could state areas and programs. Hitsville,” he said. in tandem with local family re- delay or eliminate proposed construction on road and bridge projects Smith, a member of the muse- unions, Smith said. Steudle said the biggest and around the state. In metro Detroit, projects potentially affected from 2011- um’s board for the past 20 years, The increased attendance, in- most immediate impact would be a 2014 include: served as COO from January creased sales at the museum’s significant reduction in road and Detroit/Wayne County Highway between I-75 and 2006 until his promotion to CEO revamped gift shop and the “Mo- bridge projects, both repair and re- ■ Telegraph Road. in April. town 50 Golden Gala: Live It construction. On I-275, work on nine bridges between Hannan and Plymouth Macomb County Robin Terry, a Crain’s 40 Un- Again,” which attracted more The lowered investment would, roads. ■ der 40 alumna who served as ex- than 750 attendees, helped the in fiscal 2011 alone, lead to an esti- Bridge and interchange ■ On I-94, rehabilitation of eight rehabilitation at the M-59/Crooks mated 47 percent drop in highway ecutive director and chair- museum’s revenue rebound bridges between West Grand Road interchange. woman, continues to chair the slightly, Smith said. program-related jobs, from 17,070 Boulevard and Trumbull Avenue. ■ Six miles of resurfacing on I-94, in the current year to 8,988. The museum’s board. Only about 20 percent of the mu- ■ Five areas of Southfield Freeway between M-29 and the St. Clair Before joining Motown, Smith seum’s revenue comes from job tallies include direct jobs such bridge replacements. County line. as construction workers on site as served for 10 years as CEO of the grants and fundraising, Smith ■ Reconstruction of the I-75/Dix ■ Nearly five miles of resurfacing former Barden International Inc., a said. The remainder comes well as jobs generated indirectly, Toledo Road interchange near on I-94, between Stephens Road Namibia, Africa-based company through ticket and gift shop sales. such as with suppliers and service Southgate. and Masonic Boulevard. that imported Chevrolet vehicles In 2008, the museum’s revenue providers, Steudle said. ■ Reconstruction of I-96 between Washtenaw/Livingston counties “Ultimately, it’s devastating,” from General Motors Corp. and con- fell to $691,325 from $983,774 the Telegraph and Middlebelt roads, ■ Resurfacing of 7.8 miles of M- verted them to right-hand drive, year before, after it scaled back its said Mike Nystrom, vice president and between Middlebelt and 14, from Earhart Road to the primarily for fleet customers, but annual fall gala in recognition of of government and public rela- Newburgh roads. Washtenaw County line. also for sale to the general public. the collapsed economy and need to tions for the Michigan Infrastructure Oakland County ■ Road and bridge resurfacing on Founder Don Barden sold the divert resources to the larger 2009 and Transportation Association. ■ Resurfacing of 8.6 miles of Dixie U.S. 23. company at the end of 2005 when event, Smith said. Individual con- And those workers are going GM decided to focus its interna- tributions also declined last year. elsewhere, Nystrom said. Source: Michigan Department of Transportation draft five-year transportation program tional attention more on China The museum had to freeze hir- “We talk about a brain drain in than Africa, Smith said. And that ing due to the decline, but was terms of other industries. There is Matt Marsden, press secretary Rep. Dick Ball, R-Laingsburg, on brought the Detroit native Smith able to maintain its 11 employ- certainly a brain drain going on in for Senate Majority Leader Mike transportation-funding bills, and home and to the helm of the Mo- ees, he said. our industry as well. These are Bishop, R-Rochester, said, “We do she hopes to introduce them in town museum. The museum ended last year skilled employees who have a sig- recognize that there’s issues there, January. “I just have to move In spite of the economy, about with a deficit of $2,297, after a nificant amount of experience they that we need to deal with that, and these things forward. We can’t 60,000 people visited the museum deficit of $218,599 in 2007. Its net are taking to other states.” it will be dealt with before 2011. wait. We need to be addressing this during its fiscal 2009 ended Sept. assets or fund balances were Debate over Michigan trans- But I’m not sure that a tax in- issue.” 