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DETROIT BUSINESS MAIN 06-23-08 A 1 CDB 6/20/2008 7:00 PM Page 1

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www.crainsdetroit.com Vol. 24, No. 25 JUNE 23 – 29, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Eye surgery centers Mass transit funds proposed declare bankruptcy Five companies headed BY AMY LANE would allow which future increases in property by ophthalmologist and Bill expands CAPITOL CORRESPONDENT Michigan’s tax taxes could be used to finance tran- eye surgeon Dr. Mazin Yaldo increment fi- sit operations and redevelopment. LANSING — A bill starting to nancing law to be have filed for Chapter 11 In , for example, the bankruptcy protection. move through the Capitol could used to establish use of state’s property-tax revenue could be Associated Eye Institute of provide a piece of the puzzle need- “transit revital- Detroit, Associated Eye Spe- ed to push forward new mass tran- ization invest- used to repay bonds issued to help cialists of Farmington Hills, tax increment sit in Southeast Michigan and oth- ment zones.” finance a light-rail line along Michigan Glaucoma Institute er parts of the state. The zones Woodward Avenue, provide oper- P.C. in Dearborn Heights, The measure, sponsored by would be desig- ating funds, or support the capital Donigan Associated Surgical Center financing law longtime transit advocate Rep. nated areas investment needed for stations or P.C. in Dearborn Heights Marie Donigan, D-Royal Oak, stretching along transit routes in See Transit, Page 20 and Luna Cosmetic Centers P.C. in Troy filed for bank- ruptcy in the U.S. District Court for the Eastern District of Michigan. While Luna filed in May, the other entities filed last Mortgage fraud week. An assumed name for the Michigan Glaucoma In- stitute is the more heavily bust shows advertised Yaldo Eye Center, featured in ads including broadcasting personality Eli Zaret. improved rules, The filings come on the heels of Comerica Bank’s lawsuit against Luna Health Management, the enforcement umbrella organization, for nonpayment of loans of BY ROBERT ANKENY about $10 million. CRAIN’S DETROIT BUSINESS The individual filings were made to protect each Two of the cases that company from creditors at- are part of a major federal bust of tempting to collect on the mortgage fraud schemes in Michigan overall debt of the parent accounted for more than half — $25.4 company, according to at- million — of the $50 million in losses torneys. It is unclear how NATHAN SKID/CRAIN’S DETROIT BUSINESS linked to the cases. much Luna owes its 50-plus Bob Sarazin, Pentastar vice president, says aviation is a cost of conducting business. U.S. Attorney Stephen Murphy re- creditors, but it is estimat- ported Thursday that his office had ed that the individual enti- charged 28 people in 15 separate crim- ties could owe between $1 inal cases since March with mortgage million and $10 million fraud that led to the losses, mostly to each. financial institutions. Luna Health Manage- Fuel costs ground fliers Title company leaders and other fi- ment owes Huntington nancial professionals say there have Bank, one of the creditors been enough changes made by the found in the latest petition, government and individual firms that an estimated $1.8 million, Small businesses feel pinch of price spike the worst of Michigan’s financial loss- es from fraud may be over. according to its lawyer. BY BILL SHEA used again,” he said. Michigan has been one of the hard- Neither Yaldo nor his at- CRAIN’S DETROIT BUSINESS Local airports and aviation-re- torney could be reached for lated businesses at airports, $6.22 est-hit states by fraud, but better fraud-detection and prevention proce- comment. After more than 30 years, Vern known as fixed-base operators, are Cost per gallon of Jet-A — Bernadine Williams Kors is grounded. dures — and more attention from law reporting a downturn in fuel sales fuel Friday at Pentastar The owner of Kors Engineering Co. and flights as individuals and enforcement — have been making a Refinery begins upgrade Inc. in Waterford Township, Kors small companies cut back on fly- Aviation L.L.C. dent in a range of fraud schemes that has piloted his single-engine have plagued the Detroit region and Construction is under ing. Beechcraft Bonanza prop plane on Corporate aviation by large country for several years. way in southwest Detroit business trips since 1975 until sky- $7.32 In one of the new cases, mortgage on Marathon Petroleum Co. companies has remained relative- rocketing aviation fuel prices this ly level despite fuel prices, air- Cost per gallon of Jet-A broker Dennis Tamburo, 39, of Wash- L.L.C.’s upgrade project in year made it more cost-effective to ington Township, owner of Home Con- southwest Detroit after ports say, because flying is now fuel Friday at Metro Flight drive or use commercial flights. generally considered part of the nection Mortgage; and real estate agent Marathon obtained an air- Services at Detroit “We’re just letting (the plane) price of doing business, especially Mario Lalios, 30, of Shelby Township, See This Just In, Page 2 sit. It hasn’t been used in over six Metropolitan Airport months and probably will never be See Fuel, Page 21 See Fraud, Page 18

Business leaders seek CRAIN’S LIST to snag small, midsize Largest office furniture

NEWSPAPER events, Page 11 dealers, Page 17 DETROIT BUSINESS MAIN 06-23-08 A 2 CDB 6/20/2008 7:00 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 23, 2008

ance with air-quality standards, advertising. of chronic heart failure. The 27-month contract is for THIS JUST IN collaborating on the city-county The News’ business and adver- Forty patients will be studied development of lithium ion bat- emergency notification system tising operations are handled by at five sites in the U.S. teries. ■ From Page 1 and retrofitting 150 school buses the Detroit Media Partnership, The company also received no- — Crain News Service for Detroit Public Schools with which is 95 percent controlled by tice that it has been given a 180- quality permit to expand pro- diesel emission controls as an McLean, Va.-based Gannett Co. day extension from Nasdaq to County environment director duction capacity. air quality improvement mea- Inc., owner of the Detroit Free avoid delisting. On Dec. 20, the Officials at the Michigan De- sure. Press. company had been warned that to speak at S. Korea conference partment of Environmental Quali- Shaffner and Marathon com- Susie Ellwood, the partner- it faced delisting by June 17 if it Wayne County Environment ty formally signed the air qual- munications manager Chris Fox ship’s executive vice president did not get its share price above Director Kurt Heise is scheduled to ity permit at 8 a.m. Friday for said the approximately 90 con- and general manager, said no $1 for 10 consecutive days. speak at an international confer- the Detroit Heavy Oil Upgrade struction workers on the site buyouts or layoffs have been pre- A subsequent effort at a re- ence on advanced water quality Project, a $1.9 billion expan- could reach peak levels of 800- sented to staffers, and any plans verse stock split failed and the technology in South Korea on sion for the refinery. By 10 1,200 people by fall 2009, and the for a reduction would not be stock has remained well below Wednesday and Thursday. The a.m., a crew of construction company still expects to com- made public. $1, but Nasdaq granted the com- trip builds on Wayne County Ex- workers was already working, plete all improvements to the fa- In October, the partnership pany an extension to Dec. 15. ecutive Robert Ficano’s promotion said refinery Division Manag- cility by fourth quarter 2010. trimmed its overall workforce, — Tom Henderson of Michigan businesses in Asia. er George Shaffner. The expansion will eventually including newsrooms, by 5 per- South Korean officials signed The expansion will increase add 135 on-site Marathon and cent, or about 110 employees. Compact Power lands $12.9M a wide-ranging environmental the size of the refinery facility contractor company jobs to the Ellwood did confirm that two agreement with Wayne County by about 25 percent. Parent current 480 employees. jobs were eliminated when the battery R&D contract in 2007. The visit, June 22-28, is company Marathon Oil Corp. — Chad Halcom partnership chose to cease publi- United States Advanced Bat- has retained Houston-based The sponsored by the South Korean cation of its monthly health mag- Fluor Corp. for engineering, The Detroit News owner’s tery Consortium has awarded a government and private funds. azine, Vital. Its final edition is procurement and construc- $12.9 million contract to Troy- Heise will be the highest-rank- tion services on the refinery credit rating drops next month; it was not prof- based Compact Power Inc. to de- ing Wayne County official to vis- project, as well as Trenton- The owner of The Detroit News itable, she said. velop battery technology for it the Asian nation. based contractor E.C. Korneffel is in danger of defaulting on its — Bill Shea plug-in hybrid vehicles. —Robert Ankeny Co. Senior engineer Andrew loans and is likely to restructure Drury of the MDEQ Air Quality this year, an industry analyst Biotech gets good news, twice Division said a number of said last week. It was a good week for Ann Ar- CORRECTIONS good ideas came out of a pub- Standard & Poor’s credit-rating bor-based Aastrom Biosciences lic hearing April 30 with service last week lowered Den- Ⅲ The photo of Todd Ridley on Page 1 of the June 16 edition should Inc. (Nasdaq: ASTM), a company neighbors, Marathon repre- ver-based MediaNews Group Inc.’s have said it was taken by freelance photographer Rio Scafone. that makes regenerative medi- sentatives and members of the debt rating by two levels to CCC, Ⅲ On the Largest Banks and Thrifts list on Page 14 of the May 19 edi- cine based on stem cells. Sierra Club, which has previ- four levels above default. tion, Citizens Republic was mistakenly omitted. The bank should have ously opposed the project. S&P analyst Emile Courtney in a The company announced that ranked No. 4 with 2007 assets of $13.5 billion. Among the conditions for report last week said the pub- the U.S. Food and Drug Administra- Ⅲ On the Largest Senior-Living Facilities list on Page 13 of the June 9 Marathon’s approval are lisher is in danger of default and tion has approved the use of car- edition, Botsford Commons Community should have ranked No. 13 with a adding eight continuous air is likely to restructure because it diac repair cells for Phase II total of 200 senior-living units. Waltonwood at Cherry Hill (No. 12) should emission monitors on process faces increasing cash-flow prob- studies of treatment of dilated have had 213 total units, and the administrator should have been listed unit stacks to monitor compli- lems this year due to dwindling cardiomyopathy, a severe form as Susan Anderson.

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June 23, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Proton-beam groups compete INDEX

proton-beam centers. Taking Stock: Energy Conversion Devices, its Granholm veto will allow multiple centers “We will try and shorten the stock up length of treatment and that will 250 BY JAY GREENE It is unclear what effect two com- study or evidence bring down the cost of proton beam percent to that of conventional photo radia- since CRAIN’S DETROIT BUSINESS peting proton-beam centers will that proton-beam January, have on health care costs. Some ex- therapy is better tion treatment,” Vicini said. plans In the wake of Gov. Jennifer perts believe costs will rise for em- (than current radi- Granholm’s veto has paved the public Granholm’s surprise veto last week ployers and individuals because pro- ation technolo- way for Beaumont to build its own offerings. of a certificate-of-need rule to re- proton-beam center in Royal Oak in Company ton-beam services currently are gy).” CEO and quire a single multihospital collabo- more expensive than standard radia- But Dr. Frank a partnership with possibly two oth- president Morelli rative to build a $160 million proton- tion treatment. (See opinion, Page 8.) Vicini, Beau- er hospitals. Beaumont has formed a Mark beam cancer therapy center, two “It is pretty likely that there will mont’s chief of on- for-profit joint venture with ProCure Morelli met with competing hospital groups — William Treatment Centers of Bloomington, institutional investors be two centers built now,” said Larry cology, said while last week. Page 4. Beaumont Hospitals and a consortium Horwitz, president of the Economic Vicini two centers will Ind., to build the center. Alliance of Michigan, a business-labor increase competi- The second hospital group plan- Blue Cross: Insurance led by the University of Michigan Health Commissioner says System — are moving forward with coalition. “This will drive up health tion for patients, he believes the controversial acquisition plans to develop their own centers. care costs unnecessarily. There is no state can support as many as three See Proton beam, Page 21 allowed by state law. Page 7. Detroit Chamber: Group 7 merges, revamps longtime leadership programs. Page 17. Workplace giving: Area health charities plan to ramp up their efforts. Cruise Page 18. Race These organizations appear in this week’s Crain’s Detroit Business:

Accident Fund Insurance Co...... 7 Amerisure Insurance Co...... 7 AvFuel Corp...... 21 tune-up Blue Cross Blue Shield of Michigan . 7 ...... 12 for the Choose Michigan Fund ...... 5 Coleman A. Young Airport ...... 21 Organizers Cranbrook Institute of Science . . . . 12 Dearborn Inn ...... 12 Deloitte L.L.C...... 11 Detroit Marriott Troy Hotel ...... 12 make move Detroit Metro Convention & Visitors LEED Bureau ...... 11 Detroit Regional Chamber ...... 17 to raise revenue Eagle Crest Conference Resort . . . . 12 Energy Conversion Devices Inc. . . . . 4 BY SHERRI BEGIN ePrize L.L.C...... 12 Builders vie for first ‘green’ home certification CRAIN’S DETROIT BUSINESS Fort Shelby Doubletree Suites . . . . 12 GM Heritage Center ...... 12 Trophy sponsorships for a new clas- Gontina Building & Design ...... 3 BY DANIEL DUGGAN sic car show, new cruise sponsorships Greektown Casino ...... 12 CRAIN’S DETROIT BUSINESS and an eBay Motors auction could help Health System ...... 21 boost Woodward Dream Cruise Inc. rev- Hospitality Advisors ...... 13 hen Woody Gontina and Ilitch Holdings Inc...... 11 Timothy Risk set out to enue by nearly a third this year, orga- Iridescence ...... 12 W build a house and sell it, nizers say. Karmanos Cancer Institute ...... 21 they were excited about the idea of The nonprofit representing the nine Kors Engineering Co. Inc...... 1 being the first LEED-certified home communities along the cruise route has Little Caesar Enterprises Inc...... 11 in Oakland County. signed eBay Motors Loomis Sayles & Co. L.P...... 4 But they didn’t know about Art and another national Metro Flight Services Inc...... 21 company, Turtle Wax, Michigan Economic Dev. Corp...... 5 Roffey and Gail Danto — a husband Michigan Municipal League ...... 20 and wife building a house six miles to sponsorships for Michigan Strategic Fund ...... 5 away and also seeking the certifica- the 2008 Dream MotorCity Casino Hotel ...... 12 tion. Cruise on Aug. 16. Motor Cities National Heritage Area . 3 Both Bloomfield Township pro- And more sponsor- Northwest Airlines Inc...... 21 jects are set to be completed in the ships could be on the Oakland County Internat’l Airport . . 21 first quarter of next year. way, said Executive Omni Detroit Hotel ...... 12 Director Don Tanner. Pentastar Aviation L.L.C...... 21 The first to finish will be the first Regional Transit Council ...... 20 WDC is in talks home in the northern suburbs certi- Tanner Ritz-Carlton ...... 12 PHOTOS BY NATHAN SKID/CRAIN’S DETROIT BUSINESS fied under the residential Leadership with a number of po- Southeast Michigan Council Timothy Risk, left, and Woody Gontina are building a ‘green’ home to in Energy and Environmental Design, tential sponsors, including a major re- of Governments ...... 20 sell. Art Roffey and Gail Danto, top photo, are building one to live in. overseen by the Washington, D.C.- tailer, bank, carmaker and automotive Special D Events Inc...... 11 based U.S. Green Building Council. aftermarket company. Spirit Airlines Inc...... 21 It’s a friendly scenario. Neither “We’re trying to put more of a face to University of Michigan Health System 3 Westin Book Cadillac Detroit . . . . . 13 side is planning to sabotage the oth- the cruise and make it more of a hap- HOW MANY LEED HOMES ARE THERE? William Beaumont Hospitals ...... 3 er’s project. But being the first is also pening, and to help build and extend the The two Bloomfield Township projects would be the first in Willow Run Airport ...... 21 a nice distinction. Woodward Dream Cruise brand with- Oakland County, but not the first in Southeast Michigan, Woodward Dream Cruise Inc...... 3 “Yeah, we were disappointed when out becoming too commercial,” Tanner to be certified under the residential we heard that we might not be first,” said. Leadership in Energy and Gontina said. “But we’re happy that “The ultimate goal is to continue to BANKRUPTCIES ...... 6 Environmental Design, overseen by there’s more interest in building have a free event for the cruisers and BRIEFLY ...... 6 the Washington, D.C.-based U.S. this type of building.” crowds, (and) that takes dollars.” BUSINESS DIARY ...... 16 Green Building Council. Gontina and Risk formed WDC is organizing a car auction CALENDAR ...... 15 Clawson-based Gontina In Michigan: There are 25 through eBay Motors, in addition to the CAPITOL BRIEFINGS ...... 5 Building & Design to focus on LEED certified homes, almost company’s new cruise sponsorship, and CLASSIFIED ADS...... 14 construction of energy-effi- all in the Grand Rapids area and a new classic car show with 10 trophy KEITH CRAIN ...... 8 cient homes, built to mini- two in Ann Arbor. spots open to sponsorships. LETTERS ...... 8 mize environmental impact. In the nation: WDC also plans to offer a new VIP OPINION ...... 8 The home they’re building There are 310 registration, in partnership with the OTHER VOICES ...... 9 will be 3,700 square feet with an projects. Motor Cities National Heritage Area, a non- PEOPLE ...... 14 asking price of $1.3 million. It profit organization aiming to help in- RUMBLINGS...... 22 crease visibility of metro Detroit’s car will use geothermal heating Source: U.S. Green Building Council WEEK IN REVIEW ...... 22 See Green, Page 19 See Cruise, Page 20 DETROIT BUSINESS MAIN 06-23-08 A 4 CDB 6/20/2008 5:50 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 23, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES On a roll, Energy Conversion Devices makes public offerings

