20090126-NEWS--0001-NAT-CCI-CD_-- 1/23/20096:47PMPage1 ©Entire contentscopyright2009byCrainCommunicationsInc.Allrightsreserved cles androadinfrastructure, vehicles, andbetweenvehi- tion ofinformationbetween state incometaxrevenues. million and$448in and contributebetween$177 16,000 to41,000high-techjobs search bor’s State University 2007 studyfrom such technology,whicha “lab-to-assembly line”of track helpthestatebecomea state officials. nounced todaybytrackand gies” isscheduledtobean- “connected vehicletechnolo- search andtestingfacilityfor city ofBrooklynasare- International Speedway careerworks at crainsdetroit.com/ Find ajob,discoverhire, Pages 22,23 help withcareertransitions, News andinformationto Page 6 with badhandsofdebt, Casinos trytodeal Page 3 Who’s Aretha’s hat-maker? lab forautoelectronics MIS tobemarketedastest

pNEWSPAPER www.crainsdetroit.com Vol.25,No.4 This JustIn Inside The wirelesscommunica- The goalistohavethe A plantomarket Center forAutomotiveRe- See ThisJustIn,Page2 said couldcreate and AnnAr- Michigan Michigan in the “This madeithardtojustifythe nato saidinane-mailto munications managerKellyCusi- with (theSuperBowl),”GMcom- jor vehiclelaunchthataligned the factthatwedidnothaveama- ber, andwasprimarilydrivenby game adwasmadebackinSeptem- forts tocutcosts. for arecord$3million—amidef- game —30-secondadsaregoing will forgotheannualNFLtitle Chrysler L.L.C. Co. Corp. Hyundai many’s game on Feb. 1,theonlycaradsduring Tampa forSuperBowlXLIIIon Pittsburgh Steelers tomakers andtheiradagencies. advertisements fromDetroit’sau- Super Bowltelecastwon’tinclude Award. in yearspast,andthebrandwillalsosponsorpost-gameshowMVP at theSuperBowlinTampa,Fla.Cadillacswillbeondisplaystadium,as While GMisn’tbuyingatelevisionadthisyear,itstillwillhavemajorpresence on adsidelines Super Bowltoopriceyamidcostcutting Detroit-based “GM’s decisionnottobuyanin- When the For perhapsthefirsttime, , Dearborn-based CRAIN’S DETROITBUSINESS and AuburnHills-based . Detroit sits Audi B NBC Y B Arizona Cardinals and SouthKorea’s ILL all havesaidthey will befromGer- General Motors S HEA square offin Ford Motor Crain’s JANUARY 26–FEBRUARY1,2009 and . monster.com handled inNewYork,including same thing.(BBDOclients all ofChrysler’sadwork,saidthe BBDO the game,andNewYorkagency tions.” and scrutinizeallourpromo- as wecontinuetoreducebudgets ROI foranadthisyear,especially tively seekcommercials,which more than100millionofthem) ac- year viewers(andthegame gets per Bowl,whichistheonetime of siders havemixedviewsontheSu- ther. work willhaveSuperBowlads,ei- that dononautomotiveadvertising played inJanuary1967. the SuperBowl,whichwasfirst have skippedadvertisingduring major domesticcarcompanies will haveSuperBowlspots.) played intheSuperBowl. spot, fortheGMCYukonhybrid. 2008 SuperBowl’slonelocal spots. doing workonthisyear’s67 has boughtadtime. D Ford confirmeditwasbypassing Local advertisingindustryin- None oftheregion’sagencies It’s unclearwhen,ifever,allthe ETROIT No MichiganNFLteamhas Leo BurnettDetroitdidthe No Michiganadagencyis No Michigan-basedcompany , whoseDetroitofficehandles See SuperBowl,Page29 -F REE and B OWL General Electric NEWSCOM , gions withthehighestunem- and training,especiallyinre- is beingplacedonjobcreation lated tothefiveareas,emphasis jects infivedifferentcategories. ing thousandsofpotentialpro- teams ofstateofficialsarescour- governmentwide effortinwhich Jennifer Granholm,entailsa way. whatever federalfundscomeits the statetoreadilydistribute potential barriersandposition sweep toinventoryprojects,flag are undertakingagiantinternal takes shape,Michiganofficials nomic recoveryplanrapidly frastructure investmentandeco- recovery plan for shareof State rushes safety-net funding. state’s biggestsourceofmedical possible budgetcutstothe for Michigan—couldstaveoff much as$1billionto$1.5 billion fiscalrecoverypackage. by $87billionaspartofan$825 Medicaid fundingtothestates resentatives week whenthe providers wererelievedlast increase willbeinsufficient Some fearMedicaidfunding on jobcreation, training Emphasis being placed bers ofMedicaidrecipients. care fortheincreasingnum- enough tooffsethighercosts to federal bailoutmightnot be tives said,however,that the In addressingstateneedsre- A blueprint,initiatedbyGov. LANSING —Asafederalin- “We areoptimisticthat Michigan healthcareexecu- The additionalrevenue—as Michigan’s Medicaid CRAIN’S DETROITBUSINESS CAPITOL CORRESPONDENT B B Y Y J promised toincrease A AY MY U.S. HouseofRep- G L REENE ANE there tors losemoneyoneveryMedic- Health System agnostic radiologistat on thedollar,”saidSandler,a di- aid program. tors willdropoutoftheMedic- dler, presidentofthe to care,”saidDr.MichaelSan- won’t seeanydiminishedaccess that willgotoMedicaidandwe will beagoodamountofmoney jects thatcanbestartedandcom- Obama andotherstotargetpro- and adesirebyPresidentBarack moving economicstimulusplan the work. availability ofcontractorstodo that mightbeneededandthe out projects,suchaspermits spent, andlogisticsforcarrying to ensuremoneycanbequickly administrative changesneeded jects arepriorities,legislativeor posed federalfunds,whichpro- ergy projects. gy efficiencyandalternative-en- “greening,” whichincludesener- and broadband;buildings; schools; informationtechnology such asroads,waterandsewer; ployment rates. “As ofnowitcovers61cents Page 28 care. ranks, charity Up: income. Down: H They areracingagainstafast- The teamsarelookingatpro- The categories:infrastructure, AT NEWS EALTH Uninsured HMO net See Medicaid,Page28 See Recovery,Page29 in Detroit.“Doc- $2 acopy;$59year more doc- fears that dler saidhe dollars, San- Medicaid al federal the addition- Society State Medical Without Henry Ford Michigan . ® 20090126-NEWS--0002-NAT-CCI-CD_-- 1/23/2009 6:17 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 26, 2009

pany had $40 million to $50 mil- ed $2 million in damages. The firm still has roughly 50 of deliberation, a federal jury THIS JUST IN lion in revenue this fiscal year — C-4 handled Chrysler L.L.C.’s agents, he said, though 10 decid- awarded Lathrup-based Michigan which ends in March — with events for six years and was re- ed to stay with Re/Max. First Credit Union $5 million in ■ From Page 1 roughly 4 percent of its business sponsible for the popular Fire- — Daniel Duggan damages against its former in- coming from Michigan. house charity event for media surer, Wisconsin-based Credit is aimed at improving safety and CEO Richard Bergsund said in a and industry executives during Union Mutual Insurance Society, in traffic flow. statement Friday that Michigan the auto show. The struggling car- Advanced Photonix wins a case growing out of a series of Behind the effort to market the residents are missing out on a maker said last spring it was drop- 2 Air Force contracts bad loans in 2003. track for such technology work large array of wine that is not ping C-4 in favor of Royal Oak- The jury found that the insur- Ann Arbor-based Advanced are the Michigan Department of currently available in stores. He based O2 and a New York firm. er breached its contract when it Photonix Inc. (NYSE: API) an- Transportation, CAR’s Connected urged residents to contact Gov. C-4’s final event was this year’s refused to pay for losses result- nounced Friday that it won two Vehicle Proving Center and Michi- Jennifer Granholm, who signed the General Motors Corp. auto show ing from hundreds of defaulted U.S. Air Force gan Economic Development Corp. bill on Jan 9. Under the new law, press conference. It also did work contracts with the . auto loans approved under the The contracts are a $100,000 Those agencies are scheduled to wine can be delivered by an em- for Audi. supervision of a former credit small-business innovative-re- jointly unveil the MIS plan dur- ployee of a retailer, but not — Bill Shea union vice president, Michael search grant to develop semicon- ing a press conference Monday at shipped through a third-party Lewis. ductor material capable of in- MDOT’s Michigan Intelligent service such as UPS. The jury held that the loans creasing terahertz power, and a Transportation Service Center in — Daniel Duggan Real estate office drops Re/Max were made in violation of credit $750,000 contract to develop a Detroit. union policy. franchise, changes name higher-power terahertz transmit- MDOT is using the race track to Chuck Holzman of the law firm A Chesterfield Township real ter for surface and gas spec- test the technology it plans to de- C-4 Communications closing of Southfield-based Holzman, Rit- estate office has given up its troscopy. ploy this year along the Telegraph Birmingham-based event-mar- ter & Leduc P.L.L.C., which repre- Re/Max franchise after 20 years The company’s terahertz- Road corridor in Oakland County. keting firm C-4 Communications is sented the credit union, said with to spend more of its money on lo- based imaging systems are used Under the marketing proposal, going out of business — the vic- interest and penalties under cal advertising. in quality control and as inspec- automakers and aftermarket tim of automaker cutbacks, a Michigan’s Unfair Trade Prac- Formerly Re/Max Advantage, tion devices with applications for providers will be able to test and lawsuit defeat and loss of bank fi- tice Act, the final award could be the newly named firm is Advan- homeland security. develop connected vehicle sys- nancing. more than $9 million. tage Realty Inc. The firm was rat- — Tom Henderson tems and other technologies in a Founder Todd Smith is wrap- In October, the firm won a ed 19th in the Crain’s Book of protected, closed, safe and conve- ping up C-4’s business and judgment of $415,000 from Al Long Lists with 2007 sales of $127.5 mil- nient environment, MIS and preparing a new venture, which Ford Inc. for its participation in lion. Michigan First Credit Union wins MDOT said. he isn’t ready to unveil yet. the loans. Holzman said no one Tom Figlan said he and the oth- — Bill Shea Formerly known as Clear!Blue lawsuit against former insurer has been charged criminally. er two owners decided that mar- Communications until a federal After just two and a half hours — Tom Henderson judge in North Carolina in No- keting money would be better Wine.com can’t sell in state vember said a company there spent on local advertising rather Online wine retailer wine.com had the right to the name, C-4 is than spending it with Re/Max, CORRECTIONS announced Friday it must exit finalizing accounts and will which markets the network of broker-owned offices. Money was Ⅲ A calendar item on Page 20 of the Jan. 19 edition and on Page 24 of Michigan as a sales market due to close its doors and lay off its 32 today’s issue included an incorrect date for the Detroit Regional a recent law banning wine from employees in the next two also spent on a “stimulus” for Chamber’s “Nonsensical Marketing — Moosejaw’s Madness” program. being shipped to state residents. months. employees to help them through The correct date for the event is Feb. 9, from noon to 1:30 p.m. at the The San Francisco-based com- The court decision also includ- times in the slow real estate mar- Detroit Zoo in Royal Oak. Contact: (313) 596-0392 or ket. www.detroitchamber.com.

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January 26, 2009 CRAIN’S DETROIT BUSINESS Page 3

Finance Monthly: Big Deals

$40.1 M&A activity billion $8.1 Macomb job losses spread drops by 48% in billion number of deals, First in attack plan is economic outlook meeting ECONOMIC FORECAST 80% in value BY CHAD HALCOM with 39,463 of Macomb’s total labor Last week, the statewide unem- Ⅲ Presenter: Jim Jacobs, from 2007 to CRAIN’S DETROIT BUSINESS force of 411,154 unemployed. ployment rate reached 10 percent president, Macomb Community That’s compared with 7.5 per- for the first time since 1984. College 2008, Macomb County may feel the cent or 31,299 unemployed in a A regional DELEG figure for the Ⅲ Place: Zuccaro’s Country economic pain spread beyond its workforce of 416,223 the same Detroit Metropolitan Statistical House, 46601 Gratiot Ave., Page 11. heavy manufacturing sectors in month a year earlier, according to Area, including Macomb, showed Chesterfield Twp. 2009, with job losses creeping fur- the Michigan Department of Energy, 233,000, or 11.1 percent, jobless in Ⅲ Date: Feb. 3, 11:30 a.m. ther into the service and profes- December compared with 10 per- Ⅲ Sponsor: The Chamber Alliance Labor and Economic Growth. 2007 2008 sional fields and greater need for The figure is expected to climb cent, or 209,000, in November. of Macomb County working capital to keep businesses again when the state releases coun- County officials and business Ⅲ Cost: $25 for members, $40 afloat. ty employment figures this week, leaders expect to tackle the chal- for nonmembers Company index The county’s unemployment marking Macomb’s highest month- Ⅲ Web site: macombcounty rate for November was 9.6 percent, ly jobless rate in at least 17 years. See Macomb, Page 27 chamber.com. These organizations appear in this week’s Crain’s Detroit Business: Amherst Partners ...... 12 Ass’n. for Corporate Growth ...... 11 BlackEagle Partners ...... 11 Blue Care Network ...... 28 Borders Group ...... 12 Suppliers: Campbell-Ewald ...... 29 CCM Merger ...... 6 Center for Healthcare Research ...... 28 Chrysler ...... 1 Federal help Citizens Republic Bancorp ...... 4 Clark Hill ...... 6 Conway MacKenzie & Dunleavy ...... 13 Corporate Analytics ...... 12 Detroit Metropolitan Airport ...... 25 needed to Detroit Regional Chamber ...... 7 Dura Automotive Systems ...... 3 Drive Solutions ...... 29 Foley & Lardner ...... 13 avert disaster Ford Motor Co...... 1 General Motors Corp...... 1 General Sports and Entertainment ...... 25 BY DAVID BARKHOLZ Greektown Holdings ...... 6 AND ROBERT SHEREFKIN Greenpath ...... 24 CRAIN NEWS SERVICE Health Alliance Plan of Michigan ...... 28 HealthPlus of Michigan ...... 28 Auto suppliers are bracing for the worst NATHAN SKID/CRAIN’S DETROIT BUSINESS Health Plan of Michigan ...... 28 Luke Song of Mr. Song’s Millinery says the business was already doing well — and then Aretha Franklin February payday in decades. Henry Ford Health System ...... 1 went to the inauguration wearing one of his hats, and the phone started ringing off the hook. Without emergency federal help in the Huron Capital Partners ...... 11 next few weeks, hundreds of suppliers may Ilitch Holdings ...... 25 face bankruptcy or liquidation, said Neil Jaffe Raitt Heuer & Weiss ...... 13 De Koker, CEO of the Original Equipment Kelly Services ...... 13 Suppliers Association in Troy. Lawrence Gardner Assoc...... 11 “Suppliers’ problems Leo Burnett Detroit ...... 29 are exactly the same Mic. Dept. of Energy, Labor & Econ. Growth ...... 3 Aretha’s problems that General Mich. Health and Hospital Ass’n...... 28 Motors and Chrysler Mich. Infrastructure and Transportation Assn. . . . . 29 had in December,” De Mich. Municipal League ...... 29 Koker said, referring to Mich. State Medical Society ...... 1 the cash-flow woes that Molina Healthcare of Michigan ...... 28 led to the two automak- MotorCity Casino ...... 6 ers receiving approval Moza ...... 3 hat is hot for $17.4 billion in feder- Mr. Song ...... 3 al loans. “Barring a loan De Koker Newmark Knight Frank ...... 24 from the government, Northwest Airlines ...... 12 Orders pour in at Detroit’s Mr. Song’s after inauguration they would be liquidating today. And that’s Original Equipment Suppliers Ass’n...... 3 what’s going to happen to some suppliers Palace Sports and Entertainment ...... 25 unless we get help.” Peninsula Capital Partners ...... 11 BY NANCY KAFFER year customer.) February and March are critical to sup- Priority Health ...... 28 CRAIN’S DETROIT BUSINESS The shop also has received calls and orders pliers because that is when the effects from Somanetics ...... 4 from department stores, boutiques, even from vehicle output cuts in December and Janu- For the Song family, President Barack Oba- Team Detroit ...... 29 biannual trade show Women’s Wear In Nevada. ary will be felt, said Tim Leuliette, CEO of Total Health Care ...... 28 ma’s Jan. 20 inauguration ended when leg- Things were already going well at the family- supplier Dura Automotive Systems Inc. in Virchow Krause & Co...... 13 endary performer Aretha Franklin sang. owned business. The last six months saw busi- Rochester Hills. Walsh College ...... 13 That’s when the phones at Detroit-based Mr. ness grow by 50 percent, an uptick Song attrib- The Detroit 3 typically pay about $15 bil- Wayne County Airport Authority ...... 25 Song’s Millinery started ringing off the hook. utes to the economic downturn: “People are lion to suppliers on the second Tuesday of Welk & Assoc...... 6 And they haven’t stopped, said Luke Song, buying fewer clothes, so they’re shopping for every month for parts delivered in the pre- Wind Point Partners ...... 11 Mr. Song designer and CEO of Moza Inc., the accessories,” he said. vious 45 to 47 days. February’s payday will corporation that owns the Mr. Song brand. Mr. Song is still crunching year-end num- be closer to $5 billion to $7 billion, Leuliette “I expected it would be big, but not this big,” bers, but manager Lillian Song (Luke and Lil- said. Department index lian Song are the children of store founders a bemused Song said last week. “I thought The output cuts will leave distressed BANKRUPTCIES ...... 4 Hahn and Jin Song) said the label’s 2008 rev- suppliers short of cash. Some may be un- maybe (local papers) would cover it. But I have BUSINESS DIARY ...... 21 fan sites now.” enue may exceed $1 million, up from the more able to borrow working capital from banks CALENDAR ...... 24 Hundreds of individual orders have been typical high six figures. using their receivables as collateral, he placed for a $179 hat that pays homage to Expansion was already under discussion, said. CAPITOL BRIEFINGS...... 7 Franklin’s pricier model. (Song won’t sell an Luke Song said, simply to meet the demands of De Koker said supplier executives are fi- CLASSIFIED ADS ...... 22 exact copy, out of respect for the singer, a 20- See Hat, Page 26 See Suppliers, Page 26 KEITH CRAIN...... 8 LETTERS...... 9 OPINION ...... 8 Bloggers are coming Coming Wednesday: SmallTalk THIS WEEK @ Gain new insight and perspective as Small businesses are making a PEOPLE ...... 23 Crain’s reporters begin blogging. More dramatic shft — laying off workers RUMBLINGS ...... 30 WWW.CRAINSDETROIT.COM details in Web World, Page 30. and hiring contractors. WEEK IN REVIEW...... 30 20090126-NEWS--0004-NAT-CCI-CD_-- 1/23/2009 6:17 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 26, 2009 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Despite good ’08 news, price falls for Somanetics on ’09 talk Bruce Roberts said about fiscal pany has $70 million in cash and BY TOM HENDERSON 2009 ina conference call. no debt, plans to boost spending on CRAIN’S DETROIT BUSINESS Somanetics’ customers — hospi- marketing. On Wednesday, Troy-based So- tals — are hoarding cash and are ex- Roberts said the company would manetics Inc. (Nasdaq: SMTS) re- pected to do so for the foreseeable boost its marketing budget by $1 ported record quarterly net revenue future, bad news when you’re try- million and target an educational of $13.7 million for the fourth quar- ing to sell them medical devices campaign to the medical commu- ter that ended Nov. 30 and record that cost upward of $30,000. nity about the trial results of its net annual revenue for the year of “It was a great quarter, but guid- neonatal devices. $47.5 million. ance for next year was significantly “We’ve done a lot of clinical re- Net income in the quarter was below the Street’s estimates. search on our neonatal product $3.3 million, or 25 cents a share, They’re talking after-tax earnings with good results, and we will be beating Wall Street estimates by 3 of 57 to 60 cents a share, and the presenting that in ’09. That will cents a share and up from $2.8 mil- Street had been expecting 80 cents,” pay off,” he said. lion in the same quarter of 2007. Net Anthony Petrone, vice president of Jonathan Block, an analyst with income for the year was $10.4 mil- equity research for New York-based New York-based SunTrust Robinson lion, up from $9.7 million in 2007. Maxim Group L.L.C., told Crain’s. Humphrey Inc., rated Somanetics a re- The company had good news The company predicted net rev- duce in the report Thursday, writ- about the market’s reception of its enue of $54.6 million this year, an ing that “a strong balance sheet and oxygen sensor for infants in neona- increase of 15 percent, and pretax the stock’s recent share decline lead tal intensive care units. income of $13 million. us to believe that for now, most risk But the share price for Somanet- Petrone continued to rate the is out of the name. However, uncer- ics’ stock price dropped, finishing stock a buy in a report he issued tainties still lie ahead.” at $14.02 a share after starting the Thursday, with a 12-month target The stock has a 12-month high of day at $15.31. price of $18. $29.53 and a low of $10.01. It closed What happened? Petrone told Crain’s what he Friday at $14.05. Analysts liked fiscal 2008, but liked in the teleconference was Tom Henderson: (313) 446-0337, not what President and CEO hearing that Roberts, whose com- [email protected] Citizens Republic announces losses, CEO’s retirement

