20090209-NEWS--0001-NAT-CCI-CD_-- 2/6/20096:15PMPage1 ©Entire contentscopyright2009byCrainCommunicationsInc.Allrightsreserved tection, CFO company toseekcourtpro- credit markets,causedthe factors, combinedwithweak terial costsincrease.Those as thecompanysawraw-ma- Routing Solutions’revenue the U.S.draggeddownFluid in vehiclesegmentmix duction volumeandchanges lion in2008revenue. company posted$211.5mil- Carolina andFlorida.The tions inTennessee,South The companyalsohasloca- Hills andasiteinBigRapids. headquarters inRochester North America,includingits about 1,700atfivelocationsin truded hoses.Itemploys ponents, fuelfillersandex- ponents, fuel-handlingcom- supplies powersteeringcom- tive L.L.C. Fluid RoutingSolutionsAutomo- case alsoincludesaffiliates Holding Corp. Routing SolutionsIntermediate tions’ parentcompany, filed byFluidRoutingSolu- assets, accordingtoamotion company’s remainingU.S. ness andliquidationofthe company’s fuel-relatedbusi- rectors approvedasaleofthe Delaware bankruptcycourt. for Chapter11protectionina in anaffidavit. id RoutingSolutionsInc. Hills-based autosupplier victim FridayasRochester downturn claimedanother Page 3 loan partofcollection, Art ontheroad?DIAmight Page 3 await newsonbridgeplan, Delray businessowners Supplier filesChapter11

NEWSPAPER www.crainsdetroit.com Vol.25,No.6 Inside This JustIn Significant dropsinpro- Fluid RoutingSolutions The company’sboardofdi- The automotiveindustry See ThisJustIn,Page2 and The bankruptcy John Curson Detroit FuelInc. Fluid filed said Flu- years ago,theorchestrawastwice synthesizers insteadofmusicians. productions savemoneybyusing mance orchestrasisshrinkingas because overalldemandforperfor- complement. cal director,tosupplementand Sauro, theFisherTheatre’smusi- with fivemusiciansandlookedto trumpet player.“Spamalot”came a drummerand,sometimes, sists ofaconductor,keyboardist, orchestra, whichnormallycon- “Grease,” theybringtheirtouring rus Line,”“AvenueQ”and come throughDetroit,like“ACho- thanks tothetouringproduction. treated toasteadypaycheck, four otherlocalmusiciansare winning musicalspoof,sheand of theMontyPythonTonyAward- the glitz,glamourandHolyGrail Sauro’s ears. productions with touring tune incash Musicians from touringtheatercompanies. supplement theirincomewithwork Alice Sauroandotherlocalmusicians SPECIAL TOCRAIN’SDETROITBUSINESS “When “Spamalot”cametwo The workisespeciallywelcome Typically, whenbigproductions While audiencesaretreatedto “Spamalot” ismusictoAlice B Y J ULIE See Musicians,Page27 Y OLLES MARK LEWIS/CDB FEBRUARY 9–15,2009 MAMA wantstohelpcompanies transition $209 billionaerospaceindustry, pliers intransitiontosupplythe primarily onassistingautosup- says theorganizationisfocused ufacturers Association tor ofthe tionally servedtheautoindustry. manufacturers thathavetradi- try purchaseorderstoMichigan $100 millioninaerospaceindus- that inthreeyearswillsource turers wantstobecomeapipeline state aerospacepartsmanufac- for supplierpipeline Aerospace groupaims positions overthenextfiveyears fer trainingastheyhireupto 413 tion, filmandgamestudio of- casino intoafull-serviceanima- geles investorswillconvert the Richards andagroupofLosAn- that movieindustryveteran in Detroit. MGM Grand ners arecreatinginthevacant troit CenterStudios animators atthe$86million experience —totrainbecome automotive engineerswithCAD Richards saidshewants— changer thatMichele and computergraphics. doors panelsforcartoons els, centerconsolesand abandon instrumentpan- computer geek,”isreadyto calls himself“abitofa neer NickMcGuire,who Job seekersdrawntoprospectofworkingincartoon,videodesign Gavin Brown,executivedirec- A fledglingtradegroupfor Visteon Corp. The announcementlastweek He’s thesortofcareer CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS AND B B Y Michigan AerospaceMan- Y R temporary casinosite M B YAN ARK ILL design engi- Invasion for B S L HEA EENE she andpart- EWIS , orMAMA, animation De- tially providefinancingto ing ontheeconomiccase,poten- space supplychainand,depend- the nuancesofglobalaero- MAMA membercompanieson partner withMAMAtoadvise Bank signedanagreementto its membercompanies. 340 differentparttypesmadeby in multi-yearsupplycontractsfor generated morethan$13million manufacturers andsofarhas terested insupplyingaerospace is workingwith45companiesin- sociation hasastatewidereach, 10 percentoverthenextyears. which isanticipatinggrowthof8- ground inthearts,havingstarted “Ialsohavesomeback- said. derstanding of3Dmodeling,” he rience. spite nothavinganimationexpe- interest intoanewcareer,de- infrastructure providers. coming fromanimatorsandfilm hook,” Richardssaid,withcalls has openedafloodgateofinterest. “ In lateJanuary,Comerica Based inGrandRapids,theas- “What Idohaveisasolidun- McGuire iseagertogrowhis “The phone’sringingoffthe This seemslikea design engineer Nick McGuire, to bring (my) opportunity together. interests great ” Page 14 in action, Local programs F can maketheprimesnervous ders. “primes,” toearnpurchaseor- companies likeBoeing,knownas gan supplierswithaerospace trade groupalsoconnectsMichi- translated toaerospace.The and makeproductsthatcanbe bers iftheyarefinanciallysound only admitcompaniesasmem- the aerospaceindustry.They translate theirexpertisetoserve identify areaswheretheycan the aerospacemarket. companies astheytransitionto $2,000 perjobforupto106new po- dio withtraininggrantsofup to ties toconsider.” tolerances, nomaterialproper- siderations, nomanufacturing “Notoolingcon- world,” hesaid. have tobefeasibleinthereal imation —theCADmodelsdon’t traction ofgraphicdesignandan- play. physics, butgetalotofroomto follow thesameprinciplesof lates intoanimationbecausethey engineering backgroundtrans- these twointereststogether.” like agreatopportunitytobring L TRAINING ILM But theautoindustry’swoes MAMA workswithsuppliersto The stateisprovidingthestu- “In fact,thatispartoftheat- He’s hopefulhismechanical . See Aerospace,Page25 See Animation,Page28 $2 acopy;$59year This seems ing toCAD. fore switch- University ern Michigan ship at art scholar- college onan ® East- be- 20090209-NEWS--0002-NAT-CCI-CD_-- 2/6/2009 6:11 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS February 9, 2009

Suppliers are in discussions cording to Fred Solomon, vice presi- DEGC hires Duistermars Granholm creates wind energy with the Treasury Department and dent of communications for Pitts- THIS JUST IN Congress about the urgent need for burgh-based PNC Financial Services The Detroit Economic Growth Corp. advisory council to study sites has named a new business-attrac- ■ aid but have not made a formal re- Group Inc. From Page 1 tion manager, Eric “Dusty” Duister- Gov. Jennifer Granholm has cre- quest, said Ann Wilson, senior vice PNC bought Cleveland-based Na- ated an advisory body to look at president for governmental affairs tional City Corp., for almost $5.6 bil- mars, to court new businesses to Detroit from the suburbs. how and where wind turbines The company is asking the for the Motor & Equipment Manufac- lion in stock and cash shortly after could be placed in the Great Lakes. court to approve $12 million in turers Association. it received an infusion of $7.7 bil- Formerly a senior transaction adviser with UGL Equis Corp. spe- The Great Lakes Wind Council, debtor-in-possession financing Neil De Koker, CEO of the Original lion in cash from the Troubled As- made up of members representing funded by Sun Fluid Routing Fi- Equipment Suppliers’ Association, set Relief Program. cializing in Detroit office broker- age, Duistermars will be recruiting environmental, shipping, fishing nance L.L.C. said the $18.5 billion figure was Last week, PNC announced that, electric utilities, wind energy, gov- The entities’ parent holding part of an informal presentation unlike many of its competitors, it new businesses from the suburbs and the rest of the country. ernment and other interests, will company, Delaware-based Fluid made to the Treasury Department. made money in 2008, $882 million, identify criteria that can be used to Routing Solutions Group L.L.C., He called it a “discussion figure.” compared with net income of $1.5 Duistermars was also the founder of Detroit Office Inc., a non- review applications for offshore did not file for bankruptcy. Suppliers have suggested three billion in 2007. wind development. It will develop — Ryan Beene ways for the government to help. PNC also said it would reduce its profit devoted to bringing busi- nesses to Detroit. criteria to determine areas that are One is to provide General Motors workforce by 5,800. Solomon said favorable for turbine development. Corp. and Chrysler L.L.C. extra feder- the company will not disclose the He was a Crain’s “20 in their Granholm staffer goes to MEDC 20s” honoree for 2008. A report is due by Sept. 1. al loan money so they can pay sup- number of job cuts in Michigan. — Amy Lane A member of Gov. Jennifer pliers earlier. A second is to guar- — Tom Henderson — Daniel Duggan Granholm’s executive office has antee payments due suppliers moved to the Michigan Economic from the Detroit 3 so that the parts Development Corp. to lead small- makers can use the guarantees to PSC to meet on new rules CORRECTIONS business development and at- get new bank loans. The third is to The Michigan Public Service Com- A story on Page 1 of the Feb. 2 issue should have said the first phase of traction. give direct loans to suppliers from mission has scheduled a March 3 a twin span to the Ambassador Bridge had been approved for $212.6 Daedra Von Mike McGhee has the $700 billion originally set aside public hearing to look at changes to million in private activity bonds. The number was incorrectly stated in been named managing director to rescue financial institutions. rules affecting utility customers’ billions. of the MEDC’s business sup- Wilson estimated “we have three ability to supply their utility with A story on Page 28 of the Jan. 26 edition incorrectly stated that Health port services division. She re- weeks” before disruptions in the power they independently generate. Plan of Michigan and Aetna Health Inc. earned lower net income for the first places Penny Stump, who re- supply chain could occur. Compa- The hearing at the PSC’s Lans- nine months of 2008 than in the same period in 2007. Both had higher net tired. Von Mike McGhee was nies are getting about a quarter of ing office involves “net metering” income. Granholm’s director of busi- the revenues they normally would — in which utility customers that In all, four of nine HMOs, not two, posted higher net income for the nine- ness and civic affairs. because so many assembly plants generate their own power can pro- month period. The story and the headline both incorrectly stated that net — Amy Lane were slowed or closed in late 2008. vide excess power to their utility income was down for the majority of the HMOs. — Crain News Service and receive a credit. The hearing The story also incorrectly stated the percentage drop in investment income also will review rules involving as- at Health Alliance Plan. HAP’s investment income declined 79 percent, not Suppliers discuss federal aid 385 percent. pects of connecting independent Representatives of U.S. auto NatCity signs to stick around generators to a utility’s system. On Page 15 of the Jan. 26 issue, the law firm Baker & McKenzie should not have been listed as an adviser on Meadowbrook Insurance Group Inc.’s suppliers and U.S. Treasury De- Despite its sale in October, cus- The PSC is looking at changes to July acquisition of ProCentury Corp. partment officials are dis- tomers can expect to see the Nation- encourage more business and resi- In the Big Deals 2008 Office Leases list on Page 19 of the Jan. 26 cussing government aid of al City name remain on the bank’s dential customers to generate pow- edition, the landlord of the property at 3155 W. Big Beaver Road should about $18.5 billion to help sup- 272 branches in Michigan at least er from sources like wind and sun. have been identified as Nemer Property Group. pliers. through the end of the year, ac- — Amy Lane UP

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February 9, 2009 CRAIN’S DETROIT BUSINESS Page 3 ESD arm seeks Indian model Focus: Business Education

ESD headquar- Symposiums planned to foster collaboration SYMPOSIUM ters in South- field. What: Legal risk BY TOM HENDERSON dispute resolu- which drastically reduces a wide Webb said mitigation CRAIN’S DETROIT BUSINESS tion and is head range of insurance costs for indi- he hopes to of the ESD Insti- viduals and businesses on reserva- Where: ESD in have about 30 Southfield Christopher Webb, director of a tute, flew to Col- tions, as a template for reducing government, new institute announced last week When: March orado on insurance and legal costs in the 19-20 union and in- Need to find work? Colleges, by the Southfield-based Engineering dustry leaders Wednesday to ESD’s proposed enterprise zone. Contact: Society of Detroit, hopes to use meet with attor- “Part of my mission to get on a www.esdinstitute. at the sympo- universities have programs to lessons learned by American Indi- neys of the law plane and go out there is to say, org sium, whose ans in running their sovereign na- firm of Freder- ‘What do you have that we can topic is legal help, Page 11. tions to help rebuild the state econ- icks, Pelcyger, use?’ to see if we can bring their risk mitigation. omy and to create a Michigan Webb Hester & White expertise back to our symposium, He said ESD hopes to host a two- Green Enterprise Zone without L.L.C., which to see if it works in the context of day symposium every three government funding. specializes in Indian Nations law. our culture,” said Webb just before months, with subsequent topics Company index Webb, an attorney who special- Webb said he hopes to use the In- he left, referring to a symposium These organizations appear in this week’s Crain’s See ESD, Page 26 izes in mediation and alternative dian model of dispute resolution, scheduled for March 19-20 at the Detroit Business: Anderson Economics Group ...... 17 Ann Arbor Automotive ...... 19 ArvinMeritor ...... 29 Asterand ...... 4 Atwell-Hicks ...... 19 Automation Alley ...... 18 Baker College ...... 12 Center for Film Studies ...... 14 Bridge plan has Delray waiting Consumers Energy ...... 7 Detroit Federation of Musicians ...... 27 Detroit Institute of Arts ...... 3 Detroit Renaissance ...... 26 Fates of businesses, Detroit Symphony Orchestra ...... 27 Engineering Society of Detroit ...... 3 Great Lakes Towers ...... 19 homes hang on decision Gorno Ford ...... 19 Henry Ford Community College ...... 12 Henry Ford Health System ...... 11 BY NANCY KAFFER Karmanos Cancer Institute ...... 24 CRAIN’S DETROIT BUSINESS Kinetic Post ...... 28 Kovacs Bar ...... 3 Bob Evans is waiting for a check. Kwasny Co...... 16 Evans and wife Delores bought Kovacs Bar in Lawrence Technological University ...... 11 tiny Delray, a neighborhood on Detroit’s west Lockeman’s Hardware and Boats ...... 29 riverfront, about 13 years ago. It was a second Macomb Community College ...... 13 career that Evans, a former Michigan Aerospace Manufacturers Assn...... 1 real estate agent, describes as a Mich. Econ. Development Corp...... 6 FOR SALE? “fling.” Mich. Dept. of Energy, Labor and Economic Growth 19 Mich. Dept. of Environmental Quality ...... 7 ArvinMeritor It’s a fling that’s lost its lus- Michigan Film Office ...... 14 mulls selling ter. Michigan Nonprofit Assn...... 26 Delray tech Layoffs at the Zug Island Michigan Production Alliance ...... 14 center. plants that line Delray’s south- Michigan Suburbs Alliance ...... 7 Page 29 ern border effectively ended MichiGinns Real Estate ...... 19 Evans’ lunch trade. The bar Models & Tools ...... 19 owner says he would have sold five or six years NSS Technologies ...... 25 ago, but the poor economy put an end to those Oakland Community College ...... 12 prospects. Oakland University ...... 11 Oakwood Healthcare ...... 24 Two years ago, Evans learned about the De- Page Toyota ...... 19 troit River International Crossing. People and Land ...... 6 NATHAN SKID/CRAIN’S DETROIT BUSINESS Kovacs Bar is among the 43 to 56 Delray busi- Plex Systems ...... 18 Bob Evans and his wife, Delores, have owned Kovacs Bar for about 13 years. The bar is among 43-56 nesses marked for relocation, should the Michi- Public Sector Consultants ...... 6 Delray businesses slated for relocation if a bridge plan moves forward. He’s waiting for his check. See Delray, Page 29 S3 Entertainment Group ...... 14 Schoolcraft College ...... 12 Southwest Detroit Business Assoc...... 29 St. John Health ...... 24 Stardock Systems ...... 19 Stephen M. Ross School of Business ...... 15 Suburban Collection ...... 19 TechTown ...... 4 DIA may loan out parts of its permanent collection Trenton Forging ...... 25 University of Michigan ...... 15 BY SHERRI BEGIN WELCH unavailable to patrons at the peers around the country for loaning out the Village Ford ...... 19 W Industries ...... 19 CRAIN’S DETROIT BUSINESS collection’s home museum. collection for what ultimately amounted to a The DIA loaned 90 pieces seven-figure sum the DIA put toward renova- Walsh College ...... 11 The Detroit Institute of Arts is considering of its American Beauty col- tions. Wayne County Community College ...... 13 Wayne State University ...... 13 loaning out parts of its permanent collection to lection to Europe a few years “But since then, it’s become a common prac- improve its cash flow. ago and then to a limited tice,” he said. “Traditionally, you’d say this is a last re- number of U.S. museums, be- The “Monet to Dali” exhibit, which ran from Department index sort,” said DIA Director Graham Beal. tween 2002 and 2004 during October through mid-January at the DIA, was The Association of Art Museum Directors — of the museum’s renovation, on loan from the Cleveland Museum of Art. BANKRUPTCIES ...... 6 which Beal is a member —prefers loaning out Beal said. And the Art Institute of Chicago recently BUSINESS DIARY ...... 21 permanent collections for academic rather Beal But it stopped the tour at a loaned a major portion of its impressionist col- CALENDAR ...... 20 than financial reasons, he said. certain point “not because lection to the Kimbell Art Museum in Fort Worth, CAREERWORKS ...... 22 Loaning collections puts the artwork in dan- there weren’t more interested venues, but be- Texas, said Dewey Blanton, manager of media CAPITOL BRIEFINGS...... 7 ger of being damaged from the jostling of re- cause the artworks — painting and sculptures relations at the Washington, D.C.-based Ameri- CLASSIFIED ADS ...... 22 peated transporting, uncrating and installa- — needed to come back and rest,” he said. tion, Beal said, and in some cases, makes them At the time, Beal said he was chided by his See DIA, Page 26 KEITH CRAIN...... 8 LETTERS...... 8 OPINION ...... 8 OTHER VOICES ...... 9 A new blogger Video tour of UM biz school Small talk THIS WEEK @ Reporter Ryan Beene offers insight into See inside the new The smart PEOPLE ...... 23 the auto supplier and steel industries and Stephen M. Ross School businesses face RUMBLINGS ...... 30 WWW.CRAINSDETROIT.COM of Business. 2009 head-on. higher education. WEEK IN REVIEW...... 30 20090209-NEWS--0004-NAT-CCI-CD_-- 2/6/2009 5:10 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS February 9, 2009

What in the World? TAKING STOCK Today, she plays with a beach NEWS ABOUT DETROIT AREA PUBLIC COMPANIES ball. Tomorrow, the weight of the world will be on her shoulders and the shoulders of all our children. What sort of world will it be? Asterand sees first yearly profit, There are men who are committed to building a world that values the worth of the individual, that will allow every child to reach his/her potential. There are men who are wants acquisitions, partnership committed to building a world in Inc., had agreed to license a series of posal 2 in November and by Presi- which morality, character and BY TOM HENDERSON compounds discovered by Asterand dent Obama’s approval of federal traditional values matter. CRAIN’S DETROIT BUSINESS that have promise in treating such funding for research on expanded Who are these men? Asterand plc, a human tissue-bank eye diseases as glaucoma. lines of embryonic stem cells. They are Scottish Rite Masons. company traded on the London Stock Allergan agreed to an upfront “That’s complementary to what Exchange (LSE: ATD) but headquar- payment of $6.25 million with mile- we do. We’re looking at ways to ex- tered in Detroit’s TechTown, has stone payments that could boost pand there, and we’re excited about seen its stock price soar over the the total licensing agreement to the possibilities,” said Coombs, Scottish Rite Masonry last year 12 months, from 6 pence (a $56 million. who said collaboration with an ex- Making a Real Difference! bit less than 9 cents) last February Coombs said he would like to isting company that does cell re- to a close of 17 pence on Friday. eventually list Asterand on the search is a likely way for Asterand Final figures for 2008 won’t be Nasdaq exchange but needed to to enter that business. www.32ndDegreeMasons.org 877.320.6432 released until March 30, but CEO grow the company substantially, When asked if he was in talks Martyn Coombs confirmed for to make the membership fees and with any such companies about a Crain’s last cost of Sarbanes-Oxley compliance joint venture, he said: “We’re in week that the worthwhile. these discussions all the time.” company had Asterand is growing. About two- Coombs said he hopes to further the first prof- thirds of its 90 employees are in De- drive revenue by a new line of itable year in its troit, where Coombs hopes to add business. Asterand recently fin- history. three sales reps, a human resources ished a $2.9 million U.S. Department Coombs said manager, two IT staff and a chief of Defense contract to do an inven- he expects to in- science officer this year. There are tory and quality analysis of the ex- crease the bot- no plans to add to its UK operations. tensive tissue bank at the Armed tom line again Coombs said he is also in negoti- Forces Institute of Pathology in this year and is Coombs ations with Charlton to expand Washington, D.C. on the prowl Asterand’s presence in TechTown, Coombs said there are many both for acquisitions and for a where it already takes up most of biotech and pharma companies partnership to break into the em- the fifth floor. and university researchers that bryonic stem-cell market. One driver for growth is the push have tissue banks but aren’t sure “We’d like to do the acquisitions for large pharmaceutical compa- what tissues are still viable or sooner rather than later,” said nies such as Pfizer Inc. to downsize, even the extent of what they have Coombs, who replaced founder requiring them to outsource more stored, and having finished the Randal Charlton, now the execu- of their work. Companies that used DOD contract, Asterand has a tem- tive director of TechTown, in 2007. to maintain their own stockpiles of plate for doing that work. On Dec. 31, the London Daily human tissue are more likely to or- He said the company will make Mail ran its annual Hero and Zero der it from Asterand, or its competi- a presentation at a National Cancer feature to honor and dishonor the tors, which include German-based Institute conference in Maryland in CEOs of the best- and worst-per- Indivumed Gmbh and California- March and at other conferences forming stocks on the London ex- based Cureline Inc. elsewhere in the year to promote change for the year. Coombs was “We should see 40 percent that business. the hero, Asterand’s stock having growth in our core business year “We hope to build a substantive risen then by 150 percent, from a this year,” said Coombs. business in that area,” said low of 5 pence at the end of 2007. He hopes another driver could be Coombs. Two English research firms rate stem-cell research in Michigan, Tom Henderson: (313) 446-0337, the stock a buy — Edison Investment buoyed first by the passage of Pro- [email protected] February 14th - 22nd Research Ltd. and Daniel Stewart & Co. “Asterand’s transformation has COBO CENTER been driven by a revamped senior management team, which is build- ing on credibility and delivering on STREET TALK promises made a year ago,” said a THIS WEEK’S STOCK TOTALS: 20 GAINERS, 40 LOSERS, 12 UNCHANGED HUNDREDS of Boats & report Edison issued in September. The Stewart report, issued in CDB’S TOP PERFORMERS 02/06 01/30 PERCENT August, projected a target price of CLOSE CLOSE CHANGE Accessories at HUGE Savings! 22 pence. 1. BorgWarner Inc. $21.05 $16.88 24.70 Edison projected net income of 2. Amerigon Inc. 4.26 3.43 24.20 Financing Available! 3.3 million pounds for 2008, follow- 3. Pulte Homes Inc. 12.34 10.15 21.58 ing losses of 8.8 million pounds, 2.5 4. Kelly Services Inc. 10.66 9.06 17.66 million pounds and 1.9 million 5. Asset Acceptance Capital Corp. 4.91 4.19 17.18 Discount tickets and more info available at pounds, respectively in 2005, 2006 6. Caraco Pharm. Laboratories Ltd. 5.27 4.60 14.57 and 2007. www.DetroitBoatShow.net 7. Penske Auto Group Inc. 8.47 7.42 14.15 Currently, a pound is worth 8. Rockwell Medical Technologies Inc. 4.10 3.61 13.57 $1.45. 9. Universal Truckload Services Inc. 14.00 12.36 13.27 Daniel Stewart predicted an op- 10. Kaydon Corp. 30.80 27.20 13.24 erating profit in 2008 of 3.1 million 02/06 01/30 PERCENT pounds. CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE Asterand nearly broke even for 1. TechTeam Global Inc. $4.00 $4.80 -16.67 the first six months that ended June 2. Saga Communications Inc. 4.05 4.41 -8.16 30, with a loss of 61,000 pounds or 6 3. Perceptron Inc. 3.24 3.44 -5.81 pence a share, compared with a loss 4. Syntel Inc. 20.50 21.55 -4.87 of 971,000 pounds or 94 pence for the 5. Eagle Capital Growth Fund Inc. 4.19 4.35 -3.68 first six months of 2007. 6. TRW Automotive Holdings Corp. 3.00 3.09 -2.91 Revenue in the six months was 7. Ramco-Gershenson Prop. 4.82 4.92 -2.03 5.1 million pounds, compared with 8. Credit Acceptance Corp. 17.75 18.05 -1.66 3.6 million for the first half of 2007 9. Tecumseh Products Co. 8.16 8.20 -0.49 and 7.6 million for the full year. 10. Oxford Bank Corp./MI 9.00 9.00 0.00 On Aug. 27, Asterand made an Source: Bloomberg News. From a list of publicly owned companies with headquarters announcement that sent its price in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. soaring, from 7.5 pence to 16 pence — a biotech in California, Allergan DBpageAD.qxd 1/26/2009 3:39 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS February 9, 2009 PAL develops, seeks backers for ‘pillars of prosperity’ to help state