BY TOM HENDERSON to Credit Suisse International, an affili- from the company in August. CRAIN’S DETROIT BUSINESS ate of Credit Suisse Securities L.L.C. Morelli immediately cut back on Those shares are not dilutitive be- research that was high on pizzazz Rochester Hills-based Energy Con- cause they eventually will be re- but low on commercial prospects version Devices Inc. (Nasdaq: ENER), turned to the company. and focused on beefing up the com- coming off the best quarter in its 48- Credit Suisse then will offer the pany’s best-selling product, the so- year history and with its stock up shares for sale to buyers of the con- lar laminate material that commer- more than 250 percent since Janu- vertible notes to serve as a hedge cial builders incorporate into roofs. ary, has launched two public offer- on their investments in the notes. On May 8, ECD announced third- ings, hoping to raise the $365 mil- The shares must be returned to quarter results for the period end- lion needed to more than quintuple ECD before June 15, 2013. ing March 31, with net income of $7 production capacity of its fast-sell- ECD will not receive any pro- ing solar roofing material by 2012. million or 17 cents a share on rev- ceeds of the sale of those shares by enue of $70 million. The same quar- The company currently can pro- Credit Suisse except for a lending duce enough of the laminated sheet- ter the year before, it lost $6.9 mil- fee of one cent a share, or about lion on revenue of $27.4 million. ing at its two facilities in Rochester $34,000. Hills, one in Greenville and one in The stock had closed at $34.81 on ECD’s two offerings follow simi- Tijuana, Mexico, to produce nearly May 7. It closed the next day at a lar offerings by other solar-power 180 megawatts of electricity yearly. 12-month high of $49.91. companies. In February 2007, San Previously it had announced a David Sowerby, portfolio man- Jose-based SunPower Corp., a mak- major expansion of its Greenville ager and chief market analyst at er of solar cells, panels and sys- site — a second plant that is sched- Bloomfield Hills-based Loomis tems, made a $175 million offering uled to be completed by the end of Sayles & Co. L.P., said one concern of convertible senior notes tied to summer — to help take production for would-be investors could be the lending of 2.9 million shares of to 300 megawatts yearly by 2010. ECD’s history of a highly up-and- stock. And in May, JA Solar Holdings Now, though, with the new fund- down share price. Inc. of China offered $350 million of ing, it plans on producing 1,000 convertible notes tied to the lend- “As many times as it’s been a megawatts, or one gigawatt, a year. ing of 13 million shares of stock. top-performing stock over the Company CEO and President ECD officials declined to com- years, it’s been a below-average Mark Morelli spent last week ment because of an SEC-mandated performer.” meeting with institutional in- quiet period after the filing of of- He said the company is benefit- vestors to pitch the offerings. ing from making its offering at a His tour took him to New York, ferings. In January, Morelli told Crain’s time when “the world is infatuated Boston, Silicon Valley and San with solar...With capital more Francisco. The pitch was well- that ECD was poised to become con- sistently profitable for the first time scarce in the subprime toxic debt enough received that ECD upped fallout, it is positive to see compa- the size of each offering. since the company was founded in nies getting finance opportunities.” ECD said June 12 it had filed pre- 1960. His marching orders were to Credit Suisse Securities and UBS liminary paperwork with the U.S. achieve that goal when he was Securities L.L.C. are managers of the Securities and Exchange Commission hired last year, taking over Sept. 1. stock and notes offerings. JPMor- for a public stock offering of 4.7 mil- He replaced Robert Stempel, the lion shares of common stock and former General Motors Corp. CEO gan Chase & Co., Lazard Ltd. and $225 million of convertible senior who took over as CEO at ECD in Deutsche Bank Securities will serve notes to come due in 2013. 1995. Company founder Stanford as co-managers. After digesting the news, the Ovshinsky had stepped down as Tom Henderson: (313) 446-0337, market reacted strongly. president in March and retired [email protected] Last Monday, the stock, which had closed the previous week at $66.99, shot up to an all-time high of $77.71 in midday trading before STREET TALK settling back to $76.86. It finished Friday at $76.64. Its 12-month low THIS WEEK’S STOCK TOTALS: 15 GAINERS, 49 LOSERS, 7 UNCHANGED of $20.47 was set Jan. 22. CDB’S TOP PERFORMERS 6/20 6/13 PERCENT Thursday, the company an- CLOSE CLOSE CHANGE nounced it was increasing its of- 1. Energy Conversion Devices Inc. $76.64 $66.99 14.41 ferings and announced pricing on 2. FNBH Bancorp Inc. 10.75 9.91 8.48 each. It now is targeting $275 mil- 3. Federal Screw Works 6.00 5.62 6.76 lion in convertible notes. The 4. Pulte Homes Inc. 11.19 10.78 3.80 amount of stock in the public offer- 5. Rofin-Sinar Technologies Inc. 34.36 33.17 3.59 ing went up slightly, from 4,708,500 6. Saga Communications Inc. 5.60 5.44 2.94 shares to 4,714,975 shares. 7. Perceptron Inc. 9.10 9.02 0.89 Brokers can offer up to an addi- Rockwell Medical Technologies 6.89 6.85 0.58 tional 190,500 shares of common 8. stock and up to an additional 9. Credit Acceptance Corp. 26.22 26.09 0.50 $41.25 million of convertible notes 10. Universal Truckload Services Inc. 23.08 23.24 -0.69 if demand warrants. 6/20 6/13 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE The stock will be offered at $72 a share. The notes will bear 3 percent 1. Oxford Bank Corp. $14.75 $19.50 -24.36 interest and can be converted to 2. American Axle 11.08 14.00 -20.86 stock, with some restrictions, at 3. General Motors Corp. 13.88 16.45 -15.62 $91.80 a share on or after March 15, 4. Dearborn Bancorp Inc. 5.11 6.00 -14.83 2013. 5. Amerigon Inc. 9.11 10.46 -12.91 Interestingly, most of the new 6. Lear Corp. 19.10 21.45 -10.96 stock won’t be dilutitive, meaning 7. TRW Automotive Holdings Corp. 20.59 22.89 -10.05 it won’t count for the purpose of 8. Champion Enterprises Inc. 6.86 7.51 -8.66 computing earnings per share. 9. Valassis Communications Inc. 13.02 14.21 -8.37 ECD will collect the proceeds on 10. Meadowbrook Insurance Group 6.18 6.73 -8.17 the sale of nearly 1.3 million shares. Source: Bloomberg News. From a list of publicly owned companies with headquarters Those shares are dilutitive. More in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading than 3.4 million shares won’t be at less than $5 are not included. sold by the company but will be lent DETROIT BUSINESS MAIN 06-23-08 A 5 CDB 6/20/2008 2:50 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 5 Loan program may become forgiving

LANSING — A pro- boost collaborations be- tiative, initially presented by Gov. Peruchietti. She replaces Joyce Karr, now in gram to help Michigan tween alternative energy Jennifer Granholm in her State of ■ Colleen Pobur, former vice Boven’s previous position at the close economic develop- Capitol companies, universities the State address. president with Novi-based Strate- commercial services bureau. ment deals is moving for- Briefings and others. gic Public Affairs, has been appoint- Also at OFIR, Jenita Moore, for- ward with new legisla- Senate Bill 1380, spon- Comings & goings ed to the Michigan Liquor Control mer deputy director of Gov. tion that will allow the sored by Jason Allen, R- Commission by Gov. Jennifer Granholm’s legislative affairs di- state to forgive loans Traverse City, creates a ■ Cindy Peruchietti, chief of staff Granholm. Pobur succeeds Virgie vision, has been named deputy made under the program. Centers of Energy Excel- to House Speaker Andy Dillon, D- Rollins, whose term expired. commissioner for policy. Joe Gar- As Crain’s has report- lence program in which Redford Township, is leaving July ■ Jean Boven, former director of cia, formerly an attorney with East ed, the $18.7 million state grants will serve as 3 to become chief administrative licensing for the Michigan Depart- Lansing law firm Guggemos Brown Choose Michigan Fund pro- officer of the Early Childhood Invest- ment of Labor & Economic Growth’s & Gilkey, P.C., has been named chief gram will provide up- catalysts for energy tech- ment Corp., a state-initiated non- Bureau of Commercial Services, of staff to OFIR Commissioner Ken front loans against future nology development. Amy Lane profit aimed at early childhood de- tax credits, as incentive The bill allows the has been named deputy commis- Ross. Moore and Garcia fill posi- to attract business investment and Strategic Fund board to velopment. Peter Cunningham, sioner of the regulatory compliance tions vacant since 2007. jobs. spend up to $45 million from the Dillon’s deputy chief of staff and division within the Michigan Office Amy Lane: (517) 371-5355, But a bill passed last week by 21st Century Jobs Fund for the ini- legislative director, will replace of Financial and Insurance Regulation. [email protected] the state House allows the Michigan Strategic Fund board to also forgive those loans on the basis of the pro- ject’s economic impact. Under House Bill 6208, the loan agreement would enumerate terms, conditions and require- ments under which some or all of a loan could be forgiven, including the factors of job creation and in- vestment. Why offer a loan and then for- give it? To compete with other states that offer significant upfront cash, prop- Descendent of the autobahn. erty and other sweeteners to attract projects, said Jeff Mason, senior vice president and chief business Ruler of the interstate. development officer at the Michigan Economic Development Corp. “We really believe that having It comes from the bloodline of some of the most powerful automobiles ever built. the ability to forgive loans for cer- THE 2008 C-CLASS tain large projects where there’s STARTING AT We added a short-throw, 6-speed shifter and lowered the sport-tuned suspension ever significant job creation not only $ * so slightly. The result is a feat of engineering that seems to rule wherever it goes. will help us close some of the deals, 32,475 but will help us more effectively Test-drive the C-Class today at your local Mercedes-Benz dealer. MBUSA.com compete with what other states are putting out there,” Mason said. Under the bill, loans would be at least $500,000 each and would bear an interest rate of at least 1 percent. Mason said the MEDC hopes the Senate will consider the bill this week and that the measure will be approved before lawmakers leave for their summer break. “We think potentially there are some major projects that could be hanging in the balance, that by having this tool available over the summer, we may be able to close on,” he said. The bill, sponsored by Rep. Ed Clemente, D-Lincoln Park, also ad- dresses a loan fund that is part of Michigan’s recently passed film-in- centive package. It is among several new bills affecting the Strategic Fund. House Bill 6206, for example, adds information-technology com- panies to the list of sectors eligible for competitive awards under the 21st Century Jobs Fund. The awards are currently available to for-profit companies in life sciences, alterna- tive energy, advanced automotive materials and manufacturing, and homeland security and defense. In a news release, bill sponsor Rep. Andy Meisner, D-Ferndale, said adding IT firms will speed the growth of a sector that already has strong Michigan roots. Other bills lift the specifications on the percentage of money that Special Rates Available to Chrysler Employees the board can spend in various Jobs Fund programs, and revise Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester the Strategic Economic Investment 36600 North Woodward Ave. 39500 Grand River Ave. 595 South Rochester Rd. and Commercialization Board, which (248) 644-8400 (248) 426-9600 (248) 652-3800 makes Jobs Fund awards. Another measure, passed by the *MSRP for a 2008 C300 Sport Sedan includes transp. charge. Excludes all options, taxes, title, regis. and dealer prep. 2008 C300 Sport shown at $36,935 includes optional Iridium Silver metallic paint, Panorama Roof and Premium 2 Package. Senate last week, is designed to Options, model availability and actual dealer price may vary. See dealer for details. ©2008 Authorized Mercedes-Benz Dealers For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. DETROIT BUSINESS MAIN 06-23-08 A 6 CDB 6/20/2008 5:33 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS June 23, 2008 VC company raises $1M for seed-capital fund

BY TOM HENDERSON on at the (Detroit) Medical Center physicians at the Medical Center and Fire Retirement System. he said. CRAIN’S DETROIT BUSINESS and Wayne State. There’s just so and the staff at Wayne State, and I Meanwhile, Forbes said the Pri- Some of those could come from much good research going on here. saw a lot of talented people doing vate Fund held a first close of $1 four research groups and two labs INetworks L.L.C., a Pittsburgh- And this is home ground for me,” incredible things,” she said. million, raised from local high-net that Health System is based venture-capital company said Laurie Forbes, managing di- “After being involved in Tri- worth individuals (“I’m out scheduled to open in TechTown in that opened an office last fall in rector of the Pri- dent, where fundraising for both funds; I’m a TechTown, the Wayne State Universi- vate Fund and di- you’re trying to one-man gang,”) and that she has early July, in about 14,000 square ty-affiliated tech park and business rector of investor After being save lives, I could- been meeting with local re- feet of space as part of a seven-year incubator, has raised its first $1 relations for “ n’t go back to cor- searchers and hopes to announce lease. million for a new seed-capital fund BioOpportuni- involved in Trident, porate bonds,” a deal “soon, in weeks. ... The com- “I think it’s great what they’re and hopes to make its initial in- ties. she said of her de- panies we invest in will stay here. doing. We need more of that early vestment in a local biotech compa- A Milford resi- where you’re trying cision to join We won’t take anyone out of stage financing, particularly in life ny in the next few weeks. dent, she spent 19 iNetworks. “I had here.” sciences,” said David Morris, co- The company is raising two Morgan years at to save lives, I a great career at She said the funds will target founder and managing director of funds: a $5 million seed fund called Stanley, where she Morgan Stanley. I medical devices, medical services Detroit-based Oracle Capital Part- the iNetworks Private Fund L.P. to fi- helped hospitals couldn’t go back to made a lot of mon- and medical IT, but will avoid drug nance early stage companies with arrange bond of- ey. People development because of the time ners L.L.C., a venture-capital firm initial investments of $250,000, ferings and debt corporate bonds. thought I had lost and cost involved. that targets minority-owned firms. which will be run from Detroit; restructuring be- ” my mind when I “We’re obviously delighted iNet- “It gives promising companies and the $100 million iNetworks fore quitting in Laurie Forbes, took a leave to works chose TechTown. They with interesting technologies a BioOpportunities Fund L.P., which 2006 after co- iNetworks Private Fund L.P. start Trident.” could have chosen any number of chance to get to that next step, will be run from Pittsburgh. founding Trident INetworks has other locations,” said Randal where they can larger rounds of It plans to hold a first close soon Partners L.L.C., a Montreal-based applied for funding from the Charlton, interim executive direc- traditional financing.” of $50 million for the biofund. stem-cell research company that state’s 21st Century Investment Fund tor at TechTown. INetworks, founded in 1999, also The plan is to grow companies was later sold to a hospital group. and the Venture Michigan Fund, both “There are a number of opportu- has a Cleveland office to facilitate here from the small fund to the Forbes is a longtime member of managed by Credit Suisse, and has nities coming through the medical point where they are ready for in- the finance committee of the board been in talks about investments research community that sur- investments in biotech spin-offs vestment from the larger fund. of directors of DMC Harper-Hutzel for the BioOpportunity Fund with round TechTown that we hope to from the Cleveland Clinic. “We picked TechTown and De- Hospital. both the city of Detroit’s General put in front of iNetworks. We’ll Tom Henderson: (313) 446-0337, troit because we see so much going “I’ve worked with the staff and Retirement System and the Police make sure they get the first look,” [email protected]

BRIEFLY Pulte fined by EPA for runoff Marketing & Public Relations has opened an office in suburban The Environmental Protection Columbus, Ohio, the 10-year-old Agency and Department of Justice agency’s third location. said June 11 that Bloomfield Hills- The Columbus office, in the Eas- based Pulte Homes Inc. would pay ton Town Center retail and office an $877,000 fine for failing to con- area, will be run by new hire Moni- trol runoff at construction sites ca Ireland, vice president, who across the country, the Associated comes to Identity after eight years Press reported. with the Walt Disney Co. She will be The company also will complete responsible for Identity’s 10 clients a $608,000 project to reduce the in the area, which include Nation- amount of sediment entering a wide Realty Investors, the real estate northern California watershed. development affiliate of Nationwide Mutual Insurance Co. Entrepreneur’s Quest names The new office comes as Identi- ty’s revenue is up 20 percent the contest winners first half of 2008 from last year’s $3 OcuSciences Inc. of Ann Arbor, million, said Mark Winter, co- which does noninvasive imaging founder and partner. The agency to detect retinal diseases, won the also has a two-person office in Bal- $25,000 grand prize June 12 at the timore that handles editorial ser- annual Great Lakes Entrepreneur’s vices work. Quest business plan competition. — Bill Shea DevHive Corp. of Livonia, which is building a software-as-a-service platform for custom business ap- plications, won the runner-up prize of $5,000. Winning the first-place prize of BANKRUPTCIES $5,000 in the new business idea cate- The following businesses filed for gory was 3D Biomatrix of Ann Arbor, Chapter 7 or 11 protection in U.S. a drug-discovery company. Ann Ar- Bankruptcy Court in Detroit June 13- bor-based dusoto.com, an online 20. Under Chapter 11, a company files for reorganization. Chapter 7 involves provider of nightlife and travel in- total liquidation. formation, won $1,000 as runner-up. Renaissance Spa, L.L.C., 3617 W. OPS Solutions L.L.C. of Northville Maple Road, Bloomfield Hills, volun- won $12,500 as recipient of the Au- tary Chapter 11. Assets and liabilities tomation Alley Advanced Manufac- not available. turing Innovation Award, with Ann DMT Technologies Inc., 20920 Balinski Arbor-based FlexSys Inc., an engi- Drive, Clinton Township, voluntary neering design and prototype com- Chapter 7. Assets and liabilities not pany that claims to have developed available. more efficient blades for wind tur- Associated Eye Institute in Detroit PC, bines, winning the Alternative En- Michigan Glaucoma Institute PC, As- ergy Innovation Award and $12,500. sociated Surgical Center PC, Luna The event was held at the James Cosmetic Centers PC and Associated B. Henry Center at Michigan State Eye Specialists of Farmington Hills, all University. under Luna Health Management, in various locations in Detroit, Farming- — Tom Henderson ton Hills and Dearborn Heights. Vol- untary Chapter 11. Assets and liabili- Identity opens Columbus office ties not available. (See story, Page 1.) Bingham Farms-based Identity —Compiled by Bernadine Williams DETROIT BUSINESS MAIN 06-23-08 A 7 CDB 6/20/2008 2:48 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 7 Insurance commissioner OKs Blue Cross acquisition

BY JAY GREENE and the attendant escalation of commissioner has rendered an CRAIN’S DETROIT BUSINESS subscriber fees,” wrote Gallinger, opinion that the transaction is Proposed expansions by (Blue Cross) who also is vice president with proper,” Stojic said. Insurance Commissioner Ken “ Ross believes it is well within state are anti-market and anti-consumer. Amerisure Insurance Co., a Farming- Since 2003, Blue Cross has in- laws for Blue Cross Blue Shield of ” ton Hills-based property and casu- creased premium rates 79 percent Michigan alty insurer. for individual policies and 92 per- to have purchased a Cali- Kurt Gallinger, spokesman, insurers opposing legislation fornia-based for-profit insurance Helen Stojic, Blue Cross’ media cent for group policies, Gallinger company for $125 million in 2007. West is one of four workers’ com- tion of CompWest is the latest ex- relations director, said Blue Cross said. But Attorney General Mike Cox pensation companies that Acci- ample of Blue Cross’ multiple vio- has followed state law in acquiring “Proposed expansions by (Blue is still investigating allegations dent Fund has acquired since 2005. lations of state laws. the insurance companies for Acci- Cross) are anti-market and anti- that Blue Cross violated state laws “Blue Cross now controls multi- “If the Legislature chooses to dent Fund. She said the profits from consumer,” Gallinger said. “They by acquiring CompWest Insurance ple for-profit stock companies in proceed toward the enactment of Accident Fund are used to lower would serve only to expand a mo- Co. and several other insurance Michigan, Wisconsin and Califor- the proposed expansions, it would health care subscriber premiums. nopoly, reduce competition and in- companies for its Accident Fund In- nia,” Gallinger said in a June 4 let- be rewarding apparent lawless- “We are not going to respond to crease consumer burdens.” surance Co. of America, a workers’ ter to Smith. ness and sanctioning the contin- the ranting of a registered opposi- Jay Greene: (313) 446-0325, compensation insurer. Gallinger said the 2007 acquisi- ued diversion of subscriber funds tion lobbyist after the insurance [email protected] Cox was unavailable for com- ment on the status of his investiga- tion. Rusty Hills, his communica- tions director, said Cox has been gathering documents and perform- ing a legal analysis of the transac- tions. There is no timeline to com- plete the investigation, he said. In a May 22 letter to Rep. Virgil Smith, D-Detroit, Ross said state law governing Blue Cross “explic- itly permits (the insurer) to engage in other financial transactions with the Accident Fund.” Smith, chair of the House Insur- ance Committee, asked Ross in a May 19 letter for a ruling on the Blue Cross acquisitions due to con- cerns raised by Cox about their le- gality. Ross said the Office of Financial Insurance Regulation has consistent- ly interpreted state law — specifi- cally Public Act 350 — “broadly to permit (Blue Cross) to operate the Accident Fund in a manner consis- tent with a routine parent/sub- sidiary relationship.” Under state law approved in 1993 when the state sold Accident Fund to the Blues for $262 million, Accident Fund is limited to work- ers’ compensation insurance and employer’s liability insurance. A 1999 amendment also allows Accident Fund to sell limited types of disability insurance to replace lost wages. While OFIR previously has ap- proved technical agreements asso- ciated with the CompWest acquisi- ESPITETHEWAVERINGMARKETANDHAZYECONOMICFORECASTS THERE tion, Ross appears for the first $ time to have formally approved in ISONETHINGTHATSHOULDNEVERFLUCTUATE¯ABANK´SPURPOSE writing the actual asset transfer that led to the purchase of Comp- 3INCE #OMERICA"ANKHASDEDICATEDITSELFTOHELPING West, according to documents CUSTOMERSNOTONLYREACHTHEIRGOALS BUTSURPASSTHEM OFIR provided to Crain’s. IS YOUR BANK In his letter, Smith asked Ross if the $125 million transfer from Blue 7HICHMIGHTEXPLAINWHYWE´VEBEEN±INBUSINESS²FOROVER Cross to the Accident Fund com- LOOKING AFTER YEARS plies with state law, specifically Section 207(1)(X)(vi) of PA 350. YOUR BUSINESS, 3O WHENTHEECONOMICEVENTSOFTOMORROWSEEMIMPOSSIBLETO Ross replied: “The answer is PREDICT REMEMBERTHAT#OMERICA"ANKISSTANDINGSTRONGAND yes.” OR THEIRS? But Kurt Gallinger, a spokes- TRUETOYOURCOMPANY´SSUCCESS man for a group of insurers oppos- ing legislation that would allow the Accident Fund to expand into WE’RE IN THIS TOGETHER. other lines of insurance, said Ross is wrong in his analysis because it YOUR CO AND OURS. is narrowly focused. For example, Gallinger said an- other section of state law — Sec- tion 207(1)(o) of PA 350 — prohibits Blue Cross from “owning or con- trolling 10 percent or more of the voting securities of for-profit in- surers” unless the insurer that is acquired is only authorized to sell disability insurance. This section was amended in 2003.

