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©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Detroit to host creative DMC, WSU still at odds cities summit lion to $7 million, retroactive to Detroit is to host the sec- WSU seeks review of payment cuts, may sue Oct. 1 because it believes the pay- ond International Creative ments violate federal laws on ex- Cities Summit on Oct. 13-15. cessive compensation to doctors. BY JAY GREENE medical school. the potential lawsuit and layoffs. The Michigan State Housing Disproportionate share payments CRAIN’S DETROIT BUSINESS The medical “We receive two checks per Development Authority is or- compensate hospitals and doctors school also is month with $500,000 to $600,000 less ganizing the Creative that treat a high number of low-in- Wayne State University’s School of working on a each time,” Frank said. “We are Cities 2.0 summit with come patients. Medicine is asking for an indepen- plan to reduce geared up to look at each job catego- Tampa Bay, Fla.-based Cre- WSU has since received two dent review to determine whether expenses, which ry to see where we can cut. We can- checks from DMC that total less ative Cities Productions. Or- Detroit Medical Center is justified in may include not tolerate this type of cut.” than half what it expected under a ganizers expect more than withholding $12 million in funds cutting services In a Feb. 1 letter, DMC notified 1,000 people to attend each 3½-year-old contract it signed in for indigent care and Medicaid. and research WSU it is reducing annual Medic- November 2006, Frank said. WSU day. WSU also is considering a and possibly aid disproportionate share pay- is paid twice a month. The summit focuses on breach of contract lawsuit against laying off facul- ments to the medical school and Frank “We feel we have a binding con- how communities are us- the DMC if funding is not restored, ty and staff. A Wayne State University Physicians ing innovation, social en- said Robert Frank, vice dean of the decision is expected this week on Group by $12 million, from $19 mil- See Payments, Page 23 trepreneurship, arts, cul- ture and business to stimulate economies. Dis- cussion topics are to in- clude promoting local as- sets and destinations, talent attraction and reten- Growing tion strategies and best practices for economic and social development. Salsa sales hot St. Petersburg, Fla., host- YP groups ed the first creative sum- mit in 2004. Garden Fresh For more information, visit www.creativecities- crowd summit.com. cooks up big deal — Jonathan Eppley The Hayman Co. buys with Margaritaville calendars apartment properties BY BRENT SNAVELY BY CHAD HALCOM The Hayman Co. based in CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS Troy has bought two apart- ment properties in Ann It’s party time at Garden Fresh Break out the day planners, everyone. Arbor and Southfield, con- Gourmet Inc. The number of groups forming taining 240 units, for $14.6 The Ferndale-based fresh salsa-, hummus- and tortilla-chip-maker has around young professionals — YPs million. experienced tremendous success over for short — is growing in South- Both the 106-unit Monti- the past 11 years, with annual sales east Michigan, cello-Southfield, at 22700 increasing from $6 million in 2002 to adding events and Civic Center Drive, and the A NETWORK $46 million in 2007. after-work net- 134-unit Ponds at George- But now, Garden Fresh is prepar- OF GROUPS working for 22- to town, 2511 Packard, Ann ing for the possibility that its revenue 40-year-olds. Arbor, were built in 1988 More than 30 will balloon over the next two years to area groups Networking and and contain one-, two- and more than $90 million. are geared volunteerism three-bedroom units. The On Dec. 21, Garden Fresh signed a toward young group Detroit Young seller was New York-based manufacturing and production deal professionals. Professionals has Centennial Real Estate, to produce a full line of salsa, hum- Partial list, dodged a time con- Page 24. which had bought the prop- mus, tortillas and dips for singer and flict between its erties as part of a REIT last songwriter Jimmy Buffett’s Margari- panel discussion this week and a year, said Andrew Hayman, taville Foods. nearly identical event hosted by Af- executive vice president of “It’s really a great move for us. We ter 5 Detroit when the latter group The Hayman Co. have a shot at doubling the size of our chose to reschedule. Hayman plans to spend company in 18 months,” said Garden Tickets sold out for the 100-ca- approximately $1 million Fresh Vice Chairman Dave Zilko. pacity DYP Leadership Summit on renovations at the two Margaritaville Foods, inspired by Thursday evening at the Detroit properties, he said. songs written by Buffett, already has Renaissance Club downtown; Af- — Robert Ankeny several other lines of food and drinks ter5 Detroit, which planned its that include frozen seafood, beer, NATHAN SKID/CRAIN’S DETROIT BUSINESS “Gen Y: We Chose Detroit” event Annette and Jack Aronson, creators of Garden Fresh salsa, look for for the same evening, bumped it to See This Just In, Page 2 even greater sales after signing a deal with Margaritaville Foods. See Salsa, Page 25 See Groups, Page 24

Thinking beyond the How to stay in business Detroit 3 pays off, for a century, NEWSPAPER Page 3 Page 11 DETROIT BUSINESS MAIN 02-18-08 A 2 CDB 2/15/2008 6:54 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS February 18, 2008

during the year in its staffing con- sion’s Riley Broadcast Center in Each of the plans include a a weekly business health care tracts with various state govern- Wixom. long-term proposal for a new hos- news magazine, and its sister TTHISHIS JUST JUST IN IN ment agencies. The station also is leasing space pital. Without new standards, publication Modern Physician. th ■ From Page 1 The figure represents an 18 to Interslice Studios, a multimedia the companies now face either Both are owned by Crain Communi- consecutive year of revenue firm, said Publicity Manager John the unlikely proposition of ob- cations Inc. growth for S-3, which operates 21 O’Donnell. taining a certificate of need in vi- In addition to his health care DTE Energy awards $7.6 million branch offices in 20 cities of North The lease arrangement isn’t olation of those guidelines or go- experience, Greene has worked at in grants to state nonprofits America and Europe. During the just a landlord-tenant situation, ing to the state Legislature for newspapers in Florida, Massa- year the company opened new fa- said ArtServe President and CEO special action. chusetts and Minnesota. The DTE Energy Foundation said cilities in San Antonio, Dallas and Neeta Delaney. — Chad Halcom A native of Sarasota, Fla., it awarded nearly $7.6 million to Tallahassee, Fla. and became a li- Both ArtServe, an arts promo- Greene is a graduate of the Uni- Michigan nonprofits last year. censed staffing vendor in tion and education organization, Greene joins Crain’s staff versity of Florida in Gainesville. Among the grants was $1.5 mil- Louisiana. and Detroit Public Television “re- He can be reached at lion to the University of Michigan — Chad Halcom ally see this as a chance to work Jay Greene, 53, has joined Crain’s [email protected] or at (313) College of Engineering to estab- together on programs.” as the reporter covering health 446-0325. lish the DTE Energy Professor- — Sherri Begin care, the envi- Other coverage changes: ship of Advanced Energy Re- WSU hires head of mechanical ronment and Sherri Begin will cover ser- search. engineering department the insurance vices in addition to nonprofits. Other grants included: $385,000 William Beaumont, McLaren industry. Chad Halcom will cover edu- The College of Engineering at to 20 Michigan middle schools for Greene previ- cation, non-automotive manufac- Wayne State University has hired take a pass on state panel innovative math programs that ously was a turing and defense contracting. William Beaumont Hospitals and improve student math skills and Walter Blyzik, 62, former chief sci- writer and edi- He will continue to cover Oak- McLaren Health Care Corp. have $600,000 to the Cranbrook Institute entist for the U.S. Army Tank Auto- tor for several land and Macomb counties. passed on the chance to lobby the of Science to establish the DTE En- motive Research, Development and publications, Tom Henderson adds biotech- state Certificate of Need Commission ergy Watershed and Great Lakes Engineering Center in Warren, as including Mod- nology to his banking, finance Education program. its department chairman of me- for new regulations that might Greene ern Healthcare, and technology coverage. — Sherri Begin chanical engineering. He suc- have made it easier to build two ceeds Trilochan Singh, who held the new hospitals in Independence Strategic Staffing announces post as interim chair for more Township. than a year and now resumes his The CON commission voted CORRECTIONS faculty position. unanimously against creating a increased 2007 revenue The acquisition of the Southfield law practice of Steven H. Malach by Blyzik, 62, of Grosse Pointe, as- review committee to examine Detroit-based Strategic Staffing Lipson, Neilson, Cole, Seltzer & Garin P.C., Bloomfield Hills, was incor- sumed the post this month after standards on hospital bed counts Solutions Inc. reported annual rev- rectly listed as a merger on Page 14 of the Feb. 11 issue. More details retiring at TARDEC in December. and other regulations during a enues of $148 million for 2007 — up about the acquisition are on Page 20 of this issue. — Chad Halcom meeting earlier this month. from $139 million for 2006 and This means regulations will re- An incorrect company was credited as the designer of the www.vis- roughly $104 million from 2005. main unchanged for at least two itdetroit.com Web site in a story on Page 10 of the Feb. 11 issue. Octane The staffing company with a ArtServe moves Lansing, years. Design, Royal Oak, and Logicorps, Clinton Township, developed the large technical and IT segment Southfield offices to Wixom That ruling could impact com- site. showing in its workforce, attrib- peting plans Beaumont and A Feb. 11 story on the sale by Farmington Hills-based Beringea L.L.C. uted some of the growth to open- ArtServe Michigan has consoli- McLaren have for new health care of one of its portfolio companies, London-based Gyro International, ing new branches in Texas and dated its Lansing and Southfield complexes in Independence Town- should have said that its most recent sale before that one was last Florida, as well as “great profit” offices into Detroit Public Televi- ship. March, when it sold a restaurant chain in the U.K., Ma Potters Ltd.

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February 18, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Blue Cross under fire again INDEX

Blues. Next chapter: Borders new store format “only Property-casualty insurance bills called unfair The result would be the Blues the beginning.” Page 4. could use its nonprofit reserves and Giving ideas: United Way buying power to undercut premiums is exploring new sources BY JAY GREENE Accident Fund Insurance Co. of America, president and and siphon off customers with lower of revenue. Page 15. CRAIN’S DETROIT BUSINESS now limited to selling workers’ com- counsel of govern- prices, said Gallinger. pensation coverage, to sell other in- ment relations “We have a level playing field A newly formed coalition of seven surance lines, including automotive, with Amerisure, a now, but we won’t if Blue Cross is property-casualty insurance compa- life and property casualty. Farmington Hills- allowed to leverage its ($2.8 billion nies contends that two of four insur- The coalition comprises Amerisure based property-ca- in reserves and $5.2 billion in as- ance-related bills sponsored by Blue Corp., Citizens Insurance, AAA Michi- sualty insurer. sets) to buy other companies and Cross Blue Shield of Michigan would gan, American Physicians Assurance “They declined use its (provider) network and make grant Blue Cross an unfair competi- our invitation to it available to its workers’ compen- Corp., Auto Owners Insurance, Franken- Fair play: Michigan State tive advantage due to its deep pock- meet.” sation fund,” Gallinger said. “They ets and tax-exempt status. muth Mutual Insurance Co. and Ameri- Fairgrounds officals add Gallinger The coalition could overwhelm the market.” year-round attractions. The Coalition for a Fair & Competitive can Community Mutual Insurance Co. said the bills also could allow the The Blues, because of their large Page 17. Insurance Market opposes the two “I have drafted a complete set of Blues to own subsidiaries that have health-insurance market share, are Power struggle: ITC gets property-casualty bills, House Bills amendments to fix all these things, purposes other than health care or able to negotiate larger discounts state panel OK for power 5284 and 5285, because they would al- but the Blues haven’t responded to line, but township vows See Coalition, Page 22 low the Blues’ for-profit subsidiary, the draft,” said Kurt Gallinger, vice insurance — a point disputed by the fight. Page 21.

