20100712-NEWS--0001-NAT-CCI-CD_-- 7/9/20107:01PMPage1 and fuelingservicestocom- and suppliesaviationfuels and the March 2014andwillservice contracts runsthrough tract witheconomicprice Belvoir, Va.,lastweek. Energy SupportCenteratFt. through thefederalDefense tract worthupto$5.2million ceived afour-yearfuelscon- fuels suppler Page 13 Largest logisticscompanies, Page 11 call forITemployees, answer business’ companies Staffing Page 18 of pictureforDanGilbert, LeBron sagajustpart to add$81.8millionwing St. MaryHospitalseeks in lifescience,healthfirms iNetworks fundtoinvest NEWSPAPER $5.2M militarycontract Aviation fuelsupplierlands Jobs/Economy Crain’s Crain’s This JustIn Inside Page 3 AvFuel has120employees The fixed-pricefuelcon- Ann Arbor-basedaviation U.S. Army Marine Corps See ThisJustIn,Page2 List , AvFuel Corp Navy ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved . www.crainsdetroit.com Vol.26,No.28 , Air Force . re- zle asbuyerswhowereexpected opments intheneighborhoodfiz- the otherfiveresidentialdevel- eled, they’vewatchedplansfor as smallofficespaces. renovating theinteriortobeused a commercialuseandhavebeen the 102-year-oldbuildingpursued condo development. pull theplugontheirriverfront made atoughdecisionin2007to the DetroitElevatorBuilding buyers wasstrong,theownersof cured andinterestfrompotential the expectationsofitsproducer. Oak inafewweeks—including festival reachesdowntownRoyal will ratchetupanotchwhenthe annual Arts,Beats&Eatsfestival small offices condo plan,try Owners scrap Arts, Beats&Eatsfestivalhashighhopesinnew home ups, downsofmarket Elevator Buildingrides into smallofficespacearestartingtopayoff. Co-owner RandyLewarchiksaysplanstoturntheDetroitElevatorBuilding And asthey’veslowlyremod- Changing course,ownersof Though bankfinancingwasse- Now called Almost everyaspectofthe13th CRAIN’S DETROITBUSINESS B CRAIN’S DETROITBUSINESS B Y Y D C ANIEL HAD Ford Arts,Beats&Eats H D ALCOM UGGAN as smalloffices. is beingredevelopedfor$500,000 Purple Gangasabootlegginghub.It as aStudebakerfactoryandbythe 1940s to2007andwasalsoused by theDetroitElevatorCo.from Dequindre CutGreenwaywasowned building onFranklinStreetnexttothe Shown ina“before”photo,the A the owners.Acertificateofoccu- off, saidRandyLewarchik,oneof materialized. to flocktheriverfrontnever Witz, presidentof 225,000 in2009). (300,000-400,000, compared with 56) andprojectedattendance (more than200),foodvendors (now cians andentertainmentacts around $900,000),bookedmusi- corporate sponsorship(now ating budget(now$1.35million), measureable increasesinitsoper- val hasaddedsponsors,charities Presented byCitizensBank OTTEBUILDING THE BOUT nonprofits, involves nearly60 A record: S The gambleisstartingtopay But festivalproducerJonathan POTN ROLE UPPORTING See ElevatorBuilding,Page22 COURTESY OFRANDYLEWARCHIK Festival Page 21 JULT 12–18,2010 Jonathan Witzand JOHN SOBCZAK 3-6 with debuts Sept. its name.It pendages to as theap- tions asfast and attrac- , thefesti- much lowerlevelthanbefore.” allow ustoensureprofitabilityata “We’ve allscaledourbusinessto SRG GlobalInc Baird, CEOofcoated-trimmaker the newnormal,”saidKevin left themleanerandstronger. through thepasttwoyearshave structurings thatgotthem motive News require continueddiscipline. the decade. million unitsseenatthestartof units annually,comparedwith17 umes of11millionto12 day’s NorthAmericanvol- supplier CEOssay. lower breakevens,several record —profitsbecauseof strong —perhapseven itability. amid lowervolumes:prof- with anunfamiliarprospect emerged fromtherecession Adapting to‘thenewnormal’ low volumes profits amid Suppliers see Witz for thefestivaltobe(inRoyal pects areturn. investment intheevent—and ex- new hostcitythatmadeagreater pre-show hypetoliveupto,and a challenges thatdidn’tcomeupin Associates Inc Take AuburnHills-based “We’re definitelyexperiencing Five CEOsinterviewedby But realizingthoseprofitswill Profits arepossibleatto- Parts makersarepoisedfor Auto partssuppliershave “It’s anincredibleopportunity B CRAIN NEWSSERVICE Y J AMES agreed thatthere- . basedinWarren. ., alsofacesafew T sues tomanage, with parkingis- near downtown ident population up, asizableres- from theground ing tobuild stage andseat- outdoor music tiac. Thereisan year runinPon- the event’s12- REECE Auto- Borg- “ in China. North Americaandrobustgrowth duction levelsbyautomakersin reflects whathecalledsteadypro- structure.” ly becauseweloweredourcost “we’ll havearecordyear—main- range ofourguidance,”hesaid, Manganello said. 3,000 hourlyworkers,CEOTim BorgWarner hasrehiredabout third ofitsworkforce.Sincethen, off 6,000employees,oraboutone- the makerofpowertrainpartslaid Warner Inc or otherrevenue. beverage sales,performance fees lect ashareoffestivalgate fees, nonprofit organizationsthat col- more than$300,000forvarious and purchases,couldraise between parking,guestattendance impact ondowntownRoyalOak to generatea$10millioneconomic der.” the logisticsallhavetobeinor- hook todeliveragreatershow,and pectations meansweareonthe new levelofcommitmentandex- keep thingsconsistentwiththe responsibility,” Witzsaid.“To Oak), butitcomeswithalotofnew Part ofManganello’soptimism Now, “Ifwehitthehigh-end If you’ve survived The four-dayeventisexpected of survival. . Duringtherecession so far, you’ve good chance got apretty See Suppliers,Page20 Tim Manganello, BorgWarner Inc. See Festival,Page21 $2 acopy;$59year ” ® 20100712-NEWS--0002-NAT-CCI-CD_-- 7/9/2010 6:33 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 12, 2010

www.dp2a.org or call (248) 559- $247.1 million; No. 229, Center for rules were “illegal, invalid and THIS JUST IN The way it was: 1989 2095. Financial Planning Inc., Southfield, unenforceable.” —Dustin Walsh $221.2 million; No. 264, William The Michigan Court of Appeals ■ From Page 1 Throughout our 25th-anniversary Mack & Associates Inc., Troy, vacated that order in a divided year, Crain’s will use this space $174.2 million; No. 297, Northern Fi- ruling, but the three-judge panel mercial airlines, freight and car- to look at interesting items from Dover Realty opens Ohio office nancial Advisors Inc., Franklin, could not agree on a legal ratio- go companies, airports and mu- past issues. Dover Realty Advisors LLC has $150.4 million; No. 299, Vintage Fi- nale in its findings. The new rul- nicipalities, crop dusters, heli- opened an office in Cincinnati as nancial Services LLC, Ann Arbor, ing finds that the OFIS commis- copters and the U.S. military. There is no part of an expansion through the $149.3 million; and No. 311, Mutual sioner exceeded her authority New defense contracts for the “ Midwest. Fund Management Co., Troy, and reinstates the original court company totaled $10.4 million sense of space. The Bingham Farms-based $141.8 million. order. during fiscal 2009, according to multifamily real estate advisory — Tom Henderson — Chad Halcom federal data. You eliminate company plans to expand into — Chad Halcom Ohio, Kentucky and Indiana out all sensory input. … You float of the new office, said Principal State high court upholds using Oakland County Emerging Terry Schwartz. credit scores for insurance rates Sectors reports strong June ‘Passport’ program again effortlessly. The firm, with 150 employees, offers discounted tickets ” manages 6,500 units and has oper- Insurance companies cannot Oakland County’s Emerging ated solely out of Bingham Farms be barred from tying their auto- Sectors program reports four The Detroit Passports to the Arts, Jocelyn Granger, Peak Performance in the past. motive and homeowner coverage new business development deals an initiative to attract a younger Center Inc., Ann Arbor — Daniel Duggan rates to customers’ personal cred- worth a combined $24 million in audience to Detroit’s cultural in- it scores, the Michigan Supreme high-growth segments of the From a June 5, 1989, article about stitution, is again offering dis- Court has ruled. economy in June, adding up to the trend of flotation tank stress counted ticket packages for the reduction therapy, in which a Two area investment adviser The high court came down 4-3 532 new jobs and bringing the 2010-2011 season. person — say, a busy executive — firms make top 25 list last week in favor of The Insurance program’s year-to-date total In its second year, the program floats in saltwater in an enclosed Institute of Michigan, Farm Bureau ahead of 2009 as a whole. lets Passport holders attend six tank for relaxation. Granger, Two metro Detroit firms were General Insurance Co., Hastings Mu- The county also reported two performances produced by seven founder and director of the Ann ranked in the top 25 of the July is- tual Insurance Co., Frankenmuth Ca- deals in traditional economic seg- different local organizations. Arbor Institute of Massage sue of Financial Advisor maga- sualty Insurance, Citizens Insurance ments during June, totaling Performances include: “The Therapy, says flotation “never zine’s list of the largest indepen- Co. of America and two policyhold- $18 million and adding up to 135 Mikado” at the Michigan Opera really caught on,” and she doesn’t dent registered investment ers, and against the commission- new jobs. know anyone who still offers the Theatre advisers in the U.S. er of the Office of Financial and In- The monthly tally for June puts ; “Rachmaninoff” and therapy. “Dvorák” at the Detroit Symphony No. 7 was Southfield-based surance Services, on the practice of the county at a combined year-to- Orchestra; “Of Mice and Men” at Plante Moran Financial Advisors “insurance scoring” or using date investment of $193.9 million the Hillberry Theatre; “Oscar Lakes Chamber Music Festival. LLC, with $4.6 billion under man- credit scores as a gauge of risk in in high-growth economics target- Shorts” at the Detroit Film Theatre; Each performance is paired agement, and No. 25 was South- setting policy premium rates. ed by the county for business at- “20 Years of Dance in Detroit” with an event for the Passport field-based Telemus Capital Part- The state OFIS in 2005 issued traction and expansion. That sur- with the Eisenhower Dance En- holders, such as a Japanese- ners LLC, with $2.1 billion under administrative rules that prohib- passes the total of $191 million for semble at the Macomb Center for themed party with sushi and sake management. ited insurance scoring, which all of 2009, a fairly slow year for the Performing Arts; and “Music of the following “The Mikado.” The Other area firms on the list carriers had practiced in Michi- program, marked by global reces- Spheres” with the Detroit Cham- tickets range from $119 to $209. were: No. 221, Capelli Financial Ser- gan since at least 1997, but a trial sion. ber Winds & Strings at the Great For more information, visit vices Inc., Bloomfield Hills, judge in Barry County found the — Chad Halcom

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Crain’s Aug. 23 Living and Investing Do you know of in the D supplement will look at 25 quirky hangouts, Dimensions of the D — hidden cultural jewels, grassroots efforts and innovative cool businesses businesses that are off the radar of most or other uniquely city watchers. $50 VISA gift cards will be awarded to the top five folks who help us Detroit organizations? identify the best of Detroit’s hidden gems. Send your suggestions to Jennette Smith at [email protected] by July 19. Tell us about your For more information on prizes and for full contest rules visit: DETROITDetroit favorites www.crainsdetroit.com/assets/ pdf/10LivingDRules.pdf. 20100712-NEWS--0003-NAT-CCI-CD_-- 7/9/2010 7:05 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 3 Fund to invest in life Health Care Extra science, health firms iNetworks taps WSU’s Auner to do vetting BY TOM HENDERSON search. CRAIN’S DETROIT BUSINESS The fund will not invest in pharmaceuti- Budget cuts loom cal companies. A Pittsburgh-based investment firm, iNet- “The region more and more needs early- for Medicaid HMOs, Page 8 works Advisors Inc., has launched what it stage capital, so this is good news,” said Ma- hopes will be at least a $20 million fund to hendra Ramsinghani, managing director of invest in startup and early-stage health and the $5 million First Step Venture Fund. life science companies in Housed at Detroit’s Company index Southeast Michigan and TechTown and launched These organizations appear in this week’s Crain’s Windsor. in March with funding This is a huge Detroit Business: The fund, iNetworks “ by the New Economy Initia- Michigan Fund LP, opportunity. tive, the First Step Fund Andiamo Restaurant Group ...... 20 which already has typically invests $50,000 Behr America ...... 20 about $15 million in There are a in very early stage com- BlackEagle Partners ...... 13 commitments, has panies in Southeast Bloom Ink ...... 14 NATHAN SKID/CRAIN’S DETROIT BUSINESS Tony Masco of Greenleaf Hospitality Group says appointed Greg lot of Michigan. Blue Care Network ...... 10 versatility will be important to Zazios in Birmingham. Auner, director of “This is validation Blue Cross Blue Shield of Michigan ...... 9 “You can spend $200 on a bottle of wine, but if a couple the Smart Sensors untapped that institutions are BorgWarner ...... 1 of students want to come in and have a pizza and a and Integrated Mi- starting to realize the im- CareSource Michigan ...... 9 couple of draft beers, they can do that too,” he said. resources crosystems Program portance of early-stage Citizens Bank ...... 21 in the engineering funding, particularly in Citizens Research Council ...... 19 department at Wayne here. crisis times like these. State University, as a manag- ” There is certainly no Detroit Elevator ...... 22 ing director. Greg Auner, Wayne State University shortage of opportuni- Detroit Media Partnership ...... 21 Is market’s Auner will vet existing ties, though they may Epitec Group ...... 12 biotech companies as well as emerging tech- need shaping,” said Ramsinghani. Epoch Restaurant Group ...... 20 nologies that might lend themselves to com- According to Laurie Forbes, managing di- Evergreen Capital Partners ...... 13 mercialization at member organizations of rector of iNetworks LLC, which is based at 300 Fathead ...... 18 a collaboration known as TEAMS — an River Place in Detroit, three area compa- Fidelis SecureCare of Michigan ...... 9 acronym for technology and engineering ap- nies already are in due diligence for possi- appetite Ford Arts, Beats & Eats ...... 1 plications in medicine and surgery. Mem- ble investments. Globe Trading ...... 22 bers include the Detroit Medical Center, Henry She said investments will generally range Greenleaf Hospitality Group ...... 3 Ford Health System, the Karmanos Cancer Insti- between $250,000 and $1 million. tute and William Beaumont Hospitals. Auner has won more than $30 million in Health Alliance Plan of Michigan ...... 10 “This is a huge opportunity. There are a federal grants in the last 10 years and has Health Plan of Michigan ...... 8 ready? lot of untapped resources here,” said Auner, Health Plus of Michigan ...... 10 who said a major focus will be on cancer re- See New fund, Page 22 iNetworks ...... 3 Jawood Business Process Solutions ...... 11 188-seat Zazios opens in Jonathan Witz and Associates ...... 1 Kelly Services ...... 11 Kresge Foundation ...... 19 economy hard on fine dining St. Mary seeks to add $81.8M wing M1/DTW ...... 22 Magneti Marelli USA ...... 20 Y ATHAN KID B N S St. Mary Mercy also would build a 45,000- McKinsey ...... 19 CRAIN’S DETROIT BUSINESS Hospital rides wave square-foot emergency center on the first Mich. Association of Certified Public Accountants . 11 When Zazios opens in downtown Birmingham on floor of the new three-story patient tower. Michigan Association of Health Plans ...... 8 The two other floors would house two 40-bed July 23, it will rely on a menu with a range of prices Michigan Chamber of Commerce ...... 17 of health construction medical and surgical units. and a reinvigorated interest in dining out to help it Michigan Environmental Council ...... 17 “We really believe this navigate an economy that has BY JAY GREENE Michigan Municipal League ...... 17 CRAIN’S DETROIT BUSINESS is needed to be able to seen some well-known restau- Molina Healthcare of Michigan ...... 8 rants close and others change serve our patients into The Priority Health ...... 10 menus. St. Mary Mercy Hospital, Livonia, has ap- the future by bringing “ Quicken Loans/Rock Financial ...... 18 Tony Masco, vice president of price plied for a certificate of need to build a new them contemporary stan- food, beverage and business de- patient wing with 80 private beds and an dards of care, patient pri- Shepherd Advisors ...... 4 velopment for Kalamazoo-based point is emergency center in an $81.8 million pro- vacy, patient safety and SRG Global ...... 1 Greenleaf Hospitality Group, said ject. (improved) infection con- St. Joseph Mercy Health System ...... 22 The St. Mary Mercy project is just anoth- trol in a family centered the 188-seat restaurant in the what you St. Mary Mercy Hospital ...... 3 er recent example of a resurgence of health environment,” Spivey new Greenleaf Trust building on Tax Trilogy ...... 4 care construction in Southeast Michigan. said. the corner of Woodward and make it. Spivey The Dali Group ...... 20 Maple needs to serve 200 guests ” Over the past six months, William Beau- Joseph Diederich, COO mont Hospitals, Oakwood Healthcare, Henry of Dearborn-based Oakwood, said St. Mary The Inn Place Bar and Grill ...... 21 on weekdays and 400 on Satur- Tony Masco, Trowbridge Restaurants ...... 20 Greenleaf Ford Health System, Detroit Medical Center, Mercy’s expansion plans are an example of days and Sundays to hit its tar- Zumba Mexican Grille ...... 21 get of $4 million in revenue, Hospitality Group Trinity Health and the University of Michigan continued demand for patient care services double the amount accrued by Health System have announced or have be- in Southeast Michigan. its sister restaurant in Kalamazoo last year. gun more than $1.4 billion in projects. “Oakwood … like St. Mary Mercy has Department index Greenleaf Hospitality is the hospitality and Under its CON proposal, St. Mary Mercy been able to grow to answer an increasing restaurant arm of the wealth management compa- also would renovate its existing inpatient demand for services,” Diederich said. “We BANKRUPTCIES ...... 17 facilities to convert 51-year-old semi-private accomplish this, despite limited access to ny Greenleaf Trust. BUSINESS DIARY ...... 16 rooms into 224 private rooms, said CEO capital and skyrocketing uncompensated Masco said the Birmingham restaurant will have CALENDAR ...... 16 entrees ranging from $19 to $34, and he expects the David Spivey. Room sizes would increase to care costs associated with our economy’s CAPITOL BRIEFINGS...... 17 average customer to spend around $95 for dinner 320 square feet from about 230 square feet. challenges, because our patients’ needs con- for two with wine. Zazios will be open seven days a Spivey said the St. Mary Mercy project is tinue to evolve and expand.” CAREERWORKS ...... 14 week, but not initially for lunch. contingent on approval in September from The St. Mary Mercy project would be paid CLASSIFIED ADS ...... 14 Novi-based Trinity Health, the corporate KEITH CRAIN...... 6 See Zazios, Page 20 board of the hospital. See St. Mary, Page 22 OPINION ...... 6 OTHER VOICES ...... 7 Salute to Entrepreneurs Business Risks and Solutions PEOPLE ...... 15 Attorney Ken Neuman helps second stage THIS WEEK @ Do you know an entrepreneur who deserves RUMBLINGS ...... 23 applause? Tell us before the July 26th businesses assess their "Business Risks WWW.CRAINSDETROIT.COM deadline! crainsdetroit.com/nominate and Solutions" crainsdetroit.com/neuman STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 23 20100712-NEWS--0004-NAT-CCI-CD_-- 7/9/2010 5:57 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS July 12, 2010

StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly feature that analyzes a To sign up for the twice-monthly recent business decision by a second-stage company. e-newsletter, go to crainsdetroit.com/getemail. The For more second-stage coverage, go to Second Stage print section will appear in Crain’s on the crainsdetroit.com/secondstage. third Monday of each month. TAX TRILOGY LLC Location: Dearborn and run with it,” she said. “He’s going to take time.” Description: Tax compliance able to take our relationships Expert opinion: Loch McCabe, firm providing source data analy- with these clients and conduct the president of Ann Arbor-based sis, return preparations and tax proper follow-up to secure the Shepherd Advisors, said growing filing services to clients such as business.” companies too often rely on lega- Ford Motor Co. and Saab. Since hiring the director, Tax cy relationships and customer President and CEO: Nancy Hazely Trilogy has secured a large con- service. Founded: 2007 tract with Saab “They rely on these relation- Employees: 33 and is in the ships to keep the business going Revenue: $1.5 million in 2009, process of sign- and then the world will change with $2.5 million projected for ing two more and then they struggle,” he said. 2010 clients. “To grow their customer base Problem to be solved: The exodus “I’ve finally they have to become less reactive of tax professionals with the auto been able to go and more proactive.” layoffs allowed Nancy Hazely, a back to running Developing a marketing strate- former Ford employee, to form the business gy is crucial to success in the cur- her company in 2007 and grow it and not be out rent economic climate, he said. to 33 highly networked employees marketing our “Marketing ranks lower for Hazely in three years. services,” Haze- most second-stage companies However, generating contracts ly said. than it should,” he said. “Compa- from its stable of contacts proved Risks and considerations: The nies that develop a strategy — ei- to be a difficult task. money used to hire the director ther by hiring a consultant or an “We were all working full was originally reserved for soft- internal marketing professional time,” she said. “We were all do- ware updates, Hazely said. — align themselves with their ing sales presentations, and then “I didn’t think I could afford a customer base and generate bet- we wouldn’t get the time to follow marketing person,” she said. “I ter results than those that just up and the opportunity was lost.” was planning on putting more pound their name and message Hazely enlisted the service of a money into software but realized I out there.” cold-calling firm to help generate had to funnel that money into Marketing takes patience as new business, but the strategy marketing instead.” well, McCabe said. proved unsuccessful. Hazely also was nervous about “Marketing well done requires Solution: In February, Hazely a full-time marketing employee a lot of thought and time,” he said. hired a former tax professional to not meeting her expectations. “Companies should definitely become Tax Trilogy’s director of “I really worried whether they look at their strategy and look to a sales and marketing. could deliver what I anticipated,” professional to at least get them “Now we have the contacts and she said. “But, it’s not like fast started in the right direction.” someone that can take the ball food; this is an investment that’s — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- preneurship editor at Crain’s Detroit Business, at [email protected]. Campbell-Ewald named ad agency for MotorCity Casino, U.S. health campaigns

BY BILL SHEA piece missing — communicating CRAIN’S DETROIT BUSINESS something local about Detroit to a (C-E) found local audience,” she said. Warren-based advertising “ The first casino work drops in agency Campbell-Ewald, which our voice. September, and it will focus on wraps up its 91 years of Chevrolet ” making connections in metro De- work by the end of the summer, Jenny Holaday, troit communities. The casino will has inked creative deals with Mo- MotorCity Casino Hotel double its billboard advertising in- torCity Casino Hotel and for Centers ventory to 20 throughout the re- for Disease Control and Prevention also be doing. gion. campaigns. Campbell-Ewald replaces Las “(C-E) found our voice,” Hola- The $21 million contract to do Vegas-based SK&G Advertising, day said. anti-tobacco use and anti-obesity which continues the casino’s me- Campbell-Ewald lost the work is through the Washington, dia buying work until the end of $600 million Chevy account earlier D.C.-based nonprofit Academy for the year, when it will transition to this year when General Motors Co. Educational Development, which C-E, said Jenny Holaday, MotorCi- decided to move the work to Publi- conducts health campaigns global- ty’s senior vice president of mar- cis Worldwide (which lost the work ly. The first work will launch in keting. two months later to yet another 2011. Where applicable, C-E plans to agency). The agency’s portion of the con- use production resources in metro C-E has about 1,100 employees, tract is part of a $28 million deal Detroit to collaborate on the post- and it’s believed about a quarter of awarded to AED by the suburban production work, the agency said them work on GM accounts. Some Atlanta-based CDC via federal in a statement. work on multiple client accounts, stimulus funding from the Ameri- As agency of record, C-E will do but layoffs are planned. can Recovery and Reinvestment broadcast, print, outdoor, digital, The firm is the 23rd-largest U.S. Act of 2009. direct-mail, in-house and other advertising agency based on its es- Details of the MotorCity con- marketing for the casino. timated annual revenue of tract were not disclosed, but the C-E delivered an unsolicited $210.5 million, according to Adver- casino last year spent more than $4 pitch to MotorCity in April. Mo- tising Age. Its largest account re- million on marketing, according to torCity, owned by Marian Ilitch, mains the $800 million U.S. Navy re- Kantar Media, but that hasn’t in- already was reviewing its market- cruiting contract. cluded the direct-mail and in- ing at the time, Holaday said. Bill Shea: (313) 446-1626, house advertising that C-E will “There was this very important [email protected] 20100712-NEWS--0005-NAT-CCI-CD_-- 7/9/2010 5:56 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 5 Detroit Rotary works to boost membership as it turns 100

BY BILL SHEA Facebook page has 107 “likes.” CRAIN’S DETROIT BUSINESS ROTARY GALA It costs about $330 annually in Ⅲ local dues to be a member of the Skill + Service = Solutions: The days of service clubs and What: The Detroit Rotary will Detroit club, Powe said, plus $25 in celebrate its 100th anniversary fraternal organizations occupying with a dinner gala. half-year dues to Rotary Interna- • Health care business a central role in American life and tional. Ⅲ When: July 24, 6 p.m.-midnight. formation & management culture are largely past, but loyal Ⅲ In 2008-09, Rotary Internation- members continue to devote time Where: MotorCity Casino Hotel, al’s total revenue was $66.7 mil- • Regulatory & reimbursement 2901 Grand River Ave. issues such as certificate of to such groups. Ⅲ lion, mostly from membership The Detroit Rotary, which cele- Tickets: $150 by calling (313) dues. need, audit defense, and 259-1575 or by visiting brates its 100th anniversary with a www.detroitrotary.com. The Detroit club is grouped with network participation issues gala at MotorCity Casino Hotel on 50 clubs across Southeast Michi- Ⅲ Sponsorships: E-mail Joe Berke • Licensing & credentialing July 24, is one of those groups. at [email protected]. gan and southwestern Ontario. “It’s strong. It’s got a good core,” Proceeds support Detroit Rotary Those 50 clubs collectively have • Criminal health care fraud said Larry Powe, the organiza- more than 1,700 members. That’s service projects and the service • General health care litigation tion’s most recent past president club’s foundation. down one club from a year ago. and a lawyer with Detroit’s Keller The Detroit Rotary is working to • HIPAA Privacy & Security Thoma PC. “As service clubs have Rotary, whose motto is “Service have 3,000 volunteers boost adult compliance gone, Detroit Rotary is no differ- above self,” is known for its inter- literacy in the city and metro area, ent.” national efforts to eradicate polio Powe said. The group today has about 90 and for a tradition of singing songs The club also gives up to $10,000 members, he said. At its peak, it at its weekly meetings. Bob Alli- annually in scholarships to De- had more than 600 in the 1960s and son, longtime host of “Ask Your troit high school students, and it early 1970s. Neighbor” on WNZK 690 AM, plays provided relief after the Haitian “We’re probably down to the piano for Detroit Rotary’s songs. earthquake this year. lowest point in some time,” Powe The Detroit club was founded in It’s also part of Rotary’s new fo- said. “The problem nowadays is 1910 as the 16th Rotary club, five cus on alternative dispute resolu- people don’t have a lot of time. Be- years after the organization was tion and international mediation. How can we assist? ing a noon club, that’s two hours of begun in Chicago by a lawyer, coal Since 2000, the Detroit club has your day.” merchant, mining engineer and also given the Nancy Lieberman Learn more at fosterswift.com P: 248.539.9900 Made up primarily of business tailor. Award to the nation’s top colle- E: [email protected] executives and other profession- Today, parent organization Ro- giate point guard in women’s Divi- als, the group meets weekly at the tary International claims 1.2 million sion I basketball. Andrea Riley of Detroit Athletic Club and typically members across 33,000 clubs Oklahoma State University was this Lansing | Farmington Hills | Grand Rapids | Detroit | Marquette | Holland has a guest speaker. worldwide — including four in year’s winner. Membership is by invitation war-torn Afghanistan. The award represents a depar- only. Rotary has about 370,000 U.S. ture from the organization’s past: Overcoming the perception of members across nearly 8,000 clubs. Rotary, now based in Evanston, being an exclusive, enclosed group Its membership dwarfs that of Ill., refused membership to women and creating public awareness of other service clubs, such Kiwanis until ordered to do so by the U.S. the relatively few barriers to mem- International, Sertoma International Supreme Court in 1987. bership could reverse the member- and Optimist International. It’s about Women now account for 22 per- ship decline, said Robert Bury, ex- the same size as the Lions Clubs In- cent of the organization’s U.S. ecutive director and CEO of the ternational. membership and 15 percent global- Detroit Historical Society. All have seen membership de- ly. The Detroit club has had three “Service clubs or any member- clines and have explored ways to female presidents, and its mem- ship organization face challenges reverse that trend, with online ef- bership is 35 percent female. Begin your own tradition. these days,” said Bury, a Grosse forts and changing requirements. “It’s made the club 300 percent Pointe Rotary member who is sched- The Detroit club is actively re- better,” Powe said of the ruling. “A uled to give a talk to the Detroit club cruiting in the business, govern- bunch of old stodgy guys had to get this week about the city’s history. ment and health care sectors, and their act together.” “There are so many more options it’s also turned online to seek new Bill Shea: (313) 446-1626, today for people to get involved.” members. It has a website, and its [email protected] Acquisition launches Doeren Mayhew growth plan

BY TOM HENDERSON be renamed Doeren Mayhew. sources we had, in international CRAIN’S DETROIT BUSINESS He said the company will contin- tax, in wealth management and in ue to look for acquisitions in the our audit practice.” Troy-based Doeren Mayhew is ex- Houston market, Crawford said Moore’s client pected to announce today that it with the goal to base reflects Doeren Mayhew’s, has acquired a Houston-based ac- have about 200 with an emphasis on building con- counting and consulting firm, T.R. employees. “We tractors and the manufacturing, Moore & Co. P.C., kicking off a plan don’t have a set distribution and service sectors. to triple its size over the next five timetable, but Gordon Krater, managing part- years. we think we can ner for Southfield-based Plante & T.R. Moore has four partners make it happen Moran PLLC, the second-largest and 40 associates, and had 2009 at a fast pace,” area firm, with 840 employees at revenue of $7.1 million. The sale he said. the beginning of the year, said Do- Nautilus price will not be disclosed. Once the eren Mayhew’s acquisition is part Crawford Ref. 5712/1A Doeren Mayhew had 2009 rev- Houston prac- of a nationwide trend of firms enue of $39 million. The firm be- tice is built up, he said, the compa- looking to be acquired by bigger gan the year ranked No. 8 among ny will look for an acquisition firms that can expand the services accounting firms in Southeast somewhere in the southeastern they provide clients. Michigan with 200 employees, U.S. “at a location yet to be deter- He said his firm hopes to do adding seven employees and mined,” which he also plans to some acquisitions of its own this $2.5 million in revenue in Febru- grow into a practice of about 200. fall, targeting Chicago and other ary when it bought Troy-based “We’ve been talking for years and cities he declined to name. “We’re R.W. Frickel Co. years about expanding outside the getting some receptivity to feelers Mark Crawford, Doeren May- state, but we never had the right fit. we’ve put out. We’ll really get after hew’s managing director, said the This is the right fit,” said Crawford it this fall,” he said. Houston firm will keep the Moore of T.R. Moore. “We found a top firm Tom Henderson: (313) 446-0337, name until September 2011, then that was looking for the exact re- [email protected] 20100712-NEWS--0006-NAT-CCI-CD_-- 7/9/2010 5:49 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS July 12, 2010 OPINION A chance to toast Canada’s friendship ince when has Canada become the enemy? That’s a question a Michigan businessperson with S international business ties might ask these days. At the Detroit Regional Chamber’s Mackinac Conference in late May, a couple of gubernatorial candidates lit into Cana- da for allowing directional drilling for gas in Canadian waters of the Great Lakes. And some Michigan lawmakers have condemned Canada’s offer to pony up more than $500 million toward Michigan’s po- tential tab for a new bridge across the Detroit River. The policy differences have escalated at times to anti-Cana- da rhetoric that’s simply over the top. Canada is an important trade partner to the U.S. in general, but especially to Michi- gan, which shares four distinct border crossings, including two in Detroit. So give it a rest, already, and celebrate the positives at a dinner July 28 honoring Cana- dian Consul Robert Noble as he retires from a 35-year career in Canada’s diplomatic ser- vice. (The Detroit-based consul represents Canada in Michigan, Ohio, Indiana and Ken- tucky.) Noble has been a champion of Midwest U.S.-Canada relations in his four years in the TALK ON THE WEB Noble post, particularly in helping to develop plans From www.crainsdetroit.com to create a Halifax/Montreal trade lane to Detroit as the hub when nobody can afford to do that. for the Midwest. Re: Budget cuts loom Reader responses to stories and Terry Barclay The Detroit Regional Chamber gets credit for convening for Medicaid HMOs blogs that appeared on Crain’s Web site. Comments may be the dinner. My business will see higher Re: Atlas Oil Co. deciding how health insurance costs because of edited for length and clarity. Business execs — especially those doing business in Cana- to distribute BP oil spill rebates da — might use this occasion to take the edge off some of the these cuts in Medicaid reimburse- ment rates. Lower taxes on the one Re: Detroit Zoo’s water tower A great way to use the cash re- harsh and ill-considered condemnations of our “southern” hand, even higher health insurance bates would be to donate the money neighbor. costs on the other. getting a $200K facelift locally to a cause that benefits David Waymire I can still vividly recall the day wildlife. This could include donat- Coleman Young’s name was ex- ing the $300,000 to a group like the Re: Assistant Attorney General punged from the tower, and how Detroit Riverfront Conservancy Use funds to fix sewers first many of us had a smile on our face for use in expanding its riverwalk. James Farrell ordered to pay $10K fine the whole day. I think it best, given Roman Nestorowicz Michigan voters approved plans in 2002 to sell $1 billion in It is especially surprising that recent “hizzoner history,” that we bonds to help local governments upgrade sewer systems. an assistant attorney general leave the tower’s facade to our feath- Re: Detroit Mayor Dave Bing would engage in uncivil tactics ered, finned and four-footed friends. To date, less than $150 million has been spent. hires COO for city Fingers point in a number of directions, mostly at cumber- since they are supposed to represent Chris Conn law enforcement as well as the state. The city charter has no COO posi- some state requirements. Timothy Dinan Re: Mary Kramer: The more diverse tion, and the mayor has no right to So instead of fixing the system so bad sewer systems can appoint people to non-existing po- get fixed and water quality improved, the state would like to Interesting that our state now our leadership, the better sitions. Those people may not take shift some of the money — about $275 million — to brownfield has the time and money to devote On behalf of Inforum, I’d like to any pay, although their companies say that we could not agree more. cleanup. to “supervision and training” in may do so for services rendered. the area of common sense and basic Organizations that fail to recruit, Saulius Simoliunas Before moving on to another purpose, the state should fix decorum to a lawyer of 30 years! groom and nurture women’s leader- the current program to let more cities tap the bond fund. Mark Cory ship leave a lot on the table at a time See Talk, Page 7

KEITH CRAIN: It’s about to heat up with lots of money If you want to help the local blood after Jennifer On the Democratic month or so, you will hear nothing from this primary. economy, particularly broadcast- Granholm’s last two side, one might imagine but political messages on the air- Regardless of my own prefer- ers, hold an election. terms. I’m sure that the speaker of the state waves. This will be a real bonus ences, I have a feeling voters will If you want lots of money spent they think that it’s go- House to have a real ad- for radio and television stations pick candidates from each party on media advertising, make sure ing to be an easy prize. vantage in that party’s across the state. who will make for an interesting the race is very close so everyone The trouble is that primary. Andy Dillon It’s not cheap to run an election campaign in November. We have will have to spend lots of market- there are a whole bunch has pushed to change campaign. Candidates need to some good choices. But I’m sure ing dollars. of guys who are run- some things in govern- spend money now — and the win- there are plenty of people who are Michigan is setting up for a cou- ning, and they all seem ment that might have ners in each primary will have to having a tough time which prima- ple of races for the same spot that to have a chance. Hence, been great ideas, but spend again to win in November. ry to vote in, Democrat or Republi- are going to be real barn burners. they all need to raise a they made a couple of It’s a very expensive business, win can. The Republican primary for lot of money, except for unions very mad, and or lose. There’s going to be quite a bit of governor is going to be very close, perhaps our business- now he’s got a primary I have no idea who will be on the money spent in this primary. We and there are quite a few highly man from Ann Arbor, fight on his hands. ballot in November. Whoever they all can wish that we owned a radio qualified candidates who all smell Rick Snyder. You can be sure that for the next are, they’ll be battered and bruised or television station. 20100712-NEWS--0007-NAT-CCI-CD_-- 7/9/2010 5:11 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: The reasons why GalaxE picked Detroit