Disability insurance does not in- -%-"%2&$)#%15!,/00/245.)49,%.$%2 comerica.com clude workers’ compensation in- surance, Gallinger said. Comp- DETROIT BUSINESS MAIN 06-23-08 A 8 CDB 6/20/2008 2:49 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS June 23, 2008 OPINION Beaumont got the ruling it deserved illiam Beaumont Hospitals often earns poor grades from peer hospitals in the region for “plays well with W others.” That’s due in part to the Royal Oak-based health system’s history of going its own way. It’s also partly due to its subur- ban location, which has helped it grow without the burden of high proportions of uninsured patients that its urban peers deal with every day. But in its quest to build a new cancer treatment center us- ing proton-beam therapy, Beaumont has gotten a bum rap. By creating its own proton-beam consortium, competing hospitals hoped to knock Beaumont out of contention for state approval for its center. But Gov. Granholm issued a surprise veto of a state health commission’s rule that, in effect, gave a green light to that six-hospital consortium led by UM Hospi- tals and Henry Ford Health System. (See story, Page 3.) Granholm used antitrust issues as her rationale. But in our minds, there’s also an issue of fairness. Beaumont had been working for months on plans for its center with the for-profit company, ProCure Treatment Centers of Bloomington, Ind. LETTERS Earlier this year, well before the consortium filed its appli- cation with the state, Beaumont met with and ultimately invit- ed at least two hospitals — UM and Karmanos Cancer Institute — to be partners on its project, offering opportunities for rev- Tax ‘rant’ needs another look enue sharing and discussing branding the center in a neutral, non-do-you-have-a-Beaumont-cancer-doctor way. The proposal Editor: freeloading is coming to an end. Crain’s Detroit Business In the June 9 edition, there is a This new Michigan Business Tax was clear that Beaumont would be the lead hospital. welcomes letters to the editor. fairly sensational article about a structure we have to deal with may Now, with Beaumont poised to proceed on its own, the oth- All letters will be considered for be unfair, but I think we need to use er hospitals might now ask if they “play well with others.” Plymouth Township business publication, provided they are finding a “14,000% tax bill jump” signed and do not defame realistic arguments to point out the (“Tax bill jumps 14,000% for Ply- individuals or organizations. unfairness in the system. Relying A good new transit investment mouth Twp. company”). While it Letters may be edited for length on sensational “14,000% jump” is easy to go about ranting and and clarity. headlines only hurts us in the end by destroying our credibility and With gas at $4 a gallon, political support for public transit raving about how the new tax Write: Editor, Crain’s Detroit may be growing. It’s about time. structure in the state of Michigan Business, 1155 Gratiot Ave., ultimately makes us sound like a bunch of whiny spoiled brats. State Rep. Marie Donigan, D-Royal Oak, is proposing to use is unfair and likely to cause prob- Detroit, MI 48207-2997. Ron Gage tax-increment financing, already a tool for redeveloping core- lems for many small businesses, I E-mail: [email protected] Owner city downtowns, to establish “transit revitalization invest- think this case deserves a bit more Linux Network Services scrutiny. Westland ment zones.” Increases in property taxes could finance bonds of argument — assume 100 percent In the article, Stardock Corp. to develop and pay for transit. (See story, Page 1.) growth over last year. This esti- Why SBT didn’t work talks about how its tax bill is mate puts their income in 2007 at Projects in both Detroit (light rail) and Grand Rapids (rapid- jumping from $1,200 a year to roughly $9 million. This brings Editor: bus transit) would be helped by such financing, so Donigan roughly $168,000 a year. On the their reported tax rate for 2007 at I think the fact that Stardock hopes to build an east-west coalition of lawmakers to support the surface, this certainly looks in- roughly .013 percent of their gross. Corp. is getting a 14,000 percent tax increase in the new Michigan plan. The Michigan Municipal League actually hatched the idea credible — until one scratches be- Now looking at 2008, their tax rate low that thin surface. In the arti- Business Tax vs. the previous Sin- and brought it to Donigan, a champion of transit. jumps up to .93 percent of gross. cle, Stardock is reported to have If there is anyone in the room gle Business Tax shows exactly Donigan’s House Bill 6114 creates a structure for contigu- revenues that “could approach $18 who thinks that a .93 percent tax why the SBT didn’t work (“Tax ous governments, transit agencies and businesses to create million” in 2008. Let’s run the on gross revenue is unfair, please bill jumps 14,000% for Plymouth zones for transit. It offers a funding option that doesn’t rob numbers, shall we? let us know immediately. Twp. company,” June 9). It doesn’t scarce funds for other projects. It’s a smart idea that should be Since we don’t have the num- I would suggest that perhaps Star- make sense for a company with enacted into law. bers from 2007, let’s — for the sake dock is complaining because their See Letters, Page 9

KEITH CRAIN: Why can’t the government downsize? The whole world knows that the and learn what it will training for a legisla- so inept. They would, no doubt, lose handily. economy in Michigan stinks. Un- take to balance a budget. ture but when they If anyone suggests I’m being too And that’s a real shame. employment is 8.5 percent, a huge I’ve concluded, sadly, wrote the rules for harsh, that we elected these folks It would be interesting to count number that’s going to take a long most politicians have Michigan, somehow and deserve what we voted for, I’m all the elected officials in our state time to shrink. never ever run or even they forgot to include not sure we had much of a choice. and see how many of them even Companies are laying off people worked for a tax-paying that simple provision. Too often all we hear from those worked for a company, much less right and left. Some are declaring company. How can anyone have campaigning for elected office is actually ran any sort of operation bankruptcy. Some are selling or Too many of our any idea of running a how they are going to take care of that had a payroll and paid taxes. closing. All are cutting costs and politicians are teachers government if they don’t all our ills. Somehow, no one ever That’s why it’s so easy for them doing some painful downsizing. or lawyers or social-ser- have a lick of experience questions where the money is com- to solve all the problems by raising So why are politicians so inept vice workers or any running a real, live busi- ing from to do that. I suppose that taxes and spending more money. when it comes to downsizing gov- number of other profes- ness? If most, if not all, of no one would ever be elected if they It’s very disappointing. But we ernment? I’m continually stunned sions that never had to our legislators have no campaigned on the whole idea of got ourselves into this mess. I guess by the inability of local, regional make a payroll. Somehow it would practical experience, it’s obvious lowering costs, reducing entitle- that means we might want to try and state government to cut costs seem to be a necessary part of why governments in this state are ments and the size of government. and get out of it in the next election. DETROIT BUSINESS MAIN 06-23-08 A 9 CDB 6/19/2008 3:16 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Energy bills would electrify economy

The following was submitted by other alternative-energy technolo- primarily by out-of-state electric the energy-reform legislation as a regulatory environment and re- Rich Studley, executive vice president gies, and baseload power plants. vendors, which thrive on the critical step in our recovery. duced investment uncertainty, of the Michigan Chamber of Com- Michigan needs the certainty volatility of the energy market. “It is vital for legislators and which should lower the cost of cap- merce; Chuck Hadden, vice president this legislation offers. That’s why States that continue the deregulat- regulators to understand that with ital for utilities, allow businesses of the Michigan Manufacturers As- nearly 300 businesses and organi- ed market approach they advocate, so much competition for capital, to provide energy at the lowest sociation; and Sarah Hubbard, vice zations have joined the Michigan however, are seeing devastatingly the states that have the right struc- cost to consumers, and spur eco- president of government relations, Jobs and Energy Coalition. high wholesale power prices. A re- tures for investment will attract nomic development in the state.” Detroit Regional Chamber. This legislation addresses three cent Wall Street Journal article de- investor dollars,” said a recent Michigan can’t afford to fall vic- The Michigan House of Repre- primary goals: scribed Texas as the latest victim Lehman Brothers report. “Operat- tim to the whims of a volatile mar- sentatives recently passed critical 1. Increase our commitment to of deregulation. It noted that the ing as a hybrid market like Michi- ket. Passage of the energy-reform energy-reform legislation. These renewable energy such as wind, state’s utility commission held an gan is problematic for utilities, package is essential to keeping us bills, currently being considered solar or biomass. emergency meeting to address ratepayers and investors.” on the road to economic recovery. by the Michigan Senate Commit- 2. Pave the way for the financing “ominous and so far unexplained” Credit Suisse analysts said, “We If our leaders in Lansing don’t tee on Energy Policy, will help cre- needed to build new baseload pow- spikes in wholesale power prices are pleased to see political support act soon to safeguard Michigan’s ate thousands of jobs and set the er plants. and their impact on customers. for energy infrastructure in Michi- energy future, our state will find stage for major new investments 3. Encourage energy efficiency. Investment analysts are watch- gan. Legislation provides the op- its future economic prospects in energy efficiency, renewables, This approach has been opposed ing Michigan carefully, pointing to portunity to create a constructive growing even dimmer.

LETTERS CONTINUED ■ From Page 8 $18 million in revenue to only have been paying $1,200 in tax while similarly sized Michigan manufac- turers paid dramatically more re- gardless of profitability. The MBT may be far from per- fect, but it was certainly a step in the right direction prior to the Enjoy service to Mexico surcharge, which was tacked on later. John Stevens President with emphasis on the word Hercules Machine Tool & Die L.L.C. Warren Back the Fair Tax “service”. Editor: Once again I am saddened to see another Michigan business look- ing to move out of our state due to the high cost of taxes and operat- ing in Michigan: “Tax bill jumps The “2007 Best Airline in Mexico*” is pleased to offer 14,000% for Plymouth Twp. compa- ny” (June 9). Detroit–Monterrey–Mexico City service**. There is another answer, and Amy Lane wrote about it in her arti- cle “Fair Tax backers hope MBT anger will bring votes” (March 31). The Fair Tax would not only elimi- nate the Michigan Business Tax but *AeroMexico named “2007 Best Airline in Mexico” all business-to-business taxes, the by Business Traveler magazine. personal income tax, personal prop- erty tax on business fixtures and equipment and give every family in Michigan a rebate for the taxes they pay up to the poverty level. What a terrible shame that our elected officials rushed to put to- gether a package of bills like the Michigan Business Tax, so detri- • Conduct business in Monterrey and Mexico City with punctual morning flights mental to business and jobs in • Once in Monterrey, connect to major cities with direct flights to Chihuahua, Hermosillo, Leon, Guadalajara and many others Michigan, and never gave seri- ous thought to a plan that not • Fly with the only airline in Mexico that travels to Central America, South America, Europe and Asia only would modernize the tax • Enjoy unsurpassed hospitality with AeroMexico, where all beverages and delicious meals are complimentary for business system for the 21st century but would bring our jobs back to and coach passengers Michigan. Studies show a sales tax is the AM 693 Aircraft: 737-700 Departing: Mondays, Wednesdays and Fridays steadiest stream of revenue for state and local governments; why Departure Arrival Departure Arrival are we not looking at this plan? DTW 8:30 a.m. MTY 11:05 a.m. MTY 12:30 p.m. MEX 2:00 p.m. Fifteen other states derive their state budgets from a sales tax alone. When is Michigan going to AM 692 Aircraft: 737-700 Departing: Tuesdays, Thursdays and Saturdays learn? Thousands of volunteers are Departure Arrival Departure Arrival spending their time to get peti- MEX 11:00 a.m. MTY 12:20 p.m. MTY 1:50 p.m. DTW 6:30 p.m. tions signed when our legislators with one vote could put this sim- ple, fair and energizing plan on November’s ballot. Control the Founding member of SkyTeam Alliance taxes and you will control spend- ing in Lansing. Linda Jolicoeur President 1 800 237 6639 (aeromex) aeromexico.com Target Equipment Leasing Inc. Farmington Hills **Some connecting flights from Monterrey operated by AeroMexico Connect. See Letters, Page 17 DBpageAD.qxd 6/10/2008 9:37 AM Page 1

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June 23, 2008 CRAIN’S DETROIT BUSINESS Page 11

A CONVERSATION WITH Bookings for the Book The Westin Book Cadillac Detroit reports early success in attracting Carol corporate events. Galle, Page 13. Special D Events Meetings & Conventions

Carol Galle is president and co- founder of Special D Events Inc. in Royal Oak. Galle has run corporate events all over the country since starting the firm in 1992. She has had buildings wrapped in bows, turned a parking lot into a 1940s diner, and invited Archbishop Desmond small Tutu to Battle Creek for a meetings, nonprofit event. She spoke with reporter Daniel Duggan about the events business.

What’s the strangest request you’ve had? We were in Wisconsin and a client asked for a gorilla costume. It was part of a gag where he’d be the proverbial gorilla in the room while his boss was talking. Luckily, it was around Halloween time, so we found a costume store. Where do your ideas come from? bigmoney We try to give clients a range of ideas, some totally outrageous, just to get them thinking. BY DANIEL DUGGAN sorb the new business, he said. Sometimes it’s the clients who CRAIN’S DETROIT BUSINESS While the “Meet in the D” program is a have the ideas. At an exhibit near Convention campaign for local meetings, it’s part of Orlando, a client wanted to involve hen people and media from all the larger goal of growing the number of Sea World and wanted Shamu at over the world flood Detroit for small meetings in the region. his booth ... it turned out to be a bureau, biz W the North American International When Chris Baum hit. Auto Show, the economic benefit of the was hired as senior event is easy to see. Is it easy to get Shamu? It’s a lot vice president of sales leaders seek When Little Caesar Enterprises Inc. holds and marketing at the easier than Winnie the Pooh. a franchisee meeting here, it may not be That’s really hard. There are DMCVB in April 2006, front-page news. he also began pushing licensing issues and you need to to snag more However, that 1,500-person meeting bring out the whole cast. Shamu a focus on smaller would draw an economic impact of $1.43 meetings. was easy. It was a guy in a suit million, according to estimates by the De- and one bodyguard. small and “The 800 members of troit Metro Convention & Visitors Bureau. the bureau are looking Though the bureau and meeting plan- What’s the biggest mistake for a lead on a small ners are still focused on bringing major Baum meeting planners make? Not corporate meeting midsize events conventions to the re- understanding how much time it more so than the next big event for Cobo,” gion, there has been a can take to plan an event. This said Baum. “An event with 100 rooms for shift in recent months might sound like a fun job, but for the region three nights is what the average hotel is to seek the big money when you come up with the time looking for. It’s the bread and butter of that can come from line and start working backward, the industry.” smaller meetings. you can be surprised with how little No one denies the boost of big conven- The bureau esti- time you have. Sometimes, like a tions in drawing attention and offering mates meetings with corporate anniversary, you’re opportunities for many hotels and ven- 500 people can mean an planning two years in advance. dors. Yet, the smaller events can quickly economic impact for bring a big boost in business as well. the region of close to What happens when events don’t Ilitch “You get an event that brings $25 mil- $500,000 per event. go as planned? You find the lion in revenue and 15,000 rooms, and peo- “We can get a lot of economic activity problems and make the changes ple are impressed,” he said. “But there by promoting corporate meetings and get- you need to. We were doing an are hundreds of events going on every event last summer for the ting a larger share of that business,” said day that are supporting the restaurants, University of Michigan when the Ilitch Holdings Inc. President and CEO the hotels, the entire industry.” Survival Flight crash occurred Chris Ilitch. Ilitch, also chair- Some of the companies that have al- (killing six people on a mission to man of the bureau, kicked ready signed on with Ilitch’s plan, out- obtain transplant organs). The off the “Let’s Meet in the entire event had to be changed, D” program, which lined at an event May 20, illustrate the im- take on a more somber tone. $500,000 asks local businesses pact companies’ meetings can have in the Sometimes it’s a matter of What a 500-person event to hold more of region. Deloitte L.L.C., for example, held a meet- changing things at the last generates for the region. their meetings in minute. We had a luncheon Detroit. He’s ask- ing with 100 people for its national auto- planned at a hotel, which decided ing they choose motive consulting practice in Atlanta last to do some painting the day the D rather than year, said Managing Partner Joe Angileri before. It smelled like paint in the 200 Las Vegas or Or- of the Detroit office of Deloitte. room, so we had to move it Maximum number of rooms lando, for example. The company has regional meetings for outside. It’s one of those things; the 14-office group, which includes De- needed for most There are 16 mil- if the attendees only knew ... lion visitors per year troit. Angileri said those meetings, with meetings. to the Detroit area, 400 to 500 people, will be held in Detroit If you know spending $4 billion, Ilitch rather than rotating to other cities. In ad- someone said. Of that amount, 25 per- dition, Deloitte is launching a green con- interesting you cent is on meetings and conventions. sulting practice out of its Detroit office would like Daniel and brought its inaugural meeting, and Duggan to interview, That amount of spending can be doubled 400 attendees, to Detroit. call (313) 446-0414 by recruiting more corporate meetings, or write dduggan and there are enough venues to easily ab- See Events, Page 12 @crain.com. DETROIT BUSINESS MAIN 06-23-08 A 12 CDB 6/19/2008 3:17 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS June 23, 2008

