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Big deals on big buildings THIS JUST IN State pursues Deloitte names new network for managing partner 2 Riverfront Towers sold Tom Dekar, vice chairman at Deloitte & Touche USA L.L.P., is turning over the sharing patient reins of the Detroit office to a new managing partner. Joseph Angileri has been to New Jersey investor named managing partner of data by 2010 the Detroit office of Deloitte, replacing BY SHERRI BEGIN Dekar. CRAIN’S DETROIT BUSINESS Dekar had Deal estimated been both Southeast Michigan health care head of the providers would be able to share in- Detroit office at about $50M formation on patients in order to co- and manag- ordinate their care as early as 2010 ing principal BY DANIEL DUGGAN under a new online patient informa- in charge of CRAIN’S DETROIT BUSINESS tion network. Angileri the 12 offices The state has committed $658,356 in in the seven-state, North Two of the three towers in Detroit’s luxury grant funding to the Altarum Institute Central region. He will re- residential development, Riverfront Towers, in Ann Arbor to lead planning for sev- main in charge of the re- have been sold to a New Jersey investor. eral regional health-information ex- gion. In a deal estimated at roughly $50 million, changes. The grant is part of a $4.5 Angileri said it was de- commercial real estate professionals say, the million project the state is funding to cided that as the Detroit towers are the only Detroit buildings that develop or expand online patient in- office, Deloitte’s eighth- could command such a price. Towers 100 and 200 (far right and center) have been formation programs. largest nationwide, con- “This is going to remain the primo rental sold. “We see this as a benefit for pa- tinues to grow, it needed property in Detroit,” said Mark Rohr, a part- tients whose records will be able to someone to act exclusively ner in the Birmingham office of Phoenix-based RIVERFRONT TOWERS follow them through technology,” as a managing partner. Hendricks & Partners, which brokered the deal. Ⅲ Where: 100, 200 and 300 Riverfront Drive, off East said James McCurtis Jr., assistant to The Detroit office grew by “The feeling was that this is a real bargain, and Jefferson west of Joe Louis Arena. the director of the Michigan Depart- a combined 23 percent in will be a great long-term investment as Detroit Ⅲ What: Gated community on 24-acre site with ment of Community Health. 2005 and 2006 to a total of improves.” landscaped parkland, private marina, sand volleyball Within two to three years, the state 1,010 employees. Plans are The 100 and 200 towers on Riverfront Drive court, health club, bar and grill, market, hair salon, dry wants to establish local access to pa- to add another 125 this near Joe Louis Arena were sold by Florida- cleaners and indoor walkway to Joe Louis Arena and tient information, and, ultimately, to year. based Ram Development Co. to New Jersey- People Mover. provide statewide access, he said. Angileri, 49, a member of based Empirian Acquisitions July 13. Ⅲ Units: 555 apartments; 285 condos. “The new exchange would help in- Crain’s 40 under 40 class of Eric Taylor, senior investment advisor with Ⅲ History: Two towers built in early 1980s, third in crease quality of care through re- 1991. Renovated 2005-2007. duced errors, access to care, and ... 1997, was managing part- See Riverfront, Page 29 ner in charge of the tax more efficient (care),” said Jeff practice in Detroit before Moore, Altarum senior vice president transferring to New York and chief development officer. City in 2002 to head the na- Other regions including Santa Bar- tional corporate-finance bara, Calif.; the border area between and mergers and acquisi- Michigan and Indiana near South tions practice. Most recent- National buyers heat up Bend; and the Research Triangle area ly, he was national manag- in North Carolina have similar initia- ing partner for strategic tives, he said. relationship management “Some have been successful and for nonaudit clients. local industrial real estate some haven’t been, which is why the “It’s great to be back planning process we are leading is so critically important. You have to look here,” said Angileri, who BY DANIEL DUGGAN at issues of governance and sustain- had retained a residence in CRAIN’S DETROIT BUSINESS Franklin while based in ability if these (exchanges) are really New York City. Investors holding on to industrial real estate are seeing to take root.” “Michigan’s transforma- opportunities to cash out as selling prices have been on the The institute will collaborate with tion provides great growth rise since the second quarter of 2006. about 40 other organizations in opportunities for us.” Driving up prices and demand are risk-tolerant national pulling together a plan and looking at When you talk about the investors eager to buy at prices lower than in other national architecture, software to converge pa- things that are going on markets, betting that the market will stabilize and net a high tient data from various health care here, whether it’s supplier Auto talks. Housing. The U.S. return. provider systems, access and privacy consolidation, low-cost economy. Fuel prices. Private- Industrial property in the Detroit market sold for an aver- issues, and how the system will be country sourcing, labor is- equity and hedge funds. The age of $50.61 per square foot in the second quarter of 2007, ac- funded, Smith said. Governance is also an issue; creating a nonprofit to sues, health care and pen- impact of those trends and cording to Rosemont, Ill.-based Grubb & Ellis, up from a 2006 sion issues, we’ve done a average of $45.32 and a 2005 average of $48.50. operate the exchange is one option. lot of work in those areas.” more are covered in Crain’s Dealmakers are keeping an eye on capitalization rates for Altarum expects to finish planning — Tom Henderson Midyear Economic Report properties — net operating income divided by property val- and request vendor bids for the ue — and finding indicators of high rates of return in the fu- Southeast Michigan exchange by Sep- See This Just In, Page 2 beginning on Page 11. See Industrial, Page 29 See Altarum, Page 28

Report calls for more CRAIN’S LIST women in tech programs, Fastest growing companies, NEWSPAPER Page 27 Page 20 DETROIT BUSINESS MAIN 07-23-07 A 2 CDB 7/20/2007 7:06 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 23, 2007

heading to a new level, with the as interim dean since December in Detroit has pulled out of the Crain’s hires staff member THIS JUST IN tribes last week appealing an 2005, when Harvey Kahalas deal, according to Jane Shallal, April U.S. District Court ruling that stepped down to return to the president of the Associated Food Mark Thompson-Kolar, 39, has ■ From Page 1 favored the state. WSU faculty. and Petroleum Dealers of Michigan. joined Crain’s Detroit Business The Little River Band of Ottawa In- — Sherri Begin Shallal did not name the grocer, as assistant managing Former clothier gets prison dians and the Little Traverse Bay and said the grocer did not discuss editor/production overseeing One-time clothier and fashion Bands of Odawa Indians last week Southfield authority mulls plan why they cancelled the deal. the design, maven Ilene Ruth Moses was sen- filed notice of an appeal to the 6th The Jefferson Avenue store headline tenced Friday by U.S. District U.S. Circuit Court of Appeals in for Stouffer’s Northland Inn site opened in 2003 and was one of the writing and Cincinnati. The case involves the chain’s largest at 63,892 square final editing Judge Patrick Duggan to a 17 ½- Southfield’s Cornerstone Devel- tribes’ obligation to pay the state feet. The store closed July 7. of the news- year prison term on her Feb. 1 opment Authority plans to consider a share of their casino revenue — — Sheena Harrison paper. conviction by a federal court jury a proposal later this week for money that supports state eco- Thompson- in Detroit on 52 counts of bank, medical offices on the site of the nomic-development efforts. Kolar previ- mail and wire fraud, bankruptcy former Stouffer’s Northland Inn Henry Ford Health leases The state sued the tribes in ously was as- fraud, money laundering, false near Northland Mall, housing a June 2005 over their withholding sistant news statements and perjury. possible dialysis treatment cen- office building in Novi of payments, and U.S. District editor/editor- The charges arose from allega- ter and other services as a joint Detroit-based Henry Ford Health Thompson-Kolar Judge Wendell Miles recently ial design di- tions that Moses, now 70 and liv- venture of Henry Ford Health Sys- System has leased the 130,000- ruled that the tribes were in viola- rector with The Ann Arbor ing in Las Vegas, defrauded Michi- tem, Detroit Medical Center and square-foot Columbus Corporate Of- tion of their obligations to make 8 News, where he had been since gan National Bank and Swiss several assorted doctors in pri- fice Centre at 39450 12 Mile Road percent payments to the state. 2000. Previously, he had worked Cantobank International of about vate practice. in Novi to provide offices for doc- The court’s judgment would for the Detroit Free Press and for $26 million from 1983 to 1988. A formal development plan is tors near the health system’s award the state nearly $44.8 mil- the Ft. Wayne News-Sentinel in Judge Duggan also ordered her to expected at the authority’s Fri- soon-to-be-completed hospital in lion in payments and interest. Indiana. pay more than $15 million in day meeting. The 3.47-acre, city- West Bloomfield Township. Thompson-Kolar has both a restitution. The tribes have contended that owned site has stood vacant in re- Farmington Hills-based North- bachelor’s and a master’s degree Moses was president and CEO the Bureau of State Lottery’s keno ern Equities developed the build- cent years since the building was from the University of Michigan. of Detroit-based SMS Inc., a cloth- game, launched in October 2003 ing as part of the Haggerty Corridor razed. When Southfield last field- He can be reached at (313) 446- ing manufacturer that filed for and played in bars and restau- Corporate Park. The Farbman Group ed proposals for redevelopment 0357 or at mthompson-kolar Chapter 11 in 1990. She was in- rants, ended any requirement was the broker on the deal. at the site in early 2006, its mini- @crain.com. dicted by a federal grand jury in they share revenue with the state. mum bid on the property was — Daniel Duggan Detroit in 1996 and again in 2002, — Amy Lane $500,000. Brokerage Grubb & Ellis charged with using shell compa- is working on the proposal. nies and phony paperwork to CORRECTIONS WSU biz school get interim dean — Chad Halcom dupe auditors and bankers. A photo caption in the Rumblings column on Page 42 of the July 16 — Robert Ankeny Wayne State University has issue misspelled the name of Tommy Brunswick, co-owner of Milford- named business professor David Grocer decides not to buy based movie studio The Skeleton Factory. Tribes appeal court ruling Williams interim dean of the Farmer Jack Detroit store A quotation on Page 23 of the July 16 issue misstated the last name School of Business Administra- of the architect of the Renaissance Center, John Portman. A dispute between two Ameri- tion. Williams replaces former An independent grocer that A “This Just In” item in the July 16 issue about the acquisition of can Indian tribes and the Michi- Deloitte & Touche L.L.P. executive was slated to buy the Farmer Jack Troy Technology Park should have said the park is 65 percent occupied, gan Economic Development Corp. is Richard Gabrys, who had served location at 11300 E. Jefferson Ave. not 65 percent vacant.