30, up from the average 45,000 to $1.58 million at the end of 2008, portation funding has risen in re- crease, across the board, is the an- She said upcoming funding mea- 50,000 annual visitors, Smith said. down from $1.8 million at the end cent years in the Capitol and at lo- swer.” sures would probably include a About 20 percent to 25 percent of 2006. Revenue figures for fiscal cal levels but failed to progress far He said Senate Transportation cents-per-gallon increase in the of the museum’s visitors are from 2009 ended Sept. 30 were not yet amid concerns over higher taxes Committee Chairman Jud Gilbert, gasoline tax rather than the whole- other countries, with a large num- available, Smith said. and other considerations, and R-Algonac, is working on the issue sale tax idea, and increased regis- ber of them coming from Britain, Smith said he has no doubt such pressing crises as the state and expects to address it soon. tration fees. She said the package Ireland and Scotland. that there will be a residual bene- budget. Marsden said transportation and overall would probably generate “We are incredibly loved and fit from the increased exposure Recommendations reached a infrastructure is a priority, and close to the $1.8 billion over several exalted by the Brits,” Smith said. and attention the museum got year ago by a public-private state having good roads is important to years that was previously proposed. “They still have radio programs this year as it segues into its 25th transportation task force, includ- attract business. Nystrom said he is concerned completely devoted to Motown year in 2010. ing measures that could eventual- House Transportation Commit- that the Legislature may be tempted music.” “We are riding the excitement ly raise some $1.8 billion for Michi- tee Chairman Pam Byrnes, D- to only come up with the $84 million He attributes much of the in- and attention Motown and the gan roads and bridges, have been Chelsea, established work groups in matching funds needed in fiscal creased attendance in 2009 to the museum received as a result of brought up for committee discus- that have been tackling various ar- 2011 and then “feel like their job is media attention surrounding Mo- Motown Record’s 50th anniver- sion in Lansing, but no bills have eas of the proposed package, and done,” Nystrom said. “That is not a town Records’ 50th anniversary sary into a similar set of projects passed. she had hoped to have bills intro- solution. That is putting a Band-Aid celebration. The museum kicked that will commemorate the muse- A package announced in May in- duced this fall. on a broken bone.” off its celebrations in January um’s 25th anniversary,” he said. cluded: Replacing Michigan’s 19- But transportation funding was Funding problems are driven by while international media were The museum next year plans cent gas tax with a percentage tax among many issues put on the a convergence of factors that in- focused on Detroit for the North to launch two new exhibits fea- on the wholesale price of gas; alter- back burner in the latest crisis clude declining gas-tax revenue, American International Auto Show. turing Marvin Gaye and ing and raising vehicle registra- over the state budget, and at pre- caused in part by people driving It also began inviting Motown Michael Jackson and will tion fees; increasing truck fees; al- sent, lawmakers are consumed less, buying more fuel-efficient alumni — singers, songwriters, reprise the success of its celebri- lowing Michigan to contract with with another issue — passing edu- cars or using more mass transit; a producers, talent developers — to ty docent tours, Smith said. private companies that might take cation reforms that would enable weakened economy that’s led to a come to the museum to serve as “It’s going to be hard to top over responsibility for building — Michigan to apply for as much as reduced amount of vehicle regis- celebrity guest docents. 