BY SHERRI BEGIN WELCH The other co-director of the ef- units,” said Brad Garmon, land CRAIN’S DETROIT BUSINESS fort is Soji Adelaja, John A. Han- programs director at the Michigan A lot of Michigan’s challenges are nah Distinguished Professor in Environmental Council and a mem- People and Land, a coalition “ Land Policy at Michigan State Uni- ber of PAL’s leadership council. working to spur Michigan’s pros- because we haven’t been ready for the versity’s Land Policy Institute. In the run-up to the 2010 elec- perity, is attempting to forge re- future. PAL is also trying to get Michi- tions, PAL hopes to push a number gional support and action on a ” gan residents to focus on how the of issues it feels are important. It number of initiatives it believes state’s natural and cultural assets has developed what it calls “Six William Rustem, Public Sector Consultants will better position the state for figure into our economic develop- Pillars for Prosperity.” the future. ment strategy, said Julie Bennett, They include: The group has begun meeting PAL, founded in 2000 and funded “A lot of Michigan’s (current) program manager of PAL for Pub- Rebuilding attractive cities with lawmakers, media, chambers by the W.K. Kellogg Foundation, is challenges are because we haven’t lic Sector Consultants. and neighborhoods to attract and of commerce and the broad range seeking both legislative and non- been ready for the future,” he said. “We need to act regionally, to get retain young talent. of PAL’s coalition members to pro- legislative actions, said co-director “The Michigan Economic Develop- more bang for our buck from feder- Supporting highly competi- mote six areas the group has iden- William Rustem, president and ment Corp. has traditionally been al dollars that are expected to tive schools and lifelong learning tified as pivotal for the state’s fu- CEO of Public Sector Consultants in chasing factories, now they’re fo- come into Michigan, rather than opportunities. ture. Lansing. cusing on talent.” acting as individual government Shifting attention to knowl- edge-based technologies for Michi- gan’s future. Strategically planning for a thriving agriculture industry to spur Michigan’s economy. Enhancing and promoting

SM natural resources for recreation and job creation. Creating an inclusive and en- trepreneurial culture. “In the last election, nobody was talking about those things,” Ben- nett said. PAL wants the candi- “I can’t afford health dates to talk about issues it has identified as paramount. Over the past nine years, PAL has made grants to groups work- care for my retirees.” ing on land-use issues in Michi- gan, such as farmland preserva- Sound familiar? In today’s challenging economy, businesses like yours are struggling tion and forestry initiatives. Last fall, it shifted those grants between offering health care to Medicare-eligible retirees and maintaining a healthy to groups working regionally on bottom line. the pillars, awarding $1.3 million total to nine collaborations. Our Medicare Advantage plan, BCN Advantage, can help you do both. Among them was a grant of $75,000 to the Tourism and Economic Development Council of the Metro De- Thousands of Michigan retirees are already enrolled in BCN Advantage through troit Convention & Visitors Bureau for businesses that are realizing significant cost-savings and are providing their retirees “Developing the D,” a project to or- BCN Advantage with outstanding benefits. In fact, a typical employer who offers BCN Advantage saves ganize communities in the region as destination districts for resi- anywhere from 20 percent to 45 percent on retiree benefit costs and enjoys: dents, visitors and investors. In addition, the Michigan Suburbs Alliance, which also received a PAL Benefits grant of $75,000 last fall, will use its s #HOOSEFROMTWOPLANOPTIONSSMALLGROUPSONLY  funds to support its Millennial May- or’s Congress project aimed at en- s #USTOMIZEˆSELECTCOPAYMENTSANDCOINSURANCELEVELS gaging city leaders with the mil- (large groups only). lennial generation. s !DDA"#.COMPREHENSIVEDRUGPLANALLGROUPS THAT 866-966-BLUE Sherri Begin Welch: (313) 446- qualifies as Medicare Part D, and eliminate the hassle of Call (2583) 1694, [email protected] filing for the retiree drug subsidy. or 800-431-7944 (TTY) any Access day from 8 a.m. to 8 p.m. s 4HOUSANDSOFPHYSICIANSINASTRUCTUREDNETWORKOFPRIMARY care physicians, specialists and hospitals to help your or retirees get the right care at the right time and place BANKRUPTCIES Contact your Blues The following businesses filed Travel for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Jan. s %MERGENCYANDURGENTCARECOVERAGEANYWHERE representative or 30-Feb. 5. Under Chapter 11, a com- s #OVERAGEFORROUTINEANDFOLLOW UPCAREFOREXTENDEDSTAYS independent agent. pany files for reorganization. anywhere in the USA Chapter 7 involves total liquida- tion. Quality Stewart’s Menswear Inc., 5368 Dix- ie Highway, Waterford Township, s .#1!ACCREDITATION voluntary Chapter 7. Assets and li- abilities not available s $EDICATED"#.!DVANTAGECUSTOMERSERVICEDEPARTMENT Mathson Industries Inc., 1845 Thunderbird St., Troy, voluntary Chapter 7. Assets: $2.3 million; lia- bilities: $8 million SGB Acquisitions, 1045 Brush St., Detroit, voluntary Chapter 11. As- MiBCN.com/medicare sets and liabilities not available Mexus Transport Inc., 18600 H5883_09 O BCNARetHthCr_013009 Northville Road, Suite 900, Blue Care Network contracts with the federal government and is a nonprofit Northville, involuntary Chapter 7. corporation and independent licensee of the Blue Cross and Blue Shield Association. Assets and liabilities not avail- CDB able. — Compiled by Mark Lewis 20090209-NEWS--0007-NAT-CCI-CD_-- 2/6/2009 5:11 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 7 Plan for coal-plant scrutiny draws fire

LANSING – Contro- gan’s energy demands ment than proposed plants. cost,” Holyfield said. “We’ll now Kevin Elsenheimer, R-Bellaire, versy and questions are should be met through “It is frustrating because we were have to see what we have to do to and Rep. Ken Horn, R-Franken- flaring up over Gov. Jen- Capitol renewable energy and so close to having our draft permits validate that in their eyes.” muth, have asked Michigan Attor- nifer Granholm’s direc- Briefings energy efficiency, and issued. We were within weeks if not DEQ public information officer ney General Mike Cox to issue an tive requiring more that the proposed plants’ days of having that happen, and Robert McCann said the state will opinion on the directive’s legality. scrutiny of proposed emissions of carbon diox- now this is going to cause a delay,” now be able “to take a more com- coal-fired power plants. ide and other greenhouse said Jeff Holyfield, director of news prehensive approach” to applica- The directive, issued gases will exacerbate en- and information at Consumers par- tions, instead of limiting DEQ re- Short takes in conjunction with the vironmental problems. ent CMS Energy Corp. view to air quality requirements. The state Senate has passed a State of the State address Mike Shriberg, policy “It just adds another hurdle to get “This isn’t a moratorium on bill designed to block a proposed er- last week, requires state director of the Ann Ar- over to get the plant permitted, and coal,” McCann said. But he said gonomics rule. Senate Bill 93, ap- regulators to consider bor-based Ecology Center, in our view, it just duplicates the that if the state is to make deci- proved 20-16, would prohibit the factors that include less- said Granholm’s overall process that is going to take place at Amy Lane sions on power in Michigan “for state from establishing its own rule polluting alternatives, energy proposal “would the Michigan decades to come, let’s make sure for workplace ergonomics. The bill before granting air permits. put Michigan among the leading Public Service it’s the right decision and look at now goes to the state House. Republicans are challenging states in advocating for jobs-rich Commission.” everything on the table. And that’s Attorney General Mike Cox on Granholm’s legal authority, and clean energy and moving away Under Michi- what we’re going to do.” Monday asked the Michigan Court of business interests question how the from dirty energy sources. gan’s 2008 ener- McCann said DEQ will analyze Appeals to reverse two rulings that added review meshes with power “The governor put out a bold gy laws, utilities if there “is really a need to build allow Accident Fund Insurance Co. of plant approval processes estab- goal that would completely change must apply to this plant at this time,” looking at America, a for-profit subsidiary of lished by 2008 energy legislation. the energy future of the state, if the PSC to build issues such as customer base and Blue Cross Blue Shield of Michigan, to The broadened scrutiny is part completely implemented,” he said. a plant or enter electricity demand. buy other companies. of an energy platform Granholm But the additional air permit- into a long-term The DEQ also will require an The Michigan Nonprofit Associa- unveiled that focuses on increased ting factors immediately raise the power purchase Holyfield analysis of less-polluting alterna- tion is working with Johns Hopkins renewable energy, gains in energy bar on four coal-fired plants mov- agreement. The tives, such as plants that use still- University in Baltimore to compile a efficiency and reducing Michi- ing through the permitting PSC will review analysis of cus- developing technology to reduce or list of “shovel-ready” projects to gan’s reliance on imported fossil process, the largest of which is tomer demand, technology, costs, capture emissions, other sources get before legislators as they make fuels for generating electricity by Consumers’ proposed 930 timetable and other factors before of electricity generation, energy ef- decisions on economic recovery 45 percent by 2020. megawatt plant near Bay City, ex- issuing a certificate of necessity. ficiency programs or load manage- programs the federal government As Crain’s reported last week, pected to cost more than $2 billion. Holyfield said the DEQ has noti- ment programs to reduce overall will fund. environmental groups battling Granholm has directed the fied Consumers that its permit ap- electricity demand. The Michigan Supreme Court on new coal plants being developed Michigan Department of Environmen- plication is now on hold and will Granholm cites the federal Thursday let stand a ruling that by Consumers Energy Co. and other tal Quality, assisted by the Michigan be considered incomplete. Clean Air Act as giving the DEQ prevents the city of Detroit from utilities had called on Granholm to Public Service Commission, to scruti- “We’ve already done an exten- discretion to consider alternatives selling the Rackham Golf Course issue a moratorium halting per- nize the need for additional elec- sive analysis and determined a to proposed sources of air emis- in Huntington Woods to a housing mits for the plants. tricity generation and all “feasible coal-fired power plant represented sions when determining whether developer, the AP reported. Opponents have said the new and prudent” alternatives that the best option to serve our cus- or not to grant air permits. Amy Lane: (517) 371-5355, plants aren’t needed, that Michi- could better protect the environ- tomers, in terms of reliability and But House Minority Leader [email protected].

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Page 8 CRAIN’S DETROIT BUSINESS February 9, 2009 OPINION LETTERS Granholm should Apology to frustrated job seeker Editor: against the onslaught of negative Crain’s Detroit Business In response to “A tale from the publicity. Rather than join that welcomes letters to the editor. front of the Michigan unemploy- chorus and list all Detroit’s virtues All letters will be considered for listen to commission ment line” written by Jennifer publication, provided they are (of which there are too many to Knighstep (Other Voices, Jan. 26), signed and do not defame enumerate and because of which I the board of directors of the Ma- would live nowhere else), allow me here was much to like in Gov. Jennifer Granholm’s individuals or organizations. comb-St. Clair Workforce Develop- Letters may be edited for length to recount my last two Sundays as State of the State address last week, but then, there it ment Board, members of the admin- and clarity. a snapshot of what makes me love istrative staff of the Macomb-St. this area. T was — another commission. Write: Editor, Crain’s Detroit Clair Michigan Works Agency as The governor said she was asking Lt. Gov. John Cherry to Business, 1155 Gratiot Ave., On Jan. 25, I had the honor of well as contracted staff of Macomb- meeting youth from the Mosaic “lead a comprehensive effort to dramatically change the shape Detroit, MI 48207-2997. St. Clair Michigan Works service Youth Theatre of Detroit. They E-mail: [email protected] and size of state government,” including the reduction of the centers, have expressed a sincere will be doing a show in May called number of state departments from 18 to eight, adding technolo- apology to Ms. Knighstep for frus- “Crossing Eight Mile,” and execu- gy and reforming civil service. tration she encountered while try- We assure Ms. Knighstep and tive director Rick Sperling asked We’d like to stand up and cheer. We really would. It’s the ing to access the No Worker Left Be- the thousands of customers who that I provide the historical popu- hind program. visit a Macomb or St. Clair County kind of structural change the governor has been avoiding lation patterns that have resulted There is never an excuse for the Michigan Works service center while she tinkered around the edges of the budget through her in our city-suburb split. The two frustration she experienced. each month that we are committed hours that I spent were a gift, as Michigan Works service centers first six years of office. (The governor noted in her address to doing better. each of the youths (living in both have an unprecedented number of that she has made more budget cuts than any other previous Charles Shaw Detroit and a variety of suburbs) job seekers visiting each week due governor. We won’t dispute that, but simply note that from Chairman of the Board of Directors provided his-her view of our re- to Michigan’s high unemployment Macomb/St. Clair Workforce Development Board gion. Each showed passion in his- where we sit it has always looked more reactive than part of a rate. Case managers are dedicated, larger plan. The executive budget of 2006, for example, accept- yet sometimes overwhelmed with The riches of Detroit her comments, and I was struck by ed the fact of a structural deficit but relied on fostering eco- their caseload numbers. But, Editor: the fact that these important voic- es are not part of the dialogue. nomic growth as a solution. That’s an important state goal, but everyone visiting our centers de- There have been a number of ar- it’s not a budget strategy.) serves a quality experience. ticles recently defending Detroit See Letters, Page 9 The state of Michigan has had some experience with the governor’s commissions. She has shown laudable willingness to appoint smart, qualified experts to commissions and to con- duct studies, but not nearly the same enthusiasm for adopting their recommendations. TALK ON THE WEB John Bebow notes these among many commissions and From www.crainsdetroit.com studies on a Thursday posting at www.centerformichigan.net: A 2006 local-government commission that proposed ways RE: 2 groups vie for movie studio: Reader responses to stories and RE: Plan to cut agencies, State Fair to promote service sharing and other cost-lowering measures. Over the years hazardous waste blogs that appeared on Crain’s The Michigan Legislature has A panel of budget experts in 2007 that offered ways to cut was not properly disposed of in those Web site. Comments may be lost sight of the fact that they are costs and increase accountability. facilities. This should cause major edited for length and clarity. public servants. In addition to tak- concerns and could cost a fortune ing pay cuts, they need to take In both cases, many good ideas were left on the table. for cleanup. more responsibility for their own Due to report in a few weeks is a commission of financiers, Anonymous could see the kind of revenue film health care. lawyers, and budget experts appointed by House Speaker Andy work gets, I’d vote to give them an in- Anonymous Dillon and Senate Majority Leader Mike Bishop that is finishing Our industry needs the work of pio- centive, too. neers such as S3 and 23rd Street Mark Adler a two-year project to reinvent state government. RE: Senate votes to repeal surcharge Studios as well as the hard work of Will this panel’s work be used in paring the number of the legislators that brought this in- Andy Dillon has already said the state departments? Or will Cherry start from scratch? centive package to life. RE: ‘Let’s meet in the D’ program repeal of the MBT surcharge will have With less than two years left to go before she exits the gov- Anonymous Changing our brand because the to be “revenue neutral,” just as the governor said, meaning any reduc- ernor’s office, Granholm is running out of time to leave state city has suffered manifests a desire to hang a new facade in front of a grim tion in state income will be made government in structurally good shape. From a pragmatic RE: Mary Kramer’s ‘Gran Torino’ blog: up by taxing small businesses reality. We need to clean the grim I believe that tax credits are a some other way. standpoint, she needs to protect her own political future and reality, not pretend it does not ex- that of her party’s next candidate for governor. But the larger great way to bring a portion of the jobs Anonymous related to filmmaking to our state. It’s ist. Let’s leave the “D” to Dallas issue — which we do believe the governor sincerely cares great to have an industry like film- and be ourselves. There should be no Small Busi- about — is that this state needs to see that its leaders can do making that is growing and not Anonymous ness Tax whatsoever. Small busi- the hard work of moving into the future. And it needs to see feeling the downsizing that most ness should not have to carry the bur- that sooner than two or three or four years from now. other industries are experiencing. Perhaps it’s time for the Detroit den of lousy state government. Regional Chamber’s management Granholm has an opportunity to show she’s serious about Roman Nestorowicz Everyone is struggling as it is. conference to meet in Detroit instead This tax destroys any profits for government reform in her budget address this week. We hope If a pharmacy company or auto of on Mackinac Island. small businesses. she takes it. manufacturer or tool and die shop Agostinho Fernandes Anonymous

KEITH CRAIN: Democracy isn’t free, even in Detroit In just a couple of weeks, the facing each other in when we get around to mocratic or Republican candidates. to learn to lower expectations and city of Detroit will have its first of May, we’ll just have to voting. They should The election of the next mayor of do more with less revenue. It is four elections with a huge slate of wait and see. know the candidates and Detroit is critically important for amazing that there is anyone who candidates vying for the top two But the real travesty is the issues. I have often the survival of this city. There are is willing to take on this difficult spots in the first primary for an going to be the turnout suggested that if they going to be some huge budget is- task, much less more than a dozen election for mayor for six months. for this first and perhaps don’t have any idea as to sues as well as governance and ed- individuals. The top two candidates will face the most important pri- the values of the candi- ucation. Chances are almost cer- Rather than dwell on the low each other in the general election in mary election. dates or have never tain that the mayor and the city voter turnout, perhaps it makes May. Chances are pretty good that I have heard numbers heard of the issues, then will become responsible for the De- more sense to hope that the city whoever wins the first six-month that only 15 percent to maybe it’s just as well troit Public Schools. will see 100 percent of educated, in- election is going to have a real ad- 20 percent of the regis- that they don’t vote. It is also certain that the rev- formed voters turn out for this vantage in the next primary and tered electorate will ac- Although that’s con- enues flowing to the city are going first and most important primary. election for the full four-year term, tually vote in that primary. That’s trary to the whole philosophy of get- to continue to fall as taxpayers in It’s an important election for the which will be held in November. sad and disappointing. ting everyone to vote, it certainly the city pay less and less property, future of Detroit but more impor- Although I have my own guesses I have always believed that we makes the most sense in a nonparti- sales and income tax. tantly the future of Southeast as to which two candidates will be need to have an educated electorate san election where there are no De- The next mayor is going to have Michigan and the entire state. 20090209-NEWS--0009-NAT-CCI-CD_-- 2/5/2009 4:53 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Let’s grow the urban appeal of Detroit We can call to spine along Wood- Promising neighborhoods along isting businesses and can attract is working for organizations such mind the chal- ward Avenue and this spine should be identified, and visitors. To jumpstart the ailing as the DIA and the Detroit Zoo. The lenges in Detroit, close by, from city services and support to neigh- residential market, anchor institu- envisioned remodeling of Cobo Cen- but we must also Grand Boulevard borhood associations should inten- tions might collectively fund ter will be a litmus test for our re- remember its at- to the riverfront. sify within these areas so that they rental and mortgage subsidies for gion. Once tackled, it sets the stage tributes: its river- Critical anchors become clean, safe and attractive their employees. for regional cooperation for more front, architec- in the extended to new residents and investment. We can learn from the Chicago arenas. Some private concepts are tural gems, and a Midtown include Yes, this is a form of triage. How- model, says Lou Glazer of Michigan already underway and welcomed. stabilized and po- Wayne State Uni- ever, these times call for bold ap- Future Inc. Essential components of We should find ways, such as light tentially enlarged versity, the DMC, proaches, which may even mean this model include a development- rail, to better connect our central central city em- Bieri Boyle the DIA and Or- relocation of residents to solidify and business-friendly zoning and core, bringing folks from our air- ployment base. chestra Hall. We those regions with the most regulatory environment, contribu- port to destinations like downtown Detroit has an opportunity to re- must strengthen this cluster and promise for livability. tions from many cultures, an invit- Detroit or Ann Arbor, and make it shape itself as a distinctive urban further improve infrastructure and We should stimulate the cre- ing arts and culture scene, quality easier for suburbanites to enjoy a environment that works. As pro- enhance entrepreneurship here. ation of small businesses, loan pro- outdoor spaces, involvement of revitalized city center. fessionals, we would like to offer And with the construction of transit grams, tax credits and other finan- young career people in the commu- The next moves are up to us. observations and suggestions on systems proposed for Woodward, cial incentives to help grow and nity, and good policing. Robin Boyle and James Bieri are where to go from here. the opportunity for “transit-orient- sustain businesses that serve resi- We need more practical regional- co-chairs of Urban Land Institute We already have a strong central ed development” comes ever closer. dents well, have synergy with ex- ism, as has been demonstrated and Detroit.