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July 23, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Suppliers beating The Street? INDEX

both automakers and suppliers. They suddenly are attracting investors again In a note to investors last month, Hoselton also highlighted 2006 pro- BY APRIL WORTHAM Corp., Dana Corp., assets on the cheap and reorganize duction cuts made by automakers in CRAIN NEWS SERVICE INSIDE Dura Automotive Inc., the business,” says Jack Lake, a re- 2006 that he says have returned in- Tower Automotive search analyst with the investment ventories to a healthy level. The in- If you’re a major North American Change is Inc., Collins & Aikman advisory firm Victory Capital Manage- dustry’s overall supplier pricing automotive supplier that has avoid- constant in structure appears to be improving, world of Corp. and Federal- ment Inc. in Cleveland. ed bankruptcy, Wall Street has tak- suppliers. See Mogul Corp. “So now you have a little more ra- too. en a shine to you this year. supplier Despite the bank- tional competition, you don’t have as “Numerous suppliers noted that Development: Retail, Supplier stocks have hit new residential planned for outlook story, ruptcies — even be- much incremental pressure from they are pushing back on pricing WSU pharmacy building highs in recent weeks, buoyed by in- Page 18. cause of them — rising raw-material prices, and you with automaker customers by re- (above). Page 25. vestors following the lead of private suppliers left stand- have the unions seeming to be a little questing smaller annual price con- Supplier: Bosch-Rexroth equity and encouraged by stabiliz- ing suddenly are attractive to in- more conciliatory.” cessions,” Hoselton wrote. consolidates two offices. ing raw-material prices and coopera- vestors again. And with the second- Signals from the United Auto Work- These and other factors have con- Page 25. tive labor unions. quarter earnings season hitting full ers that it is ready to cooperate on la- tributed to a consensus on Wall Budget: Oakland County It’s a stark change from a year steam this week, many analysts ex- bor and health care issues is one of Street that the worst of the storm has seeks pay, health care ago, when the domestic supply chain pect major suppliers to meet or beat the major reasons auto analyst Brett passed. But investors aren’t ready to concessions. Page 26. was buried beneath an avalanche of earnings estimates. Hoselton at Cleveland-based KeyBanc put away their umbrellas yet. These organizations appear in this bankruptcies. Many are still digging “What has happened is you’ve had Capital Markets says he is “cautiously “No one thinks that’s it — that’s week’s Crain’s Detroit Business: their way out — among them Delphi private equity come in and buy those optimistic” about the outlook for See Suppliers, Page 29 AlixPartners L.L.P...... 18, 19, 29 Altarum Institute ...... 1 American Axle ...... 19 American Society of Employers . . . . . 7 Amerigon Inc...... 19 Amherst Partners ...... 29 APCP-ARCON L.L.C...... 27 Arab American/Chaldean Council. . 27 ArvinMeritor Inc...... 19 Beringea L.L.C...... 15 BlackEagle Partners L.L.C...... 13 Ficano, landlord dispute lease rate Board Committee Reporters ...... 26 BorgWarner Inc...... 19 Bosch-Rexroth Corp...... 25 Boydell Development Co...... 25 OWNERSHIP OF THE OLD COUNTY BUILDING Busch’s Inc...... 3 County pays $45 per square Camp Brighton...... 14 The Old County Building at 600 Randolph St. is owned by Old Wayne County CDPA Architects Inc...... 27 Building L.P. Center for Automotive Research . . . 12 foot — or $16; who’s right? Southfield attorney Henry Wineman II is the general Champion Enterprises Inc...... 12 partner of the partnership, said the group’s Chrysler Financial...... 19 Citizens Republic Bancorp Inc. . . . . 15 spokesman Michael Layne of Marx Layne & Co. BY DANIEL DUGGAN “I think the last 25 years have Collins & Aikman Corp...... 3 Holding a 5 percent stake in the ownership is Burt Comerica Inc...... 15 CRAIN’S DETROIT BUSINESS been a total fleecing of the people of Farbman, chairman of the Southfield-based NAI CSM Worldwide Inc...... 19 Wayne County,” said Wayne County Farbman Group. Dana Corp...... 3 Depending on who’s asked, Delphi Corp...... 3, 18, 19 Commissioner Burton Leland dur- Also in the group: Jack Martin, a Detroit CPA Wayne County was either getting ing the press conference. Detroit/Windsor Tunnel ...... 14 one of the better deals in town — or and owner of Jack Martin & Co. P.C.; Lou Glazier Dickinson Wright P.L.L.C...... 7 Later that day, another price of of Franklin Advisors L.L.C., Farmington Hills; and Dura Automotive Inc...... 3 one of the worst $16 per square foot for the county’s Janice Frazer. There are also 48 limited eBuy Media Inc...... 17 NEW — on its lease at lease was given by Michael Layne, a partners. EDF Ventures ...... 15 the Old County Engineering Society of Detroit. . . . . 27 partner with Farmington Hills- The building is managed by Warner Faye Entrepreneurs Organization ...... 7 OFFER Building at 600 based Marx Layne & Co., acting as Management, which uses employees of NAI Federal-Mogul Corp...... 3, 18, 19 Fifth Third, Eastern Michigan . . . . . 15 Owners of Randolph St. spokesman for Old Wayne County Farbman Group, Layne said. The price of First Spirit Bank...... 15 County building Building L.P., the partnership that The CoStar Group lists NAI First Tech Direct L.L.C...... 7 issue counter- $45 per square owns the building. Farbman as the owner of Fishbone’s ...... 14 proposal, foot for the lease the property. Friedman Real Estate Group ...... 25 And both sides were equally Guidance Center ...... 16 Page 28. wound up plas- forceful about the accuracy of their Hayes Lemmerz International Inc. . . 19 tered on a poster numbers. Hiller’s Markets Inc...... 3 board next to Wayne County Execu- IJM Realty ...... 25 Of the $45-per-square-foot figure, Income Property Organization . . . . . 29 tive Robert Ficano during a Wednes- Layne said: “That is a total fabrica- Johnson Controls Inc...... 19 day news conference to announce tion.” Kenneth J. Dalto & Associates . . . . . 3 the county’s plans to purchase the Lear Corp...... 18, 26 So who’s right? Loomis, Sayles & Co. L.P...... 12 Guardian Building for $14.5 million. Masco Corp...... 12 See County, Page 28 AARON HARRIS Michigan Dept. of Community Health 1 MSX International ...... 25 National City Bank, Michigan . . . . . 15 Oakland County Employees Union . . 26 Old Wayne County Building L.P...... 3 Paper Plas Inc...... 15 Pulte Homes ...... 12 Quicken Loans/Rock Financial . 12, 15 Ram Development Co...... 1 Republic Bancorp Inc...... 15 Added stores make Kroger bigger target Robert Bosch Corp...... 25 Soc. of Manufacturing Engineers . . 27 Tower Automotive Inc...... 3, 18 the company No. 1 in metro De- Inc., which bought a Farmer Jack store in Com- University of Michigan . . . . 11, 12, 27 VG’s Food & Pharmacy ...... 3 Market-share battle troit, according to the February merce Township; Ann Arbor-based Busch’s Inc., Wayne State University ...... 25 issue of Market Scope, a semian- which bought two stores in South Lyon and Novi; WDIV-Channel 4 ...... 17 nual publication of Westport, and Fenton-based VG’s Food & Pharmacy, which WJBK-Channel 2...... 17 could be ahead WMYD-Channel 20 ...... 17 Conn.-based Trade Dimensions In- bought three stores in Fenton and Shelby Town- WXYZ-Channel 7...... 17 ternational Inc. ship. BY SHEENA HARRISON Kroger controlled about 23.1 Kroger also will need to be wary of chains such CRAIN’S DETROIT BUSINESS percent of the metro Detroit as Trader Joe’s, Whole Foods Market and Papa Joe’s BANKRUPTCIES ...... 6 BRIEFLY ...... 28 market in that report. The Gourmet Market The Kroger Co. stands to benefit from its recent , which opened its new 48,000- BUSINESS DIARY ...... 23 acquisition of 20 Farmer Jack stores. But the pur- chain was a close second to square-foot “gourmetrion” store in Rochester in CALENDAR ...... 24 chases also will make Cincinnati-based Kroger Dalto Walker-based Meijer Inc., which April. CAPITOL BRIEFINGS ...... 6 the target of several grocery chains that will fight had 24.3 percent. Farmer Jack “If they (Kroger) just look at Meijer, they’re go- CLASSIFIED ADS...... 22 the company for market share. was in third with 15.9 percent. ing to make mistakes,” Dalto said. “They have to DIVIDENDS...... 4 That’s according to restaurant and grocery con- Taking the bulk of Farmer Jack’s business look at every community now that they serve.” EARNINGS ...... 4 would put Kroger on top and put the company in Kroger will have to differentiate itself from its KEITH CRAIN ...... 8 sultant Kenneth Dalto of Farmington Hills-based LETTERS ...... 8 Kenneth J. Dalto & Associates. Dalto said Kroger Meijer’s line of fire, Dalto said. But smaller com- competitors by providing fresh food and cheap MARY KRAMER...... 9 chose Farmer Jack locations that will increase the petitors also will be gunning for Kroger’s busi- prices, and catering to customers looking for OPINION ...... 8 company’s sales and make the chain a leader in lo- ness, particularly chains that have gourmet goods gourmet goods and healthy foods, such as low-fat PEOPLE ...... 24 cal market share. and loyal customers, he said. and organic items, Dalto said. RUMBLINGS...... 30 The 20 stores that Kroger acquired likely made That includes Southfield-based Hiller’s Markets See Kroger, Page 28 WEEK IN REVIEW ...... 30 DETROIT BUSINESS MAIN 07-23-07 A 4 CDB 7/20/2007 6:21 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS July 23, 2007 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Companies bracing for hit from Michigan Biz Tax in 3Q

BY AMY LANE practice at PricewaterhouseCoopers rat who chairs the House Tax Poli- CAPITOL CORRESPONDENT L.L.P. and board member of the cy Committee, said the issue is the Michigan Association of Certified Pub- biggest one that’s emerged with the LANSING — Publicly traded lic Accountants, which is actively new MBT, and he is having a bill companies are facing an unexpect- involved in the issue. drafted to reinstate the deduction. ed consequence of Michigan’s new “That was why it was such a sur- He said eliminating the deduc- business tax — a potential hit to prise. … There’s extreme concern tion was a mistake that should be third-quarter earnings. on the part of companies in a de- corrected. He said it could be late That’s because a deduction to ferred liability position. It’s criti- August or early September before offset some higher tax liabilities cally important that this issue get the bill sees action. under the new Michigan Business resolved quickly, to provide cer- Lynn Gandhi, principal at Miller, Tax evaporated in June’s final leg- tainty and help them evaluate the Canfield, Paddock and Stone plc, said islative action. As a result, compa- earnings impact of the new tax,” nies may need to take a third-quar- Nowak said. lawmakers have a limited number ter accounting charge that could, Sarah Hubbard, vice president of session days scheduled between for the largest companies, amount of government relations for the De- now and Sept. 30, but if Bieda “has to more than $100 million, by some troit Regional Chamber, said many a bill ready to go the end of August estimates. non-Michigan public companies … it can happen in 30 days,” even At the heart of the issue is an ac- that have significant activity in with the legislative schedule. counting rule that requires public the state could be affected as well. Amy Lane: (517) 371-5355, alane companies to recognize, in their fi- Steve Bieda, the Warren Democ- @crain.com nancial reporting, the income tax liabilities that they book to future years. Companies now must reval- ue, based on the new tax rate in the MBT, those deferred tax liabil- ities. They must make the adjust- EARNINGS ment in the quarter in which a new tax is enacted, which with the Comerica Inc. NYSE: CMA Citizens Republic Bancorp Nasdaq: CRBC MBT’s July 12 signing is the cur- 2nd Quarter June 30 2007 2006 2nd Quarter June 30 2007 2006 rent quarter. Revenue …………….$1,158,000,000 $1,048,000,000 Revenue ...... $233,631,000 $140,161,000 A legislative fix is in the works, Net income ...... $196,000,000 $200,000,000 Net income ...... $9,619,000 $20,907,000 Earnings per share ...... $1.25 $1.22 Earnings per share ...... $.13 $.49 in the form of a 10-year deduction 6 months 6 months that would reduce future taxable Revenue ...... $2,262,000,000 $2,015,000,000 Revenue ...... $469,737,000 $278,122,000 income. If enacted as originally Net income ...... $386,000,000 $394,000,000 Net income ...... $41,111,000 $41,663,000 Earnings per share ...... $2.45 $2.40 Earnings per share ...... $.54 $.97 proposed, the deduction would not 2006 figures reflect Citizens’ activity only. 2007 be available until 2013 and then Champion Enterprises Inc. NYSE: CHB figures include totals for merged Republic Bank op- would phase in 10 percent a year, a 2nd Quarter June 30 2007 2006 erations. schedule that would cushion the Revenue ...... $330,360,000 $370,717,000 fiscal impact on the state. Net income ...... $7,465,000 $112,082,000 Earnings per share ...... $.10 $.1.44 The deduction would protect 6 months DIVIDENDS companies from the MBT-related Revenue ...... $590,157,000 $717,246,000 earnings charges now and in the Net income ...... $219,000 $125,729,000 Company Amount Payable Record date date future. It would not immediately †Earnings per share ...... — $1.62 †- After a loss in the first quarter, earnings per 2007 2007 affect the actual taxes companies Citizens Republic Bancorp $0.29 8-16 8-02 share were less than 1 cent for the first six months of will pay under the MBT but would 2007. CMS Energy Corp. $0.05 8-31 8-10 lower tax liability for a 10-year fu- ture period. Companies are pressing law- makers for quick action as they STREET TALK move toward the Sept. 30 close of their third-quarter reporting peri- THIS WEEK’S STOCK TOTALS: 19 GAINERS, 52 LOSERS, 9 UNCHANGED ods and a charge that could be 7/20 7/13 PERCENT viewed negatively by analysts and CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE investors. 1. Champion Enterprises Inc. $12.43 $9.69 28.28 “We see this as an immediate 2. North Pointe Holdings Corp. 11.63 10.63 9.41 problem, and it really is a technical 3. Syntel Inc. 35.06 32.53 7.78 fix that’s needed, but it’s something 4. Origen Financial Inc. 7.02 6.58 6.69 that’s urgent,” said Tricia Kinley, 5. Meadowbrook Insurance Group 10.30 9.77 5.43 director of tax policy and economic 6. Lear Corp. 38.75 36.90 5.01 development for the Michigan Cham- Compuware Corp. 10.61 10.24 3.61 ber of Commerce. “To penalize a 7. company in the eyes of Wall Street, 8. Ramco-Gershenson Properties 37.35 36.47 2.41 when they’ve actually had no 9. Agree Realty Corp. 32.11 31.55 1.78 change in their financial standing, 10. First Mercury Financial Corp. 20.61 20.29 1.58 simply because we have this tech- CDB’S LOW PERFORMERS 7/20 7/13 PERCENT nicality in the law, is unfair.” CLOSE CLOSE CHANGE Business groups and some law- 1. Asset Acceptance Capital Corp. $14.90 $17.46 -14.66 makers thought they had the issue 2. Energy Conversion Devices Inc. 28.86 32.87 -12.20 addressed. But the final bill that 3. Visteon Corp. 7.31 8.01 -8.74 emerged from a conference com- 4. Universal Truckload Services Inc. 18.61 20.18 -7.78 mittee and rapidly passed the 5. Caraco Pharmaceutical Labs Ltd. 15.76 16.95 -7.02 House and Senate lacked a provi- 6. Comerica Inc. 56.28 60.26 -6.61 sion for the deduction present in 7. Ford Motor Co. 8.40 8.97 -6.36 previous drafts. 8. Somanetics Corp. 17.58 18.76 -6.29 “It wasn’t until after the bill had 9. Dearborn Bancorp Inc. 15.62 16.63 -6.07 been already passed that we had a 10. Credit Acceptance Corp. 24.52 26.03 -5.80 chance to receive the enrolled bill” Source: Bloomberg News. From a list of publicly owned companies with headquarters and see that the provision had in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading been deleted, said Greg Nowak, at less than $5 are not included. partner in the state and local tax DBpageAD.qxd 7/10/2007 10:05 AM Page 1