2009, but we’re certainly going to and receiving revenue from — $500 million in federal education tration revenues; and higher In March, the museum hosted start planning for a gala event of road and transportation projects; dollars in the U.S. Department of Ed- prices for commodities such as as- eight of the 10 American Idol fi- equal quality.” and measures to encourage local ucation’s “Race to the Top” compe- phalt, concrete, steel and salt. nalists, with Smoky Robinson Sherri Begin Welch: (313) 446- coordination and joint planning tition. Amy Lane: (517) 371-5355, and Gordy coming to mentor 1694, [email protected] and investment. Byrnes said she is working with [email protected] 20091207-NEWS--0033-NAT-CCI-CD_-- 12/4/2009 5:02 PM Page 1

December 7, 2009 CRAIN’S DETROIT BUSINESS Page 33 Palace Sports: Economy forces change of strategy www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] PALACE SPORTS & ENTERTAINMENT MANAGING EDITOR Andy Chapelle, (313) 446- This is not a great (Metro Detroit 0402 or [email protected] “ Venues Former teams “ ASSISTANT MANAGING EDITOR/FOCUS Jennette has) been Smith, (313) 446-1622 or [email protected] market Ⅲ The Palace of Auburn Hills: Ⅲ Detroit Shock: WNBA expansion BUSINESS LIVES EDITOR Michelle Darwish, (313) (24,276 seats): William Davidson team founded by Davidson in 1998 446-1621 or [email protected] for minor led a group of private investors in for $10 million. Won titles in 2003, harder COPY DESK CHIEF Gary Piatek, (313) 446-0357 building the $70 million home for 2006 and 2008. Sold to a Tulsa, or [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) league the Detroit Pistons and concerts. Okla.-based investor group in hit, for 446-1608 or [email protected] Opened in 1988. Recently spent October. Terms not disclosed. DATA EDITOR Anne Marks, (313) 446-0418 or $25 million on upgrades. [email protected] sports. We Ⅲ Tampa Bay Lightning: Acquired obvious WEB GENERAL MANAGER Alan Baker, (313) 446- Ⅲ DTE Energy Music Theatre for $98 million in 1999 and turned 0416 or [email protected] seem to be (15,274 seats): Outdoor concert into a Stanley Cup winner with reasons, WEB EDITOR Christine Lasek, (313) 446-0473, venue in Independence Township improved ticket sales. Sold in 2008 [email protected] EDITORIAL SUPPORT Robertta Reiff (313) 446- a major opened in 1972 as Pine Knob for $206 million to Los Angeles- but no 0419, YahNica Crawford, (313) 446-0329 Music Theatre. Palace Sports based film and TV producer Oren NEWSROOM (313) 446-0329, FAX (313) 446- league (town). bought it in 1991 and did Koules’ OK Hockey L.L.C. team anywhere in the 1687 TIP LINE (313) 446-6766 ” $6 million in upgrades in recent Ⅲ Other teams: Detroit Fury (2001- REPORTERS years, and a total of $33.5 million 2004, Arena Football League; co- Ryan Beene: Covers auto suppliers, steel, higher Tom Wilson, world has escaped the education and Livingston and Washtenaw has been invested since it was owned with William Clay Ford Sr. of counties. (313) 446-0315 or [email protected] Palace Sports & Entertainment acquired. the Detroit Lions); Detroit Vipers recession. Daniel Duggan: Covers retail, real estate and Ⅲ Meadow Brook Music Festival (1994-2001, International Hockey hospitality. (313) 446-0414 or ” [email protected] for minor league sports. We seem (7,500 seats): Has operated and League); Detroit Neon/Safari managed the venue owned by (1994-1997, Continental Indoor Andy Appleby, General Sports Jay Greene: Covers health care, insurance and the to be a major league (town).” and Entertainment L.L.C. environment. (313) 446-0325 or Oakland University since 1994. Soccer League). [email protected]. That’s a philosophical shift. In Chad Halcom: Covers law, non-automotive the 1990s and into this decade, for- league hockey and soccer teams manufacturing, defense contracting and Oakland Current teams Other also came and went at the Palace and Macomb counties. (313) 446-6796 or mer Palace Sports and Pistons [email protected]. owner William Davidson, who Ⅲ Detroit Pistons: Davidson Ⅲ Palace Promotions: Promotional over the years. bought the National Basketball agency for both Palace Sports Tom Henderson: Covers banking, finance, died in March, owned minor “We were always looking to ex- technology and