LETTERS CONTINUED ■ From Page 8 These are our future leaders, but they will be leaders in Chicago, At- lanta, Boston, etc., unless we begin to listen and learn from them. Sev- eral of us have come together with Rick, his staff and youth, to begin planning for community dialogues in April — prior to the show. We hope that youth and adults across the region will join us in this en- deavor. This past Sunday I attended the 12th Annual Sphinx Competition for young black and Latino string players. The Sphinx Organization, developed and led by Aaron Dworkin, has as its vision “a world in which classical music reflects cultural diversity and plays a role in the everyday lives of youth.” Its goal is to increase the participa- tion of black and Latino youth in classical music endeavors. The inspiration I felt as I sat in the audience listening to the Sphinx Orchestra and the finalists in both the junior and senior divi- sions is indescribable. If everyone could have the opportunity to see the film that described the five ma- jor programs within Sphinx and ANYWHERE EVERYWHERE see the faces of the children hold- ANYWHERE EVERYWHERE ing their first violin, or “learning A degree accessible from in the world... prepares you to go you want to go. the ropes” from the Harlem Quar- tet, funding would be a nonissue. We are truly fortunate to have these two organizations call De- Graduate Degrees Offered You shouldn’t have to choose between convenience troit home. They represent our and prestige… s-"! Evening and Online ambassadors to the wider world, Concentration areas: and they represent the future of s%NROLLINONLINECLASSES EVENINGCLASSESONCAMPUS OROPTFORA !CCOUNTING our region and our nation. When- COMBINATIONOFBOTH &INANCE ever you have the opportunity to )NTERNATIONAL"USINESS experience either, please take it. s&ORGEANEXTENSIVENETWORKOFPROFESSIONALCONTACTSTHATINCLUDES -ANAGEMENT)NFORMATION3YSTEMS AGLOBALCOMMUNITYOFOVER 5NIVERSITYOF-ICHIGANALUMNI Kurt Metzger -ARKETING Pleasant Ridge 3UPPLY#HAIN-ANAGEMENT s'RADUATEWITHA5NIVERSITYOF-ICHIGANDEGREETHATISRECOGNIZED Stop stalling on Cobo s-3IN&INANCE Evening and Online ANDRESPECTEDBYCOMPANIESWORLDWIDE Editor: How many columns does Keith s-3IN!CCOUNTING s4AILORYOUREDUCATIONBASEDONOURBREADTHOFDEGREESAND Tracks: Crain have to write about the ur- DUAL DEGREEPROGRAMS gent need for a Cobo Center expan- &INANCIAL!CCOUNTING sion to get something done? (This 4AXATION s%NHANCEYOURLEARNINGWITHDIVERSE EXPERIENCEDSTUDENTS year it’s $350 million from NA- s-3IN)NFORMATION3YSTEMS /NLINE/NLY s)NTERACTWITHEXPERIENCEDFACULTYMEMBERS IAS,” Jan. 12.) Will a steady ero- sion of car companies leaving the s$UAL-"!AND-3IN%NGINEERING show finally get their attention? It s$UAL-"!AND-3IN&INANCE seems our politicians are too busy &ORMOREINFORMATIONABOUTTHEMASTERSDEGREEPROGRAMSTHATMAKE with how much to spend and s$UAL-"!AND-3IN(EALTH whose plan is better. By the time ADIFFERENCEINYOURCAREER VISITUSAT something is done, it may already WWWSOMUMDUMICHEDUGRAD too late. Will the last one leaving the show please turn off the lights? The Duncan Galbraith UNIVERSITY OF MICHIGAN-DEARBORN Degree SCHOOL OF MANAGEMENT that Makes the Marketing Manager ™ CGR Benefits Difference Troy DBpageAD.qxd 1/15/2009 12:35 PM Page 1

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February 9, 2009 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK New Ross School of Business

If you know built to fit the school’s identity, someone interesting in auto suppliers, Page 15. steel industry or higher education Ryan Beene should interview, call (313) 446-0315 or write [email protected] Business Education Ryan Beene Collaborative retraining It may not single-handedly solve the nursing shortage, but a new collaboration between a health care system and a local university is an example of re- Road to training creativity. The automotive industry is at its lowest point in more than two decades, and an increasing number of workers find them- selves trading the assembly line for the unemployment line. But 51 former autoworkers are halfway to earning a bachelor’s degree in the science of nursing from Oakland University through a recovery program in collaboration with Henry Ford Health System. If the 51 graduate and pass their exams to become regis- tered nurses, they will all be of- Colleges, universities guide displaced workers fered positions within HFHS, said Mary Kravutske, interim administrator for nursing devel- BY RYAN BEENE opment and research. CRAIN’S DETROIT BUSINESS “This was an innovative pro- hen Chrysler L.L.C. said in gram and it had never been tried late October that it planned before — to partner a university to eliminate about 4,300 and a health care system in W salaried jobs by January, which we could assist students,” Lewis Walker knew something had to be Kravutske said. done. The idea for the program ger- The scale of Chrysler’s cuts drove minated in the spring of 2006 home to Walker, president of Lawrence when Ford Motor Co. began offer- Technological University in Southfield — ing employee buyout packages and other local school administrators that would pay for tuition. and faculty — the need to respond to the HFHS developed the program region’s unemployment rate in a signifi- with Oakland University, target- cant way. ing displaced autoworkers look- In response, Lawrence Tech in Decem- ing to make a career change to ber started “Recovery Starts Here,” a $3 nursing. The program is an ac- million initiative to provide 50 percent celerated degree program in tuition grants for 200 undergraduate stu- which students can earn a bach- dents and 200 graduate students who elor’s in nursing in three years have either recently lost their jobs, or instead of the usual four. are the children of parents who have lost About 100 students in the pro- their jobs. gram from a variety of automo- NATHAN SKID/CRAIN’S DETROIT BUSINESS “What we wanted accomplish was to The scale of Chrysler’s job cuts spurred Lewis Walker, president of Lawrence Technological tive companies came to OU to react in some way to allow people to con- University, to start its “Recovery Starts Here” program. The program is one of a number complete required classes in tinue their education that was cut short designed by area colleges and universities to help displaced workers. 2007. While about half dropped by losing their job,” Walker said. out along the way, 51 began the Lawrence Tech has put “its own mon- example, represent a “major commit- college degree, including non-Lawrence nursing program classes in the ey on the table” Walker said, funding the ment and significant (revenue) sacri- Tech alumni. fall, and began their first clini- $3 million program from the school’s fice,” he said. Lawrence Tech hosted its first “career cal rotations at HFHS hospitals general fund. Lawrence Tech had a $61 reception” networking event on Jan. 22 near the start of the year. million budget during its fiscal year that New programs, resources at its Southfield campus, and 51 local General studies and science ended June 30. companies looking to hire had recruiters prerequisites were held at OU, “I kind of hoped that this might spur Lawrence Tech has issued about 100 or human resources representatives and HFHS hosted the nursing some other universities into doing some- recovery grants, and Walker expects the available. courses and clinical rotations. thing and put something on the table to majority of the grants to be doled out About 500 displaced workers were reg- “It was an opportunity to pur- try and help displaced workers,” Walker during the upcoming summer and fall se- istered to attend, but more than 1,200 sue something that they wanted said. mesters. showed up at Lawrence Tech’s campus. and they were given some finan- A host of workshops, networking Recovery grant students will have ac- Company booths had lines with dozens cial means to do that,” events and other resources for displaced cess to the school’s traditional study op- of engineers, IT specialists, program Kravutske said. workers are sprouting up at other metro tions, as well as recast offerings in new managers and other high-tech, skilled These students go to class all Detroit colleges and universities. Several study areas and degree options to target workers pursuing job prospects. year and are expected to gradu- schools are offering free workshops or growth areas identified by Gov. Jennifer Lawrence Tech has three additional ate in 2010 trained for an indus- revamped curriculum geared toward re- Granholm’s “Keep Michigan Working” receptions scheduled for April 2, June 4 try seen as having one of the training or assisting displaced workers. initiative (See story, Page 13.) The new and Oct. 8, and plans to hold workshops highest potentials for growth. (See list, Page 12.) fields at Lawrence Tech include bache- before the receptions similar those lead- According to the Michigan De- Ed Blews, president of the Association lor’s and master’s programs in life sci- ing up to the Jan. 22 event. partment of Energy, Labor and Eco- of Independent Colleges of Michigan, said ences, alternative energy and sustain- Similarly, Stephanie Bergeron, presi- nomic Growth, a projected 42,995 it’s impressive when private, indepen- ability — with many courses offered at dent of Walsh College, said Walsh faculty registered nurses will be em- dent colleges — that rely nearly com- night or on the weekends. and leadership team realized late last ployed in the Detroit area by pletely on tuition revenue to fund opera- Recovery Starts Here also offers free year the college would need to provide 2014 — which would be an 18.3 tions — step up to offer grants or free job and networking events and work- more resources for displaced workers. percent increase from 2004. shops for any displaced worker with a resources. Lawrence Tech’s grants, for See Recovery, Page 12 20090209-NEWS--0012-NAT-CCI-CD_-- 2/5/2009 4:08 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS February 9, 2009 Focus: Business Education Recovery: Help for displaced workers It’s personal. ■ From Page 11 “Before Christmas, we met with Charge workshops, techniques. our faculty, and we all know peo- Demand for the workshops OU’s School of Engineering Com- ple that have been displaced, and prompted Walsh to add seats to puter and Science now offers skill we all looked at each other and said, some and offer additional sessions rebuilding and professional devel- ‘What can we do that can help these for some workshops. opment programs for IT specialists, people to find their next place in “These are not strictly academic engineers and computer scientists. life?’” she said. courses; what we’re trying to do is “We understand that a displaced give individuals a little bit of help in employee has had substantial back- individually taking a little more ground experience … all of that pre- Taking charge control of their respective situa- vious experience is extremely valu- The faculty’s brainchild that fol- tions,” said John Moore, associate able for a new employer,” said lowed was Walsh College’s “Take professor of finance and economics Bhushan Bhatt, associate dean of Charge” series of free educational at Walsh. the School of Engineering Comput- workshops for workers in transi- Moore will teach a three-week er and Science. tion launched in January at its lo- course about starting a small busi- But after years at a job, many en- cations in Troy and Novi. ness beginning in March. He also gineers are removed from the state- The workshops range from one- held a session Feb. 4 on household of-the-art advances that have taken day sessions to six-week courses, budgeting and personal options place in their fields, Bhatt said. Whether you pursue a bachelor’s or master’s degree in business and attendees receive certificates during a home foreclosure. OU also has similar programs in at Madonna University, it’s going to be personal. The professors, upon completion. The workshops Similarly, Oakland Community Col- other areas of study. all seasoned business professionals, will know you by name. focus on 10 topics, including lead- lege offers free workshops, semi- Academic leaders acknowledge The personal attention you’ll receive in small class settings ership assessment, accounting nars and a help line for transition- the new programs and networking demonstrates that they care about your success. Your advisor fundamentals, job search strate- ing workers that offer advice on support will not help every dis- will help you choose the business major that fits you personally; gies, demystifying business certifi- forming a new career plan or cop- placed worker — there were 216,711 cations, using Microsoft Excel in ing with the career transition itself. displaced workers on the unem- from accounting, e-commerce and international business, to MIS, finance, project management and OCC established its OCC Worker ployment rolls as of December. But hospitality management and non-profit leadership. information-technology security. Transition Helpline, a single point they are hopeful the collective ef- “We know there are jobs in the of contact at the community college forts could make a significant im- Scope out the School of Business marketplace for project managers where staffers from its Economic pact. Saturday, March 14 from 9 a.m.–1 p.m. and for people that know informa- and Workforce Development office “I suspect it won’t meet the true 734-432-5339 • www.madonna.edu tion assurance,” Bergeron said. guide callers through services of- demand,” Walker said. “We of “Faculty members in those ar- fered at its five campus locations. course can’t do it alone,” Walker eas said, ‘Let us lead workshops in Oakland University has bolstered its said. “Things happen when each in- those two fields that will help peo- offerings of academic options for dividual makes a difference where ple get an appreciation of what it is displaced workers looking to en- they can.” like to study this, what kinds of hance their on-the-job experience Ryan Beene: (313) 446-0315, 36600 Schoolcraft Road • Livonia, Michigan 48150-1176 jobs are in these fields before they with some of the latest skills and [email protected] make a one- to three-year commit- ment ...” she said. As of Jan. 27, 542 displaced work- ers had registered for Walsh’s Take WHERE DISPLACED WORKERS CAN FIND HELP New programs and resources for assessment and educational displaced workers offered by local planning. The counseling center colleges and universities: can be reached at (248) 370- 3092, or via OU’s Web site. Oakland Community College Ⅲ OCC Worker Transition Helpline, Baker College (248) 232-4000 Ⅲ Baker College is holding panel Ⅲ Free “Transitions Seminar discussions at its Auburn Hills Series”: The series started in late campus to help displaced workers. January and runs for six weeks at The next session on Feb. 18 is OCC’s Auburn Hills campus and titled, “Are You as Employable as Pontiac Center. Topics covered You Think You Are?” See range from networking to planning baker.edu and click on the Auburn for the jobs of the future. Hills campus calendar. Ⅲ Workshops to prepare for further education or job training in the Henry Ford Community College MSU College of Law Student Center at OCC’s campus Ⅲ The Education and Career in Auburn Hills began Friday and Opportunity Center helps displaced run every other Friday from 9 a.m. workers with job searches, Skills for 21stCentury Practice until noon. referrals for education and training programs, career counseling and Walsh College other services. Ⅲ Space may be still available for The ECOC is at 3601 Schaefer Walsh College’s “Take Charge” Road in Dearborn and can be workshops. See reached at (313) 317-6626. Looking for New Associates, Law Clerks or Externs? www.walshcollege.edu and click on the Take Charge bulletin board. Topics include accounting and the Schoolcraft College MSU College of Law can connect you with excellent candidates. job search. Ⅲ Schoolcraft is offering new courses aimed at budding MSU Law offers a strong required curriculum enhanced by Oakland University entrepreneurs, such as specialty programs and experiential learning. Our students Ⅲ OU has a number of resources government contracting or construction. obtain hands-on learning opportunities through clinics, a rigorous and programs for displaced workers, with information available The Transitions Center at trial practice program, transactional simulation courses, and an at the university’s Web site, Schoolcraft is a new installation for extensive externship program. www.oakland.edu, by clicking the current and prospective students link titled “You Can Afford This.” that houses Adult Student Examples of resources include Services, which provides support certificate programs for workers to for workers in transition. The Get to know an MSU Law student today. be trained as paralegals, financial Center can be reached at (734) Contact Assistant Dean Elliot Spoon in Career Services at planners and project managers. 462-4400 ext. 5350, or via 517/432-6830 or [email protected] Ⅲ The School of Engineering and Schoolcraft’s Web site, Computer Science is offering skill http://www.schoolcraft.edu/. Click rebuilding and professional on the “future students” tab. development programs, and the School of Education and Human If you know of a resource for Services runs its Adult Career displaced workers, send an e-mail Counseling Center where workers to Ryan Beene at can go for help with skill [email protected] 20090209-NEWS--0013-NAT-CCI-CD_-- 2/5/2009 4:52 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 13 Focus: Business Education Colleges, state coordinate efforts to help displaced workers

BY RYAN BEENE Ezzeddine represents Wayne think about training or education CRAIN’S DETROIT BUSINESS State on the state’s committee. He when they have that on their There are a lot of transferable skills that said while many of the school’s minds, it becomes a tricky proposi- Nine local colleges and universi- “ programs were in place before the tion … one thing that we have to do ties are working with the state to people have ... it’s identifying what they are formation of the committee, and we are doing as an educational align curricular and extracurricu- Wayne State is working on offer- institution is to come up with al- lar offerings with industries that so that we have that clear match. ing more certificate programs for ternative delivery mechanisms for are seen as having high growth po- ” displaced workers as it and other that education,” he said. tential. Ahmad Ezzeddine, Wayne State University schools work to meet the needs of “So we cannot expect someone The goal of Gov. Jennifer can complete individually to im- see where would be the shortest displaced workers in the region. to go for four years; it’s not realis- Granholm’s “Keep Michigan prove specific skills or roll into a transition time and retraining But sometimes convincing a tic. So we have to give them new Working” Talent Action Commit- master’s degree. time. And we have to supply the person that more education is the models where we give them this tee was to create a complete data- “There are a lot of transferable educational product to support answer can be tough for someone education in faster, more concen- base of resources available to dis- skills that people have, so I think that,” said Ahmad Ezzeddine, di- who has lost his job and has a fami- trated doses.” placed workers and other it’s identifying what they are so rector of community outreach ly to feed and bills to pay. Ryan Beene: (313) 446-0315, students looking to find work in that we have that clear match to communications at WSU. “It’s a challenge to have them [email protected] nine general industries: alterna- tive energy, aerospace and de- fense, advanced materials, infor- mation technology and software engineering, life sciences, entre- preneurship, education, logistics, and engineering/engineering WHAT’S BEHIND THE “W”? technology. “Our goal was coming together to align education, economic de- velopment, and workforce devel- opment so that we’re all pointing our resources in the same di- rection, because in Michigan in the past we have not had that type of co- ordinated ef- fort,” said Sharon Miller, dean of econom- Miller ic and work- force development at Oakland Com- munity College. The committee includes repre- sentatives from OCC, Wayne State THE HAWORTH EXPERIENCE University, Oakland University, Walsh College, Lawrence Technological Uni- versity, Henry Ford Community Col- lege, Schoolcraft College, Macomb Great academics! Great experiences! Great careers! Community College and Wayne Coun- ty Community College as well as offi- cials from state and local economic development groups. Miller co-chairs the talent ac- tion committee and said the task force has spent the past month an- alyzing the job market of those nine industries to identify in-de- mand jobs and those that will be in the future. “We want to come up under- neath and support those efforts to attract companies by claiming we have an educated workforce and being able to provide training to dislocated workers so they can transition into those industries,” Dr. James Eckert Tamara Warren Dennis M. Nally Miller said. Associate Professor of Sales Finance Major from Lansing, Mich. ’74, B.B.A. in Accountancy So far, the committee has inven- and Marketing “My experience at WMU has Chairman and Senior Partner, toried degree programs, certificate PriceWaterhouseCoopers LLP programs and workforce outreach “I have taught at three been life changing. The college efforts that would support the universities, and my courses at “I started with this company growth industries. has helped me elevate my right out of college. The Next, she said, is identifying the WMU are the most challenging way of thinking and maintain top 30 jobs or positions in each in- education I received at dustry and matching those jobs to I have ever designed. Yet every a standard of excellence to schools that offer programs for Western has served me semester, my students rise to prepare me for the realities of those jobs. incredibly well. It gave me a “Each school has been chal- the occasion and succeed.” the business world.” lenged to come up with new pro- tremendous foundation.” gramming, new initiatives, new services — do something different to rise to this occasion when our community needs us,” she said. For example, Wayne State has 23 programs targeting the nine growth industries. The programs The Haworth College of Business range in duration from as little as four to six months up to five years, WMICHEDUBUSINESSs   and some of the programs are cer- tificate programs that a student 20090209-NEWS--0014-NAT-CCI-CD_-- 2/5/2009 4:07 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS February 9, 2009 Focus: Business Education Training programs spring up around state’s growing film industry

BY MARK LEWIS try Training Overview and Unlike other programs, the cen- SPECIAL TO CRAIN’S DETROIT BUSINESS Grip/Electric/Generator Opera- ter is not affiliated with a communi- tor. In early March, it is adding ty college. Meisner struck an agree- Six weeks ago, Ferndale resident two more classes: Production Ac- ment recently with the Michigan Julie Goode was making $54,000 a counting and Introduction to the Regional Council of Carpenters, a year working as a textiles designer Art Department. union with about 20,000 members, and engineer for supplier Lear Corp. The S3 program’s lead instructor, 4,000 of whom are unemployed. Then, three days before Christmas, Larry August, said informational Universities in the state also are she was laid off. Goode, 28, now is sessions have attracted about 150 getting involved in film industry preparing to start a new career. people, many of whom formerly training. Among them is Wayne She is one of hundreds of Michi- were employed in construction, au- State University, which is offering gan residents who have enrolled in tomotive manufacturing or auto- seminars and classes in acting, film a film industry training program, motive supply. He said a back- production and animation. at least four of which have sprung ground in engineering or manual Available jobs in the industry up across the state since last April. labor can be an asset on a film set. can include anything from hair and Most are run by small colleges that Tic Tock Studios began offering makeup to electrical and office have contracts with private film film training in April 2008 in part- work. Most people start as either studios to provide instructors, nership with Grand Rapids Communi- production assistants, an industry equipment and studio time. ty College. Dori Depree, head of edu- term for gofers, or grips, who do “I’ve played it safe for so long that cational outreach for the studio, most of the manual labor. Pay can I thought it was time to take a said the program has so far graduat- range from a little better than mini- chance,” said Goode, who aspires to ed about 100 students. Class size is mum wage to $70,000 a year or more work in set design or wardrobe. typically 15-20 students. for experienced professionals. “And when I heard people from the MARK LEWIS/CRAIN’S DETROIT BUSINESS “We’re getting calls almost daily Most training programs in Michi- industry talking about it, that’s Larry August (center), lead instructor for S3’s classes, points out equipment from people all over the state,” she gan run 40-60 hours over two weeks when I knew it would be a good fit.” typically used on a movie set during an informational session in Ferndale. said. Depree said Tic Tock plans to and can cost anywhere from $1,200 Film studios and schools have expand its program to Lansing, to almost $2,000. been scrambling to launch pro- The Michigan Film Office esti- “The first thing (film production Flint and Traverse City. Mark Adler, director of the Michi- grams to train a workforce of be- mates the film industry could cre- companies) ask is, ‘Who do you Another upstart film training gan Production Alliance, said finding hind-the-scenes movie personnel ate more than 1,000 new jobs. have for a crew base?’” said Jeff program is the Center for Film Stud- sustainable employment is a matter since the state Legislature last More than 20 feature films were Spilman, co-founder and manag- ies, which is offering classes at lo- of patience and perseverance. April approved tax credits for film shot in Michigan in 2008 and about ing partner of S3 Entertainment cations in Troy, Farmington Hills, “You have to have some experi- production companies working in 70 are slated for production in Group, which is offering classes in Detroit and Warren. Executive di- ence to get more experience,” he Michigan. The incentives provide 2009. Because Michigan lacks an Ferndale in a partnership with rector Mort Meisner said his office said. “These classes can give you a tax credits of up to 42 percent, cur- adequate workforce of film person- Oakland Community College. It cur- has received hundreds of calls and leg up.” rently the largest film incentives nel, production companies often rently has about 100 students en- e-mails about the new program, Mark Lewis: (313) 446-0417, package in the nation. bring in crews from out of state. rolled in two classes: Film Indus- which starts March 2. [email protected]

It’s a good time for an MBA from Walsh, the area’s only all-business college. Eleven areas of specialization include Accounting, Business IT, Economics, Finance, International Business and more. A full MBA can also be earned online. 20090209-NEWS--0015-NAT-CCI-CD_-- 2/5/2009 4:02 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 15 Focus: Business Education start law school in may!