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Rates exclude taxes and Sprint Fees (including USF charge of up to 2.91% that varies quarterly, cost recovery fees up to $1.55 per line and state/local fees that vary by area). Sprint Fees are not taxes or government-required charges. The Nationwide Sprint PCS Network reaches over 262 million people. The Nextel National Network reaches over 274 million people. Coverage not available everywhere. Offers may not be available in all markets or retail locations. Terms and conditions apply. Speed claim based on walkie-talkie call set-up time. Subject to credit approval. See store or sprint.com for details. Offers expire 9/3/07 or while supplies last. Available to corporate-liable accounts (activations using a business name and tax ID) only. Up to $36 activation fee and $200 early termination fee apply per line. Nextel Walkie-Talkie: Group and International Walkie-Talkie excluded. International Walkie-Talkie service provided for calls in and between the U.S. and Canada, Mexico, Argentina, Peru and Brazil. Free Incoming Plan: Free Incoming applies to calls received in the U.S. Overage $0.45/min. Nights: 9pm –7am; Wknds.: Fri. 9pm–Mon. 7am. Partial min. charged as full min. ©2007 Sprint Nextel. All rights reserved. SPRINT, the logo, the NEXTEL name and logo, and other trademarks are trademarks of Sprint Nextel. MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Office. All third-party product or service names are property of their respective owners. All rights reserved. DETROIT BUSINESS MAIN 07-23-07 A 6 CDB 7/20/2007 6:20 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS July 23, 2007 Biz hangs up on proposed phone tax

LANSING – Businesses and multiple cell phones. state public-safety fund and be dis- “the entire criminal justice com- the citizens of Michigan.” are calling on lawmakers “It’s going to add an ex- tributed to a host of programs, in- munity,” including state parole However, in a news release last to hang up on a proposal tra layer of cost onto my cluding the statewide radio com- systems, fire services and forensic week, Oakland County Sheriff that would add a $1.35-a- phone bill that really does- munications system used by science activities such as State Po- Michael Bouchard called it a month fee on all phones. n’t have anything to do police, fire and EMS. lice crime labs. “back-door attempt to solve the They say House Bill with my telephone ser- Kurt Weiss, public-information Akans also said the proposal state’s budget problems with a 4852 would have a broad vice,” Lesich said. officer for the Michigan Department would enable the State Police to monthly tax on every phone in impact on business opera- The bill, sponsored by of Information Technology, which hire more officers. She said the Michigan. These programs are im- tions, increasing the costs House Appropriations oversees the communications sys- proposal is connected to phone ser- portant but should get priority of cell phones, land lines Committee Chairman tem, said the funding would eradi- vice because that is how residents funding in the existing general and Internet-based call- George Cushingberry, D- cate the need for Michigan State Po- call for public-safety assistance. fund.” CAPITOL BRIEFINGS ing. Detroit, would raise about lice budgetary support and The Michigan Fraternal Order of Joe Steele, spokesman for AT&T Mike Lesich, president Amy Lane $198.3 million annually, alleviate fees local governments Police last week said the legislation Inc.’s Michigan operations, said and CEO of Oak Park computer according to a House Fiscal Agency pay to join the system. will result in “better communica- the fees may cause phone cus- services company Excellis Inc. said analysis. Another state analysis Shanon Akans, public affairs tions, better-trained police officers tomers to evaluate whether to the charges would add an extra $35 shows a figure of $132.8 million. section manager for the state po- and fire fighters, upgraded tech- have a land line along with a cell a month for his dozen phone lines The money would go into a new lice, said the bill would benefit nology to fight crime and protect phone and drop some telecommu- nications services. The Telecommunications Associa- tion of Michigan launched an ad campaign to combat the tax and is joined in its opposition by organi- zations that include the Michigan Detroit July 2007 Chamber of Commerce, the Small Pittsburgh Business Association of Michigan and the Detroit Regional Chamber. Sarah Hubbard, vice president of government relations at the De- troit Regional Chamber, said “it’s just another hidden tax on busi- ness. We’re talking about another way to nickel and dime them.” Granholm plans foreign trip Gov. Jennifer Granholm is plan- ning an August trip to Sweden and Germany to encourage companies to invest in Michigan. The Aug. 19- 25 trip will include meetings with executives and government offi- cials in automotive and alterna- tive-energy. Michigan Economic De- velopment Corp. President and CEO Jim Epolito also will take the trip. Comings & goings ■ Steven Transeth, former assis- tant director and legal counsel for the Michigan Legislative Service Bu- has partnered reau, has been appointed to the Michigan Public Service Commission. with management to recapitalize He fills a slot on the three-member commission vacated July 13 by Chairman Peter Lark, now general manager of Lansing Board of Water & Light. Transeth’s appointment is subject to Senate approval. A new chairman has not been named. ■ Dana Debel, policy director for Granholm, is joining Northwest Air- lines Corp. as director of state and local affairs, based in Detroit. She starts July 30. ■ Mitch Irwin, director of the Headquartered in Georgetown, Ontario, Canada, The Olon Group, Inc. designs, manufactures and Michigan Department of Agriculture, is retiring. He plans to rekindle op- distributes woodworking component products for the North American furniture and cabinet-making portunities in business develop- industries, including drawer components, wrapped moldings, edge treatments and decorative laminates. ment, investment and real estate, and restructure a company to be With manufacturing facilities in Ontario, Indiana and Illinois, the Company sells its products primarily called The Irwin Group L.L.C. to office furniture and cabinetry OEMs, wholesalers and distributors in Canada and the United States. Amy Lane: (517) 371-5355, alane@ crain.com

BANKRUPTCIES HURON CAPITAL PARTNERS LLC The following businesses filed for Chapter 11 protection in U.S. 500 Griswold, Suite 2700 225 Ross Street, 4th Floor Bankruptcy Court in Detroit July 13- Detroit, Michigan 48226 www.huroncapital.com Pittsburgh, Pennsylvania 15219 19. Under Chapter 11, a company Tel: 313.962.5800 Tel: 412.201.7040 files a reorganization plan. Ben’s Discount Drugs Inc., 5412 W. Warren, Detroit, voluntary Chap- ter 11. Assets and liabilities not Management Buyouts | Recapitalizations | Corporate Spin-Offs | Buy & Build Platforms | Family Succession Transactions available. — Compiled by Aaron Harris DETROIT BUSINESS MAIN 07-23-07 A 7 CDB 7/19/2007 8:59 AM Page 1

July 23, 2007 CRAIN’S DETROIT BUSINESS Page 7 Employee reviews are important for workers, companies

Employee performance reviews views before they’re given to em- sure that they’re meeting the crite- age 50 but can remain members af- can be a crucial tool for small busi- EVALUATING EMPLOYEES ployees. ria that the organization has set ter that age. nesses that want to develop work- This helps ensure that the re- out,” DeSantis said. “Many companies have done Set a schedule for reviewing ers and safeguard themselves views are fair and don’t make as- Training to give reviews can this already and have done it well, employees and stick with it. against potential lawsuits. sessments based on illegal factors, make the process go more smooth- so there’s no reason to reinvent Evaluate performance on Professionals say reviews pro- ly, DeSantis said. For example, the the wheel,” Silvani said. objective criteria. Provide positive such as age or family status, vide employees with an analysis of and negative feedback, as well as Howlett said. ASE provides educational sessions Sheena Harrison: (313) 446-0325, their professional strengths and concrete suggestions for how the Businesses can appoint a couple on evaluating employees. [email protected] weaknesses. They also provide em- employee can improve. of executives to review evalua- Silvani said his company’s re- ployers with a record of an employ- Have a team of executives or an tions, such as the CEO and the hu- view process came largely from his ee’s performance if the company is attorney review evaluations to man-resources manager. At small- experience at previous businesses. SOLUTIONS ON THE WEB sued by a worker who was fired or make sure they’re fair and legal. er companies, an attorney can look But First Tech also received advice Read Sheena Harrison’s previous passed over for a promotion. Document employee reviews at reviews and help the firm stay from the Entrepreneurs Organization, Small Biz Solutions columns at “A good evalu- and keep them on file. within legal boundaries. a peer-advisory group comprising www.crainsdetroit.com. Click on ation system can “We really recommend that entrepreneurs with businesses that her name in the list of columnists on the left-hand side of the Web make (for) a mented and kept on file. It is also there be somebody who basically generate revenue of more than $1 page. much better wise to have someone review the re- looks at all of the reviews to make million. Members must join before place to work, as long as it’s done correctly,” said Timothy Howlett, director of the labor and employment SMALL BIZ SOLUTIONS practice at Dickin- Sheena Harrison son Wright P.L.L.C. in Detroit. Many small businesses avoid giv- ing reviews because it can be te- dious, even nerve wracking, said Joe DeSantis, director of communi- cations for the Southfield-based American Society of Employers. Many executives or managers also are concerned about delivering negative reviews to employees who might not handle the news well. “Fundamentally, this is not an easy thing to do,” DeSantis said. The key is committing to an or- ganized, fair review process that employees can count on and train- ing managers to give reviews. Both Howlett and DeSantis say companies should set a regular time frame for evaluating employ- ees and stick with it. That can mean giving reviews on an em- ployee’s anniversary at the compa- ny, or reviewing all employees at the same time of year. “You need to make sure that there’s a commitment from every- one that you’re going to do it,” Howlett said. “The worst thing is to say there’s going to be annual eval- uations and they don’t get done.” It’s something First Tech Direct L.L.C. is improving upon. The Royal Oak-based information-technology services company has 26 workers. President John Silvani said the firm used to do reviews “haphaz- ardly” but now is formalizing its process to provide more consistent reviews. Under the new policy, em- ployees will receive an evaluation after 90 days at the company and every year after that. “Without a regular time frame, Business is about offering the best choices. evaluations weren’t being done ac- ® tively for employees,” said Silvani, SO WHY DOESN’T YOUR BROKER OFFER STATE FARM ? whose company reported 2006 sales of $5.4 million. “And that’s A broker can’t offer you State Farm® insurance for one simple reason: they don’t provide you with the dedicated not fair to them.” personal service of a State Farm agent. You’ll always have a strong relationship to count on when you need help. This It’s important to develop a set of objective criteria by which em- higher level of support doesn’t carry a higher price, though–we offer very competitive rates on the particular types ployees can be judged, Howlett of coverage your business needs. Make the right choice. Call your agent today or visit statefarm.com® said. For instance, salespeople can be evaluated by whether they met sales goals. Companies should discuss posi- tive and negative feedback in their reviews, and provide ways the em- ployee can improve performance. “It limits the amount of argu- ment about fairness in the process,” Howlett said. State Farm Fire and Casualty Company • State Farm General Insurance Company • Bloomington, IL • State Farm Florida Insurance Company • Winter Haven, FL • State Farm Lloyds • Dallas, TX Howlett and DeSantis said re- views should be consistently docu- DETROIT BUSINESS MAIN 07-23-07 A 8 CDB 7/20/2007 5:12 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS July 23, 2007 OPINION A&P forgot to serve Detroit community