FOCUS:MEETINGS & CONVENTIONS New, renovated spaces give companies options

BY JONATHAN EPPLEY of like a facelift for the meeting SPECIAL TO CRAIN’S DETROIT BUSINESS space.” Caesars Kennedy said the hotel is using Detroit-area hotels and meeting the Internet to attract new clients. venues continue to open the doors Video clips of the hotel are posted to new spaces and polish up older Windsor on YouTube and a virtual tour ones. More than 207,000 square feet of video podcast is in the works. new or renovated space has either expansion The Detroit Marriott Troy Hotel opened since January or will open spent $1.5 million to renovate its within the next year. 16,000-square-foot ballroom and The Detroit casinos have creat- opens meeting space, which can accom- ed some of the biggest new offer- modate up to 1,000 guests. ings, but mainstay corporate set- On Thursday, Caesars Wind- In Sterling Heights, the GM Her- tings in the suburbs are also sor opened the doors to its more itage Center has opened its doors to investing in upgrades. than 200,000-square-foot, $430 more meetings. Center spokesper- The largest local convention and million hotel, casino and con- son Frank Sopta said the center meeting space opened at MotorCity vention space expansion. has been available for non-GM Included in the expansion is Casino Hotel as part of its $300 mil- functions for several years but is 100,000 square feet of conven- lion permanent facility expansion. only now being marketed as such. The casino and hotel opened 37,000 PHOTO COURTESY OF THE GM HERITAGE CENTER tion and meeting space. The The GM Heritage Center has opened its doors to more people. The facility can The center is near Mound Road square feet of convention and space includes a 39,500-square- accommodate up to 600 people. and Metropolitan Parkway. meeting space on May 6 and plans foot multipurpose theater, a di- vidable 26,000-square-foot ball- Five thousand square feet of to open a 30,000-square-foot multi- tel, parking garage and theater ex- to IACC’s Web site. room and seven conference meeting space is available inside purpose theater this summer. pansion project, which will total IACC-approved spaces reflect rooms ranging from 1,500 an 81,000-square-foot center filled The space includes a 12,000- about $500 million in construction current best practices in technolo- square feet to 2,000 square feet. with nearly 200 classic GM auto- square-foot grand ballroom, four costs, said Susan Sereno, director gy, service, design and food. The The expansion will add to the 1,500-square-foot breakout rooms of sales and marketing. Eagle Crest Conference Resort in Yp- mobiles. casino’s existing 15,000-square- and two board rooms of about 500 The meeting space is to include silanti is the only IACC-approved Sopta said the facility can ac- foot Promenade Ballroom and square feet each. five breakout rooms, two board conference space in Southeast commodate 600 people and is being Colonnade Room. Jason Brown, Jennifer Kulczycki, media and rooms and a grand ballroom divis- Michigan. marketed to corporations, non- vice president of Farmington community-relations manager for ible into three sections. “We’re trying to carve out a dif- profit organizations and car clubs. Hills-based public relations MotorCity, said at least one meet- Sereno said the casino plans to ferent niche,” Aprill said. The center, however, is not open firm Hermanoff & Associates Inc., ing per day has been booked since use the familiarity of the Greek- Meeting space at the Fort Shelby for events like weddings or private which handles public relations the meeting space opened over a town district to attract clients. is to include 17 breakout rooms, parties. for the casino, said the casino is month ago. “I think location is our biggest each ranging between 300 square being marketed on both sides of “We’re trying to make this facil- “We’ve been hosting groups of selling feature,” she said. feet and 1,100 square feet, and two the border as an “all-in-one” ity available to more people to en- all shapes and sizes,” she said. Beyond casino space, another ballrooms with 2,200-2,800 square destination using the familiar joy the GM vehicles,” Sopta said. “We’ve done anywhere from con- big downtown venue to watch is feet of space. The $82 million reno- Caesars nameplate. Carolyn Artman, manager of struction companies to banks.” Iri- inside the renovated Fort Shelby vated hotel is set to open Nov. 15. The casino and hotel are op- media relations for the Detroit descence, the restaurant on the Doubletree Suites. The hotel, operat- Beyond downtown, Marriott Inter- erated by Las Vegas-based Har- Metro Convention & Visitors Bureau, 17th floor of the hotel, can be rent- ed by the Hilton Hotel Corp., is to national Inc.-managed hotels in rah’s Entertainment Inc. on behalf attributes the investment in vari- ed during the day as meeting have more than 21,000 square feet Dearborn and Troy spent $7 mil- of the Ontario government. ous kinds of convention and meet- space, but not during dinner of meeting and conference space. lion to renovate guest rooms and — Jonathan Eppley hours. The hotel is applying for Interna- meeting spaces. Both hotels re- ing spaces to a growing push from Greektown Casino plans to open tional Association of Conference Cen- opened their meeting spaces earli- meeting planners to promote local 25,000 square feet of meeting space ters approval, said Bill Aprill, ho- er this year. “We’ve definitely noticed posi- meetings. The area can market it- by February. tel director of sales and marketing. The Dearborn Inn spent $5.5 mil- tive feedback since the renova- self as “accessible, affordable and Despite filing for Chapter 11 If approved, the Fort Shelby will lion to paint and carpet its 17,000 tion,” said Jodie Kennedy, Mar- an alternative meeting destination bankruptcy late last month, the be the only IACC-approved confer- square feet of meeting space and riott regional marketing and with excellent amenities and at- casino is going forward on the ho- ence center in Detroit, according renovate 229 guest rooms. e-commerce manager. “It was kind tractions,” she said.

Events: Small meetingsprofitable Cranbrook hosts traveling PGA Championship exhibit Golf is a game that He estimates that as ■ From Page 11 loves its traditions and ABOUT THE PGA EXHIBIT many as 30,000 people history. A traveling ex- could visit the free ex- “People have liked coming here for the “Midweek, it’s crucial for hotels to have corpo- hibit at Cranbrook aims What: PGA Championship hibit by the time it meetings,” he said. “It’s a good location that’s rate meetings.” to celebrate that — and of- History Exhibit presented by leaves July 30. easy to get to. The airport certainly helps with RBS. Given the importance, the Irving, Texas- fer a unique setting for an “We try to connect that.” based Omni chain is constantly looking for evening corporate event. When: 10 a.m.-5 p.m. daily, visitors to science, and Similarly, Pleasant Ridge-based ePrize L.L.C. new ways to make its sites places for meet- with extended hours until 10 The PGA Championship p.m. Fridays, through July 30. in this case, the will hold its national meetings in the area, ings. It recently rolled out a new promotion History Exhibit showcases physics of the golf rather than other cities as has been the prac- for small meetings, offering color-coordinated Where: Cranbrook Institute of some noteworthy mo- Science, 39221 Woodward swing,” he said. “This tice in the past. meeting spaces for different meeting themes. ments in golf with a col- is going to attract an With offices in New York, Dallas, Chicago, Ave., Bloomfield Hills. A brainstorming meeting gets red decor; a lection of memorabilia at Cost: Free. audience who normal- Los Angeles and Dallas, an annual meeting meeting for bad budget news gets a soothing the Cranbrook Institute of ly might not visit.” Details: The traveling exhibit of can include 600 people with employees and blue, for instance. Science in Bloomfield The roughly 3,000- spouses, said Alesya Opelt, vice president of artifacts from 89 past PGA Another strategy is to find more local sales Township. Championship winners is a square-foot exhibit, lo- marketing. prospects. The traveling exhibit, must-see for golf fans. A portion cated at the museum’s “Traditionally, some of the meetings have “You have to look at backyard business as which debuted in 2000, of the exhibit, including new west entrance, is been in Detroit, some have been in other well,” said Heidi Nowak, director of sales and brings together artifacts interactive elements, will be at also available for cor- places,” she said. “Now, all the meetings will the 90th PGA Championship at marketing for the Ritz-Carlton in Dearborn. collected from 89 past porate parties and pri- be in Detroit.” champions of the PGA Oakland Hills Country Club from vate gatherings after “Companies that are five miles away could be The Deloitte and ePrize meetings are actual- Championship, from Aug. 4-10. hours, Stafford said. a lot of business, and not all hotels capitalize ly larger in scope than many corporate events. Tiger Woods’ shirt and Web site: www.cranbrook.edu. Ryan Cannon, tour- on what’s right here.” Nationally, Baum said, the average corporate shoes to Gary Player’s 9- nament director of the meeting averages 75 attendees. She’s also excited about what she views as a iron that helped him win the 1972 PGA 2008 PGA Championship, said this is the People in the meeting business are excited more collaborative approach. Championship at nearby Oakland Hills first year the exhibit, presented by RBS, by the growing focus on small and midsize cor- “I’ve worked in other markets, and I’ve nev- Country Club. has attracted a title sponsor, allowing it porate meetings. er seen such a cohesive effort,” she said. “It’s Michael Stafford, director of the insti- to expand and improve. “When we aren’t filled by a major, citywide great to see everyone working toward a com- tute, said hosting the exhibit was a per- “There are great videos,” he said. “It event, every hotel is out looking for meet- mon goal.” fect fit, considering the proximity of the is just a nice interactive tour through ings,” said Damon Bell, director of sales and Daniel Duggan: (313) 446-0414, museum to Oakland Hills, site of the 90th the history of the PGA Championship.” marketing for the Omni Detroit Hotel in Detroit. [email protected] PGA Championship to be held Aug. 4-10. — Jason Deegan DETROIT BUSINESS MAIN 06-23-08 A 13 CDB 6/19/2008 3:18 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:MEETINGS & CONVENTIONS

Soon-to-open Book Cadillac 'OLFATITS0URESTx 2OSCOMMON -ICHIGAN ATA&RACTIONOFTHE#OST

already attracting events 4HEBESTWAYTOENJOY &OREST $UNESISASAMEMBERAND BY LEAH BOYD PROPERTYOWNER.OW &RACTIONAL SPECIAL TO CRAIN’S DETROIT BUSINESS /WNERSHIP OFFERSYOUBOTH he Westin Book Cadillac Detroit is like a native GOLFCLUBMEMBERSHIP AND son moving back on the block — and the OWNERSHIPOFABEAUTIFULLY neighborhood plans a big welcome home. DESIGNEDANDFURNISHEDHOME T The hotel, approaching its grand reopen- STARTINGAT  ing in October after more than a year of reconstruc- tion, reports steady bookings for events and conven- tions, with some events confirmed as far in advance as 2010. $ONT7AIT&RACTIONAL “Because it is the Book Cadillac, there is this cu- /WNERSHIPOPPORTUNITIES riosity and this want to be the first to experience it,” ARELIMITED said Scott Stinebaugh, director of sales and market- ing. “Obviously we are not completely immune from the economic situation in Detroit and the challenges that every other property is experiencing, but there RENDERINGS COURTESY OF WESTIN BOOK CADILLAC DETROIT seems to be an allure and magnetism to this project.” The Woodward Ballroom will be the largest in the hotel. h)CONSIDER&OREST$UNES'OLF#OURSE Nearly 60 events have been booked for the hotel’s TOBEINTHETOPTHREEWITHWHICH) 39,000 feet of functional space, including its four main HAVEEVERBEENINVOLVEDINTHE5NITED ballrooms and five smaller meeting rooms. 3TATESv4OM7EISKOPF Stinebaugh said most of the bookings are concentrat- ed in the first 15 months of business, including a busy holiday season. He said 3UBSTANTIAL-EMBERSHIP)NCENTIVESAREAVAILABLE the few events booked WITHEVERYREALESTATEPURCHASE &RACTIONALGOLFCLUB We are not two years from now are MEMBERSHIPISOPTIONALANDINADDITIONTOPROPERTY “ expected to be quickly PURCHASEPRICE completely joined by others once the hotel opens. immune from The Italian Renais- #ONTACT4HE2EAL%STATE#ENTERFORDETAILSAT  4HE $UNES sance-style hotel closed REALESTATE FORESTDUNESGOLFCOM\WWWFORESTDUNESGOLFCOM\    the economic in 1984 after 60 years as a premier accommoda- situation in tion. It was the tallest ho- Detroit ... but tel in the world when The Venetian Ballroom is being re-created based on built in 1924. historical photographs. there seems to be The $180 million restoration of the 33-sto- 2 BALLROOMS, 2 STYLES ry building, headed by an allure and The designs of the two ballrooms at the Westin Book the Cleveland-based Fer- Cadillac Detroit contrast starkly. magnetism to chill Group, began in Au- The Woodward Ballroom will be the largest and most gust 2006. contemporary in the hotel, with modern features this project. Significant interest including a roll-up door and platform system able to lift ” has come from the busi- vehicles into the 7,666-square-foot room, which can Scott Stinebaugh, ness community — near- hold 1,000 guests and includes riggings to hold heavy is pleased to offer director of sales ly half the events booked audiovisual equipment. and marketing, so far fall into the catego- The hotel’s historic Venetian Ballroom, meanwhile, has Westin Book ry of corporate-associa- intricately sculpted moldings and cove lighting Cadillac Detroit reminiscent of a royal palace. tion — but the social seg- “I walk into this room and think, they just don’t build ment is expected to them like this anymore,” said Scott Stinebaugh, ultimately drive events revenue. Per-plate prices are director of sales and marketing for the hotel. not yet final. The 4,756-square-foot ballroom is being re-created Stinebaugh said he’s received calls from people based on photographs and salvageable pieces of the wanting to get married in the hotel because their par- original room. ents were married there and others who find the ho- — Leah Boyd tel’s history an intriguing asset for hosting special oc- casions. promote the hotel. The Venetian Ballroom, with its elegantly sculpted Detroit’s new downtown Vegas-style casino-hotels Baily Tower molding and chandeliers hand-made in Italy, is the are competition, but Charles Skelton, president of 244,062 square foot Corporate Headquarters building most popular room, Stinebaugh said. The 4,756- Hospitality Advisors (offices in Ann Arbor and Bloom- Available for immediate occupancy square-foot room is being restored to its original look. field Hills), said he doesn’t think the Westin Book Naming rights Cadillac will be an underdog. The Crystal Ballroom (2,631 square feet) and the ÇÊvœœÀÃÊUÊ,i“>ÀŽ>LiÊۈÈLˆˆÌÞÊvÀœ“ʇÇx “I think (being) the non-casino hotel for the com- Italian Garden room (1,753 square feet) also are being "˜‡ÃˆÌiʓ>˜>}i“i˜ÌÊUÊ*ˆV˜ˆVÊ>Ài>ÃÊ>˜`Ê«>̈œÃ mercial business demand has a little bit of an advan- restored. The Woodward Ballroom (7,666 square feet) À>“>̈VÊvՏ‡ iˆ} ÌÊ>ÌÀˆÕ“ÊUÊ iÜʏœLLÞ tage,” said Skelton. “I’m not saying business travelers is the only ballroom that didn’t exist in the original iÜÊiiÛ>̜ÀÃÊUÊ iÜÊVœ““œ˜Ê>Ài>à aren’t going to go to the casino, but I think they will hotel. It has a contemporary design and is the largest, think twice before putting on their expense accounts with room for 1,000 guests. For leasing information, please contact: that they hosted a business meeting at a casino hotel.” Other meeting rooms range from about 400 square >ÀŽÊ œˆ˜ÃÊÓ{n°Îx£°ÓäÓ£ feet to 2,200 square feet. The Detroit Metro Convention & Visitors Bureau also ,i˜éiÊ iÊ-«i`iÀÊÓ{n°™ÎÈ°Èn£™ The hotel’s full-service catering department will of- expects the Westin Book Cadillac to attract different ivvÀiÞÊ °Ê iÊÓ{n°Îx£°ÓäÇ{ fer as much variety as the hotel’s meeting rooms, customers than the casinos’ hotels, but Michael www.cbre.com/detroit Stinebaugh said, working with customers to create O’Callaghan, the bureau’s executive vice president menus. The hotel is in the process of selecting an ex- and COO, hopes that will ultimately enhance the Redefining Baluster Park as a Destination Not an Address ecutive chef. area’s competitiveness. Stinebaugh said the hotel will open on time for “I believe the entire package of the new hotels will www.emmesco.com | 5750 New King St., Troy, MI 48098 booked events. help the entire region compete for conventions,” he Meanwhile, its marketing team is promoting the said. “The Book Cadillac is unique in that it’s a hotel via direct sales staff, online advertising, trade restoration of a historic property and will draw shows, and local and national trade publications to clients who have a real appreciation for it.” DETROIT BUSINESS MAIN 06-23-08 A 14 CDB 6/19/2008 2:08 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS June 23, 2008 MARKET PLACE PEOPLE CONSTRUCTION gram management, Hella Electronics ANNOUNCEMENTS & BUSINESS & Corp., Plymouth, from general manag- Len Moser to vice president, national IN THE SPOTLIGHT SERVICES INVESTMENTS sports group, Barton Malow, South- er, cockpit division, Siemens VDO, field, from project director. Also, Ryan Warren Knipple Auburn Hills. AUCTIONS BUSINESSES FOR SALE Maibach to vice has been Kim Frazier to environmental, health president, special- named and safety manager, ND Industries, NOTICE OF SALE 30 Year Established Downtown Wyandotte Gift ty contracting, president of Clawson, from safety engineer, Akzo Shop For Sale. Business & Bldg One Price. Oak Park, from U.S. Nobel Coatings Inc., Madison Heights. PUBLIC AUCTION Inventory extra. Owner retiring/not closing. MICHIGAN DEPT. OF TREASURY Training available. Principals Only 734-556-0858 director of spe- operations for Eric Brown to national sales manager, cialty contract- Mich Dept of Treasury to auction five Liquor Austria-based aftermarket brake division, Wolverine Licenses: Two Class C & SDM w/Sunday INVESTMENT OPPORTUNITIES ing. Trotec Laser Advanced Materials L.L.C., Inkster, sales and One Class C w/Sunday Sales, all lo- Inc., which from automotive account manager, cated within Macomb County, minimum bid Seeking Investor for Restaurant/Lounge Venture DISTRIBUTORS manufactures Hoerbiger Drivetech, Auburn Hills. Located In the Greater Detroit Metropolitan Area for each license is $25,000.00. Two Oakland Adam Edwards to lasers for Richard McCracken, consultant, to County Licenses will also be auctioned, One Situated Near Sports & Entertainment Venues operations man- cutting, chairman of the board of directors, Class C w/Bar permit (minimum bid $35,000) For More Info Contact: Attorney Randy M. Wright Knipple At Berry Moorman P.C. (248) 645-9580 marking and Noble International Ltd., Troy. Also, and One Class C Resort License Transferable ager, Atlas Oil Co., Maibach Taylor, from oper- engraving. Gerald Picard, retired head of the fi- through out the State (minimum bid $50,000). nancial department, stainless divi- Auction to be held Tuesday July 1st, 2008 at EQUIPMENT & ations manager, Michigan Roads, Knipple, 45, will be based at the sion, ArcelorMittal, New York City, to 41300 Dequindre, Ste 200, Sterling Heights, MERCHANDISE Trenton. company’s North American MI @ 10:00 a.m. Minimum bids are due at member of the board of directors; and headquarters in Ypsilanti. James Thomas, COO of Micro Lamps conclusion of sale. Balances are due within 24 AVIATION FINANCE hours of sale. All payments must be cash, cer- He replaces Orlan Hayes, who will Inc., Batavia, Ill., to member of the tified funds or money order made payable to Shannon Smith to now lead the company’s marking board of directors. the STATE OF MICHIGAN. NO CHECKS. CORPORATE JET LEASE marketing pro- and cutting business lines. There may be additional fees associated with Beat the high cost of aircraft charter! gram manager, Knipple had been CFO at Windows Meadowbrook In- the transfer of the license. For more info con- Corporate jet available for lease by the Holding Corp. in Cleveland. PEOPLE GUIDELINES tact I. Miller - Warrant Officer. 586-997-6646 hour. 540 mph with coast-to-coast surance Group or 586-997-0801. capability. Carries 6 passengers Inc., Southfield, Announcements are limited to comfortable. Restroom on board. For from vice presi- Power Co., Troy, from customer ser- management positions. Nonprofit vice coordinator. Also, Stacy Biglow more info, email: [email protected] dent of marketing and industry group board BUSINESS SERVICES and distribution, to customer service coordinator, from assistant engineering coordinator. appointments can be found at Lincoln General www.crainsdetroit.com. Send COMPANY EXPANDING? MISCELLANEOUS Insurance Co., Real estate developer will finance your company’s Chicago. MARKETING submissions for People to Joanne real estate expansion or next facility anywhere LIQUIDATION SALE: Scharich, Crain’s Detroit Business, in the continental US. BEAUTIFUL ART /OIL PAINTINGS & Smith Brady Ferron to director of business Contact David Kaleel: 586.228.8800 x-23 HOME ACCESSORIES HEALTH CARE development, MJM, Dearborn, from 1155 Gratiot Ave., Detroit, MI CALL(313) 531 - 6000 48207-2997, or send e-mail to Sharona Shapiro vice president, account services, expe- riential team, Aspen Marketing, Lake [email protected]. Releases TRANSLATION TRANSCRIPTION OFFICE FURNITURE to director of de- ƒ Orion. must contain the person’s name, INTERPRETATION SERVICES velopment, Huron new title, company, city in which Automotive, Business, Engineering, Legal Office Furniture Sidewalk Sale Valley-Sinai Hospi- NONPROFITS 300 chairs, $19 - $39. Lateral files - $99. tal, Commerce, the person will work, former title, European, Asian and African Languages 100’s of desks, files, tables and more. to executive director, from Michigan Mori Richner The former company (if not promoted The KAN Group, LLC Translation Co. June 25 - 27, 9 a.m. to 9 p.m. 15431 W. 11 Mile Blackbird Theatre, Ann Arbor, from Road, East of Greenfield. 248-521-1122 area director, the from within) and former city in (313) 566-0546 [email protected] COO, Richner & Richner, Ann Arbor. ƒ MUST SELL, OFFICE CLOSED American Jewish which the person worked. Photos Desks $99, Chairs $39, Files $49, Partitions $50, Committee, are welcome, but we cannot Lateral Files $99, Cubicles, Office Phone Systems Bloomfield Hills. SUPPLIERS guarantee they will be used. FINANCIAL SERVICES Call (248) 548-6404 or (248) 474-3375. Alan Koffron to di- Mark Brainard to vice president of pro- TELECOMMUNICATIONS rector of multi-or- CAPITAL AVAILABLE Shapiro gan transplanta- LUCENT . . . AVAYA. . . PARTNER. . . tion, Beaumont Hospital, Royal Oak, If you have an opportunity that requires from medical director, living donor funding but does not fit traditional MAGIX. . . VOIP. . .LEGEND . . . banking parameters - contact us. We do MERLIN. . .SPIRIT Systems/Parts New/refurbished. liver transplant program, Northwest- Omnicall Equipment Corp. (248) 848-9282 not fund senior/mezzanine debt or ern Memorial REAL ESTATE working capital. We focus on special WE HAVE USED PHONES Hospital, Chica- situations with investment size ranging Nortel, Lucent, phone systems. Almost any new or go, and associate $500K to $10 million. Total used phone available. Expert installation available. professor of trans- AUCTIONS Call (248)548-6404 committed capital of $100 million. We plantation have an in-house legal team, can think surgery, Feinberg 6 Lots Available At Auction "outside the box" and act quickly. Call Us For Personalized School of Medi- Bank Ordered Sale 1 Selling to Highest Bidder! Please refer to www.etccapital.com cine, Northwest- or call 248-560-0203 ext. 101 Service: (313) 446-6068 ern University Autumn Park in Novi New on the market. Six premium lots in for more information. the newer, established subdivision of CLOSING TIMES: Monday 3 p.m., Medical School. Also, Michael Autumn Park. Tucked away off Beck Rd. one week prior to publication date. between 9 and 10 mile Rd in Novi, this Chancellor to di- LEGAL SERVICES - IMMIGRATION Please call us for holiday closing times. subdivision is a rare find. Rolling hills and Chancellor rector of the neu- larger lots in a beautifully landscaped FAX: (313) 446-1757 rourology pro- neighborhood will provide you with a N. Peter Antone gram, from director of the E-MAIL: [email protected] beautiful setting to build your dream home. AV-rated Immigration Attorney neurourology and female urology pro- Don’t miss this opportunity, call for more Adjunct Professor Immigration Law at MSU INTERNET: www.crainsdetroit.com/classifieds grams, University of Pittsburgh Med- information. Beth Rose, CAI Auctioneer Antone, Casagrande & Adwers, P.C. ical Center, Pittsburgh, Pa. 31555 W. 14 Mile Road, Suite 100 Confidential Reply Boxes Available Rose Auction Group, LLC On-site Thurs. June 26th at 6pm Farmington Hills, MI 48334 HOSPITALITY 877-696-7653 Phone (248) 406-4100, www.antone.com PAYMENT: All classified ads must be roseauctiongroup.com Preview & Registration at 5pm prepaid. Checks, money order or John Timko to business travel sales Crain’s credit approval accepted. manager, Westin Book Cadillac De- Credit cards accepted. troit, from travel and leisure sales co- BANK ORDERED PUBLIC AUCTION MISCELLANEOUS ordinator, Starwood Hotels & Resorts Phoenician Resort, Scottsdale, Ariz. June 30th, 2008 - 1:30 pm at Colliers International Office DON’T WAIT OUTSIDE THE STORES See Crainsdetroit.com/Classifieds Reserve your copy of NFL Madden’s ’09 now while supplies last. Please call 215-468-6352 for more classified advertisements INFO/TECHNOLOGY 2 Corporate Drive, Suite 300 ~ Southfield, MI 48076 Mike Buell to vice president of sales • Industrial • Commercial• Retail • Vacant Land • Residential Lots BUSINESS OPPORTUNITIES and marketing, G/S Leasing Inc., Troy, from vice president of sales, Ed- • 16,000 SF Industrial Building - Gladwin, MI Business Opportunities cor Data Services, Pontiac. • 13,792 SF Industrial Building - Fraser, MI BUY A GREAT JOB! LAW Multi-Property • 39,296 SF Industrial Building - Fraser, MI TWO OF THE STATES TOP RATED “SPORTS BARS” David Anderson to partner, Collins, Einhorn, Farrell & Ulanoff P.C., South- • 13.18 Ac Vacant Land - Groveland Twp., MI Champ’s Pub Fraser’s Pub field, from associate. Sale 140 Grand River, Brighton 2045 Packard, Ann Arbor R. Christopher Cataldo to practice • 8,090 SF Retail Building - Detroit, MI People’s Choice Award Business, Building & group coordinator, litigation group, winner - Great Reputation Liquor License Jaffe Raitt Heuer & Weiss P.C., South- SALE: $1,400,000 • 292,134 SF Industrial Building - Pontiac, MI SALE: $1,950,000 field, remaining as partner. • 3 Vacant Residential Lots - Midland, MI Other Business Opportunities MANUFACTURING Main Street IX Restaurant Back Alley Gourmet W. Timothy Yaggi to group president, • 3,061 SF Commercial Building - Charlotte, MI 39 Main Street, Milan, Highly successful catering & Masco Corp., Taylor, from executive For brochure, terms of Restaurant/Bar - building also restaurant, downtown vice president, market operations, • 2,500 SF Retail Building - Inkster, MI (ABSOLUTE) available for sale Ann Arbor. 611 Main St. sale and bid packet call: SALE: $350,000 SALE: $1,850,000 North America, Whirlpool Corp., Ben- ton Harbor. Len Tosto or Scott McGinnis • 4 Lots - Idlewild, MI (ABSOLUTE) Jeff Dewitt to vice president of engi- Susan Moore Jim Chaconas neering, Maxitrol Co., Southfield, from 248.540.1000 • Residential Cabin - St. Helen, MI (734) 995-1937 (734) 995-1807 director of production engineering. [email protected] [email protected] Margaret Santamaria to Midwest re- Or visit www.colliers.auctions.com gional sales coordinator, Controlled DETROIT BUSINESS MAIN 06-23-08 A 15 CDB 6/19/2008 2:13 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 15 CALENDAR troit Athletic Club. $100 members, rum. Attendees should come ready WEDNESDAY THURSDAY $150 others. Contact: (248) 208-9915. COMING EVENTS with a 30-second “elevator” speech to JUNE 25 JUNE 26 How to Finance Your Business: Where share with the group. Infiniti of Troy is the Money? 6-8:30 p.m. July 9. East- Dealership, Troy. $20 members, $25 The Nuts & Bolts of Internet Marketing. CFO of the Year Awards. 5-9 p.m. ern Michigan University Michigan others. Add $10 to registrations re- 5:30-8 p.m. Automation Alley. Presenta- Crain’s Detroit Business. Includes net- Small Business and Technology De- ceived after July 11 and at the door. tions by biznetis.net, The TM Group working, awards program and SATURDAY velopment Center. Discusses the Contact: (877) 633-3500. Inc., Curve Detroit, and Allegra Print & strolling dinner. , JUNE 28 sources of funding including personal Imaging. Automation Alley, Troy. $20 Oakland University, Rochester Hills. saving, family, friends, second mort- Motown in the Courtyard. 4:30-7:30 gage, credit cards, nonbank mi- members, $40 others. Contact: (800) 427- $90. Contact: (313) 446-0300. p.m. Detroit Young Professionals. ALENDAR GUIDELINES 5100. croloans, special government loans, C Dining, drinking and dancing in the grants from government, angel invest- More Calendar items can be found hotel’s courtyard while local bands ment and venture capital. EMU small on the Web at www.crainsdetroit. State of Michigan Conference for Pub- play Motown. The Ritz-Carlton, Dear- business center, Detroit. $30. Contact: com. Please send news releases lic Purchasing Professionals. 7:30 FRIDAY born. Complimentary entertainment (313) 967-9295. for Calendar to Joanne Scharich, a.m.-6 p.m. National Association of JUNE 27 with food and drink specials. Contact: [email protected]. Crain’s Detroit Business, 1155 Women Business Owners, Greater De- Networking and New Member Wel- Public Policy Luncheon. 11:30 a.m.-2 Gratiot Ave., Detroit, MI 48207- troit Chapter, Schoolcraft College and come. 7:30 a.m. July 17. Inforum, The 2997, or e-mail jscharich@ p.m. Michigan Hispanic Chamber of the Michigan Economic Development Residential Green Building Design. 2-4 Suburban Collection. The public is crain.com. You also may submit Commerce. With Michigan Senate Corp. Schoolcraft College, Livonia. p.m. Museum of Contemporary Art welcome to attend to network with In- Calendar items in the Calendar Majority Leader Mike Bishop and $40. Contact: Amy Marshall, (313) 961- Detroit, Detroit. Free. Contact: forum board members, peruse the In- section of crainsdetroit.com. 4748. Speaker of the House Andy Dillon. De- [email protected]. finity showroom and learn about Info- REAL ESTATE