PHOTOS BY MARK LEWIS/CRAIN’S DETROIT BUSINESS The Stephen M. Ross School of Business ls 270,000 square feet and cost $175 Begin your legal career sooner – rather than later million. Attend the nation’s largest law school right here in Auburn Hiils! Cooley Law School offers classes year round across the state of Michigan at its three locations in Auburn Hills, downtown Lansing, and downtown Grand Rapids. Cooley students receive a legal education that provides them with the UM biz school gets fitting knowledge, skills, and ethics that Cooley students are known for worldwide. Cooley – Auburn Hills – the exclusive educational partner law school of Oakland University. identity with new building For more information about Cooley and to register,visit cooley.edu

Come to a Cooley Spring Open House in March BY RYAN BEENE Auburn Hills Campus – Thursday, March 19 CRAIN’S DETROIT BUSINESS Thomas M. Cooley Law School is committed to a fair and objective admissions policy. Subject to space limitations, Cooley offers the opportunity for legal education to all qualified applicants. Cooley abides by all federal and state laws against discrimination. In addition,

Robert Dolan noticed a problem knowledge. skills. ethics. Cooley abides by American Bar Association Standard 211(a), which provides that “a law school shall foster and maintain equality of when he arrived at the University of opportunity in legal education, including employment of faculty and staff, without discrimination or segregation on the basis of race, color, religion, national origin, gender,sexual orientation, age or disability.” Michigan in 2001 as dean of the cooley.edu Stephen M. Ross School of Business. The school was a hodgepodge of buildings constructed since the 1940s on the northeast block where Hill Street and Tappan Street in- tersect in downtown Ann Arbor — not an ideal fit for the school’s MBA program identity of team- based, action-based learning. But business students returning to class in January were greeted by the school’s new, 270,000-square- foot, $175 million building, built to better fit with the school’s identity. “We believe there are some im- Students work and chat in one of the portant things you do in the class- study areas in the new school room in terms of developing con- building. ceptual skills, but a lot of your leadership skill development is go- with Dolan, Ross donated $100 mil- ing to take place in a team setting, lion to the school in the fall of 2004. and so we do lots of project work Ross earmarked about $75 million around teams,” Dolan said. for the new building and $25 million The main for the school’s endowment. floor of the “When I see the support that they WEB EXTRA school is filled have and the system that they oper- with tables, ate under with the kinds of uses of Take a video tour information that they make, it’s no of the school and chairs, couch- hear Assistant es and lounge wonder that these kinds of things Dean Graham chairs for stu- happen … they’re so systematic and You get more than just theories Mercer describe dents to work so thorough,” said John Fike, presi- and equations at Lawrence Tech. highlights at on team pro- dent of Ypsilanti-based Philanthropy www.crains.com jects. Sur- Solutions L.L.C., a nonprofit fundrais- You’re exposed to the tools and /multimedia. rounding the ing consultancy. practical experience you’ll need to main floor and The business school raised the realize your dreams. extending up six stories are facul- $145 million for the project solely ty and department offices, 12 U- from gifts, between 2004 and 2006, To prepare shaped and tiered classrooms that and began demolition soon after. The goal is simple: seat up to 85, five other reconfig- Razed was 190,000 square feet of you to not only compete within urable classrooms, and private space along Tappan Street, includ- your profession, but to lead it. group-study rooms. ing Assembly Hall and the Peyton The concept of housing every de- Accounting Center, and the nine- gree program in one building cen- story Davidson Hall, named after tered on a large, common gather- UM business school alumnus and Visit ltu.edu/applyfree ing area to support team-based Detroit Pistons owner Bill Davidson. to have your application fee waived! project work was decided early on Dolan said Davidson had no in the planning of the building. qualms that his namesake building With a handful of designs on the was slated for demolition. Davidson Leaders in the Making table, Dolan began looking to for- simply said: “Look, I just want it to mer donors, including New York be a great school.” real estate mogul, UM business In return, the business school Explore over 20 master’s and doctoral programs in architecture, business administration, communication, computer science, information systems, school graduate and namesake named the cavernous main-floor interior design, engineering (civil, mechanical, electrical, and computer), Stephen Ross, CEO and chairman common area encased in glass the and science at ltu.edu/academicsandmajors/graduate_programs.asp. of New York-based The Related Cos. “Davidson Winter Garden.” Ross agreed that new facilities Ryan Beene: (313) 446-0315, Lawrence Technological University 21000 West Ten Mile Road, Southfield, MI 48075-1058 800.CALL.LTU [email protected] ltu.edu were needed, and after 17 meetings [email protected] 20090209-NEWS--0016-NAT-CCI-CD_-- 2/5/2009 4:03 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS February 9, 2009 Food industry work helps Kwasny Co. grow fatter

BY CHAD HALCOM preliminary figures The company manu- sippi for Dallas-based Dean Foods, employees are CRAIN’S DETROIT BUSINESS place 2008 revenue at factures and installs and at least 193 dairy plants na- here, and we just above $9 million, OntheGrow its own SaniCrete tionwide for various customers. have access to at Despite a sputtering economy, up from less than $3 On the Grow is a floor system for food The company began flooring least a pretty U.S. consumers will continue to million five years ear- feature that will plants to comply with work on five plants for Dunkirk, good airport for eat in 2009, which puts Keith lier. appear in most issues U.S. Department of Agri- N.Y.-based juice-maker Cliffstar travel,” he said. Kwasny on sounder footing than Although his food- highlighting growing culture workplace reg- Corp. in December, and expects to “But even if I in his past years serving automo- related work began in companies, large and ulations, and has com- complete the roughly $500,000 job were to relocate tive clients. Detroit — Kwasny Co. small. Know of a pleted work at nearly by the end of this month. nearer to one Kwasny is president and CEO of installed the flooring company you think 300 plants to date in But Kwasny says that traveling customer in Farmington Hills-based Kwasny Co. in the Aunt Mid’s Pro- Crain’s should write the U.S., Guatemala to points around the country does Chicago, or At- about? Contact Kwasny His company, which makes and in- lanta, or Nebras- duce Co. building on Managing Editor and Jamaica. not entice him to leave Michigan, stalls a heavy polyurethane floor- West Lafayette in 2000 Andrew Chapelle at These include 45 especially since no one client ac- ka, I still would have to travel a ing system for food manufactur- — today just $800,000 [email protected]. buildings nationwide counts for more than 10 percent great deal to get to all the others, ers, shed the last of its automotive or less of its revenue for Chicago-based or so of business volume at any by the nature of the industry.” work in 2002-03. comes from Michigan- Tyson Foods Inc., 59 fa- time. Founded in 1990 as a Livonia Kwasny said the company’s based businesses. cilities in states east of the Missis- “I’m from here and most of the painting business, Kwasny Co. went on to handle industrial floor- ing for automotive suppliers, OEMs and some dealerships be- fore the gradual transition to the food business. After moving to Westland and then to Southfield, Kwasny has been based in Farmington Hills since 2001 and has 45 employees. There are 41 at its headquarters and four in a sales and warehous- ing office in Raleigh, N.C. $25,000,000 $24,000,000 $23,000,000 $22,000,000 Kwasny said the company hopes Acquisition/Working Capital Refinance/Working Capital Refinance/Working Capital Acquisition to add a second sales and ware- housing location in Omaha, Neb., Mining and other heavy Reusable fabrics and surgical Metal processing services Gourmet foods and by early spring. industry equipment rebuilder instruments provider provider confections distributor He said the company expects to see at least 30 percent growth in 2009. Part of that growth, he predicts, will come from the recent launch of a SaniCurb product to protect workspaces from damage by heavy $20,000,000 $18,000,000 $18,000,000 $16,000,000 machinery, and part will come Refinance/Working Capital Acquisition/Working Capital Working Capital/Growth Refinance/Working Capital from existing customers who have put off needed building improve- Consumer food and Petroleum products Spirits and wine importer, Roofing, siding and other ments and maintenance. household storage container distributor and retailer producer and supplier building materials distributor manufacturer “When ethanol drove up the price of We are corn, the “ poultry man- definitely Carolina Precision Plastics, LLC ufacturers had to cut $15,000,000 $12,000,000 $10,000,000 $7,000,000 looking at back, and so Refinance/Working Capital Refinance/Working Capital Refinance/Working Capital Refinance/Working Capital in some cases food and we did patch- Manufacturing technology Custom plastic packaging Networking and telecommuni- Fluid control devices designer products and services supplier manufacturer cations equipment seller and manufacturer ing instead of beverage to more exten- sive flooring be a stable work because the compa- market. nies were just ” getting by,” Byron Beamer, Our clients deserve all the credit. he said. Sika Flooring “Now, in the next year it’s going to be even more important to get that work Bank of America Business Capital* is dedicated to helping mid-size and large companies done, because it’s such a heavily achieve greater liquidity and flexibility with asset-based financing solutions of $5 million regulated industry.” to $2 billion. Companies in the United States, Canada and Europe leverage our resources Byron Beamer, account manag- for growth, acquisitions, refinancings, recapitalizations, turnarounds, working capital er of food and beverages for Lynd- and more. hurst, N.J.-based Sika Industrial 2009 CFO Outlook Flooring, said Kwasny is making a A Survey of Manufacturing Company CFOs Whether you are a manufacturer, wholesaler, distributor or service company, we will safe assessment that food will be work with you to structure a total financial solution that meets your business objectives. one of the more stable industrial Call us today at 800.773.5338 to get started. customers in the coming year. He said Sika does $30 million in Find out what 600 CFOs expect in 2009 regarding the economy, revenue growth, financing manufacturing floors for biotech- requirements, M&A activity and more. Download the free “2009 CFO Outlook” at nology, pharmaceutical, schools, www.bankofamerica.com/businesscapital33. heavy manufacturing clients and food, and he estimates that food and beverages alone accounted for close to $5 million. BANK OF AMERICA BUSINESS CAPITAL “It’s probably in the top two or Asset-based financing Treasury and risk management Global capital markets three among all the industries for us,” he said.

*ABL Lead Arranger by Volume and Number of Deals per Loan Pricing Corporation, 2008. “And we are definitely looking Bank of America, N.A. is acting as Administrative Agent. Certain activities and services referred to in this document are provided by Banc of America Securities LLC, a subsidiary of Bank of America at food and beverage to be a stable Corporation and an affiliate of Bank of America Business Capital. © 2009 Bank of America Corporation market compared to some of the others in 2009 and 2010.” Chad Halcom: (313) 446-6796, [email protected]. 20090209-NEWS--0017-NAT-CCI-CD_-- 2/5/2009 5:23 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 17

Quarterly Crain’s Quarterlies: 2nd Mondays NEXT UP A closer look at issues and topics March 9: important to Southeast Michigan Career April 13: readers. Policy Economy stalls emerging sectors

that economic development officials in Most industries have shaky ’08; Plex bucks trend several local counties are targeting to foster growth. “Personally, I’m not spectacularly BY CHAD HALCOM jobs fell in almost every category but growth track and withstood the eco- encouraged about anything in Michi- CRAIN’S DETROIT BUSINESS health care and education. nomic trend, seems to be flattening gan employment for the short term,” Recent reports on specific industry now, according to preliminary DELEG said Theodore Bolema, an analyst and he “emerging sector” indus- employment from the University of Michi- data. principal at Anderson Economic Group in tries, where local governments gan, the state Department of Energy, Labor “We actually saw a number of layoffs East Lansing. “There is no real growth offer incentives to grow and and Economic Growth and the U.S. Census that made health care shed about 2,000 in any of the major 12 (employment) cat- add jobs in Southeast Michi- T jobs in December,” said Bruce Weaver, egories (in 2008), though you can break gan, haven’t done much emerging late- Bureau suggest Southeast Michigan has lost more than 40,000 jobs since 2004 in economic analyst for DELEG. “Certain- down into smaller specialization cate- ly, according to recent employment gories and find small pockets of data. finance, information technology, ad- ly the take away from that seems to be vanced materials and chemicals manu- in 2009, just based on these earliest growth.” But experts agreed 2008 is a bad year An Anderson report on local technol- facturing, telecommunications and oth- numbers, health care is not likely to be to examine, even in the high-growth ogy industries, completed in November segments officials target in their eco- er technology. immediately larger.” nomic development initiatives, because Health care, which had been on a These are some of the very industries See Economy, Page 18

ECONOMY BY THE NUMBERS

ach quarter, Crain’s will take a look at the economic indica- RESIDENTIAL SALES MEDIAN FAMILY INCOME E tors that drive metro Detroit, I keep an eye on household giving a look at the economy by the 1999 VS. 2007* “ numbers. income because that’s Area percent change In the fourth quarter of 2008, there 19.1 43 were few indicators showing positive percent percent Oakland (11.3) how retailers and other traction in either the local, state or from 2007 Wayne (13.5) businesses look at an national economy. While residential Macomb (13.8) real estate continues to be a soft spot, Total sales: Pending sales: Michigan (11.6) area when deciding the local market did show signs of 58,592 5,673 in Dec. higher sales toward the end of the U.S. (5.4) whether or not to open a year, actually ending with more sales *Adjusted for inflation to 2008 values than in 2007. That figure, however, in- Source: U.S. Census Bureau store. cluded foreclosures, which were also ” up. In the office sector, the commer- Patrick Anderson, Anderson Economic Group L.L.C. cial real estate vacancy levels are still considered high. Unemployment continued to rise TRANSPORTATION COSTS (See story, Page 19), but there were FOURTH QUARTER signs of growth in some sectors, such as health care. A little bit of good OFFICE SPACE VACANCY 10.6 percent news: The Consumer Price Index for Michigan’s seasonally adjusted jobless rate as of December 13.1 the region dropped 3.5 percent, with percent transportation costs dropping even more based on cheap gas prices. — Daniel Duggan 3,700 25.8 Number of education and health percent services jobs added in metro * Two-month drop as of Detroit December ECONOMIC INDICATORS CONSUMER PRICE INDEX 15.1 3.5 percent drop in the percent Down 5 of 10 Detroit region from 1.1 percent are up October through $38 million December In SBA 7(a) loans given out in 2.4 percent drop the Detroit area from October nationally through December *Composite index is based on 10 Source: Department of Labor leading economic indicators for the region, with only one, interest rate spread, positive for the month. Among 55 percent the negative indicators: Building permits, unemployment claims, exports Ann Metro Decline in small-business lending and consumer expectations. Arbor Detroit Source: e-forecasting.com 20090209-NEWS--0018-NAT-CCI-CD_-- 2/5/2009 5:01 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS February 9, 2009 Focus: Jobs/Economy Economy: Most emerging sectors industries have a shaky 2008 ■ From Page 17

for Troy-based Automation Alley, About half the new customers, crease of 33 percent over the previ- suggests a few of the sectors were he estimates, are in such growth ous year. already on shaky ground even be- There’s expansion in auto ... industries as medical devices, But Weaver said the national fore the recent downturn. “ aerospace and defense, life sci- economic slowdown seems to have The seven-county region of but you get haves and have- ences and food producers. But Plex affected most Michigan industries, Southeast Michigan lost 7,568 jobs nots. also has picked up a little business even previous fields of growth, in advanced manufacturing, IT in the automotive segment. such as tech industries. and other technologies between ” Mark Symonds, Plex Systems Inc. “There’s expansion in auto too, Don Grimes, 2004 and 2006, while life sciences but you get haves and have-nots,” research econo- grew by 1,765 jobs in the same pe- he said. “The more stable compa- mist at the Uni- riod. The number of local busi- emerging sectors program has tal- eliminate nanotech. The county nies are growing with us in (prod- versity of Michi- ness establishments in those four lied 106 deals with businesses to held an “Aerospace 101” confer- uct use) because they pick up left- gan Institute of industries, however, dropped by invest a collective $1.3 billion and ence last Thursday for automotive over demand from other Research on La- 120. add nearly 14,762 jobs to the coun- suppliers looking to diversify into companies that went out of busi- bor, Employment “Ken (Rogers, Automation Alley ty since the program’s inception in that industry. ness, are struggling or lost con- and the Economy, executive director) has to look at a 2004. Target industries for Oak- One of Oakland’s larger growth tracts. That’s only a few cus- said many high- seven-county re- land are advanced manufacturing, commitments in 2008 was Auburn tomers, but they’re good money.” growth local in- Grimes gion in that re- IT, finance, health care, alterna- Hills-based Plex Systems Inc. in IT During 2008 the company be- dustries that ex- port. We’re just tive energy, homeland security and communications. President came a software provider for Troy- panded at rates above the national focused on Oak- and nanotechnology. and CEO Mark Symonds said the based Inteva Products L.L.C., former- average may have been working land,” said Oak- Other county officials said they company also has found that some ly the Interiors and Closures on a smaller scale. land County have similar target industries to of the same emerging industries Division of Delphi Automotive Sys- “You actually had dozens of in- Deputy Execu- strive for local growth. Macomb are fueling its own expansion. tems. dustries growing here faster than tive Dennis Tof- County focuses primarily on ad- Plex, formerly Plexus Systems, In September, the Michigan Eco- the national average in the last re- folo, who over- vanced manufacturing, health makes Web-based performance nomic Growth Authority awarded port,” he said. sees the care, alternative energy and de- management software and quality Plex a $7.98 million tax credit to ex- “But they were also growth dri- Toffolo county’s emerg- fense, while Wayne County tries to control tools for manufacturing pand and add up to 298 jobs over ven by much smaller establish- ing sectors economic attraction foster expansion in those cate- companies. Symonds said the com- the next five years. That could ments than in other states, and in and expansion programs. “One gories plus IT. pany added 52 new customers in bring its current workforce of 130 jobs that on average didn’t tend to good (county) can’t move the Toffolo said the county may 2008, including 16 new customers to about 400 by 2013, Symonds said. pay as well here.” whole ball for the region.” change focus to add film and aero- gained and two lost during the In 2008 the company made more Chad Halcom: (313) 446-6796, Oakland County’s specific space to its priority industries and fourth quarter. than $20 million revenue, an in- [email protected]

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February 9, 2009 CRAIN’S DETROIT BUSINESS Page 19

Jobs/Economy Quarterly Jobless rates jump statewide in fourth quarter, year

BY AMY LANE cational and health services, up by 11,000 or 15.3 percent, manufactur- CAPITOL CORRESPONDENT UNEMPLOYMENT RATES 11,000 jobs or 1.8 percent. ing jobs declined by 23,000 or 9.1 4Q 2008 3Q 2008 4Q 2007 The largest percentage drop was percent, and professional and busi- LANSING — It wasn’t a pretty in construction employment, ness services employment slid by fourth quarter. Detroit MSA 9.6% 8.8% 7.8% down by 20,000 jobs, or 11.8 per- 17,000 or 4.7 percent. Job losses accelerated in South- Ann Arbor MSA (Washtenaw) 6.3% 6.6% 4.5% cent, while the smallest decline Educational and health services east Michigan and statewide in Wayne County 10.8% 10.3% 9.0% came in leisure and hospitality posted the only gain, 3,000 jobs, or 2008’s final three months and over services, which dropped 4,000 jobs, 1 percent. Oakland County 7.8% 7.0% 6.2% the year as the impact of the nation- or 1 percent. Compared with 2007’s fourth al recession continued to sink in. Macomb County 9.8% 8.8% 7.7% Manufacturing declined by quarter, the Ann Arbor area post- Data from the show Michigan’s Livingston County 7.5% 6.4% 5.6% 39,000 jobs, or 6.5 percent, and pro- ed a 3,000-job, 19.2 percent decline unemployment rate rising 0.8 per- State 9.4% 8.6% 7.0% fessional and business services, a in manufacturing employment. centage point from the third quar- broad category “that’s always a Other sectors in the Ann Arbor ter to the fourth quarter, an in- Source: Michigan Department of Energy, Labor & Economic Growth pretty good indication of the labor area posted smaller declines than crease that “is way off the scale” market,” fell by 18,000 jobs, or 3 experienced statewide or in the for that time period, said Jim percent, Rhein said. Detroit area, and government post- Rhein, labor market analyst with “you’re seeing weakness every- kets started to accelerate in late It was a similar picture in the ed a 2,000-job, 2.1 percent increase, the Michigan Department of Energy, where.” summer, and by the fourth quarter Detroit metropolitan statistical reflecting university hiring, Rhein Labor & Economic Growth. Rhein said it’s normal to see job- the data reflected “the full impact area encompassing Wayne, Oak- said. Southeast Michigan shares teh less-rate increases in winter, but of the national recession.” land, Macomb, Lapeer, Livingston “That would be the bright spot,” pain (see chart). And Rhein said that generally happens in January Over the year, DELEG data and St. Clair counties. he said. it’s not one industry sector or one or February. show every sector in Michigan los- Construction employment from Amy Lane: (517) 371-5355, region particularly affected; He said weakness in labor mar- ing jobs, with the exception of edu- fourth-quarter 2007 dropped by [email protected]