he grocery business is notoriously unforgiving. With ra- T zor-thin profit margins and intense competition, the in- dustry demands flawless execution of the right retail strategies. Which brings us to the case study of Farmer Jack and its parent company, Great Atlantic & Pacific Tea Co. Inc. After it purchased the locally owned Farmer Jack chain in 1989, A&P produced a veritable encyclopedia of bad strategies and terri- ble execution. Its graceless exit this month from the Detroit market was just the final chapter. At the time of the purchase in 1989, the combined market share for A&P and Farmer Jack stores in metro Detroit was about 33 percent. Earlier this year, Crain’s reported its market share for the 66 stores in the region had dropped to about 16 percent. There are many reasons for the decline, including fierce competition. Service was also an issue in many stores; one ana- lyst told Crain’s at the time of a major store opening about three years ago that it was just a matter of time before the shining store stumbled with service, appearance and stocking issues. But a modest, yet parochial view held within Crain’s news- LETTERS room is that local management was disconnected from the community. In recent years, one local president, Mike Carter, tried to Greed behind worker ‘shortage’ become more active and visible, but it appeared he got little support from the New Jersey headquarters to do so. Editor: in other industries since they can- The entire store-closing process was shrouded in secrecy, Crain’s Detroit Business I read the July 16 Opinion titled, welcomes letters to the editor. not live on half or less of what they confounding employees, customers and the communities where “Microsoft move tells much,” and All letters will be considered for used to earn in IT is proof enough. the stores were located. All media calls routinely were referred have to take exception. publication, provided they are It’s long past time for the truth to to New Jersey headquarters, which rarely returned a call. Microsoft, and much of the in- signed and do not defame be told: There’s no shortage of tal- ent in the U.S., just corporate greed. We can understand that the bidding process and sale of the formation-technology industry, individuals or organizations. continues to propagate the myth Letters may be edited for length James Aiello stores required some degree of confidentiality, but the lengthy President that there is a shortage of talent in and clarity. process seemed to be taken to an extreme. JRA Systems L.L.C. the U.S. They continue to press for Write: Editor, Crain’s Detroit St. Clair Shores It wasn’t just here that A&P fumbled; its clumsy exits are unregulated immigration policies Business, 1155 Gratiot Ave., happening all over the country. The company, once the largest in the U.S. as the “answer.” Their Detroit, MI 48207-2997. The view looks good grocery chain in the country, now has a strategy to concen- telling of a half-truth is still a lie. E-mail: [email protected] When position postings are list- Editor: trate on Northeast states and is in the process of buying Path- ed at one-half, or less, of the U.S. Keith Crain’s July 2 column, mark, another New Jersey-based grocery chain. salary range for a position, they hour. Corporate IT also selected “We still have lots of things to cele- If A&P had allowed the Farmer Jack division more autono- will not get many U.S. citizens ap- the résumés forwarded to me for brate,” should have been printed in bold letters on the front page. my to connect and communicate locally, its ties to customers plying. I have worked on and man- consideration. Almost every one was an H1B immigrant. It is really refreshing to see that and communities would have been stronger. Market share aged multimillion-dollar IT pro- jects awarded to Indian- and In many cases, immigrant work- someone around here at a “mile- may even have risen. Chinese-owned companies where er expenses are subsidized to fur- high level” has good things to say Meanwhile, customers of old Farmer Jack stores that sold most, if not all, of the workers ther lower their short-term salary about Michigan and Detroit. My beer, wine and liquor now suffer because, as The Detroit News were brought over under immi- rates. Immigration policies make sister, who grew up in St. Clair Shores with me, was up here from reported last week, requests for license transfers by new own- grant worker policies. it attractive for foreign workers to come to the U.S. and work for half her home in Florida along with her ers face the same state scrutiny as new applications. That’s a I have managed IT departments where a $28-per-hour employee the going salary for a short time to two sons — one just graduated from state problem, not the fault of Farmer Jack. So, here’s a note to had to be laid off, and the same job get their green card. The ever- law school and the other will gradu- the state: The delays are ridiculous, especially when buyers in- posting was issued the following growing number of displaced U.S. ate from law school next June. clude longtime liquor license holders like Kroger Co. week with a salary cap of $20 per IT workers that are now working See Letters, Page 8

KEITH CRAIN: Shareholders spoke, so Lear must listen Last week, the shareholders of shares in the company ten, so it was remark- shareholders to be represented in- would make him an enthusiastic Southfield-based Lear Corp. sum- for his trouble. able that the owners of dependently in a transaction. If a proponent of any such deal. marily rejected an offer by Carl Most shareholders Lear, the shareholders, company is trying to do the best for Now it’s back to work for the Icahn to buy the company for thought the company rejected the idea. its owners, there must be an arm’s managers of Lear. If they are too something less than $3 billion. was worth $10 to $20 a Corporate boards length between seller and buyer. tainted by their support of that The offer was put together by share more than Icahn have nominating com- The most notable and question- transaction, the not-so-indepen- management, and it was supported offered. mittees, but in practice, able recent transaction in Detroit dent board might have to make by Lear’s board. Although we It wasn’t an isolated directors are picked by was when Daimler-Benz bought some other hard decisions. don’t know the actual vote, it ap- instance of the proposed the management team Chrysler in 1998. Many Chrysler Perhaps it’s time for Lear execu- pears that it lost by a wide margin. sale of a company in or CEO. It’s no wonder managers received huge bonuses. tives to go back to the basics of do- If the offer had been approved, it which the managers ne- corporate governance A local banker, now retired, told ing what they have been very good would have meant substantial pay- gotiated the transaction can get lost when direc- me that the going price for the sup- at for a long time. outs for the top managers of Lear. — along with huge pay- tors then vote on sales port of a chairman of a bank that Maybe it’s time for everyone to If the deal didn’t go through, outs for themselves — or takeovers that create was being bought was a nice bonus go back to running companies for Icahn was to receive more than $12 and then the board rubber-stamped large payments to management. of $100 million. What chairman the benefit of shareholders, cus- million and more than 335,000 the decision. It happens all too of- There must be a better way for would object to such a windfall? It tomers and employees. DETROIT BUSINESS MAIN 07-23-07 A 25 CDB 7/20/2007 5:12 PM Page 1

July 23, 2007 CRAIN’S DETROIT BUSINESS Page 25 Bosch-Rexroth consolidating 2 offices

BY CHAD HALCOM The facility, tentatively named marketing specialist Negin Neg- was about to expire, so it was good CRAIN’S DETROIT BUSINESS the Rexroth Technical Center, habat said. timing (to move).” will house 22 employees in Bosch- Robert Bosch is the U.S. divi- The 57,000-square-foot facility Global parts supplier and engi- Rexroth’s Intelligent Hydraulic sion of Robert Bosch GbmH, based on Research Drive, which War- neering firm Bosch-Rexroth Corp. is Drives unit, a hybrid engine com- in Stuttgart, Germany, the largest ren-based MSX International consolidating two Southeast AARON HARRIS ponent project the company ac- single auto-supplier company leased until 2002, has been vacant Michigan operations and 120 em- The former WSU pharmacy building quired from Dana Corp. last year. worldwide with $26.9 billion in most of the past five years, was set to be demolished in January. ployees into one new location in Rochester Hills after leasing the The IHD unit employees began original equipment automotive Rochester Hills Mayor Bryan Bar- former offices of MSX International moving in earlier this month and sales for 2006. nett said last week. WSU pharmacy Inc. in the Rochester Hills Execu- the company expects another 98 “We had acquired IHD and the Neghabat said the Auburn Hills tive Park near Auburn Road. employees based in its Auburn management wanted to be in one employees will begin vacating Representatives for the U.S. di- Hills offices will follow during the building for both divisions, and their offices on Harmon Road be- building buyer vision of Bosch-Rexroth, based in last quarter of the year. the needs of that unit were com- tween October and December. Lohr am Main, Germany, will The company and its U.S. sub- patible with this facility in Auburn Hills has an industrial join Rochester Hills city officials sidiary comprise the technologi- Rochester Hills,” Neghabat said. building vacancy of 10.6 percent. has plans for today in a formal announcement cal sector of Robert Bosch Corp. in “And at the same time, the lease Chad Halcom: (313) 446-6796, of the move. Farmington Hills, Bosch-Rexroth on our facility in Auburn Hills [email protected] retail, residential