COMMERCIAL PROPERTIES INDUSTRIAL PROPERTY AUCTIONS INVESTMENT PROPERTY

FOR LEASE 2,200-3,000 sq. ft. Office / Retail / Drycleaners AVAILABLE NOW Minimum Bid Auction U of M Student Housing - Prime Locations Near M-59 & I-75 Call 248-210-7995 4,000 to 100,000 sq. ft. FOR SALE OR LEASE Also 10,000 & 25,000 sq. ft. 909 Sylvan 1012 Michigan Avenue A Large Variety Of Gas Stations, Restaurants, and Free Standing Bldgs w/truckwells. 8 bedrooms, 3 Baths 6 Bedrooms, 2 Baths, Retail & Office Properties. 1 Mile from Metro Airport 6 parking spaces, 8 CAP 6 parking spaces LaHood Realty 313-885-5950 SALE: $1,716,660 7 CAP rate INDUSTRIAL PROPERTY REA CONSTRUCTION SALE: $448,800 (734) 946-8730 Crane Building, Marysville, MI 817 McKinley Street 1303 S. State Street 199,000 sq. ft, 20.73 Acres, 32 ft. ceilings. Also Heavy Industrial 7 Bedrooms, 3 Baths, 6 Bedrooms, 3 Baths 7 overhead cranes. $2.4 Million. Kramer Realty. Land Available 10611 Lighthouse Point, South Lyon 5 parking spaces. 8 CAP Directly across from new 810-841-2500 www.reaconstruction.net SALE: $529,200 football practice arena. Leasing 4 Units - 12,000, 24,000, 50,000 & 106,000 Minimum Bid $1.8 Million SALE: $428,400 s.f. @ Burt Indust’l Pk. (I-96/Telegraph), Very Clean, Dry, Well-Maint., Docks, Truck Pkg, EZ Freeway Last list price of $3.63 Million 418 E. Kingsley 1601 South University Access. (248) 356 - 5466 Auction on-site July 13th at Noon 2 2- Bedrooms, 1 Bath &, 5 Bedrooms, 3 Baths, INVESTMENT PROPERTY INVESTMENT PROPERTY 2 3-Bedrooms, 1 Bath 3 parking spaces. Preview & Registration at 10am units. Under renovation 6 CAP Rate Live in a resort every day of your life. This home LYON TOWNSHIP/BANK OWNED 50 ACRES Unique property, borders beautiful Rattle SALE: $831,600 SALE: $444,960 Run Golf Course on 2 sides. Great view! Wooded is designed and built to perfection providing every 12-unit rental townhouse project available. possible amenity you could want with superior Get a great deal on this investment opportunity. w/gorgeous trees, pines & creek. Splits avail. 825 ft x These are just some of the income properties that Contact Herb Lawson at 248-290-5300 ext. 302 2640 ft. Small home on SE corner. 810-329-2117 quality and customization throughout. Sits on a Jim Chaconas, CCIM one-acre lake front lot and is beautifully custom we have available. Email us for a complete listing AUCTIONS landscaped with fountains and waterfalls. From of our income properties: [email protected] (734) 995-1860 the moment you step foot into this 10,000+/- square foot five bedroom, five and one-half bath home with four fireplaces and an elevator you will OFFICE SPACE WATERFRONT PROPERTY be amazed by the superior design, quality workmanship and attention to detail. Call today Bloomfield Hills "A" Office -- Window office(s) LUXURY WATERFRONT PROPERTY Land Auction for open house information or to request a available in existing law firm suite; optional secretarial brochure! station; includes library/conference room and kitchen; Located in Palm City Florida for sale or 877-696-7653 optional use of internet, fax, copier and scanner - exchange for like property in Oakland Rose Auction Group, LLC 248-645-1450 77 Lots Available Beth Rose County, Michigan. 10 Selling to Highest Bidder! roseauctiongroup.com CAI Auctioneer WAREHOUSE STORAGE SPACE