BY TOM HENDERSON “My retirement has been The bank’s liquidity was helped CRAIN’S DETROIT BUSINESS planned and is voluntary and is last year by a $200 million stock is- something I’ve been thinking sue to institutional investors and, Academy of the Sacred Heart On Thursday, Flint-based Citi- Leaders of Conscience Speaker Series zens Republic Bancorp Inc. (Nasdaq: about. ... I’ve been looking for the in December, by $300 million from Keynote Speaker Cokie Roberts CRBC) said it lost $195.4 million in right time to step aside, and I feel the U.S. Treasury Department’s Trou- Journalist and Bestselling Author the fourth quarter ending Dec. 31, we’ve put together a balance sheet ble Asset Relief Program. It was one Friday, February 13, 2009 compared to net income of $28 mil- with a strong capital position and of just two Michigan-based banks to Luncheon and Program 11:30 a.m. - 1:00 p.m. lion for the same quarter of 2007, a strong liquidity position and get TARP funding last year. The speaker series is part of the Academy of the Sacred and that it lost $393.1 million for have a team in place to take the Tom Henderson: (313) 446-0337, Heart’s Golden Anniversary celebrating 50 years at its the year, compared to net income bank forward,” he told Crain’s. [email protected] Bloomfield Hills campus and 158 years of education of $100.8 million in 2007. and outreach in the metropolitan Detroit area. The Friday morning, the bank hold- Leaders of Conscience Speaker Series aims to provide ing company said that President ethical guidance and real-life testimonials from and CEO William Hartman, 60, STREET TALK internationally-known personalities whose lives and was retiring effective Jan. 31 and works inspire students and the larger community with messages of hope will be replaced by Cathleen Nash, THIS WEEK’S STOCK TOTALS: 21 GAINERS, 41 LOSERS, 9 UNCHANGED and optimism. 46, currently executive vice presi- Main Sponsors Media Partners 01/23 01/16 PERCENT dent and head of regional banking. CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE THE NICOLA ANTAKLI FAMILY Was he eased into retirement? 1. Oxford Bank Corp./MI $9.49 $5.05 87.92 For reservations, visit www.ashmi.org/speakerseries 2. Domino's Pizza Inc. 6.65 5.90 12.71 or call 248-646-8900 x 170 3. Agree Realty Corp. 15.45 14.21 8.73 CMS Energy Corp. 12.02 11.15 7.80 The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent school. Located at 4. 1250 Kensington Road in Bloomfield Hills, it is a Catholic, college-preparatory school for girls (Age 3-Grade 5. Compuware Corp. 7.19 6.84 5.12 12) and boys (Age 3-Grade 8) of many cultures and faiths. The Academy is a member of the Network of Sacred Heart Schools, which includes 21 schools in the U. S. and affiliation with the Society of the Sacred Heart in 44 BANKRUPTCIES 6. Sun Communities Inc. 12.73 12.21 4.26 countries around the world. For more information call 248-646-8900 or visit us on the Web at www.ashmi.org. The following businesses filed 7. TechTeam Global Inc. 5.11 5.02 1.79 for Chapter 7 or 11 protection in 8. Federal Mogul Corp. 4.25 4.19 1.43 U.S. Bankruptcy Court in Detroit 9. Pulte Homes Inc. 10.74 10.66 0.75 Jan. 9-15. Under Chapter 11, a com- 10. Taubman Centers Inc. 21.68 21.63 0.23 pany files for reorganization. CDB’S LOW PERFORMERS 01/23 01/16 PERCENT Chapter 7 involves total liquida- CLOSE CLOSE CHANGE tion. 1. Asset Acceptance Capital Corp. $3.81 $4.95 -23.03 Fashion Foods Inc., 45754 Pentwa- 2. Tecumseh Products Co. 8.14 10.46 -22.18 ter, Macomb Township, voluntary 3. Rockwell Medical Tech. Inc. 3.77 4.66 -19.00 Chapter 7. Assets: $551; liabilities: 4. Syntel Inc. 21.90 26.16 -16.28 $115,681. 5. Kelly Services Inc. 10.17 11.92 -14.68 Woodward Gardens L.L.C., 33779 6. Somanetics Corp. 14.05 16.31 -13.86 Woodward Ave., Birmingham, vol- 7. Ramco-Gershenson Prop. Trust 4.98 5.70 -12.63 untary Chapter 11. Assets and lia- 8. Masco Corp. 9.04 10.24 -11.72 bilities not available. 9. General Motors Corp. 3.49 3.92 -10.97 Northstar Dining Inc., 32680 North- 10. Amerigon Inc. 3.13 3.50 -10.57 western Highway, Farmington Hills, voluntary Chapter 11. Assets Source: Bloomberg News. From a list of publicly owned companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. and liabilities not available. — Compiled by Mark Lewis DBpageAD.qxd 1/16/2009 2:46 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS January 26, 2009 MotorCity, Greektown deal with bad hands of debt

BY CHAD HALCOM tween the troubled Greektown Ltd. to review confidential new Robert Gordon month as part of the proceedings, AND NANCY KAFFER Casino owners and its creditors documents in the ongoing bank- of Detroit-based Gordon said. CRAIN’S DETROIT BUSINESS gives the parties until Feb. 1 to ruptcy case, in which Detroit is a Clark Hill P.L.C. “There still has to be some di- submit a “co-exclusive” plan to re- party. and attorney for gestion of the proposals that have Two Detroit casinos are rolling structure and settle its debts. A deputy press secretary for Greektown’s un- come in,” he said. “That’s why I snake eyes in the debt market. In other words, if the casino Detroit Mayor Ken Cockrel Jr. secured credi- think there’s going to be some A top ratings service downgrad- company doesn’t submit a plan — said he believes Greektown will tors’ committee. possible difficulty or delay in ed its outlook for MotorCity Casino’s with the consent of as many bond- submit a plan by week’s end, but Greektown, crafting a full plan before the parent company, citing a host of fi- holders and other litigants as pos- an attorney for the casino’s credi- majority-owned deadline.” nancial concerns. Greektown Hold- sible — by the deadline, creditors tors said there it might be “diffi- by the Sault Ste. Marian Ilitch-owned MotorCi- ings L.L.C. has until the end of this can submit restructuring plans of cult” to craft a complete plan with Gordon Marie Tribe of ty’s fiscal woes were enumerated week to submit a reorganization their own. all parties’ consent by the dead- Chippewa in a statement posted on Moody’s In- plan that can resolve its swelling The Detroit City Council expects to line. Indians, and the creditors have also vestors Services’ Web site, announc- debts without need for a sale. meet today in a closed session with As late as last week, involved had to discuss a few preliminary ing the downgrade of parent com- An agreement entered in U.S. its Law Department and Chicago- parties were discussing the shape offers to buy the casino and its as- pany CCM Merger Inc.’s outlook to Bankruptcy Court last month be- based law firm Shefsky & Froelich of a reorganization plan, said sets, which came in earlier this negative. Last fall, CCM owners con- tributed $25 million in cash equi- ty to enable the business to meet its September debt-to-EBITDA (earnings before interest, taxes, For some real muscle on your next deal, call Dykema. depreciation and amortization) ratio. Moody’s analysts warn that another equity infusion might be required for CCM to meet its year-end debt-to-EBITDA ratio. CCM’s debt limit is currently The Hanover Shared Imaging, LLC Barton Malow seven times EBITDA, according to Insurance Company Moody’s, but that ratio could in- Sale of 50% membership crease in 2009 because of a drop in Group, Inc. interest to Acquisition of L.C. Gaskins gaming revenue — down 11 per- Acquisition of Lubar Equity Fund LLC Construction Company cent in December — that could off- Verlan Holdings, Inc. March 2008 (Jacksonville, FL) set earnings from the casino’s ex- March 2008 October 2008 pansion and lead to negative cash flow. CCM’s owners would have to ask to amend its lending covenants to increase its debt-to-EBITDA ra- tio or risk becoming noncompli- ant, according to Moody’s. Greektown may have its work ITC Holdings Corp. Richard Smykal, Inc. cut out in proving it can resolve and Its Affiliates Sale of 100% debts as it faces falling revenue Strategic Development of the stock of and lost market share. A 2008 rev- Projects Richard Smykal, Inc. to enue and tax collection report RS Acquisitions, LLC prepared by the Michigan Gaming 2008-2009 Control Board shows that revenue August 2008 fell for all three casinos in Decem- ber, with Greektown’s dropping 12 percent. MotorCity ended 2008 with $464 million in revenue, compared with $480 million in 2007. Greek- town finished with $316 million Sircon Automotive compared with $341 million last Corporation Palace Sports & Components year. Entertainment, Inc. Sale of Company to Holdings, LLC “Nothing before us suggests the Vertafore, Inc. $205,000,000 industry isn’t still solvent. The Sale of Driveshaft casinos as a whole showed 1.8 per- Sale of Tampa Bay Lightning July 2008 and Glass Businesses cent revenue growth over the pre- June 2008 January and April 2008 vious year,” said Rick Kalm, the Gaming Control Board’s executive director. Edward Gudeman, president and managing partner of bank- ruptcy law firm Weik & Associates Michigan Tobacco P.C. in Royal Oak, said Greek- Settlement Finance Perrigo Company town’s ability to control its own fu- Authority Merger of ture likely comes down to showing J.B. Laboratories, Inc. an ability to make a profit on oper- $202,408,464.40 with and into ations — exclusive of debt. Tobacco Settlement Perrigo Company “If they can’t show that in the plan, or the plan fails to execute, Asset-Backed Bonds September 2008 the case could be converted to July 2008 Chapter 7 and be forced to sell,” he said. Greektown sought bankruptcy A Law Firm Unlike Any Other protection in May, citing at least $243 million in unsecured debt to 40 unsecured creditors, and has since gained regulatory approval from the Gaming Board to borrow another $100 million more. A new hotel is expected to open in a newly built tower along Mon- roe Street next month. California | Illinois | Michigan | Texas | Washington, D.C. Chad Halcom: (313) 446-6796, [email protected] © 2009 Dykema Gossett PLLC www.dykema.com Nancy Kaffer: (313) 446-0412, [email protected] 20090126-NEWS--0007-NAT-CCI-CD_-- 1/23/2009 5:56 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 7 Biz backs Cox’s call for refund from surplus LANSING — Here’s a worsen the state’s struc- ing it easier for local governments “We think that they should be Transportation Association is getting question: If you pay more tural deficit. to share services. enacting the reforms and ideas a new leader. in taxes to help the state Capitol Last week, the Detroit They cited an extra $339 million that we’ve given them for savings After 30 years representing the budget, and the state has Briefings chamber and other busi- in potential savings from reforms and not just plowing (surplus mon- heavy construction industry, leftover money when it ness organizations suggested by state audit reports. ey) back into the hole and then MITA executive vice president closes the annual books, ramped up pressure on Leaders from the chamber, De- wait for President Obama to fill Bob Patzer plans to retire early should you get some Granholm and lawmak- troit Renaissance Inc., the Michigan the rest of the hole,” Hubbard said. next year. Patzer previously was back? ers to tackle long-term Chamber of Commerce, the Grand Fritz said the governor’s 2010 head of the Associated Underground Some in the business structural budget re- Rapids Area Chamber of Commerce budget will include significant Contractors, which merged with the community — and Michi- forms and spending and the Center for Michigan empha- cuts and reforms, and Granholm Michigan Road Builders Association gan Attorney General cuts. sized the need for immediate ac- agrees that “to simply take the to become MITA in 2005. Mike Cox — say yes. The groups presented tion. stimulus money and do nothing Mike Nystrom, MITA’s vice That issue, over the a list of nearly $1.3 bil- They also rejected any use of the but patch holes in the budget with president of government and pub- Amy Lane $713 million left over in lion in cost-saving ideas federal economic stimulus pack- it, doesn’t serve our purposes.” lic relations, will succeed Patzer the state budget from fiscal 2008, for corrections, Medic- age to patch holes in the state bud- March 1, 2010, as executive vice flared up last week. aid, schools, consolidation of state get, and said the state needs to Comings & goings president. Republican gubernatorial hope- government departments, local make tough choices to permanent- Amy Lane: (517) 371-5355, ful Cox called for a tax refund in an government contracting and mak- ly solve its budget problems. The Michigan Infrastructure and [email protected]. opinion column, and at a Detroit Re- gional Chamber meeting. The total amount of last year’s $713 million surplus — which state officials are applying to the cur- rent-year budget — approaches the size of the $722 million Michigan Business Tax surcharge that busi- ness has targeted for elimination. The surcharge was added onto the new MBT in 2007, enabling the state to replace a widely unpopu- lar tax on services that was enact- ed as part of a budget solution. “Some of our members said, Smaller footprint. ‘Why don’t we suspend the sur- charge for a year?’ The surcharge is really weighing heavily on a lot of people,” said Sarah Hubbard, vice president of government rela- Bigger attitude. tions at the chamber. She said businesspeople feel the surplus is “their money that they * paid to get Michigan out of a bind Introducing the all-new GLK. Starting at $33,900. in 2007.” On the street, it is more compact than the average SUV. But as it fills your rearview mirror in the passing lane, there’s But the $713 million isn’t all new tax money. nothing small about it. With its self-adjusting sport suspension, the GLK plants its 19" tires firmly on any surface. Leslee Fritz, director of commu- A traction-control system that monitors wheel slip 6,000 times a minute helps make it impervious to most any weather nications in the state budget office, condition. And its interior delivers the utmost in technology, including an available Multimedia Package with a 600-watt said the carry-forward is a combi- MBUSA.com nation of stronger-than-expected multichannel surround-sound system. The all-new GLK. Great engineering is great engineering at any size. revenues and unspent money in departments, resulting from cost- containment measures. Of the surplus, $458 million is general fund money, and $255 mil- lion is School Aid Fund money. Fritz said putting the money to- ward this year’s deficit made sense, and helped avoid significant cuts to schools, universities, po- lice, fire and other core services. Even after a December cost-cut- ting executive order by Gov. Jen- nifer Granholm, the state still faces a roughly $300 million budget shortfall in the current year and a potential deficit of $1.4 billion in fiscal 2010. That’s based on state budget office projections earlier this month that factored in new revenue estimates from a Jan. 9 revenue-estimating conference. Fritz said the state cannot legal- ly refund money from the School Aid Fund, and even if it refunded the general fund portion of the sur- plus, the state would need to iden- tify a corresponding amount of cuts. Fritz called Cox’s comments “political grandstanding.” John Sellek, Cox’s press secre- tary said, “If there’s a will to re- fund the people’s money there’s a way to do it, and so they can come up with a plan.” Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester Hubbard said putting the gener- 36600 N. Woodward Ave. 39500 Grand River Ave. 595 S. Rochester Rd. al fund portion toward suspending (248) 644-8400 (248) 426-9600 (248) 652-3800 even part of the MBT surcharge would help, although Fritz said putting one-time money toward GLK 350 shown in Mars Red paint with optional running boards and Appearance, Lighting and Premium 1 Packages. *MSRP for a 2010 GLK 350 2-wheel drive, available in approximately April. Excludes all options, taxes, title, regis., that commitment would only transportation charge and dealer prep. GLK 350 4-wheel drive is currently available starting at an MSRP of $35,900. Excludes all options, taxes, title, regis., transportation charge and dealer prep. ©2009 Authorized Mercedes-Benz Dealers For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. 20090126-NEWS--0008-NAT-CCI-CD_-- 1/23/2009 5:44 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 26, 2009 OPINION OTHER VOICES Chambers agree: A tale from the front of the Michigan unemployment line

BY JENNIFER KNIGHSTEP ceptionist is helpful, informed and The next day, after I drop off the Cut state spending friendly. She registers me for the paperwork with Mary, I visit Ma- Michigan has the highest unem- ployment rate in the nation. If you next NWLB orientation. comb’s south campus. I meet Barb, ast week, business groups across the state carried a unit- still have a job, that unemploy- At the orientation, my instruc- the Special Populations counselor. ed message to Lansing: Cut millions of dollars in spend- ment rate is just tor gives me an appointment with She is competent, pleasant and ea- ing through substantive structural reform. a number. You a caseworker. Though the orienta- ger to help. Over the next few days, L tion is mid-October, my appoint- we choose another NWLB-ap- The groups — Detroit Regional Chamber, Detroit Renais- probably don’t know how frus- ment is Dec. 2, six weeks away. In proved program from the online sance Inc., Grand Rapids Area Chamber of Commerce and trating it is to the interim, I am instructed to list — communications — and Michigan Chamber of Commerce — want to meet with Gov. work within our gather paperwork to prove eligibil- make my schedule. Barb generous- Granholm and state House and Senate leadership to lobby for state’s system to ity and to select a few areas of ly pushes the tuition due date back the nearly $1.3 billion cost-saving ideas they presented. find another job. study that interest me from an on- for me, from Dec. 9 to Jan. 12, only two days before classes begin, to Case in point: The Justice Center at the Council of State I do. line list of approved careers and On Oct. 2, I programs. give NWLB time to process me. A Governments released its study last week that found Michigan lost my contract Knighstep After the six weeks pass, I arrive month, she is confident, is more could save $262 million a year by releasing prison inmates af- position as an archivist-historian a little early for than enough ter they’ve served 120 percent of their minimum sentence. at the General Motors Design Cen- my appointment time. Pressure for change — and impatience — is building with- ter along with dozens of my col- with my case- I call Mary to worker and join I am exactly the let her know that in the business community because state budget figures now leagues. “ Like hundreds of thousands of the fray at the person for whom I was able to get show a budget surplus of more than $700 million from fiscal others, I turned to the Michigan Clinton Township everything on my year 2008 will be carried into the state’s next fiscal year. Unemployment Insurance Agency office. The chaos this program was end completed. For businesses paying a 22 percent surcharge on the Michi- and Michigan Works, while at the is frightening, She immediately calls me back and gan Business Tax, this is bitter news, indeed. How much of same time sending out dozens of and the din de- designed, and it is, pressing. People asks why I that surcharge was really needed? résumés. I thought you might want to come here be- in important ways, haven’t provided Unfortunately, too many people in Lansing hear the caval- know what it’s like on the front cause their pay- the paperwork ry bugle and think the state will be saved by dollars from lines of the unemployment battle, ment has been de- failing me. she requested. Washington. should you lose your job. nied or delayed, ” I’m puzzled. I did leave the paper- The worst thing that could happen to Michigan is Washing- The state’s unemployment filing or for a myriad of Jennifer Knighstep system is surprisingly user-friend- other reasons. work for her, ton dumping a couple of billion dollars in stimulus money into ly: I have the option of filing my The receptionist handles them all days ago, but I recall the bustle of Lansing. That would prolong the status quo and delay what claim by phone or over the Inter- with grace and patience. the office and the state of her desk must be inevitable: structural government reform. net. I chose the Internet and filed My caseworker, Mary, fetches and am doubtful she knows she my claim easily within a few min- me half an hour late and guides me has it. She asks me to bring it to utes. Once I visit an unemploy- to her desk. It is piled high with her again, and gives me a specific A ‘new’ Cobo needs new rules ment office to validate that I have file folders, loose papers, sticky time to arrive at her office. I gather also posted my résumé on the notes. It takes her more than 10 the paperwork, rush to the office, A highlight of the auto show festivities in Detroit this Michigan Talent Bank Web site, I minutes to locate my file. She fills and she is not there. I reluctantly leave it with the receptionist. month was a ceremonial signing by Gov. Granholm of the law can call an automated phone sys- out a couple of paper forms, makes tem on my appointed day, every copies of my eligibility documents, For the next month, I don’t hear that will pave the way for expanding Cobo Center. back from Mary. I leave two, some- two weeks, to certify that I am eli- then asks for others that I didn’t The legislation also creates a new five-member authority times three messages every busi- gible to collect unemployment, and know she would need. I promise to ness day, and still no phone call. board to run it. receive my direct-deposit payment drop them off with the receptionist My messages are courteous, but Let’s hope all five yet-to-be-appointed members agree on one of $292 per week, after taxes. the next day. urgent. I need to know the status of I’ve been fortunate. My payment Then Mary and I discuss my ca- thing: Cobo must be competitive with other major conference my case. I will lose my classes and is always in the correct amount, reer options. She declines two of my centers. will not be able to start unless she and there has never been a delay. three choices, although they were AutoWeek, calls me back. I can’t pay my tu- Dutch Mandel, editor of sister publication wrote There is another program called both on the online list. She doesn’t ition. I can’t buy books. I can’t that one automaker saved $2 million in show-floor costs alone No Worker Left Behind, part of have a clear explanation of why, she arrange for child care. I can’t do by pulling out of the Detroit show. The same exhibit at the auto Michigan Works. NWLB provides just tells me that some programs on anything until she calls me back. training to displaced workers, giv- the list aren’t actually approved. show in Los Angeles cost about $700,000. “The price differen- But she will not call me back. ing them the education they need She tells me to go back to the list and tial,” wrote Mandel, “is pure Detroit labor and service costs.” In the third week of my mes- to pursue a new career. Unem- choose something else. Mary tells sages, Mary changes her outgoing Another problem: Automakers that want to wine and dine ployed machinists can become me that if I hurry, I can probably be- guests with their own chefs and cuisine have to pay the official truck drivers, ex-librarians can gin my education at Macomb Com- voice message to say that she will return all calls within 24 hours, Cobo supplier anyway. learn medical transcription. I re- munity College the upcoming se- and to please not leave multiple The new authority is a chance for a fresh start — but only view the qualification guidelines mester. I am motivated, and she is on the Michigan Works Web site encouraging. “Bring me that paper- messages. I grow increasingly if the authority decides we can no longer afford “business as and call the Clinton Township of- work,” Mary says, “and we’ll get it frustrated and disappointed. Barb usual.” fice for more information. The re- done.” See Letters, Page 9 KEITH CRAIN: Has democracy run amok in Detroit? I just heard that there have been porter of a representa- on Feb. 24 and run primary in August. ballot proposal before voters to well over 300 individuals who have tive democracy as the again on May 5. It’s no wonder that few if any change the way Council members picked up applications for the City next guy, but I have to Then the process will people vote in the city of Detroit. are elected. Council primary this summer. tell you — when that start all over again with We need to make democracy a bit And Detroit needs to change the Three hundred people who will many people decide the Aug. 4 primary and more manageable. I sure don’t at-large election system. Perhaps, need just 428 signatures apiece to that they are going to Nov. 3 general election know the answer; it’s a challenge like the District of Columbia, De- qualify for the Aug. 4 primary elec- get an application and to select a mayor to to increase participation without troit could have a combination of tion. run for elected office, it serve for four years. making it so burdensome that it members elected by wards or dis- Think of the poor voter. Can you may explain why the The sad part is that becomes a disincentive to vote and tricts and some elected citywide. imagine anyone trying to under- lottery is so popular in they tell me that the participate. There is no easy an- That might be a workable compro- stand a ballot with more than 300 Michigan. first mayoral primary swer. mise. possible choices? Voters will Meanwhile, next in February might have There is something wrong with Meanwhile we can only watch choose nine, and the top 18 vote- month, Detroit voters a turnout of about 15 this system that requires only 400- sausage being made, or call it getters will be on the ballot for a will decide which two of percent, or 70,000 vot- plus signatures to get your name democracy. It’s not always pretty, runoff in November. the 15 candidates vying for mayor ers. It’s anyone’s guess how many on the ballot and yet it takes some- but it sure beats what’s in second Now I am just as staunch a sup- will survive the special primary voters will turn out for the Council thing like 30,000 signatures to get a place. 20090126-NEWS--0009-NAT-CCI-CD_-- 1/22/2009 3:09 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 9 LETTERS: Economic storm tests us as a community