BY DANIEL DUGGAN CRAIN’S DETROIT BUSINESS

A former Wayne State University pharmacy school building, vacant for five years, was set to be demol- You have enough people trying to ished by January if a buyer could- n’t be found. sell you things. Huntington wants Rescuing the building from the A lot of banks to listen to you. Find out what you wrecking ball was part of the ap- peal for developer Dennis Kefalli- want to do. Discover where you nos, who has purchased the eight- story building for $2.3 million and want to sell you want to go. And then make sure is considering a mixed-use devel- opment for it. we put those opportunities within “This is a really unique build- ing, I didn’t want to see it demol- reach. It’s this personalized ished,” he said. business banking. approach and attention to detail Kefallinos, who has developed other aging Detroit buildings for that won Huntington a Greenwich residential use, plans to make a firm decision on the fate of the Huntington would rather talk Award honoring excellence 160,000 square-foot building at 1401 Rivard St. in the next 90 days. in business banking. He is considering a mixed-use de- business with you. velopment with residential on the upper floors and retail and com- What’s standing between you and mercial on the ground floor. A high-end steak house could fill the more success? We can’t wait to retail space, said Kefallinos, who find out. Give us the opportunity owns Niki’s Pizza, Coach’s Corner and Loco Bar & Grill, all in Detroit. to show you how a relationship Selling the building has been a five-year endeavor for Howard with our award-winning team can Perlman, a senior vice president with Farmington Hills-based Fried- help you. man Real Estate Group who bro- kered the sale on behalf of WSU along with Steve Eisenshtadt, a vice president with Friedman. Ke- fallinos was represented by De- troit-based IJM Realty. “That building was a white ele- phant,” Perlman said. “There was a lot of activity but potential buy- ers couldn’t make it work; it was cost-prohibitive to tear it down and start from scratch.” This wouldn’t be the first rede- velopment for Kefallinos, owner of Boydell Development Co. He has con- verted the River Park Lofts at 227 Iron St. and the Lafayette Lofts at 1301 W. Lafayette Blvd. The price for a building this size made the deal very attractive, he said. “At that price, you’d only be Call 1-800-976-1345 or visit standing across the street looking huntington.com to find a local at the building in other parts of the PERSONALIZED BUSINESS BANKING. city,” Kefallinos said. Huntington representative Two other former WSU proper- ties have been sold to private devel- who is ready to listen. opers for redevelopment in recent years. The loft-style residences at 55 W. Canfield St. and Willys Over- land Lofts, 444 W. Willis St., were Greenwich Associates is a leading worldwide strategic consulting and research fi rm specializing in fi nancial services. Excellence award selection was based upon the results of the 2005 redeveloped WSU properties. Business Banking Study conducted by Greenwich Associates. Banks selected for an award had to have a significantly different percentage of “excellent” ratings than the mean for all banks Daniel Duggan: (313) 446-04120, at a 95% confidence level. Member FDIC. A® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. ©2007 Huntington Bancshares Incorporated. [email protected] DETROIT BUSINESS MAIN 07-23-07 A 26 CDB 7/20/2007 5:13 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS July 23, 2007 Oakland County seeks pay, health care concessions

BY CHAD HALCOM property tax revenue next fiscal balanced. “We don’t 2008 pay raise would be 3 percent. CRAIN’S DETROIT BUSINESS year and just 1 percent for 2009. The total bud- have to accept Along with the wages, the coun- Property taxes account for 62 get — $708.9 mil- The county will ask all the 1 percent ty will ask all employees for higher Faced with flat property values percent of county budget revenue. lion in fiscal year and the health contributions to their health care and soaring employee health care “We’re seeing in some neighbor- 2008 and $715.3 employees for higher care (contri- plan at a rate that currently ap- costs, Oakland County is seeking hoods in a 2007 equalization re- million in fiscal contributions to their bution) bump plies only to the employees hired concessions in pay and benefits port, some communities have actu- 2009 — accounts for ’09, and after May 2003. from its work- ally gone down in their (taxable) for just a 1 per- health care plan at a the way Last year the county also began INTERVIEW force to balance values,” Van Pelt said. “And in cent increase in things are go- offering its new employees a its budget over this market we’re expecting the ing I don’t L. Brooks wages for each of rate that currently Health Savings Account plan in Patterson talks the next two revenues countywide will increase those years, de- know how we lieu of more traditional lifetime re- about Oakland years. by only 1 percent or so (per year) spite the fact that applies only to could accept tiree health benefits to save on County’s effort it,” said Steve County Exec- right through 2012.” some unions had health care costs. to recruit utive L. Brooks At the same time, Patterson Schell, OCEU been anticipating employees hired after The county anticipates a sav- emerging-sector Patterson and said, soaring costs for existing union presi- companies. 3 percent pay in- ings of $1.1 million the first year county Manage- health care plans for county em- May 2003. dent, adding Page 11. creases during and another $1.1 million in 2009 if ment and Bud- ployees would mean a 4 percent in- the same period. that the union it obtains the 1 percent wage caps. get Director crease in total compensation costs Wages for two of the unions — will reopen wage and benefit nego- “That’s unfortunate to have to Laurie Van Pelt said the next sev- starting next year. With that in the Oakland County Employees Union tiations for that year. “The 1 per- do that (to employees), but it’s the eral years mean some hard reali- mind, the county is seeking con- and the Board of Commissioners’ cent doesn’t cover our health ties as the county faces a projected cessions from its staff in pay and Committee Reporters — will be mod- bump. It doesn’t cover the in- reality we’re facing,” said Com- increase of less than 1.5 percent in health benefits to keep the budget ified automatically for 2008 be- creased gas prices for our drive to missioner Bill Bullard Jr., chair- cause contract language ties their work.” man of the county board. Bullard compensation with other Oakland County has 3,672 em- said he is not taking part in the You’ve worked hard nonunion staff. ployees, most of whom are repre- discussions on the budget but ex- Five other unions will need to sented in nine labor unions. Schell pects to weigh in when the full to get ahead concede the pay and health care said the OCEU accepted a tie-in board votes on a finalized budget costs in new contracts, county hu- with nonunion staff because Pat- at its Sept. 20 meeting. man-resources director Nancy terson’s office had given some as- Chad Halcom: (313) 446-6796, Will you live to enjoy it? Scarlet said. surances late last year that their [email protected]

• How healthy are you on the inside? • Take control of your own Stock price climbs after Lear health.

• Early detection can save your life! shareholders reject Icahn bid 53 year old Executive with no symptoms but MDCT of heart shows severe Coronary Artery Disease in white BY PHIL NUSSEL — rejected investor Carl Icahn’s S&P uses to evaluate credit ratings. AND BRENT SNAVELY $2.9 billion, $37.25-a-share buyout “While its operating perfor- Don’t delay…call now to schedule your early detection appointment. CRAIN’S DETROIT BUSINESS offer last Monday. mance has been challenged by se- Michigan’s First Full-Service Diagnostic, X-Ray & Ultrasound Screening Center Lear’s board, including Chair- vere industry pressures in North 248-594-3201 It’s back to business as usual at man and CEO Robert Rossiter, had America that caused credit protec- urged shareholders to approve the tion measures to weaken in recent Premier Imaging Center Lear Corp. (NYSE: LEA) after the supplier’s shareholders — in a deal. years, Lear has reported improved 31500 Telegraph Road, Suite #010 “We had a business plan that we results during 2007 and twice rarely seen rebuff of management Bingham Farms, MI 48025 were executing before the offer. raised its guidance for the year,” Now that the offer has been turned S&P said in its statement. down, we plan to continue to exe- “The CreditWatch resolution cute the business plan we have,” will focus on expectations for said Mel Stephens, Lear’s vice Lear’s financial profile absent the president of communications and proposed acquisition debt as well investor relations. as prospects for any shifts in busi- After the vote, the Southfield- ness or financial strategy now that ENHANCED DECISION based automotive supplier’s stock Lear will remain an independent quickly moved from $37 per share company,” S&P analyst Robert to more than $40 per share. For the Schulz said in a statement. MAKING 52-week period that ended Wednes- Standard & Poor’s said a modest FRESH THINKING day, Lear’s stock price increased upgrade that returns Lear’s corpo- 97.6 percent. On Friday, Lear’s rate credit rating to its February ACCOUNTABILITY FOR SUCCESS stock closed at $38.72. level is possible. Some analysts are cautiously op- Lear’s corporate credit rating is timistic about the company’s fu- B, five levels below investment IMPROVED PERFORMANCE ture. grade. Before Icahn’s buyout offer “Lear is not a turnaround situa- was announced in February, Lear’s tion and didn’t need a knight in corporate credit rating was B+, four Business leaders require judgment that cannot be gained from books or consultants. shining armor to rescue it,” Shelly levels below investment grade. TEC Detroit is a CEO membership organization that enables you to benefit from the wisdom and Lombard, corporate credit analyst In February, New York City- for New York-based Gimme Credit based American Real Estate Partners experience of other CEOs. TEC mentors clarify the vision so you not only set, but follow through L.L.C., wrote last week in a research L.P., an Icahn affiliate, offered to on goals. TEC resources provide critical detail just when you need it most. report. “The company has a com- buy Lear for $36 per share, or $2.3 manding market share in North billion, and to assume $2.5 billion TEC Detroit is not for every CEO. Is it right for you? America and a growing presence in in debt. Icahn later increased his Asia.” offer to $37.25 a share, but share- Call us now and find out. “Although Lear is doing well, holders rejected the deal last Mon- this is an industry that is still day. Icahn owns or controls about struggling, at least in North Amer- 20 percent of Lear’s stock. ica,” she said. The company is not looking for Standard & Poor’s Ratings Services additional buyout offers, Stephens said it may boost Lear’s credit rat- said. 586-443-5880 www.tecdetroit.com ing. The agency said it placed the Phil Nussel is a reporter for Auto- seating and electronics supplier on motive News. CreditWatch with “positive impli- Brent Snavely: (313) 446-0405; An Affiliate of Vistage™ International The World’s Leading CEO Membership Organization cations.” CreditWatch is a process [email protected] DETROIT BUSINESS MAIN 07-23-07 A 27 CDB 7/20/2007 5:14 PM Page 1

July 23, 2007 CRAIN’S DETROIT BUSINESS Page 27 State needs more women in

technical programs, study says Serving the Detroit Metropolitan area for 50 Years

BY SHERRI BEGIN According to the report, available at Commercial - Industrial - Municipal CRAIN’S DETROIT BUSINESS www.cew.umich.edu, Michigan historically has had few women seeking degrees in math- and science- The already low percentage of computer science de- based programs. Peace of mind grees earned by women at Michigan’s public univer- Female participation in physical science degree top down sities and colleges dropped by nearly a third between comes from a top down approach programs is slowly trending up but still low, with 40 2000 and 2005 to 14.5 percent. That statistic is troubling, as are similar declines in percent of bachelor’s degrees in the fields from Michi- to building management. other technical areas, given that Michigan is trying to gan public universities and colleges going to women increase its pool of technically educated employees to in 2005, up from 37.8 percent in 2000, according to the Install our custom-fabricated, PVC roof system help diversify its economy, according to a study re- U.S. Department of Education National Center for Educa- leased today by the University of Michigan Center for the tion Statistics. for an energy-efficient, maintenance-free solution, Education of Women. In engineering, that number was 22.5 percent in & the industry’s best warranty. Additionally, the state and nation will face a short- 2005, down from 24 percent in 2000, but the percentage fall of engineers by 2010, according to the Society of of degrees earned by women in computer sciences Call for a free estimate today. Manufacturing Engineers in Dearborn. dropped by nearly a third, from 22.8 percent in 2000 to The quickest way to meet demand for new high- 14.5 percent in 2005. Installation & Repair tech workers in Michigan and to address expected By comparison nationally, in 2004 women earned 26 Infra-red Moisture Surveys shortages of engineers is to reverse that trend and at- percent of computer science bachelor’s degrees, 42.1 tract more women into those fields, according to the percent of physical sciences degrees, and just 20.5 per- study. cent of engineering degrees. State government, higher education institutions Baby boomers are expected to begin retiring by and K-12 districts, among others, need to remove bar- 2010, Kaufmann said. The Washington-based Business riers and heighten interest for women pursuing de- Roundtable is predicting that science- and math-based grees in physical sciences, computer sciences, engi- neering and mathematics, in spite of the limiting careers will see national decreases of more than 50 effects of Proposal 2, said Susan Kaufmann, associate percent in the available workforce due to retirements. director at the UM Center for the Education of Part of the mission of the Engineering Society of De- Women and author of the report, “Michigan Women troit is to encourage young people to and the High-Tech Knowledge Economy.” consider technical professions, but Known as the Michigan Civil Rights Ballot Initiative, the group doesn’t specifically target Proposal 2 passed last fall banning affirmative action women or girls, said board presi- NATIONAL in public education in Michigan except for federally dent Richard Haller, COO of Wal- ROOFING CONTRACTORS 877-836-1992 funded programs. bridge Aldinger Co. in Detroit. ASSOCIATION MEMBER Among the study’s recommendations: “But I think it’s a valid concept. 9301 Southfield • Detroit, MI 48228 Money Isn't All You're Saving School boards should educate parents and stu- There’s great opportunity for www.macdermottroofing.com dents about the importance of taking eighth-grade al- women to be in technical fields, and gebra to increase chances of success with advanced I can’t speak to why there are not high school math; create math and science magnet Haller more of them in the field,” he said. schools and ensure equitable enrollment by girls; and Research shows that women who leave science and BALANCING LIFE AND WORK play up the history of women’s success in technical engineering while pursuing a degree have as good or fields. better grades as the men who stay but are attracted to HAS NEVER BEEN EASIER State government should encourage residents to other fields or turned off by a bad teacher, said Sue pursue education throughout their working lives and Rosser, dean of the Ivan Allen College at the Georgia In- provide opportunities for women and men to move stitute of Technology in Atlanta. Rosser is the author of into technical fields. Colleges and universities should factor the cost several books and research papers on attracting of caring for dependents into stipends or fellowships women to technical fields. to increase retention of female graduate students; if Changes must occur at all levels, from parents to necessary, offer options for part-time study following schoolteachers to colleges, to motivate more girls and childbirth or other urgent circumstances or as part of women to pursue technical degrees and careers, Ross- a program designed for adult learners with full-time er said. jobs; demonstrate the social utility of technical de- “Every level has to have some input into it in order grees to better appeal to women; and train faculty to make sure the pipeline stays full,” she said. members to identify and avoid gender bias. Sherri Begin: (313) 446-1694, [email protected]