These organizations appear in this Sports exec week’s Crain’s Detroit Business: AAA Michigan ...... 3 Accident Fund Insurance Co. of America ...... 3 After 5 Detroit ...... 1 American Community Mutual breaks into Insurance Co...... 3 American Physicians Assurance . . . . 3 Amerisure Corp...... 3 Auto Owners Insurance ...... 3 Barclays Premier League ...... 3 soccer elite – Blue Cross Blue Shield of Michigan . 3 Borders Group Inc...... 4 Central Michigan University ...... 11 Citizens Insurance ...... 3 Clayton & McKervey P.C...... 22 Club Red ...... 24 at the bottom Coalition for a Fair & Competitive Insurance Market ...... 3 BY BILL SHEA Derby County F.C. Rams ...... 3 Detroit Medical Center ...... 1 CRAIN’S DETROIT BUSINESS Detroit Pistons ...... 3 Detroit Synergy ...... 24 Andy Appleby always wanted to own Detroit Young Professionals ...... 1 a major professional sports team, and Dynamic Edge Inc...... 14 Frankenmuth Mutual now he has one. Insurance Co...... 3 It’s just not a very good one, but he Fusion — Detroit Regional Young plans to change that. Professionals & Entrepreneurs . . . . 24 General Sports and Entertainment . . 3 Appleby, chairman and CEO of Garden Fresh Gourmet Inc...... 1 Rochester-based General Sports and Enter- Harley Ellis Devereaux ...... 11 tainment L.L.C., and a consortium of in- IVS Inc...... 24 Industrial Control Repair Inc...... 3 vestors spent $100 Inforum Young Professionals million three weeks Affinity Group ...... 24 ago to buy the strug- Intermediates Council of the Detroit Athletic Club ...... 24 WILLIAM PUGLIANO gling Derby County F.C. John E. Green Co...... 11 Industrial Control Repair is growing because President Paul Gutierrez recognized that it needed to expand beyond its Rams. The last-place K&S Services Inc...... 24 traditional customer base of the Detroit 3. The company fixes robots and other equipment in manufacturing plants. soccer team in the Margaritaville Foods ...... 1 Michigan State Fairgrounds and elite 20-team Barclays Exposition Center ...... 17 Premier League has MiLifeMiTimes ...... 24 won just a single Next Shot Golf ...... 17 Open City ...... 24 match through 26 this PSI Repair Services Inc...... 24 season and faces the Palace Sports and Entertainment . . . 3 Appleby likely prospect of be- Plante & Moran P.L.L.C...... 14 Plastech Engineered Products Inc. . 22 ICR: Go beyond the base ing moved down a level. SmithGroup ...... 12 That didn’t deter Appleby, a former UHY Advisors MI Inc...... 22 Palace Sports & Entertainment and Detroit United Auto Workers ...... 22 Systems Group L.L.C. in Davenport, The Detroit Equestrian Club . . . . . 17 Industrial repair company Iowa, said many of the companies Pistons senior vice president who’s had The Hitting Zone ...... 17 in ICR’s line of business have an- lifelong designs on owning a franchise. The Rehmann Group ...... 22 nual sales of as little as $2 million. He just didn’t think it would be a 124- Virchow, Krause & Co. L.L.P...... 22 Wayne State University grows as Detroit 3 struggle “Most of those companies in the year-old team in the English Midlands. School of Medicine ...... 1 controls and industrial repairs “For me, it’s the culmination of the Zingerman’s ...... 14 BY BRENT SNAVELY business with foreign automakers services industry are almost mom- first part of my career and gives me a CRAIN’S DETROIT BUSINESS such as Honda Motor Co. and Toyota and-pop operations,” said Litt, chance to use every good idea I’ve Motor Sales U.S.A. Inc. who also is president of the Robotic seen,” he said, adding that he began Paul Gutierrez, as well as nonautomo- Industries Association in Ann Arbor. looking into buying a Premier League president and CEO of OntheGrow tive customers such as “The fact that ICR has figured out team 15 months ago. Industrial Control Repair FedEx Corp. how to take that to a larger scale, “English football is not just the BANKRUPTCIES ...... 7 Inc., has his business On the Grow is a Also, about four that’s very unique.” biggest soccer league, it’s by far the BUSINESS DIARY ...... 20 growing, even though feature that will years ago, ICR became Gutierrez, 47, said he recognized biggest league period,” he said. The $1.4 CALENDAR ...... 21 appear in most issues his company’s tradi- the only authorized long ago that his company needed billion Premier League is on par with CAPITOL BRIEFINGS ...... 7 tional customer base, highlighting growing repair center in the to adapt, and he put a plan in place the National Football League in popularity companies, large and CLASSIFIED ADS...... 18 the Detroit 3, has U.S. for Kawasaki Ro- to go after new customers. and skill level, and is broadcast to 202 small. Know of a KEITH CRAIN ...... 8 struggled. countries. company you think botics USA Inc. and “You have to recognize where LETTERS ...... 8 Gutierrez’s Warren- Crain’s should write Nachi Robotic Systems the industry is going,” he said. Appleby, 45, takes the reins from Der- MARY KRAMER...... 9 based company fixes about? Contact Inc. The result: ICR’s “You constantly have to look at by Chairman Adam Pearson, who has OPINION ...... 8 robots and equipment Managing Editor sales have increased your business and say, ‘How am I been seeking new investment since Oc- PEOPLE ...... 20 used in manufactur- Andrew Chapelle at from $16 million to going to improve?’ ” tober and remains as chairman of foot- RUMBLINGS...... 26 [email protected]. ing plants. more than $30 million ICR fixes robots, servo motors, ball operations. SMALL BIZ SOLUTIONS . . . 14 ICR is thriving be- in the past five years. WEEK IN REVIEW ...... 26 See ICR, Page 24 cause it branched out by landing Rich Litt, chairman of Genesis See Soccer, Page 25 DETROIT BUSINESS MAIN 02-18-08 A 4 CDB 2/15/2008 6:53 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS February 18, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Interactive stores a big part of Borders’ turnaround plan

BY NATHAN SKID number of book titles available in- to help with new technology, to CRAIN’S DETROIT BUSINESS store but the e-commerce site will help create comfort,” said Rob add millions of titles to its catalog. Gruen, Borders’ executive vice Ann Arbor-based Borders Group Borders has created business- president of merchandising and Inc. (BGP: NYSE) introduced a sharing arrangements with several marketing. “The goal is to demys- new store design Wednesday that online companies such as Lulu.com tify the whole digital world.” places a heavy emphasis on digital The nation’s second-largest technology and interactive media bookstore chain has seen its stock and is a critical part of the compa- drop from a 52-week high of $23.41 ny’s turnaround plan. The content and on May 25 to recent trading around The bookseller has been “ $10 a share. It closed Friday at weathering a stock price decline, digital $10.04. net losses and is under pressure This trend is partly due to the from competitors, especially its (offerings) competition of online booksellers larger rival, New York-based will such as Amazon.com. Right now, Barnes & Noble Inc. Amazon operates, provides inven- Last week Borders said it plans continue to tory and fulfills orders for Bor- to redesign all 520 stores in the ders.com, and Borders receives a U.S over the next three years, but evolve. This portion of those sales. When it declined to say how much it launches the new Web site by the plans to spend on new stores or is just a end of the first quarter, this rela- the renovations. It plans to open 14 tionship will phase out. of the newly designed stores dur- starting point. For the nine-week holiday shop- ing the next three months. ” ping period ending Jan. 5, Borders As part of its turnaround pro- George Jones, CEO, reported sales of $755.4 million, an gram launched last spring, Bor- Borders Group Inc. increase of 6.5 percent from the ders also slashed the number of previous year. Waldenbooks stores it operates, for publishing services and Shutter- For the quarter ending Nov. 3, sold its United Kingdom store divi- fly.com for photo sharing. Borders reported a net loss of $42 sion and began developing a Web In addition, Borders introduced million, or 71 cents a share, on site it plans to launch by the end of its own in-house produced content, $813.6 million in revenue. That its first quarter. The beta site is which will be shown in stores and compared with a net loss of $36.7 beta.bordersstores.com. available online. million, or 60 cents a share, on rev- The prototype store is a 28,900- “The content and digital (offer- enue of $771 million for the quarter square-foot site on Lohr Road near ings) will continue to evolve. This ending Oct. 28. Saline Road in Pittsfield Town- is just a starting point,” said Bor- In September, Borders an- ship. ders CEO George Jones. nounced its decision to sell 42 su- At the store, a digital center al- Borders has created a program perstores and 28 Books etc. stores lows shoppers to create CDs, titled Border’s Kitchen in which in the United Kingdom. Borders download audio books, publish popular chefs such as Nigella Law- also cut the number of Walden- their own works, print photos and son and Lydia Bastianich give books stores from 652 at the close search their family’s genealogy. demonstrations and interviews of the third quarter 2006 to 521 at “We wanted to keep the book- available to customers both online the end of third quarter 2007. store feel and be a headquarters of and in stores. Nathan Skid: (313) 446-1654; knowledge and entertainment,” “The idea is to have trained staff [email protected] said Ken Armstrong, executive vice president of U.S. stores. Borders hired JGA Inc., a South- field-based retail design and brand strategy firm, to design the space STREET TALK for its new interactive stores. Chairman Ken Nisch said JGA THIS WEEK’S STOCK TOTALS: 30 GAINERS, 33 LOSERS, 10 UNCHANGED focused on Borders’ desire for new CDB’S TOP PERFORMERS 02/15 02/08 PERCENT brand positioning around knowl- CLOSE CLOSE CHANGE edge and entertainment. That 1. Amerigon Inc $19.33 $17.12 12.91 means the store is laid out in logi- 2. Kelly Services Inc 19.71 18.10 8.90 cal groupings. 3. Asset Acceptance Capital Corp. 10.15 9.49 6.96 For example, the cooking section 4. Oxford Bank Corp. 26.60 24.95 6.61 is near culture, which is near 5. Ford Motor Co. 6.45 6.08 6.09 lifestyle. Nisch described this as 6. Energy Conversion Devices Inc. 27.28 25.79 5.78 “neighborhoods leading consumers Agree Realty Corp. 30.06 28.54 5.33 to destination departments.” 7. He said the new design appeals 8. Rofin-Sinar Technologies Inc. 40.53 38.66 4.84 to all ages, even the less technolog- 9. Dearborn Bancorp Inc. 8.23 7.86 4.71 ically savvy. 10. Somanetics Corp. 25.88 24.72 4.69 But in a report issued Jan. 10, CDB’S LOW PERFORMERS 02/15 02/08 PERCENT Deutsche Bank analysts Dave CLOSE CLOSE CHANGE Weiner and Mike Baker said they 1. Masco Corp. $19.15 $21.06 -9.07 are uncertain how helpful develop- 2. Champion Enterprises Inc. 8.22 8.88 -7.43 ing technologies such as e-books 3. Borders Group Inc. 10.04 10.82 -7.21 will be for the bookstore chain, cit- 4. Pulte Homes Inc. 13.58 14.49 -6.28 ing a generational trend away 5. Citizens Republic Bancorp Inc. 12.62 13.36 -5.539 from reading. 6. PSB Group Inc. 8.75 9.25 -5.41 Borders is searching for cre- 7. Valassis Communications Inc. 9.21 9.66 -4.66 ative ways to circumvent the tech- 8. Comerica Inc. 39.20 40.86 -4.06 nology trap, by having staff on 9. Community Central Bank Corp. 6.99 7.27 -3.85 hand to explain new technology to 10. ArvinMeritor Inc. 12.13 12.60 -3.73 its customers. Source: Bloomberg News. From a list of publicly owned companies with headquarters In the new store, Borders expand- in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading ed its digital music library to 2.4 at less than $5 are not included. million songs. It also lowered the DBpageAD.qxd 1/25/2008 10:03 AM Page 1 DBpageAD.qxd 2/11/2008 3:58 PM Page 1