biotechnology. (313) 446-0337 or Association team for $8 million in events and outside promoters. [email protected]. league football, soccer and hockey pand and take on different oppor- 1974. Now run by a five-person Ⅲ Locker Room: Retail stores for Nancy Kaffer: Covers small business, the city of teams in addition to the Shock. He board and valued by Forbes at tunities. It was just a different Detroit, Wayne County government. (313) 446- the Pistons. Locations at the time, not just with Bill Davidson 0412 or [email protected]. also owned the National Hockey $480 million. Won NBA Palace, Great Lakes Crossing in but with the viability of these op- Bill Shea: Covers media, advertising and League’s Tampa Bay Lightning, championships in 1988, 1989 and Auburn Hills and Prime Outlets in marketing, entertainment, the business of sports, which he sold last year. 2004. Birch Run. tions,” Wilson said. and transportation. (313) 446-1626 or “Today, in this city at this time [email protected]. Ⅲ Asheville Tourists: Class-A Ⅲ Palace Publications: Handles Nathan Skid: Multimedia reporter. Also covers the Colorado Rockies affiliate acquired sales and publication of materials with this economy, none of these food industry. (313) 446-1654, [email protected]. Protecting value in 2005 as part of an equity swap for Pistons, Shock and the music things make sense.” Sherri Begin Welch: Covers nonprofits and Several industry sources have with the owners of the Tampa Bay venues. Others in the pro sports indus- services. (313) 446-1694 or [email protected] LANSING BUREAU valued Palace Sports at about Storm of the Arena Football League. Ⅲ Palace Creative Group: Does try aren’t surprised to see PS&E Talks to sell the Tourists in 2010 Amy Lane: Covers business issues at the Capitol, $750 million, and Forbes estimates internal and outside print and cutting back. telecommunications and utilities. (517) 371- have been under way for six graphics work. “This is probably the first time 5355, FAX (517) 371-2492, [email protected]. or the Pistons to be the centerpiece, months. 115 W. Allegan, Suite 220, Lansing 48933. with a value of $480 million. I’ve seen it worldwide, that teams ADVERTISING The National Basketball Associa- Source: Palace Sports & Entertainment, Crain’s research are down in ticket sales and spon- ADVERTISING DIRECTOR Marla Downs, (313) tion franchise and PS&E have suf- sorships,” said Andy Appleby, 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) fered several economic blows, said. “Like any organization in then switched to the teams paying chairman and CEO of Rochester- 393-0997 however. based General Sports and Entertain- ADVERTISING SALES Jeff Anderson, Matthew J. transition, it’s all workable.” salaries while retaining more ad Langan, Lori Tournay Liggett, Tamara Rokowski, The team’s 259-game sellout He called the board a “commit- revenue, Wilson said, which put ment L.L.C. and majority owner of Kimberly Ronan, Dale Smolinski streak ended last season, and 35 tee of interested parties” who de- the Shock in the red. an English professional soccer CLASSIFIED SALES (313)-446-0351 Palace Sports front-office staffers bate and discuss major issues af- “It made sense from a theoreti- team. MARKETING MANAGER Irma Clark “In metro Detroit, it’s been hard- EVENTS MANAGER Nicole LaPointe (out of 400) lost their jobs while de- fecting PS&E, such as the Shock cal point of view, but from a practi- MARKETING ARTIST Sylvia Kolaski partments had to trim budgets by sale. cal standpoint it didn’t work,” he er hit, for obvious reasons, but no SALES SUPPORT Suzanne Janik, YahNica Crawford 10 percent, according to weekly in- What he called “simple and day- said of the business model switch. team anywhere in the world has CIRCULATION Candice Yopp, Manager. dustry trade magazine Sports Busi- escaped the recession.” MARKETING COORDINATOR Kim Winkler to-day decisions,” he handles him- Michigan’s warm summers also PRODUCTION MANAGER Wendy Kobylarz ness Journal. self, he said. kept fans outside and away from Appleby, who had to trim £1 mil- PRODUCTION SUPERVISOR Larry Williams, Season ticket renewals declined, “It’s gone very well, very the Palace. lion ($1.6 million U.S.) from his (313) 446-0450 and