I am new to this city and insurance companies, dented amounts of data will need sionals — those with experience health care IT hub. still getting to know it. I pharmacy benefit man- to be gathered, stored and moved and others we will train through We believe others will follow bring an outsider’s per- agers, pharmaceutical to multiple places. programs and school curricula we our lead. Our clients and prospects spective about all the pos- companies and care We see a significant opportunity are now putting into place. This are American corporations that sibilities and potential providers move informa- to provide our expertise, custom will include collaboration with have been waiting for someone to here in Detroit. I have tion efficiently, accurately software and process-based solu- state and local government. We re- connect the dots between dis- sensed the caution that and securely in an in- tions. This is the next generation cently completed such a training placed American workers and should be exercised before creasingly regulated and of health care-related IT technolo- program for underprivileged work that needs to be done at re- talking about a renais- scrutinized environment. gy. youth through Rutgers University duced price points here in the sance. Many, I am told, With Washington’s fo- These opportunities translate in New Jersey that we plan to United States. have heard it before. cus on cost-cutting across into opportunities in Detroit for replicate here. When you think about Detroit, My view is more opti- Tim Bryan the industry, many com- jobs in a leading-edge, high-tech IT With more than 700 employees to quote an old song, “It’s getting mistic. From our New Jersey head- panies in and around health care sector. Over the next five years, worldwide — in New Jersey, New better all the time.” quarters, we needed to decide will be taking an even closer look GalaxE.Solutions plans to hire 500 York, Toronto and Bangalore — Tim Bryan is chairman and CEO where to locate our new health at their systems and processes. Ad- professionals to work at our De- our decision to locate in this re- of New Jersey-based GalaxE.Solu- M care-focused information technol- ditionally, as personalized medi- troit offices at 1001 Woodward Ave. gion represents a major strategic tions Inc., a provider of software o ogy hub. With all of the interna- cine, including DNA mapping, This workforce will include a commitment, as we envision services and IT business-support tional options available, it quickly moves to the forefront, unprece- combination of skilled IT profes- downtown Detroit as a major systems. E became clear that the best choice was not overseas, but in Michigan. Today, GalaxE.Solutions is here in Detroit. Why Detroit? The reasons are many: A skilled and motivated workforce, a world-class infra- 3D3@G0CA7<3AA6/A/ structure and a history of innova- AB=@GB3::CAG=C@A— tion. There are also numerous bene- µ;g ROR 8]V\ O\R VWa P`]bVS` 5O`g `O\ bVS fits related to both geography and PcaW\Saa eVS\ 7 eOa U`]eW\U c^ 7¸[ 8]V\ 8` 7 the economy here that dramatical- ly reduce cost differentials be- e]`YSRbVS`S]\eSSYS\Ra7Y\SebVSPcaW\Saa tween other U.S. rivals and even e]cZR PS [W\S ]\S ROg O\R bVOb ROg Wa VS`S 7 offshore rivals. When an East \SSROZ]b]TVSZ^b`O\aWbW]\W\UbVSQ][^O\g/\R Coast time zone, low inflation and foreign political stability consider- [OYW\Uac`SWb¸aabWZZab`]\UeVS\7^OaaWbOZ]\U ations are factored in, Detroit will b][ga]\8]V\777¶ be seen as a big American city with the ability to support big business. Moreover, the health care indus- try is exploding. Perhaps nowhere is this more apparent than in this city, where health care has long supplanted manufacturing as the largest regional private employer. GalaxE.Solutions’ major focus is in this sector — including helping

TALK CONTINUED ■ From Page 6 Re: Bob Probert: One less gonzo star in Detroit’s pro sports constellation Before Bob Probert came along, the Detroit Red Wings were known as the Detroit Dead Things. You could buy a ticket on any given night. He brought energy and excite- ment to the Joe. When he stepped onto the ice you could feel the buzz. There was another side: shy and kind and would sign for hours for however many fans that want- ed his autograph. Linda O’Connor

Re: LeBron James’ NBA free-agency theatrics So what? LeBron needs to follow what he perceives to be his own best interests. After all, who is really watching out for him? Dan Gilbert? /b 4WTbVBVW`R0O\YSdS`gPcaW\SaaPO\YW\U`SZObW]\aVW^PSUW\a The NBA? No. Their interests are eWbVOQ]\dS`aObW]\EVS`Sg]cR][]ab]TbVSbOZYW\UO\ReS clear. They want their piece of him. ZWabS\BVS\]\QSeSc\RS`abO\Rg]c`PcaW\SaaO\Rg]c`\SSRa It’s just business, as they say at the ol’ olive oil import office. eS USb b] e]`Y /\R Oa eS PcWZR g]c` ¿\O\QWOZ a]ZcbW]\a eS Timothy Dinan [OYSac`Sb]YSS^g]cW\d]ZdSR0SQOcaSacQQSaaW\PcaW\SaaWa `O`SZgOQVWSdSROZ]\S Re: Court rules that credit scores can be used to settle insurance rates No way! Another form of “red lin- :Sb¸aVOdS O Q]\dS`aObW]\Ab]^W\g]c`Z]QOZ4WTbVBVW`R0O\Y ing,” which is illegal. My score is in QOZZcaOb&%%&" '%]`dWaWb#!Q][ the high 700’s, but this is not right. Another blow to Michigan’s repu- 4WTbVBVW`R0O\Y;S[PS`4271 tation. Gman 20100712-NEWS--0008-NAT-CCI-CD_-- 7/9/2010 5:10 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS July 12, 2010 Extra

People

Ⅲ Botsford Hospital’s board of Budget cuts loom directors has appointed Armen Korkigian, D.O., chairman of internal medicine. Korkigian has been on staff at the Farmington Hills- based hospital since 1982. Korkigian for Medicaid HMOs replaces Gerald Korkigian Blackburn, D.O., who held the post for nearly five years. Ⅲ Kim Williams, Plans’ net income advantage over commercial HMOs could take hit M.D., was named division chief of BY JAY GREENE cardiology in the CRAIN’S DETROIT BUSINESS department of internal medicine for ichigan’s 14 Medicaid HMOs are the Wayne State bracing for a 2.4 percent payment cut University Physician M beginning this month from the Michi- Group. Williams gan Department of Community Health be- previously served as cause of rate-setting errors and Medicaid director of nuclear program overspending. cardiology at the “Because of increased enrollment in Williams University of the Medicaid program and the budget Chicago. He received the Outstanding Consultant to Emergency Medicine Award deficit this year, the state is from the University of Chicago Emergency looking at a $50 million rate Medicine Residency and is a member of reduction in the health the Board of the American College of plans for the rest of 2010,” Cardiology and the past president of the said Richard Murdock, ex- American Society of Nuclear Cardiology. ecutive director of the Michi- Ⅲ Vallerie gan Association of Health McLaughlin, M.D., of Plans in Lansing. the University of “We are losing the mar- Michigan Health gin we gained in 2009 with System in Ann Arbor, the rate adjustments,” Mur- received the annual Murdock Pulmonary dock said. “We are also Hypertension looking at further cuts in the 2011 budget Association Award of because of the failure of Congress (to re- Excellence in store enhanced Medicaid funding).” Pulmonary Arterial Last month, Congress rejected a $24 bil- Hypertension Care. McLaughlin lion assistance package — the Federal As part of the award, Medical Assistance Percentage — to help the health system will receive a $50,000 states meet their Medicaid obligations. grant to support continued care for Michigan had already included patients with PAH. Award criteria included proven resources required for excellence $560 million of these funds in its budget SHAWN WRIGHT/CRAIN’S DETROIT BUSINESS President Jesse Thomas says rate cuts will go straight to Molina Healthcare of Michigan’s bottom line. in PAH patient care, service to the PAH and now faces a gaping budget hole that community and provision of cutting-edge legislators are grappling with. options for patients living with PAH. Jesse Thomas, president of Troy-based McLaughlin is a professor of internal Medicaid HMO Molina Healthcare of Michi- MEDICAID VS. COMMERCIAL medicine and director of the pulmonary gan, said the rate cuts will go straight to For the first time in several years, Medicaid HMOs in 2009 earned more per member than hypertension program at the University of Molina’s bottom line. In 2009, Molina commercial HMOs. Experts predict that trend will reverse in 2010. Here’s a look at the Michigan Cardiovascular Center. earned net income of $9.97 million, for a performance of Michigan Medicaid HMOs and commercial HMOs in Southeast Michigan in Ⅲ Mike Slubowski, president of health 1.4 percent profit margin. 2009 and the first quarter of 2010: networks for Novi-based Trinity Health, “This was not done like last year where 2009 2009 2009 2010 was one of only 50 health care executives there was a cut to the (physician) rates,” net net income profit 1Q profit nationwide to be honored with the income PMPM* margin margin American College of Healthcare Thomas said. “You will have an impact Executives’ Distinguished Service Award. because you have $50 million pulled out Medicaid HMOs The award recognizes contributions to of the rates.” BlueCaid of Michigan $465,515 $1.96 0.008% 1.6% health care management excellence, Medicaid HMOs also are able to recov- CareSource of Michigan $20.3 million $35.79 12.7% 7.8% including volunteer activities that show er overpayments made to physicians in Fidelis $2.96 million $333.30 14.2% 6.9% leadership, and helping to further the their networks because those physicians health care management profession. should have billed Medicare for services Great Lakes Health Plan ($664,129) ($0.29) (0.1%) 0.4% Ⅲ Scott Laker, M.D., has joined Henry to dual-eligible recipients — those who Health Plan of Michigan $14.3 million $5.98 2.2% 0.9% Ford West Bloomfield Hospital to staff receive both Medicaid and Medicare ser- Midwest Health Plan $7.1 million $8.80 3.2% 3.2% the group’s new multidisciplinary vices. bariatric surgery program. Laker is a Molina Healthcare of Michigan $9.98 million $3.96 1.4% 1.9% “Physicians can appropriately bill board-certified surgeon and member of OmniCare Health Plan $1.6 million $2.49 0.9% 1.5% the Henry Ford Medical Group. Laker, Medicare now,” Thomas said. “Providers who also teaches at Wayne State will be better off because Medicare pays Commercial HMOs University, specializes in minimally higher rates.” Blue Care Network $62.8 million $9.86 2.8% 1.9% invasive surgery, including laparoscopic Jon Cotton, vice president of finance Health Alliance Plan $22.8 million $5.22 1.3% 0.9% bariatric, gastrointestinal, hernia and with Health Plan of Michigan, a Detroit- other abdominal surgery. based Medicaid HMO, said the 2.4 percent Medicaid/commercial Ⅲ Botsford Hospital’s Steven Katzman, rate cut will further erode declining mar- HealthPlus of Michigan $6.1 million $3.48 0.9% 1.2% D.O., received the Robert F. Schirmer gins. Educator and Mentor of the Year Award Last year, the state cut Medicaid HMO Priority Health $28.1 million $5.48 1.9% 0.3% for his training leadership. Internist David rates by 8 percent, which lowered Health Total Health Care ($3.2 million) ($3.68) (1.4%) 1.0% Lang, D.O., and general surgeon John Plan’s margin to 2.2 percent in 2009 from Parmely, D.O., were selected as * Per member, per month Source: Michigan Health Market Review, Michigan Office of Financial and Insurance Regulation (2010 data) Botsford’s Trainers of the Year. See Medicaid HMOs, Page 9 20100712-NEWS--0009-NAT-CCI-CD_-- 7/8/2010 5:17 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 9 Health Care Extra CON Roundup Medicaid HMOs: Income advantage could take hit ■ From Page 8 Ann Arbor bed 3.9 percent in 2008, Cotton said. averaged 3.5 percent and commer- groups as some members went mained stable at nearly 21,000 “If (federal Medicaid assistance) cial plans averaged 1.7 percent. through downsizing,” said Blue members. does not come through, it will be a Cotton said another reason why Care CFO Sue Kluge. “We saw “We will have roughly a half- move approved disaster in 2011,” Cotton said. “It is some commercial plans earned more elective-type procedures million people coming into Medic- hard to get physicians to sign on less in 2009 per member than most with people having more services aid eligibility,” Thomas said. The Care and Rehabilitation anyway. The state will have to Medicaid HMOs is competition for before they lost coverage.” “There will be pent-up demand be- Center at Glacier Hills in Ann Ar- drop reimbursement again.” a dwindling number of people who By 2014, when federal health re- cause they didn’t have insurance bor received state approval last Because of rising unemploy- want managed care. form expands the number of peo- before. It will be more costly in the month to move 88 of 161 nursing ment, Medic- “Commer- ple in Medicaid and private insur- outset, but we will have opportuni- home beds into a new building aid HMOs cial plans ance to 98 percent of the state’s ties to expand and provide quality next door. gained 150,000 If (federal Medicaid have to com- 10 million population from 85 per- integrated care for many more The two-story, 68,776-square- members in “ petitively bid cent in 2010, Kluge said Blue people.” foot building will offer expand- 2009 to hit a assistance) using actuar- Cross’ Medicaid plan, BlueCaid, Jay Greene: (313) 446-0325, ed physical therapy areas for record 1.2 mil- ies for busi- expects to grow. BlueCaid has re- [email protected] rehabilitation. The two existing lion, a 14 per- does not come ness,” Cotton buildings also will be renovated cent increase. said. “If they to increase the number of pri- Health Plan through, it are too aggres- vate beds and to make other im- of Michigan sive or their provements. increased en- will be a actuaries did- The projects are expected to rollment n’t correctly cost $17.6 million, 70 percent 41 percent by disaster in budget their paid for with the sale of tax-ex- adding 69,000 expected loss- empt bonds and the rest in cash. people last 2011. es (which is The nursing home is owned year to be- ” especially dif- by Ann Arbor-based Glacier come the Jon Cotton, Health Plan of Michigan ficult on new Hills Inc. The project does not state’s largest customers), involve an increase in licensed Medicaid HMO, with 236,770 mem- you will be hit with significant beds. bers. losses.” The following are selected fil- On the other hand, commercial Cotton said commercial HMO ings and decisions from June enrollment dipped 5 percent to profit margins are always more 1-30. 1.3 million, according to the Michi- susceptible to market volatility. gan Health Market Review, a report He said rate increases this year by Filings approved: by Allan Baumgarten, a Min- commercial plans will boost profit Ⅲ Trilogy Health Care of Oak- neapolis-based consultant. margins in 2010. land LLC, Commerce Township, In an analysis for Crain’s, While still the state’s most prof- relocation of West Winds Nurs- Baumgarten found the state’s 14 itable HMO, Blue Care Network’s net ing Home and its 50 beds to a Medicaid HMOs earn higher aver- income dropped 26 percent to new Bogie Lake Road location, age per member net income than $63.2 million in 2009, or a 2.8 per- $12.3 million. commercial HMOs. cent margin, from about $85.6 mil- Ⅲ Henry Ford West Bloomfield In 2009, Medicaid HMOs in lion in 2008, or a 3.9 percent mar- Hospital, addition of second Michigan averaged $7.50 in net in- gin. Blue Care is part of Blue Cross fixed MRI unit, $3.1 million. come per member per month com- Blue Shield of Michigan. Ⅲ Providence Hospital and Med- pared with commercial HMOs, “We experienced significantly ical Centers, Southfield, upgrade which averaged $1.22 net income. more utilization from employer of a cardiac catheterization lab, “The Medicaid HMOs are show- $2 million. ing very strong profitability, espe- Ⅲ Midwest Surgery Center, cially when compared with com- Dearborn, acquisition and relo- mercial plans,” Baumgarten said. cation of a Midwest Health Cen- “They are managing their costs ter, Dearborn, with at least one well and using the rates the state operating room being moved gives them very effectively.” from the existing facility to Medicaid HMOs averaged Midwest Surgery Center, $275.45 in per-member per-month $13.3 million. revenue with average expenses of Ⅲ Oakwood Southshore Medical $231.15, for an average spread of Center, Trenton, addition of a $44.30. Commercial HMOs, on the second CT scanner, $1.6 mil- other hand, had average revenue lion. of $308.28 with average expenses of $279.02, for an average spread of Applications: $29.26. Ⅲ St. John Senior Community “With the state’s budget prob- Center, Detroit, addition of 20 lem, the question for state legisla- ventilator pool beds and 20 be- tors and state agencies is, ‘do you havioral pool beds, $6.6 million; think Medicaid HMOs are making addition of 96 nursing home too much money?’ ” said Baum- beds, $9.9 million; to acquire garten. the 180 licensed nursing home Cotton said several highly prof- beds of St. John Senior Commu- itable Medicaid HMOs in Michi- nity Center at 18300 E. Warren gan have pushed net income aver- Ave., Detroit, and move them to ages to higher levels than most replace beds at the former individual plans. VISIONARY Riverview Hospital, 7733 E. Jef- For example, CareSource Michi- ferson Ave., Detroit, $19.1 mil- gan, a Dayton, Ohio-based nonprof- by design lion. it plan with an office in Okemos, Ⅲ St. Joseph Mercy Woodland enjoyed a 12.7 percent profit mar- Health, Brighton, to acquire a gin. Fidelis SecureCare of Michigan, a fixed CT and hosting services of Schaumburg, Ill.-based plan with the mobile MRI and PET scans an office in Livonia, earned currently operated by the 14.2 percent profit margin. Woodland Imaging Center LLC, “We had a couple plans that $3.3 million. were off the charts that skewed our whole universe,” Cotton said. CORPORATE I RETAIL I HEALTHCARE Letters of intent: “Other plans run huge negatives.” Ⅲ University of Michigan Health In 2009, Medicaid HMOs aver- System, Ann Arbor, addition of aged 2.7 percent margin compared CALL US TODAY AND EXPLORE YOUR DESIGN OPTIONS fixed CT scanner in the inter- with 0.4 percent for commercial 248 855 7040 l DavisInteriorDesign.com ventional radiology laboratory, HMOs, Baumgarten said. $4.8 million. Both those numbers were lower — Shawn Wright than in 2008, when Medicaid plans 20100712-NEWS--0010-NAT-CCI-CD_-- 7/8/2010 5:17 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS July 12, 2010 Health Care Extra Blue Care Network product rewards wellness – if proven