Editor: More and more face the brutal reali- munity rallies behind those most business environment and ster- he who is without sin not know If a family loses its home to fore- ty of becoming homeless due to cir- affected. Likewise, the test of our ling reputation as a fair, informa- what he is missing. closure, are they no longer part of cumstances beyond their control. community is how we rally behind tive reporter. Thankfully for Robert Thibodeau the community? If a mother loses At South Oakland Shelter, more the victims of the greatest econom- Crain’s and your readers, he has Detroit her job and requires unemploy- than half our clients are experienc- ic storm of our lives. elected to remain available for spe- ment benefits, is she now just an- ing homelessness for the first time. Kevin Roach cial projects. Crain’s Detroit Business other drain on society? If a child Armed with their degrees, their ré- Executive director Unlike so many high-minded re- welcomes letters to the editor. loses his dad to the war in Iraq and sumés and their dignity, they suck South Oakland Shelter porters with our print-media All letters will be considered for his mother loses everything, up their pride and ask for help. Royal Oak dailies, Ankeny actually responds publication, provided they are should he also lose his desk at Something that any one of us would to e-mails and comments made by signed and do not defame school? If a retiree loses her pen- do; something that any one of us Ankeny praised readers. And I doubt that Crain’s individuals or organizations. sion because she worked for a ma- may have to do some day. Editor: has had to backtrack on state- Letters may be edited for jor automotive company, do we tell As unemployment continues to With the reported retirement of ments attributed to his countless length and clarity. her to “just get a job?” These are rise and more families are dis- your stalwart reporter Robert interviews of newsmakers or con- Write: Editor, Crain’s Detroit the victims of the new “natural” placed from home, places like SOS Ankeny (Rumblings, Jan. 12), tributors to his columns. What a Business, 1155 Gratiot Ave., disaster: the economic hurricane. are needed now more than ever. Crain’s will have difficulty filling fantastic reputation he has built. Detroit, MI 48207-2997. More and more people are becom- As with any natural disaster, we his shoes simply because of his ex- With regard to his “questionable E-mail: [email protected] ing homeless for the first time. watch to see how quickly the com- pansive knowledge of Detroit’s limericks and atrocious puns,” let

OTHER VOICES ■ From Page 8 at Macomb e-mails me and pushes my tuition due date back again, tells me to go ahead and start the classes, but I still can’t buy books or arrange child care. I am afraid to begin classes, al- though I do, because I might lose my unemployment eligibility. Mary had mentioned a waiver, which she will have to issue, but when I leave a message asking about the waiver, she will not call back. I visit the office and am told UP

Market DOWN that Mary doesn’t see anyone with- out an appointment. To schedule ns of the company (i.e., cash values in excess of guarantees) as Market an appointment, I have to call her. I ask for a supervisor’s name, and they will not provide one. Finally, the day after my classes start, I receive a phone call from Michigan Works telling me that my file has been approved, my tuition is on its way, and I have an account at the Macomb bookstore to cover the cost of books and supplies. But there is still no word from Mary about the waiver that would 8% GUARANTEE allow me to continue to collect un- How does an sound right now? employment while in school. I leave two more messages for her Perhaps it sounds too good to be true. Over the past 5 years Schechter Wealth Strategies has helped nearly 100 families and hope that she, or anyone, will ™ phone me back before my next and endowments design a safe and secure* Annuity Arbitrage Program that has guaranteed favorable returns on millions of dollars. class, but I won’t hold my breath. Schechter will consult with you and your advisors on ways to couple a fixed annuity and a fixed life insurance policy that can I am exactly the person for whom this program was designed, and it is, provide returns above today’s bond rates. If you have funds earmarked for the long term and liquidity is not critical, talk to Schechter in important ways, failing me. The unemployment system to learn if you or your parents qualify for this proven wealth strategy. Contact Jason Zimmerman, Senior Managing Director and seems to work; I can collect just enough money to meet my obliga- in about 5 weeks we can find out if you qualify and what your exact yield could be. Program Minimum: $250,000 tions until my eligibility runs out. And that’s the rut I am stuck in. The most frustrating part? My fu- ture is in the hands of someone ei- ther so overwhelmed she can’t re- spond or who simply doesn’t care. The countless hours I spend in dogged pursuit of employment or 251 Pierce, Birmingham, MI | 248.731.9500 | www.schechterwealth.com education are negated by a system ill-equipped to handle the hundreds of thousands of people who need it. The Detroit area has some of the highest unemployment rates in the state. In November, the De- troit-Warren-Livonia unemploy- ment rate crept up to 9.5 percent, up from 8.8 percent in October. well as payments to stockholders’ or bondholders’ of the insurance companies. And right now there are about *An annuity arbitrage is a guaranteed contract with an investment grade insurance company where payment comes ahead of all non-guaranteed obligatio 850,000 résumés posted on the Jason R. Zimmerman,,MBA,CLU| Bradley K. Feldman, JD Michigan talent bank Web site, but Joseph W. Maczuga, LIC, LUTCF | Annette M. Marschall only 26,500 or so jobs available. Christopher J. Hale | Paul M. Snider With odds like that, is it any Robert M. Heinrich, JD | Marc R. Schechter wonder, then, that people are leav- Robert V. Schechter, MBA, CLU, ChFC ing the state in record numbers? Ilana K. Liss | Robert F. Boesiger, CPA, JD, LLM Jennifer Knighstep lives in Shel- by Township. DBpageAD.qxd 1/22/2009 11:45 AM Page 1

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January 26, 2009 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Monthly Delta-Northwest

Tom Henderson merger is one of the covers banking, finance and deals that will make technology. Call an impact this year. (313) 446-0337 or write Page 12. thenderson @crain. com.

Tom Henderson Few foretold this downturn When the bottom fell out of what seemed to have been a slowly sinking economy last September, it M&A deals dry up fell hard and fast. Not many experts saw it coming. Consider these local prognostications made earlier in 2008: In February, Dana Johnson, Fear of the unknown, lack of financing bench many players the chief economist for Comerica BY TOM HENDERSON Bank, was the CRAIN’S DETROIT BUSINESS keynote THE M&A CRASH OF 2008 speaker at a here’s a saying that family fortunes aren’t made breakfast of in bull markets, they’re made in bear markets. the Detroit T And while this likely will hold true in this bear chapter of the market, experts say fear and worry will rule in coming Association for months as things sort themselves out. Corporate M&A activity in metro Detroit plummeted last year Growth. Johnson — by 48 percent in number of deals and 80 percent in Johnson deal value. And a noticeable number of 2008 deals were batted .500 that day. He told the $40.1 crowd that although national from sales out of Chapter 11 and other distress situa- billion figures didn’t show it, yet, he was tions. convinced the U.S. had already “The worst possible environment for the private sec- entered a recession that probably tor is uncertainty, and the uncertainty in 2009 is unlike began in January. But he predicted anything I’ve seen. It’s historic. Everyone’s flying that it would be relatively short and blind,” said Scott Reilly, president and chief invest- shallow compared to the six other ment officer of Detroit-based Peninsula Capital Partners $36.1 U.S. recessions over the past 60 L.L.C., a provider of equity and billion years, lasting about eight months debt to companies in need of cap- and perhaps ending in September. ital. MORE DEALS “The federal policy apparatus is Here’s how local M&A experts really working hard to offset the recessionary dynamic,” he said. see things playing out as they M&A list live through the Chinese curse of In March, a quarterly report issued by the University of interesting times. They tell a tale Page 15 Michigan Research Seminar in of the good, the banks and the Quantitative Economics predicted ugly. Real estate sales a decline in national economic output of 1.5 percent for the first Page 17 quarter of 2008 and a no-growth The good second quarter, followed by third- Jason Runco, a partner at Office leases* quarter growth of 2.5 percent and Bloomfield Hills-based BlackEa- fourth-quarter growth of 2.9 gle Partners L.L.C., describes the Page 19 percent. investing environment for his In May, at the ACG’s second private-equity company, which Industrial leases* annual conference in West Bloomfield Township on mergers specializes in distressed compa- Page 20 and acquisitions, the message nies in need of turnaround, as was that hedge funds would keep “Halloween and Christmas *Extended list at www.crains middle-market M&A strong. One rolled into one.” detroit.com/finance panel’s title was: “Middle Market In addition to strong market M&A: The Reports of My Death Are opportunities, BlackEagle, Greatly Exaggerated.” which finished raising $200 million in July 2007, has All along, though, Larry Gardner, plenty of money left to do deals. the local ACG Wind Point Partners, a private-equity firm co-based in president and Southfield and Chicago, also has plenty of money, hav- founder of ing raised $900 million of its new $1 billion fund VII Troy-based Lawrence and with more than a third left to invest of its previous Gardner fund of $715 million. Associates “We feel very enthused and fortunate that we got the Inc., a fund raised. That’s a big pile of dry powder for one of consulting firm the best investing environments we’ve had. When we that helps find look back in 10 years, 2009 will be a good vintage year financing for for us,” said managing director Jim TenBroek. troubled Gardner “This is a good time to get deals done because there companies, are a lot of private-equity guys on the sideline. Even for was less sanguine. good companies, it’s tough to raise money now,” he He told Crain’s at an award night said. last March honoring the local stars $8.1 of M&A that he thought the Detroit-based Huron Capital Partners L.L.C. announced national economy was far worse off last January that it had finished raising its latest fund billion than the experts were of $350 million, and the firm, named the Crain’s deal- acknowledging and that it would maker of the year for 2007, had a strong 2008, too, com- get a lot worse before it got better. pleting nine transactions. Now? Managing director Brian Demkowicz said the com- “There will be a light at the end pany has more than $300 million left to invest, and with 123 deals 119 deals 62 deals of the tunnel,” says Gardner. “Will deal values off 35 percent to 40 percent in the last year, it be 2009? I don’t think so. If it’s he, too, says it’s a good time to buy. 2006 2007 2008 2010, it will be a blessing.” See M&As, Page 12 20090126-NEWS--0012,0013-NAT-CCI-CD_-- 1/22/2009 4:13 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 26, 2009 Finance Monthly: Big Deals 2008 M&As: Deals dry up Deals that will make an impact, ■ From Page 11

“Funds have 10-year life cy- Peninsula Capital two that ended up as wannabes cles. You buy for five years and sell for five raising new fund There were two 2008 deals in- of Cleveland-based National City and Greektown filed for Chapter years. Expecta- volving nonlocal companies that Corp. to Pittsburgh-based PNC Fi- 11 bankruptcy protection — the tions are high. Detroit-based Peninsula Capi- will have a noticeable effect on nancial Services Group for almost sale didn’t happen. We’ll look back tal Partners L.L.C. is bucking a Southeast Michigan, and two no- $5.6 billion in stock and cash was Roger Martin of Lansing-based at 2009 and 2010 national trend. While most pri- table deals that didn’t happen regarded as an early success of Martin Waymire Advocacy Communi- as very good vate-equity and venture-capi- the Troubled Asset Relief Pro- cations, who represents Greek- Demkowicz times to buy tal firms have delayed Delta and Northwest gram. town, said that any discussions of companies. fundraising during the current While the deal didn’t directly a sale were now under the aegis of “We’ll continue to be very ac- credit crunch, Peninsula is Delta Air Lines Inc. and Northwest pump any liquidity into the local the bankruptcy court. tive. We’ve mapped out a program raising a new fund of $400 mil- Airlines Corp. inked a $2.8 billion credit market, it shored up one of “The casino moved into Chap- over the next year, we’ve identi- lion, which it hopes to close by merger in October that is now the largest banks in the state. ter 11 protection, and those dis- fied the cities we’ll be in and we’ve midyear. lined up executives and are look- taking effect. NatCity, beleaguered by its cussions are now there,” he said. “We’ve got quite a bit of en- ing for platform companies for Northwest is the largest carrier affinity for subprime debt, was on thusiasm from our limited them to run.” at Detroit Metropolitan Airport the block for months. The good partners,” said Scott Reilly, The key will be to replace the with more than 500 daily flights. news to its Michigan employees Sale of Borders Group Inc. president and chief investment portion of a deal typically taken up The new airline eventually will was that it was bought by a bank Ann Arbor-based Borders Group officer, referring to his institu- by banks. He said if in the past it with no Michigan presence, en- Inc. (NYSE: BGP) grabbed head- tional and high-net-worth in- operate under just the Delta took $10 million of cash flow to get name, with its headquarters in suring most, if not all, of its lines in March when the nation’s vestors. “Subordinated debt is $35 million or $40 million in bank considered a good place to be, Atlanta, and will feature Delta branches would stay open. second-largest bookseller an- funding, it might take double that, food and flight attendant uni- The deal, which has since nounced it was for sale. From the now.” now. Peninsula provides mezza- forms this quarter. Northwest’s closed, created the fifth-largest start, analysts and industry insid- “There are lots of ways to get a nine financing, including equi- jets are being painted in Delta’s U.S. bank in terms of deposits, ers had questions. A merger with deal done. You just have to be cre- ty and subordinated debt, for colors. with $180 billion. New York-based Barnes and Noble, ative,” said Demkowicz. That middle-market companies, typ- The combined carriers will have There were also two would-be the nation’s largest bookseller, might include Huron putting in ically those with revenue be- deals that didn’t happen: was discussed, and the Wall 75,000 employees to serve cus- more than the 40 percent of equity tween $10 million and $250 mil- Street Journal reported that the tomers in 66 countries and more it traditionally puts into a deal, lion, seeking capital. than 375 cities across the globe, Greektown Casino and EIG company had formed a review and finding other nonbank Its last fund, of $315 million, more than any other airline. team to evaluate a purchase. lenders. was raised in 2005. However, the economic down- Much-discussed in the first Analysts had questioned the “People who have money are in — Tom Henderson turn recently forced Northwest to part of 2008 was the potential sale wisdom of a Borders-Barnes and the catbird’s seat,” said Walter of a 40 percent stake in Greektown “Bud” Aspatore, chairman of the delay the start of its much-touted Noble deal, noting that the book- ruptcy. Casino L.L.C. to Bloomfield Hills- Birmingham-based investment Detroit-Shanghai nonstop service sellers’ stores have overlapping “We’re hearing from those com- based Entertainment Interests banking firm of Amherst Partners from March 25 to June 3. service areas. panies every day. These are prof- L.L.C. “They will drive hard bar- Group, a partnership headed by By October, Borders announced itable companies that are having a gains. A lot of people they see will Pinnacle Racetrack owner Jerry that it was off the market. decrease in revenue and are still PNC and National City be in distressed situations and that Campbell. — Nancy Kaffer, Bill Shea, Tom profitable, but the banks are des- will drive prices lower. So 2009 The announced sale in October But as the year progressed — Henderson perate to clean up their balance could end up being a very good sheet moving forward. … year for private-equity firms with “If banks won’t restrain them- capital.” selves from their worst instincts, we face a pandemic meltdown.” The banks Garrett Kanehann, a BlackEagle co-founder, says that over the next Community banks, credit 12-18 months, deals will be event- unions, asset-based lenders and driven, as opposed to opportunity- private-equity firms all say they’re driven, and he says a big cause of inundated with calls from local those events is banks cutting off business owners who have been credit. cut loose by large banks eliminat- Compounding the problem, said ing lines of credit or calling in Kanehann, is that banks that have loans, in many traditionally pro- MSU College of Law cases forcing vided the senior even healthy com- debt that is the panies to the Skills for 21stCentury Practice If banks won’t backbone of brink of insolven- “ putting an M&A cy. restrain deal together, For their have either part, the themselves stopped their deal banks say Looking for New Associates, Law Clerks or Externs? lending or are they contin- from their asking for such ue to lend, a high returns that MSU College of Law can connect you with excellent candidates. claim that worst dealmakers are rings hollow looking else- to much of instincts, MSU Law offers a strong required curriculum enhanced by where for much of the rest of specialty programs and experiential learning. Our students their financing. the local fi- we face a Seb Coppola, obtain hands-on learning opportunities through clinics, a rigorous nancial commu- pandemic president of trial practice program, transactional simulation courses, and an nity. Rochester Hills- extensive externship program. Peninsula Capi- meltdown. based Corporate tal Partners has ” Analytics Inc., a been a direct ben- Garrett Kanehann, BlackEagle boutique M&A eficiary of banks and corporate re- Get to know an MSU Law student today. reducing commercial lending, but financing firm, said he has two Contact Assistant Dean Elliot Spoon in Career Services at Reilly is angry at major local deals he thought were near com- 517/432-6830 or [email protected] banks, nonetheless. pletion now on hold because of “They’re taking companies that trouble finding a senior lender. have never been late with pay- He said companies can replace ments and running them out of senior debt with subordinated business. If a company isn’t mak- debt or asset-based lending, “but ing its budget numbers, they’re it’s expensive debt. If your bank is driving them into insolvency, and once they’re insolvent, into bank- See M&As, Page 13 20090126-NEWS--0012,0013-NAT-CCI-CD_-- 1/22/2009 4:13 PM Page 2

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 13 Finance Monthly: Big Deals 2008

M&A AWARD NOMINEES SOUGHT Graduate students compete for Involved in a merger, acquisition or expansion in 2008? You may be eligible for the second annual Crain’s M&A Awards contest. Crain’s Detroit Business and the Detroit chapter of the Association for Corporate Growth will honor companies and individuals in the following categories: M&A award from ACG Detroit Best Deal of the Year: Under $100 million and $100 million or more. BY TOM HENDERSON Fourteen teams entered the competi- Leslie Sheidler, senior director of Dealmaker of the Year: M&A CRAIN’S DETROIT BUSINESS tion last year. Eighteen entered this strategic initiatives at Troy-based Kelly experts, lenders, CPAs, consultants year from five schools. Services Inc., a board member at ACG and attorneys, among others, are The winner of the second annual eligible. Round-one eliminations will be held and chair of the cup event, said the ACG Detroit Cup will be announced at Jan. 23-31 at UM, Walsh, the University of Best Woman or Minority Enterprise goals of the competition, in addition to Deal. the annual Crain’s Detroit Business/As- Detroit Mercy, Wayne State University and sociation for Corporate Growth doling out scholarship money, include mergers the Eli Broad College of Business at Michi- Best Expansions. This is a new and acquisitions awards night March 19 providing networking opportunities to category and can include physical plant expansions, gan State University. Teams will make 30- at Meadow Brook Hall. the graduate students with their expo- new product lines, diversification of client base and minute presentations. The event, open to teams of graduate sure to ACG members, and to serve as a other similar activities that lead to job creation and/or The winner at each venue will ad- students from business schools, has recruiting tool for ACG. economic growth. Two categories: Investments of less vance to the finals on Feb. 21 at Walsh than $50 million and $50 million or more. grown, but it will be hard to top the dra- “It’s a chance to get exposure for College in Troy. On Feb. 7, ACG mem- ma of last year’s contest, when a team ACG, and it’s a way to show students Lifetime Achievement: Senior-level executive who has from Walsh College eked out a win — and bers will again distribute a case study been involved in significant transactions and has made for the finalists to analyze, with teams how to do a deal and what’s going on a significant impact on the community. first prize of $10,000 in scholarship mon- with us. It’s a grassroots initiative,” she ey — over a team from the Stephen M. of three to five students submitting Applications for the M&A awards can be found at said. www.crainsdetroit.com/nominate. The deadline for Ross School of Business at the University of their executive summaries by e-mail on Last year, Detroit became the third entering is Jan. 30. Winners will be announced at a Michigan. Feb. 18. ACG chapter to sponsor a cup competi- strolling dinner to be scheduled in March. The five teams of finalists were given They will present 40-minute summa- The Detroit chapter of the Association for Corporate a case study on mergers and acquisi- tions before a panel of judges at Walsh tion, following Los Angeles and three days later. Philadelphia. This year, a second state Growth is part of a global association of professionals tions by ACG members to develop solu- involved in corporate growth, development and mergers competition was added, in western tions to problems in the study and pre- First prize will again be a $10,000 and acquisitions. The local chapter was formed in 1984 sent their findings to a panel of judges. scholarship, with the runner-up team Michigan. and has about 270 members. For more information, The Walsh team won by seven-tenths getting $5,000 and the other three final- Tom Henderson: (313) 446-0337, then- see chapters.acg.org/Detroit. of 1 percent. ists getting $1,000 each. [email protected]

2008: A Proper Mix of Platforms, M&As: ‘Doom and gloom’ Add-Ons, Exits and a New Fund ■ From Page 12

saying either find a new lender or hold off.” liquidate, you have no choice. He said as bank financing re- With all the money the Feds are mains tight, there will be a lot stuffing into banks, at some point, more seller financing and a lot they’ll start lending. But it looks more deferred payments. Acquisition of the assets of Exit via sale of all of the Purchase of all of the stock of Acquisition of the assets quite dark, right now.” “It’s going to be ugly,” said Van Southern Classic Stairs, Inc. stock of NorthernCap Berman Printing Company of Koch’s Orthopedic/ Conway, co-founder and senior by Southern Staircase Holdings, Inc. to by TouchPoint Prosthetic Services, Inc. managing director of Conway Holdings, Inc. totes-Isotoner Corp. Print Solutions Corp. by MOS Holdings, LLC The ugly MacKenzie & Dunleavy, a turn- January 2008 February 2008 March 2008 April 2008 “It was certainly doom and around and consulting firm. “In gloom the last half of 2008,” said other bad times, like 1980 or 1991, Jay Edwards, a partner specializ- you could always finance good ing in audit and busi- companies. ness transition at Now we can’t. Southfield-based ac- I’ve never Purchase of all of the stock of counting and consult- In other bad seen that be- Purchase of all of the assets Commercial Communications, ing firm Virchow “ fore.” of M.E.D., Inc. by Ross Inc. by TouchPoint Krause & Co. times ... Pete Sugar, Education LLC Print Solutions Corp. L.L.P. a member of May 2008 June 2008 He said he you could the Southfield- saw quite a few based law firm deals fall always of Jaffe Raitt through either Heuer & Weiss because of fi- finance P.C. and a spe- nancing or low- good cialist in cor- er valuations, porate financ- Purchase of all of the $350,000,000 Purchase of all of the assets “and I don’t see companies. ing, said he securities of RME, LLC d/b/a of Creative Products, Inc. credit markets heal- recently Response Mail Express The Huron Fund III LP by The Olon Group, Inc. ing themselves any Now we can’t. closed one July 2008 January 2008 December 2008 time soon. Deals will ” deal for a be hard to put togeth- triple A-rated Van Conway, er. If deals happen, company, but Conway MacKenzie & Dunleavy they’ll likely be with even then only We Look Forward To Investing With You In 2009! distressed compa- after the deal nies. Companies buying assets out was restructured for the seller to of bankruptcy, for example. There put in a larger chunk of financing. will be lots of troubled companies “Deals will get done where a HURON CAPITAL PARTNERS LLC on the block.” seller is highly motivated, either Steven Hilfinger, partner in the the owner is close to retirement or Detroit office of Foley & Lardner there’s a death of a principal or PLATFORM INVESTMENT CRITERIA TRANSACTION TYPES L.L.P. and co-chair of its automo- some other motivation. Those Revenues $20 million to $200 million Buyouts Buy & Build tive industry team, said “the near deals that get done will be EBITDA $3 million to $20 million Recapitalizations Growth Initiatives term remains pretty bleak. I’ve through a combination of lower Equity per Deal $10 million to $70 million Family Successions Corporate Spin-offs been doing mergers and acquisi- prices and lots of paper. Not bank tions for 21 years and I’ve never paper, seller paper. It’s not going seen anything like this. If you are to be a vibrant market for owner- www.huroncapital.com thinking of trying to sell your busi- ship changes on a voluntary ba- ness, you better try to push on sis.” 500 Griswold, Suite 2700 I Detroit, Michigan 48226 I Tel: 313.962.5800 through 2009, first. If you don’t Tom Henderson: (313) 446-0337, 225 Ross Street, 4th Floor I Pittsburgh, Pennsylvania 15219 I Tel: 412.201.7040 have to sell this year, you better [email protected] DBpageAD.qxd 1/13/2009 2:49 PM Page 1

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1HZ.LQJ6WUHHW :7ZHOYH0LOH5RDG 7UR\0, )DUPLQJWRQ+LOOV0, CRAIN'S LIST: MERGERS & ACQUISITIONS Annual Value of revenue Date transaction Rank Acquirer name Target Acquirer advisers Target advisers ($000,000) effective Description ($000,000) Tata Motors Ltd., Mumbai, India Jaguar Ltd.; and Land Rover Citigroup; J.P. Morgan; Kim & Chang June Ford agreed to pay $600 million into the Jaguar and Land $2,300.0 Ltd. units of Ford Motor Co. Allen & Overy; Arnold & Rover pension funds after the deal closes. Porter; AZB & Partners; Cuatrecasas, Goncalves 1. Pereira; Delphi & Co; Herbert Smith/Gleiss Lutz/ Stibbe; Stikeman Elliott; Webber Wentzel Consortium: Mazda Motor Corp.; Investor 20.4% of Ford Motor Co.'s Daiwa Secs SMBC J.P. Morgan $30,398.0 Pending Ford reduced its 33.4% stake to about 13% by selling $540.0 2. group 33.4% stake in Mazda 20.4% to Mazda and an investor group.