ticket prices were trimmed smoothly. It’s just different. The “(The Shock) just never translat- team’s budget this year, was a se- CUSTOMER SERVICE nior vice president at Palace MAIN NUMBER: Call (888) 909-9111 or write 10 percent to 15 percent overall — decisions you made (in the past), ed into that critical mass you were [email protected] and up to 50 percent for some sea- you made with a phone call. Bill going to need to maintain it in Sports during the heyday of sports SUBSCRIPTIONS $59 one year, $98 two years. experimentation there. Out of state, $79 one year, $138 for two years. son tickets. and I would talk every day,” he tough times,” he said. Outside U.S.A., add $48 per year to out-of-state Wilson told SBJ that he thought said, an arrangement made possi- Low ticket prices were also self- “The idea was to leverage the rate for surface mail. Call (313) 446-0450 or staff that was there in more of a 12- (888) 909-9111. gate revenue would decline 20 per- ble by “faith, confidence and trust” defeating. SINGLE COPIES: (888) 909-9111. cent this season, but he declined to built up over the years. “It was a “The tickets were affordable month season versus just basket- REPRINTS: (800) 290-5460, ext. 125; (717) 399- ball,” he said. “We could stage 1900, ext. 125; or ashley.zander@theygsgroup say what the total predicted rev- conversational sort of relation- enough that you could afford not to .com. enue would be. Last season, Forbes ship.” come,” Wilson said, chuckling. events, be it sporting events or TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. put team revenue at $160 million. While Karen Davidson has the The Shock would have folded af- concerts, and we could park cars controlling ownership of the Pis- ter this season, but the WNBA was and gain the revenue from that CRAIN’S DETROIT BUSINESS IS PUBLISHED BY tons, minority stakes are held by able to arrange a deal that trans- and concessions, and add value to CRAIN COMMUNICATIONS INC. Internal changes sponsorships and suites.” CHAIRMAN Keith E. Crain Ethan Davidson, Warren Coville, ferred ownership to a Tulsa, Okla.- PRESIDENT Rance Crain Davidson’s fortune — Forbes Bud Gerson, Dorothy Gerson and based investor group led by Palace Sports’ shedding satellite SECRETARY Merrilee Crain last year ranked him as the 62nd- William Wetsman, Wilson said. William Cameron, chairman and assets is similar to what’s going on TREASURER Mary Kay Crain richest American, worth $5.5 bil- Executive Vice President/Operations CEO of Oklahoma City-based Amer- in the wider businesses communi- William A. Morrow lion — came from his ownership of ican Fidelity Assurance Company. ty, said Andrew Zimbalist, profes- Group Vice President/Technology, Auburn Hills-based Guardian Indus- Spark sale Smith College Manufacturing, Circulation The team will play at Tulsa’s BOK sor of economics at in Robert C. Adams tries Corp., an automotive and Some of those conversations be- Center next season. Massachusetts, author of several Vice President/Production & Manufacturing building glass supplier. sports finance books and editorial Dave Kamis tween Wilson and Bill Davidson Wilson declined to discuss fi- Chief Information Officer His death sparked structural involved selling the Shock in 2002, nancial terms of the deal. board member of the academic Paul Dalpiaz change within Palace Sports. but they held off at the request of Journal of Sports Economics. Corporate Circulation/Audience Development Director Management of the company then-new coach Bill Laimbeer, “During good times, corporate Kathy Henry transitioned from what Wilson has who promised a championship Divestiture trend bottom lines get fatter and they G.D. Crain Jr. Founder (1885-1973) called a “democracy of one” to a that he delivered in 2003 and then The Shock sale was the second have a lot of assets and they begin Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: five-person board of directors (as again in 2006 and 2008. major Palace Sports divestiture in to look to expand themselves,” he 1155 Gratiot Ave., Detroit MI 48207-2732; (313) per Davidson’s arrangements, Despite winning titles, the team less than two years. said. And when times turn sour, 446-6000 which are similar to