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February 18, 2008 CRAIN’S DETROIT BUSINESS Page 7 Legislature to take up filmmaking incentives LANSING — Incen- vestment in infrastruc- Tourism Committee chairman, Sales tax bill passes Senate come, royalties, dividends, fees and tives to boost state film- ture, such as studios, and said Allen’s office hopes the bills surcharges from the definition of making are about to Capitol for training and hiring will be introduced by the end of A bill to reverse state policy that gross receipts. The Department of start rolling. Briefings Michigan workers. this month at the latest. requires retailers to pay the new Treasury estimates the bill could Lawmakers are look- “We’re hammering “We want to make sure that all Michigan Business Tax on sales reduce state general-fund revenue ing at March 4 as the away at this thing with our i’s are dotted and t’s are tax they collect from customers is by $125 million to $150 million, ac- date for the first joint urgency on all sides,” crossed, but at the same time we on the way to the state House, after cording to a Senate Fiscal Agency House-Senate committee said House Commerce know there’s some urgency here,” passing the Senate last week. analysis of the legislation. hearing on a comprehen- Committee Chairman he said. Senate Bill 1038, sponsored by sive package of bills that Andy Meisner, D-Fern- One unintended consequence of Nancy Cassis, R-Novi, addresses Comings & goings they hope to send to Gov. dale. “We’re still on track the timing is that passage by early an issue that began gaining promi- Samantha Jones, former director Jennifer Granholm’s with our original goal, April would give the state a pack- nence last year after the passage of of government relations at the De- desk by the end of that Amy Lane which is developing best- age of incentives to promote at an the MBT, which is based on a 4.95 troit Regional Chamber, has become month. in-the-nation programs.” April 10-12 film-locations trade percent business income tax and a legislative associate at the Michi- As Crain’s previously reported, Joe Agostinelli, legislative di- show in Santa Monica, Calif., spon- 0.8 percent gross-receipts tax. gan Municipal League. legislators and Granholm have rector for Jason Allen, R-Traverse sored by the Association of Film The bill also would amend the Amy Lane: (517) 371-5355, discussed a 40 percent tax rebate City, the Senate Commerce and Commissioners International. MBT to exclude certain interest in- [email protected] for production costs in Michigan, the highest tax incentive in the country. Bills may also: ■ Provide an additional 2 per- cent credit for production or ex- penditures in “core” communities. Those communities, designated by previous state law, include than more than 100 older cities, town- ships and villages. ■ Provide up-front loans in the amount of the anticipated tax re- HIGH fund. ■ Enact other state loan assis- tance. ■ Set a threshold of $50,000 as the minimum Michigan expendi- ture needed to qualify for the tax breaks, down from the current $200,000. Wages paid to people in- volved in the production could count as qualified expenses, up to $2 million per person. ■ Allow individuals who invest in a Michigan film production to qualify for a Michigan income-tax break for gains realized from the investment. The measure is de- signed to encourage financial par- ticipation by “angel” investors, in- dividuals who traditionally provide seed money to get ven- tures started. Currently, such individuals re- ceive an income-tax benefit for in- vesting in Michigan-based technol- ogy companies. Other ideas that have been ex- plored include incentives for in-

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Page 8 CRAIN’S DETROIT BUSINESS February 18, 2008 OPINION UAW leader’s tough talk merits a listen ast week’s Newsmaker of the Year luncheon was the first in 22 years in which a Crain’s honoree blasted parts of L the auto industry and corporate greed. And received at least three standing ovations. United Auto Workers President Ron Gettelfinger and his union were honored last Thursday for last year negotiating the landmark contracts with the Detroit 3 that could help revi- talize the domestic auto industry. Details of his speech appear on Page 22; video coverage can be found at crainsdetroit.com. Not everyone may agree with Gettelfinger’s point of view, but we welcomed the opportunity to share the perspectives of one of the most powerful voices in our regional economy. If Michigan’s organized labor heritage makes out-of-state companies think twice about investing here, automakers and the union might use the new contracts and documented pro- ductivity gains to show that Michigan workers can compete with the world’s best. Silverdome:Starting over smart LETTERS The Pontiac Silverdome could become Oakland County’s equivalent of the long-vacant Hudson’s building that over- shadowed downtown Detroit. Mayor brings us global shame It took decades for the old landmark store to be demolished, and the site now holds an underground garage, with room to Editor: yourself that he may be doing Crain’s Detroit Business build above. It’s still a site waiting for a purpose, but at least As a lifetime resident of South- more harm than good. welcomes letters to the editor. east Michigan and a longtime I implore you, Mr. Crain, to it’s development-ready. All letters will be considered for strongly urge Mr. Kilpatrick to re- The Silverdome’s fate was sealed in 1996 when its primary reader of Crain’s Detroit Business, publication, provided they are sign immediately as mayor of De- tenant, the Detroit Lions, announced it would move to a new I write you now at a most trou- signed and do not defame troit. He needs to do what is right stadium in downtown Detroit. bling time for the city of Detroit individuals or organizations. and the state of Michigan. and honorable for the city of De- Now, 12 years later, the building remains empty. As Letters may be edited for length I have traveled extensively and clarity. troit and step aside. Crain’s reported Feb. 11, the latest attempt to redevelop the around the world. Almost univer- Eric Dukatz Write: Editor, Crain’s Detroit Troy site ended when the city of Pontiac rejected existing bids and sally, whether I am in Mexico City, Business, 1155 Gratiot Ave., said it would start all over again. Sao Paulo, Toronto, Osaka, Shang- Detroit, MI 48207-2997. Union work ethic poor Though Pontiac has been criticized for bungling this rede- hai, Paris, Chicago, or Hustisford, E-mail: [email protected] Editor: velopment effort over the past 12 years, city officials were wise Wis., I get virtually the same reac- I just read Patrick Devlin’s let- tion when I tell them I am from the to start over if they found no bids to their liking. that brings embarrassment and ter (“Cobo woes not unions’ fault,” Detroit area. They look at me in But when they begin again, they should consider two things. shame, globally, upon all of us Feb. 11) regarding Keith Crain’s amazement and blurt out usually column about Cobo’s woes (“The from Detroit, Southeast Michigan, First, the economy is not the same as 12 years ago. The value something like, “How can you live clock is ticking for the auto show,” and the state of Michigan (“All of the property today is less than before. And even in great in Detroit and Michigan?” I typical- Jan. 7) and would like to address times, it’s not worth the rumored goal of more than $30 million. ly reply by asking them the ques- eyes on the mayor,” and Keith the main problem with the union Crain, “Now it’s time to let the law Second, it may make sense to work with a neighboring gov- tion, “Oh, you’ve traveled to Detroit activities at Cobo Hall and other take its course,” Feb. 4). ernment or the county to develop the property and share the and seen for yourself?” The answer businesses. 99 percent of the time is “No, I’ve While Mayor Kilpatrick says What needs to be understood is revenue. This is a huge project, and some neighboring entities learned about Detroit from televi- “he will never quit” on the people how the union concession works — primarily Auburn Hills — have more experience working sion, radio, or the newspapers.” in the city and he has an “assign- there. I spent six years doing boat on huge projects. At present, Mayor Kilpatrick is ment from God” to work as mayor shows at Cobo and had nothing A fresh start and a realistic framework for success may be embroiled in a very difficult per- of the city of Detroit, he needs to but problems dealing with the in order. Pontiac doesn’t need a white elephant. sonal, political and legal situation be reminded by people such as See Letters, Page 9

KEITH CRAIN: Can spring (and tourists) be far behind? As I was leaving the office the there are plenty of peo- plenty of streets and dri- competition. Not only are we able just how much revenue the pro- other day, I came upon a wonder- ple in Michigan who veways to plow. Noth- to attract folks from all over the posed casinos can generate, but ob- ful discovery. It was still light out dearly love the winter ing’s perfect, but at least Midwest, but our best prospects viously someone thinks it’s quite a well after 5 o’clock. months, so for them, there are some ways to happen to already live in our state. bit. Earlier this month, the famous they have plenty of offset a quiet time for I wonder if we spend enough of our They call it “revenue,” but it’s ground hog in Pennsylvania unfor- weeks left to enjoy. some businesses. resources on our own citizens or if really a tax on our residents. How tunately saw his shadow, meaning Our four seasons also And what an opportu- much can our residents afford to we’ll have six more weeks of win- we are always looking for folks give seasonal businesses nity for tourism. It has to spend and lose on gambling? It ter. I could gladly accept that, but a chance to create a outside our state as our primary be our greatest resource would seem that a casino out near the trouble is, I know it’s going to counter-business for customers. If we are, then we’re today. As the national our airport would be the biggest be longer than six weeks. Still, the each seasonal one. If you missing a big market. economy turns down- end will soon be here. sell motorcycles, for ex- I can understand the reluctance threat to our downtown casinos. Michigan summers are wonder- ample, then you can always sell ward, giving people the of our three Detroit casinos to al- It’s all part of the attraction we ful, and having the opportunity to snowmobiles in the winter. If you opportunity to travel short dis- lowing two more casinos within a call Michigan. I guess we could take advantage of northern Michi- happen to be in the landscaping tances to vacation sites certainly stone’s throw — Romulus and Port call it fish (for those who love the gan makes them even better. And business, then there are always gives Michigan a leg up on the Huron — of Detroit. I have no idea outdoors) and chips. DETROIT BUSINESS MAIN 02-18-08 A 21 CDB 2/15/2008 6:08 PM Page 1