Platinum Equity L.L.C., Beverly Hills, Calif. Steering business, Delphi Kirkland & Ellis Skadden, Arps; FTI $2,700.0 Pending Deal includes assumption of $190 million in debt; GM will $440.0 3. Corp., Troy Consulting; Rothschild pay $250 million to Delphi when the sale closes.

Morgan Stanley Private Equity Learning Care Group Inc. Morgan Stanley; Clayton Freehills $800.0 June Remaining 40% stake is owned by ABC Learning Centres $420.0 (60% stake), Farmington Hills Utz; Skadden Arps Slate Ltd. In Australia. 4. Meagher & Flom JCIM L.L.C., formed by Johnson Controls, Plastech (underhood and Dickinson Wright Skadden Arps $1,000.0 July JCIM is a joint-venture between Johnson Controls Inc. and $400.0 Milwaukee interiors units) some of Plastech's term lenders. JCIM purchased Plastech's interiors assets on July 1 after being named the lead bidder 5. in Plastech's Ch.11 sale of its business units. JCIM is about 70% owned by JCI, and 30%-owned by some of Plastech's term lenders. Advantage Partners L.L.P., Japan GST AutoLeather Inc., Goldman Sachs; Allen & Dechert; Lazard L.L.C. April $300.0 Southfield Overy; Kirkland & Ellis; 6. Nagashima Ohno & Tsunematsu MP Thrift Investments L.P., New York Flagstar Bancorp Inc., Troy Sullivan & Cromwell; Kutak Rock; Skadden Pending Plans to sell 70% stake to affiliate of MatlinPatterson $266.0 Sandler O'Neill & Partners Arps Slate Meagher & Glaobal Advisors L.L.C. Deal dependent on Flagstar getting 7. Flom; Keefe Bruyette & TARP money from the federal government. Woods Range Resources Corp., Ft. Worth, Texas DTE Energy Co. gas J.P. Morgan Jan. 2008 Sale of portion of Barnett shale gas properties near Dallas. $250.0 8. properties in Texas

ProQuest Co., Ann Arbor Dialog, Cary, N.C. Cambridge Information Chiomenti Studio Legale $42.6 July Acquired company is online information-retrieval-system $250.0 Group firm previously owned by Thomson Reuters. Value is 8. estimated. Hampson Industries US Inc., Grand Prairie, Odyssey Industries Inc., Lake Pilsbury Winthrop Shaw Williams, Williams, June Odyssey is part of a mullti-target deal, currently worth $234.7 Texas Orion Pittman; KPMG Rattner & Plunkett; $234.7 million ($213 cash and 14.87 million shares of 10. Doeren Mayhew stock) Suzuki Motor Corp. General Motors Corp.'s J.P. Morgan $30,600.0 November GM sold its 3% percent stake in Suzuki Motor Co. $230.0 11. 3% stake of Suzuki back to the Japanese company.

Meadowbrook Insurance Group Inc., ProCentury Corp., Columbus, Bodman; Howard & Baker & Hostetler; July Paid $20 per share in cash and stock. Combined operation $227.2 Southfield Ohio Howard; Paracap Group Friedman Billings will operate under Meadowbrook name; two ProCentury Ramsey Group board members joined Meadowbrook's board. Acquired 12. company insures agencies, professional and trade associations and small to midsize businesses. Jos. Vaessen, Brussels, Belgium The Heating Co., Dilsen, Arts, Cleeren & Vennoten; $177.0 April Sold by Masco Corp., Taylor $155.0 Belgium Deloitte; Fortis; ING; KBC 13. Securities QBE Holdings Inc., Australia North Pointe Holdings Corp., Internal Honigman Miller $94.2 (net May Acquired company is a property and casualty insurer that $146.0 Southfield Schwartz and Cohn; J.P. premiums) makes specialty commercial and personal insurance 14. Morgan; MWW Group products. Plastipak Packaging Inc., Plymouth Europa Preforme Srl; and Grant Thornton; Seyburn KPMG $220.0 February Producers of plastic containers in Rome and Verbania, Italy. $135.0 15. Township Preforme Sud Srl Kahn Became subsidiary of Plastipak.

Wind Point Partners, Detroit Ryt-Way Industries Inc., Kaye Scholer; Deloitte Macquairie $130.0 August Blends soups, cereals and salad garnishes for retail sale. $120.0 16. Lakeville, Minn.

Fiat SpA, Italy Tritec Motors Ltd., a Pending Fiat agreed to buy Chrysler's Tritec enginer plant in Brazil $107.0 Chrysler-owned engine plant for $250 million Brazilian Reais 17. in Brazil The Renco Group Inc., New York (assets Global Interiors and Closures Cadwalader Wickersham & Beiten Burkhardt; $1,300.0 March Sale included entire business line including: book of $106.0 going to Inteva Products L.L.C., Renco is PE business of Delphi Corp., Taft; Kim & Chang Rothschild; Skadden business, manufacturing operations, intellectual property, 18. firm) Troy personnel, supplier contracts and share of joint ventures. Relaunched as Inteva Products. A & R Whitcoulls Group Holdings PTY Ltd., Borders Group Inc. UBS; Allen & Gledhill; June $105.0 Melbourne, Australia (Australia/New Zealand/ Clayton Utz 19. Singapore businesses) General Sports Derby Partners, Rochester Derby County Football Club Internal Internal $100.0 Jan. 2008 Deal was for the Derby County Rams soccer team of the $100.0 Ltd., Derby, England Football League Championship, and included 33,000-seat 20. Pride Park Stadium. Johnson & Johnson, Langhorne, Pa. Health Media Inc., Ann Arbor Internal Harris Williams; $23.0 (2007) October Provides online wellness programs for large employers and $100.0 Goodwin Proctor; HMOs. Sale price is more than $100 million. Acquired 20. Pricewaterhouse from Chrysalis Ventures. Coopers Hampson Industries US Inc., Grand Prairie, Global Tooling Systems Inc., Pilsbury Winthrop Shaw Williams, Williams, June Bought in concert with Odyssey Industries. $84.0 Texas Utica Pittman; KPMG Rattner & Plunkett; 22. Doeren Mayhew One Equity Partners L.L.C., New York Precision Gear Holdings, Latham & Watkins Kirkland & Ellis; June $80.0 Rochester Hills Houlihan Lokey; 23. Rothschild DTE Energy Services, Ann Arbor Shenango Group Inc., K&L Gates; Hunton & April Acquired operation produces coke used in iron-making $75.0 24. Pittsburgh Williams blast furnaces.

Wind Point Partners, Detroit Bulk Moldings Compounds Reed Smith; Ernst & Young Holland & Knight $116.0 June Provides bulk materials for auto and consumer products. $70.0 Inc., West Chicago, Ill. Add-on for Pennsylvania-based Citadel Plastics Holdings 25. Inc. Value is estimated. 26. Micros Systems Inc., Columbia, Md. Fry Inc., Ann Arbor Latham & Watkins August $67.0

Long Point Capital Inc., Royal Oak Clough, Harbour & Internal Internal $100.0+ December Engineering services firm. Deal estimated at more than $50 $50.0 27. Associates, Albany, N.Y. million.

Wind Point Partners, Detroit WeisnerMedia Financial Sonnenschein Nath & Media Resource Group $50.0 July Publishes four magazines targeting financial industry. Add- $50.0 27. Group of Colorado Rosenthal on for Summit Business Media portfolio company.

Long Point Capital Inc., Royal Oak UMA Enterprises Inc., Dickinson Wright $50.0+ Jan. 2008 Maker of decorative accessories. Deal estimated at more $50.0 27. Compton, Calif. than $50 million.

ESOP, Atlantic Plywood Corp., Woburn, Atlantic Plywood Corp., $50.0 June Distributor of plywood products and interior specialty panel $50.0 Mass. portfolio company of Long products. Deal estimated at larger than $50 million. 27. Point Capital, Royal Oak 20090126-NEWS--0016-NAT-CCI-CD_-- 1/22/2009 4:14 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 26, 2009 CRAIN'S LIST: MERGERS & ACQUISITIONS

Continued from page 15 Annual Value of revenue Date transaction Rank Acquirer name Target Acquirer advisers Target advisers ($000,000) effective Description ($000,000) Affinia Group Inc., Ann Arbor HBM Investment Limited Dorsey & Whitney November Asset acquried was 85% stake in HBM-owned Longkou $49.0 31. (85% stake) Haimeng Machining Co. Ltd., a brake drum and rotor manufacturing company in China. Hephaestus Holdings Inc. Global bearings business, Jenner & Block Skadden, Arps; Keybanc May Sale included machinery and equipment, intellectual $46.0 Delphi Corp., Troy Capital Markets property, assignment and assumption of certain customers 32. and supplier contracts, and Sandusky, Ohio, production and engineering facility. York Insurance Services Group Inc., American Risk Pooling Jones Day June Sold by First Mercury Financial Corp., Southfield $43.0 33. Parsippany, N.J. Consultants Inc., Southfield

TRW Integrated Chassis Systems L.L.C., Certain North American Honigan Miller Schwartz Skadden, Arps $295.0 Jan. 2008 Sales includes equipment from Delphi plants in Saginaw, $40.0 Saginaw braking machining and and Cohn Springhill, Tenn., and Oshawa, Ont. TRW will also enter a 34. module assembly assets of five-year lease of Delphi's facility in Saginaw. Delphi Corp., Troy MH Equity Investors, Indianapolis Entertainment Publications Greenberg Traurig; internal Evercore Group $182.7 (2007) May Mary Ann Rivers remained CEO following the acquisition. $34.9 35. Inc., Troy

Ener1 Inc., Fort Lauderdale, Fla. Remaining 19.5 percent stake Cowen & Co. Skadden, Arps August Ener1 paid Delphi $8 million cash and 2.86 million shares $27.6 of EnerDel battery joint of stock in return for the remaining stake in the joint 36. venture with Delphi Corp., venture. Annual revenue was unavailable as the EnerDel Troy venture had not begun to deliver product. Decoma International of America Inc., Exterior parts division of Varnum Rittering September Decoma, a unit of Canadian auto supplier Magna $24.8 37. Concord, Ontario; Goldman Sachs Credit Plastech Engineered Products International Inc., bought target in Chapter 11 bankruptcy partners L.P. Inc., Dearborn sale. Unknown whether debt was assumed. IGI SGR SpA, Milan, Italy Glass Idromassaggio SRL, Samory Fabbrini e Associati Internal August Maker of glass bathroom fixtures. Sold by Taylor-based $23.0 38. Oderzo, Italy Masco Corp.

Atlas Oil, Taylor 23 Indiana gas station Internal Internal $191.0 September 11 retail sites, distribution rights to seven sites, assets to five $22.0 39. transaction with BP Indiana tool road gas stations. Value is estimated.

Anderson Merchandisers L.P., Amarillo, Certain U.S. music inventory AP Services June Part of Handleman liquidation $19.5 40. Texas and fixed assets owned by Handleman Co., Troy Tenneco Inc., Lake Forest, Ill. Ride control assets of Delphi Mayer Brown Skadden, Arps $100.0 May Tenneco paid $10 million for parts inventory and $9 $19.0 41. Corp., Troy million for machinery and equipment. Tenneco company will also lease part of Delphi's Kettering, Ohio, plant. Ruth's Chris Restaurants Three Detroit-area Mitchell's Piper Jaffray Piper Jaffray $90.0 February Restaurants are part of a 21-restaurant acquisition valued at $18.0 42. Fish Markets and one $94 million. Value of local acquisitions is estimated. Cameron's Steakhouse Bienes Turgon SA de CV, Mexico Delphi Corp., Troy (global Butzel Long; Stellar Lincoln International $300.0 Pending Front exhaust module; included catalytic converters and $17.0 exhaust business) Alliance exhaust manifolds; manufacturing sites in Poland, Australia, 43. India, South Africa; JVs in China and Mexico; technical centers in United States and Luxembourg Tesco Plc, Hertfordshire, England Certain fixed assets of the UK AP Services September Part of Handleman liquidation $16.7 44. subsidiary of Handleman Co., Troy American Capital Assurance Corp., Florida Unit of North Pointe Internal Internal $20.0 (gross May Sold Home Pointe Insurance Co., Florida. $15.3 45. Holdings Corp., Southfield premiums)

MP Pumps Acquisition Corp., affiliate of MP Pumps unit of Tecumseh Jaeckle Fleischmann & Rothschild North $16.6 June Target was Fraser-based maker of centrifugal pumps. $14.6 46. Lionheart Ventures, Tampa Products, Ann Arbor Mugel America

Unnamed U.S. private equity firm Gyro International, London, February Returned $9.5 million to Beringea investors on an $13.0 portfolio company of investment of $3.5 million. Total sales price was $97 47. Beringea L.L.C., Farmington million. Hills Anderson Merchandisers L.P., Amarillo, Inventory, fixed assets and Osler Hoskin & Harcourt AP Services September Part of Handleman liquidation $12.6 48. Texas operations of Handleman Co.'s Canadian subsidiary. Gale, Cengage Learning, Farmington Hills HighBeam Research, Chicago Internal Berkery, Noyes & Co. $7.0 December Purchase includes library business as well as $10.5 49. L.L.C. encyclopedia.com

Strategic Staffing Solutions Inc., Detroit National Technical Systems Honigman Miller Dan Schasteen, Lagunaa $20.0 November Expanded Strategic Staffing's footprint to the West Coast $10.0 Inc., San Francisco, contracts Niguel, Calif. and added 180 employees. 50. and technical resources information technology assets Huron Capital Partners L.L.C., Detroit Response Mail Express L.L.C., Crowe Horwath; Honigman Gornto & Gornto $27.1 July Direct marketing services. Deal is estimated at more than $10.0 50. Tampa Miller $10 million.

Huron Capital Partners L.L.C., Detroit Berman Printing Co., Crowe Horwath; Honigman Katz Teller $29.4 March Commercial print and document management services. $10.0 50. Cincinnati Miller Deal is estimated at more than $10 million.

Huron Capital Partners L.L.C., Detroit Commercial Communications Crowe Horwath; Honigman von Briesen & Roper $34.5 June Commercial print and document management services. $10.0 50. Inc., Hartland, Wisc. Miller Deal is estimated at more than $10 million.

GE Analytical Instruments, Colorado Sensicore Inc., Ann Arbor Internal Internal April Company produces handheld sensors for water-quality $10.0 50. monitoring. Deal estimated at more than $10 million.

Strength Capital Partners L.L.C., Underground Construction Jaffe Raitt $20.0 November Add-on for Inland Pipe Rehabilitation. Acquied company $10.0 50. Birmingham Inc., Knoxville, Tenn. does trenchless rehab of sewer pipelines.

BlackEagle Partners L.L.C., Bloomfield Hills Eurodesign Cabinets, Chino, Honigman Miller Duff & Phelps $21.0 June Makes and installs semi-custom and custom cabinets for $10.0 50. Calif. homes in California. Deal estimated at more than $10 million. Rockbridge Growth Equity L.L.C., Livonia Northcentral University of Berkery Noyes December Acquired from Donald Hecht. Online school that offers $10.0 50. Prescott Valley, Ariz. advanced degrees with 7,500 students. Price estimated at $10 million-plus. BlackEagle Partners L.L.C., Bloomfield Hills InStar Services Group, Ft. Honigman Miller Morgan Keegan $82.0 August National provider of disaster response, insurance restoration $10.0 50. Worth and reconstruction services. Deal estimated at more than $10 million. MidOcean Partners, New York Northern Cap & Glove Kirkland & Ellis Honigman Miller $26.2 February Maker of apparel and accessories. Deal is estimated at more $10.0 50. portfolio company of Huron than $10 million. Capital Partners L.L.C. Long Point Capital Inc., Royal Oak Southern Management Internal Internal $10.0+ May Cost and project management. Bought for portfolio $10.0 50. Group, Columbia, S.C. company Cummin Group. Deal estimated at more than $10 million. Roger Newton Esperion Therapeutics Inc., Honigman Miller April Newton took company public in $54 million IPO in 2004, $10.0 Ann Arbor then sold 2004. Bought back from Pfizer in the wake of a 50. Pfizer downsizing. Deal is estimated at more than $10 million. Long Point Capital Inc., Royal Oak Construction Controls Group Internal Internal $10.0+ Jan. 2008 Bought for portfolio company, Cummin Group Inc., also in $10.0 50. Inc., California California. Sale estimated at more than $10 million.

Source: Company submissions, Crain's research, Bloomberg News and Mergerstat L.L.C. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2007 transactions, only transactions valued at $10 million or more are included. 20090126-NEWS--0017-NAT-CCI-CD_-- 1/22/2009 4:49 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 17 Finance Monthly: Big Deals 2008 CRAIN'S LIST: LOCAL SALES Ranked by price

Square feet Price Rank Building Buyer Seller Broker/advisers number of units ($000,000) 1. Renaissance Center, Detroit General Motors, Detroit Consortuim of lenders NA 2,300,000 $626.0 2. Liberty Portfolio of 25 properties, Metropolitan Craven Walk L.L.C., NJ Liberty Property Trust, PA CB Richard Ellis 952,000 $63.0 Detroit Lexington Apartments, Southfield Orlo Fund, MD Metropolitan Southfield Partners, Southfield NA 827,970 $42.9 3. 1,135 units 4. Northland Center, Southfield Ashkenazy Acquisition Corp., NY Jager Management Inc., PA Marcus & Millichap 663,000 $32.0 B 5. Willowtree, Ann Arbor American Campus Communities, Texas GMH Communities Trust, PA NA 312 units $30.3 6. 5990 Sashabaw Road & 5105-5217 Highland DS Partners L.P., Bloomfield Hills Regency Centers L.P., Fla. CB Richard Ellis 185,184 $25.0 B Road, Independence and Waterford The Hamptons of Cloverlane, Ypsilanti Sterling Equities, NY; Timberland Partners, MN Apartment Investment Management Co., Denver CB Richard Ellis 390,000 $22.0 7. 440 units 8. National City Building, Royal Oak Howard & Howard Attornyes P.C., Royal Oak National City Bank Signature Associates 152,562 $21.0 9. 1700 Fairlane (3 properties), Dearborn, Allen Park Elangate Investments, Bingham Farms Beneson Strategy Group, NY Grubb & Ellis 205,000 $19.7 10. 977 E. 14 Mile, Troy Investment Grade Loans, CA Allegra Development, Grosse Pointe Farms Signature Associates 173,000 $19.0 Lafayette Towers, Detroit Northern Group, NY Habitat Co., Chicago Hendricks & Partners 483,916 $16.0 11. 584 units 11. 40600 Plymouth Road & 31077 Durr Drive, Wixom Durr Plymouth L.L.C., East Lansing Durr Systems Inc., Warren Signature Associates 377,060 $16.0 Plymouth Township and Wixom 13. Willowtree Towers, Ann Arbor American Campus Communities, Texas GMH Communities Trust, PA NA 163 units $15.8 14. ThyssenKrupp Materials NA Headquarters, Eleven Mile Road L.L.C., Oak Park Lincolnshire Development, Troy Marcus & Millichap 64,607 $15.4 Southfield 14. 22355 W. 11 Mile, Southfield Eleven Mile Road L.L.C., Miami Beach Kirco Management Co., Troy Marcus & Millichap 64,607 $15.4 16. 27404 Drake Road, Farmington Hills SG Technologies, Troy Lexington Drake L.P. Signature Associates 116,824 $15.0 17. 40 Oak Hollow (2 properties), Southfield Ashley Capital, NY Transwestern, IL NA 159,974 $12.4 18. 20501 Ford Road, Dearborn Henry Ford Community College, Dearborn Society of Manufacturing Engineers, Dearborn Grubb & Ellis 136,000 $11.0 19. Copart Auto Auction, Woodhaven Copart of Conneticut, CT Woodmich L.L.C., Williamsburg Marcus & Millichap 64,250 $10.5 20. 250 Stephenson Highway, Troy 250 Associates L.L.C. Axium International, CA Signature Associates 104,449 $10.4

List is based on information from CoStar Group Inc., Real Capital Analytics, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. B Crain's estimate. LIST RESEARCHED BY DANIEL DUGGAN DBpageAD.qxd 1/21/2009 11:28 AM Page 1 20090126-NEWS--0019-NAT-CCI-CD_-- 1/22/2009 4:52 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 19 Finance Monthly: Big Deals 2008

CRAIN'S LIST: OFFICE LEASES Ranked by square feet For an expanded list, go to www.crainsdetroit.com/finance

Asking Square Rank Building rate Owner Tenant Broker feet 1. 2211 Old Earhart Road, Ann Arbor $19.50 Kojaian Management Co. Con-way Freight Inc. Bluestone Realty Advisors L.L.C. 132,247

2. 1401 Crooks Road, Troy $5.95 B Etkin Management Inteva Jones Lang LaSalle 125,138