what was set those acquisitions often go on the Cable address: TWX 248-221-5122 AUTNEW DET didn’t deliver profit. Davidson had Davison also sold the Tampa CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 up for Guardian Industries). paid $10 million for the new fran- Bay Lightning, to Hollywood pro- auction block. is published weekly, except for the first week of July, the fifth week of August, the fourth week of On the PS&E board are Wilson; chise in 1998. ducer Oren Koules, for a reported It would take a “quantum shift” November, the third week of December and a special issue the fourth week of August by Crain Davidson’s widow, Karen David- The Shock made money during $206 million in February 2008. in the economy before PS&E will Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, son; Ethan Davidson (William its inaugural season, but that’s Davidson had bought the franchise consider new teams today, Wilson MI and additional mailing offices. POSTMASTER: Davidson’s son from a prior mar- said. Send address changes to CRAIN’S DETROIT when the Women’s National Basket- in 1999 for $98 million and had re- BUSINESS, Circulation Department, P.O. Box riage); and estate trustees John ball Association paid all player portedly lost $80 million despite “If things make sense, you never 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Aaron and Eric Garber. salaries and retained revenue winning the Stanley Cup in 2004. say never. You just don’t say now,” Entire contents copyright 2009 by Crain “Any time you have an owner- from major advertising segments, An Arena Football League team, he said. Communications Inc. All rights reserved. Reproduction or use of editorial content in any ship transition by sale or death, Wilson said. co-owned with Detroit Lions owner Bill Shea: (313) 446-1626, manner without permission is strictly prohibited. it’s going to be different,” Wilson The league’s business model William Clay Ford Sr., and minor [email protected] 20091207-NEWS--0034-NAT-CCI-CD_-- 12/4/2009 5:38 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS December 7, 2009 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 28-DEC. 4 spotlight on itself Tuesday when it staged the third an- Former auditor nual D Show awards. DPS, teachers COOL PLACE TO BE The sometimes-irreverent black-tie event at the Max M. Fisher Music Theatre saw more union reach general blasts than 700 of the region’s top creatives gather to see their work honored. tentative deal Southfield-based Universal Images took the best-in-show he Detroit Public Bing’s plans Schools and the Detroit award for its visual effects T Federation of Teachers work on a History Channel s Detroit’s auditor hatchet when the situation series, the “Art of War.” Oth- reached a tentative labor general, Joseph Harris calls for a scalpel. Mayor er big winners were Team De- agreement that is expected A earned a reputation Bing will continue to pursue to save the district $28 mil- troit in Dearborn, Warren- as a policy wonk who wasn’t strategic initiatives to re- based Campbell-Ewald and lion in health care costs afraid to speak his mind. duce and ultimately elimi- Ferndale’s Drive Solutions Inc. and about Now in private practice, nate the $325 million accu- $30 million in other expens- The awards event is a pro- ARA HOWRANI Harris — who served as De- mulated deficit inherited by duction of the D Council, the es. Bob Nelson, motivational speaker and best-selling author, troit’s CFO under interim the administration,” said Adcraft Club of Detroit commit- DFT members will not tells attendees why it’s important to focus on worker Mayor Ken Cockrel Jr. and Dan Lijana, a Bing communi- tee that oversees the awards receive a pay raise for the satisfaction in tough times at Crain’s Cool Places to Work in was replaced after Cockrel cations manager. judging. first two years of the three- Tough Times event Wednesday at Emagine Theatre in Novi. lost to Mayor Dave Bing — is Meanwhile, one city finan- year deal, followed by a 1 Nelson will be the keynote speaker at a free online conference still speaking out. cial move on Harris’ watch percent increase the third “Road to Recovery, HR Strategies for 2010” sponsored by Harris provided Crain’s