Brighton Township! Minimum Bid Auction WAREHOUSE/ STORAGE/ DELIVERY AVAILABLE • 7,000 - 14,000 Sq. Ft. Industrial • Dry/cold storage • 20’ ft. Clear w/loading dock • Pontiac $1900-$2900/Month Gross 248-291-0590 Warehousing - Local Delivery - Taylor MI Metro area / Cross Border Trucking Freight Brokerage -Truckload & Partials 609 SW Bittern St., Stuart, FL 34990 www.MRTRANSPORTATION.COM 734-946-7031 Elegant 2 story estate home, 3 Bedrooms + Take advantage of this opportunity to purchase one or all of these premium additional Bdrm/Office/Den, 4 Bath, Sauna, WATERFRONT PROPERTY site-condominium lots in the open space community of Hillsborough Estates. Walk Thru Botanical Garden, Pool/Waterfall, Conveniently located near US-23, M-59 and I-96 in the Hartland School 8679 Stoney Creek Dr., South Lyon Boat Club/Marina, Lake Nepessing- Jacuzzi Spa, 400+' Frontage, Deep Water District, this incredible subdivision offers many choices in lot size, shape and Lapeer Area. 13 acres, 3600 sq. ft, catering Dock, Private Beach. elevation to suit the specific needs for your custom home. 77 lots available with Minimum Bid $799,900 hall and pavilion, 200 ft. lake frontage, 10 $2,500,000 10 to sell absolute to the highest bidders! Bring your builder and purchase your Last list price of $1.2 Million acres and development land on channel. lot at auction. Call Bob at 419-205-0771 Mike Novik Auction on-site July 13th at 11am 248-755-5225 888-592-1301 Preview & Registration at 9am Why drive “Up North”? On-site Sat. June 28th at 11am This home will impress you from the first moment you walk in the door while maintaining the highest level of Registration at 9am quality in building and design. First floor master roseauctiongroup.com bedroom with fireplace, wet bar, his and her walk-in Rose Auction Group, LLC closets. The Master bathroom has a 6x5 custom shower with his and her vanity sinks, heated floors, and Beth Rose, CAI Auctioneer 877-696-7653 SummerReady 2008 for a safe. Four season room, also with heated floors and fan to relax and enjoy the view of your own Sale/Lease Back Opportunity landscaped backyard which backs up into a nature Public Auction reserve. Open great room with custom shelves to the 12752 Stark Rd., Livonia, MI ceiling with entrance to all season room. Large eating area with vaulted ceiling. So much more! Call today for Enjoy 365 days of that Great “Up North” On-site Thurs July 10th at 2pm open house information or to request a brochure! Experience at Hilton Pointe Estates on Preview & Registration at Noon 877-696-7653 Don’t miss the opportunity to purchase this Rose Auction Group, LLC Beth Rose 300 acre Woodland Lake in Brighton. 17,850+/- Sq. Ft. large light industrial building roseauctiongroup.com CAI Auctioneer • 1-Acre Lakefront Estates • Paved private road more than 70% leased. Well maintained two- story Zoned M-1 Industrial building offers great income potential. Located • Spectacular Sunsets • All-Sports Lake CRAIN’S CLASSIFIEDS • • Showings by Appointment conveniently near I-96 in Wayne County. Highly Private Docks 15 Minutes West Of Novi desirable and current business is extremely lucrative. WORK! • Award-Winning Schools •15 Minutes North Of A.A. Rose Auction Group, LLC This building has had major renovations and has To Place Your Ad Call been updated throughout. Current long term (313) 446-6068 Custom home plans available by Vantage 877-696-7653 tenants. 1.77 acres and has a large paved parking roseauctiongroup.com or area. Lease back possibility with 12% ROI. This is a Fax (313) 446-1757 For more details please visit www.hiltonpointeestates.com Beth Rose, CAI Auctioneer quality property with good income potential. or call Vantage Construction at 810.220.8060 DETROIT BUSINESS MAIN 06-23-08 A 16 CDB 6/19/2008 2:17 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS June 23, 2008 BUSINESS DIARY ACQUISITIONS Hotel Investment Services, Troy, has The site is at www.installmichigan. also was appointed leasing agent for Health Partners Inc., a Southfield- entered into agreements with JPMM com. the office space at Bloomfield Park, an based home health care company spe- Edwards Promotional Group Inc., Hospitality L.L.C. to manage the Hilton 88-acre mixed-use center to open in cializing in spinal cord and closed- Rochester, was bought by Pine State JankowskiCo., a Troy advertising Garden Inn, Plymouth, and with JP agency, created a new brand cam- fall 2009 in Bloomfield Hills. head injury nursing services, has Enterprise Inc., Berkley. opened its fifth office in Michigan in Plymouth Properties L.L.C. to manage paign, “Doctors in Demand,” for the Forte Belanger, a Troy special-event the Fairfield Inn by Marriott, Livonia. Petoskey. CONTRACTS Wayne State University Physician design firm and corporate caterer, has Oakland Community College and the Group, Detroit. announced preferred caterer status at Mackevision, a Stuttgart, Germany- Tele Atlas, a Netherlands-based com- based 3D and CGI post-production Madison Heights School District are to TechTeam Global Inc., Southfield, has the GM Heritage Center, Sterling pany with offices in Novi, has extend- launch a pilot project this fall that en- Heights, for external client events. agency, has incorporated in the U.S. ed an agreement with Denso Corp., entered into an agreement with Rain- and opened its first U.S. office in Pon- ables the district’s high school students maker Asia Inc. to establish service Southfield, to supply Denso’s in-vehi- to enroll in OCC classes at tiac. Mackevision is a creative part- Madison desk operations in the Philippines. EXPANSIONS cle navigation systems with Tele At- High School. At the same time, the col- ner for automotive and consumer las’ digital maps and content for lege’s Royal Oak campus will offer Media Genesis, Troy, was selected by Clark Hill P.L.C., Detroit, is opening a goods manufacturers and advertising North America. physical education and other classes the Detroit Regional Chamber as the Washington, D.C., office in June to agencies and is expanding its focus in Azure Dynamics Corp., Oak Park, has for its students at the high school in the design vendor for the Detroiter Online, serve as the hub of its growing govern- the U.S. automotive sector and enter- received an order from AT&T for 15 late afternoons and evenings. Courses the newly redesigned Web site for the ment and public affairs group. The tainment industry. gasoline parallel hybrid electric Ford in English and physical education will chamber’s magazine. firm’s office will be at 1250 I St. NW. Kostal North America has opened its E-450 vehicles. be the initial offerings this fall. Jato Dynamics, an Auburn Hills auto- Johnson Controls Inc., Plymouth, is Center of Excellence, 350 Stephenson Stephen Auger + Associates Archi- Goyette Mechanical of Pontiac an- motive data and intelligence compa- building a new manufacturing plant Highway, Troy. The automotive com- tects, Lake Orion, has been awarded nounced the award of a HVAC service ny, has formed a partnership with Iz- in West Point, Ga., to build and supply ponents supplier’s new 78,000-square- the contract to provide architectural contract for The Scripps Mansion in mocars, a San Francisco-based vehicle seating and interior products foot facility includes customer confer- analysis and design services for the Lake Orion. producer of interactive media content to Kia Motors Manufacturing Georgia ence rooms and an exhibit area, an St. Vincent de Paul Parish, Pontiac. for the automotive industry. Inc. When it launches production in expanded fully A2LA-certified design DesignHub Inc., Saline, designed and verification lab, a prototype build RDA Group, a Bloomfield Hills market- developed the Web site for INSTALL CB Richard Ellis, Southfield, has been fall 2009, the plant will supply seat sys- tems and door panels for a Kia SUV. room, a warranty analysis test area research and consulting firm, has Michigan, a Farmington Hills-based retained as the exclusive listing bro- and a vehicle test garage. named Bianchi Public Relations Inc., partner with the International Stan- ker for Baluster Park, an eight-build- Panera Bread has a bakery-café at 100 Troy, its public-relations agency of dards and Training Alliance training ing, 1.2-million-square-foot office cam- N. Old Woodward Ave. in Birming- record. program for floor-covering installers. pus in Troy. The real estate company ham. Telephone: (248) 203-7966. LITERATURE The Backyard Excursions Travel Ideas Resource Guide, published by Avanti Group, Canton Township, is an annual guide to day trips, weekend getaways and vacations in the Great Lakes states and Ontario. Complimentary CAREER MOVES copies are available at AAA offices, Welcome Centers, libraries, museums GENERAL SALES SALES GENERAL and other locations. Web site: www.backyardexcursions.com. Director Of Logistics Sought: GROUP HEALTH INSURANCE SALESPERSON Departmental Analyst-E/ Growing Troy agency seeks group health producer, Lottery Instant Games Coordinator MERGERS We are looking for a highly qualified and preferably with an existing book of business. Exciting motivated person to develop and manage opportunity for a self-motivated individual. Respond is located in Ingham Co./Lansing, MI. Silverman, Kaplan & Sakwa CPAs our new logistics division. Full job confidentially with resume to: [email protected]. Responsibilities involve managing and P.C., Southfield, has announced the description at EAGLEEXP.COM. coordinating instant games and internet-based merging of the firms Jacquelyn Hess Call 1-800-933-0215 or email: ADMINISTRATIVE VIP club promotional activities. To apply see CPAs P.C., Farmington Hills, and Eric [email protected] Michigan Civil Service web site for details at Leib CPA & Associates, Southfield, http://www.state.mi.us/mdcs, select state job into its firm. posting. Cover letter and resume must include ADMINISTRATIVE posting number 2795DeptA2 and received in the HR office no later than 4:45 p.m., Friday, MOVES June 27, 2008. ITC Holdings Corp., an independent electricity transmission company, has Director of Business moved its world headquarters to 27175 MANAGEMENT Commercialization Incubator Energy Way in Novi. The new 188,000- square-foot building includes such Kettering University seeks qualified appli- General Manager: Greater Media Marketing cants for this position. Minimum require- Greater Media Detroit is currently seeking a General green aspects as a walking path, floor- Sales Manager to oversee and manage the success to-ceiling windows to maximize day- ments include an MBA and 5 years of rele- of the Greater Media Marketing department. The Chief Executive Officer vant experience OR a Bachelor’s degree light, recycling bins on each floor, and ideal candidate has a minimum of five years of highly reflective fluorescent and com- with a minimum of 5 years experience in media management experience that includes the Girl Scouts of Southeastern Michigan incubation and small business start-ups. For oversight of event marketing opportunities, non- pact fluorescent lighting. Detroit Headquarters more detailed information and application traditional radio programs and interactive/online sales LMS North America has opened a new Exceptional opportunity for an accomplished executive with an established management instructions, go to www.kettering.edu, functions, as well as exceeding a departmental reve- and expanded headquarters and tech- record to lead the realignment of four Girl Scout Councils in southeastern Michigan. Will nue budget. Specific duties include: Responsible for nical center at 5755 New King St. in provide strategic and dynamic vision in support of the mission to bring world class click on Career Opportunities at Kettering setting goals and expectations for the department programming to over 50,000 girls. In collaboration with the Council Board of Directors, the and Search Postings for "Director- including an annual budget. Recruitment of sellers, Troy. CEO will direct the senior management team, and lead an organization with a $10MM op- Incubator." Only those who meet the assistants and technical personnel for the erating budget, 100 full and 65 part-time staff, and multiple properties. The ability to required qualifications and submit online department.Develop profitable selling opportunities for on-air, on-line and on-site programs. Maintain a NEW PRODUCTS attract and motivate volunteers and board members to achieve seamless unity is essential, application materials by the closing date along with dynamic skills to lead an organization through rapid change. A minimum of 8 “customer focused” developmental sales environ- MS Plastics Welders L.L.C., will be considered. Excellent benefits/on- ment. Oversee all Greater Media Marketing projects Fowlerville, has introduced a new years’ proven experience and outstanding communications skills are required. Experience campus Recreation Center. that include a detailed profit/loss analysis of each in fundraising, strategic planning, community relations and board governance is a must. EEO M/F/V/D. project. Coach and develop the staff within the flexible plastic welding machine with Corporate executives with dedication to the mission of Girl Scouting who can lead through No phone calls please. department. Provide accurate pacing, pending and a tool-change system, known as the exceptional people relations are encouraged to apply. Advanced degree preferred. predictive revenue reports. Qualified applicants can MS Cartridge. The machine uses ul- Base compensation of $110k+. forward their resumes to trasonic plastic welding energy to join [email protected] No phone calls For consideration, please forward your resume and cover letter to: TECHNICAL please.Greater Media is an Equal Opportunity two parts, especially for the assembly [email protected] or fax to 800-451-1451 Employer of door side panels, consoles and other Girl Scouting builds girls of courage, confidence, and character, Environmental Compliance assemblies. who make the world a better place. Fully Committed to Equal Opportunity M/F/D/V Granger Energy Landfill Gas Projects. Engineering site plan preparation, permitting, STARTUPS compliance, and reporting. Bachelor’s degree Supplemental Nursing Services, 42815 TECHNICAL in technical, civil engineering or other engi- Garfield, No. 209, Clinton Township, neering discipline. Please send resume to: is a temporary medical staffing agency providing staff to all major Have you embraced the newspaper of tomorrow and developed the skills to Personnel Manager - Granger Crain’s Detroit Business P.O. Box 27185 health care organizations in the metro shape that future? , Michigan’s leading local business Detroit area. Supplemental Nursing www.crainsdetroit.com Lansing, MI 48909 or [email protected] weekly, is seeking a skilled Web Editor to advance . Services employs registered nurses, Ideal candidate must have experience with a template-based content certified nursing assistants and allied management system, and possess a strong background in reporting or editing Call Us For Personalized health professionals. Josie Militello print and/or online content. and Ann Marie Vitale are the firm’s Service: (313) 446-6068 founding partners. Web site: www. Familiarity with and enthusiasm for social media, online communities, and other supplementalnursingservices.com. emerging Web technologies is a must. CLOSING TIMES: Monday 3 p.m., Telephone: (586) 226-9100. Skills preferable: one week prior to publication date. • Intermediate- to expert-level HTML/CSS programming abilities; awareness of Web Please call us for holiday closing times. standards; you should be able to build a Web page from scratch DIARY GUIDELINES FAX: (313) 446-1757 • 1-2 years experience using a template-based content management system (preferably E-MAIL: [email protected] Send news releases for Business Saxotech Online) in a newsroom or publishing setting INTERNET: www.crainsdetroit.com/classifieds Diary to Joanne Scharich, Crain’s • Familiarity with and enthusiasm for social media, online communities, and other Detroit Business, 1155 Gratiot emerging Web technologies Confidential Reply Boxes Available Ave., Detroit, MI 48207-2997 or send e-mail to jscharich@crain. • Bachelor’s degree in Journalism, English, Communications or comparable field PAYMENT: All classified ads must be com. Use any Business Diary item Please visit our website at www.crain.com/apply.htm prepaid. Checks, money order or as a model for your release, and in order to apply for this position. Crain’s credit approval accepted. look for the appropriate category. Credit cards accepted. Without complete information, your item will not run. Photos are See Crainsdetroit.com/Classifieds welcome, but we cannot guarantee for more classified advertisements they will be used. DETROIT BUSINESS MAIN 06-23-08 A 17 CDB 6/20/2008 4:55 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: LARGEST OFFICE FURNITURE DEALERS LETTERS CONTINUED ■ From Page 9 The company has made difficult, Ranked by 2007 revenue painful decisions to close sites in New runway not needed Ann Arbor and Holland, but Michi- Company Editor: gan continues to host one of Pfiz- Address Revenue Local communities next to De- er’s largest operations. Pfizer’s ad- Phone, Web site ($000,000) Percent Detroit area Rank Top executive 2007 change employees 2008 Brands of furniture carried troit Metropolitan Airport are ea- vanced pharmaceutical ger to work with airport officials manufacturing site in Kalamazoo Navigating Business Space Inc. $67.0 2% 103 NA to help plan for the airport’s fu- 1. 2595 Bellingham, Troy 48083 County is its biggest anywhere, (248) 823-5400; www.navbus.com ture, using the latest, most re- producing 125 active ingredients Richard Schwabauer, owner and president sponsible information at our dis- and finished medicines for patients WorkSquared L.L.C. 45.1 -20 80 Herman Miller, Herman Miller for posal. Lately, several parties such across the globe. Also, research sci- 2. 46855 Magellan Drive, Suite 100, Novi 48377 Health Care, Sit on It Seating, Geiger, as Detroit Renaissance have (248) 624-2000; www.worksquared.com First Office, Brandrude, Bretford, over entists and technical staff at Pfiz- Dan Rosema, CEO and president 200 additonal manufacturers joined the debate surrounding er’s global headquarters for Veteri- Facility Matrix Group 28.0 -10 43 Herman Miller, Geiger, Meridian, this issue (Letters: “Invest in nary Medicine Research and 555 Friendly Drive, Bloomfield Township 48341 Bretford, First Office, National, ‘aerotropolis,’ ” June 9). Development in Kalamazoo Coun- 3. (248) 334-8000; www.facilitymatrixgroup.com Kimball Though well-intentioned, these David Daugherty, executive vice president and Chris ty work every day on new medi- Sowers, CEO groups have spread distortions cines for livestock and pets. Since that must be corrected, and we Interior Dynamics Inc. 26.7 B 32 48 Knoll, Hon, Gunlocke, others 2003, Pfizer has invested over half a 4. 1742 Crooks Road, Troy 48084 want to shine a light on them. The billion dollars in its west Michigan (248) 244-8910; www.interiordynamics.com first falsehood: A new fifth paral- Ronald Waring, CEO and president operations. In fact, more than 3,500 lel runway is benign. It isn’t. This people go to work for Pfizer in Smart Office Systems 20.4 -5 24 National, United, Global, Izzy, leads us to the second falsehood: 24387 Halsted Road, Suite 1A, Farmington Hills Remanufactured Haworth, Herman Michigan each day. We’re proud to 5. 48335; (248) 324-1963; Miller, Steelcase The runway will go on empty be a strong contributor to the life www.smartofficesystems.com land. It won’t. More than 3,500 Ro- sciences economy of Michigan. Paul Covert, president mulus citizens will be forced out Rick Chambers American Interiors Inc. 17.0 12 NA Knoll, Kimballm, DIRTT of their homes and 800-plus hous- Director, Worldwide Communications, U.S. Region 30553 S. Wixom Road, Suite 200, Wixom 48393 6. es will be torn down. Pfizer Inc. (248) 624-2255; www.aminteriors.com Kalamazoo Lisa Shumway, vice president of sales The runway will also ruin the Interior Systems Contract Group Inc. 16.9 -13 27 Haworth, Kimball, National, Lacasse, local economy by forcing over 40 Expand rail ideas 7. 28000 Woodward Ave., Royal Oak 48067 Krug businesses to close and robbing (248) 399-1600; www.isginc.com Editor: Mary Ann Lievois, CEO Romulus of over $114 million in It is nice to see that progress, taxable value. Which leads to the Interior Environments 14.9 17 20 Allsteel, Gunlocke however incremental and cau- 20700 Civic Center Drive, Suite 250, Southfield third falsehood: Detroit Metro tious, is seemingly being made to- 8. 48076; (248) 213-3010; needs a fifth runway. The true an- www.interiorenvironments.com ward the (re)introduction of elec- Randy Balconi and Steve Cojei, principals swer: Far from it. trified light rail along Detroit’s The airport used outdated 2004 Michigan Office Interiors 14.0 -13 4 Allsteel, OFS premier thoroughfare (“Legisla- 9. 2723 S. State St., Ann Arbor 48104 data to predict its future. We tors, Gilbert, Penske will back (734) 929-9400; www.wmoi.com looked at more recent federal Thomas Schaap, owner light rail on Woodward,” crains- data — and they indicate the air- detroit.com, May 29). Of course, Airea 13.0 0 30 Haworth, OFUSA port doesn’t need a fifth runway. 10. 23231-B Industrial Park Drive, Farmington Hills as others have mentioned, it is to 48335; (248) 426-0100; www.aireainc.com Add these factors to the tremen- be hoped that some sort of sensi- Vinnie Johnson, chairman dous uncertainties facing the air- ble and cooperative arrangement Space Care Interiors Inc. 12.8 3 14 Teknion, National, OFS, Davis, line industry and Detroit Metro can be made between the backers 2222 W. 11 Mile Road, Berkley 48072 Mayline 11. today, and the only responsible of the private plan for light rail to (248) 541-9060; www.spacecareinteriors.com thing to do is pause before build- Kevin Lewis, CEO and Alan Kroll, president Grand Boulevard and those be- ing a runway that we don’t need Kentwood Office Furniture L.L.C. 12.0 9 10 Trendway, Hon, Remanufactured hind the proposal calling for a 12. 40500 Grand River, Novi 48375 Herman Miller and which will harm local fami- publicly funded line extending to (734) 422-5555; www.kentwoodoffice.com lies and the local economy. We Art Hasse, president the Michigan State Fairgrounds. are eager to work with the air- But looking for a moment be- Office Express 6.2 11 23 Hahn, Trendway, OFS port, we are grateful for the extra yond a Woodward line (hopefully 13. 1280 E. Big Beaver Road, Troy 48083 time to resolve our differences (877) 795-2600; www.officeexpressnow.com extending further north than Michael Carr, president and we will proceed with full cau- Grand River), the possibilities for The Casper Corp. 5.5 621NA tion, using the best data and most further expansion from such an 14. 24801 Research Drive, Farmington Hills 48335 accurate calculations. initial start are intriguing. How (248) 442-9000; www.caspercorp.com Keith Johnston James Casper Jr., president CEO about, for example, an extended Johnston Lithograph Inc. spur of the Woodward line, along This is a list of office furniture dealers in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies with headquarters in the Detroit Romulus Michigan Avenue, as far as the dis- area are listed with their total net fee income, and companies with headquarters outside the area are listed by revenue of their local operations only. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA means Dropouts start early used Michigan Central railroad de- not available. NR means not relevant. McMillan Bros. Inc., which ranked No. 16 on last year's list, declined to provide information. pot? This once magnificent and B March 31, 2008 fiscal year end. Editor: majestic edifice could be restored I read with interest the June 2 LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH to its former glory and reborn, both article “Plan aims for smaller as a regional transit center and as schools, fewer dropouts.” I, for the an Amtrak passenger station most part, agree with what was again, serving an Ann Arbor com- written. The part of the equation muter service, and facilitating con- that always seems to be missing venient transfer of passengers and when administrators talk about transit users between light- and dropouts is this: Students physi- heavy-rail modes. Chamber merges leadership programs cally drop out in high school, but And the looming construction they begin to mentally drop out in at some point in the future of a around the fifth grade. BY ROBERT ANKENY newcomers in local history and culture. new, enlarged international rail For any plan to truly be effec- tunnel between Detroit and Wind- CRAIN’S DETROIT BUSINESS Board Connect was created in June 2005 by the tive, the middle school program sor to handle the larger freight chamber and Ann Arbor-based Nonprofit Enterprise at must be examined. Typically, ele- The Detroit Regional Chamber’s Leadership Detroit pro- Work Inc. to recruit and train new nonprofit board cars of today presents another in- gram honored 62 graduates June 19, bringing to more mentary teachers individualize triguing possibility. Why not, at members for local agencies. to meet the needs of the students. than 1,600 those who’ve completed the popular pro- The Executive Orientation Program started in Feb- that point, use the old, existing gram during its nearly 30 years of operation. When these same students are rail tunnels for a light-rail ser- ruary 2007 to help familiarize executives new to the placed in a middle school where That program and two others — Executive Orientation vice connecting the border cities, area — including senior-level executives who arrived everyone is expected to perform and Board Connect — are being merged and revamped in the form of a further extension within two years — with business and cultural issues “on level,” grades begin to fall to stress community leadership development. of a Woodward-Michigan Avenue and institutions. and absenteeism increases. The shift of emphasis has brought the departure of line? The former Michigan Cen- Richard Blouse Jr., president and CEO of the cham- Lynn Perenic three chamber staffers, Barbara Gray, her aide Rodney ber, said in May that “careful deliberation” with volun- Franklin tral depot would be ideally placed Averett, and Carol Mastroianni. teer leaders led to organizational changes to place a for such a service. In addition, a Two new positions being created, a senior director greater focus on cultivating leadership. He said the em- Pfizer is still a force new Amtrak-VIA rail service, and a manager of community leadership development, phasis would be on growing community leaders who Editor: perhaps using the new tunnel, have not been filled, said Robert Rinney, COO of Henry know the area. An unfortunate misconception could connect Montreal and Ford Health System, who chairs the board of trustees of Gray had been executive director of the Leadership found its way into Bill Kalmar’s Toronto with Chicago and use the Leadership Detroit. Detroit program since 2001. She was previously a con- recent column (Other Voices: Michigan Central depot as the The changes reflect “the evolutionary direction of sultant for organizational effectiveness and diversity “Mackinac Policy Conference: A main Detroit stop, at which pas- the programs,” Rinney said, which are now under the strategies at Henry Ford Health System. TV Sitcom Redo,” sengers could again connect with direction of chamber Executive Vice President Thelma Mastroianni ran the Executive Orientation program crainsdetroit.com, June 5). The a local rail system. Castillo. since its inception in 2007. fact is, Pfizer is still alive and Roderick Taylor Leadership Detroit was created in 1980 to ground Robert Ankeny: (313) 446-0404, [email protected] well in Michigan. Ottawa, Canada DETROIT BUSINESS MAIN 06-23-08 A 18 CDB 6/20/2008 7:04 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS June 23, 2008 Suppliers will spend $47.2M for Oakland expansion

BY RYAN BEENE Rayconnect Inc. plans to invest CRAIN’S DETROIT BUSINESS $14.5 million in a new plastics in- jection molding assembly plant Two Oakland County auto sup- and headquarters in Rochester pliers plan to invest $47.2 million Hills. It will receive a 7-year, $2.5 in expansions at facilities in Farm- million state tax credit from ington Hills and Rochester Hills. MEGA, which was awarded to in- Mahle Industries Inc., a subsidiary fluence the company to choose of Germany-based Mahle GmbH, Michigan for its facility over a chose to expand its North Ameri- competing site in South Carolina. can technical center in Farming- The Michigan Economic Develop- ton Hills over a competing site in ment Corp. said it would also pro- Tennessee. Mahle makes automo- vide $120,000 in job-training assis- tive and heavy-duty engine compo- tance funds. nents. Rochester Hills is considering a The company will invest $27.6 tax abatement of $862,000 to sup- million for the 45,000-square-foot port Rayconnect’s expansion, ac- expansion. The company was cording to the MEDC. granted a $2.5 million state tax The facility is expected to retain credit over 7 years by the Michigan 360 jobs in Michigan, including 148 Economic Growth Authority and a lo- at Rayconnect and its parent com- cal tax abatement. pany A. Raymond Inc., a global sup- The expansion is expected to plier of fastener systems. create 155 jobs, with an additional Ryan Beene: (313) 446-0315; 169 indirect jobs. rbeene@ crain.com