3. Dearborn Town Center, Dearborn $26.00 Redico Oakwood Healthcare Inc. Redico 103,106

4. Midwest Paper, Detroit $7.90 The Realty Co. City of Detroit Grubb & Ellis 100,000

5. Comerica Tower, Detroit $24.50 iStar Financial Dickinson Wright P.L.L.C. C CB Richard Ellis 98,676

6. 17380 Laurel Park Drive North, Livonia $21.75 Schostak Brothers & Co. Inc. Tower Automotive CB Richard Ellis, Signature Associates 76,017

7. 3290 W. Big Beaver, Troy $17.25 Sheffield Owner L.L.C . Leo Burnett Detroit C NAI Farbman 75,000

7. 45000 Helm St., Plymouth Township $19.01 B Visteon Corp. JCIM L.L.C. CB Richard Ellis 75,000

9. Farmington Officenter I, Farmington Hills $15.00 Kojaian Management Co. Allstate Insurance C CB Richard Ellis 71,900

10. 2301 Green Road, Ann Arbor $19.11 Corporate Realty Blue Cross Blue Shield of Michigan C UGL Equis, First Martin Realty 67,000

11. 151 W. Fort St., Detriot $12.00 151 West Fort Street Associates L.L.C. TWW & Associates Exclusive Realty 66,000

12. Troy Officentre, Troy $17.85 Osprey General Physics Colliers, CB Richard Ellis 61,114

13. 39001 W. 12 Mile, Farmington Hills $18.00 Mountain View Partners L.L.C. Harman Becker Automotive Systems Inc. C Signature Associates 60,000

14. 300 E. Big Beaver, Troy $16.45 Lear Corp. General Physics Corp. CB Richard Ellis 59,998

2601 Cambridge Court, Auburn Hills $23.50 University Development Co. Plante & Moran Plante Moran Cresa, Stuart Frankel 57,750 15. Development 3155 W. Big Beaver Road, Troy $18.50 ThyssenKrupp Budd Co. BAE Systems Land & Armaments Plante Moran Cresa, Nemer Property 56,445 16. Group 17. Columbia Center II, Troy $28.00 Kirco Management Services Giarmarco, Mullins, Horton P.C. Grubb & Ellis 52,142

18. LaSalle Technology Centre South, Novi $15.25 Northern Equities Group Harman Becker Automotive Systems Inc. Signature Associates 51,536

Thatcher Center, Troy $16.58 Emmes Co. Siemens Product Lifecycle Management CB Richard Ellis 51,000 19. Software Inc. 20. Farmington Hills Corp. Campus, Farmington Hills $8.08 Kojaian Management Co. Henniges Automotive Kojaian Management Co. 50,286

List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information. B Crain's estimate. C Lease renewal. LIST RESEARCHED BY DANIEL DUGGAN

Academy of the Sacred Heart Leaders of Conscience Speaker Series Keynote Speaker Cokie Roberts Friday, February 13, 2009 Luncheon and Program 11:30 a.m. - 1:00 p.m. The speaker series is part of the Academy of the Sacred Heart’s Golden Anniversary A Window to the World celebrating 50 years at its Bloomfield Hills A Golden Celebration campus and 158 years of education and Discover a world of leadership and educational excellence outreach in the metropolitan Detroit area. The Leaders of Conscience Speaker Series Where service to community and faith prepare us for tomorrow aims to provide ethical guidance and real- Where milestones are not destinations, but starting points life testimonials from internationally-known personalities whose Where character is both developed and revealed lives and works inspire students and the larger community with messages of hope and optimism. Welcome to Academy of the Sacred Heart Where Learning is a Window to the World For reservations, visit www.ashmi.org/speakerseries or call 248-646-8900 x 170

MAIN SPONSORS MEDIA PARTNERS

THE NICOLA ANTAKLI FAMILY

The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent school. Located at 1250 Kensington Road in Bloomfield Hills, it is a Catholic, college-preparatory school for girls (Age 3-Grade 12) and boys (Age 3-Grade 8) of many cultures and faiths. The Academy is a member of the Network of Sacred Heart Schools, which includes 21 schools in the U. S. and affiliation with the Society of the Sacred Heart in 44 countries around the world. For more information call 248-646-8900 or visit us on the Web at www.ashmi.org. 20090126-NEWS--0020-NAT-CCI-CD_-- 1/22/2009 4:50 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 26, 2009 Finance Monthly: Big Deals 2008

CRAIN'S LIST: INDUSTRIAL LEASES Ranked by square feet For an expanded list, go to www.crainsdetroit.com/finance

Rank Building Asking rate Owner Tenant Broker Square feet 1. Northline Industrial Center, Romulus $2.85 Northline Comprehensive Logistics Co. B CB Richard Ellis, Colliers 718,684 2. 28301 Schoolcraft Road, Livonia $4.75 Ashley Capital Technicolor Videocassette of Michigan B Ashley Capital 715,096 3. 151 Lafayette, Mt. Clemens $2.00 Steel Pro Metro International Trade Services Signature Associates 674,432 7900 N. Haggerty Road, Canton $4.15 Levco Bay Logistics Co. B Signature Associates, Equity Industrial 442,500 4. L.P. 5. 36501 Van Born Road, Romulus $4.15 Ashley Capital Bay Logistics Co. B Signature Associates 416,487 Pinnacle Logistics Park, Redford $3.95 General Development Co. Technicolor Videocassette of Michigan B Signature Associates, Friedman Real 393,940 6. Estate Group 7. Interchange West Business Center, Van Buren $4.75 Kojaian Management Co. Neapco Driveline L.L.C. CB Richard Ellis, Grubb & Ellis 342,856 Township 8. 13600 Fullerton St., Detroit $3.85 Ashley Capital Progressive Distribution Centers Inc. Signature Associates 315,356 9. 4815 Cabot St., Detroit $3.25 Industrial Realty Group Metro International Trade Services Signature Associates 313,388 10. 26195 Bunert Road, Warren $4.75 Ashley Capital Modular Automotive Systems L.L.C. Ashley Capital 276,790 11. 36445 Van Born Road, Romulus $4.15 Ashley Capital Plastipak Packaging Inc. Signature Associates 274,007 12. 36667 Schoolcraft Road, Livonia $2.00 C Kin Properties Inc. NYX Inc. Principal Associates, CB Richard Ellis 252,262 13. 17800 Dix-Toledo Road, Brownstown Township $4.50 Ashley Capital Syncreon US Inc. CB Richard Ellis 224,388 14. 1400 Rochester Road, Troy $3.25 EDAG Inc. Bostick Enterprises Signature Associates 189,000 15. 19771 Brownstown Center Drive, Brownstown $4.50 Ashley Capital Serco Inc. Ashley Capital 175,270 Township 16. Crossroads Distribution Building I, Van Buren $4.50 Ashley Capital Exel Logistics Grubb & Ellis 159,504 Township 17. 12601 Southfield Road, Detroit $2.76 Hagar Pacific Properties & 12601 ASSOC.L Budco CB Richard Ellis 150,000 18. 2627 Clark, Detroit $7.50 Clark Street Redevelopment One L.L.C. Vitec L.L.C. B Signature Associates 147,000 19. 36445 Van Born Road, Romulus $4.15 Ashley Capital Archway Marketing Services Inc. Ashley Capital 146,733 20. 18640 Dix-Toledo Road, Brownstown Township $4.50 Ashley Capital Transfreight L.L.C. CB Richard Ellis 144,447 21. 23400 Haggerty Road, Farmington Hills $4.00 Diamond Associates Ltd. Partnership Diamond Automations Inc. Signature Associates 144,000 22. 32500 Van Born Road, Wayne $4.00 Metro Commerce Center L.L.C. Plastipak Packaging Inc. B NAI Farbman 140,000 23. 28330 Plymouth Road, Livonia $4.35 Ashley Capital CLM Pallet Recycling Inc. Ashley Capital 139,748 24. 20495 Pennsylvania Road, Brownstown Township $4.50 Ashley Capital TDS/US Inc. CB Richard Ellis 139,080 25. Warren Business Center, Warren $4.75 Ashley Warren L.L.C. International Automotive Components Grubb & Ellis 138,268 26. 1515 Newburgh Road, Westland $3.25 Insite Westland L.L.C. Comprehensive Logistics Co. CB Richard Ellis 136,800 27. 7000 19 Mile, Sterling Heights $6.10 Ledds Development Co. Key Safety Systems B UGL Equis, Grubb & Ellis 135,754 25295 Guenther Drive, Warren $4.25 Welsh Cos. Oakley Industries Grubb & Ellis, Plante Moran Cresa, 134,805 28. Butzel Long 29. 28320 Plymouth Road, Livonia $4.35 Ashley Capital Virginia Tile Co. Ashley Capital 127,218 30. 2727 Beech Daly Road, Dearborn Heights $2.95 Pacifica Capital Corp. International Shipping Co. Signature Associates 124,000 31. 41873 Ecorse Road, Belleville $4.50 Ashley Capital ABX Logistics Ashley Capital 121,480 32. Redford Trade Center, Redford Township $3.95 Redford Trade Center American Bottling Co. B Signature Associates 120,160 33. Distriplex Metro I, Romulus $4.95 Distriplex Metro One L.L.C. Nippon Express Colliers, Signature Associates 115,000 34. 51400 Bellestri Court, Shelby Township $4.95 C & Son L.L.C. Models & Tools Inc. Kwekel Cos., Grubb & Ellis 114,995 35. 1199 Austin Court, Howell $6.50 CFM Inc. Anheuser-Busch Signature Associates 112,500 36. 9800 General Drive, Plymouth $4.75 Falcon Center Properties II Plastipak Packaging Inc. B Signature Associates 110,000 37. Allied Commerce Center, Livonia $3.75 DJS Holdings Crown Group Livonia Plante Moran Cresa, Grubb & Ellis 106,014 38. 1515-1625 Newburgh Road, Westland $3.25 Insite Westland L.L.C. V.V.P. Auto Glass Inc. Signature Associates 104,000 39. 5775 E. 10 Mile Road, Warren $5.05 C N.L. Ventures PT Inc. L. Mason Capitani 102,000 40. 49800 Martin Drive, Wixom $4.25 Kimbal & Russell Comcast Signature Associates 101,833 30220 Oak Creek Drive, Wixom $4.50 US Real Property L.L.C. Eberspacher North America Inc. Plante Moran Cresa, Signature 101,250 41. Associates 42. 11800 Sears Drive, Livonia $3.95 FR Sears Drive L.L.C. West Win Ltd. Friedman Real Estate Group, Colliers 99,930 43. 1515 Newburg Road, Westland $4.00 Insite Westland L.L.C. CEVA Logistics US Inc. CB Richard Ellis 97,200 44. 25295 Guenther Drive, Warren $5.25 Welsh Warren L.L.C. Brose Jefferson Inc. Signature Associates, CB Richard Ellis 96,250 45. Interchange West Business Center, Van Buren $6.50 Kojaian Management Co. Vistar Kojaian Management Co. 94,200 Township 46. 12200 Tech Center Drive, Livonia $4.94 C Stuart Frankel Development Kelsey-Hayes Co. Colliers 94,012 47. 42315 Mancini Drive, Sterling Heights $4.95 Sterling Properties L.L.C. Kelsey-Hayes Co. Grubb & Ellis, Colliers 93,000 48. 27007 Fort St., Brownstown Township $4.72 C Rainwater Realty PSC Containers Services Colliers 91,484 49. Van Buren Business Center, Van Buren Township $4.95 Van Buren Business Park Associates Panalpna North America Grubb & Ellis, Signature Associates 89,846 50. 1515 Newburg Road, Westland $4.00 Insite Westland L.L.C. CEVA Logistics US Inc. CB Richard Ellis 87,800 51. Warren Business Center, Warren $4.50 Ashley Warren L.L.C. Lipari Deli Foods Inc. Grubb & Ellis 84,732 52. Orion Commerce Center, Lake Orion $5.80 Ashley Capital Fuyao Automotive GVA Detroit, Signature Associates 82,648 53. 2805 Bellingham Drive, Troy $12.50 Kojaian Management Co. SECO Tools Inc. CB Richard Ellis 81,600 54. Sons Industrial Park, Chesterfield Township $2.95 Chesterfield 5 L.L.C. Offsite Manufacturing Grubb & Ellis 72,572 55. 28000 Five M Drive, Romulus $8.00 Monmouth Real Estate Investment Corp. FedEx B Signature Associates 71,933

List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information. B Lease renewal. C Crain's estimate. LIST RESEARCHED BY DANIEL DUGGAN 20090126-NEWS--0021-NAT-CCI-CD_-- 1/22/2009 3:06 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 21

BUSINESS DIARY ACQUISITIONS hired Impact Communications Inc., www.chase.com. PWB Marketing Communications, Baker College, Clinton Township, is Leawood, Kan., to promote its low ad- Ann Arbor, has launched its Demand offering a new five-year bachelor-to- TRW Automotive U.S. L.L.C., Livonia, a visor fee message. Generation focus, designed to help MBA program that will let students subsidiary of TRW Automotive Hold- MERGERS clients effectively integrate marketing complete both bachelor of business ad- ings Corp., has acquired Michelin Hile Design L.L.C., Ann Arbor, has Adayana Inc., Indianapolis, and Grade- communication efforts to target and ministration and the master of busi- North America Inc.’s stake in the En- been selected to redesign the Web site point, Detroit, have finalized an agree- convert prospects into buyers. ness administration degrees in five Tire Solutions L.L.C. joint venture. of Surgitel, Ann Arbor. ment to merge. Gradepoint operations years of full-time study. This program Bluerock Real Estate, Southfield, se- will form the basis of the new Adayana Medical Network One, Rochester, a is available to undergraduate stu- lected Qualitech, Bingham Farms, to Healthcare Group. physician services organization and CALL FOR NOMINATIONS dents in several different majors. Con- upgrade its computer network. interactive health management ser- The Michigan Council of Women in vice provider, announces the forma- tact: Jill Langen, jill.langen Technology Foundation, Detroit, an- NEW PRODUCTS EXPANSIONS tion of the Mackinac Learning Collab- @baker.edu. Telephone: (888) 211-8915. nounces its annual university schol- Ideal Shield, Detroit, offers pyramid orative. Contact: Ewa Matuszewski at Henry Business Solutions, Birming- arship, research grant and laptop Biggby Coffee, Lansing, opened a 24- and octagon sign bases that provide (248) 475-4702 or ematuszewski@ ham, is the exclusive provider of the stipend program, aimed at encourag- hour café inside Children’s Hospital of convenient, portable or permanent op- mednetone.net. One Page Planning and Performance ing deserving female students to pur- Michigan, Detroit. tions for signage needs. Web site: System, an Internet-based business sue information-technology and tech- Qualitech, Bingham Farms, a technol- American Community Mutual Insur- www.idealshield.com. Telephone: planning process. nical careers. The competition is open ogy integrator and software reseller ance Co., Livonia, announced that (888) 769-8887. to women pursuing technology de- announces formation of its newest di- The Michigan Association of Certified Community Flex is now available for vision, Qualitech Managed Services. Public Accountants, Troy, is one of grees and certifications at the college NEW SERVICES level. Deadline for submission is Feb. quoting in Arizona and Indiana. This division will be responsible for nine early adopters of the American 27. More information and applica- Chase, Detroit, has opened a branch at Creative Solutions Group, Clawson, full-time monitoring of client network Institute of Certified Public Accoun- tions are available at www.mcwtf.org. 3989 Crooks Road, Rochester Hills. has launched a new Web site, www. infrastructure. Telephone: (248) 646- tants Peer Review Facilitated State The Michigan Women’s Historical Telephone: (248) 844-4810. Web site: csgnow.com. 0093, ext. 475. Board Access. Center and Hall of Fame, Lansing, is accepting nominations for the 2009 class of the Michigan Women’s Hall of Fame, which commemorates women who have distinguished themselves in one or more fields. A nominated woman may be living or deceased. Women’s organizations may also be nominated. All nominations must be submitted by mail on approved nomi- nation forms, found online at www.michiganwomenshalloffame.org /pages/nomination.htm. Printed ver- sions may be obtained by calling the Michigan Women’s Historical Center and Hall of Fame at (517) 484-1880 or at [email protected]. Dead- line is March 21. CONTRACTS Helm Inc., Highland Park, was select- ed by Toyota Motor Sales U.S.A., Tor- rance, Calif., to provide a marketing channel for selected vehicle owner and service publications on www.helminc.com. Rubicon Genomics, Ann Arbor, has announced a licensing agreement with Abbott Laboratories, Abbott Park, Ill. Abbott receives a nonexclu- sive license to MethylPlex for in vitro molecular diagnostics to detect the presence or risk of prostate, bladder and colon cancer for screening and nonscreening indications. Abbott also has obtained a nonexclusive license for nonscreening applications with other diseases and options to colon cancer biomarkers developed in col- laboration with Rubicon. Servant Systems Inc., Ann Arbor, an- nounced a contract for development work for The Dwyer Group, Waco, Texas, a holding company of six fran- chise businesses. DesignHub Inc., a Saline-based cre- ative services and marketing firm, has designed and developed the new Web site for the Multi-institutional Study of Leadership (www.leadership study.net), a project of the National Clearinghouse for Leadership Pro- grams and Center for Student Studies. Tomball Regional Medical Center, Ann Arbor, has selected the Clinical Xpert suite of products from the health care business of Thomson Reuters, New York. Altair Engineering Inc., Troy, a global provider of technology and services, announced that the UK gas turbine di- vision of Assystem, Paris, an engi- neering services and consultancy provider, has selected Altair Hyper- Works to be included in future engi- neering service projects. Portfolio Solutions L.L.C., Troy, has

DIARY GUIDELINES Send news releases for Business Diary to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or send e-mail to cdbdepartments@ crain.com. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20090126-NEWS--0022-NAT-CCI-CD_-- 1/22/2009 3:05 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 26, 2009

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

EMPLOYMENT NEWS Help for Health care expands workforce jobs vanished, a loss of 0.2 percent applicant tracking system or tal- for the month. But outpatient cen- ent management suite, according While the rest of the economy ters ended 2008 with a workforce of to HR executives, vendor represen- posted rates of joblessness not seen 521,700 — 1.7 percent more than tatives and industry analysts. since 1993, health care continued the year before. Insiders also predict that in job-seekers to expand its workforce in Decem- — Modern Healthcare 2009 interest will pick up in simu- ber, adding 31,600 positions in a lation-type assessments that use month in which the overall Ameri- his issue marks the introduction of Ca- Web-based interactive media, can workforce shrunk by 524,000 Web helps sort applications role-playing and even video reerWorks, a weekly collection of advertis- jobs. The tough economy is driving games to make tests more fun and “The only major private indus- an increase in job applications interesting for job applicants. ing, news and information geared toward try sector that continued to add a and, in turn, demand for evalua- They also predict that, as with T readers in career transition or looking for significant number of jobs was tions to help employers select the other aspects of their recruiting, health care,” Keith Hall, commis- cream of the crop. companies will look to make as- new jobs. sioner of the Bureau of Labor Statis- As layoffs increase, companies sessments an extension of their tics, said in a written statement ac- Included in our coverage: “CareerTransi- that still have openings are being corporate culture, so job appli- companying the latest preliminary inundated with résumés from out- cants get a glimpse of what it’s tion,” highlighting a person who has made a statistics. In the last four months of-work job-seekers. like to work there from the get-go. of 2008, the national nonfarm econ- “One client opened a sales posi- Certain types of assessments are successful leap from one profession to another; omy lost 1.9 million jobs, while tion, and three hours later had 250 more popular because of the down- a calendar of job- and training-related events; health care added 93,200 jobs in applications,” says Russ Becker, a turn, HR sources say. Companies that time, according to the season- managing partner at Kenexa, an are looking for top-tier sales repre- and news stories affecting the job market. ally adjusted statistics. applicant tracking and assess- sentatives to help bump up rev- Overall in 2008, the health care CareerWorks is also online. ments provider. enue, and they’re buying behav- workforce grew by 2.8 percent, Companies like Becker’s client ioral assessments to do a better job On our Web site, at www.crainsdetroit.com/ ending the year with 371,600 more are using assessments to make of identifying those individuals, jobs than the year before. Hospi- shorter work of processing all according to test vendors. careerworks, you can post an anonymous tals added 11,900 workers in De- those applications. And in recent This year, look for more simula- résumé and attract employers. You can scan cember to bring the total hospital times, more are opting for assess- tion-based assessments as well as workforce to about 4.71 million, ments that can be given directly on tests that use Flash and other in- the newest jobs from our area or all of Michi- while physician offices added 5,600 their Web-based career centers teractive media. workers to bring the workforce to and with the results funneled to an — Workforce gan. You can set up e-mail alerts so whenever a about 2.3 million. Both sectors job that interests you is posted, you’ll know posted monthly job growth of 0.2 percent, a rate that has held steady about it. since at least September. Employers can post jobs or search résumés The one area in health care that CareerTransition lost jobs in December was in out- Name: Melissa Belanger Langnes, 33 for talent they seek. patient-care centers, where 1,100 Education: Bachelor’s degrees in business ad- ministration and Spanish from Western Michi- gan University, master’s degree in organization- al management from the University of Phoenix, CAREER MOVES associate’s degree in nursing from Oakland Community College. Last career: Training and development coor- GENERAL GENERAL dinator (a technical writing position) at the former DCT Inc. for two-and-a-half years. She Lottery Marketing Specialist Located in Ingham Co./Lansing, Mon.-Fri., was laid off when the company declared bank- 7:45 a.m. - 4:45 p.m. This position serves ruptcy. as a program specialist managing Club Game activities for the Marketing Division New career: Registered nurse and clinical co- of the Michigan Lottery. ordinator for the critical care unit at POH Re- To apply see civil Service web site for de- Melissa Belanger tails at http://www.state.mi.us/mdcs, select Langnes gional Medical Center. Employment Information, and then select Why she decided to make the switch: “I have al- Former career: View all Vacancies. Resumes must be re- ways felt a calling toward a nursing career, ceived in the Human Resources Office no Training and later than 4:45 p.m. Friday, January 30, development but I did not have the courage and self-confi- 2009. Application materials received after dence to pursue a nursing degree when I gradu- the closing date will not be considered. coordinator New career: ated from high school. I went into human re- Registered nurse sources originally, thinking I would be helping LEARN WHY OWNING A RECESSION and CCU clinical people. Unfortunately, HR was not what I had RESISTANT SPEED QUEEN COIN LAUNDRY IS SO PROFITABLE coordinator expected, and the career outlook was poor.” Financing & Locations How she made the transition: Obtained associ- Free Informational profit seminar held Saturdays ate’s degree in nursing from Oakland Community 10 am -12 noon. Call for details & reservations. UNIVERSAL COIN LAUNDRY MACHINERY College. www.universal-laundry.com Obstacles overcome: Langnes was six weeks 248-435-6200 before the due date for the first of her two chil- dren in early 2002 when she was laid off. She MANAGEMENT had to balance work and family life and contin- Mercy High School, a Catholic college preparatory ue to work a part-time job while she went back school for young women in Farmington Hills, is to school and completed a year of prerequisites seeking a Director of Institutional Advancement. Visit TELECOMMUNICATIONS Call Us For Personalized mhsmi.org for job description. Service: (313) 446-6068 and the two-year nursing program at OCC. Want to live and work where you play? Advice for others: Get a network of supportive CLOSING TIMES: Monday 3 p.m., friends and family you’ll be able to call on if Petoskey is a pristine resort area of one week prior to publication date. northern Michigan where skiing, Please call us for holiday closing times. you do have other responsibilities like a job snowmobiling, golfing, boating and you’re trying to hold down and a family. Sur- fishing are Optimum. Petoskey is also FAX: (313) 446-1757 home to Odawa Casino Resort which is E-MAIL: [email protected] round yourself with helpful, goal-oriented peo- currently searching for superior talent INTERNET: ple, such as those in a study group, and pick a www.crainsdetroit.com/section/classifieds to compliment our leadership team for career you will not only enjoy but one that will our spectacular property. Confidential Reply Boxes Available also pay the bills. Visit: PAYMENT: All classified ads must be odawacasino.com/ prepaid. Checks, money order or If you have made a similar change in your ca- directorplayerdevelopment.html Crain’s credit approval accepted. reer, or know someone who has made an inter- as well as Credit cards accepted. esting career transition, contact Andy Chapelle, odawacasino.com/financedirector.html See managing editor at Crain’s Detroit Business, at for all the details on your best Crainsdetroit.com/Section/Classifieds [email protected] opportunity for 2009. for more classified advertisements 20090126-NEWS--0023-NAT-CCI-CD_-- 1/22/2009 3:04 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 23