BY JAY GREENE 1 effective date, offers discounts to abetes or obesity. But Rewards requires members Health Plus of Michigan, offer simi- CRAIN’S DETROIT BUSINESS people who stop tobacco use; lower “Employers are asking for low- to meet all six health criteria to lar wellness plans. their weight; er-cost products, but they also participate in the “enhanced” ben- But Klobucar said Health Blue Blue Care Network is launching a maintain proper want to have employees showing efit plan that offers 20 percent low- Living Rewards is different than second wellness product this blood pressure, up for work in good health and be- er costs than the standard wellness other HMO wellness products in week for its more than 500,000 cholesterol and ing productive,” said Blue Care plan. Michigan and one of the first of its members that is designed to lower blood sugar lev- CEO Kevin Klobucar. Earlier this year, Blue Cross be- kind in the nation. insurance costs if participants els; and pass a “Employees win because they gan offering a similar PPO product “The other plans are participa- can measurably improve their depression test. have lower out-of-pocket costs, co- for group and self-insured employ- tion-based, and ours is outcomes- health in six areas that are known The six health pays and co-insurance,” Klobucar ers that also requires people to based,” Klobucar said. to lead to costly and debilitating risks were cho- said. meet health targets in order to re- In “participation-based” plans, chronic diseases. sen by Blue Healthy Blue Living Rewards is ceive financial discounts. members simply agree to fill out a Healthy Blue Living Rewards, Care because Klobucar similar to Blue Care’s Healthy Other health plans in Southeast health assessment survey and par- available to groups of two or more they can lead to Blue Living, launched in October Michigan, including Health Alliance ticipate in other preventive medi- employees this month with an Oct. cardiovascular disease, cancer, di- 2006 for HMO customers. Plan of Michigan, Priority Health and cine educational programs, Klobu- car said. Toni Frawley, HAP’s director of new product development, said HAP will role out a new wellness product in the fall that will offer members a variety of financial in- centives for meeting health criteria or measures, including tobacco and It’s really our customers who win. alcohol use, blood pressure, choles- terol and preventive measures. “Blue Cross has the only one in the market,” Frawley said. “We are trying to catch up. It’s a natur- al integration to the (wellness) model.” Frawley said HAP has 60,000 people enrolled in its Health En- gagement wellness product and predicts significant membership gains with its enhanced product. Klobucar said Healthy Blue Liv- ing is offered by more than 850 em- “Top Ranked “ ” ployers and has 114,000 members. He declined to estimate how many Access to Care people will sign up for the Rewards in Michigan” program. Customer Service “We believe there will be a pretty Overall Rating of Access to Rx Drugs significant uptake on this,” he said. Health Plan and Health Care. Here’s how Blue Care members Centers for Medicare and Medicaid Services become eligible for the enhanced Quality Compass 2009 ratings 2009 CAHPS® survey of consumers benefit plan under Rewards: † HealthPlus Commercial HMO* HealthPlus Medicare HMO Plans Ⅲ Blue Care members must qualify for one of three Rewards’ benefit levels by taking a physical examination at their primary care doctor’s office. Ⅲ They also take an online well- ness screening test to determine health risks and help Blue Care per- sonalize a health education plan. Ⅲ Members who qualify for the enhanced benefit plan must meet all six health measures. “One of America’s Best” For example, members must be a “Excellent” non-tobacco user, have a body mass ´$PHULFD·V%HVW+HDOWK,QVXUDQFH3ODQVµUDQNLQJV index of less than 30 (more than 30 NCQA accreditation rating of HealthPlus Commercial, E\861HZV :RUOG5HSRUW1&4$IRU 0HGLFDUH 0HGLFDLGSODQV †† is considered obese and 18.5 to 24.9 HealthPlus Commercial and Medicare plans is healthy), blood pressure under 140 over 90 and cholesterol and blood sugar levels under physician- determined target levels. Klobucar also said members are given a basic screening by their primary care physician to deter- mine if they suffer from depressive symptoms. “You must hit all six measure- ments to receive the enhanced lev- el, which has the lowest out-of- pocket costs,” Klobucar said. Get the Plus in your life! Klobucar said members commit- ted to improving can participate in the intermediate-level plan, which 1-800-332-9161 is 10 percent less expensive than the standard plan. www.healthplus.org Klobucar said the wellness pro- grams typically are 12 percent to 15 percent less expensive than the * The source for data contained in this publication is Quality Compass® 2009 and is used with the permission of the National Committee for Quality Assurance (NCQA). Quality Compass 2009 includes certain CAHPS Blues’ other products. He declined GDWD$Q\GDWDGLVSOD\DQDO\VLVLQWHUSUHWDWLRQRUFRQFOXVLRQ EDVHGRQWKHVHGDWDLVVROHO\WKDWRIWKHDXWKRUVDQG1&4$ VSHFLÀFDOO\GLVFODLPVUHVSRQVLELOLW\IRUDQ\VXFKGLVSOD\DQDO\VLVLQWHUSUHWDWLRQRUFRQFOXVLRQ to provide average premium costs. Quality Compass is a registered trademark of NCQA. CAHPS® is a registered trademark of the Agency for Healthcare Research and Quality (AHRQ). † CAHPS is a registered trademark of the Agency for Healthcare For more information, visit 5HVHDUFKDQG4XDOLW\ $+54  1&4$ LVDSULYDWHQRQSURÀWRUJDQL]DWLRQGHGLFDWHGWRLPSURYLQJKHDOWKFDUHTXDOLW\ ‚‚861HZV1&4$ $PHULFD·V%HVW+HDOWK,QVXUDQFH3ODQV´$PHULFD·V%HVW+HDOWK www.mibcn.com. ,QVXUDQFH3ODQVµLVDWUDGHPDUNRI861HZV :RUOG5HSRUW Jay Greene: (313) 446-0325, [email protected] 20100712-NEWS--0011-NAT-CCI-CD_-- 7/8/2010 5:16 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Amy Lane writes about business issues at the Capitol, telecommunications and utilities. Call (517) 371-5355 or write alane @crain.com

Amy Lane Hungry CPA licensing change sought A bill heading through the Legislature could help keep Michigan- educated accounting graduates in the state and on track for jobs. for IT House Bill 6196, passed unanimously by the state House on June 30 and sent to the Senate, would bring Michigan in line with most other states that allow industry experience to count toward certified Staffing companies hop to fill orders as companies loosen belts public accountant licensure. Currently, candidates for a Michigan BY SHERRI WELCH CPA certificate must complete 150 CRAIN’S DETROIT BUSINESS hours of education, pass an exam and have one year of qualifying experience orporate demand for local in a public accounting firm or specified contract IT employees is on area of a government agency, like an C the rise with a resurgence audit division. in budgets for computers, soft- The bill sponsored by Rep. Bert ware and data center up- Johnson, D-Highland Park, would grades. count experience in industry, such as The new business comes in working in the controller’s office of a response to pent-up demand manufacturing company. from clients who tabled IT Stephen Epstein, chairman of the spending as the economy legislative advisory group for the Troy- dropped. based Michigan Association of Certified This year “we are seeing Public Accountants and retired partner that companies’ IT budgets are from PricewaterhouseCoopers LLP in Detroit, said 49 other jurisdictions that increasing — they are running grant CPA licenses, including a lot of projects because they surrounding states, allow for industry deferred those investments experience. He said the change would over the last couple years,” help Michigan retain accounting said Melisa Bockrath, senior graduates. director and Americas product Epstein said that because of group leader for the IT staffing Michigan’s business and economic brand of Kelly Services Inc. slowdown, public accounting firms Overall, the staffing indus- where needed experience could be try is predicting an 8 percent obtained “are not hiring the number of increase in the number of IT NATHAN SKID/CRAIN’S DETROIT BUSINESS graduates that they have in the past.” positions needed this year, she Executive Vice President Tony Hollamon says Southfield-based Epitec Group plans to add employees by the end He said the CPA association, which said. of the year in response to growing client demand. sought the legislation, wants “to take For Kelly, that’s translated advantage of all the opportunities for to a 16 percent increase in rev- nect a company’s various mandates are coming through our young people in Michigan to stay enue for its IT division, year physical sites to one network, — health care payers have got here in Michigan.” over year, for the first five IT individuals and for IT project managers, to get this stuff done.” He said there is no lessening of months of calendar 2010, “ she said. Troy- requirements to enter the profession, Bockrath said. with a “(If) you’re a COBOL (com- based Ja- and the industry work experience would Several of Kelly’s mon business-oriented lan- wood is back need to be supervised by a CPA. staffing segments are certain guage) programmer,” working on track, she According to data from the Michigan following the economy, with an old programming lan- said. “This Department of Energy, Labor & Economic but IT, in particular, is technical guage, “you’ll have a harder is more of Growth, employment for accountants time finding a job because what we are and auditors is expected to grow by one of its fastest-grow- skill set are 16.9 percent in Michigan from 2008 ing segments, she said. there’s not as much demand used to … through 2018. The 10-year occupational Over the past decade, really in for that as a web or .net devel- significant employment forecast shows many companies have oper.” growth over moved to the Web and For companies like Jawood last year.” employment levels of accountants and demand in Mustazza auditors rising from 38,200 to 44,640. old IT systems don’t sup- Business Process Solutions LLC, Over the The 1,290 average annual openings port their work on the Web, the market. health care reform is also first half of last year, year over in that period include 644 added Bockrath said. ” boosting demand. year, the number of IT job Those clients are investing “Last year because of the openings clients have asked positions and 646 openings to Melisa Bockrath, replace workers. in new infrastructures and economy and a lot of fear on Jawood to fill is up 15 percent Kelly Services Inc. Epstein said CPAs will be needed to data centers to replace their Wall Street, companies were in to 20 percent to meet customer replace retirees from among Michigan’s old systems, she said. the opportunity to move a holding pattern. … We only project demands, Mustazza 17,000 CPAs, “but in addition to that, “IT individuals with a cer- around,” Bockrath said. grew maybe 2 percent,” said said. hopefully there will be some growth of tain technical skill set are real- Kelly is seeing the highest President and CEO Lynn Mus- Those projects are bringing industry and we’ll need CPAs to fill that ly in demand in the market, demand for web developers, tazza. need also” at companies and in public and they are the ones that have network engineers who con- “This year, government See IT, Page 12 accounting firms. 20100712-NEWS--0012-NAT-CCI-CD_-- 7/8/2010 4:42 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS July 12, 2010 Jobs/Economy IT: Staffing companies hop to fill orders as spending increases ■ From Page 11 health care IT systems in line with The Southfield-based Epitec al government sector and is taking new regulations under federal Group also plans to add employees aim at the defense industry, said health care reform. We project adding 150 to 175 additional before the end of the year to keep Executive Vice President Tony Jawood is projecting at least “ up with client demand. Hollamon. $37 million in revenue this year, contract employees before the end of the The IT staffing and services Epitec is projecting revenue of up from $30 million in 2009, Mus- company serves the financial, $35 million this year, up from tazza said. year. health care, manufacturing, insur- $31 million in 2009 and $28 million “We’ve seen an increase so ” ance, retail and government indus- in 2008, CFO Mark Ruma said. much so that we’re moving into a Tony Hollamon, Epitec Group tries, and employs about 390 peo- “Based on our forecast of new facility with triple the space,” ple. staffing opportunities coming she said. Technologies to 19,000 square feet of contract employees. Epitec in December moved into from our base of clients, we project Jawood plans to consolidate its leased space in Southfield, hope- “We plan on at least doubling the communications industry adding 150 to 175 additional con- current headquarters in Troy and fully by the end of August, Mustaz- that within the next 12 to 18 months when it added AT&T Corp. and Valas- tract employees before the end of the Novi site it acquired with its za said. to serve clients both here in Michi- sis Communications as clients. It’s the year,” most of them local, and March acquisition of Felix Health Currently, the company has 110 gan and nationally,” she said. also recently moved into the feder- 10 to 15 recruiters and salesmen, Hollamon said. To accommodate the increase in employees, Epitec, too, is moving, to 11,000 square feet of leased space at 10 Mile and Telegraph from its current location near 10 Mile and Evergreen, Hollamon said. The company is investing $500,000 to retrofit the space and hopes to move about 50 employees into it by Oct. 1, he said. Epitec saw very little attrition among its contract staff in 2007, 2008 and even last year, Hollamon said. “In 2010, it’s a different pro- gram,” he said. “Demand from the customer is now high again, and we’re starting to see some attrition. “We need to have a contingency program to settle this down.” To counter the number of con- tract IT employees hopping to open positions with other staffing firms and clients, Epitec notifies clients about the flight risks for highly skilled IT employees, Ruma said. That allows employers to pay more if they want to retain that employee. “Compensation for IT profes- sionals is on the rise — most specifically for senior technical contract employees with seven- plus years of large-company IT ex- perience,” Ruma said. But the client’s willingness to increase compensation to retain a contract IT employee isn’t the only concern, he said. Another question is, can that employee be offered the opportunity to work on more lead- ing-edge technology? Kelly Services also tries to stay up with the going rate for contract IT employees and to educate its customers on that, as well, Bock- rath said. She agrees with Ruma that in addition to being compensated at the going rate, IT employees also want to work on the latest and greatest technology because that’s what makes them marketable. Kel- ly “is working very hard to make sure we are placing our highly skilled IT workers in assignment after assignment … because they want continued employment,” Bockrath said. “If you can continue to place them in areas of new technologies within very challenging IT environ- ments … they’re more loyal to you.” Kelly has always offered its con- tract employees free training so they can constantly upgrade their skills and attain or upgrade IT cer- tifications, Bockrath said. Now “we’re making it a more ro- bust program, with training (in more areas) than ever before.” Sherri Welch: (313) 446-1694, [email protected] 20100712-NEWS--0013-NAT-CCI-CD_-- 7/8/2010 4:36 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 13

CRAIN'S LIST: LARGEST LOGISTICS COMPANIES Ranked by 2009 revenue

Full-time Company Revenue Revenue employees in Worldwide Address ($000,000) ($000,000) Percent Detroit area Jan. employees Jan. Rank Phone, website Top local executive 2009 2008 change 2010 2010 Business description Con-way Freight John Labrie $2,574.3 $3,015.0 -14.6% 650 20,739 Transportation company 1. 2211 Old Earhart Road, Ann Arbor 48105 president (734) 994-6600; www.con-way.com/freight

Universal Truckload Services Inc. Donald Cochran 503.2 759.5 -33.7 NA NA Transportation and shipping services, truck brokerage 2. 11355 Stephens Road, Warren 48089 CEO and president (586) 920-0100; www.goutsi.com

England Logistics-SCE Jim Monkmeyer 201.2 146.7 37.2 51 237 Supply chain engineering and logistics management 3. 26000 Northline Commerce Drive, Suite 700, Taylor 48180 managing director (734) 946-3000; www.englandlogistics.com/sce

United Road Services Inc. Michael Wysocki 198.0 247.4 -20.0 281 1,200 Vehicle logistics for vehicle manufacturers, remarketers, auctions, 4. 10701 Middlebelt Road, Romulus 48174 CEO dealers and internet vehicle transactions on a national basis (734) 947-7900; unitedroad.com

Logistics Insight Corp. H.E. Wolfe 180.0 250.0 -28.0 876 1,504 Logistics and related services such as transportation, ground 5. 11355 Stephens Road, Warren 48089 president expedite, air forwarding, sequencing, cross-docks, returnable (888) 334-5462; www.4linc.com container management, home delivery, subassembly and more

Active Aero Group-USA Jet Airlines Chris Healy, president and CEO 114.0 131.0 -13.0 198 258 Air freight and ground expediting, private and public charters 6. 2068 E St., Belleville 48111 Brian Hermelin, chairman (734) 547-7200; www.activeaero.com; www.usajetairlines.com

Rush Trucking Corp. Andra Rush 80.0 90.0 -11.1 198 907 Motor carrier, logistics management 7. 35160 E. Michigan Ave., Wayne 48184 president (734) 641-1700; www.rushtrucking.com

KC Integrated Services LLC Kenyon Calender 79.0 79.0 0.0 330 NA Logistics, freight management, warehousing, parts sequencing, 8. 25840 Sherwood, Warren 48091 CEO subassembly and more (800) 476-6317; www.kcintegrated.com

James Group International Inc. John James 53.0 69.1 -23.4 131 NA Supply chain management, material management, export, import, 9. 4335 W. Fort St., Detroit 48209 chairman and CEO and more (313) 841-0070; www.jamesgroupintl.com

Bay Logistics Inc. Richard Johnston 36.0 38.0 -5.3 219 230 Warehousing, transportation and logistics services including 10. 36555 Ecorse Road, Romulus 48174 owner and president packaging, repack, quality inspections, kitting, sequencing, light (734) 729-8441; www.baylogistics.com assembly and sorting

Load One Transportation & Logistics John Elliott 32.5 29.0 12.1 204 222 Air charter, ground expedite, truckload, partial truckload, flatbed, 11. 13221 Inkster, Taylor 48180 president drop-deck flats, curtainside flatbeds, truckload and expedite (734) 947-9440; www.load1.com brokerage

Evans Distribution Systems John A. Evans, president 25.0 35.0 -28.6 120 250 Warehousing and distribution, transportation, contract packaging, 12. 18765 Seaway Drive, Melvindale 48122 John W. Evans, CEO quality inspection and other logistics-related services (313) 388-3200; www.evansdist.com

ARC Supply Chain Solutions Chris Kepp 7.2 NA NA 12 12 Transportation management systems, dynamic reporting, modal 13. 13221 Inkster Road, Taylor 48180 vice president optimization, financial services and warehouse operations (877) 272-3523; www.arc-scs.com

AIT Worldwide Logistics Lorri Fairchild 6.8 7.6 -11.1 30 NA Global freight transportation and logistics 14. 30255 Beverly Road, Suite 100, Romulus 48174 Detroit franchise owner (734) 326-9140; www.aitworldwide.com

This list of logistics companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. CenTra Inc., CEVA Logistics, National Logistics Management, the REI Group, Beltmann Integrated Logistics Inc. and the Outbound Group, which Crain's believes would qualify for this list, did not provide 2009 figures and a reliable estimate could not be made. LIST RESEARCHED BY ANNE MARKS TowerBrook seeks Michigan deals Crain’s wins awards from

BY TOM HENDERSON that Janitz and Schiano had ended nies. They said they will seek equi- CRAIN’S DETROIT BUSINESS their relationship with Credit Su- ty investments of between $50 mil- biz publications alliance isse but would retain their Colum- lion and $300 million in companies John Janitz and Dominick Schi- bia Center office in Troy to work with between $250 million and Crain’s Detroit Business won Judges cited the writing as ano, two former executives at the with it instead. The two said they $3 billion in revenue. several journalism awards at “easy and comfortable, but Southfield private equity and turn- would do their deal sourcing — and Credit Suisse declined to com- the annual conference of the Al- packed with news and analysis. around management firm of Questor their share of the investing — un- ment for this story. Schiano said liance of Area Business Publica- His blog posts read like front- Management Co LLC, are part of a der the name Evergreen Capital Part- that in the current regulatory cli- tions. page news delivered with con- new financing pipeline for equity ners LLC. mate for large banks, Credit Suisse Assistant News Editor Jeff text by a friend over a cup of deals. Robin Esterson, a managing di- decided not to raise a new fund to Johnston took top honors, best coffee. More traditional jour- The two have been engaged by rector at TowerBrook, said he’s up- support further private equity special section design, for his nalists could learn a lot from New York private equity firm beat about the pair’s experience. deals. work on the 2009 20 in their 20s his style.” TowerBrook Capital Partners LP to “We are particularly excited about As for the move to TowerBrook, section that highlighted the ac- Reporters Jay Greene and source deals in Michigan and the their industrial sector expertise as he said, “There could be a lot of op- complishments of 20 young De- Amy Lane and Web Editor Chris- Midwest. The two will provide we feel there will be a number of in- portunities in the next 12 to 18 troit businesspeople. tine Lasek won second place, some their own capital on each teresting opportunities in that months, and we want to be associat- Multimedia reporter Nathan best industry-specific e- deal, as well as provide manage- space.” ed with dry powder,” referring to Skid and former Crain’s Web newsletter, for their work on ment expertise to the portfolio com- “Our plate is surprisingly full,” available cash to invest. Designer Ai-Ting Huang won sec- Health Care Extra, which is de- panies. said Schiano about current deal “John ran Questor when I was ond place for a multimedia Web livered on the first and third TowerBrook has about $5 billion prospects. “We’re not far down the there, and he did a great job,” said presentation of the same fea- Mondays of each month to pro- under management, including road on anything, but we’re at least Garrett Kanehann, a partner at ture. fessionals in health care, hu- $2.8 billion in its newest fund. getting smarter on about eight BlackEagle Partners LLC, a Bloom- Reporter Chad Halcom won man resources and employee From 2007 until early this year, things, and we’ve had one visit with field Hills-based private equity second place, best feature, for a benefits. Janitz was chairman of Southfield- management on an aerospace deal. firm. “They are seasoned investors Nov. 30 story on litigation in- There were 555 entries in the based Global Industrial Partners, a And we’re looking at a few in the with the right combination of in- volving Park West Gallery in competition, which was judged unit of Credit Suisse DLJ Merchant heavy-truck area.” vestment skills and operating back- Southfield and its cruise-based by faculty from the University of Banking, and Schiano was vice Though Janitz and Schiano have ground. They’re not just focused on art sales. Missouri. chairman. a history of auto deals, and a histo- finance. They can view an invest- Reporter Bill Shea won sec- AABP is a trade organization From 2003 to 2007, Janitz was co- ry of turnarounds, they said they ment not just from an income state- ond place for his blog, “For Im- of 70 regional and local busi- managing principal at Questor, won’t be targeting either auto-relat- ment and cash flow, but how a busi- mediate Release,” that covers a ness publications in the United and Schiano was a managing direc- ed firms or troubled companies, but ness operates.” wide range of topics that in- States, Canada and Australia tor. will look instead for manufactur- Tom Henderson: (313) 446-0337, clude sports, media, marketing that reach 1.2 million business In May, TowerBrook announced ing, logistics and mining compa- [email protected] and transportation. professionals. 20100712-NEWS--0014-NAT-CCI-CD_-- 7/8/2010 3:20 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS July 12, 2010