Fraud: 28 indicted ■ From Page 1

owner or partner of Rain Maker In- in mortgage fraud in 2007 for the vestments Inc. and ML&SL Holdings, second straight year, followed by Inc., were charged in criminal com- Nevada, Michigan, California, plaints with perpetrating mort- Utah and Georgia. gage fraud between July 2004 and Specific changes at title compa- May 2006. nies are credited with rooting out Murphy said Tamburo and some problems, said Cathy Lam- Lalios flipped properties owned by ont, president of Detroit-based La- themselves or associates and falsi- mont Title. In her office, for exam- fied loan applications to qualify the ple, someone who is not named on buyers for loans with NetBank, a fed- a deed needs to come into the office erally insured financial institution. before a transaction is processed. The properties were sometimes “It’s part of an elevated scrutiny flipped many times among friends, we have with all transactions now relatives, or business associates to in response to the forgery out conceal previous ownership by there,” she said. Tamburo or Lalios, who submitted With that scrutiny in the indus- 52 loans totaling $5,387,620 to Net- try, by the government and in the Bank. media, Harry Ellman, president of All of the loans fell into default, Bingham Farms-based Fidelity Title and most are now in foreclosure, Co. said mortgage fraud cases Murphy said. slowed to a trickle in the last quar- Tamburo and Lalios, both free ter of 2006. on bond, face preliminary exami- At the Oakland County Register of nations in U.S. District Court in De- Deeds’ office, for example, people troit on June 30 and July 15 respec- are now on camera, making them tively, unless indicted by a federal think twice. grand jury before those dates. “There are alerts sent to under- Two former corporate officers of writers, blogs, indictments, trials,” Southfield-based Marathon Finan- he said. “Anyone thinking of pulling cial, Aubrey Terbrack, 65, of Troy off mortgage fraud today would and Denise Money, 52, of Ferndale, think twice and more likely get also were charged last week with caught sooner rather than later.” conspiring to defraud the U.S. Gov- Murray Brown, director of de- ernment National Mortgage Associa- velopment for Shelby Township- tion, or Ginnie Mae. No hearing based Michigan Mortgage Lenders dates are set. Association, said the new indict- It is charged that Money and ments send a strong signal. Terbrack conspired to retain the “This is certainly a big issue, funds obtained from terminated no doubt about it,” he said. “The and/or paid-off loans. They failed association members are very to disclose to Ginnie Mae that the happy to see indictments come loans were terminated, and Ter- down. It’s a great step and sends a brack used funds from the paid-off signal to the fraudsters.” loans to invest in the stock market, “(Fraud) hurts everyone,” said making fraudulent monthly pay- Dennis Koons, president and CEO ments on the loans to conceal the of the Lansing-based Michigan fraud. The fraud began in July Bankers Association. 1998 and continued to October “I’m delighted law enforcement 2007, resulting in a loss of approxi- officials have gone after bad ac- mately $20 million, Murphy’s tions and bad actors,” he said. statement said. Bob Ankeny: (313) 446-0404, Earlier this year, the industry- [email protected] funded Mortgage Asset Research In- Dan Duggan and Tom Hender- stitute said Florida led the nation son contributed to this story. DETROIT BUSINESS MAIN 06-23-08 A 19 CDB 6/20/2008 6:45 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 19 DTE says buried power lines can’t stop all outages, do add problems

BY AMY LANE parent CMS Energy Corp., said storm CRAIN’S DETROIT BUSINESS patterns in Michigan are difficult to predict and even underground elec- Michigan’s largest energy com- trical systems can be affected by panies say they continually look at heavy rains and other damage. He outage patterns in their service ar- and Kessler said the utilities contin- eas, including outages caused by ually look at system improvements storms like those that recently bat- to avoid repeated outages. tered Southeast Michigan. The Michigan Public Service Com- But putting overhead lines un- mission is investigating utility re- derground, even in outage-prone sponse to the recent outages. PSC areas, comes with its own costs will study issues including if any and problems, utility officials say. changes are needed to reduce the “We are not opposed to under- potential of future outages of simi- grounding power lines, and we are lar magnitude. Burying lines isn’t more than willing to meet with included in the initial focus, “but communities that are interested in it won’t be ruled out, either, if it is undergrounding power lines,” said determined to be in order after the Lorie Kessler, director of external investigation starts,” said Judy communications for Detroit Edison Palnau, PSC media and public in- Co. parent DTE Energy Co. “But it pos- formation specialist. es a huge economic as well as logis- A 2007 PSC staff study found that tical concern for those communi- while underground lines “are less ties,” such as disruption caused by susceptible to interruption because digging up property and roads. of storm damage, trees falling, ice Kessler said a more prudent coating” and other factors, under- strategy is to continue clearing ground faults require more time to trees and branches close to electri- repair “due to the added complexity cal lines, which has had “a good in locating faults, the need to dig up deal of positive impact in reducing the facility, more complicated re- power outages. That’s a big focus pairs, and the need for specialized of our efforts in trying to increase training or equipment.” reliability in a specific geographic Underground lines, on average, area.” Detroit Edison seeks a 10- bear an increased cost of about $1 foot clearance around lines. million per mile, the report said. Dan Bishop, public-information Amy Lane: (517) 371-5355, director with Consumers Energy Co. [email protected]

Green: Builders compete ■ From Page 3 and cooling in which water coils generate more electricity than the are kept under the house to cool it house needs, actually contributing in the summer and heat it in the electricity back to the grid. winter. Recycled materials will be “It will be a nice feeling to not used in construction. Windows just be using a minimal amount of will be energy efficient and all electricity, but actually give some plumbing fixtures will conserve back,” Roffey said. water. George Kilpatrick, residential Roffey and Danto started con- project coordinator for Bloomfield struction in February 2007. At Township, gives an edge to Roffey 7,500 square feet, it’s about twice and Danto’s house because of the the size of the Gontina-Risk house. early start. Roffey, a psychologist, started “We’ll see,” he said. “It should with the idea of building a luxuri- be fun to watch.” ous house for his family which For a company, being the first to would have a minimal impact on have a LEED-certified project car- the environment. He initially ries an image of commitment to sus- hired Bloomfield Hills-based Young tainable principles said Steve Shoe- & Young Architects Inc., but the idea maker, director of marketing for of LEED certification surfaced Oklahoma-based Ideal Homes Inc. when Danto met LEED consultant In September, 2006, Ideal built Jim Newman of Bloomfield Hills- the first LEED-certified home in based Newman Consulting Inc. the United States, according to US- Roffey didn’t know about the GBC records. LEED program at the outset of the “Back in 1998, we were the first in project, but realized most of what our market to build an Energy Star he was doing for the home fit with house,” he said. “Now, everyone is the program’s agenda. They regis- jumping on the bandwagon. tered the project with the USGBC “Instead of saying ‘me too,’ you after construction started. can say you’re a leader in that Though the LEED program area, and from a sales and market- takes points off for ultralarge ing standpoint, it lends credibility homes, Newman still expects the to your message.” house will earn a platinum-level Win or lose, Gontina is taking at rating, the program’s highest. least part of the prize. Everything used for the home In marketing materials they’ve has been acquired within a 500- claimed themselves to be the first mile radius, using as much recy- “registered LEED home” in cled material as possible. Many Bloomfield Township. rooms will have their own ther- “We were, after all, the first to mostats to control heating and register our project,” Gontina said cooling costs. with a grin. The house will have 30 solar pan- Daniel Duggan: (313) 446-0414, els and on a bright, sunny day will [email protected] DETROIT BUSINESS MAIN 06-23-08 A 20 CDB 6/20/2008 5:31 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 23, 2008 Cruise: Makes moves to boost revenue ■ From Page 3

The first 12,500 people who sign up well as WDC’s new logo. and a cover story about the event’s for the VIP registration and pay $25 Other designers and event special- first grand marshal, Tanner said. get a limited-edition plaque and a ists on the panel include: Don Som- WDC plans to print about 150,000 of the pass that gives them entry to automo- mer, founder of the Meadow Brook Con- programs and sell them for $5 each. tive activities throughout greater De- cours d’Elegance; and Larry Erickson, Tanner projects the new program, troit during August and to events chief designer at the Small and Medi- the classic car show, the eBay Motors during the cruise. um Car Vehicle Center at Ford Motor. sponsorship and classic car auction Conservative estimates are that Co. will bring in at least $125,000. the new events, sponsorships and WDC plans to seed the show this And the new partnership with Mo- PHOTO COURTESY OF WOODWARD DREAM CRUISE cruise-related products could boost year with top classic cars from tor Cities National Heritage Area on the revenue by $150,000, or nearly a third around the area, based on input from 2008 Woodward Dream Cruise official THE CRUISE IMPACT of the estimated $461,832 it grossed its advisory panel, he said. registration could bring in another last year, Tanner said. The show will take place at the $25,000 to $50,000, Tanner said. The 2007 Woodward Dream Cruise had a gross economic impact of WDC reported revenue of $396,762 Northwood Shopping Center at the WDC also is partnering with Motor $64.2 million and a net impact of $21.2 million to $32.1 million on Wayne, Oakland and Macomb counties, according to a study and an operating deficit of $1,534 in corner of 13 Mile Road and Wood- Cities on the first official cruise-sanc- 2006. ward Avenue in Royal Oak. commissioned by the Detroit Metro Convention & Visitors Bureau. tioned event in Detroit. The Aug. 14 WDC’s new “Dream Show” classic WDC also is working with the That puts the cruise among the events with the largest gross event is to take place in the Comerica car event, which takes place the day American Concours Foundation, which economic impact on metro Detroit, according to other studies Park-Grand Circus Park area and to of the cruise, will allow companies to matches buyers and sellers of classic commissioned by the bureau, including: include not only cars but live enter- sponsor one of 10 trophies that WDC automobiles through online charita- 2004 Ryder Cup, at $62.6 million. tainment, said Tanner. is hoping will become as coveted as ble auctions. The foundation is orga- 2005 Major League Baseball All-Star Game, at $42 million. the Ridler Award at Autorama, Tanner nizing an auction of select, classic “Having the appropriate partner 2006 Super Bowl, at $260 million. said. Trophy sponsorships will sell cars and hot rods from around the and appropriate venue, we felt this The report also captured demographic information: for $12,500 each or come as part of a country on eBay Motors’ Web site was the ideal time to make an event About 1.7 million people attended the cruise. in Detroit a reality,” Tanner said. larger sponsorship package, he said. during the cruise, Tanner said. Nearly a quarter of those at the cruise were from outside WDC also now has an advisory As part of the agreement, WDC will Is the event a precursor to expand- Wayne, Oakland and Macomb counties. panel of about 12 automotive indus- receive a percentage of all sales dur- ing the cruise route into the down- About 68 percent of those at the cruise were spectators. try representatives to work on the ing the auction. town area? Half of the attendees were between the ages of 44 and 64. WDC’s board might have voted show. Some of the cars for sale will be on The most recognized sponsors were Chrysler LLC, Detroit Automotive design veteran Dick display at the Northwood Shopping down that notion last year, but, Tan- Muscle, Dodge, Eaton Corp., Ford Motor Co., General Motors Corp. Ruzzin chairs the panel. He is credit- Center during the cruise, Tanner ner said, “never say never.” and Mopar. ed with creating the Eyes on Design said. “We’ll always continue to investi- The study was conducted by Patrick Rishe, director of fundraiser for the Detroit Institute of WDC also plans this year to issue its gate ways to effect regional coopera- Sportsimpacts.com and an associate professor of economics at Ophthalmology that features 200 vehi- first Dream Cruise program, a 75- to tion.” Webster University in St. Louis. He has done more than 55 major cles, and the design forum at the North 100-page, full-color glossy booklet that Sherri Begin: (313) 446-1694, sbe- economic impact studies since 2000. American International Auto Show, as will include the history of the cruise [email protected] — Sherri Begin

Transit: Bill expands use of state’s tax increment financing law ■ From Page 1

other infrastructure. money and issue bonds to finance all or part The Rapid, the authority that provides pub- In Grand Rapids, the tax revenue cap- of the costs of transit revitalization develop- lic transportation services in the Grand tured in the zones could assist a federally ap- There is no good way in ment improvements, and acquire and im- Rapids metro area, has been authorized by proved bus rapid-transit project along the “ prove land. the Federal Transit Administration to enter into Division Avenue corridor. this state to fund large “This is key to developing transit, not project development for a $40.1 million, David Worthams, legislative associate only along Woodward but throughout the re- nine-mile system that would operate in bus- with the Michigan Municipal League, which capital transit projects gion. Right now, there isn’t a mechanism to brought the idea to Donigan, said the league allow governments, transit agencies and only lanes. hopes the bill will be used “as part of a com- without hurting every other businesses to integrate transit into their de- It would run along a Division Avenue cor- prehensive approach to not only revitalize velopment plans,” said Melissa Roy, senior ridor that serves an area with the highest transit but also to revitalize our urban cores transit operator. director of government relations with the commuter volume in the region and would and to really show that transit-oriented de- ” Detroit Regional Chamber. link hospitals in and around downtown to Carmine Palombo, velopment can work in Michigan.” “It’s really looking to the future of how research facilities, five college campuses, Southeast Michigan Council of Governments Transit-oriented development refers to the region develops and really realigning and downtown venues. placing residential and commercial develop- our goals with what not only the general Jennifer Kalczuk, external relations man- ment near a transportation hub, integrating stations to improve neighborhoods and help public is looking for but also businesses.” ager for The Rapid, said Donigan’s legisla- it into a community. Transit advocates say in- A public transit subcommittee, chaired cover the capital and operational costs of tion is “certainly something that could help vesting in public transportation creates a by Donigan, said in a recent report that transit agencies. our project.” She said possibilities include chain reaction that leads to increased busi- “People always ask: ‘How are you going to transit-oriented development is important support for the capital costs of building the ness activity, job creation, improved trans- pay for transit?’ If a community wanted to to developers, to young people that cities are portation access and higher property values. bond for transit, they could use the TIFA trying to attract, and is good land-use policy. system and operating it. A 2007 report by the Washington-based money to pay off an investment in transit, The report identified Woodward Avenue, “We’re looking at the potential for how American Public Transportation Association, and operation,” Donigan said. where there are both private and public pro- this type of investment zone could fit into cites, for example, Portland, Ore.’s light-rail “This is just one of the tools that is used … posals for a light-rail line, as a “prime candi- our plans,” she said. system as a catalyst for more than $6 billion to improve access to transit, to create places date” for such development. State Rep. Tom Pearce, R-Rockford, a mem- in development that has occurred since 1980 where people want to live.” Worthams, at the municipal league, said ber of the transit subcommittee, said South- within walking distance of that city’s light- Under Donigan’s House Bill 6114, which Donigan’s legislation could “work very well east Michigan and west Michigan are work- rail stations. with either one” of the proposed Woodward recently was approved by the House Trans- ing toward “a better relationship than ever The report also cites a University of North portation Committee, the governing body of a light-rail projects. John Hertel, CEO of the before” on transit issues, with both sides of Texas study which found that commercial municipality could establish a transit revi- Regional Transit Coordinating Council, declined properties located near Dallas rapid-transit talization investment zone TIFA and enter to comment on Donigan’s legislation. the state sharing dialogue and visits. system stations increased in value 24.7 per- into an agreement with other affected mu- Carmine Palombo, director of transporta- For example, he and other west Michigan cent between 1997 and 2001, more than dou- nicipalities and public transportation agen- tion programs for the Southeast Michigan officials held a town hall meeting in Royal ble the 11.5 percent increase in value of cies to create a zone. Council of Governments, said the problem fac- Oak, and then Donigan and others held a properties not served by rail. The TIFA board would include the founding ing Michigan is that “there is no good way reciprocal meeting in Grand Rapids, Residential property values near the sta- municipality’s chief officer and five to nine in this state to fund large capital transit pro- Donigan said. tions rose 32.1 percent, compared with a 19.5 members appointed by the chief executive and jects without hurting every other transit op- “We got to share information, so we don’t percent increase for other properties. New subject to approval by the local governing erator in the state. Everybody is looking at think we’re aliens from other planets, like investment near the rapid-transit stations, body. A majority of board members would … ways to raise dollars locally to cover the we tend to,” she said. “We really do have a from 1999 through 2005, totaled more than have to be people who own or have business in- capital costs of a project. Donigan’s ap- $3.3 billion. terests in properties within the zone. proach is one way to do that.” lot in common. So I think it’s been a real ef- Donigan said communities around the The authority could prepare a tax incre- The transit subcommittee report said that fort in Rep. Pearce’s point of view and mine country are using tax increment finance au- ment financing plan, which would include a proposed transit projects in Grand Rapids that we try to bridge this gap, at least on this thorities, or TIFAs, to take advantage of de- development plan for the zone. Among other have already led to increased property val- transit issue.” velopment around new and existing transit things, the authority board could borrow ues along proposed routes. Amy Lane: (517) 371-5355, [email protected] DETROIT BUSINESS MAIN 06-23-08 A 21 CDB 6/20/2008 5:51 PM Page 1