February 18, 2008 CRAIN’S DETROIT BUSINESS Page 21 CALENDAR ITC gets state panel’s OK for TUESDAY FEB. 19 M&A FINALISTS, WINNERS TO Engineering & Technology Job Fair. 2-7 BE HONORED MARCH 13 p.m. The Engineering Society of De- Crain’s Detroit Business and the power line; township vows fight troit, Crain’s Detroit Business and the Association city of Southfield. A job fair showcas- ing some of Michigan’s largest engi- for Corporate neering, technology and management BY AMY LANE posed by ITC, and “would have had a lot less local im- corporations. Southfield Pavilion. $15. Growth will recognize CAPITOL CORRESPONDENT pact.” He said that in some instances residents and Contact: Leslie Smith, (248) 353-0735, businesses face having an ITC line in front of their ext. 4152. the best LANSING — ITC Holdings Corp. has cleared a poten- deals and property and a Detroit Edison Co. line in the rear. dealmakers tial state hurdle in its construction of a 21-mile over- ITC says it presented five route alternatives to the BusinessKillers. 6-8 p.m. Fusion. Ursula of 2007 at a head transmission line through parts of Livingston PSC and that the commission approved a route that Scroggs, CPA, along with Marc strolling and Oakland counties. was modified to reflect some township concerns, in- Wander, WJR AM 760 legal expert, and dinner to be But a new twist could come this week. Hartland William Krause. Detroit Regional cluding poles that will hold both ITC’s and Edison’s held 5-8 p.m. on March 13. Chamber Offices. Free with RSVP. Con- Township, which wanted ITC to bury the portion of wires. ITC also asserts that transmission lines alone tact: Dennis Richardson, (248) 208-2799. Finalists for the Best Deal and line running through the township, is expected at a do not significantly influence property value. Dealmaker of the Year categories Tuesday board meeting to discuss its next steps after Eberwein said ITC places transmission lines above for the first Crain’s M&A awards the Michigan Public Service Commission denied its re- ground whenever possible because underground WEDNESDAY are listed below. Winners will be quest to reconsider ITC’s clearance to construct the announced during the event. lines are less efficient, more costly, pose unique main- FEB. 20 $17.2 million line. tenance issues and can be disruptive to install. The For details, visit Overall, the line proposed by ITC subsidiary ITC- Economic Outlook Breakfast. 7:30-9:30 www.regonline.com/08deals. company said burying the line through Hartland Transmission will run from a substation by Beck Road Township would have more than doubled the cost of a.m. Dearborn Chamber of Com- The finalists are: merce. U.S. Rep. John Dingell. Dear- in Genoa Township, through portions of Brighton, the project, to about $40 million. born Inn. $30 members, $40 others. Best deal, $25 million and under: Osceola and Hartland townships, ending at the Gener- The PSC approved a certificate for construction last Contact: www.dearbornchamber.org. BlackEagle Partners, Bloomfield al Motors Corp. proving grounds in Milford. May, after which the township and area home owners Hills. $23 million purchase of Cheryl Eberwein, ITC senior communications spe- requested a rehearing. In part, the township contends Rockford Products, Rockford, Ill. THURSDAY cialist, said area population growth and development that the PSC has not provided adequate grounds for Caparo Group, London. $15 has strained existing infrastructure to the point that pre-empting the local ordinance. FEB. 21 million purchase of Voestalpine the one existing high-voltage transmission line, “in- Polynorm Inc., Novi. But in its Jan. 29 order denying a rehearing, the Third Thursday Networking Event. 4-6 stalled decades ago when electricity demands were commission said that under state law it holds “pre- Edcor Data Services, Pontiac. p.m. The city of Southfield, Southfield significantly lower,” is inadequate to meet communi- eminent authority over the siting of new transmis- Area Chamber of Commerce and the Purchase of Benefitsource, ties’ needs. Monroe. sion lines and related cost recovery issues.” Engineering Society of Detroit. Sky- But in Hartland Township, which enacted in 2006 The PSC noted that the majority of the additional line Club, Southfield. Free with cash Best deal, $25 million-$100 million: an ordinance requiring new utility lines and wires to costs of burying the Hartland Township portion of bar. Contact: Rochelle Freeman, (248) be constructed underground, the line has drawn fire 796-4161. NSF International, Ann Arbor. the line would be assessed on utility customers out- $43 million purchase of United from some residents who have cited concerns about side the township. Costs of such projects are built Kingdom-based Checkmate health risks, property depreciation and other factors. into the transmission rates that ITC charges the local MONDAY International plc. Hartland Township fought to require ITC to bury the utility, which then passes the costs on to all its cus- FEB. 25 Strength Capital Partners, lines in keeping with the ordinance, or, as an alterna- tomers. Birmingham. $80.5 million tive, take a different overhead route. A state administrative law judge has recommend- Technological Status Quo-The Oxy- purchase of PM Construction & Eric Schneidewind, who represents the township moron of Our Times. 11:30 a.m.-1:30 ed that the PSC deny approval to construct that line, Rehabilitation, rePipe-Texas and and is a partner with Varnum, Riddering, Schmidt & citing insufficient public benefits to justify the con- p.m. Detroit Economic Club. Gary rePipe-Calif. Shapiro, president and CEO, Con- Howlett L.L.P. in Lansing, said the township is disap- struction and inadequate demonstration that the pro- sumer Electronics Association. Troy Wynnchurch Partners, pointed that the PSC did not support the alternate posed route is reasonable. A final decision on that Marriott. $40 members, $50 guests of Bloomfield Hills. Purchase of GDX overhead route that he said would have avoided high- Automotive, Farmington Hills, and case is pending at the commission. members, $75 nonmembers. Contact: ly populated areas, been equal in cost to the route pro- Amy Lane: (517) 371-5355, [email protected] (313) 963-8547. Metzeler Automotive, Madison Heights, to create Henniges COMING EVENTS Automotive. Best deal, more than $100 million: 2008 Black Business Conference. 8 a.m.-1:30 p.m. Feb. International Automotive 26. Chase, the U.S. Components Group, Dearborn. Small Business Acquisition of the carpet and Administration acoustics business of Collins & and the Alpha Phi Aikman Corp. for $126 million. Alpha Fraternity Noble International Ltd., Troy. Inc. The Rev. Wen- $300 million purchase of Tailored dell Anthony, pres- Blank Arcelor, a subsidiary of ident of the Detroit Luxemborg-based Arcelor SA. branch of the NAACP. Includes Valassis Inc., Livonia. $1.2 four workshops. billion purchase of Windsor, Conn.- Anthony Fellowship based Advo Inc. Chapel, Detroit. $30. Contact: (313) 256-0576. Dealmaker of the Year: Arthur Dudley, shareholder, State of Wayne County 2008. 6:30-7:30 Butzel Long, Detroit. p.m. Feb. 27. Office of the Wayne Huron Capital Partners, Detroit. County Executive. Wayne County Ex- Seneca Partners, Birmingham. ecutive Robert Ficano. Charles H. Winners and the finalists will be Wright Museum, Detroit. Free. Con- profiled in the March 24 issue of tact: Deanna Burtka, (313) 224-0340. Crain’s.

Basic Black: The Essential Guide for velopment Forecast. 11:30 a.m.-6:30 p.m. Getting Ahead at Work (and in Life). March 6. The Birmingham Bloomfield 11:30 a.m.-1:30 p.m. Feb. 28. Inforum Chamber. With government and busi- and the Adcraft Club. Cathie Black, ness representatives from the 5 B com- president, Hearst Magazines. San munities and Oakland County Execu- Marino Club, Troy. $40 members, $50 tive L. Brooks Patterson. Townsend others. Add $10 after Thursday and at Hotel, Birmingham. $85 members, $95 the door. Contact: (877) 633-3500. others. Contact: (248) 644-1700.

Is the Michigan Business Tax Friend Best Practices from the Best-Man- or Foe? 1:15-5:15 p.m. March 4. The aged Nonprofits. Making the Most of Wayne Law Review and Wayne State Limited Resources: Volunteers, University Law School. Includes three Donors, and Corporate Support, 8:30- panel sessions: “Overview of the 11:30 a.m. March 10. Crain’s Detroit MBT: What changes and why now?” Business, DTE Energy Foundation, “Incentivizing Doing Business in Lawrence Technological University Michigan,” and “Consequences of a Center for Nonprofit Management, Gross Receipts Levy within the MBT.” Association of Fundraising Profes- Spencer M. Partrich Auditorium, sionals Greater Detroit Chapter, and Wayne State University Law School, the Detroit Executive Service Corps. Detroit. Free. Contact: (313) 577-3939. $35 before March 5, $45 after. Lawrence Technological University, Regional Economic & Community De- Southfield. Contact: (248) 478-6076. DETROIT BUSINESS MAIN 02-18-08 A 22 CDB 2/15/2008 6:16 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS February 18, 2008 UAW chief wants Plastech to survive, be stronger