Alternative energy projects win tax breaks Area dealers bank on used-car

BY DANIEL DUGGAN 115,000-square-foot facility in Shelby Town- AND RYAN BEENE ship. The company signed the lease last CRAIN’S DETROIT BUSINESS month for the building now occupied by service to offset low new-car sales Global Tooling Systems Inc. The MEGA board Two alternative energy-related projects approved a $2 million state tax credit over BY DANIEL DUGGAN costs. Customers also are looking at ways were advanced by the Michigan Economic 10 years, and Shelby Township approved a CRAIN’S DETROIT BUSINESS to cut their own costs, making used cars Growth Authority last week. five-year tax abatement for the project. Ann Arbor-based Atwell-Hicks received more appealing. Arizona-based startup Greenblendz got Local car dealers are preparing their an incentive to expand its practice in con- “We’ve seen increased revenue from used an $11.3 million state tax credit for purchas- businesses — and especially their balance sulting for alternative energy companies. cars, so we’re getting more aggressive and ing a vacant chemical manufacturing plant sheets — for another bad year of sales. The firm serves as a consultant for land carrying a little more inventory than we used in Auburn Hills for $795,000. The company Estimates forecast another low-volume acquisition, environmental assessment, to,” he said. plans to create 47 direct local jobs. The com- year for sales, and additionally the profits civil engineering and other services for the Layoffs are also an option, but much of pany designs manufacturing processes for for selling new cars have dropped as well. development of real estate. The alternative that occurred in 2008, Butler said. commercial cleaning solutions that use nan- Combating the economics requires more energy sector has been a growing market The 82-person staff at Gorno Ford Inc. in otechnology. than just cutting staff, dealers say. They for the company, said CEO Brian Wenzel. Woodhaven has been reduced by 10 percent Software developer Stardock Systems plan to focus on used car sales, performing The firm last week began work on its 50th through attrition over the last year, said Inc. plans to invest $900,000 to expand its of- service on return customers’ cars and mak- wind farm project nationally. president George Gorno, Sr. fice in Plymouth Township to boost its PC ing cuts in variable costs such as advertis- “We’ve recognized that this marketplace Some dealers laid off employees at the end game development capacity. The MEGA ing and support services. is the tip of the iceberg in the United States of the year, such as Page Toyota, which re- board approved a 10-year, $1.2 million state “I talk to dealers every day, and there’s not and we see tremendous growth opportuni- leased four employees, said Bob Page, presi- tax credit in exchange for the company cre- a dealer out there who isn’t turning over ties,” he said. dent of the Southfield-based company. ating an expected 53 direct jobs. every rock, trying to find expenses that The project likely will create 131 new jobs, Profitability is the real challenge for deal- The following are brownfield projects ap- aren’t absolutely necessary,” said Doug Fox, Wenzel said, over seven years. The state ap- ership operations. proved by MEGA to capture local and school president and owner of Ann Arbor Automotive proved a tax abatement for $1.4 million. About 30 percent of all dealerships in the taxes for developer reimbursement: in Ann Arbor. “None of us enjoy doing this. As part of the growth, Wenzel said the United States were unprofitable in the first A developer partnership and Wal-Mart It’s a very tough process.” firm is looking at the possibility of a new 11 months of 2008, said Taylor. Inc. plan to invest $60 million to demolish One path to profitability lies in the deal- headquarters building. Though they About half of Ford’s domestic brand deal- the former Livonia Mall and renovate its infra- ership service department. looked at sites in Tennessee, Wenzel said erships lost money in 2008, said Jim Farley, structure to make way for redevelopment At Dearborn-based Village Ford Inc., service it’s important to stay in Ann Arbor. group vice president of marketing and com- project, called Livonia Market Place. Planned department revenue now covers 76 percent of “Alternative energy, specifically wind munications at Ford Motor Co. is 300,000 square feet of retail redevelop- the dealership’s operational costs, said own- power, is where a lot of work is going right There are mixed opinions as to how local ment, with a proposed Wal-Mart. A state and er and president Jim Seavitt. The goal for now,” he said. dealers stack up to the national numbers in local tax capture worth $6.5 million will sup- 2009 is to get that number to 85 percent. Also, a Monroe startup received a tax terms of profitability. Taylor’s analysis was port the project, which is expected to create “The real goal is 100 percent, so that if abatement for a facility to manufacture not extended to individual markets. 486 new jobs. The partnership of Grand Sak- you sell a car, you make a profit,” he said. towers for wind turbines. “I’d say 30 percent is pretty accurate for wa, Lormax Stern and Konover South will He and other dealers plan to increase Great Lakes Towers L.L.C. received a 10- local dealers,” said Gorno. provide $35 million and $25 million will be marketing to existing customers who might year tax abatement for a 100,000-square-foot While the local economy has had more funded by Wal-Mart. be holding on to cars for longer periods of manufacturing facility. The company plans problems than the national economy, Gorno time and are looking to get them serviced. to start construction this spring on the $20 MichiGinns Real Estate L.L.C. plans to in- said local dealers have some advantages. New car sales alone aren’t bringing a million project, said CFO Ian Charles. vest $28 million to construct a new, mixed- “We have a lot of second-generation deal- profit right now. The project will create 150 new jobs and use development on the site of the long-de- ers who’ve been established for many Retail net loss through November on a new will be built on a site at the Port of Monroe, funct and blighted Michigan Inn on years,” he said. “There are older operations vehicle was $163 compared to $28 for the Charles said. Jackson Road in Ann Arbor. The project is who have mortgages paid down.” same period in 2007, said Paul Taylor, chief “These are very big and very heavy, so we eligible for $526,000 in reimbursement from Butler said 30 percent is low. economist at the National Automobile Dealers need to build a special facility,” he said. local and school tax captures for asbestos “In this area, we’d be lucky if it’s more Association. Retail net profit through Novem- The standard height of a wind tower is 250 and lead paint removal. like 50 percent,” he said. ber on a used vehicle dropped to $45 in 2008 feet, but can range up to 320 feet or taller. American Photo Marketing Inc. plans to On the bright side, Butler is expecting a from $253 in 2007. Also approved for incentives were: spend about $4.2 million to purchase and rally towards the last half of 2009 with 12 Used cars are a focus for dealers because Detroit based metal fabrication com- renovate two obsolete 1950s elementary million units being sold; more optimistic of the greater profit margins, but also due to pany W Industries Inc. was awarded a $9.7 school buildings in Ypsilanti and convert than the 10.5 million expected by the OEMs. consumer demand, said Dave Butler, a gen- million state tax credit over 10 years for a the sites into a yearbook printing house “But it’s going to be a very rocky first six eral manager with the Troy-based Suburban $36 million expansion expected to create and a digital photo production facility. The months,” he said. Collection, composed of 31 stores. more than 500 jobs. project is eligible for $86,000 in reimburse- Daniel Duggan: (313) 446-0414, ddug- With very few leasing programs avail- Troy-based aerospace supplier Models ment for asbestos removal and updates to [email protected] able, consumers coming out of leases are & Tools Inc. plans to invest $6.2 million and the buildings’ lighting, fixtures and infra- Automotive News reporter Alysha Webb looking for cars with comparable monthly create 72 jobs when it moves to a new, structure. also contributed to this story. 20090209-NEWS--0020-NAT-CCI-CD_-- 2/5/2009 4:06 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS February 9, 2009 CALENDAR TUESDAY HEAR COKIE ROBERTS FRIDAY FEB 10 Business Over Breakfast: Increase En- IN BLOOMFIELD HILLS trepreneurship in Michigan. 7:30-9:30 Award-winning journalist and best- a.m. Crain’s Detroit Business. With: selling author Cokie Roberts will Robert Fowler, president and CEO, speak at the Small Business Association of Michi- Academy of the gan; and Mark Clevey, vice president Sacred Heart in for entrepreneurship, Small Business Bloomfield Meetings. Association of Michigan and execu- Hills on Friday. tive director, Small Business Founda- A private tion of Michigan. DoubleTree Guest conversation Suites Fort Shelby, Detroit. $35. Con- and Q&A tact: (313) 446-0300. session for patrons and ACG Detroit Economic Forecast Meet- community ing. 7-9 a.m. Risk Management Associ- leaders, ation, Detroit Roberts moderated by Chapter; Associa- Mary Kramer, publisher of Crain’s tion for Corpo- Detroit Business, begins at 10:15 rate Growth De- a.m. A general session and troit Chapter. luncheon, moderated by Chuck With: Craig Ruff, Stokes, editorial director of WXYZ- senior policy fel- TV Channel 7, begins at 11:30 low, Public Sector a.m. Conventions. Consultants. Glen Oaks Golf & Tickets for the private conversation Country Club, and Q&A session are $200. Farmington Hills. Luncheon tickets are $50. For $25 for ACG and more information, contact (248) Ruff RMA members, 646-8900, ext. 170. $45 for guests. Contact: Sharon Kim- ble, (877) 894-2754. COMING EVENTS Thriving in Uncertain Times with Cul- WEDNESDAY tural Competence. 5:30-8:30 p.m. Feb. FEB 11 18. 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Crain’s Detroit Business can no $40 members, $55 longer guarantee that we will use nonmembers, add telephone, mail or e-mail $10 after Feb. 9. contributions for our weekly print Contact: (877) 633- Courter calendar and online calendar 3500. listings. If you want to ensure listing online Wayne County State of the County and be considered for print 2009. 6-7:30 p.m. Wayne County Exec- publication, please use the online utive Office. With: Wayne County Ex- calendar listings section of ecutive Robert Ficano. The Village www.crainsdetroit.com. Here’s Theater at Cherry Hill, Canton Town- how to submit your events: ship. Contact: Deanna Burtka, (313) From the Crain’s home page, click 224-0340. “Detroit Events” in the red bar near the top of the page. Then, Google training seminar. 8-10 a.m. click “Submit Your Entries” from Small Business Association of Michi- the drop-down menu that will gan. 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February 9, 2009 CRAIN’S DETROIT BUSINESS Page 21 BUSINESS DIARY ACQUISITIONS Kettering, Ohio, announced the launch of Open Dealer Exchange, Ann Arbor-based nonprofit Altarum Dearborn, a new company created to Inc. has completed the acquisition of Rockville, Md.-based KAI Research improve the vehicle financing process Inc. KAI will operate as a for-profit, for finance sources, dealers and con- wholly owned subsidiary of Altarum, sumers. The Open Dealer Exchange and continue to operate from Mary- will help finance sources, dealers and land with about 70 employees. consumers create a faster, more accu- rate sales process. Beckett & Raeder, Ann Arbor, a provider of landscape architecture, planning, engineering, environmental MOVES and ecological services, has acquired Lee & Associates from Novi to 100 Grobbel Environmental & Planning Associ- Galleria Officentre, Suite 401, South- ates, Traverse City. field. Telephone: (248) 351-3500. Web CrimeCog Technologies Inc., Ann Arbor, a site: www.lee-mi.com. law enforcement technology company, has acquired DDP Police Services, Glad- NEW SERVICES win. Grand River, Ann Arbor, a Web design and development company, has cho- CALL FOR ENTRIES sen RoboHead, a Web-based market- IABC/Detroit, Royal Oak, invites com- ing project management software tool, munications professionals to submit to streamline project progress for its their work to the 2009 Renaissance clients. Aquent, Boston, developed Awards. Industry peers will recognize RoboHead. Grand River is able to pro- Meetings by Doubletree best practices in communication man- vide clients with 24/7 access to pro- agement, marketing, public relations, jects with real-time information and L]Zi]ZgndjgZkZci^haVg\ZdghbVaa!Vii]Z9djWaZigZZ;dgiH]ZaWn$9Zigd^i9dlcidlc!lZ]VkZi]ZhZgk^XZh![VX^a^i^ZhVcY writing and graphic design. The pro- status. It allows the Ann-Arbor based gram is open to all professionals in company to collaborate online in ZmeZg^ZcXZidbV`Z^iV]j\ZhjXXZhh#L^i]ildaZkZahVcYdkZg'&!%%%hfjVgZ[ZZid[Xdc[ZgZcXZheVXZ!i]ZcZl9djWaZigZZ Southeast Michigan, northwest Ohio working review sessions with clients d[[ZghVkVg^Zind[hZi"jedei^dchidbZZindjgWjh^cZhhcZZYh#BZZi^c\gddbh^cXajYZ^cY^k^YjVaXa^bViZXdcigdah!iVWaZh and southwest Ontario. Entry guide- on the coasts and Europe, avoiding l^i]]VgYlg^i^c\hjg[VXZh!*)^cX]A89eVcZahVcYl^gZYVcYl^gZaZhh>ciZgcZiVXXZhh#6aa^cXajh^kZ8dbeaZiZBZZi^c\ lines and additional information can costly travel. be found at www.iabc EVX`V\ZhbV`ZeaVcc^c\ndjgZkZciZVh^Zgi]VcZkZg#Ndj»aaZc_dni]Zhjeedgid[djgZmeZg^ZcXZYVcYViiZci^kZiZVbbZbWZgh RouteOne L.L.C., Farmington Hills, is detroit.com. Deadline: March 18. l]dVgZYZY^XViZYidbV`^c\ndjgZkZci[aVlaZhh#L]Zcndj]VkZVcZkZciVii]Z]^hidg^XVa offering a new tool to finance sources wishing to connect to dealers electron- 9djWaZigZZ)-''+ items to be offered, provide print man- tion. They may then review the credit GZhZgkVi^dch/&"-%%"'''"IG::=diZa9^gZXi/(&(.+("-.%% agement services and fulfill orders. application online within RouteOne lll#YZigd^ihj^iZh#YdjWaZigZZ#Xdb and post the finance source’s deci- Oakland County has entered into a ® ® sions to the dealer, all within the Hilton HHonors membership, earning of Points & Miles , and redemption of points are subject to HHonors Terms and Conditions. three-year contract with Entrust Inc., ©2008 Hilton Hotels Corporation RouteOne user interface. Addison, Tex., to provide security for online tax and bill payments via the SmartAuction, Troy, will offer county Web site. The county has con- QuickTurn, its exclusive inventory tracted with Entrust to provide the management solution, to its online Extended Validation SSL Certificate users. QuickTurn will offer eligible to protect data in online transactions. SmartAuction dealers customized ve- hicle purchasing and stocking plans, Advanced Photonix Inc., Ann Arbor, up-to-date appraisal tools, aging in- announced that its subsidiary, Pi- ventory identification, pricing recom- , Ann Arbor has re- cometrix L.L.C. mendations and detailed reports to ceived two new terahertz contracts better manage dealership perfor- from the United States Air Force total- mance. ing $850,000. The largest contract is a $750,000 Phase II STTR contract for de- velopment of a higher power terahertz PROJECTS transmitter for surface and gas spec- Lakeside Towers, Phase II, Sterling troscopy applications that could be uti- Heights, has been completed and is lized with the T-Ray 4000 system. The part of the Lakeside Villas communi- $100,000 Phase I SBIR contract is for de- ty. The Sterling Construction Corp., velopment of semiconductor material Mishawaka, Ind., built the project in capable of increasing terahertz power. collaboration with National Church Wall-U, Trenton, a maker of life-sized Residences, Columbus, Ohio, as the vinyl cutout decals, has signed an developer and owner, and Berardi agreement with the 12-team National Partners, Columbus, Ohio, as the ar- Lacrosse League, New York, to produce chitect firm. vinyl graphics of players. Corrosion Fluid Products Corp., Farming- STARTUPS ton Hills, a distributor and supplier of Inner Door Center, Royal Oak, is a engineered systems and processed fluid new multidisciplinary prevention and handling equipment, has signed a con- treatment center for eating disorder tract with Madison Heights-based mar- recovery and related addictions, with keting and promotions firm Creative emphasis on all self-destructive be- Services Co. to provide a video series haviors. Telephone: (248) 336-2868. defining products and services. Web site: www.innerdoorcenter.com. The Staffing Co. L.L.C., Birmingham, EXPANSIONS utilizes behavioral-based interview- Bob’s Big Boy restaurant group, War- ing to match the personality of the ren, has opened its 12th California lo- company to the individual, and spe- cation in West Covina, a Los Angeles cializes in temporary-to-permanent, suburb. direct hire and project-based place- Ladson, S.C.-based defense contractor ment. Telephone: (248) 723-8100. Web Force Protection Inc. has moved its 27 lo- site: www.thestaffingcompanyllc. cal employees to Sterling Heights, occu- com. pying the space formerly used by Kuka Robotics. Force Protection is a bidder on the estimated $3 billion contract to design and build MRAP-ATVs, the all- DIARY GUIDELINES terrain version of conventional Mine Resistant Ambush Protected vehicles Send news releases for Business to be used in mountainous regions of Diary to Departments, Crain’s Afghanistan. Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or Zoup!, a Southfield-based restaurant chain offering soups, salads and sand- send e-mail to cdbdepartments@ wiches, has opened a location in the crain.com. Use any Business Diary Oakland Center food court at Oakland item as a model for your release, University, Rochester. and look for the appropriate category. Without complete JOINT VENTURES information, your item will not run. Photos are welcome, but we cannot Automatic Data Processing Inc., Gene- guarantee they will be used. va, Ill., and Reynolds and Reynolds, 20090209-NEWS--0022-NAT-CCI-CD_-- 2/5/2009 5:01 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS February 9, 2009

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

Help for Employers group helps with job-hunting skills, has jobs board Many of the calls the American To help fill the need for services on a larger board that all member er said. Society of Employers gets from its to aid displaced employees in employers can tap when looking “The objective is to keep people job seekers business members these days are their job searches, the American for employees. in Michigan,” when possible, she inquiries about handling layoffs Society of Employers in January The efforts originally had been said. areerWorks is a week- and requests for assistance for the began offering résumé writing planned for workers displaced But if that’s not possible, expo- ly collection of adver- employees those companies have and job interview coaching, as from ASE member companies, sure on a larger, national board C tising, news and infor- laid off. well as an online job board for alone, said President and CEO could improve the chances of hire mation geared toward “So many of the companies do- those employees and others in the Mary Schroeder. But the associa- for those employees. readers in career transition ing layoffs are small to midsize,” state searching for work. tion has since decided to open it For more information about said Joseph DeSantis, director of The society is exploring a pilot up to all displaced workers in ASE’s free, transitional services or looking for new jobs. communications. program with about 60 other em- Michigan. and job board, visit www.aseon- Included in our coverage: “Their feeling is they can’t even ployer associations around the “We’re looking at this as a com- line.org “CareerTransition,” high- afford outplacement services.” country to post Michigan résumés munity type of service,” Schroed- — Sherri Begin Welch lighting a person who has made a successful leap from one profession to another; a calendar of job- and training- related events; and news sto- EMPLOYMENT CALENDAR ries affecting the job market. Market yourself are invited to participate in its than 50 high-tech companies will Help for older workers CareerWorks is also on- upcoming “Great People” career be represented, including IBM. line. On Wednesday Northwood fair that will include local busi- Job categories will include Java, Operation Able of Michigan is On our Web site, at University’s Troy campus, 1900 nesses. There is a $50 employer PeopleSoft, ERP, Cobol, Software hosting an “Ability is Ageless” job and career fair designed for people www.crainsdetroit.com/ W. Big Beaver Ave., Suite 200, is registration fee, which brings a Engineer, C#, C++, SQL, Semicon- 40 and older who are seeking em- playing host to a free career sem- 6-foot table, two chairs and ductor, Red Hat, Open Source, Pro- careerworks, you can post an ployment or exploring training for inar and workshop titled “Mar- lunch. Contact Beth Nuccio, ject Manager, Embedded Software, anonymous résumé and at- keting Yourself in a Changing a new career. There is no fee to at- (248) 276-8217, beth.nuccio@bak- Data Analysts, Electronic jobs, tract employers. You can Economy.” One-on-one coaching er.edu or visit www.baker.edu. tend the event 9 a.m. to 1 p.m. Communications, and more. scan the newest jobs from will be available. Register by The fair wil run 10 a.m. to 3 p.m. March 25 at the Plaza Hotel and Job seekers are asked to submit our area or all of Michigan. calling (888) 903-0031, or visit March 4. Conference Center in Southfield. a résumé and preregister at You can set up e-mail alerts www.northwood.edu/mi. Click A list of exhibitors will be avail- http://www.techcareerdirect.com “career services” on the left of able at www.operationable.org in so whenever a job that inter- Tech workers network /Employment/JobDisplay.asp?id the page, under “campus life and early March. Operation Able is a ests you is posted, you’ll Michigan Works affiliate. services.” Tech Careers Direct is hosting a =78. know about it. technology-workers networking Employers can post jobs or event with high-tech recruiters search résumés for talent Baker career fair and employers from 5-9 p.m. Feb. they seek. Current and former students 26 at the Corner Brewery, 720 CareerTransition of Baker College of Auburn Hills Norris St. in Ypsilanti. More Name: Shawn Stafford, 36 Education: Bachelor’s degree in business ad- ministration from Michigan State University in 1990, master’s degree in business administra- CAREER MOVES tion from University of Detroit Mercy in 2000. Last career: Eight years in the automotive in- dustry. Final position was as global purchas- FRANCHISE OPPORTUNITIES POSITIONS SOUGHT Call Us For Personalized ing manager at Ford Motor Co. He resigned in Service: (313) 446-6068 2004 to start a multifamily development compa- JET’S PIZZA FRANCHISES IN NORTHERN OHIO Three operating stores with future territorial Want to live and work where you play? ny. Call 586-412-0010 CLOSING TIMES: Monday 3 p.m., agreement. Petoskey is a pristine resort area of one week prior to publication date. New career: President and CEO of Ressco, a Please call us for holiday closing times. northern Michigan where skiing, company that specializes in the acquisition, de- snowmobiling, golfing, boating and FAX: (313) 446-1757 Shawn Stafford velopment and management of multifamily LEARN WHY OWNING A RECESSION E-MAIL: [email protected] RESISTANT SPEED QUEEN COIN LAUNDRY fishing are Optimum. Petoskey is also real estate. Ressco also offers services in prop- INTERNET: Former career: IS SO PROFITABLE home to Odawa Casino Resort which www.crainsdetroit.com/section/classifieds Global purchasing erty management, asset management and con- Financing & Locations is currently searching for superior Confidential Reply Boxes Available manager struction management. Free Informational profit seminar held Saturdays talent to compliment our leadership 10 am -12 noon. Call for details & reservations. PAYMENT: All classified ads must be New career: Why he decided to make the switch: “In 2001, I UNIVERSAL COIN LAUNDRY MACHINERY team for our spectacular property. prepaid. Checks, money order or calculated my net worth and I was embar- www.universal-laundry.com Crain’s credit approval accepted. President and CEO 248-435-6200 Visit: Credit cards accepted. rassed. I had a relatively high income but few odawacasino.com/financedirector.html See assets and many liabilities. My net worth at for all the details on your best Crainsdetroit.com/Section/Classifieds the time was negative. That, coupled with the Crain’s Classifieds Gets Results opportunity for 2009. for more classified advertisements fact that I’ve always been an entrepreneur at heart, motivated me to pursue my own busi- ness.” How he made the transition: Obtained an ap- praiser’s license and read real estate how-to books. Gained experience by purchasing in- vestment property and flipping houses while still employed at Ford. Obstacles overcome: “I underestimated the re- cruitment and hiring process. We made a lot of hiring mistakes early on.” Advice for others: “Understand your risk tol- erance and develop a good business plan before you make your exit. There will be a lot of sleep- less nights in the beginning, but stay focused and determined because it will all pay off in the end.” If you have made a similar change in your ca- reer, or know someone who has made an inter- esting career transition, contact Andy Chapelle, managing editor at Crain’s Detroit Business at [email protected]. 20090209-NEWS--0023-NAT-CCI-CD_-- 2/5/2009 5:00 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 23