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

CareerTransition Name: Barbara Bloom, 50. writing as a specialty/area of expertise. Education: Bachelor’s degree in art his- When I asked the president of the compa- tory with distinction from the University ny if there was a market for such a ser- of Michigan; certificate in manuscript vice, she asked me how quickly I could de- editing from the University of Chicago. velop a program, and ‘Writing for Last career: Director of foundation giv- Business,’ my customized writing pro- ing at Childrens Hospital Los Angeles, gram, was born.” where she led and managed a team of Obstacles overcome: “Many people have grant writers, raising $90 million in her impressive titles but not the writing five-year tenure. skills to match. Getting professionals — New career: Founder and principal of business execs, lawyers, engineers, peo- Bloom Ink, providing tailored writing in- ple for whom English is not a first lan- struction and coaching for professionals, Barbara Bloom guage — to recognize they need help with as well as editorial and publication ser- Former career: their writing has been the biggest chal- vices for established and aspiring writers. Director of lenge. Once they understand good writ- Why she decided to change careers: “With foundation giving ing is not only a necessity but a lifelong a background in trade publishing — hav- at a hospital. survival skill, they’re motivated to im- ing worked for Simon & Schuster, Wayne New career: prove. Results can often be immediate State University Press, and managed two Founder of a and long-lasting.” bookstores, including the bookstore at the company that Advice for others: “Don’t underestimate Norton Simon Museum of Art — I wanted to teaches and the value of good, clear writing. Once get back to the world of writing and edit- coaches business you harness it, it gives you one more tool professionals and ing, as my own boss, creating my own op- to use in your career and throughout aspiring writers. portunities. I also wanted to create some- your life.” thing through which others could strengthen their — Shawn Wright writing skills and better their opportunities.” How she made the transition: “While freelancing If you have made a similar change in career, or and writing biographical profiles for an executive know someone who has made an interesting career coaching company, I realized the coaches them- transition, contact Andy Chapelle, managing editor selves were not strong writers and didn’t offer at Crain’s Detroit Business at [email protected]

EMPLOYMENT CALENDAR U of Phoenix hosts career event a.m.-noon at the Oakland County seeking jobs. The Thursday event is Executive Office Building Confer- open to those in traditional and The University of Phoenix is host- ence Center, Building 41 West, 2100 nontraditional IT roles, such as en- ing a “Reinvent Your Future” ca- Pontiac Lake Road, Waterford gineers, CAD/CAM designers, 800-292-3831 reer event Thursday at the MGM Township. The cost is $30. Prereg- marketing, graphics and sales. indiantrails.com Grand Hotel, 1777 Third St., Detroit. istration is required. Click on the Participants’ résumés will be The free event has workshops on workshop at www.oakgov.com forwarded to recruiters in atten- preparing for an interview and ré- /peds/calendar, or call (248) 858- dance. Résumés can be e-mailed sumé writing, along with a speech 0783. ahead of time. from author Stedman Graham. Details or to send a résumé, go to More than 40 local companies are www.detroitnet.org, call (248) 840- expected to be at the event. Recruiting party for IT 2103, or e-mail detroitnet@ Workshops begin at 10 a.m.; the ONE HU Detroitnet.org is hosting a free gmail.com. G ND IN R keynote speech is at 10:30 a.m.; T E A D Pink Slip Party where recruiters, The event runs 5-9 p.m. at the R Y B E workshops continue until 3 p.m. E A HR professionals and hiring man- Post Bar, 42875 Grand River Ave, L R

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July 12, 2010 CRAIN’S DETROIT BUSINESS Page 15

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Page 16 CRAIN’S DETROIT BUSINESS July 12, 2010

BUSINESS DIARY CALENDAR ACQUISITIONS Carhartt, Dearborn, has selected Team Detroit, Dearborn, for an integrated TUESDAY Lakeshore Engineering Services Inc., brand campaign. JULY 13 ONFERENCE TARGETS LEVERAGING DIVERSITY FOR BIZ SUCCESS Detroit, has acquired TolTest Inc., C Maumee, Ohio, creating Lakeshore The Detroit Regional Chamber, the firm. Shirley Davis, head of diversity EXPANSIONS Orgpro 2010. 6 a.m.-midnight July TolTest Corp. 13; 6 a.m.-4:15 p.m. July 14. Michigan National Association of African and inclusion for the Society for Auto-Lab Franchise Management Society of Association Executives, Americans in Human Resources Human Resource Management, will CALL FOR NOMINATIONS Corp., Farmington Hills, DBA Auto- others. For organization profession- and other groups will sponsor be the luncheon speaker. Lab Complete Car Care Centers, has “Leveraging Diversity for Business Michigan Women’s Foundation is ac- als in the not-for-profit sector. With: The conference will address the opened a new store at 10655 Coloma cepting nominations for Women of Phil Power, founder, The Center for Success: Defining Diversity in the issues of hiring veterans and Road, Rancho Cordova, Calif. Achievement and Courage Awards and Michigan; others. Eagle Crest Re- 21st Century” from 7:30 a.m. to leveraging diversity to gain sort, Ypsilanti. Full package: $550 4:30 p.m. July 21 at the MGM The Trillium Award for Lifetime Santanna Energy Services, Austin, productivity. It will include a panel member, $650 nonmember; other Grand Hotel, 1777 Third St., Achievement. Both honor women who Texas, an energy marketing company of chief diversity officers from large have been role models in communities has opened an office at 2000 Town Cen- packages/pricing available. Contact: Detroit. ter, Suite 1900, Southfield. Website: (517) 332-6723; e-mail: tilma@ manufacturing, health care and and at work. The Trillium Award appli- Speakers are to include Andrés nonprofit agencies discussing best cation due date is July 31. The Women www.santannaenergyservices.com. msae.org; website: www.orgpro.info. Tapia, chief diversity officer and of Achievement and Courage Award Productions Plus-The Talent Shop, emerging workforce solutions practices. due date is Aug. 15. Telephone: (313) Bingham Farms, a talent-manage- Working Effectively With Japanese. leader at Lincolnshire, Ill.-based The conference costs $99. For 640-0128, ext. 204; e-mail: lgandelot ment agency, has expanded its head- 8:30 a.m.-4 p.m. Covering the intrica- Hewitt Associates; and Steve more information, contact Cheryl @miwf.org; website:www.miwf.org. quarters to accommodate growth in cies and etiquettes of Japanese busi- Robbins, president of S.L. Robbins Shewach at (313) 557-8778, e-mail the Michigan film industry and to ness and society. With: Makiko Masu- & Associates, a Grand Rapids- [email protected] or CONTRACTS meet the growing demand for profes- da, Detroit representative, Japan based global diversity consulting visit www.hragd.org. sional talent in other areas of the tal- Intercultural Consulting. St. John’s Duffey Petrosky, Farmington Hills, a ent-management business. Website: Golf and Conference, Plymouth. $275 marketing and advertising agency, www.productions-plus.com. per person. Contact: (419) 781-5383; e- has been named agency of record for mail: seminars@japanintercultural. Lansing-based Two Men and a Truck. NEW PRODUCTS com; website: www.japanintercultur Azure Dynamics Corp., Oak Park, sold al.com. five Balance Hybrid Electric delivery Nonprofit Enterprise at Work, Ann Ar- MARKET PLACE vans to Domestic Uniform Rental, Farm- bor, has launched its new board as- ington Hills; three Balance Hybrid Elec- sessment tool, Board360. Telephone: Toronto Stock Exchange. 7-9 a.m. As- tric shuttle buses to the city of Paducah, (734) 998-0160. Website: www.new.org. sociation for Corporate Growth De- troit Chapter. A look at the Toronto ANNOUNCEMENTS & BUSINESS & Ky.; one bus to the city of Charlevoix; Armaly Brands Co., Walled Lake, has Stock Exchange as a source of capital one bus to Bay Area Rural Transit, Ash- expanded distribution of the Estracell SERVICES INVESTMENTS for midlevel businesses in Southeast land, Wis.; two buses to the city of Little- Wedge Edge sponge to retailers. Web- ton, Colo.; one bus to the city of Tarry- Michigan. With a panel discussion HEALTH & FITNESS BUSINESS OPPORTUNITIES site: www.armalybrands.com. featuring members of the Toronto town, N.Y.; one bus to the city of Stock Exchange. Oakland Hills Coun- Hastings, N.Y.; and one cube van to the NEW SERVICES E-Commerce Internet Wine Site University of British Columbia. try Club, Birmingham. $25 ACG For Sale Your Child Inc., Clarkston, a coalition of members, $45 guests. Contact: (877) Get active and interactive at Alternative Fuel Technologies Inc., education groups, civic leaders and 894-2754; e-mail: acgdetroit@ Perfect opportunity for wine expert and Redford Township, has built and de- family organizations, has launched a tc3net.com; website:www.acg.org/ entrepenuer to own a cashflow positive livered 12 DME feed pumps to Shang- detroit. hai Diesel Engine Co. new Web engagement tool for teens in business with sales of $1M. Wine is the Southeast Michigan: www.itsmilife. fastest growing catagory on the Internet Amerigon Inc., Northville, is providing aHealthierMichigan.org com. with total Internet sales approaching its Climate Control Seat system to be of- The Michigan Solid-State Lighting As- WEDNESDAY fered on two models of 2010 Ford F-250 $800M. Complete turnkey operation sociation, Troy, has launched a new LEGAL SERVICES trucks. JULY 14 with all the necessary "backroom" website: www.mssla.org. software and equipment. Website has Energy Conversion Devices Inc., NACW Speed Networking. 11:30 a.m.- Acromag, Wixom, has released a new Antone, Casagrande & Adwers, P.C. Rochester Hills, through its wholly 1 p.m. National Association of Ca- established Internet "traction" and a website at www.acromag.com. owned subsidiary United Solar reer Women Metro Detroit Chapter. AV-rated Immigration Law Firm large customer base. An initial capital Ovonic, Rochester Hills, and Contour- Evangelical Homes of Michigan, Ann Iroquois Club, Bloomfield Hills. $22 Firm’s Principal is an Adjunct Immigration Law investment of $50K is required. Send all Global, New York, will co-develop Arbor, has launched a new service members, $27 nonmembers. Contact: Professor at MSU inquires to [email protected] rooftop solar systems for buildings in called LifeChoices, a continuing care (248) 505-1704; e-mail: cwinans@ Farmington Hills, MI 48334 Italy owned and operated by Coca- at home program, being offered hwwrealtors.com; website: www. Phone (248) 406-4100, www.antone.com through LifeChoice Solutions, a whol- Cola Hellenic Bottling Co. S.A. nacwonline.org/metro-detroit. BUSINESSES FOR SALE R.L. Polk & Co., Southfield, has been ly owned subsidiary of Evangelical selected by the Automotive Distribu- Homes of Michigan. Website: REQUEST FOR PROPOSALS tion Network, Germantown, Tenn., the www.evangelicalhomes.org. COMING EVENTS — Business for Sale — umbrella organization for Parts Plus, Breakfast & Business. 7:30-9:30 a.m. Request for Qualifications Established Grand Blanc gourmet market Independent Auto Parts of America, STARTUPS July 21. Sterling Heights Regional grossing $3.7 million with high profit The Downtown Development Auto Pride and CMB Network, as its Ideal Calibrations LLC, in partnership Chamber of Commerce and Indus- margin; family operated for over 20 years; partner to provide light-, medium- with Ideal Gases Inc., a gas-detector try; Anchor Bay Chamber of Com- Authority of the City of Southfield, family collects over $400,000 income / and heavy-duty vehicles in operation rental, repair and calibration company merce. A networking event. La Saj also known as the Cornerstone benefits; beautiful 18,000 sq. ft. building data to its members. serving the confined-space entry, chem- Lebanese Bistro, Sterling Heights. Development Authority (CDA) is with many new fixtures; walk-in humidor Friendly Automotive Group, Clinton ical emergency response and safety Registration deadline July 19. Free issuing a Request for Qualifications and cocktail/wine bar; SDD, SDM, Class C Township, has selected TMV Group, management markets, at 14056 Fort St., for SHRCCI and ABCC members, $20 for Public/Media Relations Consulting licenses; full-service kitchen; deli, bakery, nonmembers. Contact: (586) 731-5400 Madison Heights, to handle its mar- Southgate. Telephone: (734) 956-0539. Services beginning September 1, produce, meat, etc.; highest volume ext. 20; e-mail: [email protected]; 2010. The CDA was formed for the keting. Website: www.idealcalibrations.com. independent Godiva retailer in state; great website: www.shrcci.com. express purpose to halt property Preh Inc., Novi, is supplying the cli- Option2Air LLC, a group-travel compa- reputation; asking $3.9 million plus value deterioration, eliminate the mate control system for 2011 Ford F- ny, at 101 W. Big Beaver Road in Troy. inventory. 250 and F-350 pickup trucks. Website: www.option2air.com. Northern Border Security Confer- causes of deterioration, and to ence. 8 a.m.-5 p.m. July 27-28. Michi- promote economic growth. Call (248) 888-1466 gan Security Network. With officials Please refer to the City of from the U.S. Department of Home- Southfield website at land Security and industry. Hyatt Call Us For Personalized www.cityof southfield.com/dda Regency, Dearborn. $246; $449 table- Service: (313) 446-6068 top exhibitors, $5,000 platinum spon- to review the proposal and FAX: (313) 446-1757 sor, $2,500 gold sponsor, $1,200 silver requirements. sponsor, $299 poster session display. E-MAIL: [email protected] Contact: (248) 353-0735; e-mail: INTERNET: Call or email today for information www.crainsdetroit.com/section/classifieds [email protected]; website: www. on a custom advertising plan! michigansecuritynetwork.com. See [email protected] Crainsdetroit.com/Section/Classifieds Detroit Black Expo. 6-9 p.m. July 30; 313.446.6068 for more classified advertisements 10 a.m.-8 p.m. July 31; 10 a.m.-5 p.m. Aug 1. University of Detroit Mercy; Michigan Black Chamber of Com- merce; others. A weekend of econom- ic, networking and entrepreneur- ship empowerment. University of Detroit Mercy, Detroit. Free. Con- tact: (313) 638-2052; e-mail: [email protected]; website: www.detroitblackexpo. com.