BY BRENT SNAVELY “We have a very good relationship with CEO Julie Brown CRAIN’S DETROIT BUSINESS and her team at Plastech. We’ve worked very well together over the years,” Gettelfinger said. “Julie’s been very, very United Auto Workers President Ron Gettelfinger said last open with us … and that’s why we hope we can sort through week that the union is hoping Plastech Engineered Products this issue at Chrysler.” Inc. survives Chapter 11 bankruptcy and emerges as a reor- Gettelfinger was preparing to meet Friday with Chrysler ganized company. Vice Chairman and President Thomas LaSorda and sepa- About 70 percent of Plastech’s 7,700 employees are union rately with Vice Chairman and President Jim Press. Plas- members. Many of the company’s 35 plants, including two in tech, Gettelfinger said, was among the topics. Kentwood and one in Warren, were organized in recent Chrysler vehemently denies that it caused Plastech’s years, and some were organized under neutrality agree- bankruptcy case. During court testimony last week, Douglas ments with Plastech. Doran, director of interior procurement, said Chrysler had “We would like to see them come out of bankruptcy on a been monitoring Plastech’s financial condition for more united front from the standpoint of being a stronger corpo- than a year through Southfield-based BBK Ltd. ration,” Gettelfinger said Thursday, when he was honored BBK told the automaker that Plastech was having trouble as Crain’s Newsmaker of the Year for 2007. paying suppliers and had violated agreements with its But that may be difficult. The future of Dearborn-based lenders. NATHAN SKID/CRAIN’S DETROIT BUSINESS Plastech is hanging in the balance this week as U.S. Bank- “BBK indicated that they were insolvent,” Doran said. Ron Gettelfinger would strengthen labor laws. ruptcy Judge Phillip Shefferly decides whether Chrysler Doran said Chrysler has paid for about $167 million worth has the right to pull its tooling and manufacturing equip- of tools — stamping dies, injection molds, fixtures and other Gettelfinger rails against decline of middle class ment out of Plastech factories. equipment — and acknowledged Plastech has an additional United Auto Workers President Plastech, like several other major North American plas- $13.4 million of equipment that Chrysler has not paid for. Ron Gettelfinger said Thursday that tics companies, has been whipsawed by higher raw materi- Chrysler twice participated in bailout agreements with America is in danger of becoming a als costs and lower customer vehicle production and had other customers over the past year, including in January country with a small, elite class of the been struggling financially for at least a year. when it contributed $10.7 million to help bail out Plastech. rich and a giant working class that is The Dearborn-based plastics supplier filed for bankruptcy Chrysler attached conditions to each bailout agreement underpaid and underprivileged. protection on Feb. 1 after Chrysler canceled its contracts granting Chrysler the right to relocate its tools at any time. He spoke at the Hyatt Regency in with the supplier and demanded the tools. Days after the January bailout agreement was signed, Dearborn as Crain’s Newsmaker of Shortly after Plastech ceased production, Chrysler was Plastech contacted Chrysler, saying it needed assistance yet the Year for 2007. Crain’s selected forced to shut down four assembly plants and said it would again. CRAIN’S VIDEO Speech highlights, need to shut down more if Plastech didn’t resume produc- Meanwhile, Plastech’s production quality was falling. In Gettelfinger for brokering last year’s interview at www. landmark labor contracts with Gen- tion. About $190 million of Plastech’s sales are to Chrysler. 2007, Chrysler issued 449 “quality tickets” to Plastech for crainsdetroit.com On Friday, the two companies reached an agreement for “non-conforming material.” Chrysler considered this a ma- eral Motors Corp., Chrysler L.L.C. and Plastech to supply parts through Feb. 27. terial breach of its purchase agreement. Ford Motor Co. Shefferly conducted two days of hearings last week and “What was material was the frequency and the number of Gettelfinger’s solution: Strengthen labor laws that pro- said he plans to issue a decision on the tooling issue tomor- incidents,” Doran said. tect American workers and make sure labor, management row. Gettelfinger said the UAW is on Plastech’s creditors Brent Snavely: (313) 446-0405; [email protected] and consumers work together to solve the nation’s prob- committee and is watching the case closely. Automotive News contributed to this report. lems.

The Founders Junior Council of the Detroit Institute of Arts cordially invites you to attend its eighth annual masquerade ball Coalition: Blues’ bills called unfair March 8, 2008 ■ From Page 3 2310 Park Avenue, Detroit than other insurers. Those dis- the impact of the bills for the counts, the coalition contends, coalition. Louis XVI Courtier would create an unfair compet- Blue Cross could use “Blue Cross could use their itive advantage if the Blues “ tax-exempt dollars to play with $125 $75 were able to pass them along to their tax- exempt dollars and buy hospitals, clinics, auto 7pm - Midnight 8pm - Midnight the Accident Fund or other in- repair shops, and set up net- surance subsidiaries. to . . . do things we can’t works to do things we can’t VIP General Admission The Accident Fund current- compete with,” Morante said. $100 at the door ly holds 26 percent of the work- compete with. However, Mark Cook, Blue ers’ compensation market in ” Cross vice president of govern- Michigan, up from 12 percent Teri Morante, Citizens Insurance mental affairs, said HB 5284 in 1996. only allows Blue Cross to pur- Elizabeth Haar, president and CEO of the Accident chase or start health care or insurance-related com- Fund, said HB 5284 specifically prohibits the Accident panies. “It has to be related to our purpose,” he said. Fund from using the Blue Cross provider network for “Blue Cross cannot buy just any type of company.” workers’ compensation. However, Gallinger said the Wolfram said his reading of the bill is that it does legislation provides only that Blue Cross cannot subsi- not limit Blue Cross from acquiring or operating any dize the Accident Fund. However, if the Blues are will- type of business. “They can buy any company for any ing to put specific language in the bill “to prohibit net- purpose,” he said. work use, that removes one of our problems with it.” The second bill, HB 5285, would allow the Accident The coalition also opposes Blue Cross using its un- Fund to branch off into other such insurance lines. taxed profits to buy additional companies for the Ac- In the coalition-sponsored study, Wolfram conclud- Afterglow at Centaur cident Fund, Gallinger said. ed that allowing Blue Cross to use its tax-exempt sta- D.J. Mike Anthony Haar said the Accident Fund will not rely on Blue tus to purchase or start additional companies could Cross’ reserves or surpluses to purchase new compa- lessen competition and negatively affect Michigan’s Cocktails nies. However, she said there has been at least one in- economy. and Hors d’ouevres stance in which Blue Cross has bought a company for “As companies leave the Michigan market because the Accident Fund – the 2007 acquisition of CompWest of the unfair advantage granted the Blues, there will Formal Attire or Insurance Co., San Francisco. be fewer jobs, less economic growth and increased Haute Couture de Louis XVI prices, all of which result from a lack of a fair compet- Complimentary Valet Parking So far, both bills have flown under the radar in hearings in the state House and Senate, said Teri itive market,” Wolfram wrote. To purchase tickets call Morante, assistant vice president in the office of the But Cook said the bills would enable the Blues to (313) 833.3737 or online general counsel with Citizens Insurance in Howell. expand employment opportunities in Lansing, where at www.foundersjuniorcouncil.org The bills are part of a package that also includes HB the Accident Fund is building a new headquarters for 5282 and 5283, the two individual-market health care its 675 employees, and ultimately help keep health reform bills that have been the subject of heavy me- care premiums as low as possible. Sponsored by: dia coverage and legislative attention. Haar said entering other lines of insurance could increase competition by allowing the Accident Fund Bacardi International, Ltd. One of the provisions of HB 5284 would allow Blue to compete more effectively against other property- Crain’s Detroit Business Cross to create subsidiaries that could purchase any casualty companies. “Our competitors can offer busi- American Surgical Centers type of existing business or start new ventures not re- Photo courtesy of Michell Danel lated to health care, said Gary Wolfram, an econom- nesses a variety of insurance products and bundle ics professor at Hillsdale College and president of the them together for a better package pricing,” she said. Hillsdale Policy Group. Wolfram prepared a report on Jay Green: (313) 466-0325; [email protected] DETROIT BUSINESS MAIN 02-18-08 A 23 CDB 2/15/2008 6:05 PM Page 1

February 18, 2008 CRAIN’S DETROIT BUSINESS Page 23 NHL’s Lightning sale back on for Palace BY BILL SHEA place by a May 29 deadline, Wilson CRAIN’S DETROIT BUSINESS said. The National Hockey League’s board of governors would then re- The Hollywood producer vying view the deal and vote on it. to buy the Tampa Bay Lightning from A message left Friday with Auburn Hills-based Palace Sports & Koules’ office was not returned. Entertainment is financing much of Movie producer Mark Burg and the $206 million deal — for now — California financier Russell Belin- out of his own pocket. sky are the other major investors The sale of the hockey team was in Koules’ ownership group, OK announced late Wednesday. Hockey L.L.C. Wilson said addition- Oren Koules, the Los Angeles- al investors are expected to join. based producer of the “Saw” horror Palace Sports is owned by films and the CBS comedy “Two and William Davidson, the auto glass A Half Men,” was forced to find new tycoon who also owns the Detroit financing after Paris-based Societe Pistons. He bought the Lightning in Generale reportedly declined to lend 1999 for $98 million and has since him up to $110 million. The bank reportedly lost $80 million on the made headlines recently after re- team. The Lightning, which won porting $7.1 billion lost from unau- the Stanley Cup in 2004, is in last thorized trades, and it shuttered its place in the Eastern Conference’s U.S. sports-lending division. Southeast Division. “He had to put up more money The deal to sell the Lightning in- to finalize this deal. This is coming cludes the team, its lease agree- out of his pocket,” said Tom Wil- ment with Florida’s Hillsborough son, president of Palace Sports. County, which owns the St. Pete Wilson said Koules did not yet Times Forum where the team plays, have firm deals in place, but “he and 5.5 acres of adjacent land. has gotten very comfortable with New York-based Galatioto Sports other banks.” Wilson said Koules Partners L.L.C. was Palace Sports’ fi- has made an initial payment of nancial adviser on the sale and De- “several million dollars” to secure troit-based Dykema Gossett P.L.L.C. the deal. was the legal adviser. Palace Sports is confident that Bill Shea: (313) 446-1626, Koules will have financing in [email protected]

Payments: WSU to fight ■ From Page 1

tract,” Frank said. “Mike Duggan Michigan, Michigan State Univer- feels like they don’t like something sity and Hurley Hospital in Flint. in the contract and we are reduced Even when both payment sources by $12 million? To me, this is un- are added, doctors still are paid be- fair.” low costs, he said. DMC President and CEO Mike Frank said at least 19 other Duggan told Crain’s that a legal re- states make “enhanced payments” view DMC paid for concluded that to selected providers for care to the $19 million in payments — Medicaid patients. along with separate state Medicaid While Frank said the DMC’s de- payments of $17 million to treat cision to cut payments was imple- the same low-income patients — mented without warning, Duggan could violate federal laws on exces- said WSU was warned. sive compensation to physicians. “We offered to sit down on nu- The review was conducted by law merous occasions, and they de- firm Foley & Lardner in Detroit. clined,” Duggan said. “We needed to protect our- WSU General Counsel Louis selves,” Duggan said. Lessem said he was informed by Frank said WSU plans to invite DMC lawyers on Jan. 31, two days the DMC to participate in the legal after the DMC board approved the review. Who would conduct the re- plan to cut the payments, which view is still under consideration. DMC receives from the state and Duggan said he is willing to shares with WSU under contract. meet with WSU to discuss the is- Keith Crain, editor-in-chief of sues surrounding the payments, Crain’s Detroit Business, is a mem- but he declined further comment. ber of the DMC board. Duggan said the payment cut to Frank said WSU also has asked WSU was made because the med- that the money in dispute be ical school last September began placed in an escrow account. receiving enhanced Medicaid pay- Lessem said DMC’s Feb. 1 letter ments from the state to care for stated that the hospital would “re- uninsured patients. serve the funds … I don’t know “WSU is getting $17 million what reserve means. I asked them more from the state and $10 mil- to put the money in escrow.” Dug- lion less from DMC in Medicaid gan declined to comment. payments,” he said. “They are The funding cut could affect re- still $7 million ahead.” search faculty physicians conduct James McCurtis, a state Medic- at DMC, WSU and other institu- aid spokesman, said the payments tions, Frank said. “We use clinical to WSU doctors are not “double dollars to support the unfunded payments” and do not violate fed- portion of research,” he said. eral laws. Medicaid also pays extra “These cuts can affect research.” money to doctors who treat low-in- Jay Greene: (313) 446-0325; come patients at the University of [email protected] DETROIT BUSINESS MAIN 02-18-08 A 24 CDB 2/15/2008 6:06 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS February 18, 2008