has been recognized by a fi- Will ‘Red Dawn’ feature year with an additional 2 Crain’s sister publication Workforce Management on with reports critical of the nance publication. percent possible, depend- Wednesday from 10:30-11:30 a.m. To register, go to www.workforce.com/conference/roadtorecovery. city’s comprehensive annual The Bond Buyer recog- a Blue Light Special? ing on state aid and student financial report, Bing’s turn- nized Detroit at its annual Since 2005, development enrollment. Union Presi- employees — a fifth of the ruling on Realcomp’s prac- around team recommenda- “Bond Buyer Deal of Year plans have been in place for dent Keith Johnson said solar technology compa- tice of limiting listings tions and Bing’s deficit elim- Award” banquet last week the future of the vacant for- the goal is to have teachers ny’s workforce — in re- from home sellers who paid ination plan. in New York. mer Kmart Corp. headquar- ratify the pact before they sponse to a sharp drop in for multiple listing services “The administration’s pro- The city of Detroit won ters in Troy. leave for break Dec. 18. revenue. with the option of selling posed deficit elimination the first-time national Demolition of the building After posting net income the home themselves. plan is quite impressive in award for “nontraditional is supposed to start this Whitacre restructures of $3.9 million in 2008 on In November, the FTC re- that it does an excellent job deal of the year” for its week, but not really in the revenue of $255.9 million, versed an earlier ruling in of presenting the illusion of bond swap agreement — way one would expect. after Henderson’s exit up from $113.6 million in favor of Realcomp. an operating surplus for the tied to the city’s Detroit Re- A tank will be rammed General Motors Co. board 2007, ECD lost $11.8 million State and industry offi- current year and future tirement System Funds’ through a wall, destroying and CEO Fritz Henderson in its first quarter this cials say Congress should years, despite a $69 million $948.5 million bonds, issued the lobby and part of the parted ways Tuesday, the year. Year-over-year quar- launch a $10 billion fund revenue shortfall in the cur- in 2006 — made during Jan- building this week, accord- board upset the automaker terly revenue fell 55 per- from the Troubled Asset rent year with only $17 mil- uary and June of this year ing to real estate sources and was changing too slowly cent to $42.9 million. Relief Program to help pay lion in layoffs,” Harris wrote. under Harris, ending a six- movie blogs. The scene will and Henderson frustrated Ypsilanti-based Daimay for manufacturers trying to “There are several one- month finance battle with be used as part of the dark fu- with second-guessing, the North America Inc. plans to diversify into new indus- time revenues in the plan, bond holder attorneys. ture depicted in the remake Associated Press reported. move and consolidate its tries and expanding the totaling over $100 million, Harris and his team of of the movie “Red Dawn.” Chairman Ed Whitacre Jr. three operations in the state’s Supplier Diversifi- that do not address the city’s consultants reached a deal Actual redevelopment became acting CEO and United States into a recent- cation Fund. The idea was structural imbalance.” with bondholders to offer plans are pending, the last moved quickly to make ly purchased industrial site put forth at a field hearing Harris also criticized un- collateral of the casino wa- coming from Grand Sakwa changes. Announced Fri- in Redford Township begin- of the House Financial Ser- specified expenditures on gering tax through a custodi- Properties L.L.C. turnaround team recom- an — who would hold the day: ning in the first quarter. vices Subcommittee on mendations and restructur- wagering tax until the city’s Engineering chief Sterling Heights-based Oversight and Investiga- ing “opportunities.” $4.2 million monthly bond BITS & PIECES Mark Reuss is now in charge General Dynamics Land Sys- tions at Lawrence Technologi- Harris said Bing’s projec- payment was made. The of GM’s North American tems received a $203 mil- cal University. tions are unrealistic in prop- plan also delayed penalties. Paul Anger, editor