Five Keys to Successful Financial Plan- ning for Small Business. 8 a.m.-noon. Aug. 4. Michigan Small Business and Technology Development Center. De- signed to help strengthen financial lit- eracy and improve the ability to ac- cess capital. Schoolcraft College, Livonia. $25. Contact: (734) 462-4438; e- mail: [email protected]; web- site: www.misbtdc.net. 20100712-NEWS--0017-NAT-CCI-CD_-- 7/9/2010 6:11 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 17 Little-used bond money eyed for brownfields LANSING — After it work group that’s been munities, and they point to a re- 2002 bond program, assess where spent at sites where the state spent hardly any of a $1 meeting on brownfield cent U.S. Environmental Protection problems exist and why there isn’t takes responsibility for the billion environmental Capitol reforms and now fund- Agency report that showed Michi- greater utilization, and “make rec- cleanup, to ensure “money is be- bond passed by voters in Briefings ing. “I don’t think any- gan with $7 billion in wastewater ommendations ing spent on projects that are at- 2002 to help local govern- body’s going to get every- treatment, stormwater manage- in short order.” tracting jobs and economic devel- ments upgrade sewer thing they want out of ment and nonpoint source pollu- He said the opment,” Roberts said. systems, the state may this. tion control needs. chamber is will- DNRE press secretary Robert use some of that money “My hope is to get rea- “We’re working to encourage ing to look at us- McCann said that if $275 million to replenish its dwin- sonable compromise so the state to invest greater money ing some of the were used, the DNRE would try to dling brownfield that we can improve the in our sewer infrastructure,” said bond money to make it last for five years. cleanup program. system. I’m not trying to Keith Ledbetter, director of leg- fund brownfield The DNRE would not take on A host of issues are be- redo the peace accords islative affairs at the Michigan Infra- cleanup, but at many new cleanups but could at ing negotiated. here.” structure and Transportation Associa- an amount “sig- least “continue work on existing They include money Amy Lane The state is looking to tion. nificantly less” projects, which is critical,” Mc- — the Granholm admin- tap the 2002 bond in tan- Doug Roberts Jr., director of en- Roberts than the $275 Cann said. “It’s not our ideal solu- istration has suggested $275 mil- dem with brownfield program re- vironmental and energy policy at million that’s been floated. tion, but it’ll get us through for at lion for brownfields — and form bills. the Michigan Chamber of Commerce, The chamber wants brownfield least a few more years.” changes to the state’s revolving The 2002 proposal dedicated 90 said an advisory council is being program reforms, and reporting Amy Lane: (517) 371-5355, loan program that was the main percent of bond proceeds to an ex- discussed that would examine the of how state bond dollars are [email protected] target of the 2002 bond. isting revolving fund that provides But some say the state shouldn’t low-interest loans to municipali- tap the 2002 bonding capacity at all ties and authorities for sewer pol- for a brownfield cleanup program lution control projects. that has used other bond money The remaining 10 percent went REAL ESTATE and is expected to run out of most to a new fund to provide low-inter- of its funds by year’s end. est loans for nonpoint pollution INDUSTRIAL PROPERTY AUCTIONS “What we have is an overre- control projects. liance on bond money to run this Out of the $1 billion in bonding program,” said James Clift, policy authorized, just $145.6 million has Auction of Golf Course and Banquet/Club House director at the Michigan Environ- been issued, leaving more than Novi, Michigan Oakland County’s Growth Community mental Council. $854.3 million available. 531,000 SQ. FT. AVAILABLE On-line Auction Novi, MI Property He said the state instead needs Some say revenue-pressed mu- Easily Accessible  Low Rates  Rail  On-site Mgmt Minimum Bid - $600,000 to address its basic lack of revenue nicipalities have been reluctant to Exterior Storage  www.waretechindustrialpark.com to support environmental protec- take on the added debt of repaying CATELLUS GROUP, LLC 810-695-7700 tion programs. even low-interest loans from the For example, he said Minnesota state revolving fund. Pontiac Warehouse for Lease in 2008 approved a sales tax in- Others say state interest rates Best Deal in Town! crease of three-eighths of a cent may not be competitive or loan ap- dedicated to environmental pro- plication requirements are oner- tection. If Michigan acted similar- ous — criticisms the Michigan De- ly, it could increase brownfield partment of Natural Resources and funding as well as service debt Environment disputes. • Bank-Owned. 14,000+/- SF Clubhouse, 30 +/- acres of land, Class C Liquor License • 9-Hole Executive • Warehousing, Machine/Die Storage, from previous environmental Chris Hackbarth, legislative as- Manufacturing Golf Course with Bentgrass Fairways • 2007 Bank Appraisal Value - $2,100,000 • 750 +/- Housing Units bond issues. sociate with the Michigan Municipal • M/59, Widetrack, and Woodward Area in Four Fully-Developed Subdivisions Surround Golf Course • Novi, Michigan Median Household Income - “There are a multitude of inter- League, said the revolving fund • 5,000 to 200,000 Sq. Ft Available $81,793 (2009 data) • Seller Financing Available to Qualified Buyers (20% down required) est groups at the table,” said Patri- also has limited scope and “is cum- with Offices, Short or Long Term On Line Auction Date: August 26, 2010 cia Birkholz, R-Saugatuck Town- bersome.” Leases • 8 Interior Truck Wells, 16 Ft. Ceiling www.BratemanAuction.com/NoviGolf ship, Senate Natural Resources He and others want to look at Heights, Sprinklers, Heated, Buss Duct, Contact: Jonathan Brateman Properties (248) 477-5000 and Environmental Affairs Com- changes to the revolving fund to and Air Lines. 248-496-3405 mittee chairman, who convened a get more money flowing to com- OFFICE SPACE WAREHOUSE STORAGE SPACE AVAILABLE NOW “Special” DOWNTOWN Warehouse For Sale 3300 E. Jefferson, Detroit (behind Chase Bank) Ideal for Owner/User 27,000 SF. Commercial/Warehouse 4,000 to 100,000 sq. ft. $1.00 PSF, NNN, First Year Call: Chris Monsour 248-948-0107 ANKRUPTCIES Also 10,000 & 25,000 sq. ft. B Free Standing Bldgs w/truckwells. Call Us For Personalized The following businesses filed for untary Chapter 7. Assets and liabili- Service: (313) 446-6068 Chapter 7 or 11 protection in U.S. ties not available. 1 Mile from Metro Airport Bankruptcy Court in Detroit July 2-8. CLOSING TIMES: Monday 3 p.m., Patio Properties Inc., 217 Touraine, Under Chapter 11, a company files for Price Reduced from $1,450,000 one week prior to publication date. Grosse Pointe Farms, voluntary Chap- Please call us for holiday closing times. reorganization. Chapter 7 involves to- REA CONSTRUCTION NOW $1,195,000 ter 11. Assets and liabilities not avail- tal liquidation. • Super Oakland County address FAX: (313) 446-1757 able. (734) 946-8730 E-MAIL: [email protected] The Millgrow Group Inc., 418 W. Tor- • 10,200 sf -- 6,180 sf leased!! • 4,020 sf leased month to month INTERNET: rington Drive, Canton Township, vol- — Shawn Wright Also Heavy Industrial • Ideal for an owner/user to take the 4,020 sf www.crainsdetroit.com/section/classifieds Land Available (suite has overhead door and some storage space) Confidential Reply Boxes Available • Good Parking • Easy access to I-75 PAYMENT: All classified ads must be • 1800 Crooks Road, north of Maple Road prepaid. Checks, money order or www.reaconstruction.net • Zoned Light Industrial Crain’s credit approval accepted. Self-Employed? For additional information contact: Credit cards accepted. Jonathan Brateman 248.477.5000 See or e-mail Crainsdetroit.com/Section/Classifieds OFFICE SPACE Affordable Insurance [email protected] for more classified advertisements Flint Township Office Building

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Page 18 CRAIN’S DETROIT BUSINESS July 12, 2010 LeBron who? Gilbert’s Detroit, Ohio projects march on bling for Cleveland, Cincinnati, “cowardly betrayal” in a letter the maximum allowed under NBA Investments in Columbus and Toledo. posted on the Cavaliers website. salary rules, and more than any Gilbert’s Detroit-based Rock Ven- The events of Thursday night other team could offer. tures LLC holding company in April provoked a firestorm of criticism Persuading marquee players to casinos, Cavs bought a 20-acre site in Cincinnati at James, Gilbert and ESPN. sign with Cleveland, which was a for $35 million that will become A Cavaliers spokesman on Fri- lower-tier NBA franchise before home to a $300 million-$400 million day said Gilbert wouldn’t be avail- drafting James in 2003 out of near- and Quicken casino and entertainment complex able for comment. by Akron St. Vincent-St. Mary High BY BILL SHEA by the end of 2012. He’s also build- Meanwhile, the dust will settle School, will be a more difficult task CRAIN’S DETROIT BUSINESS ing a $600 million casino in down- and life will go on. without the two-time league MVP. Gilbert James town Cleveland. There will be new faces helping Keeping the team in contention Now that Dan Gilbert’s highest- Another company is building Gilbert navigate the post-LeBron is critical to revenue, cash flow paid employee, LeBron James, has to relocate its 50 employees from casinos in Toledo and Columbus. reality because of a housecleaning and getting some return on quit to work elsewhere — in a na- Livonia to the same location at Gilbert also owns the Lake Erie that preceded James’ departure. Gilbert’s investment in it. tionally televised decision, no less Quicken this summer. Monsters of the American Hockey After failing to land Michigan Gilbert was lead investor in the — the Detroit businessman is free He’s also one of the lead in- League. They’re co-tenants with State University men’s basketball $375 million purchase of the Cava- to look around, take stock and con- vestors and organizers of the the Cavaliers at Quicken Loans coach Tom Izzo after a brief flirta- liers in 2005 from Cleveland busi- centrate on his other ventures. $125 million M1 Rail project to Arena in downtown Cleveland. tion last month, Gilbert hired for- nessman Gordon Gund. The team Gilbert, founder of the Livonia- bring a light rail loop to downtown Gilbert was one of the losers of mer New Jersey Nets and New Or- was most recently valued at based Quicken Loans/Rock Financial Detroit along Woodward Avenue. the LeBron James Free Agency leans Hornets coach Byron Scott to $476 million, fourth in the 30-team empire, continues to have irons in That project, which is linked to a Sweepstakes on Thursday. run the Cavaliers. He also promot- NBA, by Forbes.com. the fire in metro Detroit, where he companion effort by the city to ex- James, 25, orchestrated a where- ed Chris Grant to be the team’s Sports analysts predict the fran- still lives. tend the line to Eight Mile Road, am-I-going free-agency drama that general manager and top deal chise value will plummet, but Quicken, his primary revenue remains in the planning stages. culminated in an hourlong ESPN maker. Gilbert has vowed to spend consid- generator, is moving its headquar- Ohio, however, is where he’s special in which he revealed that They’ll have about $12 million in erable sums to keep the team in ters and 1,700 employees to down- making his biggest investments. he will leave Gilbert’s Cleveland salary cap space they can use to competition for its first NBA title. town Detroit this summer, proba- Gilbert, who employs about Cavaliers after seven years to in- sign free agents, although that re- James led the team to the finals in bly in August. 2,000 people in Ohio, is spending stead play for less money with his quires some personnel moves yet 2007, but the Cavaliers were swept Gilbert also is owner of Fathead nearly $1 billion to build two casi- friends on the Miami Heat. to be made. in four games by San Antonio. LLC, the vinyl sports and entertain- nos in that state. Voters there in Gilbert called James’ decision James rejected Cleveland’s offer Bill Shea: (313) 446-1626, ment wall graphics firm, and plans November approved casino gam- and his method of announcing it a of $125 million over six seasons — [email protected] Does your team need to kick up BRIEFLY S3 Entertainment to manage film months and have a pre-existing that records up to 45 hours of their heels? medical condition. AM/FM and Internet-only radio work at Allen Park Studio Center The state is to make a decision streams for playback. The device We’ll show them how. The city of Allen Park has hired on the pool in the next 30 days. It is connects to a computer via a USB Ferndale-based S3 Entertainment expected to begin enrollment in port, and to a vehicle through a 12- innovative Bringing teams together through Group to manage film operations at August. volt socket, broadcasting over an events, entertainment, meetings and more. the city-owned Allen Park Studio — Jay Greene FM channel or through the audio Center. system’s auxiliary input. The Car- Simplify your planning through our As part of the deal, S3 will bring men stores up to 45 hours of music one-stop service! Henry Baskin re-elected as six new businesses to the 800,000- and shows. square-foot campus in Allen Park, chairman of OU board Stored media can also be loaded said Mayor Gary Burtka. onto the Carmen via a Macintosh the Henry Baskin, founder and princi- or PC. He declined to name the firms, pal of The Baskin Law Firm PC in cultural but said he was shown written Myine is the maker of Livio Birmingham, has been re-elected Radio, a standalone Internet radio concierge commitments from the compa- to a two-year term as chairman of nies. device, and the Livio iPhone app. a program of the cultural alliance Oakland University’s board of The company reported $1.1 mil- of southeastern michigan, S3 also will seek films, produc- trustees. He’s been on the board a 501(c)(3) organization tions and other work for the cen- lion in revenue in 2009, and CEO since 1996. Jake Sigal has said he expects ter. — Shawn Wright S3 managing partner Jeff roughly $6 million in sales this www.theculturalconcierge.org Spilman confirmed the deal, but year. also declined to name the busi- Borders enters eBook market, The company recently received 248.766.5599 [email protected] nesses moving to the site. hopes to hold 17% share in a year its first round of venture capital He said S3 will have a presence funding from Farmington Hills- in Allen Park and will use its Los Ann Arbor-based Borders Group based Beringea LLC. Angeles office to recruit films and Inc. (NYSE: BGP) launched its Earlier this year, Sigal was productions. eBook store with a goal of taking named one of Crain’s 2010 class of “We want to make this work for over 17 percent of the digital mar- 20 in their 20s. (9,@6<;/,790+, the region and to create jobs,” he ket by this time next year. — Nancy Kaffer said. The bookstore, at http:// Southfield-based Redico LLC will ebooks.borders.com, is part of a co- School-based health program 6-;/,7(*2& continue to manage the real estate branding deal with the e-reading and market the 104 buildable acres service Kobo and includes 1.5 mil- accepting grant applications adjacent to the buildings. The stu- lion titles in several formats. Some $50 million in federal dio buildings are 58 percent occu- The titles will be sold in formats grants will be offered to about 1,000 pied. that can be used by digital reading schools, including those in Michi- — Daniel Duggan devices, but also in .pdf format. gan, to purchase new equipment The company also is introduc- for student health centers through Priority Health, Physicians ing applications that are compati- the U.S. Department of Health and Hu- ble with BlackBerry and Android man Services. Health bid to run high-risk pool smart phones. “Investing early in our chil- — Daniel Duggan With the state of Michigan ex- dren’s health will help them lead pecting to receive $141 million in long, productive lives,” said Sen. federal funds over the next three Myine Electronics develops Debbie Stabenow, D-Mich., who in- (WSH`LYZULLKLK years to subsidize its high-risk Internet radio for cars cluded the provision as part of the 0UX\PYLVUSPUL medical insurance pool, Priority federal health care reform bill, the Health and Physicians Health Plan of Ferndale-based Myine Electronics Affordable Care Act. Mid-Michigan have submitted bids LLC has launched a new product: The Health Resources and Ser- to the state to manage the tempo- the Carmen portable Internet ra- vices Administration, an HHS rary pool. MARKETING ‡ PR ‡ DESIGN ‡ NEW MEDIA dio, designed for cars, according to agency, will administer the grants. identitypr.com/careers People eligible for coverage in- a statement. For more information, visit clude those under age 65 who have The Carmen is a portable device www.grants.gov. not had insurance the past six and accompanying client software — Jay Greene 20100712-NEWS--0019-NAT-CCI-CD_-- 7/9/2010 6:12 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 19

ENTREPRENEUR AWARDS McKinsey consultants take over Do you know an entrepreneur who deserves applause? Crain’s Detroit Business will publish in its Nov. 15 issue a “Salute to Entrepreneurship.” These awards will recognize problem-solving, innovation and business acumen among entrepreneurs and second- stage companies. Our goal is to highlight the next generation of entrepreneurial leaders Detroit’s restructuring effort who are helping to reinvent Southeast Michigan. Visit crainsdetroit.com/nominate for the online form. BY NANCY KAFFER “roadmap” to restructuring city Nominations must be received by July 26. CRAIN’S DETROIT BUSINESS government and a long checklist of city services. Questions? Contact Michelle Darwish at (313) 446-1621 We’re never going or [email protected], Last fall, Detroit Mayor Dave “ “Our stated mission was to re- Bing announced that an Opera- to have a build the city’s service-delivery tions Restructuring team — model so that we could rightsize dubbed the “O.R.” — would perfect plan, city government, and rightsizing take on the task of restructur- was obviously balancing spending ing the sprawling bureaucracy but it’s time to available revenues, but also bal- We are pleased to announce of Detroit’s city government. ancing to customer expectations,” The team’s goal was to align to move in the Anderson said. revenues with expenditures “That’s what led us into service Robert Levy and create a more effective direction of delivery or operational tasks, and Senior Vice President–Investments service-delivery model. that led right to how can we do all Then-Chief Administrative one plan. the same services that we do” PGPVS'BSNJOHUPO)JMMTPGÏDFIBTCFFO Officer Charlie Beckham and new- ” more efficiently. Making those BXBSEFEUIFUJUMFPG Gary Brown, city of Detroit ly appointed Deputy Budget Direc- changes was a long-term plan envi- tor Janet Anderson were put in sioned to take three years or more. Wealth Advisor charge of the effort, with the as- Brown pointed to work done by In the short term, she said, the in recognition of successfully meeting our signment of evaluating the city’s Bing’s crisis turnaround team, team was to develop some sugges- rigorous requirements. core services, the necessity of which delivered a report shortly tion for the fiscal 2010-11 budgeting those services and the way they after the mayor took office last process. )FJTPOFPGBTNBMMOVNCFSPG6#4'JOBODJBM"EWJTPSTXIPIBWF are provided to city residents. year; the O.R.; a proposed land use The roadmap Anderson’s team FBSOFEUIFEFTJHOBUJPOPG8FBMUI"EWJTPS"TB8FBMUI"EWJTPS  Now Beckham and Anderson plan funded by the Troy-based produced isn’t a model for rightsiz- 3PCFSUJTFNJOFOUMZRVBMJÏFEUPQSPWJEFIJHIMZQFSTPOBMJ[FE are gone. Kresge Foundation; and the work to ing the city’s government, but XFBMUINBOBHFNFOUTFSWJDFTUPIJTDMJFOUT Beckham left the city in May as a be done by McKinsey, as well as a rather provides a platform by result of budget cuts. Anderson has backlog of special committee plans which to assess city government /PSUIXFTUFSO)JHIXBZ 4VJUF resumed her previous role as a commissioned by previous may- and services. 'BSNJOHUPO)JMMT .* manager in the budget department. oral administrations. But early on, Anderson said, she  SPCFSUMFWZ!VCTDPN The restructuring effort is being “We’ve got a lot of plans sitting began to question how much cre- taken over by international con- on the shelf. We’re never going to dence would be given to the team’s sultancy McKinsey & Co., according have a perfect plan, but it’s time to work. www.ubs.com/team/levygroup to Dan Lijana, a communications move in the direction of one plan When the mayor presented his manager for Bing. so we can move forward,” Brown budget to the Detroit City Council in 6#4'JOBODJBM4FSWJDFT*ODJTBTVCTJEJBSZPG6#4"(h6#4'JOBODJBM4FSWJDFT*OD"MMSJHIUT “The Operations Restructuring said. April, few O.R. recommendations SFTFSWFE.FNCFS4*1$@"E@Y@%5@3BZ3 Room started a process of evaluat- McKinsey will provide data, were incorporated. ing city operations to make neces- analysis and technical support, Li- “We certainly were very public sary long-term structural jana wrote, “to help Bing and his about it, so it did cause some con- changes,” Lijana wrote in an e- cabinet develop short- and long- fusion when we did not lay out a mail to Crain’s. term structural changes to make roadmap for restructuring,” she The work completed by Ander- the city more effective and effi- said. son’s team will be incorporated cient.” What’s most important, Ander- into the work performed by McK- “Rather than recommending son said, is that the work of plan- insey, under the aegis of a newly specific solutions, this organiza- ning a comprehensive restructur- created Office of Transformation, tion provides research and infor- ing continues. Lijana wrote. mation,” he wrote in an e-mail. Restructuring is necessary for But some stakeholders are con- The Office of Transformation Detroit’s survival, said Bettie cerned that the end result is too won’t be a city department, he Buss, senior research analyst at much planning and not enough ac- wrote, but will “work closely with the nonpartisan Citizens Research tion. the city of Detroit” and will be Council. “I guess my initial thought is funded through a “consortium of “I think this administration has that I’m just hoping we’re not go- philanthropic organizations active been so overwhelmed with the fi- ing to analyze this to the point of in Detroit.” nancial challenges that it’s very never making a decision,” said De- During the eight months Ander- difficult to focus on anything else,” troit City Council President Pro son led the effort, the O.R. team de- she said. Tem Gary Brown. veloped a 150-page draft “Having said that, restructuring is a critical component of meeting the financial challenges, and part of being a good manager is both at- tending to those fires that need to be put out immediately and looking to the long term. Both of those things have to be done. If you focus on ei- ther one of them and ignore the oth- er, that’s a recipe for disaster, too.” Whether it’s possible for the city to make the kind of transforma- tional change it needs to be viable, Buss said, depends on a number of factors. “You have to ask yourself, how deep are the resources? And that’s a huge challenge for the city,” she said. “Tax revenue has gone down precipitously, and state revenue sharing has been cut repeatedly over the last several years, and the resource pool is definitely going to be impacted by that.” Then there’s the question of the city’s labor unions. “If the unions were willing, yes,” she said. “If the unions are not will- ing, it becomes very, very difficult.” Nancy Kaffer: (313) 446-0412, [email protected] 20100712-NEWS--0020-NAT-CCI-CD_-- 7/9/2010 6:31 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS July 12, 2010