Groups: Calendars getting crowded DETROIT-AREA GROUPS THAT CATER TO YOUNG PROFESSIONALS Detroit is home to more than 30 distinct groups with a bent toward young ■ From Page 1 professionals, though many are profession-specific or defined in part by a a tentative date of March 20 to avoid the conflict. are planned.” cultural heritage. Groups with a general-purpose focus include: But the DYP event still conflicts with “Third Christianne Sims, director of Fusion and a co- Fusion - Detroit Regional Young Dues: None for the group, but $150 Thursday,” the monthly social networking and organizer of the newly formed Detroit Young Pro- Professionals & Entrepreneurs in annual dues for Inforum, the charity donation event of Detroit Synergy at Z’s Vil- fessionals’ Leadership Council, said she has been Members: 100 paid, 600 e- parent organization. la on Piquette Street in Detroit. in contact with at least 30 local groups and believes newsletter subscribers. Web site: www.inforumypag.com Also this week, young professionals will have to the recent overlapping meetings and conflicts are Focus: Launched last spring to weigh the “Business Killers” panel discussion accidental and caused by a shortage of meeting promote the region as a place to live, Detroit Synergy event Tuesday evening hosted by Fusion at the De- dates. work and play, as well as to serve as Members: 5,200 troit Regional Chamber offices against the February “Sometimes, because of a featured speaker’s a connector among young Focus: Volunteer organization that meeting of Open City, a group of mainly young en- schedule or the availability of your location, your professionals, business and the trepreneurs and small-business owners who meet community. promotes Detroit culture, businesses group may only have certain days it can choose,” and various local organizations and monthly at Cliff Bell’s restaurant on Park Avenue she said. “And you tend also to have more work- Dues: $48 per year if employed by a seeks to “generate positive to exchange ideas. able meeting nights. Traditionally, Tuesday and chamber member, $65 otherwise. perceptions” by fostering diversity Detroit is now home to at least 30 distinct orga- Thursday are the most popular or work the best Web site: www.fusiondetroit.org and regional vision. nizations and companies with a bent toward young for meetings, for some reason.” Club Red Dues: None. Many projects and group professionals, and many are less than three years events involve a cost. The Leadership Council will have a monthly Members: Eight members of old. meeting this week, Sims said, but she does not ex- Web site: www.detroitsynergy.org Some group organizers admit the recent crop of leadership council. A recruitment pect the group to discuss meeting conflicts or over- initiative is pending. young professional and creative-class gatherings lapping efforts at that time. It may come up, she Focus: Initiative of the American Red Intermediates Council of the may inadvertently generate schedule conflicts and added, as a topic at the quarterly meeting in April Cross–Southeastern Michigan Detroit Athletic Club events competing for the same target audience. when the council may have more time to address chapter. Offers social event Members: 300, led by a seven- “We don’t have YP battles. There may be a senti- ways that their member groups can improve coop- networking and volunteer member council. ment or a perceived element that we’re falling into eration. opportunities to those under 40. Focus: Plans professional and social competition. But that perception is not fair,” said Wipp, 36, an attorney in Milford, said she first Dues: None. events and promotes club Eddie Lee, co-organizer of Detroit Young Profes- met Lee, 25, after the two made contact online via Web site: www.detroitredcross.org or membership for young professionals sionals and communications planner at Team De- under 31 years old. Facebook, a social networking Web site. www.myspace.com/detroitredcross troit, the interagency advertising cooperative in Dues: None for group, but DAC “We’re definitely a Web 2.0, multimedia kind of Dearborn whose major client is Ford Motor Co. “At After 5 Detroit membership required. organization in that respect. It all originated on- the end of the day, if our goal is to build up and en- Members: No membership structure. Web site: www.thedac.com liven the city, then we’re all on the same page.” line,” Lee said. “And volunteerism is one of the Estimated 30,000 monthly Web Lee and DYP vice chair Nicole Wipp said they unique components for us. We didn’t just want to visitors. MiLifeMiTimes.com only became aware of the schedule conflict with be the group that raises funds or refers people to Focus: Online community and Web- Members: Estimated 17,000 After 5 Detroit’s event last week. Both events fea- an agency that’s building a house. We want to actu- based event guide and calendar readers. ture a panel discussion of young executives or ally be involved and go help to build that house. designed to be a reference for Focus: Online community. Markets events, hot spots, photos and business owners on the advantages and challenges That’s partly what we’re about.” itself as a place to post and discuss Lee said the group is trying to secure more ca- articles of interest to young news, links, events and musings of being entrepreneurial in Southeast Michigan. professionals. A for-profit company pacity for its inaugural public event after seating about the arts and local “cool Kerry Doman, founder and CEO of after5de- funded by Web advertising. companies.” space sold out last week, and the event is “basical- troit.com, said she decided to reschedule her Dues: None. Dues: None. group’s event for a tentative March 20 date after ly a more formal version” of the group’s informal Web site: www.after5detroit.com Web site: www.milifemitimes.com learning of the conflict with DYP and consulting meetings that began last November. with others involved in the planning. (Crain’s De- Panelists at the leadership summit include Den- Inforum Young Professionals Detroit Young Professionals nis Archer Jr., president of Archer Corporate Ser- Affinity Group troit Business is a co-sponsor of the After 5 panel Members: 50 on membership roster. discussion and gathering and also has helped to vices and publisher of Ambassador magazine; Jen- Members: 40-50. Approximately 180 400 in online community. on distribution list. promote other young professional gatherings nifer Giering, president of the Dearborn Chamber Focus: Personal professional sponsored by other groups.) of Commerce; Eric Cedo, president of BrainGain Focus: Geared to young professional development, social networking and “We don’t want to take away from the support of Marketing and past executive director of Create women with events to serve civic service opportunities. professional, educational, Detroit; and radio personality SunShyne of WJLB- any organization that works in a positive way to philanthropic and social needs. Soon Dues: To be determined. attract young professionals,” Doman said. “It’s FM 98. to be renamed Young Professionals Web site: merely a coincidence that our event happens to be Chad Halcom: (313) 446-6796, of Inforum. www.detroityoungprofessionals.org the same night, and that’s never how our efforts [email protected].

ICR: Move beyond the customer base Company was born from a ■ From Page 3 cathode ray tubes and welding con- “We declined the GM contract be- recruitment counteroffer trols. Throughout the 1990s, ICR grew ICR’S ANNUAL SALES cause we could not meet their pricing beyond its roots as a welding equip- terms. We did not even come close,” Paul Gutierrez, 47, grew up on Detroit’s east side help- $25

ment repair company into a company $18 ▲ Gutierrez said. ing his mother do minor repairs at the houses she rent- million▲

managing plantwide asset-manage- $32 ICR’s competitors are mostly in the ed and mowing lawns for extra cash. $12 million▲ ▲

ment programs for automakers. $10 million $28 million* Midwest and include K&S Services Inc. He is now president and CEO of Warren-based Industri-

Asset-management programs call for million ▲ million in Southgate and PSI Repair Services Inc. ▲ al Control Repair Inc. — an industrial equipment repair a company like ICR to place one or and IVS Inc., both based in Livonia. company with about 125 employees. more full-time employees at the cus- Founded in 1982, K&S Services is “I always thought that if ever I was going to have my tomer’s plant to monitor equipment among the largest manufacturing own business, I would be into something like working and even predict when parts are near- ’02 ’03 ’04 ’05 ’06 ’07* equipment repair companies in the with my hands,” Gutierrez said. ing the end of their life spans and need business. K&S is about three times the While in high school, a classmate introduced Gutier- *Estimated. to be repaired. size of ICR and fixes a broader range of rez to an electronics repair program at Rets Electronic But by about 1998, Gutierrez said he “Business Asset Manager.” The compa- equipment and offers services for nu- School. After completing the two-year program at Rets, realized his company needed to evolve ny began developing the program a merous industries. President Ken Gutierrez began working as a field service technician again. At the time, ICR’s sales were al- year ago, but Larry Obermesik, vice Kirchner declined to comment. for Bell & Howell and later obtained his business degree most exclusively with the Detroit 3. president of information technology, Genesis’ Litt said more companies from Siena Heights University. But deciding to expand beyond them said he’s been kicking the idea around want to repair their robotic equipment By 1992, Gutierrez was leading a small welding con- posed a challenge. for about seven years. rather than replace it, especially in the trol repair division for Square D when it was acquired by “If you only know the automotive, The system gives ICR the ability to automotive industry. Schneider Electric SA, based in Rueil-Malmaison, France. and you know nothing outside, how do manage and track equipment repair cy- George Ternes, facility engineering After the acquisition Schneider decided to close its you diversify?” Gutierrez said. cles across multiple plants and will manager for Chrysler L.LC.’s Warren Detroit operations, but tried to recruit Gutierrez to a job He started by hiring the best sales help to further reduce repair times and Stamping plant, said Chrysler’s busi- in Raleigh, N.C. and business managers he could afford. costs. ICR is in final testing of the soft- ness with ICR has grown over the past “I have a counteroffer for you,” Gutierrez, then 32, ICR landed its first contract to man- ware and plans to launch the program 10 years. Before ICR, Ternes said, says he told boss. “There is some equipment here that is age repairs at the Toyota plant in soon. It expects to begin with six to Chrysler had bad experiences with oth- older, obsolete equipment. … How about you just let me Princeton, Ind., in 2006. This year, the eight customers and track the equip- er repair companies. keep that product and let me open my own shop?” company will take over asset-manage- ment repairs of about 30 plants. “We went through two or three com- Schneider executives agreed, and in 1992 ICR was ment at four more Toyota plants. ICR also has dealt with setbacks. panies in three or four years,” Ternes born as an authorized repair center for resistance weld- Today, about 65 percent of sales are Last year, it lost its contract with said. “There was a lot of black magic ing equipment. from outside the Detroit 3. General Motors Corp., ending a 10-year going on.” “My goal when I first started the company was I want- ICR is also about to launch a new, relationship that included repair work Brent Snavely: (313) 446-0405; bsnave- ed to be the weld-control king,” Gutierrez said. Web-based software system called at 10 to 12 plants. [email protected] — Brent Snavely DETROIT BUSINESS MAIN 02-18-08 A 25 CDB 2/15/2008 6:17 PM Page 1