EMPLOYMENT PEOPLE EDUCATION counts manager, Buehler Motor Inc., sor, Goodwill Industries of Greater Detroit, Detroit, from specialist in au- NEWS Mark Brucki to IN THE SPOTLIGHT Detroit, from sales manager, trans- dit and internal controls, General executive direc- mission business unit, Continental Motors Corp., Detroit. Uncle Sam has jobs tor of economic Amanda Automotive Systems, Auburn Hills. development and Totaro, a Todd Heavin to senior vice president Jan McDermott to president, Women The economic downturn has government rela- senior vice of operations, Citation Corp., Novi, Business Owners of Southeastern Michi- gan, Ann Arbor, remaining owner and forced private industry and state tions, Lawrence president of from senior vice president and COO, Technological the Las Vegas- innkeeper, Davies House in George- and local government to shed jobs, FormTech Industries L.L.C., Royal town Bed and Breakfast, and president, University, South- based The Fine Oak. but one major employer in the field, from direc- Point Group, Echo Enterprises L.L.C., Ann Arbor. country is hiring: the federal gov- tor of technology has been Tony Mascolo to vice president of Tel Ganesan to president, Detroit business development and sales, Vec- ernment. partnerships. named vice chapter, The Indus Entrepreneurs, tor CANtech Inc., Novi, from vice pres- President Barack Obama’s pro- I.W. Winsten to president of Southfield, remaining CEO, Vision Brucki ident of sales, marketing and program Tech Solutions, Farmington Hills. posed $800-plus billion economic chairman, Wayne marketing at management, Saturn Electronics and State University Law School Board of aid plan, which includes heavy Totaro Greektown Engineering, Auburn Hills. Visitors, Detroit, remaining partner, Casino Hotel in SERVICES spending on public works, is ex- Chandra Broadnax to director of sales Honigman Miller Schwartz and Cohn Detroit, subject to regulatory Daniel Hamburg to design director, pected to increase the ranks of gov- L.L.P., Bloomfield Hills. and marketing, Royal Arc, Flat Rock, approval. from sales manager, HP Homes, Farm- Scarcello Associates Inc., Bingham ernment workers, although mostly Andre Konski to chairman, depart- Farms, from senior designer, Redico, at the state and local level. Totaro, 47, is a turnaround ington Hills. ment of radiation oncology, Wayne specialist who intends to bring the Southfield. A report released in January by State University School of Medicine, hotel out of Chapter 11. NONPROFITS Christina Romer, head of the White Detroit, and service chief for radia- She has more than 20 years of House Council of Economic Advisers, tion oncology, Barbara Ann Karmanos Kathleen Walgren Cancer Center, Detroit, from chief marketing experience and has to executive direc- PEOPLE GUIDELINES and Jared Bernstein, an economic served as a senior marketing medical officer, Fox Chase Cancer tor of Southeast Announcements are limited to policy adviser to Vice President executive for Reno-based Harrah’s Center, Philadelphia. Michigan for the management positions. Nonprofit Joe Biden, predicted that more Entertainment, American Casinos Great Lakes divi- than 90 percent of the 3 million to 4 and Entertainment Properties in and industry group board ENGINEERING sion, American appointments can be found at million jobs that Obama proposes Greg Bernas and Las Vegas, and St. Louis-based Cancer Society, Isle of Capri. www.crainsdetroit.com. Send to save or create would be in the Randy Stephens Southfield, from submissions to Departments, executive director private sector. to chief engineer, Totaro has a bachelor of arts from Crain’s Detroit Business, 1155 Toyota Motor En- the University of Miami. and CEO, The That was based on a $600 billion Gratiot Ave., Detroit, MI 48207- stimulus package; the one being gineering & Man- Heat and Warmth ufacturing North Fund, Detroit. 2997, or send e-mail to debated in Congress is more than Colburn L.L.P., Detroit, from associate, Walgren [email protected]. America, Ann Ar- Ronald Campbell $800 billion. Dickinson Wright P.L.L.C., Detroit; bor, from execu- to president, American Institute of Ar- Releases must contain the person’s Moreover, many baby boomers tive program Karl Barr to partner, from intellectual name, new title, company, city in property counsel, General Motors chitects Michigan, Detroit, remaining who are getting government pay- manager. principal planner and preservation which the person will work, former Corp., Detroit; and Scott McBain to title, former company (if not checks are at retirement age. The partner, from intellectual property architect, Oakland County Planning Office of Personnel Management esti- FINANCE and Economic Development, Water- promoted from within) and former Stephens counsel, Delphi Corp., Troy. mates that 58 percent of superviso- John Worthington ford Township; and Alan Cobb to vice city in which the person worked. to CFO, Fifth Third Bank, Eastern president, remaining vice president, Photos are welcome, but we cannot ry and 42 percent of nonsuperviso- MANUFACTURING Albert Kahn Associates Inc., Detroit. ry workers who were on the Michigan, Southfield, from vice presi- guarantee they will be used. David Griffith to automotive key ac- Bill Wimsatt to senior business advi- federal payroll as of October 2004 dent and controller. will be eligible to retire by the end of next year. — The Associated Press Border patrol is hiring Job-seekers, head for the border. The U.S. Customs and Border Pro- tection is seeking to hire more than 11,000 people this year. No experi- ence necessary. Linehan Black “At our academy, we will teach Wendy Linehan to vice president and you what you need to know,” said senior trust officer, Fifth Third Bank, Tara Dunlop, a Customs and Bor- Southfield, from estate and tax attor- der Protection spokeswoman. ney, Dykema Gossett P.L.L.C., Bloom- “There are so many different ca- field Hills; and W. Brian Black to se- nior vice president of business reer tracks in this agency. You banking, from executive vice presi- don’t necessarily have to carry a dent, Majesty Capital Management, gun.” Grosse Pointe Farms. Dunlop said the agency has con- Jenny Davis to senior vice president of tinued to grow since the 2001 terror- investments, Leonard & Co., Troy, ist attacks. There are openings for from first vice president of invest- 3,000 customs and border patrol offi- ments, Smith Barney, Southfield. cers, 4,600 border patrol agents, LAW 3,000 mission and operations sup- port staff, 350 agriculture special- John Deegan, Michael Fleming, Michael Hagerty and Ellen Jannette to ists, and 300 air and marine officers. shareholder, Plunkett Cooney, Bloom- The job has a starting salary field Hills, from associate. range of about $35,000 to $45,000, Jason Thompson depending on qualifications. to shareholder, Workers who meet performance Sommers standards are bumped up to Schwartz P.C., around $55,000 after two years. Southfield, from principal, J. Border Patrol agents can earn an Thompson & As- additional 25 percent of their base sociates P.L.C., salaries each year in overtime pay. Southfield. Dunlop said expectations vary Rick David to by job, but applicants must be U.S. CFO, Butzel Long P.C. Detroit, from citizens, have lived in the country Thompson partner, KPMG for the last three years, and be un- L.L.P., Detroit. der age 40 at time of appointment. Donna MacKenzie to partner, Olsman, All trainees are required to learn Mueller, Wallace & MacKenzie, Spanish. Berkley, from associate. — The Associated Press Edmund Anderson to partner, Cantor 20090209-NEWS--0024-NAT-CCI-CD_-- 2/5/2009 4:04 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS February 9, 2009 St. John, Oakwood lose $7M contract lawsuit appeal

BY JAY GREENE clined to pay McKay for its work, The Jan. 20 appellate decision St. John Health also is review- Center, which at the time was los- CRAIN’S DETROIT BUSINESS according to the Jan. 20 appellate says that hospitals operated by St. ing the court’s decision and con- ing millions of dollars. court decision. John and Oakwood in Wayne sidering its options, said Daniela The initial application was de- The Michigan Court of Appeals has More than 10 other hospitals in County increased reimbursement Scholl, St. John’s corporate media nied by the Centers for Medicare and upheld a $7 million judgment Wayne and Oakland counties that by $27 million per year by reclassi- director. Medicaid Services. However, in No- against St. John Health in Warren also were part of the wage index fying the Medicare wage index Henry Ford Health System in De- vember 2003, Congress approved and Dearborn-based Oakwood reclassification paid McKay for its from Detroit to Ann Arbor, where troit originally was sued by McK- the Medicare Prescription Drug, Healthcare for breaching a contract services, said Bob Brown, the wages were higher. ay for nonpayment, but settled af- Improvement and Modernization with a consulting firm over a McKay consultant and Detroit na- Brown estimated that the reclas- ter a unanimous verdict in 2006 by Act, which included a provision al- Medicare geographic wage index tive who handled the project. sification increased Medicare pay- a Wayne Circuit Court jury. lowing hospitals that were denied reclassification in 2004 that The hospital systems state two ments by more than $100 million The contract called for the hos- for reclassification to appeal. brought millions of dollars in in- reasons for not paying: The con- annually for all the hospitals in pitals to pay McKay 15 percent of While St. John declined to pay creased reimbursement. tract was void because it involved the two counties. the additional reimbursement for McKay for the disputed contract, After Shreveport, La.-based an improper “contingent-fee con- Oakwood said it plans to appeal three years, Brown said. Brown said St. John is still a client McKay Consulting Inc. assisted the tract for lobbying” and because the the decision to the Michigan In early 2003, Brown said McKay and has hired the firm for other hospitals in boosting Medicare work was contracted under one ap- Supreme Court, said Paula Rivera- became involved with the wage re- work. payments by about $600 per pa- plication process but was eventu- Kerr, its media relations manager, classification project after a re- Jay Greene: (313) 446-0325, tient, St. John and Oakwood de- ally secured under another. in a statement. quest for help by Detroit Medical [email protected]

REAL ESTATE Outgoing Karmanos CEO credited COMMERCIAL PROPERTIES OFFICE BUILDING

FOR LEASE – AVAILABLE NOW! 5500 sq ft In The Heart of Mexican Town. Great For with improving its financial health Offices Or Spacious For A Restaurant. Excellent Exceptional Commercial Location in Southwest Detroit. Gorgeous Building $11 per sq ft [email protected] Opportunities Available in BY JAY GREENE million in 2007 on revenue of $209 INDUSTRIAL PROPERTY CRAIN’S DETROIT BUSINESS million, said Patricia Ellis, Kar- the Heart of manos’ media relations manager. Bloomfield Hills John Ruckdeschel is leaving Bar- The fiscal 2008 results were affect- bara Ann Karmanos Cancer Institute ed by $850,000 in architectural and in stronger financial and opera- 1605 S. Telegraph Rd. 2520 S. Telegraph Rd. legal fees related to possible reno-    Signature Off I-75 Grand Blanc Low Lease Rates Low Expenses tional shape than it was before he vations and an aborted move to the On-site Mgmt  Exterior Pad Site Available SIGNAGE Now Leasing 83,700 sq. ft. took over as CEO six years ago, now-shuttered St. John Riverview Available said board chairman Alan S. Catellus Group, LLC (810) 695-7700 Hospital. www.waretechindustrialpark.com Schwartz. But Schwartz said fiscal 2009 But the nationally known lung profitability is ahead of budget. cancer re- “Our financial numbers are bet- AVAILABLE NOW searcher also ter than we have ever been this fis- 4,000 to 100,000 sq. ft. has told friends cal year that ends May 1,” and associates Also 10,000 & 25,000 sq. ft. (248) 332-4444 Schwartz said. 1900 S. Telegraph Rd. 2550 S. Telegraph Rd. that Detroit’s Free Standing Bldgs w/truckwells. [email protected] Larry Horwitz, president of the 1 Mile from Metro Airport poor economy Economic Alliance of Michigan, said REA CONSTRUCTION and a downturn Ruckdeschel did a good job helping SALE or LEASE: in charitable (734) 946-8730 Karmanos achieve its goal of be- Six Prime giving have pre- coming an independent hospital. Also Heavy Industrial sented chal- “He was also able to bring in ad- Land Available Office, Medical & lenges that will Retail Properties Ruckdeschel ditional charitable donations in www.reaconstruction.net limit the ability the beginning his tenure, but the Available of Karmanos to grow in the future. last six or eight months, through Two weeks ago, when Ruckde- no fault of his own, he faced great 2053-2081 S. Telegraph Rd. BROKERS PROTECTED 40700 Woodward Ave. OFFICE BUILDING schel gave notice to Schwartz that difficulty,” Horwitz said. he planned to leave the cancer cen- INVESTMENT PROPERTY PROPERTY MANAGEMENT Karmanos’ charitable donations FREE Rent for 5 years with no hidden fees! ter sometime in June, Schwartz and gifts declined 14 percent to Manufacturing/Industrial businesses looking for new PRICE REDUCED Attention Property Developers said Ruckdeschel told him that he $11.8 million in fiscal 2008 from locations? Two buildings available 18,000 sq. ft. and LYON TOWNSHIP/BANK OWNED “got an offer he couldn’t refuse” 12-unit rental townhouse project available. The City of Cadillac is requesting proposals $13.7 million in 2007, Ellis said. 34,000 sq. ft. with separate office space of 2,000 sq. Get a great deal on this investment opportunity. from private developers interested in rehabil- from the Nevada Cancer Institute in Schwartz said Ruckdeschel and ft. Buildings located in Detroit South of Eight Mile and Contact Karen Shepherd at 248-290-5300 ext. 311 itation and redevelopment of the Cobbs & Las Vegas. the board were disappointed in not East of Mound Road. Must be in business for mini- Money Partners Wanted Mitchell Building at 100 E. Chapin St., a Ruckdeschel declined an inter- being able to move forward with WE HAVE EARNED 20% to 50% in the foreclosure mum of 5 years. You pay for your own business, per- business. 12 to 48 mo Term. 12% guaranteed. former lumber company showroom beauti- view request. two expansion projects, one for $95 sonal taxes and maintenance with the buildings. Call now. Mid-City Real Estate 800-826-2517 fully decorated with different wood species. “Jack is a very able leader and million in 2006 and another, $47 Fenced in yard with evening security guard. Building FOR SALE OR LEASE Numerous financial incentives available. he has prodigious breadth of million project announced in mid- A large variety of gas stations, restaurant, bar, Contact Precia Garland, Asst. City Mgr., City knowledge and energy,” Schwartz wired for factory use, working overhead crane, plenty investment retail and office properties 2007, on the DMC campus. of Cadillac, 200 N. Lake St., Cadillac, MI said. “He helped us achieve inde- of indoor and outdoor storage, several powered truck LA Hood Realty 313-885-5950 49601, (231) 775-0181, ext. 120, for RFP In between, Karmanos pursued wells. Serious inquiries only! pendence from OFFICE BUILDING document, or download it from the City of a deal in April 2007 to purchase Email us at: [email protected] Cadillac website at www.cadillac-mi.net. the (Detroit Med- Riverview. However, DMC suc- Proposals must be submitted per RFP no ical Center), but cessfully sued to prevent the move. FOR SALE later than 5 p.m. on Tues., March 24, 2009. he was not a “We were very disappointed Call Us For Personalized one-man band. with Riverview, but we have other Value Add Apartment Portfolio Service: (313) 446-6068 RESIDENTIAL PROPERTY We have a plans for expansion,” Schwartz strong manage- said. “We call them affiliations Residential Development ment staff and CLOSING TIMES: Monday 3 p.m., 145 Acres +/- In Macomb Township, MI with other enterprises to (develop one week prior to publication date. Approved 759 total Residential Units. 133 Lots with we are in re- outpatient centers) in other parts of Please call us for holiday closing times. water and sewer. (ready to build) 4 models 90% markably good the (Detroit metropolitan) region.” completed. Golf course across the street. 15 Million shape and are FAX: (313) 446-1757 invested-you can own for 4.2 Million or best offer. For example, Karmanos signed making money. Schwartz E-MAIL: [email protected] Call me at 586-915-4441 Bill McMachen a deal last July to lease space for 3 Properties Totaling 520 Units Not all hospitals can say that.” an outpatient oncology clinic at INTERNET: WATERFRONT PROPERTY www.crainsdetroit.com/section/classifieds • $7,280,000 or $14,000 Per Unit While Ruckdeschel has cited a Meadowbrook Medical Center in • Purchase 1 Property or Entire Portfolio dip in charitable giving and inabil- Novi. Karmanos also operates a Confidential Reply Boxes Available LARGE 1 ACRE LAKEFRONT LOTS - 15 min from • Opportunity to Enhance Value Novi/Ann Arbor on all sports lake in Brighton. ALSO, ity to expand as problems the hos- clinic in Farmington Hills. PAYMENT: All classified ads must be 4100 sf new Lakefront home ready for move-in 90 pital will have to confront, • All Property Level Due Diligence Provided days. Discounts Available.Call 810-220-8060 Over the next several weeks, prepaid. Checks, money order or Before Bid Deadline Schwartz said the overall financial Schwartz said the Karmanos Crain’s credit approval accepted. ON ORCHARD LAKE health of Karmanos has improved. Credit cards accepted. For More Info Please Contact: 4 bedroom ranch, 3 1/2 baths on board is expected to name an inter- Barry Swatsenbarg 1.4 acres premium lot. 248-335-0104 Net income from operations de- www.5081commerce.com im CEO and then conduct a nation- See 34975 W Twelve Mile Rd [email protected] clined 50 percent to $1.4 million in al search for a new CEO. Farmington Hills 48 Acres with 250 feet of Lake Frontage Michigan 48331 248.848.4178 Crainsdetroit.com/Section/Classifieds 248.848.4178 Investment/Hunting/Equestrian/Estate/Develop fiscal 2008 ended April 30 on net Jay Greene: (313) 446-0325, for more classified advertisements www.friedmanrealestate.com 50 Min from Detroit (Linden, MI) No motors lake revenue of $226 million, from $2.8 [email protected] $349,000 - Reduced by 50K- (810)444-3510 20090209-NEWS--0025-NAT-CCI-CD_-- 2/6/2009 6:25 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 25 What business needs to know about Granholm’s plans

BY AMY LANE The upside is that transferring forming the civil service system CAPITOL CORRESPONDENT the $4 million wetlands program, and emphasizing technology. staffed by about 30 people, out of The first department targeted LANSING — The state of Michi- the Michigan Department of Environ- for elimination is the Michigan De- gan is changing the way it does mental Quality would save $2.1 mil- partment of History, Arts and business. lion in general fund money. Libraries. Gov. Jennifer Granholm out- Michigan would join 48 other Details of the elimination and lined her vision for the business of states that do not have a state-dele- the effect on departments like the government in her State of the gated program. The move would Michigan Council for Arts and Cultural State address last week. also put all wetlands permitting Affairs and arts and cultural grants The next shoe to drop will be under the purview of one agency. will be revealed in this week’s bud- Thursday, when Granholm pre- Some requests, involving coastal get presentation. sents her budget for the upcoming wetlands now require both state Business groups like the Detroit 2010 fiscal year. and federal approval. Regional Chamber feel Cherry will “It’s not going to be a pretty bud- Developers like the Michigan As- do a good job, but would first like get,” said William Rustem, presi- sociation of Home Builders want wet- to see the results of a government dent and CEO of nonpartisan think lands regulation to stay with the efficiency commission, made up of tank Public Sector Consultants Inc. state. private- and public-sector individ- “And I think (the speech) did a pret- Lee Schwartz, executive vice uals, that was created in 2007 and ty good job of saying here, we’ve got president for government rela- is completing its work. to face realities in the economy and tions with the association, points what’s happened to us.” to “a basic level of certainty … as to what wetlands are, what the Buy Michigan First initiative Based on Granholm’s address, APIMAGES.COM big changes are coming for Michi- House Speaker Andy Dillon (left) and Lt. Gov. John Cherry applaud fellow DEQ is going to require.” State agencies currently give gan’s business community. Democrat Gov. Jennifer Granholm during her State of the State speach Tuesday. The state issues about 1,500 wet- Michigan-based businesses con- lands permits annually, generally tract preference in supplying Coal-fired power plants must Under one proposal, businesses But the most controversial part within a 60-day timeframe. While goods and services. jump through new hoops to get ap- could make money by installing of Granholm’s energy proposal the state has legally mandated Granholm wants to expand the proved. Developers seeking wet- solar panels or wind systems and will make it more difficult for new deadlines for issuing permits, program by requiring cities, town- land permits may face federal and selling the renewable energy back coal-fired power plants to be built that’s not the case at the federal ships, counties, school districts, not state review. Traditional state to their utility at a pre-set price. in the state. She directed state reg- level. universities and community col- departments could vanish. And Mike Shriberg, policy director ulators to consider additional fac- The biggest change that develop- leges to do the same. Michigan companies might reap of the Ann Arbor-based Ecology tors, including less-polluting alter- ers will notice is the amount of The requirement is expected to some new government contracts Center, said a way to implement natives, before they grant air time it will take to get permits ap- be part of Granholm’s budget pro- under an expanded Buy Michigan Granholm’s goal is through leg- permits. (See Capitol Briefings, proved, said Bobbi Roberson, a posal and would mean more gov- First initiative. islative passage of what’s known Page 7.) project manager at Ann Arbor- ernment contracts for Michigan Here are four things Michigan’s as a “feed-in tariff,” in which a cus- based Atwell-Hicks, which offers en- businesses if ultimately approved businesses need to know: tomer would be paid a fixed rate by Wetlands regulation vironmental consulting services to by the Legislature. developers. Business groups support the its utility for the renewable elec- Granholm proposes returning Energy “The Corps has some typical move, but need more details. tricity it generates. wetlands enforcement to the feder- time frames, but at the state level, Summer Minnick, director of Granholm is pushing a major Also in the works is a program al government. it’s the law,” Roberson said. “That state affairs at the Michigan Munici- energy platform focused on in- that would allow businesses to in- That means developers would standard helps you plan out the pal League, said municipalities creased renewable energy, gains stall Michigan-made products and need to obtain permits from the whole development process. And might conceptually support using in energy efficiency and less re- technologies that boost energy effi- U.S. Army Corps of Engineers, which sometimes there are additional Michigan products and services liance on fossil fuels. ciency, at no up-front cost. has an office in Detroit. permits tied to the wetland per- whenever possible, but the league mit.” has “traditionally opposed efforts to place pre-requisites” on state revenue-sharing cities receive. Streamlining government Minnick said the league wants Lt. Gov. John Cherry will lead to see details of the proposal. Aerospace: Auto suppliers targeted an effort to reduce the number of Amy Lane: (517) 371-5355, state departments from 18 to 8, re- [email protected] ■ From Page 1