EMPLOYMENT PEOPLE CONSULTING oversight of Consumer Village, Gon- SERVICES CALENDAR IN THE SPOTLIGHT gos Research’s online research com- Larry Zagata to John Schneider to vice president, GZA Tim Leuliette munity, remaining research director director of busi- GeoEnvironmental Inc., Walled Lake, Tech entrepreneur seminar at LTU has accepted of analytics. ness intelligence from principal, Vision Environmental Lawrence Technological University practice, MiPro, the role of chairman of PUBLIC RELATIONS Inc. subsidiary. will host a workshop Feb. 27 on Milford, from practice director, Rochester Michelle Culver and Emily Palsrok to Daniel Hamburg to design director, technology entrepreneurship. Business Objects, Hills-based senior vice president, John Bailey & Scarcello Associates Inc., Bingham The workshop will also cover Saginaw. auto supplier Associates, Inc., Troy and Lansing, Farms, from senior designer, Redico, how to turn an innovative product Sarab Atal, Tom Dura from senior counsel. Southfield. idea into a new technology venture Clarke, Randy Automotive as well as a networking opportuni- Fike, Dan Frich, Systems Inc., ty. There also will be an “elevator Suraj Krishnan, retaining his Zagata Jason Marx, pitch” contest with cash prizes. position as GEOTECHNICAL Michael Osment and Colin Smith to di- Leuliette president and The workshop runs 8 a.m.-5:30 rector, Alix Partners, Southfield, from CEO. p.m. at the university’s UTLC vice president. ENVIRONMENTAL Leuliette, 59, succeeds Steven YOUR DIRT Gallery. Free to all students (regis- FINANCE Gilbert, senior managing director CONSTRUCTION tration required), $25 for faculty and chairman of Sun Group and and staff at institutions of higher Cori Crane to vice president of nation- chairman of Gilbert Global Equity ENGINEERING learning and LTU alumni, $50 gen- al payroll operations, Work Life Fi- Partners L.P. nancial, Troy, from director of opera- IS OUR eral admission. tions for the southeast region; also, Leuliette had been chair of Dura For more information and to reg- Robin Carp to national director of when it emerged from bankruptcy ister, visit www.invention2 client human sources, from human in June, but he relinquished the venture.org/ltu2009/. resources manager. role when he became president and CEO. OBSESSION LAW Also, Tom Educational workshops at Walsh Jackie Romagnoli Chambers, 64, All of us at G2 share a single-minded obsession with unearthing to human re- has joined Workers in transition can attend Dura as every obstacle and opportunity on your site – from topsoil to bedrock. free educational workshops offered sources manager, Rader, Fishman & executive vice So leave the dirty work to us. It’s what we live for. by Walsh College in January, Febru- Grauer PLLC, president and ary, and March. The workshops, Bloomfield Hills, COO. He was some not listed here, range from from vice presi- most recently Troy, MI: 248.680.0400 one day to six-week sessions. Each dent of human re- president and Brighton, MI: 810.224.4330 attendee receives a certificate of at- sources, Michi- COO of gan First Credit Chicago, IL: 847.353.8740 tendance. Space is limited and reg- Plymouth- Union, Lathrup based www.g2consultinggroup.com istration is required. Village. Chambers Metaldyne The workshops include: Romagnoli Corp., where Leuliette had been Job search strategies. 1:30-4:30 MANUFACTURING president and CEO before leaving p.m., Wednesday, Jeffery W. Barry in January 2008. Ted Amyuni to president of Europe, UNEARTHING POSSIBILITIES Center, Troy. Middle East and African operations, Leadership assessment. 9 a.m.- Energy Conversion Devices Inc., noon, Feb. 5. Troy. Rochester Hills, from president, Carri- Starting a consulting business. 9 er Transicold, Carrier Corp., Lincoln Park. a.m.-noon, March 5, 12, 19. Novi. How to start your own business. 9 MARKETING a.m.-noon, March 13, 20, 27. Novi. Space is limited, and registration is required. Visit www. walshcollege.edu/takecharge to register and for details on all the workshops. For information, e-mail [email protected]. Other events Alternative Careers for Engineers and Technical Professionals. Wednes- Alioto Sanders Michael Alioto to vice president of day. More than 20 presenters from analytics, Gongos Research, Auburn various industries and careers will Hills, from senior vice president and inform attendees what it takes to head of the automotive, manufactur- make a transition; the skills and ing and telecommunications prac- training required; job titles to look tice division, Market Probe, Inc., Troy; and Mitch Sanders to supervi- for; typical salary ranges; and sor of the management and strategic where to find important resources. Schools and training institutes will be present to provide program infor- PEOPLE GUIDELINES mation. Cost is $30 for Engineering So- Announcements are limited to ciety of Detroit members, $35 for oth- management positions. Nonprofit ers. 8-11 a.m., Rock Financial and industry group board Showplace, Novi. For information appointments can be found at or to register, visit www.esd.org or www.crainsdetroit.com. Send call (248) 353-0735, ext. 112. submissions to Departments, Gray Hair Management Network- Crain’s Detroit Business, 1155 ing Breakfast. Wednesday. Network- Gratiot Ave., Detroit, MI 48207- ing group for professionals seeking 2997, or send e-mail to their next job opportunity. [email protected]. Meets the fourth Wednesday of Releases must contain the person’s every month. $25 for preregistra- name, new title, company, city in which the person will work, former tion; $30 at the door. 7:30-9:30 a.m., title, former company (if not Four Points Sheraton, 3200 Board- promoted from within) and former walk, Ann Arbor. To register, visit city in which the person worked. www.grayhairmanagement.com; Photos are welcome, but we cannot for information, call Kendra Kerr, guarantee they will be used. (734) 369-6145. 20090126-NEWS--0024-NAT-CCI-CD_-- 1/22/2009 3:03 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS January 26, 2009 Credit crunch stalls expansion of CALENDAR TUESDAY JAN. 27 ENTREPRENEURSHIP IS ON THE credit counseling agency Greenpath Employer Forum on Internships. 8- MENU FOR BUSINESS OVER 11:30 a.m. Detroit Regional Chamber. Learn how internships can be a suc- BREAKFAST FEB. 10 IN DETROIT BY SHERRI BEGIN WELCH number in the same area, said vehicles of up to 600 employees cessful talent-management strategy Join Crain’s Detroit Business for for your company. Engineering Soci- CRAIN’S DETROIT BUSINESS CEO Jane McNamara. and the fiber optics needed to our next Business Over Breakfast, ety of Detroit, Southfield. Free. Con- as we discuss how entrepreneur- That likely will mean adding a allow them to help people In six months’ time, nonprofit tact: (313) 596-0432 or www. ship can be second shift of degreed employees detroitchamber.com. credit counseling agency Green- around the country, she said. increased in to field the rising number of in- path Inc., which is adding new em- Greenpath expects to add 110 Michigan. Transportation Riders United Annual coming telephone calls from employees this year — most of The event ployees month- Meeting. 6:30-8:30 around the country for bankrupt- them locally — after adding 100 ly, will have p.m. Guest speak- takes place cy and foreclosure-prevention outgrown office new employees here last year to er: Regional 7:30-9:30 a.m. space at its counseling. meet rising demand for coun- Transportation Feb. 10, and is to feature Farmington “There’s a perception there’s seling. Coordinating Robert Fowler, Hills headquar- lots of space to lease in Farming- Nationally, its employee Council Director John Hertel. Ecu- president and ters and leased ton Hills and this general area … ranks have risen from 180 in menical Theologi- CEO, Small space nearby. that space is cheap to lease and Michigan, Indiana, Wisconsin, cal Seminary, De- Fowler Business But it plans to there’s all kinds of available real Illinois, New York and Arizona troit. Light Association of Michigan; and Mark sit tight — at estate” for purchase, McNamara at the end of 2005 to 485 total at refreshments. Clevey, vice president for Free. Contact: entrepreneur- McNamara least until 2010 said. the end of last year. Hertel — hoping credit markets im- “But … we’ve not been able to (313) 963-8872 or ship, Small Before financial markets www.detroittransit.org. Business prove, enabling it to build a space find a location that meets our re- crashed last fall, Greenpath had Association of large enough to accommodate 600 quirements” for parking spaces been looking at available prop- Michigan and large enough to accommodate the employees or double its current erties for purchase and consid- WEDNESDAY executive ering an expansion of its corpo- JAN. 28 director, Small Business rate headquarters. Do It Yourself Marketing for Small Foundation of It became obvious there was Businesses, 11:30 a.m.-1:30 p.m. This Michigan. workshop will provide you with ideas no available land around its It all happens and techniques on how your market- MARKET PLACE headquarters to expand park- Clevey at the ing dollars can work twice as hard for ing because it had been ac- DoubleTree Guest Suites Fort you. You will leave with a toolbox Shelby in Detroit. Admission is ANNOUNCEMENTS & FOOD SERVICE quired by Nissan Technology Cen- that equips entrepreneurs with the ter North America, she said. ability to do their own public rela- $35, and the registration deadline SERVICES is . For more information, LOSE WEIGHT Greenpath began looking at tions and marketing. Detroit Entre- Feb. 6 contact: (313) 446-0300 or BUSINESS SERVICES With Our 100% Fresh Gourmet Meals available properties in the area, preneurship Institute Inc., Detroit. $15, includes lunch and training ma- www.crainsdetroit.com/events. • Prepared Locally By Top Chefs near the homes of two-thirds of terials. Contact: (313) 877-9060 or WE SELL BUSINESSES • Delivered To Your Door! its local workforce and central www.deibus.org. Confidential & Professional Service. • Guaranteed Fresh Taste! to expressways to give easy ac- dress the urgency to understand, ef- fectively interact and communicate Specialize in Manufacturing, Distribution & www.GourmetEverydayDelivery.com cess to visiting employees from Business -To-Business Service Industries. Fiscal Management Tools for the Non- with people in an evolving Asian busi- Confidential Business Sale, Inc. BUSINESS & other parts of the country. Financial Manager, 1 p.m. Fifth Third ness environment. Embassy Suites www.ConfidentialBusinessSale.com When the financial markets Bank, Michigan Small Business & Hotel, Southfield. $50 members, $60 Detroit Metro Office 313-221-9378 INVESTMENTS fell apart, “We pulled back to re- Technology Development Center. For others. Contact: (248) 844-4100 or CEOs of businesses with at least three www.apacc.net. BUSINESSES FOR SALE evaluate,” McNamara said. years of financial history who want to Greenpath is projecting rev- have a better understanding of how fi- Established Oakland County Children’s Boutique *ÀœwÌà ˆ˜ÊÌ iÊÌ>˜Ž¶ enue of close to $42.5 million nancial statements can inform their Fundamentals of Writing a Business in upscale downtown community. Owner willing to -̜«ÊÌ iÊi>Žˆ˜}Ê>˜`Ê*Փ«Ê*ÀœwÌÃÊ>ÃÌ° Plan. 6-9 p.m. Feb. 25. Eastern Michi- assist buyer. Email for Confidentiality Agreement to: this year, up from $34 million business decisions. Oakland County [email protected] Business Center, Waterford Town- gan University College of Business; -«iVˆ>Ê*Àœ}À>“ÊvœÀ\ SUBURBAN DETROIT MOBILE FLEET SERVICE BUSINESS. last year, she said. ship. $25. Contact: www.misbtdc.org/ U.S. Small Business Administration. „ xʵÕ>ˆvވ˜}ÊVœ“«>˜ˆià Sales of 700K + net 30% all accounts, equipment, While it owns its headquar- Designed for individuals who want to service vehicles. Turn key 650K. Reply to: region9. „ £ä¯Ê«ÀœwÌ>LˆˆÌÞʈ“«ÀœÛi“i˜Ì [email protected] ters on Country Club in Farm- increase their chances for successful ˆ˜ÊÎäÊ`>Þà JET’S PIZZA FRANCHISES IN NORTHERN OHIO ington Hills, its lease for space self-employment, the course covers „ Õ>À>˜ÌiiÊ£äää¯Ê£ÃÌÊ9i>ÀÊ," Three operating stores with future territorial THURSDAY business planning in detail, including agreement. Call 586-412-0010 at 12 Mile and Farmington „ œÊÕ«vÀœ˜ÌÊVœÃÌʈvÊޜÕʵÕ>ˆvÞ a list of resources available to help roads ends in March 2011, Mc- JAN. 29 „ œÊ̜ÊÜÜÜ° ˆV ˆ}>˜x°Vœ“ EQUIPMENT & launch new business ventures in MERCHANDISE Namara said. It hopes to sell its Inforum Networking & New Member Michigan. One Stop Business Re- i>`ˆ˜i\Ê headquarters and be in a new Welcome. 7:30 a.m. A networking and source Center, Detroit. $40. Contact: iLÀÕ>ÀÞʙ]ÊÓää™Ê 4- welcome breakfast with Inforum (313) 967-9295 or www.waynecounty. x\ääÊ«“ OFFICE FURNITURE location by then. 3MART#HANGE2EAL2ESULTS board and staff members. Come com/onestop. Greenpath’s call center oper- MUST SELL, OFFICE CLOSED ready with a 30-second “elevator” Desks $99, Chairs $39, Files $49, Partitions $50, ation is very dense with em- speech to introduce yourself. Westin FINANCIAL SERVICES Lateral Files $99, Cubicles, Office Phone Systems ployees and atypical when com- Book Cadillac Hotel, Detroit. Mem- Call (248) 548-6404 or (248) 474-3375. bers $30, nonmembers $35. Those who CHANGES TO CDB CALENDAR Need Money Fast? Call Us For Personalized pared with other local join Inforum at this event or who be- Pay off Bills, Improve your Home, Service: (313) 446-6068 employers, said Steve Morris, came members in the last six months Crain’s Detroit Business can no Buy a car, Take a Trip. Apply now! can contact Inforum to attend this Call us: 1-888-936-2221 FAX: (313) 446-1757 executive managing director longer guarantee that we will use event for free. Contact: (877) 633-3500 E-MAIL: [email protected] telephone, mail or e-mail and principal of Newmark Knight or www.inforummichigan.org. TELECOMMUNICATIONS INTERNET: contributions for our weekly www.crainsdetroit.com/section/classifieds Frank in Farmington Hills, a calendar print and online calendar WILL BUY See commercial real estate adviso- listings. ALL OFFICE TELEPHONE EQUIPMENT Crainsdetroit.com/Section/Classifieds ry and brokerage firm. If you want to ensure listing online Please Call: 877-RICHARD for more classified advertisements COMING EVENTS Please Call: 877-742-4273 That makes its needs for very and be considered for print Maverick Marketing Mondays. Noon- large parking areas unique, he publication, please use the online LEGAL SERVICES 1:30 p.m. Feb. 2. Detroit Regional said. Chamber. With: Robert Wolfe, presi- calendar listings section of Most of the existing buildings dent, Moosejaw Mountaineering and www.crainsdetroit.com. Here’s EXECUTIVE SEPARATION PACKAGE REVIEW how to submit your events: in that area “are not designed Backcountry Travel Inc. A discussion on how the From the Crain’s home page, click Separation package review by expert employment law specialist including potential for that kind of density,” Morris company became successful at build- benefit enhancement or wrongful termination case evaluation “Detroit Events” in the red bar said. ing an online community that fosters near the top of the page. Then, Office or telephone/internet appointments within 48 hours of call or email He estimates Greenpath sales. Detroit Zoo, Royal Oak. $20 De- click “Submit Your Events” from troit Regional Chamber members, $40 Flexible fee arrangements would need at least 100,000 nonmembers, $65 for a Maverick Mar- the drop-down menu that will Reviews conducted or supervised by 4 Senior Counsel listed in Best Employment square feet, and there aren’t keting season one pass (available to appear and you’ll be taken to our Lawyers of America and Super Lawyers with more than 100 years of combined em- many available buildings that chamber members only). Contact: online submission form. Fill out ployment law experience handling employee issues involving every major employer the form as instructed, and then size in the northwest corridor (313) 596-0392 or www. in Southeast Michigan. detroitchamber.com. click the “Submit event” button at of metro Detroit, he said. Pitt McGehee Palmer Rivers & Golden-117 W. Fourth St., Suite 200, the bottom of the page. That’s all “Yes it’s a slow economy and Royal Oak Mi, 48067. Thriving in Uncertain Times with Cul- there is to it. there are some foreclosures, but Call, email or fax Elaine Hesano for an appointment or more information at tural Competence. 5:30-8:30 p.m. Feb. More Calendar items can be found 248.398.9800, fax 248.398.9804, [email protected]. Please visit our website not many as you would think.” 18. Asian Pacific American Chamber on the Web at www.crainsdetroit. at www.pittlawpc.com Sherri Begin Welch: (313) 446- of Commerce Entrepreneurship Edu- com. 1694, [email protected] cational Series. This seminar will ad- 20090126-NEWS--0025-NAT-CCI-CD_-- 1/23/2009 5:45 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 25 Slow economy stalls naming deal for new Metro terminal

BY BILL SHEA Those involved in selling the deal unattractive to companies. CRAIN’S DETROIT BUSINESS name have backed off previous The Ilitches continue to consid- statements that a deal could be er renovating Joe Louis or build- Any corporate naming-rights done by the end of last year. ing a new stadium, and any new deal for the new terminal at Detroit “Even in a good economy, it venue would likely include a name Metropolitan Airport is at least six takes 12 to 18 months to put togeth- deal — just as with the Ilitch- months to a year away, those in- er a naming-rights deal,” Michael owned Detroit Tigers and Comerica volved in the effort say. Conway, the airport’s director of Park. The company must tell the That’s a departure from a Sep- public affairs, said in an e-mail to city by June 30 if it plans to renew tember prediction that a deal Crain’s. “(General Sports) has the Joe Louis lease, but may be would be done by the end of 2008, been working on this for less than seeking an extension. and can be viewed as another a year. Something to keep in mind Pistons owner William David- symptom of the economic crisis is that (the airport authority) is son, on the other hand, has refused that has affected the naming-rights breaking new ground here. It’s to sell the name of the Palace of market. never been done for an airport ter- Auburn Hills, which he privately The Wayne County Airport Authori- minal before.” financed in 1988. ty in March awarded a 10-year con- General Sports owner Andy Ap- Earlier predictions were that a naming-rights deal for the north terminal would “He feels a great deal of affinity tract to Rochester-based General pleby said in August that five local happen by 2009. Now, insiders think one might be inked by midyear. for the name,” said Jeff Corey, di- Sports and Entertainment L.L.C. to corporations were interested, and “We have no shortage of proper- cent major deal was a 15-year, $60 rector of public relations for Palace sell the name, sponsorships and re- in September he said he expected ties and sponsorships to sell, but million transaction in 2006 that Sports & Entertainment Inc. “Back lated marketing for the new $431 to have an agreement within 45 finding buyers has been very chal- put Honda’s name on the Anaheim 20-some years ago, when the plans million north terminal, which days. He now believes a deal could lenging,” Appleby said. Ducks’ hockey venue. for the arena were announced, he opened in September. be done by midyear. Chris Foy, president of General Local marketing insiders expect took a great deal of criticism on it The contract calls for General None of the companies interest- Sports Alliances, said talks contin- the airport naming-rights deal to from people who felt there was no Sports to get a 12 percent to 15 per- ed in buying the terminal name ue on the terminal naming rights, rival that of sports stadiums, such way it could succeed way out in cent commission and up to $75,000 were at the point that they could and interested companies are in as the $40 million Ford Motor Co. Oakland County when there are for asset valuation. The authority, be considered as having dropped the financial and consumer prod- paid in 2002 for a 40-year deal for other arenas in the area. Obvious- which oversees airport opera- out, Conway said. ucts sectors and are headquar- the Detroit Lions’ home venue. ly, he proved them wrong.” tions, would have to approve any General Sports has a three-year- tered here or have a significant lo- The Detroit Red Wings and Detroit name deal for the 26-gate, 824,000- old Denver-based subsidiary, Gen- Nationally, fewer and fewer cor- cal presence. He declined to be Pistons, don’t have corporate porations are in a position to shell square-foot concourse that re- eral Sports Alliances, L.L.C., which more specific. names on their venues. placed the aging Smith and Berry handles naming rights deals, out millions to put their names on While Foy is bullish on the nam- The Ilitch Holdings Inc.-owned terminals. mainly in sports. stadiums or buildings — especial- ing-rights industry, saying the Red Wings play at city-owned Joe ly the financially battered banks limited numbers of venue opportu- Louis Arena and have the right to and airlines. nities somewhat shields the busi- sell the venue name but won’t, said Dallas Cowboys owner Jerry ness, the economic crisis earlier Karen Cullen, Ilitch’s vice presi- REAL ESTATE this month forced another Denver- dent of corporate communica- Jones has expressed concern based naming-rights company, tions. about any deal for the name on his Bonham Group, to close its doors af- That’s because the team’s lease new $1.3 billion stadium opening COMMERCIAL PROPERTIES OFFICE BUILDING ter 20 years. predates the trend of naming- this fall, telling the Dallas Morn- Commercial Office Building For Sale-City of Bonham was widely considered rights deals, which began in ing News recently, “It would be Marlette, MI. Approximately 17,240 square feet among the major naming-rights earnest in the 1990s, and the real- naive to think that our economy two story building with current lessees occupying FOR SALE close to 75% of available square footage. Con- dealmakers, and the company ization fans are very unlikely to isn’t impacting commitments.” tact 989-635.4237 or [email protected] Value Add Apartment Portfolio blamed a credit squeeze by Merrill call the facility anything but the Bill Shea: (313) 446-1626, for details and showing appointment. Lynch for its closing. Its most re- Joe Louis Arena, making a name [email protected] INDUSTRIAL PROPERTY AVAILABLE NOW 4,000 to 100,000 sq. ft. Also 10,000 & 25,000 sq. ft. 3 Properties Totaling 520 Units Free Standing Bldgs w/truckwells. 1 Mile from Metro Airport • $7,280,000 or $14,000 Per Unit REA CONSTRUCTION • Purchase 1 Property or Entire Portfolio • Opportunity to Enhance Value start (734) 946-8730 • All Property Level Due Diligence Provided Also Heavy Industrial Before Bid Deadline Land Available For More Info Please Contact: www.reaconstruction.net Barry Swatsenbarg 34975 W Twelve Mile Rd [email protected] Farmington Hills Michigan 48331 248.848.4178 www.friedmanrealestate.com law school