June 23, 2008 CRAIN’S DETROIT BUSINESS Page 21 Fuel: Major carriers also Costs ground business fliers www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] in a global economy. The company, an AirBP distributor, declined to feel fuel price pinch EXECUTIVE EDITOR Cindy Goodaker, (313) 446- With crude oil at more than $135 a barrel, jet say how many fewer gallons have been sold this 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- fuel (Jet A) is running in the $6-$7 per gallon range year than last, but did acknowledge a small Soaring fuel prices have triggered lay- 0402 or [email protected] locally and 100-octane low-lead (AvGas), which is downturn in both gallons sold and number of ASSISTANT MANAGING EDITOR/FOCUS Jennette offs, flight cutbacks and fare increases in Smith, (313) 446-1622 or [email protected] used by turbine-engine propeller aircraft, is $5-$6 flights. the struggling commercial airline indus- BUSINESS LIVES EDITOR Michelle Darwish, (313) per gallon. The price increases have paralleled the “The industry, the economy did not foresee try, and further belt-tightening is possible 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 rise in the cost of automotive fuel. this,” said Jim Keough, vice president and gen- over the summer and fall. or [email protected] The national average for jet fuel on Friday was eral manager for Metro Flight Services. “But air- GRAPHICS EDITOR Nancy Clark, (313) 446-1608 Eagan, Minn.-based Northwest Airlines or [email protected] $5.70 a gallon, according to GlobalAir.com, which craft will have to continue to fly. They will need Inc., whose 500 daily flights from Detroit COPY EDITOR Vic Doucette, (313) 446-0410 monitors aviation fuel prices nationally. to purchase fuel.” Metropolitan Airport make it the facility’s or [email protected] Kors flew out of Oakland County International Air- Offsetting the company’s declines are corpo- DATA EDITOR Anne Marks, (313) 446-0418 or largest user, unveiled a plan last week to [email protected] port in Waterford Township, where aviation fuel rate deals to pump fuel for United Airlines and U.S. trim domestic and international capacity WEB GENERAL MANAGER Alan Baker, (313) 446- sales through the first six months of the year are Airways. 0416 or [email protected] by up to 9.5 percent before year’s end. It’s WEB EDITOR Kevin Hill, (313) 446-0473 or down 1 million gallons compared with last year’s The other major fuel seller at Detroit Metro, also reducing its fleet size by more than 40 [email protected] 4.5 million gallons sold. AvFuel Corp. distributor ASIG, was selling Jet A at WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) aircraft and is adding fuel surcharges as 446-0403, [email protected] Airport operations — flights in and out — are $7.29 a gallon. well as fare and fee increases. RESEARCH ASSISTANT Joanne Scharich, (313) down about 18 percent versus the first half of last Flights at Coleman A. Young International Airport 446-0419 year, to 63,078 from 77,443, said J. David Van- (formerly Detroit City Airport) for the first five Northwest’s cutback in flights doubles EDITORIAL SUPPORT Anita Duncan, (313) the reductions it announced when it 446-0329 derVeen, Oakland County’s director of central months of the year were at 21,443, down from NEWSROOM (313) 446-0329, FAX (313) 446- services, who oversees the county-owned airport. 26,607 over the same period last year, according emerged from bankruptcy last spring. 1687 TIP LINE (313) 446-6766 “We’re down, no question about it,” said Van- to the Federal Aviation Administration. American Airlines Inc., Continental Airlines REPORTERS Inc., Delta Air Lines and United Airlines all Robert Ankeny: Covers the city of Detroit, Wayne derVeen. He attributed the drop to the stagnant re- Jesse Huddleston, general manager of Signa- County government, and law. (313) 446-0404 or gional economy and fuel prices. “The elevated fuel ture Flight Support at Coleman Young, referred have announced job cuts and flight reduc- [email protected]. costs are exacerbating the situation.” questions to his corporate parent office, which tions. If oil moves much beyond its cur- Ryan Beene: Covers auto suppliers, steel. (313) 446-0315 or [email protected] The airport caters to a mixture of corporate did not respond. Signature is the lone private rent $135 a barrel price, more could fol- Sherri Begin: Covers nonprofits and services. flights and recreational pilots. fuel provider at the airport, where Crain’s De- low. (313) 446-1694 or [email protected] Daniel Duggan: Covers real estate and hospitality. “The smaller flyer, a private individual or a troit Business parent company Crain Communica- Miramar, Fla.-based low-cost carrier (313) 446-0414 or [email protected] small business, if they’re making a decision to fly tions Inc. leases a small jet. Spirit Airlines Inc., which was founded in Jay Greene: Covers health care, insurance and the environment. (313) 446-0325 or or drive a short distance, they’re choosing to One airport apparently bucking the trend is metro Detroit 18 years ago and averages [email protected]. drive,” VanderVeen said. “Business and corpo- Willow Run Airport in Ypsilanti, where flights in Chad Halcom: Covers education, non-automotive 16 daily flights from Detroit Metro, is manufacturing, defense contracting and Oakland rate traffic is holding its own. Business and indus- and out are up to 26,447 versus 24,291 for the first mulling layoffs and route reductions be- and Macomb counties. (313) 446-6796 or try must still fly.” five months of 2007. However, it’s unclear how [email protected]. cause of fuel costs. Tom Henderson: Covers banking, finance, Jet-A, the fuel used by commercial and most many of those flights are corporate. “Spirit is in the process of looking at technology and biotechnology. (313) 446-0337 or private corporate jets, was selling for $6.22 a gal- Michael Conway, director of public affairs for [email protected]. many different scenarios on what the Nancy Kaffer: Covers small business and retail. lon on Friday at Pentastar Aviation L.L.C., a fixed- both Detroit Metro and Willow Run, said they company will be doing if fuel prices con- (313) 446-0412 or [email protected]. base operator and ExxonMobil Aviation outlet at haven’t identified yet why flights are up. An in- Bill Shea: Covers media, advertising and tinue to rise,” said Misty Pinson, Spirit’s marketing, entertainment, the business of sports, Oakland County International Airport. crease in training flights is at least partially the director of communications. and transportation. (313) 446-1626 or [email protected]. Pentastar caters to upscale corporate avia- reason for the overall increase. Collectively, the commercial airline in- Nathan Skid: Multimedia reporter. Also covers the tion, a market that’s not seen significant cut- The spike in fuel prices comes at a time when dustry will spend $61.2 billion on fuel this food industry. (313) 446-1654, [email protected]. backs, said Bob Sarazin, the company’s vice business aviation was on the rise. The number year, up from $41.2 billion last year. The LANSING BUREAU Amy Lane: Covers business issues at the Capitol, president of FBO services. of “premium” travelers on commercial airlines, industry spent $16 billion on fuel in 2000, telecommunications and utilities. (517) 371- “We haven’t seen declines in identifiable ac- defined as first-class and business-class, has 5355, FAX (517) 371-2492, [email protected]. or which translates into a 217 percent in- 115 W. Allegan, Suite 220, Lansing 48933. tivity,” he said. “Business aviation is a cost of stalled at 41 million and is expected to drop in crease in spending, said David Castel- ADVERTISING conducting business. Individuals have come to 2008, while travel on business aircraft has veter, vice president of communications ADVERTISING DIRECTOR Marla Downs, (313) find aircraft for corporate business are an im- sharply increased, according to a study re- for the Air Transport Association, a Washing- 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) portant tool.” leased this month by Stanford Transportation ton D.C.-based industry trade group. 393-0997 If fuel prices continue to rise, however, there Group, San Francisco-based aviation consul- The association has eye-popping num- ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, eventually will be a spillover into corporate avi- tants. bers on fuel prices: For every $1 increase in Cathy Ross, Dale Smolinski ation, he said. In 2007, the number of trips using business the price of a barrel of crude oil, the U.S. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) “We’re somewhat at the mercy of the barrel of aircraft was equivalent to 41 percent of the num- (323) 370-2477 airline industry pays an additional $465 CLASSIFIED MANAGER Melissa McKay, (313) oil and refinery pricing,” he said. ber of trips made by premium airline passen- million for fuel. A single penny increase in 446-1692 Metro Flight Services Inc. at Detroit Metropolitan gers, or 16 million flights, the study showed. In CLASSIFIED ACCOUNT EXECUTIVE Greg the price of a gallon of aviation fuel means Evangelista, 313-446-1655 Airport had Jet A fuel selling at $7.32 a gallon on 2000, it was 16 percent. $195 million in additional costs. MARKETING DIRECTOR Michelle Minor Friday. Bill Shea: (313) 446-1626, [email protected] — Bill Shea EVENTS MANAGER Nicole LaPointe MARKETING ASSISTANT Jennifer Dunn MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, Proton beam: Veto will allow multiple centers (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, (888) 909-9111 ■ From Page 3 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information ning a proton-beam center is led by the UM Under the vetoed rule, approved on April 30 pital is ready to go forward with its develop- Center at [email protected]. Health System in Ann Arbor and Henry Ford by the state Certificate of Need Commission, just CRAIN’S DETROIT BUSINESS IS PUBLISHED BY ment plan and can open the center by 2010. CRAIN COMMUNICATIONS INC. Health System in Detroit. Other hospitals in- one hospital group would have been allowed to “We are happy for the cancer patients for CHAIRMAN Keith E. Crain clude Karmanos Cancer Institute in Detroit and build the advanced cancer treatment center. Michigan because they won’t have to travel PRESIDENT Rance Crain SECRETARY Merrilee Crain Genesys Hurley Cancer Institute in Grand Blanc. The University of Michigan-led hospital outside of Michigan for this important thera- TREASURER Mary Kay Crain Officials for two other hospitals, Trinity group had been favored by the CON Commission. py,” Matzick said. Executive Vice President/Operations William A. Morrow Health’s St. Joseph’s Hospital, Ann Arbor, and The hospitals had been trying to meet a required If two or more centers are built, Vicini said Group Vice President/Technology, Great Lakes Cancer Institute-McLaren Campus, timetable set up by the commission, leading to a Manufacturing, Circulation the hospitals will have to mount a national re- Robert C. Adams Flint, said they are keeping their options open Sept. 5 deadline to present a business plan. cruiting effort to bring in additional physicists, Vice President/Production & Manufacturing and may join either the Beaumont or the Michi- The CON Commission wanted to hold down Dave Kamis therapists and other oncology specialists to Corporate Director/Circulation gan-led group. purchaser costs by reducing competition for staff the centers. Patrick Sheposh “With the governor’s veto, we are going to be multiple centers. G.D. Crain Jr. Founder (1885-1973) Hadley Ford, ProCure’s CEO, said the compa- Mrs. G.D. Crain Jr. Chairman (1911-1996) exploring opportunities with Beaumont,” said But Granholm stated in a June 19 letter to the ny also may open a $30 million technical train- Kevin Tompkins, McLaren’s vice president of CON Commission that the single collaborative EDITORIAL & BUSINESS OFFICES: ing center for proton-beam services. The center 1155 Gratiot Ave., Detroit MI 48207-2732; (313) marketing. The hospital system also will con- approach could violate an- 446-6000 would train 50 students per year and employ 30- Cable address: TWX 248-221-5122 AUTNEW DET tinue to speak with the UM-led group, he said. titrust laws under the federal 50 workers. Several other states are under con- Subscriptions $59 one year, $98 two years. Out of By July 1, the state Department of Community Sherman Act. state, $79 one year, $138 for two years. Outside sideration, he said. U.S.A., add $48 per year to out-of-state rate for Health is expected to rule on five pending CON In her letter, Granholm In addition, Ford said he will set up meetings surface mail. applications for proton-beam centers — Beau- noted that the U.S. Justice De- Reprints: For inquiries call the reprints department between Granholm and officials from two for- at: (800) 494-9051, Ext. 144 , or at mont, Henry Ford, University of Michigan, partment has expressed con- [email protected] eign-based manufacturing companies — Varian Karmanos and McLaren. cerns that the new standards CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Inc. and IBA Group — who are considering open- published weekly except for a double issue the Dwight Angell, Henry Ford’s media relations “are likely to harm competi- second week in August by Crain Communications director, said the hospitals in the consortium tion and will potentially re- ing proton beam plants in the U.S. Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Proton-beam therapy is a form of megavoltage Periodicals postage paid at Detroit, MI and additional are disappointed with Granholm’s decision. sult in harm to cancer pa- mailing offices. POSTMASTER: Send address “Those who had previously submitted CON tients in Michigan.” radiation that has been suggested by some to be changes to CRAIN’S DETROIT BUSINESS, Circulation Matzick Department, P.O. Box 07925, Detroit, MI 48207- applications have decided to work collabora- She also expressed concern effective in some prostate and pediatric cancers 9732. GST # 136760444. Printed in U.S.A. because it causes less damage to surrounding tis- Entire contents copyright 2008 by Crain tively with a collective mission and vision to the UM-led collaborative could take too long to Communications Inc. All rights reserved. ensure that all people have access to the latest bring proton-beam technology to the state. sues while directing high dosages at tumors. Reproduction or use of editorial content in any cancer treatment,” Angell said in a statement. CEO Ken Matzick of Beaumont said the hos- Jay Greene: (313) 446-0325, [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 06-23-08 A 22 CDB 6/20/2008 7:02 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS June 23, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 14-20

of $55,000 and total compen- Steel trader gets jail time, The location would link sation of $395,909, including Hearing set on Detroit’s Delray neighbor- Economy benefits, as the organiza- probation for tax evasion hood and an Ontario site tion shifted to its new com- A former Kerry Steel Inc. co- between the Brighton munity impact model of op- try to remove owner was sentenced Thurs- Beach power plant and a eration and funding. day after pleading guilty to Canada Salt Inc. plant. That’s drawing the ire of two counts of income tax down, ranks of some nonprofits that have Kilpatrick evasion in February. seen reduced or no funding BCBSM responds to rate- Paul Wolf, 49, was sen- under the tenced to five years proba- cut recommendation three- from office tion and must spend eight year Blue Cross Blue Shield of millionaires up months in a halfway house. Michigan has asked state In- funding udge Robert Ziolkowski Wolf also must pay a commit- scheduled a Wayne surance Commissioner Ken $150,000 fine, $147,000 in he national and percent; Dallas-Fort Worth, ments an- J County Circuit Court Ross to immediately ap- restitution to the Internal Rev- state economies 21.4 percent; ; Chicago, 17.8 nounced hearing for June 27 to take prove a 25 percent average enue Service and perform 200 T may be shrinking, percent; Boston, 17.2 per- by United up a lawsuit Detroit Mayor rate increase for individual hours of community service but there’s something that’s cent; Los Angeles, 15.6 per- Way ear- Kwame Kilpatrick’s adminis- policies — on top of a 10 for lying on his 2002 and 2003 grown dramatically both cent; Orlando, 14.6 percent; lier this tration filed to block the De- percent average interim tax returns, the U.S. Depart- here and nationwide since and San Francisco, 11.1 per- month. troit City Council from trying rate increase approved in Brennan ment of Justice said. 2006. Believe it or not, it’s cent. Bren- to oust the mayor, the De- 2007 — because of an 18- the number of households nan had not been listed on troit Free Press reported. month delay caused by a with total assets of at least NextEnergy CEO job draws Crain’s April 28 list of the re- Attorney Godfrey Dillard, JCI, others win Plastech subscriber lawsuit. $1 million, according to a gion’s top-paid nonprofit who filed the suit, said he is On May 14, Hearing Offi- study called The World lots of interest CEOs, based on 2006 com- trying to avoid wasting tax- auction, bonus disputed cer David Lick found that Wealth Report that will be pensation research. Michigan’s largest health Departing NextEnergy payer money on the re- Plastech Engineered Prod- jointly released Tuesday by But, Crain’s discovered insurer should use its $2.64 CEO James Croce is vacat- moval hearings, planned ucts Inc. approved the sale Merrill Lynch and the con- last week, he should have billion surplus, which he ing a post that apparently for July 7. of its interiors, exteriors sulting firm of Capgemini. been. deemed excessive, to re- many people may want. The lawsuit filed and stamping units in its On a percentage basis, His reported compensa- duce its rate increase re- “There has been a great Wednesday argues that the asset auction Monday, with Southeast tion of $191,536 and benefits quest. He did not specify deal of inter- city charter does not specif- the lead bidders for each of Michigan grew of $10,851 on United Way’s how much Blue Cross est in the posi- ically grant the council the the three units named as more million- fiscal 2006 tax form, reflected should cut its request. tion,” said authority to remove the buyers, Automotive News aire house- 1.3% only half-year figures, said Ross has 30 days or less Mark Beyer, di- mayor for alleged miscon- reported. holds, accord- Kelly Major Green, vice presi- to make a final determina- Predicted growth in rector of com- duct. A Johnson Controls Inc. ing to the dent of marketing and brand tion on Blue Cross’ rate in- munications The suit also urges the unit, JCIM L.L.C., agreed to report, than households in experience at United Way. crease request. Both parties and outreach court to declare the coun- pay about $200 million for such areas as The Detroit-based agency then would have 60 days to Southeast Michigan at the Detroit cil’s 5-4 vote in May to hold the interior products busi- Orlando and filed the half-year return af- file an appeal in Ingham in next five years. nonprofit, ouster hearings invalid. ness unit of Plastech. San Francisco. ter its October 2005 merger The council has accused County Circuit Court which works Plastech approved the . According to with United Way of Oakland Kilpatrick of violating the to advance sale of its exteriors busi- the report, the County. charter by failing to fully Michigan’s al- ness unit to Decoma Interna- OTHER NEWS number of lo- Brennan earned about inform it about all aspects 16.3% ternative-en- tional of America Inc., the ex- cal millionaire $355,000 in compensation of an $8.4-million whistle- Ⅲ Chrysler L.L.C. is suing ergy industry. teriors business unit of households Predicted growth in before benefits for the full blower lawsuit settlement. Magna International Inc. in Birming- Canadian supplier Magna grew in 2007 by year in 2006, Green said, Also: Oakland County Circuit Court millionaire households ham-based International Inc., for $24.7 17.4 percent, to which would have made Ⅲ Deputy Mayor Anthony for millions of dollars to in Southeast Michigan Compass Group million. 81,320. The re- him the third-highest paid Adams said Tuesday the city cover the costs of injuries is assisting JD Norman Ohio Holdings gion is defined in next five years. nonprofit CEO in the social would have to lay off as and recalls involving heat- NextEnergy Inc. was approved as the in the report as services category. many as 1,300 workers if De- ed seats in Chrysler mini- with a search buyer of Plastech’s stamp- including the troit City Council would not vans, Automotive News re- that began after Croce an- ing business. The bench- counties of Lapeer, Liv- approve the mayor’s pro- nounced in March he will BITS & PIECES mark bid for that unit was ported. ingston, Macomb, Monroe, posed $65 million sale of the Ⅲ strike out on his own in the $4.5 million. DTE Energy Co. has se- Oakland, St. Clair, Sanilac, Ⅲ University Lithoprinters, city’s half of the Detroit alternative- and renewable- The supplier aims to lected a nuclear reactor de- Washtenaw and Wayne. Ann Arbor, won two Silver Windsor Tunnel, the Free energy industry. He leaves close the transactions by sign produced by Wilming- And look for the good and two Bronze awards at Press reported. A council NextEnergy at the end of June 30. ton, N.C.-based GE Hitachi news for the rich to contin- the 2008 Sappi Printer of the committee voted Friday to September. Also, Plastech CEO Julie Nuclear Energy, for its poten- ue. While the study predicts Year Contest. The awards recommend that members Beyer said the search ex- Brown could receive $9.25 tial new nuclear plant at its that the total number of are given by paper manufac- reject a proposal by Kil- tends “throughout Michigan million when Johnson Con- Fermi 2 site near Monroe. households in Southeast turer Sappi Ltd., with win- patrick to sell the tunnel, and beyond Michigan” and trols completes the interi- Ⅲ The state Bureau of La- Michigan will increase by ners determined by an inde- The Detroit News reported. candidate interviews are on- ors acquisition. bor Market Information and 1.3 percent in the next five pendent panel of judges. Ⅲ The city’s two pension going. Plastech attorneys are Strategic Initiatives said Ⅲ The Anti-Defamation funds, the General Retire- years, the number of mil- asking a U.S. Bankruptcy Wednesday that Michigan’s League will honor Joe Du- ment System and the Police lionaire households will in- Court judge in Detroit to unemployment rate jumped mars and the Detroit Pistons and Fire Retirement System, crease by 16.3 percent. Pay for United Way CEO approve a series of claim to 8.5 percent in May, up on June 30 at the Townsend have sued Donald Watkins, a Growth rates for 2006- settlements between a syn- from 6.9 percent in April draws ire from nonprofits Hotel, Birmingham. The re- member of Kilpatrick’s de- 2007 for other selected met- dicate of Plastech creditors, and 7.1 percent a year ago, ception begins at 6:30 p.m. fense team, seeking to re- ropolitan regions include: United Way for Southeast- term lenders and Brown the Associated Press re- Atlanta, 30.7 percent; Min- Tickets start at $136. For cover $30 million they ern Michigan CEO Michael If approved by the judge, ported. neapolis-St. Paul, 25 per- more information, call (248) loaned him last year to buy Brennan last year received a Brown would receive $9.25 Ⅲ Kirk Kerkorian’s Tracinda cent; Washington, D.C., 22.7 353-7553. a cargo airline, The News performance-based bonus million, paid in annual in- Corp. said Thursday it has reported. stallments of $1.85 million increased its stake in Ford Ⅲ A Ninth Circuit Court of over five years. Motor Co. to 6.49 percent and Appeals ruling said a wire- remains willing to consider less phone company violat- supporting the automaker’s Calling all creatives — join our new Web site ed federal law when it re- Canadian group announces turnaround effort, the Asso- leased the contents of a preferred site for new bridge ciated Press reported. 115 and counting. register, create a profile, interact with California police officer’s Ⅲ Quicken Loans Inc. laid So far, 115 people have registered other creative people, and post your text messages to his bosses, The Canadian half of the off 250 workers Thursday in own writings, photos and videos. as users on DetroitMakeItHere.com, the Free Press reported. Detroit River International Michigan, Arizona and the new Web portal where Southeast The site also contains a free, Kilpatrick’s lawyers said Crossing, a binational col- Ohio, the Detroit Free Press Michigan creatives can connect and searchable database of more than this supported their argu- laborative group leading an reported. grow. If you work in a creative 1,600 creative companies in the ment that text messages be- effort to build a new, pub- industry or know someone who does, region, so you know what’s here. tween the mayor and for- licly owned bridge connect- check it out. The site’s in its beta version right mer Chief of Staff Christine ing Detroit and Windsor, OBITUARIES Conceived by Detroit Renaissance now, meaning we’re going through Beatty were not admissible unveiled its choice of an in- Ⅲ Scott King, CEO of Inc. and powered by Crain’s, the site extensive testing and modification. and the marketing campaign Go ahead, look at as evidence; other legal pro- dustrial area south of the Southfield-based Eaton surrounding it aim to get more people DetroitMakeItHere.com. Try to break fessionals noted that the current river crossings for Corp.’s automotive group, in creative industries to move here or WEB WORLD it. And when you do, let us know. We Ninth Circuit’s rulings a new inspection plaza and died of sarcoma June 11. He stay here. On the site you can Alan Baker welcome your suggestions. don’t apply in Michigan. bridge. was 48. DBpageAD.qxd 4/23/2008 10:51 AM Page 1

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