about doing business with auto company — and many others who tioning to aerospace is not a quick suppliers. attended Thursday — is that tran- fix, and that aerospace is a risk- “All they hear is negative news sitioning to aerospace could re- averse industry that tends to value about Michigan, and they associ- quire significant infrastructure lead time and supplier stability MARKET PLACE ate that with … the supply base,” changes. Trenton Forgings, for ex- over saving a few cents per unit. Brown said “We’re saying no, ample, deals almost exclusively in Aerospace contracts are also typ- ANNOUNCEMENTS & FINANCIAL SERVICES these are very capable companies steel, while the aerospace industry ically lower volume, but can bring that are financially viable ... but uses primarily high-grade alloys gross profits of 25-30 percent — SERVICES Need Money Fast? Pay off Bills, Improve your Home, they also have this emerging mar- such as aluminum and titanium. much higher than typical automo- BUSINESS SERVICES Buy a car, Take a Trip. Apply now! ketplace – aerospace – that they’re Another major obstacle in tran- tive margins, Brown said. Call us: 1-888-936-2221 looking to diversify into as a posi- sitioning to aerospace is acquiring Brown has said that he would PART TIME CONTROLLER. Make or keep your business financially profitable at BUSINESS & tive, not as a last measure to sur- AS9100 certification, the aerospace like MAMA to work with as many less than half the cost. vive.” equivalent to the ISO certification as 200 companies by the end of the [email protected]. INVESTMENTS Brown’s group sponsored a required of automotive suppliers. year. One potential company is PTM BUSINESS OPPORTUNITIES workshop last Thursday in Troy The transition process, from start Corp., a Fair Haven-based parts sup- WE SELL BUSINESSES that drew nearly 400 employees to finish, takes a minimum of six plier that deals almost exclusively Confidential & Professional Service. Looking for a Business Partner-Willing to from auto suppliers looking for to eight months, Brown said. with the automobile industry. Re- Specialize in Manufacturing, Distribution & invest in and manage a commercial office and home furnishings business located in the Mid more information on diversifying “AS9100 is your dance card,” he cent declines in sales have forced Business -To-Business Service Industries. Michigan area. Call Gary at 989-239-2459 into aerospace. said. “It’s something you need to the manufacturer to cut salaries by Confidential Business Sale, Inc. Sponsors of the event, held at have.” 20 percent and reduce production to www.ConfidentialBusinessSale.com INVESTMENT OPPORTUNITIES Detroit Metro Office 313-221-9378 the Michigan State University Man- The transition could be consid- a four-day work week. Michigan Computer Network Service Provider looking agement Education Center, included erably easier for companies with “Automotive was so good to us for Technology Geek Investor to Partner.Please email Oakland County and Crain’s De- some experience in aerospace. for us so long,” said Kris Jacobs, a interest to: [email protected] troit Business. Plymouth-based NSS Technolo- salesperson with PTM. “No one *ÀœwÌà ˆ˜ÊÌ iÊÌ>˜Ž¶ EQUIPMENT & “We’re looking for opportunity gies Inc., for example, with revenue ever thought this would happen.” -̜«ÊÌ iÊi>Žˆ˜}Ê>˜`Ê*Փ«Ê*ÀœwÌÃÊ>ÃÌ° MERCHANDISE in every avenue,” said Jim Lang, a of $80 million a year supplying Annual membership dues for -«iVˆ>Ê*Àœ}À>“ÊvœÀ\ sales representative with Trenton cold-headed fasteners to tier-one MAMA are $8,400. Benefits include OFFICE FURNITURE „ xʵÕ>ˆvވ˜}ÊVœ“«>˜ˆià Forging, which posts annual rev- and tier-two automotive suppliers, interaction with industry leaders „ £ä¯Ê«ÀœwÌ>LˆˆÌÞʈ“«ÀœÛi“i˜Ì MUST SELL, OFFICE CLOSED enue of about $24 million supply- operates under the parentage of and access to experts and emerging ˆ˜ÊÎäÊ`>Þà Desks $99, Chairs $39, Files $49, Partitions $50, ing tier-two automotive suppliers. Precision Castparts Corp., a tradi- technologies. „ Lateral Files $99, Cubicles, Office Phone Systems Õ>À>˜ÌiiÊ£äää¯Ê£ÃÌÊ9i>ÀÊ," Call (248) 548-6404 or (248) 474-3375. Since last July, automotive sales tional aerospace supplier. MAMA will be making presenta- „ œÊÕ«vÀœ˜ÌÊVœÃÌʈvÊޜÕʵÕ>ˆvÞ at Trenton Forgings, which ac- “It could be a big help,” said Pe- tions the third Wednesday of each „ œÊ̜ÊÜÜÜ° ˆV ˆ}>˜x°Vœ“ CRAIN’S MARKET PLACE count for about half of total busi- ter Oliver, a sales rep for NSS month at Michigan Economic Develop- WORK! i>`ˆ˜i\Ê To Place Your Ad Call ness, have declined almost 50 per- Technologies. “I don’t think the ment Corp. diversification summits. iLÀÕ>ÀÞÊ£È]ÊÓää™Ê (313) 446-6068 x\ääÊ«“ or cent. competition is there.” Locations are pending. See 4- £‡ÇÎ{‡™{·£{xx Fax (313) 446-1757 The problem for the Trenton Brown emphasized that transi- www.michman.org for updates. 3MART#HANGE2EAL2ESULTS 20090209-NEWS--0026-NAT-CCI-CD_-- 2/6/2009 5:34 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS February 9, 2009 ESD: Plans symposiums ■ From Page 3

being technology and innovation, gy and clean transportation. labor and management relations, Webb said one of his first tasks quality of life and government is bringing other economic-devel- structure and regulation. opment organizations on board “This is hard work. It won’t be and assuring them the institute is easy or fast. We want to bring peo- intended to complement their ef- ple of different minds together, forts. He was scheduled to meet bring in legitimate differences of with Oakland County Deputy Ex- opinion and provide a place where ecutive Dennis Toffolo last Friday they can take off their silo hats and and will meet this week with Doug start problem-solving. We need a Rothwell, president of Detroit Re- new collaborative model between naissance Inc. the private and public sectors,” “I think it’s great that the orga- said Webb. nization that represents a key as- The institute set for Southeast Michigan, the en- grew out of an gineering talent base, is willing to idea by a former be a resource for the economic-de- ESD president, velopment work we’re doing,” David Skivven, Rothwell said. “As long as it’s done the retired exec- in a collaborative way, I think it’s utive director of terrific. The engineering commu- worldwide facil- nity can offer resources that oth- ities for General ers can’t.” Motors Corp. on Skivven Webb said the Green Zone geo- how the engi- graphically would encompass neering society might be able to Flint, Detroit, Downriver, Ann Ar- apply engineers’ talent for prag- bor and Lansing but that compa- matic problem-solving to the cur- nies outside the region could par- rent economic malaise by attract- ticipate in collaborative efforts. ing new capital and industries to He said the institute would seek the state. enabling state, local and federal “The board didn’t want to just legislation as warranted by how sit passively by while everything the enterprise zone and related ini- collapsed,” said Webb. tiatives take shape during upcom- The institute was approved by ing seminars. EDS’s board of directors on Dec. 22 “Someone asked me if this was and got seed funding from the just going to be another think Rackham Foundation. Its 28 direc- tank,” said Webb. “This is going to tors include Crain’s Detroit Busi- be a do tank.” ness publisher Mary Kramer. For more information, go to In addition to the enterprise www.esdinstitute.net. zone, the institute is targeting ini- Tom Henderson: (313) 446-0337, tiatives in clean water, clean ener- [email protected]

Nonprofits survey: Arts groups’ hit hardest by down economy Arts and cultural groups are The Michigan Nonprofit Asso- seeing steeper cash flow declines ciation/Johnson Center survey than other nonprofits, according also found: to a new survey due out today. 45 percent of surveyed non- The Michigan Nonprofit Associa- profits raised less in their 2008 tion and the Johnson Center at year-end fundraising than the Grand Valley State University sur- year before, with arts organiza- veyed over 200 Michigan nonprof- tions being the hardest-hit. its in January to assess the impact 45 percent of those surveyed the economy is having on them. that receive government funding Three-quarters of the arts and are seeing slow-pay on the part of cultural organizations that re- local, state and federal govern- sponded said they have seen de- ments. clines in cash flow the past six to 44 percent said they have 12 months. seen cash flow declines as a result That compares with 45 percent of the tightening credit market. of human services agencies re- The survey is available at porting cash flow declines. www.mnaonline.org. DIA: Art may go on road ■ From Page 3 can Association of Museums. The The DIA had a cash flow short- practice of loaning permanent col- age of about $1 million during the lection pieces to other museums last four months of 2008 and in Jan- has increased in its frequency over uary saw declines of about 5 per- the past 18 months, he said. cent to 10 percent, he said. “So long as the security and care The museum was able to offset of the collection and the loanee are the 2008 declines through smarter up to standards, there’s no reason purchasing, a hiring freeze and the why it shouldn’t be done,” he said, elimination of about six positions adding that it’s a mutually benefi- through attrition, Lau said. cial agreement that produces rev- But those things may not be enue for both sides. enough, Beal said. “We can’t give Loaning out parts of the perma- any details, but we are looking at a nent collection could help temper reduction in workforce.” cash flow declines at the DIA, said Sherri Begin Welch: (3130 446- CFO Loren Lau. 1694, [email protected] 20090209-NEWS--0027-NAT-CCI-CD_-- 2/6/2009 5:35 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 27 Musicians: Extra pay ■ From Page 1

the size,” said Sauro, 45, who years. Soon he’ll studied music performance have several three- at Juilliard and plays violin week gigs. in the show. “Back when “In order to stay “Les Misérables” came here marketable, I keep the first time in 1989, my piano skills up,” there was a full or- This said McCaffrey, who chestra, with six vio- story started playing at the lins, two violas, two originally appeared on Fisher when he was 21. celli and larger Detroit Make it Here “For quite a while, I woodwind and brass (www.detroitmakeithere was making a living sections. Things .com), a Web site for just playing — up until have changed quite area creatives powered I had the kids,” said a bit in the music in- by Crain’s and McCaffrey, whose sons dustry with more sponsored by Detroit are 2 and 4. “Now, I’m synthesizers, so Renaissance Inc. doing a little less of it. there are fewer play- ... But if you can find ers in all sections.” the right contacts and just rein- In the current production of vent yourself as needed, you can “Spamalot,” there’s only one vio- still do it — it’s just difficult.” linist — Sauro. Sauro recalls one season in the The show’s producer asked mid-’90s when she and a few others Sauro to hire the local orchestra. worked 47 of 52 weeks with the The musicians are sent the score Fisher, Masonic and Fox con- about two weeks in advance and tracts. Each venue has a contract then come together for their first, with the union and a contractor to and only, rehearsal with the tour- book musicians for shows. Some ing orchestra on opening night. musicians work at all venues be- “The contractors that are in cause each contractor hires them. charge of these tours know they When she started working as the can trust me to give them musi- contractor for the Fisher in 2000, cians that are well-versed in musi- her musicians averaged 22 weeks a cal theater — in all musical styles year at the Fisher and Masonic. — and who can withstand the rig- But last year, between the Fish- ors of going through a five-hour er being closed for a six-month morning rehearsal, sound check, renovation and a discontinued and then go on that night and per- contract with the Masonic, Sauro form,” Sauro said. and her fellow musicians worked But musicians cannot live on only five weeks. Sauro ended up touring productions alone. going on tour with “The Phantom The majority, who are also of the Opera” for three months. members of the Detroit Federation of “I would go out for one month at Musicians Local 5, rely on other a time. It was very difficult,” said sources of income. Some are Sauro, who is married with two school music teachers or private college kids and one high school instructors. Others are accompa- senior. “But because of the econo- nists for church choirs or digital my, it was wonderful to have the audio workstation consultants. opportunity to work in my field.” Many play in small groups and at Sauro says the reduction in events around town. work weeks is a product of shows “We are also looking forward to who bring their own musicians, the possibility of the movie indus- but who could save money with lo- try doing some film recording here cal musicians because no housing in the future,” said Sauro, who and travel per diems are needed. also is the assistant orchestra per- For top-tier touring union musi- sonnel manager for the Detroit Sym- cals, the per diem for living ex- phony Orchestra, where she has penses can be $835 a week. been a violin extra for 20 seasons. “The road is very attractive, if When “Mamma Mia” was here you’re careful and figure out how for the first time in 2002 at the Ma- to do it,” Ayoub said. “Once you sonic Temple, Alan Ayoub, 46, was learn the ropes, the per diem can part of the local orchestra. more than cover your living ex- Seven months later, he was penses. Once that is met, you have asked to go on the two-year North your net from the money playing American tour as a guitarist. the gig that you can save or pay off Ayoub also played guitar in a debt and actually be able to build a few cities with Disney’s “High good financial base.” School Musical.” For “Spamalot” The union rate salary for Local 5 here, he’ll play acoustic and elec- musicians is $150.65 per show and tric guitar, banjo and ukulele. up to $200 if you play multiple in- More Than A Rental Car Company. Over the last three years, Ayoub struments. The scale is based on has spent his time at home work- an eight-show performance week. ing on music computer systems “It used to be we’d get 16-week The Enterprise Difference. Serving Michigan since 1987. As we built our company, and recording studios for artists runs and you could count on that one neighborhood at a time over the years, we also built strong relationships with like Eminem. four months’ worth of work, and the people who call those communities home. Now with over 1000 employees “Maybe 10 to 15 years ago, I then there would be other shows in Michigan, we are proud to recruit and retain Michigan graduates that stay could stay home and work more for three or five weeks, and you in Michigan to keep our economy local, and our local business strong. weeks out of the year and earn could piece together a really nice closer to a full-time salary,” said season,” Sauro said. “But times Enterprise total transportation solution includes Car Rental, Paul McCaffrey, 38, from Warren, have changed. These days, six Fleet Management, Car Sales and WeCar. who plays alto sax, flute, piccolo weeks is considered a really long and clarinet in “Spamalot.” run. ... When you get a job, you’re “I love being home with my fam- thrilled to have it, but it’s still not ily, but sometimes, in order to enough to live on.” make ends meet, I have to look out- Sauro looks to the Fisher’s 2008- side of the city.” 2009 season with optimism. Though McCaffrey is a wood- “We’ll have 11 weeks of orches- Enterprise Rent-A-Car is a socially responsible corporation. For more information please visit enterprise.com. wind player for this show, he’s tras, so that’s very exciting for us © 2008 Enterprise Rent-A-Car Company 906447 10/08 MJ been a keyboard sub and associate — we’re moving more into the conductor for the “The Phantom of gainful employment direction,” the Opera” national tour for six she said. 20090209-NEWS--0028-NAT-CCI-CD_-- 2/6/2009 5:10 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS February 9, 2009 Animation: Job seekers drawn CRAIN'S LIST: ■ From Page 1 DETROIT'S LARGEST EMPLOYERS sitions over two years. Richards said a temporary location will LOCAL ACTION IN FILM Ranked by full-time employees January 2009 be set up to offer training while the casino site is retrofitted. Details will be worked Four studio projects are in the works Full-time out in coming weeks. around metro Detroit right now, offering Full-time employees in Company employees in the Michigan/ The state on Feb. 3 awarded the studio a range of film infrastructure services. Address Top local city of Detroit Worldwide project a 12-year, $16.9 million Michigan Eco- On tap: Rank Phone; Web site executive Jan. 2009/2008 Jan. 2009 nomic Growth Authority tax credit and an Motown Motion Pictures L.L.C. Detroit Public Schools Teresa Gueyser 13,750 B 13,750 B $11.7 million infrastructure credit under acting superintendent 15,904 13,750 B Total investment: $70.7 million 1. 3011 W. Grand Blvd. Fisher Building, the state’s new film incentive laws. Detroit 48202 (313) 873-3111; www.detroitk12.org Another project, a $70 million, 600,000- Project: Film studio and post-production services company with nine sound square-foot studio in Pontiac at the old Gen- City of Detroit Kenneth Cockrel Jr. 13,187 13,187 stages. Working with Raleigh Studios 2. 2 Woodward Ave. Coleman A. Young mayor 13,352 13,187 eral Motors Corp. Centerpoint truck plant, and the Endeavor Agency. Municipal Center, Detroit 48226 will get $113 million in state tax credits and Location: Pontiac Centerpoint Campus (313) 224-3700; www.ci.detroit.mi.us job aid for creating 3,600 new jobs by 2020. Detroit Medical Center Michael Duggan 10,499 11,626 Yet it’s the animation studio that’s gener- Wonderstruck Studios L.L.C. 3. 3990 John R, Detroit 48201 president and CEO 10,213 11,626 ating phone calls and e-mails in a metro Total investment: $85.9 million (313) 745-1250; www.dmc.org area devastated by auto industry job losses. Project: Primarily working with computer- Nancy Schlichting 8,502 18,422 Interest is also coming from overseas. generated images and animation. The Henry Ford Health System 4. 1 Ford Place, Detroit 48202 president and CEO 7,954 NA For example, Jamie Bolio, an 18-year fea- project would also include work on video (800) 436-7936; www.henryford.com ture animation veteran whose credits in- games. The project to be called Detroit clude popular Disney features such as the Center Studios, has a Web site being U.S. government NA 6,335 C NA “Lion King,” “Mulan” and “Pocahontas” assembled at 5. 477 Michigan Ave., Detroit 48226 5,945 NA along with work for DreamWorks, Universal www.detroitcenterstudios.net. (800) 688-9889 Studios and Nickelodeon, is working on an Location: Former MGM Grand Detroit Jay Noren 5,025 5,025 animated feature in Edinburgh, Scotland, casino in Detroit. Wayne State University 6. 656 W. Kirby St., Detroit 48202 president and CEO 4,946 5,025 and is interested in the new studio. 23rd Street Studios (313) 577-2010; www.wayne.edu The video game development aspect of the Total investment: $40 million studio project piqued the interest of Auburn State of Michigan Jennifer Granholm 4,910 D 49,113 Project: A campus with five sound D Hills resident Michael DiPonia, who has 7. Cadillac Place, Detroit 48202 governor 4,804 49,156 stages, green-screen space, equipment (313) 456-4400; www.michigan.gov worked in game development for the past rental, warehousing and logistics nine years, including the past two as art di- services. Retail would also be built. General Motors Corp. G. Richard Wagoner 4,652 E NA rector at Mishawaka, Ind.-based racing game Location: Michigan Avenue and 23rd 8. 300 Renaissance Center, Detroit 48265 chairman and CEO 5,290 NA developer The Sim Factory L.L.C. Street in Detroit. (313) 556-5000; www.gm.com “I hope it will bring the type of work that I am qualified for to this area, as right now S3 Entertainment Group Chrysler L.L.C. Robert Nardelli 4,517 21,150 9. 1000 Chrysler Drive, Auburn Hills chairman and CEO 7,689 50,369 it’s extremely lacking,” he said. “There’s Total investment: $40 million 48326 not a lot of work here for an ex-game artist, Project: Four sound stages in the first (248) 576-5741; www.chryslerllc.com regardless of my experience.” phase, eventually six to eight including a U.S. Postal Service Nancy Rettinhouse 4,106 NA Also interested in the new studio is training stage and a permanent green 10. 1401 W. Fort St., Detroit 48233-9998 district manager 4,700 D NA Michelle Ouellette, a multimedia designer screen studio. (313) 226-8607; www.usps.gov with Birmingham-based marketing firm Location: Two sites are being Fuse Communications, where she has experi- considered, both in Oakland County. St. John Health Patricia Maryland 3,818 13,003 11. 28000 Dequindre Road, Warren 48092 president and CEO 3,528 13,003 ence doing animation work. — Daniel Duggan (888) 440-7325; www.stjohn.org “The idea the animation/special effects industry might be moving here is incredi- Anthony Earley Jr. 3,771 9,421 she said. DTE Energy Co. ble,” she said. “It brings hope to so many of 12. 2000 Second Ave., Detroit 48226 CEO and chairman 3,741 9,770 us in the art industry.” “It’s a very similar model, where you (313) 235-4000; www.dteenergy.com Even potential competitors are reaching take a building not in use with similar in- Robert Ficano 3,674 4,545 out with an interest in establishing a rela- frastructure and some land that works just Wayne County government 13. 600 Randolph, Detroit 48226 county executive 3,858 4,545 tionship with the new studio, such as well enough,” she said. (313) 224-3930; Southfield-based Kinetic Post Inc., a post-pro- Work on completely renovating the www.waynecounty.com duction agency that primarily offers ani- MGM site will commence in the next four Blue Cross Blue Shield of Daniel Loepp 3,082 8,231 mation, video, audio, print, online and re- months, Richards said, and that will in- 14. Michigan/Blue Care Network president and CEO 3,172 NA lated services to corporations and clude installation of a digital pipeline that 600 E. Lafayette Blvd., Detroit 48226 (313) 225-9000; www.bcbsm.com advertising agencies. allows massive computer animation files to Detroit Center Studios is a partnership MGM Grand Detroit Casino & Lorenzo Creighton 3,000 3,000 be sent around the world. COO and president 3,600 3,000 between film and video game deal-maker Hotel “It’s an enormous amount of high-tech 15. 1777 Third Ave., Detroit 48226 Richards’ Wonderstruck Studios L.L.C. and infrastructure,” she said. (313) 465-1777; Los Angeles-based real estate developers The studio also will bring in veteran Holly- www.mgmgranddetroit.com SHM Partners. wood professionals with experience at Dream- Compuware Corp. Peter Karmanos Jr. 2,597 2,673 The new facility will house Wonder- 1 Campus Martius, Detroit 48226 chairman and CEO 3,221 5,672 works, Warner Bros. and Walt Disney, she added. 16. struck’s operations and space available for (313) 227-7300; www.compuware.com outside projects to use for animation, Richards said she was involved in the worldwide marketing and distribution of MotorCity Casino Marian Ilitch 2,424 2,424 graphics, video games and other media pro- owner 2,427 NA the popular “Guitar Hero” video games, 17. 2901 Grand River Ave., Detroit 48201 ductions. (877) 777-0711; The deal calls for the studio to begin op- and a number of straight-to-video animated www.motorcitycasino.com eration this year, with 413 direct and 287 in- features. American Axle & Richard Dauch 1,990 2,545 direct jobs created over five years. Not involved in the effort is Richards’ co-founder, chairman and 3,129 7,244 18. Manufacturing Holdings Inc. CEO Additional terms and financing details husband John, who is head of worldwide 1 Dauch Drive, Detroit 48211 (313) 758-2000; www.aam.com were not released. creative for Warner Home Entertainment. The site is owned by MGM, but it’s un- Comerica Bank Thomas Ogden 1,706 6,103 She declined to name the other princi- Michigan market president 1,897 9,716 clear if the film studio will buy or lease the 19. 500 Woodward Ave., Detroit 48226 pals, but said none at this point are from (248) 371-5000; www.comerica.com facility, which will include sound stages, of- Michigan. fices, screening rooms, a commissary, edit- About a dozen other sites were considered Greektown Casino-Hotel Randall Fine 1,600 F NA ing bays and other film infrastructure. before settling on the MGM property, she 20. 555 E. Lafayette Blvd., Detroit 48226 interim CEO 2,200 NA “It will be everything a filmmaker needs (888) 771-4386; said, without naming any of the locations. to come to Michigan and be well taken care www.greektowncasino.com The studio’s roots are in the state’s lucra- of,” Richards said, adding that the project This list of Detroit employers encompasses the cities of Detroit, Hamtramck and Highland Park. Employers with tive film production and infrastructure in- expects to use “every square inch” of the headquarters in Washtenaw, Oakland, Wayne, Macomb or Livingston counties are listed with their headquarters' MGM site. centives approved last year. address and top executive. Companies with headquarters elsewhere are listed with the address and top executive of MGM bought and extensively renovated Since last April, 73 productions have their main Detroit-area office. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. an old 75,000-square-foot Internal Revenue been approved for film incentive agree- ments with a total Michigan production NA = not available Service building along the Lodge Freeway to B As of Feb. 2, 2009. house its temporary casino until the new value of $435.7 million, according to C As of September 2008. gaming facility opened in October 2007. Michael Shore, communications manager D Crain's estimate. The film facility is being modeled on the for the Michigan Economic Development Corp. E As of August 2008. $105 million Los Angeles Center Studios, a Those productions have a potential com- F The hotel and casino are to fully open on Feb. 13, and be fully staffed within a few weeks. Expected full-time 1999 SHM Partners project that turned a 20- bined incentive payout of $164.4 million. employment once fully staffed is 1,800. acre vacant Unocal headquarters campus Bill Shea: (313) 446-1626, LIST RESEARCHED BY ANNE MARKS into a 450,000-square-foot modern studio, [email protected] 20090209-NEWS--0029-NAT-CCI-CD_-- 2/6/2009 5:09 PM Page 1