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Page 26 CRAIN’S DETROIT BUSINESS January 26, 2009 Hat: Orders hot at Song’s ■ From Page 3 leaders the growing business. And that shipping out of the storefront, in- was before the Franklin stepped creasing retail space without aban- up to the inaugural mike, wearing doning a longstanding location. decisions the instantly iconic chapeau. Mr. Song’s founders Hahn and “With this kind of fame and this Jin Song emigrated from South kind of attention, the potential is Korea in 1982. results really big, but we’re not the ones to At first, the shop carried design- explode so big we can’t account for er labels, Lillian Song said. But Jin it later,” he said. Song, with an artistic eye and a It’s time to make better plans. Mr. Song’s immediate needs are knack for handwork, rarely saw a more workers, an additional pro- hat she couldn’t improve. duction facility and a larger retail “She started tweaking the hats, space, Luke Song said. and soon customers realized she Mr. Song produces more than a had a talent,” Lillian Song said. hundred hats a day, all in-house And the Mr. Song label was designs, at a 5,000-square-foot born. Ferndale manufacturing facility Ask Lillian Song when she that Lillian Song says the business joined the family business and the has outgrown. answer is “always” — both sib- About 10 percent of the label’s lings grew up in and around the hats are sold at the Mr. Song show- shop. Luke Song joined the busi- room in Detroit’s New Center ness full time about eight years area, with the bulk of the business ago, after a stint at Parsons The New in wholesale. Roughly 500 retail- School of Design in New York City. ers nationwide carry Mr. Song About 90 percent of the store’s hats that retail from $79 to $899. customers are church-going black But the Songs say they’re not or Jewish women, Luke Song said. rushing into irresponsible growth. They comprise an informed clien- Mr. Song employs 11 workers, tele, avidly following hat and fash- Luke Song said, a number that ion trends. Orders are coming in for As a CEO, you can’t always turn to colleagues and friends for opinions and advice. could grow to 19 or 20. hats in pink and pistachio, spring’s When you become a TEC member, you tap into unbiased insight from someone “We read that Detroit’s unem- hot colors; and a “mad hatter” style, who shares your experience, or who has been there before. It’s like having a team ployment rate is up to 10 percent,” in which the top of the hat is larger of your own professional advisors to help guide the way. You don’t have to go it Lillian Song said. “We’d like to de- than the base, is popular. alone. Start the right conversation today, call us at 586.443.5880 x201. crease that number by eight.” Classic hat styles are steady sell- Luke Song said he expects to add ers, but the label must offer a new employees slowly, a plan that slate of hats every six months for www.tecdetroit.com ;/,>693+»:3,(+05.*,64,4),9:/0769.(50A(;065 aligns with the difficulty of finding the Women’s Wear trade show. (U(MÄSPH[LVM=PZ[HNL0U[LYUH[PVUHS^^^]PZ[HNLJVT skilled hat-makers. This February, Mr. Song’s de- The Mr. Song showroom occu- signs will be displayed at a better pies about 1,500 square feet of a booth, and Luke Song already has Woodward Avenue storefront, but appointments with two depart- the space encompasses an addi- ment store chains interested in tional 2,500 square feet currently carrying Mr. Song hats. used for shipping and some design “The future is very bright for and construction work. us,” he said. Adding a new production site Nancy Kaffer: (313) 446-0412, would allow the Songs to transfer [email protected].

Suppliers: Fed aid urgent ■ From Page 3

nalizing what they will seek in fed- tomakers could borrow more eral assistance. His association Troubled Asset Relief Program planned to convene more than a money to pay suppliers for parts in dozen CEOs and CFOs today. 10 days instead of the typical 45 Suppliers may have to wait, days, De Koker said. though, until President Obama ap- TARP funds also might be points a so-called car czar to over- tapped to guarantee supplier re- see federal assistance to the indus- ceivables so suppliers can contin- try, De Koker said. A number of ue to borrow working capital from representatives from parts organi- private banks. zations met this month with offi- Suppliers are taking extreme cials from the U.S. Treasury Depart- steps to conserve cash. “Every- ment and the Obama transition one’s scrambling,” Leuliette said. team to discuss the situation, he “At Dura, I laid everybody off the said. first week of January, including They are exploring a “quick myself.” pay” option, by which the au- From Automotive News

CRAIN’S SEEKS NOMINATIONS FOR TOP CFOS Crain’s Detroit Business is seeking nominations for its third annual CFO awards to recognize financial leaders. To nominate someone, visit www.crainsdetroit.com/nominate. Nominations must be received by Jan. 30. Nominees must be CFOs or hold an equivalent job. Judges will select winners based on excellence in financial or other operational management. Nominees will be considered for public and private companies, and nonprofits. Questions? Contact Jennette Smith, assistant managing editor, at [email protected]. 20090126-NEWS--0027-NAT-CCI-CD_-- 1/23/2009 5:58 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 27 Macomb: Job losses spread; officials devise a counterattack ■ From Page 3 lenges in several ways during 2009. to continue shrinking through at First on the calendar is a Feb. 3 least the first half of the year, with economic outlook forecast by Ma- a “moderate recovery” in 2010. comb Community College President “Most of what we hear is that Turnaround plans: Funding help, green expo Jim Jacobs, to brief the local busi- 2009 will be another tough year. ness community on what lies There’s a chance we’ll see things Several turnaround plans are Macomb hosts U.S. operations tatives volunteered for the orga- ahead. start to pick up in the fourth quar- already in motion for 2009 to for 75 companies based outside nizational committee and dozens “For years, the primary mover in ter, but it will remain challenging help Macomb County bounce the country, compared with of companies likely will partici- state and local unemployment fig- until then,” she said. “Still, despite back from the fallout of the re- about 200 such companies for pate. ures was industrial, manufactur- the overall trend, we’ve managed cession. Wayne County and 500 for Oak- Ⅲ The Macomb-Oakland Univer- ing, construction and warehousing to do fairly well.” Paul Gieleghem, newly ap- land County, he said. sity Incubator at the former Ven- job losses that just hit particularly For 2008, the county Planning pointed chairman of the Macomb Other Macomb County eco- ture Industries manufacturing hard here. Not anymore,” said DE- and Economic Development De- County Board of Commissioners, nomic strategies: site in Sterling Heights could LEG Economic Analyst Jim Rhein. partment reports a total of 42 com- said last week he is making eco- Ⅲ Gieleghem said he and a have new startup businesses “Now it’s affecting everybody. panies pledging to invest a total of nomic development a top priori- group of county leaders will moving in as tenants by July, In (the course of) 2008 it switched $228 million in business attraction ty. He plans to visit at least one meet today with executives at said Don Morandini, deputy di- over to all industries (getting) im- or expansion deals. These invest- local business per week to dis- TRW Automotive Holdings Corp. in rector of Macomb County Planning pacted by the larger economic ments will retain a total of 2,364 cuss local assistance to help Washington Township and and Economic Development. trend. Retail and trade, profession- jobs and add 1,842 new jobs, said companies with expansion. Chrysler L.L.C. at its Warren Gieleghem said the county is ap- al and technical services, environ- Don Morandini, deputy director of “About 85 percent of all eco- Truck Plant to discuss local gov- plying for additional funding mental — everything except a few the department. nomic development originates ernment assistance to the auto- industries like health care, which But in the same year, eight em- locally,” he said. “The other 15 motive industry. from the Michigan Economic De- has really just maintained.” ployers issued notices of layoffs or percent, I think, lies for us in at- Ⅲ The Macomb County Chamber velopment Corp. and the federal Macomb also saw the largest plant closings to 1,893 employees tracting foreign companies to of Commerce expects to host a government, to make the opera- percentage increase in unemploy- in Macomb County and to the state look at our assets here.” green expo in late April for all lo- tion viable before tenants come. ment for the five-county region under the Worker Adjustment and To that end, Gieleghem said cal businesses interested in di- When complete, the 80,000- compared with a year earlier. The Retraining Notification Act. The the county hopes to join with the versifying into green technolo- square-foot incubator site could region includes Wayne, Oakland, federal act requires companies Detroit Regional Chamber and Au- gy. An exact date and place host up to 12-15 businesses, pri- Livingston, Washtenaw and Ma- with 100 or more employees to is- tomation Alley on regional eco- haven’t been determined, but marily in the defense and home- comb counties. sue 60-day notice in advance of any nomic attraction to draw over- Chamber CEO and COO Grace land security industries. According to November figures, planned closings or layoffs that seas investment during 2009. Shore said 22 business represen- — Chad Halcom Wayne and Oakland both saw eliminate 50 or more jobs. greater increases in raw unemploy- At least 1,200 of these jobs be- ment totals, but smaller percentage longed to Troy-based automotive changes in jobless rates. supplier Cadence Innovation, which Grace Shore, CEO-COO of the announced plans to shutter plants Macomb County Chamber of Com- in Fraser and Chesterfield Town- merce, said the county’s largest ship in late October. chamber organization managed “Some of the latest efforts we’ve net growth of nine businesses, or made can help us become a defense just less than 1 percent of its industry hub and help some our roughly 950 members, during 2008. current automotive suppliers and That was about 129 new members companies to diversify,” said Paul joining the organization, to offset Gieleghem, chairman of the Ma- about 120 members lost, and Shore comb County Board of Commissioners. estimates 40 percent of its lost “But it’s hard to offset the (tradi- members are companies that are tional) automotive job losses, when Meetings. no longer in business. some of those are pretty stagger- About 35 percent of its new mem- ing.” bers are businesses in their first few David Widlak, president and years of operation, she added, and CEO of Mt. Clemens-based Commu- she expects 2009 might show a simi- nity Central Bank, said the county’s lar turnover and casualty rate. business community is “blessed “We are just slightly bigger in with a lot of entrepreneurship,” (membership) than we were a year and he predicts the coming year ago, and we consider that an will see many younger companies achievement. In an economic envi- weather hardships and grow in the ronment like this, that is good coming months. enough for me,” Shore said. “Be- “Residential will remain flat cause I’ve been working within the and linger there a while. You just business community for 30 years, have the problem of fewer people Conventions. and I’ve never seen it like this.” than there are houses,” he said. Shore said she also expects 2009 “But on the commercial side, I will be a difficult year to maintain think Macomb County is going to or grow the chamber, based on the prove more vibrant and economi- predictions of local and national cally stable than some of the areas economists. Staff reports to the around us.” Federal Reserve Board of Governors Chad Halcom: (313) 446-6796, last month called for the economy [email protected]

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NATHAN SKID/CRAIN’S DETROIT BUSINESS Paul Gieleghem (left), chairman of the Macomb County Board of Commissioners, MotorCity Casino Hotel and MotorCity Casino Hotel design and Don Morandini, deputy director of Planning and Economic Development, are are trademarks of Detroit Entertainment, L.L.C. ©2009 Detroit Entertainment, L.L.C. All rights reserved. working on several turnaround projects for the county. 20090126-NEWS--0028-NAT-CCI-CD_-- 1/23/2009 5:42 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS January 26, 2009 Net income down for most HMOs through 3rd quarter Medicaid

BY JAY GREENE HAP, which earned $14.2 million CRAIN’S DETROIT BUSINESS HMO NET INCOME THROUGH THIRD QUARTER in net income for the first nine Stimulus months of 2008. However, those ■ From Page 1 Just two of the nine largest Financial results for the first nine months ending Sept. 30: numbers represented a 48 percent commercial and Medicaid health decline from $27.2 million for the maintenance organizations in HMO 2008 2007 Change same period in 2007. aid patient they treat.” Southeast Michigan posted high- To keep pace with rising un- Aetna Health Inc. $182,000 $109,000 67% The only reason HAP’s income er net income for the first nine declined for the first three quar- employment and health care months of 2008 than during the Blue Care Network 37.9M 35.9M 6% ters of 2008 was a 385 percent drop costs, Michigan has been spend- same period in 2007, according to Great Lakes Health Plan 1.7M 1.7M 0% in investment income to $2.4 mil- ing a larger percentage of its budget on Medicaid. In 2007, the data from the state Office of Finan- Health Alliance Plan 14.2M 27.2M -48% lion compared with $11.7 million cial and Insurance Regulation. for the same period in 2007, said state spent 21.4 percent of its HealthPlus of Michigan 12.3M 16.4M -25% Blue Care Network of Southfield Ronald Berry, HAP’s CFO. budget on Medicaid, up from 18.9 led the pack, earning net income of Health Plan of Michigan 5.5M 3.8M 45% “We remain profitable with a percent in 1999, said the Michigan $37.9 million for the first nine Molina Healthcare of Michigan 7.6M 2.7M 181% fairly strong balance sheet, but Department of Community Health. If Congress approves the months of 2008 compared with Priority Health 6.2M 25.9M -76% 2008 is our lowest level of prof- $35.9 million for the same period in itability in a while,” Berry said. stimulus package in mid-Feb- 2007. Total Health Care Inc. 929,000 2.3M -60% When fourth-quarter numbers ruary, the additional funding Troy-based Molina Healthcare of Total $86.5M $116M -25% are included, HAP concluded 2008 could help plug a hole in the Michigan also increased net income with investment losses of $3 mil- state’s projected budget deficit of $1.4 billion for fiscal 2010 that by 181 percent to $7.6 million for Source: Michigan Office of Financial and Insurance Regulation lion, Berry said. HAP had project- the first nine months of 2008, com- ed an investment gain of $15 mil- begins Oct. 1. pared with $2.7 million for the lion for the year, he said. Gov. Jennifer Granholm is expected to present her pro- same time period in 2007. “Health insurers all over are un- turmoil of the fourth quarter,” Other HMOs posted the follow- posed 2010 budget by Feb. 13. While all are profitable, HMOs der pressure for pricing and med- said Rob Pocock, Priority Health’s ing results: She gives a state-of-the-state ad- that posted lower net income for the ical costs,” said Baumgarten, who associate vice president of commu- Ⅲ HealthPlus, Flint, earned net dress on Feb. 3. first nine months also monitors nications. income of $12.3 million for the first “It is too soon to say with cer- of 2008 included HMOs in several Priority Health, which has of- nine months of 2008 compared tainty what will be cut from the Health Alliance Plan states, including fices in Farmington Hills and with $16.4 million for the same pe- Southeast budget,” said Leslee Fritz, com- of Michigan, Priority Ohio, Illinois and Grand Rapids, earned net income riod in 2007. “ munications director for the Michigan was Wisconsin. “It of $6.2 million for the first nine Ⅲ Health Plan of Michigan, De- Health, HealthPlus state budget office. “The final will be a very months of 2008, down by 76 percent troit, earned net income of $5.5 of Michigan, Health stimulus package will have ad- harder hit by stressful time for from $25.9 million for the same pe- million for the first nine months of Plan of Michigan, ditional dollars for Medicaid. It the health insur- riod in 2007. 2008 compared with $3.8 million Total Health Care will come with the requirement economic distress ers until the econ- As is the case for many HMOs, for the same period in 2007. Inc. and Aetna Ⅲ that (states) not reduce services Health Inc., said omy turns around Blue Care’s profitability was as- Great Lakes, Southfield, earned than any other local sisted through $24.5 million in in- net income of $1.7 million for the or access to clients.” OFIR. and employers Fritz said the state expects to Fourth quarter can take a vestment income for the first nine first nine months of 2008 and 2007. market. months of 2008, a slight increase of Ⅲ Total Health Care, Detroit, receive $1 billion to $1.5 billion figures won’t be ” breath.” for Medicaid over the next 15 to Other insur- $24.3 million for the same period in earned net income of $929,000 for available until Allan Baumgarten, Michigan 17 months that could span part of ance executives 2007. the first nine months of 2008 com- late February. Managed Care Review fiscal 2009, 2010 and 2011. “We don’t have a lot of long-term pared with $2.3 million for the “Southeast also blamed the But Fritz said it is possible investments in stocks and equity,” same period in 2007. Michigan was harder hit by eco- economic recession and the ane- that Granholm’s budget pro- mic stock market for profitability said Sue Kluge, Blue Care’s CFO. Ⅲ nomic distress than any other lo- Aetna, Southfield, earned net posal could include cuts for the declines. “We haven’t seen a huge change in cal market” in the nation, said Al- income of $182,000 for the first nine Department of Community “Not only are third-quarter re- lan Baumgarten, editor of investments in the fourth quar- months of 2008 compared with Health, which oversees the sults old news but, more impor- Michigan Managed Care Review ter.” $109,000 for the same period in 2007. Medicaid program. tantly, they basically became irrel- and a Minneapolis-based health The region’s second most prof- Jay Greene: (313) 446-0325, At least 22 states have pro- evant based on the economic policy consultant. itable HMO was Detroit-based [email protected] posed or implemented Medic- aid budget cuts this year. In 2008, the federal govern- ment provided a 60 percent matching share to fund Michi- gan’s Medicaid program. In 2009, Report: State’s uninsured ranks, charity care rise the amount rose to 63 percent. “Under discussion is that BY JAY GREENE 10.6 percent in billion for unemployment benefits uninsured. every state would get 3 percent CRAIN’S DETROIT BUSINESS December and for the poor. Those who are insured also are to 4 percent, with the hardest- the economy Because of unions, Michigan’s paying higher premiums. hit states getting another 4 per- Michigan is losing ground as a took a dramatic uninsured rate has been lower For employment-based coverage, cent to 5 percent,” Fritz said. If national leader in providing nosedive after than national averages, said the average family premiums in- those numbers play out, Michi- health insurance to its residents Labor Day, she report. But that is changing as creased 68 percent from 2000 to 2006. gan’s federal matching share while its hospitals are suffering said. more companies drop health cov- Family premiums in Michigan av- for Medicaid could rise as high from the effects of delivering hun- The Cover erage for their workers. eraged $11,452 in 2006, only slightly as 72 percent, she said. dreds of millions of dollars in un- Michigan report Since 2000, when 64 percent of higher than the national average of The increases in Medicaid compensated care, according to a will be handed the state’s private employers of- $11,381. The average individual pre- would be welcome, said Peter new report by the Center for Health- Udow-Phillips off to Michi- fered health coverage to their mium in Michigan was $4,446 in Schonfeld, senior vice president, care Research and Transformation in gan’s congres- workers, now only 53 percent of 2006, compared with the national policy and data services with the Ann Arbor. sional delegation, which includes companies offer health insurance, average of $4,118. Average family Michigan Health and Hospital Asso- In the 92-page Cover Michigan Rep. John Dingell and Sen. Debbie the report said. Michigan now is deductibles also increased 25 per- ciation. “Hospitals and doctors report, which was released today, Stabenow, for use during upcom- 28th in the nation in employer- cent from 2002 to 2007. would say we have been cut the authors confirm widely held ing hearings on anticipated health based health insurance. With deductibles and the unin- every year because there has opinions that as the percentage of care reform legislation, Udow- Although the percentage of sured on the rise, uncompensated been no cost-of-living increases” the population covered by private Phillips said. Michigan’s population with pri- care at Michigan hospitals for Medicaid. insurance has slipped in Michi- “The report is very timely be- vate health coverage declined to 73 climbed 68 percent over three A soon-to-be released study, gan, the numbers of uninsured and cause all of these trends in some percent in 2007, the state was still years to $1.8 billion in 2007. Schonfeld said, shows total hos- underinsured have risen, weaken- way are being addressed by the higher than the 68 percent nation- Hospitals in Wayne County in- pital profit margins declined in ing an already stressed safety net president’s stimulus package,” al average. curred the highest amount of un- Michigan to a negative 2.9 per- of hospitals, doctors and health said Doug Halladay, director of As employers dropped coverage, compensated care at $689 million cent for the first nine months of clinics. Michigan Cover the Uninsured Net- however, the uninsured rate has in 2007, a 57 percent increase from 2008 compared with a 2.2 per- “The issue is not just that there work, a Detroit-based group. grown. In 2007, 11.6 percent of 2006. Uncompensated care totals cent margin for the same peri- are more uninsured, but that peo- Under the U.S. House of Represen- Michigan’s total population, or 1.1 are based on hospital charges, not od in 2007. Nationally, hospital ple with private insurance are fac- tatives’ proposed $825 billion eco- million, were uninsured, up from costs, the report said. margins declined to a negative ing problems because of rising de- nomic recovery plan, $20 billion is 10.5 percent in 2006. The U.S. unin- The Center for Healthcare Re- 1.6 percent in 2008, compared ductibles, and access for people designated to fund health care in- sured rate was 15.3 percent in 2007. search was formed in 2007 through with 6 percent in 2007, he said. with (Medicaid) also is becoming a formation technology, $1.1 billion Another troubling statistic is a joint venture by the University of “Michigan has higher quality, problem,” said Marianne Udow- for research, $1.5 billion for clin- that the number of uninsured chil- Michigan and Blue Cross Blue Shield lower costs but also lower mar- Phillips, CHRT’s director. ics, $600 million to train physi- dren in Michigan grew in 2007, ris- of Michigan. To read the report, gins because of the poor econo- “2008 will be even more dramat- cians and medical students, $30 ing to 6.2 percent from 4.7 percent visit www.chrt.org my and high unemployment.” ic and worse” as the unemploy- billion to extend COBRA, $87 bil- in 2006, the report showed. Nation- Jay Greene: (313) 446-0325, Jay Greene: (313) 446-0325, ment rate in Michigan reached lion for Medicaid and another $8.6 ally, 11 percent of children are [email protected] [email protected] 20090126-NEWS--0029-NAT-CCI-CD_-- 1/23/2009 6:46 PM Page 1