Artisan center coming to 7 Mile neighborhood

BY ROBERT ANKENY the council’s community and to start in September and expected CRAIN’S DETROIT BUSINESS neighborhood development initia- to be completed by April, Hasan tive. said. Plans for a $2.2 million Artisan “This shows there is a thirst for Architect for the project is and Adult Learning Center, to be a center to keep kids busy and off unveiled Thursday, are the latest Southfield-based CDPA Architects the streets,” Hasan said. effort by the nonprofit Arab Ameri- Inc. Heading the construction team The 13,000-square-foot center can and Chaldean Council to is APCO-ARCON L.L.C. in Dearborn, will house workspace for Arab, strengthen and stabilize Detroit’s Hasan said. Meet Anne, owner of a fitness yoga studio and busy mother of two Arab-American, African-Ameri- Seven Mile Road neighborhood A $900,000 streetscape project to enjoying the perfect live-work balance at Legato. Legato, the can, Hispanic, Eastern European while addressing human service include new sidewalks, paving, premier "live-work" community, helped her combine her living and and Native American artists, he needs. decorative lighting, trees, benches, business spaces into the perfect home. Now she has less hassle, said. The first floor will feature an The new Learning Center will cement trash receptacles and no commuting, and more time for her family. Isn't it time you found be built alongside the council’s De- art gallery and an indoor-outdoor balance too? With 3 locations in Southeastern Michigan, there is a Middle Eastern-themed cafe. crosswalk pavers awaits final Legato perfect for you. troit headquarters at 111 W. Seven Michigan Department of Transporta- Mile Road, and across from the On the second floor will be a tion approval and should be under- council’s Youth Recreation & computer lab, conference room, of- Come see us today to see how easy it is to balance life and work at way in September, Hasan said. Legato. Leadership Center, which opened fices and an adult learning center. Funding will include $750,000 from in January 2005. The Michigan Strategic Fund is Start balancing your life and work at Legato. helping finance the Artisan Center MDOT and $150,000 from Wayne Registrations for summer pro- www.terralandgroup.com or grams at the center were limited to with a nontaxable bond issue County. 300 this year because of lack of backed by a letter of credit from Robert Ankeny: (313) 446-0404; call 248-624-5400 space, said Isa Hasan, director of Comerica Bank. Construction is set [email protected] Starting in the low 200’s DETROIT BUSINESS MAIN 07-23-07 A 28 CDB 7/20/2007 7:48 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS July 23, 2007

Kroger: New County: What is actual lease rate? DOWNTOWN LEASE RATES Wayne County has been paying either ■ From Page 3 $16 or $45 a square foot, depending on whether you talk to the building’s owners stores put Wayne County, in a memo written to the build- or the county. The difference in price ing’s owners, said it spends an average of $5.5 mil- A LATE PROPOSAL depends on whether the entire square lion per year to occupy the building. It reached the footage of the building or just the space $45-per-square-foot figure by dividing the $5.5 mil- Old Wayne County Building L.P., owner of Wayne County is using is counted. 600 Randolph St., issued a proposal late on pressure Here are lease rates for three other lion by the 199,770 square feet it uses in the 252,000- Friday with the hopes of resolving ongoing downtown buildings, including taxes and ■ From Page 3 square-foot building. tension with its tenant, Wayne County. In addition to rent, the county included in its cal- operating expenses. Independent grocers are in negotia- Public-relations firm Marx Layne & Co. of culations money spent on operating expenses, rang- Farmington Hills issued the proposal to tions to buy about 15 Farmer Jack ing from $943,000 to $2.2 million annually since 1988, media outlets at 4 p.m., before the stores from Great Atlantic & Pacific Tea and capital expenditures, such as repairs on the document was sent to its intended recipient, Co. Inc. Montvale, N.J.-based A&P put tower on the building, totaling $4.8 million in that Deputy County Executive Azzam Elder. 66 Farmer Jack stores up for sale ear- same period. The building’s owners offered a deal in lier this year because of “unsatisfac- Layne said his $16 figure is based on the entire which the county would pay $1 per square tory operating trends.” square footage of the building and includes operat- foot per year, assume responsibility for the Jane Shallal, president of the Farm- ing costs. He declined to elaborate further. $7.75 million mortgage and be responsible ington Hills-based Associated Food and Real estate brokers typically slice figures in dif- for maintaining the building. Petroleum Dealers of Michigan, expects ferent ways based on who asks for them. Elder responded to the owners’ proposal by the acquisitions will bolster the visi- A price per square foot is based on the number of e-mail. bility and reputation of independent square feet in a lease, said Ray Husband, senior vice “We have not received any new offer from grocers in the metro Detroit. president in the Southfield office of Illinois-based the owners. As of Monday, they wanted $52 150 W. Jefferson Ave.: $16.50 “Our independents, when they go Grubb & Ellis. million to purchase the building, or $5 million a year to lease it. Judging by the into the larger supermarkets, they If a company leases 500,000 square feet but only renovate them, remodel and upgrade letter (from the partnership) Crain’s has One Detroit uses 300,000 square feet, a tenant is effectively pay- forwarded to the county for our review, their them,” Shallal said. ing more per square foot, but the lease rate is calcu- apparent new offer would save taxpayers Center: Dalto predicted some independent lated according to the total number of square feet millions of dollars. However, many issues $16 to $30 grocers could have trouble making contained in the lease, not just what the tenant is remain outstanding, including the $31 the transition from operating smaller occupying. million balance the owners owe to the stores into running larger Farmer “In the next lease negotiations, I’d advise them to county for the purchase of the building in Jack locations. It’s difficult to “make lease the amount of space they’re going to use, not 1986 and over billing discrepancies that can every square foot productive” with the whole building, or to sublease the surplus,” only be resolved by full disclosure of their books and records,” Elder said. “Hopefully larger stores, he said. Husband said. “I’m concerned about their prof- we can resolve these issues for our County officials and building owners left a wide taxpayers.” itability,” Dalto said. spread on the cost of renting the building. Sheena Harrison: (313) 446-0325, Wayne County Executive Robert Ficano For between $16 and $45 per square foot, a Detroit hedged his bets on remaining at 600 [email protected] office tenant could find space in just about every Randolph by announcing a plan on major office building in the city. Wednesday to buy the Guardian Building The average asking rental rate, excluding taxes from Detroit-based Sterling Group for $14.5 and operational costs, which vary from building to million, plus the four-story Detroit Savings building, is $23.08 per square foot for Class A space, and Loan Building at 511 Woodward for $2 $17.61 for Class B and $15.21 for Class C, according million and the 1,450-space First Street Altarum: to the Maryland-based CoStar Group. Parking Garage for $17 million. However $45 is beyond the top of the market, said The county’s current lease at 600 Randolph Jeffrey Bell, first vice president in the Southfield of- St. expires Oct. 31, and Ficano said he needs to be ready to move some 250 Leads effort fice of California-based CB Richard Ellis. administrative workers if a deal can’t be “With one exception, you can get anything you reached. ■ From Page 1 want in the market for $30 per square foot, all-in,” Even if the county ultimately chooses to he said. remain at 600 Randolph, vacant space in tember 2008, said President and CEO The office component of the 325 North Old Wood- the Guardian Building could be leased to Linc Smith. ward Ave. development in Birmingham has set a other tenants, generating revenue for space By 2010, patient information would high end for the office market and would likely cost not being used. be available to local health care roughly $40 per square foot including all costs of The purchases would need Wayne County One Kennedy Square: $17.50 to $25 providers granted access by the pa- taxes and operations, he said. Commission approval. tient, he said. Daniel Duggan: (313) 446-0144, ddugan@ — Daniel Duggan Source: CoStar Group, Crain’s research The grant to Altarum caps more crain.com than a year of conversations about the need for such an exchange among the nonprofit, the state and others in- cluding Blue Cross Blue Shield of Michi- gan, Henry Ford Health System, Oakwood Health System, Trinity Health, and St. BRIEFLY John Health System, the Wayne and CIS agreed to accept applications approved the budget for fiscal Both are new positions within Oakland county medical societies, the Feds change visa deadlines through Aug. 17, Friend said. year 2008. The budget includes an Borders Group. Greater Detroit Area Health Council and Thousands of skilled workers Meanwhile, on July 30, fees for operating margin goal of 3 per- — Sheena Harrison the Detroit 3 automakers. from overseas and their employ- filing such petitions jump from cent, or $52 million, on revenue “Our mission statement is to pro- ers, who were dumfounded by re- $395 to $1,010, while fees for ini- of $1.7 billion. vide high-quality care to the patients cent federal government visa tial immigrant petitions (Form I- — Andrew Dietderich and community we serve. There’s a Wilson closes PR firm, takes job deadline switches, have finally 140) go from $195 to $475. real belief that by participating in won out, Carol Friend, immigra- — Robert Ankeny Shaun Wilson has closed his these types of exchanges, that we can tion lawyer at Honigman Miller Borders hires 2 vice presidents public-relations firm to become improve the quality of care we are Schwartz and Cohn L.L.P., said. Ann Arbor-based Borders vice president/marketing man- providing to the patients,” said Paula In June, the U.S. Department of UM Hospitals makes profit Group Inc. has named two new ager for Southeast Michigan for Smith, chief information officer at State announced July 2 as the The University of Michigan Hospi- vice presidents. Troy-based National City, Michigan. Oakwood. deadline to file I-485 adjustment tals and Health Centers finished Teresa Wright has been named Wilson had been managing Development of the exchange of status petitions for workers, a fiscal year 2007 in the black, vice president of merchandising partner of De- comes several years after President last step before securing the marking the 11th consecutive for the company’s Paperchase troit-based Wil- Bush called for electronic medical “green card” that means perma- year the nonprofit health system U.S. Division. Paperchase is a son PR, whose records to provide better care and nent resident alien status. has done so. stationery retailer acquired by clients includ- lower health care costs, she said, “Thousands probably arrived The system reported an operat- Borders in 2004. ed The Bing adding that federal legislation is on July 2, the first business day ing margin of $61.7 million on Wright, who starts at Borders Group, The Bar- pending to incentivize the systems. in the month, and then the U.S. revenue of $1.57 billion. That on Monday, was previously oper- tech Group, Mu- The exchanges provide the ability Homeland Security Department’s compares with an operating mar- ating vice president of planning sic Hall Center to streamline processes and eliminate Citizenship and Immigration gin of $79.4 million on revenue of for women’s ready-to-wear cloth- for the Perform- redundant tests, she said. Services said they weren’t ac- about $1.44 billion for fiscal 2006. ing at Macy’s Inc. ing Arts and the All of the major stakeholders in the cepting any more petitions,” The health system’s fiscal year Myles Romero has been named Wilson region “have a belief that with the ex- Friend said. ends June 30. vice president of strategic mar- Detroit branch changes, ultimately we’ll be able to Outcries by the American Immi- The health system reported the keting and entertainment al- of the NAACP. Previously he was see a reduction in health care costs,” gration Lawyers Association and financial results to the University of liances, starting July 31. He pre- with Troy-based John Bailey & As- Paula Smith said. U.S. Rep. Zoe Lofgren, D-San Michigan Board of Regents Friday. viously worked as Ford Motor sociates. He was named to Crain’s Sherri Begin: (313) 446-1694, Jose, drew White House attention In addition to receiving the re- Co.’s director of Ford global 40 under 40 in 2002. [email protected] to the problem, and on July 17, port for fiscal 2007, the regents branded entertainment. — Tom Henderson DETROIT BUSINESS MAIN 07-23-07 A 29 CDB 7/20/2007 7:56 PM Page 1