February 9, 2009 CRAIN’S DETROIT BUSINESS Page 29

www.crainsdetroit.com ArvinMeritor may sell its tech center in Delray EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] BY RYAN BEENE When the company built the plant, part of the EXECUTIVE EDITOR Cindy Goodaker, (313) 446- CRAIN’S DETROIT BUSINESS planned footprint fell on Southwestern High 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- School’s football field. So ArvinMeritor bought 0402 or [email protected] ArvinMeritor Inc. is mulling a sale of its Detroit that land and gave $600,000 to help build a new ASSISTANT MANAGING EDITOR/FOCUS Jennette technical center on Fort Street in the city’s high school and track field on another part of Smith, (313) 446-1622 or [email protected] southwestern neighborhood of Delray as it BUSINESS LIVES EDITOR Michelle Darwish, (313) the school’s campus. 446-1621 or [email protected] works to divest its car and light truck product Garnet Green, principal of Southwestern COPY DESK CHIEF Gary Piatek, (313) 446-0357 segments. High School, says he can sum up the relation- or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or Since 2004, the tech center’s 80,000 square feet ship with the company in one word: great. [email protected] of offices and 16,000 square feet of research labs “They are perhaps the most supportive phil- WEB GENERAL MANAGER Alan Baker, (313) 446- have been the global headquarters of Arvin- 0416 or [email protected] anthropic industry partner that any school – WEB EDITOR Christine Lasek, (313) 446-0473, Meritor’s light vehicle systems unit, which the public, private or parochial – could ever dream [email protected] company has been trying to shed since March. of having,” Green said. WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) CEO Charles “Chip” McClure said in a con- 446-0403, [email protected] NATHAN SKID/CRAIN’S DETROIT BUSINESS ArvinMeritor had been entrenched in the EDITORIAL SUPPORT Robertta Reiff (313) 446- ference call on Wednesday that the company As ArvinMeritor has moved or shrunk operations, its community for years before he took the helm at 0419, YahNica Crawford, (313) 446-0329 was “evaluating and studying all options for need for its Fort Street tech center has diminished. NEWSROOM (313) 446-0329, FAX (313) 446- Southwestern in 2006. 1687 TIP LINE (313) 446-6766 the LVS Detroit technical center, including a For example, the company renovated the REPORTERS possible sale,” but added the company will con- lize it right now,” she said. school auditorium into what Green describes as tinue to operate the 176,000-square-foot manu- The company’s global headquarters is in a Ryan Beene: Covers auto suppliers, steel, higher a small replica of the Fox Theatre. ArvinMeritor education. (313) 446-0315 or [email protected] facturing plant adjacent to the tech center and larger building in Troy. It houses the Commer- also pays for Southwestern student council mem- Daniel Duggan: Covers retail, real estate and deliver products on time to its customers. cial Vehicle Systems business unit, which gen- hospitality. (313) 446-0414 or bers to go to Lansing to participate in the Michi- [email protected] Lin Cummins, senior vice president of com- erates roughly double the revenue of the com- gan Student Government in Action program. Jay Greene: Covers health care, insurance and the munications, noted that selling the tech center pany’s light vehicle business segments. environment. (313) 446-0325 or was one option, but the company also is review- The plant next to the Detroit tech center pri- Cummins said that if the company were to [email protected]. sell the tech center, it would continue to sup- Chad Halcom: Covers law, non-automotive ing alternative uses and may opt to keep it de- marily makes chassis modules for Chrysler manufacturing, defense contracting and Oakland pending on what other options arise. L.L.C.’s Jeep Grand Cherokee SUV built at the port the community. and Macomb counties. (313) 446-6796 or ArvinMeritor’s need for a facility of that automaker’s Jefferson North Assembly Plant “It doesn’t mean we’re walking away from the [email protected]. community,” she said. “We were active in De- Tom Henderson: Covers banking, finance, scale is dwindling. in Detroit. ArvinMeritor’s plant is staffed with technology and biotechnology. (313) 446-0337 or The company dismantled LVS’ divisional about 90 hourly and 18 salaried employees, but troit way before we had this facility down there, [email protected]. corporate structure in January, eliminating most are on temporary layoffs, Cummins said. but we built that at a time when we were grow- Nancy Kaffer: Covers small business, the city of Detroit, Wayne County government. (313) 446- 100 salaried employees to cut costs as the com- The Jefferson North plant was idled through ing, the economy was booming, everything was 0412 or [email protected]. pany prepares the units for sale. About 135 most of January before coming back on line for in line, and now everything’s changed.” Bill Shea: Covers media, advertising and salaried employees remain in purchasing, tech- Green isn’t worried. marketing, entertainment, the business of sports, a week — only to be idled last week as well, and transportation. (313) 446-1626 or nical and other positions needed to run the killing the need for chassis modules made at “I believe that because of the relationship that [email protected]. business, according to Cummins. the Fort Street plant. I have witnessed,” he said. “If ArvinMeritor says Nathan Skid: Multimedia reporter. Also covers the food industry. (313) 446-1654, [email protected]. “Since we’ve eliminated the corporate staff From the start, ArvinMeritor has been an ac- it, then I put money on it. Their word is bond.” Sherri Begin Welch: Covers nonprofits and there, we just don’t have enough people to uti- tive member of the Delray neighborhood. Ryan Beene: (313) 446-0315, [email protected] services. (313) 446-1694 or [email protected] LANSING BUREAU Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. Delray: Bridge plan has neighborhood waiting ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) ■ From Page 3 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 gan Department of Transportation’s Wendler couldn’t answer where ADVERTISING SALES Jeff Anderson, Matthew J. $1.5 billion bridge project move funds for such incentives might be Langan, Lori Tournay Liggett, Tamara Rokowski, Kimberly Ronan, Dale Smolinski forward. found, saying the coalition is WESTERN ACCOUNTS Ellen Mazen (Los Angeles) About $417 million has been ear- working government agencies to (323) 370-2477 CLASSIFIED SALES SUPERVISOR Terri Engstrom, marked for relocation costs, in- amass a pool of resources. Private- 313-446-0351 cluding property remediation and sector philanthropic groups, she MARKETING MANAGER Irma Clark inflation, according to a final envi- said, could also contribute. EVENTS MANAGER Nicole LaPointe MARKETING ARTIST Sylvia Kolaski ronmental impact study for the And the coalition must take into SALES SUPPORT Suzanne Janik, YahNica project. account business owners who Crawford The land is necessary, MDOT CIRCULATION Candice Yopp, Manager. don’t relocate, Tobocman said. SALES, MARKETING INTERN Kim Winkler says, to accommodate the cross- Like Lockeman’s Hardware and PRODUCTION MANAGER Wendy Kobylarz ing, plaza, I-75 interchange and a Boats, a Jefferson Avenue store- PRODUCTION SUPERVISOR Larry Williams, plan to move rail tracks so that (313) 446-0301 front on Delray’s east side. CUSTOMER SERVICE trains are more directly routed to Owner Dorothy Zammit is a MAIN NUMBER: Call (888) 909-9111 or write neighboring industrial Zug Island, member of the fourth generation to [email protected] home to U.S. Steel’s massive blast run Lockeman’s, open since 1918. SUBSCRIPTIONS $59 one year, $98 two years. furnaces, to the south. NATHAN SKID/CRAIN’S DETROIT BUSINESS Out of state, $79 one year, $138 for two years. The shop — which sells new Outside U.S.A., add $48 per year to out-of-state MDOT plans to break ground on Dorothy Zammit represents the fourth generation to run Lockeman’s Hardware rate for surface mail. Call (313) 446-0450 or Evinrude motors and Johnson & Evin- (888) 909-9111. the project by 2010 with a comple- and Boats on Delray’s east side. The ledger book dates back to 1925 and has been used to verify the authenticity of collectible outboard motors. rude parts — is about three blocks SINGLE COPIES: (888) 909-9111. tion date of 2013. But the project REPRINTS: Call (800) 494-9051, Ext. 144 , or from the DRIC relocation zone. has more than one hurdle to clear. hood’s commercial and residential ment to provide incentives for write [email protected]. Zammit is philosophical about TO FIND A DATE A STORY WAS PUBLISHED: A mile away, Ambassador Bridge areas. businesses to relocate, said South- (313) 446-0367 or e-mail [email protected]. the DRIC. owner Manuel Moroun, who oppos- Delray has lost more than half west Detroit Business Association “I would say, yes, we’re con- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY es the DRIC, is building a $1 billion, its population in the past 20 years, President Kathy Wendler. cerned about the construction and CRAIN COMMUNICATIONS INC. six-lane second span. And approval according to an estimate from “The kinds of things that obvi- CHAIRMAN Keith E. Crain our availability to customers,” she of the DRIC rests in the hands of the Kurt Metzger, director of the De- ously work are financial incen- PRESIDENT Rance Crain SECRETARY Merrilee Crain state Legislature, where consensus troit Area Community Information Sys- tives,” she said. “Like property at said. “But I also think it needs to be done.” TREASURER Mary Kay Crain is far from certain. tem, dropping from 4,252 in 1990 to a reduced price in a location that’s Executive Vice President/Operations So business owners like Evans an estimated 2,403 in 2008. appropriately zoned and accept- As many as 414 households William A. Morrow would also be relocated to make Group Vice President/Technology, are waiting. They’re waiting to The neighborhood’s remaining able to the community.” Manufacturing, Circulation businesses and residents sit snug- But there’s a catch. way for the DRIC, according to the Robert C. Adams hear if the project’s moving for- Vice President/Production & Manufacturing ward, waiting to find out how ly between Zug Island’s U.S. Steel While state law allows home- environmental impact study. Dave Kamis much they’ll be paid, and waiting plant, a Detroit wastewater treat- owners to be paid “replacement That’s about half of the remaining Corporate Director/Circulation households in Delray, according to Patrick Sheposh to figure out what to do if the ment plant and an oil refinery. value” for property, business own- G.D. Crain Jr. Founder (1885-1973) DRIC’s not coming. But for some business owners, ers may only be paid fair market Metzger’s 2008 estimate. Mrs. G.D. Crain Jr. Chairman (1911-1996) As a Detroit Renaissance and that’s not a deal breaker. value, said former state Rep. Steve Zammit’s boat customers come EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Empowerment Zone, Delray re- Evans is one of few Delray busi- Tobocman, D-Detroit, whose dis- from all over Michigan and sur- 446-6000 ceives complete mitigation of local ness owners who plans to close trict included Delray. Tobocman rounding states, while the hard- Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 and state taxes through the end of shop. Forty-three of 50 business left office this winter because of ware operation has a more local is published weekly except for a double issue the clientele. third week of January, and a double issue the this year and partially until 2012. owners interviewed by MDOT said term limits. fourth week of August by Crain Communications The neighborhood has been they’d like to be relocated in or “(Business owners) get basically “But I don’t want to lose any of Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional largely targeted for industrial pur- near Delray, according to the pro- a going concern,” he said. my sales,” she said. “I’m not Home mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation poses since the I-75 Rouge River ject’s environmental impact study. But, Tobocman acknowledged Depot.” Department, P.O. Box 07925, Detroit, MI 48207- bridge overpass was built in the A community benefits coalition that a state payment at fair market Nancy Kaffer: (313) 446-0412, 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2008 by Crain 1960s, bisecting the neighborhood, composed of Delray stakeholders value would likely outstrip Delray [email protected]. Communications Inc. All rights reserved. Reproduction or use of editorial content in any though the Detroit Master Plan and property owners is working property values on the open market, Crain’s reporter Bill Shea con- manner without permission is strictly prohibited. speaks of bolstering the neighbor- aggressively to reach an agree- for home and business owners alike. tributed to this report. 20090209-NEWS--0030-NAT-CCI-CD_-- 2/6/2009 6:12 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS February 9, 2009 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 31-FEB. 6

State Rep. Andy Colouris, D- tions, mostly at its head- Judge Gerald Rosen said the Saginaw, chairman of the Local investors quarters. Also, Fred Boehler, city has until today to try to Michigan bolsters House Banking Committee, senior vice president, logis- keep secret any portion be- said he hopes to reintroduce tics, said he is leaving the fore he opens the file. a version of the act soon and are among company. Former Detroit Mayor have it on Gov. Jennifer Kwame Kilpatrick was re- Comerica profits, leased from jail early Tues- Granholm’s desk by April. Madoff victims PUBLIC COMPANIES day morning after serving a ArvinMeritor Inc. (NYSE: 99-day sentence, the Associ- WSU med school dean gets outhfield-based Alix- ARM) had a net loss of $991 ated Press reported. but layoffs on tap Partners L.L.P. made million in its first quarter Defense attorney Willie ‘no confidence’ letter S public a list of area on revenue of $1.4 billion, Gary said Kilpatrick would omerica Inc. ought to and a loss of $7 million in A group of faculty mem- investors in an alleged compared with a net loss of head to Texas for a Wednes- thank goodness for Florida. bers at Wayne State University Ponzi scheme advanced by $12 million on revenue of day job interview. Kil- C Michigan, which School of Medicine have financier Bernard Madoff. It $1.7 billion a year ago. The patrick must return to De- included: practically single-handedly signed a letter expressing no company suspended 401(k) troit by today. Law firm: We didn’t rewrite Lutz News Co., Detroit, has kept the now-Texas- confidence in Dr. Robert matching contributions The Michigan Certificate and two affiliated corporate based bank’s earnings afloat foreclosure legislation Mentzer, the medical school’s and extended shutdowns of Need Commission appoint- in recent quarters. entities. and reduced work weeks at Farmington Hills-based dean of nearly four years. ed a committee Thursday to Instead, more than 100 Eric Canvasser, a Farm- plants. Trott & Trott P.C. denies a for- The letter was delivered study whether it should Michigan employees were ington Hills accountant. A Salaried executives and mer legislator’s accusation about two weeks ago to continue to allow only terminated in January, and client who invested with the board of directors also that the foreclosure law firm Wayne State President Jay three hospitals in the state more layoffs are expected in Madoff died 10 years ago. took a 10 percent salary cut got to rewrite the Home to perform heart, liver and the first quarter. Noren, confirmed Phil Van Canvasser said he had and all other U.S. salaried Foreclosure Prevention Act lung transplants. During its recent quarter- Hulle, a medical school pub- nothing to do with the employees saw their wages before the legislation died All three – the University of ly earnings conference call, lic information officer. client’s decision, but he re- cut 5 percent. last December in Lansing. Michigan Health System’s C.S. the company reported that “(Mentzer) met with ceives all information per- Pulte Homes Inc. had a Jeff Weiserman, general Mott Children’s Hospital and total employment declined Noren, and I know the pres- taining to the clients’ in- net loss of $338.2 million in counsel for Trott, said it was University Hospital and Henry from 10,782 to 10,186 during ident is allowing the dean vestments. the fourth quarter on rev- “not true at all” that the firm Ford Health System – are in 2008. According to Wayne to handle the situation,” Todd-NYCBM Co. L.L.C. of enue of $1.7 billion com- rewrote the legislation be- Southeast Michigan. The Mielke, vice president of com- Van Hulle said. Farmington Hills. pared with a net loss of fore it was introduced in the hospitals are opposed to munications, the company While the details of the let- The Sheila Meissner Re- $874.7 million on revenue of Senate but after it cleared rule changes. hopes to cut another 5 per- vocable Trust. Meissner is $2.9 billion a year ago. the House. ter were unavailable, Van Macomb Community Col- cent, about 500 jobs, by the from Southfield. For the year, Pulte The bill was introduced by Hulle said it had more to do lege President Jim Jacobs end of March. It’s unknown Arthur Kepes Unified (NYSE: PHM) posted a net then-Rep. Steve Tobocman of with the strategic direction said Tuesday that the coun- how many will be here. Credit Shelter Trust, West loss of $1.5 billion on rev- Detroit. Tobocman said he of the medical school than ty’s unemployment rate, When the bank announced Bloomfield Township; Ac- enue of $6.3 billion, com- believes the Senate version any current issue, including 10.9 percent according to in March 2007 it was moving count of Arthur Kepes Revoca- pared with a net loss of is a product of Senate Bank- the ongoing yet nearly re- December figures from the its headquarters to Dallas, it ble Living c/o Arthur Kepes; $2.26 billion in 2007. ing Committee Chair Randy solved funding dispute with Michigan Department of Ener- had about 7,300 employees in Account of Irene Kepes Revo- Credit Acceptance Corp. Richardville, R-Monroe, con- Detroit Medical Center. gy, Labor and Economic Michigan. That’s down to cable Living c/o Irene Kepes. (Nasdaq: CACC) reported sulting with Trott, which Only 36 of 750 faculty Charles Gevirtz, automo- Growth, will likely reach or about 6,700 now. fourth-quarter net income represents several banks and members signed the letter, surpass 12 percent by tive engineer, Northville. of $18.6 million on revenue When asked to comment specializes in mortgage and year’s end. he said. To increase commu- Edward Goldfinger, Ann of $86.3 million, compared on rumors that the company foreclosure law. The University of Michi- nication, Mentzer has added Arbor. with net income of $12.5 was planning a big pullout Weiserman would not gan raised just over $3.2 bil- two more monthly faculty Frederick P. Heller, million on revenue of $63.2 from the Comerica Tower in comment on whether the lion in its “Michigan Differ- breakfast meetings. Farmington Hills. million for the same quar- downtown Detroit, Mielke firm wrote any proposed ence” capital campaign, “He wants to get the word Robin J. Silverstein Fami- ter last year. said the bank would honor changes for Richardville to believed to be the largest out about the five-year ly Trust, West Bloomfield For the year, the compa- its lease, which runs consider and introduce on amount ever raised by a strategic plan,” Hulle said. Township. ny reported net income of through 2012. The bank leas- his own. public university, the insti- “In any organization of this Crain’s previously re- $67.2 million on revenue of es 285,000 square feet. “We offered our thoughts tution announced Monday. size, it is not unusual for ported that the fledgling $312.2 million, compared As for Michigan’s contri- and our authority on the Also, Wayne State Universi- some people to disagree with Ann Arbor-based Fair Food with net income of $54.9 bution to the company’s bot- subject of foreclosures,” he ty said it raised nearly $900 leadership and the direction Foundation and the JEHT million on revenue of $239.9 tom line? In the third quar- said. “I testified in favor of million in its first compre- ter, the Midwest market, the bill, and we were among the boss wants to go.” Foundation of Manhattan, million in 2007. funded by local philan- hensive fundraising drive, nearly all of which is in many businesses and exceeding the seven-year thropists Jeanne and Ken- Michigan, had net income of lenders to offer our thoughts campaign’s $500 million BITS & PIECES neth Levy-Church, had to OTHER NEWS $52 million. The rest of its on some changes that might target, the AP reported. Suresh Shah, senior tech- A plant owned by De- markets lost a total of $17 make sense.” close because of money lost Windsor will be the of- nical fellow at Delphi Corp., troit mayoral candidate million. In the fourth quar- The legislation would in Madoff investments. ficial host city for this Troy, is the recipient of the Dave Bing, Bing Metal Assem- ter, the Midwest had net in- have given homeowners year’s Red Bull Air Race come of $16 million, com- more time and access to re- Engineering Society of Detroit’s bly, will close in April, lay- Tough times for hospitals ing off as many as 65 work- World Series over the Detroit pared with $2 million for sources to help them negoti- 2009 Gold Award. He and 36 River on June 13-14. Detroit Arizona and California, com- ate with lenders before fore- others will be honored at a Michigan’s more than 144 ers, the AP reported. Delphi Corp. has report- hosted the event last year. bined; $4 million for Texas; closure proceedings begin. Feb. 19 awards event. hospitals are facing the edly asked a bankruptcy After a September worst economic conditions bankruptcy filing, Small since the 1930s, according to judge to allow it to cancel health care and life insur- Plates in Royal Oak has the report “Michigan’s ance benefits for current closed. Owner Todd Stern Health Care Safety Net: In and future salaried re- cited high food costs and Jeopardy,” issued Thurs- tirees, the AP reported. slow sales. day by the Michigan Health & Learn from the experts in our free Small Talk blog Detroit City Council Pres- Also, Sweet Georgia Brown Hospital Association. ident Monica Conyers is in Greektown has been We have the best business minds vice chairman of SCORE, has to say For the third quarter of drafting a resolution oppos- closed over failure to pay its in our Small Talk blog, and their on the process of “right-sizing.” 2008, the average total mar- ing the transfer of Cobo rent, the AP reported. Own- expertise and advice is free. Few tasks are more heartrending gin for Michigan hospitals Center to a new regional er Derrick Coleman says busi- This week in Small Talk, blogger than terminating valued employees, was negative 2.9 percent, authority because she does- ness has dropped over the Cynthia Umphrey says truly savvy Smith says. But in many instances, compared with 2.2 percent n’t believe the city is get- past two years due to the business owners are taking stock, right-sizing can be done by juggling during the same period in ting an adequate return, poor economy. making changes and positioning Greektown Casino Hotel their companies to take full workweeks, hours, and schedules in 2007, MHA said. The Detroit News reported. advantage of the better times ahead. new ways, eliminating the need for Council doesn’t need to received its temporary cer- tificate of occupancy from But the truly savvy are thinking so far terminations. OK the transfer, but has un- ahead that they’re already making He’ll share some of those ON THE MOVE til March 5 to oppose it. the city of Detroit Friday plans to thrive in the next downturn, innovative ideas on Wednesday in Borders Group (NYSE: Norman Yatooma, the and plans a soft opening on since economic cycles virtually Small Talk. BGP) is consolidating its lawyer for the family of Thursday. guarantee another recession. corporate management Tamara Greene, can look at Gov. Jennifer Granholm WEB WORLD We also have exclusive videos, To get Cynthia’s entire blog, go to small-business resources, and the structure at the vice presi- the police file on the un- says Detroit’s next mayor crainsdetroit.com/smalltalk on Alan Baker Crain’s list of small business dent and director levels, solved Greene homicide, should assume responsibili- Wednesday. Web General Manager networking groups. eliminating six vice presi- the AP reported. ty for the city’s public Then while you’re there, read what Bob Smith, Take a look. It’s free. dent and 10 director posi- But U.S. Chief District schools, the AP reported. DBpageAD.qxd 2/5/2009 8:23 AM Page 1

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