and operations. lion contract to equip the The Old Newsboys’ erty tax, state revenue shar- Allen Bass, of counsel for publisher of the Detroit Free Susan Docherty, head of U.S. Army with a next-gen- Goodfellow Fund of Detroit ing, and increasing retiree Lewis & Munday P.C, and Press, has been named win- sales, will become head of a eration fleet of Stryker has raised $537,948 of its health care costs. Harris Donita Crumpler, Detroit in- ner of this year’s Benjamin combined sales and mar- eight-wheeled combat vehi- $1.4 million goal during its said the only solution is vestment manager, were key C. Bradlee Editor of the Year keting department. cles. annual newspaper drive, swift cuts to city services. local people on Harris’ team. Award by the Washington, Bob Lutz, who had been John Laffrey’s Steaks on which runs until Jan. 31. Bing’s administration de- D.C.-based National Press in charge of marketing, the Hearth, 24201 Seven Mile For information: www. nies Harris’ assertions, em- Foundation for the newspa- will remain a vice chair- Road, is closing its doors detroitgoodfellows.org. phasizing that long-term Universal Images takes per’s Pulitzer Prize-winning man and be an adviser on Dec. 31 after nearly 40 Statewide CEO group change is under way. best-in-show honors coverage of the Kwame Kil- global product develop- years of business. Owner Business Leaders for Michi- “We can’t correct years of patrick saga and for his in- ment. Sandy Thompson said the gan has launched a Web mismanagement in one bud- Metro Detroit’s advertis- volvement with the switch to restaurant couldn’t com- site, www.michigan get year or make cuts with a ing community turned the limited home delivery. pete with the pricing of the turnaroundplan.com. ON THE MOVE national chains that have Transport Canada, Fish- Rick Enright has been moved into the area. eries and Oceans Canada and named president of Romu- Delta Air Lines Inc. says the Windsor Port Authority ap- lus-based RKA Petroleum it will add flights from De- proved the environmental Cos. Inc. Enright previously troit and San Diego to Hon- assessment needed for was vice president of sup- olulu beginning in June, Canada to move forward BEST FROM THE BLOGS ply and transportation at the AP reported. with preliminary bridge READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS the company’s Chicago of- The Livonia-based and plaza design work for fice. The position had been Stautzenberger Institute, the Detroit River International vacant since 2006, when which offers training for Crossing project. New United Way offices cool Pugh makes nice in Lansing David Doner resigned. health-related careers, has During October, 120 President Barack Oba- signed a lease to relocate to single-family home permits I had the chance to Detroit Mayor Dave ma has nominated Barbara the Unity Studios develop- were issued in Macomb, get a look around at the Bing wasn’t the only “ “ McQuade, assistant U.S. at- ment in Allen Park and will Oakland, St. Clair and new United Way offices Motor City politico also offer courses aimed at Wayne counties, topping in Detroit, and it’s easily making nice in Lansing torney for the Eastern Dis- the coolest office space last week. Detroit City trict of Michigan, to suc- preparing students for jobs the forecast of 78 by the opened in recent Council President-elect ceed Stephen Murphy III as in the entertainment indus- Building Industry Association history. Charles Pugh was in the U.S. attorney, AP reported. try next year. of Southeastern Michigan. ” capital, too. ” COMPANY NEWS OTHER NEWS OBITUARIES Farmington Hills- Farmington Hills- Marion Cosstick, owner Reporter Dan Duggan’s blog on commercial real estate Reporter Nancy Kaffer’s blog on the city of Detroit can be found at www.crainsdetroit.com/duggan and small business can be found based Energy Conversion De- based Realcomp II Ltd. has of Anna’s Coffee Shoppe in at www.crainsdetroit.com/kaffer vices Inc. (NASDAQ: ENER) decided to appeal a recent Pleasant Ridge, died Nov. plans to lay off about 400 Federal Trade Commission 16. She was 77. DBpageAD.qxd 11/24/2009 9:23 AM Page 1 DBpageAD.qxd 11/23/2009 10:20 AM Page 1

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