January 26, 2009 CRAIN’S DETROIT BUSINESS Page 29

Recovery: State rushes to get a share of D.C. funds www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] pleted quickly. all public school buildings and $30 billion is estimated at $900 mil- it will “be difficult for communi- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] For example, an $825 billion stim- their needs, energy use and envi- lion over two years. ties to access that given the fiscal MANAGING EDITOR Andy Chapelle, (313) 446- ulus bill proposed earlier this ronmental impact. By comparison, Michigan spent problems on the local level. I think 0402 or [email protected] month by U.S. House Democrats en- “That alone is going to be a sig- about $1.5 billion on roads and a grant program would be pre- ASSISTANT MANAGING EDITOR/FOCUS Jennette Smith, (313) 446-1622 or [email protected] visioned using at least 50 percent of nificant undertaking to compile, bridges in 2008, and will spend ferred to a loan program.” BUSINESS LIVES EDITOR Michelle Darwish, (313) the roads, bridges, water and sewer and that’s just one” of the many about $1.2 billion in 2009. Of those The league has compiled a list of 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 funds on projects that can be started pieces of the broad bill that was pro- amounts, the federal share aver- 1,200 proposed Michigan commu- or [email protected] in 120 days within the state’s receipt posed in the U.S. House, Fritz said. ages a little less nity infrastruc- DATA EDITOR Anne Marks, (313) 446-0418 or of the money, said Leslee Fritz, di- The proposed $825 billion Amer- than $1 billion an- ture projects that [email protected] WEB GENERAL MANAGER Alan Baker, (313) 446- rector of communications in the ican Recovery and Reinvestment nually. (The proposal) would take more 0416 or [email protected] state budget office. bill encompasses $550 billion in “It isn’t even than $3.4 billion WEB EDITOR Christine Lasek, (313) 446-0473, “ [email protected] At Crain’s press time, a 180-day spending that ranges from Medic- one year’s road isn’t even one year’s to complete. The WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) timeline was in play. aid, food stamps and unemploy- and bridge pro- league plans to 446-0403, [email protected] Teams are to report to ment benefits to infrastructure gram,” Nystrom EDITORIAL SUPPORT Robertta Reiff (313) 446- road and bridge share the list with 0419, YahNica Crawford, (313) 446-0329 Granholm on Friday, and there that includes $32 billion in nation- said. “It isn’t as the governor’s of- NEWSROOM (313) 446-0329, FAX (313) 446- are expectations that some form of al energy transmission, distribu- big as people program. fice as well as 1687 TIP LINE (313) 446-6766 a federal stimulus package could tion and production system im- thought it was go- ” Washington offi- REPORTERS be passed by mid- or late February. provements, $30 billion in ing to be.” Mike Nystrom, Michigan cials and says the Ryan Beene: Covers auto suppliers, steel, higher education. (313) 446-0315 or [email protected] “I think from the governor to highway construction, $19 billion He said the pro- Infrastructure and Transportation need is urgent for Daniel Duggan: Covers retail, real estate and her cabinet directors to staff for clean water and environmental posal, as current- Association repairs and up- hospitality. (313) 446-0414 or throughout the administration, we projects, and $10 billion for mass ly drafted, isn’t grades to roads, [email protected] all recognize that this recovery transit and rail. enough to help Jay Greene: Covers health care, insurance and the bridges, water environment. (313) 446-0325 or package — however it looks in its The plan also would provide Michigan meet annual needs, and and sewer systems, utility lines, [email protected]. final form — holds tremendous op- $275 billion in tax cuts. it means that Michigan lawmakers public safety operations, lighting Chad Halcom: Covers law, non-automotive portunity to create jobs and stimu- Congressional Republicans must resume looking at ways to manufacturing, defense contracting and Oakland systems and other items. and Macomb counties. (313) 446-6796 or late Michigan’s economy. And we have criticized the proposal, with boost state transportation funding. Fritz said Michigan eventually [email protected]. want to be absolutely sure that House Republican Leader John “We were optimistic, and based Tom Henderson: Covers banking, finance, will have to prioritize its list, but we’re ready to take advantage of Boehner, R-Ohio, saying it calls for on the estimates that are out there technology and biotechnology. (313) 446-0337 or at present, the federal package’s [email protected]. the opportunities,” Fritz said. “questionable new government today, we are underwhelmed. And composition and funding remain Nancy Kaffer: Covers small business, the city of “The scope of what we’re talking spending on programs and pro- it again puts the pressure back on Detroit, Wayne County government. (313) 446- fluid as negotiations continue in 0412 or [email protected]. about is enormous. And so the jects” while providing insufficient our state elected officials that Washington. Bill Shea: Covers media, advertising and scope of work that’s required to tax relief. something needs to be done,” Nys- marketing, entertainment, the business of sports, prepare is also significant. Some The proposal is a response to trom said. She said the state inventory cur- and transportation. (313) 446-1626 or rently “contains thousands of pro- [email protected]. people are spending significant Obama’s call for a massive eco- Arnold Weinfeld, director of Nathan Skid: Multimedia reporter. Also covers the portions of their day; some people nomic stimulus plan. public policy and federal affairs jects, far more than we know we food industry. (313) 446-1654, [email protected]. are spending small portions of But even so, some critics say it for the Michigan Municipal League, would be able to fund.” Sherri Begin Welch: Covers nonprofits and their day. It’s a gigantic undertak- falls short of what’s needed. said it appears money that be- But the goal is to be as inclusive services. (313) 446-1694 or [email protected] as possible so that as the final LANSING BUREAU ing for every state.” Mike Nystrom, vice president of comes available for roads, bridges, Amy Lane: Covers business issues at the Capitol, One example, for the state to tap government and public relations water and sewer will run through package emerges, Michigan can se- telecommunications and utilities. (517) 371- lect projects that become eligible 5355, FAX (517) 371-2492, [email protected]. or into $14 billion that’s been pro- for the Michigan Infrastructure and current programs and laws. 115 W. Allegan, Suite 220, Lansing 48933. posed for a K-12 school program in- Transportation Association, said that Weinfeld said one concern the or strike those that become ineligi- volving renovation and modern- spending $30 billion nationally on league has is that funds discussed ble, she said. ADVERTISING ization — including technology roads and bridges, out of $550 bil- to help communities upgrade “We just want to be as nimble as ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] upgrades and energy-efficiency lion, is inadequate. wastewater treatment systems and we can,” Fritz said. SALES INQUIRIES: (313) 446-6052; FAX (313) improvements — the state must And based on highway funding drinking water infrastructure Amy Lane: (517) 371-5355, 393-0997 ADVERTISING SALES Jeff Anderson, Matthew J. quickly create a database listing formulas, Michigan’s share of that would be in the form of loans, and [email protected] Langan, Lori Tournay Liggett, Tamara Rokowski, Kimberly Ronan, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 CLASSIFIED SALES SUPERVISOR Terri Engstrom, 313-446-0351 MARKETING MANAGER Irma Clark EVENTS MANAGER Nicole LaPointe Super Bowl: Detroit sitting on the ad sidelines MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica ■ From Page 1 Crawford CIRCULATION Candice Yopp, Manager. SALES, MARKETING INTERN Kim Winkler traditionally are the marquee Because of the sagging economy ble-digit marketing budget cuts for troit office after a year’s absence. PRODUCTION MANAGER Wendy Kobylarz spots for brands. and the intense scrutiny on De- 2009. Ford and Chrysler are spend- Another misfire was Cadillac’s PRODUCTION SUPERVISOR Larry Williams, “The Super Bowl is still a very troit in the wake of the govern- ing less, too. 2006 spot by Leo Burnett Detroit (313) 446-0301 relevant way to tell a big story, ment loans to General Motors and The marketing cutbacks have that had an Escalade on a fashion CUSTOMER SERVICE MAIN NUMBER: Call (888) 909-9111 or write launch a new product or debut a Chrysler, skipping the Super Bowl resulted in repeated rounds of job runway — a commercial that dis- [email protected] new strategy. But even the Super isn’t a bad idea this year, losses at most of the region’s auto- pleased GM executives and report- SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Bowl is not immune from these Topolewski said. motive advertis- edly led to the $225 million account Outside U.S.A., add $48 per year to out-of-state tough economic times, and for rate for surface mail. Call (313) 446-0450 or “I think it’s ing agencies. being given to a Boston agency. (888) 909-9111. most advertisers, $3 million is a lot probably a good I don’t think the On the bright While absent from the game’s TV SINGLE COPIES: (888) 909-9111 or contact to invest for 30 seconds of very dis- thing con- “ side, skipping commercials this year, General Mo- Karen Boykin, [email protected]. REPRINTS: Call (800) 494-9051, Ext. 144 , or tributed eyeballs who primarily sidering Super Bowl the Super Bowl tors will continue to have a major write [email protected]. want to be entertained,” said where they eliminates the presence at the game. The company TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. George Rogers, president of Dear- are right is the be-all, chances of an ad- is one of the NFL’s 22 corporate born-based advertising consor- now. They vertisement sponsors, and Cadillac sponsors the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY tium Team Detroit, which handles have to be backfiring and post-game show and MVP award, CRAIN COMMUNICATIONS INC. end-all. CHAIRMAN Keith E. Crain Ford’s advertising. smarter in ” generating more GM’s Cusinato wrote. PRESIDENT Rance Crain Even Super Bowl advertising how they Gary Topolewski, bad news for Others in the local ad industry SECRETARY Merrilee Crain veterans are wary of the pricey communi- both a carmaker speak wistfully of the Super Bowl. TREASURER Mary Kay Crain Topolewski Group Executive Vice President/Operations spots this year. cate,” he and its agency. “If you work at an agency as a William A. Morrow “I don’t think the Super Bowl is said. General Mo- creative person on a car account in Group Vice President/Technology, Manufacturing, Circulation the be-all, end-all. It’s fun for the It’s unclear if any car spots were tors, for example, could ill-afford Detroit, hearing the words ‘Super Robert C. Adams candy bars and beers, but a car is a in the works and then pulled. The today the bad publicity generated Bowl commercial’ is enough to Vice President/Production & Manufacturing Dave Kamis sexy, emotional, high-ticket item. carmakers and ad houses aren’t by its $5 million, 60-second spot keep you working days and nights Corporate Director/Circulation There are better ways to get your talking about that. from the 2007 Super Bowl. to come up with the big idea for Patrick Sheposh G.D. Crain Jr. Founder (1885-1973) message out,” said Gary Topolews- Typically, Super Bowl ads take The commercial, done by Los An- weeks, even months on end,” said Mrs. G.D. Crain Jr. Chairman (1911-1996) ki, who was instrumental in creat- six to eight months to prepare, geles agency Deutsch, touted GM’s Brian Cusac, a principal and chief EDITORIAL & BUSINESS OFFICES: ing the wildly successful Led Zep- meaning they would have been in commitment to quality by showing creative officer at growing Royal 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 pelin-themed campaign for production prior to the current an anthropomorphic assembly-line Oak boutique agency Drive Solu- Cable address: TWX 248-221-5122 AUTNEW DET Cadillac launched during the 2003 economic crisis. robot laid off for dropping a part and tions Inc., who once worked on Su- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the Super Bowl. General Motors (whose primary then later leaping off a bridge in a per Bowl ads for Ford while at J. third week of January, and a double issue the fourth week of August by Crain Communications Topolewski, who has his own local agencies are Warren-based suicidal dream sequence. Walter Thompson. Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional eponymous agency today in Fern- Campbell-Ewald, Leo Burnett Detroit GM stripped its corporate ac- “It’s one of the biggest carrots in mailing offices. POSTMASTER: Send address dale and does some work for the in Troy and the Detroit office of count from Deutsch not long after the industry. So from an agency changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- carmakers, did the Cadillac cam- McCann Worldgroup) said in Sep- that ad campaign, which culminat- standpoint, that’s going to be 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2008 by Crain paign while with Leo Burnett De- tember it wouldn’t air any Super ed in the suicide being trimmed something that’s missed.” Communications Inc. All rights reserved. troit predecessor D’Arcy Masius Bowl ads, and announced two from the commercials, and re- Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any Benton & Bowles. months later it was planning dou- turned the work to McCann’s De- [email protected] manner without permission is strictly prohibited. 20090126-NEWS--0030-NAT-CCI-CD_-- 1/23/2009 6:49 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS January 26, 2009 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 17-23

partment. Accuri declined the state’s Wednesday to ask Council After being named Crain’s Fiat, Chrysler terms. Cielo did not have President and former board Car dealer Detroit Business 2008 News- matching funds and asked member Monica Conyers to maker of the Year last week, that its bid be withdrawn. It repay more than $5,600 for Dingell will be honored with sign alliance is not known why Avidimer undocumented hotel stays, the inaugural Keith Crain/Au- also asked to have its bid AP reported. Conyers paid tomotive News Award next withdrawn. $3,000 Friday; the board says longs for return plan; UAW The board voted to offer a she still owes $2,600. week at the Washington Auto Show in Washington, D.C. $1.25 million loan to Ann Ar- Taylor-based Atlas Oil The award recognizes Din- bor-based Incept BioSystems Co. acquired and will begin backs deal and $2.6 million to Livonia- to supply 57 BP Products gell’s 53 years of service to based Fisher Coachworks North America Inc. locations of the ‘Alfistis’ the automotive industry and iat S.p.A. and Cerberus L.L.C. Both must agree to in suburban Chicago. its workers. he idea of Italy’s Fiat Capital Management terms and have matching ■ Madonna University in SpA taking a 35 per- Keith Crain, Crain Commu- F L.P., the private-equity funds. Livonia said Thursday it re- T cent stake in Chrysler nications Inc. chairman, Auto- owner of Chrysler L.L.C., con- Most of the staff of ceived a $1.5 million grant L.L.C. is welcome news to motive News publisher and firmed that the Italian com- WDFN-AM 1130 lost their jobs from the Kresge Foundation to Gina Russo. editor-in-chief and Crain’s pany intends to acquire an Tuesday as part of a layoff of support a $20 million Sci- General Manager of Detroit Business, will pre- initial 35 percent stake in the more than 1,800 people na- ence and Media building. Lochmoor Chrysler Jeep in De- sent the award to Dingell on U.S. carmaker, Automotive tionwide by Clear Channel Dura Automotive Systems troit, Russo’s father, Gus, Feb. 3. during the show’s News Europe reported. Communications Inc., the As- Inc., which emerged from picked up the first metro De- Preview Reception. The Fiat would make avail- sociated Press reported. Chapter 11 bankruptcy pro- troit franchise for Fiat- award ceremony caps off the able its distribution network General Motors Corp. said tection last summer, is tak- owned Alfa Romeo in 1990. He show’s Public Policy Day, in key growth markets. it received Wednesday $5.4 ing the first step to becom- United Auto Workers Presi- sold the cars until 1995, where automakers will pre- billion from the U.S. Treasury ing a private company, dent Ron Gettelfinger said the when Fiat stopped exporting sent their latest products Department, the second in- according to regulatory doc- union supports the deal. them to the United States. and technologies to federal stallment of its federal loan uments filed Wednesday. Also, the UAW has agreed Among many things, Rus- officials, policymakers, leg- package, the AP reported. Enrollment at Wayne so misses the dedicated to let Chrysler end its Jobs Troy-based staffing State University dipped 4.1 islators and members of the Bank today as it seeks to group of Alfa Romeo-lovers, Obama administration. firm Kelly Services Inc. report- percent in the winter semes- who call themselves “Al- help the automaker meet ed a net loss of $88.8 million ter over the same period last Crain said he was hon- the terms of its federal fistis.” for 2008, following a 13 per- year, from 30,280 to 29,057, ored that the auto show and bailout before a Feb. 17, “They have an owners cent decline in fourth-quar- The Detroit News reported. Bidding for the services of its dealers considered his deadline, Automotive News club; they’d take them to ter revenue and a 3 percent Ann Arbor-based Tecum- “Marty the Doorman” was contributions important reported. Workers will be the tracks,” she said. “They brisk at the Ritz-Carlton decline in full-year revenue. seh Products Corp. requested enough to create the award. laid off and have to go on love that car.” charity auction. Dearborn Bancorp Inc. that the Michigan Court of Ap- “John Dingell was an ob- state unemployment and Having a Chrysler and said it lost $29.4 million or peals reverse a lower court Hospice of Michigan. vious choice this year for the supplemental pay. Jeep franchise for her deal- The 400 people in atten- $3.77 a share on revenue of decision and allow the is- ership, Russo hopes to grab inaugural honor for every- $13.5 million in fourth quar- suance of new stock that dance at the event earlier thing he has done for the a Fiat franchise if it works this month reportedly went Palace embezzlement ter 2008, compared to net in- would diminish the influ- auto industry, its dealers out. Lochmoor even has a crazy when Marty Premtaj come of $398,000 or 5 cents on ence of ex- company Chair- and consumers,” he said. suspects are arrested mechanic on the payroll paraded back and forth on $17.5 million revenue in the man Todd Herrick. Meanwhile, Dingell’s from the Alfa Romeo days the stage in his top hat. The Auburn Hills police Lt. same quarter last year. The city of Dearborn specifically trained to work winning bidder was to re- Newsmaker award will be Casimir Miarka said U.S. The 24grille restaurant filed a lawsuit against Bur- on Italian cars. ceive dinner for 10 prepared presented during a luncheon marshals arrested Erik Mc- opened in the Westin Book ton-Katzman Development Co., “I don’t know how it will by the hotel’s executive at the Ritz-Carlton in Dear- Donald and Amy McDonald in Cadillac Detroit Wednesday. accusing the company of all work out, but we’re excit- chef, and “Marty the Door- born from noon-1:30 p.m. New Orleans on Jan. 16 on Also, John Ferchill, develop- breach of contract for not ed to be part of it,” Russo man” to greet guests. Feb. 18. charges of embezzling more er of the renovated property, completing phases of the said. Bidding quickly reached On top of being the than $1.5 million from and the Detroit Investment mixed-use West Village Com- longest-serving current Palace Sports & Entertain- Fund are completing a deal to mons project. $20,000. The hotel quickly How much for the doorman? added a second offering of member of the House, Din- ment Inc., the Detroit Free make money available to Auburn Hills-based condo buyers, The Detroit Chrysler L.L.C. shifted the While putting together a Premtaj, with that drawing gell will be the longest-serv- Press reported. News reported. Only 16 of 50 Jeep brand advertising ac- list of items for the charity an additional $20,000. ing U.S. representative in Police say Amy McDon- ald, a former Palace Sports buyers have closed deals. count back to the Detroit of- auction at the 20th anniver- “With all the bad things history on Feb. 14. employee, fraudulently Philip Thomas, attorney fice of New York City-based sary celebration for the Ritz- people say about Detroit, used company credit cards for Kwame Kilpatrick, said BBDO, from Cutwater, San Carlton in Dearborn, orga- there’s still so much gen- BITS & PIECES to buy electronics, vehicles Tuesday that the Michigan At- Francisco. nizers thought it would get erosity here,” said Linda torney Discipline Board decid- Visteon Corp. said it some chuckles to auction Frank Stella, founder and and even pay child support Jennings, president of Good ed it doesn’t have the au- would resume a five-day the services of the hotel’s CEO of The F.D. Stella Prod- owed by her husband. News Ink L.L.C., a PR firm thority to lift a judge’s order workweek in February after well-known doorman. ucts Co., Detroit, is to be hon- representing the hotel. revoking the jailed ex-may- shifting to a four-day week, They didn’t think it ored with the 2009 Humani- ON THE MOVE or’s license, the AP reported. but would cut the pay of would get $40,000. tarian Award from the James Steward, director Also, Kilpatrick could be workers making more than It was the lion’s share, in Awards rain on Dingell Detroit Medical Center Reha- of the University of Michigan released from jail Feb. 3. He $75,000. fact, for the entire evening’s U.S. Rep. John Dingell is bilitation Institute of Michigan Museum of Art, will become had been sentenced Oct. 28 The city of Pontiac re- fundraising: $105,000 for cleaning up in the awards de- Feb. 14. director of the Princeton Uni- to four months in jail, but ceived two proposals for the versity Art Museum in April. his sentence was shortened Silverdome: a resubmitted because of good behavior. offer of $12.5 million from OTHER NEWS Attorneys for the city and Allen Park-based Smart Park Detroit’s two daily newspa- International L.L.C.; and a $25 Get more of the story from our reporters’ blogs The University of Michi- pers will meet next month to million bid from California- gan said Monday it plans to try to settle a lawsuit seek- based Super Marching Bands Blog could ever put in a story. ing documents and text mes- Classic and Hall of Fame, The - build a $23.2 million, 50,000- Pronunciations: \’blog, ‘bläg\ Now we have a channel for it. sages in Kilpatrick’s whis- News reported. square-foot development Function: noun Starting today, Crain’s reporters center for its men’s and tle-blowers’ case. The Salvation Army East- Nancy Kaffer and Bill Shea will ern Michigan Division plans Definition: Short for Weblog, a Web women’s basketball pro- Detroit City Council begin blogging on their respective to buy and reopen a 17,000- site that contains an online gram next to Crisler Arena. member Alberta Tinsley-Tal- personal journal with reflections, areas of expertise: small business abi; DeDan Milton, former square-foot community cen- and marketing media and sports. ■ The Michigan Economic comments, and often hyperlinks chief of staff for Kwame ter in Pontiac for $645,000. We’ll add more staff bloggers in Development Corp. rescinded provided by the writer. Kilpatrick; and ex-city International Paper Co. the weeks to come. Friday three loan offers it Crain’s blogs Treasurer Jeff Beasley must says it’s shuttering its cor- It’s yet another reason to set your had made in October as part Pronunciation: \’kra- ns blo- gs\ repay nearly $14,400 for rugated container plant in Web browser to of a 21st Century Jobs Fund Function: plural noun www.crainsdetroit.com to read this travel advances they got Howell, resulting in the loss business plan competition: Definition: What we’re launching exclusive content, then join in the while trustees of the Detroit of 95 jobs. discussion, leaving your own $1.95 million to Accuri Cytome- Police and Fire Retirement today, a Web site that contains WEB WORLD online personal journals from comments or links. ters Inc.; $2 million for Ann System but never submit- OBITUARIES Crain’s reporters. Alan Baker Find the new blogs under “blogs” Arbor-based Cielo MedSolu- ted receipts for, the Detroit It’s the constant struggle of Web General Manager in our main red navigation bar at tions; and $2.46 million for Free Press reported. Dell Warner, broadcast- reporting. There’s always more information, the top of the page. Ann Arbor-based Avidimer Also, the general retirees’ er and journalist, died of insight and perspective out there than we Happy blogging! Therapeutics Inc. pension board voted cancer Jan. 21. She was 84. DBpageAD 2.qxd 1/14/2009 8:30 AM Page 1

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