Are you a Detroit Booster? Suppliers: Lean firms ready for action Support and advertise in... ■ From Page 1 In addition, European produc- some business from competitors As volumes rise, panelists tion is showing a “slight recovery, who went out of business.” agreed, suppliers’ ability to make which wasn’t expected,” said But not as many suppliers disap- money will depend on their stick- Heinz Otto, CEO of Troy-based peared as some had expected. ing with the discipline that got Behr America. “We had hoped that some would- them through the recession. Sales in Europe are soft, the sup- n’t make it, but some of our com- Suppliers have come to recog- plier CEOs said, but production petitors are still around,” Otto said. nize that they need to attain profit continues to grow because of solid But neither he nor the other margins “above 5 percent of sales,” exports from Europe to China and CEOs expects more waves of sup- Otto said. “In the past, suppliers North America, aided by a favor- plier shutdowns. were OK with 2 or 3 percent.” able euro exchange rate. “If you’ve survived so far, That means being willing to The suppliers that survived the you’ve got a pretty good chance of walk away from unprofitable busi- recession benefitted from a shake- survival,” Manganello said. ness, a stark change from prior out but don’t expect to see more ri- Credit remains a nagging prob- years when some suppliers accept- vals falling by the wayside. lem. “Credit is still tight. Ratios ed low-margin contracts to use “The economic tsunami really are still tight,” Baird said. “Banks their excess capacity. did a good job of shaking the tree, are still very careful.” “We’ve said ‘no’ more than Living and Investing in the D and the dead wood has fallen out,” Showalter noted that the capital we’ve said ‘yes,’ ” Manganello said James Rosseau, CEO of Mag- leasing market is “virtually said. “Suppliers have gotten highlights progress and neti Marelli USA in Troy. nonexistent.” smarter that volume at any cost is One benefit, said Eric Showalter, “If you want a piece of equip- not a smart business model.” possibilities for the Southeast CEO of Strathroy, Ontario-based ment, you’ve got to buy it,” he said. Said Rosseau: “We have to man- magnesium-casting specialist “For a company our size, that has age our business as if we’re going Michigan region. This issue Meridian Lightweight Technologies been the biggest change in our out of business.” also includes an interactive Inc., is that suppliers “picked up credit situation.” From Automotive News Web program with multimedia advertising options. AD CLOSE: Zazios: Balancing act for restaurant July 29 ■ From Page 3 should ISSUE DATE: Masco said Zazios settled on that could do well. If you are going to Who Aug. 23 price range, which is similar in chase the high ticket, you need to Kalamazoo, because it allows the There is a place have the build-out.” advertise? restaurant to straddle the line be- “ Prentice operates several fine- tween fine and casual dining. for high- dining restaurants, including UÊ Retailers “The price point is what you Coach Insignia atop the Renais- make it,” Masco said. “Sure, you end, but it’s sance Center, Shiraz in Bingham UÊ Restaurateurs can spend $200 on a bottle of Farms and Northern Lakes Seafood UÊ Hospitality, wine, but if a couple of students not as big of in Bloomfield Hills. Meeting/convention spaces want to come in and have a pizza Prentice also owned and operat- UÊ and a couple of draft beers, they an area as ed Morels in Bingham Farms but UÊ Loft/apartment spaces can do that too.” it once closed the bistro in July 2006. UÊ Business development Zazios plans to publicize its op- Other restaurateurs, mindful of erations with a print and radio was. the economy, chose to shed high- organizations campaign produced by Farmington ” priced items and reinvent them- Hills-based Duffey, Petrosky & Co. It selves as affordable options to fine UÊ Educational/training or job- Matt Prentice, also is planning to buy time on pub- dining. Trowbridge Restaurants Inc. placement providers lic access television and on one of Eric Doelle changed Birming- UÊ Service providers such as lawyers, the digital channels operated by Hess said that last year Epoch ham’s Quattro Cucina Italiana into WTVS-Channel 56 for “Zazios Al Fres- Restaurant Group lowered prices Quattro Pizzeria and Wine Bar in accountants, consultants, co,” featuring John Korycki, execu- at Forté and changed the theme of May. Brian Polcyn’s Five Lakes Grill advertising agencies tive chef at the Kalamazoo Zazios, the restaurant to accommodate in Milford became a Mexican Companies providing products during a cooking demonstration. changing customer demands. restaurant named Cinco Lagos last UÊ Masco said Zazios is looking to Epoch owns and operates five July. or services in environment, attract diners from across the restaurants in Michigan and Flori- Doelle, founder of Birmingham- alternative/clean energy, urban metro area, which means it is like- da, and also runs the catering op- based The Dali Group, which has ly to lure customers from other eration at the Diamond Center in the more than 300 employees and owns agriculture and construction restaurants. Rock Financial Showplace. Chen Chow Brasserie, The Hamilton “We think we have as fine a prod- Bruce Johnson, a planner for Room and Quattro Pizzeria, said he uct as there is, and we will draw the city of Birmingham, said recognized a need to change Quat- BONUS DISTRIBUTION: people from all of those surround- Greenleaf Hospitality estimated tro from a white-tablecloth restau- 1,500 via Crain’s Detroit ing communities,” Masco said. the construction value of Zazios at rant to a casual pizzeria with en- Joe Vicari, founder of Warren- $3 million. But, he said that does- trees priced at about $15 in order House Party and partners based Andiamo Restaurant Group, said n’t represent the total cost, be- to gain wider appeal. he is sure Zazios will initially divert cause the amount doesn’t take into “I would look out at the street and some of his business but is not con- consideration costs added I saw a lot of people not dressed up cerned it will affect sales over time. throughout the building process. and just walking around,” Doelle “I think they are going to hit all Johnson said the price makes it said. “It just hit me that we should of us,” Vicari said. “As much as one of the most expensive restau- move to casual dining.” you like to think people only dine rants to open in Birmingham. Doelle said the number of cus- at your restaurant, they go else- Zazios has handcrafted tile tomers at Quattro Pizzeria in- work, a kitchen spanning two PRESENTING where.” creased by 40 percent since the HOUSE PARTY SPONSOR Andiamo Restaurant Group has floors, and a chef’s table featuring transformation. SPONSORSHIPS 11 Andiamo restaurants across stadium seating with large televi- All of the Dali Group’s restau- sions displaying live video of the are also available. metro Detroit and about 1,000 em- rants are in downtown Birming- ployees. chef. ham. Paul Hess, director of operations Matt Prentice, CEO of Detroit- Darren Tristano, executive vice for Novi-Based Epoch Restaurant based Trowbridge Restaurants Inc., president of Chicago-based Tech- Group, which operates Forté on doing business as Matt Prentice nomic Inc., a food industry consult- South Woodward in downtown Restaurant Group, said even though ing and research firm, said many For advertising or sponsorship Birmingham, said the city has sales are up 20 percent at Coach In- restaurants are undergoing simi- enough diners to keep all of the signia, the market for fine dining is lar changes. opportunities contact Marla restaurants full. not as large as it used to be. “We are seeing this happen all Downs at 313.446.6032 or “I think the market is big “There is a place for high-end, over the nation,” Tristano said. enough to go around, Hess said. but it’s not as big of an area as it “Price point has been driving suc- [email protected]. “People are not going to go to the once was,” he said. cess, and that is the reason restau- same restaurant four times a He noted, though, that Zazios rateurs are shifting down.” week. They generally move from has good location “and if the own- Nathan Skid: (313) 446-1654, place to place.” ership has the dollars to spend it [email protected] 20100712-NEWS--0021-NAT-CCI-CD_-- 7/9/2010 6:10 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 21 Festival: Arts, Beats & Eats moves with high hopes www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or The Arts, Beats & Eats budget Tim Castaneda, owner of Zumba [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- was more than $1.3 million in 2008, Mexican Grille in Royal Oak, said 0460 or [email protected] before Chrysler Group L.L.C. with- Nonprofit participation sets record becoming a food vendor at the Pon- MANAGING EDITOR Andy Chapelle, (313) 446- drew its $350,000 title sponsorship. tiac event always offered good visi- 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette Witz said the festival ultimately Sponsors of Ford Arts, Beats & Beats & Eats) will bring, but cer- bility for his restaurant, and he Smith, (313) 446-1622 or [email protected] lost $475,000 last year after the de- Eats Presented by Citizens Bank are tainly from the food collection we hopes the proximity of this year’s ENTREPRENEURSHIP EDITOR Michelle Darwish expected to announce today that expect to receive more support Welsh, (313) 446-1621 or [email protected] parture of Chrysler, Troy-based show will help even more. Zumba COPY DESK CHIEF Gary Piatek, (313) 446-0357 Flagstar Bancorp Inc. and other nearly 60 nonprofits will partici- this year,” said President De- has 10-20 employees and has done or [email protected] sponsors. It has restored around pate in or derive some support Wayne Wells of Gleaners, which more than $1.3 million revenue in ASSISTANT NEWS EDITOR Jeff Johnston, (313) from Arts, Beats & Eats 2010 — a collected $3,000 on gate fees last 446-1608 or [email protected] $250,000 of it after signing the Ford past years, but Castaneda said it’s DATA EDITOR Anne Marks, (313) 446-0418 or division of Ford Motor Co. and the record-setting number for the fes- year and expects that to grow hard to quantify how much his vis- [email protected] tival — including two new pro- this year. WEB EDITOR Christine Lasek, (313) 446-0473, Southeast Michigan Ford Dealers as ibility at Arts, Beats & Eats has [email protected] title sponsor, and Citizens Bank as motional food collection drives Thirteen nonprofits including helped the bottom line. WEB DEVELOPER Steve Williams, (313) 446- presenting sponsor in April. during August for Forgotten Har- Gleaners and Forgotten Harvest “It (being a vendor) isn’t some- 6059, [email protected] vest and Gleaners Community Food get a percentage of gate fees that EDITORIAL SUPPORT Robertta Reiff (313) 446- The rest of the funding has been thing you make money at, it’s more 0419, YahNica Crawford, (313) 446-0329 made up with several smaller Bank of Southeastern Michigan. could total more than $200,000. like a marketing investment in the NEWSROOM (313) 446-0329, FAX (313) 446- sponsorship agreements, he said. Oakland County officials have The others are the Southeast visibility,” he said. “But I think it 1687 TIP LINE (313) 446-6766 New sponsors this year include said the event raised more than Michigan chapter of the Ameri- should do a lot more for us (this REPORTERS Meijer Inc., GMR Marketing Bicycle $2.2 million for nonprofit organi- can Red Cross; the Boys & Girls year) because it will be so close.” Daniel Duggan: Covers retail, real estate and zations over its 12 years in Ponti- Club of South Oakland County; the hospitality. (313) 446-0414 or Tour, AT&T Michigan and Shelby Russ Gretkierewicz, manager of [email protected] Township-based Vince & Joe’s ac. Arthritis Foundation Michigan The Inn Place Bar and Grill in Royal Jay Greene: Covers health care, insurance and the Gourmet Market From July 26 until festival Chapter; The Children’s Center, De- environment. (313) 446-0325 or . Total corporate Oak and board secretary of the [email protected]. sponsorship support is now time, presenting sponsor Citizens troit; the Children’s Miracle Net- Royal Oak Restaurant Association, Chad Halcom: Covers law, non-automotive around $900,000, he said — roughly Bank will host a new food drive work; Detroit Public Television; the said restaurant and bar owners in manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or equal to its 2008 funding. for Gleaners at all 25 of its loca- Jewish Federation of Metropolitan the Pontiac area have reported [email protected]. Another $300,000 or so comes tions; customers who contribute Detroit; March of Dimes; the Rain- having triple their typical patron- Tom Henderson: Covers banking, finance, bow Connection Volunteers of technology and biotechnology. (313) 446-0337 or from vendor and exhibitor booth three non-perishable items get and age during Arts, Beats & Eats, [email protected]. fees for the expanded festival, he one free admission ticket. Partic- America. which would offset a traditionally Nancy Kaffer: Covers small business, the city of ipating Royal Oak restaurants Other nonprofits perform at Detroit, Wayne County government. (313) 446- said. That means the 2010 show slow Labor Day weekend when 0412 or [email protected]. will open up around $125,000 in the also will collect food and finan- the festival, collect a share of bev- area residents tend to travel. Bill Shea: Covers media, advertising and red and then make its profit on at- cial donations starting Aug. 1 un- erage sales, participate in the “If you’re in the footprint and marketing, entertainment, the business of sports, and transportation. (313) 446-1626 or tendance, which is consistent with til festival time, for Oak Park- parking program or benefit from you’re more of a family-themed [email protected]. some previous years. based Forgotten Harvest. funds raised at “Arts du Jour,” restaurant, you’ll probably do Nathan Skid: Multimedia reporter. Also covers the “I’m unclear on what the new an advance evening event. food industry. (313) 446-1654, [email protected]. The first $60,000 collected on a well. Nightlife spots could actually Sherri Begin Welch: Covers nonprofits and new $3 gate fee for festival guests size or change of venue (for Arts — Chad Halcom hurt a little,” he said. “But Pontiac services. (313) 446-1694 or [email protected] goes toward the festival, Witz said. was a very different beast. It does- LANSING BUREAU shuttle ride. The city’s own expens- Amy Lane: Covers business issues at the Capitol, After that, 25 cents per ticket goes n’t have a typical, reliable stream telecommunications and utilities. (517) 371- to the city and another 25 cents to es for services could exceed $200,000 of traffic on weekends that might 5355, FAX (517) 371-2492, [email protected]. or various cultural institutions the This ... could over and above its DDA sponsor- get disrupted. So you really don’t 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING producer has pledged to support. “ ship, Johnson said. know how your own business will ADVERTISING DIRECTOR Marla Downs, (313) The remainder is divided in half become the largest “There’s going to be a turnover actually do.” 446-6032 or [email protected] between Arts Beats & Eats Inc. and of people, like the day people who Witz said the festival saved SALES INQUIRIES: (313) 446-6052; FAX (313) 13 selected charities. (See story, event of its kind in are there for the art giving way to more than $200,000 last year from 393-0997 ADVERTISING SALES Jeff Anderson, Matthew J. this page.) the nighttime people who come for renegotiating some of its costs on Langan, Lori Tournay Liggett, Tamara Rokowski, Tens of thousands of festival Michigan. the entertainers,” he said. “I’m ex- electrical services, stages, lighting Kimberly Ronan, Cheryl Rothe, Dale Smolinski tickets are typically given away in ” pecting we could get at least two and other production costs. Those CLASSIFIED SALES (313)-446-0351 City Manager Don Johnson, MARKETING MANAGER Irma Clark advance promotions, but Witz esti- and a half users per (parking) savings continue, he said, but the MULTIMEDIA MANAGER Alan Baker, (313) 446- mates a turnout of 350,000 would Royal Oak space per day, in which case we’ll festival added new expenses like 0416 or [email protected] mean 250,000 or more tickets sold from Pontiac last year. Witz and do pretty well over our expense.” erecting an outdoor stage and seat- EVENTS MANAGER Nicole LaPointe MARKETING ARTIST Sylvia Kolaski for $750,000-plus in revenue. Johnson both said Royal Oak dis- If the city is not breaking even ing on a 35,000-square-foot parking SALES SUPPORT Suzanne Janik, YahNica Crawford “This would be by far the largest tributes 20 percent of its profits or better, it has the option to break area near Seventh and Main CIRCULATION Candice Yopp, Manager. event for our city. It could become from parking fee collection back to its five-year contract after 2012. streets, in lieu of the Phoenix The- MARKETING COORDINATOR Kim Winkler the largest event of its kind in the festival, after recouping the Johnson said it was not clear how atre in Pontiac, plus some added PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, Michigan,” said Royal Oak City DDA investment and its expenses much of a loss would prompt the traffic control costs. (313) 446-0450 Manager Don Johnson. “The only for police, fire, and public works City Commission to consider back- Witz said his company, which CUSTOMER SERVICE thing that would challenge it I services, and the contract for a ing out. owns its headquarters building in MAIN NUMBER: Call (877) 824-9374 or write think is (National) Cherry Festival shuttle carrier for guests who use Witz said the festival increased Pontiac, is not planning to move [email protected] SUBSCRIPTIONS $59 one year, $98 two years. in Traverse City. And where we remote parking. its number of musicians and enter- with the festival. Witz and Associ- Out of state, $79 one year, $138 for two years. rank against that sort of depends Johnson said the DDA also ex- tainers from 150 last year to more ates also produces the Detroit Win- Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or on where we end up with the atten- pects to collect a 20 percent share of than 200 this year, including some ter Blast and the newly launched (877) 824-9374. dance.” the parking profits. The city expects children’s entertainment; and Blue Water Fest 2010 this week in SINGLE COPIES: (877) 824-9374. The Royal Oak Downtown De- restaurant vendors have increased Port Huron, as well as serving as REPRINTS: (800) 290-5460, ext. 125; (717) 505- to charge $10 per space for on-site 9701, ext. 125; or ashley.zander@theygsgroup velopment Authority contributed parking and have up to 10,000 park- from 44 to 56. But the number of project manager for River Days .com. $100,000 as an event sponsor for ing spaces available, although more participants in a juried art fair is festival. TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. Arts, Beats & Eats this year, com- than a third of those spaces might about the same, with 134 artists Chad Halcom: (313) 446-6796, pared with a $65,000 sponsorship be far enough away to require a $2 filling 150 exhibitor spaces. [email protected] CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain SECRETARY Merrilee Crain TREASURER Mary Kay Crain Executive Vice President/Operations William A. Morrow Detroit Media Partnership launches statewide news website Group Vice President/Technology, Manufacturing, Circulation Robert C. Adams BY BILL SHEA There are no immediate plans quirer, Howell-based Livingston “That’s something that we’re go- Vice President/Production & Manufacturing Dave Kamis CRAIN’S DETROIT BUSINESS for original content or user-gener- County Daily Press & Argus, the ing to explore and very well may Chief Information Officer ated content, but that could hap- Times Herald in Port Huron, as do,” he said. Paul Dalpiaz The business partnership that pen in the future, the venture’s or- well as a number of suburban com- MLive, which launched in 1997 Corporate Circulation/Audience Development Director manages the business functions of ganizers said. munity newspaper chains. and claims 1.7 million unique visi- Kathy Henry Detroit’s two daily newspapers The site allows users to cus- Those newspapers, along with tors per month, is owned by Booth G.D. Crain Jr. Founder (1885-1973) has launched a website that aggre- tomize aggregated content by topic The Detroit News, owned by Denver- Newspapers, the Michigan sub- Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: gates news content from around and region, and new features will based MediaNews Group, are provid- sidiary of New York City-based Ad- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Michigan. be added based on user feedback. ing the bulk of the content so far. vance Publications Inc. It features Cable address: TWX 248-221-5122 AUTNEW DET The Detroit Media Partnership’s The media partnership operates Other content is coming from the content generated by its nine CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Michigan.com will directly chal- the advertising, circulation, print- Record-Eagle in Traverse City and newspapers and/or websites and is published weekly, except for a special issue the third week of January, a special issue the fourth lenge rival MLive.com for some ing and other non-newsroom func- other newspapers via RSS feeds. by MLive staffers and users. week of August, and no issue the third week of December by Crain Communications Inc. at 1155 news consumers and advertisers. tions of The Detroit News and Detroit The new site will not aggregate Booth includes the newspapers Gratiot Ave., Detroit MI 48207-2732. Periodicals Michigan.com will aggregate Free Press and will sell advertising content from MLive.com and its in Grand Rapids, Flint, Saginaw postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to news, weather, sports, traffic, en- specifically for the new site. siblings, but that could change in and the AnnArbor.com website that CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- tertainment and recreation con- The Free Press is owned by part- the future, said Rich Harshbarger, replaced the Ann Arbor News last 9732. GST # 136760444. Printed in U.S.A. tent from more than 30 organiza- nership majority owner Gannett the partnership’s vice president of year. Entire contents copyright 2010 by Crain Communications Inc. All rights reserved. tions statewide, the partnership Co. Inc., which also owns the Lans- consumer marketing and commu- Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any said in a statement. ing State Journal, Battle Creek En- nications. [email protected] manner without permission is strictly prohibited. 20100712-NEWS--0022-NAT-CCI-CD_-- 7/9/2010 6:32 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS July 12, 2010 Elevator Building: Offices, not condos New fund: Auner on ■ From Page 1 pancy is expected in August, and The other two tenants did not Russell Industrial Center set it team investing in area six tenants have put down their de- give Lewarchik permission to be apart from the Detroit Elevator posits to lease space. named by press time for Crain’s. Building. ■ From Page 3 “It’s a case of us being quick on Even with six tenants, the pro- Lewarchik says he sees the De- collaborated on projects with the truck-driver behavior. our toes and being in a position to ject still has a way to go. The troit Elevator Building as the Kresge Eye Institute, Beaumont Company President Anthony still add something to the building 30,000-square-foot building has 23 spark for block-by-block develop- and the Karmanos Cancer Insti- Lacenere said the hardware and the neighborhood,” he said. units on two stories. ment of the largely vacant river- tute. placed in the engine needs more “We’re lucky to not be just another For inspiration, Lewarchik can front district. The injection of cre- He is also an entrepreneur, co- robust sensors capable of operat- sad ‘could-be’ story in Detroit.” look up Woodward Avenue to Mid- ative entrepreneurs will help spur founding Visca LLC, a WSU spinoff ing in high temperatures, which Named for the Detroit Elevator town where a similar redevelop- other business over time, he said. based in TechTown. is one of the specialties of Co., which owned the building ment occurred at the MidMed That vision is a long way from In January, Auner’s lab. from the 1940s to 2007, the building Plaza building. the plan in 2007. Visca an- Lacenere said was also used as a Studebaker facto- Initially planned as residential, At that time, there were six ma- nounced it had that Propel ry and by the Purple Gang as a owner J.B. Peabody changed jor residential developments set to First of all, we’re received a $3.4 would remain in bootlegging hub, Lewarchik said. course to commercial after 19 take occupancy by 2009, with none “ billion grant Pittsburgh but, The building, on Franklin units were presold based on sag- under construction now. not afraid of the from the U.S. De- depending on Street next to the Dequindre Cut ging residential sales in Detroit. The Watermark, condominiums partment of how things Greenway, is being redeveloped Peabody recently signed a lease originally to be developed by Dave Rust Belt. We’re Health and Hu- work out with for $500,000 compared with the $3 for 7,000 square feet with Wayne Bing, has been placed into a blind man Services for Auner, could million cost of converting to resi- State University, bringing the build- trust while he is mayor. While he from Pittsburgh, proof-of-concept move assembly dential. ing to 85 percent occupied. said sales will continue, the pro- testing to see if a operations here. Lewarchik is targeting small, cre- “It’s really worked well,” he said. ject’s website has been taken down. OK? sensor-based Schliebs also ative companies in need of small of- Many of the tenants are associ- The lofts originally planned for ” test can be de- Charles Schliebs, iNetworks LLC said he expects fices at a relatively low price. The ated with nearby Detroit Medical sale at the Globe Trading Co. build- veloped to de- commercializa- asking rate of $8.40 per square foot Center and are mostly small users. ing have been put on hold, though tect radiation in a single drop of tion efforts locally to pick up is well below the city’s average of- Demand from those small office owner Mark Wilcox said he is human blood. once the deal by Nashville-based fice rate of $18.30, according to users has been strong in the city making progress on a plan to de- If the concept works, the grant Vanguard Health System Inc. to pur- Bethesda, MD-based CoStar Group. over the past two years, said Eric velop market-rate apartments. calls for additional funding of chase the DMC closes on Nov. 1. One of the tenants lined up is Novack, operations manager for Also on hold is a condo project $32.9 million to ramp up develop- “Vanguard is extremely inter- M1/DTW LLC, an architectural, in- the Russell Industrial Center. once planned by General Motors Co. ment of large volumes of small, ested in boosting the number of terior and graphic design firm. Novack said his 2.2-million- and Houston-based Hines Interests portable testing units for use in successful spinoffs,” he said. Owner Christian Unverzagt said square-foot building picks up adjacent to the Renaissance Cen- the field. iNetworks Advisors Inc. was the three-person firm has been in about one new tenant every week ter, the @water Lofts project to be “First of all, we’re not afraid of founded in 1999 as a vehicle for the Russell Industrial Center and and currently has 160 businesses developed by Dwight Belyue, and the Rust Belt. We’re from Pitts- high-net-worth individuals and is looking for something new. and 130 retailers. the Chene East project to be devel- burgh, OK?” said Charles institutions to invest in emerg- “It’s a magnificent building,” he “This is the future of Detroit,” oped by former football star Schliebs, iNetworks’ co-founder ing companies. Until recently, it said of Detroit Elevator Building. he said. “It’s amazing how many Jerome Bettis and developer C.J. and managing director. “Detroit had no dedicated funds, doing “It’s been a good ride for us over 10 startup companies there are right Betters. had its upheavals a little later one-off deals. years at the Russell Industrial now. Any operation focusing on “Commercial is an exciting use than Pittsburgh had its. We see op- It opened an office here in 2007 Center. But maybe this is the next small businesses is going to be a for this neighborhood, and in the portunities in Detroit, and we’re to start fundraising for both a wave in Detroit with things hap- success right now, and the Russell long-term will be better than town- excited to take advantage of it. Michigan fund and for the nation- pening near the river.” Industrial Center certainly can’t homes,” said Lewarchik. “And we’re very excited to ally focused BioOpportunity Fund LP. Another tenant will be local corner the market.” “We’re making the best of a bad have Greg Auner join us. Greg In May 2008, the BioOpportunity artist Cristin Richard, Lewarchik Novack said the concept of small situation, and at the same time could have taken that lab any- fund got a commitment of $4 mil- said. Photographer Stephen McGee office space at the two buildings is reinventing an amazing building.” where in the country, but he kept lion from the Detroit Police and Fire will use space, as will countertop similar, though the size and rental Daniel Duggan: (313) 446-0414, it in Detroit,” said Schliebs, who Retirement System, contingent on it company Origins Concrete Design. rates of $3-$6 per square foot at the [email protected] said he would bring in represen- raising at least $40 million. tatives of Pittsburgh companies The economic meltdown put a to tour Auner’s sensor lab “and halt to fundraising, but Schliebs pursue relationships.” said the BioOpportunity Fund is In fact, last Thursday, two ex- back on track, has commitments ecutives of one of iNetworks’ of more than $30 million and is portfolio companies, Propel IT targeting a first close of $50 mil- Inc., drove in from Pittsburgh to lion and an eventual total of at meet with Auner. Propel makes least $100 million. equipment to reduce diesel fuel Tom Henderson: (313) 446-0337, consumption by monitoring [email protected]