February 18, 2008 CRAIN’S DETROIT BUSINESS Page 25 Salsa: Garden Fresh cooks up Margaritaville deal www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] tequila and margarita mix. seafood line went from zero to $50 million in taville was going to get into the business — EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] Zilko said he began pursuing a deal with about three years and believes Garden Fresh with or without Garden Fresh — and it’s better MANAGING EDITOR Andy Chapelle, (313) 446- Margaritaville after he heard the company was products have the potential for similar growth. to compete with yourself than with another 0402 or [email protected] talking to Garden Fresh’s competitors about “We are selling it to our best buyers, and manufacturer. ASSISTANT MANAGING EDITOR/FOCUS Jennette Smith, (313) 446-1622 or [email protected] creating a line of salsa. based on the response we received to date and Plus, the contract gives Garden Fresh the BUSINESS LIVES EDITOR Michelle Darwish, (313) Zilko called Margaritaville President Tom the kind of volume we are doing … when we ability to create different recipes for Margari- 446-1621 or [email protected] Keane, hoping to get five minutes on the phone COPY DESK CHIEF Gary Piatek, (313) 446-0357 add it all up … it could be a $40 million to $50 taville than the ones it sells under the Garden or [email protected] and persuade him to set up a million piece of business for Fresh label. GRAPHICS EDITOR Nancy Clark, (313) 446-1608 meeting. They talked for 45 min- us,” Zilko said. Garden Fresh already sells 22 versions of re- or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 utes. Through the first nine frigerated salsa, 10 types of hummus, two types or [email protected] From the outset, Keane was He treats every months of 2007, Garden of guacamole and nine types of tortilla and pita DATA EDITOR Anne Marks, (313) 446-0418 or impressed with Garden Fresh’s “ Fresh sold $14.3 million in chips. [email protected] WEB GENERAL MANAGER Alan Baker, (313) 446- products and founder and Presi- batch of salsa today salsa and held 19.8 percent For Margaritaville, Garden Fresh has devel- 0416 or [email protected] dent Jack Aronson’s enthusiasm market share of the fresh oped six new salsas, as well six chip dips, five WEB EDITOR Kevin Hill, (313) 446-0473 or for the business. with the same kind salsa products in the U.S., types of hummus and four varieties of tortilla [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, “He treats every batch of salsa according to data from Infor- chips. (313) 446-0403, [email protected] today with the same kind of care of care as when he mation Resources Inc., a Aronson, still a cook at heart, said he still has MULTIMEDIA REPORTER Nathan Skid, (313) as when he was making it one Chicago-based provider of as much fun today creating new recipes as he 446-1654, [email protected] was making it one EDITORIAL SUPPORT Anita Duncan, (313) five-gallon pail at a time in his research for consumer did when the company got started. 446-0329; Joanne Scharich, (313) 446-0419 restaurant,” Keane said. packaged goods. Exactly 20 years ago today, on Feb. 18, 1988, NEWSROOM (313) 446-0329, FAX (313) 446- five gallon pail 1687 TIP LINE (313) 446-6766 Keane said he was also im- Garden Fresh is buying Aronson and his wife, Annette, registered their pressed that Aronson cut short a machinery for its Ferndale restaurant, ClubHouse Barbecue, with the state REPORTERS at a time. Brent Snavely, senior reporter: Covers auto Seattle business trip to fly back ” manufacturing plant and of Michigan. The restaurant was on Woodward suppliers, steel and restaurants. (313) 446-0405 to Ferndale so he could be there has several other construc- Avenue just north of Eight Mile Road. or [email protected]. Tom Keane, Robert Ankeny: Covers the city of Detroit, Wayne when Keane visited. Margaritaville tion projects to boost pro- At Garden Fresh, Jack Aronson, 54, is the County government, and law. (313) 446-0404 or After considering other manu- duction and storage capaci- creative force behind recipes and strategic di- [email protected]. Sherri Begin: Covers nonprofits and services. facturers, Keane said Margaritaville chose Gar- ty. rection while Annette Aronson, 51, oversees (313) 446-1694 or [email protected] den Fresh for two reasons. Plus, Aronson said, Garden Fresh is evaluat- manufacturing, the company’s financial affairs Daniel Duggan: Covers real estate and hospitality. (313) 446-0414 or [email protected] “First of all, they make great products. But ing the possibility of expanding its Ferndale and serves as CEO. Jay Greene: Covers health care, insurance and the environment. (313) 446-0325 or that was sort of a minimal threshold for us,” plant by 100,000 square feet. He visited Israel a Aronson said that when he experiments with [email protected]. Keane said. “What really separated them from few weeks ago to tour food production plants salsa, he just tries to think of ingredients that Chad Halcom: Covers education, non-automotive manufacturing, defense contracting and Oakland other people was just the passion they have for there and to visit with food vendors. seem like they would taste good together. and Macomb counties. (313) 446-6796 or the business.” Garden Fresh also has ordered two new lines Garden Fresh salsa combinations include [email protected]. Tom Henderson: Covers banking, finance, Already, Garden Fresh is distributing Mar- of processing machinery at $580,000 per line to mango and peach, peach and pineapple as well technology and biotechnology. (313) 446-0337 or garitaville salsa nationwide to Wal-Mart Stores provide additional production capacity. as roasted garlic and green onion. [email protected]. Bill Shea: Covers media, advertising and Inc. and Costco Wholesale Corp.’s Los Angeles di- “When we built this plant, we built it for 100 Just recently Aronson came up with a “spicy marketing, entertainment, the business of sports, transportation and Livingston and Washtenaw vision. It’s planning to begin distribution in employees,” Aronson said. Today, more than fruit” salsa that he is convinced will be a hit. He counties. (313) 446-1626 or [email protected] April to Kroger Co. and is close to an agreement 200 work at the main production plant in Fern- combined habanero peppers with mango and LANSING BUREAU with Meijer Inc. dale. fresh ginger. Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- Margaritaville Foods was established about Aronson said some industry experts have Only occasionally does he miss the mark. 5355, FAX (517) 371-2492, [email protected]. or four years ago as the consumer and packaged questioned the wisdom of producing a line of “I tried to make some pumpkin salsa one 115 W. Allegan, Suite 220, Lansing 48933. goods division of Orlando, Fla.-based Margari- salsa for another company that will compete time. That didn’t work.” ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) taville Enterprises L.L.C. with Garden Fresh. Brent Snavely: (313) 446-0405; 446-6032 or [email protected] Zilko said sales of Margaritaville’s frozen But Aronson views it this way: Margari- [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, Cathy Ross, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Greg Soccer: Sports executive breaks in – at the bottom Evangelista, 313-446-1655 MARKETING DIRECTOR Michelle Minor ■ From Page 3 EVENTS MANAGER Nicole Wiedling MARKETING ASSISTANT Jennifer Dunn A detailed breakdown of the deal team has scored the fewest goals Jewell. home and abroad.” MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea hasn’t been made public, and Ap- (13) and surrendered the most (55). Another plus will be the influx Turning the Rams into a global Beckham, YahNica Crawford pleby declined to name the other It’s all but certain Derby will of $24 million from the Premier brand won’t be simple, Nicholson CIRCULATION Candice Yopp, Manager. investors. The new owners as- drop down a level of play, to what’s League’s television revenue if Der- said. PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, sumed $25 million in team debt, ac- called the Football League Champi- by is relegated. Teams sent down “This would be easier if they (313) 446-0301 cording to British media reports. onship (formerly First Division), get such “parachute payments” to were an established Premier SUBSCRIPTIONS (313) 446-0450, Appleby estimated the franchise because each year the bottom help soften the financial impact of League club but would still be a big (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: had about $100 million in revenue three Premier League teams are demotion. task because the market is domi- (313) 446-0367 or e-mail the Crain Information last year. “relegated” down and the top three Appleby plans to capitalize on nated by Manchester United, Liver- Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Derby County is the latest ven- Championship league teams are el- his marketing experience to sign pool, Arsenal and Chelsea plus ma- CRAIN COMMUNICATIONS INC. ture in Appleby’s ownership evated. major sponsors who will help sell jor clubs from other countries — CHAIRMAN Keith E. Crain quest. Such a drop would affect plans to the club in new markets in Eu- Real Madrid, Barcelona and AC Milan PRESIDENT Rance Crain SECRETARY Merrilee Crain General Sports and Entertain- market Derby worldwide — the dif- rope, Asia and Africa — assisted being examples,” he said. TREASURER Mary Kay Crain ment owned the Fort Wayne ference being akin to that between by a broadcast deal that reaches On the personnel side, Appleby Executive Vice President/Operations Wizards, a Class A minor-league the Detroit Tigers and Toledo Mud 202 countries. Decade-old General is relying on his National Basketball William A. Morrow Group Vice President/Technology, baseball affiliate of the San Diego Hens — and disrupt revenue. Sports, with $60 million in annual Association contacts to bolster Der- Manufacturing, Circulation Padres, for several seasons until “(Demotion is) a concern, but we revenue, specializes in consulting, by: Former New Jersey Nets Chief Robert C. Adams Vice President/Production & Manufacturing selling the team two years ago. planned for this from the begin- team management, marketing, Marketing Officer Tom Glick will Dave Kamis That year, Appleby signed a letter ning of the negotiations. It’s ac- sponsorships and has a synthetic be the Rams’ president and chief Corporate Director/Circulation Patrick Sheposh of intent to buy the National Hockey counted for in the price of the turf division. executive officer while former G.D. Crain Jr. Founder (1885-1973) League’s St. Louis Blues, valued club,” Appleby said. He estimated “We’re bringing (sponsorship) Charlotte Bobcats Vice President Mrs. G.D. Crain Jr. Chairman (1911-1996) then at $140 million, but the deal that relegation shaved $100 million opportunities to American and Tim Hinchey takes over as Derby’s EDITORIAL & BUSINESS OFFICES: fell through. He also attempted to off the sale. Asian companies that have never executive vice president. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 bring minor-league baseball to The new owners will pump mon- been presented with an opportunity Glick and Hinchey will work in Cable address: TWX 248-221-5122 AUTNEW DET Troy, but was stymied by opposi- ey into the team for player acquisi- like this,” he said. He declined to England. Appleby will remain in Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. tion from the Detroit Tigers. tion later this year in hopes of name the companies he’s targeting. Rochester. Outside U.S.A., add $48 per year to out-of-state His plan now is to fix Derby and fielding enough talent to return Steve Nicholson, who writes “Bringing in experts from other rate for surface mail. Reprints: For inquiries call the reprints department make it what he calls a “global quickly to Premier League play, about the team for the Derby American professional teams is a at: (800) 494-9051, Ext. 144 , or at brand” akin to the top teams in the Appleby said. Evening Telegraph, said the timing good first step,” said Mike Dietz, [email protected] Premier League. They also have a solid founda- of the deal is right for the team. president and director of Bingham CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the But the Rams are bad — on par tion upon which to rebuild. The “If they are relegated, as seems Farms-based Dietz Trott Sports & En- second week in August by Crain Communications with 1-15 Miami Dolphins. Derby, team regularly fills 33,500-seat likely, the first aim is to return the tertainment, which helps companies Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and whose only elite championships Pride Park Stadium, which was also club to the Premier League at the with sponsorships. “The new own- additional mailing offices. POSTMASTER: Send were in 1972 and 1975, has just nine part of the purchase, and there are earliest opportunity and keep ership will have to show the local address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI points in the standings so far, and plans afoot to expand the decade- them there,” he wrote in an e-mail community that they understand 48207-9732. GST # 136760444. Printed in U.S.A. needs seven more over its final 12 old venue by 10,000 seats and sell to Crain’s Detroit Business. “It is the traditions of English soccer.” Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. matches to avoid the worst mark naming rights. The team also has a where the money is and attracts Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any in Premier League history. The respected veteran coach in Paul the television audience both at [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 02-18-08 A 26 CDB 2/15/2008 6:53 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS February 18, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 9-15