July 23, 2007 CRAIN’S DETROIT BUSINESS Page 29

Suppliers: Attractive to investors www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Christopher Crain, (313) the end of the bankruptcies. focusing on cost-cutting lately.” 446-1645 or [email protected] Everybody agrees that the num- SUPPLIER STOCKS A recent study by the South- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- ber of domestic suppliers is going field-based consulting firm Alix- 0460 or [email protected] Here are the stock market MANAGING EDITOR Andy Chapelle, (313) 446- to get smaller, not bigger,” said Partners L.L.C. also provides a word 0402 or [email protected] performances of selected Scott Eisenberg, managing part- of caution. The survey of 51 au- WEB GENERAL MANAGER Michael Lee, (313) Southeast Michigan auto 446-0416 or [email protected] ner at Birmingham-based Amherst suppliers for the 52 weeks that tomakers, 25 heavy-vehicle pro- ASSISTANT MANAGING EDITOR/PRODUCTION Mark Thompson-Kolar, (313) 446-0357 or Partners, an investment-banking ended July 18, compared with ducers and 297 auto suppliers con- [email protected] and turnaround-management the Standard & Poor’s 500 cluded that 27 percent of North ASSISTANT MANAGING EDITOR/FOCUS Jennette AARON HARRIS firm. index. American suppliers face possible Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Shawn Selby, (313) Eisenberg cautioned against American Axle +80.1% insolvency within the next two 446-1654 or [email protected] putting too much stock in suppli- years. OTHER SALES ANNOUNCED GRAPHICS EDITOR Nancy Clark, (313) 446-1608 ArvinMeritor +58.5% or [email protected] ers’ second-quarter earnings. He Who will survive? LAST WEEK COPY EDITOR Vic Doucette, (313) 446-0410 suggested that the strong perfor- BorgWarner +58.5% Suppliers with strong balance or [email protected] The Fairlane Club DATA EDITOR Anne Marks, (313) 446-0418 or mances could be the result of an Johnson Controls Inc. +60.3% sheets, not just the lowest costs, [email protected] industry that was rolling up its says John Hoffecker, an AlixPart- Ⅲ Ford Motor Land Development WEB DESIGNER/PRODUCER Ai-Ting Huang, Lear Corp. +97.6% Corp. plans to sell The Fairlane (313) 446-0403, [email protected] sleeves for a summer of UAW con- ners managing director. EDITORIAL SUPPORT Anita Duncan, (313) tract talks and the now passing TRW Automotive +51.0% Says Hoffecker in a statement: Club in Dearborn to local investors 446-0329; Joanne Scharich, (313) 446-0419 threat of a strike at Delphi. “The auto industry can still be a who plan a complete overhaul of NEWSROOM (313) 446-0329, FAX (313) 446- Visteon Corp. -15.7% the 32-year-old complex. Terms 1687 TIP LINE (313) 446-6766 “My guess is people were slow- growth industry, no matter what were not disclosed. REPORTERS ly building some inventory into S&P 500 +18.9% a company’s geographical loca- Brent Snavely, senior reporter: Covers auto their systems, so you might have tion happens to be or even its Ford Land, which bought the facility suppliers, steel and restaurants. (313) 446-0405 Source: Yahoo! Finance in 1984, will sell the 114,500- or [email protected]. had a little bit higher unit vol- product segment.” Robert Ankeny: Covers the city of Detroit, Wayne square-foot social and athletic club umes at some of the suppliers,” have been some better plant uti- April Wortham is a reporter for County government, and law. (313) 446-0404 or to Fairlane Club Holdings L.L.C. in a [email protected]. Eisenberg said. “There might lization. And everybody has been Automotive News. Sherri Begin: Covers nonprofits and education. transaction expected to close in (313) 446-1694 or [email protected] the fourth quarter. The deal is by a Andrew Dietderich: Covers health care, transportation, international business and private group of investors led by biotech. (313) 446-0315 or Nasser Beydoun, chairman of the [email protected]. Dearborn-based Daniel Duggan: Covers real estate and hospitality. American Arab (313) 446-0414 or [email protected] Industrial: Chamber of Commerce. Chad Halcom: Covers services, environment and Outsiders help market Oakland and Macomb counties. (313) 446-6796 or [email protected]. ■ From Page 1 Liberty Techne Center Sheena Harrison: Covers small business, retail and nonautomotive manufacturing. (313) 446- Ⅲ A 193,000-square-foot industrial 0325 or [email protected]. ture based on the leasing rates building at the Liberty Techne Tom Henderson: Covers banking, finance and Center was sold July 17 to MREIC technology. (313) 446-0337 or and current property values. SIGNIFICANT SECOND-QUARTER INDUSTRIAL SALES [email protected]. “People are looking at cap rates Michigan L.L.C., managed by Bill Shea: Covers media, advertising and ■ ■ Missouri-based marketing, entertainment, the business of sports, of 6 or 7 percent in other markets, 30540 Beck Road, Novi 30150 Wixom, Wixom Monmouth Real and Livingston and Washtenaw counties. (313) but here they’re finding some at 10 Sale price: $6.2 million ($91.67 Sale price: $3.2 million ($48.05 Estate Investment Corp. 446-1626 or [email protected] or even 11 per- per square foot). per square foot). The property, at 1601 Brown Road LANSING BUREAU Amy Lane: Covers business issues at the Capitol, cent cap rates,” Date: July 4. Date: May 16. in Orion Township, sold for $17 telecommunications and utilities. (517) 371- said Lauren Size: 67,636 square feet. Size: 65,552 square feet. million. It was sold by Jones Orion 5355, FAX (517) 371-2492, [email protected]. or L.L.C., a subsidiary of Missouri- 115 W. Allegan, Suite 220, Lansing 48933. Scarpace, a se- Buyer: Beck Road L.L.C. Buyer: Tyco Titanium. based Jones Development Co. ADVERTISING nior associate Seller: DAP investments. Seller: Fifty Eight L.L.C., a group of ADVERTISING DIRECTOR Marla Downs, (313) specializing in Flint-based investors. 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) industrial bro- ■ 1260-1270 James Hart 393-0997 kerage services Parkway, Ypsilanti ■ 12141 Charlevoix St., Detroit NEW BUSINESS DEVELOPMENT MANAGER Cathy with the South- Riverfront: Ross, (313) 446-0307, [email protected] Sale price: $3.3 million ($47.05 Sale price: $7.5 million ($3.75 per ADVERTISING SALES Jeff Anderson, Terri field office of El per square foot). square foot). Engstrom, Matthew J. Langan, Tamara Rokowski, Segundo, Calif.- Dale Smolinski Scarpace Date: May 30. Date: April 25. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) based CB (323) 370-2477 Size: 70,138 square feet. Size: 2 million square feet. Towers sold CLASSIFIED MANAGER Melissa McKay, (313) Richard Ellis. “So local investors are Buyer: D&G Building Co. Buyer: Crown Enterprises Inc. 446-1692 seeing a chance to get a higher ■ From Page 1 CLASSIFIED ACCOUNT EXECUTIVE Christina price for their property.” Seller: Varmal Properties L.L.C. Seller: ThyssenKrupp Budd Co. Jaranowski, (313) 446-1655 MARKETING DIRECTOR Michelle Minor At the end of the second quar- Source: CoStar Group Hendricks & Partners who also EVENTS MANAGER Nicole Wiedling ter, Bethesda, Md.-based CoStar worked on the deal, said there were MARKETING ASSISTANT Jennifer Dunn Group reports an average cap rate MARKETING ARTIST Sylvia Kolaski 10 proposals from buyers during a SALES SUPPORT Suzanne Janik, Andrea for the market at 8.67 percent, REAL ESTATE EXPO IS THIS WEEKEND IN DEARBORN five-week period. Beckham, YahNica Crawford compared with a national aver- CIRCULATION Candice Yopp, Manager. “In metro Detroit, you don’t typ- age of 7.48 percent. That gap, pro- Crain’s Detroit Business will sponsor the “Greater Detroit Real Estate PRODUCTION MANAGER Wendy Kobylarz ically see that level of interest,” he PRODUCTION SUPERVISOR Larry Williams, fessionals say, has drawn greater Expo” in Dearborn this Saturday and Sunday as a forum for Realtors and industry professionals to meet with home owners and prospective buyers. said. “But this is a very unique (313) 446-0301 interest from companies not typi- SUBSCRIPTIONS (313) 446-0450, cally involved in the Detroit-area “The goal is to marry those people who are considering buying or selling property.” (888) 909-9111 their homes with those industry experts who can answer their questions TO FIND A DATE A STORY WAS PUBLISHED: market. The 100 Tower was built in 1992 (313) 446-0367 or e-mail the Crain Information in a given field — whether a home auction is right for you, financing and the 200 Tower in 1983. A third Center at [email protected]. “We buy and sell a lot of real es- questions, or insurance,” said Darla Bowen, marketing and sponsorship tower was not included in the sale CRAIN’S DETROIT BUSINESS IS PUBLISHED BY tate in Michigan, but lately we’ve director for Fairlane Town Center, which is hosting the event. CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain been doing more selling than buy- Highlighting the expo guest appearances will be Taniya Nayak, a designer and is being converted to condos. ing,” said Larry Emmons, regional PRESIDENT Rance Crain on the popular TV program, “Designed to Sell.” The two towers have 555 units SECRETARY Merrilee Crain director in the Southfield office of Nayak, a graduate of Boston Architectural College and founder and on 24 acres of riverfront property. TREASURER Mary Kay Crain Chicago-based REIT First Industrial. Executive Vice President/Operations president of design firm Design Digs, will appear both days of the expo. The complex includes a health cen- William A. Morrow The REIT, which has owned “Designed to Sell” airs Monday-Sunday at 8 p.m. on HGTV. ter, the Signature Grille and Bar, Group Vice President/Technology, property in Michigan since 1994, Manufacturing, Circulation The two-day event will feature guest booths and tables with real estate the Signature Market and a mari- Robert C. Adams sold 400,000 square feet of space in agents, mortgage brokers, auctioneers, insurance specialists and other na. Vice President/Production & Manufacturing 2007 — all to companies new to Dave Kamis industry professionals in the real estate business, Bowen said. Taylor and Rohr would not com- the market, he said. Corporate Director/Circulation The expo runs 10 a.m.-6 p.m. Saturday and 12-5 p.m. Sunday in the ment on the sale price, citing a Patrick Sheposh A property at 27651 Hilde- center court of Fairlane Town Center in Dearborn. G.D. Crain Jr. Founder (1885-1973) confidentiality agreement signed brandt Road in Romulus is an ex- — Chad Halcom Mrs. G.D. Crain Jr. Chairman (1911-1996) with the buyer and seller. EDITORIAL & BUSINESS OFFICES: ample. First Industrial was the 1155 Gratiot Ave., Detroit MI 48207-2732; (313) developer and owner of the Real Estate Fund L.L.C. bought 1.4 He also expects leasing and sales Jason Gardner, a partner with 446-6000 Bloomfield Hills-based Income Prop- Cable address: TWX 248-221-5122 AUTNEW DET 302,000-square-foot property and million square feet of property to pick up later in the year. Some Subscriptions $59 one year, $98 two years. Out sold it to Houston-based Pinchal & from Liberty, marking Welsch’s companies have yet to execute erty Organization who specializes in of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state Co. in April for $17.6 million. first entry into Michigan. (Crain’s, lease expansions or sales because apartment sales, estimates the deal rate for surface mail. June 4) to be at or near $50 million. Reprints: For inquiries call the reprints department Brokers also point to the ongo- they are waiting for signs the mar- at: (800) 494-9051, Ext. 144 , or at ing sale of properties owned by Scarpace said companies sell- ket has bottomed out, for example. “Right now national market [email protected] Philadelphia-based Liberty Proper- ing properties in Michigan have funds see Detroit as a dollar store,” CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is “Once the labor negotiations published weekly by Crain Communications Inc. at ty Trust, which has been in Michi- been buying property in growth are completed and the dust has he said. “They see the prices and 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and gan since 1998. Company officials markets such as Louisville, the settled on the acquisition of can’t believe it. In this case, if you’re additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, previously announced plans to Carolinas and Florida. Chrysler, I think you’re going to talking $90,000 a unit, on the river, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in sell all of the roughly 4 million Dan Labes, a senior vice presi- see more momentum in the mar- in the (Central Business District), U.S.A. square feet in the area. dent with Grubb & Ellis, expects ket,” he said. that’s a great deal.” Entire contents copyright 2007 by Crain Communications Inc. All rights reserved. In May, Bloomington, Minn.- the second half of the year to show Daniel Duggan: (313) 446-0414, Daniel Duggan: (313) 446-0414, Reproduction or use of editorial content in any based WelschCo, through Welsch US continued out-of-town interest. [email protected] [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 07-23-07 A 30 CDB 7/20/2007 7:43 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS July 23, 2007 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JULY 14-20