Ashley Capital, the largest owner and manager of industrial real estate in St. Mary: Hospital rides southeast Michigan, provides more space to more logistics companies in the metro-Detroit market construction wave than our top three competitors combined. ■ From Page 3 for by a tax-exempt bond issue and structure goes back to (1959 when other funding sources through the hospital opened),” Spivey Our Michigan portfolio (16 Million SF) contains over 3.5 million square feet of ENERGY Trinity Health, Spivey said. said. 67$5LQGXVWULDOVSDFHZKLFKUDQNVXVLQWKHWRSWLHUQDWLRQDOO\RIHQHUJ\HI¿FLHQW In 2008, St. Mary Mercy pro- Earlier this month, St. Mary building owners. posed a similar $122.8 million Mercy began three new graduate project to expand patient towers medical education programs to and build a new emergency cen- train 26 first-year residents and :KLOHHQHUJ\HI¿FLHQF\DQGVXVWDLQDELOLW\DUHIXQGDPHQWDOWR$VKOH\&DSLWDO¶VFRUH ter. That project, which also in- four fellows in academic internal SULQFLSOHVWHQDQWVRIRXUVWDWHRIWKHDUWEXLOGLQJVDOVRHQMR\RWKHUHI¿FLHQFLHV cluded an ambulatory surgery medicine. LQFOXGLQJ FOHDUKHLJKW(6)5¿UHVXSSUHVVLRQV\VWHPVSOHQWLIXOVWDJLQJDUHDV center, was put on hold because Over the next several years, St. high dock door ratios, radiant tube heat, and insulated walls and roof. of the economic downturn, Mary Mercy will add seven more Spivey said. residency programs that will Spivey said the entire project train 150 resident physicians. would take a little more than St. Mary also is affiliated with three years to complete. The last Ann Arbor-based St. Joseph Mercy major inpatient project was back Health System, which operates New York Detroit Atlanta Chicago in the late 1960s when the hospi- seven hospitals in Southeast tal doubled its capacity to 304 li- Michigan. All the hospitals are censed beds, he said. part of Trinity Health, one of the 7R¿QGRXWPRUHDERXWRXU(1(5*<67$5ZDUHKRXVHRURI¿FHVSDFHFRQWDFW “During the mid-1980s we built nation’s largest Catholic systems XVDWRUYLVLWwww.ashleycapital.com. a new obstetric area, a new inten- with 44 hospitals. sive care unit and operating Jay Greene: (313) 446-0325, suite, but the inpatient infra- [email protected] 20100712-NEWS--0023-NAT-CCI-CD_-- 7/9/2010 6:53 PM Page 1

July 12, 2010 CRAIN’S DETROIT BUSINESS Page 23 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JULY 3-9

Domino’s says new ads McLaren Health Care Corp. DAL) got the OK Tuesday Michigan First The University of Michi- from the U.S. Department of won’t use photo tricks gan has named Addell Austin Transportation to begin non- CEOs offer Anderson director of its De- stop service between Detroit Ann Arbor-based Domino’s troit Center. She succeeds Metropolitan Airport and Pizza Inc. is nixing all of the sues First Roger Doster, who retired. Tokyo’s Haneda Airport tricks normally applied to starting Oct. 31. food photography in its lat- Michigan over 10 questions est ad campaigns in an effort COURTS to stick to its “Pizza Turn- The Michigan Supreme OTHER NEWS around” campaign. use of name Court has refused to hear Ann Arbor Spark, the Domino’s launched the an appeal by Seattle-based Ann Arbor economic devel- campaign to correspond ichigan First Credit for candidates Safeco Insurance Co. of opment group gubernatori- with its new pizza recipe. Union of Lathrup America, making the com- al candidate Rick Snyder Village has filed a tatewide CEO group consists of Michigan, Ohio The new ads will not use M pany liable for the $35 mil- helped create in 2005, kept lawsuit against First Michi- Business Leaders for and West Virginia, had the any touch-ups, air brushing, lion in construction costs such faulty records its first S Michigan is calling on second-highest mail re- or other tricks. gan Bank of Troy in U.S. Dis- for new access ramps to few years that an audit trict Court in Detroit, alleg- voters to query candidates sponse rate in the nation for the Ambassador Bridge as found it couldn’t adequate- ing trademark on key issues facing Michi- this year’s U.S. Census Bureau part of the Gateway Pro- ly report how it was spend- BITS & PIECES infringement over the gan — and is providing the count. ject. The ruling let stand ing all the hundreds of name. questions. Among the top 50 cities Crain’s Detroit Business an earlier ruling by the thousands of dollars it re- David The group today is releas- with populations of 50,000 or Publisher Mary Kramer was Wayne County Circuit Court. ceived in public funds, AP Provost, ing a list of 10 questions it more, Livonia ranked No. 1 appointed to the Grand Valley Safeco, the bonding com- reported. the presi- wants voters to ask guberna- with an 87 percent participa- State University Board of Con- pany for the project, is No money went missing, torial and legislative candi- tion rate, Macomb Township dent, trol for a term that runs held liable after the Detroit and none dates. It is publicizing the was No. 10 with 85 percent chairman through 2018. International Bridge Co., the of the au- and CEO questions through a radio and Rochester Hills was parent company of the dit’s find- Scott Eisenberg, co- of First campaign. No. 14 with 85 percent. bridge, failed to build the ings point- founder of Birmingham- Michigan The questions arise from As a whole, Michigan was ramps. ed to based Amherst Partners, has Bank, said the group’s plan to improve ranked No. 5 in states with a Provost A lawsuit filed by Car- illegal ac- been named president of the the lawsuit the state’s economy. Topics high participation rate — lita Kilpatrick, the wife of tivity. Detroit chapter of the Turn- is baseless and that his include the state budget, 77 percent — in the 2010 cen- ex-Detroit Mayor Kwame Snyder, around Management Associa- bank “intends to defend state and school employee sus-taking. The national av- Kilpatrick, to stop authori- who re- tion for a one-year term. this suit vigorously.” compensation, sharing and erage was 72 percent. ties in Michigan from cap- mains on Michigan First President Snyder consolidation of government turing the family’s assets Spark’s and CEO Michael Poulos and school services, state has been dismissed by a executive committee, said HOT-TIME FUNDRAISER said the credit union “has corrections costs, tax struc- Texas court, AP reported. the problems were merely invested a lot on our brand ture reform, entrepre- The suit sought to sepa- growing pains. in Southeast Michigan to neurism, and investment in rate assets belonging to The 132 housing per- establish consumer recog- areas like higher education, her and the couple’s three mits issued in May nearly nition, and we need to pro- roads and communities. young sons from those of doubled the number is- tect our assets.” “The 10 questions are her husband. The suit sued during the same meant to help voters more named Wayne County month in 2009; however, a critically probe candidates’ ON THE MOVE Prosecutor Kym Worthy as a decrease is expected for positions on the issues of defendant. the next six months for most concern to Michigan- Leslie Smith, who has Macomb, Oakland, St. ders, which are growing the been the director of busi- Clair and Wayne counties, economy and creating jobs,” ness acceleration for the COMPANY NEWS according to the Building said Doug Rothwell, presi- Michigan Economic Develop- Industry Association of dent and CEO of Business Taylor-based fuel dis- ment Corp., will join De- tributor Atlas Oil Co. is de- Southeast Michigan. Leaders, in a statement. troit’s TechTown as general Oakland County Ex- The questions will be post- ciding exactly what to do manager on July 19 to help with as much as $300,000 in ecutive L. Brooks Patterson ed at www.michiganturn ELAYNE GROSS run day-to-day operations. said Oakland County How hot was it last week? Hot enough that six volunteer rebates BP plc offered to aroundplan.com, the website Smith’s position is to be homeowners should ex- for the group’s strategy. bartenders donned shorts and aprons to serve up drinks at give regional distributors the inaugural Women’s Caring Program fundraiser in Detroit. funded for two years by a of its gasoline to help offset pect continuing declining From left: Detroit Regional Chamber CEO Sandy Baruah; grant from the New Economy the impact of a consumer property values for the Detroit region ranked Wayne State University Professor Bill Volz; Tom Goss, The Initiative. boycott in response to the next three years, AP re- Goss Group LLC; Ed Fernandez, vice president and general Troy-based First Michi- Deepwater Horizon oil ported. No. 2 in census response manager, WXYZ-Channel 7; K.C. Crain, publisher, AutoWeek; gan Bank has named Thomas drilling rig explosion. The health care peti- Detroit has made it on a Bob Riney, COO, Henry Ford Health System. WCP raises FitzGibbon Jr. managing di- Among the options being tion drive supported by money for early childhood education for children in low- national list, and not for rector and integration spe- considered are investing in the National Federation of income households. The party was co-hosted at the Indian cialist. He had been a prin- Independent Business-Michi- something infamous this Village home of Colleen Robar, corporate communications capital improvements and BSI gan time. director for Crain Communications, and co-hosted by Crain’s cipal at , a Chicago- image building for its net- to exempt Michigan The Detroit Region, which Publisher Mary Kramer. based consulting firm. work of gas station retail- from provisions in the fed- Reginald Eadie, M.D., ers. eral Patient Protection and has been Palace Sports & Enter- Affordable Care Act failed to appointed tainment Inc. said that it garner enough signatures president plans the week of July 26 to to make the November bal- of Detroit upgrade the 94-foot-tall lot. Backers still plan to Medical video marquee that stands make it an election issue Center’s De- alongside I-75 in Auburn by making known candi- BEST FROM THE BLOGS troit Receiv- Hills near the Palace of dates’ positions and en- Xx ing Auburn Hills and the couraging lawmakers to READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Hospital, ef- Lapeer Road exit with twin introduce bills that would fective use the petition drive lan- Eadie LED digital billboards to Partners in pain Universities’ role debated July 26. He provide larger and sharper guage. takes over from Iris Taylor, images. I don’t know where What role should a who was promoted to Ann Arbor-based Aas- OBITUARIES Dan“ Gilbert is tonight, university“ play in job DMC’s chief business offi- trom Biosciences Inc. (Nas- and I’ve never met him, creation and economic cer last month. daq: ASTM) announced Harvey Fuqua, who but I feel closer to him development? Members Tim Jodway, formerly Tuesday that based on an owned the Tri-Phi and Harvey right now than I ever of the region’s business the CFO at Northern Michi- have. Or ever will. He community will gather encouraging meeting with record labels, managed gan Regional Health System and I both took a boot with top officials of the officials of the U.S. Food and Marvin Gaye and was a to the gut. Commerce Department in Petoskey, has been Drug Administration it will member of the Rock and Roll to address that question named vice president and pursue Phase 3 trials of its Hall of Fame, died July 6. He ” Tuesday. CFO of Garden City Hospital. treatment for critical limb was 80. He has worked at several ischemia, the most severe Bob Probert, former De- Reporter Bill Shea’s blog on sports, the media, Managing Editor Andy Chapelle’s blog” on business in health care organizations form of peripheral vascular troit Red Wing, died of an ap- transportation and marketing can be found the Ann Arbor area can be found at in Michigan, including disease. parent heart attack while at www.crainsdetroit.com/shea www.crainsdetroit.com/chapelle Lapeer Regional Hospital and Delta Air Lines (NYSE: boating July 5. He was 45. DBpageAD.qxd 2/17/2010 12:32 PM Page 1