Beyster Inc. to sell lumber, from Chapter 11 protection, had been unfilled since Joe City fight over the Associated Press re- Nathan left in October 2003. equipment, factory ported. Addition- Lawmakers ally, Thousands of feet of documents hardwood and softwood, Upgrade of DHS system Tanya Hei- plus machinery and equip- delberg- ment that shaped intri- goes to frustrates lawmakers Yopp to divided over cately designed wood prod- vice pres- Frustrated state law- ucts for east side Detroit ident and high court makers are asking ques- special homes, boats and business- tions about delays in a new assistant es go on sale this weekend etroit Mayor Kwame computer system for the to the in the former Beyster Inc. Kilpatrick asked the state Department of Human COO; and two casinos custom millwork lumber Paul D Michigan Supreme Services, which oversees David shop. Court to rule on whether child welfare and other so- McGuffie to president of Co- egislation designating BOA officials announced Even the 20,000-square- documents from a secret cial services. visint, both reporting to sites in Port Huron they would retain LaSalle foot mill and factory at 2905 L and Romulus for Indi- President Mark Hoppe in one settlement of a whistle- The Bridges Project was Paul. Beaufait St. near an casinos is moving to capacity or another. blowers’ lawsuit should be supposed to be statewide by Charlevoix Street — parts made public. last month. But state offi- votes in the full U.S. House They did, briefly, but on of which date back almost OTHER NEWS and U.S. Senate, but the is- Feb. 4 Hoppe began a new The documents include cials told a joint Michigan 100 years — is for sale, said sexually explicit text mes- House hearing Tuesday Blue Water Automotive sue has split opinions with- job, as David Renschler, owner and in the Michigan congres- president sages between Kilpatrick that the system won’t be Systems Inc., a maker of en- president of Beyster. and his former top aide. running until the summer, gineered thermoplastic sional delegation. and CEO The company closed in U.S. House The city filed its motion and only in a few counties. auto parts, has filed for On Feb. 13, the of the 2004 after an ownership Committee on Natural Re- Chicago- to take a state Appeals It may not be available in Chapter 11. change and bankruptcy, he sources approved measures based Court ruling to the higher every Michigan county un- A five-mile stretch on said. that would give property to Cole Taylor court more than two hours til the end of 2009. Michigan Avenue from During the 1970s and the Bay Mills Indian Communi- Bank and ahead of a 5 p.m. Friday Child advocates who are Wyoming Avenue to down- 1980s, Beyster did specialty ty and the Sault Ste. Marie as presi- deadline. suing the state’s foster care town Detroit becomes a car work for auto companies, Tribe of Chippewa Indians in dent of its A three-judge Appeals system have criticized the pool lane Feb. 25, the Asso- ranging from exterior wood settlement of Native Ameri- holding Court panel said Wednes- computer system used by ciated Press reported. At Hoppe for the Dodge L’il Red Ex- can tribal land claims. The company, day that a circuit court caseworkers. least two occupants will press and Warlock pickup Sault tribe is majority own- Taylor Capital Group Inc. judge was correct in order- have to be in a vehicle to trucks, to Cadillac road ser- er of Greektown Casino L.L.C. Cole Taylor is a publicly ing the documents to be un- Biz leaders join panels use the lane during morn- vice work boxes for General in Detroit. traded $3.5 billion bank. sealed. They are part of an ing and afternoon peak pe- Motors Corp. $8.4 million settlement the U.S. Reps. John Conyers Jr. “It’s going to be a lot of on government reform riods. A bus route will open Hartt Antiques Gallery, city made with former offi- and Carolyn Cheeks-Kil- fun,” said Hoppe, who offi- State Senate and House along with the car pool 17307 Mack Ave., Detroit, cers in last summer’s whis- patrick, D-Detroit, and oth- cially left LaSalle on Dec. leaders on Wednesday lane, running from the which handles appraisals, tle-blowers’ suit. Gibraltar Trade Center ers from the Congressional 31. “Bank of America was named private- and public- in Tay- auctions and estate sales, is lor into central Detroit. Black Caucus say the new very gracious. I was offered sector individuals from conducting the sale. The moves coincide with casinos would be too close a couple of positions that Casino revenue up Southeast Michigan and For more details, see a major construction pro- to Detroit’s three commer- weren’t terribly appealing. elsewhere to serve on two www.harttantiques- Total revenue for De- ject beginning the same cial casinos and hurt their We both realized they were new government reform asking me to do something gallery.com. troit’s three casinos was panels. day on the Ambassador business. Mayor Kwame Kil- $113.5 million for January, Bridge Gateway, which patrick agrees and testified that was not that exciting As Crain’s reported last and not in my wheelhouse.” a 3.8 percent increase from will close part of I-75 against the legislation in TechTown interim director week, the new Commission Hoppe had been in Michi- the same month a year ago, on Government Efficiency is through December 2009. Washington. gan at LaSalle or its prede- to be honored but total taxes paid to the co-chaired by Kevin Prokop, Family Service Inc. of But supporters of the leg- cessors since January 2001, state and city of Detroit de- partner in RockBridge Equity Wayne County, Macomb islation include U.S. Reps. New Enterprise Forum first as executive vice presi- creased by $1.35 million, as Partners L.L.C. in Livonia, Family Services and Oakland John Dingell, D-Dearborn, plans to honor interim Tech- dent and head of commer- MGM Grand Detroit benefited and James Curran Jr., of J. Family Services plan to grad- Bart Stupak, D-Menominee, Town director Randal Charl- cial banking, then in April from a tax rollback. Curran Consulting in East ually combine backroom and Candace Miller, R-Harri- ton as its 2007 Entrepreneur 2005 as president. As permanent casinos Lansing and a retired veter- operations while maintain- son Twp., who say Romulus of the Year during at a In March 2006, in an open, wagering taxes paid an of state and Wayne ing independent nonprofit Thursday night awards din- status, CEOs, boards of di- and Port Huron need the analysis by Crain’s of to the state drop from 12.1 County government. ner. rectors and budgets. The jobs and revenue casinos Southeast Michigan’s most percent to 8.1 percent and Local appointments to The award will recognize Family Service Alliance for could bring. connected business leaders, taxes paid to the city of De- the commission were: Charlton’s founding of Southeastern Michigan is ex- Hoppe ranked No. 4, in part troit go from 11.9 percent to Chuck Moore, senior manag- Asterand P.L.C. New Enter- pected to save the organiza- because of board member- 10.9 percent. ing director, Conway Former LaSalle president prise Forumalso plans to tions about $850,000 annual- ships in Detroit Renaissance The Michigan Gaming Con- MacKenzie & Dunleavy, Birm- honor other entrepreneurs ly, said Michael Earl, takes Chicago CEO post Inc., the Detroit Institute of trol Board reported MGM ingham; and Georgi-Ann The dinner begins at 5 president and CEO of Oak- had revenue of $46.6 mil- Bargamian, attorney, United When North Carolina- Arts, the Detroit Symphony Or- p.m. It is free for members land Family Services and lion, up 15.1 percent from Auto Workers. based Bank of America Corp. chestra and the YMCA of Met- of New Enterprise Forum managing partner for the January 2007. MotorCity Local appointments to closed on its purchase of ropolitan Detroit. and $20 for others. See alliance. Casino had revenue of al- the Commission on Statutory Troy-based LaSalle Bank “I loved my time in www.newenterprisefo- A bill that would allow most $39.4 million, down 2.7 Mandates were: Dennis Pol- Midwest N.A. in October, Michigan,” said Hoppe. rum.org. legal immigrants temporar- percent. Greektown Casino lard, attorney, Thrun Law ily living in Michigan to re- reported revenue of $27.5 Firm P.C., Bloomfield Hills; million, down 3.2 percent. sume getting driver’s li- Robert Daddow, deputy Oak- censes has been signed by land County executive; Gov. Jennifer Granholm, the View highlights of Newsmaker of the Year’s speech Credit markets jeopardize Amanda Van Dusen, princi- Associated Press reported. pal, Miller, Canfield, Paddock Redford Township About 600 people came to the Hyatt www.crainsdetroit.com/newsmaker. Delphi bankruptcy exit and Stone P.L.C., Detroit; plans to spend $4.5 million Regency in Dearborn on Thursday to You’ll also find profiles of the other Skip Maccarone, Shelby in local, county and federal hear Ron Gettelfinger, president of nine Newsmaker nominees. A plan by Troy-based Township supervisor. money to build a new am- the United Auto Workers. Also online this week: auto supplier Delphi Corp. to Both commissions are to Gettelfinger, who was recognized as phitheater, downtown Watch architect Dennis King walk exit bankruptcy by the end issue final reports and rec- Crain’s Newsmaker of the Year for streetscape along Five Mile of next month is in jeop- ommendations to the Legis- 2007, said he accepted the through the realization of one of his and Beech Daly roads and a ardy as it struggles to get recognition on behalf of his entire designs: the environmentally friendly lature by Oct. 1, 2009. seven-mile bike trail this union. Taubman Student Center at Lawrence $6.1 billion in loans in the year, The Detroit News re- tight credit market. In his speech, he touched on Tech at ON THE MOVE ported. www.crainsdetroit.com/multimedia. If the company does not troubles faced by the Detroit 3 and suppliers, as well as last year’s Let us know how you’re planning secure the exit financing Robert Paul to president WEB WORLD by the end of March, equity and COO, Compuware Corp., OBITUARIES historic contract with the for retirement. Do you have a nest automakers. Kevin Hill egg or an empty cash drawer? Crain’s investors led by hedge fund Detroit, from president and Richard Frank, presi- COO of the company’s Cov- dent of Detroit-based archi- If you didn’t get a chance to go, you can watch is inviting readers to complete a new survey as Appaloosa Management L.P. highlights of Gettelfinger’s speech at our Web part of a special report it will publish with could abandon a deal to in- isint business unit. The pre- tecture firm Frank, Mc- site. There are videos and photo galleries from sister publication Investment News in May. To vest as much as $2.55 bil- vious COO, Tommi White, Cormick & Khalaf, died of the event, posted along with the rest of our participate in this brief survey, go to lion. The deal is crucial to left the company a year ago. complications from arterial Newsmaker coverage at www.investmentnews.com/areyouprepared. Delphi’s ability to emerge The position of president sclerosis Jan. 28. He was 77. DBpageAD.qxd 2/15/2008 9:38 AM Page 1

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