in the market to acquire Associated Press reported. other outsourced business- More than $1B TRANSACTIONS support services after re- Potter people Casinos’ revenue up Ⅲ Bristol, Tenn.-based cently buying Monroe- based BenefitSource Inc. The in retail set for MotorCity Casino L.L.C. King Pharmaceuticals Inc. company has kept on for- brought in $241 million for plans to sell its Rochester mer BenefitSource presi- the first six months of 2007, manufacturing plant, 12 in state pile up dent Steven Friend as a vice 5-county region up from $230 million in the products made there and president in charge of Ed- same period last year, ac- related contract business to ore than 40 retail JHP Pharmaceuticals L.L.C. of cor “growth initiatives,” developments cording to figures released Michi- Australia for $90 million. with duties that include M worth more than $1 last Monday by the gan Gaming Control Board The deal is expected to seeking other opportunities billion are being developed . book orders like the recent acquisition MGM Grand Detroit Casino close in the third quarter. in the five-county metro De- of Friend’s own company. troit area, according to a re- L.L.C. brought in $245.7 mil- ichigan loves Harry New York City-based Cer- BenefitSource is a third- lion, up from $242 million. Potter berus Capital Management lease issued Thursday by OTHER NEWS . party administrator of CO- Greektown Casino brought in M Six of the state’s L.P. has hired a Texas py- the International Council of Ⅲ BRA, flexible-spending ac- $176.8 million, up from $174 Kroger Co. planned to communities were ranked rotechnics company that Shopping Centers. counts, disability and other million. open six former Farmer Jack in the top 100 pulled per- Among the largest are the benefits for its clients’ em- stores last Friday, the De- in per capita mits for a 800,000-square-foot Adams ployees. troit Free Press reported: in orders for daytime Marketplace at M-59 and NWA applies for two “We want to handle all Dearborn, Dearborn Harry Potter fireworks Adams Road in Rochester Heights, Hazel Park, West- the mundane programs of a Hills, scheduled to begin nonstop China routes and the Death- display to land and two in Troy. human resources depart- opening in the fall; the ly Hallows mark the Northwest Airlines Corp., Also, Detroit City Coun- ment so that HR can focus 640,000-square-foot The Mall from online transition based in Eagan, Minn., has cilwoman Monica Conyers on what it’s intended to do at Partridge Creek in Clinton book retailer to new own- applied to the U.S. Depart- met with Kroger executives — strategic management of Township on M-59 between Amazon.com. ership and ment of Transportation for Friday to discuss whether human capital,” Corso said. Romeo Plank and Garfield The book was indepen- rights to nonstop flights the grocer would consider Edcor completed the ac- roads, with some stores released at dence from from Detroit to Shanghai opening a Detroit store. quisition of BenefitSource scheduled to open Oct. 18; midnight Fri- Daimler- and Beijing, the airline said Conyers asked for the on June 1 by buying and the $90 million, 335,000- day. Chryler AG. last Monday. meeting after Kroger Friend’s stock in his own square-foot The Shoppes at Northville “It’s an It also said that it re- bought 20 Farmer Jack company, adding on his 40 Gateway Park, at Eight Mile came in at No. event ceived more than 100,000 stores last month but did employees for a total of 150. Road and Woodward Av- 31, followed they’re letters of support in the not buy two Detroit stores. Terms of the sale were not enue in Detroit, scheduled to by Plymouth preparing first three days after the Ⅲ Nordstrom Inc. plans to disclosed. Edcor and BSI open in fall 2009. (43), Grand (to) be like company announced its ap- hire 300 for its newest store Blanc (46), a kind of In- will retain separate brand plication, which were filed names and offices. scheduled to open Sept. 28 Brighton (55), Howell (69) dependence Day, from what Karmanos to build $47M with the U.S. Department of at Twelve Oaks Mall in Novi. and Saline (96). we gather,” City Manager Transportation on Thursday. Ⅲ McLaren Health Care Amazon.com, which said Michael Culpepper said. BITS AND PIECES hospital at DMC campus Corp. and Clarkston Medical it pre-sold more than 1.3 “And they want fireworks.” The Barbara Ann Karmanos Group are scheduled to Ⅲ Cars aren’t the only Delphi gets $2.55B deal million copies of the sev- The event is tentatively Cancer Institute will con- break ground Wednesday connection between Detroit enth book in the Potter set for the “early after- struct a $47 million building with investors group on McLaren Health Care Vil- and Japan. canon, used the most recent noon” Aug. 1 on the with six operating rooms on lage in Clarkston. A Japanese judge will be Delphi Corp. (OTC: U.S. Census data and in- grounds of Chrysler Group’s the campus it shares with Cambridge, Mass.-based in residence for the fall and DPHIQ.PK) said Wednes- cluded all U.S. towns and corporate offices, but city The Detroit Medical Center, the Mascoma Corp. and Gov. Jen- cities with a population at winter terms 2007-2008 at day that it has reached a officials said the date and Detroit Free Press reported. $2.55 billion financing nifer Granholm announced least 5,000 to assemble the time is still subject to the Wayne State University The project comes in the plans Thursday for a more list. Law School and Wayne County agreement with a group of change. wake of a court ruling that investors led by Chatham, than $100 million plant that Michigan as a whole Circuit Court to research and The $7.4 billion Cerberus the institute couldn’t move N.J.-based Appaloosa Man- will produce ethanol from ranked 29th out of the 50 study the American judicial acquisition for 80.1 percent to Detroit Riverview Hospital. agement L.P. that is de- wood at a site to be selected states and Washington. system. of Chrysler Group is expect- Detroit-based Turner Con- signed to bring the compa- in northern Michigan. Mas- The Supreme Court of ed to close this week. struction Co. is to begin the ny out of bankruptcy coma CEO Bruce Jamerson is Japan is to select one judge Cerberus starting out project by Jan. 1. protection. a Troy native and University through a competitive The other investors are of Michigan alum. with a bang Potential in paperwork process. Ⅲ Siemens VDO Automotive Ⅲ EMU fires president Harbinger Capital Partners Maybe no one’s breaking A Pontiac-based busi- Troy based staffing ser- Master Fund I Ltd.; Merrill Corp., whose North Ameri- out tricornered hats or a ness-support service admin- vices company Kelly Services The Eastern Michigan Uni- Lynch, Pierce, Fenner & Smith can headquarters is in buckskin drum, but an au- istrator sees a growth strat- Inc. ranks No. 8 on the first versity Board of Regents has Inc.; UBS Securities L.L.C.; Auburn Hills, is being pur- tomaker immersed in egy in handling all that Top 10 Military Spouse- fired its president and two Goldman Sachs & Co.; and Par- sued by Livonia-based TRW American culture and sepa- paperwork your own com- Friendly Employers list other university officials dus Capital Management L.P. Automotive Holdings Corp. rating from its Old World pany HR director probably published in the July-Au- after the cover-up of a stu- In other news, the Interna- (NYSE: TRW) and its near- holders at least rates a few loathes. gust 2007 issue of Military dent murder in December. tional Union of Electronic, ly 50 percent owner, Black- fireworks. Edcor Data Services Corp. Spouse Magazine — the In a release, EMU said Electrical, Salaried, Machine stone Group, as well as Auburn Hills city offi- president and CEO Steven only Michigan-based com- the regents voted unani- and Furniture Workers-Com- Hanover-based Continental cials said last week that Corso hinted his company is pany to make the list. mously Sunday to fire uni- munications Workers of Amer- AG, Automotive News Eu- versity President John Fal- ica, which represents about rope reported. The bidding lon III and on Monday “to 2,000 Delphi Corp. workers at process was set to expire at accept the separations” of six plants, said Friday it the end of the business day Jim Vick, vice president of would terminate its local Friday in Munich, Ger- student affairs, and Cindy and national contracts with many, where Siemens We fixed that pesky sign-up bug Hall, director of EMU’s De- the supplier, allowing it to VDO’s parent company, partment of Public Safety, begin a strike Oct. 13. Siemens AG, is based. Technology sure can surprise you — to take a look at the e-mails if you for their part in the contro- and not always pleasantly. weren’t sure what you were getting. versy. ON THE MOVE OBITUARIES Last week, we at Crain’s became Our daily e-mail is the best summary The board named Don aware of and fixed a bug in the sign- of major business happenings in Loppnow, provost and vice Ⅲ Former U.S. Secretary Ⅲ Paul Brancheau, former ups for our daily and weekly news town, and it’s a sure way to stay president for academic af- of Energy Hazel O’Leary is superintendent of manufac- alerts. What was the bug, you ask? plugged in. fairs, to head up an execu- joining the board of direc- turing for the Cadillac Pretty simple: People couldn’t sign And if you’ve never signed up for any tive council that will lead tors of Novi-based ITC Hold- plant on Clark Street in De- up. The automated process of our e-mail alerts, it’s a good time EMU until a new president ings Corp. troit, died after a long ill- involving outside vendors that was to do so. Just click on “Register for is named and report direct- Ⅲ Community Central Bank ness June 15. He was 84. supposed to add new registrants to e-mail alerts” at ly to the board of regents, Corp. announced Wednes- Ⅲ Irvin Yackness, executive the mailing list wasn’t adding them. www.crainsdetroit.com. Sign up and said Ward Mullens, associate day that President Ronald vice president and general check the boxes for any e-mail that We fixed it, and we added the WEB WORLD director for university com- Reed has left to pursue oth- counsel for the Farmington names of people who had registered interests you. munications. er opportunities. David Wid- Hills-based Building Industry Michael Lee to receive the e-mail but hadn’t In case you missed it: Our The three terminated em- lak, president and CEO of Association of Southeastern been added to the list. “Woodward at 200” package from last week’s ployees will receive a com- the holding company and Michigan, died of a pneumo- So if you’re getting our daily or weekly e-mails issue is still available on our Web site: bined $550,000 from a settle- CEO of the bank, will as- nia-related illness July 15. for the first time, that’s why. I encourage you www.crainsdetroit.com/woodward. ment with the school, The sume Reed’s position. He was 91. DBpageAD.qxd 7/17/2007 2:52 PM Page 1

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